OF THE MINISTRY OF
                WARSAW, POLAND
    Prepared by:
    United States Environmental Protection Agency
    April 1991

















      This report contains  considerable information  and recommendations to
improve the operations of the Ministry of Environmental  Protection, Natural
Resources and Forestry.  We urge that they be reviewed carefully by Ministry
officials and managers who know the organizational culture, the realities of the
workplace, and  financial constraints,  and  can work  towards developing a
practical implementation plan. However, we want to offer a sense of the priority
of the recommendations to address the most compelling needs in our view. The
priorities are:
1.    Budget and Finance
      In any organization, under any circumstances, the accounting for funds is
a critical management and fiduciary responsibility.  The  perception,  let alone
actual occurrence, of fraud, waste or abuse of official monies could destroy the
credibility and then the effectiveness of the organization. In light of the increasing
funding of the Ministry, it is critical that implementation of a sound and  secure
accounting system continue. We therefore urge priority attention to this  area.
2.    Information Resources Management
      The  advent of computer-based  technology  offers great potential for
increases in productivity in the Ministry.  Planning the office automation process
(as opposed  to piecemeal implementation) is the most rational, efficient, and
cost-effective approach to the introduction of this technology. Standardization of
hardware and software and common training in this planned approach will enable
the Ministry to avoid many of the costly  mistakes  encountered under  the
patchwork  trial and  error  approach that has  been  associated  with  office
automation in countless organizations.
3.    Human Resources Management
      Acceptance of the principle that "people are our most important asset" is
the foundation for  an effective organization.  Environmental  pollution control
agencies are not capital- or equipment-intensive organizations.  Their largest
operating  costs  are typically salaries.    Internal communications,  employee
development, and modern employee-sensitive personnel systems should work
towards empowering the staff to perform to their potential and set a tone that
management cares  about them as people and not parts of the machinery of



         History & Structure


      The Ministry of Environmental Protection, Natural Resources and Forestry
was created in 1983.  Recent organizational additions in 1985 and 1989 incor-
porated responsibility for Forestry and Natural Resources.

      At the time of  the  review,  the  Ministry  has thirteen  departments with
Directors and Deputy Directors.  Half of the Department Directors have been at
the Ministry less than a year.  The  Ministry, like much of government in Poland,
has recently undergone downsizing and  presently employs approximately 250

      The State Inspector's Office, a separate but related organizational unit,
employs 250 people,  80 of whom are located in ten field offices.   The State
Inspector's Office is housed within the Ministry  and the Chief Inspector is also
one of the seven Vice Ministers who reports directly to the Minister.  The seven
Vice  Ministers are all academicians who  routinely have  additional titles and
functions beyond their work at the Ministry.

      Recent political and philosophical  changes have brought about tremen-
dous shifts in all aspects of the workplace. The country's laws, administrative
systems, policies, and practices are  all  undergoing massive rework.   In the
context of these enormous changes, we  found  that many practices have been
indefinitely suspended to make way for new methods and new information. The
ability to effectively communicate change and overcome resistance to change will
be critical if the  Ministry hopes to engage its entire workforce  in the work of
today and the challenges of tomorrow.

      A copy of the organizational chart  is displayed in Appendix A.
                                    1  -


Budget and Finance


                      BUDGET AND FINANCE


      A brief summary of the national budgeting system in Poland follows.  The
basic structure of the National Budget is set by the Polish State Constitution,
which  also  requires that the  Cabinet  Ministers  submit budget requests to
Parliament and that Parliament approve budgets on a yearly basis. The National
Budget contains the budgets  for each government organization, including not
only the central organizations  but also wojewodships and other self-governing
units.  The Ministry of Finance plays a  key  role in setting annual targets and

      Each ministry prepares an annual budget proposal and submits this to the
Ministry of Finance in August for the upcoming fiscal year  (January - December).
After a series of discussions  and negotiations, and potential appeals by Ministers
to the full  Council  of Ministers, the budget is  submitted to  Parliament on
November 15th each year.  The Parliament is then expected to-analyze, review
and approve the budget prior  to the start of  the year.

      The MOSZNL budget appears in the National Budget as Part 28 and has
many components (i.e.,  National Parks, Regional Water  Management Boards,
State Administration, etc.). The present Ministry budget includes the needs of 57
budgetary units, many of which are pass-through activities. The actual resources
administered by the Ministry are relatively small and not designed to finance
nationwide environmental protection, much of which is financed through industry,
regional  budgets,  wojewodships or the  National  Fund  for  Environmental
Protection. This chapter will  primarily address the resources directly available for
the MOSZNL operation and the processes utilized to develop and execute those
resource  needs.
Observations and Analysis

      Interviews  were conducted  with a varied cross-section of the  Ministry
management and staff, and Ministry policy documents, organizational charts and
functional statements were reviewed. A high level of quality and commitment of
the employees engaged in carrying out the resource management functions was
evident.  In addition, the  open and honest answers to our questions were an
encouraging signal that those  employees interviewed sincerely desire to  help
improve operations and program effectiveness of the Ministry.

      However, the review found that many of the tools or processes necessary
for the Ministry to perform effectively in this area were lacking.  For instance, the
Ministry is making a valid attempt to articulate a National Environmental Strategy.
Due to ever-changing economic and political situations,  it is difficult for them to
address these issues adequately.  In addition, there is a natural tension within
the Ministry as to the overall mission, because part of its mission is protection of
the environment  and part is the development or commercial utilization of natural
resources. Yet, few processes seemed to be in place to ensure that resources
and environmental goals were well-coordinated and that programs and policies
were consistent.

      it was clear that responsibility for the Ministry's central resources were
widely scattered  throughout the various functions.  One unit is responsible for
preparing the Ministry's overall budget proposal; another unit disburses funds;
another handles  foreign fund  accounts; still another is responsible for financial
reports.  Because of this approach it was difficult to get a clear and total picture
of the resources available for  the Ministry's use.

      One of the most striking features we observed was the dynamic nature of
Poland's  laws, and everyone's  expectations  that  new  legislation  would be
approved shortly.  This also seemed to apply,  or could  apply, to various
regulations,  Ministry of Finance guidelines, or  MOSZNL rules and policies.  A
number of staff members mentioned that this might be an appropriate time to
review the possibility of relaxing requirements on reprogramming funds from one
budget category to another, and  delegating the authority for  financial and
procurement decisions.

      Ministry managers and staff also seemed eager to expand  the computer
capacity in  resources management   Systems are being  developed or re-
designed, and plans are  being made to acquire and utilize PCs.  However, we
were unable to find any effort to survey the  information needs of management
outside the finance offices.  Since resource information  is an important tool for
all in  a market-based economy, it would  be useful to  include the information
needs of program managers when resource systems  are  designed.   Some
systems are already mandated by external organizations (World Bank, EEC, etc.),
and there appeared to be little or no link between the systems planning for these
areas and for overall systems. Little, if any, resource and procurement decision
authority was found to have been delegated. With so many critical policy and
strategic program decisions to make, senior executives need not be burdened
with routine administrative decisions. This management style seems inconsistent
with current efforts to decentralize controls.


1.     Environmental goals can be integrated with budget and financial proces-
      ses. For example, it would be possible to:

      a)    Establish  a clear  strategic  vision for  environmental  goals and
            associated economic resources and instruments,

      b)    Articulate annual program goals and coordinate budget requests
            with these goals,
      c)    Consider expanding the internal budget proposal process to include
            detailed briefings on  the proposals  by the various department
            directors to the Minister and a council of departmental  peers, and

      d)    Develop  program  work plans based on  agreed-upon  resource
            allocations and hold department directors accountable for ensuring
            that work plans can be accomplished with the resources provided.
2.     A consolidated resources plan could be developed which would allow:

      a)     Consolidating  responsibility  for  budget   preparation,  financial
            reporting,  etc., in one department, and

      b)     Creating  a  system or  process for  tracking all resources  and
            revenues available to the Ministry, including foreign funds, loans,
            pass-through accounts, etc.
3.     The Ministry should examine resource flexibility in order to:

      a)    Determine added benefits of less restrictive reprogramming controls
            and decide on a method to elicit approval,

      b)    Seek  out other  resource  restrictions  that might be possible  to
            change internally, or request changes from external sources, such
            as the ability to carry over from year to year any unspent resources,

      c)     Review  level  of authority  realistically  needed  for  resource  and
            procurement decisions and consider delegating to the lowest level
4.     It would be helpful to ensure that any computer systems developed meet
      the needs of the clients:

      a)    Where possible, all resource systems are integrated,

      b)    Resource information needs  of program  managers and  senior
            executives can be examined in beginning systems design,

      c)    Consider developing close to  real-time financial data, and

      d)    Ensure consistency or reduce  duplication of work with systems
            designed for external standards.
Next Steps and Estimated Costs

      Many of the recommendations listed above will take a major commitment
of time and resources to implement thoroughly. In many cases, they cannot be
fully implemented without organizational and cultural changes outlined elsewhere
in this report.  However, some can and should be implemented quickly.

