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    September 2005 Section IV - 1

    SECTION IV

    Results-OrientedPerformance CultureSystem

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented PerformanceCulture System

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    THE RESULTS-ORIENTEDPERFORMANCECULTURE SYSTEM

    This section contains information specific to the Results-Oriented Performance Culture system, which focuses onhaving a diverse, results-oriented, high-performing workforce,

    as well as a performance management system that effectivelyplans, monitors, develops, rates, and rewards employeeperformance.

    Definit oni

    A system that promotes a diverse, high-performing workforceby implementing and maintaining effective performancemanagement systems and awards programs.

    Standard The agency has a diverse, results-oriented, high-performingworkforce and a performance management system thatdifferentiates between high and low levels of performanceand links individual/team/unit performance to organizational

    goals and desired results effectively.

    "By aligning employee performance appraisal plans withexecutive performance agreements and directlycommunicating agreement goals to employees, supervisorscan drive home to employees just how their performanceimpacts organizational goals."

    Office of Personnel Management

    September 2005 Section IV - 1

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    Section IV: Results-Oriented Performance Culture System

    Critical SuccessFactors

    The Results-Oriented Performance Culture system iscomprised of the following critical success factors that worktogether to create a diverse, results-oriented, highperformance workforce:

    Communication: The agency has a process for sharinginformation and ideas about the organization with allemployees. This vital process includes eliciting employeefeedback and involvement so all employees play anappropriate role in planning and executing the mission.

    Performance Appraisal: The agency has a process underwhich performance is reviewed and evaluated.

    Awards: The organization takes actions to recognize andreward individual or team achievement that contributes tomeeting organizational goals or improving the efficiency,effectiveness, and economy of the Government. Suchawards include, but are not limited to: employeeincentives which are based on predetermined criteria,rating-based awards, or awards based on a special act orservice.

    Pay for Performance: The agency uses pay-for-performance systems, where authorized by law andregulation, to link salary levels and adjustments to an

    individuals overall performance and contribution to theagencys mission. Employees receive base salaryadjustments within their assigned bands.

    Diversity Management: The agency maintains anenvironment characterized by inclusiveness of individualdifferences and responsiveness to the needs of diversegroups of employees.

    Labor/Management Relations: The organization promotescooperation among employees, unions, and managers.

    This cooperation enhances effectiveness and efficiency,cuts down the number of employee-related disputes, andimproves working conditions, all of which contribute toimproved performance and results.

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    Section IV: Results-Oriented Performance Culture System

    Applicable MeritSystem Principles

    The following merit system principles are especially relevantto the Results-Oriented Performance Culture system (5 U.S.C.2301):

    All employees and applicants for employment shouldreceive fair and equitable treatment in all aspects ofpersonnel management without regard to politicalaffiliation, race, color, religion, national origin, sex, maritalstatus, age, or handicapping condition, and with properregard for their privacy and constitutional rights. (5 U.S.C.2301(b)(2))

    Equal pay should be provided for work of equal value, withappropriate consideration of both national and local ratespaid by employers in the private sector, and appropriateincentives and recognition should be provided for

    excellence in performance. (5 U.S.C. 2301(b)(3)) Employees should be retained on the basis of adequacy of

    their performance, inadequate performance should becorrected, and employees should be separated who cannotor will not improve their performance to meet requiredstandards.(5 U.S.C. 2301(b)(6))

    Required OutcomeMetrics

    The following are required outcome metrics for the Results-Oriented Performance Culture system.

