PM to enter into performance contract with each minister

Prime Minister Imran Khan is to enter into a performance contract with each Minister, with specific goals and targets to be monitored periodically, well informed sources told Business Recorder. This was approved by the federal cabinet in its meeting held on September 17, 2019, just two days prior to Prime Minister's departure to Saudi Arabia en-route to New York.
The sources said Establishment Division informed the Cabinet that primary objective of putting in place an effective performance management and appraisal system is to bring the desired improvements in public service delivery and develop an institutional mechanism for individual accountability.
Performance appraisal also enables the organisation to identify from within its work force, those requiring training and capacity building so that they perform their jobs more efficiently and effectively. As the same time capacities are built to ensure that higher positions are manned by individuals with the right attitudes, skill sets and knowledge. For these reasons, amongst the various facets of institutional reforms, performance evaluation of government officers is considered as critical.
The Task Force on Institutional Reforms, working under the chairmanship of Dr. Ishrat Hussain, viewed the present performance evaluation system of government officers. Establishment Division was tasked to propose improvements in the performance management system so as to become more responsive to the requirements of policy information, public service delivery and human resource management. Career Planning and Management Services Wings of Establishment Division conducted necessary research, analyzed the public and private sector performance management systems and regional and international best practices. The indentified deficiencies and proposals for improvements in the performance management system were shared with Task Force on Institutional Reforms, in a presentation held on 22 July, 2019.
The Task Force on Institutional Reforms held several rounds of deliberations and consultations with stakeholders through various sub-committees and focus groups. The recommendations were firmed up and Dr. Ishrat Hussain, Chairman of the Institutional Reforms Cell (IRC) presented them to the Prime Minister on August 20, 2019. While approving, in principle, the recommendations of IRC, the Prime Minister directed to place them before the Cabinet for consideration at the earliest.
The core deficiencies in the present performance evaluation system as indentified by IRC include lack of connections between the performance goals of the Ministry/ Division/ Executive Department and performance evaluation of officers serving there. Furthermore, the present performance evaluation system is highly subjective and dependent upon the whims of the supervising officer as hardly any distinction is made between good, satisfactory and poor performers.
Performance on the job has no link with annual compensation awards, as everyone is given the same amount of increment and increase in salary and the same quantum of honaraia, if any. Moreover, the present PER performa does not provide any substantive information about the officer's capability or potential for the future.
The recommendations of the IRC are as follows: (i) The Prime Minister would enter into a performance contract with each Minister, with specific goals and targets to be monitored periodically. The performance goals of the officers working under the Ministry would be aligned to and derived from these performance contacts; (ii) performance evaluation would be driven by a set of objectives/ targets agreed between the officer and supervisor for the year. Key Performance Indicators (KPIs) that would be measurable and verifiable would be used to determine whether the agreed goals have been achieved or not. Each Division can evaluate the officers in accordance with the following restrictions- 20 per cent outstanding, 30 very good, 30 per cent good, 10 per cent average and 10 per cent below average.
Those placed in outstanding category would receive twice as much in the form of annual merit increase as compared to those placed in other categories. Those falling below average would receive no merit increase. In allocation of government housing priority would be given to the top 20 per cent.
A new PER proforma based on the job description is being developed which would consist of the following entries: (i) objective and goals for the year; (ii) KPIs; (iii) evaluation by reporting officer; and (iv) development/training needs.
During discussion a view was expressed that the proposals would provide discretionary powers to senior officers, which is against the government's policy. It was clarified that a transparent system would lead to reduction of discretion available to senior officers.