Modernisation in the United Kingdom - Essay Example

Introduction Modernisation has been an important word in the context of public sector reform in the United Kingdom. According to Ahmad and Broussine(2000) the modernisation agenda of the labour Government believes in the policy of renewal through collaboration, partnership, and inclusion. The process of public sector reform can be broadly categorized into two phases. The first phase took off under the Conservative regime of Ms. Thatcher in the early 1980's upto 1997. Cowper (2001) states that during this phase the reforms were meant to introduce 'competitive and contractual challenges into public service.' During this period managerial responsibility was delegated and there were cuts on fragmentation of services. As a result of this each unit focused on a specific task and was directly accountable for it. Cowper (2001) goes on to say that post 1997, in the second phase of the reform process, the labour Government headed by Tony Blair has focused on 'partnership and collaboration within the public sector.' The focus he says has " shifted from outputs to outcomes, and there is a drive to take a longer-term view in policymaking and a consumer view in service delivery." A significant aspect of modernization has been the introduction of technology to the various areas of work. Consumerist orientation of the public sector has also been an area of focus. According to Schofield, (2003) The biggest challenge for the public sector is to ensure high quality service within a limited budget. Along with these aspects comes the key area of employee relations. As the structure and focus of the organization changes, the impact is likely to be felt most by the people who work in the organization. This paper focuses on the implications of this modernization agenda on public sector industrial relations Using the available research and publications on the modernization of the public sector and public service employment relations, this paper will begin by looking at the need for modernization and the key objectives of modernization. The next section will focus on the changing face of industrial relations in the age of modernization. The focus will then shift to the significance of employee relations in the present era. Based on the findings of Dr. Stephen Bach's paper titled 'HR and new approaches to Public Sector Management: Improving HRM Capacity' (2000) and Lynette Harris' paper titled, 'UK public sector reform and gaining commitment to the 'performance agenda," (2003) this section will deal with some of the challenges that lie ahead in the modernization or reform focus. The key issue raised will be the need for better Human resource Management Practices to ensure better employee relations and greater job satisfaction. What is Modernisation According to the Policy Brief, Organisation for Economic Co-operation and Development (2005),Today Governments all over the world are under increasing pressure to open up to public scrutiny and be more accessible to the people who elected them. It was with a view to cater to this public demand , increase public trust in the Government and to improve the quality of services offered by the public sector that the Government , Cowper (2001) says introduced its modernizing agenda with a 5 point programme: a. to make policy making more evidence-based b. to make services more responsive, more coherent public and focused on the user; c. to deliver high quality, efficient public services; d. to introduce information age, on-line government including the first corporate IT strategy for government to value and reward public service with a program of Civil Service reform e. and greater diversity in recruitment As Cowper (2001) points out, the driving force behind the modernization agenda is the outcome. This model focuses on the result for the user in terms of their life or business and for the government in terms of social or economic or political change. It is not just in the United Kingdom but across the world that public sector management is in a flux. According to a white paper published in 2005 by the Economist Intelligence Unit , titled, 'Business 2010: The public sector. Embracing the challenge of change', a range of factors like economic crisis, privatization, e-governance and increase in public access to information have made it necessary for public sector organizations to be more citizen- centric business like and efficient in their use of technology. Sponsored by the SAP, this survey conducted by the Economist Intelligence Unit covered 4,018 executives from around the world including 776 from the public sector. A significant number of executives pointed out that organizational flexibility with changes in working practices that are in line with technological advances may be necessary. Other important aspects brought to light by this survey include the need for transparency in the functioning of the organization. Along with this personalization of services, fast and efficient service will also be needed. To meet this demand, employees will have to be well trained not merely in their work but will also have to improve their communication and inter-personal skills. Partnerships and collaboration within the public sector and public-private partnerships might also be essential in the future. (Economic Intelligence Unit, 2005) The concept of modernization works on the premise that the functioning of an organization and the role of its employees is changing all the time. Innovation and quality are key to success in the modern world. This aspect has a significant impact on Industrial Relations. Modernisation and Industrial Relations Sriyan de Silva's paper titled 'The Changing Focus of Industrial Relations and Human Resource Management' presented at the ILO Workshop on Employers' Organizations in 1997, focuses on Industrial relations in the Asia Pacific region. However some aspects of Industrial relations highlighted in the paper are applicable in the British context as well. The paper points out that several employers and Governments have begun to look at Industrial relations from a strategic perspective. Focus