      A critical goal that is achievable  in the short term is the development of a
consolidated resource data system.  For the Ministry to properly  plan and
prioritize  its programs it would  be useful for the Minister  and other  senior
executives to have complete and comprehensive  resource information, whether
from the  Central State account, loans  from external sources, National or other
Fund resources, etc.  This system should be able to identify and track these
sources separately but have the capability of displaying all sources, and include
a consistent accounting of expenditures for these sources.

      Ideally, this system would be a fully-integrated data system.  However, the
short-term solution is a PC-based system utilizing either modification of existing
off-the-shelf software or modification of a system already in use or development
within the Ministry.  A modification of  this sort would require a relatively short
period of time,  based mainly on the complexity of the envisioned system.  This
would produce a simple resource tracking system; it would still need to  rely on

external sources for information, and therefore would be totally dependent on
these other sources for the quality and accuracy of the resource data contained
within the system.

      Obviously, designing a more sophisticated integrated data  system would
require a thorough needs analysis, including examining the information needs of
non-finance personnel.

      Another recommendation that could be implemented quickly is to examine
resource flexibility and associated decision delegations. The initial phase could
be  an internal review of existing delegations  and  resource reprogramming
processes.  It could be conducted by  Ministry staff and include employees
outside the finance and administrative areas.  A longer-term study will eventually
need to work with other external organizations {e.g.   Ministry of Finance), but
many improvements can be accomplished with a short-term internal review.  Its
cost would be minimal, consisting only of staff time.


Information Resources



 Observations and Analysis

      At the time of the study, information resources management did not exist
 in the Ministry as a defined function.  Due to resource constraints, it had  not
 been supported since a similar type function was eliminated.  During the period
 that an information manager worked in the Ministry, preliminary steps were taken
 to determine the information requirements of the Ministry's mission, and systems-
 related activities were  also coordinated. The recent Ministry reorganization and
 abolishment of  the information manager position have  placed each  of  the
 departments in  an  independent operational mode for information resources

      A component of the Ministry which has primary responsibility for informa-
 tion resources management is a Programming Center which is located in Plock.
 The Center has a staff of 38 employees who have primarily supported the State
 Inspector's activities.  They also provide support to the Personnel and  Payroll
 areas of the Ministry, and are currently developing a Personnel/ Payroll applica-
 tion system.  Hardware at the Center  includes a twelve-year-old mainframe, a
 minicomputer which is chiefly used for data entry, and two IBM PCs. A request
 for an equipment upgrade was submitted to the Ministry three years  ago,  but
 funds were unavailable.  Although the request is made each year, funding has
 never been allocated.

      The Programming Center follows standard system life cycle development
 procedures, and has also made  proposals to the Ministry  on  integrating
 administrative data.  The Ministry's  Personnel and  Payroll system was being
 developed as an integrated system  flexible  enough to be installed on a local
 area network (LAN). However, because the Ministry does not have a LAN, it will
 be installed on two separate PCs, and integration will be achieved by sharing
.data by changing diskettes.

      When the Ministry had an information  manager, systems-related activities
 were coordinated with the Center through this individual. Since his departure, all
 systems-related activities with the Programming Center have been independently
 handled by the  requesting department.  Staff interviewed at the Programming
 Center indicated that the resulting lack of coordination has negatively impacted
 their projects.

      Departments which  have independently pursued the use of automation
 have  done so through staff initiative  and personal knowledge of hardware and


software.  Rather than following any defined standards or guidelines, those who
make these purchasing decisions base them upon personal preference  or
department-specific requirements.

      Various departments of the Ministry have independently contracted for the
development of application systems.  However, we found no written guidelines
for what should be delivered in an independent computer contract  (such  as
contractual agreements that the Ministry be given the source code and that the
source code become the property of the Ministry, etc.).    _,
      As part of the agreement between the Ministry, the EPA, and the World
Bank, the Ministry will  be receiving an array of computer and  technological
equipment to collect environmental data from various media. We observed no
plans for integrating this data. Likewise, the Ministry is missing a clearly defined
information resources management plan which identifies the current environment,
the desired  environment, and a strategy to enhance the Ministry's information
resource management.

      Most  departments provide introductory PC training to the staff, primarily
only to those individuals who will use the PC.  Due to resource constraints, little
time is available for comprehensive training on the full range of hardware and
software capabilities which  reside in the  Ministry.   Some employees have
assumed the responsibility themselves to learn more, but have done so on their
own time.  The real power and  benefit behind the automated tools cannot be
realized because the investment in training is not made in maximizing their use.

      The World  Bank recently installed a modem on one PC,  which allows
users to dial the World Bank connection in Warsaw, and from there connect via
satellite to the World Bank computer in Washington, DC.  Most of the other
ministries have  been connected to  this network.  "ALL-IN-1" communications
software  has   been installed  on  the same   PC  allowing for  electronic
communications, including file transfer, among the ministries and the World Bank.
This was the only  external telecommunications link discovered at the Ministry.
The World Bank menu system installed on this same PC allows users to access
applications easily.  We saw no other menu systems at the Ministry; instead,
users must access their systems by  using a complex series of commands.

      The team made a side trip to the University of Warsaw and discovered it
is currently negotiating  with the  Ministry of Education and IBM to establish an
information center supported by  an IBM 3090 mainframe, DB2, a  relational
database, and  IBM PCs.  The University of  Warsaw is also Poland's central
computer link to the PLEARN, an international academic research network.

A large number of users at the various academies access this network by dialing
up the University.

      Throughout the interviews the high level of individual technical expertise
and initiative was extremely impressive.  Examples include a sophisticated multi-
user PC-based system  in operation at the Institute for Environmental Protection.
The  programmers at the Computer  Center at Plock  have used the  Clipper
compiler to create programs that adhere to the very best modern standards of
development and design.  In one unit within the  Ministry, staff knowledge of
theories and techniques of computer application and design was evident from
programs  written for use  in the unit.

1.    The  primary  recommendation  relative to all Ministry information is the
      establishment of a centralized information resources management function.
      A staff may not be necessary to perform this function; an individual who
      would  serve  as the information manager would suffice.   This individual
      would coordinate and prioritize the information needs of the departments
      and the Ministry as a whole. Positioning of this function within the Ministry
      is crucial; it seems most advantageous to place it where:

      a)    Communication relative to Ministry priorities  is available,

      b)    Information management is recognized  as a key Ministry initiative,

      c)    Alt departments recognize the function of the manager as essential
            in addressing Ministry objectives.
      Comprehensive  analyses of Ministry activities, objectives and priorities
      could be conducted to provide the information required to establish an
      information management plan.  It is recommended that the analyses
      incorporate the following:

      a)    Mission of the Ministry and each of its departments,

      b)    Requirements as a result of environmental policy,

      c)    Requirements as a result of administrative procedures or policies,

      d)    Cooperative relationships outside the Ministry,

      e)    Information and reporting requirements to support the environmental
            programs, including data integration requirements and geographical
            information system needs, and

      f)     Information and reporting requirements to support non-environmen-
            tal activities.

      Two types of analysis are recommended: a Mission Needs Analysis, and
      a Requirements Analysts.  These can be performed  under contract by a
      private firm  if clear specifications can  be identified.  A Mission Needs
      Analysis would provide a broad  outline of the mission of the Ministry;
      activities in support of the mission; and  relationships with other ministries,
      institutes,  or  organizations.   The  results could be used to identify
      programs, activities, or departments which would undergo a comprehen-
      sive Requirements Analysis.  The Requirements Analysis would identify
      specific functions, processes, and data  relationships  which exist.  Upon
      completion of these analyses, an Alternatives Analysis would identify what
      options would most efficiently support the information environment of the
3.     It is recommended that standards for hardware and software be identified
      and implemented throughout the Ministry. These standards could also be
      followed  by any private firm or organization that designs and develops
      application systems for the Ministry.

      a)    The standards would  minimize a proliferation of hardware and
            software which  may have very little application in the  Ministry.
            Standardization would  also  enhance integration capabilities, and
            minimize complications in enhancements of hardware and software.
            This process would involve selecting standard software packages
            suitable to the Ministry, including a standard menuing system.

      b)    Standards could also include guidelines on what should be included
            in contracts with independent firms. The Ministry's inexperience with
            private enterprise would warrant that firm guidelines be available to
            avoid contracts that are not written clearly or that would  not protect
            their interests.

