Key Words: Appeal Mechanism; Appraisal Cop; Appraisal Training; Appraisee; ...... (1996) hold that behaviors may include thoughts, where the thought leads ...... He frequented to a hot-pot shop, a Thai foodstuff shop, a fast-food shop, ...... the Action Plan and so forth the worksheet for Grid Approach I have been changed on.
AN EXAMINATION OF A PERFORMANCE MANAGEMENT SYSTEM IN CUSTOMS AND EXCISE SERVICE OF HONGKONG SPECIAL ADMINISTRATIVE REGION
Gryphon Sou BS(Eng) MAdmin
A Dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Management International Management Centers validated by Southern Cross University ©2001©
ABSTRACT An Asian governmental organization of over 5,000 staff once employed a Performance Management System that was characterized by the adoption of ‘Core-Competency’ and ‘Forced Distribution’ Approaches.
The former
Approach assumed that a menu of ‘Core-Competency’ was applicable and relevant to the performance appraisals of the employees in the same rank regardless to their respective job settings. The latter Approach aimed to regulate the distribution of Overall Performance Ratings in every Annual Performance Appraisal Exercise. To ensure adoption of these Approaches, ‘Assessment Panel’ was also integrated as ‘Appraisal Cop’ into the subject Performance Management System. Besides, the Performance Appraisal Forms and ‘Assessment Panel’ were featured by multi-raters and collective assessments in performance appraisal.
After two
years of implementation, it was the right time to evaluate the effectiveness of these Approaches in managing performance. This Action Research revealed that the senior management of the subject organization had the determination to enhance its human resources functions. A Performance Management System was formalized in the hope of better managing the human resources of the subject organization.
However, the
concept of Performance Management System within the subject organization apparently remained on Performance Appraisal. Obviously, the inventor(s) of the subject System believed that a Performance Appraisal Form bearing the signatures of an Appraising Officer, a Countersigning Officer and a Reviewing Officer would be more justified and defendable. ii
Furthermore, Performance Appraisals regulated by an ‘Assessment Panel’ would be seen to be fair and more convincing. However, Performance Appraisal in the subject organization was sometimes instrumentalized by a form signed by multi-raters. Those people involved in the appraisal processes appeared to be bound by a bureaucratic mechanism. Some of them were even trapped in a false belief of ‘Forced Distribution’. To achieve the ultimate mission of a formalized Performance Management System, Performance Management Cycle should be developed. It came to light that Performance Management Cycle should be regarded as the essence of such a formalized Performance Management System.
It could highlight the
communicative and interactive components of an effective Performance Management System. Furthermore, ‘Assessment Panel’ should not act as an ‘Appraisal Cop’ in performance appraisal. Instead, it would be better for the ‘Assessment Panel’ to play an arbitrary role in performance appraisals or intervene into the Performance Management System as an appeal mechanism. In addition, appraisal training of 5Ws and 1H should be promoted within the subject organization. Either the appraisers or the appraisees need training thus facilitating their communication and interaction in the process(es) of performance management. Human Resources Management practitioners may find the findings and recommendations of this Action Research of immense value in managing effective performance. Key Words: Appeal Mechanism; Appraisal Cop; Appraisal Training; Appraisee; Appraiser; Appraising Officer; Arbitrator; Assessment Panel; Communication; Competence; Competences; Competencies; Competency Menu; Core-Competency; Countersigning Officer; Elitism; Forced Distribution; Grid Approach; Performance Appraisal; Interaction; Performance Management Cycle; Performance Management System; Reviewing Officer.
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LIST OF CONTENT
ABSTRACT ............................................................................................... II LIST OF CONTENT .............................................................................. IV LIST OF FIGURES ..............................................................................XIII LIST OF EXHIBITS...............................................................................XV STATEMENT OF ORIGINAL AUTHORSHIP ................................... 18 ACKNOWLEDGEMENT ....................................................................... 19 1: INTRODUCTION ............................................................................... 20 1.1: BACKGROUND TO THE RESEARCH .................................................................20 1.1.1: Customs and Excise Department ..........................................................20 1.1.1.1: Organization......................................................................................21 1.1.1.2: Structure ............................................................................................21 1.1.2: Culture and Direction ..............................................................................22 1.1.2.1: Vision .................................................................................................22 1.1.2.2: Mission ...............................................................................................22 1.1.2.3: Values .................................................................................................23 1.1.2.3.1: Performance Pledges as Future Direction ........................................23 1.1.2.3.1.1: Anti-Smuggling .....................................................................23 1.1.2.3.1.2: Revenue Protection and Collection ..........................................24 1.1.2.3.1.3: Anti-Narcotics ......................................................................25 1.1.2.3.1.4: Protection of Intellectual Property Rights ...............................26 1.1.2.3.1.5: Trade Controls ......................................................................26 1.1.2.3.1.6: Consumer Protection ..............................................................27 1.1.2.3.1.7: International Cooperation ......................................................27 1.1.3: Service of Diversity .................................................................................28 1.1.4: Cultural Change ........................................................................................29 1.1.4.1: Past Development ............................................................................29 1.1.4.2: Status Quo .........................................................................................30 1.1.5: Core-Competency Approach .................................................................31 1.1.6: Panel System .............................................................................................32 1.1.7: Forced Distribution Approach...............................................................33 1.2: RESEARCH PROBLEM & HYPOTHESES ..........................................................34 1.2.1: Burning Issues ..........................................................................................34 1.2.2: Hypotheses................................................................................................35 iv
