DPR 2004-2005
Public Service Commission of Canada

Section I - Overview

President’s Message

In 2004-2005 we have been preparing for the coming into force of the Public Service Modernization Act , passed in November 2003. This Act which incorporates a new Public Service Employment Act (PSEA) is expected to come into full force in December 2005.

Departments and agencies have been preparing themselves to take on their added responsibilities and accountabilities under the new Act; similarly, the PSC, as an organization, continues to restructure and realign its resources to fulfill its enhanced mandate for oversight of the staffing system.

All of the PSC’s strategies and activities are aimed at building a merit-based, non-partisan and representative public service to serve Canadians. Such a public service is able to provide service in both official languages, and is populated by professionals who have been appointed in accordance with the staffing values of fairness, equity of access and transparency.

To support us in achieving that outcome, we have identified three main priorities:

• to fully implement the PSC’s responsibilities under the new PSEA for setting appointment policies and safeguarding the integrity of the appointment process;
• to implement a modernized service vision that incorporates the delivery options best suited to the needs of the public service; and
• to ensure that a modernized governance structure for the Commission (that is, the President and the Commissioners) and organizational structure are in place to support the PSC’s obligations under the new PSEA.

As described in Sections I and II of this report, these priorities have been the focus of our efforts. During the reporting year, the PSC made significant progress on a number of commitments outlined in our 2004-2005 Report on Plans and Priorities. However, we still have work to do in furthering our priorities and fulfilling our obligations under the new PSEA. In this regard, we continue to strengthen our capacity to safeguard the integrity of the appointment system. We will be using audit more intensively and effectively, in order to improve the way we account to Parliament. We also continue to realign our human and financial resources to allow us to focus more strongly on our oversight mandate. For example, on July 26, 2005, we announced that we would be consolidating our current 16 points of service into seven regional locations. The locations were chosen based on where the demand for services is highest, and where most of our clients, federal departments and agencies, are located. This consolidation will allow us to increase the efficiency of our operations, reallocate resources to other needs, and put in place the bilingual recruitment and assessment services required under the new PSEA. More information on the consolidation will be included in next year’s DPR.

We are also making progress on the creation of our new service organization, which will continue to deliver quality resourcing (including executive resourcing) and assessment services to our clients across the country. We continue to make every effort to model good human resources practices, as we transform to the organizational structure that better reflects the PSC’s business lines under the new Act.

Ultimately, we will be working with departments and agencies to take advantage of the flexibilities and opportunities offered by the new PSEA, and to make the modernized system work. We will be working to strengthen our capacity to safeguard the integrity of the appointment system. We look forward to working for Parliament to ensure that Canadians are served by a workforce that responds to their needs effectively and efficiently.

Management Representation Statement

I submit for tabling in Parliament, the 2004-2005 Departmental Performance Report (DPR) for the Public Service Commission (PSC).

This document has been prepared based on the reporting principles contained in the Treasury Board of Canada Secretariat’s Guide for the preparation of 2004-2005 Departmental Performance Reports :

• It adheres to the specific reporting requirements;
• It uses an approved Program Activity Architecture;
• It presents consistent, comprehensive, balanced and accurate information;
• It provides a basis of accountability for the results pursued or achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

Maria Barrados, PhD
President
September 8, 2005

Summary Information and Operating Environment

Mission, Vision and Values - Striving for Excellence

The Public Service Commission (PSC) is dedicated to building a Public Service that strives for excellence. We protect merit, non-partisanship, representativeness and the use of both official languages.

We safeguard the integrity of staffing in the public service and the political impartiality of public servants. We develop policies and guidance for public service managers and hold them accountable for their staffing decisions. We conduct audits and investigations to confirm the effectiveness of the staffing system and to make improvements. As an independent agency, we report our results to Parliament.

We recruit talented Canadians to the Public service, drawn from across the country. We continually renew our recruitment services to meet the needs of a modern and innovative public service.

