A COMPARISION OF

HUMAN RESOURCE MANAGAMENT

OF FRANCE AND UNITED KINGDOM

MR. MARK MALITAN

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

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 TABLE OF CONTENT

INTRODUCTION ………………………………….……………………………. 3

FRANCE HUMAN RESOURCE MANAGEMENT …………………………... 4-7

UNITED KINDOM HUMAN RESOURCE MANAGEMENT ……………….. 8-12

REFERENCES …………………………………………………………………… 13

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INTRODUCTION

Human resources are an agency’s most asset. They define the efficiency, effectiveness and over-
all quality of service in any industry. Every organization that wants to develop and compensate
its employees needs to have some systems for determining where they are doing well, where they
need help, and what their job is worth.

Human Resource Management is the calculated and reasoned method of managing for an
organization’s most valued assets. There is a response for the people who are working and
ensuring the achievement of the role for the organization’s goals and objectives, increasing in the
organization's effectiveness and satisfying all of the employee's needs. Employee costs usually
consume a big percentage of the common budget of most companies. So, it is very important to
find good employees because it may also help the companies to improve its performance and
increase success. By managing human resources effectively and efficiently, it is possible to know
that all workers are motivated and satisfied willing to perform their own duties to the best of
their abilities. The responsibilities that encompass this method of Human Resource Management
include a multitude of different activities, among these activities and other tasks are deciding
factors of whom to choose from the candidates and the whereabouts of finding quality
employees, recruiting and training the best ones. Therefore, the employment interview is the
most widely used selection technique.

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FRANCE HUMAN RESOURCE MANAGEMENT

Central government employees in France fall into two categories: civil servants; and other public
employees. All civil servants are employed under the principal General Employee Framework,
regulated by the Civil Service Statute of 1984. Other public employees are employed under
public or private law, depending on the post. Civil servants are employed on life-long tenure,
whereas no such guarantees are in place for other public employees. Fixed-term contracts with
similar conditions as open-term contracts are used, but not for civil servants. Civil servants are
differentiated by seniority, but not corps. Part-time employment accounts for a fairly small
proportion of total employment, with the vast majority of part-time staff working between 50%
and 95% of full-time hours. The age structure of the civil service is skewed towards younger
employees. The proportion of under 30 year olds, 17.5% in 2010, is well above the OECD
average of 11.7% in 2009. In addition, the percentage of civil servants aged 50 years or older,
27.2% in 2010, is well below the OECD average of 34.3% in 2009. There has been a very mild
increase in the representation of this group since 2005, and it is still substantially above the rate
for the total labour force. Women are well represented in the civil service, accounting for 51.3%
of total staff and 57.9% of top and middle management positions in 2010. Both figures are
significantly above the OECD averages for 2009 of 49.5% and 34.7%, respectively. In addition,
women accounted for 35.8% of top executive positions in 2010. However, women are over-
represented in part-time employment, accounting for 80.9% of part time hours worked.

France is one of 27 OECD countries that reported an anticipated decrease in public employment
levels as a result of planned reforms. Significant measures have been put in place to reduce costs
and improve the performance of the public service, including a policy to replace only 50% of
retiring staff which will result in 150 000 jobs cut by 2013.˜ In addition, a freeze on civil service
salaries is in effect. The government is permitted to dismiss employees on open-term contracts
when it seeks to restructure, but reallocation possibilities must be proposed beforehand.
Voluntary departures with attractive leave allowances are regularly encouraged. General
government sector employment (excluding public corporations) as a percentage of the labour
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force, 19.5% in 2010, is substantially above the OECD average of 15.1%. However,
compensation of public employees as a percentage of GDP, 13.4% in 2010, is only mildly above
the OECD average of 11.3%.

France delegates HRM practices to line ministries to a similar extent as the average OECD
country. The central HRM body co-ordinates on a range of issues and is also actively involved in
setting and monitoring the pay system and post classification system. Ministries play a strong
role in the management of HRM issues, but usually in co-ordination with the central body.
Overall, delegation has led to broadly comparable frameworks within ministries, but with
significant differences between them. France makes slightly more use of strategic HRM practices
compared to the OECD average. An accountability framework requires management to plan and
report on a full range of issues, and regular assessments of ministries’ HRM capacity are
undertaken. Forward planning considers a full range of issues and covers a reasonable horizon of
2-3 years.

