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					       Department of Defense
 National Security Personnel System


    HR Elements and
Performance Management
      for Employees
     (Supplemented)
    Flexibility – Accountability – Excellence


            www.cpms.osd.mil/nsps
    http://cpol.army.mil/library/general/nsps/
                            Welcome, Admin Info, Agenda

• Welcome to NSPS HR Elements and Performance
  Management for Managers and Supervisors
• Logistics
• Introductions
• Agenda
• Course materials, handbook, exercise book




18 Sep 2006 / 20 Jul 2006                          Emp-2
                                                             Agenda

                                                      Page
               1. NSPS Overview                         7
               2. Conversion to NSPS                   15
               3. Classification under NSPS            31
               4. Staffing Changes                     45
               5. Compensation under NSPS              61
               6. Performance Management Basics        83
               7. NSPS Performance Management Cycle   139
               8. Performance Conversations           181




18 Sep 2006 / 20 Jul 2006                                      Emp-3
                                          Course Objectives

After completing this course, participants will be able to:
• Identify what is changing and what is not changing
  under NSPS
• Describe the basic NSPS classification architecture
• Explain the conversion process into NSPS
• Explain what constitutes a promotion under NSPS
• Identify the basic elements of the performance
  management process
• Build performance-focused job objectives that align to
  the organization and relate to the DoD mission


18 Sep 2006 / 20 Jul 2006                                     Emp-4
                                                              Prerequisites

• NSPS 101 (on line) (http://www.cpms.osd.mil/nsps/index.html)
• Read NSPS brochures:
      – Manager/Supervisor: Focusing on Performance
      – Manager/Supervisor: Communicating with Your Staff

• Bring with you to class:
      – Your NSPS conversion career group, pay schedule, and pay band
      – Your current performance/contribution objectives and position
        requirement document (job/position description)
      – Your organization’s goals
• Recommended:
      – Completion of HR for Supervisors or equivalent training



18 Sep 2006 / 20 Jul 2006                                               Emp-5
                                                     Handbook

The Handbook contains:
• NSPS Conversion Charts
• NSPS Career Groups, Pay Schedules, Pay Bands
• Performance Management Cycle and Conversation Guidelines
• Job Objective guidelines and samples
• Self-Assessment guidelines and hints
• Performance Indicators and Contributing Factors
• Rating Levels and Share Ranges
• Performance Conversation Guides
• Classification Standards
• Other reference materials


18 Sep 2006 / 20 Jul 2006                                    Emp-6
                   Lesson 1: NSPS Overview




                                    Return to TOC

18 Sep 2006 / 20 Jul 2006                           Emp-7
                                       Lesson 1 Objectives

After completion of this lesson, you will be able to:
• Identify concepts and processes that remain unchanged
• Identify the changes to major areas of the human
  resource system and processes




18 Sep 2006 / 20 Jul 2006                               Emp-8
                             What NSPS Does Not Change

• Merit system principles     • Overseas entitlements
• Rules against prohibited    • Training
  personnel practices
• Whistleblower protection    • Leave and work
                                schedules
• Veterans’ preference
  rights protected            • Other personnel systems
• Benefits (retirement,         in law
  health, life, etc.)         • Lab demo organizations
• Antidiscrimination laws       (until FY 08)
• Fundamental due process     • Fair Labor Standards Act



18 Sep 2006 / 20 Jul 2006                               Emp-9
                                                                   NSPS Goals

              • Results
                    – To attract and retain top talent
                    – To promote high performance
              • Accountability
                    – Employee
                    – Supervisor
                    – Leadership
              • Flexibility
                    – To respond to mission changes
                    – To realign, reorganize, and reshape the workforce
                    – To assign work
                    – To set pay


18 Sep 2006 / 20 Jul 2006                                                 Emp-10
                                                 HR Design Highlights

   Classification-          Compensation-           Performance
   simple, flexible         performance based,      Management-
                            market sensitive


   • Career Groups          • Rate range            • High-performing
   • Pay Schedules            adjustments             workforce
   • Broad Pay Bands        • Performance           • Pay increases
   • Simplified               payouts               • Includes conduct
     classification         • Local market            and professional
     guidance                 supplements             demeanor
   • DoD occupations        • No change to          • Job objectives
                              incentive awards        linked to mission



                                                                            
18 Sep 2006 / 20 Jul 2006                                                 Emp-11
                            HR Design Highlights (continued)

 Staffing—the right person, in the    Workforce Shaping—streamlined,
 right place, at the right time       mission responsive



 • DoD hiring authorities             • Less disruption
 • Ability to streamline the hiring   • More emphasis on performance
   process                            • Eliminates ―Bump and retreat‖
 • Paysetting flexibilities           • Veterans’ preference rights
 • DoD qualification requirements       protected
 • Veterans’ preference rights
   protected




18 Sep 2006 / 20 Jul 2006                                         Emp-12
                               Lesson 1 Review

• Summary
      – What is not changing
      – HR Design highlights

• Questions?




18 Sep 2006 / 20 Jul 2006                 Emp-13
                            This page intentionally left blank




18 Sep 2006 / 20 Jul 2006                                        Emp-14
              Lesson 2: Conversion to NSPS




                                 Return to TOC

18 Sep 2006 / 20 Jul 2006                        Emp-15
                                              Lesson 2 Objectives

• After completion of this lesson, participants will be able
  to:
      – Describe the initial conversion to NSPS (AcqDemo and GS)
      – Describe the within-grade-increase (WGI) buy-in for GS
        employees
      – Describe how NSPS affects career conditional employees
      – Describe how NSPS affects rating of record
      – Describe how NSPS affects employees on probationary periods




18 Sep 2006 / 20 Jul 2006                                          Emp-16
                                                   Pay upon Initial
                                                Conversion to NSPS

• Conversion will be an automated process
      – Employees converted ―in place‖
      – No change in job descriptions
      – Preview available in NSPS 101 but not for AcqDemo Employees

• No loss in pay
• Based on the classification of the current position of
  record
• Existing PDs will require minor updates (from old pay
  plan & grade to new) BUT no changes to
  contents/format
                                                                  
18 Sep 2006 / 20 Jul 2006                                       Emp-17
                                 Within-Grade-Increase Buy-in

• For GS/GM employees only
      – GS Employees receive a prorated amount at conversion
      – One-time buy-in
      – WGI buy-in calculator is available in NSPS 101 (part of the
        conversion tool)
      – Funds will become part of performance payouts and other pay
        increases
• For AcqDemo employees
      – No WGI Buy-in
      – Most received WGI buy-in when converted from GS to Acq Demo
      – Convert to NSPS after annual January CCAS payout
      – Funds formerly used for WGIs will remain part of performance
        payouts and other pay increases                              
18 Sep 2006 / 20 Jul 2006                                             Emp-18
                             Special Conversion Issues

• Grade retention
• Pay retention
• Temporary promotion and details
• Leader positions
• Fair Labor Standards Act
• Supervisory and managerial positions
• Developmental/Intern Positions



                                                   
18 Sep 2006 / 20 Jul 2006                        Emp-19
                              Sample Conversion Chart for Nonsupervisory Employees
                                        under the Acquisition Demonstration Project




             Find your current Acq Demo category in the first column –
             Go across to find new NSPS pay schedule and pay band

                                                                            
18 Sep 2006 / 20 Jul 2006                                                Emp-20
                             Sample Conversion Chart for Nonsupervisory Employees
                                       under the Acquisition Demonstration Project




            Find your current Acq Demo category in the first column –
            Go across to find new NSPS pay schedule and pay band           
18 Sep 2006 / 20 Jul 2006                                               Emp-21
                              Sample Conversion Chart for Nonsupervisory Employees
                                        under the Acquisition Demonstration Project




            Find your current Acq Demo category in the first column –
            Go across to find new NSPS pay schedule and pay band
                                                                            
18 Sep 2006 / 20 Jul 2006                                                Emp-22
                                              Sample Conversion Chart for Supervisory Employees
                                                    under the Acquisition Demonstration Project




     * Position is converted to a nonsupervisory pay band but it titled and coded as supervisory under the
     mixed position criteria in SC1920.4.4.

     ** Activity should review supervisory positions in this category to determine if they meet the criteria for
     pay band 3 in SC1920, Appendix 5. Where the criteria is met, the employee will be converted to pay band 3.

