Foreign and Commonwealth Office: Manpower

Report by the Comptroller and Auditor General

Foreign and Commonwealth Office: Manpower

Ordered by the House of Commons to be printed 18 April 1990

London: HMSO E6.10 net 358

This report has been prepared under Section 6 of the National Audit Act, 1983 for presentation to the House of Commons in accordance with Section 9 of the Act.

John Bourn Comptroller and Auditor General National Audit Office

2 April 1990

The Comptroller and Auditor General is the head of the National Audit Office employing some 900 staff. He, and the NAO, are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies use their resources.

FOREIGN AND COMMONWEALTH OFFICE: MANPOWER

Contents

Summary and conclusions

Part 1: Introduction 7

Part 2: Demand and supply 10

Part 3: Control 16

Part 4: Efficient deployment 22

Appendices

1. Progress in implementing the Treasury’s 1986 recommendations for improving the Foreign and Commonwealth Office’s staff inspection procedures

2. Comparisons of overseas posts’ manpower for commercial, consular and entry clearance work

3. Questions used to assess how posts managed and controlled their manpower and other resources

Pages

1

28

29

32

Summary and conclusions

1. The Diplomatic Wing of the Foreign and Commonwealth Office are responsible for political and economic work; the promotion of the United Kingdom’s commercial and financial interests overseas; consular duties; administering the Home Office’s entry clearance requirements abroad; and promoting the Government’s policies and other aspects of the UK overseas. They act as agents of the Government abroad.

2. At 1 April 1989 the Diplomatic Wing employed some 13,500 staff of whom 4,600 were members of the Diplomatic Service, 1,900 were from the Home Civil Service and 7,000 were locally engaged. The total cost of pay and allowances was about EZOO million, some 50 per cent of the Department’s running costs. The Department deploy their manpower in London and in a network of 208 posts in the 165 countries with whom the UK has diplomatic or consular relations.

3. The size and nature of the Department’s worldwide network makes it difficult to redeploy staff quickly to meet changes in workload and priorities. Their work is influenced by many factors and involves responding as quickly as possible to changes in international relations to maintain and promote British influence; working with other Governments to combat worldwide problems such as drugs and terrorism; and, in addition to normal consular support, providing assistance to British citizens affected by emergencies or disasters overseas. It was against this background that the National Audit Office examined the Foreign and Commonwealth Office’s manpower control systems, concentrating on three issues:

(a] whether there were adequate procedures for determining and meeting the demand for manpower (Part 2);

(b) whether manpower was properly controlled (Part 3); and

(cl the extent to which manpower was efficiently deployed [Part 4).

The National Audit Office found that the Department had made considerable progress in handling these issues in recent years, especially given the nature of their activities. They now had a sound hamework in place: this still needed time to settle in fully and there was scope for further refinement, as set out below.

Demand and supply

4. On procedures for determining and meeting the demand for manpower, the National Audit Office examined the main features of the Department’s manpower planning system - the Top Management Round, including the use of objectives; the assessment of long-term requirements:

1

FOREIGN AND COMMONWEAL TH OFFICE: MANPOWER

and supply and structural planning. The National Audit Office’s main findings and conclusions were:

(a) The Department have made improvements in their objective- setting process since it was introduced in 1985 but consider themselves that more needs to be done to improve output measures and performance indicators (paragraphs 2.2 to 2.4).

(b) The annual Top Management Round, the means by which the demand for resources as a whole is determined and redeployment achieved in the short term, continues to be developed and is now designed to be more closely related to objectives and priorities [paragraphs 2.5 to 2.10).

(c) In the cases examined by the National Audit Office, resource bids were rarely expressed in terms of their impact on objectives; and the objectives themselves lacked quantification and adequate output measurement. However the Department consider that, although not always fully documented, resource decisions are based on an adequate assessment of the need for work and related to agreed objectives (paragraphs 2.11 and 2.14 to 2.15).

(d) Some aspects of the Department’s work are difficult to quantify. Even so, of the sample examined, many bids for additional manpower and proposals for redeployment lacked sufficient supporting data to enable managers adequately to assess the justification for proposed staffing changes. Improvements have been made and the Department are seeking to ensure that all bids are properly supported (paragraphs 2.11 and 2.12).

(e) By 1990 the Department considered that two-thirds of posts had well-defined objectives. With few exceptions they thought that posts were using them as management tools (paragraph 2.13).

(f) Although the Department sought to identify events which might have major resource consequences over the next ten years, they did not carry out a systematic assessment of the likely demand for manpower in the longer term. The Department explained that the nature of their work made it difficult to predict events affecting long-term requirements and that their long-term structure exercises had taken assumptions about the size of the Diplomatic Service as a starting point (paragraphs 2.17 to 2.19).

(g) In recent years the Department have operated with a shortfall of staff in post, with an adverse impact on the margin for training, although the shortfall has now been reduced. This problem has been compounded by an imbalance in the Diplomatic Service grade structure which remains unresolved (paragraphs 2.23 and 2.24).

(h) Between 1965 and 1982 the number of staff employed by the Department fell by about 17 per cent. There has since been a four per cent increase largely to meet additional responsibilities, offset in part by the geographical redistribution of staff (paragraphs 2.25 and 2.26).

2


5. The Department have made a good deal of progress over the last five years in introducing an objective-setting process and establishing the Top Management Round. They have developed their manpower planning in the light of experience and the current system represents a more co- ordinated approach to assessing the demand for resources. The National Audit Office nevertheless found that, as the Department themselves acknowledge, some weaknesses remain.

6. First, the system has been successful in redeploying manpower but has been less effective in assessing the need for work. It has in essence been geared to an incrementalist approach - assessing requirements largely on the basis of work which already exists and the staffing currently available. The Department explained they had now begun to remedy this: the need for work was defined by agreed objectives; posts were now challenged regularly on why they performed certain tasks; and the incrementalist approach was being combatted with a strategy based on defining priorities. The National Audit Office consider that the Department should continue and consolidate this process to ensure that posts and home departments fully assess the need for work in drawing up their plans to meet their objectives.

7. Second, although there were difficulties with certain activities, such as political work, it appeared to the National Audit Office that the objectives themselves were capable of greater quantification and that there was scope for the production of more output measures. Given the number of objectives produced the Department may need to establish a more selective approach to monitoring based on increased delegation. The Department commented that objectives for 1990 now contained far more output measures and that posts and departments had been restricted to a set of 15 core objectives.

8. Third, notwithstanding the difficulty of predicting future trends, the Department need to seek to develop their long-term planning, not only for deriving as realistic an estimate as possible of future needs but also in order better to direct their recruitment policy and deal with structural problems.

Control

9. On the Department’s control procedures the National Audit Office examined the work of the Overseas Inspectorate, whose role includes the assessment of posts’ manpower and organisation; the Management Review Staff, which has similar responsibility for personnel based in the UK; and considered the Department’s management information systems. The main findings and conclusions were:

[a) Inspectors attended relevant Treasury training courses and, where appropriate, applied the techniques disseminated by the Treasury. However they were expected to rely mainly on their experience and judgement in their assessments of posts (paragraphs 3.3 to 3.5).

3

FOREIGN AND COMMO NWEALTH OFFICE: MANPOWER

(b) The Overseas Inspectorate and Management Review Staff have both proposed reductions in manpower; in 198748 and 1988-89 some 28 per cent of their recommendations involved a direct change in staffing with a combined efficiency saving of some ~83 million for the two years (paragraphs 3.7 to 3.9 and 3.21).

(c) All of the Inspection reports examined referred to posts’ objectives but it was less clear how these were used to assess performance or the need for work. The Department explained that these issues were always considered and their revised procedures would focus attention on them more closely (paragraphs 3.11 to 3.13).

(d) Inspectors used a number of workload norms to assess efficiency and applied the staffing guidelines laid down by the Treasury. But these norms were limited in scope and no systematic attempt had been made to test efficiency by comparing similar posts. The Department recognises that more effort needs to be devoted to comparing posts’ performance (paragraphs 3.5, 3.6 and 3.14).

(e) The Department have introduced improvements to staff inspection and review procedures to focus them more on assessing the need for work and to adapt them to the increased delegation of managerial responsibility to posts (paragraphs 3.15 to 3.18).

(f) Management Review Staff adopted a more analytical approach to assessing staffing requirements and appeared to demonstrate greater technical skills than the Overseas Inspeclorale. The Department consider this is because they concentrate on areas where standard work measurement techniques can be applied (paragraphs 3.20 and 3.22).

(g) Following the Public Accounts Committee’s recommendations arising from their Second Report of Session 1984-85 the Treasury participated in staff inspections to nine countries between 1984 and 1989. Most of their proposals for improving the Inspectorate’s procedures have been implemented (paragraphs 3.23 to 3.24).

(h) Management information was sufficient for broad planning purposes but was less adequate for detailed management control by posts. There were inconsistencies in manpower databases: manpower and cost information quickly became out of date; and management information was not provided in the most suitable form to assist decision making (paragraphs 3.27 to 3.30).

(i) Information systems have lacked a clear strategy and progress in developing information technology has been slow (paragraphs 3.33 to 3.35).

10. The National Audit Office recognised that the Overseas Inspectorate and Management Review Staff had been successful in redeploying staff and in securing improvements in efficiency. Evidence available from the audit examination, however, supported the Department’s view that the Overseas Inspectorate had not in the past adequately focused on the need for work. The Department’s improvements are therefore an important initiative to ensure that overseas staffing levels are appropriate.