    Required Metric Description Purpose

    Organization Metric: SESPerformance/OrganizationalPerformance Relationship asLinked to Mission

    Relationship between SESperformance ratings andaccomplishment of theagencys strategic goals

    To determine the extent towhich SES appraisals andawards are appropriatelybased on achievement of

    organizational results

    Organization Metric:Workforce PerformanceAppraisals Aligned to Mission,Goals, and Outcomes

    Degree of linkage betweenemployees performanceappraisal plans and agencymission, goals, and outcomes

    To determine whether allemployees have performanceappraisal plans that effectivelylink to the agencys mission,

    goals, and outcomes

    Employee PerspectiveMetric: Questions fromAnnual Employee Surveyabout Performance Culture

    Items from Annual EmployeeSurvey

    To determine the extent towhich employees believe theirorganizational culturepromotes improvement inprocesses, products andservices, and organizationaloutcomes

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    Section IV: Results-Oriented Performance Culture System

    Required Metric Description Purpose

    Merit System ComplianceMetric: Merit-BasedExecution of the PerformanceCulture System

    An assessment of compliancewith merit system principlesand related laws, rules, andregulations governing the

    Performance Culture system

    To determine decisions,policies, processes, andpractices executed under thePerformance Culture system

    comply with the merit systemprinciples and related laws,rules, and regulations

    Suggested Metrics In addition to the required outcome metrics, the followingmetrics associated with the Results-Oriented PerformanceCulture system are suggested.

    Suggested Metric Description Purpose

    Performance Ratings Percent of employeesachieving each rating levelused in an agencysperformance appraisal systemin relation to organizationaland individual performance

    To track the extent to whichagencies make meaningfuldistinctions among employeesperformance

    Awards Relationship of the distributionof performance ratings toawards

    To track the extent to whichagency monetary awardsreflect employee performance

    Respect for Diversity Items from Annual Employee

    Survey

    To determine the extent to

    which employees believe their

    organization is respectful ofand welcoming to the greatdiversity that makes up theFederal workforce

    Employee Grievances andComplaints

    Review of formal grievancesand complaints

    To determine whether theunderlying facts of complaints

    and grievances indicateagency mistake or wrongdoing

    Section IV - 4 September 2005

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS:COMMUNICATION

    When the key elements of the critical success factorCommunication are effectively implemented, agencies willrealize the following results:

    Effectiveness Results

    The agencys strategic plan has been shared with and/or isaccessible to all agency employees. Employees areknowledgeable about the agencys strategic plan and theirrole in supporting the agencys mission.

    Employees have a direct line of sight betweenperformance elements (performance expectations) andaward systems and the agency mission. These links havebeen communicated to and are understood by employees,

    enabling them to focus their work effort on those activitiesmost important to mission accomplishment. All employeesare held accountable for achieving results that support theagencys strategic plan goals and objectives.

    The following page provides key elements and suggestedperformance indicators for this critical success factor.

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    Section IV: Results-Oriented Performance Culture System

    COMMUNICATION

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a communicationsystem that:

    Ensures employees understandthe agencys mission, goals,and objectives and whatemployees roles are inachieving the mission, goals,and objectives

    Effectiveness Indicators The agency has developed and implemented a

    communication strategy to share the vision,strategic plan, and related documents (e.g.,Strategic Human Capital Plan) with allemployees.

    A variety of media are used to communicatethe strategic plan and related documents to alllevels of the workforce.

    Surveys and/or interview data/summariesindicate employees are aware of the strategicplan goals and understand how they relate tothe agencys mission and their duties.

    Elicits employee feedback andinvolvement in decision-makingand planning processes.

    Effectiveness Indicators

    Communication up and down the organizationis effective. Documentation shows innovationand problem solving between employees andmanagement.

    Employees are involved in the decision-makingprocess, fostering their support fororganizational decisions. Surveys and/orinterviews indicate employees are satisfied withtheir level of participation in the organizationaldecision-making process and feel empoweredto share their ideas and/or concerns withsupervisors and other management officials.

    Section IV - 6 September 2005

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS:PERFORMANCEAPPRAISAL

    When the key elements of the critical success factorPerformance Appraisal are effectively implemented, agencieswill realize the following results:

    Effectiveness Results

    Employees have a direct line of sight betweenperformance elements (performance expectations) andaward systems and the agency mission. These links havebeen communicated to and are understood by employees,enabling them to focus their work effort on those activitiesmost important to mission accomplishment. All employeesare held accountable for achieving results that support theagencys strategic plan goals and objectives.