              Find your current Acq Demo category in the first column –
              Go across to find new NSPS pay schedule and pay band                                                 
18 Sep 2006 / 20 Jul 2006                                                                                    Emp-23
                                 Sample Conversion Chart for Supervisory Employees
                                       under the Acquisition Demonstration Project




            Find your current Acq Demo category in the first column –
            Go across to find new NSPS pay schedule and pay band



                                                                           
18 Sep 2006 / 20 Jul 2006                                               Emp-24
                                 Sample Conversion Chart for Supervisory Employees
                                       under the Acquisition Demonstration Project




          Find your current Acq Demo category in the first column –
          Go across to find new NSPS pay schedule and pay band



                                                                           
18 Sep 2006 / 20 Jul 2006                                               Emp-25
                                                       Sample Conversion Chart
                                               for Nonsupervisory GS Employees

Nonsupervisory               Pay Band 1        Pay Band 2          Pay Band 3          Pay Band 4
Pay Schedules
YA – STND – Prof /            GS-5 to 8
                                                  GS-9 to 13         GS-14 to 15            N/A
Analytical                    GS-9 to 11*

YB – STND – Tech /
                                GS-1 to 6         GS-7 to 10         GS-11 to 12            N/A
Support

YP – STND – SEEP
                               GS-1 to 11             N/A                 N/A               N/A
PGM (Student)

                              GS-5 to 8
YD – E&S – Prof                                   GS-9 to 13         GS-14 to 15            N/A
                              GS-9 to 11*
YE – E&S – Tech /
                                GS-1 to 6         GS-7 to 10         GS-11 to 12           GS-13
Support


           * Positions with a target grade above the current grade are converted to pay band 1

                        See Handbook for complete Conversion Tables
18 Sep 2006 / 20 Jul 2006                                                                        Emp-26
                                              Sample Conversion Chart for
                                                Supervisory GS Employees


Supervisory Pay                Pay Band 1      Pay Band 2         Pay Band 3
Schedules

 YC – STND Supvy / Mgr           GS-6 to 11      GS-12 to 14          GS-15


  YF – E&S Supvy / Mgr           GS-6 to 11      GS-12 to 14          GS-15


  YJ – MED Supvy / Mgr           GS-6 to 11      GS-12 to 14          GS-15


  YN – I&P Supvy / Mgr           GS-6 to 11      GS-12 to 14          GS-15




                     See Handbook for complete Conversion Table

18 Sep 2006 / 20 Jul 2006                                                      Emp-27
                                          Rating of Record

 For Reduction-In-Force Purposes:

 Employeesthree at least one rating of record within the
 •
   preceding
             with
                  years will be assigned one ―level 3‖
     rating upon conversion to NSPS

 The rating of record will of record during the annual
 •
   receives an NSPS rating
                            be replaced once the employee

     performance cycle




                                                            
 18 Sep 2006 / 20 Jul 2006                             Emp-28
                                  Career-Conditional Appointments,
                                              Probationary Periods

 Upon conversion into NSPS:

 Career conditional employees become career employees
 •
       – There are no career conditional appointments under NSPS

 • Employees on initial or supervisory probationary period
   continue probation after conversion




                                                                     
 18 Sep 2006 / 20 Jul 2006                                         Emp-29
                                                     Lesson 2 Review

• Summary
      – Initial conversion to NSPS will be automated
      – Conversion will be according to current classification
      – WGI buy-in for GS employees
      – No Within-Grade-Increase Buy-in for Acq Demo employees
      – Upon conversion previous performance rating of record will be
        Level 3
      – Career conditional appointments go away
      – Probationary periods one year for most employees

• Questions?


18 Sep 2006 / 20 Jul 2006                                          Emp-30
    Lesson 3: Classification under NSPS




                            Return to TOC

18 Sep 2006 / 20 Jul 2006                   Emp-31
                                         Lesson 3 Objectives

After completion of this lesson, you will be able to:


• Define and describe occupational definitions
• Define and describe career groups, pay schedules, and
  pay bands
• Describe NSPS classification appeals




18 Sep 2006 / 20 Jul 2006                               Emp-32
                                  GS vs. NSPS Classification

                        GS                      NSPS

Occupational Family              Career Group

Pay Plan                         Pay Schedule

Title                            Title

Grade                            Pay Band

Occupational Series (#)          Occupational Code (#)

Over 400 OPM GS Classification   15 Standards
Standards



18 Sep 2006 / 20 Jul 2006                                Emp-33
                                                                        GS vs. Acq Demo
                                                                   vs. NSPS Classification

                       GS                         AcqDemo                                             NSPS

Occupational Family                Career Path                                   Career Group
                                   (Business Management /Technical Management    (Standard, Scientific and Engineering, Medical,
                                   Professional, Technical Management Support,   Investigative and Protective Services)
                                   Administrative Support)

Pay Plan                           Pay Schedule                                  Pay Schedule
(GS)                               (NH, NJ, NK)                                  (YA, YB, YC, YD, YE, YF, YG, YH, YI, YJ, YK, YL,
                                                                                 YM, YN, YP)


Title                              Title                                         Title

Grade                              Broadband                                     Pay Band

Occupational Series (#)            Occupational Series (#)                       Occupational Codes (#)

OPM Classification Standards       AcqDemo Standards                             NSPS Standards

Over 400 OPM GS Classification     3 Standards                                   15 Standards
Standards




       18 Sep 2006 / 20 Jul 2006                                                                                     Emp-34
                            Classification Architecture




18 Sep 2006 / 20 Jul 2006                         Emp-35
                            Career Groups by Population
                                        and Percentage




18 Sep 2006 / 20 Jul 2006                         Emp-36
                                      Career Groups and Pay Schedules

     STANDARD CAREER GROUP                INVESTIGATIVE & PROTECTIVE
     • Professional/Analytical (YA)       SERVICES CAREER GROUP
     • Tech/Support (YB)                  • Investigative (YK)

     • Student Employment (YP)            • Fire Protection (YL)

     • Supervisor/Manager (YC)            • Police/Guard (YM)
                                          • Supervisor/Manager (YN)

                                          6% of DoD workforce
      71% of DoD workforce

     MEDICAL CAREER GROUP                 ENGINEERING & SCIENTIFIC CAREER
     • Physician/Dentist (YG)             GROUP
     • Professional (YH)                  • Professional (YD)

     • Tech/Support (YI)                  • Tech/Support (YE)

     • Supervisor/Manager (YJ)            • Supervisor/Manager (YF)


                                          18% of DoD workforce
     5% of DoD workforce


                                                                            
18 Sep 2006 / 20 Jul 2006                                               Emp-37
                                         Pay Schedules (PS)

 Pay Schedules (PS) combine similar types of work within a
 Career Group (CG) based on the occupational definition of:

 • Professional and Analytical
 • Technician / Support

 Supervisory
 •
       (each of the Career Groups have these types of jobs)
 • Students are all in the Standard Career Group



                                                              
 18 Sep 2006 / 20 Jul 2006                                Emp-38
                                              Career Group and
                                          Pay Schedule Example


Occupation                  Career Group Pay Schedule/Code

Engineering, 0801           S&E          Professional / YD


Engineering Tech,
                            S&E          Technician/Support / YE
0802

Engineering Student                      SEEP / YP
                            STND
Trainee, 0899

Supervisory Civil
                            S&E          Supervisory / YF
Engineer, 0810


                                                                   
18 Sep 2006 / 20 Jul 2006                                     Emp-39
                                                                Pay Bands


Pay Band            Prof/Analytical      Tech/Support        Supervisory
      1          Entry/               Entry/Developmental Supervises PB 1
                 Developmental        or Journey
      2          Journey              Journey             Supervises PB 2

      3          Expert/ Program Journey/Expert           Manager
                 Mgr

      4                               Unusual (super)
                                      Expert



                                                                            
18 Sep 2006 / 20 Jul 2006                                              Emp-40
                                                                                         Standard Career Group
                                                                                       (2006 Base Salary only)
                                                                                           Pay Band 3
Professional/Analytical
                                                                                       $74,608 - $124,904
          YA                                     Pay Band 2
                                              $38,175 - $85,578
                            Pay Band 1
                         $25,195 - $60,049

$15,000              35,000                  55,000                75,000               95,000                115,000   135,000

Technician/Support                         Pay Band 3
        YB                              $46,189 - $71,965
                        Pay Band 2
                     $31,209 - $54,649
        Pay Band 1
     $16,352 - $36,509

$15,000              35,000                  55,000                75,000                95,000              115,000    135,000

                                                                                            Pay Band 3
Supervisor/Manager
                                                                                        $77,793 - $124,904
        YC                                                            Pay Band 2
                                                                  $55,360 - $106,186
                              Pay Band 1
                           $31,209 - $60,049

$15,000              35,000                  55,000                75,000                95,000               115,000    135,000

   Student
     YP
                      Pay Band 1
                   $16,352 - $60,049

$15,000              35,000                  55,000                75,000                95,000              115,000          
                                                                                                                        135,000

18 Sep 2006 / 20 Jul 2006 This pay chart reflects base salary only – it does not include locality/LMS.
                     Note:                                                                                                Emp-41
                                      Classifying NSPS Positions

Classification is the assignment of a position to:
    Career group (CG)       Pay schedule (PS)   Pay band (PB)
    Occupational code       Title