1.2.2.1: Argument One ..................................................................................35 1.2.2.2: Argument Two ..................................................................................36 1.2.3: Statement of Problem .............................................................................36 1.3: JUSTIFICATION FOR THE RESEARCH ..............................................................37 1.4: METHODOLOGY ...............................................................................................38 1.4.1: Mail Survey................................................................................................39 1.4.1.1: Data Analysis ....................................................................................39 1.4.2: Favor & Bias .............................................................................................40 1.5: OUTLINE OF THE DISSERTATION ..................................................................41 1.6: DELIMITATIONS OF SCOPE & KEY ASSUMPTIONS ......................................41 1.6.1: Scope of Study .........................................................................................42 1.6.2: Key Assumptions .....................................................................................43 1.7: CONCLUSION ....................................................................................................43 2: LITERATURE REVIEW .................................................................... 46 2.1: INTRODUCTION ................................................................................................46 2.2: DEFINITION OF PMS ......................................................................................48 2.2.1: Appraisal Philosophy ...............................................................................51 2.3: PURPOSES OF PMS ......................................................................................54 2.3.1: General & Specific Objectives of PMS ................................................54 2.3.2: Perspectives of Organization, Managers & Staff ................................56 2.3.2.1: For Organization ..............................................................................56 2.3.2.2: For Mangers or Supervisors ...........................................................56 2.3.2.3: For Staff .............................................................................................56 2.3.3: PMS vis-à-vis Performance-Related Pay Scheme ................................57 2.3.4: PMS in HRM ............................................................................................58 2.4: FUNCTIONS OF PERFORMANCE APPRAISAL .................................................59 2.4.1: Appraisal Criteria......................................................................................60 2.4.1.1: Job Descriptions or Duty Statement .............................................62 2.4.1.1.1: MBO within PMS .......................................................................62 2.4.1.2: Personality Evaluation within PMS ...............................................63 2.4.1.2.1: Individual-Based Performance Appraisal .......................................63 2.4.1.3: Competency as Appraisal Criteria ..................................................64 2.4.1.3.1: Hypotheses of Competency.............................................................64 2.4.1.3.2: Definition of Competency ..............................................................64 2.4.2: Competency & Behaviors .......................................................................66 2.4.2.1: Threshold Competences & Differentiating Competences .........67 2.4.2.1.1: Application of Threshold/Differentiating Competence ...................67 2.4.2.2: Core-Competency ............................................................................67 2.5: OPERATION OF PMS........................................................................................68 2.5.1: System in System ......................................................................................69 2.5.2: Performance Management Cycle ...........................................................69
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2.5.2.1: Four-Stage of PMC ..........................................................................71 2.5.2.2: Job Competency Model ...................................................................72 2.5.2.2.1: Job Competence Assessment Method (JCAM) ...............................72 2.5.2.2.2: Modified Job Competence Assessment Method (MJCAM) .............72 2.5.2.2.3: Generic Model Overlay Method (GMOM) ....................................72 2.5.2.2.4: Customized Generic Model Method (CGMM) ..............................72 2.5.2.2.5: Flexible Job Competency Model Method (FJCMM) .......................73 2.5.2.2.6: Competency Menu .........................................................................74 2.5.2.3: Core-Competency and Functional-Competency .........................74 2.5.2.4: Intervention of Assessment Panel.................................................75 2.5.2.4.1: Panel System in PMC ...................................................................75 2.5.2.4.2: Functions of Assessment Panel......................................................76 2.5.2.5: Performance Evaluation Approaches............................................77 2.5.2.5.1: Categorization of Performance Evaluation Approaches..................80 2.5.2.6: Application of Mixed Approaches in PMS under Study ............82 2.5.2.6.1: Forced Distribution’ Approach ......................................................83 2.5.2.6.1.1: ‘80/20 Rule’ ........................................................................84 2.5.2.6.2: Ranking & Rating .......................................................................85 2.5.2.7: Rating Errors.....................................................................................86 2.5.2.8: Appraisal Interview ..........................................................................88 2.5.2.8.1: Performance Management Model ...................................................89 2.5.2.8.2: Bankruptcy in Appraisal ..............................................................90 2.5.2.9: Conduct of Appraisal Interview ....................................................90 2.6: CONSOLIDATION ..............................................................................................93 3: METHODOLOGY .............................................................................. 97 3.1: INTRODUCTION ................................................................................................97 3.1.1: Pilot Study .................................................................................................97 3.1.2: Research Phases........................................................................................98 3.2: JUSTIFICATION FOR THE PARADIGM AND METHODOLOGY ................... 100 3.2.1: Qualitative & Quantitative Matrix ...................................................... 101 3.2.2: Non-Probability Sampling ................................................................... 101 3.2.2.1: Sampling Frame ............................................................................. 102 3.2.3: Target Population .................................................................................. 104 3.2.3.1: Focus of Study ............................................................................... 106 3.2.4: Representative Sample .......................................................................... 107 3.2.4.1: Limitation of Non-Probability Sampling .................................. 109 3.2.4.1.1: Attributes of Study Population .................................................. 110 3.2.4.2: Sampling for Qualitative Investigation ....................................... 110 3.3: RESEARCH PROCEDURES .................................................................... 111 3.3.1: Qualitative Investigation ...................................................................... 111 3.3.1.1: Reasoning & Arguments .............................................................. 112
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3.3.1.2: Content Analysis............................................................................ 112 3.3.1.3: Ethnography .................................................................................. 113 3.3.1.3.1: Researcher as Ethnographer ........................................................ 114 3.3.1.3.2: Categorization of Data .............................................................. 115 3.3.1.3.2.1: Fieldnotes ........................................................................... 115 3.3.1.3.2.2: Analytic Memos ................................................................. 116 3.3.1.3.2.3: Empirical Categorization .................................................... 117 3.3.1.3.3: Thematic Analysis ..................................................................... 118 3.3.1.3.3.1: Development of Themes ...................................................... 118 3.3.1.3.4: Participant Observation .............................................................. 119 3.3.1.3.5: Ethnographic Interviews ............................................................. 120 3.3.1.3.5.1: Case Study ......................................................................... 121 3.3.1.3.6: Tales-Telling............................................................................... 121 3.3.1.3.7: Establishment of Themes ........................................................... 122 3.3.1.3.7.1: Theorized Ethnography....................................................... 123 3.3.2: Quantitative Investigation .................................................................... 