“Working Smarter for America”

U.S. Department of Health and Human Services

Performance Management
Appraisal Program (PMAP)
Handbook
A Resource Guide for
Supervisors and Employees
Office of the Secretary
Office of Human Resources
HHS PMAP Handbook

TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................... 4
IMPORTANCE OF PERFORMANCE MANAGEMENT ...................................................................... 5
PLANNING ....................................................................................................................................................... 6
Developing Performance Plans ............................................................................................................. 6
Employee Performance Plan: HHS Form 704B ............................................................................... 7
Administrative Requirements Element .............................................................................................. 8
Performance Elements............................................................................................................................. 9
Performance Standards......................................................................................................................... 10
Benchmark Standards .......................................................................................................................... 11
Employee Participation ......................................................................................................................... 13
Documenting Elements and Standards........................................................................................... 14
MONITORING PERFORMANCE ............................................................................................................ 14
Feedback During the Performance Cycle ........................................................................................ 14
Midyear Review ........................................................................................................................................ 15
DEVELOPING EMPLOYEES ................................................................................................................... 15
Formal Employee Development .......................................................................................................... 15
Informal Employee Development ....................................................................................................... 16
RATING EMPLOYEES............................................................................................................................... 17
Roles of the Rating Official ................................................................................................................... 17
REWARDING PERFORMANCE.............................................................................................................. 18
Performance Award Eligibility ............................................................................................................. 18
ADDRESSING POOR PERFORMANCE............................................................................................... 19
Partially Achieved Expected Results Level ...................................................................................... 19
Achieved Unsatisfactory Results Level............................................................................................. 19
Unsatisfactory Performance Vs. Misconduct ................................................................................. 20
SUPERVISOR’S CHECKLIST FOR APPRAISALS........................................................................... 20
Meeting with Employees ....................................................................................................................... 20
Conducting Midyear Reviews .............................................................................................................. 21
Conducting End-of-Year Reviews ...................................................................................................... 21
EMPLOYEE’S CHECKLIST FOR APPRAISALS............................................................................... 22
Advantages of a Midyear Review to the Employee ....................................................................... 22
Employee Preparation for the Midyear Review .............................................................................. 22
Employee Preparation for the End-of-Year Review ...................................................................... 23
Employee Discussion During the End-of-Year Review ............................................................... 24
DEVELOPING THE INDIVIDUAL DEVELOPMENT PLAN (IDP) ................................................ 24
Goals of the IDP ....................................................................................................................................... 24

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Employee’s Responsibilities for an IDP............................................................................................ 26

Rating Official’s Responsibilities for an IDP ................................................................................... 26
QUESTIONS AND ANSWERS ................................................................................................................. 27
Awards In General .................................................................................................................................. 27
Performance-Based Awards ................................................................................................................. 27
Time-Off Awards ...................................................................................................................................... 28
The Performance Appraisal .................................................................................................................. 29
Labor Relations ........................................................................................................................................ 31
Quality Step Increase (QSI).................................................................................................................. 32
Performance Plans .................................................................................................................................. 32
GUIDE FOR NON-STANDARD SITUATIONS.................................................................................... 35
DEFINITIONS .............................................................................................................................................. 37
APPENDIX I: HANDBOOK ON CASCADING GPRA GOALS ....................................................... 39

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INTRODUCTION
Managing employee performance is an integral part of the work that all managers and rating officials
perform throughout the year. It is as important as managing financial resources and program
outcomes because the degree of employee performance has a profound effect on both the financial
and programmatic components of any organization.

The Performance Management Appraisal Program (PMAP) policy of the Department of Health
and Human Services is designed to document the expectations for both individual and
organizational performance, provide a meaningful process by which employees can be
rewarded for noteworthy contributions to the organization, and provide direction to improve
organizational success at every level.

To accomplish these objectives, managers need to identify organizational goals to be

accomplished, communicate individual and organizational goals to employees that support the
overall strategic mission and the Government Performance and Results Act (GPRA) goals of
the Department, monitor and evaluate employee performance, and use performance as a
basis for appropriate personnel actions including rewarding noteworthy performance and
taking remedial action to improve performance not meeting expectations.

The Office of Personnel Management (OPM) defines performance management as the

systematic process of:

 Planning work and setting expectations.

 Continually monitoring performance.

 Developing the capacity to perform.

 Periodically rating overall performance.

 Rewarding noteworthy performance.

This HHS PMAP Handbook complements the Department’s PMAP policy, dated April 6, 2015,
and provides supervisors and employees with a uniform working guide for the day-to-day
administration of performance management. This handbook is intended to help supervisors
manage employee performance that is aligned with and in support of organizational goals.
This handbook includes step-by-step explanations, and easy-to-follow checklists, for activities
conducted throughout the performance cycle, and it standardizes working procedures to
ensure consistent conformance to Departmental requirements. As such, this handbook serves
as a valuable training resource especially as a quick overview of performance management
requirements for supervisors and employees, including new employees.

This handbook provides information and guidance and must not be construed to contradict
Departmental PMAP policy or any Collective Bargaining Agreement. Please direct all questions and
concerns to the Performance Management Division, Office of the Secretary, at
OSPMAP@HHS.GOV.

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IMPORTANCE OF PERFORMANCE MANAGEMENT

In today's workplace, performance improvement and the role of performance management are
increasingly popular topics. Why the intense focus on performance management now? Business
pressures are ever-increasing and organizations are now required to become even more effective
and efficient, execute better business strategies, and do more with less to remain competitive.

The primary reason to ensure performance management processes are functioning properly is to
tighten the link between strategic business objectives and day-to-day actions. Effective goal setting
(including timelines), combined with a method to track progress and identify obstacles, contribute to
success and bottom-line results. Regularly tracking progress against performance goals and
objectives also provides the opportunity to recognize and reward employees for performance and
exceptional effort, contributing to job satisfaction, and productivity.

What is the impact of a poorly structured and implemented performance management process? If
individual goals are not aligned with business strategy, then time and resources are wasted. Low
employee engagement levels may mean that individuals are not performing at their best. Inconsistent
evaluation criteria and rewards can lead to mistrust, lower productivity, and higher attrition. If top
performers see no differentiation in performance ratings, no opportunities, and unfair compensation
for under-performers, morale can suffer. Lack of documentation, visibility, and accountability can
negatively affect stakeholders who are demanding more transparency. If accurate performance
information is unavailable, or difficult to access, training and development decisions, along with
project assignment decisions, may not be made in the Department’s, or in the individual's, best
interests. An annual process will not adequately alert managers to problems in a timely manner.
Last, but not least, a lack of proper documentation related to performance may result in legal issues.

Management "buy-in" is essential to the performance management process. When management

does not understand the importance and value of the process, the results can range from consistently
late or incomplete appraisals to employee-management mistrust, avoidance of performance
discussions, and a lack of honest performance-related discussions. Additionally, managers may feel
unprepared to deliver quality feedback and to oversee effective performance discussions.

Frequently, when performance management is mentioned, people think of the employee performance
appraisal or review. Performance management, however, involves much more. Properly constructed
appraisals should represent a summary of an ongoing and year-long dialogue. An effective
performance management process enables managers to evaluate and measure individual
performance and optimize productivity by:

 Aligning individual employee's day-to-day job responsibilities with strategic business

objectives.

 Providing visibility and clarifying accountability related to performance expectations.

 Documenting individual performance to support compensation and career planning decisions.

 Establishing focus for skill development and learning opportunities.

 Creating documentation for Departmental purposes to support decisions and reduce disputes.

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Many of the practices that support performance also positively impact job satisfaction, employee
retention, and engagement; as well as trust and loyalty. Performance management practices include:

 Delivering regular relevant job feedback.

 Setting and communicating clear performance expectations.

 Clearly linking performance to compensation.

 Evaluating performance and delivering incentives in a fair and consistent manner.

 Providing appropriate learning and development opportunities.

 Recognizing and rewarding top performers.

Employees want to feel successful, to do well at their job, and feel they are making a valuable
contribution. To ensure this happens, employees need a clear understanding of individual goals and
how they fit into the larger organization. When effectively implemented, the best practices of
performance management result in a wide range of benefits and successes for employees,
managers, and the overall organization in the following ways:
Organizational Benefits of Effective Performance Management
Department-wide Supervisors/Managers Employees
Savings Time Savings Clarification of Expectations
Retention Reduced Conflicts Improved Self-assessment
Performance Visible Accountability Improved Performance
Productivity Efficiency Job Satisfaction

The Department is taking steps to implement innovative solutions that ensure processes deliver real
results and improve performance. The purpose of this handbook is to provide concrete guidelines
and practical steps that can be used to facilitate improvements to the Department’s performance
management processes.

PLANNING
In an effective organization, work is planned in advance. This includes setting performance
expectations and goals for individuals to channel efforts toward achieving organizational objectives.
Involving employees in the planning process is essential to their understanding of the goals of the
organization and expectations, what needs to be done and why for accomplishing those goals.

Developing Performance Plans

The regulatory requirements in 5 CFR 430 for defining an employee’s performance expectations
include establishing elements and standards in an employee-specific performance plan. The
employee’s performance plan outlines the specific critical job elements for which the employee will be
held individually accountable during the rating cycle and that must be successfully completed for the
organization to satisfactorily carry out its mission and the standards against which the employee’s
performance will be measured; i.e., how well the employee must perform on each element to be
appraised at a specific level. Performance elements and standards should be linked to strategic

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organizational goals, and be results-focused, measurable, understandable, verifiable, equitable,

achievable, and provide for meaningful distinctions between levels of performance. In addition, an
employee performance plan should be flexible so that it can be adjusted, as necessary, to reflect
changing program objectives and work requirements. When used effectively, performance plans can
be beneficial working documents that support frequent progress discussions between employee and
supervisor; not merely paperwork that is filed and seen only when ratings of record are required.

A technique for establishing a performance plan is to use the “SMART” approach:

 Specific: Goals and expectations are specific and clearly defined.

 Measurable: Outcomes are evaluated against quantifiable standards.

 Attainable: Goals or results/outcomes are achievable and realistic.

 Relevant: Goals are results-based and advance the operational and strategic mission
objectives of the organization.

 Timely: Goals are time-bound and results are measured in terms of deadlines, due dates,
schedules, or cycles.

Employee Performance Plan: HHS Form 704B

A critical element is an assignment or responsibility of such importance that unsatisfactory

performance in that element alone would result in a determination that the employee’s overall
performance is unsatisfactory. As defined by regulation, failure on one or more critical elements can
result in the employee’s reassignment, removal, or change to a lower grade. Consequently, critical
elements must describe work assignments and responsibilities that are significantly influenced by an
employee’s work effort and within the employee’s control.

The Department’s Employee Performance Plan template includes two categories of critical elements:
(1) Administrative Requirements; and (2) Individual Performance Outcomes; the latter of which
describes organization-specific individual management and program outcomes that will contribute to
the success of the OpDivs/StaffDivs and the Department’s strategic mission goals and objectives.
These elements describe the work assignments and job responsibilities for which each employee is
individually accountable. Both the Administrative Requirements and each of the elements in the
Individual Performance Outcomes are assessed as critical performance elements.

For most employees, this means that critical elements cannot describe a group’s performance.
However, a supervisor or manager can and should be held accountable for seeing that results
measured at the group or team level are achieved. Critical elements assessing group performance
may be appropriate to include in the performance plan for a supervisor, manager, or team leader who
can reasonably be expected to command the production and resources necessary to achieve the
results—that is, held individually accountable.