                                                    Position
Classification takes into account:                 Management
• Mission of the organization
• Position’s level of difficulty
• Occupational qualifications and competency requirements
• Relationship to other positions or organizational levels
• Prudent fiscal management


18 Sep 2006 / 20 Jul 2006                                       Emp-42
                                    Classification Appeals

• Under NSPS, employees are entitled to appeal the
  classification of their positions (just as before)
• Employees may appeal any classification decision
  relating to their own position:
       Title
       Occupational code
       Pay Band
       Supervisory status

• What changes: Managers make the classification
  decisions


18 Sep 2006 / 20 Jul 2006                              Emp-43
                                             Lesson 3 Review

• Summary
      – NSPS classification architecture is simple and
        streamlined
      – Occupational definitions
      – Structure
             Career groups
             Pay schedules
             Pay bands
      – Classification process under NSPS
      – Classification appeals

• Questions?
18 Sep 2006 / 20 Jul 2006                                Emp-44
                            Lesson 4: Staffing



                                          Return to TOC

18 Sep 2006 / 20 Jul 2006                                 Emp-45
                                             Lesson 4 Objectives

After completion of this lesson, you will be able to:
• Identify some of the NSPS changes in hiring and employment
• Explain what constitutes a promotion under NSPS
• Explain the provisions for probationary periods
• Explain changes in tenure provisions
• Explain changes in Reduction in Force (workforce shaping)




18 Sep 2006 / 20 Jul 2006                                      Emp-46
                            Not Changing in Hiring and Employment

• Merit Systems Principles
• Prohibited Personnel Practices
• Veterans’ Preference rights
• Use of mandatory placement programs
      – Priority Placement Program (PPP), Reemployment Priority List (RPL),
        Interagency Career Transition Assistance Program (ICTAP)

• Current competitive and excepted service appointing authorities and
  entitlements
• Current hiring flexibilities
• OPM qualification standards
• Posting jobs on USAJOBS


18 Sep 2006 / 20 Jul 2006                                                Emp-47
                            Changing in Hiring and Employment:
                                 EXTERNAL RECRUITMENT


 • Replaces grades with           • Eliminates career
   pay bands                        conditional
                                    appointments
 • Allows DoD to create
   new qualification              • Modifies probationary
   standards                        periods
 • Establishes new                • May consider applicants
   appointment                      in the local commuting
   authorities                      area before all others



                                                              
18 Sep 2006 / 20 Jul 2006                                   Emp-48
                                             Probationary Periods

 One year with option for three years
 •
       – For selected occupations
       – Determined by DoD (not individual managers)

 • Longer probationary periods may be established by
   occupation
       – Critical to a performance-based system

 • Two year probationary period established for certain
   excepted service positions
 • Supervisors must still complete a 1-year (in service)
   probationary period
                                                              
 18 Sep 2006 / 20 Jul 2006                                  Emp-49
                                                Internal Placement

• Time in grade requirements eliminated
• Time after competitive appointment requirement
  eliminated
• New assignments commensurate with qualifications do
  not always need a personnel action
      – Personnel actions normally not required for
            Assignments to perform new tasks
            Projects or functions

      – If equal to current qualifications, area or expertise

                                                                  
18 Sep 2006 / 20 Jul 2006                                       Emp-50
                                                          New Definitions

  • Promotion: Movement of an employee from one band to a higher
    band
         Example: Pay Band 2 to Pay Band 3

 Reassignment: the same orofaan employeepayaband on aposition
 •
   or set of duties in
                       Movement
                                comparable
                                           to different

      permanent or temporary/time-limited basis

         Example: Non-supervisory professional and/or analytical pay schedule
          to supervisory PS across corresponding pay bands (2 to 2)

  • Reduction in Band: Movement of an employee either voluntary
    or involuntary from one pay band to a lower pay band
         Example: PB 2 to PB 1


                                                                                 
  18 Sep 2006 / 20 Jul 2006                                                Emp-51
                                           Personnel Actions

• New assignments commensurate with qualifications do
  not always need a personnel action
• Personnel actions normally not required for
      – Assignments to perform new tasks
      – Projects or functions

• If equal to current qualifications, area or expertise




18 Sep 2006 / 20 Jul 2006                                 Emp-52
                                           Competitive / Non-Competitive

Competitive                                     Exception to Competition
•     Movement to higher band/higher level of   •   Movement to same band or comparable
      work                                          level of work (technician to technician)
•     Same basic concepts apply:                •   Same basic concepts apply:
        – Reassignment or reduction in               – Promotion resulting from previous
          band to a position with more                 competitive selection with
          promotion potential                          documented career ladder to
                                                       higher pay band
        – Transfer to a higher pay band or           – Promotion resulting from
          to a position with more promotion            classification at higher pay band
          potential                                    because of additional duties and
                                                       responsibilities




•     Changed under NSPS:
        – Temporary promotion over 180
                                                
                                                •   Changed under NSPS:
                                                     – Temporary promotion to a position
          days to a higher pay band position           in a higher pay band for 180 days
                                                       or less



    18 Sep 2006 / 20 Jul 2006                                                          Emp-53
                                                               Competitive Movement Within and
                                                                            Across Career Groups
               SC1950 Appendix 2                          (Standard and Scientific & Engineering )
 To
         YA1    YA2     YA3       YB1      YB2       YB3      YC1       YC2      YC3      YD1       YD2      YD3       YE1       YE2      YE3      YE4       YF1       YF2    YF3
From 
 YA1*     N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YA2      N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YA3      N      N        N        N         N        N         N        N         N        N         N        N         N        N        N         N           N     N      N
 YB1       Y     Y        Y        N         Y        Y         Y        Y         Y        Y         Y        Y         N        Y         Y        Y           Y     Y      Y
 YB2       Y     Y        Y        N         N        Y         N        Y         Y        Y         Y        Y         N        N         Y        Y           N     Y      Y
 YB3       Y     Y        Y        N         N        N         N        Y         Y        Y         Y        Y         N        N        N         Y           N     Y      Y
 YC1       Y     Y        Y        N         N        Y         N        Y         Y        Y         Y        Y         N        N         Y        Y           N     Y      Y
 YC2      N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YC3      N      N        N        N         N        N         N        N         N        N         N        N         N        N        N         N           N     N      N
YD1*      N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YD2      N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YD3      N      N        N        N         N        N         N        N         N        N         N        N         N        N        N         N           N     N      N
 YE1       Y     Y        Y        N         Y        Y         Y        Y         Y        Y         Y        Y         N        Y         Y        Y           Y     Y      Y
 YE2       Y     Y        Y        N         N        Y         N        Y         Y        Y         Y        Y         N        N         Y        Y           N     Y      Y
 YE3       Y     Y        Y        N         N        N         N        Y         Y        Y         Y        Y         N        N        N         Y           N     Y      Y
 YE4       Y     Y        Y        N         N        N         N        Y         Y        Y         Y        Y         N        N        N         N           N     Y      Y
 YF1       Y     Y        Y        N         N        Y         N        Y         Y        Y         Y        Y         N        N         Y        Y           N     Y      Y
 YF2      N      N        Y        N         N        N         N        N         Y        N         N        Y         N        N        N         N           N     N      Y
 YF3      N      N        N        N         N        N         N        N         N        N         N        N         N        N        N         N           N     N      N
                  *Note: Recruitment for positions in these bands should always be targeted to a full performance level of at least the next h igher pay band.
   18 Sep 2006 / 20 Jul 2006                     Y = Competitive Movement N = Noncompetitive Movement                                                                Emp-54
                              Alternative Forms of Competition


  Alternate Certification
  •                                                  Army Draft Guidance
                                                      September 26, 2006
           – By-name request
           – Candidate must meet criteria of highest group

  Exceptional Performance Promotion
  •
           – Requires Level 5 performance rating
           – Same occupational series and function

  Assessment Boards
  •
           – Pre-established criteria, ranked specific to the
             occupation
           – Selection unique to actual vacancy
                                                                             
18 Sep 2006 / 20 Jul 2006                                                  Emp-55
                                                         Tenure

 • Current tenure groups remain:
       – Tenure Group I (Career)
       – Tenure Group III (Terms)
       – Tenure Group 0 (Temporaries)

 Changed under NSPS:
•
       – Tenure Group II (Career Conditional) has been
         eliminated



                                                             
 18 Sep 2006 / 20 Jul 2006                                 Emp-56
                                                                 Relationship of
                                                     Comp Area to Comp Groups




                     NOTE: CA/CG determination made by management, not by HR
                                                                                 
18 Sep 2006 / 20 Jul 2006                                                      Emp-57
                                                Retention Factors

GS & Acq Demo Systems                      NSPS
Tenure                                     Tenure
Veterans’ Preference                       Veterans’ Preference
                                                                
Creditable Service                         Performance Credit
Performance Rating                         Creditable Service




                                                                  
 18 Sep 2006 / 20 Jul 2006   Cultural Change                    Emp-58
                                      Transfer of Function


 Transfer of Function definition change:
     • Work moved from one competitive area to another
       and same type of work may already exist in new
       area
     • Work must cease in losing competitive area
     • Losing competitive area determines number/ type of
       positions encompassing the transferring work (no
       longer needs to be grade-controlling)
     • Losing and gaining comp areas will jointly determine
       the number and type of positions needed in the new
       comp area                                            
 18 Sep 2006 / 20 Jul 2006                               Emp-59
                                                       Lesson 4 Review


               • Summary
                      – Changes in hiring and employment
                      – Promotion
                      – Probationary periods
                      – Tenure
                      – Workforce shaping

               • Questions?