    The agencys performance management systemdifferentiates between high and low levels of performance.

    Agencies with a high percentage of outstanding ratingsalso demonstrate a high level of achievement of theirstrategic goals and objectives and/or programaccomplishments as reflected in the agency annualperformance plan.

    Supervisors and managers use performance results tooffer feedback, identify developmental needs to helpimprove employee performance, and address instances ofpoor performance.

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    Section IV: Results-Oriented Performance Culture System

    Compliance Results

    The agency has an OPM-approved performance appraisalsystem(s) in place and administers the system(s) inaccordance with 5 U.S.C. chapter 43 or other

    congressionally-mandated enabling legislation.

    The agency CHCO carries out workforce developmentprovisions of the CHCO Act of 2002 (5 U.S.C. 1402).

    The following pages provide key elements and suggestedperformance indicators for this critical success factor.

    RELATED TOOLS The following tools support Performance Appraisal. Refer to

    Appendix A for tools.

    ToolAppendix APage Number

    Aligning Performance Plans with Organizational Goals: OPM's Eight-Step Process

    103

    Checklist for Meeting Regulatory Requirements: PerformanceAppraisal Systems

    109

    Performance Management Overview 115

    Federal Human Capital Survey (FHCS): Questions Related to theResults-Oriented Performance Culture System

    121

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    Aligns employee performanceplans with organizational goals Focuses employees on

    achieving results

    Requires employeeperformance plans to includeclear performance elements(expectations) with measurablestandards of performance

    Effectiveness Indicators Work units have documented performance

    goals and objectives linked to the agencystrategic plan and performance plan.

    Performance elements (expectations) foremployees are:

    Aligned with organizational goals Clear, specific, and understandable Reasonable and attainable Measurable, observable, or verifiable, and

    results oriented

    Communicated in a timely fashion Key in fostering continual improvement in

    productivity.

    Compliance Indicators

    Agency managers plan and communicateperformance elements (expectations) andstandards linked with strategic planninginitiatives in accordance with the ExecutivePerformance and Accountability Interim Rule(5 CFR 430 and 1330) or applicable agencydirectives.

    In accordance with 5 CFR 430 subparts b andc, performance plans must:

    Be issued at the beginning of the appraisalperiod

    Include at least one critical element

    For SES, must include balanced measures of

    business results, employee, and customerperspectives.

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    Senior employee ratings (as well as subordinateemployees expectations and ratings for thosewith supervisory responsibilities) appropriatelyreflect the employees performance elements(performance expectations), relevant programperformance measures, and any other relevantfactors in accordance with the ExecutivePerformance and Accountability Interim Rule(5 CFR 430 or applicable agency directives and1330).

    As stated in 5 CFR 430 or applicable agencydirectives, the agency has establishedemployee performance plans, including, but notlimited to, critical elements and performancestandards.

    Makes meaningful distinctionsin levels of performance

    Effectiveness Indicators

    The agency performance appraisal system forsenior executive and senior professionalemployees provides for meaningful distinctionsbased on relative performance. These systems

    include multiple levels against which toappraise employees. The rating levelsidentified are appropriate to the employeescovered by the system (e.g., four or five levelsfor systems certified by the Office of PersonnelManagement (OPM) covering Senior ExecutiveService (SES) employees.

    Agency performance appraisal systems forother thansenior executive and seniorprofessional employees provide for adequatelydistinguishing between levels of performance

    (i.e., include multiple performance levelsagainst which to appraise employees, with atleast one summary rating level above FullySuccessful). A review of performance plansindicates performance standards are clear andunderstandable and are an effective tool

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    for distinguishing between levels ofperformance.

    A high number of outstanding performanceratings or large cash awards is supported byachievement of strategic goals and objectivesand/or program goals as reflected in theagencys annual performance report.

    Compliance Indicators

    Performance information is used to adjust payor reward, reassign, develop, and remove

    senior executives or make other personneldecisions in accordance with 5 CFR 430.304;and for all other employees in accordance with5 CFR 430 or applicable agency directives.

