“CIPM AND YOU” SERIES – NOVEMBER 27, 2024

EVOLVING FROM TRANSACTIONAL TO STRATEGIC HR: THE PUBLIC SECTOR PERSPECTIVE

Overview

Beyond their administrative roles, human resource professionals in the public sector are strategic drivers of national growth. They must lead this transformation—not merely by adapting to change but by shaping how Human Resources (HR) influences policy, fosters innovation, and promotes sustainable development.

For too long, HR in the public sector has been largely transactional, focused on managing payrolls, processing leave applications, and executing hiring decisions as routine procedures. While these functions remain necessary, they are no longer sufficient to address the complexities of today’s workplace. The world has evolved, and so must we. We now operate in an era defined by rapid technological advancement, economic uncertainties, and shifting workforce expectations. To meet these challenges, strategic HR must emerge as the backbone of decision-making, leveraging human capital to achieve institutional goals. The transition from being reactive to proactive, from administrative to transformative, is imperative.

The public sector in Nigeria faces significant challenges, including systemic rigidity that stifles innovation, brain drain as talent migrates in search of better opportunities, and limited digital integration, which undermines efficiency. Addressing these issues requires intentional efforts to rethink policies, equip HR practitioners with modern tools, and transform institutional mindsets within the public sector.

For change to materialise, leadership must take decisive actions and prioritise investments that reflect a genuine commitment to building HR capabilities aligned with national objectives. Strategic HR is the catalyst for change, but that change must begin with us. It is our responsibility to ensure that HR in the public sector is not merely functional but transformational. By embracing the principles of strategic HR and applying them to the unique challenges and opportunities of the public sector, we can reimagine HR as a driver of national development, creating workplaces that are efficient, inspiring, productive, and innovative.

The Structure of Public Service in Nigeria

In Nigeria, public service refers to the civilian bureaucracy responsible for implementing government policies, delivering essential services, and promoting the welfare of citizens. This body forms part of the executive arm of government. While the government is structured into three arms—the executive, judiciary, and legislature—the public sector is further divided into three main tiers:

1. Federal Civil Service: Responsible for implementing Federal Government policies and programmes.
2. State Civil Service: Responsible for implementing State Government policies and programmes.
3. Local Government Service: Responsible for implementing Local Government policies and programmes.

Difference Between Civil Service and Public Service

The public service in Nigeria is tasked with key functions such as policy implementation, service delivery (in healthcare, education, and infrastructure), regulation and enforcement, public administration, and human resource management. The Civil Service, on the other hand, refers to the permanent, professional, and impartial bureaucracy dedicated to implementing government policies and programmes.

The distinction between Civil Service and Public Service can be analysed in terms of focus, scope, and organisational structure:

• Scope: The Civil Service is confined to government administration, whereas the Public Service encompasses a wider range of organisations and activities.
• Focus: The Civil Service emphasises policy implementation and administration, while the Public Service prioritises the delivery of essential services to the public.
• Organisations: The Civil Service primarily refers to government agencies, while the Public Service includes NGOs, private sector entities, and community organisations. Examples of NGOs in the public service space include ActionAid Nigeria, which focuses on poverty alleviation, and Oxfam in Nigeria.

Principles of Public Service

The public service operates based on fundamental principles, ethics, and values that emphasise sound ethical conduct as essential for effective service delivery. These principles define the operational framework of the public service, outlining regulatory guidelines, rights, privileges, and duties of public servants. They also establish clear expectations for behaviour and consequences for misconduct.

A key component is the Public Service Rules (PSR), which govern conditions of service, recruitment, appointments, transfers, promotions, and disciplinary measures. These rules are reviewed every five years to ensure relevance and alignment with current needs.

The guiding principles of the PSR include:

• Accountability: Public servants are responsible for their actions and decisions.
• Transparency: Decisions and actions must be open and clear.
• Integrity: Upholding the highest moral standards and ethical principles.
• Impartiality: Public servants must remain neutral and unbiased in their decisions and actions.
• Respect for the Law: Adherence to the Constitution, laws, and regulations governing the public service.

Characteristics of Public Service

1. Size: The system is large, spanning federal, state, and local levels, with numerous departments and agencies across a wide geographical spread.
2. Bureaucratic Structure: A formal hierarchy with clearly defined procedures, lines of authority, and standardised operations.
3. Specialisation and Division of Labour: Departmentalised roles and responsibilities, fostering expertise and professional categorisation.
4. Merit-Based System: Recruitment is based on qualifications, and promotions are performance-driven.
5. Rule-Oriented: Operations follow written rules, policies, and formal communication channels.
6. Interpersonal Relationships: Governed by standardised procedures, ensuring professional interactions.
7. Public Service Funding: Funded through government resources, operating as a non-profit entity.
8. Public Accountability: Subject to legislative oversight, regular audits, and transparency requirements.
9. Career Service: Offers job security, pension benefits, and career development opportunities.
10. Hierarchical Decision-Making: A top-down approach with multiple levels of approval and a structured reporting system.
11. Record-Keeping: Emphasises documentation, maintaining detailed records and an efficient filing system.
12. Service Orientation: Focuses on public service delivery, prioritising the public interest and social welfare.

Transactional vs. Strategic Human Resources

Transactional HR

Transactional HR focuses on routine, day-to-day administrative tasks that support the operational functions of an organisation. Key responsibilities include:

• Recruitment and compliance with labour laws
• Employee programme development and personnel management
• Payroll processing and grievance resolution
• Ensuring adherence to labour regulations

Strategic HR

Strategic HR takes a proactive, forward-looking approach, positioning HR as a key driver of organisational success. It involves:

• Aligning HR strategies with the organisation’s broader business goals
• Workforce and succession planning
• Employer branding to attract top talent
• Performance management and leadership development
• Innovation in HR processes, integrating technology and talent management

Transitioning to Strategic HR

To evolve from transactional to strategic HR, organisations should focus on:

1. Mindset and Approach: Encourage continuous learning, a growth mindset, and flexibility.
2. Professional Development: Regular skills assessments, industry networking, and cross-functional training.
3. Technology Adoption: Implement user-friendly systems and digital integration.
4. Change Management: Gradual implementation, stakeholder engagement, and training programmes.
5. Leadership Development: Enhance decision-making, communication, and problem-solving skills.
6. Cultural Development: Foster innovation, collaboration, and trust.
7. Performance Management: Set clear goals and drive productivity improvements.

By embracing strategic HR, the public sector can unlock its full potential, drive innovation, and contribute meaningfully to national development.

This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.