124 3.3.2.1: Questionnaire Survey .................................................................... 124 3.3.2.1.1: Classification Section .................................................................. 125 3.3.2.1.1.1: Functional Job Analysis...................................................... 126 3.3.2.1.3: Core Section ............................................................................... 127 3.3.2.1.3.1: Occupational Situations ...................................................... 128 3.3.2.1.3.2: Forced Distribution ............................................................. 129 3.4: ETHICAL CONSIDERATIONS ............................................................. 130 3.4.1: Researcher’s Role in the Subject Organization ................................. 130 3.4.1.1: Researcher’s Career Path............................................................... 131 3.4.2: Personal Perspectives ............................................................................ 132 3.4.2.1: Organizational/Personal Issues of Importance ....................... 132 3.4.3: Conflict of Interest ............................................................................... 133 3.4.3.1: Cognition Dissonance .................................................................. 133 3.4.4: Language Barriers ................................................................................. 134 3.4.4.1: English and Chinese Proficiency................................................. 134 3.4.4.2: Backward Interpretation or Translation ..................................... 135 3.4.5: Investigative Abilities ............................................................................ 135 3.4.6: Protection of Privacy and Secrecy...................................................... 137 3.4.6.1: Fair Information Practice ............................................................. 138 3.4.6.2: Official Secret Act ......................................................................... 139 3.4.6.3: Hongkong Bill of Rights Ordinance .......................................... 140 3.5: CONCLUSION ............................................................................................ 140 4: ANALYSIS OF DATA .........................................................................144 4.1: INTRODUCTION ............................................................................................. 144 4.2: ANALYSIS OF QUALITATIVE DATA ................................................................ 145
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4.2.3.1: Functional Job Analysis ................................................................ 145 4.2.4: Performance Management System in Question ............................... 148 4.2.4.1: Staff Opinion Survey 1998 .......................................................... 148 4.2.4.1.1: Survey Findings.......................................................................... 148 4.2.4.1.1.1: Work Environment Dimensions ......................................... 149 4.2.4.2: Staff Association’s Questionnaire Survey 1999 ........................ 150 4.2.4.3: Resistance to ‘Assessment Panel’ and ‘Forced Distribution’ ... 153 4.2.5: Operation of ‘Assessment Panel’ ........................................................ 157 4.2.5.1: First Meeting of Assessment Panel ............................................ 157 4.2.5.2: Second Meeting of Assessment Panel ....................................... 158 4.2.5.3: Binding Rules of Assessment Panel ........................................... 159 4.2.5.3.1: Establishment of Assessment Panel............................................ 159 4.2.6: Adoption of Forced Distribution ....................................................... 161 4.2.6.1: No More Overmarking................................................................. 162 4.2.6.2: Turning PMS Upside-down ......................................................... 163 4.2.6.2.1: Tale One: ‘Forced Distribution’ = ‘Quota System’...................... 164 4.2.6.2.1.1: Relation between ‘Overall Performance Rating’ and Promotion .............................................................................................................. 164 4.2.6.2.2: Tale Two: Panel on Fire ............................................................. 166 4.2.6.2.3: Tale Three: Division of a Cake ................................................. 167 4.2.6.2.4: Tale Four: Senior Officers are not know-alls ............................... 169 4.2.6.2.5: Tale Five: ‘B’ for ‘B’ and ‘C’ for ‘C’ .......................................... 170 4.2.6.2.6: Tale Six: Being a Top-Gun on Other’s Failure ........................... 171 4.2.6.2.7: Tale Seven: It’s a Conspiracy ...................................................... 173 4.2.6.2.7.1: Conspiracy or Consensus ..................................................... 174 4.2.6.2.8: Tale Eight: First Rating, Then Appraising ................................ 174 4.2.6.2.9: Tale Nine: It’s Not My Turn ..................................................... 175 4.2.6.2.10: Negative Case One: Seniority is not My Consideration.............. 176 4.2.6.2.11: Tale Ten: Please Give Way ...................................................... 177 4.2.6.2.12: Tale Eleven: Boost and Beat..................................................... 179 4.2.7: Collapse of ‘Forced Distribution’ ....................................................... 185 4.2.7.1: One Size doesn’t Fit All ................................................................ 189 4.2.7.1.1: Tale Twelve: Panel and Panel ..................................................... 193 4.2.7.1.2: Tale Thirteen: Jack-of-all-trades .................................................. 194 4.2.7.1.3: Tale Fourteen: 360-degree Appraisal .......................................... 195 4.2.7.1.4: Tale Fifteen: DIY ...................................................................... 196 4.2.7.1.5: Negative Case Number Two: A Piece of Cake .......................... 197 4.2.8: Advantages of Assessment Panel ....................................................... 197 4.2.8.1: Competency as Appraisal Criteria ............................................... 198 4.2.9: Performance Appraisal Form .............................................................. 198 4.2.9.1: Part I: Personal Particulars ........................................................... 199 4.2.9.2: Part II: Description of Duties ..................................................... 201 viii
4.2.9.3: Part III: Appraisal of Individual Competencies ....................... 201 4.2.9.4: Part IV: Overall Performance Rating / AO’s Overall Comments ....................................................................................................................... 206 4.2.9.5: Part V: General Remarks / Development Needs / Future Potential ........................................................................................................ 209 4.2.9.6: Part VI: Additional Remarks of RO........................................... 210 4.2.9.7: Part VII: Comments from Assessment Panel ........................... 211 4.2.9.8: Part VIII: Record of Appraisal Interview ................................. 211 4.3: ANALYSIS OF QUANTITATIVE DATA............................................................. 214 4.3.1: Quantitative Investigation .................................................................... 214 4.3.1.1: Data Input and Analysis ............................................................... 214 4.3.1.1.1: Level of Significance................................................................... 215 4.3.1.1.2: Type 1 Error ............................................................................. 215 4.3.1.1.3: Type 2 Error ............................................................................. 215 4.3.1.1.4: Confidence Level and Sampling Error ........................................ 215 4.3.2: Profile of Respondents.................................................................... 216 4.3.2.1: Role-play in Annual Performance Appraisal Exercise 1999 ......... 217 4.3.3: Functional Job Analysis ................................................................... 218 4.3.3.1: Profile of Sample Jobs ................................................................... 218 4.3.4: Core-Competency............................................................................. 221 4.3.4.1: Correlation with Job Functions ...................................................... 222 4.3.4.2: Competency 1: INITIATIVE ..................................................... 