4


11. The Foreign and Commonwealth Office have also begun to integrate the work of the Inspectorate with that of the Management Review Staff. The National Audit Office questioned whether a logical and cost-effective extension of this integration would be a full merger of the two inspection services. This might facilitate the greater integration of teams, enable more continuity in staffing and provide for a better mix of technical skills. However, the Foreign and Commonwealth Office considered a full merger of the two disciplines, although desirable, was impracticable for a number of reasons: there would be organisational difficulties: the Management Review Staff has distinct responsibilities; and the Management Review Staff is a joint department with the Overseas Development Administration wing.

12. Problems with management information appeared to the National Audit Office to be a significant weakness. Attempts to improve and provide better integration of information technology systems had been slow to have effect. In the meantime the ability of posts and home departments to manage and control their manpower and other resources was reduced. The Department need to ensure that the information provided to their managers is complete, accurate and timely.

Deployment

13. On efficient deployment the National Audit Office examined data from home departments and overseas, and visited 11 posts. The main findings and conclusions were:

(a) There were many unquantifiable factors which influenced manpower requirements. However, statistical comparisons of manpower and key activity data for three demand-led functions (consular, entry clearance and commercial work) indicated a number of posts whose staffing levels appeared significantly above or below average. The Department gave a number of reasons which they believed might explain the differences in individual circumstances, although in some cases they had already identified inappropriate staffing levels and were taking action (paragraphs 4.6 to 4.8, 4.16 to 4.17 and 4.23 to 4.24).

(b) In April 1989 the Department introduced charging for a small proportion of commercial work. This may provide some indication of the demand for those services and hence staffing (paragraph 4.10).

(c) There is a wide range in the time taken by overseas consular sections to issue UK passports, partly explained by: the growth in demand; the need for adequate verification of foreign and Commonwealth nationals claiming UK citizenship; and the increase in other consular duties due to the growth in the number of British nationals travelling abroad (paragraphs 4.13 to 4.15).

(d) Since April 1988 posts have had delegated authority for locally- engaged staff numbers but the scope for more flexible deployment is reduced because over 90 per cent are employed on long-term

5

contracts or until retirement. The Department have now instructed posts to introduce formal contracts but consider that some posts may be constrained by local employment laws (paragraphs 4.30 to 4.33).

(e) Much emphasis had been given to improving management in the Diplomatic Service in recent years. The changes which have been introduced will take time to have effect and in the meantime the standards of management at home and overseas remain variable. Some aspects were good but performance against objectives was not always assessed; some post management committees have not adequately reviewed local expenditure: and management information was not always properly used for decision making (paragraphs 4.34 to 4.37).

14. The National Audit Office recognise that statistical comparisons of overseas posts’ staffing and workload cannot be used to determine manpower requirements precisely. However, although there may be factors which justify differences in staffing, systematic comparisons of posts’ performance would allow the Department to identify potential differences in efficiency and to target inspections and other reviews as necessary. It appeared to the National Audit Office that the need for such an approach was re-inforced, given that posts will now be inspected only once every six years and that delegated authority requires an effective framework of accountability and control. The Department do undertake specific comparisons for certain functions. The National Audit Office however recommend that the Department develop a more systematic approach to compare posts on the basis of a comprehensive range of indicators; they could also apply more stringent parameters for the identification of variances than were used for the purpose of this Report.

15. For some aspects of the Department’s work, such as political and economic reporting, the National Audit Office accepted that it was more difficult to quantify workload and review performance. And the Department have to respond to sudden changes in international relations. However, while these factors cannot be ignored, it is still important that the Foreign and Commonwealth Office operate quantified criteria whenever possible to assess whether manpower is efficiently deployed. The Department consider this will be developed further through the objective-setting and performance assessment processes.

16. Effective local management is fundamental, particularly with the increase in delegated authority. The National Audit Office based their examination of overseas posts on a range of questions which they considered were important in ensuring that managers controlled and deployed their manpower and other resources cost effectively. These questions are summarised at Appendix 3.

6


Part 1: Introduction

1.1 The main objectives of the Foreign and Commonwealth Office are to enhance the security and prosperity of the United Kingdom and the Dependent Territories; and to promote and protect British interests overseas, including the interests and welfare of individual British citizens.

1.2 In pursuit of these objectives the Department is involved in five main activities at home and overseas.

(a) Political and economic work, conducted bilaterally as well as in co-ordination with the United Kingdom’s partners in the European Community, the United Nations, the Commonwealth and other international organisations. Staff in London brief Ministers and advise on the formulation of policy: posts overseas report on local political and economic developments and convey British policy to the host government.

(b) Commercial work, carried out overseas in cooperation with the Department of Trade and Industry, to promote British exports. Posts are responsible for bilateral commercial relations, monitoring local trade policy and legislation, the protection of British commercial interests and the provision of services to exporters.

(c) Consular work, to assist British citizens abroad and to carry out certain statutory and non-statutory requirements, including issuing passports, registering births and deaths and performing notarial acts.

(d) Entry clearance work, administering overseas the Home Office’s policy on applications from foreign and Commonwealth nationals wishing to enter the United Kingdom, certain Commonwealth countries or dependent territories.

(e) Information work, carried out overseas to create a wider understanding of Britain and the Government’s policies, and to provide support for the promotion of exports and investments into the UK.

The Department also perform many other ad hoc tasks on behalf of the government. Officials based in the United Kingdom and in posts provide a range of administrative and other support services, including communications, residence and maintenance staff. Figure 1 shows the broad distribution of resources across these functions.

1.3 The Department aim to recruit and deploy staff to meet foreign policy objectives in the most effective and efficient way. Appointments have to take account of the structure of the Service; the relative weight of jobs to be filled and the balance between posts in London and overseas; career prospects and personal circumstances of staff; and the need to provide a relatively high level of training in languages and other skills.

1.4 At 1 April 1989 the Foreign and Commonwealth Office employed about 13,500 staff comprising members of the Diplomatic Service, Home Civil Service and locally-engaged staff (Table 1). One- quarter were based in the United Kingdom in 71 home departments; the remainder were based in 208 posts in the 165 countries in which the United Kingdom is represented (Figure 2). Posts vary in size: taking account of support and locally-engaged staff, the largest Mission is in Washington with some 247 staff: and an average-sized British Embassy in Europe has a complement of 63. Over 50 per cent of posts have fewer than 7 Diplomatic Service staff.

1.5 In 198849 the cost of the Foreign and Commonwealth Office’s manpower and locally- engaged staff, including pay and allowances, was fZ200 million - some 50 per cent of the Department’s running costs.

Table 1

FCO manpower at 1 April 1989

Diplomatic Service 1,661 2,527 Home Civil Service 1,877 132

3,538 2,659

6,197@)

Margin@) Locally engaged

(approximate)

333

7,000 13,530

Notes: @I Including 194 staff on loan from other Government Departments and 9 seconded from the private sector. lb) The margin represents staff undergoing training, on leave between overseas postings, and available to cover sickness and other absences. Sources: FCO staff statistics

7

Figure 1

Deployment of Foreign and Commonwealth Office Manpower: UK and Overseas

Functional 34%

Support 66% Functional activities include:

Political Economic

Support activities include:

Administration Communication Legal Residence Maintenance

Ez;s;;Yial

Entry Clearance Information

Source: FCO establishment records @EST)

Responsibility for manpower

1.6 Under Diplomatic Service Orders, 1964 to 1982, the Secretary of State for Foreign and Commonwealth Affairs is empowered to make regulations for the Diplomatic Service. In so far as these regulations specify salaries, allowances or conditions of retirement and pension, the prior agreement of the Treasury is required. Until March 1988 the Treasury’s main control over the Foreign and Commonwealth Office’s staff numbers was a manpower target. Since then control has changed to a broader financial approval of running costs. But Treasury agreement is still required for senior staff numbers. The Department have stated that in practice the Treasury still monitor manpower levels and would be consulted if they intended to increase their manpower requirement.

Scope of the National Audit Office investigation

1.7 Against this background the National Audit Office examined the Foreign and Commonwealth Office’s manpower control systems to assess:

[a) whether there were adequate procedures for determining and meeting the demand for manpower (Part 2);

(b) whether manpower was properly controlled [Part 3); and

(c) the extent to which manpower was efficiently deployed (Part 4).

The National Audit Office also examined progress in implementing the Public Accounts Committee’s recommendations arising from their previous consideration of the Foreign and Commonwealth Office’s control over manpower (Second Report of Session 1984-85, HC 99).

1.9 In carrying out the examination the National Audit Office sought evidence from the Foreign and Commonwealth Office in London; visited 11 posts in five countries; and obtained manpower and activity data through a questionnaire sent to 80 overseas posts.

8

FORElGNANDCOMMONWEALTHOFFICE:MANPOWER

Figure 2

Diplomatic Wing of the Foreign and Commonwealth Office

r 21

Geographical - - - 15 15

Othl?r Othl?r Political Political

-

-

i

27 Support

8 27 - - Functional - Support

[eg consular)

Overseas Posts

88 Embassies

41 High Commissions

60 Subordinate posts (Deputy High Commissions, Consulates etc)

10 Missions to international organisations

9 Trade Offices etc

I I I I I I I I I I I

_-------- -I


Part 2: Demand and supply

2.1 The main features of the Foreign and Commonwealth Office’s manpower planning system are: the Top Management Round, the assessment of short-term recruitment targets, and long-term structural planning. The National Audit Office first examined the Department’s objective-setting process as a key factor in the proper assessment of the need for work and hence the resources to carry it out.

