2nd ARC Report – Refurbishing Personal Administration and Scaling New Heights

The 2nd ARC Report on Refurbishing Personal Administration and Scaling New Heights provides insights and recommendations to elevate the efficiency and effectiveness of personal administration, contributing to enhanced governance standards

EVOLUTION OF CIVIL SERVICE REFORMS IN INDIA

• The inception of modern civil services in India dates back to 1854 when the Macaulay Committee proposed a shift from the patronage-based system of the East India Company to a permanent Civil Service founded on merit, established through competitive entrance examinations. The committee emphasized the transformation of appointments into the civil service from a matter of favor to a matter of right, solely dependent on individual abilities and industry. The report underscored the necessity for the best and brightest individuals to join the Indian Civil Service (ICS) and receive a top-notch education. Specifically, it recommended that Civil Servants should have obtained their first degree in arts from Oxford or Cambridge Universities.
• Post-1855, ICS recruitment became entirely merit-based. The Civil Service Commissioners’ report highlighted that, between 1855 and 1878, over two-thirds of ICS entrants were university-educated individuals with a liberal and comprehensive education. Initially, recruitment was primarily from Oxford and Cambridge, making the ICS an elite service. However, from 1922 onwards, the Indian Civil Service Examination began to be conducted in India, opening the doors to Indian candidates.

THE STRUCTURE OF THE CIVIL SERVICE AT INDEPENDENCE

• In the post-independent era, Indian leaders opted to preserve key elements of the British administrative system when designing the successor civil service. This included features such as an open-entry system based on academic achievements, comprehensive training arrangements, permanent tenure, reserved significant positions at Union, State, and district levels for civil service members, a structured pay scale with associated benefits, and a promotion and transfer system predominantly grounded in seniority.
• The Civil Services in India are broadly categorized into three groups: All India Services (serving both Union and State Governments), Central Civil Services (serving only the Union Government), and State Civil Services (specific to State Governments). Positions within the Union and State Governments are organized into four hierarchical groups from Group A to Group D.
• Article 312 of the Constitution grants the Parliament the authority to establish the All India Services (AIS) upon meeting specific conditions. The Indian Administrative and Police Services are considered services created by Parliament in accordance with this constitutional provision. The selection process for the Indian Administrative Service (IAS) is outlined in Section 3 of the AIS Act, 1951, along with the rules and regulations established by the government. Similar provisions govern the selection processes for the Indian Police Service (IPS) and the Indian Forest Service (IFoS). The primary objectives behind the creation of AIS by the government include (a) upholding national unity, integrity, and uniform administration standards, (b) maintaining neutrality, objectivity, and a non-political, secular, and non-sectarian perspective, (c) ensuring competence, efficiency, and professionalism from entry by attracting the most talented individuals and throughout their careers, (d) promoting integrity, and (e) fostering idealism. The figure below illustrates the key features of the AIS design.

GOOD GOVERNANCE AND DEVELOPMENT

• A World Bank study of six measures of perceived quality of governance affecting per capita GDP of more than 150 countries concluded that “results show a strong positive causal relationship from improved governance to better development outcomes”. While there has been considerable discussion on the causality, it is widely agreed that good governance is the sine qua non, both for sustainable development and improved quality of life.

Need for Reforms

• Prime Minister Dr. Manmohan Singh, summed up the achievements of the Civil Services in India in the following words:
• Reflecting on the history of modern administration in India, there is a justifiable sense of pride in our pluralistic society and policies, as well as in the achievements we have garnered. The civil service, embodying Gandhi’s vision of an inclusive society and drawing from the best of the global arena, has played a pivotal role in shaping a modern nation.
• According to a World Bank report, the Civil Service in India, known for its legendary functioning since the British Raj, is currently facing challenges to its relevance. The strength of the Indian Civil Service lies in its exceptional pool of skills and talents, its extensive field experience, its understanding of government operations from the grassroots to the cutting edge, and its adaptability to new situations. Despite intense competition among officers, concerns persist about the Civil Service’s performance in achieving a results-oriented government.
• While the civil services have been instrumental in maintaining peace, conducting fair elections, managing disasters, and preserving national unity, there are apprehensions about their focus on internal processes rather than results. The existing policy and management structures are criticized for being overly complex and centralized, hindering effective decision-making. The hierarchies and numerous veto points in these structures further complicate matters.
• Civil servants are accountable to the ministers in charge, but the accountability often lacks specificity, leading to issue-sensitive relationships. The absence of a predefined accountability system contributes to either collusive relationships or discord, negatively impacting administration. In the face of rapid economic growth, urbanization, environmental challenges, technological advancements, and increased local awareness, civil servants must adapt quickly. However, there is a perception that they resist change due to attachment to privileges, potentially hindering effective responses to evolving circumstances.
• In the realm of politics, the 73rd and 74th Amendments to the Constitution represent significant transformations. They aim to empower rural and urban local governments, transforming them into self-governing institutions. This necessitates fundamental changes in the existing administrative system at the district level. Global economic shifts, heightened global interdependence, and evolving governmental practices underscore the urgency of cultivating a capable and efficient Civil Service. The advent of telecommunications and computer advancements presents vast opportunities for streamlined service delivery, yet resistance to simplifying procedures hampers the adoption of e-governance.
• In essence, for civil services to remain relevant and adept at addressing contemporary and emerging needs, a substantial transformation is imperative. Over time, the role of civil society organizations in governance has expanded, demanding better governance. Similarly, the private sector now provides services in areas previously exclusive to the public sector. Consequently, civil servants should view civil society organizations and the private sector as collaborative partners in the governance process. Shifting from governance pre-eminence to effective governance, with an emphasis on decentralization and citizen-centricity, is essential.
• Recent developments in public administration, such as the New Public Management in the UK and the reinventing-the-state concept, underscore the significance of measuring results and focusing on outputs and outcomes rather than inputs and processes. These approaches prioritize assessing the tangible benefits derived from government funds and aim to establish a framework for quantifying achieved outcomes. In this context, data-driven performance assessment against pre-defined performance specifications should be the primary basis for evaluating the performance of civil servants.