222 4.3.4.3: Competency 2: CONFIDENCE................................................. 222 4.3.4.4: Competency 3: INTEGRITY ...................................................... 223 4.3.4.5: Competency 4: WILLING TO ACHIEVE ............................. 223 4.3.4.6: Competency 5: DRIVE FOR PERSONAL DEVELOPMENT ................................................................................................................... 223 4.3.4.6.1: Competency 5.1: Recognizes Own Weakness .......................... 224 4.3.4.6.2: Competency 5.2: Seizes Learning Opportunity ....................... 224 4.3.4.6.3: Competency 5.3: Seeks Challenge ........................................... 224 4.3.4.7: Competency 6: COMMUNICATION & EXPRESSION ..... 224 4.3.4.8: Competency 7: TEAM ORIENTATION ................................. 224 4.3.4.9: Competency 8: MENTORING AND COACHING .............. 225 4.3.4.10: Competency 9: ORGANIZING & PLANNING ................. 225 4.3.4.11: Competency 10: ADAPTABILITY TOWARDS CHANGE ................................................................................................................... 225 4.4: PATTERNS OF QUANTITATIVE DATA ..................................................... 226 4.4.1: Most ‘Applicable’ and ‘Relevant’ Core-Competency........................ 226 4.4.1.1: Core-of-the-Core ........................................................................... 227 4.4.2: Second Most ‘Applicable’ and ‘Relevant’ Core-Competency.......... 227 4.4.2.1: Second to None ............................................................................. 227 4.4.3: Most ‘Relevant’ Core-Competency..................................................... 228 ix
4.4.3.1: Honest is the Best Policy .............................................................. 228 4.4.4: Least ‘Applicable’ and ‘Relevant’ Core-Competency ....................... 229 4.4.4.4: Skills, Knowledge and Ability versus Attitude .......................... 229 4.4.5: Core-Competencies of Borderline ‘Applicability’ and ‘Relevancy’ 230 4.4.5.1: Mentor or Coach in What Way.................................................... 231 4.4.5.2: Modus of Operandi ...................................................................... 231 4.4.6: Other Core-Competences of High ‘Applicability’ & ‘Relevancy’ .. 231 4.4.7: Functional Competency quoted by Respondents............................. 232 4.4.7.1: Specificity of Functional-Competency ...................................... 234 4.4.8: Occupational Situations ....................................................................... 235 4.4.8.1: Distribution of Performance Overall Ratings .......................... 238 4.4.8.2: Indicative Benchmark ................................................................... 240 4.5: CONCLUSION ............................................................................................ 241 CONCLUSIONS AND IMPLICATONS.............................................. 243 5.1: INTRODUCTION ............................................................................................. 243 5.2: CONCLUSIONS ABOUT RESEARCH QUESTIONS OR HYPOTHESIS .............. 245 5.2.1: Answers to First and Second Sub-Statements of Problems........... 246 5.2.1.1: Effectiveness of ‘Core-Competency’ Approach and Reliability of ‘Core-Competencies’ ............................................................................. 247 5.2.1.1.1: Profile of Sample Jobs ................................................................ 247 5.2.1.1.2: Profile of Respondents ................................................................ 248 5.2.1.1.3: ‘Applicability’ and ‘Relevancy’ of ‘Core-Competencies’ to Sample Jobs ................................................................................................................... 249 5.2.1.1.4: Findings One: Most ‘Applicable’ and Most ‘Relevant’ ‘Core-Competency’....................................................................................... 250 5.2.1.1.5: Findings Two: Second Most ‘Applicable’ and ‘Relevant’ ‘Core-Competency’....................................................................................... 251 5.2.1.1.6: Findings Three: Most ‘Relevant’ and Very ‘Applicable’ ‘Core-Competency’....................................................................................... 251 5.2.1.1.7: Findings Four: Least ‘Applicable’ and ‘Relevant’ ‘Core-Competency’ ................................................................................................................... 252 5.2.1.1.8: Findings Five: ‘Core-Competencies’ of Borderline ‘Applicability’ and ‘Relevancy’ .................................................................................................. 253 5.2.1.1.9: Findings Six: Other Six ‘Core-Competencies’ of High ‘Applicability’ and ‘Relevancy’ ........................................................................................... 254 5.2.1.1.10: Findings Seven: Functional Competency quoted by Respondents . 255 5.2.1.2: Summary of Findings One to Seven .......................................... 256 5.2.2: Answer to Third Sub-Statement of Problem ................................... 257 5.2.2.1: Accuracy of ‘Forced Distribution’ .............................................. 260 5.2.2.1.1: Value of Elitism versus Forced Distribution .............................. 260 5.2.2.1.2: Findings Eight: Accurate in What Way ..................................... 261
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5.2.3: Findings of Qualitative Investigation ................................................ 262 5.2.3.1: Intervention of Assessment Panels ............................................ 262 5.2.3.1.1: Advantages of Panel .................................................................. 263 5.3: CONCLUSIONS ABOUT RESEARCH PROBLEMS ............................................. 266 5.3.1: An Examination of Performance Management System ................. 266 5.3.1.1: Performance Management System ............................................. 267 5.3.1.1.1: Definition of Performance Management System .......................... 269 5.3.1.2: Purposes of Performance Management System ...................... 269 5.3.1.3: Functions of Performance Management System ..................... 270 5.3.1.3.1: Mixed System ............................................................................ 270 5.3.1.3.2: Appraisal Criteria ..................................................................... 271 5.3.1.3.2.1: Core-Competency ................................................................ 272 5.3.1.4: Operation of Performance Management System..................... 274 5.3.1.4.1: Performance Appraisal Form...................................................... 274 5.3.1.4.1.1: Performance Factors ............................................................ 275 5.3.1.4.1.2: Performance Level ............................................................... 275 5.3.1.4.1.3: Appraiser’s Additional Comments ...................................... 275 5.3.1.4.1.4: Record of Appraisal Interview ............................................ 276 5.3.1.4.2: Adoption of Mixed Approach ................................................... 276 5.3.1.4.3: Involvement of Multi-Raters ...................................................... 277 5.3.1.4.4: Implementation of Assessment Panel .......................................... 278 5.3.1.4.5: Failure of Forced Distribution ‘Approach’ .................................. 278 5.3.1.5: Consolidation ................................................................................. 279 5.3.2: Themes developed by Ethnography................................................... 282 5.3.2.1: Fallacies of ‘Forced Distribution’ ............................................... 282 5.3.2.1.1: Good Competition ...................................................................... 283 5.3.2.1.2: Resources Allocation ................................................................... 283 5.3.2.1.3: Questioning Insight ..................................................................... 283 5.3.3: Generalizability ...................................................................................... 285 5.3.4: Contributions of the Research ............................................................ 285 5.3.4.1: Benefits to the Subject Organization ......................................... 286 5.3.4.2: Benefits to the Central Government .......................................... 286 5.4: IMPLICATIONS FOR THEORY ......................................................................... 287 5.4.1: Value of Competency-Based Evaluation........................................... 287 5.4.1.1: Disadvantages of Other Appraisal Criteria ............................... 287 5.4.1.2: Rating on a Common Language.................................................. 288 5.4.2: Value of Performance Appraisal Form ............................................. 288 5.4.2.1: Instrumentalization is of No Value ............................................ 289 5.4.3: Management-by-Objectives as Two-Way Communication ............. 289 5.4.3.1: Performance Review ..................................................................... 290 5.4.4: Contributions to the Wide Body of Knowledge .............................. 291 5.5: IMPLICATIONS FOR POLICY AND PRACTICE ................................................ 293 xi