4.     Establishment of a hardware and software inventory would  make it far
      easier for the Ministry to keep track of its existing hardware and software
      base, assuring that update and upgrade information will be current.
5.     The Ministry should consider a telecommunications plan to address both
      internal  and  external telecommunications.   The internal plan would
      determine the feasibility and costs of implementing local area networks
      (LANs) or multi-user  PC systems in the Ministry, and of upgrading the
      internal telephone system.

      a)    The  configuration of this telecommunications network would be
            determined by a study  of  the  functional requirements  of the
            departments in the  Ministry.   Considerable cost savings and
            efficiency would result from shared computer resources rather than
            purchasing stand-alone systems.  In  addition, using  a network
            would  allow for extensive integration and information  exchange.
            Equipment now in place could be  integrated  into this network,
            which could be expanded as the  needs of the Ministry grew.

      b)    Options may be available to enhance internal telephone communica-
            tions such as intercom systems, special purpose systems, etc. The
            plan would also address the need  to communicate outside the
            Ministry.  Certain technical staff have a need to communicate with
            their peers in  other  countries, and the PLEARN  network could
            provide a communication mechanism.

      c)    The plan  could also establish procedures for using the World Bank
            telecommunications network to provide a means of communicating
            among all the ministries in Poland.
      The Ministry may wish to develop a computer awareness training program
      with several components or levels, such as:

      a)    introduction to PCs and Computing - a basic introductory course
            designed to alleviate computer anxiety,

      b)    Word Processing - an introductory course on the standard word
            processor that would be used by the  Ministry,
                                  - 11 -

      c)     Introductory software courses - on the standard PC software used
            for spreadsheets, databases, graphics, or other standard software
            installed on the PCs, and

      d)     Advanced software courses - on  sophisticated  capabilities and
            techniques of the standard PC software.

      A comprehensive training program would address needs that exist at the
      time of hardware or software installation, and provide an  on-going plan to
      enhance computer expertise at the Ministry. This would maximize the use
      of  the automation  tools as upgrades  are installed and/or new require-
      ments are introduced.
      In addition to training the Ministry staff, a similar type of training program
      is recommended for the staff at the Programming Center.  The Center's
      training program would include courses on  mainframe capabilities and
      software at the introductory and  advanced  levels, as well as PC and
      telecommunications courses.
8.     The Ministry may decide to establish an information resources manage-
      ment plan which would include the following:

      a)    Hardware and software inventory information,

      b)    Priorities determined by  environmental policy and administrative

      c)    Hardware and software standards,

      d)    PC Plan,  addressing the number and configuration of  personal
            computers at the Ministry, and

      e)    Telecommunications  plan, to identify the Ministry's internal and
            external capabilities and requirements.

      The plan would be used to identify and clarify how information resources
      management is addressed  in  the  Ministry.   It would  also include a
      description of the function and role of the information resources  manager
      and the position's relationship with the rest of the Ministry. The plan could
      be modified as information resources management matures in the Ministry.


Next Steps and Estimated Costs

      Some steps which the Ministry can take immediately are the following:

1.    Purchase additional PCs so that each organization in the Ministry has at
      least one PC.  Those organizations which have a large staff and heavier
      workload may require additional hardware.

2.    Decide on  and purchase standard software packages to support basic
      organizational  functions.   Some  of  these functions  and samples of
      available software are:

            . Word Processing (WordPerfect, Chiwriter)
            • Spreadsheet (Lotus 1-2-3, Microsoft Excel, Wingz)
            • Database (DBase3+, Foxbase)
            • Project Management (Project Workbench, Microsoft Project)
            • Menu System (Automaxx, etc.)

      This is not be to be construed as a recommendation of specific software
      packages  or vendors, but simply as an  illustration of software on the
      market (some of which was observed to be in place in locations visited).

3.     Training on the hardware and each of the software packages should be
      provided for Ministry employees who will be users.

4.     The PIU should consider seeking and selecting a-project management
      software package to assist in managing their activities. This would help
      to establish work  plans, identify major activities  within projects, track
      funding, monitor resource utilization, and serve as a reporting tool.

5.     The feasibility of the last recommendation would be relevant to the amount
      of funding available in the short term.  Significant funding would allow the
      Ministry to  move immediately into a  LAN/multi-user environment.  The
      advantages of such a step would be as follows:

            Lower initial  cost per workstation because of the sharing  of large
            fixed disk drives, laser printers, software and communication,

            More users have access to shared resources,

      Lower initial  and future upgrade costs for PC software because
      fewer copies are needed and the cost per copy is reduced,

      Less staff time is required for software maintenance because the
      software is located on one machine, and

      Enhanced sharing of information because files may be kept on one
      machine, and machines may be able to communicate.

The installation  of a LAN requires expertise in  severai areas.  Cabling
problems must be considered.  An initial investment in cabling might be
required. However, this investment would more than pay for itself by the
decrease in costs per workstation, and the options for sharing information
between departments becomes more numerous.  Furthermore, a greater
level  of technical  expertise  is  required  to  keep network  systems
operational. However,  it would still be more efficient to maintain shared
resources accessed by several hundred users than to provide technical
support to  several hundred machines, with a separate version  of the
software currently in use.

       Item                      Number

       Filesetver/monitor              1
       380 meg disk                 1
       Operating system              1
       MAU 1/12 workstations         8
       Workstations/monitors         90
       Network adapter cards        90

       WordPerfect base              1
       WordPerfect nodes           89
       dBASE III +
        15 concurrent users         15
        15 concurrent users         15

Totai Cost



       Item                      Number
Word Processing

Total Cost




Cost for Stand-alone
Cost for LAN
Difference in price
NOTE: These figures include rough cost estimates of equipment available at the time of the
       study. Although prices should not be relied upon for purposes of purchase, they ctearty
       indicate the cost-effectiveness of the LAN approach.
                                      - 15-


Human Resources



Observations and Analysis

      Training Issues

      On-the-job and classroom training are not common at the Ministry. The
Science Department is responsible for the development and delivery of external
environmental training as well as training for Ministry employees. Three full-time
employees are assigned to the training function.  Most of their time is spent
working on ecological education for the schools and the mass media. There was
said to be no time for the development of training  for Ministry employees. The
volume of work was said to be overwhelming, and over 50% of the employees
are women with substantial family responsibilities.   There is  a low  level  of
management support for training during the work day; employees, on the other
hand, have a low level of interest in after-hours training. Employees with degrees
in engineering, science, and law are automatically  held in high esteem, but the
concept of life-long learning for all employees (degreed, non-degreed, all ages)
would be a radical shift from what is presently practiced.

      All of the Directors and  Deputies interviewed  are highly trained in their
technical subject matter with virtually no formal management training. Several of
the Directors have supervised employees for many years but state nevertheless
they have  much to learn about management.

      At the time of the review, five on-site courses in  English  were  being
conducted.  It was our understanding that such on-site sessions are unusual
The courses are attended by a total  of approximately 100 employees and are
scheduled for an hour before the  workday and an  hour during the workday (2-
hour sessions).

      Learning other languages as an alternative to English was also said to be
extremely  beneficial.   The  Ministry is reviewing  the European Community's
Environmental Laws and Standards. As a member  of the European Community,
the Poles want to understand and use existing training programs and regulations.
In addition, direct involvement in Environmental Negotiations will be primarily with
these European neighbors.

      We  also encountered several requests to review many of our laws, regula-
tions, and enforcement  procedures. The Ministry is already using enforcement
examples from Germany, Denmark, and other European countries.

      Interviews  with  members  of the  Economics  Department and other
members of the staff revealed that the training to do cost benefit  analysis was
not a part of the university curricula.  The immediate need for these skills was
said to be critical.

      The need for negotiation skills training was acknowledged by several inter-
viewees.  The new environmental ethic requires members of the Ministry staff to
become proficient in public speaking, briefing skills, persuasive writing, technical
writing,  risk communication, dealing with the media, etc.

      The introduction  of  PCs, fax machines, copy machines, and satellite
phones has already changed the way the Ministry does its work.  Most depart-
ments have one computer with at least one  person who has been formally
trained. In most cases there are multiple users for the machines and complaints
about having to wait in lines to  use them.