Use of objectives

2.2 The Department first prepared long- and short- term objectives in 1985. In 1986 an Efficiency Scrutiny on output measurement recommended the use of objectives in a more rigorous and systematic way, incorporating performance indicators where possible. Objective-setting has since been developed to the point of a general statement of high level aims (produced in 1987); broad, regional, functional and management objectives prepared by some senior management commands in 1986 and by all from 1988. Since 1989 these objectives have been based on an annual statement of policy priorities; objectives by activity in home departments and overseas posts: and objectives for individual officers, folly introduced for Diplomatic grades in 1988.

2.3 The Department reviewed progress in implementing the Efficiency Scrutiny recommendations in April 1988. They concluded that: there was scepticism among managers about the value of objectives and performance measurement; there was a need to assess the performance of posts and home departments more effectively: it was difficult to measure the output of some activities, in particular political reporting; and improvements in management information were required. Subsequently, the Department introduced training on how objectives should be used, circulated model objectives to managers; and began to collect more activity data from posts on consular, entry clearance and information work to facilitate performance measurement.

2.4 In April 1989 the Department submitted a final report to the Efficiency Unit on progress in implementing the Scrutiny’s recommendations. The report indicated that virtually all of the recommendations had been accepted and had been implemented in some form. However they drew

attention to problems they were still seeking to resolve, notably managers’ continuing scepticism and the need to achieve a more results-orientated approach to activities.

Top Management Round

2.5 The annual Top Management Round has been in operation for five years and was first applied to 1985-86. Its purpose is to allow senior management and Ministers to set priorities for the coming financial year; to review the allocation of resources so as best to achieve the Department’s objectives and maximise value for money: and to formulate future Public Expenditure Survey bids to the Treasury. The Top Management Round covers all Diplomatic Wing resources: it includes the deployment of Home and Diplomatic Service grades and overall budget requirements. It also covers resources devoted to activities overseas by other government departments. The National Audit Office examined the operation and results of the third and fourth Top Management Rounds - those for 1987-88 and 1988-89.

2.6 The 1987-88 Round began with home departments and overseas posts being asked to set objectives for the coming year; to consider whether the resources within their control were deployed in the most cost-effective way; and where appropriate to recommend redeployment or propose increases or decreases in rasourcas. Managers were also asked to assess the achievement of objectives in the last completed year. Responses from posts were considered by the geographical and functional departments who submitted them and their own returns to their senior management commands. The results of this review process were considered by senior Departmental staff on the Board of Management who made recommendations to Ministers.

2.7 Specific proposals for manpower changes were considered at two-monthly Manpower Resource Meetings. These meetings considered the proposals in the light of the priorities established in the Top Management Round, together with other relevant factors such as budgetary limits and recruitment levels. In some cases decisions were deferred until a detailed review had been completed by the Department’s staff inspectors [Part 3).

10

FOREIGNANDCOMMONWEALTHOFFICE:MANPOWER

2.8 At the end of the 1987-88 Round the Department considered that their resource planning system would be improved if they formulated strategic priorities for the two to three years ahead. These would provide a broad basis against which competing claims for resources could better be judged. The Department informed the National Audit Office that these priorities would be updated annually and from 1989 had been notified to managers at the beginning of the Round. In order to improve co- ordination, a Resource Management Department was also established in 1989 with responsibility for the deployment of all Diplomatic Wing resources, both manpower and financial.

2.9 Excluding locally-engaged staff, the two Rounds produced 335 proposals (139 and 196 respectively) for manpower changes [Table Z), 192 from overseas posts and 143 from home departments. 183 proposals (55 per cent) were considered at Manpower Resource Meetings and 79 (24 per cent) referred to staff inspectors. The additional staff approved were met from proposed savings and reductions identified by the inspection process. This led to a redistribution of resources between home and overseas posts [Table 3).

2.10 The National Audit Office noted that in both Rounds the objective-setting process had taken place

after resource proposals had been made. However, in response to Treasury and management comments, the Department decided that objectives and resource proposals should be submitted together in the 1989-90 Round.

2.11 The National Audit Office examined the basis on which the Department’s manpower decisions were taken. Particular attention was paid to how the Department determined the need for work - whether a task is necessary, how often it has to be done, and the effort it justifies. The National Audit Office examined the information supporting 20 of the 141 proposals for additional staff arising from the 1988-89 resource questionnaires (Table 2). Two bids arose from the opening of a new post but the National Audit Office found that, of the rest, 1.5 were not supported by quantified data on trends in activity or output; 14 did not relate their proposals directly to objectives: and there was little evidence that proposed staffing changes reflected a rigorous assessment by posts and departments of the need for work. With the exception of those bids in defined high priority areas (paragraph 2.8). the National Audit Office were unable to identify what criteria geographical and functional departments had used to assess posts’ competing claims.

Table 2

Results ofthe1987-88 and1988-89 Top Management Round

1987-88

Proposed 88 13 35 3 139 Withdrawn 15 - 1 - 16

73 13 34 3 123

Accepted 55 12 21 1 89

Rejected 17 1 10 2 30 Outstanding at 31.7.89 1 - 3 - 4

1988-89

Proposed 141 20 34 1 196 Withdrawn 25 2 - - 27

116 18 34 1 169

Accepted 33 2 16 1 52

Rejected 41 12 3 - 56

Outstanding at 31.7.89 42 4 15 - 61

Notes:"Figures are expressed as staffposts b By 1 January 1990 all 1987-88 bids had been cleared and only 9 remained for 1988-89

Source: FCO Resource Management Department

11


Table 3

Top Management Rounds 1987-88 and 1988-89 - Redeployment of manpower

;,;, ‘Q:+,.:> ‘> :, i ,,~,,,~, ,, ::.‘-~;~~,‘.~.~ :’ i ::,;-s ;:r..; “, ,, ,, ,:-;~~ &~> ,,~,, ~‘: ~,,, ?4ih%3se:., Decrease’ “;;,,;,!:. , .“’ F.,.,.

Overseas America 13 5 Africa 14 10 Middle and Near

East, North Africa 21 2 Europe 15 5 East Asia 17 1

80 23

Home departments 38 28.5

Total 118 51.5

(Figures include regradings and are expressed in staff yew

Source: FCO Resource Management Department

2.12 In addition the National Audit Office examined ten bids subsequently considered by Manpower Resource Meetings. Again bids were found not to have been related to objectives, although the proposals were considered against the Department’s strategic priorities (paragraph 2.8). However decisions were deferred in six cases pending more information on workload or on the need for the job in terms of objectives, or on compensating savings being found. The Foreign and Commonwealth Office told the National Audit Office that the Top Management Round process, although not always fully documented, was based almost entirely on the relation&p between demand and objectives. They considered that many bids for additional staff now had sufficient supporting data and that they were taking steps to ensure that this was done for all bids. They also stated that the need for work was examined rigorously at the centre.

2.13 At the end of the 1987-88 Round the Department considered that smne 60 of the 208 posts (29 per cent) had produced good objectives which could be used by management to assess performance. They introduced a number of training initiatives to secure improvements (paragraph 2.3) and by the end of the following Round they estimated that at least 50 per cent of posts had reasonable objectives with up to 25 per cent using them as an effective management

tool. The Foreign and Commonwealth Office told the National Audit Office that by early 1990 over two- thirds of posts had well-defined objectives: most posts were beginning to use objectives as management tools, for example to help in resource planning. The Department expected further improvements in the course of 1990.

2.14 The National Audit Office examined the objectives set by a sample of 30 overseas posts and 3 home departments for the two years. The criteria for the examination were: whether objectives were properly formulated, whether consideration had been given as to how they would be achieved, whether they were prioritised and whether targets were set together with dates for achievement. The National Audit Office considered that 17 posts and departments (57 per cent of the sample) in 1988 and 18 (60 per cent) in 1989 had produced an adequate set of objectives which were suitable for reviewing the need for work and assessing its priority. Although many objectives had the potential for measurement, 80 per cent in 1988 and 76 per cent in 1989 were not so quantified, thus providing no basis for direct measurement of output. The Department pointed out that, although much of their work is not susceptible to exact quantification, their annual performance assessments provided an opportunity to appraise results.

2.15 Of the 33 cases examined by the National Audit Office, 16 in 1988 and 9 in 1989 contained limited evidence of review of overseas posts’ objectives by geographical departments or of comparisons between posts. This was mainly because of the work involved in co-ordinating the views of functional departments on over 15,000 objectives. The Foreign and Commonwealth Office told the National Audit Office that in 1990 each post and department would be asked to provide no more than 15 core objectives for central examination.

2.16 In the eleven overseas posts visited the National Audit Office found evidence in only one that resource decisions were adequately considered in terms of their impact on the achievement of objectives.

2.17 The 1988-89 Round brought a significant number of requests for additional manpower (Table 2). The Department expected demand to exceed supply by 50 staff if recruitment targets were met but assessed the likely true shortfall at 180. The Board of Management considered that they could not sustain a request for increased funds to meet the cost of the full manpower requirement given recruitment difficulties. They therefore decided to provide additional staff,

12


where possible, t&n savings and redeployment, taking account of strategic priorities.

Long-term manpower requirements

2.18 Although the Top Management Round attempts to identify matters which could have major resource consequences over the following ten years, it is essentially short-term in nature. Functional departments monitor broad trends in past and current activity where these are quantifiable.

2.19 The nature of the Department’s work is such that it is difficult to predict events affecting long-term manpower requirements - for example the introduction at short notice of a new visa regime in Turkey, the closure of the Mission in Iran when diplomatic relations were broken and the changes in Eastern Europe. It is nevertheless important, particularly where manpower is constrained, to produce as realistic an estimate as possible of future need in order to plan effectively current staff recruitment, training and career development.