5.5.1: Recommendations................................................................................. 293 5.5.1.1: ‘Assessment Panel’ as ‘Appraisal Cop’ ........................................ 294 5.5.1.2: Performance Management Cycle is a Must ............................... 295 5.5.1.2.1: Step One: FORMULATION ................................................. 296 5.5.1.2.2: Step Two: EXECUTION ....................................................... 297 5.5.1.2.3: Step Three: EVALUATION .................................................. 298 5.5.1.2.4: Step Four: DISCUSSION ....................................................... 298 5.5.1.2.5: Step Five: REVISION ............................................................ 299 5.5.1.3: Self-Appraisal ................................................................................. 299 5.5.1.4: Appraisal Training of 6Ws and 1H ............................................ 299 5.5.1.5: Grid Approach for Performance Appraisal............................... 301 5.5.1.5.1: Grid Approach I........................................................................ 302 5.5.1.5.2: Grid Approach II ...................................................................... 303 5.5.1.6: Mentor Scheme to develop Mentoring/Coaching Skills ......... 304 5.5.1.7: Boosting One’s Adaptability toward Change ............................ 305 5.5.2: Implementation ..................................................................................... 306 5.6: IMPLICATIONS FOR FURTHER RESEARCH .................................................... 307 BIBLIOGRAPHY .................................................................................. 309 APPENDIX A: CORE-COMPETENCY MENU ..................................321 APPENDIX B: BILINGUAL QUESTIONNAIRE & COVERNG LETTER ................................................................................................ 328 APPENDIX C: LETTER OF CONSENT FROM COMMISSIONER OF CUSTOMS AND EXCISE ............................................................... 335 APPENDIX D: JOB DESCRIPTIONS & DUTY STATEMENT OF THE RESEARCHER ............................................................................ 337 APPENDIX E: LEGISLATION ENFORCED BY THE CUSTOMS AND EXCISE DEPARTMENT OF HKSAR ....................................... 339 APPENDIX F: WORKSHEETS FOR DATA ANALYSIS .....................341
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LIST OF FIGURES
FIGURE 1.: STRUCTURE & TIMEFRAME OF DISSERTATION .............................. 41 FIGURE 2: ROUTE MAP OF LITERATURE REVIEW ............................................ 47 FIGURE 3: FUNCTIONS OF PMS IN THE C & E ................................................ 59 FIGURE 4: PRIVATE CODE IN PERSONALITY-BASED APPRAISAL ...................... 63 FIGURE 5: FOUR-STAGE PERFORMANCE MANAGEMENT CYCLE ..................... 71 FIGURE 6: MBO IN PERFORMANCE MANAGEMENT CYCLE............................. 81 FIGURE 7: FORCED DISTRIBUTION IN RANKING ............................................. 84 FIGURE 8: PERFORMANCE MANAGEMENT MODEL ......................................... 89 FIGURE 9: RESEARCH PHASE I & METHODOLOGIES ADOPTED ...................... 98 FIGURE 10: RESEARCH PHASE II & METHODOLOGIES ADOPTED ................... 99 FIGURE 11: RESEARCH PHASE III & METHODOLOGIES ADOPTED................ 100 FIGURE 12: STRENGTH OF COMMISSIONER GRADE ...................................... 103 FIGURE 13: STRENGTH OF SUPERINTENDENT GRADE .................................. 103 FIGURE 14: STRENGTH OF INSPECTORATE ................................................... 104 FIGURE 15: STRENGTH OF CUSTOMS OFFICER GRADE ................................. 104 FIGURE 16: POTENTIAL FREQUENCY OF CUSTOMS & EXCISE SERVICE MEMBERS BEING APPRAISEE, APPRAISING OFFICER (AO), COUNTERSIGNING OFFICER (CO) AND REVIEWING OFFICER (RO) ................................... 106 FIGURE 17: ADJUSTED FREQUENCY OF CUSTOMS & EXCISE SERVICE MEMBERS OF BEING APPRAISEE, APPRAISING OFFICER (AO), COUNTERSIGNING OFFICER (CO) AND REVIEWING OFFICER (RO) ................................... 108 FIGURE 18: ESTIMATED FREQUENCY OF INSPECTORS BEING APPRAISING OFFICER (AO), COUNTERSIGNING OFFICER (CO) OR REVIEWING OFFICER (RO) FOR CUSTOMS OFFICER GRADE IN 1999 ....................... 109 FIGURE 19: SUMMARY OF ‘APPLICABILITY’ AND ‘RELEVANCY’ OF 12 ‘CORE-COMPETENCIES’ TO THE SAMPLE JOBS AS PERCEIVED BY THE RESPONDENTS IN A MAIL SURVEY........................................................ 249 FIGURE 20: ‘FUNCTIONAL COMPETENCIES’ QUOTED BY SOME RESPONDENTS IN MAIL SURVEY ...................................................................................... 255 FIGURE 21: PREVAILING OCCUPATIONAL SITUATIONS OF THE SAMPLE JOBS 258 FIGURE 22: STATISTICS ON DISTRIBUTION OF ‘OVERALL PERFORMANCE RATINGS’ IN ANNUAL PERFORMANCE APPRAISAL EXERCISE FOR CUSTOMS OFFICER GRADE IN 1998, 1999 AND 2000 ........................... 259 FIGURE 23: RELIABILITY COEFFICIENTS FOR VARIOUS NUMBERS OF APPRAISERS ......................................................................................... 263 FIGURE 24: PERFORMANCE MANAGEMENT CYCLE FOR CUSTOMS AND EXCISE xiii
DEPARTMENT ....................................................................................... 296 FIGURE 25: GRID APPROACH I FOR PERFORMANCE APPRAISAL ................... 302 FIGURE 26: GRID APPROACH II FOR PERFORMANCE APPRAISAL .................. 303
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LIST OF EXHIBITS
EXHIBIT 1: ORGANIZATION CHART OF THE CUSTOMS AND EXCISE DEPARTMENT ......................................................................................... 22 EXHIBIT 2: HIERARCHIES OF WORKER FUNCTIONS (THINGS, DATA, AND PEOPLE) IN FUNCTIONAL JOB ANALYSIS .............................................. 146 EXHIBIT 3: EXAMPLES OF CUSTOMS OFFICERS’ JOBS ................................... 147 EXHIBIT 4: PERFORMANCE RATING OF ORGANIZATION CLIMATE ................. 149 EXHIBIT 5: PERFORMANCE RATING OF WORK ENVIRONMENT DIMENSIONS FOR RESPONDENTS OF CUSTOMS AND EXCISE DEPARTMENT IN STAFF OPINION SURVEY 1998 ....................................................................................... 150 EXHIBIT 6: STAFF OPINION ON ASSESSMENT PANELS ................................... 151 EXHIBIT 7: COMMENTS AND SUGGESTIONS MADE BY RESPONDENTS WHO DISAGREED WITH THE SETUP OF ASSESSMENT PANELS ......................... 152 EXHIBIT 8: STAFF OPINION ON FORCED DISTRIBUTION ................................ 153 EXHIBIT 9: COMMENTS AND SUGGESTIONS MADE BY RESPONDENTS WHO DISAGREED WITH THE ADOPTION OF FORCED DISTRIBUTION ................ 153 EXHIBIT 10: FLOWCHART OF OPERATION OF ASSESSMENT PANEL................ 156 EXHIBIT 11: PARTIAL REPRODUCTION OF GENERAL ORDER NUMBER ONE OF 1998 PROMULGATED ON MARCH 30, 1998 ........................................... 160 EXHIBIT 12: FORCED DISTRIBUTION AT LOWER LIMIT OF OVERALL PERFORMANCE RATINGS OF APPRAISEES IN ANNUAL PERFORMANCE APPRAISAL EXERCISE FOR CUSTOMS OFFICER GRADE ........................ 162 EXHIBIT 13: FORCED DISTRIBUTION AT UPPER LIMIT OF OVERALL PERFORMANCE RATINGS OF APPRAISEES IN ANNUAL PERFORMANCE APPRAISAL EXERCISE FOR CUSTOMS OFFICER GRADE ........................ 162 EXHIBIT 14: APPRAISAL MECHANISM AND ASSESSMENT PANEL FOR CUSTOMS OFFICERS WORKING IN ‘INVESTIGATION’ STREAM OF THE SUBJECT ORGANIZATION ..................................................................................... 167 EXHIBIT 15: FREQUENT QUESTIONS DURING APPRAISAL DISCUSSIONS........ 175 EXHIBIT 16: PESSIMISTIC STATEMENTS OF CUSTOMS OFFICERS WITH 5 TO 10 YEARS OF SERVICE IN THE SUBJECT ORGANIZATION ............................. 175 EXHIBIT 17: EXTRACT OF THE PERFORMANCE APPRAISAL REPORT OF A CUSTOMS OFFICER FOR THE YEAR OF 1997-98..................................... 178 EXHIBIT 18: SUMMARY OF A CASE DETECTED BY CUSTOMS OFFICERS WORKING IN THE ‘INVESTIGATION’ STREAM OF THE SUBJECT xv
