Management Practices Audit of the Human Resources and Workplace Services Branch

5.1.1 Management and Oversight Bodies

In order to ensure that appropriate governance structures are in place, effective monitoring and oversight bodies that meet regularly and have clearly defined and understood roles and responsibilities should be established. The focus of this audit was on the identification of the key management and oversight bodies both at the departmental level (for HR related matters) and within the Branch and the way in which they interact and communicate as a determination of their effectiveness.

To determine if effective management and oversight bodies for Human Resources and Workplace Services Branch (HRWSB) operations were established and functioning, the audit team assessed whether:

• Governance committees were in place;
• Governance committees had terms of reference defined; and,
• Records of decision / meeting minutes were retained for the committees in place.

The principal management and oversight body within HRWSB is the Human Resources (HR) Management Committee. The HR Management Committee is chaired by the Director General (DG), HRWSB, and is designed to provide the Branch with a forum to discuss branch priorities, plans, staffing, budgeting, and emerging issues. The meeting is also used as a forum for the DG to brief HR management on the results of senior management level meetings. The Committee meets on a weekly basis and includes in its membership: all headquarters-based Directors; the three Regional HR Service Centre Directors; and the Manager, Business Management Unit (BMU). It is supported by an Extended Management ("Operations") Committee that meets bi-weekly and is comprised of the Director General, her direct reports and staff members at the PE-05 and PE-06 levels.

Regional governance is provided by a Board of Directors established for each of the three Regional HR Service Centres (Western-Yukon, Central-NWT, and Eastern-Nunavut). The composition of each Board includes the Director General and the Regional Directors General from each region served by the Centre.

Beyond these internal governance committees, HRWSB acts as the secretariat for the following departmental governance committees: the Human Resources Workplace Services & Management Committee (HRWSMC); the Workforce Management Board (WMB); and, the Workforce Adjustment Committee (WFA).

The audit team did not find a Terms of Reference for either the HR Management Committee or the Extended Management ("Operations") Committee. HRWSB staff interviewed were unaware of whether a Terms of Reference had been documented and approved for either committee. A review of the remaining governing bodies at the Branch and departmental levels, including the HRWSB, WFA, and WFA committees, revealed that documented Terms of Reference had been established and approved. These documents outlined the committees' mandates, roles and responsibilities, membership and meeting frequency. None of the Terms of Reference reviewed had a process to periodically review and update the Terms of Reference.

A review of a sample of meeting minutes and agendas from the HR Management Committee and the HR Extended Management ("Operations") Committee revealed that meetings were occurring on a regular basis, agendas were prepared in advance of meetings, and that key action items arising from meetings were documented.

While we found regional and departmental HR governance structures to be effective, with clear and distinct roles and responsibilities, the internal HR governance structure within HRWSB requires improvement. HRWSB management interviewed during the audit cited a number of possible improvements to the structure, including: adopting a more strategic focus for the HR Management Committee, including spending more time discussing horizontal issues; reviewing the governance structure for potential redundancies; circulating committee information in a timelier manner; and, defining how each committee fits in the overall governance structure.

HRWSB management informed the audit team that the governance structure has previously been identified as an area for improvement and that an external consultant has been retained to provide recommendations to improve the Branch's organization and governance structures.

5.1.2 Operational Objective-Setting and Planning

A branch's operational objective-setting and planning is enabled by the collective suite of management processes that are in place to set strategic direction, operational plans, objectives and priorities, and to provide clear direction on how resources should be allocated to achieve these plans. The presence of operational objective-setting and planning documents is important to ensure that management's direction, plans and actions are appropriate and responsible. Reporting documents should include timely and accurate financial and operating information in order to fulfill their oversight function. Resource allocation and budgets include financial, human and physical resources.

To determine if the Branch has operational plans and objectives aimed at achieving its strategic objectives, the audit team assessed whether a clear process was in place to establish strategic priorities as well as operational objectives and plans. The audit team also assessed the alignment between operational objectives and plans and the strategic priorities.

A documented process has been established in HRWSB for the setting of annual HR priorities and objectives. Annual strategic priorities for HR are identified in the Department's Corporate Business Plan and in the Departmental HR Plan. These priorities are aligned to the four HR strategic pillars identified in the Public Service Renewal – improving business processes, engaging employees in the excellence agenda, renewing the workforce, and renewing the workplace – and are reflected in Sector HR staffing plans ("HR Action Plans") and in HRWSB's Annual Business Plans.

