1.4.1 HRM instruments
bpk
’s staff has increased substantially and its mandate has expanded significantly.
bpk
’s hrm unit has developed a variety of modern instruments such as: • a national placement policy based on educational background;
• bpk-sponsored studies; • a periodic rotation policy between regional offices and head office;
• a promotion system based on civil service criteria, competence evaluation, educa- tion, experience and input about actual performance;
• a career development programme in which there is equal opportunity to work in audit and non-audit units.
As noted above,
bpk
’s existing staff classification and remuneration system is in general still based on its former ranking and qualification periods system rather than
on employee performance. A major success is that promotion is no longer based on seniority. Further negotiations with the Ministry of Civil Servant Empowerment are
taking place to modernise bpk’s employment conditions.
bpk
has already enhanced its potential flexibility by allowing early retirement in combination with early pensiona
golden handshake. Since many
bpk
instruments are relatively new the measures and other provisions for ensuring stable and qualified personnel are not fully in place and
effective yet. Managers are expected to provide guidance and challenge the creativity and knowledge
of their personnel. A lot of potential is currently unused. Coaching new employees is very important. Furthermore, a strong performance appraisal cycle concentrating on
the manager employee relationship is needed whereby feedback in both directions is a must. Appraisal results must be discussed at a higher lever to gain a better picture of
developments in a particular unit. Group sessions about the targets set in each unit’s Balance Score Card will create more awareness and motivation for the direction in
which the unit has to go. bpk
has decided to assess its entire staff. Echelons ii to iv will be assessed first. We wonder whether it would be better to wait until the individual performance
measurement system is ready so that attitude can be measured together with performance. We are curious about the criteria integrity, knowledge and behaviour to
be used. The process will be outsourced almost fully to external consultants. We consider this sub-optimal. External consultants are less aware of the specific skills and
history of each staff member. hrm should at least be involved in the assessment project.
bpk
has responded that its hrm now has trained internal assessors. According to
bpk
’s staff everyone will be assessed and then receive extra training, take early retirement or be ordered to stay at home with loss of pay. We noticed that higher
echelons seem to be more conservative than lower ones and that they generally do not maximise the potential of their juniors and audit results. We wonder what action
bpk
will take if this is confirmed by the assessments.
1.4.2 Personnel directlyindirectly involved in audit
According to information supplied by the Human Resources Bureau the ratio of
bpk
’s support staff to staff directly involved in audit is almost 4060. Although there is no
general target figure for this ratio it might be rewarding to evaluate the actual need for such a percentage of support staff. We admit that there is no clear line between direct
and indirect activities but we can imagine that given
bpk
’s many challenges the current ratio is not optimal.
For a well-balanced personnel mix
bpk
needs more insight not only into the staff ’s educational background but also into their potential and practical experience.
Knowledge about their employability at the right level and right place in
bpk
is also very important. It would prevent personnel being employed sub-optimally at the
expense of
bpk
’s primary process: audit.
bpk
’s hrm unit states that it cannot solve this situation owing to the staff ’s strong legal position based on governmental regulations creating a lifetime employment
guarantee. Whereas
bpk
law no. 15 2006 gives
bpk
strong independence section 2, section 9 g and h allows
bpk
to renewtailor its employment conditions to its present needs.
1.4.3 New personnel assessment
For recruitment purposes the Ministry of Civil Servant Empowerment determines the formation; however,
bpk
has its own recruitment method. It is free to determine the maximum age and educational background of candidates.
bpk
hires a consultancy firm to conduct recruitment. This firm has expertise and competence to measure a
candidate’s profile, for example by conducting a tpa test equivalent to gmat Graduate Management Admission Test. The hrm unit also considers the consultancy
firm to be more objective and independent. The method used has been enhanced year by year. In the past two years, central staff has played a role in interviewing candidates.
The Peer Review team recommends reducing the extent of outsourcing of recruitment activities step by step to avoid overdependence on consultants. Moreover, hrm will
otherwise not gain experience to perform this task. Independence inside
bpk
should be safeguarded by compliance with the Code of Ethics. Furthermore, hrm should
organise a thorough check of the qualifications of accountants that sign reports and determine whether delegation by Board members is appropriate.
1.4.4 Assessment Centre
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