8.1 Overview
8.2 Management of Human Resources
8.3 Financial Management
8.4 Administrative Services
8.5 Operations
8.6 Computer Services
8.7 Overall Assessment
The structure for administration and operations has changed significantly in the top positions since the last Review, but not markedly immediately below those levels. Previously, Budget and Accounts, Personnel, and Administration reported directly to the DG. Buildings and Properties, and the Computer Centre reported to Administration. As IRRI is now structured (see organization chart, Figure 2.2) a position of DDG for Finance and Administration has been added with separate divisions for Finance, Administration, and Operations reporting to that DDG. Personnel (now called Human Resources Development) is shown as also reporting to the DDG, and the Computer Centre has been moved to the DDG for International Programmes.
In addition to reviewing documents, and meeting with staff and the external auditors, the Panel members held group interviews with NRS members of the Council of IRRI Employees and Management (CIEM), and with the spouses of Internationally Recruited Staff, to gain insight into issues of concern to them.
8.2.1 Internationally Recruited Staff
8.2.2 Nationally Recruited Staff
8.2.3 Assessment
Since the previous review IRRI has achieved significant reductions in personnel, primarily as a result of a 27 percent decrease in the core nationally recruited staff (NRS). As of July 1992, IRRI had 2,195 full-time equivalent positions (78 IRS, 15 visiting scientists, 44 postdoctoral fellows, 1,616 core NRS, 221 project NRS and 221 emergency); 91 of these were for internationally recruited positions although only 81 are filled. Table 8.1 indicates statistics on the number of 'position years' that were actually filled in each year. Because of position freezes and delays in filling positions, actual headcounts at any point in time are higher than the number of position years filled.
Internationally recruited staff (IRS) positions that were filled between 1987 and 1991 have risen by eight percent with the increase being in complementary (special project) funded positions. All but one of the overall increases were in research positions. Approved (as distinct from filled) core IRS positions remained at about 73 until 1990 when IRRI began implementing its Medium Term Plan, at which time the number increased to 78. In 1991, only 61 of the 78 (78 percent) were filled because of staff vacancies and shortages in core funds. Both core and special project positions have actually been filled as funds have become available.
Table 8.1. IRS and NRS Positions From 1987-1992.
|
Internationally Recruited Staff |
NUMBER OF 'POSITION YEARS' FILLED | ||||||
|
|
1987 |
1988 |
1989 |
1990 |
1991 |
1992* | |
|
Core |
62 |
67 |
60 |
67 |
61 |
60 | |
|
Complementary |
10 |
7 |
10 |
12 |
16 |
18 | |
|
Total IRS |
72 |
74 |
70 |
79 |
77 |
78 | |
|
Visiting Scientists |
11 |
23 |
20 |
17 |
19 |
15 | |
|
Postdoctoral Fellows |
n.a. |
n.a. |
49 |
45 |
45 |
44 | |
|
Nationally Recruited Staff |
|
|
|
|
|
** | |
|
Core |
|
|
|
|
|
| |
|
|
Managers/Sr. Asst. Scientists |
10 |
17 |
17 |
22 |
30 |
29 |
|
|
Asst. Managers/Supervisors |
605 |
612 |
505 |
453 |
472 |
473 |
|
|
Support Staff |
1,595 |
1,610 |
1,308 |
1,206 |
1,188 |
1,114 |
|
Sub-total |
2,210 |
2,239 |
1,830 |
1,681 |
1,690 |
1,616 | |
|
Project |
243 |
274 |
249 |
256 |
267 |
221 | |
|
Emergency |
295 |
264 |
205 |
213 |
204 |
221 | |
|
Total NRS |
2,748 |
2,777 |
2,284 |
2,150 |
2,161 |
2,058 | |
* 1992 is projected 'position years' that will be filled to year end.
** Actual NRS positions as of July 1992.
The human resources function at IRRI for IRS and NRS is handled separately. The Director for Administration deals with IRS personnel matters directly, while the personnel function for most NRS is the responsibility of Human Resources Development, a unit which operationally reports to the Director for Administration although it shows on the organization chart as reporting directly to the DDG for Finance and Administration. Personnel policies for NRS in IRRI's country programmes are developed and implemented by the country team leaders. In the next section we focus primarily on personnel policy and system matters related to the internationally recruited staff. Section 8.2.3 covers nationally recruited staff.
As of June 1992 IRRI had 81 internationally recruited staff, 61 at Los Baños and 20 elsewhere. Women comprised 11 percent. No one nationality dominated the top administration positions. Internationally recruited staff are of 20 nationalities; groupings by country or region of nationality are:
Table 8.2. Nationality of IRS
|
|
Male |
Female |
Total |
|
U.S.A. |
14 |
6 |
20 |
|
India |
12 |
- |
12 |
|
Philippines |
11 |
2 |
13 |
|
Other Asian Countries* |
14 |
1 |
15 |
|
E.C.** |
10 |
- |
10 |
|
Australia |
7 |
- |
7 |
|
Other*** |
4 |
- |
4 |
* Includes Japan 3, Malaysia 3, Thailand 3, Bangladesh 2, China, Korea, Sri Lanka, Vietnam.
