August 1995

Performance Management Deregulation

Celebration time is here! You've been waiting - We've been waiting. We can announce (with great joy and relief!) that a new era for performance management has finally arrived! Final rules that deregulate performance appraisal and awards are effective September 22, 1995.

One of the options introduced by the new regulations is the use of two-level performance appraisal. "Pass/Fail" appraisal is something that many agencies have been long awaiting. But pass/fail is not the only new flexibility available.

Now it is much easier to factor group performance into an individual's performance appraisal using non-critical elements and additional performance elements. In the past, "non-critical" meant "not as important." However, programs can be designed so that non-critical elements have as much or more weight than critical elements in determining the final summary level. Additional performance elements can address any other performance that may be planned, monitored, and recognized. Since it is only through non-critical and additional performance elements that group performance can be factored into the performance plan, they can be useful tools for setting group goals, planning group work, monitoring and providing feedback on group performance, and rewarding group results.

More than half of those who commented on the proposed regulations requested a change to the reduction-in-force (RIF) regulations pertaining to the link between performance ratings and additional service credit. OPM will review the RIF regulations and consider whether any changes to the RIF retention provisions would be beneficial and appropriate.

We'll be issuing guidance to help agencies implement the new regulations. Upcoming issues of Workforce Performance will provide articles on a wide variety of topics, exploring the flexibilities within the new performance management regulations. We'll use this newsletter to let you know of other guidance materials available and how to obtain them.