      The process  of  selection  is  presently unencumbered,  with very  few
constraining rules but relatively low salaries.  Department Directors said that they
rarely seek recruitment assistance from the Personnel Section.  They seem to
have personal networks through universities or businesses to provide potential
applicants.  The greatest recruitment difficulty was  said to  be the hiring of
attorneys; however, specific skills in  shortage were said to be in the areas of
economics,  environmental  negotiations,  energy, office  automation,  waste
management (hazardous and emergency response),  ethics, conflict of interest,
management skills, human resources development, and organizational develop-
ment.  For the  first time in the  Ministry's  history, managers are hiring inex-
perienced employees right out of the universities. For many  years,  the public
sector salaries were higher than those in other sectors. The Ministry had the
luxury of hiring highly experienced (ten years or more) employees into most of
their positions.  The current salary situation has reversed this dramatically.
      Position Management

      A high number of professional employees said they are occupied with
clerical tasks, such as copying, typing, and addressing envelopes.  Teams of 26


employees with one secretary are not uncommon. The four employees assigned
to the  typing pool often work overtime without compensation.  In addition, a
number of new functional units have been added to the Ministry over the last
three years.
      Performance Reviews

      According to government-wide policy, performance appraisals are to be
conducted every two years.  A copy of a performance review form was made
available by the Deputy Director of the Cabinet Ministry. Interviews with depart-
ment heads revealed  that formal performance reviews had not been conducted
in more than two years, and many Directors were unaware of the requirement to
conduct formal appraisals.

      The awards program in many ways resembled the EPA awards program.
Discretion to make decisions  as to  how  much  money goes  go to  each
department rested with the Minister.   The Minister  gave larger portions of the
award money to high performance departments. Department Directors seem to
have full discretion over who would ultimately receive awards and are rarely, if
ever, overturned.

      A number of employees stated that the Minister had conducted annual
meetings for the  entire  staff,  but  this practice  seems to be temporarily
suspended.   Meetings of the Minister with  all of the management staff (Vice-
Ministers, Directors, Deputy Directors) do not seem to occur and were not, as far
as could be discerned, a past practice.  Some Department Directors conduct
staff meetings and others rely on one-to-one  interactions with the staff, but no
consistent practice was found.

      An internal newsletter did exist but has been discontinued for  at least a
year.  We did not see many employee bulletin boards or message boards.
                                 - 18-


      The mandatory government-wide orientation for new employees continues
to be conducted on-s'rte during working hours. The training extends over several
weeks and is taken seriously. The subject matter deals with generic government-
wide policy and administrative systems.

1.    The Minister, Vice-Ministers, Directors, and Deputy Directors might benefit
      from the study of the practices of model organizations.  In  particular,
      investments in training and career development would be highlighted as
      key building blocks for success.

      A broad  understanding of human  resources development,  such as
      understanding of rotational assignments or short-term work assignments
      might be beneficial.  It would also  be beneficial to have  guest speakers
      from excellent organizations  come to the  Ministry  and meet with the
      managers to share their experiences, and there are a large number  of
      human resources development videos, periodicals, and books that would
      also help to raise the consciousness level.

2.    The Ministry may want to offer on-the-job skill-building training for all of the
      supervisors.  Topics should include: delegating, conducting performance
      appraisals, interviewing,  overcoming  resistance to  change,  etc.   The
      program could be conducted with all of the Ministry managers as a group
      and  designed to assimilate the new ideas and skills over a reasonable
      period of time.

3.    All Ministry employees can be offered the opportunity to enroll in language
      training. Ideally, most would become comfortable with a second language
      within two  years.  Alternatives to traditional classroom training, such as
      training loaded onto PCs would be extremely  efficient, and would allow
      people to progress at their own pace.
                                  - 19-

4.    In providing needed enforcement training, translation of some enforcement
      cases and regulations could be very beneficial.  The State  Inspector's
      Office should be included in this training.  A case study approach could
      be used beginning with  the inspection  and taking the trainees through
      each  of the enforcement stages.

5.    The immediate need for skills improvement in the drafting of legislation
      could be met by  sending professionals to Poland who have both  the
      economic and environmental skills to assist in writing environmental laws
      and policies. In the long term, change will come with the infusion of new
      economic curricula and training at the university level.

6.    The Ministry should establish a focal point for all the technology introduced
      into the workplace. In addition to planning for its effective use, this person
      or group could also  provide on-site  assistance and training.  Training
      could be done in a self-study area where video training or interactive disc
      training could be developed and used by individuals.  Clearly, classroom
      training requires space and devoted PCs and trainers. The technology will
      continue to change, requiring on-going support.  The most efficient use of
      the resources  may  require a  multi-dimensional approach, using both
      classroom and self-study methods. One of the most important aspects of
      PC training is its accessibility and timeliness.

7.    in improving communications skills, it is possible to design a curriculum
      beginning with an assessment of which skills are needed immediately. It
      would be worthwhile to assess the training needs  of the managers and
      employees who have  public contact first, since .they have the greatest
      exposure and influence on the public.

8.    In recruitment planning, the Ministry may find it practical to predict future
      skill needs.  A useful plan would  provide them with the skills and
      professions that are difficult to recruit or presently nonexistent.  In cases
      where the domestic  labor pool does  not provide the needed  skills,
      assignments assignments from other  countries might  be a possible

      A complete work review of each department tied to the technology plans
      for the Ministry  could be conducted to improve the methods of assigning
      work.  Such a review would indicate, for example, how the support staff
      positions could be more effectively utilized and developed. The Minister's
      new goals and the country's new environmental policies will affect the work
      of each individual at  the  Ministry.  These changes may need to be


      incorporated in each individual position description.

9.     Performance  reviews for all  employees  might better be  conducted
      annually, not necessarily  all at the same time.  The Minister could work
      with management team to clearly articulate his goals and to help them
      integrate these goals and directions into their performance management
      system.  It would also be desirable for the new goals and values of the
      Ministry to be  understood and reinforced in the awards  program.

10.   The Minister should consider reinstatement  of an annual all-employee
      meeting. We would recommend that, during this period  of rapid change,
      the Minister conduct these all-employee sessions more frequently  than
      once  a year.  There is clearly a need for the  management staff of the
      Ministry, the State Inspector's Office, and possibly the Institutes  to meet
      on a  routine basis.   Introduction of PCs could provide  a much  needed
      communications network with electronic bulletin boards,  automated
      directories, and electronic mail.

 11.   The orientation program should be redesigned to include  information
      about the Ministry, the State Inspector's Office, and possibly the Institutes.
      At a minimum, the orientation to the Ministry should include an organiza-
      tional  chart with an explanation of the functions and responsibilities in each
      Department.   Presentations  by Department Directors  would make  it
      possible for  employees to  recognize colleagues  and gain different
      perspectives.  Employees could then be made aware  of the Ministry's
      goals and any newly developed policy statements. A walking tour of the
      facility would also help to orient new members of the staff.
Next Steps and Estimated Costs

1.     Create an organizational awareness of the importance of human resour-
      ces development.  Expose management to successful organizations and
      management practices.

2.     Offer an on-the-job skill building training program for all of the supervisors.
      A number of programs exist with costs  for 50 participants varying from
      $20,000 to $40,000, which  includes initial program costs and train-the-
      trainer expenses.

3.     The Ministry could develop its own Training Institute and self-study centers
      modeled after the EPA Regional Institutes and Centers.  This would allow
                                  -21 -

them to deliver cost effective, on-site training using their own employees.
Skill assessment and career development work could initially be done by
staff outside of the Ministry.   Over  time, these  career  development
counseling skills would be available through a training staff. With all of the
technology and policy changes at the Ministry, there is a clear need for
training to become a part of the Ministry's overall strategic plan for the
future.   Many of the employees at the Ministry may need to be retrained,
and new employees who have less experience will also need assistance
beyond what they are used to providing for new employees. To meet the
enormous challenges ahead, training and human resources development
programs will need to become areas of serious long-term investment.

Regular staff meetings should be resumed immediately.  These have the
obvious effect of improving internal communication; they also bring the
benefits of team-building and a renewal of pride in the  Ministry's mission
and accomplishments, while allowing management a cost-free opportunity
to  state  and clarify  goals and  provide employees  a "big-picture"


General Administrative


                    GENERAL ADMINISTRATIVE
Observations and Analysis

      The general administrative support for the Ministry is provided primarily by
the Cabinet of the Ministry and the Administration and Budget Office. Procure-
ment support is also provided by the Program Implementation  Unit in the
expenditures of foreign loans and grant funds.