** Includes U.K. 4, Netherlands 3, Germany 2, Switzerland.
*** Includes Dominican Republic, Lebanon, New Zealand, Peru.
Core IRS turnover fluctuated between 4 and 11 percent per year between 1987 and 1990, but was 27 percent in 1991. This large increase reflects the culmination of both programmatic and personnel policy changes at IRRI. Because of programmatic changes, positions were phased out for staff whose scientific talents did not match the changed requirements. In 1992 the turnover is projected to be about nine percent. IRS appointments are for fixed terms, usually from 2 to 5 years, and renewals beyond 10 years are reported to the Board. The practice of extending appointments is quite common; as of September 1992, 24 of IRRI's IRS have been at IRRI 10 years or more. At the same time, IRRI has a relatively new cadre of international staff. The median tenure of an IRS in 1992 was 4 years. IRRI commits to provide at least 6 months notice when it does not intend to renew an appointment. The expectation of permanent tenure is no longer encouraged. No present IRS in Administration were in their positions at the time of the last Review.
Scientists are now working on interdisciplinary approaches and know that they may not be with IRRI for an indefinite period of time. In discussions with staff, some concern was expressed about the distraction of needing to keep in mind other opportunities in the event that contracts were not renewed, and the possible difficulty in the future of moving from an interdisciplinary-based organization to institutions that stress disciplinary research. At the same time, IRRI has been successful in recruiting scientists from tenured positions despite this potential uncertainty. It would be helpful if the Institute could find additional ways of reassuring productive, quality scientists so that their energies are not dissipated needlessly over tenure concerns.
A Performance Appraisal Review system has been established and is central in the development process for staff. The procedure calls for a self-assessment by the IRS including: the preceding year's accomplishments, how those accomplishments match the objectives that had been set individually and collectively for assigned tasks, and the individual's objectives and plans for the year ahead. Principal reviewers, typically Programme Leaders, Division/Centre Heads, Directors and DDGs, evaluate the person's contributions and achievements in the implementation of programmes and projects. The respective DDG makes narrative comments and the IRRI Steering Committee arrives at an overall rating. An important step in the process requires that the DG or appropriate DDG meet with each individual to discuss the review, and to confirm plans and objectives for the coming year. These discussions provide feedback on future plans, programme assignments, and appointment renewal. In the past two years there has been slippage in the process, in part due to the recent arrival of the DDG for Research, and some IRS did not benefit from meetings with the appropriate superior, as specified in the procedures. The Panel believes that this step is crucial to effective functioning of IRRI's personnel system and urges that it not be neglected in the future.
Selection processes for new IRS staff are now similar to those used in academic institutions. Recruitment is based on approved job descriptions, and is generally conducted by search committees. The chair of the search committee presents the committee's views to the DG who makes the final choice. In part, the success of the process is dependent on the quality of the job description so that the committee has a clear basis for achieving consensus. Success also depends on vigorous use of widespread recruitment processes in addition to advertising such positions. Accurate and unbiased reporting of the search committee's views is also important, which is usually best achieved by preparing a written report for all committee members to sign. While supporting the virtues including the transparency of a formal search process, the Panel urges that in its application, IRRI ensure that the brilliant but sometimes idiosyncratic candidate is not lost in the process. And it needs to ensure a significant involvement of Division Heads to maintain continued disciplinary excellence. IRRI's salaries appear to be competitive with those paid by academic institutions, as evidenced by the number of applications currently being received for advertised IRS positions.
The matrix management approach to research, discussed in more detail in Chapter 4, required management training for the research scientists. Several Division Heads mentioned that, in addition, the training had a positive spillover effect on their own management styles.
Since 1987 special project funded staff has increased from 10 (14 percent) to a planned 18 (23 percent) of all planned IRS positions in 1992. Nearly all of this growth has occurred in the past two years. There is some concern about the consequences of shifting the balance between core and special project positions. Special project (complementary) staff tend not to share the same institutional burdens as those on core budgeted posts. Their appointments are necessarily for short terms and one gets the impression that under these conditions IRRI may have difficulty recruiting as high a calibre of scientists for these posts as for core-funded positions. Four core positions have been frozen and eight slowed down in the recruiting process in 1992, again as a result of funding shortages.