Values to Guide our Actions

In serving Parliament and Canadians, we are guided by and proudly adhere to the following values:

• Integrity in our actions;
• Fairness in our decisions;
• Respect in our relationships; and
• Transparency in our communication.

Financial and Human Resources

Context: The PSC is Changing

The Public Service Modernization Act (PSMA) received Royal Assent on November 7, 2003. The PSMA is omnibus legislation consisting of a number of Acts. One of these is the new Public Service Employment Act (PSEA). The PSMA is designed to facilitate the hiring of public servants, to promote more collaborative labour-management relations, to focus on learning and training for employees at all levels, and to clarify roles and accountabilities.

Although the new PSEA is not expected to come into full force before December 2005, the passing of the PSMA has already brought with it a number of significant changes for the Public Service Commission (PSC).

The first major change for our organization was the transfer, on April 1, 2004 of Language Training Canada and Training Development Canada to the Canada School of Public Service (CSPS).

On April 1, 2004, a number of the PSC’s other longstanding programs were transferred to the Public Service Human Resources Management Agency of Canada (PSHRMAC). These transferred programs included: the Management Trainee Program (MTP); the Career Assignment Program (CAP); the Accelerated Economist Training Program (AETP); the Accelerated Executive Development Program (AEXDP); the Assistant Deputy Minister Prequalification Process (now discontinued); Interchange Canada; and the Labour Market and Demographic Research units of our Research division. The transfer of those programs has helped the PSC to focus more clearly on its oversight and service delivery roles.

In addition, effective April 1, 2005, the PSC no longer provides services in the areas of harrrassment investigations, mediations and related training, pursuant to Treasury Board’s policy on Prevention and Resolution of Harrassment in the Workplace.

Under the new PSEA, the PSC will remain responsible for ensuring that Canada’s public service is merit-based, non-partisan, representative of the nation’s diverse population, and able to serve citizens in the official language of their choice. The new PSEA emphasizes the PSC’s accountability to Parliament for overseeing the appointment system and for maintaining the impartiality of the public service through a new regime governing the political activities of public servants.

The PSC’s governance system and organizational structure has evolved to support the implementation of the new PSEA. Our governance structure has changed from three full-time Commissioners to one full-time and two part-time Commissioners.

The PSC has reorganized to support its oversight and service delivery roles. An initial organizational structure for the Services Branch (previously named Recruitment and Assessment Services Branch) was approved in September 2004. Our subsequent decision, announced on July 26, 2005, was to consolidate the work of our current 16 points of service into seven regional locations. These locations were chosen based on where the demand for services is the highest and where most of our clients, federal departments and agencies, are located.

The creation of our Services Branch will complement the restructuring we had already done to strengthen our oversight capacity. This oversight mandate is carried out by three branches of the PSC: the Policy Branch (previously named Merit, Policy and Accountability Branch); the Investigations Branch (previously named Recourse Branch); and the new Audit Branch, which was created on April 1, 2004. These branches will focus on issues relevant to the public service as a whole, as well as on the staffing activities of specific departments and agencies. Building up the audit capacity has been a priority in 2004-2005. This was accomplished through staffing, learning and development of an audit methodology, policy and plan.

The PSC remains responsible for operating the priority system. We are taking action to ensure we have the capacity, resources and systems to help departments and agencies deal with priority persons in a fair and transparent manner.

Implementation of the new PSEA and the new approach to service delivery directly affect the PSC’s operations and resources. Finding additional funds through re-allocation was a priority last year. Additionally the PSC reduced its discretionary expenditures by implementing a series of spending controls which have allowed us to reallocate resources to other priority activities. As a result of changes to our mandate and the resulting internal reorganizations lapses have occurred. However, we expect to fully use our budget in the future by enhancing our oversight activities (audit and investigations), building additional capacity in priority administration and making any necessary investments in a redefined Services Branch.

While preparing for the coming into force of the new legislation, the PSC continued to fulfil its responsibilities under the current PSEA. The PSC remains committed to supporting its valued employees throughout the transition to the modernized human resources management regime.

