Pass/Fail Performance Management System for FSA Employees

1. The new Pass/Fail performance management system was effective January 1, 1999 for all FSA employees including County Office employees, at locations where there are no recognized bargaining units. 1. To simplify the appraisal process 2. To focus more attention on employee 3. Feedback and development, and 4. To foster a sense of teamwork. The decision to use a pass/fail system is:

2. Current System Three Level Element Rating: Does Not Meet Fully Successful Meets Fully Successful Exceeds Fully Successful Five Level Summary Rating: Unacceptable Marginal Fully Successful Superior Outstanding

3. Two level element rating: • Results achieved • Results not achieved • Two level summary rating: • (same as above but equating to) • Fully Successful • Unacceptable

4. AD 2000 Performance Plan Agreement and Appraisal Form 1. Critical Elements Only. 2. Generic Elements and Standards. 3. 2 to 5 Elements. 4. Can Supplement the Generic Standard as needed. Continued on next slide

5. AD 2000 Performance Plan Agreement and Appraisal Form 5. Element 9 - EO/CR for managers. 6. Element 10 - EO-CR for employees. 7. Blank spaces for specialized elements 13, 14 and 15. 8. Rating Certification.

6. CONTINUING CONCEPTS • New standards established within 30 days of position change • Performance Standards • Performance Work Plan • Critical Elements • Appraisal Period • Minimum Appraisal Period (90 days) Continued on next slide

7. CONTINUING CONCEPTS • Progress Reviews • Element Rating • Rating of Record • Rating Official • Rating Official prevails • Reviewing Official

8. NEW CONCEPTS • Opportunity to Improve • Results Achieved • Results Not Achieved • Additional Performance Elements • All Elements Are Critical • New Forms

9. L I N K A G E S  RESULTS ACHIEVED NEEDED FOR WGI.  RESULTS ACHIEVED NEEDED FOR CAREERLADDER PROMOTION.  TRAINING AND DEVELOPMENT NEEDS CAN FLOW FROM APPRAISAL.  RATING HELPS SET SERVICE CREDIT AND RETENTION STANDING FOR RIF.

10. EMPLOYEES ARE RESPONSIBLE FOR:  Communicating with the Supervisor throughout the appraisal period.  Participating in the development of performance work plans and measurable performance standards.  Assuring that they have a clear understanding of their rating official’s expectations and requesting clarification when necessary.  Assisting in identifying training needs to enhance performance. Continued on next slide

11. EMPLOYEES ARE RESPONSIBLE FOR:  Managing performance to achieve expectations and bringing to the rating official’s attention circumstances that may effect achievement of standards.  Participating in discussions of individual performance.  Actively listening and considering feedback with an open mind.  Providing input on accomplishments.  Improving those aspects of performance identified as needing improvement

12. Rating OFFICIALS are RESPONSIBLE for:  Informing employees of the overall mission, objectives, goals, plans, and Agency activities, work unit and the employee’s related duties and responsibilities.  Providing feedback to the employee through ongoing communication and actively listening and considering feedback from the employee and customers.  Providing the employee the opportunity to participate in developing performance work plans.  Conducting and documenting at least one formal progress review around the midpoint of the appraisal period and additional reviews as necessary. Continued on next slide

13. Rating OFFICIALS are RESPONSIBLE for:  Completing performance ratings which include evaluating and documenting employees’ actual accomplishments and determining summary levels.  Recommending personnel actions and/or training, as necessary, based on the employee’s level of performance in relation to the performance standards and elements.  Addressing concerns at the lowest possible level.

14. THE “ADDITIONAL” PERFORMANCE ELEMENT Why would I want to use an “additional” performance element if it cannot be considered in the performance rating? 1. New Work Assignment. 2. Group Performance. 3. Awards

15. THE “ADDITIONAL” PERFORMANCE ELEMENT What is an “additional” performance element? An additional performance element is a “dimension or aspect of individual, team, or organizational performance that is not a critical element” and cannot be used in assigning a summary rating level.

16. EMPLOYEE RECOGNITION

17. EMPLOYEE RECOGNITION PROGRAM Introduction The contract adopts the Employee Recognition Program Handbook for the Service Center Agencies. This can be found on the HRD website at: http://dc.ffasintranet.usda.gov/hrd/cmmnreco.htm Continued on next page

18. EMPLOYEE RECOGNITION PROGRAM The Handbook In previous years, employees who received Outstanding ratings were guaranteed their choice of either a QSI, a Performance Bonus, or a Time Off Award. Because of this, most of the awards budget was spent on QSIs, little being left for Extra Effort/Spot Awards during the rest of the FY. The typical “cost” of a QSI over one year was $850 for a GS-7 and $1,550 for a GS-12.

