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August 1997 Update on Employee Appraisal Systems In the past, we've reported on the redesign of agency performance appraisal systems as a result of the 1995 changes to the performance management regulations. We want to update that report for you here. To date, the Office of Personnel Management (OPM) has approved revised appraisal systems for agencies covering about 98 percent of Federal employees subject to OPM appraisal regulations, excluding the Senior Executive Service. Variety. The changes these appraisal systems made have been varied. Many agencies have implemented flexible appraisal systems that allow decentralized program design and broad operating parameters including the use of multiple summary rating patterns. Flexible appraisal systems allow agencies to design and redesign appraisal programs without having to seek OPM approval whenever changes are needed. Several large agencies such as the National Aeronautics and Space Administration, Social Security Administration, and the Departments of Education and the Interior have implemented pass/fail appraisal programs agencywide. Other agencies use a variety of summary level patterns in their programs.
Rating-Based Awards. Some agencies no longer base awards on performance ratings. In many of these agencies, rating-based (performance) awards used to be given automatically to employees who attained certain ratings at or above the Fully Successful level. Now these agencies use special act and other awards to recognize notable employee contributions.
The Results Act. As agencies strive to meet the requirements of the Government Performance and Results Act (the Results Act) of 1993, they are recognizing that improved employee performance helps them achieve agency goals. (The Results Act requires agencies to set goals, measure performance, and report on their organizational accomplishments.) Consequently, agencies are using regulatory flexibilities to develop performance elements and standards and recognition mechanisms that link individual and team performance to organizational goals.
Multiple Raters. Some agencies have shown strong interest in multi-rater (360-degree) assessment, which collects information about an employee's performance from a variety of sources including peers, internal and external customers, subordinates, and the employees themselves. This input is used either as part of the final rating of record or for developmental feedback which provides to the employee richer information than what is available from the supervisor alone.
Evaluating Appraisal Programs. Agencies are making changes that will enable them to meet their goals and improve employee performance. Many have completed an appraisal cycle and are evaluating the effectiveness of their appraisal programs. As agencies make improvements and changes, we will continue to keep you updated on their progress, insights, and solutions to organizational concerns.
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