Supervisors and managers may use several documents and/or sources to assist them in determining
the appropriate critical performance elements for their employees. These include but are not limited
to:

 Goals and objectives outlined in the Department’s Strategic Plan.

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 Specific performance goals established for a given program area as outlined in the
Department’s annual performance plan.

 OpDiv/StaffDiv specific program goals and objectives.

 Functional area/organizational goals and objectives.

 Employee Position Description.

 Laws and/or regulatory requirements.

 Customer/stakeholder feedback.

 Employee input.

Administrative Requirements Element

Department policy requires an Administrative Requirements critical performance element. The

Administrative Requirements critical element describes successful performance in responsibilities that
are common to most supervisory and non-supervisory employees. For all staff, performance plans
shall include the following administrative performance requirements. Supervisors should determine
which of these areas apply to each position under his/her supervision. Not every position will include
responsibility for every one of these areas.

 Provides responsive service to internal/external customers that support customer and program
requirements.

 Participates with supervisor in establishing individual performance plans and provides self-
assessments.

 Identifies and communicates individual developmental needs consistent with the Department’s
mission, assists co-workers by mentoring, advising, or guiding them in understanding work
assignments as appropriate.

 Actively identifies, communicates, and implements quality improvements that ensure

attainment of workforce goals.

 When applicable, identifies and addresses weaknesses in grant systems, procurement

systems, and finance offices to ensure recovery of improper payments and to reduce the
number of improper payments made by the Department.

 Other aspects described by the rating official.

For supervisors, managers, and team leaders, performance plans also shall include the following
critical administrative performance requirements. Performance of supervisory/managerial duties will
be carried out in accordance with regulatory requirements and other OpDiv/StaffDiv policies
governing the duties and responsibilities listed below:

 Actively engages in the hiring process with the assigned Human Resources specialists from
process initiation to completion of on-boarding. This includes ensuring the established hiring
process timelines are met.

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 Communicates program and management goals to staff, identifies targeted results/outcomes,

and timeframes. Allocates and adjusts resources in response to workload and priority
changes.

 Plans, organizes, and assigns unit work.

 Establishes employee performance plans and completes required reviews and final ratings.

 Appropriately recognizes and rewards employee performance.

 Assesses employees' individual developmental needs and provides developmental

opportunities to staff.

 Ensures employee awareness of, and compliance with, requirements relative to ethics,
financial disclosure, avoiding conflicts of interest, standards of ethical conduct, political activity,
and procurement integrity.

 Demonstrates support for EEO/Diversity and employee work-life quality and fosters a
cooperative work environment where diverse opinions are solicited and respected.

 Seeks resolution of workplace conflicts at earliest stage.

 Where applicable, ensures that Departmental, OpDiv/StaffDiv, and program goals and
requirements for correcting grant, procurement, and finance system weaknesses are achieved
or exceeded.

 Other aspects described by the rating official.

Performance Elements

This category identifies the key individual performance outcomes and specific end-results that are
critical to the success of the Department and the OpDivs/StaffDivs. These results-oriented outcomes
should be consistent with strategic planning initiatives, such as the Department’s Strategic Plan and
OpDiv/StaffDiv program goals and objectives, and must include one or more outcomes that are linked
to the strategic mission and/or GPRA goals of the Department, OpDiv/StaffDiv, and/or the work unit.
Managers should limit the number of outcomes to the three (3) to five (5) most important aspects of
the employee’s position.

Rating officials will determine which appropriate GPRA/mission strategic goals, outcome goals, and
outcome-performance measures are best-suited to define the critical performance elements and
evaluation standards for each employee’s performance plan. Performance elements should be
clearly labeled on the employee’s performance plan. This cascade approach should ensure that
performance plans for all employees support the organizational goals of the Department.

Each performance element should include at least one accompanying metric that is quantifiable and
results-based, and each metric should contain a specific target-result to be achieved. Metrics should
address significant program outcomes and improvements such as enhanced quality of service or
healthcare, new knowledge and insight from research, increased productivity and quality of service,
and/or improvements in customer satisfaction.

All objectives must be achievable by the end of the rating period. If quantifiable performance results
will not be available by the end of the rating period, the plan must specify how success will be

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measured. Data sources for all metrics must exist, or must be available in time to meet the rating
completion deadline. For metrics that are expressed as comparisons to past performance, for
example, to increase production by ten (10) percent, baseline data must be available.

Performance Standards

The Performance Standards define the performance levels, requirements, or expectations that must
be met for each element to achieve a particular level of performance. The standards must be
focused on results and include credible measures at the Achieved Expected Results level, and at the
Partially Achieved Expected Results level, if employee performance falls below the Achieved
Expected Results level. Types of Standards to consider include the following:

 Quality: Quality addresses how well the employee or work unit is expected to perform the work
and the accuracy, appearance, usefulness, or effectiveness of the final product. Measures can
include customer satisfaction rates determined through a customer survey/feedback.

 Quantity: Quantity addresses how much work the employee or work unit is expected to
produce. Measures are expressed as the expected number of completed products or services.

 Timeliness: Timeliness addresses time-based deadlines within which the employee is

expected to produce the work.

 Cost-Effectiveness: Cost-effectiveness addresses dollar savings or cost control. Cost-

effectiveness measures should address specific resource levels or constraints (money,
personnel, or time) that can be documented and measured such as maintaining or reducing
unit costs, reducing the time it takes to produce or provide a product or service, or reducing
waste.

To develop specific measures, the rating official must determine the type or types of standards that
realistically can be used to assess the outputs, outcomes, or results and progress toward goals for a
given element, and then determine the measures and minimum results/outcomes/outputs that are
required to achieve the specified performance level of performance. Rating officials should be careful
that the Achieved Expected Results Standard allows room for errors. Allowing no room for error,
referred to as an “absolute” retention standard, is permissible only when an agency can clearly
defend the need for perfection; for example, when a single failure would result in loss of life, injury,
breach of national security, or significant monetary loss. In addition, each standard should carefully
define the outcomes or results required to achieve the specified level of performance; not backwardly
describe an unacceptable performance level. An example of a backwards standard might be: “makes
more than four (4) errors per document.” This would allow an employee to make one-hundred (100)
errors and still be rated at the Achieved Expected Results level.

Questions that may help determine whether you are writing an absolute standard include:

 How many times may the employee fail this requirement and still be performing at the
Achieved Expected Results level?

 Does the Standard use words such as “all”, “never”, and “each”? These words do not
automatically create an absolute standard, but they often alert you to problems.

Questions that may help determine whether you are writing a backwards standard include:

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 Does the standard express the level of work the rating official needs to see or does it describe
negative performance? For example, does it state: “requires assistance more than fifty (50)
percent of the time?” A better choice is: “works independently at least fifty (50) percent of the
time.”

 If the employee did nothing, would he/she meet the standard, as written? For example, does it
state: “completes fewer than four (4) products per year.” A better choice is: “no more than
three (3) products are incomplete at the established deadline.”

The Benchmark Standards listed below are listed on the HHS Form 704B and may be used to
describe required performance levels for all critical elements. Using the described benchmark
standard is not mandatory. However, if the benchmark standards below are not used, standards
developed by the rating official should require levels of performance that are essentially equivalent to
that described by the benchmark standard at each level. When benchmark standards are used,
additional specific, measurable criteria must be developed at the Achieved Expected Results level for
each critical element except the Administrative Requirements critical element. While each and every
criterion described in the benchmark standards will not have to be met by the employee in absolute
terms to assign a particular rating level, the rating official must ensure the employee understands the
overall level of performance he/she is expected to meet to be assigned a given rating level. The
Administrative Requirements critical element may be applied without modification and the benchmark
standards do not need any augmentation. While 5 CFR 430 requires specific, measurable criteria to
be identified at the Achieved Expected Results level, rating officials are strongly encouraged to
develop measurable criteria at all levels so employees fully and clearly understand their performance
expectations.

Benchmark Standards

Level 5: Achieved Outstanding Results (AO): Consistently superior, significantly exceeds Level 4
(AM) performance requirements. Despite major challenges such as changing priorities, insufficient
resources, unanticipated resource shortages, or externally driven parameters, employee leadership is
a model of excellence. Contributions impact well beyond the employee’s level of responsibility. They
demonstrate exceptional initiative in achieving results critical to Departmental success and strategic
goals. Products and skills create significant changes in their area of responsibility and authority.
Indicators of performance at this level include outcomes that consistently exceed the AM level
standards for critical elements described in the annual performance plan. Examples include:
 Innovations, improvements, and contributions to management, administrative, technical, or
other functional areas that have influence outside the work unit.

 Increases office and/or individual productivity.

 Improves customer, stakeholder, and/or employee satisfaction, resulting in positive

evaluations, accolades, and recognition, methodology is modeled outside the organization.

 Easily adapts when responding to changing priorities, unanticipated resource shortages, or

other obstacles.

 Initiates significant collaborations, alliances, and coalitions.

 Leads workgroups or teams, such as those that design or influence improvements in program
policies, processes, or other key activities.

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 Anticipates the need for, and identifies, professional developmental activities that prepare
staff and/or oneself to meet future workforce challenges.

 Consistently demonstrates the highest level of ethics, integrity, and accountability in achieving
specific Departmental, OpDiv/StaffDiv, or program goals, and makes recommendations that
clarify and influence improvements in ethics activities.

Level 4: Achieved More than Expected Results (AM): Consistently exceeds expectations of Level
3 (AE) performance requirements. The employee continually demonstrates successful collaborations
within the work environment, overcoming significant organizational challenges such as coordination
with external stakeholders or resource shortfalls. Employee works productively and strategically with
others in non-routine matters, some of which may be complex and sensitive. The employee
consistently demonstrates the highest level of integrity and accountability in achieving Departmental
program and management goals. Employee contributions have impact beyond their immediate level
of responsibility. The employee meets all critical elements, as described in the annual performance
plan. Examples include:

 Effectively plans, is well-organized, and completes work assignments that reflect requirements.

 Decisions and actions demonstrate organizational awareness. This includes knowledge of

mission, function, policies, technological systems, and culture.

 Independently follows up on actions and improvements that impact the immediate work unit,
establishes and maintains strong relationships with employees and/or clients, understands
their priorities, balances their interests with organizational demands and requirements,
effectively communicates necessary actions to them and employee/customer satisfaction is
conveyed.

 When serving on teams and workgroups, contributes substantively and completely according
to standards identified in the plan.

Level 3: Achieved Expected Results (AE): Consistently meets performance requirements. Work is
solid and dependable and customers are satisfied with program results. The employee successfully
resolves operational challenges without higher-level intervention. The employee consistently
demonstrates integrity and accountability in achieving Departmental program and management goals.
Employee conducts follow-up actions based on performance information available to him/her.
Employee seizes opportunities to improve business results and includes employee and customer
perspectives. Examples include:

 Acquires new skills and knowledge to meet assignment requirements.

 Demonstrates ethics, integrity, and accountability to achieve Departmental goals.

 Resolves operational challenges and problems without assistance from higher-level staff.

Level 2: Partially Achieved Expected Results (PA): Marginally acceptable, needs improvement,
inconsistently meets Level 3 (AE) performance requirements. The employee has difficulties in
meeting expectations. Actions taken by the employee are sometimes inappropriate or marginally
effective. Organizational goals and objectives are met only as a result of close supervision. This is
the minimum level of acceptable performance for retention on the job. Improvement is necessary.

