Civil Service Pay in Hong Kong: Policies, System, Structure and Reform Harvard Case Solution & Analysis

Civil Service Pay in Hong Kong: Policies, System, Structure and Reform Case Study Analysis

Introduction

In the era of 1980’s, most the citizens of Hong Kong consider a civil servant as fear, greed and avoidance because of the created perception of civil servants inside the people’s mind. But according to the changing time in the year 1997 people of Hong Kong change their perception for the civil servants(Ho, 2002). This change is come with the understanding of government policies and they become more tough for their interest. However, in 21st century in the year 2002, people consider a intellect of ineffectiveness related with the vocation and the civil servants are still consider envy for most of the citizens of Hong Kong. According to the benefits, salaries and outlying consider by civil servants employees are good as compare to the worldwide standards and the private sector publicized the immense lay-offs, reduce benefits for the private sector employees an cut-off in their wages because of the struggling economy. The main concern for the people is to reduce the pay of civil servants and they also consider to improved services that ultimately increase public accountability(Ho, 2002).

Problem Statement

Under the period of economic recession in the overall Hong Kong it creates a high pressure on the government to reduce its budget deficit, to get this reduction the government of Hong Kong need to put elasticity in the pay system of the civil servants. The other challenges are to consider that to create a balance between reducing pay while maintaining it with the civil service morale by looking forward to bring more accountability and high performance.

Analysis of Civil Service Structure Compare to Private Sector

There are two types of different grades are considered under the Hong Kong civil servant services, which consider as generalist grades and the other is departmental grades. The rank position the civil services are revolved in between different departments according to its needs. In the position of high rank three is must be a transferred in 3 to 5 years, like Administrative and Executive officers. By the changing time and the changing conditions of political and economical environment ultimately increase the new coming demands inside the civil services. These changes also change the overall structure of civil services and the main purpose of these services is to create and manage new controlling outlines for the economy.

Comparability and Relativity

Under the comparison and looking over the comparability between the civil servants services the public sectors. In the year 2002, the government start new pay policy for the attraction of employees and make them motivated. This comparison is considered to be very important to cover the broad area of private sector and civil services. In the perspective of the government they did not want to create influence the wages rates in the market and the government main purpose is to present itself as a good proprietor for the civil services by offering them a competitive packages and benefits to hire a high caliber staff. This is the main reason that able the civil servants to enjoy their high or satisfactory pay policies as compare to the private sector employees. Moreover, the Hong Kong present itself as a number one in paying high paid to the civil services(Cheung, 2005). The comparison is simply based on the salary scale, which include the Financial Secretory was earning about ($350,000) a year, which is consider as a 10 times higher pay as compare to the annual salary of Federal Reserve Chairmen. Hong Kong paid ($90,000 to $120,000) per month to the executives and administrative of government while United Kingdom only paid ($40,000) per month to these government employees.

The overall survey present that the civil services are divided into the three bands of salary (upper, middle and lower), which include the changes in the pay and the benefits enjoyed by employees according to its band. To look over the concern of comparability there are various features That create difference among the civil services and the remotesegment. There is also a complained raised by the civil services employees that they are underpaid according to the increase in rewards is (16.56%) but they only got (15%) increment and they also observe that the upper band employees in civil services are earn with the great and high margin. There is a conflicting rise from the private sector that in the period of cyclical down-turn the civil servants are overpaying.

Incentives (Increments or Benefits)

According to the procedure of the civil services most of the employees working in the civil services consider a step by step promotion according to mention hierarchy. Although the quicker promotion is given based on performing good or best. From the side of government, they issued annual increments to the civil servants to attract their loyalty towards them. This system is consider as a presentationbuiltarrangement under the (Civil Service Regulation)that present the increases and incentives are individualsettled to those employees that present reasonable performance. Under the civil services these employees consider a definite increment reward when they reached to the maximum points table according to their band or rank(Asaari, 2019).

In other side the government also ensure to provide the security of occupancy and pensions to their civil servants. These pension schemes are divided into two categories, which include OPS AND NPS (Old Pension Scheme and New Pension Scheme). Both of these schemes consider definite benefits to the civil servants however, in the private sector only (28%) of employees are able to get definite pension schemes in Hong Kong. According to the government views this opportunity cost of definite benefits help them to reduce the corruption rate inside the civil services.

There is common disapproval between the private sector and the civil services system is that the civil servants enjoyed annual increments and according to the view of private sector this type of practice is not consider as fair. These practices present between the public is that civil servants are only rewarded because of their jobs not for their performance. According to the reports in the year 2001, the civil servants spending (78%) is from the base of salaries that is (14%) high as compared to the private sector. There are (60,000) civil servants are permitted for their allowances and in which (40,000) are come from the low class. The government provide four types allowances to their civil employees, which include extra duties allowances, education allowance, colonial-era allowance and special allowances in which government spend ($712 million) in education allowance for the civil servants’ children to study local and international schools.....................

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