2.20 In 1986 the Department identified the need for a review of the level of staffing deployed on Entry Clearance work. The review, undertaken in 1989, observed that, in common with other Foreign and Commonwealth Office departments, there was a lack of any medium-term forecast of the manpower requirement for entry clearance work. It found that the Department made no systematic attempt to quantify possible increases in Entry Clearance work 01‘ to assess the staffing consequences. The report concluded that it was not possible to forecast the demand for this work precisely. Nevertheless it considered that more systematic arrangements were possible, to which end it analysed current global trends in the number of visas issued. While seeking to translate them into manpower requirements, it recommended that more needed to be done to develop a satisfactory methodology. The Department have since received a report from consultants commissioned to advise on an appropriate forecasting system. The Department told the National Audit Office that they were now developing forecasting mechanisms which, from early 1990, would improve their ability to gauge long-term staffing requirements.

2.21 The Department of Trade and Industry and the Foreign and Commonwealth Office have produced assessments setting out market and geographical priorities for commercial work. In 1989 these assessments were subsumed into preparatory work on a corporate plan for the British Overseas Trade Board. The draft plan noted that there was no uniform

system for recording demand for commercial services but identified priorities for export promotion in terms of geographical markets and industrial sectors. This is the first occasion on which such an exercise has been carried out so extensively and the results will be published in a rolling three-year plan beginning in April 1990. The Foreign and Commonwealth Office have not yet been able to benefit from these assessments to forecast the impact on manpower requirements - for example, the effect of the establishment of a Single Market in the European Community in 1992. The Department explained that it was too early to assess the likely impact of the April 1989 introduction of extended charging for commercial services; but they considered longer-term forecasting should be easier, although in the short- term it would lead to some distortions.

Supply and structural planning

2.22 Supply planning should ensure that the agreed short- and long-term demands for manpower are met through recruitment and structural adjustments. The Department’s long-term planning provides forecasts of changes in supply requirements based on trends in promotions, retirements and wastage, and specific projected developments. It seeks to identify long-term structural problems and the action needed to ameliorate them - for example the optimum size of an Early Retirement Programme. Major reviews in 1986 and 1987 assessed the structural implications of various changes in staffing levels although more recent long-term forecasts have assumed a constant complement. As to the short-term, recruitment target- setting is adjusted to take account of any agreed changes in complement.

2.23 In recent years there has been a shortfall of staff in post, mainly because of recruitment difficulties. Full data have been kept only since the end of 1987; in addition, direct comparisons of shortfall figures can be difficult because events may give rise to sudden changes in agreed complements. However, from the information available, the net shortfall reduced from 271 in March 1987 to 126 in March 1989 (140.5 at the end of October 1989). The shortages have been across the grades though these have been partly offset by some surpluses (Table 4). The Department informed the National Audit Office that the effect of the shortfall was that less time had been devoted to training and that there had been an inadequate margin for operational handover periods and home leave; they had devised a strategy to meet the tightening recruitment market of the 1990s.

13

Table 4

Shortfall in Diplomatic Service staff 1987 to 1989 i ,,_, ~, ,, , 2

Senior lx415 DS6/7 DS9”

31 March 1987 1988 1989

3 II 27 14 40 26 184 271 3 20 27 7 46 42 62 161 4 22 9 4 42 47 136 126

Notes: a Other staff commise mainlv clerical su~uort and technical staff b Figures in italics indicate a shortfall - _

Source: FCO staff statistics

2.24 The establishment of the Diplomatic Service in 1965, and of the Foreign and Commonwealth Office in 1968 from an amalgam of other Departments, led to structural problems producing promotion blockages and an uneven grade structure. This was compounded by an uneven age distribution and a need to reduce the overall manpower provision. Since 1965 the Department have had a continuous programme of early retirement on structural grounds. This policy has been subject to re-assessment as part of the Department’s annual structural reviews. However, this has not resolved the problem entirely because early retirement targets had not always been met and the size of the Diplomatic Service had continued to reduce. As a result, structural imbalances in the Diplomatic Service remain.

Functional and geographical distribution

2.25 Between 1965 and 1982 the number of staff employed by the Department fell by some 17 per cent (Figure 3). There has since been a net 4 per cent increase - 464 staff in total (of whurr~ 242 were

locally engaged) - accounted for mainly by the introduction of visa regimes increasing the numbers deployed on entry clearance work and related security officers (337); and the transfer of 164 jobs from the Property Services Agency dealing with the Diplomatic Estate. This was partly offset by a 10 per cent fall in manpower deployed on commercial work (121 staff).

2.26 Between 1983 and 1989 the geographical distribution also changed. 5 missions were opened and 12 closed. Staff deployed in North Africa and the Middle and Near East increased by 44 per cent (52 Diplomatic Service and 238 locally-engaged staffJ which the Department explained was mainly an increase in security guards, for example in Beirut, and in entry clearance and communications staff. In Asia staffing increased by 14 per cent, partly because of the introduction of visa regimes. Conversely in Western Europe there was a 4 per cent (80 staff! reduction and an 8 per cent (109 staff) reduction in Cautral aud Suulharu Africa.

14


Figure 3

FCO manpower provision 1965-89

Locally - Engaged

7000 - UK Based Staff

staff

6000 1

5000

4- o! 1965 1970 1975 1980 1985 1990

Y&W

Source: Research Management Department September 1989

15


Part 3: Control

3.1 Manpower planning and control requires reliable, comprehensive and timely information. To support the Top Management Round, which provides a macro assessment of ~‘esou~ce requirements, the Department operate a number of procedures for the mcze detailed control of manpower. The Overseas Inspector& and the Management Review Staff carry out specific manpower examinations; and management information systems are in place to provide periodic data.

Overseas Inspectorate

3.2 The role of the Overseas Inspectorate is to ensure that posts have the right resources and organization to achieve their agreed objectives in an efficient, effective and economic manner; to ensure that they are following standard instructions and procedures; and to review allowances and local staff salary levels. Inspection visits normally cover all posts within a country and take between 4 and 32 man-weeks each. All posts have been subject to inspection on a four-year cycle: from 1990 this will be changed to a six-year cycle along with other developments in the system (paragraphs 3.15 to 3.18).

3.3 All inspectors are experienced Diplomatic Service staff, usually on a three-year posting. They attend staff inspector training couwes run by the Treasury; until 1989 inspectors attended only the basic, 5-day course but now also join the more advanced 4-day training course. By July 1989 two of the nine inspectors had done so.

Procedures

3.4 Prior to an inspection home departments provide a briefing covering post objectives, local priorities and specific problems which inspectors should consider. The posts complete Self-Inspection Questionnaires for each function setting out current responsibilities, and job descriptions for each member of staff, including locally-engaged staff.

3.5 In December 1987 the Department produced a grading guide, based on Treasury advice, which addressed relevant skill levels. They consider, however, that much of the work in overseas posts, particularly in the mme senior positions, does not lend itself to quantitative analysis. In considering such work Inspectors are therefore obliged to rely

more on their experience and judgement rather than work study techniques. Their assessments of loading and grading are based mainly on interviews with staff, supported by quantified information where possible - though detailed performance data are not usually available for specific jobs.

3.6 Nevertheless in certain areas inspectors use workload norms. Yardsticks have been developed for a number of activities, including passport issuing, visa work, commercial work and support services such as registries and communications. For example a passport examiner is expected to be able to deal with 10,000 straightforward applications a year. Registry norms were reviewed in 1986; those for communications and consular work were reviewed in 1989; and commercial yardsticks were now being reassessed. Some norms, however, had not been reviewed since 1984. The National Audit Office considered that these yardsticks provided a useful basis for detailed inspection but were limited in scope. The Department recognize that more effort needs to be devoted to comparing posts’ performance, partly through developing the use of norms. They told the National Audit Office that a review of the basic instructions to Inspectors, initiated in September 1989, was due to be completed by March 1990.

Impact of inspections

3.7 The National Audit Office examined the inspections undertaken in 1987-88 and 1988-89. These covered 145 posts involving 1,289 Diplomatic Service grades and 2,950 locally-engaged staff.

3.8 The Inspectors’ recommendations usually covered four areas: manpower, including regrading, organization and morale; allowances; systems and procedures; and physical aspects such as accommodation. In total, inspectors made 1,636 recommendations of which 439 [27 per cent) had a direct impact on manpower [Table 5).

3.9 The inspections proposed a net reduction of 47 Diplomatic Service and a net increase of 22 locally engaged staff. In addition they proposed net downgradings of 20 (Table 6). The net cost saving for the two years for these manpower recommendations alone was E2.4 million compared with the cust of the Inspectorate of El.9 million. The Department kept a

16


Table 5

Coverage by the Overseas Inspector&

1’ ‘,

Number of reviewed posts

Manpower covered:

Diplomatic Service Locally engaged

Number of recommendations

Recommendations having a direct impact on manpower

60 85 145

697 592 1,289 1,773 1,177 2,950

749 887 1,636

158 (21%) 281 132%) 439 127%)

Source: Overseas Inspectorate’s Treasury returns

record of how many manpower recommendations were accepted. They operated a follow-up procedure but there was no central record of implementation. For a sample of 130 selected by the National Audit Office, the Department established that 82 per cent had been implemented, 58 per cent within six months. The Department informed the National Audit Office that a central record of progress in implementing Inspectors’ recommendations was now being maintained.

3.10 In order to assess the methodology for inspection the National Audit Office examined a sample of ten completed reports covering February 1988 to March 1989. Briefing material is not retained once an inspection is completed so a current example was examined. In addition the National Audit Office examined Self Inspection Questionnaires for ten activities.

3.11 The National Audit Office found that briefing material provided useful background information but contained limited comment on priorities or resources. However the Department emphasised the important role of oral briefing which Inspectors receive before undertaking a review. They explained that one of the functions of the newly established Resource Management Department [paragraph 2.8) was to provide briefing on resources deployed by the posts to be visited and on how they fitted into overall Foreign and Commonwealth Office priorities.

