Letters of Transmittal

To the Honourable

Hilary M. Weston
Lieutenant Governor
Province of Ontario

May it Please Your Honour:

For the information of Your Honour and the Legislative Assembly, I have the privilege of presenting the annual report of the Civil Service Commission for the period of April 1, 1999 to March 31, 2002.

Respectfully submitted

David H. Tsubouchi
Chair
Management Board of Cabinet

The Honourable David H. Tsubouchi
Chair
Management Board of Cabinet
Province of Ontario

Sir:

I have the honour to present the annual report of the Civil Service Commission for April 1, 1999 to March 31, 2002.

Respectfully submitted,

Michele Noble
Chair
Civil Service Commission

Table of Contents

1.0 INTRODUCTION

1.1 Key Drivers of Transformation in the OPS

2.0 THE PLAN FOR TRANSFORMATION

2.1 Corporate Values and Change Initiatives

3.0 ONTARIO CIVIL SERVICE COMMISSION

4.0 THE OPS HUMAN RESOURCES STRATEGY

4.1 Human Resources Plans and Planning

4.2    Competency-Based HR Management

4.3    Investing in Learning

4.4    Review of Project-Based Work

4.5    The Ontario Internship Program

4.6    New Human Resources Management Policies

4.7    Review of the Public Service Act

4.8    Collective Bargaining Cycle

4.9    Grievance Administrative Project

5.0 OTHER HUMAN RESOURCES AREAS OF INTEREST

5.1    Accountability

5.2    Health and Safety

6.0 SENIOR MANAGERS IN THE OPS

6.1    Executive Compensation

7.0    ONTARIO PUBLIC SERVICE STATISTICS 1999-2000

APPENDIX A

List of Members of the Civil Service Commission for 1999-2000

Introduction

The Ontario Public Service (OPS) is continuing to undergo an unprecedented transformation. This transformation is leading us toward a vision of public service excellence --- a public service that:

• is clearly focused on being customer-centred
• has a strong emphasis on quality service and continuous improvement
• is partnering enthusiastically with the private and broader public sectors
• strives to implement innovative improvements of the everyday working life and culture of the OPS, and
• is able to attract, retain and develop qualified public administrators who will effectively lead the OPS into the 21st century.

This Annual Report provides an update on our progress in achieving this vision for the OPS. It describes new roles, structures, processes and accountabilities related to human resources management and organizational development. It also addresses initiatives pertaining to health and safety, performance and employee benefits. Through the successful implementation of these vital strategies/initiatives, the Ontario Public Service can meet the public’s high expectations and achieve its vision of excellence.

1.1  Key Drivers of Transformation in the OPS

There is a firm commitment in Ontario to make government work better by:

• adopting an "outside-in" focus on service delivery
• becoming more integrated, flexible and results-oriented
• ensuring public accountability
• focussing on core businesses
• integrating strategic policy and programs, and
• maximizing the use of resources, e.g., by reducing duplication, streamlining delivery, developing enterprise-wide business supports.

The OPS faces many critical challenges in implementing the government’s commitment to transformation, including:

Restructuring

To achieve these objectives, it has been necessary to work differently and re-examine traditional service delivery models. We have been breaking down silos across the OPS, in order to improve efficiency of core businesses and to facilitate greater integration and collaborative planning. We are delivering non-core businesses through alternate service delivery where work can be done more effectively and efficiently by others.

Labour Relations

The size of the OPS at the end of March 2000 was 61,250 full-time equivalents (FTE). Since June 1995, there has been an employee reduction of 19,450 FTEs and the additional elimination of 2,100 vacant positions.

These reductions have been achieved through a number of efficiency and restructuring initiatives undertaken by the government.

