Annex A. HRM practices composite indexes

This edition of Government at a Glance: Western Balkans included two composite indexes on human resource management (HRM) practices. They are: 1) delegation in human resources management practices; and 2) separate human resources practices for senior civil servants. Data used to construct the composite indexes were derived from 2019 Survey for the Western Balkans on Strategic Human Resources Management and the data for the OECD averages from the 2016 OECD survey on Strategic Human Resources Management. Survey respondents were predominantly senior officials in central government HRM departments, and data refer only to HRM practices at the central government level.

The composites presented here, including the variables comprising each index and their relative weights, are based on concepts that reflect contemporary public sector HRM developments and dilemmas on how best to manage human resources in the public sector in the 21st century. These include characteristics of HRM practices that were previously reviewed by the OECD’s Working Party on Public Employment and Management in 2016. In order to eliminate scale effects, all the variables were normalised between “0” and “1” prior to the final computation of the index.

The narrowly defined composite indexes presented in this publication represent the best way of summarising discrete, qualitative information on key aspects of HRM practices. However, the development of composite indexes and their use can also be controversial, as these indexes are easily and often misinterpreted by users due to a lack of transparency as to how they were generated, resulting in difficulties understanding what they are actually measuring. When making cross-country comparisons, it is crucial to consider that definitions of the civil services, as well as the organisations governed at the central level of government, may differ across countries.

Extent of delegation of hrm practices in line ministries in central government – variables, weights and scoring

Question number1	Question text	Scoring and weight
Q1 [Q21]	Is there a central agency/department/unit in charge of human resources at central/national/federal government level?	a) Yes: 0.750; b) No: 1.000; c) Not responsible, but a central agency/department aims to coordinate the HR policies across departments: 1.000	20%
Q2 [Q8]	Number of posts and budget allocation (see list below): where are the following issues primarily determined? (see options in scoring section) (1) Numbers and types of posts within organisations; (2) Allocation of budget envelope between payroll and other expenses.	Each sub-question 2(1) and 2(2) was scored as follows: a) Central HRM body (which sets the rules and is closely involved in applying them)/Ministry of Finances: 0.250; b) Central HRM body but with some latitude for ministries/departments/agencies in applying the general principles: 0.500; c) Ministries/ departments/ agencies, within established legal and budgetary limits: 0.750; d) Unit/team level: 1.000 The final score for this question is an average of the scores for 2(1) and 2(2). If more than one answer, score is the average of answers provided.	20%
Q3 [Q10]	Pay (see list below): where are the following issues primarily determined? (see options in scoring section) (1) General management of pay systems (salary levels, progressions) (2) Management of the variable portion of pay – benefits	Each sub-question 3(1) and 3(2) was scored as follows: a) Central HRM body (which sets the rules and is closely involved in applying them)/Ministry of Finances: 0.250; b) Central HRM body but with some latitude for ministries/departments/ agencies in applying the general principles: 0.500; c) Ministries/ departments/ agencies, within established legal and budgetary limits: 0.750; d) Unit/team level: 1.000 The final score for this question is an average of the scores for 3(1) and 3(2). If more than one answer, score is the average of answers provided.	20%
Q4 [Q12]	Delegation of decisions regarding position classification, recruitment and dismissals - Management (see list below): where are the following issues primarily determined? (see options in scoring section) (1) Post classification system – grades (2) Original individual recruitment into the civil service (3) Individual recruitment of casual staff (4) Individual duration of employment contract in the civil service (5) Individual duration of contract in specific posts (6) Individual career management (7) Individual dismissal (7a) following lack of performance (7b) following organisational restructuring (7c) following misconduct	Each sub-question 4(1) - 4(7a-c) was scored as follows: a) Central HRM body (which sets the rules and is closely involved in applying them)/Ministry of Finance: 0.250; b) Central HRM body but with some latitude for ministries/departments/ agencies in applying the general principles: 0.500; c) Ministries/ departments/ agencies, within established legal and budgetary limits: 0.750; d) Unit/team level: 1.000 The final score for this question is an average of the scores for 4(1) - 4(7a-c). Sub-questions a-c of 4(7) carried equal weight as 12(1) – 12(6); (e.g. no average was taken for sub-questions 7a-c). If more than one answer, score is the average of answers provided.	20%
Q5 [Q14]	Delegation of conditions of employment – work conditions (see list below): where are the following issues primarily determined? (see options in scoring section) (1) Flexibility of working conditions (numbers of hours, etc.) (2) Adjustments to working conditions (part time, etc.) (3) Performance appraisal systems (4) Code of conduct (5) Ethics, equal opportunity, equity issues	Each sub-question 5(1) - 5(5) was scored as follows: a) Central HRM body (which sets the rules and is closely involved in applying them)/Ministry of Finances: 0.250; b) Central HRM body but with some latitude for ministries/departments/ agencies in applying the general principles: 0.500; c) Ministries/ departments/ agencies, within established legal and budgetary limits: 0.750; d) Unit/team level: 1.000 The final score for this question is an average of the scores for 5(1) - 5(5). If more than one answer, score is the average of answers provided.	20%
← 1. Questions numbers in the 2019 Survey for the Western Balkans on Strategic Human Resources Management in Central/Federal Governments. Those in square brackets refer to the question numbers in the 2016 OECD Strategic Human Resources Management Survey.

Extent to which separate human resources management practices are used for senior civil servants in central government – variables, weights and scoring

Question number	Question text	Scoring and weight
Q19 [Q74]	Is there a defined group of staff in central/national/federal government who are widely understood to be the “senior management”?	a) Yes: 1.000; b) No: 0.000	20%
Q20 [Q77]	Are there policies in place to identify potential senior managers early on in their careers?	a) Yes, they are recruited as part of group selected at entry in the public service or a few years after entry: 1.000; b) Yes, potential leadership is systematically identified in performance assessments and staff careers are managed accordingly: 1.000; c) No: 0.000	20%
Q21 [Q82]	Is there a centrally defined skills profile for senior managers?	a) Yes: 1.000; b) Yes, but it only applies to some organisations: 0.500; c) No	20%
Q22 [Q85]	How different is the employment framework of senior managers from that of regular staff?	This is a multiple-choice question and respondents were to select all items that applied. Each item selected from the list below receives a score (the values of which are shown below) and the final score is a sum of all items selected. 22a. Recruited with a more centralised process: 0.125 22b. More attention is paid to the management of their careers: 0.250 22d. More emphasis on the management of their performance: 0.500 22e. More emphasis on avoiding conflicts of interest: 0.125 22f. Pay that is not basic salary and not performance-related is higher than for regular staff (ex. guaranteed benefits): 0.250 22g. The part of their pay that is performance-related is higher: 0.500 22i. Appointment is shorter than for regular staff: 0.250	40%