3.12 Self-Inspection Questionnaires provided a considerable amount of data but in many cases called for little information directly related to manpower - for consular work 5 of Over 100 questions and for commercial work 7 of 58. The Department explained that staffing ratios and other manpower information would be derived from data held centrally on posts’

complements. They considered that the Self- Inspection Questionnaires asked the necessary questions on staffing; the others were on procedures and controls.

3.13 The National Audit Office found that all ten reports made reference to posts’ objectives but in only three cases was there written evidence to suggest inspectors had used objectives to question the need for work or to assess overall performance. Furthermore, the reports did not assess posts in terms of their strategic importance as defined by the latest Top Management Round. The Department pointed out that inspectors would have a clear idea of a post’s overall priority and that there would not necessarily be written evidence of a standard inspection technique. They referred to the changes in procedures announced in July 1989 (paragraphs 3.16 to 3.17) which would focus inspectors’ attention more closely on objectives.

3.14 There was no evidence that inspectors had attempted to assess efficiency by comparing key workload and staffing performance indicators for similar posts. The Department informed the National Audit Office that each post operated under different circumstances and meaningful comparisons of workload and staffing levels were not practical. However, they emphasised that Inspectors used their experience of workload and staffing levels gained from posts previously reviewed.

Proposed developments

3.15 In 1988 the Department concluded that disparities between manpower and workload ratios at posts had been reduced and that inspections had largely become an exercise in fine tuning. However they also considered that traditional procedures had

17

FOREIGN AM) COMMONWEALTH OFFICE: MANPOWER

Table 6

Manpower changes recormnended by inspections

DS LE DS LE DS LE Increase in staffing 45 104 33 76 78 180 Decrease in staffing 64 88 61 70 125 158 Net increase/decrease 19 16 28 6 47 22 Upgradings 20 51 16 18 36 69 Downgradings 16 45 21 43 37 88

Net upgrade/downgrade 4 6 5 25 1 29

(DS = Diplomatic Staff grades LE = Locally engaged staff) Source: Overseas Inspectorate, Treasury returns

been geared to measuring workloads and not to assessing the need for work or its priority. In addition, inspections had no coherent relationship with the work of geographical departments in London which made it difficult to assess priorities in a particular area or to compare and contrast how work was done in broadly similar posts.

3.16 In July 1989 the Department therefore announced changes, also taking account of the increased delegation to posts for controlling locally- engaged staff numbers and grades. Some of these changes were implemented straight away and others were to be introduced over the following six months: they were also being tested during the inspection of American posts. There was to be a shift in emphasis from the examination of procedures to an assessment of the quality of management. In addition inspectors would be expected to judge and report on a post’s efforts to secure value for money through administrative means. From January 1990 Inspections would be on a six, rather than four year cycle. Interim inspections would however be undertaken before the first six-year inspection where necessary; these would be restricted to assessing management, dealing with identified problem areas and allowances. The Department envisaged that the need for interim inspections would decline after the first few years but the format would be retained for ad hoc scrutinies.

3.17 The Department also instructed inspectors to seek to identify work which need not be done, as well as work which should be done. They were to base their work on posts’ objectives and the priorities set by the Top Management Round; they were to evaluate performance against those objectives, assessing the use of resources according to the principles of the Financial Management Initiative, with special attention to the need to secure value for

money. Other changes included: more functional studies, for example of commercial or consular work; inspecting posts as a group, ideally within one geographical area; and greater co-ordination between the Inspectorate, Management Review Staff (paragraph 3.19) and Internal Audit.

3.18 This new approach was tested during the 1989 inspection of posts in the United States. The Department consider that this multi-facetted approach will bring benefits in terms of better value for money targetting and resource planning, and will measure manpower needs against objectives more effectively.

Management Review Staff

3.19 The role of the Management Review Staff is to inspect home departments and functions to ensure the optimum use of resources to achieve objectives. This remit covers complement, grading and responsibilities. It has a specialist unit - Management Services Staff - covering organisation and methods evaluation which focuses on consular, entry clearance and administrative support. This unit has since June 1989 carried out parallel reviews with the Overseas Inspectorate. The new approach is being developed further and from January 1990 inspections of large posts will be carried out by mixed inspection teams including Internal Audit. On several occasions Management Services staff have also undertaken overseas reviews alone, especially of entry clearance operations and the introduction of machine readable passports.

3.20 Management Review Staff examinations are programmed on a five-year cycle, in keeping with Treasury guidance, with the flexibility to add special exercises. Procedures and guidance are similar to

18

FOREIGN AND COMMONWEALTH OFFICE MANPOWER

those of the Overseas Inspectorate. The unit comprises 14 staff from the Diplomatic Service and three from the Overseas Development Administration; their tours of duty are three years. They attend both Treasury staff inspector ‘raining courses and in addition subscribe to more specialised analytical courses covering time and motion, and systems analysis.

3.21 In 1987-88 and 1988-89 the Management Review Staff examined 46 departments and functions, covering 1,092 staff. They made 667 recommendations of which 175 (26 per cent) had a direct impact on manpower (Table 7) and proposed a net decrease of 19 staff and a net downgrade of 21 jobs (Table 8). For the sample of 131 manpower recommendations examined by the National Audit Office the Department stated that 79 per cent were implemented, 64 per cent within six months.

3.22 The National Audit Office examined the briefing material for a recent review and reports covering five home departments. They found the briefing fairly detailed and noted from reports that departments’ objectives were used as a basis for assessment. Alternative solutions were given and costed where possible to enable management to reach an informed decision.

Public Accounts Committee’s previous examination

3.23 The Public Accounts Committee last considered the Foreign and Commonwealth Office’s manpower in 1984 (Second Report of Session 1984- 85). One of the Committee’s main recommendations was that the Treasury should participate in a sample of overseas inspections as part of a two-year experiment. The Department and the Treasury accepted the Committee’s recommendations and submitted a report to the Committee on the results in 1987.

Table 7

Coverage by Management Review Staff

Table 8

Manpower changes recommended by Management Review Staff

~~,~~,?,“~~.““‘““..c.;,;;, i _: ,:I ,i,a:r.*;n;, :; .-‘* ” “-Y 56 x *,* 2, ; ‘T:,‘,;,’ * “” “:K* r-C:> $ y+;:‘,<>q ?; t j ” ” ” “4 .,i ” :;,,: 5 “x 8 n i.,,:::, 19@7'88 1988-89 ‘: ‘,T”fa@”

Increase in staffing 16 21 37 Decrease in staffing 23 32 55 Net increase/decrease 7 11 18

Upgradings 12 6 18 Downgradings 19 20 39 Net upgrade/ downgrade 7 14 21

Source: Management Review Staffs Treasury returns

3.24 Between 1984 and 1986 Treasury inspectors participated in seven inspections. At the end of this trial the Treasury suggested a number of changes to working methods which have largely been implemented (Appendix 1). Since then, apart from visits to review allowances, the Treasury have joined two inspections - Bangladesh in November 1988 and South Africa in July 1989. The Treasury informed the National Audit Office that their participation had been useful in identifying scope for improvements in the Inspectorate’s procedures and eficiency.

3.25 In 1988 the Treasury also undertook, in agreement with the Foreign and Commonwealth Office, a more general and wider review of manpower. The Treasury took the view that the exercise did not point conclusively to a need to pursue particular points at that stage. The Treasury informed the National Audit Office, however, that they continue to pursue with the Department a number of aspects of their manpower and management planning system in the context of the Public Expenditure Survey and of the Financial Management Initiative.

Number of departments and functions reviewed:

Manpower covered

Number of recommendations

Recommendations having a direct impact on manpower

23 23 46

595 497 1,092

365 302 667

78 (21%) 97 (32%) 175 (26%)

Source: Management Review Staff’s Treasury returns

19

Management information

3.26 The Department have a number of management information systems which they have developed independently to meet different requirements. Resource Management Department maintains an Ideal Establishment (IDEST) which records the approved establishment, and a database for locally-engaged staff. Personnel Department maintains a system known as CRISS, currently being replaced, which holds information about the number of staff actually employed and their whereabouts. The finance department maintains a system for preparing manpower estimates for the annual Public Expenditure Survey and for providing cost information based on IDEST figures. The department responsible for commercial work has its own statistical information system providing manpower and activity data. Other functional departments are developing their databases (paragraph 2.3).

3.27 Management Review Staff assessed the Department’s systems in 1989 after different functional departments had given Parliamentary Committees conflicting manpower figures. Their report showed that the figures reflected a difference between authorised establishment and staff in post. It concluded that, although information was comprehensive and suitable for annual strategic planning, it was not designed to produce current management information. The Foreign and Commonwe&h Office told the National Audit Office that they had since reassessed the need to maintain statistics on approved establishment and actual manpower in post. This had confirmed the importance of having both types of information and the Department stated that they had now simplified the process of maintaining these statistics.

3.28 The Management Review Staff report also endorsed the policy of departments and posts retaining their individual systems but saw a need for greater integration. Management Review Staff, in conjunction with Inspectors, intend to assess the information requirements of each overseas post and home department as they are inspected over the next six years.

3.29 In addition the National Audit Office found a number of problems with the Department’s management information. First, as part of the annual Top Management Round, posts and departments are provided with individual cost reports once a year. These cannot be produced until six months after the end of the financial year when all data are available. As a result, management information is up to 18 months out of date before the next annual report. Second, cost information was provided by post and

function; costs by grade were available only on request. This problem was remedied in September 1989. Third, cost information in terms of output was not available, making it difficult, in the National Audit Office’s view, for managers to assess the financial effect of pursuing objectives and increasing or reducing specific activities. The Department considered that their worldwide network resulted in a longer elapsed time in receiving data from posts which in turn made it difficult to produce timely management information. However, while recognising that some improvements were required, they considered that posts had sufficient information, particularly on their local budgets.