ORGANIZATION .................................................................................... 180 EXHIBIT 19: A CUSTOMS OFFICER’S FEEDBACK ON ‘BOOST AND BEAT’ STRATEGY FOR ‘FORCED DISTRIBUTION’ IN A DIVISION ....................... 183 EXHIBIT 20: EXTRACT OF THE PERFORMANCE APPRAISAL REPORT OF A CUSTOMS OFFICER FOR THE YEAR OF 1997-98..................................... 183 EXHIBIT 21: GENERAL ORDER NUMBER 9 OF 1998 ...................................... 187 EXHIBIT 22: GENERAL ORDER NUMBER ONE OF 1998, P. 3, PARA. 11-12 WITH AMENDMENT (GENERAL ORDER NUMBER 8 OF 1998) ......................... 187 EXHIBIT 23: SUMMARY OF CUSTOMS OFFICERS’ OVERALL PERFORMANCE RATINGS IN ANNUAL PERFORMANCE APPRAISAL EXERCISE 1999-2000 ............................................................................................................. 188 EXHIBIT 24: BREAKDOWN OF CUSTOMS OFFICERS’ OVERALL PERFORMANCE RATING IN ANNUAL PERFORMANCE APPRAISAL EXCISE 1999-2000 .... 189 EXHIBIT 25: STATISTICS ON ‘OVERALL PERFORMANCE RATINGS’ OF SENIOR CUSTOMS OFFICERS FOR THE YEAR OF 1997-98 ................................... 190 EXHIBIT 26: STATISTICS ON OVERALL PERFORMANCE RATINGS OF SENIOR CUSTOMS OFFICERS FOR THE YEAR OF 1998-99 ................................... 191 EXHIBIT 27: STATISTIC ON ‘OVERALL PERFORMANCE RATINGS’ OF CHIEF CUSTOMS OFFICER FOR THE YEAR OF 1997-98..................................... 192 EXHIBIT 28: STATISTIC ON ‘OVERALL PERFORMANCE RATINGS’ OF CHIEF CUSTOMS OFFICER FOR THE YEAR OF 1998-99..................................... 192 EXHIBIT 29: SOME APPRAISING OFFICERS’ FEEDBACK WHILST PLAYING THEIR ROLES IN ANNUAL PERFORMANCE APPRAISAL EXERCISE .................... 196 EXHIBIT 30: COMPETENCY AS APPRAISAL CRITERIA FOR PERFORMANCE APPRAISAL OF CUSTOMS OFFICER GRADE ........................................... 198 EXHIBIT 31: PARTS OF A PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE OF CUSTOMS AND EXCISE DEPARTMENT ................... 199 EXHIBIT 32: PART I OF PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 200 EXHIBIT 33: PART II OF PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 201 EXHIBIT.34: PART III OF PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 202 EXHIBIT 35: LEVELS OF COMPETENCIES FOR PERFORMANCE APPRAISAL OF CUSTOMS OFFICER GRADE .................................................................. 204 EXHIBIT 36: PART IV OF PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 207 EXHIBIT 37: PART V OF A PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 209 EXHIBIT 38: PART VI OF A PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 210
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EXHIBIT 39: PART VII OF A PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE....................................................................................211 EXHIBIT 40: PART VIII OF A PERFORMANCE APPRAISAL FORM FOR CUSTOMS OFFICER GRADE................................................................................... 213 EXHIBIT 41: FREQUENCY AND RANGE OF RESPONDENTS PLAYING THE ROLES OF APPRAISING OFFICER, COUNTERSIGNING OFFICER, AND REVIEWING OFFICER IN ANNUAL PERFORMANCE APPRAISAL EXERCISE FOR CUSTOMS OFFICER IN 1999 .................................................................................. 216 EXHIBIT 42: FREQUENCY OF RESPONDENTS PLAYING SINGLE AND COMBINED ROLES .................................................................................................. 217 EXHIBIT 43: HIERARCHY OF SAMPLE JOBS BY FUNCTION JOB ANALYSIS - DATA SCALE .................................................................................................. 219 EXHIBIT 44: HIERARCHY OR SAMPLE JOBS BY FUNCTIONAL JOB ANALYSIS DATA SCALE......................................................................................... 220 EXHIBIT 45: HIERARCHY OF SAMPLE JOBS BY FUNCTIONAL JOB ANALYSIS PEOPLE SCALE ..................................................................................... 221 EXHIBIT 46: DESCRIPTIVE STATISTICS OF THREE FUNCTIONAL COMPETENCIES NAMED BY THE RESPONDENTS ............................................................. 234 EXHIBIT 47: TWELVE OCCUPATIONAL SITUATIONS RANKED BY RESPONDENTS IN RESPECT OF SAMPLE JOBS ................................................................ 235 EXHIBIT 48: STATISTICS ON OCCUPATIONAL SITUATIONS IN MAIL SURVEY .. 236 EXHIBIT 49: STATISTICS ON OCCUPATIONAL SITUATION 2, 3 AND 0 IN MAIL SURVEY ................................................................................................ 237 EXHIBIT 50: DISTRIBUTION OF ‘OVERALL PERFORMANCE RATINGS’ OF SAMPLE JOBS ..................................................................................................... 239 EXHIBIT 51: STATISTIC ON DISTRIBUTION OF ‘OVERALL PERFORMANCE RATINGS’ OF 117 SAMPLE JOBS ............................................................ 241
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STATEMENT OF ORIGINAL AUTHORSHIP
This Dissertation is generated by an ‘Action-Learning’ Research Project. It contains no material which has been accepted for the award of any other degree or diploma in any tertiary institution. Besides, to the best of the Researcher’s knowledge and belief, this Dissertation contains no material previously published or written by another person except where due reference is made in its text.
2001 Gryphon Sou ALL RIGHTS RESERVED
18
ACKNOWLEDGEMENT
My sincere thanks are due to the senior management of the Customs and Excise Department, Government of Hongkong Special Administrative Region, which has been generous enough to supply me the data for secondary analysis. I wish to take this opportunity to express my gratitude to Mr. John Chun-wah Tsang JP, ex-Commissioner of Customs and Excise as well as the Chairs of two staff organizations in the Customs and Excise Department for the support and stimulation they have afforded. I would also like to acknowledge the cooperation of the staff concerned of the International Management Centers Association and the coordination and assistances of Professor Frederick KC Tao, Pro Vice Rector of Asia International Open University (Macao) and Professor Leung-chee Koo, Dean of International Management Centers, Asia Region. Finally, I am indebted to Dr. Aaron Pun for his supervision on this ‘Action-Learning’ Research Project. Dr. Pun has invariably shared his ideas and experience with me and instigated my inspirations. After all, he has undertaken a painstaking review of my final draft of this Dissertation and helped me through the Viva Voce chaired by Dr Philip C. Wright, Professor of Hongkong Baptist University.
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1: INTRODUCTION 1.1: BACKGROUND TO THE RESEARCH This Research has examined a Performance Management System (PMS) of Customs and Excise Department (CED) in the Government of Hongkong Special Administrative Region. The CED is one of the seven disciplined services1 in the local Government. It represented 2.6 percent of the total strength of Hongkong Civil Service for the year of 1997/98. In the following Section, the organization under study will be intensively introduced. By learning its history, structure, culture and functions, the readers may have a better understanding of the background leading to this Research. Some archive data are also incorporated hereinto this Section for cross-reference.
When they are used to
substantiate claims or evidence findings in the latter Chapters, the relevant materials will be labeled as ‘exhibits’ or annotated as ‘source’ in the context.
1.1.1: Customs and Excise Department The CED rooted from the 'Preventive Service' was founded in September 1909. The Service was formed to enforce the Liquor Ordinance with 5 officers and 20 searchers under the Superintendent of the then Import and Export Department.
Historically,
names and organizational structure changed with the Import and Export Department becoming first the Commerce and Industry Department and then the Trade, Industry and Customs Department. In 1982, the CED became an independent department.
1
Correctional Services Department, Customs and Excise Department, Fire Services Department, Government Flying Service, Hongkong Police Force, Immigration Department and Independent Commission against Corruption.
20
1.1.1.1: Organization The CED was headed by the Commissioner of Customs and Excise with an establishment of 5,186 posts (as at February 1, 1999) comprising an actual strength of:
11 Directorate officers
3,866 members of Customs and Excise Service
551 officers of Trade Controls Officer Grade
585 staff of General and Common Grades
Strength of the CED had expanded by about two hundred times (from 25 to 5,186) in ninety years. In the Millennium, it worked closely with overseas Customs administrations and law enforcement agencies.
