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Chaudhry, Gary James Reid 5
Chaudhry, Gary James Reid 5
Publicsector
remunerationas
Total percentageof
Position Basesalary Allawances remuneration priate sector
Managers
Public: Minister/executive director 9,753 11,654 21,407 29.54
Private: President 49,694 22.780 72,474
Public: Sectoral director general 8,201 6,635 14,836 42.38
Private: Director of finances 25,052 9,954 35,007
Public: Unit chief 6,319 3,909 10,228 53.40
Private: Director of internal audit 12,737 6,415 19,152
Professzonal/technical
Public: Top prof./ech., grade 32-10 9,356 2,866 12,222 105.83
Private: Chief systems analyst 8,562 2,986 11,549
Public: Mid-level prof./tech., grade 24-5 5,493 1,682 7,175 97.61
Private: Internal auditor 5,568 1,783 7,351
Public: Bottom prof./ech., grade I5-I 3,145 963 4,108 90.48
Private: Computer operator 3,448 1,093 4,541
Administrative/support
Public: Top administrabve,grade 26- 10 4,726 1,448 6,173 63.41
Private: Executive secretary, bilingual 7,344 2,392 9,735
Public: Middle administrative, grade 14-5 2,329 713 3,042 54.81
Private: Cashier 4,178 1,373 5,550
Public: Bottom administrative,grade I - 1 1,120 343 1,463
Private: Receptonist 2,382 724 3,106 47.10
Bluecollar
Public: Semi-skilled labor 1,491 995 2,485 50.55
Private: Chauffeur 11 3,723 1,194 4,916
Note:All salaryfiguresin annualU.S. dollars,convertedatan exchangerateof 66.85 Bs.l$US.
Source:Forprivatesector,decree2.039,1992;Escala de Sueldosy PnmasparaCargosdeAlto Nivel,Organismos
de la Administraci6n
Publica,OficnaCentralde Personal,
1993;
Republica de Venezuela.For publicsector,Encuestade Compensacin 1992.
has two steps: classifyingpositions and assigning salaries plexity of thought processes required, extent of au-
to them. tonomy, and discretion that must be exercised)
Position classification consists of specifying: - Technical and managerial knowledge and capacity
* Title required for the position, including key indicators of
* Functions and purpose of the position such knowledge and capacities, such as formal edu-
* Responsibilities cation and experience.
* Managerial responsibilities (for example, magni- While this level of detail is perhaps greater than is
tudes of budget, personnel budget, value of equip- found in many other position classificationsystems in the
ment, numbers and types of employees supervised public and private sectors, the categories are typical: title,
directly and inidirectly) functions, responsibilities,and skill requirements.
* Institutional responsibilities (formal relations that Salary assignment is accomplished by giving weights
the holder of the position is responsible for maintain- to the position responsibilitiesand skill requirements. The
ing, inside the agency and across agencies) Venezuela proposal first rank orders a subset of the re-
* Policy and program responsibilities (external pub- sponsibilitiesand skill requirements identified in the posi-
lic policyor service effects of the unit managed by the tion classification exercise and then assigns salary incre-
holder of the position) ments across rankings along each given dimension of 5,
* Skill requirements 20, or 25. The proposal ranks skills along two dimensions
* Complexity of demands placed on the holder of (conceptual and technical and integrative), and identifies
the position (types of challenges to be faced, com- seven ordered levels of conceptual and technical skills
PuBLIC SECTOR HUMAN RESOURCE MANAGEMENT IN LATIN AMERICA AND THE CARIBBEAN 5I
TABLE8.5 TABLE8.6
52 CIVILSERVICE
REFORM
IN LATINAMERICA
AND THECARIBBEAN
ship holds with the private sector, this salary scale will those different skill and responsibilitylevels. Instead, the
underminc the ability of the public sector to staff those increments have been constructed to achieve a pre-speci-
positions whose salaries happen to fall further below their fied compression ratio.
private sector counterparts (level 3 in thc hypothetical
example) than do other public sector position salaries Other salary scales.The COPRE and SINAPA sys-
(level 2 in the example). tems' lack of a consistent relationship with the opportu-
nity costs of labor is not unique. The complexity and
Argentina (SINAPA). The same flaw can be seen in transparency of the procedures for establishingbase salary
Argentina's recent revision of its public sector base salary scales vary across countries, but all countries examined in
assignment policies under its new Sistema Nacional de this study suffer from this shortcoming because they rely
Profesi6n Administrativa (SINAPA). The SINAPA posi- upon technicalrather than opportunitycost factors to con-
tion classification procedure and salary assignment algo- struct their salary scales:
rithm is very similar to the proposed Venezuelan proce- * In addition to SINAPA, Argentina's previous and other
dures. Positions are classifiedbased on responsibilitiesand public salary scales (the previous salary scale covering
skill requiremcnts, includingboth task demands and level core personnel in the central government under decree
of autonomy demanded by those tasks. On the basis of 1.428/73,as well as those still governing teachers, various
thirteen responsibility categories and seventeen skill cat- public enterprises, the judiciary) are also based on techni-
egories (eleven task demand categories and six autonomy cal considerations, rather than opportunity costs.