At the time of the 1987 Review IRRI employed a total of 2210 core nationally recruited staff. As IRRI refocused its strategy, the merger of departments into divisions made many positions obsolete. In order to streamline staffing, an innovative special separation programme (SSP) was developed to encourage staff, whose skills IRRI could forgo, to terminate voluntarily their employment. Of the 699 people who applied for the SSP, a total of 416 had left as a result of the programme by the end of 1989. Because of IRRI management's thorough and humane planning, the programme was well received and successful in reducing a large number of positions. No legal cases resulted from the SSP. In addition to the SSP, certain positions were unfilled or abolished in 1989 and 1990. As a result, by July 1992 the core NRS had dropped to 1616, a 27 percent reduction.
In 1989, a job evaluation study was conducted for IRRI by Price Waterhouse. As a result, job classifications were changed from a person- to position-based structure and these were compressed which led to some staff morale problems. Further, recent salary increases have not met the expectations of the NRS, particularly given the current inflation rates. Moreover, many of the NRS who had applied for the SSP but were not offered it, perceived a promise of a better financial future for staying but later felt that this financial promise was unfulfilled. A more rigorous performance evaluation and reward system has been used, adding to NRS concerns.
For budgetary reasons many vacant core positions are being filled internally, providing promotion or development opportunities for existing NRS. However, these internal promotions may come at a cost of limiting the infusion of new required skills into the system and increased job training for employees moving into new areas of responsibility. Some skills can only be recruited from the Manila labour market; IRRI may be decreasing its ability to compete effectively in that market because of uncompetitive salaries.
A Senior Assistant Scientist position, equivalent in rank and stature to the manager of an administrative unit, has been created to provide recognition and an additional step in IRRI's career ladder for qualified NRS researchers; seven Senior Assistant Scientists were appointed in 1992.
Proper management of human resource development (HRD), the function relating to personnel; is critical to IRRI's performance. For reasons that are not fully clear to us, the Institute has found it difficult to attract and retain a head of HRD. Four different people have held the post since 1987. We observed: (a) that at present, HRD management responsibilities at IRRI are scattered among the Director of Administration, the DDG for Finance and Administration, and the HRD Manager, and (b) that in practice the interim HRD Manager is currently reporting to the Director for Administration on some matters, not to the DDG for Finance and Administration as specified in IRRI's organization chart. We believe that the HRD Manager's effectiveness and job satisfaction could be improved by removing these ambiguities and clearly establishing the authority of the post.
Recommendation 8.1
The Panel recommends that in reality the Human Resources Development Manager report directly to the DDG for Finance and Administration and that human resource management responsibilities be consolidated.
At a later stage, when realignments become possible in IRRI's administration and operations functions, the Panel believes the human resource management functions should be combined for both IRS and NRS, and headed by an internationally recruited staff person.
The challenges of human resource management can be expected to increase in IRRI's foreseeable future. We commend IRRI for the creative solutions it is bringing to bear in this area. Continuing attention to the motivation and stimulation of IRRI's excellent national staff is of critical importance. At some point it may become expedient to have even fewer staff to help make certain that those high quality NRS employed can be compensated at fully competitive levels.
IRRI has in place good personnel policies and procedures, clearly written, and readily available to staff. Management is actively pursuing creative and carefully considered responses for dealing with a challenging human resource environment under financially constraining circumstances. For example, we are pleased to note that staff development is receiving increased attention. The Panel encourages HRD to consider how training can be related systematically to career paths for NRS, where appropriate.
For the IRS in research, a combination of demands resulting from the matrix management approach, the increased decentralization of research to off-campus sites, necessary reporting requirements from the CGIAR System, increased requirements for interacting with donors and potential donors, and pressure to prepare special project proposals, is detracting significantly from quality time for research. Regular attention is needed to identify ways of reducing this burden cost. Further, career counselling and development for IRS who are likely to be moving on to environments where interdisciplinary research is less valued than at IRRI needs to be incorporated into the appraisal process.
While the Panel is sympathetic to the constraints imposed by Philippine employment laws, and management's intention of reducing the number of NRS core positions, IRRI's capabilities must not be jeopardized by the present management directive to fill NRS core positions from within the existing core staff pool. IRRI is fortunate in having such a high quality NRS support staff, especially so on the research side, and must be vigilant to maintain a competitive salary structure for them, even at the expense of reducing the number of positions further. The practice of monitoring market salaries needs to be continued, especially in these inflationary times. For certain skilled positions, IRRI has no alternative but to continue to compete with the Manila market.
8.3.1 IRRI's Financial Performance
8.3.2 Organization and Staffing
8.3.3 Financial Planning, Budgeting and Control
8.3.4 Auditing
8.3.5 Assessment
The previous EMR called for reforming the organization and staffing of the Accounting Department; placing high priority on computerization and the formalization of financial system and procedures; and studying the implications of IRRI's heavy dependence on restricted funding on future programme flexibility. The first two concerns have been addressed most effectively by IRRI, but the need for special project funding continues to be a challenge given the economic and political issues affecting the CGIAR System generally. IRRI's management is responding constructively to its shrinking income.
