U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

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Designing Performance Appraisal Programs

Representatives from three different agencies presented an overview of their appraisal program design strategies at two conference sessions. Although each agency has developed unique ways to implement its appraisal programs, the objectives they shared were:

• Improving communication;
• Involving their employees;
• Ensuring that the organization's concerns on specific performance issues were solved; and
• Developing programs that meet organizational needs.
  
  
• Health and Human Services (HHS)
• Department of the Treasury
• The National Aeronautics and Space Administration (NASA)

Health and Human Services (HHS). HHS has a flexible appraisal system that allows its components to design their own programs. Although three of HHS' components decided to adopt a two-level appraisal program, the programs are being implemented very differently.

• The Food and Drug Administration (FDA) has three element assessment levels and two summary rating levels. By assessing elements at three levels, supervisors have a wider range of feedback to provide employees. At the same time, having only two summary levels focuses employees on the content of the feedback rather than the label.
• The Health Care Financing Administration's (HCFA) Employee Performance Program for non-supervisory employees is designed to promote teamwork and to improve communication between supervisors and employees. The program focuses on contributions within the scope of the employee's job description in achievement of HCFA's overall mission. The current two-level appraisal program encourages a cultural change in HCFA that stresses communication and achievement of the agency's mission.
• The National Institutes of Health uses critical and additional elements in its appraisal program. Additional elements are used to address dimensions of individual performance not covered by critical elements, as well as team, or organizational performance.

These strategies show HHS' commitment to allow its components to develop and adopt appraisal programs that meet their needs.

Department of the Treasury. Department of the Treasury components (i.e., bureaus) also have the flexibility to design their own appraisal programs, addressing organizational concerns and taking into account the bureau's culture and employee needs. The Customs Service, the U.S. Mint, and the U.S. Secret Service each use a two-level appraisal program. The Bureau of Alcohol, Tobacco and Firearms and the Financial Management Service are considering two-level appraisal programs. The Bureau of Engraving and Printing is using a three-level appraisal program. Other bureaus have either decided not to change or are still considering change.

The National Aeronautics and Space Administration (NASA). NASA's appraisal system allows only one program to operate at a time. It is currently using a two-level appraisal program. NASA wanted a simple, streamlined appraisal program that fosters communication and less paperwork. Its program requires:

• One critical element in each employee's performance plan that is linked to the NASA strategic plan, either directly or through the subcomponent's strategic plan; and
• An appraisal form designed to show strategic linkages to organizational performance as well as provide for optional generic elements and standards for all employees.

Most of NASA's field centers have transitioned to the two-level appraisal program and the first ratings were completed in January 1997.

One lesson NASA learned during the program's implementation was the importance of communicating the new program to employees to help them understand what will and will not change. Also, NASA found that everyone needs time to understand the new program before implementation.

Originally published on June 1997