For more information about how we envision our near future, please see our Report on Plans and Priorities for 2005-2006 at: http://www.tbs-sct.gc.ca/est-pre/20052006/PSC-CFP/PSC-CFPr56_e.asp .

For more information about the overall health of the public service staffing system, please see our 2004-2005 Annual Report at: http://www.psc-cfp.gc.ca/

Risks and Challenges

The public service of Canada is in the process of implementing a modernized human resources management system. Transitioning to the new system, while continuing to function under the existing system in the short term, will require a concerted effort on the part of all stakeholders.

The PSC is responsible for independently assuring the integrity of the staffing system under both the current and new PSEA. Our activities need to reinforce this independence, which has been called into question during consideration of the Public Servants Disclosure Protection Act . It is a challenge for the PSC to reinforce its uniquely independent status.

The PSC aims to fully delegate responsibility for all staffing and recruitment, including executive staffing, to departments and agencies by December 2005 if they are ready. We also intend to clearly distinguish our recruitment and assessment agency. We are creating a separate recruitment and assessment service organization to be headed by a senior official who will report directly and exclusively to the President. A challenge will be providing the highest quality of service across Canada to respond to client needs by consolidating and modernizing the services of the PSC. Until the new PSEA comes into force expected in December 2005, the service organization will deliver services mandated under the current PSEA, while planning for a smooth transition to its new operation.

A significant challenge under the new PSEA is ensuring that those to whom staffing authorities are delegated are held accountable for the exercise of their authorities. To oversee the integrity of the appointment system, the PSC will monitor and assess departmental performance and provide feedback to deputy heads to ensure they are exercising their authorities in accordance with their Appointment Delegation and Accountability Instrument. We will use our independent and direct reporting relationship to Parliament to keep Canadians and parliamentarians apprised of the state of the staffing system in the Public Service.

Capacity will remain a key risk for the foreseeable future. We are addressing this by working with the Public Service Human Resources Management Agency of Canada (PSHRMAC) and the Canada School of Public Service (CSPS) to build staffing expertise throughout the Public Service.

As a result of the PSC’s activities during the reporting period, we have identified a number of key risks which will require continued attention as we move forward. These key risks are based on an assessment of the PSC’s business environment. They are detailed in Section IV, along with the impacts which could require our intervention, and the strategies we will adopt in response.

Key Partners and Relationships

The PSC worked collaboratively with the following major organizations and stakeholders:

• Parliament , to which we are accountable for the overall integrity of the appointment system, through regular and special reports, including those related to audit findings; appearances before committees; and direct communication with members when required. Additionally, we maintained our capacity to independently interpret and exercise our powers in the best interests of Canadians;
• Deputy heads, managers and human resources specialists , who, together with the PSC, are responsible for creating a modernized human resources management system for the benefit of Canadians. Following extensive formal and informal consultation throughout fiscal year 2004-2005, the PSC provided departments and agencies with support and a range of learning tools during the transition to the new PSEA to ensure effective, streamlined service delivery as part of our overall rollout strategy. We consulted with other government agencies and stakeholders that have responsibilities and interests in the appointment system. These include PSHRMAC, the Public Service Staffing Tribunal, and the CSPS;
• The Employer and bargaining agents , with whom we consult on issues of mutual interest under the new PSEA; and
• Other parties, including :
  • academics and external experts , to develop effective and innovative practices under the Appointment Framework, to strengthen the PSC’s approach to oversight, and to develop a new regime for the political activities of public servants;
  • the Public Service Commission Advisory Council , where we participate in regular meetings with departments and unions to discuss issues and receive advice related to PSC responsibilities under the new PSEA; and
  • the Human Resources Modernization Implementation Deputy Minister and Union-Management Advisory Committee Structure , to discuss issues of common interest.

Supporting the Government’s Priorities

The Government of Canada is putting in place changes that are redefining the government’s relationship with Canadians, and is forging a culture of modern human resources management based on transparency, quality and efficiency.