HRWSB Branch Plans are developed with contributions from all members of the HRWSB management team. Branch Plans identify ongoing priorities and priority initiatives, both of which are aligned to the strategic HR pillars. For the 2013-14 fiscal year, a special meeting of the HRWSB Management Committee was held to review and finalize the Branch Plan. Once approved, the Branch Plan was circulated to staff via e-mail and was discussed with staff during the Branch's annual all-staff meeting. Interviewees noted that priorities and plans were also communicated through directorate and HR Service Centre meetings.

Through a review of Branch Plans, we found that all planning commitments were assigned to a responsibility centre, aligned to the Treasury Board Management Accountability Framework and the four strategic HR pillars. We also found that performance indicators and targets had been established for Branch's objectives and all but one of the Branch's objectives has an established target(s). We did note, however, that not all targets were aligned with the performance indicators they were designed to support. Specifically, we noted that performance indicators for ongoing activities (e.g. staffing, classification, etc.) did not identify as targets, the national service standards set for these areas, with the exception of labour relations service standards. This finding is further elaborated in Section 5.2.1.

Branch Plans reviewed during the audit were found not to include information on the financial and human resources required to implement the plan, nor did they include information on the resources available to the Branch to implement the plan. However, there is a departmental initiative underway, whereby HRWSB, the Policy and Strategic Direction Sector and Chief Financial Officer Sector, are working on a revised approach to resource planning to help promote the integration of HR and financial considerations into all Sector/Branch business plans. This process is expected to be implemented on a Department-wide basis for the 2014-15 fiscal year.

Interviewees noted that there was not a well-defined process for reviewing and updating Branch Plans and / or reallocating resources when priorities change. As new priorities emerge, Branch management indicated that assessments of existing plans and priorities do not occur in order to confirm the priorities and align resources accordingly.

Branch progress against established indicators and targets was found to be monitored on a quarterly basis, with results reported to the Deputy Minister through AANDC's Quarterly Reporting exercise. These reports were prepared with input from each HRWSB directorate and were discussed at the HR Management Committee prior to their approval. Beyond the reporting of progress against Branch plans in Quarterly Reports, HRWSB reported quarterly on workplace targets and statistics through departmental dashboards.

5.2.1 Internal Client Service Standards

Effective client service is enabled by implementing, monitoring and managing client service standards. Service standards should accurately reflect service that clients are receiving, and client feedback should be solicited to accurately reflect value in services provided. The HRWSB plays an important role in providing internal services to other AANDC regions, sectors, corporate services branches and units within the HRWSB, including staffing and compensation, learning and development and accommodation services.

To assess the Branch's client service activities, we examined whether service standards were documented, communicated to all stakeholders, tracked and reported. We also examined whether processes had been established to solicit feedback from clients and periodically review and update existing service standards.

National Service Standards have been established by HRWSB to cover the following services lines:

• General services;
• HR planning;
• Staffing;
• Classification;
• Labour relations;
• Compensation;
• Learning;
• Accommodation;
• Occupational health and safety;
• HR systems; and,
• Values and ethics.

During interviews, we were informed that existing service standard targets have become outdated following the creation of Regional HR Service Centres. Management has reported that they are in the process of reviewing and rationalizing service standards to increase their alignment with the new operating model.

HRWSB service standards are communicated to staff and stakeholders through HR Online, each of the Regional HR Service Centre intranet sites and the Human Resources Management System's User Productivity Kit - an on-line support tool for all HR activities that allows users to see how to start and complete a process. While we found service standards to be readily accessible online, interviewees noted that a process has yet to be established to proactively communicate service standards to departmental stakeholders.

Tracking of HR service standards is primarily enabled by the Human Resources Management System (HRMS). However, due to certain system limitations, known data integrity issues, and the lack of a strong reporting tool, a spreadsheet has been developed to support service standard tracking. It was also noted by interviewees that the tracking of staffing actions does not provide an end-to-end view of the time taken to process a request. Specifically, the length of time to complete a staffing transaction does not take into account the time to complete activities conducted outside of HRWSB, including the time it takes hiring managers to finalize the necessary paperwork or the time it takes for a security clearance request to be processed at Public Works and Government Services Canada. As a result, the Department is not provided with an accurate view of the processing time required to complete the various types of staffing transactions. While HRWSB can report against service standards without this end-to-end view, information on the time it takes to complete the entire process would facilitate the development of targeted strategies to reduce transaction processing times.

