AGENCIES TO GET MORE SAY OVER HOW EMPLOYEES
ARE EVALUATED AND REWARDED

Washington, D.C. -- "Flexibility" and "decentralization" are two key ingredients of a new Performance Management system that federal managers would use to rate and evaluate their employees, as well as to reward them for superior work, according to a proposed rule announced by U.S. Office of Personnel Management Director Jim King.

OPM's proposal implements several recommendations of the Clinton Administration's National Performance Review (NPR). It deregulates performance management and awards systems, giving agencies greater freedom to design flexible systems that fit the culture of their organization. As a result, employees would get more helpful feedback on their performance, and organizations could devise more credible methods to distribute rewards that recognize results.

"Successful Performance Management programs should be like snow-flakes, that is, no two should look exactly alike," said Jim King. "Our proposal would give agencies the authority to determine the shape of their own appraisal and awards systems so that they fit the needs and culture of the agency. And of course, OPM is ready to provide expert support and consultation services."

Persons to be rated under the new system would include non-SES employees under the General Schedule, including supervisors and persons previously evaluated under the now-defunct Performance Management and Recognition System. Prevailing rate employees also would be evaluated under the system.

Agency-designed systems still would need to conform to regulatory requirements and governmentwide guidelines established by OPM. However, OPM expects there will be fewer regulatory requirements.

One other important feature of the proposal is its recognition of the growing presence of "work teams" in the workplace and the need to evaluate and reward the accomplishments of a team as a whole.

As recommended by the NPR, the proposal encourages cooperation between labor and management and suggests that agencies involve employees and their representatives in the design and implementation of any performance management system. The NPR, in its recommendations on human resource management reform, said early employee involvement is critical to the success of any performance management program.

OPM proposes to let agencies design performance management programs that use at least two rating levels and as many as five rating levels to evaluate employees on critical and non-critical performance elements. Agencies could decide to retain the current five-level rating system. OPM is proposing no changes to the way performance ratings affect an employee's retention standing in a reduction-in-force.

The five performance rating levels currently used are "outstanding," "exceeds fully successful," "successful," "minimally successful," and "unacceptable." These rating levels would be retained and used in various combinations, depending on the number of rating levels that comprise an agency's evaluation program.

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Web page created 2 December 1997