The PSC is actively involved in this transformation. Its strategic outcome links to the Government of Canada’s priority of Strengthening and Modernizing Public Sector Management, as outlined in the Budget 2005 ( http://www.fin.gc.ca/budget05/booklets/bkmgte.htm ).

The table presented below illustrates how the PSC contributes to this priority under the four initiatives described in the Budget 2005.

Summary of Performance in Relation to PSC Strategic Outcome, Priorities and Commitments

Strategic Outcome

A highly competent, non-partisan and representative public service, able to provide service in both official languages, in which appointments are based on the values of fairness, equity and transparency.

Reporting Basis

This Report has been prepared based on the new PSC’s Program Activity Architecture (PAA) to better reflect the current operating environment. This is in accordance with the Treasury Board Secretariat’s process of implementing the Management Resources and Results Structure. To ensure consistency with the 2004-2005 Report on Plans and Priorities (RPP), which was prepared on the basis of the old structure (Priorities and Business Lines), crosswalks are presented on pages 39 to 41.

New performance measures and related performance at the program activity level have been included to ensure consistent and ongoing monitoring. The 2005-2006 Departmental Performance Report (DPR) will provide a more complete description of our performance at both the program activity and sub-activity levels.

Performance Summary

To achieve the PSC’s Strategic Outcome during the past year, we focussed on the following main priorities:

Priority 1 : The PSC’s responsibilities under the new PSEA for setting appointment policy and safeguarding the integrity of the appointment process are fully implemented.

As an independent agency reporting to Parliament, the PSC is responsible for setting appointment policy and safeguarding the overall integrity of the Public Service appointment process. The PSC’s policies under the new Public Service Employment Act (PSEA) need to be flexible enough to allow departments and agencies to develop their own customized approaches and policies while respecting legislative requirements.

While deputy heads have been delegated many of the PSC’s appointment authorities under the current Act, they will be delegated almost all appointment authorities under the new Act, including all appointments from outside the public service and appointments to executive positions (with the exception of the executive appointments for minister’s staff priorities). Deputy heads and managers will also have to account for the exercise of their delegated authorities.

To help departments and agencies assume their delegated authorities, we have developed an Appointment Framework that integrates appointment policy, delegation and accountability requirements, and provides deputy and agency heads the opportunity to tailor the appointment process to meet their organizational and business needs while respecting legislative requirements.

The Appointment Delegation and Accountability Instrument (ADAI) was developed by the PSC and approved in 2004-2005. It identifies all delegated authorities and any conditions related to the delegation and sub-delegation of these authorities. The ADAI also identifies how deputy heads will be held accountable for delegated authorities.

The PSC has developed a series of mechanisms to hold deputy heads accountable. One such mechanism is the Staffing Management Accountability Framework (SMAF), which sets out our expectations for a well managed appointment system. Other oversight mechanisms, such as monitoring and analysing appointment patterns, audits and remedial measures for unsatisfactory staffing performance, will supplement this new tool.

Strengthening the PSC’s external oversight role requires that we develop an infrastructure and capacity to support a robust audit function. Over this past year we have created an Audit Branch; increased the number of auditors from five to twenty-three; developed audit policies and a audit manual. These policies draw upon the relevant standards and practices for compliance and performance auditing in the public sector, including those of the Canadian Institute of Chartered Accountants (CICA), as well as the standards and practices of other jurisdictions and disciplines. Training on the audit manual was provided to the auditors. We launched eight audits during the fiscal year, and completed two by year-end.

Under the new PSEA, the PSC will have an expanded role in relation to the political activities of public servants. In 2004-2005 we worked to develop a new regime, to be introduced in December 2005, that will balance the right of federal employees to participate in political activities with the need to preserve the impartiality of the public service. The regime will include regulations, policy, guidelines and an investigation process. We will undertake numerous information sessions in 2005-2006 to help departments implement the new regime.