level categories), cach position is classifiedinto one of six * Existing central government salary scales in Chile, El
possible levels, labeled A through F. Each position classi- Salvador, Guyana, Honduras, Trinidad and Tobago, Uru-
fication has five salary grades (base through 4) (see tables guay, and Venezuela are based strictly on technical con-
8.7 and 8.18). Base salaries are computed by multiplying siderations. (Throughout this section "central government
the appropriate cell index by the current period multi- employee" denotes people employed in central govern-
plier, thereby allowingready adjustment of the salaryscale ment agencies subject to the governing civil service stat-
to reflect factors such as inflation or a policy to increase tire. In Venezuela, this set includes seventy-one central
salaries across the board. Salary increments along the government agencies, although some employees within
horizontal axis of that salary scale are attained on the those agencies are exempted from the Ley de Carrera
basis of the employee's historyof annual personnel perfor- Administrativa-for example, uniformed military person-
mance evaluations, while vertical movements (across lev- nel, teachers, and university administrators.)
els) within the salary scale are achieved by meeting the * Trinidad and Tobago is currently employing a consult-
position-specificresponsibilityand skill requirements for a ant to revise its civil service salary scale. The approach
higher-level position and being promoted to it. being taken is very similarto the Venezuelan and Argen-
The index magnitudes were constructed to ass' ,e tine approaches described above. Points are to be assigned
that the ratio of the salary of the highest-paid to the to various dimensions of position descriptors and those
lowest-paid employee covered by that salary scale (the points are to be used to rank order positions. Salary differ-
compression ratio) would achieve a pre-specified magni- entials are to be assigned so as to assure that the overall
tude-in this case, 10.5. The particular pattern of across- salary structure will exhibit a normal distribution. The
level and across-gradesalary increments were constructed assignment of points and the imposition of a particular
to assure 9 percent increments for each grade step (hori- functional form on the overall distribution of salaries are
zontal movement in table 8.7), while satisfyingthis over- TABLE8.7
all requirementof a compressionratio of 10.5.Prelimi-
nary versions of the SINAPA salary scale imposed 50 Argentina: SINAPA salary scale,
percent increments for promotions across levels F through June 1991
C and 60 percent increments for promotions between Level Bosegrade GradeI Grade
2 Grade3 Grode4
levels C and A. The more recent version which was -
adopted under Decree 994/91, relinquished this incre- B 606 660 720 na. na.
ment simplicityto achievethe overallcompressionratio c 408 444 484 527 n.a.
of 10.5 (the overall compressionratio in a preliminary D 260 296 322 351 382
SINAPA salary scale proposal was 10.28). E 150 164 178 194 212
Assignment of salary increments on the SINAPA F 100 109 119 130 141
salary scale has nothing to do with differentialsin the n.a.Not applicable.
Source;
SistemaNacional
deProfesion
Administrativa
(SINAPA),
AnnexI to Decreto
opportunity costs faced by employeesholding positions at 1994/91,Argertina.
PUBLICSFCTORHUMANRESOURCE
MANAGEMENT AND THECARIBBEAN
IN LATINAMERICA 55
on decree 2.192 in the Instituto Nacional de Tecnologia 12 percent for lower positions. Supplements reflecting
Agricultural Agropecuaria (National Institute of Agri- government program priorities-including program pri-
culture Technology) were 342 percent of base salary (in- ority, exclusive dedication, investment dedication, and
cluding dedicaci6nfuncional) for employees at the top of regional adjustments-accounted for 10.2 to 19.6 per-
the INTA salary scale, 126 percent for those near the cent of total compensation. Seniority factors (time in
middle of the scale, and only 61 percent for those at the position and seniority), in turn, accounted for between
bottom (Republic of Argentina, Ministry of Economy). 1.4 percent and almost 4.0 percent of total compensa-
These enhancements accounted for 21.1 percent of total tion. A productivity factor could account for around 7.7
reported compensation for a prototype top-level em- to 9.2 percent of total compensation for these positions.
