Report by the Chairman of the Human Resources Committee

Introduction

The Human Resources Committee (HRC) held five meetings in 1997/98. The focus of this Committee's work during the year was the formulation of effective human resource management (HRM) strategies and policies to support the Housing Authority (HA) in fulfilling its role as the territory's key provider of public housing. This Committee has examined a number of HRM initiatives proposed by the Department and endorsed the first HA HRM Plan and the Proposed Manpower Planning Parameters, both covering the five year period from 1997/98 to 2001/02.

Manpower Establishment Of The Department

2.	In the last Five-year Manpower Forecast Exercise, this Committee approved the manpower ceiling for 1997/98 to be 15 129. As at 31 March 1998, there were 15 117 posts in the Department. The discrepancy was attributed to the Department's efforts to contain its staff growth and the deferment of some business programmes. Those posts relating to deferred programmes will be carried forward into the Revised Budget of 1998/99 as appropriate. Compared with the manpower establishment of 15 118 as at 31 March 1997, the Department has achieved zero growth in 1997/98.
3.	A total of 450 new posts were created in 1997/98, a substantial portion of which were for implementing the Authority's new policy initiatives, including the setting up of Home Ownership Scheme (HOS)/Private Sector Participation Scheme (PSPS) secondary market, expanded HOS/PSPS sales programme, implementation of the Tenants Purchase Scheme (TPS), management of new Housing for Senior Citizens projects, strengthening of project management for construction works, acceleration of maintenance and improvement programme, and enhancement of grade management functions.
4.	During the year, a total of 451 posts were deleted mainly due to contracting out of the management of new rental estates, some existing factory estates and HOS courts, closing down of some Temporary Housing Areas and Transit Centres, and re-organisation of Mobile Operations Units.
5.	The budgeted manpower growth for 1998/99 is 59 posts. The proposed new posts are mainly to cater for approved increased activities, in particular the expanded construction and sales programmes of HOS/PSPS projects, the enhanced building and maintenance programmes, the new Housing for Senior Citizens projects, and the management of new public rental housing stock.

Departmental Establishment Committee Machinery

The Departmental Establishment Committee (DEC) is responsible for examining proposals for the creation/deletion of posts and the review of staffing requirement for the Department. In 1997/98, the DEC has examined a total of 89 staffing proposals. On the advice of the DEC, 58 of these proposals were approved by the Department under delegated authority, and the remaining 31 proposals, which exceeded the ceiling of $1.5 million or involved the creation of HA posts, were approved by this Committee.

The Department has decentralized the DEC operation since February 1998. To allow flexibility for the individual Branches to manage their human resources to cope with the operation of their businesses, five mini-DECs, one for each of the four Business Branches and one for the Headquarters offices, have been set up.

Re-Organisation Of The Senior Directorate Structure

As part of the wide-ranging programme of reforms under the Management Enhancement Programme (MEP) and for streamlining operations along business lines, the Department was restructured in April 1997 into four core Business Branches (Development and Construction, Allocation and Marketing, Commercial and Services, and Management Branches) and two Supporting Services Branches (Finance and Accounting, and Corporate Services Branches). Each is headed by an D3 officer who reports to an Executive Board (EB). The EB, comprising the Director of Housing, Deputy Director/Works, Deputy Director/Management, Director Corporate Services and Finance Director, has been set up to map out strategies, formulate policies, set performance targets and monitor subsequent progresses. To support the EB, the former Policy Division headed by Assistant Director/Policy has been reorganised and renamed as Corporate Strategy Unit (CSU). The Assistant Director/Policy has been retitled as Head/CSU after the reorganisation.

Devolution Of Suitable HRM And Administrative Functions From Supporting Services Branches To Business Branches

In order to empower the Business Directors with the authority to discharge duties in their business areas as independently as possible under the reorganised senior directorate structure, suitable HRM and administrative functions were devolved from the Supporting Services Branches to the four Business Branches together with the necessary manpower resources to enable these Branches to achieve their performance objectives laid down in their business plans. To strengthen the executive support in the Business Branches, four Branch Administration Secretariats (BASs) have been set up to provide independent and effective administrative support services to the Business Directors in discharging their resource management responsibilities.

10.

Under the first phase of the decentralisation exercise, the BAS for the Development and Construction Branch was set up on 1 November 1997. The BASs for the three remaining Business Branches were subsequently set up on 23 February 1998.

The First HRM Plan Of HA

11.

HRM and culture is one of the four pillars of the MEP. Under the steer of the HRM Working Group, the Department developed the first HRM Plan (the Plan) for HA which was endorsed by this Committee in July 1997. The Plan sets out the HRM direction, programmes and initiatives of the HA in the next five years (1997/98 to 2001/2002). It aims to help HA to achieve its mission and objectives through systematic design and implementation of HRM programmes. It also provides a focus for all staff on future HRM direction and major HR activities. The 11 driver programmes areas of the Plan are set out in Annex A.