It had major responsibilities or agency duties under
forty-seven separate pieces of legislation (Appendix E). 1.1.1.2: Structure The CED was organized into five Branches, namely
A Branch - Administration and Excise Branch
B Branch - The Border and Drugs Branch
C Branch - Control and Intellectual Property Branch
Trade Controls Branch
Civil Secretariat
21
Exhibit 1: Organization Chart of the Customs and Excise Department
Commissioner Deputy Commissioner Complaints Investigation Unit
Senior Principal Trade Controls Officer Trade Controls Branch
Assistant Commissioner A Branch
Assistant Commissioner B Branch
Assitant Commissioner C Branch
Administrative Officer Civil Secretariat
Trade Controls Headquarters
Office of Dutiable Commodities Administration
Airport Command
Intellectual Property Investigation Bureau
Office of Departmental Administration
Trade Inspection & Verification Bureau
Office of Management Services
Control Points Command
Marine & Land Enforcement Command
Office of Financial Administration
Trade Investigation Bureau
Office of Service Administration & Training
Customs Drug Investigation Bureau
Ship Search & Cargo Command
Office of Information Technology
Trade Licensing Investigation Bureau
Prosecution, Intelligence & Investigation Bureau
Statistics Office
Trading Standards Investigation Bureau
Information Unit
1.1.2: Culture and Direction The CED was initially known as the 'Preventive Service', indicating its role as a deterrent authority in the contravention of legislation and/or commission of crimes. Over the years, the CED established its culture. To enhance the transparency and openness to the public, the CED published a new set of performance pledges including its vision, mission and values statements in August 1997: 1.1.2.1: Vision We are a progressive and forward-looking customs organization which contributes to the stability and prosperity of the community. We act with confidence, serve with courtesy and strive for excellence. 1.1.2.2: Mission
To protect the Hongkong Special Administrative Region against smuggling.
To protect and collect revenue on dutiable goods. 22
To detect and deter narcotics trafficking and abuse of narcotic drugs.
To protect intellectual property rights.
To protect consumer interests.
To protect and facilitate legitimate trade and industry and to uphold Hongkong's trading integrity.
To fulfill international obligations
1.1.2.3: Values
Professionalism and Respect Lawfulness and Justice Accountability and Integrity Foresight and Innovation
1.1.2.3.1: Performance Pledges as Future Direction The CED pledged to provide an efficient, courteous and professional service to the public in the following program areas:
Anti-Smuggling
Revenue Protection and Collection
Anti-Narcotics
Protection of Intellectual Property Rights
Trade Controls
Consumer Protection
1.1.2.3.1.1: Anti-Smuggling The CED was the primary agency responsible for the suppression of smuggling of contraband, such as
narcotics;
firearms;
strategic commodities;
dutiable commodities; 23
articles which infringe copyright or trade descriptions, and;
any other articles the import or export of which is prohibited by law.
This was accomplished through action at control points and through regular land and maritime patrols.
The CED was an integral member of the Joint Police/Customs
Anti-Smuggling Task Force, which was formed to combat smuggling activities at sea. The CED also performed agency duties on behalf of other departments concerning security, health and environment protection. Along with anti-smuggling campaign, the enforcement work included:
monitoring both the import and export of goods and the licensing of the movement of prohibited or prescribed articles;
conducting primary checks on passengers, crew, cargoes, postal parcels, aircraft and vehicles, and secondary examination of those considered high risk, in order to detect contraband, controlled items and other violations of the law;
conducting regular maritime and land patrols with Hongkong's regional boundaries to detect and suppress violations of Customs law and other illegal activities; and
inspecting and verifying licenses and manifests in order to control the import and export of prohibited articles and the carriage of prescribed articles.
1.1.2.3.1.2: Revenue Protection and Collection The CED was responsible for the collection and protection of duties derived from the dutiable goods (liquor, tobacco, hydrocarbon oil and methyl alcohol) under the Dutiable Commodities Ordinance. It administered a licensing and permit system and a scheme to control the manufacture, import, export, storage and movement of dutiable goods. The CED also assessed the provisional taxable values of motor vehicles under the Motor Vehicles (First Registration Tax) Ordinance. For this purpose, it maintained a registration scheme of motor vehicle importers and distributors. 24
A dedicated task force (40 Customs officers) had been mobilized to combat cigarette smuggling and the syndicated distribution of large quantities of contraband cigarettes. Its tasks were achieved by means of intelligence processing, investigation and enforcement. The CED also had a Diesel Oil Enforcement Division (24 Customs officers) to combat the illicit import, export distribution and use of diesel oil.
It aimed to protect the
government revenue on this type of dutiable commodity. 1.1.2.3.1.3: Anti-Narcotics The CED investigated and detected the illegal import, export, manufacturing and distribution, as well as the abuse of dangerous drugs. It conducted financial investigations to trace the assets of drug traffickers and initiated Confiscation Orders against drug proceeds. It also exercised licensing controls on the import, export and transshipment of controlled chemicals to avoid their illicit diversion. At international level, the CED cooperated closely with the foreign counterparts in:
surveillance, investigations, and operations to combat organized drug syndicates and individual drug offenders;
identification and confiscation of drug-related assets derived from both local and overseas offences;
liaison and cooperation with local and overseas drug enforcement agencies and other competent authorities in the suppression of cross-country drug trafficking and illicit diversion of controlled chemicals; and
collection, collation and exchange of intelligence with both local and overseas law enforcement agencies.
25
1.1.2.3.1.4: Protection of Intellectual Property Rights The CED aimed to protect and detect the infringement of copyright and trademarks and dealings in goods bearing false trade descriptions. It collaborated with local and overseas organizations to combat counterfeiting and piracy. The enforcement work included:
conducting preliminary inquiries and background checks on complaints and on information received;
conducting investigation of and, where appropriate, taking enforcement action against persons and syndicates suspected of infringing intellectual property rights;
executing court orders to detain goods at importation for the purpose of enforcing border measures under the Agreement on Trade Related Aspects of Intellectual Property Rights;
arranging and supervising the examination and identification of seizures with the participation of trade mark and copyright owners or their representatives; and
prosecuting offenders.
1.1.2.3.1.5: Trade Controls The CED provided enforcement support to the Trade Department in the administration and prevented or detected abuse of the following Systems:
Certification of Origin System;
Textiles Export Control System; and
Other control systems covering strategic commodities reserved commodities and other prohibited goods.
The CED was also responsible for enforcing the Import and Export Declaration System, which covered, inter alias, the collection of import and export declarations, declaration charges and clothing levies. To secure and maintain the credibility of various Systems for international obligations or public health, the CED carried out the following enforcement work:
26
factory and consignment inspections, costing checks and factory audit checks to enforce the Certification of Origin System and Textiles Export Control System;
consignment inspections to enforce the Strategic Trade Control System and other import and export licensing control systems;
inspections to enforce Reserved Commodities Control;
collection of import and export declaration charges and clothing levies under the Import and Export Declaration System;
verification and assessment of the values of import and export consignments in order to recover underpaid import and export declaration charges and clothing levies; and
investigation and prosecution of control systems contravention.
1.1.2.3.1.6: Consumer Protection The CED investigated complaints about short-weights and -measures and checked weighing and measuring equipment at retail outlets. It also investigated complaints and ensured compliance with:
Toys and Children's Product Safety Ordinance;
Consumer Goods Safety Ordinance; and
Precious Metals Marking Orders.
To protect consumers' interests, the CED carried out the following enforcement work:
conducting spot checks on the accuracy of weighing and measuring equipment, the safety of toys and children's products and consumer goods, and the display of Precious Metals Marking Notices;
investigating complaint about short-weights and-measures, unsafe toys and children's products and consumer goods; and
prosecuting offenders.
1.1.2.3.1.7: International Cooperation The CED attached great importance to international cooperation with other Customs Administrations and law enforcement agencies. Regular exchanges of information or intelligence on smuggling, drug trafficking and other Customs frauds were made with some 27
twenty foreign Customs Administrations. These are important for the efficient discharge of the Department's duties and the fulfillment of international obligations.