Between 1987 and 1991 IRRI's total funding (Table 8.3) grew in nominal terms from US$34.9 to US$40.0 million. In constant 1992 dollars, however, IRRI actually experienced a decline in total funding of 8.9 percent during this time period. The following discussion focuses on the audited numbers for 1987 to 1991; 1992 projected figures are provided to indicate likely trends.
Table 8.3. Sources and Applications of IRRI Funds (US$ in 000s).
|
|
1987 |
1988 |
1989 |
1990 |
1991 |
1992* |
||
|
SOURCES: |
||||||||
|
|
Unrestricted |
Core |
8,367 |
9,339 |
16,723 |
18,241 |
18,659 |
23,950 |
|
|
|
Self-generated** |
1,269 |
1,764 |
2,399 |
1,270 |
1,731 |
1,300 |
|
|
Restricted |
Core |
16,381 |
16,725 |
9,500 |
11,008 |
11,289 |
4,358 |
|
|
|
Complementary |
8,845 |
10,953 |
6,721 |
9,123 |
8,293 |
15,342 |
|
TOTAL SOURCES |
34,862 |
38,781 |
35,343 |
39,642 |
39,972 |
44,950 |
||
|
APPLICATIONS: |
||||||||
|
|
Core - programmes: restricted and unrestricted |
24,769 |
26,722 |
27,271 |
27,024 |
29,098 |
29,432 |
|
|
|
Core - capital |
1,215 |
1,070 |
1,450 |
3,495 |
3,963 |
826 |
|
|
|
Complementary Programmes |
5,089 |
5,564 |
7,547 |
6,540 |
6,998 |
7,771 |
|
|
|
Complementary Capital |
- |
- |
- |
2,583 |
1,296 |
7,571 |
|
|
TOTAL APPLICATIONS |
31,073 |
33,356 |
36,268 |
39,642 |
41,355 |
45,600 |
||
|
UNEXPENDED BALANCES |
3,789 |
5,425 |
(925) |
- |
(1,383) |
650 |
||
* Projected for 1992
** Includes interest on short-term deposits and savings
Considering sources of funds, total core funds (both restricted and unrestricted) as a percentage of total funds, increased from 75 percent to 79 percent between 1987 and 1991. They declined as a percentage in 1992 because of the effect of the one time contribution of US$6.5 million in 1992 for the building programme. Unrestricted core funds have increased from 28 percent of total funds in 1987 to 51 percent in 1991, largely as a result of a reclassification of some contributions into the unrestricted category. This is still less than the average of 69 percent for all 13 CGIAR Centres in 1991. In 1992, the Japanese contribution of US$6.6 million was reclassified from the restricted to the unrestricted category so unrestricted core funds for 1992 are expected to be about 55 percent. Complementary funds (sources) have declined in both actual dollar amounts and as a percentage of total funds received between 1987 and 1991. These funds represent a significant contribution to IRRI's programmes. To cope with shrinking resources IRRI is actively seeking complementary funding while recognizing the restrictive and short-term nature of that source.
Currently IRRI has 26 donors compared with 25 in 1987 and the mix of donors has remained almost unchanged. The top ten donors accounted for 85 percent of core contributions in 1991; the top three continue to provide over 50 percent of these funds, a pattern unchanged since 1987.
Total applications (uses of funds) have increased from US$31.1 million in 1987 to US$41.4 in 1991, a compounded average growth of 7.5 percent per year. The most striking change has been the increase in core and complementary capital projects which reflects the Institute's commitment to renovating IRRI's physical infrastructure. These funds reflect a significant contribution of DM10 million (US$ 6.5 million) from the German government for this purpose. Funds applied to complementary programmes have increased significantly since 1987, from US$5.1 million to US$7.0 (a net increase of 38 percent) in 1991 and are projected to increase to US$7.8 million in 1992. Core operations had a negative balance of US$1.4 million due to the introduction of depreciation accounting in 1991.
In January 1990, IRRI research was reorganized from a disciplinary to a programme basis. Comparisons on the use of funds cannot be made because of these two different structures. From analyzing 1990 and 1991 actual operation expenses, and 1992 projected expenses, and comparing them with data from the last review, it is apparent that IRRI's administration and operations expenses (adding back cost recovery of indirect costs and excluding depreciation) have remained approximately the same since the time of the last review (Table 8.4). An indirect cost study calculated that IRRI's indirect costs are 28 percent for off-campus projects and 42 percent of direct costs for on-campus ones. IRRI is not always able to recover the full indirect cost of complementary projects, perceiving that donors are not willing to pay the actual rate. Since 1990 IRRI has begun raising its indirect cost rate on new projects. However, the end result still remains that unrestricted core donors are implicitly contributing to the funding of some complementary projects, particularly for those carried out on-campus.