For example:

• Approximately 29% of the reductions resulted from alternative service delivery of existing government programs. Some of these initiatives include outsourcing of the Ministry of Transportation's road maintenance program, restructuring of the Ontario Securities Commission and the property assessment program by the Ministry of Finance, the Ministry of Community and Social Services' Client Placement Initiative and Management Board Secretariat's transfer of Ontario Realty Corporation.
• 27% of the reduction resulted from employees taking advantage of pay in lieu of notice or an early retirement option;
• other reductions were achieved through the transfer of functions under the Hospital Restructuring Project and local services realignment (7%), streamlining of government operations (23%), elimination of vacant positions (10%) and the expiry of short-term or unclassified contracts (5%).

Renewal of the Workforce

The OPS continues to face ongoing and complex change including:

• increasing public expectations for quality service
• new government roles, structures and ways of working
• new information technology applications
• new service delivery methods and partnerships inside and outside the OPS, and
• increased accountability at all levels.

Line managers are confronting critical pressures in responding to these changing demands while maintaining and developing new operational capacity to meet business goals.

These pressures have highlighted the need to address gaps and shortages in key occupations (e.g., policy development, communications, IT systems) and broadly needed operational and technical skills (e.g., contract management). An ageing workforce and management cadre will further exacerbate this.

To ensure future generations of skilled and motivated public service professionals, the OPS has developed strategies to develop, attract and retain employees. These renewal strategies will include, among others, focused investment in learning and development, competency-based succession planning for the management cadre, youth and internship programs, targeted recruitment and the enhancement of pride in the public service.

2.0 THE PLAN FOR TRANSFORMATION

The Transformation Plan, which includes operational, strategic and cultural changes, began in 1995. Year One of the transformation aggressively addressed the fiscal challenges of operational change. Year Two was a time for strategic change; refocusing the objectives of the OPS and building a vision of a better OPS in the future. Year Three was one of transforming the role of Government and introducing new OPS service and business delivery mechanisms. Year Four continued the implementation of the new ideas and structures from earlier phases of the service transformation and began to evolve toward a “citizens-first” approach to quality service. In Year Five, the OPS saw the start of the cultural change within the OPS and the process of becoming a learning organization.

In Year Six, cultural change continues within the OPS while integrating policy and service delivery. (Source: Building a Customer-Centred Ontario Public Service, Ontario Public Service Restructuring Secretariat, Cabinet Office, March 2000.)

2.1 Corporate Values and Human Resource Initiatives

The Ontario Public Service Restructuring Secretariat, Cabinet Office, has been helping to lead the public sector reform in the OPS. It has brought the new vision of the OPS to life through annual reports on a "Framework for Action: building the OPS for the Future". These reports focus on vital and timely topics such as OPS values, quality service and becoming a learning organization. Reinforcing OPS values, implementing corporate/ministry human resources strategies, and investing in learning are all integral to quality service and to the ongoing process of change and renewal.

The Ontario Public Service Values Statement says that members of the OPS are committed to upholding the highest level of service quality and public trust. Under the terms of the Public Service Act, and through an oath of office and secrecy, public servants in Ontario are responsible to the public through the elected government and Ministers of the Crown.

Supporting the OPS reform is a series of human resource initiatives:

• development of the Human Resources Plan for the Senior Management Group. A key objective of the Plan is to develop public service leaders who can manage the challenge of a changing environment.
• development of the Human Resources Strategy for employees outside of the Senior Management Group. The Human Resources Strategy links human resources planning to business planning, works to improve a work environment where employees feel valued and are motivated to learn continuously.
• recognizing excellence in the public service. The corporate Amethyst Awards are given annually for outstanding achievements by Ontario Public Servants. The Awards are for members of the OPS (individuals, groups or partnerships) who have made exceptional or outstanding contributions on the job involving one or more of the areas of: client service, innovation, valuing people, professional achievement. By 2000/2001, ministries are also expected to introduce and implement internal recognition award programs.

Studies of key OPS positions in support of a strategic approach to managing human resources. These have included an assessment, at the executive levels, in such areas as:

• Assistant Deputy Minister, Policy
• Chief Administrative Officer
• Human Resources Director
• Finance Director.