      The Cabinet Minister functions as the Chief of Staff for the Minister.  All
documents coming into the Ministry are first reviewed in his office to determine
distribution.  Correspondence handled by the Cabinet of the Ministry is logged
and numbered. Correspondence forwarded to other departments in the Ministry
is controlled by that particular department.  Procedures exist for the distribution
and control of correspondence and mail, but they ultimately require approval by
the Minister.   All outgoing mail is also  reviewed  by the Cabinet Minister.  It
appeared that virtually all substantive outgoing correspondence and documents
require the personal signature  of the Minister.   Ail correspondence logs are
manually maintained in the Cabinet of the Ministry and other departments. There
seemed to be a strong desire for an automated correspondence tracking system
for the entire Ministry.

      Other functions of the Cabinet of the Ministry include human resources,
budget,  records management,  organizational  review and  several  external
coordination  responsibilities.  (The human resources  and budget areas are
discussed elsewhere.) Records management and organizational review functions
are devoted the same high  level of management involvement  as noted in the
correspondence function.  Documentation on procedures exists, although major
revisions are underway to reflect the changing structure and situation. It was not
evident whether any analysis was taking place to guide the revision process.  It
was clear that many routine administrative decisions required the approval of a
senior official, if  not the Minister himself.  As everywhere else  in the Ministry,
neither of these functions  has the benefit of PCs to assist in tracking or  word
processing needed to efficiently perform the work.

      The Administration  and Budget Office performs a wide range of support
services  and facilities maintenance functions for the Ministry.  A high level of
quality and commitment of the employees engaged in providing these services
was evident.   Specific areas of responsibility include procurement, mail room,
office supplies and furniture, transportation, accounting and cashier, copying,

typing  pool, and telecommunications.  Substantial efforts have been made to
improve the Ministry building. In addition to exterior and interior painting, there
have been electrical upgrades and security improvements.

      The Administration and Budget Office is planning on upgrading the copier
and telefax capabilities of the Ministry. Various machines have been identified for
procurement over  the  next  year.  The primary criteria appear to be service
availability and price rather than user needs and requirements.

      While we were at the Ministry, three satellite phones were installed as part
of the World Bank Project. These phones are in the Minister's Office, the Foreign
Cooperation Department,  and the Program Implementation Unit.   (The phone
number of the PIU satellite phone is 39120049.) The phone system is otherwise
extremely antiquated and unreliable.

      Additional discussions were  held with support  personnel,  primarily
secretaries, to determine the  effectiveness of the various support services. Most
said they were generally satisfied with the mail, copy, and supply services
although all felt some  improvements were necessary.  Some of their stated
concerns, such  as unavailability and .quality of supplies and outgoing mail
procedures, are generally outside the control of the Ministry.  Others, such as
lack of adequate copiers  or use  of express mail service (i.e., DHL or Federal
Express), are constrained mainly by internal budget considerations.

      As in other  areas  of the  Ministry, the Administration and Budget  Office
keeps primarily manual records.  Some basic automation exists in the account-
ing/cashier functions. There was no evidence of user/client input into equipment
purchases and  most services provided.

      The Cabinet of the Ministry and the Administration and Budget Office will
both need to play a vital role in the modernization of the Ministry. Under normal
circumstances,  this would be an overwhelming task.  However, without  an
integrated strategic plan,  it will  be a never-ending situation  of one  short-term
remedy after another.

1.     A review of Correspondence and Records Systems can be conducted to:

      a)    Determine areas with potential for simplification and standardization,

      b)    Identify opportunities for delegation of authority to the lowest pos-
            sible level, and

      c)    Identify a practical method for developing an integrated Ministry-
            wide correspondence tracking system.

2.    A strategy for  duplication  of documents might  be in order.  Such a
      strategy  would be based  on  a user survey and needs  analysis to
      determine equipment requirements.  This would  enable identification of
      emerging equipment availabilities including vendor service commitments.

3.    A user  survey  and needs  analysis could be  conducted to determine
      priority support services requirements.  This process would identify client-
      based work groups and obtain their recommendations. Their input would
      be useful in simplifying  procedures and identifying equipment needed to
      implement improvements.

4.    Administrative procedures, once revised and written in easy-to-read and
      understandable language, should be distributed and publicized throughout
      the Ministry at all levels to all employees.

5.    Exposure to new  office  equipment  technology would  be valuable.
      Methods for doing so include:

      a)    Subscribing to targeted office equipment/technology periodicals,

      b)    Maintaining a library of vendor catalogs and contacts,

      c)    Obtaining "trial use" of office equipment/technology, and

      d)    Attending trade shows and seminars to obtain new ideas.

Next Steps and Estimated Costs

      Many of  these recommendations need a substantial time and resources
commitment. Portions of others can be started and serve as the foundations for
larger projects.

      To improve  the  correspondence and  records systems,  develop  a
photocopying strategy, or evaluate  administrative services, the Administration and
Budget  Office and the Cabinet of the Ministry need exposure to new ideas and

technologies in these areas.  For a minimal investment in time and resources,
they can begin implementing the fifth recommendation immediately. In any case,
this information will be needed to ensure the success of the other four recom-
mendations.  Finally,  it is most important to quickly identify within  the depart-
ments people responsible for implementing these recommendations, so that they
can all contribute to  and benefit from exposure to new ideas and the latest

Report on the Institute of
Environmental Protection




      The  institute of  Environmental  Protection  (IEP)  was  established by
disposition of the Minister of Environment and Natural Resources (the Minister)
in April 1986.  The IEP emerged from the Research Institute on Environmental
Development (established in 1974) and the former Institute of Municipal Economy
(established in 1951).  The IEP is one of four institutes under the direct super-
vision of the Minister, the directors of  the  institutes  being  appointed  by the
Minister.  The other institutes under the supervision of the Minister are:

      The Institute of Meteorology and Water Management
      The Geological Institute
      The Research and Development Center for Geological Techniques

      The relationship of these and other institutes to the Ministry is described
in Appendix B.

      The mission of the IEP, as defined in  its enabling disposition, is "
elaborate [the] scientific bases for the state strategy and policy in the field of
environment protection and the technological, economic, legal and organization-
al grounds for the implementation of this policy."

      The rather broad  scope  of  activities of the Institute includes:  policy
assessment, research and development, and technical support tasks in the areas
of water quality, air quality, soil surface quality, natural resources protection, and
noise and vibration prevention.  Specific  programs also cover the areas of
economics, treatment  technologies,  environmental processes  and effects, and
environmental monitoring.


       The IEP receives funding from three sources: the Office of Progress and
Scientific Application; the  Ministry of Environmental Protection, Natural Resour-
ces, and Forestry; and other state and "industrial" institutions1.  A description of
funding sources is shown in Appendix D.

       The total 1990 IEP  budget  is approximately  $4.4M (U.S.) of which
approximately S2.0M (U.S.) is passed through to cooperating state  institutions.
Twenty-seven percent of funding comes directly from the state budget through
the Office of Progress and Scientific Application. These resources are provided
for broad  areas of research and  support and form, in essence,  the "base"
funding for the Institute. Approximately 30 percent of the budget comes directly
from the Ministry on a "non-competitive contract" basis; i.e., for specific Ministry
projects agreed to through a planning process. This is further discussed under
Observations and Analysis.

       An additional 44 percent  is derived from  other government institutions
such as other ministries, institutes and wojewodships. Approximately 24 percent
of the  Institute budget comes from industrial institutions and other sources. The
Branch organizations of the Institute negotiate much of their respective budgets
independently with local government and industrial institutions.

       A summary of in-house expenditures for the IEP (that is, those resources
not passed through to other institutes) is shown in Appendix D.

       The organization of the IEP is shown in Appendix C.  It should be noted
that the structure of the Institute at the time of the review was considered to be
temporary, pending the appointment of a permanent director.  The IEP employs
approximately 470 people, with its main office in Warsaw.  Satellite offices are
located in Katowice, Gdansk,  and  Wroclaw, as  well as at a separate site in
      The term 'industrial Institution1 here need* some explanation. We have ueed the term to describe
      institutions which In the Western free enterprise system would be considered the 'private sector*; for
      example, power plants and steel mills.   In Poland, such  industrial institutions are for the most part
      still state-owned. The term is used here to distinguish such institutions from ether state 'entities'
      such as wojewodships and other district organizations.

      The Director of the Institute, appointed by the Minister, is served by
four advisory bodies: the Scientific Council, a minority of whom are not Institute
employees; an Administrative Board, which is concerned with basic questions
about the existence of the Institute; the Trade Union Council; and an Employees
Board of Delegates, which represents all employees.

