ADMINISTRATION AGREEMENT BETWEEN THE EUROPEAN COMMISSION ON BEHALF OF THE EUROPEAN UNION AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CONCERNING PART II EUROPE 2020 PROGRAMMATIC SINGLE-DONOR TRUST FUND Trust Fund No. TF073493 EC Contract No. REFORM/GA2020/007 ROMANIA STRENGTHENING THE ADMINISTRATIVE CAPACITY OF THE CIVIL SERVICE AGENCY (P174143) EC REFERENCE 20RO04 April 2023 Project carried out with funding by the European Union in cooperation with the European Commission’s DG REFORM 1 DISCLAIMER This document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union. This work is a product of the staff of The World Bank. The findings, interpretation and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank, the European Commission or the Government. 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Output 1.1 – Report on analysis of the mandate, functions, jobs and competencies within NACS and Output 1.3 – Recommendation on a proposed organisational structure, staffing plan and job descriptions for the NACS. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. 2 This report was delivered in April 2023 under the conditions set in the Administration Agreement signed between the European Commission and the International Bank for Reconstruction and Development, EC Contract No. REFORM/GA2020/007 on Strengthening the Administrative Capacity of the Civil Service Agency (P174143). This report represents a summary of activities carried out for Output 1.1 – Report on analysis of the mandate, functions, jobs and competencies within NACS and Output 1.3 – Recommendation on a proposed organisational structure, staffing plan and job descriptions for the NACS under Component 1: Support NACS in the development of the strategic HR functions and NACS expert assistance capacity. 3 Contents Acknowledgements .......................................................................................................................5 Acronyms .......................................................................................................................................6 1. Introduction and Project Background .......................................................................................7 2. Output 1.1: Summary of Activities and Main Findings ..............................................................7 3. Output 1.3: Summary of Activities and Main Findings ............................................................10 Annex: WB Proposal for NACS’ New Organizational Structure (Output 1.3) .............................. 13 4 Acknowledgements This report was produced by the World Bank Governance Global Practice team under the Strengthening the Administrative Capacity of the Civil Service Agency project (P174143), led by Anita Sobjak (Task Team Leader and Public Sector Specialist) and Holly Burduja (Co-Task Team Leader, Senior Public Sector Specialist) and comprised of Marius Merlușcă (Senior HR Expert), Ioana Dorobanțu (Senior HR Expert), Anca Florea (Senior HR Expert), Maria Sălceanu (Senior HR Expert) and Zuzana Vargova (Governance Expert). The team would like to thank Fabian Seiderer (Practice Manager, Governance Global Practice, Europe and Central Asia), Anna Akhalkatsi (Country Manager), the Governance ECA Ops Team, and the Romania Portfolio Team for their overall advice, guidance, and support throughout the development of this report. The team would like to express its gratitude to the government officials of the National Agency of Civil Servants for their constructive collaboration, in particular Lavinia Niculescu (Secretary General, NACS) and Carmen Bode (Project Manager, NACS). 5 Acronyms AC Administrative Code EC European Commission GoR Government of Romania HR Human Resources HRM Human Resource Management IDS Institutional Development Strategy IT Information Technology NACS National Agency for Civil Servants NRRP National Recovery and Resilience Plan RAS Reimbursable Advisory Services WB World Bank 6 1. Introduction and Project Background 1. The Government of Romania (GoR) has requested assistance from the European Commission (EC) under Regulation (EU) 2017/825 on the establishment of the Structural Reform Support Program, a program that supports its efforts to strengthen public administration and improve service delivery. The GoR has embarked on ambitious human resources management (HRM) reforms for civil service, which include, inter alia, the introduction of a new competency framework and a new system for competency-based recruitment. The civil service reforms initiated in Romania provide a good momentum for positioning the National Agency for Civil Servants (NACS) as a strategic leader of HRM. However, the operationalization of reforms is highly dependent on NACS’s capacity to lead the process, prepare all necessary measures, deliver key actions as planned, guide and support public institutions and at the same time monitor all the reform measures. 2. The GoR has requested World Bank (WB) support to strengthen NACS’s capacity to lead the implementation of the HRM reforms of Romania’s public administration. The project “Strengthening the administrative capacity of the Civil Service Agency” (P174143), financed by the EC through DG REFORM and implemented with the support of the WB, seeks to elevate NACS into a strengthened key central administration institution capable of effectively, efficiently, and sustainably coordinating and implementing competency-based HRM reforms in the Romanian public administration, in accordance with international good practice. 