19. EMPLOYEE RECOGNITION PROGRAM Under the new policy, there is an effort to de-link ratings and awards. The idea is to give awards based on specific accomplishments rather than ratings. This will be a transition year. Even though we are trying to de-link ratings and awards, you can still give awards based on ratings - it’s just they’re no longer mandatory. Employees with Outstanding ratings may receive smaller awards, or possibly no award at all. The idea is to free up more money for Extra Effort/Spot Awards during the rest of the FY.

20. EMPLOYEE RECOGNITION PROGRAM The following are the types of awards available under the new Employee Recognition Program: 1. QSI. 2. Cash Awards: amounts up $500 processed as Spot Awards (i.e.., employee gets actual amount and NFC “grosses up” total to cover taxes), amounts over $500 processed as Extra Effort Awards (ie., taxes withheld up front and employee only receives “after taxes” amount). 3. Time Off Awards - of up to 40 hours per award (an employee can only receive up to 80 hours in time off awards per leave year). Note: time off awards are transferable within an agency, but not between agencies. Continued on next page

21. EMPLOYEE RECOGNITION PROGRAM The following are the types of awards available under the new Employee Recognition Program: 4. Certificates, Letters of Commendation, “Thank You” Notes. 5. Keepsakes (suitable for display and with Agency logo) - awards money can be used to purchase these items. 6. Agency/Department Honorary Awards. Continued on next page

22. EMPLOYEE RECOGNITION PROGRAM Although QSI’s are no longer mandatory with an Outstanding rating, they are still available with a written justification. Performance Bonuses are not mentioned in the new policy. If you do wish to give a lump-sum cash award based on a rating, you can designate it as an Extra Effort Award and it will achieve the same purpose. Employees are eligible for more than one award each year: they are eligible for an award each time they do something deserving. It is important that the system be and be seen as equitable, therefore, it will be necessary for supervisors to establish criteria granting awards which they will apply consistently across their area of responsibility.

23. CONTRACT TRAINING: EMPLOYEE RECOGNITION It is recommended that awards be meaningful. This means that the value of the award matches the contribution. If the contribution is very important, the award should be sizeable. At the other end of the scale, even the most minor recognition - such as a keepsake - should be meaningful and not be perceived as being “cheap”. Continued on next page

24. CONTRACT TRAINING: EMPLOYEE RECOGNITION Other Provisions * When the awards money is allocated to the Deputy Administrators, they allocate 75% to their Division Directors immediately and hold 25% back for distribution later in the year. This is to ensure that money is available throughout the year to recognize deserving accomplishments. Continued on next page

25. CONTRACT TRAINING: EMPLOYEE RECOGNITION * Any employee may nominate any co-worker for any award except a QSI (the supervisor must nominate for this) - as a courtesy, when giving a time off award, the supervisor of the employee receiving the award should be contacted beforehand to make sure no undue burden is being placed on the work unit. Continued on next page

26. CONTRACT TRAINING: EMPLOYEE RECOGNITION * Two new Employee Recognition Program Review committees are established - one for RMA and one for FSA. These committees are to administer, assess, and review the Employee Recognition Programs to ensure they comply with the principles of non-discrimination, equity, timeliness, etc. They are also responsible for publishing the names of recipients of awards. They have both held their initial meetings and have begun their work. Contacts Stephen Crisp, HRD (202) 418-8975 or Cheryl Fuller, HRD (202) 418-8973

27. TWO-LEVEL PERFORMANCE MANAGEMENT WEBSITES http://dc.ffasintranet.usda.gov/hrd/performa.htm - Performance Management Policy Manual http://www.fsa.usda.gov/dam/forms/fsaforms.asp Form AD-2000 Performance Plan Agreement and Appraisal Form AD-2000A, Opportunity-To-Improve http://dc.ffasintranet.usda.gov/hrd/cmmnreco.htm- Employee Recognition and Awards

28. FREQUENTLY ASKED QUESTIONS

29. FREQUENTLY ASKED QUESTIONS What is Performance Management? Performance management is a management function which includes the processes of planning, monitoring, developing appraising, and rewarding performance. Who is covered by the Program? This program covers ALL non-SES employees, who are reasonably expected to be employed for greater than 90 days, in Rural Development, Natural Resources Conservation Service, RMA and Farm Service Agency, including FSA County employees, Schedule C employees are covered by this program but are not afforded any rights as established by 5 United States Code (USC) 4303.

