Creating value through human capital across public sector administration : critical success factor in performance management

Abstract

Malta, as a European Union member state, manifested extensive reforms in the adoption of New Public Management and Change Management 'marker tools which are attributable to generic stimuli and common pressures for change in Finance, Quality and Ideology. 'Fundamental to the implementation of these reforms are the public service employees. The work behaviour of these employees is an essential factor in the reform process. Performance of government employees is a key element because it reflects the government image with society in terms of its performance and effective management.' (Camilleri, 2012) The Study identifies an array of performance measurement indicators and looks at the setting up of an analytics capability to measure, compare and improve on Human Capital values. Budgets, standards and variances are used to assess performance. The human capital management trend employs a holistic approach to evaluate performance. Other non-financial metrics such as compliance, compensation, benefits, safety, retention and absenteeism were developed. Today's human capital measurement mix contains those measures plus others, such as leadership, innovation, employee engagement and learning. These new measures are critical to organisational growth and success. (Jack J. Phillips, 2008) Economic recovery in OECD countries is on the slow growth path; "Inequalities, in the distribution of income and other outcomes that matter for the people's well-being, are also widening. Governments must address these challenges to deliver stronger, more inclusive growth in the years to come .... Governments possess many policy levers to build the foundations for a more sustainable and inclusive societies. However, without the appropriate mechanisms to .... ensure effective implementation and promote thorough monitoring and evaluation... policies may not deliver their expected results." (OECD, 2015)