      The Institute  Director  appoints three Deputies:  Scientific or Research
Secretary; Vice-Director for Scientific Questions or Problems; and Vice-Director
for Finance/Chief Accountant.  Additionally, there  are field office divisions in
Gdansk, Katowice, and Wroclaw,

      Two locations in Warsaw house the Headquarters function. Administra-
tive work is performed  at  the main  location, and another property comprises
three buildings  in  which  laboratory functions are  conducted.   The various
responsibilities of  these  departments cover a typical range of environmental
protection specializations (see Appendix C).

      Although the Institute Director is  appointed by the Minister, the Institute
itself is not a "government agency" like the Ministry, and its employees are not
"government employees," although they are said to work for the State.  Presently,
the Institute is therefore at most a quasi-governmental institution, and because
of uncertainty about funding and  functions in the future, the potential exists for
even less of a governmental relationship.
Observations and Analysis


      It is important to note immediately that the  mission of the IEP and its
relationship to the Ministry and to the Office of Progress and Scientific Implemen-
tation is in a state of flux.  As with virtually all other state functions within Poland,
basic science is going through a period  of uncertainty as old institutions are
abolished or redirected and new ones are created.  In the science field, an effort
is underway to restructure the state system for financing research and develop-
ment.  Specifically, it has been proposed to transfer funding control from the
Polish Academy of Sciences to a semi-autonomous National Research Council.
The  Council would replace the present Office  of Progress  and  Scientific
Application and channel  research  funds  directly to  scientific institutions and
universities without the involvement of ministries.   It has been proposed that
greater  emphasis  be placed on  self-financing of research by individual enter-

prises, and on competition for funds. The impact of these changes, in terms of
its relationship to the Ministry, could be significant.
      Relationship to Ministry

      Notwithstanding the above changes, a number of observations concerning
the present relationship of the Institute to the Ministry warrant discussion.

      As indicated above, the IEP is one of four institutes said to be under the
supervision of the Minister.  It is  somewhat difficult to define exactly what
"supervision" means under the current structure.  Furthermore, the director of the
IEP is "appointed" by the Minister.  According to IEP staff, however, a director is
nominated by the Institute's Scientific Council and the Administrative Board. The
nominee is then approved (thus appointed) by the Minister.  It is interesting to
note that the IEP employees successfully petitioned the Minister to  remove a
former director.  At  the time of the review, the  Institute  was being  led by  an
acting director, pending formal nomination by the Institute and appointment  by
the Minister.

      A portion (30%) of  the IEP budget is negotiated directly with the Ministry
for specific  programs/projects.   This occurs  through  a  planning  process,
discussed below.

      Additional control on the  Institute is exercised by the  Office of Progress
and Scientific Application  in the form of a ceiling for salaries and wages.  This
ceiling cannot be  exceeded  irrespective of the level of negotiated work for the
Ministry or other institutions.
      On the other hand, the IEP functions as an independent institution.  It pays
taxes on funding  it receives from the state.  It is free to negotiate contracts with
other organizations,  including industrial institutions.  As privatization of industry
in Poland continues, this creates a sort of hybrid institution (i.e., state/private) and
opens the door for potential  conflict of interest issues.
      Planning Process

      Because of the current shift from a central planning concept to a more
delegated process, together with the  proposed changes for research funding
discussed above, the planning process for the Institute is somewhat in limbo.

      The Institute budget from the Office of Progress and Scientific Application
has, in the past, been developed on a strategic level with a number of long-term
(5-year) program objectives.  This process and, in fact, the roles of the Institute
in research,  are presently being  debated, and  thus no budget planning  is
currently occurring.

      The Ministry portion of the Institute budget has historically been  negotiated
directly with the Ministry on a non-competitive basis.  Currently, this responsibility
lies with the Director of Science, within the Ministry.

      The process is as follows:

      1.     The Ministry departments, in coordination  with Institute scientists,
             define their research/support needs.

      2.     The needs are aggregated and coordinated through the Department
             of Science.

      3.     The Institute prepares a  research plan which is provided to the
             Ministry through the Department of Science.

      4.     After respective department  review,  the  plan is approved by the
      This process is initiated in September to fund the following fiscal  year,
which runs from January 1 to December 31.

      According to the Institute, this process can take as long as 6 to 9 months:
in other words, they may not receive approval or funding for a program until the
last quarter of the year in which the work is to be done.  In some  cases, they
have received approval of specific programs but no funding, in which case they
must  rely on carryover funds from previous years or other sources to cover
program operating expenses.  Additional unplanned requests, often with  short
turnaround requirements, are received during the year. It is often difficult for the
IEP to meet the requested deadlines.

      The process seems to limit efforts to projects of short-term duration. One
official stated that long-term projects have been proposed by the Institute but not
approved by the  Ministry.   He said  further, though, that relatively ambitious
projects are turned down due to lack of understanding of the project rather than
because of money. The decision-makers are perceived as poorly equipped to

                                  - 31 -

evaluate the need for research projects proposed by the Institute.

      The process leaves the impression with the Ministry that the Institute is not
responsive to its needs and that the Ministry does not have control over Institute
activities.  Conversely, the Institute feels that the Ministry cannot effectively and
realistically define its needs.

      The result is that there does  not appear  to  be  a  timely or effective
planning process in place.

      There does  not appear to be any effective system  in place for either
scientific or fiscal accountability.
      1.     Scientific Accountability

             Discussions with Institute personnel indicated there was no formal
      internal process or policy in place to insure the scientific quality of their
      work.  For example, branch organizations can produce products (research
      reports) for clients, including the Ministry, without internal review at the
      Institute level.   There are no guidelines in place for either internal or
      external peer review of research.  The quality of Institute work, as viewed
      by the Ministry, was mixed; some of high quality, some of poor quality.
      2.     Fiscal Accountability

             The Institute  is in the process of installing a  computerized cost
      accounting system for internal use. There is no requirement, however, for
      accountability of Institute expenditures back to the Ministry: in other words,
      once an agreement is reached between the Ministry and the institute for
      a project and a projected budget, there is no requirement for the Institute
      to substantiate the expenditure of funds.                  <
      Mix of Science and Policy

      The activities of the  Institute range from environmental policy analysis
(including socioeconomic considerations) to research  and  development and


technical support.  The mix of science  and policy  analysis raises a question
regarding independence and credibility.  In the American academic community,
the science of an issue is expected to stand independently on its own merits,
with peer consensus being used as a measure of quality. Policy analysis can of
necessity involve compromise between science and competing socioeconomic
values.  If a single organization is responsible for both the science and the policy
analysis associated with an issue,  it is open to  criticism for altering or selecting
the science to fit the policy recommendation. The mission of the Institute in this
regard is unclear.
      Conflict of Interest

      As indicated above, the IEP functions as an independent institution in the
sense that  it can "contract" for work with other government and industrial
institutions.  In the past, most industries were state run, and one could argue that
there was no explicit conflict of interest. As privatization continues, however, that
situation changes.   If the Institute is to continue its role  in  developing  state
environmental strategy and  policy as indicated in its mission statement and,  at
the same time, contract for work with the industrial institutions at whom  state
policy may be directed, there is a clear potential for the appearance, if not the
fact of, conflict of interest  for the  Institute.
      Employment Issues

      Salaries of institute employees are, by all accounts, low; although wages
are close to national averages, they are not nearly what private industry pays for
comparable work.  Salaries are calculated based on the Institute's income from
the sources listed above and by an individual's  work on a project.   Each
individual's salary is the total of several parts:

             Basic salary -  stated  in employment contract,  and  based  on
             qualifications; plus

             Seniority amount -1 percent per year up to 25 years; plus

             "Addition for function" - e.g., approximately 30 percent for position
             of Science Secretary; plus

             "Premium" for sale of Institute  work - directly to researchers (2
             percent) and quarterly payments to administrative staff, including


      Budget uncertainties, as currently encountered, result in salary uncertain-
ties.  As a consequence, many good employees have left in an effort to find
more secure positions.  It was also noted that those who get the best environ-
mental education are unlikely to enter the environmental industry, due to poor
salaries even on the outside.  Nevertheless, turnover is relatively low, and the
workforce relatively stagnant, according to both management and employees.

      Recruitment was said to be difficult, especially for scientists, accountants,
and economists. It is especially difficult to attract highly qualified young recruits
who read and speak English.  Good staff are even harder to find in areas where
they are most needed, such as Katowice, because the living  conditions are
undesirable.   Still,  there  tend to be  more  candidates than jobs to fit!, and
recruiting is done informally, through academic contacts.