The PSC has adopted a monitoring plan regarding the application of the Public Service Languages Exclusion Approval Order (PSOLEAO). We have also approved a new Framework for Employment Equity Programs as part of an ongoing effort to assist federal departments and agencies in achieving a representative public service. It will serve as a bridge and model for departments in developing their own employment equity programs for staffing under the new PSEA.

In summary, we have fulfilled most of the 2004-2005 RPP commitments related to our first priority. A number of activities are still in progress and will be completed as we implement the new PSEA.

Priority 2 : A modernized service vision is implemented in which delivery options are best suited to the needs of the public service.

The PSC has for many years provided services that support the Employer’s staffing needs, particularly in the areas of executive (EX) resourcing, student and post-secondary graduate recruitment, general recruitment and assessment. With the full delegation of staffing authority to departments and agencies, most of these services will shift from being mandatory to optional. To prepare for this shift, in 2004-2005 the PSC has been working on establishing a service organization. The vision of the service organization is to be the provider of choice for delegated departments and agencies in need of recruitment, executive resourcing and assessment services.

During the past year, the PSC continued to provide recruitment, executive resourcing and assessment services to departments and agencies as they prepare to assume delegated authority for recruitment in December 2005, while at the same time preparing itself for its new role under the PSMA.

We have also continued to administer corporate recruitment programs, to ensure the public service has access to new talent entering the labour market. In the context of general recruitment, we have helped departments identify and recruit experienced professionals to a wide variety of positions across numerous occupations and hierarchical levels. In both of these areas of recruitment activity, the PSC provides the only common point of access for citizens to federal public service jobs via our jobs.gc.ca Web site and Infotel.

The PSC is involved in researching and developing technology to streamline and facilitate the recruitment process. Its prototype for electronic screening has been in operation in two regions since spring 2003. Using the tool to electronically screen on experience factors has resulted in a 77% reduction in the number of applications requiring manual screening.

Under the Public Service Resourcing Modernization project, a short-term strategy is under way that will help enable the gradual implementation of national area of selection (that is, providing access to federal job opportunities to qualified Canadians across Canada). We are examining ways to increase the use of a national area of selection, focussing first on all officer-level positions open to the public in the National Capital Region, to coincide, as much as possible, with the coming into force of the new PSEA. In doing so, we will take into account both the flexibilities allowed under the new legislation and the availability of technological improvements, such as electronic screening tools, to manage the anticipated large volumes of applications.

The Personnel Psychology Centre (PPC) has continued to provide support to departments through the administration of a wide variety of standardized tests, ranging from language tests to assessments that measure leadership potential and readiness. The PPC also provided tailor-made assessment solutions to address departments’ more specific assessment needs.

The PSC’s service organization will continue to modernize its resourcing, assessment and client services programs under its new consolidated regional structure. Additionally, it will standardize service levels to ensure the highest quality of service across Canada and strengthen its capacity to respond to client needs.

In summary, we have fulfilled most of 2004-2005 RPP commitments related to our second priority. A number of activities are still in progress and will be completed as we continue to modernize our resourcing and assessment products and services.

Priority 3 : A modernized governance structure for the Commission and organizational structure for the PSC are in place to support new PSEA obligations.

Our governance structure has changed from three full-time Commissioners to one full-time and two part-time Commissioners appointed for a maximum period of seven years.

PSC By-laws and Operating Principles were renewed to reflect the new legislation and governance framework of the Commission. This framework outlines the principles by which the Commission operates, the way responsibility is shared, the relationship between different parts of the organization, and the processes used to ensure accountability and measure progress towards objectives.

The PSC organizational structure was also realigned to focus more strongly on our oversight mandate, in line with the implementation of the PSC Program Activity Architecture.

In order to build the PSC’s internal capacity to meet our resourcing needs now and in the years to come, and to ensure the sustainability of our workforce, in 2004-2005 we invested in reskilling, training and recruitment. Significant progress has also been made in developing an integrated human resources and business planning process.

In summary, we have fulfilled 2004-2005 RPP commitments related to our third priority.