Specific attention has been given to capital expenditures - upgrading, renovating, and replacing old facilities and equipment. An extensive master space plan has been developed and, during the past four years, major funds accumulated from core (US$3.7 million) and complementary donor funding (US$11.9 million). Six major donors were involved. As a result, IRRI has had a major facelift, enabling it to operate with less disruption.
Table 8.4. IRRI Operational Expenditures, 1990-1992 (US$ in millions).
|
|
1990 |
1991 |
1992* |
|||
|
Actual |
Percent |
Actual |
Percent |
Projected |
Percent |
|
|
Research Programmes |
$14.9 |
55.2 |
$13.6 |
46.7 |
$14.6 |
50.3 |
|
International Programmes |
7.1 |
26.3 |
8.2 |
28.2 |
7.1 |
24.5 |
|
Administration |
3.8 |
14.1 |
3.9 |
13.4 |
4.4 |
15.2 |
|
Recovery from indirect costs** |
(0.8) |
(3) |
(13) |
(4.5) |
(0.7) |
(2.4) |
|
Operations |
2.0 |
7.4 |
2.9 |
10.0 |
1.8 |
6.2 |
|
Depreciation |
- |
- |
1.8 |
6.2 |
1.8 |
6.2 |
|
TOTAL OPERATIONS |
$27.0 |
100% |
$29.1 |
100% |
$29.0 |
100% |
* Projected for 1992
** Numbers in parentheses are subtractions
IRRI's liquidity (current assets/current liabilities), its ability to meet its short-term obligations, is adequate; between 1988 and 1991 the current ratio has fluctuated between 1.44 and 1.61 while the quick ratio (current ratio excluding inventories) was 1.38 at the end of 1991. IRRI has not had to borrow funds (except for the one time Special Separation Programme) which is also a useful indicator of liquidity. Working capital has been equivalent to about 32 days of the operational budget during the time period under review. Cash is invested in fixed deposit and custody accounts with Citibank and Deutsche Bank generating interest at prevailing market rates. Because of low current market rates on US$ deposits the Panel suggests that IRRI consider other risk-free investments.
The present Director for Finance joined IRRI in late 1987, shortly after the previous Review. The Finance Department was restructured under his leadership, with strengthened managerial and supervisory levels. At the same time reductions in staff were achieved. A manual documenting the organization and functional responsibilities of the Finance Department has been written. As a result of the reorganization and successful implementation in 1990 of a computerized financial management system and the adoption of the project management system, most of the financial policies, procedures and systems were revised or rewritten. Each unit within Finance has prepared user manuals, documenting policies and procedures for its area. The new system has supported the Institute's move to project management and the matrix structure. A manager position for (computer) financial systems is housed in the Finance Department.
Attention has been given to staff training to enhance computer skills and to maximize the benefits of the Financial Management System. The Institute experienced some difficulty in filling its key manager positions in Finance, in part because of IRRI's location. In the past IRRI's advantage has been its competitive salaries. This competitiveness must be maintained for both recruiting and retention purposes. IRRI is particularly vulnerable in the accounting area because of strong competition in the Manila market.
Budgeting at IRRI has moved from a top down to a more bottom up approach, which is consistent with the previous review's recommendations. The process follows well defined budget guidelines and approval processes. Project-based budgeting, accounting and reporting systems support the financial planning, monitoring, and control of expenditures. The computerized Financial Management System has enhanced significantly financial control and efficient use of resources.
The budgeting process for each of IRRI's five research programmes is initiated at the project level, where the Project Coordinator, together with the relevant Division Heads, Programme Leaders and the scientists, determines human and financial resource requirements using predetermined budgeting guidelines, planning figures, and forms. International Programmes go through a similar planning and budgeting process that involves staff, and centre or unit heads.
Improved procedures, control mechanisms, and cash management have resulted from restructuring and strengthening Finance staff, internal and external reviews on many aspects of the operations, and rationalizing systems in the course of implementing the Financial Management System package. On a timely monthly basis, financial reports are provided to users by programme, sub-programme and project. Staff time allocations (using salaries and benefits of both scientists and support staff) are costed to projects within programmes. General operating costs are also reflected by project. The new budget, accounting and reporting systems provide the required planning, recording, and feedback on operations. Scientists report a high level of satisfaction with the transparency of their budgets and their understanding of the financial status of their projects.
Since the last Review IRRI has been subject to ten operational reviews, six special audits by donors, two overhead audits, and three efficiency audits, in addition to regular audits stipulated by some donor contracts, and the usual external and internal audits. These audits and reviews reflect well on IRRI's operations; recommendations stemming from audits have generally been implemented promptly.