3. This report provides a summary of activities undertaken under Component 1, Outputs 1.1 and 1.3 of the above-mentioned project, as well as their most important findings. Output 1.1 consisted in a comprehensive gap analysis of NACS’s existing mandate, functions, jobs and competencies, against the ones necessary to fulfil its new mandate and functions. The bulk of this analysis for both of these outputs was conducted in the second half of 2020 and throughout 2021. In parallel to, and based on the findings and recommendations of the draft Output 1.1, work on Output 1.3 commenced, as the reorganization of the Agency was a key priority for its senior management at the time. Given the iterative work process, co-design of some of the outputs between the WB and NACS teams, and the closely intertwined nature of these Outputs, their different elements were shared with NACS on an ongoing basis: Output 1.1 was shared with NACS for feedback in several iterations (the latest draft version dates from June 2022), the final proposed organizational chart was shared with NACS in March 2022 in the form of a comprehensive Power Point Presentation, and the revised and newly elaborated job descriptions were shared between March and September 2022. However, given the synergies between the two Outputs, this cover note provides a detailed overview of all activities undertaken under these Outputs, as well as a summary of their main findings and recommendations. 2. Output 1.1: Summary of Activities and Main Findings 4. To lead the preparation and implementation of the ambitious HRM reforms, NACS needs to adapt its mandate, functions and competencies. Earlier WB analysis recommended that developing a unitary and strategic HRM system required a paradigm shift from a compliance- based approach to a performance and results-oriented model, which would also require changes in NACS’ mandate.1 Correspondingly, the Administrative Code (AC) passed in 2019 amended 1 Baseline review of the national framework for HRM and its institutionalization – (May 2019); Advisory Services on Developing a Unitary Human Resources Management System Within the Public Administration 7 NACS’ mandate2 and expanded its responsibilities with four new functions.3 These are related to, among others, the development of the general competency framework, the implementation of the new recruitment model (called national competition), and the integration of databases and record keeping for all public administration staff. NACS’s new HRM reform coordinator role requires it to go beyond monitoring compliance with the existing legislation, and to proactively support public institutions in managing their staff. For this, NACS needs to further develop and strengthen its expertise in HRM in various functional areas, improve its data collection systems, and invest more in supporting and guiding HR departments in public institutions. 5. Output 1.1 provided the foundational analysis necessary to upgrade NACS’s mandate, functions, jobs and competencies. The objectives of Output 1.1 were the following: i) identify the potential gaps and overlaps in NACS’ mandate, in its current structure, operational framework and workflows, in relation with the HRM reforms that the Agency needs to lead and deliver; and ii) conduct a jobs analysis consisting in identifying the gaps between existing competencies of NACS staff and competencies needed to fulfil the overall mandate of the Agency. The gap analysis of NACS’s existing functions against the new ones mandated by the AC was based on the assessment whether there was a dedicated organizational structure within NACS, the Agency’s de facto practices, the existence of the necessary competencies within NACS to perform the given function, and the functions’ reflection in the existing job descriptions and internal procedures. The conclusions of this analysis served as the basis for other activities under Component 1, namely the elaboration of a new Institutional Development Strategy (IDS) for NACS (Output 1.2), the revision of its organizational structure (Output 1.3) and a communications and stakeholder engagement strategy (Output 1.4). 6. The analysis for Output 1.1 (as well as for Output 1.3) was based on a combination of desk review and interviews. The desk review looked at existing relevant analysis conducted by the WB, EC and NACS itself, as well as the following strategic, legal and operational documents: • Prior analytical work: - NACS Management of Public Functions and Civil servants Report 2019 - NACS Annual Report on training of Civil Servants 2019 - WB Output 1 Deliverable 1.1 Baseline review of the national framework for HRM and its institutionalization • Strategic framework: - Strategy for Consolidating the Public Administration 2014-2020 - Strategy for the Development of the Civil Service 2016-2020 - Strategy for Training of the Public Administration 2016-2020 • Legal framework (primary, secondary and tertiary legislation): - 10 laws (including the previous Law 188/1999 on the status of civil servants and Law 215/2001 (replaced by the AC, but some articles are still valid) - 3 Emergency Ordinances (EO no. 57/2019 on Administrative Code – the main regulation on the mandate of NACS) and 1 Ordinance - 9 Government Decisions 2 According to Art. 400 of the AC the Agency’s new mandate is the following: "develop a professional, stable and impartial civil servants’ body and create a record needed for the management of staff paid from public funds". Source: Emergency Ordinance no. 57/2019 on Administrative Code, Art. 400. 3 NACS’s four new functions are the following: i) manages the National Electronic System of Public Sector Employment and keeps records of staff paid from public funds; j) provides the line ministry with statistical data processed, in accordance with the law, based on the information in the National Electronic System of Public Sector Employment, for the purpose of substantiating human resources policies targeting staff paid from public funds; m) develops competency frameworks, in accordance with the law; q) organizes the recruitment stage of the competition for filling public positions referred to in Art. 467 para. (3) letter a). Source: EO no. 57/2019 on Administrative Code, Art. 401. 