The studies described the demographics of these executive groups and recommended roles, accountabilities and competencies that reflect emerging trends in public administration.

3.0 ONTARIO CIVIL SERVICE COMMISSION

Management Board of Cabinet (MBC) has overall responsibility for managing the financial, human and physical resources of the Ontario Public Service.

The Civil Service Commission (CSC) administers the Public Service Act, and reports to the Chair of MBC. The Public Service Act, the legislation covering employment in the OPS, defines the composition and establishes the statutory authority of the Commission as an independent authority and non-partisan body to oversee matters affecting employment and human resources management within the Ontario Public Service. The CSC and MBC ensure that appropriate administrative policies are in place to manage human resources.

An independent authority and non-partisan body, the Commission is responsible for ensuring the application of the merit principle within the public service, particularly in the senior management ranks.

Since the delegation of its human resource management functions to the Management Board Secretariat, the CSC continues to operate as a tribunal. The tribunal carries out the drafting of regulations and has adjudicative powers which, in law, cannot be delegated.

More specifically, the responsibilities of the Commission are to:

• recommend regulations relating to a wide range of human resource management issues affecting salaries, classifications, recruitment, benefits and hours of work, subject to the approval of the Lieutenant Governor in Council;
• approve appointments, overage appointments, and assignments;
• considering a wide variety of staffing and recruitment actions, including salaries for individuals and appointments at the SMG3 level. (Note: authority for recruitment below the SMG 3 level has been delegated to ministries.)

Some of the administrative matters, which regularly appear on the Commission’s agendas, include recommendation of regulations regarding the establishment of classifications and compensation for non bargaining unit staff, approval of senior appointments and contracts, and waivers of competition.

The Commission also acts as the Board of Trustees to the Ontario Government Employees’ Charity Trust.

The CSC carries out its mandate in cooperation with MBS and the Executive Development Committee (EDC). MBS provides policy advice and administrative support to Management Board of Cabinet. MBS also supports the government as an employer. For example, it establishes policies for managing the government’s human resources, based on the regulations administered by the Civil Service Commission.

4.0 THE OPS HUMAN RESOURCES STRATEGY

The Human Resources Strategy (HR Strategy) includes initiatives to renew and revitalize the Ontario Public Service by building capacity, enhancing flexibility and improving the workplace environment. Its initiatives fall within the following three categories:

Understanding work and the workforce to improve our understanding of current and future work, and to ensure that we plan effectively to meet knowledge, skill and performance requirements. Examples include strategic ministry HR Plans (including youth strategies and ministry learning plans) being incorporated into the business planning process beginning 2000/2001.

Investing in learning and development to establish a climate of continuous learning in order to develop a workforce with the knowledge, skills and capabilities to meet current and future business needs. Examples include corporate learning programs for managers, feeder group and employees such as Orientation to Public Service as a Profession, Labour Relations Training, Management Development and Quality Service.

Updating HR policies and practices to provide flexible, up-to-date human resources management policies and practices that will support achievement of business and revitalization goals. Examples include the new HR management policies (see section 4.6) which incorporate competencies and a review of the Public Service Act (see section 4.7).

The HR Strategy is designed to be implemented flexibly and over time. As outlined in the HR Strategy, some actions, to be led centrally by Management Board Secretariat (MBS), include:

• developing new and updated HR policies and practices
• establishing best practices for use of behavioural competencies, including providing staff specialists to advise on and assist with effective application
• establishing and administering the Centre for Development, including planning and providing corporate learning programs, and
• administering and funding the Ontario Internship Program.

Other actions are undertaken locally by ministries, managers and individual employees themselves. The HR Strategy outlines expectations that ministries will:

• develop and submit annual Human Resources Plans through the Business Planning and Allocations (BPA) process
• align use of behavioural competencies with approaches recommended by MBS
• invest in planned learning and development of managers and staff, and
• build capacity of the ministry HR function to provide strategic support.