    To satisfy the requirements of the ExecutivePerformance and Accountability Interim Rule (5CFR 430 and 1330 or applicable agencydirectives), the agencys certified performanceappraisal system for senior employees providesfor performance differentiation so its annual

    ratings, pay adjustments, and awards result inmeaningful distinctions based on relativeperformance.

    Provides a process for dealingwith poor performance

    Effectiveness Indicators

    Policies and procedures, including delegation ofauthority, for addressing poor performancehave been developed and communicated tosupervisors.

    Analysis is performed to identify the cause ofany organizational or individual performance

    shortfalls, and appropriate performanceimprovement strategies are identified andimplemented.

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    Compliance Indicators Managers and supervisors receive training in

    the appropriate use of performanceimprovement strategies (e.g., coaching,mentoring, training, reassignment, providingeffective feedback) in accordance with theFederal Workforce Flexibility Act.

    Supervisors affirmatively assist, evaluate, and,if appropriate, separate probationaryemployees during their probation period in

    accordance with 5 CFR 315. Managers and supervisors take appropriate

    action (e.g., downgrade, within-grade increasedenial, reassignment, removal) in cases ofminimally successful or unsatisfactoryperformance where performance improvementstrategies are not successful, in accordancewith 5 CFR 432, 752, and 531.

    Involves employees in thedevelopment of their

    performance plans Requires employees receive

    feedback on their performance

    Effectiveness Indicator

    The agency performance appraisal systemencourages employee participation inestablishing performance plans.

    Compliance Indicators

    Employees are covered by recordedperformance plans, which are communicated toemployees at the beginning of each appraisalperiod. Plans include critical elements andperformance standards, in accordance with 5CFR 430 or applicable agency directives.

    Employee performance is monitored by thesupervisor and discussed with the employee onan ongoing basis during the designatedappraisal period, with one or more progressreviews conducted and documented, inaccordance with 5 CFR 430 or applicableagency directives.

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    Employees are given ratings of record at theend of each appraisal period and/or at otherappropriate times during the appraisal period inaccordance with 5 CFR 430 or applicableagency directives.

    The agency encourages employee participationin establishing performance plans as stated in 5CFR 430.206 or applicable agency directives.

    Provides for training toexecutives, managers, and

    supervisors to ensure they havethe knowledge, skills, andabilities to effectively manageperformance

    Holds executives, managers,and supervisors accountable intheir performance plans for therigorous appraisal of theirsubordinates

    Effectiveness Indicators

    Performance elements (performanceexpectations) for senior executives, managers,and supervisors are:

    Aligned with organizational goals Clear, specific, and understandable Reasonable and attainable Measurable, observable, or verifiable, and

    results oriented

    Balanced between expected results andother indicators such as leadership

    behaviors and employee and stakeholderfeedback

    Communicated in a timely fashion Key in fostering continual improvement in

    productivity.

    All supervisors, managers, and executivesreceive training on performance managementand coaching/feedback techniques.

    Sources of data (e.g., Federal Human CapitalSurvey, upward feedback, multi-raterassessment) indicate supervisors, managers,and executives demonstrate effectiveperformance management andcoaching/feedback skills.

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    Reviews of performance plans for all levels ofthe agency indicate supervisors, managers, andexecutives are held accountable for theperformance management of theirsubordinates.

    Compliance Indicator

    The agency has established and implemented aspecific training program for managers inaccordance with the Federal WorkforceFlexibility Act that provides training on actions,

    options, and strategies a manager may use in: Communicating with employees whose

    performance is unacceptable

    Mentoring employees and improvingemployee performance and productivity.

    Establishes a process forperiodically evaluating theeffectiveness of the appraisalsystem so the agency can usethe evaluation data to improve

    the system.

    Effectiveness Indicators

    The agency regularly tracks performance andreports results.

    Survey results and/or interviews indicateemployees understand their performanceelements (performance expectations), considerthem to be fair, and understand how theirefforts contribute to mission accomplishment.

