Good Practices in Labour Administration

Performance Evaluation in the Labour Administration

The case of Canada (Quebec)

All Quebec's ministries and government agencies have internal evaluation procedures for their activities and results. In the case of external evaluation, like all ministries and government departments, the Ministry of Labour and its subordinate agencies are subject to periodic evaluation by the Auditor-General of Quebec. Staff appraisal procedures, when they exist, do not always have a direct influence on staff members' careers, but are rather used as sources of motivation and incentives to staff.

The Labour Administration System

In Quebec's system of government, a distinction must be drawn between agencies under the responsibility of the Minister of Labour, the majority, and those for which other ministers are responsible. Agencies under the Minister of Labour are generally grouped in two main categories according to the way they are financed: budgetary agencies, financed directly by the Ministry of Labour itself, and so-called non-budgetary agencies which are self-financing. The budgetary agencies for which the Minister of Labour is responsible are: the Ministry of Labour, the Equal Pay Commission, the Quebec Building Authority ⁽¹⁾, the Labour and Manpower Advisory Council and the Pay Research and Information Institute ⁽²⁾. The non-budgetary agencies under the Minister of Labour are: the Construction Commission of Quebec, the Commission on Health and Safety at Work, the Labour Standards Commission and the Council for Essential Services. In addition, there is an institution peculiar to Quebec, the joint committees, independent bodies (29 in all) which, under a law of 1934, have particular responsibility for monitoring and enforcing collective bargaining agreements applied by decree ⁽³⁾.

The budgetary agencies under other ministers are, for the Minister of Employment and Solidarity, the Ministry of Employment and Solidarity, Emploi-Quebec (which is an autonomous service unit within the ministry) and the Commission for Partners in the Labour Market; and for the Minister of Culture and Communications, the Commission for the Recognition of Artists' and Producers' Associations.

All Quebec's ministries and government agencies have internal evaluation procedures for their activities and results. However, these procedures vary from one agency to another mainly by virtue of their varying degrees of independence. In the case of external evaluation, like all ministries and government departments, the Ministry of Labour and its subordinate agencies are subject to periodic evaluation by the Auditor-General of Quebec. Staff appraisal procedures, when they exist, do not always have a direct influence on staff members careers, but are rather used as means of motivating and incentives to staff.

Internal Evaluation

The Ministry of Labour ⁽⁴⁾

Some ad hoc evaluations are commissioned after the introduction of a new law or, for example, to verify the time taken to respond by the Office of the Commissioner General for Labour. Some laws contain so-called "crepuscular" clauses which require the ministry to evaluate the laws in question at a given time. Strategic plans also provide for the obligation to carry out an annual or specific evaluation in accordance with the requirements and specific procedures of the legislation concerned. The Ministry of Labour also conducts user satisfaction surveys and research, primarily to ascertain the relevance of the services provided by the Ministry. Lastly, the Ministry has a group of market researchers who go out and contact users in the regions to ask about the relevance of services provided locally. Internal evaluation is the responsibility of the Division of Policies and Research and the Division of Labour Relations. The Division of Human Resources is responsible for the implementation and monitoring of policy on performance management.

The policy on performance management is intended to ensure that evaluation contributes to the achievement of the Ministry's goals, appropriate use of human resources and the professional development of all Ministry staff. Under this policy, every staff member is given targets by his immediate superior and is evaluated on the basis of the results achieved. Performance evaluation is a continuous process which requires constant communication between the manager making the evaluation and the employee, so as to allow regular appraisal of the results achieved and to take remedial action in a timely manner ⁽⁵⁾.

The Equal Pay Commission ⁽⁶⁾

As this commission has only recently been set up and is of modest size (three commissioners and about twenty staff), the concern for evaluation is there but it is carried out by the Commission itself. The Commissioners and the management committee made up of the heads of department carry out the internal evaluation themselves. The method used is monitoring rather than evaluation. Based on the minutes of the Commission and the management committee, the Secretary of the Commission records the instructions for what has to be done, by whom and by when on a management chart.

