A chronology of the major milestones in the evolution of employee performance
management in the Federal Government is presented below.
Year |
Actions |
1883 |
Pendleton Act, or Civil Service
Act
- Attempted to provide a merit system to end favoritism.
- Required promotions by merit competition, but no centralized
appraisal system was established.
|
1912 |
First Law on Appraisal
-
An appropriations act directed the U.S. Civil Service Commission
(now the U.S. Office of Personnel Management) to establish a
uniform efficiency rating system for all agencies.
|
1923 |
Classification Act of 1923
- Resulted in establishment of a "graphic rating scale" in 1924,
which was used until 1935.
- Was effective, but unpopular.
- Supervisor marked along a scale for each "service rendered."
|
1935 |
Uniform Efficiency Rating System
The Civil Service Commission established the Uniform Efficiency
Rating System by regulation, which was used until 1950.
- Factors were grouped under the headings Quality of Performance,
Productiveness, and Qualifications.
- There were five rating levels for each of the three categories,
and also five summary rating levels.
|
1940 |
Ramspeck Act
- Directed establishment of independent Boards of Review to decide
rating appeals in each agency.
- Boards included the Civil Service Commission and employee representatives.
|
1950 |
Performance Rating Act
- Purpose was to identify the best and weakest employees and
to improve supervisor-employee relations.
- Required the establishment of appraisal systems within all
agencies with prior approval by the Civil Service Commission.
- Established three adjective summary rating levels: Outstanding,
Satisfactory, and Unsatisfactory.
- Employees could still appeal ratings, but now through a statutory
board of three members, one from an agency, one selected by employees,
and the Chairman of the Civil Service Commission.
|
1954 |
Incentive Awards Act
-
Authorized honorary recognition and cash payments for superior
accomplishment, suggestions, inventions, special acts or services,
or other personal efforts.
|
1958 |
Government Employees' Training Act
-
Provided for training to improve performance and to prepare
for future advancement.
|
1962 |
Salary Reform Act
- Required an "acceptable level of competence" determination
for granting General Schedule within-grade increases.
- Provided for the denial of the within-grade increase when performance
is below the acceptable level.
- Authorized an additional step increase for "high quality performance."
|
1978 |
Civil Service Reform Act
Agencies required to develop appraisal systems for all Federal
employees.
- Office of Personnel Management approval of appraisal systems
required.
- Appraisals must be based on job-related performance standards.
- Agencies must encourage employee participation in establishing
performance standards.
- Appeal of appraisals outside an agency was eliminated.
- Results of the appraisal must be used as a basis for training,
rewarding, reassigning, promoting, reducing in grade, retaining,
and removing employees.
- Employees can be removed for unacceptable performance on one
or more critical elements, but only after being provided an opportunity
to demonstrate acceptable performance. The standard of proof was
reduced from preponderance of the evidence to substantial evidence.
- Reductions in grade and removals are appealable to the Merit
Systems Protection Board.
Established a separate performance appraisal system for Senior
Executive Service employees.
- One or more fully successful rating levels, a minimally satisfactory
level, and an unsatisfactory level required.
- Agency Performance Review Boards to make recommendations to
appointing officials on final ratings required.
Established performance-related pay authorities.
- Provided for performance awards for career executives; at least
a Fully Successful rating required, and recommendation of the
Performance Review Board.
- Provided for Senior Executive Service Meritorious (career)
executive awards ($10,000 for sustained accomplishment over a
period of years; limited to 5 percent of executives) and Distinguished
(career) executives awards ($20,000 for sustained extraordinary
accomplishment, limited to 1% of executives).
- Merit Pay established for supervisors and management officials
in Grades GS 13-15 with funding for merit increases limited to
what would have been paid as within-grade increases, quality step
increases, and half of comparability adjustments (employees were
guaranteed half of comparability adjustments only).
|
1984 |
Civil Service Retirement Spouse
Equity Act
- Established a 5 percent minimum performance award for Senior
Executive Service employees.
- Merit Pay System abolished and Performance Management and Recognition
System (PMRS) established.
- PMRS Employees rated Fully Successful or higher guaranteed
full comparability increases, with Minimally Successful getting
half, and Unacceptable getting none.
- PMRS Employees guaranteed merit increases of specific amount
based on their performance ratings and position in pay range for
their grade level.