    Workforce survey results indicate employeesperceive a linkage between high performanceand recognition and awards. Employees alsobelieve creativity and innovation are rewardedand their own performance evaluations properlyreflect their level of performance.

    Statistical data related to actions for poorperformance (including separations forperformance, number of removals anddowngrades, and number of denials of within-grade increases) indicate these remedies arebeing used appropriately.

    Statistical data for performance ratings andawards, in the context of an empirical review of

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    Section IV: Results-Oriented Performance Culture System

    PERFORMANCE APPRAISAL

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a performanceappraisal system that:

    the performance decision-making process,show appropriate distribution and meaningfuldistinctions.

    Compliance Indicator

    The agencys performance appraisal system(s)and program(s) are evaluated in accordancewith 5 CFR 430 or applicable agency directives.

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    Section IV: Results-Oriented Performance Culture System

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS:AWARDS When the key elements of the critical success factor Awardsare effectively implemented, agencies will realize the followingresults:

    Effectiveness Results

    Employees have a direct line of sight betweenperformance elements (performance expectations) andaward systems and the agency mission. These links havebeen communicated to and are understood by employees,enabling them to focus their work effort on those activitiesmost important to mission accomplishment. All employeesare held accountable for achieving results that support theagencys strategic plan goals and objectives.

    The agency has created a reward environment, beyondcompensation and benefits, that contributes to attracting,retaining, and motivating employees.

    Compliance Result

    The agency has developed one or more awards programsfor its employees that obligates funds, and documentsawards justifications in accordance with 5 CFR 451.

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    Section IV: Results-Oriented Performance Culture System

    The following page provides key elements and suggestedperformance indicators for this critical success factor.

    RELATED

    TOOLS

    The following tool supports Awards. Refer to Appendix A for

    the tool.

    ToolAppendix APage Number

    Federal Human Capital Survey (FHCS): Questions Related to theResults-Oriented Performance Culture System

    121

    Section IV - 18 September 2005

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    Section IV: Results-Oriented Performance Culture System

    AWARDS

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has an awards systemthat:

    Is aligned with organizationalgoals and values Has clear criteria for awards,

    communicated effectively soemployees understand thepurpose of the awards

    Includes a variety of types ofawards (e.g., formal, monetary,nonmonetary, time-off), givingsupervisors have a wide range

    of tools available to recognizeperformance

    Provides incentives forperforming at an exemplarylevel

    Recognizes top performersappropriately

    Establishes a process forperiodically evaluating theeffectiveness of the awards

    system so the agency can usethe evaluation data to improvethe system.

    Effectiveness Indicators The agency has designed, communicated, and

    implemented an awards program aligned withorganizational goals, based on clear criteria,and tailored to the interests and priorities of theagencys workforce.

    The agency uses a variety of monetary andnonmonetary awards (e.g., certificates,recognition in agency publications, awardceremonies).

    Executives, managers, and supervisors receivetraining on available awards and how to usethem to attract, retain, and motivateemployees.

    Surveys and/or interviews indicate employeesfeel valued and appropriately recognized forperformance.

    Compliance Indicator

    The agency communicates with employees andsupervisors about awards programs, evaluatesits programs, documents awards appropriately,and gives due weight to awards in qualifyingand selecting employees for promotionpromoting employees in accordance with 5U.S.C. 3362.

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS: PAY FORPERFORMANCE

    When the key elements of the critical success factor Pay forPerformance are effectively implemented, agencies will realizethe following results:

    Effectiveness Results

    The pay-for-performance system, where authorized by lawand regulation, is results-driven, producing a distributionof pay adjustments and bonuses based on individualcontribution, organizational performance, and/or teamperformance.

    The pay-for-performance system, where authorized by lawand regulation, ensures employee and supervisory

    accountability with respect to individual performance andorganizational results.

    Employees pay is linked to their performance ratings.

    Supervisors and managers make meaningful distinctions inperformance ratings.

    Compliance Result

    Pay adjustments, cash awards, and levels of pay based onthe results of the appraisal process accurately reflect and

    recognize individual performance and/or contribution tothe agencys performance in accordance with applicableagency directives.