      The mechanics of time and attendance are an ambiguous combination of
methods that are at the same time both progressive and antiquated.  Institute
employees may work on a flexible schedule,  and in fact sign in and out  to
document their own time.  A lack of further control seems to derive from a sense
of trust, as well as an attitude among employees that "even when we are not at
work, we are working."  There is also a work-at-home policy, though limited  to
one or two days per month. These flexibilities, as progressive as they seem, are
nonetheless due to cramped office  conditions and transportation difficulties.   In
sharp  contrast  to  progressive practices that  exist,  it should  be noted that
two-thirds of the employees are  paid  their salaries in cash, and one-third  by
      Outside Employment
      A great number, if not the majority, of Institute employees appear to have
part-time jobs outside the Institute, although some Divisions do not permit this
arrangement.2  Employee representatives indicated that this was necessary for
people  to be able to earn a living wage.   There  are conflicting views  of the
impact on the Institute; some interviewees stated that this actually was beneficial
to the Institute, providing employees with additional independence, responsibility,
and opportunities to network within the scientific community.   It is a general
perception that outside work is done strictly on private time and  outside the
Institute facility;  however, given  the  attitude that many scientists consider
      H was stated it the  Institute  that Ministry employee* are not  permitted  to hold any  outside
      employment This contradicted statements made at the Ministry that there was such permission.


themselves "on the job" around the clock makes it difficult to understand how a
line is drawn.  Measures to prevent conflict of interest are neither apparent nor
perceived as necessary ,and some of those questioned stated that they know
when an employee is working outside.  Even those who felt that the Institute is
undermined by this  practice  said  that those who  worked outside teaching
secondary and university students  were actually  engaging in  work useful  for
purposes of  educational advancement and recruiting.  At any rate, those  in
authority seem resigned to the need for individuals to engage  in outside work
      Training and Development

      As difficult as it is to obtain equipment, acquiring training for employees
is said to be even more difficult. The most common form of training seems to
be informal, on-the-job training by managers for new employees to incorporate
them into the work unit (more so than as a new member of the Institute as an
organization).  Beyond that, training is something rare, for a variety of reasons.
Organizationally, each training opportunity or travel expenditure must relate to a
specific research project to be approved. Training that is not project-related can
be half-funded by  the Institute.   Culturally, there are few  seminar-style training
opportunities as we know them in the U.S.; most developmental  activities are
perceived to be  long-term academic pursuits.

      The  most pressing and repeatedly noted training need appears to be for
professional technological transfer conferences.  It was mentioned often that the
scientific professionals need opportunities to learn about models currently in use,
to see how others  use modern techniques, and to meet their counterparts from
other countries.  Critical obstacles to this, though, are language barriers, a lack
of travel money,  and reluctance  on the part of supervisors  to release employees
during work time since there  are no backups.  The  need is therefore great for
broad-scale training in English and other languages.  A training need brought up
almost as  often  was in the area of computer training.  Other areas included
auditing; research  evaluation;  comparative economic practices; writing improve-
ment (for which we were told no training currently exists in  Poland); environmen-
tal impact assessment; and project
      Management Training

      As noted above, seminar-style training was said to be rare in Poland; for
management development, it is almost an unknown  throughout Europe.  All
managers at the Institute who were questioned said they need and would like to


take management training courses, and had never had any.  It was stated by
one  official that Polish managers lack skills in team leading, evaluating results,
interpersonal communication, and setting priorities - "they are scientists."
      Facilities. Equipment, and Working Conditions

      Space in the facilities inspected (i.e., both sites in Warsaw) is limited, and
its quality was described by employee representatives as "hopeless," "substan-
dard." One employee indicated that employees make use of the work-at-home
policy just to get quiet time.   The library, located at the administrative site,  is
described as small in size and holdings,  equipped with only basic literature and
very few western publications.  The  laboratory site  in Warsaw consists of 3
buildings on the same property. It is fitted with equipment, some borrowed, and
most out-of-date, a condition described by an employee representative as typical
throughout Poland since funding for science was centralized. There is no room
for additional people to perform "work  that  should be being done," although
there is a plan to build a new Institute at the present lab site. Employees look
to this as progress, since it will consolidate the two Warsaw sites  and improve
their access to colleagues and the library.

      The few computers available are somewhat evenly distributed, although  at
least one division has none at all but has use for them. Those that are available
are well utilized and in great demand; there is no time for word-processing use
because of more sophisticated work needs.  Except for one five-terminal multi-
user system in the Finance Office, there  is no internal PC network, nor any link
with external sites. Telephone communication system is described as "unbelie-
vable," even internally; jt can take up to 2 days to complete a phone call to
another location.
      Duplicating  equipment  at the  main office is limited to one operable
photocopying machine.  Another is awaiting  repair, and a third is  on order.  A
fourth,  donated by UNESCO,  awaits installation because there  is  no space.
Upon availability of a now-occupied room, a photocopy center is planned which
will house all 4 machines.
      Organizational Design and Infrastructure

      Clerical support is extremely limited; it was reported that few people are
available and willing to take the simplest jobs. There is great difficulty in finding
qualified typists, especially for correspondence in foreign languages.  A ratio of
one secretary to 22 other staff members is common. Although this is described


as  "typical in Poland,"  it leads to a  critical  lack  of  administrative support.
Scientists are doing purchasing and  photocopying; chemists log in samples
manually; division chiefs do administrative work.  In one division, employees said
that scientists must typically organize their own projects to extreme detail: find a
typist, obtain  a copy service, order supplies. There is no requirement to look for
the best price nor, it was said, time to do so.  As a shortcut,  many employees
use their own phones, cars,  and money for work-related uses.

      Scientists complain that they feel like technicians, not professionals. This
is compounded by a perception that individual employees don't understand their
role in the "big picture", and sometimes don't know to what use their research
will be  put.  It was also  stated that projects are  sometimes contracted out
because there is no management awareness of the expertise within the Institute.
      Employee Participation

      The  level of influence that  employees have is  high; as  noted earlier,
employees successfully petitioned the Minister  to  replace a  former Institute
director.  Recent layoffs that reduced the size of the workforce by  approximately
one-fourth had to be certified by the Trade Union Council and the Employees
Board of Delegates (also called the Employee Council).

      The more representative organization, the  Employees Board, consists of
three at-large members and members who each represent one of  the Branches.
The  Board represents all occupations.  Members are elected every six months
and  can  be re-elected  without limit.  The goal of the organization is  to advise
management on ways to improve the Institute; for example, they were successful
in an effort to improve the representation of the Institute on the Scientific Council
to influence Institute policy  (previously, 80 percent were outsiders).
      Social Context

      Any of the above observations must be considered, we were told, within
the context of social conditions in Poland, and the impact of living conditions on
employment. Several factors were brought out in  discussions.  As previously
noted, many individuals have  more than one job.   "Free time" is rare - even
shopping for food and basic supplies can take up many hours each week • and
any time left after the typical day is spent with family, at  recreation, or at rest.
After-hours training was therefore characterized as out of the question for most


      The extent to which after-hours activities can  sap personal energy is a
source of extreme stress for most employees.  It was pointed out further that
women especially are so loaded down in private life  that they decline manage-
ment positions - they would be too stressful.

      In employment terms, some shortages are attributed to the move to a free
market economy.  It was stated that  many individuals in the country find that a
combination of welfare and self-employment, on which no taxes are collected, is
easier and far more profitable than holding down a regular job; they can set their
own hours and working  conditions,  and supplement irregular  earnings  with
welfare payments.  In addition, there are few, if any, restrictions that require
individuals who take over enterprises or open businesses to have even basic
qualifications; taxi drivers, for instance, and even pharmacists need no licenses.

1.     The Ministry needs to clearly define its relationship to the IEP; i.e., does
      it want the Institute to be, in effect, an extension of the Ministry (a state
      organization) or does  it view the IEP as an independent  Institute with
      whom it would contract for  required services? A number of models are
      available for state/institute relationships which have been successful in
      different situations.  In the United States, examples are: the Department of
      Energy  National  Laboratories; The National  Institutes of  Health;  the
      National Climatological Research  Center of the National Oceanographic
      and  Atmospheric  Administration;  and  the Environmental  Protection
      Agency's Research Laboratories.

      It would  be beneficial  for appropriate Ministry  personnel to review the
      models  or, preferably, visit  a number of these or  European Economic
      Community institutions to better define the type of relationship which best
      fits their needs.

2.     The Ministry and the Institute need to address the issue of conflict of
      interest both on an individual and institutional level.  This issue will become
      more important as privatization proceeds.