18 Sep 2006 / 20 Jul 2006                                         Emp-60
    Lesson 5: Compensation under NSPS




                            Return to TOC

18 Sep 2006 / 20 Jul 2006                   Emp-61
                                                 Lesson 5 Objectives

After completion of this lesson, you will be able to:
• Explain the three types of pay equity and how NSPS addresses each
  part
      – Internal
      – External
      – Individual
• Define the terms
      – Base salary
      – Local market supplements
      – Market-sensitive pay & performance pay
• Explain adjustments in rate ranges and local market supplement
• Explain how pay is set
                                                                   
18 Sep 2006 / 20 Jul 2006                                      Emp-62
                                     Key Merit System Principle


   ―Equal pay should be provided for work of
          equal value, with appropriate
     consideration of both national and local
      rates paid by employers in the private
      sector, and appropriate incentives and
        recognition should be provided for
           excellence in performance.‖
                            5 USC 2301 (b) (3)


                                                            
18 Sep 2006 / 20 Jul 2006                                 Emp-63
                                              Compensation

NSPS compensation system is based on principles that:
• Provide for equal pay for work of equal value within each
  local pay area.
• Promote a high-performance culture within the
  Department.
• Link pay to employee performance that is measured by a
  fair, credible, and transparent performance appraisal
  system.
• Provide pay incentives for a flexible, agile workforce.



18 Sep 2006 / 20 Jul 2006                                   Emp-64
                            What Constitutes Adjusted Salary




   and
Acq Demo




18 Sep 2006 / 20 Jul 2006                             Emp-65
                                                                        Local Market
                                                                     Supplement Example
                            Engineering and Scientific Career Group Example

Worldwide Base Rate                +       Local Market              =             Total Pay
                                            Supplement


                                             Professional Engineer and Scientist
      S&E CG, Prof PS – YD
                                        San Francisco LMS Rate
          Pay Band 2                                                                $47,718-$106,972
                                        25%
        $38,175-$85,578
                                              Mechanical Engineer
                                        San Francisco LMS Rate                      $50,391-$112,963
                                        32%

                                              Electronic Engineer
                                        San Francisco LMS Rate                     $54,208-$121,520
                                        42%

                                             Engineer Technician
   S&E CG, Tech/Sup PS – YE             San Francisco LMS Rate
         Pay Band 4                                                                $76,542-$104,405
                                        22%
      $62,740 -$85,578)
                                                                                               
18 Sep 2006 / 20 Jul 2006                                                                  Emp-66
                                LMS Considered Basic Pay for:

Retirement deductions,              Recruitment, relocation, and
contributions, and benefits         retention incentives;
                                    supervisory differentials; and
Life insurance premiums and         extended assignment
benefits                            incentives
Premium pay                         Lump-sum payments for
Severance pay                       accumulated and accrued
                                    annual leave
Cost-of-living allowances and
post differentials                  Other payments and
                                    adjustments authorized by
Overseas allowances and             DoD
differentials


 18 Sep 2006 / 20 Jul 2006                                      Emp-67
                                   Eligibility for LMS Adjustment

 • Employees receive if -
       – Current rating of record above unsuccessful
       – No current rating of record
       – On pay retention with a current rating of record above
         unsuccessful

 Employees do not receive if current rating of record is
 •
   unsuccessful
 • If LMS decreases, it decreases for everyone regardless
   of rating of record
 • LMS is not portable


 18 Sep 2006 / 20 Jul 2006                                        Emp-68
                             Rate Range and LMS Adjustments

 DoD reviews rate ranges and LMS annually
 •

 Different pay schedules may be adjusted by different
 •
   percentages

 Performance impacts eligibility
 •

 LMS amount influenced by individual changes in base
 •
   salary




                                                           
 18 Sep 2006 / 20 Jul 2006                               Emp-69
                                                                 Pay Setting

• Army will delegate pay setting approval authority to Commands /
  DRUs with supplemental guidance
• Pay setting determinations based on such factor as:
      – Level of work of the position
      – Labor market considerations (value and location of the job in the
        market)
      – Special requirements of a particular position
      – Level and relevancy of candidate’s education and experience
      – Scarcity of qualified applicants
      – Program needs
      – Current salary of the candidate
      – Pay equity considerations




18 Sep 2006 / 20 Jul 2006                                                   Emp-70
                                               Three Types of Pay Equity

• Internal equity
      – Pay rates for employees doing equivalent work within the organization
      – This does NOT mean everyone gets exactly the same pay for the same job!

• External equity
      – Market pay (Federal or private sector) for similar positions

• Individual equity
      – Pay-for-performance links employee effort to achievement of mission goals

Results:
•   Promote a high-performance culture within the Department
•   Link pay to employee performance that is measured by a fair, credible, and
    open performance appraisal system
•   Provide pay incentives for a flexible, agile workforce

                                                                                      
18 Sep 2006 / 20 Jul 2006                                                           Emp-71
                                                      Pay Setting:
                                 New Appointment / Reappointment

Example: Standard Career Group (Professional/Analytical Pay Schedule)



                   1                         2                        3
     Entry Level/Developmental     Full Performance Level   Program Manager/Expert

       $25,195 - $60,049          $38,175 - $85,578         $74,608 - $124,904




              Interim Pay
                Setting
               Guidance                  Example – Next Slide
            Provided by DoD



                                                                                     
 18 Sep 2006 / 20 Jul 2006                                                       Emp-72
                                                       Pay Setting
                                  New Appointment / Reappointment
  Pay-Setting Guidance for New-Hires
  •     Minimum Rate of Pay / Salary Offer – the
        minimum rate of the appropriate pay band

 Maximum 1 of the Pay / Salary Offerequivalent
 •
   than Step
             Rate of
                     former GS-grade
                                      – no higher

        position plus an additional 30.0% (not to exceed
        the maximum rate of the pay band)
  Example:
   YA-2 Position
   Minimum YA-2 $38,175
   Maximum YA-2 $85,578
   Former GS-12 Position

   30% of GS-12 Step 1
   Maximum Salary Offer $71,968



      18 Sep 2006 / 20 Jul 2006                               Emp-73
                                                       Reassignment

 Voluntary reassignment – Employees are eligible for a
 •
   discretionary increase
       – Employee-initiated – May receive up to a 5% increase in a 12-
         month period
       – Management-directed – May receive up to a 5% increase with
         each reassignment

 Involuntary reassignment – Employees may receive a
 •
   reduction in pay
       – Result of poor performance or misconduct – May receive up to a
         10% reduction in pay in a 12-month period



                                                                         
 18 Sep 2006 / 20 Jul 2006                                          Emp-74
                                                            Promotion

 • Entitled to a minimum 6% increase
 • May receive up to a 20% increase subject to authorized
   management approval
 • May receive greater than a 20% increase if:
        • Approved by higher-level management official (as defined by
          the Component) OR
        • Needed to reach minimum rate of new pay band (higher-level
          approval not required)

 • Pay cannot be lower than the minimum or higher than
   the maximum of the new rate range


18 Sep 2006 / 20 Jul 2006                                           Emp-75
                                                Reduction in Band

 Voluntary reduction in band - Employees are eligible for
 •
   a discretionary increase
       – May receive up to a 5% increase in a 12-month period



 Involuntary in pay in band – Employees may receive
 •
   a reduction
               reduction

       – Result of poor performance or misconduct – May receive up to a
         10% reduction in pay in a 12-month period
       – Pay cannot be lower than the minimum or higher than the
         maximum of the new rate range


                                                                     
 18 Sep 2006 / 20 Jul 2006                                         Emp-76
                                              Pay Retention

  • Grade retention no longer exists
  • Upon conversion to NSPS, pay retention will be applied if
    the salary does not fit in the band

 Pay retention applies for appropriate period after RIF,
 •
   reclassification, or other
                              a two-year
                                         circumstance
  • May receive performance bonus
  • Will receive local market supplement (LMS) increases




  18 Sep 2006 / 20 Jul 2006                                 Emp-77
                                       Pay Retention, continued