    The following pages provide key elements and suggestedperformance indicators for this critical success factor.

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    Section IV: Results-Oriented Performance Culture System

    PAY FOR PERFORMANCE

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    When authorized, the agency has apay-for performance system that:-

    Makes pay distinctions basedon performance Includes a transparent process

    for making pay adjustments

    Requires clear and frequentcommunications about the paysystem and how it operates.

    Effectiveness Indicators An understandable pay pool structure (e.g.,

    roles and responsibilities) and process formaking timely pay determinations have beencommunicated across the agency using avariety of methods (e.g., Web sites, handbooks,policies, announcements).

    Managers, supervisors, and employees areoriented and/or trained at the beginning of theperformance cycle on the relationship between

    their performance and salary adjustments andawards at the end of the cycle.

    Data on pay pool determinations/discussionsindicate:

    The budget is effectively managed. Top performers are getting the highest pay

    increases and/or awards.

    Employees perceive the process to be fairand credible.

    Pay adjustments correlate with performanceratings.

    Compliance Indicators

    For senior employees, individual pay rates andpay adjustments reflect meaningful distinctionsbased on relative contribution to agencyperformance in accordance with the ExecutivePerformance and Accountability Interim Rule (5CFR 430 or applicable agency directives and1330).

    Pay-for-performance systems, authorized byOPM as part of Demonstration Projects, areevaluated periodically to determine compliancewith the Project Plan in accordance with 5 CFR470.317.

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    Section IV: Results-Oriented Performance Culture System

    PAY FOR PERFORMANCE

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    When authorized, the agency has apay-for-performance system that:

    Pay-for-performance systems authorized byCongress are in compliance with their enablinglegislation, regulations, and operating guidance(e.g., DHS HRM system in chapter 97 of title 5,U.S. Code and part 9701 of 5 CFR; and theprovisions of the National Security PersonnelSystem, chapter 99 of title 5, U.S. Code andpart 9901 of 5 CFR).

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    Section IV: Results-Oriented Performance Culture System

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS: DIVERSITYMANAGEMENT

    When the key elements of the critical success factor DiversityManagement are effectively implemented, agencies will realizethe following results:

    Effectiveness Results

    The agency has implemented a diversity managementprogram and has shown positive results in creating adiverse workforce.

    The agency is responsive to the needs of diverse groups,resulting in a positive work environment conducive to allemployees achieving their potential without fear or abuse.

    Compliance Result

    The agency ensures equal opportunities for employeeswithout discrimination as prescribed in 5 U.S.C. 7201.

    The following pages provide key elements and suggestedperformance indicators for this critical success factor.

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    Section IV: Results-Oriented Performance Culture System

    DIVERSITY MANAGEMENT

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a diversi ymanagement system that:

    t

    Tracks and analyzes workforcediversity trends Develops and implements

    diversity outreach plans as partof the agencys overall outreachefforts.

    Effectiveness Indicators The agencys diversity program intent and

    processes are communicated to all employees.

    Surveys and/or interviews show the workforceis aware of, and generally supports, diversityprogram efforts.

    The agency develops and implements diversityprograms to improve diversity within theagency including:

    A recruitment strategy to reach diversepopulations at colleges/universities,minority-focused professional organizations,and other organizations representingwomen, veterans, people with disabilities,and other groups, as part of the agencysoverall outreach strategy

    Encouragement of the participation ofdiverse groups in occupation-focused andleadership training and developmentprograms

    Family-friendly policies relating to workschedules, telework, and other workplaceflexibilities.

    The agencys diversity program is inclusive ofall groups and is based on analysis ofrepresentation of various groups includingpeople with disabilities, various minoritygroups, and women.

    The diversity program is actively endorsed andsupported by agency senior leadership throughpolicy, budget allocation, and personal

    endorsements.The agency supports forums and activities forrecognized interest groups to provide ways tocommunicate with the workforce about theimportance of diversity.