The Construction Commission of Quebec ⁽⁷⁾

The internal evaluation section evaluates the activities of the Commission and the customer coordination section evaluates its own service provision. Like the Equal Pay Commission, the method used is monitoring. However, the Commission carries out a review of its activities, drawing up a balance sheet of its operations within the framework of government strategic planning as well as defending its budget in the National Assembly.

The Commission on Health and Safety at Work ⁽⁸⁾

Evaluation of activities is the responsibility of a project evaluation section in the Planning Department. In addition, the Division of Statistics and Information Management is responsible for the internal audit of operations and monitoring of activities. Finally, section XII of the Commission's Rules of Procedure provides for an audit committee composed of two representatives each of the employers and the employees. The audit committee reports to the Executive Board and ensures that the financial statements give a true and fair view of the Commission's financial state of affairs, activities and results.

The internal management information system provides information on monthly variations in the number of compensation payments in the form of summary indicators. Regional parameters are also evaluated. The Project Evaluation Section in the Planning Department seeks to improve services and programmes and helps managers to identify ways of improvement. The section also provides for the evaluation requirements of the units themselves fir the purposes of short-term evaluation of their actions. The evaluations focus on the quality of service provision to users, reducing the costs of the scheme and improving productivity.

The commission also evaluates services by indicators for compensation payments, the number of injuries and payments for medical treatment. It carries out surveys among its staff (using the Intranet network), customer surveys and focus groups. Finally, the audit committee studies the report of the internal audit division and the Auditor-General, and the follow-up actions taken.

The Commission on Health and Safety at Work does not have its own staff appraisal scheme. The evaluations carried out are the same as those for the Quebec civil service. Each manager is responsible for completing an annual evaluation form for each of his staff.

The Commission on Labour Standards ⁽⁹⁾

This body has probably one of the most developed systems of evaluation of activities and results of all those studied. The Division of Quality Control and the Division of Internal Audit are responsible for internal evaluation. Staff evaluation is left to the discretion of each service manager.

The Commission has two main internal evaluation systems: performance reports and quality assurance. Performance reports come under 15 headings, including:

• Management,
• Relevance of activities,
• Adequacy of resources,
• Achievement of expected results,
• Evaluation of customer satisfaction,
• Service unit costs,
• Productivity,
• Secondary effects,
• Working environment, etc.

Senior managers must report on their respective services three times a year. A guide to communication of performance evaluation was produced for this purpose five years ago.

The second system is quality assurance. Since December 1996, the Commission has had ISO-9002 certification. A customer service contract, which sets out precise standards, is now applied. The Commission's specific commitments to its customers contained therein consist not only of targets to be achieved but indicators of success. Checks are made to see whether the various types of complaints are dealt with in the specified and published time limits, and whether the list of open cases is in line with forecasts. It is also possible to provide productivity indicators in terms of the numbers of cases handled by each staff member per year and to monitor them. This data proves very useful in evaluating the costs of processing the various types of complaints submitted and the legal proceedings pursued by the Commission.

As well as other forms of evaluation, the Commission on Labour Standards also uses various types of customer and staff survey. Several such surveys ⁽¹⁰⁾ were conducted recently, as well as checks on customer satisfaction with the information service and arbitration services. In addition, the Customer Relations Service deals with complaints from customers about the quality of service provide by Commission staff. Finally, team leaders regularly check the quality of information provided by each employee in services to customers. In addition, to ensure and continually improve the quality of the arbitration service, a survey in the form of a questionnaire is given to the parties by the arbitrator after the proceedings.

In the case of staff evaluation, the Commission does not have any specific policy. Staff appraisals, which are left to the discretion of individual service managers, take place once a year using a form similar to that of the Quebec civil service.

Council for Essential Services ⁽¹¹⁾

Given the agency's small size, the method of evaluation is simple and direct. The Chairman and Director-General carries out the internal evaluation himself, sometimes calling in external consultants to ascertain better the views of the staff. The Council evaluates activities through staff meetings and a periodic report on its activities, as well as emerging trends. By systematically reviewing all the Council's services, the Chairman and Director-General is able to see if the targets have been achieved. The principle of self-assessment is also used.