Examples include:

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 Occasionally fails to meet assigned deadlines.

 Work assignments occasionally require major revisions or often require minor revisions.

 Does not consistently apply technical knowledge to work assignments.

 Occasionally fails to adhere to required procedures, instructions, and/or formats on work

assignments.

 Occasionally fails to adapt to changes in priorities, procedures, or program direction.

 Impacts on program performance, productivity, morale, organizational effectiveness and/or

customer satisfaction need improvement.

Level 1: Achieved Unsatisfactory Results (UR): Undeniably unacceptable performance

consistently does not meet Level 3 (AE) performance requirements. Repeat observations of
performance indicated negative consequences in key outcomes (for example, quality, timeliness,
results, customer satisfaction, etc.) as described in the annual Performance Plan. The employee fails
to meet expectations. Immediate improvement is essential for job retention. Examples include:

 Consistently fails to meet assigned deadlines.

 Work assignments often require major revisions.

 Fails to apply adequate technical knowledge to completion of work assignments.

 Frequently fails to adhere to required procedures, instructions, and/or formats in completing

work assignments.

 Frequently fails to adapt to changes in priorities, procedures, or program direction.

Employee Participation

Supervisors and managers are strongly encouraged to involve their employees in establishing the
performance plan for the employees’ positions. Participation enables employees to more clearly
understand their roles and responsibilities and the level of performance that is required of them; as
well as the role their positions play in the mission of the organization. However, the final decision
regarding critical elements and standards always rests with the management official.

Employee participation may be accomplished in various ways, for example:

 Employee and rating official jointly developing the performance plan.

 Employee providing the rating official with a draft plan.

 Rating official providing the employee with a draft plan.

 Employee writing one of the critical elements that he/she performs in his/her position.

Once finalized, the employee is asked to sign the performance plan to acknowledge receipt of the
plan and established performance expectations. If an employee declines signature, the supervisor
should explain that the signature indicates receipt, not agreement. In cases where an employee

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refuses to sign a plan, the supervisor is authorized to implement the performance standards without
employee agreement. Supervisors should annotate the employee’s refusal to sign in the employee’s
signature block.

Documenting Elements and Standards

The critical elements and standards described at the Achieved Expected Results level, at a minimum,
must be documented on the performance plan and signed by the rating official and the employee. In
addition, an OpDiv/StaffDiv may require the reviewing official to review/approve the performance
plan.

MONITORING PERFORMANCE
Feedback during the Performance Cycle

Performance plans should be developed and implemented within thirty (30) calendar days of the
following:

 beginning of the appraisal period;

 employee’s entrance on duty;

 assignment of an employee to a detail or temporary promotion scheduled to exceed ninety (90)

calendar days; or

 assignment of an employee to a new position.

Effective and timely feedback during the performance appraisal period addressing employee
performance against the established performance elements and standards is an essential component
of a successful performance management program. Employees need to know in a timely manner
how well they are performing and if there are areas that require improvement. Feedback can come
from many different sources, such as observation by managers and rating officials, measurement
systems, feedback from peers, and input from customers. The rating official is responsible for
determining the types, sources, and means of collecting the data and feedback that most accurately
gauge performance, to ensure that each of the supervisor’s employees receives an accurate,
effective, and timely rating.

When providing feedback, the following concepts are important:

 Feedback works best when it relates to a specific goal, such as those established in the
employee’s performance plan. Basing feedback on the employee’s performance against the
elements and standards is critical to providing tangible, objective, and powerful feedback.
Telling an employee that he/she is doing well because she exceeded her goal by ten (10)
percent, for example, is more effective than simply saying “you're doing a good job.”

 Employees should receive information about how they are doing in as timely a fashion as
possible. If performance improvement is required, the sooner the employee is advised of the
deficiency, the sooner he/she can take steps to correct the problem. Conversely, if a goal has
been exceeded, the sooner the employee receives positive feedback, the greater the impact
and sense of appreciation for the achievement.

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 Feedback should be provided in a manner that will best help performance. This is not to say
that feedback should be exaggerated or under-stated. On the contrary, feedback should be
accurate, factual, and complete to most effectively reinforce what the employee has done well,
and what the employee needs to do to improve his/her performance.

Midyear Review

An important part of the performance management process is ensuring that each employee receives
at least one formal progress review during each appraisal period; approximately midway through the
rating cycle. A formal rating is not assigned for progress reviews, nor is a written narrative required
unless performance is below the Achieved Expected Results level. Completion of the progress
review is acknowledged on the employee’s performance plan with signatures from both the rating
official and the employee. While only one progress review is required, rating officials are encouraged
to frequently discuss performance with subordinate employees during the appraisal period. This is
particularly critical in the case of an employee who is not performing at the Achieved Expected
Results level. In this case, it may be advisable to establish regular feedback sessions with the
employee.

Topics which may be discussed in a performance review include:

 Communication with internal and external customers and constituents.

 Training requirements and opportunities for development.

 Perceptions of work (challenging, fulfilling).

 Getting/giving regular, sufficient, and specific feedback.

 Any further support the employee may need.

Rating officials should document employee performance, both good and when improvement is
needed, throughout the year. Rating officials should provide specific examples to the employee
during progress reviews, during the rating of record, and at other appropriate times throughout the
year.

DEVELOPING EMPLOYEES
The process of performance management provides an excellent opportunity to identify developmental
needs. During planning and monitoring of work, deficiencies in performance become evident and can
be addressed. Areas for improving good performance also stand out, and action can be taken to help
successful employees improve even further.

Developing employees is more than just training employees. Developing employees covers all efforts
to foster learning, which happens on the job every day. When organizations focus on developing
their employees' capacity to perform, rather than just training them, employees will be able to adapt to
a variety of situations which is vital for the achievement of individuals and the organization.

Formal Employee Development

Employee development can be either formal or informal. Formal development may include:

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 Traditional training in structured courses, classrooms, and formal development programs.

 Details provide valuable experience for growth and additional skill sets.

 Self-study courses including those using computer-based platforms.

A means of identifying formal training for an employee is by establishing an Individual Development

Plan (IDP) through an approach of: (1) Assessment; (2) Discussion; and (3) Implementation, as
follows:

 Assessment: The employee reviews prior job experience, training, education, and other
developmental experiences to provide concrete information regarding current strengths and
skills. This could include a review of past applications for employment and past training
records. The employee reviews the standards for work performance to determine core
competencies necessary for the job and past performance evaluations for indications of areas
needing improvement, and identifies core skills specific to that need. The employee assesses
personal career goals and determines immediate and long-term steps toward achieving the
goals. The employee identifies specific opportunities for developmental experiences and
researches possible sources for development. The employee may seek out career counseling
from a variety of sources including peers, current and past supervisors, and the Human
Resources staff. The supervisor is available for clarification and counseling.

 Discussions: To obtain mutual commitment between the supervisor and the employee, open
discussion is necessary. The employee and supervisor should mutually agree to discuss the
results of the assessment and the draft IDP prepared by the employee. The discussion
includes perspectives on organizational needs, job requirements, the employee’s strengths
and developmental needs, financial limitations, timing, and learning opportunities that the
supervisor will actively support. The supervisor coaches the employee by giving open and
constructive feedback, identifying challenging assignments, discussing career paths in the
organization, and reasonable timeframes for meeting the objectives of the IDP. The supervisor
and employee should sign a completed IDP based on mutual agreement or final decisions of
the supervisor.

 Implementation: The employee ensures that any necessary procurement or training request
forms are prepared and monitors work that is assigned to best accomplish the IDP’s
developmental experiences. The employee reports on completion of items in the IDP. The
supervisor and the employee meet periodically throughout the year to review and update the
IDP. OpDivs/StaffDivs may require the use of an IDP at their discretion. Supervisors and
employees should check with their Human Resources Office for the IDP or other appropriate
forms to be used for documenting employee development needs.

Informal Employee Development

While managers have a large influence over formal training, they have even greater impact on
creating a climate for informal employee development, which can take a wide variety of forms, some
of which are listed below:

 Feedback is a natural part of the monitoring process of performance management, but specific
and timely feedback to employees about their performance against established expectations
also provides the foundation for discussing developmental needs.

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 Job rotations and special assignments can stretch and challenge employees and broaden their
understanding of the organization.

 Coaching and counseling provides individualized advice and instruction.

 Mentoring helps employees clarify career goals, understand the organization, analyze
strengths and developmental needs, build support networks, and deal with roadblocks.

 Using the manager as an informal teacher acknowledges that managers consciously teach
employees through their own model, habits, and system of values.

 Learning teams can form to meet regularly to focus on improving performance.

Although informal developmental strategies cost very little, they have potentially big payoffs in terms
of improved individual and team performance.

RATING EMPLOYEES
Roles of the Rating Official

Rating employees means evaluating employee performance against the elements and
standards in an employee's performance plan and assigning a rating of record. Rating officials
should compile performance data from all appropriate sources as a part of the rating process.
It also is a good idea to ask employees to track their own progress using data identified during
the planning phase so they can provide a complete account of their accomplishments during
progress reviews and as part of the final rating process. The rating official, as appropriate,
also should consult customers and colleagues, review the employee’s self-assessment and
other relevant performance documentation (e.g., production reports), and available feedback to
ensure he/she has a complete picture of the employee’s performance for the entire
performance period. The assigned rating reflects the level of the employee’s performance as
assessed against the standards established in the performance plan. If an employee does not
have an opportunity to perform a critical element during the rating period, no rating will be
assigned and the words “Not Rated” should be written on the performance plan for that
element.

When assigning a rating for each critical element, the rating official should:

 Carefully read each performance standard level beginning with the Achieved Expected
Results standard which is considered the base-level standard.

 Determine the level that best describes the employee’s performance on the element.
The sum of the employee’s performance of the element must, in the Rating Official’s
judgment, meet the assigned level’s criteria.

The rating official should conduct a thorough performance rating meeting with the employee that
conforms to the following guidelines:

 All required performance plan actions and approvals have been completed.

 Schedule the meeting in a private and interruption-free location.

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 Conduct the session in a professional and calm demeanor, focused on performance and work-
related issues.

 Address each element with a discussion of noteworthy items, both positive and constructive,
and an explanation of the rating based on the relevant element and standards.

 Summarize the employee’s overall performance as it relates to the assigned rating of record.

 Provide adequate time for the employee to give input and feedback, ask questions, and
express concerns.

 Have the employee sign and date the performance plan.

 Sign and date the block for the rating official on the performance plan.

REWARDING PERFORMANCE
A basic principle of effective management is that performance is influenced by positive and negative
consequences. Positive consequences include rewards and recognition, promotions, Within-Grade
Increases (WGI), etc. Negative consequences may include counseling, reassigning, removing, or
downgrading the employee.

Performance Award Eligibility

Performance awards are an integral part of the performance appraisal process. As such, they are
linked to the rating of record and submitted and considered for approval only at the conclusion of the
rating period.

Employees whose summary rating is Achieved Outstanding Results may be eligible to receive a
performance award payment of up to five (5) percent of salary, including locality payment or special
rate supplement. This award is based on the salary as of the last day of the rating period (December
31).