PERFORMANCE: France makes more use of performance assessment in HR decisions

compared to the average OECD country. Assessment is used for almost all employees and takes
the form of an annual meeting with, and written feedback from, the immediate superior. An
extensive range of criteria is used, including activities undertaken, timeliness and quality of
outputs, improvement of competencies and interpersonal skills. Assessment is of high
importance to career advancement and remuneration, and medium importance to contract
renewal. In addition, France uses performance related pay (PRP) to a substantially greater extent
than the average OECD country. PRP is used for most civil servants and takes the form of
permanent pay increments. It can represent a maximum of 11-20% of base salary, and
promotions are also used as a performance incentive.

PAY SETTING: Base salary is set through a single, comprehensive collective bargaining
arrangement for the entire central government. Bonuses are negotiated centrally, at the
decentralized level or individually. Remuneration is not indexed to other variables and is revised
annually. A range of factors contribute to base salary levels, with educational qualifications
being particularly relevant for management and professionals. Seniority based pay is used, but
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the increments applied have been reduced in recent years. The number of years in a similar
position factor into pay levels of new recruits.

PROMOTIONS: Years of experience, performance appraisals and qualifications factor into

promotion decisions for management and professionals, whereas only experience is relevant for
secretarial and technical staff. Employees must take a competitive examination in order to
change hierarchical grades. Listings of openings are accessible to all government employees, a
shortlist of candidates is compiled by the HR department and there is some use of assessment
centers to ensure a merit based promotion system. Specific information sessions and coaching
are available to advance the promotion of women and the disabled.

MOBILITY: Internal mobility has been increasing in the French public service, along with the
publicity of available positions, the establishment of pools of available staff and increased
incentives for staff. Staff on external postings retain the right to return to their post and external
mobility is promoted through special secondment and training programs, which are taken into
account in promotion decisions and career planning.

TRAINING: Training is a prerequisite for technical and administrative officials and takes place
in official training institutions. On average, employees receive 3-5 days of training per year.
Average working hours per year by central government employees (2010)

WORK CONDITIONS: The average yearly working hours in France, 1 573 hours in 2010, is
one of the lowest of all OECD countries, and well below the OECD average of 1 745 hours. This
is driven by very low weekly working hours and a few extra days of annual leave. The average
number of sick days taken per employee is 13 days per year.

RECRUITMENT: France uses the most career-based recruitment system of all OECD countries.
Entry into the civil service is obtained through a centrally administered competitive examination,
which is differentiated by seniority but not professional group. Most posts are open to internal
and external recruitment, with applicants applying directly to the post. Some measures have
been recently taken to increase external recruitment for top management and decrease it for
secretarial and technical positions. A range of diversity policies are in place to advance the

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representation of women and the disabled. These include preferential right for an interview,
preference in the selection process and rewards for units.

France uses separate HRM practices for senior civil servants (SCS) to a slightly greater extent
than the average OECD country. SCS are considered a separate group and are recruited as such
upon entry to the public service. However, a good proportion of senior management positions are
open to external recruitment. There is no centrally defined skills profile for SCS but more
attention is paid to the management of their careers, performance and potential conflicts of
interest. In addition, the part of their pay that is performance-related is higher than for normal
staff. The president and relevant minister have influence over the appointment/dismissal of all
management levels, with the central and ministerial HRM departments also holding influence
over middle management positions. Many advisors to ministry’s leadership, and a few secretaries
general and directors general turn over with a change in government.

Public service unions are closely involved in industrial relations in France and receive partial
public funding. The social dialogue system is characterized by “concertation”, i.e., the obligation
for consultation with civil service unions before any decisions are taken. However, unions do not
have the right to initiate negotiations on collective agreements. Collective bargaining is
centralized at the national level; the negotiations over wage increases take place at the central
level, within budgetary limits determined by the Ministry of Finance. The employment
framework and the right to strike/minimum service are also negotiated centrally, whereas
bonuses, work conditions, the code of conduct, the introduction of new management tools and
government restructuring involve delegated levels as well. Most public employees are granted
the right to unionize and strike, except when the latter is in relation to particular motives. At the
time of publication, discussions between the newly appointed government and the trade unions
are ongoing ("social agenda"). At the end of the negotiations, the government will launch new
reforms.

In July 2012, the newly appointed minister for State Reform, Decentralization and the Civil
Service set the social agenda announced 3 main priorities:

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 Social dialogue: Implement reforms with unions and employees, as well as address gender
equality and working conditions.  Exemplary public employers: work-life balance and norms.
 Mobility, careers and remuneration.