1.1.3: Service of Diversity Having studied the CED’s history, organization, structure, culture and functions, the readers could perceive that the CED was a Service of diversity. Non-disciplined staff of Trade Controls Officer Grade was working on the program areas of ‘Trade Controls’ and ‘Consumer Protection’ while civilian employees of Civil Customs Secretariat coped with administrative matter. Disciplined members of Customs and Excise Service served in the program areas of ‘Anti-Smuggling’, ‘Revenue Protection and Collection’, ‘Anti-Narcotics’ and ‘Protection of Intellectual Property Rights’. Its members might be deployed to A Branch, B Branch or C Branch and perform any one or combination of the following job functions:
Operations
Inspection
Investigation
Administration
The foregoing categorization seemed to be a bit vague as it only divided jobs into four main streams. Besides, there might be combination in particular stream. For instance, officers engaged in the ‘Operations’ stream might be required to do some administrative work; officers engaged in the ‘Inspection’ stream had to deal with investigative matter upon discovery of offenses. There might be a complexity when an officer’s job function is a mix of these four main streams (Source: Participant Observation from 1998 to 2001).
28
1.1.4: Cultural Change When Hongkong reunited with its motherland to become a Special Administrative Region of the People's Republic of China in 1997, Hongkong remained a separate Customs territory. Such status underpins Hongkong's trading autonomy and is one of the key factors in the 'One Country…Two Systems' principle. Hence, CED has been playing a vital role in the Customs administration of this separate territory in a single country. Early in 1993, the then Colonial Government of Hongkong intended to enhance its human resources management and initiated a project 2 comprising review of the performance appraisal system in the civil service. In 1997, the CED implemented Human Resource Plan with the assistance of consultants. The overall objective of its human resource management strategy is to strengthen staff capability to deliver good business results in a Service of diversity. 1.1.4.1: Past Development In mid-nineties, two major staff organizations of CED conducted an informal survey in which they explored the approaches used by their members in writing performance appraisal reports. Findings of the Survey revealed that different approaches were being used.
After all, the Appraising Officers were used to adopt their own approaches,
philosophy and standards in assessing the Appraisees.
Besides, the wordings and
expressions used in performance appraisal reports varied from one Appraising Officer to the other frequently. (Sou, 1995, pp. 4-5)
2
Civil Service Bureau's Human Resource Management Initiatives: The CSB of the then colonial Government of Hongkong embarked on a review of HRM functions in the civil service. It was part of the overall Public Sector Reform Program which aimed to implement improvements to ensure a more efficient and responsive service. Government Departments were consulted on the recommendations to devolve some HRM functions downward and to streamline rules and procedures.
29
The staff organizations also queried that the Countersigning Officers 3 and the Reviewing Officers 4 might have used the other ideologies in writing performance appraisal reports. Obviously, the reliability of the performance appraisal reports under the previous System was in doubt. (Sou, 1995, pp. 137-38) At that time, the consistence and uniformity in Performance Appraisal System were questionable. The former Commissioner of Customs and Excise once remarked that: '…The Customs and Excise Service, as one of the disciplined services in Hongkong, has a long history in using the Government's performance appraisal system. During the last decade, the System has been revised repeatedly and refined hopefully to be a more satisfactory process. Unfortunately, it still attracts criticism by over 90% of the Service staff! I think we need a full review of the current System though it may not be an easy task…' (Ex-Commissioner of Customs and Excise, personal communication, 21.12.93) 1.1.4.2: Status Quo Afterwards, the CED worked with an independent consultant to revise its Performance Appraisal System (subsequently known as Performance Management System) of the Customs Officer Grade 5. The revision plan was given high priority. Simply speaking, the subject System was tied to ‘Core-Competency’, bound by ‘Assessment Panel’, and trapped in ‘Forced Distribution’.
3
A Countersigning Officer is responsible for supplementing assessments made by the Appraising Officer in a performance appraisal report. He or she should, as far as practical, ensure the consistency of the performance appraisal reports amongst the Appraising Officers under his or her command.
4
A Reviewing Officer is expected to comment constructively on the assessments of the Appraisees made by the Appraising Officers as well as the Countersigning Officers. In addition, the Reviewing Officers should carefully monitor the appraisal standards of the Appraising Officers and Countersigning Officers.
5
Customs Officers, Senior Customs Officers and Chief Customs Officers of the ‘Customs and Excise Service’ (disciplined staff of Customs and Excise Department)
30
1.1.5: Core-Competency Approach ‘Core-Competencies’ are the knowledge, skills and attitudes (KSA) required for effective performance in a job (Civil Service Training and Development Institute, 2000). They are common or generic for officers of the same rank throughout an organization (Hay/McBer Innovation & Resource Center, 1996). ‘Core-Competencies’ can be characterized by expression in behavioral terms. In the CED, a ‘Core-Competencies’ menu with behavioral indicators was created in 1998 (Appendix A). It has been used as the assessment criteria in the performance appraisal of the Customs Officer Grade since then:
Initiative
Confidence
Integrity
Will to Achieve
Drive for Personal Development
Communication and Expression
Team Orientation
Mentoring and Coaching
Organizing and Planning
Adaptability towards Change
Decision Making and Judgment
Operational Procedures and Guidelines
31
1.1.6: Panel System A Panel System has also been established to ensure consistency in assessment standards. Senior management of the CED distributes 'Guidance on Performance Appraisal of Customs Officer Grade'. It aims at: (a) providing guidelines on completion of the Performance Appraisal Reports; and (b) explaining the operation of the Assessment Panel. What is or are the advantage(s) of a Panel System? McCormick (1979) relates it to the reliability of a Performance Management System. Reliability of this context refers to the degree of relationship between or among the evaluations of two or more independent appraisers. For a sample of jobs, reliability is often measured by correlating pairs of independent evaluations. Scott (1963) reports the results of a study of reliability of evaluations which are made independently by the appraisers of 5-member committees.
Combination of the
evaluations of several people tends to increase the composite evaluations as long as the appraisers in question are all good in evaluation. Some indication of the increase in reliability that can be expected from the pooling of the evaluations of various numbers of individuals is as follows: Sample Size Reliability
1
2
4
6
8
16
20
.80 .89 .94 .96 .97 .98 .99
The pooled reliability of evaluations (or for that matter the reliability of other judgments) tends to increase appreciably with even three or four appraisers, and then increases more gradually with the addition of more appraisers, up to 10 or 15. Beyond such numbers, there is virtually no increase in the pooled reliability of evaluations. Incidentally, there are hints that the pooled reliability of evaluations made independently by the several appraisers tends to be a bit higher than the reliability of evaluations made 32
collectively by panels of three or five appraisers (Hoggatt, 1970). These hints rationalize some advantages of a Panel System. Nonetheless, is it an effective management tool in reality? This Research could provide a logical answer to this question. 1.1.7: Forced Distribution Approach In addition, an Assessment Panel is also responsible for the distribution of ‘Overall Performance Ratings’ of the Appraisees. Under ‘Forced Distribution’ Approach, there are some restrictions: …Distribution of ratings of overall performance of appraisees of a Major Formation during each round of annual exercise should be reasonably accepted. The following distribution rates are considered to be reasonably accepted and should be adhered to:Outstanding
=