8 - 8 orders issued by the NACS President • NACS’s operational documents: - NACS’s Regulation on Organization and Functioning (ROF) - NACS’s organizational chart - 60 internal procedures - 171 job descriptions - Job related questionnaires - NACS Annual Reports 7. For additional qualitative insights, the WB team conducted over 80 structured interviews. Twelve structured interviews were conducted with the main institutional stakeholders in the HRM system, as well as the main clients of NACS: the General Secretariat of the Government; the Department of Public Administration in the Ministry of Development, Public Works and Administration; HR departments from line ministries; staff associations; former National Institute of Administration; representatives from prefect institutions and from local authorities. Furthermore, over 70 structured interviews were conducted with NACS staff based on specific interview guides developed for three groups of staff: • senior management (President, Vice-president, General Secretary, Deputy General Secretary, General Directors) was asked questions regarding the organization, team and jobs; • mid-level management was asked questions regarding their teams and job profiles within their teams, • executive (operational-level) staff was asked questions related to jobs. A number of 86 participants were selected to participate in interviews to cover all types of job descriptions that exist within the Agency. When more than three different employees had the same job description, their participation in interviews was randomly decided. 8. The interviews allowed for a comparative analysis of current jobs and skills in NACS, compared to those needed to fulfil its new mandate. The information from interviews were analyzed at an aggregate level, with a granularity at the level of job categories (not at an individual level). The analysis focused on identifying the relationship between jobs and duties at the level of the position and existing competencies vis-a-vis competencies needed to fulfill the new mandate of the Agency. The analysis did not evaluate individual performance and the Output refers to the type of jobs and types of competencies relevant for the analysis, without any reference to personal data. 9. The analysis identified several areas where NACS needs to better align its current functions, structure and capacities to fulfill its new mandate outlined in the AC. The AC expanded NACS’s mandate with four new functions. However, there were no dedicated organizational structure, job descriptions or procedures to operationalize these new tasks. At the same time, some tasks present in NACS staff’s job descriptions and performed by dedicated units were not reflected among its functions outlined in the AC or the Agency’s Regulation on Organization and Functioning (ROF). At the same time, there were areas in which NACS needed to take up a stronger role. One such area is that of performance management, where NACS should elaborate procedures and counsel HR units in public institutions. NACS should also develop capacity and dedicate permanent organizational structures to attracting highly qualified applicants to the civil service through the new national contest and through building its employer brand. 10. The analysis recommends specific changes in NACS’s organizational structure to operationalize its new mandate and functions. The review of NACS’s internal regulatory documents showed that for the implementation of a number of tasks listed in the AC (tasks f, h, i, j, m, p, q and r) there are no sufficient details in the regulations, or the information are conflicting and thus need 9 clarification. The analysis also pointed out that the existing organizational chart does not facilitate the effective operationalization of the Agency’s new mandate and recommended specific changes in it. 11. The jobs analysis led to recommendations on revising the job descriptions in NACS. First, the assessment found that the existing template for the job descriptions did not comply with the new general competency framework. Second, individual objectives outlined in the job descriptions are not linked to the organizational priorities. Third, competency requirements in job descriptions are not standardized, have no uniform level of details and are not in line with the new competency framework. The competencies are either too specific, referring to certain projects or a limited timeframe, or they are defined in very vague and general terms instead of a specific definition of the skills or knowledge required by the given job. 12. NACS’s institutional capacity to deliver its functions has been significantly improved over the last years. The analysis of NACS’s capacity was assessed based on concrete results achieved by NACS, as well as staff’s capacity resulting from their de facto work experience at the Agency, as well as from formal training. During the last two years NACS visibly improved transparency and communication, it streamlined the civil service data management and has consistently engaged in externally financed projects, often with the use of European funds. NACS’s promotion of innovation within the civil service was also found to be at a satisfactory level. 13. However, NACS needs to further strengthen its institutional capacity to deliver on its mission. Performance management competency needs significant strengthening, both in terms of staff’s ability to evaluate their own and others’ individual performance, as well as in terms of linking individual performance objectives with Agency-level ones. NACS managers need stronger leadership skills, including to engage with and motivate their teams; to communicate the Agency’s mission, activities and the overall HRM reforms and NACS’s role in it. If NACS continues to strengthen its capacities along these recommendations, it can eventually become an HRM role model for other public institutions. 