ployee in INTA, 23.2 percent for a prototype mid-level Other supplements accounted for another 20.9 percent
employee, but only 13.9 percent for a prototype employee of total compensation, on average, including 18.7 per-
at the bottom of the salary scale (see table 8.11). Total cent dedicated to providing meals to employees. In short,
enhanced base salary, including all position-linked salary salary supplements account for a sizable fraction of total
enhancements as of April 1991, accounted for 27.2, 41.6 compensation under both of these typical salary regimes
and 36.8 percent, respectively,of total reported compen- in Argentina. While a sizable fraction of those supple-
sation for these three prototype employees. Salary supple- ments appear to be linked to levels of responsibility and
ments other than these position-specific enhancements skill requirements, a large portion would appears to have
accounted for 72.8 percent of total reported compensa- little to do with such factors: the 18.7 percent of salaries
tion for the prototype top-level employee, 58.4 percent attributable to meals.
for the middle-level employee, and 63.2 percent for the
prototype employee at the bottom of the salary scale. Chile. Chile's set of salary supplements is perhaps as
Salary supplements reflecting level of responsibility and extensive as that found in Argentina. Salary supplements
job demands-for example, whether the position-holder
held a university title, level in the hierarchy, and TABLE8.11
whether the position was a scientific, technical or super- Argentina: salary components in Instituto
visory position)-accounted for almost 30 percent of to- Nacional de Tecnologia Agropecuaria,
tal compensation for the highest position, but only about April 1991
(percent)
TABLE
8.10
^ . .,. , ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Highest-ra
Modal Lowest-ranking
Argentina: military salary components as Compensation position position posiaon
percentage of gross salary, October 1991 component AI-15)(grode
(grade EI-Io) (grade
C2-4)
Enhanced salarybase 27.2 41.6 36.8
Base SeniorityResidencySpeciol Basesalary 2.5 7.3 9.2
Position wage Allowancespremium premiumpremiums Functionaldedication 3.7
Specialbenefit 11.0 13.8
Lieutenantgeneral 15.9 23.8 31.7 13.9 14.7 Ait. 4, D.2.192/86 21.1 23.2 13.9
Majorgeneral 16.0 24.0 31.2 14.0 14.8
Brigadier
general 16.3 24.4 30.1 14.2 15.0 Salarysupplements 72.8 58.4 63.2
Colonel 16.8 25.2 27.7 14.7 15.5 Responsibility/ob
demands, 29.6 12.5 12.1
Lieutenantcolonel 17.7 26.5 23.9 15.5 16.4 Govemmentprogrampriority5 10.2 15.7 19.6
Major 18.7 28.0 19.7 16.3 17.3 Productivity 8.0 7.7 9.2
Major
18.7 28.0 19.7 16.3 17.3 ~Seniority
factorsc 4.0 1.7 1.4
Captain 19.8 29.7 14.9 17.3 18.3 Othersupplements 20.9 20.9 20.9
Firstlieutenant1 20.6 30.9 11.4 18.0 19.1 Meals 18.7 18.7 18.7
Firstlieutenant2 21.3 31.9 8.6 18.6 19.7 Household/domestic
benefit 1.0 1.0 1.0
Secondlieutenant 21.9 33.0 5.5 19.3 20.3 Miscellaneous' 1.0 1.1 1.1
Sergeantmajor 17.1 25.6 26.5 I5.0 15.8 Totalcompensation 100.0 100.0 100.0
Sergeantpdncipal 17.9 26.8 23.2 15.6 16.5
Sergeantadjunct 18.7 28.0 19.7 16.4 17.3 Note:Supplementsfor Law20.340/73, meals,andmiscellaneous
areimputed atagency
Sergeantl 19.4 29.1 16.5 17.0 18.0 averages,andhenceareestimated asconstant average percentagesacrossposition
prototypes.AlIotherfiguresreflectposition prototypecompensationlevels.
Sergeant 20.6 31.0 11.3 18.0 19.1 title. hierarchy
a. Positionand function,university compensation,andsupplemental
Corporal 1 21.5 32.3 7.6 18.8 19.8 Law20.340/73, whichprovidessalary enhancements to stimulate
scientific,
technical,
Corporal 22.2 33.4 4.4 19.4 20.6 andsupervisory functions.
Volunteer1 22.7 34.1 2.3 19.8 21.1 b. Prorityprogram,exclusivededication, investment
dedication,
regionaladjustment.
Gendarme 22.2 33.3 4.5 19.4 20.5 c. Timeinposition,seniority.
d. Undesirableassignments,eradication, Funci6nSCD.cashshortages.
Source:
Word Bank
data. Source:
WorldBankdata.