AN AGENDA FOR REFORMS

• Recruitment and Entry Age: The meritocracy within the Civil Service plays a crucial role in attracting high-caliber individuals, elevating the prestige of civil service positions, and fostering top-notch performance. The age at which individuals enter the Civil Services holds significant importance, particularly in instilling the right values in trainee civil servants. Originally, aligning with the nation-building aspirations of the Constitution’s founding fathers and the government’s expectations, the upper age limit and allowed attempts in examinations were intentionally kept low. This aimed to ensure that young, idealistic individuals inclined toward public service would dominate the service. However, over time, these requirements have undergone substantial modifications, altering the age profile of new entrants into the civil services. Reform efforts in recruitment should focus on establishing a system that not only emphasizes merit but also broadens the candidate pool to include the brightest minds from the educational system. Additionally, recruiting individuals at an age conducive to instilling the right values is essential.
• Training: Human resource development relies significantly on effective training. The existing training system for the Civil Services lacks adequate reflection of changes in the societal and professional landscape. Efforts for reform should prioritize aligning training programs with evolving needs, ensuring that civil servants receive the necessary skills and knowledge to meet contemporary challenges.
• Tenure: The prevalence of short tenures in crucial positions, especially within State Governments, is frequently identified as a significant contributor to governance system shortcomings. While the government maintains the inherent right to transfer civil servants, a delicate balance is needed to ensure stable tenures for effectiveness and independence in law enforcement roles. Such stability allows incumbents to learn on the job, develop their capacities, and contribute optimally. To achieve stable tenures in pivotal positions, institutional and procedural reforms are imperative.
• Domain Competency: The complexities of modern administration necessitate a higher level of knowledge and deeper insights from public servants. Civil servants, particularly those in policymaking roles, should possess in-depth knowledge of their sector, acquired through academic qualifications, field experience, managerial exposure, training, and self-study. This depth of knowledge and skill, often termed domain competence, encompasses a broad understanding of the relevant field and managerial abilities derived from practical experience. The Commission’s proposals for civil service reform highlight the importance of assigning specific domains to civil servants early in their careers and retaining them in those domains.
• Fostering Competition for Senior Executive Positions: A pivotal aspect of the reforms involves selecting the most qualified individuals from society for challenging roles in government. Senior executive positions, entrusted with higher-level policy advice, managerial duties, and professional responsibilities, should be filled through competitive selection processes.
• Performance Management System: Performance management systems comprise tools and processes aiming to align organizational goals with the performance of various units and individuals. These systems are crucial for achieving organizational objectives. Unfortunately, many governmental organizations lack a comprehensive performance management system, leading them to focus more on outputs than outcomes. A robust performance management system involves setting measurable goals at all levels, monitoring the performance of units and individuals, developing the capacity to perform, rewarding excellence, and effectively managing underperformance.
• Exit Mechanisms: Currently, instances of civil servants facing dismissal or penalties due to incompetence and failure to deliver are rare. It is essential for all civil servants to undergo regular, rigorous performance assessments. Based on these evaluations, provisions that already exist but are underutilized can be employed to enforce compulsory retirement for civil servants.
• Clarity of Purpose and Task: The roles of senior civil servants in policy formulation and implementation need clear distinctions. Secretaries to the Government, responsible for various policy, administrative, and implementation activities, often face time constraints, hindering their crucial function of providing policy advice to Ministers. To enhance the quality of policy advice, there should be a separation of policy formulation and implementation responsibilities. This entails establishing ministries solely focused on policy advice and monitoring policy implementation, separate from entities responsible for service delivery, operational matters, and enforcing regulations. The restructuring should also involve creating flatter structures with a team-based orientation, reducing excessive central control over operational matters.

A Result-Oriented Civil Service

• Existing governance systems heavily rely on rule-based approaches, emphasizing adherence to procedures and economy of inputs. This has led to an undue emphasis on input-focused control and accountability, neglecting the evaluation of outcomes. Shifting towards a results-oriented framework entails managing for results, with a focus on robust indicators assessing performance and setting key performance indicators. Achieving results necessitates substantial devolution of managerial authority to implementing departments, providing civil servants with greater flexibility and incentives.
• Achieving Results and Devolution of Resources: To enhance the achievement of results and encourage flexibility, there is a need to devolve managerial authority and relax existing central controls over financial resources. Devolution should extend to both manpower and financial resources, with a focus on more stringent performance accountability for civil servants in implementing agencies. Performance targets should be clearly specified, and agreements outlining these targets should be made publicly available to ensure transparency. These performance agreements must be an integral part of the overall performance management system.
• Code of Ethics: While conduct rules currently dictate undesirable behavior for civil servants, there is a lack of a comprehensive statement of values guiding their duties. Establishing more universal norms for acceptable conduct is essential. A declaration of values for the civil services should reflect public expectations regarding the relationship between civil servants and the government, legislature, and the public. This declaration should specifically address aspects such as political impartiality, maintenance of the highest ethical standards, and accountability for actions. Additionally, creating institutional mechanisms to promote and enforce these values and codes of conduct, along with evaluating their incorporation and adherence throughout the civil service, is crucial.

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