3.30 There were also inconsistencies in the Department’s manpower information. At 31 March 1989, the staff in post database recorded locally engaged staff as 700 above the approved establishment recorded on IDEST. The Department thought the difference was likely to be mostly maintenance staff appointed at the discretion of local managers. They said that, as posts now had delegated authority for locally-engaged staff, they would be collecting information annually to maintain a central database of changes in staffing.

3.31 In order to provide more information for performance measurement, in 1988 the Department required posts to produce, from 1 January 1989, statistical returns of consular, entry clearance and information work (paragraph 2.4). The returns required are extensive. The Department explained that providing information on the amount of time spent by posts on different activities would be the first step in assessing trends and managing resources mrxe effectively. However, it appeared to the National Audit Office that, although the Department knew in general what they wanted to achieve, it was less clear how the specific data would be used to assess performance. The Department explained that they had been awaiting the outcome of a consultancy, appointed in Autumn 1989, to advise on the most appropriate computer system and that they had now determined how they would refine the information to produce key indicators.

3.32 In October 1989 the Department recognised that, for entry clearance work, many posts had attached little or no importance to the need to monitor workloads or maintain accurate data - sane posts admitted they kept no records. The Department have therefore emphasised the importance of activity and output data for assessing performance and determining staffing levels. Such information is already collected and monitored for commercial work by the responsible functional department.

20

FOREIGN AND COMMONWEALTH OFFICE MANPOWER

3.33 During overseas visits the National Audit Office noted variations in the extent and use of management information by posts. In one location a fully integrated system had recently been introduced and was beginning to be used for planning and the deployment of manpower. In contrast, another post operated five incompatible stand-alone systems - and those introduced in 1987 were already redundant. In general, systems lacked integration and the capacity to process necessary data.

3.34 A Steering Comittee has responsibility for reviewing and determining the Department’s information technology strategy. In 1985 it commissioned an internal review of financial and other management information systems. This recommended a more strategic approach, concluding that a single integrated system was the best solution. However, because of financial constraints, the report

recommended the retention of the existing independent systems while creating more automated links between them.

3.35 Progress has, however, been slow. Since 1987 consultants have been working on a system to link the IDEST and CRISS personnel databases and provide greater capacity. The Department expect the new system to be operational in 1990. In 1988 an Efficiency Scrutiny considered that the Department was behind most comparable organisations in harnessing information technology. A further review of Communications and Information Technology in July 1989 drew attention to the need for a reassessment and recommended the development of a central strategy for information technology. The Department told the National Audit Office that information technology systems were now a top priority.

Part 4: Efficient deployment

4.1 To consider the efficient deployment of manpower the National Audit Office obtained the type of information which they considered the Department should take into account in assessing their manpower requirements. The National Audit Office compared the activities of posts and the resources devoted to those tasks. Attention was concentrated on four activities: consular, entry clearance, commercial and administration work. Manpower and activity data were obtained in London and by questionnaire sent to 80 overseas posts. The National Audit Office used their visits to 11 posts to examine manpower control procedures and gain an understanding of the constraints under which staff operated.

4.2 The questionnaire, discussed in advance with the Department, sought information on actual and forecast activity levels based on key indicators. The Department emphasised that, by themselves, these questionnaires could not provide a comprehensive basis for making comparisons between posts. The National Audit office recognised this limitation and that the data could not be used to determine or verify staffing levels. However, they considered that there was scope for comparisons of specific activities which, using broad parameters, might identify significant variances which warranted explanation.

4.3 Posts were selected to reflect worldwide distribution while taking account of the range of different environments in which they operate. They were placed in groups designed to reflect factors which had an influence on staffing levels and working practices - such as the local economic and social infrastructure; different emphases of activity, for example as between Western Europe, third world and communist countries; and the level of education and skills affecting the availability of suitable locally- engaged staff. The questionnaires were analysed to identify those posts where staffing levels were significantly different taking account of activity levels.

Commercial work

4.4 The cost of commercial work in 1988-89 was some ~75 million. 1,072 staff were deployed in the ratio of 1:3, Diplomatic Service to locally-engaged staff. Commercial work represented some 30 per cent of the Department’s front line staff deployed overseas. Some commercial work was demand-led, for example

in providing services in response to requests i?om British companies; other work was self-generated and involved establishing new contacts, obtaining market sector information and identifying export opportunities targetted towards general export strategy priorities agreed with the Department of Trade and Industry. The Public Accounts Committee last considered commercial work in their Eighteenth Report of Session 1986-87.

4.5 Between 1983 and 1989 commercial staffing decreased by 10 per cent (121 staff). There were reductions in most regions [the largest in Africa at 38 per cent] but increases in Asia of 12 staff (11 per cent], Australasia and Pacific, 11 staff (28 per cent), and the Far East, 10 staff (17 per cent).

4.6 The National Audit Office sought information on six indicators related to the level of activity and the resources devoted to it: the value of UK exports; the numbers of enquiries received by commercial sections from UK businessmen: initiative visits to local firms; trade fairs attended; trade missions assisted: and Export Intelligence Service notices issued. Comparisons covered 1987 and 1988 were made within two groups: OECD and non-OECII countries.

4.7 There were many unquantifiable factors which affected staffing levels, such as the degree of difficulty of work and the quality of service. Using multiple regression analysis the National Audit Office found a high degree of correlation between staff numbers and the six indicators in the 80 posts examined. However the National Audit Office identified 10 posts whose staffing appeared to differ significantly from what might be expected for their workload (Appendix 2).

4.8 The Department considered there were many factors which explained why these staffing differences might exist: in one instance activity levels were lower because of temporary vacancies, in two cases local conditions necessitated above average staffing; and in one post manpower would be shortly subject to an inspection. While there were no obvious reasOns why differences should exist in the remaining cases, the Department considered that workload was consistent with agreed objectives and current staffing levels.

4.9 The National Audit Office separately examined the number of Export Intelligence Notices which posts produced in 1988-89. The average for OECD

22

POREIGNANDCOMMONWEALTHOFFICE:MANPOWER

countries was 279 notices per post and 354 for non-OECD countries: but there was a considerable range. For example in Algiers 1,580 notices were produced, almost 4.5 times the average; Lusaka produced 76 notices compared with 347 in Harare. The Department explained that it was necessary to distinguish between routine notices, such as reporting calls for tender usually derived from the local press; and notices communicating other commercial opportunities - which were of more value to exporters. In Algiers and Harare over 90 per cent of the relatively large number of notices reported calls for tender which the Department considered reflected the fact that the public sector was responsible for the main area of economic activity in these countries.

4.10 In April 1989 charges were introduced for information provided by posts through the Market Information Enquiry Service. This was expected to provide a good indicator of the true demand for commercial sections’ services. During their visits to overseas posts the National Audit Office found that commercial sections did not know, as yet, what impact charging was likely to have on their workload or staffing. The posts pointed out that fees covered only a small proportion of the cost of their work. The Department stated that, in conjunction with the Department of Trade and Industry, they were continuing to consider where the charging regime could be improved or extended.

Consular work

4.11 The Department estimated the cost of consular work in 1988-89 at g29 million. 591 staff were deployed - 97 in London, the remainder Overseas in the ratio 1:4 of Diplomatic Service to locally-engaged staff. Between 1983 and 1989 consular staffing decreased by 2 per cent, reducing in all regions except the Near East and North Africa where staffing increased by 31 per cent against a background of an increasing number of visits abroad by British nationals.

4.12 Over 50 per cent of the posts questioned considered their work tended towards above average difficulty. Some 31 per cent estimated that their consular workload was likely to increase by more than 10 per cent in the next two to three years. The National Audit Office asked the Foreign and Commonwealth Office how they estimated future changes in workload and the likely degree of difficulty when assessing manpower needs. The Department explained that the Top Management Round considered new commitments in the medium and long-term and that they used this information to assess future resource requirements in broad terms.

They also stated that before specific inspections of posts they tiied to anticipate trends and predict workload changes.

4.13 One major consular function is to issue passports overseas. The National Audit Office examined the number of working days posts took to process applications. (Although not directly comparable, in May 1989 the London Passport Office took 20 working days to process a postal application.) Excluding four posts considered separately because of the large number of passports they processed, the average number of working days taken in 1988 was just under 5 in low seasOn increasing to 8 in high season within the range 2 days (Istanbul] to 30 days (Dhaka). The wide range can be partly explained by workload and access to supporting documentation - particularly in the Indian sub-continent and Africa, where Commonwealth citizens claiming UK nationality often require extensive verification. If Dhaka were excluded the longest time was in Johannesburg (23 days]. The Department told the National Audit Office that the latter had subsequently been inspected, new procedures introduced and waiting-time considerably reduced.

4.14 The National Audit Office also focused on a sub-set of European posts where the problems of verifying supporting information, such as financial standing, might not be so difficult (Table 9). Five posts took more than 10 days in the high season (Barcelona, Dusseldorf, Madrid, Milan and Stockholm). The Department explained that these were among the busiest consular sections in Western Europe which also had to deal with a large volume of other consular and entry clearance business; they also considered that postal applications might be delayed while cheques were cleared.