12.

In addition to regular progress reports to this Committee, the Department would review, update and prioritise the programmes under the Plan to take account of impending organisational changes and external challenges. Having regard to the Chief Executive's housing pledge, stepped up housing development programmes, the merger of estate management and maintenance (EM&M) functions, and other departmental issues that have emerged, the Department has identified and this Committee endorsed in February 1998 six programme areas, as shown in Annex B, that would require more focused attention and would be the driver programmes in the next two years (1998/99 to 1999/2000). An updated version of the HRM Plan, using the six driver programmes as the future priority of work, was endorsed by this Committee on 7 May 1998 to provide focus for HRM planning and development for 1998/99 to 1999/2000.

Strengthening Of Grade Management Functions

13.

The main objectives of grade management are to develop the potential of members of the grades, motivate them to give of their best in their performance and identify ways and means to retain those good performers to support the Department's aims and strategies. To strengthen the Department's grade management functions, the Business Directors and the Supporting Services Directors have been designated as the Heads of Grades (HoGs) for officers at Chief Professional level and below while the Director of Housing is personally responsible for staff members in the ranks of Deputy Director, Senior Assistant Director and Assistant Director.

14.

To assist the HoGs in looking after the career and development of grade members, a Grade Management Secretariat (GMS), comprising the Grade Management (Housing) Section and the Grade Management (Works) Section, has been set up in the Administration Division of the Corporate Services Branch since December 1997. The Department's initiative to strengthen the grade management function was well received by staff. The long term strategic plan is to develop the competencies as well as career development for staff to maximize their commitment and motivation to be a professional team which is caring, customer focused and committed, striving for continuous improvement in the provision of services to the public.

Competency Development And Applications

15.

To support the integrated framework for HRM, the Department has launched a series of projects to define core competency profiles for various grades of staff. Core competency profiles have been developed for professional grades in works disciplines. A new performance management and development system which provides clear links of corporate objectives with individual objectives and staff development planning have also been developed and introduced to Directorate staff in April 1998. A 360 degree feedback system for competency-based development of Directorate staff was piloted.

Training And Development

16.

In 1997/98, training reviews for professional grades and the Housing Class were completed. Additional programmes were launched for orientation and induction of staff, management and supervisory development and training of junior grades. A customer service enhancement and training pilot scheme was launched and completed in February 1998 to promote the core values of HA and service improvement to external and internal customers. A series of Teambuilding Workshops to facilitate cross discipline teamwork were also held to support the EM&M merger. To improve manpower supply for the Works Supervisor (Construction) grade, the Works Supervisor Trainee (Construction) Scheme was reviewed in March 1998 with enhancement measures introduced. Training roadmaps and programmes established for staff were published in the annual Training Handbook.

Staff Communication

17.

For a large organisation like the HA, staff communication has to rely on improving corporate information and the communication network. New communication initiatives launched in 1997/98 included the MEP Ambassador Scheme, the Open Forums, the video magazine and various publications like the 'House Talk', the weekly 'Message from Director' and the HRM newsletter. They all proved to be very well received by staff. At the same time, the role of senior management and line managers in direct staff communication has been promoted. In October last year, a strategic review of staff communication was conducted and action plans were endorsed by this Committee for further enhancement of the top-down, bottom-up and lateral communication. Effective staff communication is particularly important in the light of staff's concern in the face of changes on different fronts.

The Way Forward

18.

Strategic HRM planning to align staff with corporate and business direction for culture change will continue to be high on the Department's HR agenda. The focus of HRM development in 1998/99 will be to step up manpower strategy review and planning, leadership and competency development for culture change, strategic training, improving performance management, staff incentives and communication to support the Business Branches in implementing their business targets.

Concluding Remarks

19.

Finally, I would like to take this opportunity to thank Members of the HRC for their unwavering support as well as their most valuable advice during the year, and also to extend my appreciation of the dedication and hard work contributed by staff of the Department. I am confident that, teamed up with my Members, the Committee will be able to continue to contribute positively and effectively to the mission and goals of the Authority.

Annex A

The 11 Driver Programmes of the First HA HRM Plan for 1997/98 to 2001/2002

	Strategic HRM planning
	Culture change
	Leadership development
	Performance management and development
	Core competency development
	Career development and succession planning
	Management and supervisory training and development
	Vocational and general training
	Resourcing and retention
	Staff relations and communication
	Information and support system

Annex B

The Six Driver Programmes of the HA HRM plan for 1998/99 to 1999/2000

	Strategic HRM planning
	Change management and leadership for culture change
	Core competency development
	Performance management
	Strategic training
	Staff communication