- Performance awards program for PMRS employees established,
with a minimum funding level from .75 percent to 1.15 percent
of estimated aggregate salaries over five years and a minimum
performance award of 2 percent of employee's salary required for
an Outstanding rating. Maximum award funding was set at 1.5 percent
of estimated aggregate salaries.
- Performance appraisal revisions in PMRS include five summary
rating levels required, no forced distributions of ratings allowed,
and joint participation in setting standards required.
|
1985 |
Final Performance Management and
Recognition System appraisal and pay regulations issued.
- Implemented legal provisions regarding general increases, merit
increases, and performance awards.
- Established procedures for determining merit increases and
performance awards for "unrateable" employees.
- Described pay-setting procedures when employees move between
pay systems.
- Established minimum appraisal periods and procedures for rating
employees who are detailed to other positions.
- Required higher level approval of ratings and performance-based
personnel actions.
|
1986 |
Final Performance Management System
regulations issued.
-
Appraisal regulations for General Schedule and Prevailing Rate
employees and for SES employees issued, which paralleled Performance
Management and Recognition System appraisal regulations of 1985.
Regulatory pay-for-performance system established.
- Fully Successful rating required for within-grade increases.
- Outstanding rating required for quality step increases.
- Fully Successful rating required for career-ladder promotions.
- Performance award program required for General Schedule and
Prevailing Rate employees.
|
1989 |
Legislation extends the Performance
Management and Recognition System (PMRS).
- Revised merit increase amount for Fully Successful employees
in the middle third of the pay range from one-third to one-half
of a merit increase, to parallel step increases in the General
Schedule.
- Set minimum performance awards funding at 1.15 percent of estimated
aggregate salaries for duration of the extension.
- Allowed for the reassignment, removal, or reduction in grade
of PMRS employees who did not attain a fully successful level
of performance after being given an opportunity to do so.
Revised Senior Executive Service appraisal regulations.
- Permitted three to five summary rating levels. Must include
an "Unsatisfactory," "Minimally Satisfactory" and "Fully Successful"
level.
- Deleted requirement for rating period to end between June 30
and September 30.
|
1991 |
Legislation again extends the Performance
Management and Recognition System.
- Allowed using a written statement of work objectives to establish
performance requirements.
- Removed requirement for mandatory performance award for employees
rated Outstanding and the accompanying 2 percent minimum award.
Federal Employees Pay Comparability Act
- Provided specific legislative authority for payment of rating-based
cash awards to General Schedule employees like those authorized
under the Performance Management and Recognition System.
- Provided authority to grant time off as an incentive award.
|
1992 |
Revised regulations on summary rating
levels for General Schedule and Prevailing Rate appraisal systems.
-
Allowed summary ratings at 3, 4, or 5 levels but required agencies
to include "Unacceptable," "Fully Successful," and "Outstanding"
levels.
|
1993 |
Performance Management and Recognition
System (PMRS) terminated.
- Provided for orderly termination of the PMRS and payout of
merit increases and performance awards based on October 1993 ratings.
- Provided for phased conversion of employees not on a step rate
back to step rates based on specified personnel changes.
- Retained authority to pay employees at non-step rates until
changes occur to place all employees on a step rate.
|
1995 |
Performance management regulations
revised.
- Further decentralized the performance management program to
allow agencies to develop programs to meet their individual needs
and cultures.
- Established 8 permissible summary rating patterns allowing
from two to five levels for summary ratings.
- Combined all award authorities in one part of the regulations,
5 CFR 451.
- Streamlined the appraisal system approval process.
|
1997 |
Revised regulations on reduction
in force and performance management.
- Allowed flexible crediting between 12 and 20 additional years
of service retention credit for ratings of record given under
different summary level patterns.
- Retained traditional 12-16-20 year crediting when all ratings
of record being credited were given under a single summary level
pattern.
- Revised credit averaging to use actual ratings of record given
without "filling in the blanks" with presumed fully successful.
- Removed use of presumed fully successful ratings and replaced
them with credit based on the modal rating when employee had no
ratings of record.
- Provided for immediate or delayed implementation at agency
discretion to allow for education, partnership, and automated
system revision efforts.
|
1998 |
Revised regulations on ratings of
record.
- Codified long-standing Office of Personnel Management policy regarding ratings of record.
- Described when a rating of record is considered final.
- Prohibited retroactive, carryover, and assumed ratings of record.
- Provided limited circumstances under which an agency can change a rating of record.
|