3.     The Ministry might find it useful to develop a formal structured planning
      and budgeting process between  itself and the Institute. There  needs to
      be  a clear delegation of authority from the Minister to effectuate this plan.
      The Ministry may also wish to delegate authority through lower levels of

                       its administration so that those who negotiate with the Institute have more
                       decision-making  ability.  This would facilitate more effective interaction
                       between the Ministry and the Institute.

                4.     The Ministry could  require financial accountability of the Institute beyond
                       the program negotiation process.

                5.     In considering the desired relationship between the Ministry and the
                       Institute, the Ministry needs to address the issue of separation of policy
                       analysis and science.

                6.     The Institute needs to establish internal policies and procedures to insure
                       quality of science.

                7.     The Institute should consider formulating a central  travel and training
                       budget to fund non-project-related training.  This would enable  profes-
                       sional development opportunities that would strengthen the Institute's level
                       of expertise. The budget could be derived from a surcharge arrangement
                       on  each project.

                8.     The Institute should consider establishing a position whose responsibility
                       would be to survey training needs and locate and bring in training courses
                       in areas of general  need such as English language, writing improvement,
:                       computer applications, and management.  This individual could also keep
                       track of professional conferences and other networking opportunities and
                       communicate these to  the staff, and even arrange for them to attend.

|                9.     The Institute should consider establishing a policy on outside employment,
                       which might be as  simple as requiring  employees to report annually on
                       their outside work interests.  This would help to assure that employees are
                       as productive as possible while they are performing Institute work.

                10.    The Institute should consider designating individuals to coordinate certain
                       developing  areas such as: computer systems planning and implementa-
                       tion;  administrative automation;  library and technical  resources;  lab
                       equipment  planning,   purchasing and  installation;  and  as previously
                       mentioned, training and development. This would eliminate duplication of
                       effort, enhance compatibility of systems,  and allow an organized approach
                       to these pursuits. If not implemented immediately, this would be beneficial
                       later in designing the envisioned new facility.

                 11.   The Institute should consider ways in which to  improve  the  internal
                       telecommunications system.  More  and better telephone extensions,


     intercom equipment, and other hardware available should be considered,
     although the national telecommunications situation will continue to be a

12.   The Institute might also take advantage of the power of the Employees
     Board to stimulate effective  informal communication with and to  the

13.   The Institute should anticipate and assess how salary and recruiting issues
     will play out in the future, and may need to plan ways to address them.
     Training  and equipping  employees with  needed skills will make them
     valuable human commodities as private employers enter the national scene
     on a large scale.

14.   The Institute should continue efforts to facilitate basic service improve-
     ments, such as the initiative  to provide  sufficient well-located  copying
     equipment.  Similar initiatives might be the establishment of a courier
     system between the Ministry and the Institute to speed communication, or
     the procurement  of  computer  equipment  appropriate  to  enhance
     word-processing capability. The possibility of gaining Institute access to
     the network installed by the World Bank for the Ministries should also be
     explored. The basic goal of such improvements would be to free up staff
     time from mundane tasks to maximize efficiency and productivity without
     a corresponding need to hire more people.

People Interviewed


                          PEOPLE INTERVIEWED
Bronislaw Kaminski
Dr. Stanislaw Sitnicki
Dr. Tomasz Zylicz
Janusz Paradysz
Krzysztof Sobkow
Mr. Bogdanowitz
Ms. Ciecierska
Ms. Valentine Kopcinska
Stanislaw Moczulski
Eugeniusz Derda
Bogdan Sibilski
Mr. Nowicki
Michael Gientka
Andrzei Deja
Wojciech Stodulski
Jan Smardzewski
Mr. Mierzwinski
Mr. Krzeminski
Kazimierz Podlaski
Dr. Rajmund Wisniewski
Dr. Andrzej Kamienski
Czeslaw Wieckowski
Sophia Wasek
Dr. Andrzej Rdeja
Ms. Lewandowska
Ms. Ciolkowska
Mr. Trawinski
Zbigniew Kamienski

Waclaw Listkowski
Dr. Krztsztof Fleming
Mr. Perliaski
Joanna Sacharewicz
Hanna Ziarak
(Name Unknown)
Director, PIU
Director, Economics Dept.
Economics Unit Chief
Director Cabinet of Minister
Correspondence Chief
Organization Chief
Chief Finance (Chief Accountant)
Deputy Director, Economics Department
Director, Administration (and Budget, Facilities)
Deputy Director, Administration
Chief Accountant (payroll, etc.)
Director, Geology
Deputy Director, Science Dept
Component Coordinator, PIU
Director, Forestry Department
Unit Director Monitoring - Inspection
Deputy Director, Nature Protection
Director, Water
Director, Science and Programming
PIU (Computer) World Bank, Procurement
PIU Procurement (*fin.  arrangements)
Training Staff
Environmental Impact Assessment
Research Coordinator
Senior Specialist, Air Monitoring
Analysis and Assessment Section
Director, Supervision Department,
 State Inspectorate
Director, Geology
Director, Computer Center, Plock
Computer Center, Plock
Secretary, PIU
Secretary, Economics Department
Secretary, Water Uses Department
                                       -41  -

Dr. Pawel Blaszczyk
Jozef Jabionski
Elizbieta Polak
Dr. Jan Siuta
Dr. Marcin Kazmierczuk
Ewa Gacka-Grzesikiewicz

Andrej Kroftkowski
Janusz Rodzejowski

Dr. Wojciech Jaworski
Wrtold Domek
Dr. Janusz Zurek
Sylwia Ramatowska
Acting Director
Vice Director, Scientific Secretary
Vice Director, Finance, Chief Accountant
Vice Director, Science
Director, Water Uses Department
Landscape Preservation/President,
  Employees' Board
Water Uses Department/Employees' Board
Director, Nature Protection & Landscape
Director, Air Protection
Director, Environmental Monitoring Laboratory
Director, Ecological Policy
Special Assistant to the Institute
EEC Consultants

Ewa Matuszewska
Dr. Marcel Seyppei
Mr. Coulson
Daniel Ivarsson
Project Officer, EEC
Exchange Consultant EEC
EEC Consultant
EEC Consultant



                                                                APPENDIX  A
                      OP ENVIRONMENT
                    NATURAL RESOURCES
                       AND FORESTRY
                                                     OF MINISTRY
                                              ! !  NATIONAL COUNCIL ?OR
                                              H  PROTECTION OF MATURE
                                               NATIONAL COUNCIL
                                               FOR PROTECTION
                                               OF ENVIRONMENT
                OF STATE
            OF STATE
                 AND PROGRAMMING
                                                COMMISSION ON
                                            ENVIRONMENTAL IMPACT
                            OF STATE
                             UNDERSECRETARY '„
                                 OF STATE
              OF STATE
                                                             CHIEF INSPECTOR OF
                                                          ENVIRONMENT PROTECTION
                                 MAIN PATENT
                              FOREIGN COOPERATION


         UJ 2

                          O  UJ
                           22 m




                                                                                        APPENDIX C
Earth Protection
 Monitoring Lab
                                             Ecological Policy
                                              Legal Advleor
                         Chief Accountant
Coop. Section
                           Finance and
                                           Engineering Section

                                           Defenee, Safety and
                                              Office for UN
                                                Center for Sector
Gdansk Division
Katowice Division
                  | Wroclaw Division






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                                                  APPENDIX D


Struktura koaztdw dzialalnoici Instytutu
IEP • Structure of Coata of Activity
Rodza;} koazt<5w
Specification of Coats
1 . Place
Salaries and Wage a
2. Skladki ZUS
Social insurance premium
3. Podatek do budzetu c entrain.
Tax for central budget
4. Koszty oaobowe - razen
Personal Costa - total
5. Koazty stale utrzymania Znstyt.
(baza lokalowa, koszty biurcwe)
Constant eosta of maintenance
of ISP (buildings, office
6. Koszty naterialne realizacji
zadarf badavczych - razem
Material costs of realization
6.1. Aparatura badaweza
6.2. 2%teria2y
6.3. Pedrdze sluzbowe, r6tne
Business travels* various
7. Koazty * razes
Total Costs
8. Przewidyweny zyak
9. Dochody Znatytutu • zawartych
Income of ISP from contract a
Amount thoua.
1 .629.790
w X
in %

Employment                 540

Srednla  piaca tys.ti/»-c
Average salary thous. Zlotiea/nonth
                     1 010.0

            DATE DUE
MAR 13 I! 192
          HIGHSM1TH #45115