Analysis on the volume of staffing and classification transactions as well their compliance with service standards is prepared by HRWSB on an annual basis. In the most recent 2012-13 report, it was noted that HRWSB was not meeting their service standard compliance rate of 80% for both "administrative" and "non-administrative" staffing and classification actions. Specifically, the Branch reported a compliance rate of 73% for administrative actions and a compliance rate of 49% for non-administrative actions. The report also noted that 70% of the classification actions could not be measured due to a missing date field.

Interviewees indicated that performance against service standards was reported to Branch management via Quarterly Reports and periodic presentations tabled at HR Management Committee. Following a review of these reporting tools, we noted that the HRWSB Quarterly Report only contains performance reporting against labour relations service standards and that periodic presentations to HR Management Committee do not contain analysis of service standard performance for activities other than staffing and classification.

HRWSB does not have a formal mechanism, such as a client questionnaire, to solicit feedback from clients on their level of satisfaction with the services delivered by the Branch, with the exception of feedback forms distributed to attendees of HRWSB-led learning and development courses. Informal feedback is received by the Branch through a number of channels, including HR Advisors and e-mails, phone calls and meetings initiated by clients. It was noted by interviewees that HRWSB was exploring more formal ways to solicit feedback from its clients.

To help strengthen these areas, HRWSB made the following commitments in the 2013-14 HRWSB Business Plan: conduct a data integrity review; review existing service standards; monitor volume and service standards compliance rates for staffing, classification and labour relations actions, including average service time; and, pursue opportunities to measure other existing service standards within HR services. A commitment to implement a client satisfaction questionnaire or client focus group was not identified in the Branch's most recent business plan.

As the Branch continues to strengthen its service standards, it is important to ensure that the established service standards are achievable and measureable so that results can be tracked, analyzed and reported to management. It is also important to ensure that a process is in place to incorporate the results of client feedback to help ensure that service offerings remain relevant.

5.3.1 Internal Communications

Open and effective channels for internal communications and feedback are important in ensuring that decisions are effectively implemented and that accurate, open and honest feedback is received. It is also important that internal communications and feedback mechanisms provide timely and relevant information to staff and personnel.

To assess the extent to which open and effective internal communication channels exist and are functioning as intended, the audit team conducted interviews with Directors, Managers and staff, and reviewed a sample of communication documents, including: presentations; meeting agendas and minutes; e-mails; intranet postings; and, strategy documents.

While we noted the existence of a Branch communication protocol and flowchart, and a variety of internal communication channels to promote open and effective feedback across the organization, the effectiveness and timeliness of communications observed vary considerably depending on the nature of the communication channel used and the position of the employee receiving the information.

At the Director level, interviewees noted communications to be generally effective and timely. Discussions on Branch plans, priorities, key initiatives, and emerging priorities were observed through a review of management committee agendas and records of decision. Interviewees noted that regular bilateral meetings occur with the DG HRWSB and that important documentation is circulated to Directors for their review and acknowledgment.

At the Manager and staff levels, interviewees noted the timeliness and effectiveness of communications to be an area for improvement. While we noted the existence of directorate team and bilateral meetings to share information within each HRWSB organizational unit between Directors and their staff, interviewees cited a number of occurrences where information on changes to key Branch processes was communicated to them from clients rather than Branch management. This finding suggests that the hierarchical nature of the Branch's communication protocol – information is provided to Directors via management committee meetings, who in turn communicate to Managers through directorate meetings, who then communicate to employees through team meetings – may need to be revisited as the Branch continues to roll-out an ambitious change agenda.

Interviewees at all levels noted concerns with the sharing of information horizontally across the Branch, particularly as it relates to progress on key HR initiatives, resulting in information silos and the potential for duplication of efforts. Given the number of initiatives currently on-going in HRWSB, including Blueprint 2020 and the new, government-wide Employee Performance Management standards, interviewees noted that a bi-weekly e-mail to all HRWSB staff could be distributed to help ensure key highlights of what's happening in the Branch are communicated in a timely manner.