4.1 Human Resource Plans and Planning

Effective organizations proactively use human resources planning to anticipate changing workforce requirements and address gaps in capability. Current skill shortages in the OPS have been identified in the areas of labour relations, communications, business analysis, IT systems, strategic HR planning, people management, policy development and customer service. There is also a growing need for skills in service management, project management, and I & IT management.

The HR Strategy calls upon ministries to shift the focus from tactical labour adjustment plans to strategic, longer-range HR Plans. Over time, these HR Plans will be fully aligned and integrated with business, information technology and succession plans.

Ministries are expected to have HR Plans in place that cover all core businesses of the ministry within three years, i.e., by 2003. At maturity, a ministry HR Plan will include:

• current and future work associated with core businesses
• characteristics and deployment of the current and future workforce
• current and anticipated gaps in capability and/or deployment
• plans for addressing skills gaps, expertise shortages and demographics or mobility issues
• ministry learning plans
• revitalization strategies and youth plans, and
• related performance measures (incorporated into business plan).

HR Plans are intended to complement ministry business plans, serve as a tool for decisions about workforce management and through reporting, provide input to the implementation and ongoing evolution of the HR Strategy corporately and in ministries.

In order for this goal to be achieved, ministry HR specialists must have the skills in order to compile, interpret, evaluate, assess, and report on the relevant workforce data, issues and trends.

4.2 Competency-based HR Management

The ability of an organization to identify, develop and sustain core competencies has been widely recognized as a strategic success factor. The HR Strategy introduces behavioural competencies for the OPS workforce to help describe the dynamic interaction of structure, infrastructure and people in an environment of change. With this understanding, the OPS can more effectively assess and plan to meet our workforce needs, communicate expectations and develop employees. Over time, competencies will be used as needed to support achievements of business and performance results.

To promote acceptance of this new management practice, enhance HR specialists’ skills and ensure relevance to managers and staff, MBS has provided for flexible implementation and engaged interested ministries in projects to demonstrate the benefits of using behavioural competencies. To help ministries apply and communicate about competencies, MBS has developed and published a variety of resources which include the Dictionary of Competencies, the Guide to Competencies in the OPS, the Enterprise Competencies Workbook and Tools for Competency Practitioners.

4.3 Investing in Learning

Through the HR Strategy, MBS has established a Centre for Development to provide leadership for investment in learning as a key revitalization initiative. The Centre for Development is intended to provide ministries with access to high quality learning programs for employees outside the Senior Management Group by subsidizing development and testing of programs that meet corporate priorities and ministry needs, consistent with the objectives of the HR Strategy. These learning programs are offered to staff and managers through the Shared Services Bureau’s generic training function.

An annual Corporate Learning Plan describes learning programs for managers and staff. These "programs" include a combination of formal, classroom-based learning; informal, on-the-job learning; and resources for self-directed learning. The Corporate Learning Plan recognizes the need for ministries to have access to formal learning programs for intact work groups as well as individuals, and for learning programs and resources to be available to employees where they work. Several corporate learning programs were delivered through the Centre for Development in 1999/2000 including Project Management for Policy, HR Management for the 21st Century and Labour Relations Training for Managers. Further programs are being planned for 2000/2001, including, Orientation to Public Service, Negotiation and Mediation Skills and Communicating Change.

4.4 Review of Project-based Work

Project-based work is an area of increasing importance in the OPS and other public sector organizations. MBS has conducted a review of such work in order to identify key HR management issues, describe best practices for managing a project-based workforce and propose practical recommendations for addressing identified issues.

The review found that up to 10% of the OPS workforce is currently engaged in project-based work. Some of the key issues include:

• difficulty in establishing project teams with the necessary skills in a timely way
• retaining project team members for the time they are needed
• ensuring skilled employees have appropriate career opportunities following a period of project-based work
• managing temporary vacancies created by employees on project work
• inconsistency with which compensation, classification, performance management, succession planning, and reward and recognition systems are applied, and
• inefficiencies in "reinventing" processes for establishing project teams.