• Applies for two years from the effective date of the action
  generating retained pay
      – Until the rate range of the new position encompasses the
        employee’s retained rate
      – Until the employee is assigned to a band where pay can be set,
        whichever occurs first
• Eligible for:
      – performance payout in the form of a bonus
      – lump-sum bonus awards and LMS adjustments
      – pay increase upon promotion
• Not eligible for increases to base salary as a result of performance
  payout or rate range adjustments


18 Sep 2006 / 20 Jul 2006                                          Emp-78
                                   Overtime Pay Changes

 OT hourly ratepay for the majority of employees X
 •
   hourly rate of
                  changed from straight time to 1.5

     regardless of FLSA status
 • OT hourly rate same as straight time rate for all
   Supervisory PB2 & PB3 positions as well as all PB3 non-
   supervisory professional / analytical / medical /
   investigative positions & PB4 firefighter positions
 • No change in Night / Holiday / Sunday pay
 • Compensatory time / Travel Compensatory time
   continues


 18 Sep 2006 / 20 Jul 2006                             Emp-79
                                          New Compensation Role

• Pay bands offer significant flexibility in setting and
  adjusting pay
• Optimum use of flexibility requires consideration of
  external pay alignment as well as internal
      – Major shift from past experience, which focused on internal
        grade alignment
      – Requires application of classification concepts and skills in
        different manner




                               Cultural Change
18 Sep 2006 / 20 Jul 2006                                               Emp-80
                                                       Lesson 5 Review

• Summary
      – Worldwide Base Rate vs. LMS
      – Pay setting and Pay Equity
            * New Hires                   * Reassignments
            * Promotions                 * Reduction in Band
            * Pay Retention              * Overtime Rate
      – Terms:
            * Base salary                 * Local market supplements
            * Market-sensitive pay & performance pay
      – Adjustments in rate ranges and local market supplement
      – How pay is set
• Questions?
18 Sep 2006 / 20 Jul 2006                                              Emp-81
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18 Sep 2006 / 20 Jul 2006                                        Emp-82
                       Lesson 6: Performance
                            Management Basics




                                         Return to TOC

18 Sep 2006 / 20 Jul 2006                                Emp-83
                                              Lesson 6 Objectives

After completion of this lesson, you will be able to explain
the basic elements of the NSPS performance management
system:
     – Differences between the current system and NSPS
     – Performance expectations and job objectives
     – Self assessments and accomplishments
     – Performance indicators and contributing factors
     – Weighting
     – Objective ratings, adjusted ratings, and recommended ratings
     – Rating levels, share assignments, and performance payout


18 Sep 2006 / 20 Jul 2006                                         Emp-84
                                     Performance Management:
                                               TAPES vs. NSPS

Old (TAPES)                       New (NSPS)
• Ratings based on performance    • Ratings based on job
  objectives                        objectives
• Many performance cycles         • One cycle (1 Oct – 30 Sep)
• Rating scale 1 (top) to 5       • Rating scale 5 (top) to 1
  (bottom)                          (bottom)
• Most employee ratings are       • Most employee ratings are
  level 1 (Army: 81% were level     anticipated to be level 3
  1 in FY05)                        (valued performer)
• 120 day minimum rating          • 90 day minimum rating
  period                            period
• Senior rater approves ratings   • Pay Pool Manager approves
                                    ratings


18 Sep 2006 / 20 Jul 2006                                       Emp-85
                                        Performance Management
                                               AcqDemo vs. NSPS
AcqDemo                               NSPS
• Ratings based on contribution       • Ratings based on job objectives
  objectives                          • One cycle (1 Oct – 30 Sep)
• One cycle (1 Oct – 30 Sep)          • Rating scale 5 (top) to 1
                                        (bottom)
• Rating scale 100 (top) to 1
  (bottom) (Very High 115, 95, 70)    • Most employee ratings are
                                        anticipated to be level 3 (valued
• Most employee ratings are             performer)
  anticipated to be Between the
  Rails                               • 90 day minimum rating period
                                      • Pay Pool Manager approves
                                        ratings
• 90 day minimum rating period
• Pay Pool Manager approves ratings

                                                                      
18 Sep 2006 / 20 Jul 2006                                           Emp-86
                                                        NSPS Performance
                                                        Management Goals

• Results-oriented, mission-focused
• Establish accountability for and improve individual and
  organizational performance
      – Improve performance by defining the mission, goals, and management
        processes of an organization and work unit and by defining and linking
        individual goals and objectives that support the work unit and
        organizational goals
• Clear and understandable (fair, credible, and transparent)
• Provide a direct link between pay, performance, and mission
  accomplishment
      – Reflect meaningful distinctions in employee performance
      – Robust (capable of supporting pay decisions)



18 Sep 2006 / 20 Jul 2006                                                 Emp-87
                                    Performance Management
                                                Terminology


  • Performance Expectations    Objective Rating
                                •
  • Job Objectives              Weighting
                                •

 Performance Indicators
 •                              Adjusted Rating
                                •

 Contributing Factors
 •                              Recommended Rating
                                •

 Work Behaviors
 •                              Rating of Record
                                •

 Benchmark Descriptors
 •                              Shares
                                •
  • Self Assessment             • Pay Pool



                                                        
  18 Sep 2006 / 20 Jul 2006                           Emp-88
                               Performance Expectations

 Performance Expectations are the duties,
 responsibilities, and competencies required by, or
 objectives associated with, an employee’s position and
 the contributions and demonstrated competencies
 management expects of an employee

• Performance expectations will be communicated to the
  employee prior to holding the employee accountable
  and will be promptly adjusted as changes occur




18 Sep 2006 / 20 Jul 2006                                 Emp-89
                             Performance Expectations, con’t

 Performance expectations must align with and support the
   DoD mission and goals and may include:
 • Goals or objectives that set performance targets at the
   individual, team, and/or organizational level
 • Standard operating procedures, manuals, internal rules
   and directives, etc.
 • Competencies an employee is expected to demonstrate,
   or the contributions an employee is expected to make
 • Work assignments can be used to amplify performance
   expectations and may specify quality, quantity, accuracy,
   and/or timeliness
 Conduct and/or behavior
 •
                                                             
 18 Sep 2006 / 20 Jul 2006                              Emp-90
                                                    The Rating Process
                    Objective     Adjustment       Adjusted      Weighting
                   Rating (1-5)    (+1, 0, -1)    Rating (1-5)    Applied

 Job Obj #A
 Contr Fact
                                                                  3 X .40
    1,3,4
  Weight:
    40%
                        3             0               3             1.2


 Job Obj #B
 Contr Fact                                                       5 X .35      Total:
   3, 5, 6
  Weight:               4             +1              5            1.75        3.45
    35%




 Job Obj #C                                                                     Apply
 Contr Fact                                                       2 X .25
   2, 3, 4
  Weight:               2              -1             2             .5
                                                                              rounding
    25%




                       Use            Use                                    Recommended
                   Performance     Contributing                                Rating: 3
                    Indicators      Factors
18 Sep 2006 / 20 Jul 2006                                                       Emp-91
                                     A Performance Management
                                  System based on Job Objectives

Job objectives are:
• A way to capture performance expectations
• The platform by which employees are rated
• A way for managers and supervisors to communicate the
  major work that needs to be accomplished
• Required to be aligned with (clearly tied to)
  organizational goals and the DoD mission
      – When communicating job objectives to employees, supervisors
        need to fully explain the relationship between an employee’s
        accomplishments and achieving organizational goals

                                                                       
                             Cultural Change
18 Sep 2006 / 20 Jul 2006                                        Emp-92
                                 Job Objectives = ―What‖

 • Communicate specific individual, team, or organizational
   responsibilities and expected contributions with related
   outcomes and accomplishments
 • Draw a line of sight between the employee’s work, the
   work unit’s goals, and the organization’s success
 • Results-oriented and mission-focused
 • Appropriate for current salary and pay band

 Must be weighted
 •

 Written in the ―SMART‖ framework
 •

                                                           
 18 Sep 2006 / 20 Jul 2006                              Emp-93
                             Requirements for Job Objectives

 For managers                     For employees

 • At least 1                     • At least 1
 • Usually 3 to 5                 • Usually 3 to 5
 • Must be weighted               • Must be weighted
 • Linked to mission              • Linked to mission

At least one supervisory
•
  objective



                                                          
 18 Sep 2006 / 20 Jul 2006                              Emp-94
                                   Supervisory Job Objective

The mandatory supervisory job objective must cover these criteria:
• Communicating performance expectations and holding employees
  responsible for accomplishing them
• Making meaningful distinctions among employees based on
  performance and contribution
• Fostering and rewarding excellent performance
• Addressing poor performance
• Ensuring that employees are assigned a rating of record when
  implementing issuances require
• Adhering to laws and regulations governing merit-systems
  principles, prohibited personnel practices, and equal employment
  opportunity
                                                                       