The primary mechanism used in the Branch to communicate information in a timely manner is e-mail. Additional communication tools used in the Branch include: management committees; all-staff / directorate / bilateral meetings; videoconferences / teleconferences; the HR forum; HR Online; and, the User Productivity Kit. With the reduction in travel budgets and the centralization of HR services, HRWSB interviewees cited increased use of technology to communicate with employees and stakeholders.

Through a review of the HR Online intranet site, we found sections dedicated to communicating HR Business Plans and the results of past all-staff meetings; however, this information has not been updated since mid-2011. We also found that micro-sites have been established for each of the newly created Regional HR Service Centres. These webpages were easy to navigate and contained information on the Service Centres' roles and responsibilities, organizational structure, service offerings, service standards, and business processes.

5.4.1 Accountability

In any organization, it is critical that authority, responsibility and accountability are clear and that delegated authority is aligned with an individual's responsibility. An effective organizational structure is one that is clearly defined and documented, ensures clear lines of communication and reporting, and provides for an appropriate span of control.

To assess the Branch's accountability structures and management spans of control, we examined whether organizational structures were documented, widely accessible to employees and up-to-date. We also examined and compared the management spans of control across organizational units within the Branch.

The HRWSB organization has recently undergone considerable change with the creation of Regional HR Service Centres, with additional changes expected as part of an on-going reorganization exercise designed to align the Branch with Public Service priorities and the future direction of HR in the Government of Canada.

In 2012-13, as part of the AANDC's Deficit Reduction Action Plan measures, HRWSB implemented a Department-wide process for management to review, on a quarterly basis, organization charts. For HRWSB, this process entails having the DG HRWSB and all direct reports – HQ Directors, Regional HR Service Centre Directors, and the Manager, BMU – to review and approve each position on their organization chart. This process has helped to maintain an up-to-date organization structure and to communicate the organization to Branch management.

Through interviews with HRWSB staff, Branch roles and responsibilities were consistently identified as an area requiring further clarification. Interviewees cited overlap and a lack of clarity concerning the roles and responsibilities of certain Branch directorates, particularly between the Regional HR Service Centres and HQ HRWSB, and between the Workplace / Wellbeing and Corporate Services directorate and the HR Operation and National Initiative directorate. A review of HRWSB's intranet site, HR Online, revealed that documented roles and responsibilities for HRWSB as a whole have been posted online, they have not been updated since March 2011. Roles and responsibilities for Regional HR Service Centres were found to be communicated to regional staff and stakeholders through micro-sites hosted on HR Online.

While organization charts for each the Branch's newly established Regional HR Service Centres were found to be posted on HR Online, in a manner readily accessible to Service Centre employees and their stakeholders, we did not find a complete organizational chart for the Branch or a high-level organizational illustration of the Branch's main business units on HR Online. As a result, employees' and stakeholders' understanding of reporting relationships and associated roles and responsibilities is dependent on people's concerted efforts to articulate the organizational structure through meetings and other communication mechanisms.

These audit observations suggest that the communication of Branch roles and responsibilities are not supported by effective tools, creating challenges for employees and stakeholders and leading to inefficiencies. An improved intranet site with detailed roles and responsibilities of each directorate and an accessible HRWSB HQ organizational chart would enable greater efficiencies and reduce inconsistent information, supporting management's efforts to communicate change through meetings, emails and documentation.

The Workplace / Well-being and Corporate Services and the HR Operation and National Initiative directorates have a significantly greater number of employees to manage than the Branch's other organizational units. Where the average headcount of employees within the other directorates was found to be approximately 20, the headcount for the Workplace / Well-being and Corporate Services and the HR Operation and National Initiative directorates was found to be approximately 2.5 times greater.

While the spans of control may be expected to be wider in these two directorates due to the nature of their roles and responsibilities and the number of clients they serve, we could not confirm whether the spans of control were appropriate, especially with the number of strategic initiatives and priorities demanding Workplace / Well-being and Corporate Services and HR Operational and National Initiative resources. Given upcoming transformation initiatives it will be critical for the Branch to ensure that the spans of control across HRWSB are appropriate and aligned with Public Service priorities and the future direction of HR in the Government of Canada.

We were also informed by HRWSB management that they are currently conducting a review of the Branch's organizational structure to ensure that managerial spans of control are appropriate and that roles and responsibilities are clear.