Only employees who receive an Achieved Outstanding Results rating may be eligible for a Quality
Step Increase (QSI). Employees who are rated at the Achieved More than Expected Results,
Achieved Expected Results, Partially Achieved Expected Results, or Achieved Unsatisfactory Results
may not be considered for a QSI. Only General Schedule (GS) employees are eligible to receive a
QSI. QSIs must be awarded based on an Achieved Outstanding Results rating for the previous rating
cycle and not for midyear performance accomplishments. In addition, an employee may not receive
both a QSI and a cash award for the same performance and a QSI may not be granted to an
employee who has received a QSI within the preceding fifty-two (52) consecutive calendar weeks.
QSIs are not automatic and may be awarded at management’s discretion and subject to funds
availability.

Employees whose performance is Achieved More than Expected Results may be eligible for a
performance award of up to four (4) percent of salary. Employees whose performance is Achieved
Expected Results may be eligible for a performance award of up to three (3) percent of salary. The
locality payment or special rate supplement, apply to both the Achieved More than Expected Results
and Achieved Expected Results performance ratings. All awards are at the discretion of

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management and subject to funds availability. According to OPM, no employee is entitled to an

award.

Employees who receive Partially Achieved Expected Results or Achieved Unsatisfactory Results
ratings are not eligible for performance rating-based awards.

OpDivs/StaffDivs may also recognize employees for short-term accomplishments using other award
types, such as Special Act/Special Service awards and Time-Off awards, as appropriate. Refer to the
awards section of this handbook.

ADDRESSING POOR PERFORMANCE

At any time in the performance appraisal cycle that an employee’s performance is not meeting
performance expectations, the supervisor must take prompt and appropriate actions to improve the
performance. This should include contacting the servicing Labor and Employee Relations (LER)
office for advice and assistance. The LER office is available to provide guidance to rating officials for
documenting performance, providing feedback to the employee, and assessing additional appropriate
courses of action.

Partially Achieved Expected Results Level

An employee who is performing at the Partially Achieved Expected Results level cannot be granted a
WGI or a non-competitive promotion to a higher grade in a career ladder. Even if a WGI is not due,
when an employee is performing at the Partially Achieved Expected Results level, the supervisor
must advise the employee of his/her specific performance deficiencies and take appropriate steps to
assist the employee in correcting those deficiencies. An official Performance Improvement Plan (PIP)
is not required to deal with Partially Achieved Expected Results performance. It is used to deal with
performance at the Achieved Unsatisfactory Results level, as described below.

Achieved Unsatisfactory Results Level

If performance on any critical element is determined to be at the Achieved Unsatisfactory Results

level at any time during the rating period, the supervisor will provide assistance to help the employee
improve performance to the minimally acceptable level of Partially Achieved Expected Results, or
better. The supervisor must, at a minimum, give written notice to the employee of his/her failure to
demonstrate acceptable performance and provide the employee an opportunity to demonstrate
acceptable performance under a PIP. The written notification must include:

 The specific elements on which the employee’s performance is determined to be Achieved

Unsatisfactory Results, including specific examples of how the employee’s performance is
unsatisfactory.

 The performance requirements that must be met.

 The specific assistance that will be provided and the meeting schedule for feedback,
assistance, and coaching that will be established to help the employee improve performance.

 The specific period of time the employee will be given to demonstrate acceptable performance.

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 Notification that actions may be initiated to reassign, reduce in grade, or remove the employee
if performance does not improve to at least the Partially Achieved Expected Results level.

The employee must be given a reasonable period of time in which to demonstrate a Partially
Achieved Expected Results level of performance. The length of this reasonable opportunity period is
not dictated by regulation nor Departmental guidance. The reasonable period of time to improve will
be determined by management and may vary based on the requirements of the individual position
and the amount of time and effort previously devoted to correcting the employee’s performance
deficiencies. As a general rule, less time and effort are required in cases where the rating official has
properly and promptly managed performance and documented his/her efforts to resolve performance
problems. For bargaining unit employees, additional Collective Bargaining Agreement requirements
may apply. An employee who fails to improve under a PIP may be removed from federal service.

Supervisors must promptly contact and consult with the LER office for assistance in dealing with
unacceptable performance and/or employee misconduct concerns.

Unsatisfactory Performance Vs. Misconduct

It is important to note the distinction between performance at the Achieved Unsatisfactory Results
level and employee misconduct. Sometimes, misconduct can result in poor performance.
Sometimes performance and misconduct can be inter-related. However, it is important to recognize
the difference between the two and to take prompt and appropriate actions accordingly.

Performance at the Achieved Unsatisfactory Results level is failure of the employee to perform the job
at the required minimum retention level of Partially Achieved Expected Results. Misconduct is failure
to follow a workplace rule, code, or behavior, whether written or unwritten. Examples of misconduct
include tardiness, absenteeism, unprofessional or discourteous conduct, damaging or destroying
government property, or falsification. A misconduct problem also may exist when an employee is
capable of performing his/her duties at the Partially Achieved Expected Results level, or higher, but
chooses not to. Poor performance and/or misconduct can result in disciplinary action, including
removal.

SUPERVISOR’S CHECKLIST FOR APPRAISALS

Meeting with Employees

Giving and receiving feedback is one of the critical components of the performance appraisal
process. As a rating official, you should ensure that the feedback you provide is meaningful, that you
take the time to prepare, and that the employee has a chance to ask questions and provide input.
Meeting with your employees to discuss how they are doing can and should be very beneficial for
both of you, enabling you both to understand each other better. The more you know one another, the
greater the likelihood you will be able to effectively communicate on an ongoing basis, particularly
should a problem arise.

While you are encouraged to provide feedback to your employees on an on-going basis, Department
policy requires that you meet formally with employees at least once approximately midway through
the performance appraisal cycle, and once at the end of the rating year. These meetings are a
chance for you to engage in an open exchange with your employees about their performance.
Please be aware that these mandatory meeting requirements may be modified by the specific

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Collective Bargaining Agreements negotiated for your OpDiv/StaffDiv, so it is critical that you consult
your designated LER representative to ensure appropriate formal compliance requirements are met.

The following are examples of the subjects that are appropriate for one-on-one progress and
professional development meetings with each of your employees:

 Organizational expectations, individual performance standards, and specific feedback on the

work the employee did well and/or areas that need improvement.

 Information about the “big picture” and how the employee’s role, responsibilities, and
achievements contribute to mission/organizational goals.

 Feedback from the employee about how he/she feels about his/her job, whether he/she enjoys
the work and is ready for greater responsibilities, concerns about current work assignments,
and requests for guidance or assistance from you or co-workers.

 Professional development plans and opportunities; i.e., your employee’s career goals. These
meetings can be as simple as discussing training opportunities to better handle a specific
project or as broad as the employee’s long-term professional aspirations and plans (e.g.,
individual development plan).

Conducting Midyear Reviews

Prior to the midyear progress review, supervisors should prepare by considering the following:

 Request information from the employee on his/her key work accomplishments for the period
being discussed. Keep a “kudos” folder for each employee with key accomplishments that you
can refer to.

 If you have specific issues that you want to discuss with the employee, ensure that you are
prepared to discuss the specifics of the concerns, clearly and concisely.

 Think about and document what is most important regarding achievements and concerns for
you to share with the employee about his/her progress and overall performance.
 Write down what you feel the employee has done/accomplished/learned, what he/she
did particularly well, and any areas in which you feel the employee needs to improve,
including what they could have done better. You should include examples of specific
projects or assignments.
 Think about whether the employee has the skills you think he/she needs to do his/her
job well, and write down any skills you think need to be gained or improved.
 Write down the key points and questions you want to discuss during the meeting.

Conducting End-of-Year Reviews

During the end-of-year review discussion, review the employee’s performance during the current
performance period. Summarize key accomplishments, praise the employee for work that was
completed particularly well, advise the employee of work that could have been improved and/or areas
where he/she may need to focus more effort, etc. Offer examples and provide the employee an
opportunity to ask clarifying questions and provide additional information. This should be a two-way
dialogue, not a lecture.

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In addition:

 Ask the employee for feedback about the past year and for other information that you both can
use in working more effectively together in the future. For example, did the employee feel
appropriately supported; was the feedback the employee received, sufficient, useful, and
timely; and is the employee adequately trained and does he/she have the resources needed
to carry out his/her work.

 Ask the employee about his/her immediate and/or long-term career goals and offer
suggestions or resources to assist him/her with these goals, as appropriate.

 Clearly articulate your expectations for the coming year and confirm with the employee that
he/she understands the expectations. Be prepared to clarify any areas of confusion.

Once the review discussion is completed, both the manager and the employee sign the appraisal
form and the employee is provided with a copy of the completed appraisal.

EMPLOYEE’S CHECKLIST FOR APPRAISALS

Meeting with your supervisor for a midyear review to discuss how you are doing can be very
beneficial. Meeting with your supervisor to discuss your performance is beneficial for both of you,
enabling you both to understand each other better. The more you know one another, the greater the
likelihood you will be able to effectively communicate on an ongoing basis, particularly should a
problem arise. Examples of these benefits are listed below.

Advantages of a Midyear Review to the Employee

 The opportunity to obtain information directly from your supervisor about your performance
expectations and standards and to clarify, if there are questions, what is required to
accomplish noteworthy results.

 Direct performance feedback.

 Discussing the “big picture” about how you are doing overall and how the work you do
helps to accomplish important goals of the organization.

 The opportunity to provide feedback to your supervisor about your work experience; for
example, do you enjoy the work you do, are you ready for greater responsibilities (and how),
are there concerns about current work assignments, or do you need more guidance and
assistance from your supervisor or your co-workers.

 Professional development plans and opportunities; i.e., your career goals. Career discussions
can be as simple as discussing your interest in a training course to better handle a specific
project, to something as broad as your career aspirations and how you plan to get there.

Employee Preparation for the Midyear Review

Although your supervisor may schedule your midyear review meeting, you are a critical participant in
the discussion. In fact, you can and should identify your goals for the midyear review; for example,
suggestions for providing better customer service or specific feedback or coaching on a particular skill
area. In preparation for your midyear review, consider the following:

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 Prepare a list of key work accomplishments. Providing this list to your supervisor will ensure
that your significant accomplishments are not overlooked. In addition, you are prepared to ask
your supervisor for feedback on specific projects or assignments.

 If you have specific issues to discuss with your supervisor, give him/her a “heads up” so that
he/she can also be well-prepared for your discussion. Be prepared to discuss each issue
specifically, clearly, and concisely.

 What is most important for you to learn and/or find out about how you are doing? What did
you do particularly well? What are the ways you may have been disappointed or challenged in
how you performed?

 What feedback would you like to offer your supervisor? Be specific. For example: “I really like
it when you review and edit my drafts before they are put in final form, so that we do not waste
time revising documents at the last minute; or, “I really need to hear from you periodically
about how I am doing when I am working on a project, rather than assuming your silence
means I am doing fine.”

 Where do you see your career heading? Do you have the skills you feel you need to do your
job well? What skills might you want to work on better developing? How can your supervisor
help you achieve your career goals?