4.15 In the high volume locations [Table 10) processing could take up to 70 days. The Department pointed to the general growth in passports issued abroad - which they expected to continue. This arose partly from a growing awareness that a British passport gave freedom of movement within the European Community. For a dual British/ Commonwealth citizen who wished to be free of restrictions on staying in the UK, it was also cheaper to obtain a British passport for El5 than a certificate of entitlement to right of abode at E60. The Department considered that this had led to a larger number of passport applications in Australia, Canada and New Zealand and to a consequential increase in issuing times [Table 10). However they had recognised that processing times in Wellington were unacceptable; time-consuming practices had been replaced by more streamlined procedures: non-urgent applications were now processed within 20 days.

23


Table 9

Length of time to issue passports: European posts

Milan stockhohn Madrid Dusseldorf Barcelona Lisbon Amsterdam Athens Helsinki ROIIE Vienna Oslo Brussels Copenhagen Istanbul

days days

15 20 8 16.5 5 17

10 17 5 17 6 15 5 10 4 10 3 10 2 6 5 7 3 7

3-5 5-7 3.5 5.5

- -

days days

15 20 10 18

5 17 8 12 5 12 4 11 5 10 4 10 3 10 4 8 5 7 3 7

3-5 5-7 3.5 5.5 1 2

Source: NAO questionaire

Table 10

Length of time to issue a passport (high volume posts)

Wellington Canberra Ottawa Dublin

season (h-1

20 5

15 10

SeaSOIl

(day4

60 20 40 35

season (days)

10 5

15 10

season (days)

70 40 40 30

Source: NAO questionnaire

4.16 Using the technique described in paragraphs 4.6 and 4.7 the National Audit Office found a high degree of correlation between staff numbers and three indicators: the numbers of UK births and deaths registered; consular visits to UK and Commonwealth citizens in prison; and passports issued. Based on this information the National Audit Office identified 8 posts where staffkg appeared to differ significantly, given their workload (Appendix 2).

4.17 The Department pointed to various factors which they considered explained the differences in staffing. These included a high incidence of difficult consular cases; large resident British populations;

difficult diplomatic relations; the need to protect British nationals from terrorist activity; poor transportation and telephone communications; slow local bureaucracy; and the need for consular staff to be away from the office. Nevertheless one post conceded that a vice-consul was on occasions under employed; and in another post a recent staff inspection had confirmed that there was some spare capacity, which the Department told the National Audit Office was being removed.

4.18 The Department emphasised the growth in British citizens travelling abroad - some 27 million in 1987 - and the number of British nationals

24


resident overseas, estimated at 6 million. Consular work was largely demand-led and since 1987 the Department had financed a public education campaign to make travellers mme aware of what assistance a Consul can and cannot provide. Consular staff also have to respond to emergencies such as the evacuation of British nationals from China, Hurricane Hugo in the Caribbean and the San Francisco earthquake.

4.19 From 1990 posts will be providing more information on activity levels and output for consular and entry clearance work. However the National Audit Office noted that this information was to be used to review trends in workload over the years: the Department stated that they had no plans so far to compare posts’ performance.

Entry clearance work

4.20 Entry clearance to the United Kingdom takes three forms: visas, required by foreign nationals of 69 countries; entry certificates for Commonwealth nationals except where visas are required; and letters of consent for non-visa foreign nationals travelling to the United Kingdom for a purpose other than a visit.

4.21 In 1988-89 the cost of processing applications from those wishing to enter the United Kingdom was some E30 million overseas. 742 staff were deployed in the ratio 1:2 of Diplomatic Service to locally-engaged staff. This included 64 Immigration Service officers seconded from the Home Office, which has responsibility for entry clearance policy. Between 1983 and 1989 there was an increase in en@ clearance work arising from the introduction of visa regimes for Nigeria, Ghana, the Indian sub-continent and, in 1989, for Turkey. An additional 244 staff were required - a 49 per cent increase over the number for 1983.

4.22 Over 55 per cent of the posts examined considered that their entry clearance workload was likely to increase by more than 10 per cent over the next 2-3 years. And some 65 per cent assessed their work as tending towards maximum difficulty. As with consular work (paragraph 4.12) tbe National Audit Office found no evidence that information of this type was used by the Department in assessing manpower needs. The Foreign and Commonwealth Office stated that in December 1989 they had introduced a requirement for posts to provide an annual three-year forecast of likely changes in workload.

4.23 The National Audit Office sought to examine the time taken to issue visas but inconsistencies in responses to the questionnaire prevented meaningful

comparisons. It was nevertheless possible to apply the technique described in paragraphs 4.6 and 4.7 to entry clearance applications received by posts. The National Audit Office identified 5 posts where staffing appeared to differ significantly, given their workload (Appendix 2).

4.24 The Department considered that the differences were explained by difficult cases and a general increase in visa applications. They were aware that the immigration section of one of the five posts was generously staffed and told the National Audit Office that the complement would be shortly reduced.

4.25 The Department’s 1989 review of Entry Clearance work (paragraph 2.20) was undertaken largely to decide how to respond to the increase in applications. The review estimated that the number issued could rise from 975,000 in 1987 to over 1.7 million by 1994. The Department have been developing a computerised system for recording and retrieving entry clearance data. In 1988 the system was tested in one post, Warsaw; in 1989 the test was extended to Lagos and Moscow. Nine other posts were using a separate limited system but were constrained by insufficient capacity. The review saw the lack of adequate information technology as a serious constraint on efficiency and expected the computerised system being developed for recording and retrieving entry clearance data to lead to improvement. In the longer term the review considered that an automated system for making referrals to London would contribute significantly to efficiency and could be expected to lead to large manpower savings, especially in London-based staff.

Administration

4.26 Posts require a range of support services including the provision and maintenance of official and personal accommodation; purchasing of supplies; diplomatic entertaining; and local recruitment. The National Audit Office considered three main aspects: the balance between support and frontline functions, locally-engaged staff, and posts’ approach to management.

Support and frontline functions

4.27 In 1988-89 the total cost of administrative manpower was c65 million. Some 800 Diplomatic grade staff were deployed on this work, about 28 per cent of the staff overseas. Between 1983 and 1989 Diplomatic Service staff on administration work increased by 27 per cent (169 staff); numbers doubled in North Africa and the Middle and Near East, and increased by 70 per cent in Asia.

25

FORF.IGNANDCOMMON'"WAL TH OFFIIX MANPOWER

4.28 The Department became concerned that their administration was becoming unwieldy with a growing imbalance between frontline and support staff. Therefore in 1988 they undertook an Efficiency Scrutiny which found the balance to be about 1:2, frontline to support staff - broadly similar to Diplomatic Services in other Western countries. The report recommended that management within posts needed to be improved with a greater awareness of cost control, and that the work of the Overseas Inspector&, Management Review Staff and Internal Audit needed co-ordination. The Department accepted many of the Report’s recommendations and in July 1989 introduced a new designation - Deputy Head of Mission - with the task of improving management and co-ordination. They also introduced a number of changes to enhance the status and responsibility of management officers and encouraged specialisation in management for those with the right aptitude.

Locally engaged staff

4.29 Locally engaged staff range from drivers and messengers to commercial and consular officers with responsibilities equivalent to junior and middle rank Diplomatic Service staff. In 1988-89 locally engaged grades represented 68 per cent of staff deployed overseas (excluding residence staff) of whom 37 per cent wer‘c cmploycd on frontline activities; rates of pay vary according to local conditions but in total cost some E55 million.

4.30 In April 1988 posts were given delegated responsibility for the numbers of locally-engaged staff. They are expected to keep within the post’s overall budget and they remain subject to periodic Inspection. In the United States, the largest representation, the Ambassador was also given delegated authority for Diplomatic Service manpower movements within the country. This is likely to be extended to other multi-post countries.

4.31 The National Audit Office examined whether posts were using their greater managerial responsibility to secure improvements in deployment, particularly as locally-engaged staff represented an average of 55 per cent of the local budget. The National Audit Office noted that posts based their annual local budget bids on their ideal establishment at 1 October each year. However, unless there had been a staff inspection, these establishment figures appeared to reflect the authorised complement at the time the new system of delegation was introduced without a fundamental re-assessment by local management. The Department considered that the introduction of local budgets would soon force posts to make such re-assessments. In nine of the 11 posts visited, the National Audit Office found objectives had not been set for locally-engaged staff.

4.32 The posts visited by the National Audit Office considered the high proportion of the budget allocated to locally engaged pay reduced the flexibility which delegation theoretically provided. This was because significant funds could be released for other expenditure only if locally-engaged complements were reduced. In one post the poor quality of locally available staff necessitated employing Diplomatic Service spouses for more senior positions at higher rates than for locally engaged staff. In other posts locally-engaged staff were on long-term contracts. The National Audit Office noted that in the 80 posts questioned over 90 per cent of their locally engaged staff were employed on long-term contracts or until retirement; only two per cent were on short-term contracts of two years cm less. These commitments further reduced flexibility.

4.33 The Department pointed out that in scnne countries they were constrained by local employment laws and that there could be a significant financial penalty in dismissing staff who had been employed for a long period. However in 1989 they asked all posts to consider placing locally-engaged staff on formal contracts, where local conditions permitted, as a means of giving management greater control. The Department now require objectives to be set for senior locally-engaged staff and have suggested that managers should consider moving local staff within the post and to other posts under their command to secure better deployment. During overseas visits the National Audit Office found two examples of redeployment of local manpower within a post but no instance of staff having been redeployed between posts in a country. Local managers told the National Audit Office that they considered this would be difficult. The Department agreed that while it may be possible to move jobs it would be more difficult to move individuals.

