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of course, but when put explicitly it keeps them continuously aware of what they should be doing.
In essence, it is comprised of four ingredients—planning, implementation, evaluation and compensation. It is a developmental process which connects the four components into a cycle. The cycle begins with the identification of responsibility centres from which detailed plans are generated in clear and rational terms, to be followed by implementation and close monitoring of progress. Evaluation of performance should be based on efficiency rating in accordance with planned tasks, and should form the main basis of remuneration.
This principle is particularly relevant to this Council, whose work is largely labour-intensive and routine in nature. Plans formulated by the responsibility centres can be defined in terms of cost reduction or in terms of increased services offered at given cost. Now we have a sound base for evaluation and validation.
At this point, I shall refrain from going into further details of application, as this will constitute a task of considerable magnitude. Nevertheless, one can visualize the merit of such a system. It demands self-direction and self-control based on motivation and initiative of our staff. When properly motivated, our staff will learn not only to accept responsibility but also to seek responsibility. This will mean a more human organization with room for creativity and development. Given an appropriate evaluational remuneration system, the staff can harmonize individual goals with overall policies laid down by this Council.
Where evaluation of performance is concerned, the Council should be the one to cast the final verdict. After all, since it is the Council that institutes policies for the Urban Services Department to implement them by plans and action, it should also be the Council that evaluates performance. I see no reason why we should not demand individual sections of the Department to specify their objective plans, measure their success and subsequently reward their achievements. In this way, efficiency will be more easily demonstrated and proven, while the public will be more willing to shoulder the burden of increase in expenditure when necessary.
I have said this is the time for this principle to be considered seriously. It is with three reasons I have said so.
Hopefully, by next year, the item "personal emolument" in the Council accounts will be presented in a more informative manner, i.e. salaries would be presented under functional heads. This would help
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the identification of costs incurred towards a particular function of our services and enable our Select Committees to visualize full costs involved in their respective functions. Furthermore, we can make use of this exercise to identify specific responsibility centres. This will be a good opportunity for introducing procedural changes in the direction of my proposed concept of management by objective.
Secondly, the financial freeze which has been menacing us for the past few years is not imminent and hence this is a good time to consider our organization in aggregate. We should aim at the maximization of returns on our expenditure instead of merely minimizing costs.
Thirdly, we have a young and upcoming generation in our labour force. We must not discourage their initiative by using length of service as the main criterion. We must look for a system which positively induces efficiency. I further venture to suggest that the public sector foster friendly emulation with the private sector, as an instrument and a motivation for social, economic and administrative progress of Hong Kong.
Many visitors to Hong Kong have told me what a good lesson on efficiency they have learnt from business here. It is time for our public sector to demonstrate we can do just as well, if not better.
I look forward to the days when the public sector, particularly the Urban Services Department, could proudly demonstrate to our private sector what efficiency we will be able to achieve.
Mr. Chairman, with these words I support the motion.
CHAIRMAN (in English):—Ladies and gentlemen, the Annual Conventional Debate has come to the end of its first part. I would like to thank all Members for the concern which they have expressed in these two days for the advancement of Hong Kong as a whole and the well-being of the people who live here. These remarks and observations made by Members will be studied by the Department where they concern the work of the Department itself. On other matters, they will be referred to the Government for such action as the Government might deem fit. In the circumstances, it is up to the Members themselves to pursue these objectives on their own or perhaps even raise them in the Standing Committee of the Whole Council if they do not fall within the terms of reference of the respective Select Committees.
I know you will want me, in particular, to congratulate Mr. KIM Y. S. CHAM on his maiden speech in this Council. We will also have
Page 112 of 135
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of course, but when put explicitly it keeps them continuously aware of what they should be doing.
In essence, it is comprised of four ingredients-planning, imple- mentation, evaluation and compensation. It is a developmental pro- cess which connects the four components into a cycle. The cycle begins with the identification of responsibility centres from which detailed plans are generated in clear and rational terms, to be followed by implementation and close monitoring of progress. Evaluation of performance should be based on efficiency rating in accordance with planned tasks, and should form the main basis of remuneration.
This principle is particularly relevant to this Council, whose work is largely labour-intensive and routine in nature. Plans formulated by the responsibility centres can be defined in terms of cost reduction or in terms of increased services offered at given cost. Now we have a sound base for evaluation and validation.
At this point, I shall refrain from going into further details of application, as this will constitute a task of considerable magnitude. Nevertheless, one can visualize the merit of such a system. It demands self-direction and self-control based on motivation and initiative of our staff. When properly motivated, our staff will learn not only to accept responsibility but also to seek responsibility. This will mean a more human organization with room for creativity and development. Given an appropriate evaluational remuneration system, the staff can har- monize individual goals with overall policies laid down by this Council.
Where evaluation of performance is concerned, the Council should be the one to cast the final verdict. After all, since it is the Council that institutes policies for the Urban Services Department to implement them by plans and action, it should also be the Council that evaluates performance. I see no reason why we should not demand individual sections of the Department to specify their objective plans, measure their success and subsequently reward their achievements. In this way, efficiency will be more easily demonstrated and proven, while the public will be more willing to shoulder the burden of increase in expenditure when necessary.
I have said this is the time for this principle to be considered seriously. It is with three reasons I have said so.
Hopefully, by next year, the item "personal emolument" in the Council accounts will be presented in a more informative manner, i.e. salaries would be presented under functional heads. This would help
HONG KONG URBAN COUNCIL
Page 112 of 135
189
the identification of costs incurred towards a particular function of our services and enable our Select Committees to visualize full costs involved in their respective functions. Furthermore, we can make use of this exercise to identify specific responsibility centres. This will be a good opportunity for introducing procedural changes in the direction of my proposed concept of management by objective.
Secondly, the financial freeze which has been menacing us for the past few years is not imminent and hence this is a good time to consider our organization in aggregate. We should aim at the maximization of returns on our expenditure instead of merely minimizing costs.
Thirdly, we have a young and upcoming generation in our labour force. We must not discourage their initiative by using length of service as the main criterion. We must look for a system which positively induces efficiency. I further venture to suggest that the public sector foster friendly emulation with the private sector, as an instrument and a motivation for social, economic and administrative progress of Hong Kong.
Many visitors to Hong Kong have told me what a good lesson on efficiency they have learnt from business here. It is time for our public sector to demonstrate we can do just as well, if not better.
I look forward to the days when the public sector, particularly the Urban Services Department, could proudly demonstrate to our private sector what efficiency we will be able to achieve.
Mr. Chairman, with these words I support the motion.
CHAIRMAN (in English):-Ladies and gentlemen, the Annual Con- ventional Debate has come to the end of its first part. I would like to thank all Members for the concern which they have expressed in these two days for the advancement of Hong Kong as a whole and the well-being of the people who live here. These remarks and observa- tions made by Members will be studied by the Department where they concern the work of the Department itself. On other matters, they will be referred to the Government for such action as the Government might deem fit. In the circumstances, it is up to the Members them- selves to pursue these objectives on their own or perhaps even raise them in the Standing Committee of the Whole Council if they do not fall within the terms of reference of the respective Select Committees.
I know you will want me, in particular, to congratulate Mr. KIM Y. S. CHAM on his maiden speech in this Council. We will also have
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Private notes are available after approval.