Employee Preparation for the End-of-Year Review

 Your end-of-year rating feedback discussion also can benefit you. To make the most out of
this discussion, prepare and submit to your supervisor, in advance, a written self-assessment
of your contributions, opportunities, and professional development. In addition, prepare written
notes of key or important points you wish to discuss. Your self-assessment should address
the following areas:
 Your specific major accomplishments, aligned to your performance plan.
 The factors that contributed to your success throughout the year.
 How well you met your day-to-day responsibilities; for example:
o How your work impacted the work unit, team members, customers, and the Department.
o The quality of your work and how it made things better.
o The responsibilities that were added or removed from your duties during the review
period, if any, and why these were added or removed.
o Your participation in, and achievements from, team or group activities.
 Any performance concerns, for example:
o The initiatives you wanted to complete this year but were unable and why.
o The obstacles that hindered you from accomplishing your work, if any.
o The additional support or direction you feel you need in specific areas.
 Professional development achievements. For example:
o The training programs or professional development activities you completed.

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o The ways in which you were able to apply this training and development to your
work.
o The responsibilities that require you to learn new or additional skills.

Employee Discussion During the End-of-Year Review

 Engage in a two-way discussion. Describe to your supervisor how the year went for you, the
ways you felt supported, where you might have benefited from additional feedback, or other
information that you can both use to work more effectively together in the coming year.

 Discuss your specific program plans and goals for the upcoming performance year.

 Share your short-range and long-range goals and describe what resources or support you
need to achieve these plans. Discuss with your supervisor available training resources or
materials that will help you execute your work.

 As necessary, ask your supervisor to clarify your performance expectations for the upcoming
performance year.

DEVELOPING THE INDIVIDUAL DEVELOPMENT PLAN (IDP)

The IDP is a valuable performance enhancement tool for any federal employee. The IDP can be of
great assistance to those who want to enhance skills and strengths and learn more about matters of
interest that are relevant to the performance of the Department. OpDivs/StaffDivs may require the
use of an IDP at their discretion. Contact the HHS University for the IDP or other appropriate forms
for documenting employee-development needs.

Goals of the IDP

The employee and the rating official develop IDP goals together. The IDP provides a connection
between the employee’s career interests and needs to the organizational mission and priorities. The
most common goals of an IDP are to:

 Learn new skills to improve current job performance.

 Maximize current performance in support of organizational requirements.

 Increase interest, challenge, and satisfaction in current position.

 Obtain knowledge, skills, and abilities necessary for career growth.

An IDP identifies a broad spectrum of developmental opportunities for the employee, including on-
the-job training, distance learning, formal classroom training, details, shadow assignments and self-
development. It addresses the needs of the organization and of the employee beginning with a focus
on maximizing employee performance in the current job.

An IDP is a guide to help individuals reach career goals within the context of organizational
objectives. It is a developmental action plan to move employees from their current place to where
they want to go. It provides the systematic steps to improve and to build on strengths as individuals
improve job performance and pursue career goals.

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An IDP is a partnership between the employee and the rating official for employee development.
Preparing an IDP involves open feedback, clarification, and discussion about developmental needs,
goals, and plans. Periodic communication between the rating official and the employee is the key to
the success of an IDP.

An IDP is not a:

 Performance appraisal. It is not used to determine pay, awards, or other personnel actions
based on performance.

 Contract for training. Final approval of training opportunities is made based on factors such as
timing and budget availability.

 Position Description. It is not used for clarifying discrepancies in the duties as described.

 Guarantee for promotion or for reassignment to another position. While the developmental
experiences identified in an IDP may have some training that might qualify the employee for
another position or grade, there is no guarantee of advancement.

One means to establish an IDP is by using the following Assessment, Discussion, and
Implementation approach:

 Assessment: The employee reviews prior job experience, training, education, and other
developmental experiences to provide concrete information regarding current strengths and
skills. This could include a review of past applications for employment and past training
records. The employee reviews the established performance standards to determine core
competencies, skills, and learning opportunities necessary for the job. The employee
assesses personal career goals, within the context of established performance requirements
and organizational needs, and constructs both an immediate and a longer-term plan to achieve
his/her learning goals. The employee may seek guidance from peers, current and past
supervisors, or HHS University. The supervisor should ensure the employee knows that
he/she is available for assistance and support.

 Discussion: The employee and supervisor should mutually agree to discuss the results of the
assessment and reach consensus on the draft IDP prepared by the employee. The discussion
should review and assess the plan within the context of organizational needs, the employee’s
current and prospective job requirements, the employee’s strengths and developmental needs,
financial limitations, timing, and learning opportunities that the supervisor is able to actively
support. The supervisor coaches the employee by providing candid and constructive
feedback, identifying challenging assignments, discussing potential career paths in the
organization, and reasonable timeframes for meeting the objectives of the IDP. The supervisor
and employee should sign a completed IDP.

 Implementation: The supervisor ensures that any necessary procurement or training request
forms are prepared and monitors work that is assigned to best accomplish the IDP’s
developmental objectives. The employee reports on completion of items in the IDP. The
supervisor and the employee meet periodically throughout the year to review and update the
IDP.

As in all aspects of the employee/supervisor relationship, direct and open communications are the
keys to a successful IDP. The following describe the respective responsibilities of the employee and
supervisor in the IDP process:

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Employee’s Responsibilities for an IDP

 Assessing the level of personal skills necessary to successfully perform the current position.
Working with the supervisor to identify skill gaps.

 Suggesting developmental experiences that would enhance the skills required to effectively
perform the employee’s current position and desired career goals.

 Identifying personal career goals.

 Understanding the skills necessary to meet the desired career goals.

 Participating in open discussions with the rating official concerning the elements of the IDP.

 Completing the developmental experiences in the IDP approved by the rating official.

 Alerting the rating official when the IDP needs review and updating.

Rating Official’s Responsibilities for an IDP

 Providing constructive feedback to the employee about the skills necessary for performing the
current position.

 Suggesting and reviewing employee suggestions for developmental experiences that would
enhance the skills required to successfully perform the employee’s current and career goal
positions.

 Counseling the employee about career goals.

 Participating in open discussions with the employee concerning the development and periodic
updates and reviews of the IDP.

 Approving specific developmental experiences.

 Monitoring the progress of the employee toward completion of the developmental experiences
agreed upon in the IDP.

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QUESTIONS AND ANSWERS

Awards In General

What types of awards can federal employees receive?

Government-wide regulations specify four types of awards that can be given to federal employees:
cash awards, including QSIs; honorary awards; informal recognition awards; and Time-Off awards.

Can an employee receive two types of award for the same accomplishment or contribution?

Yes. Departments may use any combination of award types to reward a specific contribution. For
example, an employee might receive both a certificate (informal recognition) and a cash award as
recognition for a single contribution. However, the overall combined value of the awards should not
exceed the value to the organization of the contribution recognized. Thus, the award should be
commensurate with the contribution of the employee.

Does a department have to involve its employees in developing appraisal programs, award
programs, and employee performance plans?

Departments are encouraged to involve employees in the design and implementation of their
appraisal programs, award programs, and employee performance plans. Of course, where a Union
has been granted exclusive representation rights, the elected Union representatives represent the
bargaining-unit employees in such activities.

Are there limits to the amount of an award a department may approve under its own authority?

Yes. OPM must approve any cash award greater than $10,000 but less than $25,000. Awards
greater than $25,000 must be submitted through OPM for the President's approval. The Department
of Defense and the Internal Revenue Service (IRS) may approve awards up to $25,000. SES
performance awards and Presidential-rank awards for SES and SL/ST employees have award-
specific requirements.

Can an award program cover contract employees?

No. Contract employees may not receive direct payments from the federal government. Their
employment, including pay, rewards, and discipline, must be handled by their employer, the
contractor, not the federal government.

Performance-Based Awards

What is a performance-based cash award?

A performance-based cash award, also commonly known as a rating-based award, is a cash

payment and requires the most recent rating of record as the justification for the award. Rating-based
cash awards must be based on a rating of record at the Achieved Expected Results level or higher
and rating-based awards programs must make meaningful distinctions based on levels of
performance.

Can an employee receiving a Partially Achieved Expected Results rating or an Achieved

Unsatisfactory Results rating of record receive a rating-based cash award?

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No. An employee must have an Achieved Expected Results rating of record, or higher, to be eligible
to receive a rating-based cash award.

Can an employee receive both a rating-based award and an award for a specific contribution
(Special Act) in the same year?

Yes. An employee may receive both an award based on a rating of record and an award based on a
specific contribution in a single year. The most important factor in deciding whether to grant multiple
awards is that the total value of the awards must be commensurate with the value to the department
of the recognized accomplishment. In addition, agencies must ensure they comply with all applicable
requirements, including OPM approval of awards over $10,000.

Are agencies required to keep award recipient information private?

It depends on the type of award granted. For the most part, compensation-related information in the
federal government is a matter of public record or publicly releasable under the Freedom of
Information Act. Generally, this includes award payments except for rating-based awards.
Departments may not disclose award amounts if doing so could reveal the recipient's rating of record,
which is protected information under the Privacy Act. For information on specific situations, contact
the Office of General Counsel.

Can an employee receive a rating-based cash award if he/she does not have a rating of
record?

No. Rating-based cash awards are based on the rating of record, which is the written justification for
the award.

Are rating-based performance awards subject to the $10,000 and $25,000 approval
thresholds?

Yes. Under statute and the implementing regulations, such awards are subject to the OPM and
Presidential approval, respectively. The two exceptions are the Department of Defense and the
Internal Revenue Service who are authorized to grant awards up to $25,000 without
OPM/Presidential approval.

Time-Off Awards

Can a manager offer an employee the choice between a Time-off award and another type of
award?

OPM strongly discourages this. Giving employees the choice between different types of awards
could have tax consequences.

Can a Time-off award be transferred if the employee leaves one department and accepts a
position with another department?

If an employee transfers from one department to another, the gaining department is not obligated to
honor the Time-off award. Therefore, any unused Time-off awards are not transferable, unless a
special arrangement is made with the receiving department to honor the Time-off award granted by
the employee's former department. Also, the losing department may not convert the Time-off to cash
and give that cash to the employee.

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Why does OPM prohibit converting Time-off awards to cash?

The "currency" of a Time-off award is time, not money. Departments have the authority to grant cash
awards when they feel that is the appropriate form of recognition or incentive.

Can a manager substitute Time-off awards for compensatory time?

No. The circumstances appropriate for the use of compensatory time are not generally appropriate
for a Time-off award. Compensatory time is authorized in exchange for hours worked in excess of
the employee's regular work schedule. Awarding time off instead of compensatory time violates the
incentive awards concept of recognizing exceptional performance, as opposed to compensating for
extended work schedules.

The Performance Appraisal

What's the difference between an appraisal system and an appraisal program?

An appraisal system describes the general policies and parameters for the administration of
performance appraisal programs in the department. An appraisal program is the specific procedures,
methods, and requirements for planning, monitoring, and rating performance. Programs have to be
designed within the boundaries of the system but can be tailored to the needs of the organization.

How long does my supervisor have to be in his/her position before he/she can rate me?

Government-wide regulations do not specify a minimum amount of time a supervisor must be on the
job before he/she may rate an employee. Any department’s performance appraisal programs may
require a minimum amount of time the supervisor must be on the job before rating an employee. The
Department places no minimum time required in a position before a supervisor can rate an employee.

Can a program include more than one pattern of summary levels for ratings of record?

No. Each program must use a single pattern of summary levels. To use different summary patterns,
departments must define separate programs and employee coverage to which a single pattern
applies. However, more than one program can use the same summary pattern.

Who has the authority to assign a rating of record to an employee?

Government-wide performance management regulations do not specifically designate who has the
authority to assign a rating of record. The department will determine who has this authority.
Generally, the Department devolves this duty to the rating official, or if he/she is unavailable, to the
reviewing official.