UNITED KINGDOM HUMAN RESOURCES MANAGEMENT

A small core of public employees in the United Kingdom are considered Civil Servants and they
account for around 9% of total FTE public employment. This group is employed under the GEF
and is split between permanent staff, who may have open contracts or fixed-term contracts of 12
months or more, and casual/temporary staff, who are employed on a casual basis or on a fixed-
term contract of less than 12 months in length. Limited use is also made of agency staff, interim
managers, specialist contractors and consultants, who are not employed under the GEF. There
are no guarantees in favour of life-long employment.

The government (civil servants and employees in executive non-departmental public bodies)
makes up approximately 2% of total UK employment and about 11% of public sector
employment. The age composition of the Civil Service is generally consistent with that of the
OECD average. The percentage of Civil Service employees aged 50 or older, 35.5% in 2012, is
close to the OECD average of 34.3%. This age group accounts for a greater portion of the Civil
Service than for the total labour force and is growing at a rate roughly consistent with the OECD
average. In addition, the proportion of public employees under 30 years old, 10.5% in 2012, is
slightly lower than the OECD average of 11.7%. The representation of women in the Civil
Service is above the OECD average. Women account for 53% of Civil Servants and 40.4% of
management staff in 2012, compared to the OECD averages of 49.5% and 34.7% (2009),
respectively.

The United Kingdom is one of 27 OECD countries that reported an anticipated decrease in
public employment levels as a result of planned reforms. A comprehensive range of measures
have already been implemented in restructuring the public sector and consolidating the fiscal
deficit. In addition, the administrative budget of all ministries/departments will be reduced by
33% to 42% by 2014-15, with general government employment forecast to fall by 740 000

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positions by 2016-17. Civil Service FTE employment is now at its lowest level since World War
II and its share of public employment has fallen by over two percentage points since 1993.
Furthermore, a pay freeze is in effect until 2013, with pay restraints for a further two years
thereafter.˜ Further measures include merging or abolishing arm’s-length bodies, integrating
back-office functions, selling off government assets, streamlining the Senior Civil Service (SCS),
and reducing management layers and cost. General government sector employment as a
percentage of the labour force, 17.5% in 2012, is above the OECD average of 15.1%.
Compensation of public employees as a percentage of GDP, 11.4% in 2010, is in line with the
OECD average of 11.3%.

The United Kingdom delegates HRM practices to line ministries to a greater extent than the
average OECD country. Since April 2011, shared expert services have been established covering
employee policy, learning and resourcing. This is part of the Next Generation HR programme
set up in 2010 to simplify HR delivery across the Civil Service; eradicate duplication wherever
possible; and reduce the size and cost of HR across government. The central HRM body plays a
strategic coordination role and has a fairly broad range of responsibilities. The management of
most HRM issues is delegated to ministries, particularly regarding pay, recruitment and
dismissal, working conditions and performance appraisal. No HRM issues are delegated to the
unit/team level. Overall, delegation has led to broadly comparable frameworks within ministries,
but with significant differences between them. The United Kingdom makes far more use of
strategic HRM practices compared to the OECD average, and lies close to the top of the range.
An accountability framework requires management to report on a range of issues and is fully
linked to strategic objectives. Departmental data, alongside Expert Service key performance
indicators, is used to show the extent to which centralisation has happened and enabled
departmental savings, as well as informing decisions on future strategy. Performance appraisal
considers HRM targets, and regular assessment of ministries’ HRM capacity is undertaken.
Forward planning covers many issues and considers a reasonable horizon.

RECRUITMENT: The United Kingdom uses one of the most highly position-based recruitment
systems of all OECD countries. Entry into the civil service is through open competition for a

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position and is subject to audits to ensure recruitment adheres to the established guidelines. Some
departments, and the Fast Stream graduate programme, use assessment centres. All vacancies are
considered in the context of departmental plans to reduce expenditure, so that

some vacancies are filled internally from surplus staff pools before being opened up to other
government departments. Recruitment of external applicants is now severely constrained by a
recruitment freeze. A range of diversity targets are still in place that aim to establish 34% women
in top management posts, 39% women in the SCS, 5% of the SCS from minority ethnic
backgrounds and 5% disabled in the SCS by April 2013.

PAY SETTING: Base salary and bonuses are set through decentralised collective bargaining and
are not indexed to other variables for administrative grades. SCS pay is set centrally by an
independent pay review body. Base salary is usually revised annually. The particular ministry
and relevant experience are the most important determinants of base salary for all grades, with
qualifications, job content, performance, and seniority also factoring in. Seniority based pay is
still used.