Management

4.34 In November 1988, Management Review Staff examined the approach to administration and management in three large European posts. They found that management information was not always being used for decision making; posts were not taking full advantage of the greater flexibility that local budgets offered; opportunities for regrading and restructuring local staff were being missed; resource allocation needed to be decided in light of the posts’ wider objectives: in many cases work was being done at too high a level; and the trend in allowing posts to develop individual computer systems needed to be reversed. The report concluded that more forward planning and better systems were required if the Diplomatic Service were to achieve a more effective management.

26

4.35 The Department undertook a number of initiatives to secure improvements. A seminar for Administration officers working in European posts was held in 1989 to communicate good practice; Management Review Staff produced a good practice guide suggesting how improvements in value for money could be achieved through better purchasing, transport and travel arrangements; from April 1989 the Overseas Inspectorate have been required to assess the quality of management and the efforts made to secure improvements in value for money; and a new training course for senior management staff at posts has been devised and will run two 01

. three times in 1990. In 1988-89, 74 staff [13 per cent] in middle management grades in London and 67 administration officers Overseas (10 per cent] participated in training cowses to improve their management skills. In addition, posts are now required to set annual value for money targets for local expenditure in their Top Management Round returns.

4.36 In the posts they visited the National Audit Office found Post Management Committees had been established to control and review the local budget where the size of the post made this practical. However only one post, in the National Audit Office’s view, appeared to be operating this effectively. This

post undertook costing exercises on which to base management decisions; considered how locally- engaged staff could be better deployed; and reviewed value for money targets and budget outturn to consider whether improvements were required. At another post the Management Committee did not formally meet and relied on the Administration Officer to consult other staff as necessary; at a third post decisions were taken mainly by the Administration Officer and the scope for delegation had not been properly considered.

4.37 All posts visited told the National Audit Office that they recognised the importance of achieving value for money but in only one did the National Audit Office find evidence that the requirement to include value for money targets in administrative objectives had been met. However, the Department told the National Audit Office that in the 1989-90 Top Management Round a much greater proportion of posts had included value for money targets.

4.38 At the posts visited, the National Audit Office found the extent to which performance against objectives was reviewed across all functions was variable: two posts met three or four times a year to consider progress, others met only once - when objectives for the next year had to be agreed.

27

Appendix 1

Progress in implementing the Treasury’s 1986 recommendations for improving the Foreign and Commonwealth Office’s staff inspection procedures

1. Greater emphasis to be placed on the responsibility of inspectors to challenge the need for work

2. Use of accepted methods and techniques to measure workload

3. Workload yardsticks and guidance to be regularly reviewed

4. Grading guidance for Diplomatic Service and locally-engaged staff to be produced

5. Greater emphasis needed in guidance on the advantages of a taut grading regime

6. Inspectors to continue to adopt a challenging approach to top management posts and management structure

7. Inspectorate to examine the possibility of a more selective approach to scheduling inspections

8. Inspection costs should be recorded in reports and monitored

The Inspectors’ Handbook was amended in 1987. The NAO found limited evidence that the need for work had been rigorously assessed but the Department have now introduced improvements (paragraphs 3.10-3.18).

Covered by Treasury training cc~urses (paragraph 3.3) but inspectors are partly constrained by the lack of workload data. More recently, the involvement of Management Review Staff is intended to improve procedures (paragraph 3.17).

Yardsticks for registry staff were reviewed in 1986; those for communications staff and consular staff were reviewed in 1989; those for commercial work were now being reviewed (paragraph 3.6)

Guidance covering grading and skill levels was produced in January 1988 based on Treasury advice

Included in 1987

The NAO found no evidence of change

Introduced in January 1990

Included in 1988

28

FOREIGN AND COMMOiVNEALTH OFFICE: MANPOWER

Appendix 2

Comparisons of posts’ manpower complements for commercial, consular and entry clearance work.

The tables below show those posts where staffing appeared significantly different from a statistically determined range for their level of workload. The factors which the Foreign and Commonwealth Office told the National Audit Office might explain the differences in staffing are summarised after each table. (The sources of the data were a questionnaire sent to 80 cwerseas posts and information provided by the Department - paragraphs 4.2 and 4.3.)

(a] Commercial work

above average staffing

Copenhagen New Delhi Hong Kong Ku& Lumpur Lagos SWXll

below average staffing

Istanbul Jedda Osaka Nairobi

%

11.0 16.4 33 6.4 12.0 30 9.8 13.5 27

10.3 14.0 26 11.1 14.5 23 14.0 18.0 22

16.2 6.8 138 12.1 6.0 102 17.5 10.0 75 13.3 8.0 66

(i) Staffing above expectations

Copenhagen There had been a vacancy for two months and the new incumbent needed time to settle in - resulting in a decrease in the normal level of activity.

New Delhi An unusually high proportion of support staff was explained as a common feature of labour-intensive employment practices in India; the mission also co-ordinated three subordinate commercial posts in India.

Hong Kong The existing complement included staff dealing with trade with China which was not covered by the activity data provided. In addition there had been 11 ministerial visits which had increased workload.

Kuolo Lumpur A large proportion of work (30 per cent) was project orientated which consumed more resources.

29

Lagos Some staff were responsible for economic reporting rather than export promotion but a staff inspection in Autumn 1989 would be considering commercial staffing in greater detail.

Seoul The large number of trade missions consumed inordinate amounts of time, given the different language and business culture; there was also a high number of local business visitors.

[ii] Staffing below expectations

Istanbul Staffing had been increased in 1987 but the Department accepted that commercial statistics indicated a continuing increase in responsive work.

Jeddo The Department pointed out that data, particularly the value of UK exports, had to be considered in terms of the staff also deployed at the other two posts in Saudia Arabia (Riyadh and Al Khobar).

Osaka The post recognised the considerable potential for UK exports but believed that existing staffing levels were about right.

Nairobi The Department considered that the overall activity of the post was consistent with present staffing levels.

(b) Consular

% Bombay 4.1 10 59 New Delhi 3.3 8 59 Istanbul 2.9 7 59 Rome 3.7 7 47 Lagos 5.3 9 41 Riyadh 3.6 6 40 Nicosia 5.6 9 38 Madrid 5.6 a 30

Bombay Difficulties were encountered with drug addicts, “drop-outs” and “hippies” which necessitated the absence of one officer from the Consulate. The city was also a major international airport and seaport which created additional work.

New Delhi A busy post. Staffing reflected labour-intensive employment practices in India.

Istanbul Growth in UK tourists visiting Turkey. Introduction of a UK visa regime had resulted in a reorganisation of staffing including consular.

Rome March 1989 inspection confirmed that a locally engaged Vice-Consul grade had considerable spare capacity and a previous full-time grade was now working part-time.

30


Lagos Staffing reflected difficult local conditions.

Riyadh Difference explained by some interchange of staff employed on entry- clearance work.

Nicosio The division of Cyprus and the UK not recognising the Turkish Republic of Northern Cyprus were major complications. The presence of British military bases and the strategic importance of the island had an influence on consular protection work, particularly in terms of terrorist activity and the evacuation of British nationals from trouble spots.

Madrid Difference reflected a quieter than usual year but the post conceded that the vice-consul handling protection work was on occasions under-employed. Madrid has a large resident British population which required year-round advice; 90 per cent of passport applications in Spain were processed by the post and this workload would increase if complete centralisation of passport issuing in Madrid proceeded in 1990.

(c) Entry clearance work

%

Kingston 2.7 7.0 61 HEli-al-2 1.6 4.0 60 Nicosia 4.3 9.0 52 Dusseldorf 6.9 11.0 38 Kuala Lumpur 4.7 7.0 33

Kingston The Department were aware that staffing was generous and said that the complement would be reduced by one in October 1989.

Harare Difference was explained by staff performing entry clearance and consular duties; the true workload was therefore understated.

Nicosia The Department did not consider the complement was generous and pointed to a sharp rise in Lebanese and Iranian visa applications.

Ku& Lumpur As Harare.

Dusseldorf The majority of applications were from non-resident foreigners which were often difficult. The Department considered staffing levels were justified.

31

Appendix 3

Questions used to assess how posts managed and controlled their manpower and other B?cscnlrces

Within the Diplomatic Service the manager’s role in an overseas post is essential in assessing the need for work and for determining the manpower and other resources to meet that need. During their visits to posts the National Audit Office posed a range of questions which they considered were important in managing resources. These are summarised below.

- Are there regular management meetings to decide what needs to be done, to take resource decisions and to review performance?

- Is adequate information available covering cost, resource utilisation and output?

- Is there effective delegation while maintaining proper accountability?

- Is the need for work reviewed and are the consequent resources assessed?

- Is the current and future demand for services and manpower assessed?

- Is the standard of service fully justified?

- Are proposed staffing changes justified in terms of their contribution to the achievement of objectives?

- Are alternative means of achieving objectives considered to ensure that the most cost-effective course of action is taken?

- Is workload prioritised where practical to ensure that effort and resou~‘cas are properly targetted?

- Are work programmes prepared and approved at an appropriate level of management?

- IS there effective communication so that all staff know what they are expected to achieve and by when?

- Is performance reviewed regularly and systematically, concentrating on key indicators such as cost, productivity, the demand for services and overall output?

- Are external comparisons undertaken where practical to identify potential areas of inefficiency?

- Is the necessary action taken when performance is unsatisfactory - for example by reviewing working procedures, skill mix, external factors etc?

- Are bids for local expenditure based on realistic assumptions reflecting the need for resources?

32


- Are local budgets consistent with objectives and planned activity levels?

- Are local budgets monitored regularly and systematically: are significant variances investigated; and is remedial action taken?

- Are value for money targets set together with an efficiency programme?

- Are requirements for locally-engaged staff and the scope for their more efficient deployment reviewed periodically?

33

Documents

Foreign and Commonwealth Office: Manpower