30. FREQUENTLY ASKED QUESTIONS What are the legal authorities that govern Performance Management? This program complies with the USDA Performance Management System established on June 12, 1996; Chapter 43 of Title 5, Code of Federal Regulations (CFR). What are the responsibilities of employees? • Communicating with the Supervisor throughout the appraisal period. • Participating in the development of work plans and measurable performance standards. Continued on next slide

31. FREQUENTLY ASKED QUESTION What are the responsibilities of employees? • Assuring that they have a clear understanding of their rating official’s expectation and requesting clarification when necessary. • Managing performance to achieve expectations and bringing to the rating official's attention circumstances that may affect achievement of standards. • Participating in discussions of individual performance. • Actively listening and considering feedback with an open mind. • Providing input on accomplishments. • Improving those aspects of performance identified as needing improvement.

32. FREQUENTLY ASKED QUESTIONS What are the responsibilities of the Rating Official? • Informing employees of the overall mission, objectives, goals, plans, and activities of the agency and work unit and the employee’s related duties and responsibilities. • Providing feedback to the employee through ongoing communication and actively listening and considering feedback from the employee and customers. • Providing the employee the opportunity to participate in the development of performance work plans. • Providing employees with written performance work plans which identify the critical performance elements related to their specific duties, responsibilities, and expected levels of performance. Continued on next slide

33. FREQUENTLY ASKED QUESTIONS What are the responsibilities of the Rating Official? • Conducting and documenting at least one formal progress review around the midpoint of the appraisal period and additional reviews as necessary. • Completing performance rating which include evaluating and documenting employee’s actual accomplishments and determining summary levels. • Recommending personnel actions and/or training, as necessary, based on the employee’s level of performance in relation to the performance standards and elements. • Addressing concerns at the lowest possible level.

34. FREQUENTLY ASKED QUESTIONS What are the responsibilities of the Reviewing Official? • Reviewing and concurring in “results not achieved” ratings. • Resolving differences between employees and rating officials concerning ratings and adjusting ratings when necessary. • Assisting in resolving concerns at the lowest possible level.

35. FREQUENTLY ASKED QUESTIONS When should new performance plans be established STANDARDS SHOULD BE ESTABLISHED: • Within 30 days of appointment. • If employee is reassigned/promoted to a new position. • If an employee is being detailed to a different area for more than the minimal appraisal period. • Within 30 days of the beginning of an appraisal period. • If the duties of the position are substantially changed during the established appraisal period.

36. FREQUENTLY ASKED QUESTIONS What is a performance work plan? A performance work plan is a written document that identifies critical elements of an employee’s position and the standards by which they will be rated. What is a critical element? A critical element is a work assignment or responsibility of such importance that unacceptable performance on the element would result in a determination that the employee’s overall performance is at the unacceptable, or “Result Not Achieved” level. Non-critical duties are not included in performance plans.

37. FREQUENTLY ASKED QUESTIONS What is the difference between an element and a standard? An element is a component of a position consisting of one or more duties and responsibilities which contribute toward accomplishing the goals and objective of the organization. A standard is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance. It may include, but is not limited to, quality, quantity, cost-efficiency, timeless, and manner of performance.

38. FREQUENTLY ASKED QUESTIONS How is the plan developed? Communication between the rating official and the employee is essential in developing performance work plans. Rating officials and employees should work together to jointly clarify how competencies apply within the work environment so that there is a common understanding about the expectations for performance. In addition, there should be a discussion of the goals of the individual work unit and the employee’s involvement, or contribution, to unit goals for the upcoming year. Continued on next slide

39. FREQUENTLY ASKED QUESTIONS How is the plan developed? Elements should be based on organizational goals, strategic plans, position descriptions, and internal and external customer needs. The standard should focus on results, service quality, and customer satisfaction. The employee and rating official sign and date the plan indicating that it has been discussed and that the employee has had the opportunity to obtain a clear understanding of expectations.

40. FREQUENTLY ASKED QUESTIONS What methods could be used to assist in developing work plan that reflect organizational goals and strategic plans? Appendix B, Quick Reference for Developing Employee Performance Plans That Link to Organizational Goals, provide an 8-step method which can be used to incorporate organizational goals and objectives.