In the case of staff evaluation, the Council systematically conducts annual interviews with all staff and Council members. The Minister of Labour conducts the evaluation of the Chairman and Director-General.

The Ministry of Employment and Solidarity has its own evaluation methods. However, in exercising its mandate relating to the administration of active employment measures, it is also subject to a special evaluation procedure laid down in the Canada-Quebec Agreement. The Division of Research, Evaluation and Statistics, the Division of Employment Promotion and departmental heads within the Ministry are responsible for internal evaluation.

The Ministry evaluates the achievement of its targets and the effectiveness of its programmes by submission of reports, user surveys, by conducting on-site evaluations at the point of delivery of services and by compiling information provided by the office of information and complaints. Finally, the Ministry also evaluates the effectiveness of employment measures.

In the case of staff evaluation, the Ministry has adapted the civil service evaluation standards. The evaluation thus covers performance, respect for confidentiality of information obtained by officials according to the code of ethics and, bearing in mind the sums of money involved in the Ministry's work, integrity of the staff.

External Evaluation

There are two main types of external evaluation. First, there is the evaluation common to all ministries and government agencies, carried out by the Auditor-General of Quebec. He is directly responsible to the National Assembly, which gives him great authority and independence. His mandate extends far beyond financial audit. Secondly, the evaluation conducted by various external agencies, at the request of certain bodies, either for specific reports, or financial audits. This particularly applies in the case of the Construction Commission of Quebec and the joint committees, which are outside the scope of the Auditor-General. They must submit annual financial statements audited by a recognized firm of accountants to the Ministry of Labour.

The Auditor-General of Quebec

The Auditor-General of Quebec is appointed by the National Assembly for a term of ten years, on the proposal of the Prime Minister which must be accepted by two thirds of the members of the National Assembly. The Auditor-General is responsible exclusively to the National Assembly and can only be removed by it. He has the necessary latitude to carry out his audit work and he himself decides the content of his report. This discretion applies to any matter related to his audit or investigation, and to any opinion on the financial statements or documents containing financial information.

What distinguishes the Auditor-General from other government sector auditors is that he is not part of the Administration and he is exclusively at the service of the National Assembly. His work can be compared to that of the external auditor of a company who reports on decisions taken by the management to the Board of Directors and to the Shareholders. In the same way, the Auditor-General reports on government administration to the National Assembly.

Mandate of the Auditor-General

The Auditor-General's mandate is to verify the optimal use of resources and to look at the methods established to manage resources in an economic and efficient manner, and to evaluate the effectiveness and existence of management structures. The Law on the Auditor-General defines economy, efficiency and effectiveness. Economy means the acquisition at the best price and in a timely manner, of the financial, human and material resources of appropriate quantity and quality. Efficiency is the transformation of resources into goods and services for the best productivity. Effectiveness means achieving to the maximum the objectives or other goals of a programme, an organization or an activity.

The Auditor-General's work thus covers all government ministries, agencies and enterprises. He can also audit the use of any subsidy granted to an establishment, institutions, association or enterprise. The Auditor-General audits the majority of government agencies and enterprise. In the case of other entities audited by a private firm, the Auditor-General has the right of review to ensure a degree of uniformity of information submitted to the National Assembly.

Financial profitability is not the only evaluation criteria for the performance of such agencies and enterprises. The accountability of these agencies and enterprises to the shareholder, i.e. the Government, may extend beyond financial appraisal. They are also subject to verification of compliance and, in some circumstances, to maximization of resources.

Report of the Auditor-General

In his report, the Auditor-General indicates any matter or case arising from his audit or the exercise of his right of review which, in his opinion, should be brought to the attention of the members of the National Assembly. He also informs the heads of the audited entities of his main findings. In his report, the Auditor-General sets out his audit findings. He adds any recommendations he considers appropriate in order to bring about improvements in the management. The recommendations indicate the objective to be achieved. The Auditor-General is not, however, responsible, for enforcing the procedure necessary to give effect to the desirable improvements. The Auditor-General may be questioned on his report by a parliamentary commission, under the rules of procedure of the National Assembly.