The internal auditing function has improved further since the last Review. The Internal Audit Office was reorganized in 1990, resulting in the creation of three sections: financial, operations, and electronic data-processing. The total number of auditors increased from six to eight. Also beginning in 1990, the internal auditor began meeting with the DG on a monthly instead of a quarterly basis, and meeting twice a year with the Audit Committee of the Board, in the absence of Management, to discuss accomplishments, work plans, and any items needing to be brought to the Committee's attention. Management has responded in a timely way to internal audit recommendations. On occasions when no qualified staff is available to do specific planned audits, the work is contracted out to external accounting firms or consultants. IRRI's inability to recruit and retain an electronic data processing (EDP) auditor is of some concern to the Panel although we understand that management recognizes the importance of filling this position. The external auditors attribute the difficulty to IRRI's location in Los Baños and the lack of a competitive salary level.
In 1990 the external audit firm was changed to Price Waterhouse from Sycip, Gorres, Velayo (SGV) who had been the auditors since IRRI's inception. The change was made to bring a fresh perspective to IRRI's financial operations. The audit is performed in a timely manner; the auditors believe that management and the Board have been responsive to concerns raised in their management letters. With the CGIAR requirement that all Centres depreciate capital assets, beginning in 1991, IRRI's financial statements are in conformity with generally accepted accounting principles.
Since 1987, IRRI has vastly upgraded its financial structure, procedures and systems. With an integrated computerized Financial Management System in place, the Department has demonstrated its ability to support a transparent, rational budgeting process, monitor expenditures, undertake cost analyses, and provide timely reporting throughout the Institute in ways that are appreciated by administrators and researchers alike. From interviews with staff, our own observation, and meetings with the internal and external auditors, the Panel concludes that IRRI has in place sound financial reporting and control systems. Future challenges will be to adjust IRRI's fixed costs as the Institute's programme adapts to a likely smaller financial base. The Department is well served by its Director who has proven to be a valuable resource to IRRI both in the Institute's current operations and as it plans for its future.
8.4.1 Food and Housing Services
8.4.2 City Office, Communications, Travel, and Central Files
8.4.3 Visitors and Community Services
8.4.4 Materials Management
8.4.5 Security and Safety
The Food and Housing Services (FHS) manages and operates a cafeteria, a snack bar, the Executive Dining Room, the Guesthouse, four dormitories, 55 IRRI-owned staff houses, 35 IRRI-owned apartments, 6 leased houses, a laundry, and the swimming pool. An additional three cafeterias are contracted out and managed by Human Resources Development. FHS is budgeted as a self-sustaining operation. As a consequence of training being moved into national programmes and of trainees and their families choosing to stay off-campus rather than in IRRI facilities, dormitory usage has declined. As a result, the FHS began operating at a deficit in 1991. Short-run steps including increasing prices and reducing costs, are being taken to achieve a break-even position, but in the longer run alternative uses of some of the space for other purposes is being considered by management. Several consultancies have been conducted. FHS and HRD also conducted user surveys of food services to obtain feedback for planning purposes.
The quality of the service provided by the FHS is high. The facilities are attractive and spotless, the meals are varied, tasty and, in the dining rooms, beautifully presented. The staff at all levels exhibits a high degree of professionalism in their work.
These four areas are the responsibility of a single Manager, so are dealt with together in this section. The City Office, located in Makati, handles all of IRRI's errands in Manila. A car travels back and forth between Manila and IRRI once a day, six days a week, transporting items and mail. IRRI maintains a Manila Post Office address to ensure greater postal timeliness and, except for local Los Baños mail, IRRI's outgoing mail is delivered directly to the Manila Post Office. Communications includes the mailroom (sorting incoming mail, delivering and retrieving mail on campus, handling outgoing shipments and taking local mail to the university post office), telephones, telex, fax, and managing the contracted out maintenance for photocopying equipment on campus. Additional direct telephone lines to IRRI have been installed recently to respond to the difficulty of servicing incoming and outgoing calls.
IRRI employs one travel officer who handles staff travel authorizations, but other travel services are contracted out, as a result of a competitive bid, to Thomas Cook which maintains an office at IRRI. Central files serves an archival function for files and personnel records. This unit has recently been given upgraded equipment and is in the process of automating indexes to its records. A microfiche system is being reviewed currently for possible future adoption. Its retention policy and procedures do not appear to be widely communicated in the Institute; and consequently, many older files that could be lodged in single copies there remain duplicated throughout IRRI offices. It appears to be used primarily by the Director levels and up.