3. Output 1.3: Summary of Activities and Main Findings 14. Output 1.3 aimed to align NACS’s organizational structure and job descriptions with the Agency’s new mandate and functions. Given that NACS’s new mandate and the four new tasks outlined in the AC were not covered by its organizational structure, to fully exercise its new mandate, the Agency had to be restructured. Based on the analyses conducted in Outputs 1.1 and 1.2., the objective of Output 1.3 was the following: to prepare a proposal for a new organizational structure for NACS, which corresponds to its new mandate under the AC; to revise its internal procedures; to identify competency gaps; and to revise existing and elaborate new job descriptions in line with the new institutional mandate, objectives and organizational structure. For the implementation of Output 1.3, the Bank team used the new competency framework and the model for the standardization of job descriptions proposed under the Bank’s Reimbursable Advisory Services (RAS) Developing a Unitary Human Resources Management System within the Public Administration (also known as the HRM RAS). Therefore, the involvement of NACS staff in the implementation of these activities will also serve as ‘on-the-job training’ and transfer of know-how to support the broader implementation of the HRM reforms. 15. Given that the aim of NACS’s new organizational structure was to enable NACS to fulfill its new mandate, functions and objectives (as outlined in Output 1.2, in the proposal for NACS’s new IDS), the WB developed the new structure with the following objectives in mind: • To strengthen the strategic and public policy-making functions of NACS; 10 • To develop specialized expertise within NACS with respect to key HRM functions in the civil service; • To develop the capacity of NACS to operationalize the HRM reforms across the civil service; • To develop a strategic communication capacities, which can also serve as the basis for employer branding for the entire civil service; • To strengthen the Agency's ability to advise HR units in the public institutions on the implementation of the HRM reforms; • To digitize and automate processes; 16. The first stage of the analysis conducted in the second half of 2020 was based on extensive desk review and a series of structured interviews. The desk review covered the documents listed under section 2 of this report. The desk review was followed by 70 structured interviews with NACS staff, as well as with external stakeholders. The interviews, held between October and November 2020 included the following: 58 interviews with execution level (non-managerial level) staff from all NACS departments, 12 interviews with NACS managers, 15 interviews with external stakeholders (central and local public institutions and trade unions). In addition, each execution-level NACS staff provided the WB with information regarding their own education and work experience in a predefined template. 17. This first stage of the analysis allowed for important preliminary conclusions. The most important finding was that NACS’s new tasks mandated by the AC were not covered by secondary legislation or internal procedures, and that the Agency had a limited role in advising the public institutions on HR processes and the operationalization of HRM reforms. NACS’s core departments were focused on fulfilling the tasks defined by the previous legislation and NACS staff had limited qualifications and work experience in HRM itself. The existing job descriptions were not aligned with the new competency framework and individual responsibilities and objectives outlined in the job descriptions were not linked to the institutional mandate. 18. The proposed new organizational structure was developed in an iterative manner, including additional consultations with all NACS departments. Based on the first stage of the analysis, a first version of the proposed organizational structure was presented to NACS in January 2021. Given internal resistance towards the reorganization process, also evident from feedback on the initial recommendations, the WB organized a second phase of consultations with NACS. During 13 consultation workshops organized with NACS management and its main departments, the recommendations, as well as the NACS feedback were discussed in details. Additionally, change management workshops organized by the WB team for NACS employess under Component 3 of this project contributed to fostering a better understanding Agency-wide of the purpose of the HRM reforms, NACS’s role in it, and its implications on the Agency’s structure, jobs and competencies. These workshops helped increase NACS staff’s awareness of the reforms, and prepared the ground for continued collaboration on the design of a new organizational structure for the Agency. Based on this, a revised proposal for the new organizational structure was presented to NACS in December 2021. After further feedback from NACS, the WB team shared its final proposal with NACS in March 2022. The final organizational structure adopted by the NACS’ President’s order in June 2022 reflected some, but not all of the WB’s recommendations. 