The report of the Auditor-General on the financial statements of the Government (Public Accounts) and of government agencies and enterprises audited by him, takes the form of an opinion. This is based on an audit carried out in accordance with generally accepted auditing standards. His opinion also refers to compliance of the format with accounting principles in force in government administration and on the consistency of their application. In addition, the Auditor-General expresses an opinion on their appropriateness.

The Auditor-General's methods of work

The Auditor-General has developed an integrated planning process which covers his mission, the nature of his audit procedures and the type of work required. The certification of financial data, exercise of the right of review and the examination of the annual reports of entities all involve annual audits. Other audits, such as compliance, optimization of resources or use of subsidies, are carried out as priorities permit. Such audits may be carried out on a sectoral basis or in the context of a government mandate when the audited activities and the types of audit apply to several entities. The Auditor-General gives priority in his audit work to sectors with the greatest scope for improvement.

Consequences of evaluation

In the Ministry of Labour, internal and external evaluations are used to redirect the Ministry's objectives and priorities and allow verification of the achievement of targets. They can also lead to proposals for changes in the law, or serve to establish a restructuring plan or adjust targets in the light of budget cuts. Staff evaluations allow opportunities for promotion or performance bonuses.

In the Equal Pay Commission, internal and external evaluations provide evidence of efficiency. The methods used allow rapid adjustment of targets based on decisions taken by the Commission and also provide rapid information to employees.

In the Construction Commission of Quebec, a marked increase can be seen in the number of appeals handled by the agency and its customers receive a reply within a more reasonable time than previously was the case. There has also been an improvement in methods. Internal and external evaluations often become priorities in improving the agency's efficiency and effectiveness. The Chairman and Director-General regularly asks for follow-up reports on the effects of the evaluations.

In the Commission on Health and Safety at Work, the evaluations allow comparisons with other government agencies which also have a role in paying compensation to the public, such as the Quebec Motor Insurance Company, the Quebec Health Insurance System and the Quebec Pensions Agency. These comparisons have a bearing on customer relations and procedures, and also involve agencies in Ontario. They are all aimed at reducing paper and administrative procedures and making customer relations more friendly. The Commission has introduced a programme of continuous enhancement of customer reception, and measures aimed at taking better account of the needs of cultural communities.

In the Commission on Labour Standards, performance audit provides information to the Commission and allows adjustments where the need is felt. They can lead to administrative reorganization or modifications to the Commission's goals, objectives, methods and procedures. The introduction of a quality assurance system and the ISO-9002 certification is being watched with interest by many government agencies. Information and training sessions had therefore been provided to various federal and provincial government agencies. The Commission regularly prepares reports and recommendations to the Minister of Labour. Several of its recommendations have already resulted in changes in the law or an extension of its scope. Finally, the performance audit has little influence on the careers of staff members. In this connection, it serves mores as an incentive and source of motivation to staff.

In the Council for Essential Services, evaluations keep the Council informed about the status of all the plans evaluated and whether the objectives have been achieved or not. The evaluations resulted in an awareness that the plans were too legalistic. Making them less legalistic seems a more promising path and the Council's recommendations reflect that. Staff evaluations also demonstrate an employee's potential for future promotion.

In the Ministry of Employment and Solidarity, internal or external evaluations provide evidence of efficiency since they provide an accurate view of the Ministry's staff, measures and programmes. The resulting recommendations, relating to both departments and individuals, have an impact on the subsequent career of staff, since a poor evaluation could prevent the promotion of a professional to a management post. However, given the ageing of the Ministry's staff, a good evaluation does not allow promotion up the salary scales, because most staff are already at the top step. In the case of the organization and functioning of the administration, the evaluations can lead to administrative reorganization and adjustments to programmes, or the development of new programmes that better reflect customer needs. Specific recommendations for implementation elsewhere may also be derived from the evaluations. This is the case with checks on people dependent on income support and the agreement on active measures financed by the Federal Government and the other provinces. The Ministry of Employment and Solidarity publishes its findings and remains receptive to what is being done in other provinces or countries in order to improve its own methods. The Ministry also receives observer missions from other provinces and countries who come to see what is being done there.