On a structural front, the organization’s next step includes identifying the roles and associated competencies for Project Leaders and Sponsors. This will also involve promoting project competencies by developing project "centres of expertise" within ministries. These centres will be able to provide project start-up experience within and across ministries.

4.5 The Ontario Internship Program

The Ontario Internship Program (OIP) was launched in April 1999 as part of the corporate HR Strategy. After a decade of constraints, downsizing and restricted hiring, the OPS had become a fixed workforce and less than 5% of OPS employees were under the age of 30.

The objective of the OIP is to help revitalize the OPS by recruiting recent college and university graduates into areas of existing or emerging skills shortages. To be eligible, applicants must have graduated with a degree or diploma from a university or college within five years of applying to the program, and also be eligible to work in Canada.

Program Outline

Each year the program offers 100 recent graduates a chance to develop the skills and gain the experience needed to establish careers in the Ontario’s Public Service. The program provides a two-year work placement within the Ontario Government consisting of three eight-month rotational assignments. The assignments provide Interns experience in three different ministries/central agencies and three different functional areas of public administration such as financial and business planning, policy development and service management. OIP provides on-the-job and in-class training, and includes a Corporate Orientation Program. Upon placement with a ministry, Interns are assigned a manager who is the placement supervisor, and a mentor to assist with their learning plan.

Interns are hired on a contractual basis. Though there are no guarantees for full-time employment after their two-year experience, it is anticipated that due to the identified skill shortage areas, opportunities will become available through the regular competitive process. It is anticipated that Interns will move into mid-level management positions throughout the OPS upon completion.

Results

In 1999, and again in 2000, 100 Interns were hired. In the Fall, OIP will be on university and college campuses to promote Year Three of the program.

4.6 New Human Resources Management Policies

 In early 1999, Management Board Secretariat introduced a new Human Resources Management Directive that details the principles and requirements underlying all human resources policies and practices in the OPS. The directive makes a commitment that the OPS will develop, recruit and retain public servants that are:

▷     professional and committed to quality service

▷     knowledgeable and creative

▷     responsive to change, and

▷     motivated to learn and continuously improve.

In the Fall of 1999, MBS explored the needs and opportunities for progressive change in specific human resources management functions — staffing, performance management and learning and development. It consulted with hundreds of stakeholders across the province: internally through focus groups, presentations and surveys and externally with representatives of other public jurisdictions and the broader public and private sectors through key informant interviews.

Key internal feedback highlighted a readiness for change, a need for visible support from senior managers, clarification of roles and accountability and a balance of OPS-wide consistency with flexibility in implementation.

The result of the consultation was Cabinet approval of three new operating policies (effective June 1st) which support the OPS HR Strategy and which form a more modern and integrated approach to human resources management of the OPS.

The new Staffing Operating Policy replaces over 20 former policies and guidelines and streamlines policy requirements by removing unnecessary rules. This policy covers recruitment and selection, appointments, assignments and transfers, workforce adjustment and separation. (Provisions of collective agreements are unaffected.)

The policy serves to broaden access to employment opportunities in the OPS. Geographic restrictions in areas of search are not used in competitions open to members of the public. The policy provides greater latitude in decision-making for managers in developing and implementing recruitment and selection strategies.

Competitions will continue to be the primary means of filling positions, while conditions have been established to facilitate waivors of competition. The principles of merit and equal opportunity must continue to be demonstrated in all hiring decisions. The policy also provides for greater flexibility in meeting the needs of a wide range of organizational structures in the OPS, e.g., traditional hierarchy, matrix, project-based, ministry clusters.

The new Performance Management Operating Policy requires managers and employees to work together to ensure that every OPS employee has a documented performance development plan (PDP) which is linked to the business planning process, as well as an annual, written performance appraisal. Probationary employees are also required to have a PDP within 60 days of appointment. The PDP’s include an individual learning and development component which supports ongoing career management and succession planning.