19. The most important changes proposed by the WB in NACS’s new organizational structure are summarized below. For the complete organizational chart, see the Annex, and for the detailed comparative analysis of the olde and proposed structure, department by department, see the separate Power Point Presentation produced under Output 1.3. • Creation of a General Directorate for Civil Service Management and Public Service Reform divided into two directorates: - Directorate for the Operationalization of Human Resources Management Reforms : This directorate would bring together all the structures with public administration HRM 11 responsibilities (competency framework, recruitment and selection, etc.), to ensure alignment between the various human resources processes and to allow for the integrated implementation of the HRM reforms. This structure would require staff with specific competences able to use the new competency frameworks in human resources processes, prepare and launch the competency-based national competition, ensure alignment of the new competency framework with the training policy of the public administration, and introduce long-term strategic planning for human resources in the central and local public administration. - Directorate for the Management of Administrative Procedures and Budgetary Staff Records: This directorate would keep track of budgetary staff in both central and local public institutions through the new dedicated information system. • Creation of the new structure Beneficiary Relations Service divided into two sub-structures: - Helpdesk Compartment: This would be an independent structure and a unique point of contact for the public institution, which could provide first level advice on various issues, including human resources and administrative procedures. It would forward more complex queries to the respective specialized structures withing NACS. - Registry, Court Ruling Records and Electronic Archive. • Creation of a strong Information Technology and Digital Transformation Directorate with the following sub-structures: - Application Development and Management Service: This unit would identify the applications needed for NACS or for public service management; analyze processes; define specifications; and develop, implement, maintain and update applications. - Information Technology (IT) Service: This unit would be in charge of the development and use of the Agency's IT system and communications infrastructure. • Creation of a Communication and Branding Service responsible for developing and coordinating the implementation of NACS’s new communication strategy (Output 1.4); the development and implementation of an employer brand for the entire public administration; promoting the image of the public administration, civil servants, and the role of NACS among both external stakeholders and the wider public; and developing the visual identity for the Agency and monitoring its use in all internal and external communication. • Creation of the Human Resources Compartment under the direct coordination of the General Secretary: By managing HR systems and processes for the Agency itself, this entity could become a role model for other public institutions, as it would demonstrate the importance of strategic positioning of the HR structure within a public institution. • Creation of the National Recovery and Resilience Plan (NRRP) Monitoring Service responsible for monitoring the implementation of reforms and investments under NACS’s responsibility, and ensuring their alignment with the relevant HRM strategies, policies and programs. • Strengthening the Public Policy and Strategic Objectives Office to ensure both the development of policies, strategies, projects and programs in the field of civil service and the monitoring and evaluation of NACS’s objectives, as per the programming and strategic documents adopted/approved at institutional and/or national level. 12 Annex: WB Proposal for NACS’ New Organizational Structure (Output 1.3) PRESIDENT President’s Cabinet (3) VICEPRESIDENT Control Unit (7+1) Service Monitoring PNRR (7+1) Service Public Relations and Internal Public Audit Deputy General Secretary General Secretary Branding (6+1) Compartment (2) Bureau Public Policies and Classified Information Strategic Objectives (6) Compartment (1) General Directorate Public Function Directorate Programs Service Relations General Directorate Regulation and Directorate Information Compartment Directorate Economics, Management and Public Service with External Financing with Beneficiaries Endorsement of Normative Acts Technology and Digital Human Procurement, Reform (51+ 1) (20+1) (11+1) and Litigations (41+1) Transformation (18+1) Resources (2) Juridical, administrative andi Protocol (19+2) Compartment Direction Regulation, Directorate Directorate Service Projects Service Service for Management of Directorate and Endorsement of Monitoring the Applications Development Information Budget and Administrative Operationalization of Normative Acts Application of Development Implementation Technology (7+1) Accounting Procedures and HRM Reforms (19 +1) (15+1) Legislation (16+1) &Administration (9 +1) (7+1) Evidence of Budgetary (incl SENEOSP) Staff Service Reporting (10) Helpdesk Public and Operational Service (28 + 2 +1) Directorate Compartment Procurements Management Litigations Service Compartiment Recruitment & (6) and Juridical 2X Service of (7+1) (7+1) Petitions administrare Selection (10+1) Assistance Management of Solving (9+1) servere (2) Compartment (5) Administrative Service Procedures (14 + Compartment Registry, Administrative Competencies Compartment Compartiment User 1) Electronic Evidence of Monitoring the Ethics in Public and Patrimony Framework and International Relations Support Court Decisions and Application of Functions Compartment (4) Special HR (2) Communications Archive(5) Legislation Compartment (4) Projects(5) Infrastructure Compartment(2) administration (5) Payroll Compartment Compartment Development of (2) Civil Servants (3) * The exact needs and number of staff remain to be discussed and clarified with NACS 13