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    Section IV: Results-Oriented Performance Culture System

    DIVERSITY MANAGEMENT

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a diversitymanagement system that:

    Managers, supervisors, and employees receivetraining from an agency-developed, diversity-related training curriculum.

    The respect for diversity index score fromOPMs Federal Human Capital Survey indicatesemployees perceive their organization respectsand welcomes the diversity that makes up theFederal workforce.

    Data on human resources program and systemdecisions/actions (e.g., complaints; personnelactions such as selections, promotions, and

    disciplinary actions) are analyzed in the contextof empirical information about the agencysemployment practices, to verify discriminationis not occurring.

    The agency provides resources in accessibleformats.

    Compliance Indicators

    The Federal Equal Opportunity RecruitmentProgram (FEORP) [5 CFR 720.205], theDisabled Veterans Affirmative Action Program

    (DVAAP) [5 CFR 720.304], and other outreachprograms are implemented in accordance with5 U.S.C. 7201 and the following Federal EqualEmployment Opportunity (EEO) laws:

    Title 7 of the Civil Rights Act of 1964 (Title7)

    Equal Pay Act of 1963 (EPA) Age Discrimination in Employment Act of

    1967 (ADEA)

    Title 1 and title 5 of the Americans withDisabilities Act of 1990 (ADA)

    Sections 501 and 505 of the RehabilitationAct of 1973

    Civil Rights Act of 1991.[Note: The Equal Employment OpportunityCommission is the jurisdictional authority forthe EEO laws listed immediately above, not

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    Section IV: Results-Oriented Performance Culture System

    DIVERSITY MANAGEMENT

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a diversitymanagement system that:

    OPM. These legal citations are listed forhuman capital practitioners referencebecause agencies are subject to them.]

    The agency has published up-to-date policiesindicating zero tolerance for sexual harassmentand discrimination in the workplace inaccordance with EEOC guidelines, including 29CFR 1604. [Note: This indicator is also underthe jurisdiction of the EEOC.]

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    Section IV: Results-Oriented Performance Culture System

    The Results-Oriented Performance CultureSystem

    Communication

    Performance Appraisal

    Awards

    Pay for Performance

    Diversity Management

    SECTION IV

    Results-OrientedPerformance Culture

    System

    Labor/Management Relations

    RESULTS:LABOR/MANAGEMENTRELATIONS

    When the key elements of the critical success factorLabor/Management Relations are effectively implemented,agencies will realize the following results:

    Effectiveness Result

    Managers effectively administer contractual and statutoryprovisions to accomplish agency goals; workplace conflictsare resolved fairly, promptly, and effectively; andmanagers, union officials, and employees work together toaccomplish the agencys mission through effectivecommunication and problem solving.

    Compliance Result

    The agency recognizes the right of employees to organize,bargain collectively, and participate through labororganizations in accordance with 5 U.S.C. chapter 71.

    The following page provides key elements and suggestedperformance indicators for this critical success factor.

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    Section IV: Results-Oriented Performance Culture System

    LABOR/MANAGEMENT RELATIONS

    KEYELEMENTS SUGGESTED PERFORMANCE INDICATORS

    The agency has a labor/managemenrelations sys em that:

    tt

    Provides a process encouraginglabor and management tojointly develop successful plansto accomplish organizationalgoals and to develop effectivesolutions to workplacechallenges

    Sets the stage for effectivelyworking through human capitalissues

    Ensures management is awareof and properly appliescollective bargainingagreements and satisfiesstatutory labor-managementrelations obligations.

    Effectiveness Indicators Data on complaints, grievances, and unfair

    labor practices are gathered, analyzed, andacted upon as appropriate. Data indicateproblems are usually resolved at the lowestpracticable level and management is complyingwith contractual and statutory requirements.

    Management works to resolve conflictspromptly and in a manner that enhancesagency performance.

    The agency implements an alternative disputeresolution program to resolve employee/laborrelations issues. The program achievesdocumented results in resolving problemsituations.

    Compliance Indicator

    Recognized labor organizations are afforded therights established in 5 U.S.C. 7101 or othercongressionally-mandated enabling legislation.