Can a department develop more than one appraisal program?

Yes. A department can authorize the development of separate appraisal programs under the
framework of their appraisal system. This allows departmental sub-components or sub-populations to
determine how best to address their needs and cultures and more effectively manage individual and
organizational performance by tailoring specific appraisal procedures and requirements to mission
and work technology.

Can a rating of record ever be given at a time other than the end of the appraisal period?

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Yes. Government-wide regulations define a rating of record as the performance rating completed at
the end of the appraisal period that reflects performance over the entire period, or an off-cycle rating
of record given when a WGI decision must be prepared. These are the only times that a rating of
record can be issued.

Does an employee have to have a performance rating or a rating of record of Achieved

Unsatisfactory Results before a performance-based action can be taken?

No. Both a performance rating and a rating of record involve the evaluation of an employee's
performance against all the elements and standards in the performance plan. At any time during the
appraisal period, a department can make the determination that an employee's performance is
unacceptable on one or more critical elements. This determination is sufficient to begin the process
that could lead to a performance-based action, including termination, if the employee's performance
fails to improve to an acceptable level.

Does OPM have to review and approve all of a department’s appraisal programs?

OPM must review and approve a department’s appraisal system which sets out the limits within which
all the department’s programs must be developed. OPM must approve the appraisal system before
any appraisal program developed under the system can be implemented.

What is the difference between the minimum period and the appraisal period?

The minimum period is the shortest length of time established by a department that an employee
must perform under assigned elements and standards before a performance rating can be prepared.
The appraisal period is the length of time designated by a department (usually one year) that is the
basis for the rating of record.

What happens to a performance-based action if a department changes its appraisal program

while the action is still in progress?

If a notice of proposed action has been given to the employee, a change to an appraisal program
should have no effect on the action. Regulations contain a specific provision, called the "savings
provision," that safeguards administrative procedures pending under a previously approved appraisal
program, from being disrupted by the implementation of new programs covered by these regulations.
OPM's system approval procedures require department appraisal programs to have a similar
provision to safeguard pending administrative procedures when programs change.

Does a department have to involve its employees in developing appraisal programs, award
programs, and employee performance plans?

All departments are strongly encouraged to involve employees in the design and implementation of
their appraisal programs, award programs, and employee performance plans. Of course, where a
Union has been granted exclusive recognition, such involvement for bargaining-unit employees must
be through their elected Union representatives.

How should a department transition between appraisal programs?

Ideally, a department would close out the current appraisal period and issue ratings of record at the
time specified under the existing appraisal program and then begin the next appraisal period under
the terms of the new program.

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Should there be performance management training for rating officials?

Yes. OPM regulations require departments to train rating officials on performance management
topics including developing performance plans, providing feedback, appraising and rewarding
performance, and taking timely and appropriate actions on resolving poor performance.

Can a department exclude temporary employees from its performance appraisal system?

Yes. Provided the temporary employees meet the government-wide requirements. A department
may exclude an employee who is serving in a position under a temporary position for less than one
year, agrees to serve without a performance evaluation, and will not be considered for a
reappointment or for an increase in pay based in whole or in part on performance.

If a department is in the middle of the appraisal period and decides to change the number of
summary levels used in its appraisal program, is it required to end the current period and give
employees a rating of record?

No. Regulations do not require that the appraisal period be ended to change appraisal programs.
However, departments need to remember that the regulations permit only a single rating of record in
a given appraisal period.

Can a department assume that most employees are performing at an acceptable level, for
example, and rate by exception?

No. The statute requires that each employee be appraised against his/her performance plan. It does
not allow for appraising an employee by presuming that an employee is meeting performance
standards. For the same reason, the process for appraising employees described by the regulations
does not provide for any assumed levels of performance.

What is the maximum length allowable for appraisal periods?

The regulations specify that appraisal periods shall generally be designated so that employees are
provided a rating of record annually.

May a department establish exceptions to coverage of employees under a performance

appraisal system?

Yes, as long as the employees excluded by a department are covered by another performance
appraisal system, unless the employees are in the excepted service and the department has obtained
separate OPM approval for their exclusion.

Labor Relations

Is there a minimum amount of time an employee must be under the direction of a supervisor
before that supervisor can rate that employee?

Government-wide regulations do not establish a minimum time that an employee must be under a
supervisor before he/she can be rated. Instead, the regulations require that appraisal programs
establish a minimum appraisal period (a minimum amount of time that employees must work under a
specific set of elements and standards) before they can be assigned a rating of record. As long as a
supervisor has the necessary information and the employee has been under an established set of
elements and standards for the minimum appraisal period, the supervisor can assign a rating.

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Will an employee's rating of record change if he or she moves to another department or

organization that uses a different summary rating pattern?

No. A rating of record does not change when an employee moves to another department or
organization, whether or not they use a different summary pattern. However, an employee will not
know how many years of additional service credit will be given for a specific rating of record until a
department is getting ready to run a Reduction In Force.

May a department grant additional service credit for Reduction In Force based on employees
receiving a QSI?

No. The only basis for granting additional service credit for Reduction In Force is a rating of record.

Must a department use performance in the Reduction In Force process?

Yes, under current law, performance ratings must be a factor in the Reduction In Force process.
Only under a demonstration project that waives pertinent law or regulation could a department drop
the use of performance in a Reduction In Force.

Can ratings given by private industry employers be used as equivalent ratings of record for
crediting performance in a Reduction In Force?

No. Only ratings given by federal government entities can be used and only when they meet the
requirements for equivalent ratings of record as specified in the performance management
regulations.

Quality Step Increase (QSI)

Who can get a QSI?

A QSI is a pay feature of the General Schedule. A QSI can only be granted to an employee whose
most recent rating of record is Level 5, or, if covered by an appraisal program that does not use a
Level 5 summary, the employee receives a rating of record at the highest summary level used by the
program and demonstrates sustained performance of the highest quality.

Is a written justification required to grant a QSI?

OPM strongly encourages departments to require some form of recorded justification, assuring
compliance with department-established criteria for QSI eligibility. This enables a department to
show that the proposed recipient has performed at a truly exceptional level to justify a permanent
increase in his/her rate of basic pay.

Performance Plans

What is a critical performance element?

A critical element is a work assignment or responsibility of such importance that unacceptable

performance on that element would result in a determination that the employee's overall performance
is unacceptable.

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What is a retention performance standard?

A retention performance standard describes the level of performance necessary to retain a position.
It is the standard written for performance one level above the Achieved Unacceptable Results level.
In appraisal programs where a Partially Achieved Expected Results Level exists for appraising
elements, the standard for job retention is the Partially Achieved Expected Results Level.

Could someone who has responsibility for a group of employees (supervisor, manager, team
leader) have a critical performance element based on a result that the group is expected to
achieve?

Yes. OPM believes it is possible to develop a critical performance element and standard that holds a
supervisor, manager, or team leader responsible for group performance. The element and standard
would have to be crafted carefully so that it identifies measurable achievements that would be
expected to result when the individual supervisor, manager, or team leader properly exercises his/her
leadership responsibilities.

Should rating officials be held accountable for making meaningful distinctions in

performance?

Yes. OPM encourages departments to hold supervisors accountable for fulfilling their performance
management responsibilities. Departments often establish elements and standards in the
performance plans of rating officials to hold them accountable for the performance management of
their subordinates.

Must a department have written performance plans for its employees?

The regulations state "written, or otherwise recorded." This language was chosen very deliberately to
allow for use of electronic formats. Although departments do not have to write performance plans on
paper, the plans must be recorded in some way and departments must be able to produce a paper
copy, if needed. Purely oral plans do not meet the regulatory requirement.

How will an employee's performance plan be different if he/she teleworks?

There is no difference between managing the performance of a teleworker and managing the
employee who works in the office. Performance is grounded in what one accomplishes, not
necessarily where one carries out his/her duties and responsibilities.

Are the performance rating, the rating of record, and the summary level the same thing?

No, but they are similar. A performance rating is the appraisal of the employee's performance
compared to the elements and standards established in the performance plan. The rating of record is
a specific performance rating done at the end of the appraisal period that includes the appraisal of the
elements and standards and also must include the assignment of a summary level (Levels 1 through
5). A summary level is an ordered category of performance from Level 1 through Level 5, with Level
1 as the lowest and Level 5 as the highest. Performance ratings assigned at times other than the end
of the appraisal period, such as at the midyear review, do not require a summary level to be
assigned, although one is permitted.

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Can employees on approved annual or sick leave be held to a work performance standard in
their performance appraisal?

A department may not hold an employee accountable for work that does not get done because of an
absence for which the employee is on any type of approved leave. If there is a specific performance
standard for the appraisal year, it may be pro-rated for the amount of time the employee was at work.

Must the rating of record be derived and the summary level assigned only on the basis of an
appraisal of elements and standards in the employee's performance plan?

Yes. Statute requires that employees be evaluated against their performance elements and
standards.

Why does OPM require higher-level management review of a Level 1 (Achieved Unsatisfactory
Results) rating of record?

An Achieved Unsatisfactory Results level rating of record bars granting Step Increases, may result in
a performance-based adverse action, and removes retention rights in a Reduction In Force. For
these reasons, there must be an extra measure of assurance that a Level 1 rating of record has been
properly assigned. The requirement for higher-level review of a rating of record that could have
significant consequences for the employee, including removal, is a prudent measure of protection for
the employee.

Can veterans on leave seeking treatment for a service-related disability be held to a work
performance standard in their performance plan?

Performance management regulations specifically address veterans seeking medical treatment. A

department may not lower the rating of record or performance rating of a disabled veteran seeking
medical treatment.

Can individual critical elements be written to appraise the individual's contribution to a team?

Yes. The individual critical element must describe performance that is reasonably measured and
controlled at the individual employee's level. Such performance includes individual contributions to
the team, but does not include team performance.

Can a department use critical elements that address team performance?

The law intends critical elements to be used to establish individual accountability. This restriction is
clearest for non-supervisory employees who may be serving as team members. Consequently,
critical elements generally are not appropriate for identifying and measuring team performance, which
by its definition involves shared accountability. A supervisor or manager can and should be held
accountable for seeing that results measured at the group or team level are achieved. Critical
elements assessing group performance may be appropriate to include in the performance plan of a
supervisor, manager, or team leader who can reasonably be expected to command the resources
and authority necessary to achieve the results.

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GUIDE FOR NON-STANDARD SITUATIONS

Performance Actions for Non-Standard Situations
Situation Performance Plan Action To Be Taken
For whatever reason, Establish plan If there are more than forty-five (45) calendar
employee did not have immediately. days left in the appraisal cycle, extend the
a plan at any time rating period. If there are less than forty-five
during the entire (45) calendar days, the employee will not
appraisal period, or did receive a rating for that cycle.
not perform under a
plan for ninety (90)
calendar days, such as
an employee returning
from long-term training.
Employee moves from Establish plan for (1) If employee was in position A for at least
one position A to new position under ninety (90) calendar days, rate employee prior
another position B option (2). to the position change. This rating will
within ninety (90) become the final rating of record for the
calendar days of end of appraisal period. (2) If employee was not in
appraisal period. position A for at least ninety (90) calendar
days, or was not under a plan for ninety (90)
calendar days in position A, extend the rating
period to allow for ninety (90) calendar days in
position B and rate the employee at that time
if there are more than forty-five (45) calendar
days left in the appraisal cycle.