18 Sep 2006 / 20 Jul 2006                                            Emp-95
                                           Mandatory Army
                                        Supervisory Objective

  Execute the full range of human resources (including
  performance management as outlined in DoD 1400.25-
  M, SC1940.5.7.4.) and fiscal responsibilities within
  established timelines and in accordance with applicable
  regulations. Adhere to merit principles. Develop a
  vision for the work unit; align performance expectations
  with organizational goals. Maintain a safe work
  environment and promptly address allegations of
  noncompliance. Ensure EEO/EO principles are adhered
  to throughout the organization. Ensure continuing
  application of, and compliance with, applicable laws,
  regulations and policies governing prohibited personnel
  practices; promptly address allegations of prohibited
  discrimination, harassment, and retaliation.
                                                             
18 Sep 2006 / 20 Jul 2006                               Emp-96
                                              Effective Job Objectives

• Performance focus
      – Objectives should be crafted to bring out the best in individual and
        team performance
      – They can help keep the focus on the important tasks, not on many
        needless activities
• Alignment with the organization
      – Objectives must make sense in the context of the organization
      – Individual objectives must align with the organization’s goals and/or
        mission
• Appraisal/management tool
      – Objectives should not only drive the work, they also serve as a method
        to assess accomplishments
      – They are used as an appraisal tool at the end of the performance
        management cycle


                                                                                 
18 Sep 2006 / 20 Jul 2006                                                      Emp-97
                                Objectives vs. Task Descriptions

         Task description              Objective
         • Focus on activity           • Focus on result
         • ―How‖                       • ―What‖
         • Manager ultimately          • Employee responsible
           responsible for outcome       for outcome




      An objective is a description of a future situation
                                                                  
18 Sep 2006 / 20 Jul 2006                                       Emp-98
                             Developing SMART Objectives
SMART is a framework for developing (and evaluating) job
  objectives:

             Specific
             Measurable
             Aligned
             Realistic/Relevant
             Timed


                                                       
18 Sep 2006 / 20 Jul 2006                            Emp-99
                                    SMART Objectives: Specific


S          • An observable action,
             behavior, or achievement
M
           • Links to a level of
             performance, frequency,
A
             percentage, or other number
R          • Specific regarding the
             description of the result (not
T
             the activities to achieve that
             result)




                                                            
18 Sep 2006 / 20 Jul 2006                                Emp-100
                              SMART Objectives: Measurable


S      • A method or procedure must be in place that allows
         tracking, recording, and validation of quality of a
M        specific behavior, action, or outcome
       • Quantity (how many)
A
       • Time (how long)
                                        Resources
R      • Quality (how good)                           Quantity
T      • Resources (how much)

                                      Quality
                                                    Time

                                                                  
18 Sep 2006 / 20 Jul 2006                                      Emp-101
                                    SMART Objectives: Aligned

S         • Aligned objectives draw a line of sight between the
            employee’s work, the work unit’s goal, and the
M           organization’s mission
          • All objectives in the organization pull in the same
A           direction
R         • Managers/supervisors must have a clear understanding
            of their own job objectives before they can work with
T           their employees to establish theirs




                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-102
                                    SMART Objectives:
                                     Realistic/Relevant

S     • Realistic: Objectives
        can be accomplished
M       with the resources and
        personnel available, and
A       within the available time
      • Relevant: Objectives
R       should be important to
        the employee and to
T       the organization
      • The level of
        responsibility expressed
        in the objective needs
        to be appropriate to the
        employee’s salary
                                                     
18 Sep 2006 / 20 Jul 2006                         Emp-103
                                      SMART Objectives: Timed


S        • Timed means there is a
           point in time when the
M          objective will start, or when
           it will be completed
A
         • Best to use specific dates
R
           (March 15th) instead of
           relative descriptions of time
           (six months)
T        • Milestones can be included
           (they can provide an
           indication of
           accomplishments during
           the rating period)
                                                           
18 Sep 2006 / 20 Jul 2006                               Emp-104
                                  Sample Job Objectives

• Install 150 new computers in the DA Field Office in
  Arlington, VA by the end of the 4th quarter. Ensure that
  the DA Form 3161 issuing the new computer to the PC
  user is signed by the user and forwarded to the Property
  Book Officer within two working days of signature.
• Serve as timekeeper for designated senior management
  officials. Prepare accurate time and attendance records
  for assigned Directorate staff for each bi-weekly pay
  period in accordance with regulatory and Directorate
  requirements. Acquire authorizing signature and submit
  the input the first working day following completion of
  the pay period IAW established timelines.
                                                          
18 Sep 2006 / 20 Jul 2006                             Emp-105
                            Exercise: Writing Job Objectives

Writing (or modifying) objectives:
 • Modify one of the performance objectives (that you brought with
   you), or create it from scratch
 • Be sure to indicate which of the Contributing Factors are applicable
   to the objective
 • When you’re done, share your objectives within your group and
   provide feedback using the SMART criteria


 Repeat this exercise with another objective



                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-106
                                            Evaluating Job Objectives

• Is the objective challenging to the employee? (Does it require the
  employee to move beyond their current level of performance to
  achieve the objective?)
• Does achieving the objective lead to improvement of the individual’s
  performance?
• Does achieving the objective lead to improved work unit
  performance?
• Common errors:
      – The objective is vague
      – The objective is not measurable or verifiable
      – The objective is too complex or lengthy
      – The objective is not tied to a timeline
      – The objective places emphasis on inappropriate aspects of the work
      – The employee has too many objectives
                                                                             
18 Sep 2006 / 20 Jul 2006                                               Emp-107
                                           Aligning Work to Mission

          Component         • Objectives draw a line of sight between
         Strategic Plan       the employee’s work, the work unit’s
                              goals, and the organization’s success
                            • When work is aligned to the mission,
         Component            from any perspective you choose,
       Vision, Mission,       everyone is working together towards
          and Goals
                              shared goals
                            • Look to:
        Organization
                               – Your organization’s mission
       Vision, Mission,
          and Goals            – Your organization’s strategic goals
                               – Your work unit’s objectives
         Team and
         Individual
        Performance
                                                                           
18 Sep 2006 / 20 Jul 2006                                               Emp-108
                                      Employee Self-Assessment

• Provides an opportunity for the employee to describe their
  accomplishments relative to performance expectations, including job
  objectives and associated contributing factors, organizational
  mission and goals, team goals, etc.
• Input will assist the rating official in evaluating more fully the
  employee’s performance and results of that performance
• To facilitate completing the self-assessment, employees are
  encouraged to maintain a record of their performance throughout
  the appraisal period
• Examples:
      – Weekly Status Report
      – Outlook’s Task List
      – Notebook



18 Sep 2006 / 20 Jul 2006                                              Emp-109
                                 Supervisory Assessment

• The rating official must prepare a narrative assessment
  describing the employee's accomplishments and
  contributions to the organization relative to his or her
  performance expectations, including an assessment of
  job objectives and associated contributing factors
• The employee’s self-assessment and other input will
  assist the rating official in evaluating more fully the
  employee’s performance and results of that performance




18 Sep 2006 / 20 Jul 2006                              Emp-110
                                Using Performance Indicators
                                     to Assess Performance

What are Performance Indicators?
• Descriptions of levels or thresholds of employee
  performance.
• Applied in the rating of job objectives
• Standardized across the DoD
• Arranged by Pay Schedule (Professional / Analytical,
  Technician / Support, Supervisory) and Pay Band
• Benchmarks defined at Level 3 and Level 5 performance


                                                            
18 Sep 2006 / 20 Jul 2006                                Emp-111
                                       Performance Indicator Example
                               Performance Indicators
       Professional / Analytical Pay Schedule (non-supervisory) - Pay Band 2
                            Level 3                     Level 5 (Additions at this level)
• Effectively achieved the stated objective,        • Contributed results beyond what
  anticipating and overcoming significant             was expected; results were far
  obstacles. Adapts established methods and           superior in quality, quantity, and/or
  procedures when needed.                             impact to the stated objective to
• Results were technically sound, accurate,           what would be expected at this
  thorough, documented, and met applicable            level.
  authorities, standards, policies, procedures
                                                    • Exhibited the highest standards of
  and guidelines.
                                                      professionalism.
• Planned, organized prioritized, and scheduled
  own work activities to deliver the objective in
  a timely and effective manner, making
  adjustments to respond to changing situations
  and anticipating and overcoming difficult
  obstacles as necessary.
• Demonstrated high standards of personal and
  professional conduct and represented the
  organization or work unit effectively.                                                    
18 Sep 2006 / 20 Jul 2006                                                            Emp-112
                                    Rating Levels for Job Objectives
             Employee exceeded the assigned job objective at a level of performance equal to, or
    5        above, the Level 5 performance indicator.