The new Learning and Development Operating Policy promotes a planned and focussed approach to investing in the learning and development of all employees. This is a critical factor in renewing and revitalizing the OPS. The identification of learning and development needs and activities (not limited to formal “classroom” training) is integrated with the performance management process.

The new policies were introduced this Spring through orientation sessions delivered to human resources specialists and managers. A vast array of tools and resources to help managers and employees implement the new policies are available, electronically on the OPS Intranet. In the Fall of 2000, skill-building workshops will be available to managers on topics covered by the new policies, e.g., recruitment and selection.

Over the next few months, performance measures and benchmarks will be identified in order to evaluate the effectiveness of the HR management policies. It is anticipated that the new WIN system will be a particularly useful monitoring mechanism.

4.7  Review of the Public Service Act

The Public Service Act (PSA) and its regulations provide the principal framework for human resources management in the Ontario Public Service. The Act sets out the duties, powers and composition of the Civil Service Commission (CSC), and provides that the Chair of the CSC must have the rank of Deputy Minister, intending that the CSC is a neutral, apolitical body. It also describes the duties and powers of Deputy Ministers with respect to human resources management.

The Act allows the CSC to make regulations, subject to the approval of the Lieutenant Governor in Council, concerning issues such as hours of work, release from employment, staff development, and leaves of absence. These are contained in Reg. 977 and companion regulations. Reg. 57/95 designates certain employers as Crown agencies, and Reg. 435/97 describes rules of conduct for public servants.

The PSA was first enacted in 1878, in an era when there was no collective bargaining in the OPS and employment standards legislation in the province was virtually non-existent. The Act has been amended many times over the previous 122 years, and the result is legislation in which changes have been layered upon changes, creating a "patchwork quilt" containing unnecessary restrictions and arcane details. As a consequence, it is not user-friendly to human resources staff, line managers and the employees who are governed by it, and it hinders efficient and effective human resources management processes.

MBS is now reviewing the PSA to determine what changes are needed. The consultation approach includes an inter-ministerial working group. That group identified points for discussion with ministries, bargaining agents and other stakeholders. Questions raised during consultation have focused on issues such as:

▷     Which terms and conditions of employment can be dealt with through directives instead of regulation?

▷     What improvements can be made to the grievance process for non-bargaining unit employees?

▷     What changes can be made to create greater flexibility in the strategic use of contract/unclassified employees to meet customer needs and new priorities?

▷     Should the Act be changed to permit Deputy Ministers broader scope to delegate their powers and duties? How?

4.8  Collective Bargaining Cycle

Management Board Secretariat, on behalf of Management Board of Cabinet (MBC), engages in collective bargaining with seven bargaining agents representing over 50,000 employees in the Ontario Public Service, and one bargaining agent which represents about 250 employees outside of the OPS. The following table shows the various bargaining agents, their size, the expiry date of their current agreement, and whether they operate under a right to strike or a mandatory arbitration framework:

*Currently, a two-year agreement is in arbitration.

Approximately eight months (sometimes longer for larger bargaining agents) prior to the expiry dates of the collective agreements, MBS begins preparing its strategy for the upcoming negotiations. Depending on which bargaining agent is involved, essential services negotiations must commence at least 180 days prior to the expiry of the collective agreement.

Developing the negotiating strategy entails balancing the experiences from the last rounds of talks, together with the government=s commitment to its workforce and the external pressures of the broader public and private sectors in Ontario. The issues to be considered will likely include the need to attract and retain skilled younger workers, who are the next generation of public administrators, and the challenge of competing with other public and private organizations for a small pool of skilled workers in key areas, e.g., Information Technology. At the same time, the Ontario government recognizes that it must be a model for the broader public sector (municipalities, universities, schools and hospitals) in reaching collective agreements that are responsible and affordable.

MBS has developed an electronic database, the Collective Agreement Information System (CAIS), to assist staff during the upcoming rounds of collective bargaining. CAIS allows users to easily view, search and compare language in various collective agreements.