Within ninety (90) days Establish plan. If there are more than forty-five (45) days left
of the end of the in the appraisal cycle, extend the appraisal
appraisal period, period until the ninety (90) calendar-day
employee is hired from minimum rating period is reached, then rate
outside the federal employee based on the plan for that period. If
government. less than forty-five (45) calendar days, the
employee will not receive a rating until the
next cycle.
Employee changes Establish plan for If the plan has been in effect for at least ninety
positions within the new position. (90) calendar days at the time of each
Department during the position change, rate the employee. The
appraisal period. rating of record for the appraisal period must
consider all ratings made during the entire
appraisal period.

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Situation Performance Plan Action To Be Taken

Employee is detailed or Establish plan for If a plan had been in place for at least ninety
temporarily assigned to detailed position or (90) calendar days, rate at time of position
another position in the new position. change. Also rate at end of temporary
Department, and the assignment (or detail) if it lasted at least
time in that position is ninety (90) calendar days. Consider all
expected to be at least ratings made during the appraisal period in
90 days by the end of preparing the annual summary rating.
the appraisal period.

Employee is detailed or Make a reasonable If a plan had been in effect for at least ninety
assigned outside the effort to see that a (90) calendar days, rate at time of position
Department and the plan is given to the change. Also, the rating official will make a
time in the outside employee while at reasonable effort to obtain performance
organization is the outside entity. information from that outside assignment,
expected to be at least especially if employee was not on a
ninety (90) calendar Departmental plan for at least ninety (90)
days. calendar days during the appraisal period. At
a minimum, the rating official will request a
memorandum describing the assignments
performed by the employee and an
assessment of how well the employee
performed the assignments. The rating
official will consider all ratings made during
the appraisal period in preparing the rating of
record.
Before the end of the N/A. If a plan had been in effect for at least ninety
appraisal period, the (90) calendar days, rate at time employee
employee goes on goes on training based on established plan.
long-term training and
does not return by the
end of the appraisal
period.

Employee transfers N/A. Rate the employee and submit rating as

from the Department to required by OpDiv/StaffDiv.
a new department after
serving under a plan for
at least ninety (90)
calendar days.

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DEFINITIONS
Appraisal: The process under which performance is reviewed and evaluated.

Appraisal Period: The established period of time for which an employee’s performance will be
reviewed and a rating of record prepared. The appraisal period covers the Calendar Year (January 1
through December 31). In the Department, the minimum appraisal period is ninety (90) calendar
days. An employee must perform work under a performance plan in place for a minimum of ninety
(90) calendar days to receive a rating.
Critical Element: Work assignments or responsibilities of such importance that unacceptable
performance on the element would result in a determination that an employee’s overall performance
is unacceptable. All elements in the performance plan are critical.
HHS FORM 704B: The standard performance plan used to document all of the written performance
elements that an employee is expected to accomplish during the appraisal period. See Performance
Plan definition below.
Performance: An employee’s accomplishment of assigned work as specified in the critical elements
of the employee’s position.
Performance Management Appraisal Program (PMAP): The framework of Department-wide
policies and parameters established for planning, monitoring, developing, evaluating, and rewarding
individual performance. The resulting performance information will be used in making personnel
decisions.
Performance Awards Budget: The amount of money allocated by the Department and/or the
OpDiv/StaffDiv, based on OMB guidelines, for distribution as performance awards to covered
employees.
Performance Plan: All of the written performance elements and standards that an employee is
expected to accomplish during the appraisal period. These objectives are linked to strategic plans
and outcomes of the Department and the OpDivs/StaffDivs. A performance plan must include all
critical Elements and their Performance Standards.
Performance Rating: The written appraisal of performance compared to the performance standards
for each critical element on which there have been an opportunity to perform for the minimum period,
for example ninety (90) calendar days. A performance rating includes the assignment of a summary
rating level.
Performance Standard: A statement of the performance threshold, requirement, or expectation for
an element that must be met to be appraised at a particular level of performance. A performance
standard may focus on, for example, factors such as quality, quantity, timeliness, and manner of
performance.
Progress Review: Progress reviews are important for providing consistent performance feedback to
employees and can be conducted at any time during the appraisal period. One formal progress
review is required and is generally conducted midway through the appraisal period. Ratings are not
assigned for progress reviews.
Quality Step Increase (QSI): A permanent increase in basic pay, equivalent to one (1) step within
the grade.
Rating Official: The official responsible for informing the employee of the critical elements of his/her
position, establishing performance requirements, and providing feedback, appraising performance,

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and assigning the summary rating. The rating official is ordinarily the employee’s immediate
supervisor.

Rating of Record: The performance rating, which is prepared at the end of an appraisal period for
performance throughout the entire appraisal period? In most cases, a summary rating (see definition
below) will become the rating of record.
Reviewing Official: An official having review and approval authority above the rating official.
Reviewing officials are ordinarily at a level higher than the rating official.
Summary Rating: Combining the written appraisals of each critical element on which there has been
an opportunity to perform for the minimum period of ninety (90) calendar days to assign a summary
rating level. The rating official derives the summary rating from appraising the employee’s
performance during the appraisal period on each element.
Time-Off Award: An award granted to an employee that allows the employee to take a specified
amount of time off from work, with pay, and without charge to leave.

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APPENDIX I: HANDBOOK ON CASCADING GPRA GOALS

Bringing employee performance appraisal into the GPRA process

Introduction

The Department of Health and Human Services (HHS) has long recognized the potential benefits of
using the Performance Appraisal System as a method of implementing the requirements of the
Government Performance and Results Act (GPRA) of 1993. The Departmental GPRA goals in 1998
contained a requirement that OpDivs/StaffDivs begin to use employee performance appraisals to
recognize the need for accountability for GPRA goals.
The HHS FY 2015 Workforce Plan states that, “to be an effective, performance based organization
the Department must build a better performance appraisal system that links individual success with
organizational achievement. Such a system will establish individual performance expectations,
evaluate results, provide for individual accountability and give performance recognition – all linked to
the organizational goals and missions of the Department.” This can best be achieved by ensuring
that each employee sees and understands that his or her individual performance plan is directly
linked to the annual strategic goals and is evaluated on his or her achievement of those goals.

This handbook assumes that GPRA mission areas and strategic goals are known, and that Senior
Executive Service (SES) members have been assigned GPRA goals in their performance plans.

Policy

The Department recognizes the importance of establishing a recognizable link between individual
employee performance plans and the mission goals of the agency.

Linking employee performance management with the results-oriented mission goals in the GPRA
plan will significantly improve the employees’ understanding and appreciation of their role in mission
accomplishment. Therefore, Department of Health and Human Services employees will have at least
one critical result that is tied directly to or is involved in implementing a Departmental mission goal.

Enhanced communication of mission goals will improve employee understanding of organizational

mission goals and plans. Performance plans and expectations must be clearly communicated to the
employees involved during normal annual performance planning sessions.

Coverage

This policy applies to all HHS OpDivs/StaffDivs and offices. These provisions apply to all employees
except Presidential appointees, Senior Executive Service (SES) members, employees outside the
United States who are paid in accordance with local native prevailing wage rates, administrative law
judges, and employees occupying positions excluded by Office of Personnel Management regulations
(e.g., excepted service employees whose employment is not reasonably expected to exceed 90 days
in a consecutive 12 month period). OpDiv/StaffDiv or Equivalent Office Heads may grant exceptions
to mandatory requirement of this policy when appropriate.

Reasons for Cascading GPRA Goals

To implement the requirements of the Government Performance and Results Act managers must
ensure that the specific GPRA goals are achieved and that employees are held accountable for
producing value-added, quantifiable results. The Office of Management and Budget, in Circular A-

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123, has defined “management accountability” as, “the expectation that managers are responsible for
the quality and timeliness of program performance, increasing productivity, controlling costs and
mitigating adverse aspects of agency operations, and assuring that programs are managed with
integrity and in compliance with applicable law.” This accountability can only be realized when all
employees understand their role in the outcome and fully participate in implementing the goal.
Managers at every level are accountable for the performance of their organization in support of the
Department’s goals.
Cascading GPRA goals is essential to successfully bringing each employee into this activity.

Further, most federal employees were initially attracted to the federal service because of a desire to
make a difference in programs they feel strongly about. By communicating clear organizational
goals, the agency is identifying with the motivators that first attracted the employees to work for the
federal service. Employees who understand how their work fits into the broader mission of the
agency will have a better appreciation of the importance of their work, which will improve employee
morale and productivity and give them a real stake in the outcome itself.

Methods of Cascading GPRA/Mission Goals

How should GPRA/mission goals be reflected in the performance plans of HHS employees? There
are several alternative ways this cascading can be done and perhaps several variations on each
method. There is no right or wrong way; one method may work better than another in some
situations and not in others. The differences in organizational goals, structure, and method of
operating in various organizations may make one method seem easier to implement than another.
Each alternative method should be considered and the most feasible used. It may help to use one
method to initially identify the specific employees who should have critical results associated with a
certain GPRA/Mission Goal and then use an alternative method to verify that the goal selected is the
appropriate one.

If an employee’s duties do not specifically support the accomplishment of a GPRA goal, you may link
the critical results to a President Management Agenda, Citizen-Centered Governance, or other
strategic mission goal of the organization. When using numerical goals, the goal must be reasonable
and achievable. Performance requirements and expected results should be worded in a way
(including numerical or percentage goals) as to allow for qualitative considerations and mitigating
circumstances not under the employee’s control, and describe the lowest acceptable measurable
result.

A. Top-Down Cascading of GPRA Strategic Plan

The strategic goals and measures of the HHS FY 2015-2018 Strategic Plan begin on page 43 of the
Plan. The plan relates each mission area, such as Resource Use, with End Outcome Goals and
Outcome Performance Measures that are critical supporting elements of the Department’s work.
These End Outcome Goals are further broken down into a third level of goals, or strategies, with
performance measures that are employed by OpDiv/StaffDiv and offices to direct and gauge daily
activities. Mapping out these goals, strategies and measures may allow the supervisor to show the
employee how their work contributes to the goals of the organization. For example:

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Several methods of top-down cascading can be used, with examples provided below:

1. Direct Cascade:

A Regional Director may have a measure linked to the End Outcome Performance Measure,
in the water delivery area, of “10 million acre-feet of water delivered consistent with
applicable substantive and procedural requirements of Federal and State water law” (exhibit
1). An appropriate subordinate manager may be responsible for achieving a portion of that
performance goal. When that direct link is the case, the Critical Result in the Employee
Performance Plan for the subordinate manager may be “2 million acre-feet of water delivered
consistent with applicable substantive and procedural requirements of Federal and State
water law” (exhibit 3).

2. Cascade to Strategy:

The same Regional Director described in paragraph 1 above may have a different
subordinate that supports one of the End Outcome Goal 5 Strategies (#2): Effective Water
Management to Optimize Supply. That subordinate manager could have a Critical Result in
his/her Employee
Performance Plan of “At least 25 agreements, partnerships and management options
exercised resulting in improved water supply” (exhibit 3). Employees reporting to that

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manager would have Critical Results in their Employee Performance Plans that relate to their
specific duties and support the strategy of Efficient Water Management to Optimize Supply.
For example, the manager’s Secretary must carry out clerical and administrative functions in
a timely and professional manner in order to facilitate the manager’s ability to finalize
agreements and partnerships.