is now on how Industrial Relations can contribute to workplace cooperation, flexibility, productivity and competitiveness. Changing work patterns and nature of work have made cooperation the basis for the functioning of any organization. Today as de'silva (1997) points out, Industrial relations has to encompass the attributes of employment relations. This aspect of employer- employee partnership fostered by mutual cooperation and trust is emphasised by other experts like Rita Donaghy Chairman of the Advisory, Conciliation and Arbitration Service (ACAS) and Robert Taylor, Media Fellow on the ESRC Future of Work Programme. Taylor (2001) in his paper, 'The Future of Employment Relations, points out that several changes in employment laws are also influencing the employment relations. These laws he says are "providing a minimum framework of positive rights for trade union recognition and representation as well as comprehensive individual employee rights covering all workplaces and not just those where trade unions are accepted as independent and autonomous organisations by employers." Modern work places understand that employee skills are key to the innovation, adaptability and flexibility of the organization. As de' Silva (1997) points out that technology management is made possible by skilled manpower. Technology has changed the way organisations work and even the structure of organisations. Flexible work hours, part-time jobs are all becoming important aspects of the changing organization structure. As organizations become knowledge-intensive, the employee is fast becoming a valuable asset. Modernisation and Employee Relations in the United kingdom This section of the paper will focus on two important areas that have been the focus of the modernisation agenda of the Government - the health sector and the Local Governments. The Health Sector In order to improve the efficiency of the public sector, the Government introduced performance based incentives to motivate employees. Burgess and Ratto (2003) mention that the Government introduced new performance indicators and systems of measuring and monitoring performance were been adopted In the context of the National health Services, this meant that Health Managers would have to effectively manage the funds they received from the Government and help increase the standards of service provided. However as Schofield (2002) points out this scheme was not very effective in the National health scheme. Several managers felt that the benefit as too small. Many others she says felt that the performance related pay scheme did not reflect the link between performance and reward. Several managers compared the benefits they received to that of their peers and felt demotivated. The prime cause for this dissatisfaction was that their targets had not been set clearly before them. Schofield (2002) mentions that the aim should be to align the organization goal with the personal goals of the employees. The personal goals of the employee and the goals of the organization are both key to employer-employee partnership. While the personal ambitions of an employee may always not be on line with the objectives of the organization, is important that organization respect the sentiments of the employee and yet convince him/her of the larger picture, the future of the organization. Improved efficiency on the part of the employee can make a difference to the performance of the organization and thus be beneficial to both. Another important aspect is the communication of organisation goals and targets to the employees. Dr Stephen Bach (2000) in his paper titled, 'HR and new approaches to Public Sector Management: Improving HRM Capacity' focuses on the implementation issue of reform policies. Focussing on the Health Sector, he states that the health policy is often devised independent to Human resource management Policies. As a result implementation becomes difficult as the required capacity to realise the changes is not available. Another factor Bach (2000) states is that the health sector is dominated by the role of professionals who focus more on professional matters rather that operational or administrative issues. Better management and efficiency is considered to be the work of managers. So a comprehensive approach involving the various parties involved with the health sector is required to bring into effect the various changes proposed by the modernization agenda. Local Government As part of the modernization agenda, central government initiatives like the best value review process and comprehensive performance assessment were made mandatory for local governments . According to Harris (2003)Local Governments were asked to look for innovative methods to deliver high standards of performance across the range of services they provide.. The idea behind the introduction of these initiatives was to encourage the local bodies to constantly review their performance and also seek new methods to improve efficiency in the future. Lynette Harris Professor of HRM and Professional Practice, Nottingham Business School, in his paper titled UK public sector reform and gaining commitment to the 'performance agenda' - HRM challenges and dilemmas, analyses the conflicting interests of employees in the local Government Based on 4 case studies the experience of 'best value' reviews of HR processes at two county and two unitary councils. Based on these case studies it is possible to understand the various expectations and issues faced by public sector employees at different levels. Best value Review, Harris (2003) says is a system of performance assessment According to the Local Government Act of 1999, Harris (2003) says, Local governments review their performance every 5 years and seek to understand how their functioning can be improved. He says, local Governments have to challenge why and how the service is being provided, compare performance with others to see how the service could be better provided, consult with local taxpayers and service users about what they want from the service and compete wherever practicable, fairly and openly to provide the best service. ' Along