4.9 Grievance Administration Project

The Grievance Administration Project (GAP) was initiated by the OPS as an employer in the summer of 1999. It was conceived as part of an overall employer strategy to improve labour relations, concurrent with an 18 month project, which resolved over 19,000 backlogged grievances. The purpose of this project was to conduct a diagnostic review of labour relations across the OPS and to make recommendations in order to support a "cultural shift" in OPS labour relations. This shift is intended to improve labour-management relations and reduce conflict.

As part of the GAP, the OPS hired an independent consultant to assess the current state of labour relations in the OPS and to offer recommendations as to improvements that should be made. The consultant’s report was completed following consultations with over 40 stakeholders. Consultation meetings canvassed general views about the state of labour relations, what was working well, and what was not, what would be required to improve conditions, and what resources would be required to effect change.

The consultant’s report sets out a number of recommendations to continue the shift of the labour relations climate in the OPS. Some of these recommendations include the need for corporate guidelines on labour relations, exploring the use of conflict resolution, Alternate Dispute Resolution in managing conflict, examining the OPS disclosure policy, manager support, development of mechanisms that reinforce accountability (including costs), training in labour relations and dispute resolution processes, and dedication of time for parties to resolve grievances.

The report is being finalized and is expected to be formally released in the near future. Management Board Secretariat is developing a framework for the implementation of the recommendations.

5.0 OTHER HUMAN REOURCES AREAS OF INTEREST

 The following highlights other human resources areas that address topical issues identified to be of interest by this year’s conference participants.

 5.1 Accountability

 Management Board of Cabinet, as corporate manager and employer, is responsible for giving assurance to Cabinet that the government’s resources are being managed efficiently and effectively and that the people of Ontario are receiving exceptional customer service. Corporate management directives are one of the main accountability mechanisms that enable MBC to perform its governance role.

 The Accountability Directive lays the foundation for defining the standards for management practice in key areas such as financial management, human resources and administrative policies. The Accountability Directive sets out an accountability framework (which includes definitions, key elements and principles) and the responsibilities of public servants. Other tailored corporate management directives and policies specify the mechanism for applying the framework to different types of accountability relationships, both internally and externally with public and private sector partners.

 A new Delegation of Authority Key Directive has been developed to ensure proper delegation of authority exists to support the achievement of government objectives. A key principle is that accountability cannot be delegated or changed.

Appropriate delegation of authority allows ministries and agencies to achieve their objectives through:

▷     basing delegations on operational needs and risks instead of organizational positions

▷     designing their own delegation policies to support the achievement of their program objectives, while respecting legislation, government-wide policies and directives. (Source: Delegating Authority – Achieving Objectives and Managing Risks, Office of the Provincial Controller, Ministry of Finance, March 10, 2002.)

Performance Measurement is a management tool to assist managers in making decisions and discharging responsibilities. It provides direction as to the appropriate behaviours within an organization. The Performance Measurement in Business Planning and Allocation Reference Guide outlines the rationale, process and cycle of measuring performance. It defines key areas of measurement and outlines general criteria to help managers implement performance measurement in a meaningful way.

5.2 Health and Safety

Accountability

Management Board Secretariat sets corporate direction and health and safety standards for all ministries in the Ontario Public Service through a corporate Health and Safety Directive (Directive), other specific policies and best practice guidelines. The corporate Directive delegates accountability to Deputy Heads in each ministry to:

▷     ensure the health and safety of employees by developing strategies and priorities and implementing a health and safety program to supplement the minimum requirements of the Occupational Health and Safety Act (OHSA) and the corporate policies, and

▷     establish and maintain internal systems for health and safety program management and allocate funds, time and human resources as necessary.

As part of the MBS Business Planning process, the Directive (which has been in place since the early 1990s) is slated to be reviewed this fiscal year to ensure that it continues to articulate the principles of a safe and healthy workplace for employees, is consistent with changes in the OPS and permits the organization to move forward toward best practice.