Each year IRRI hosts approximately 30,000 visitors, the largest segment being school children. IRRI views these visits as an important public relations activity, reaching not only to students but farmers, agricultural technicians, government officials, donor representatives, ambassadors, and cabinet ministers as well. Existing space is being renovated to create a Visitor's Centre where they can be oriented with informative displays and minimal interruption to IRRI's research workers. The Visitors and Community Services unit also provides effective logistics support for meetings, conferences and workshops held at IRRI.
Materials Management is responsible for sourcing and procuring local and foreign materials, planning material requirements and controlling inventory, and receiving, storing, issuing and disposing of stock items. This unit has experienced substantial problems in performance, of which management is aware. A systems audit was undertaken in 1991 followed by a contract with a consulting firm to streamline the unit's organization, systems and processes. That work is still ongoing. Accomplishments to date include the definition of job functions and job descriptions, the realignment and training of staff, reductions in corruption, inventories and procurement response times, implementation of a materials planning and control system, and providing regular monthly feedback to users on the status of orders.
Continued attention needs to be paid to the interfaces between materials management, finance and research. As the Institute proceeds in its work in this area, the critical importance of timely availability of required research materials to the research process must be a foremost consideration. At the same time, an understanding by the end users of the need for, and a commitment to, materials requirement planning is also important.
IRRI has a history of difficulties with security and theft including loss of valuable items from staff housing and pilfering. At the time of the previous Review a study had just been completed by IRRI's auditors and the Audit Committee of the Board. Security remains a problem.
IRRI's campus is difficult to secure as it is a relatively large piece of property that is not well fenced, traversed by public access roads, and with staff housing scattered in several locations. The IRRI security staff is firmly entrenched (the most recent one hired was in 1979) and formed into cliques and competing factions. Leadership is poor. Opportunities exist for improvement in that the Manager's position is currently vacant and an excellent review has just been completed by Pinkerton Consulting Services. We urge IRRI management to consider and act on the Pinkerton report in a timely fashion.
Recommendation 8.2
The Panel recommends that the Chief Security Officer position be filled by a person from outside of IRRI's present staff and that IRRI increase the proportion of contract security officers among its security staff.
IRRI's recent experience with two major fires served as an important reminder of the continuing importance of adequate safety measures. The Safety operation is responsible for administering the Pesticide Applicator's Safety Programme, conducting safety inspection of laboratories, workshops, and offices, preparing safety reminders, conducting drills and sponsoring clean-up day activities. From visual inspection we conclude that these monitoring activities are being carried out. Recent publications have been prepared on the IRRI Fire/Disaster Control Programme procedures, and revised Guidelines for Authorized Pesticide Applicators.
The Operations Division consists of Physical Plant Services, Transport, and the Central Research Farm. The Central Research Farm is discussed in Chapter 3.
Physical Plant Services has evolved out of the Buildings and Properties (B & P) section, which previously reported to the Director for Administration. Whereas B & P had a work force of 255 core employees, PPS now has 136 people. PPS was placed under the Director for Operations to provide better control and more cost-effective approaches to maintaining and rehabilitating an aging plant. Many IRRI buildings were constructed in the early 1960s, and their condition had deteriorated. Since the last review, a master plan on space allocation was developed which addressed both rehabilitation of existing buildings and the construction of additional facilities. The plan delineated research, administrative support, and public function zones.
Considerable progress has been made in the implementation of the plan. More than US$15 million has been raised for construction and renovation funds, as described in the finance Section 8.3.1. A substantial amount has been completed and more is underway. The urgency of replacing deteriorating electrical systems was underscored by a major fire in Chandler Hall, sections of which have now been rebuilt. Rewiring of older IRRI buildings and installations is an ongoing priority. A more certain supply of electricity for IRRI's essential facilities has been achieved by upgrading the electrical distribution system and power plant. Appropriate containment facilities have been planned and await government approvals for an environmental study before construction can begin. The monitoring and follow-up of scheduled work is facilitated by a computerized work order/maintenance request management system. Evidence of the successful rehabilitation and building programme is all around. Much of the success of the building and rebuilding programme can be attributed in the first instance to the DG's ability to raise the required funds and to the leadership and direction provided by the Director for Operations. In collaboration with UPLB, IRRI is developing and will operate a joint landfill waste disposal system that includes recycling and composting components.
In order to upgrade the quality and quantity of service and to use a smaller staff more efficiently, the Motor Pool and the Motor Vehicle Repair Shop were transferred to the Operations group and merged into the Transport Office. The Motor Vehicle Repair Service handles all related activities, and as a result builds a maintenance record on each vehicle, rationalizing parts purchase and replacement. The Motor Pool Dispatching Section is responsible for scheduling staff and vehicles. It is beginning to automate some of its processes. The Panel suggests that the Section explore the feasibility of using a linear programming package to assist in scheduling assignments. A recent study has recommended that transport costs be charged back to the units making use of its services. Providing these data would assist staff in making decisions on using vehicles and would provide comparative data to evaluate Transport's competitiveness with alternative suppliers.