41. FREQUENTLY ASKED QUESTIONS What is the established format? Performance plans are developed on AD-2000, Performance Work Plan. This form provides a description of the element and the result expected. The form also has a place for employees and rating officials to provide further clarification of performance expectations, if needed. The employee and rating official may also provide written comments during the progress reviews. The form also contains discussion topics for use in planning performance and conducting progress reviews.

42. FREQUENTLY ASKED QUESTIONS How many elements are required in a performance plan? Employees may have a minimum of two, but no more than five, rating elements in their performance plans.

43. FREQUENTLY ASKED QUESTIONS What types of elements may be included in a performance plan? Only critical elements may be included in the performance plan. All employees must have at least one job specific performance element. This may include supervision, individual contributions to team accomplishments, execution of duties, etc., or an element may be specifically written for this purpose in the blank numbered blocks provided at the end of the standardized elements. Amandatory Equal Opportunity/Civil Rights (EO/CR) element is required as a stand-alone element for all supervisory and managerial officials (Element 9). Employees who are not supervisors must also have the EO/CR (Element 10) standard; this has been incorporated into Element 10.

44. FREQUENTLY ASKED QUESTIONS What is an additional performance element? Additional performance elements provide agencies another tool for communicating performance expectation important to the organization. In essence, they are dimensions or aspects of overall performance that the agency wishes to communicate and, appraise, but which will not be used in assigning a summary level. Such additional elements may include objectives, goals, programs plans, work plans, and other methods of expression expected performance. Further information on additional elements and examples will be provided.

45. FREQUENTLY ASKED QUESTIONS If additional performance elements are not attached to the Performance plan, what purpose do they serve? Additional performance elements communicate a fuller picture of the performance that is expected and encourage dialogue between supervisor, employees, and peers that otherwise might not have taken place. They provide a tool for monitoring and tracking team and/or group performance and individual expectations toward accomplishing organization goals. What is the established format for additional elements? Additional elements are to be provided separately in a format best suited for the element and are not attached to the performance plan.

46. FREQUENTLY ASKED QUESTIONS What if there is a disagreement with the content of the performance plan? The rating official and the employee should attempt to resolve the disagreement informally. If an agreement cannot be reached, the rating official’s decision prevails. What are the alternatives if a performance plan is not received within the specified timeframe? If an employee does not receive a performance plan within the specified time frame, they should contact their rating official to inquire of the status and request a meeting to jointly develop the standards. If standards are still not established, the employee should seek assistance from the rating official’s supervisor or their Service Human Resource Office. Bargaining Unit employees may also seek the assistance of their exclusive representative.

47. FREQUENTLY ASKED QUESTIONS What if an employee refuses to sign a Performance Plan? If the employee refuses to sign the performance work plan, the supervisor should note this in the employee’s signature block, along with the date the plan was discussed and implemented. Lack of the employee’s signature does not negate implementation of the plan. Can performance plans be grieved? By law, the contents of a performance plan cannot be grieved.

48. FREQUENTLY ASKED QUESTIONS Who retains the performance plan? Throughout the appraisal period, the rating official will maintain the original copy of the performance plan. The employee will be provided with a copy. How will performance be monitored and appraised? The employee and Rating Official will meet periodically throughout the appraisal period to provide feedback relating to performance. This will be accomplished through progress review(s), performance ratings, and ongoing communication. The methods for monitoring performance, i.e., should be discussed with the employee prior to implementation of the performance plan.

49. FREQUENTLY ASKED QUESTIONS What is the appraisal period? Appraisal period refers to the period of time during which an employee’s performance will be reviewed and a rating of period generally begins on October 1 of each year and end on September 30 of the following year. What is the minimum appraisal period? The minimum appraisal period is the 90-calendar-day period of time, or such other period of time as established in local negotiated labor-management agreements, during which an employee must have operated under a performance work plan and for which the employee may receive a performance rating.

50. FREQUENTLY ASKED QUESTIONS What is a Progress Review? A progress review is a joint discussion between the rating official and the employee regarding specific strengths and weaknesses in relation to the employee’s performance work plan, as well as any areas of performance which are central to the employees’ position. Open dialog between the employee and the rating official is crucial. A progress review does not involve the issuance of a rating of record How often are Progress Reviews held? Progress reviews are conducted at least once during a full appraisal period. Normally these required reviews will be accomplished during the midpoint of the appraisal period.