 There have been several recent initiatives to strengthen health and safety accountability. An Action Plan will be developed and communicated to ministries. The Action Plan will ensure that ministries comply with the Directive, develop appropriate risk mitigation strategies (i.e., programs and procedures to control hazards, provide training for managers and for employees) and have the capacity to respond strategically to health and safety issues. MBS contracted with an external consultant in 1998 to develop a Health and Safety Accountability Framework for the OPS. The Framework tools were tested in 1999/00 by evaluating the Injury, Illness and Employment Accommodation Program in the OPS (see below for details on this Program).

The next step is to communicate the Framework and accompanying tools to ministries to assist them to assess their risks, develop appropriate health and safety programs based on their needs and to move towards best practice.

Injury, Illness and Employment Accommodation Program

The Injury, Illness and Employment Accommodation Program (IIEA) was implemented in October 1997 to reduce costs and improve health and safety performance in the OPS. The result is a 10% drop in absenteeism. The IIEA Program provides an integrated approach to managing absences due to occupational and non-occupational causes. The goals of the IIEA Program are to:

▷     ensure fair and consistent practices are applied across the OPS

▷     provide timely and individualized assistance/employment accommodation for employees who are injured, ill or who have a disability, and

▷     manage and reduce absenteeism by focusing on treating absences as non-culpable and providing assistance and accommodation to enable an early and safe return-to-work.

An OPS wide injury and illness benchmarking report was first prepared in 1995 and has been done annually since 1997. The report:

▷     quantifies yearly injury and illness absence statistics (short-term disability, long-term disability and workplace insurance) by ministry

▷     determines costs and potential savings for the OPS

▷     enables ministries to evaluate their progress in a calendar year and to establish objectives for the following year. Ministries (in consultation with MBS) determine the external absenteeism benchmark which best reflects its business. These external benchmarks have been tiered into low, medium and high risk levels

▷     enables MBS to assess the annual progress of individual ministries and the OPS in relation to established targets.

6.0  SENIOR MANAGERS IN THE OPS

 The Human Resources Plan for Senior Managers of the OPS is designed to develop and foster current and future leaders who can manage the challenge of a changing environment.

The Executive Development Committee (EDC) and Centre for Leadership (CFL) developed a Human Resources Plan for Senior Managers in March, 1997, to address the changing business of government, the evolving employment relationship and demographics of the Senior Management Group. The plan establishes human resources management strategies and programs to support and develop OPS leadership capabilities. It is the product of extensive consultation with Deputy Ministers and senior managers across the service, input from other organizations and research in leading-edge practices. The plan was reviewed and updated by EDC in July, 2002.

The plan sets out roles and responsibilities for all the partners. There is a yearly cycle for managing such important processes as succession planning and performance management. Education, training and development opportunities are related not only to new corporate core competencies for executives, but are also constantly adapting to the changing business priorities of government.

The Human Resources Plan demonstrates a commitment to OPS leaders. It recognizes their value to the OPS and the challenges ahead. The plan helps the OPS manage restructuring through such measures as development of corporate core competencies that reflect the need for new kinds of leadership, and learning opportunities that encourage new ways of doing business.

The plan is a tool for corporate and ministry-based planning. It is also a tool that individual senior managers should use to manage and develop their careers, whether they spend the rest of their careers in the OPS or find opportunities outside the public service. It should also be used by leaders to encourage and contribute to the development of the careers of those who have potential to move into executive positions.

 6.1    Executive Compensation

 In December 1996, the government introduced a performance-based pay system for Deputy Ministers and senior managers in order to bring greater accountability and value for money to the civil service.

In order to attract and retain the best and the brightest, in June 2000, the government accepted the advice of an expert external consultant and approved new salary ranges for Deputy Ministers and Senior Managers effective April 1, 2002.

The independent review showed that executive pay levels in the Ontario Public Service, which had not changed in four years, were falling further and further behind those in other government organizations and in the private sector. The consultant recommended that executive salary levels be increased to be more competitive with what senior staffs are being paid in other parts of the public sector.