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

Archive

OPM Proposes New Rules for Performance Management

OPM has taken a major step toward providing agencies the flexibility they need to implement innovative performance management systems. With issuance of proposed regulations on January 27, 1995, it may not be long before agencies can use two-level appraisal (i.e.,"pass/ fail") and pursue other system features to support individual and organizational performance improvement.

The proposed regulations offer agencies an opportunity to leave behind the sterile, burdensome, and ineffective approaches to appraisal that have become so unpopular. It's time to "hit the reset button" and think about designing new appraisal schemes under flexibilities the proposed regulations would allow. What follows is a description of some areas where the proposals would offer more flexibility.

• Pass/Fail
• Groups and Teams
• Performance Planning, Feedback, and Assessment
• Performance Recognition
• A Shift in Policy Perspective
• System Review and Approval
• Employee Involvement
• What's Next?

Pass/Fail. As an example of the policy change from "one size fits all" to "do what's right for you," "pass/fail" appraisal would be permitted. Agencies could use two levels to appraise elements or summarize performance. No changes to the reduction in force regula tions would be needed to accommodate two-level systems.

Groups and Teams. In addition, these regulations would be revised to emphasize their applicability to group as well as individual performance. Many revisions would remove language (e.g., "employee" and "position") that had an exclusively individual focus. A few appraisal related terms would be redefined to accommodate groups and teams. To comport with the law, regulations would still require that each employee be covered by a performance plan and that each plan include at least one critical element that addresses individual performance. Agencies still would be free to design and operate their systems entirely at the individual level.

Performance Planning, Feedback, and Assessment. To facilitate planning and feedback, agencies would be permitted to use expressions of performance expectations in addition to elements and standards in performance plans. This would facilitate agencies integrating other performance planning processes with their appraisal systems by including, for example, team performance objectives, customer service standards, and organizational performance plans.

These other performance expectations could be used in addition to elements and standards to derive a summary rating level. Such flexibility would permit agencies to align performance appraisal better with organizational performance planning and assessment.

Performance Recognition. Awards restrictions would be pared substantially to facilitate performance recognition. Most restrictions on time-off awards and some restrictions on performance awards would be removed as Governmentwide requirements. Those that remain would be consolidated into one single set of regulations. For example, there no longer would be a requirement to base certain types of awards on nonrecurring contributions.

A Shift in Policy Perspective. In large measure, OPM is proposing to remove a number of regulatory requirements to provide agencies additional flexibilities. A number of redundant or burdensome requirements would be removed. Other requirements would be removed not because they were necessarily ineffective, but because agencies should be free to use them without being required to use them. By proposing to eliminate the requirement for second-level review of employee performance plans, for example, OPM is not suggesting that such review is a bad idea. OPM is proposing a shift in policy perspective under which an agency's use of second-level review would reflect its system design choice rather than compliance with a Governmentwide requirement.

System Review and Approval. None of the proposed regulations will require agencies to make any changes. A provision is included that permits agencies to retain current appraisal systems as approved by OPM. Under the proposed regulations, agencies would be required to receive prior OPM approval of appraisal systems only (new and modified) before implementing any new flexibilities.

Employee Involvement. OPM recommends that agencies involve employees and their representatives in developing systems that can support agency missions better. OPM strongly agrees with the National Performance Review and National Partnership Council that employee involvement in the development process is a prerequisite to success.

What's Next? OPM expects to issue final regulations by late spring after careful consideration of stakeholder comments submitted by March 28, 1995. Final regulations will become effective 30 days after publication.

Originally published on February 1995.