PROMOTIONS: Competency-based interviews are the main determinant of promotions and

there are no formal restrictions to promotion between hierarchical grades. After considering any
surplus staff, vacancies are placed on transparent listings open to the whole of government, and
there is some use of assessment centres to ensure merit-based selection. No specific policies to
advance the promotion of under-represented groups are in place.

MOBILITY: Data are unavailable regarding the trend in internal mobility, but there are plans to
increase mobility through the publicity of available positions. External mobility through
considering external posts and special secondment in career planning is encouraged.

TRAINING: The type and length of initial training varies with department and organizational
group. The Civil Service Reform Plan offers at least five days per year investment in learning
and/or development, targeted at the skills most needed for the employee’s role, and covers a
wide range of forms of learning, including e-learning, traditional training and other development
activities.

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PERFORMANCE: The United Kingdom makes substantially more use of performance
assessment in HR decisions compared to the average OECD country. Assessment is used for
almost all staff and takes the form of an annual meeting with, and written feedback from, the
immediate superior. Some departments also use 360° feedback. A comprehensive range of
criteria is used, including activities undertaken, timeliness and quality of outputs, improvement
of competencies, interpersonal skills and cost effectiveness of work. Assessment is of high
importance to career advancement and remuneration. In addition, the United Kingdom uses
performance related pay (PRP) to a significantly greater extent than the OECD average. PRP is
used for most employees and takes the form of permanent pay increments and one off payments.

WORK CONDITIONS: The average yearly working hours in the United Kingdom, 1 667 hours
in 2010, is below the OECD average of 1 745 hours. This is driven by fewer weekly working
hours and public holidays, and is partly offset by slightly more annual leave. The average
number of working days lost due to sickness was 7.6 days in 2012, and paid sick days without a
medical certificate are limited.

Senior Management

The United Kingdom uses separate HRM practices for the Senior Civil Service (SCS) to one of
the greatest extents of all OECD countries. The SCS is considered a separate group, has a
centrally defined skills profile, and potential leadership is systematically identified through
performance assessment. Closer attention is paid to managing their careers, and a higher portion
of their pay is through benefits and PRP. The ministry head and others in the ministry have
influence over the appointment/dismissal of permanent secretaries (highest level). All special
political advisors to the ministry’s head turn over with a change in government but no other
management staff do since civil servants are required to be impartial.

Industrial Relation

Civil service unions are often involved in industrial relations negotiations, and their role in
casework decisions is supported by employers. By law, they must be consulted regarding
remuneration and work conditions, which are negotiated at departmental level. Consultation of

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unions is voluntary regarding the code of conduct. The employment framework, the introduction
of new management tools and government restructuring are negotiated at central and delegated
levels. All public servants are granted the right to unionise and most are guaranteed the right to
strike without restriction.

Reforms

In June 2012, the UK Government published the Civil Service Reform Plan, which identifies
specific changes needed across the Civil Service. The reforms aim to redefine the size and shape
of the Civil Service; build capability by strengthening skills, deploying talent and improving
organizational performance; and create a modern employment framework for all staff that
encourages and rewards a productive, professional and engaged workforce.

The UK currently faces challenges of unusual severity. The Civil Service has a key role to play
in meeting them.

Reforms will focus on clarifying the future size and shape of the Civil Service, becoming smaller
and more strategic; Improving Policy making capability to be highly innovative and effective;
strengthening skills, deploying talent and improving organisational performance; and creating a
modern employment offer for staff that encourages and rewards a productive, professional and
engaged workforce.

REFERENCES

 Survey on Strategic Human Resources Management in Central/Federal Governments,

unpublished. * Data for Total Labour Force from OECD Labour Force Statistics Database;
data for Central Government from OECD (2011), Government at a Glance 2011. † Data
from International Labour Organization (ILO) LABORSTA Database and OECD National
Accounts Statistics. See Methodological Note.

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 Government at a Glance 2011, OECD Publishing, Paris. ˜ OECD (2012), Restoring Public
Finances, 2012 Update, OECD Publishing, Paris. º OECD (2010), Survey on the
Compensation of Employees in Central/Federal Governments, unpublished. ^ OECD (2012),
Rewarding Performance in the Public Sector: Performance-related Pay in OECD Countries,
unpublished.
 Public Sector Compensation in Times of Austerity, OECD Publishing, Paris. OECD (2011),
Public Servants as Partners for Growth: Toward a Stronger, Leaner and More Equitable
Workforce, OECD Publishing, Paris.
 Government at a Glance 2011, OECD Publishing, Paris. OECD (2008), The State of the
Public Service, OECD Publishing, Paris.

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