Evaluating Human Capital in Romanian Public Institutions: Current Challenges and the Case for Digital Transformation

Abstract

In Romania, over the last two decades, significant efforts have been made to professionalise public administration, and performance assessment has been recognised as a key in this process. Human capital performance management represents a crucial component of modern public administration, directly and significantly influencing the effectiveness, efficiency, and credibility of state institutions. This article analyses the current systems for evaluating human capital performance in Romanian public institutions, a crucial aspect of modern public management. The research investigates the legislative frameworks and methodologies applicable to both civil servants and contract staff, highlighting the differences and similarities. The methods adopted included a systematic review (adapted PRISMA) of relevant legislation and specialised literature, with a qualitative content analysis of performance objectives and criteria. The results show that, although there is a well-defined formal framework for civil servants based on SMART objectives and competency criteria (e.g., resource management, initiative, quality, teamwork, integrity), the evaluation of contract staff is more decentralised, being regulated by internal acts. Discussions reveal significant challenges, including non-assessable aspects (e.g., intentions, uncontrollable external factors, private life, untapped potential) and the persistence of subjectivity. Prospects and proposals focus on simplifying methodologies, developing evaluators' skills, integrating 360-degree feedback, and using technology. The implementation of all these recommendations requires not only a firm commitment from decision-makers at the governmental and institutional level but also significant investments in human resources and, above all, a clear vision of the role of digitalisation as the main driver of the transformation and modernisation of Romanian public administration. In conclusion, although the Romanian system is evolving, a transformation of organisational culture and closer alignment of evaluation with professional development (via digitalisation) are needed to increase the effectiveness and quality of public services.