with this thy need to identify the means of improving the economy, efficiency and effectiveness of the service and address considerations of equity and environmental impact Harris (2003) states that theoretically speaking, a best value review provides equal opportunity for the different parties in the employment relationship to jointly agree on the priorities of the organization and the supportive Human Resource policies that are required to achieve these goals. However, in reality, he points out that conflicting interests, unclear targets and the inability to spell out priorities can lead to poor worker morale. Harris goes on to say that employees often feel that their achievements and contributions are overlooked because of the organizations initiatives for change. Harris (2003) quotes Strebler, who in 2001 has pointed out that the design and implemention of performance management schemes often assumes that 'an organisation's goals can be translated into individual goals which in turn can be delivered through feedback, training, development and reward'. If effective HR practices are not in place to ensure that the organizations goals are communicated to the employees, there can be great dissatisfaction and disillusionment among the employees. Harris' study found some serious lapses in the implementation of effective employee management practices which led to low employee morale and disillusionment. One of the common lapses found in the study was the absence of transparency and linkages between the planning process, and the contribution of employees. As a result employees were unable to identify with the larger aims of their council and felt their work was o little importance. This lack of awareness of the larger goal of the organization seemed to increase among the lower rung of employees. Having too many targets and not having them prioritized can also be difficult for employees. Another aspect raised was that the job requirements of the local authorities varied as per local needs. Hence the practice of benchmarking best practices or comparing was felt to be rather unfair. Harris in his paper quotes the head of HR in one of the councils who has said, "We just can't win. We try to get away from one size fits all and allow some local flexibility to provide more tailored information to our potential employees provided it still complies with Council policy and legislation but then find ourselves criticised for not having one standard approach.' Harris (2003) in his study concludes that involving the employee in the various aspects of organizational goals and priorities is very significant to good employee relations. To do this, effective Human Resource management policies need to be put in place. Clear identification of targets, setting goals and regular review of individual performance and effective communication of organization goals to the employees are key to successful employee relations. Conclusion Modernisation is a key aspect of reform. It is beyond doubt that the public sector will have to evolve and change to meet the needs of the modern society. However reform can happen only when there is management will and capacity to implement them. Inorder to ensure the success of the modernisation of the public sector reform process, involving the employees is very important. This task of reaching out to the employees is the key function of the Human resources department. Both the above mentioned papers by Harris (2003) and Bach (2000) dwell on the growing significance of effective Human resource management Practices. Human Resource Managers are likely to have an increasingly important role to play in the future. Their focus must be on helping align the goals of the organization with that of the employee so that both employee satisfaction and organizational goals can be achieved. References Ahmad.Y& Broussine,M. 2000, 'The UK public sector modernisation agenda - a form of renewal' Retrieved on 17 January 2006 from http://www.ballarat.edu.au/alarpm/docs/Broussine,_M_-_Abstract1.doc. Bach,S, 2000, 'HR and new approaches to public sector management: improving HRM capacity' Retrieved on 17 January 2006 from http://www.who.int/hrh/en/Improving_hrm_capacity.pdf Burgess,S & Ratto,M., 2003, 'The Role of Incentives in the Public Sector:Issues and Evidence' Retrieved on 17 January 2006 http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp71.pdf Cowper,J, 2001, retrieved on 17th January, 2006 from www1.worldbank.org/publicsector/civilservice/rsUK.pdf de Silva,S. 1997, 'The Changing Focus of Industrial Relations and Human Resource Management' Retrieved on 17 January 2006 fromhttp://www.ilo.org/public/english/dialogue/actemp/papers/1998/srsirhrm.htm Economist Intelligence Unit, 2005, 'Business 2010: The public sector Embracing the challenge of change' Retrieved on 17 January 2006 from http://graphics.eiu.com/files/ad_pdfs/Business_2010_Public_sector_WP.pdf Harris,L, 2003, 'UK public sector reform and gaining commitment to the 'performance agenda' - HRM challenges and dilemmas' Retrieved on 17 January 2006 from http://soc.kuleuven.be/io/egpa/HRM/lisbon/harris.pdf Organisation for Economic Co-operation and Development, Policy Brief, 2005, 'Public Sector Modernisation: Open Government' Retrieved on 17 January 2006 from http://www.oecd.org/dataoecd/1/35/34455306.pdf. Schofield,C, 2002, 'Contextual, policy and management reforms in the public sector: The case of the national health service.' WP02/11, ISSN 1471-8209 Retrieved on 17 January 2006 from http://www.ribm.mmu.ac.uk/wps/papers/wp02_11.pdf. Taylor ,R., 2001, 'The Future of Employment Relations' Retrieved on 17 January 2006 from http://www.esrc.ac.uk/ESRCInfoCentre/Images/fow_publication_1_tcm6-6059.pdf 1. Jeremy Cowper, Head, Modernizing Government Secretariat, Cabinet Office, United Kingdom Government (PDF) ... reforms, with. modernization ... The UK is ... public sector and. beyond in pursuit of government goals. Civil service and personnel reforms. There is very little civil service legislation in the UK ... www1.worldbank.org/publicsector/civilservice/rsUK.pdf - 81k - View as html - More from this site - Save - Block Read More