Will be deliberated in the coming sessions while RCSC defends their stand
The National Assembly (NA) has rejected the Royal Civil Service Commission’s (RCSC) report defending the Managing for Excellence (MaX) System, a performance management framework introduced to drive accountability and efficiency within the civil service. During deliberations on November 28, 2024, only 18 of the 46 members present supported the Action Taken Report (ATR) presented by Prime Minister (PM) Dasho Tshering Tobgay, signaling dissatisfaction with the system’s implementation.
Presenting the ATR, the PM emphasized the government’s commitment to improving the civil service’s performance management system. He acknowledged concerns raised by the Good Governance Committee about the system’s role in high attrition rates and assured the House of ongoing consultations with the RCSC. The PM, however, noted that as an independent constitutional body, the RCSC retains authority over civil service reforms, with NA resolutions serving only as recommendations.
Criticism of Forced Rankings
Members of Parliament (MPs) expressed particular concern over the “forced ranking” aspect of the MaX System, which mandates a quota for employees to be categorized as “needs improvement” or “partially meeting expectations (PME).” Critics argued that this practice has delayed promotions, increased attrition rates, and fostered workplace conflicts.
MPs stressed the importance of human values and a supportive work environment, arguing that such rankings undermine morale and productivity. The Good Governance Committee Chairperson, Lhakpa Tshering Tamang clarified that the NA’s motion sought to remove the forced ranking component, not the entire MaX System.
RCSC’s Defense of the MaX System
In its report, the RCSC defended the MaX System, asserting that it aligns individual performance with organizational objectives, differentiates performance levels, and enables targeted interventions. The Commission dismissed claims that 89% of civil service resignations were linked to the system, citing a lack of empirical evidence.
An exit survey conducted among 113 of 286 resigning civil servants from July to August 2024 revealed diverse reasons for attrition. Approximately 25.66% cited family or personal reasons, 16.81% resigned for further education or superannuation, and only 6.19% left due to job dissatisfaction. The Commission argued that the system’s moderation process had not been conclusively linked to resignation trends.
Additionally, the RCSC noted that resistance to the MaX System was more prevalent among senior civil servants than younger recruits. However, the report acknowledged challenges such as unclear target-setting by managers, inadequate coaching, and dissatisfaction with forced PME quotas. The Commission recommended systematic solutions, including better communication and mentoring, to address these issues.
Current Attrition Trends
The civil service currently comprises 30,128 individuals, with a civil servant-to-population ratio of 1:26. The education sector accounts for 35% of the workforce, followed by 14% in health. The overall attrition rate has decreased to 4.7% in 2024, down from 8.62% in 2022 and 16.33% in 2023. The education sector has an attrition rate of 5.17%, while the legal, ICT, and finance sectors record higher rates at 7–8%.
Future Steps
The PM emphasized the potential benefits of refining the MaX System rather than discarding it entirely, advocating for alignment with global best practices. The RCSC also defended performance management systems as essential for driving accountability and innovation in both public and private sectors.
As the debate continues, the NA has called for modifications to address concerns while preserving the system’s core objectives. The next parliamentary session will likely revisit the issue to determine a way forward that balances performance management with employee satisfaction and retention.
While the report was not accepted, the NA remains open to further discussions in the next session as per Section 103 of the Rules of Procedure of the National Assembly, 2022. This provision allows unresolved resolutions to carry over to subsequent sessions unless the parliament’s tenure ends.
Sherab Dorji from Thimphu