1. Although they come under the Minister of Labour, the data for the Building Authority have not been included in this study because the agency's mandate is outside the definition of labour administration in the meaning of Convention No.150. Indeed, its mission is to ensure the quality of work in the construction of a building and, in some cases, of a facility intended for public use and safety for members of the public who have access to the building or facility (Annual Report, p.33).

2. The Pay Research and Information Institute was until recently an independent agency, financed by the Ministry of Labour, with the mandate of carrying out research and informing the public about civil servants' pay and that of other salaried employees in the main sectors of the Quebec economy. The data for this agency have not been included in this study because a law has just been passed to cancel its mandate. The mandate has been transferred to the new Quebec Statistical Institute, created by the same law. The Pay Research and Information Institute has therefore ceased to be an agency of the labour administration.

3. Quebec is the only state in North America where there is a procedure of application of collective bargaining agreements by decree.

4. The Ministry of Labour's task is: to promote the establishment or maintenance of harmonious relations between employers and employees or the associations representing them; to carry out or commission and publish such studies, research and analyses as it sees fit; to collect, compile, analyse and publish available information on labour relations, labour standards, organization of labour, labour markets and working conditions; to represent the Government or collaborate with other ministries or agencies on certain intergovernmental issues such as the North American Free Trade Agreement (NAFTA), the Canadian Association of Administrators of Labour Legislation (ACALO), representations to the International Labour Organization (ILO) and intergovernmental or international cooperation programmes.

5. Source: Policy on performance management for civil servants (CT 157 191 of 25 June 1985, adopted 25 January 1993), p. 1-2.

6. The Equal Pay Commission's task is to "monitor the establishment of equal pay programmes and ensure the maintenance of equal pay" in Quebec. For this purpose, the Commission is assigned several functions: assistance to enterprises by development of instruments and support to employees involved in the equal pay scheme; information to customers affected by the law, i.e. employers, male and female employees, women's groups and the general public; research, studies and advice to the minister on all matters related to fair pay; handling disputes and complaints of employees and employers to encourage a settlement between the parties; powers of investigation.

7. The Construction Commission of Quebec monitors the maintenance of coherent labour relations and is responsible for the management of manpower in the industry. It is also responsible for the introduction of an integrated system of vocational training and qualifications, and administers the universal social benefits scheme.

8. The functions of the CHSW are to propose and implement policies relating to the health and safety of workers, so as to ensure better working conditions. The CSHW is the agency responsible to the Government for the system of health and safety at work. For this purpose, it runs programmes on prevention and the compensation scheme for accidents at work and the victims of occupational diseases.

9. The role of this Commission is to monitor the introduction and application of labour standards in Quebec, i.e. the minimum working conditions, and the application of the law on the National Holiday. In order to play its role effectively, the Commission must provide clear and consistent information to the public, deal with employees' complaints quickly and promote fair settlement of disputes between employees and employers with a minimum of delay. Finally, the Commission must formulate recommendations to the Minister for more effective application of the Law on Labour Standards, the Law on the National Holiday and a number of regulations.

10. A survey on the working environment, using a questionnaire distributed to staff, and a survey of customer satisfaction.

11. The Council is primarily an administrative tribunal with the mandate of ensuring that the public continue to enjoy at all times the services considered to be essential and to which they are entitled, in particular when workers exercise their right to strike in certain public services and in health and social service institutions.

12. The Ministry's function is essentially to promote the development of manpower and employment and to combat poverty. More specifically, it has the mandate of promoting the economic and social inclusion of individuals by: promoting employment and the development of manpower, by providing financial support to people with insufficient resources and by providing resources aimed at promoting social integration of individuals. This mission accounts for the two main elements of its actions: firstly it provides overall administration of programmes related to the labour market (recruitment, pro-active measures, vocational guidance, skills acquisition) for both the unemployed and people who have a job but wish to change; secondly, it administers social assistance programmes and pays benefits to those on social assistance. The unification of these two major elements within the same ministry is intended as a firm expression of the will to promote the return to employment of the most deprived.