Performance Based Organizations (PBO's) represent an initiative developed to help the Government operate more efficiently. "PBO's encourage a group of Government executives in an organization to bear responsibility for its level of performance. These executives commit to meet tough annual performance goals..."1 These organizations set forth clear measures of performance, hold the head of the organization clearly accountable for achieving results, and grant the head of the organization authority to deviate from Governmentwide rules if this is needed to achieve agreed-upon results. PBO's are characterized by:
To assist developing candidate PBO's, the Office of Personnel Management has worked with OMB and others to develop model legislation for establishing a PBO. The model legislation, which would be applied for each separate PBO, includes authorities for certain personnel flexibilities, as well as a clear statement of the general Governmentwide interests and values, such as the merit system principles and effective labor-management relations, that any Government organization should support.
The handbook provides general information on a wide variety of flexibilities and authorities, as well as organizational contacts.
Of course, agencies that are not candidates to become a PBO, and for whom existing flexibilities are not sufficient, can pursue personnel system changes through demonstration projects.
We are prepared to assist agencies as they examine where and how their human resource management systems need to be adapted to leverage performance results effectively and achieve their goals.
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1 U.S. Government Budget 2000
Updated 8 February 2001