3. Cascading Percentage Goals:

The same Regional Director from paragraph 1 above may also have a measure linked to the
“Reliability” End Outcome Measure of “96% of water facilities do not receive Federal or State
notices of violation under environmental requirements as defined by Federal and State Law”
(exhibit 2). To achieve the 96% goal, the Regional Director must ensure that 283 of the 293
water facilities under his/her responsibility do not receive Federal or State notices of violation
under environmental requirements as defined by Federal and State Law. Cascading of this
goal and performance measure would therefore focus on the number of facilities that do not
receive Federal or State notices of violation under environmental requirements as defined by
Federal and State Law. Another subordinate manager (who is responsible for the
management of 150 water facilities) could have a Critical Result in his/her Employee
Performance Management Appraisal Plan of “Ensures at least 144 (or 96%) of 150 water
facilities do not receive Federal or State notices of violation under environmental
requirements as defined by Federal and State law” (exhibit 3), and the employees working for
that manager will have Critical Results in their performance plans that relate specifically to
the jobs that they hold. For example, a Water Treatment Equipment Operator may have a
Critical Result of “Water treatment equipment is maintained in good operational condition,
with no more than one malfunction per year that would result in a violation under
environmental requirements as defined by Federal and State law.”

4. Cascading to Supporting Actions and Activities

The Regional Director used in paragraph 3 above, may also develop critical results and
performance indicators for his/her direct reports using supporting actions or activities. For
instance, if one of the primary contributing factors to receiving a notice of violation is the
presence of hazardous waste, the direct report could have a critical result of “Reduces
hazardous waste at water facilities by developing programs for the collection, filtering, and
reuse of cleaning solvents, oil, and other hazardous materials.” Another direct report who
works in an area where water flow results in notices of violation of the Endangered Species
Act, may have a critical result of “Monitors river minimum water flows to ensure compliance
with Endangered Species Act requirements.” A GS-4 Clerk working for this individual may
have a critical result of “Office files, including those related to river water flow levels and the
Endangered Species Act, are well organized and maintained so that information is complete
and readily accessible.”

5. Charting Work Flow through OpDiv or StaffDiv Hierarchy

You may want to use a visual method of charting the flow of work to determine how the work
flows out to the operating level. A way to accomplish this is to begin with the Strategic Plan,
then look at strategic goals, end outcomes and strategies and chart the flow of the work
through the OpDiv or StaffDiv hierarchy to find where those goals are implemented. Once
the individuals at the operating level who implement the Strategic goals are identified, Critical
Results could be described which should include showing how those results support the
strategic goals identified.
Example:

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The task assignments for employees A and B can be converted into Critical Results which are related
directly to the current GPRA Strategic plan and provide a line of sight for both the employee to see
how their work supports major mission goals and top level managers to see how the organization
implements the Strategic plan.

B. Converting Activity Based Costing (ABC) Activities to Critical Results

An ABC activity is defined as a unit of work that has identifiable starting and ending points, and
consumes inputs and produces outputs. ABC activities must be broken down into the tasks or duties
assigned to the employee, and those that meet the following criteria can be used as Critical Results:

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a. The task or duty is an important part of the employee’s overall job.

b. The task or duty addresses only one individual’s performance– that is, it does not cover
other employees.
c. The task or duty requires a significant amount of the employee’s work time.
d. The task or duty was considered in classifying the employee’s position as a part of the
grade determination.
e. The task or duty affects the accomplishment of the organization’s mission.

An ABC activity may support several different GPRA strategies or goals. The supervisor and the
employee must work together to use their experience and judgment to decide which activity(s) to
convert to a critical result and which strategy that activity supports.

C. Career Groups

A major effort was undertaken by HHS Human Resource Officers working with the HR Strategy
Council to identify the major career groups involved in implementing various GPRA goals. Those
career groups each consisted of several occupations. The identification of occupational groupings
involved in implementing the GPRA goals might be used to relate specific occupations with various
GPRA goals and end outcomes, and provide a workable method to help supervisors and employees
in the task of identifying appropriate Critical Results which are tied to GPRA goals.

For example, the following occupational groupings can be considered to be involved directly in
implementing End Outcome Goal #1 “Protect Lives, Health, and Resources in the Mission Area:
Serving Communities: Management planning and analysis, program management, education and
training, health care, community, and the environment. Critical results for HHS should be identified
as linking directly to that End Outcome Goal.

D. Bottom-Up Approach

This method looks at the organization at the operating level and identifies the unit’s accomplishments
(results) and describes the results.

1. Begin at the operating level and identify the work unit outcomes and results. You can start by
answering the question, “What product or service does the work unit provide that helps the
OpDiv or StaffDiv meet its goals?”

2. Determine individual accomplishments that support the work unit goals. To help, you can
answer the question, “What result must each individual produce to support the product or
service of the work unit?”

3. Convert results into performance elements. [Note: Our non-SES employee performance
system allows 1 to 5 critical results.

4. Find unit and individual measures By asking the question, “How well is the service or product
being provided?” [Note: In the current HHS non-SES employee performance system, the
performance indicators are already identified under general categories of Quality, Teamwork,
and Customer Service.]

5. Finally, trace the outcome and results back to specific end outcomes (or intermediate end
outcomes) and thus to strategic goals.

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[Note: This method is only applicable where there exists a clear and identifiable link between the
duties of the position (assignments) and the strategic goals.]
Bottom-Up Flow Chart Example:

National Wildlife Refuge X has a habitat restoration project in which employees utilize biological and
chemical controls to reduce the number of acres infested with invasive plants and/or animals. The
following example will show how that employee’s work can be linked to the RESOURCE
PROTECTION mission area and the End Outcome Goal 2: Sustain Biological Communities on HHS
Managed and Influenced Lands and Waters in a Manner Consistent with Obligations Regarding the
Allocation and Use of Water. An excerpt from that portion of the FY 2003 – 2008 Department of the
Interior Strategic Plan is attached for your reference (exhibit 4).

1. What product or service does the work unit provide that helps the OpDiv/StaffDiv meet its
goals? – Habitat Conservation

2. What result must each individual produce to support the product or service of the work
unit? – Application of biological or chemical controls to reduce or eliminate invasive species
(plant and animal).

3. Performance Elements –

o Treats 250 acres with biological or chemical controls to reduce the number of acres
infested with invasive plant species.

Or

o Treats 250 acres with biological or chemical controls to reduce invasive animal
populations.

Trace of outcomes and results back to strategic goal:

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Performance Appraisal Cycle

Appraising employee performance is a continuous cycle that follows a logical pattern. Each of the
stages that follow is part of the cycle. While they generally occur in the order presented here, it
should be noted that all phases are interconnected and affect each other.

Planning

The most crucial question of any performance system is: How well does the performance system
inform the employee of what is expected of them on the job? If the employee does not understand
what is expected of them, there is little chance of having successful performance. The supervisor
must spend whatever time it takes to ensure there is effective communication and understanding from
the beginning of the rating cycle as to expectations and how their work fits into the mission of the
organization. Employees must be involved in the development of their critical results.

The Corporate Leadership Council Study found “Employee understanding of performance standard to
have the largest impact on performance” i The Gallup Study found the most significant factor in
defining a great workplace is “I know what is expected of me at work.” ii The Merit System Protection
Board’s review of performance-based actions puts significant weight on whether the employee was
adequately informed about what was expected of them. The Hay Group found that “Performance
goals, no matter how high, must be communicated clearly.” iii

As part of the initial performance planning sessions, after the supervisor and the employee have
completed a thorough discussion of the performance elements, supervisors should ask employees to
explain in detail what the performance goals are to test whether the employee has an adequate
understanding of the goal. Each employee should be capable of articulating the performance
expectations in their own words before the performance period begins. If there is any confusion, this
is the time to discover it and correct it.

Critical Results/Elements must focus on accomplishments. Supervisors must define what the desired
result is, how well the work is to be done (indicators), and how the work will be measured. Critical
results must be measurable, understandable, verifiable, equitable, and achievable. It is crucial to
include employee in the planning process. The Department’s performance management system has
identified a series of generic performance indicators under the general categories of Quality,
Teamwork, and Customer Service. These may help the supervisor in determining which indicators

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should apply to which critical results. Supervisors should discuss these indicators with the employees
involved, discuss which indicators apply to each result and create additional indicators if necessary.

The Planning phase culminates in the development of a performance plan and the identification of the
critical results and performance indicators. The employee should be asked to sign the plan indicating
they understand what the performance plan is and what they are expected to accomplish during the
rating period.

Monitoring

The supervisor must continually measure performance through observation and documentation.
This process consists of very frequent verbal discussions and feedback as the supervisor sets goals
and uses every opportunity to confirm that the employee is on the right track or gives timely guidance
about course corrections. Supervisors should set short or intermediate term performance goals that
are attainable and celebrate the successful attainment of these goals. There must be at least two
performance reviews and feedback sessions which are documented during each rating period.
Supervisors should identify unacceptable performance at any time during the rating cycle and provide
necessary assistance. Supervisors SHOULD NOT wait until the end of the performance rating period
to identify performance deficiencies.

Developing

The supervisor must look for opportunities to improve good performance and address poor
performance. The idea is to help employees develop skills needed to meet their goals. Training
opportunities, working with peers, attending meetings and updates will all help employees become
more proficient in their jobs and allow them to take on more responsibilities and have the ability to
grow. The supervisor must ensure the employee has the tools they need to succeed. Proper
planning and monitoring helps to identify areas in need of development or areas an employee is
interested in developing.

Rating

Supervisors should compile performance data from various sources as a part of the rating process. It
is often a good idea to ask employees to keep track of their own progress using data identified during
the planning phase so they can provide a complete accounting of their accomplishments during the
progress reviews and the final rating. The supervisor must also review all supervisory records, talk to
customers, any vendors and others and review production figures if available. The supervisor must
use care to ensure the rating is based upon performance during the entire rating period. The
supervisor should be prepared to have a thorough performance rating discussion. The formal rating
meeting should begin with positive feedback on tasks the employee has done well regardless of what
the final rating is. The supervisor should summarize the performance and assign the rating of record.

Rewarding

The supervisor should continually look for opportunities to recognize and reward good performance
by individuals or groups. A major advantage of setting short or intermediate term goals is to provide
the opportunity throughout the rating period to celebrate successes and provide positive enforcement.
This must be an ongoing process; supervisors should not wait until end of the performance rating
period to recognize good performance.

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Labor-Management Obligations

OpDiv/StaffDivs are reminded that they must fulfill their labor-management responsibilities, as
applicable, before implementation of any new policy. Generally, the content of a critical result or
standard is not negotiable because it is a part of the management right to direct employees and
assign work. However, if a proposed policy change covers bargaining unit employees, at a
minimum the union must be given appropriate notice and afforded an opportunity to negotiate on the
impact and implementation of the changes. Specific questions should be addressed to the
appropriated human resources office.

i
Coffman, Curt (2002). Follow this Path: How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential.
New York: Warner Books, Inc. (The Gallup Organization) page 81
ii
Corporate Leadership Council (2002). Building the High-Performance Workforce, A Quantitative Analysis of the Effectiveness of
Performance Management Strategies. Washington, D.C.: Corporate Executive Board. Page 19b
iii
Weiss, Tracy B., F. Hartle (1997). Performance Management Breakthroughs in Achieving Strategy Through People. Boca Raton,
FL: St. Lucie Press (The Hay Group) page 150

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