Organizationally, computer services is within International Programmes. It serves institute-wide needs - in research support, database construction and management, the library, administration, telecommunications, operations, and some aspects of finance (which also has its own Systems unit). Placed structurally within the Information Centre, the unit functions successfully in a relatively autonomous mode, although in somewhat of a management vacuum.
IRRI made the decision to run its financial and administration systems on a separate hardware platform (IBM) while research operates on a Digital VAX. The installation of a gateway between the two systems is planned for 1992. Computing support services at IRRI have shifted from solely centralized mainframe facilities to a decentralized Local Area Network (LAN) accessible through personal computers. The Institute plans to have all major buildings connected by the end of 1992. Other users can connect via modems. The Oracle relational data-base management system is installed on the mainframe and statistical analyses packages are available to staff using personal computers. In almost every area examined in this review, computerized tracking systems have been or are in the process of being developed.
As CGIAR Centres generally move to LANs, the use of software will become an increasingly expensive item. Software is an intellectual property, governed by copyright principles. Some countries, including the Philippines, do not recognize copyright on software. However, as an international organization, IRRI should consider operating within internationally agreed upon standards. A possible solution could be for the CGIAR Centres collectively to obtain licensing on strategic packages to minimize expenses.
A Wide Area Network has been implemented using the microwave transmission facility that was installed in 1989; this is being used to provide a facsimile link to the NARS. A connection to the DATANET packet switched data network allows both outgoing and incoming traffic, including remote access from some NARS sites. As telecommunications technology is emerging IRRI is forced to operate using dual communication systems, one to communicate with universities in developed countries and the other to communicate with the majority of the NARS. A positive trend is the expanding use of INTERNET by universities in developing countries.
The new infrastructure offers IRRI scientists and administrators the potential to manage their own information systems more effectively, and to communicate with each other and the external world more productively through international networks such as BITNET, INTERNET, and CGNET.
We assess the Computer Services unit as performing well at both an operational level and in innovative planning for the future. The Computer Manager functions as an important technological resource for the Institute, maintaining currency in his field, actively identifying user needs and generating cost-effective solutions in hardware, software, applications, telecommunications, and related technologies.
The Panel concurs with the conclusion of the recent Sloan Fellows report that the current organizational positioning of the Computer Services unit does not reflect the central, strategic importance of information systems to the Institute as a whole. While the ability to function semi-autonomously has advantages, these are outweighed by the benefits that would be obtained by being linked into the organization and having access to management direction. In making its recommendation, the Panel considered where the unit could best serve the organization in view of the broad nature of constituencies that the function serves, and its role in future telecommunications and systems planning. The Panel suggests that the Computer Services Unit report directly to the Deputy Director General for Finance and Administration.
IRRI's infrastructure has been reduced in size but strengthened in quality to provide administrative and operational support to the research functions of IRRI. Most marked changes can be seen in the financial and computer systems and the improvement in physical facilities.
Many internal and consultant reviews have been undertaken to improve processes and achieve cost efficiencies. Further steps need to be taken, particularly in purchasing, materials management and security. Management is aware of and responding to the opportunities for improvement.
It is not a truism to say that IRRI's most valuable assets are its human resources. While there is a continuing need to reduce staff redundancies and seek the most efficient and cost-effective way of providing services, at the same time continuing attention must be paid to motivating, developing, and rewarding outstanding staff. It is important that the human resource function at IRRI be clarified, supported, and clearly valued. There is a widespread perception among NRS that IRRI is losing, or has lost, its competitiveness in staff salaries and benefits. To the extent that management can document and publicize its competitiveness, it should do so. The importance of communication with staff cannot be over valued. IRRI management is commended for the efforts it is taking to understand and respond to staff needs. If IRRI becomes unable to be competitive because of a lack of financial resources, it may be forced to cut back some of its work in order to pay a smaller staff competitive salaries.
Considerable management attention is being given to controlling costs. When resources and services are 'free' goods, they tend to be used inefficiently or even wasted. The Panel concurs with recommendations put forward to 'charge back' internal costs in the Institute along with giving staff the option of purchasing the service elsewhere if IRRI cannot perform competitively. When users are aware of costs they are in a position to make informed, responsible decisions. When providers of a service do not have a monopoly they can measure their performance by market demand.
As IRRI's transformation in its strategy, structure, systems, and physical facilities proceeds, and with the likelihood of further decentralization of research as it pursues an ecosystems approach, we can see that a time will come during the next five-year period to reconsider the organizational reporting structure for the top management positions in Finance, Administration, Operations and Human Resource Management (see Sections 7.3 and 8.2.1).