             Employee exceeded the assigned job objective at a level of performance above the Level 3
    4        indicator, but below the Level 5 performance indicator.

             Employee met the assigned job objective at a level of performance equal to the Level 3
    3        indicator.
             Employee met the assigned job objective at a level of performance below the Level 3
    2        Performance indicator or needed guidance and assistance beyond that described in the
             Level 3 indicator.
             Employee failed to achieve the assigned job objective or failed in the performance of a
             single assignment where such failure had a significant negative impact on accomplishment
    1        of the mission or where a single failure resulted in or could result in death, injury, breach
             of security, or great monetary loss.
             Employee did not have an opportunity to perform the job objective because it became
  NR         obsolete or could not be accomplished due to extenuating circumstances. Weight of non-
             rated objective is re-distributed among the other objectives.


                                                                                                      
18 Sep 2006 / 20 Jul 2006                                                                        Emp-113
                             Contributing Factors = ―How‖
• Select up to 3 for each job objective
• Attributes of job performance that
  are significant to the accomplishment
  of individual job objectives
• Further defined by ―work behaviors‖
  and ―benchmark descriptors‖
• Standard across DoD
• Described at the ―expected‖ and
  ―enhanced‖ level


                                                        
18 Sep 2006 / 20 Jul 2006                            Emp-114
                                                                      Contributing Factors
                                                                     Benchmark Example
                             Technical Proficiency Contributing Factor
                      Professional and Analytical Pay Schedule - Pay Band 2
                      Expected                                Enhanced (Additions at this level)
• Applies substantive knowledge and skills            • Applies depth and breadth of knowledge to
  (including use of appropriate technology or           independently perform well on the most
  tools) to independently perform a full range of       complex or varied assignments at this level.
  assignments, including moderately complex
                                                      • Takes initiative to improve technical
  work activities; seeks occasional guidance as
                                                        knowledge and skills through a variety of self-
  appropriate.
                                                        directed development activities, resulting in
• Acquires, develops, and maintains relevant job        an increased ability to contribute to the
  skills through a variety of methods.                  mission.
• Stays up-to-date in professional/technical          • Is frequently consulted by others because of
  specialties and applies this knowledge to             depth and/or breadth of understanding of the
  improve own performance and contribute to             organization and the internal and external
  work unit performance.                                factors that affect it; seeks out and capitalizes
                                                        on opportunities to use this knowledge to
• Demonstrates a thorough understanding of the
                                                        contribute to organizational goals and
  organization’s mission, functions, values,
                                                        outcomes.
  applicable policies and procedures, and internal
  and external factors that affect the
  organization; seeks out opportunities to use this
  knowledge constructively to contribute to                                                           
  organizational objectives and priorities.
18 Sep 2006 / 20 Jul 2006                                                                          Emp-115
                                       Requirements for Selecting
                                             Contributing Factors

  For manager                       For employee
  • At least one, usually no more   • At least one, usually no more
    than three for each objective     than three for each objective
  • Intentional choice              • Intentional choice
  • Tied to objective rather than   • Tied to objective rather than
    employee                          employee

 ―Leadership‖the supervisory job
 •
   selected for
                must be

     objective




                                                                      
  18 Sep 2006 / 20 Jul 2006                                      Emp-116
                                                   Contributing Factors’
                                                      Effect on Rating

                            … matching or exceeding the
                            description provided in the
                            Enhanced benchmark                    +1
                            descriptor(s).
      In the execution or
      accomplishment of     … matching or exceeding the
      the assigned job      description provided in the
      objective the         Expected benchmark
      employee              descriptor(s), but below that           0
      demonstrated a        described by the Enhanced
      manner of             benchmark descriptor(s).
      performance…
                            … below the description
                            provided in the Expected
                            benchmark descriptor(s).               -1

                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-117
                                                 Contributing Factors:
                                                   Special Situations

• A job objective rating of 1 cannot be adjusted

                            1   +   -1   =   1

• A job objective rating of 2 cannot be adjusted down

                            2   +   -1   =   2

• A job objective rating of 5 cannot be adjusted up

                            5   +   +1   =   5

                                                                   
18 Sep 2006 / 20 Jul 2006                                       Emp-118
                                                   Weighting Objectives

 • Weighting is a way of giving more emphasis to one objective over
   another
 • Army requires that job objectives be weighted
 • Weight is established at the start of the performance cycle – when
   the objectives are established and contributing factors identified

 Rules
 •
       – No objective can be weighted less than 10 percent
       – Total weight must equal 100 percent
       – Weights must be in 5-percent intervals
       – If an objective is not rated (NR), the weight of that objective must be
         re-distributed among the other objectives


                                                                                   
 18 Sep 2006 / 20 Jul 2006                                                   Emp-119
                                                                              Rating Levels

                            Standard rating levels used in DoD
Rating Level     Level of Performance    Performance Description
                                         Almost always meets the standards described by the Role Model
Level 5          Role Model
                                         benchmarks
                                         Almost always meets the standards described by the Valued
                                         Performance benchmarks and, typically, but less than almost
Level 4          Exceeds Expectations
                                         always meets the standards described by the Role Model
                                         benchmarks

                                         Almost always meets the standards described by the Valued
Level 3          Valued Performance
                                         Performance benchmarks

                                         Almost always meets the Valued Performance benchmarks, but
Level 2          Fair                    only as a result of guidance and assistance considerably above
                                         that expected at the Valued Performance level

                                         Performs below Level 2, or fails a Standard Performance Factor in
                                         the performance of a single assignment where such failure has a
Level 1          Unsuccessful            significant negative impact on accomplishment of the mission or
                                         where a single failure to perform could result in death, injury,
                                         breach of security, or great monetary loss


                                                                                                     
                                        Cultural Change
18 Sep 2006 / 20 Jul 2006                                                                      Emp-120
                                                         On the Form

 • The Performance Appraisal form uses many of the terms we’ve been
   discussing (the automated version is similar)
 • The objective itself, the contributing factors, and the weight are all
   established ahead of time, usually at the start of the cycle
 • The objective rating, contributing factor adjustment, and adjusted
   rating are done after the rating cycle is completed






                                                                       
18 Sep 2006 / 20 Jul 2006                                           Emp-121
                                                    The Rating Process
                    Objective     Adjustment       Adjusted      Weighting
                   Rating (1-5)    (+1, 0, -1)    Rating (1-5)    Applied

 Job Obj #A
 Contr Fact
                                                                  3 X .40
    1,3,4
  Weight:
    40%
                        3             0               3             1.2


 Job Obj #B
 Contr Fact                                                       5 X .35      Total:
   3, 5, 6
  Weight:               4             +1              5            1.75        3.45
    35%




 Job Obj #C                                                                     Apply
 Contr Fact                                                       2 X .25
   2, 3, 4
  Weight:               2              -1             2             .5
                                                                              rounding
    25%




                       Use            Use                                    Recommended
                   Performance     Contributing                                Rating: 3
                    Indicators      Factors
18 Sep 2006 / 20 Jul 2006                                                     Emp-122
                                                                                             Rate
                                                                             Employee Performance
                                                                 Job Objectives and Contributing Factors

           Objective                                    Objective                                    Objective

“What”           #A              40%            “What”        #B              35%           “What”         #C              25%
x           x x                                          x            x x                       x x x
         Identify “How”                               Identify “How”                               Identify “How”

Contributing Factors                            Contributing Factors                         Contributing Factors
x       Technical Proficiency                        Technical Proficiency                        Technical Proficiency

          Critical Thinking                            Critical Thinking                    x       Critical Thinking

x     Cooperation and Teamwork                 x   Cooperation and Teamwork                 x   Cooperation and Teamwork

x          Communication                                Communication                       x        Communication

          Customer Focus                       x       Customer Focus                               Customer Focus

       Resource Management                     x     Resource Management                         Resource Management

            Leadership                                   Leadership                                   Leadership


                             • Performance expectations in the form of job objectives and contribution factors are
                             described in the performance plan [SC1940.5.7.]
                             • At least one and generally three to five job objectives [SC1940.5.7.1.]
                             • Generally no more than 3 contributing factors for each job objective [SC1940.5.7.5.2.]
                             • Mandatory job objective for supervisor must include the “leadership” contributing factor
                             [SC1940.5.7.5.2.1.]
                             • “Leadership” contributing factor may be assigned to any employee who is responsible       New
                             for directing work and developing other employees [SC1940.5.7.5.2.2.]
    18 Sep 2006 / 20 Jul 2006• Job objectives may be added and/or modified [SC1940.5.7.2.]                         Emp-123
                                                                       Rate
                                                       Employee Performance
               Objective              Rate                        Rating
                                     “What”
                                                  #A
    “What”            #A       40%   Consider x                     3
                                                       x x
    x           x x                   “How”
             Identify “How”


x     Technical Proficiency

x   Cooperation and Teamwork

x        Communication




                                                                    5
                                                         3    4
                                              2
                                          1

