The Fair Wages and Salaries Commission’s Role in Public Service Performance Management
In Ghana, apart from its well-known public service reward management policy formulation functions, the Fair Wages and Salaries Commission Act, 2007 (Act 737) also charged the Commission with the following Performance Management, Monitoring and Evaluation responsibilities,
i. To develop and advise Government on and ensure that decisions are implemented on matters related to performance management and indicators, (Section 2biii)
ii. To ensure that the balance of internal consistency, external competitiveness and employee performance are fully reflected in the public service pay system.’(section 3i)
iii. To advise on performance management processes and indicators.’ Section 3(j) then,iv. Section 30(c) of the Act says; ‘The Minister (ie the Minister for Employment and Social welfare) may on the advice of the Board by Legislative Instrument make Regulations generally for the effective implementation of this Act.
iv. Section 30(c) of the Act says; ‘The Minister (ie the Minister for Employment and Social welfare) may on the advice of the Board by Legislative Instrument make Regulations generally for the effective implementation of this Act.’
Section 98(g) of the Labour Act, 2003 (Act 651), states,, without prejudice to the other provisions of this Act and subject to any agreement between the parties, a collective agreement may include provisions on the principles for matching remuneration with productivity.
Apart from these statutory requirements, a number of recent Government policy documents and pronouncements emphasise performance management, productivity improvement and monitoring and evaluation.
The following are excerpts from various policy papers;
The Medium-Term National Development Policy Framework; Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013 Volume 1; pages 85-86 have the following;In Ghana, productivity improvement has been a challenge at the national, sectoral and enterprise levels in both the public and private sectors.Productivity-related issues include: lack of a nationally agreed productivity-measurement framework; inadequate labour productivity management system, improper pricing of labour leading to low labour productivity and income.The principal policy instrument relating to productivity includes adopting a national policy for enhancing productivity and income in both formal and informal sectors.’
Section 4.6 of the Government White Paper on the Single Spine Pay Policy makes the following observations;‘Government did not find any linkage in performance management and productivity in the Single Spine Salary Structure. Government recognises that improved compensation must be driven by improved performance or productivity. In effect, there would be the need to establish a link between the new salary policy and performance management. This aspect of the policy is what government will actively engage its social partners to accomplish and thereby properly orient Single Spine Pay Policy as a fair and equitable way of remunerating public servants. Government endorses the introduction of a robust public service-wide performance management, monitoring and evaluation system. Once the system is in place, annual salary increments for public servants will no longer be automatic, but based on annual performance assessment.’
The Ghanaian Times of Friday, August 12, 2011 carried a story on its front page captioned ‘Public Service to be cleaned.’ In the story, the President was quoted as having said among other things that; ‘We cannot pay people for doing nothing.’ According to the story; ‘a significant percentage of the government revenue goes into the payment of public sector salaries, and the President believes Ghanaians must have their money’s worth.’ It is considered that, an effective Performance management, monitoring and evaluation system is a way of ensuring that ‘Ghanaians have their money’s worth.’
Paragraph 713 of the 2012 National Budget states;‘The FWSC will collaborate with the MDPI to conduct productivity index survey to further promote and enhance equity in the management of public sector pay. This will match productivity against salaries and wages in the public sector.’
In consonance with Government’s position on public service performance management, and productivity improvement, paragraph 4.2 of the FWSC’s draft ‘Ghana Public Service Pay Policy’ has the following;‘The FWSC shall develop Performance Management policy to among others include the following;
• Guidelines and frameworks for instituting an effective performance management culture in public service organisations, to recognise and reward performance. In the short to medium term (1-5yrs), this effort shall be focussed on the management corps of public service organisations and eventually rolled out to the generality of workers. In this regard, the practice of automatic increments across board shall cease and be based strictly on Performance.’
• Guidelines and frameworks for organisational performance assessment so as to reward high performing organisations and set them as examples for others.
• Compensation that emphasises, recognises and rewards effective leadership and also a bonus scheme that rewards organisations and their personnel for achieving their annual performance targets.’