                                                                                     New


       18 Sep 2006 / 20 Jul 2006                                           Emp-124
                                                      Rate
                                      Employee Performance
                                                   Rating
                             Rate
            Objective
                            “What”
                                     #B              4
    “What”      #B




                                                                   New


18 Sep 2006 / 20 Jul 2006                                Emp-125
                                                           Rate
                                           Employee Performance
                                                    Rating
                              Rate
       Objective
                             “What”
                                      #C              2
“What”     #C




                                                                       New


 18 Sep 2006 / 20 Jul 2006                                   Emp-126
                                                                             Rate
                                                             Employee Performance
                                                                      Rating
                                          Rate
                   Objective
                                         “What”
                                                  #A                    3
       “What”        #A
                                         Consider x    x x
       x           x x                    “How”
                Identify “How”


x        Technical Proficiency

x     Cooperation and Teamwork
                                                                               Adjusted
x          Communication
                                                                                Rating
    When assessing the
    contributing f actors,
                                  Rate
    supervisors should           “How”
    consider the
    selected f actors as a        +1
    whole, or in the
    aggregate, as they             0                                    +1
    apply to the job
    objective.                    -1
                                                               0
                                             -1
                                                                                          New


         18 Sep 2006 / 20 Jul 2006                                              Emp-127
                                                                             Rate
                                                             Employee Performance
                                                                      Rating
                                          Rate
                   Objective
                                         “What”
                                                  #A                    3
       “What”        #A
                                         Consider x    x x              0
       x           x x                    “How”
                Identify “How”


x        Technical Proficiency                                                     3
x     Cooperation and Teamwork
                                                                               Adjusted
x          Communication
                                                                                Rating
    When assessing the
    contributing f actors,
                                  Rate
    supervisors should           “How”
    consider the
    selected f actors as a        +1
    whole, or in the
    aggregate, as they             0
    apply to the job
    objective.                    -1




                                                                                          New


         18 Sep 2006 / 20 Jul 2006                                              Emp-128
                                                                       Rate
                                                       Employee Performance
                                                                Rating
                                    Rate
              Objective
                                   “What”
                                              #B                  4
   “What”           #B
                                   Consider        x   x x       +1
              x          x x        “How”
            Identify “How”


  x     Cooperation and Teamwork
                                                                             5
  x          Customer Focus
                                                                         Adjusted
  x       Resource Management
                                                                          Rating
When assessing the
contributing f actors,
                          Rate
supervisors should       “How”
consider the
selected f actors as a        +1
whole, or in the
aggregate, as they            0
apply to the job
objective.                    -1




                                                                                    New


      18 Sep 2006 / 20 Jul 2006                                           Emp-129
                                                                          Rate
                                                          Employee Performance
                                                                   Rating
                                       Rate
              Objective
                                      “What”
                                                 #C                  2
                    #C
                                      Consider    x x x              -1
        x x x                          “How”
            Identify “How”

                                                                                2
  x          Critical Thinking

  x     Cooperation and Teamwork
                                                                            Adjusted
  x          Communication
                                                                             Rating
When assessing the
contributing f actors,
                           Rate
supervisors should        “How”
consider the
selected f actors as a           +1
whole, or in the
aggregate, as they               0
apply to the job
objective.                       -1




                                                                                       New


      18 Sep 2006 / 20 Jul 2006                                              Emp-130
                                                                        Rate
                                                        Employee Performance
                                 Rate        Consider         Rate Adjusted
        Objective
                                “What”        “How”          “How” Rating

“What”    #A                      3      x    x x              0        3
x       x x
      Identify “How”                                                    +
                                  4            x     x x      +1        5
          #B
        x   x x                                                         +
                                  2          x x x             -1       2
        #C
    x x x
                                                                     10      :      3
                                                                                 Objectives


                                                              Overall
                                                            Average =       3.33
                                                               Score                     New


    18 Sep 2006 / 20 Jul 2006                                                      Emp-131
                                                                               Rate
                                                               Employee Performance
                                                                       with Job Objectives Weighted
                                 Rate           Consider                      Rate Adjusted           Weighted
        Objective
                                “What”           “How”                       “How” Rating              Score
                 Weight
                                  3        x        x x                         0          3       40%   = 1.20
“What”
x
          #A
        x x
                       40%
                                                                                               *
                                                                                                            +
      Identify “How”
                                  4                 x        x x               +1          5       35%   = 1.75
          #B    35%                                                                            *
                                                                                                               +
        x   x x
                                                                                                         = 0.50
        #C             25%
                                  2             x x x                           -1         2
                                                                                               * 25%
                                 If objectives are weighted, weights will total 100%.
    x x x                         No job objectives may be weighted less than 10%

              Total 100%                                                                   Overall
                                                                                        Average =        3.45
                                                                                            Score

                                                                                                           New


    18 Sep 2006 / 20 Jul 2006                                                                        Emp-132
                                                          The Rating Process

                    Objective     Adjustment      Adjusted      Weighting
                   Rating (1-5)    (+1, 0, -1)   Rating (1-5)    Applied

 Job Obj #1
 Contr Fact
                                                                 3 X .40
   1, 3, 4
  Weight:
    40%
                        3             0              3             1.2


 Job Obj #2
 Contr Fact                                                      5 X .35      Total:
   3, 5, 6
  Weight:               4             +1             5            1.75        3.45
    35%




 Job Obj #3                                                                    Apply
 Contr Fact                                                      2 X .25
   2, 3, 4
  Weight:               2              -1            2             .5
                                                                             rounding
    25%




                      Use            Use                                    Recommended
                  Performance     Contributing                                Rating: 3
                   Indicators       Factors
18 Sep 2006 / 20 Jul 2006                                                    Emp-133
                                                   Rounding to Determining the
                                                         Recommended Rating

• Weight the adjusted ratings and total them
• Round the result as shown below:

                       Average Rating      Rating of     Rating of Record
                           Range            Record          Descriptor
                            4.51 to 5.00      5            Role Model

                           3.51 to 4.50
                            2.51 to 3.50
                                              4
                                              3
                                                       Exceeds Expectations
                                                        Valued Performer
                            2.00 to 2.50      2                Fair
                     1 on any objective       1           Unacceptable

• Result is the recommended rating

                                                                                 
18 Sep 2006 / 20 Jul 2006                                                     Emp-134
                                                         Share Ranges

• Shares in the pay pool are awarded as shown in the table:

                            Rating Level   Share Range
                                 5            5 or 6

                                4
                                 3
                                              3 or 4
                                              1 or 2
                                 2              0
                                 1              0


• Share ranges allow further distinction between levels of contribution
• The estimated value of a share reflects a percentage of salary (the
  actual share value will not be known until the Pay Pool Panel
  completes its work)
                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-135
                                              Performance Payout

 Performance payout may be paid as a:
 •
       – Base salary increase
       – Bonus
       – Combination of the two

 Considerations in deciding the distribution:
 •
       – Position in pay band
       – Motivational effect
       – Salary and work in comparison with colleagues
       – Competitive market comparisons


                                                              
 18 Sep 2006 / 20 Jul 2006                                 Emp-136
                            Rewarding Employee Performance


         Performance
                               Employees are eligible to receive:
            Rating
                   5        • Performance based pay
                   4        • Rate range adjustments

                   3        • Local market supplement increases
                            • Rate range adjustments
                  2
                            • Local marked supplement increases

                  1        • No increases



                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-137
                                                   Lesson 6 Review

• Summary
      – Differences between the current system and NSPS
      – Performance expectations and job objectives
      – Self assessments and accomplishments
      – Performance indicators and contributing factors
      – Weighting
      – Objective ratings, adjusted ratings, and recommended ratings
      – Rating levels, share assignments, and performance payout

• Questions?



18 Sep 2006 / 20 Jul 2006                                          Emp-138
                               Lesson 7:
                            NSPS Performance
                            Management Cycle




                                         Return to TOC

18 Sep 2006 / 20 Jul 2006                                Emp-139
                                            Lesson 7 Objectives

After completion of this lesson, you will be able to:

• List the five phases of the NSPS performance management cycle
• Describe who is involved (both individuals and groups) during the
  various phases of the cycle
• Describe the time requirements for rating employees
• Describe the sequence of events and timeframes for the activities
  that occur at the end of the rating period
• Describe pay pool administration and procedures
• Describe the administrative reconsideration process
• Describe the automated tools that support NSPS



18 Sep 2006 / 20 Jul 2006                                       Emp-140
                                                          5-Phase Cycle




                               Rewarding       Planning




                            Rating                 Monitoring




                                      Developing

                                                                 Phases

18 Sep 2006 / 20 Jul 2006                                         Emp-141
                                                                                    Who’s Involved?

                                Keeps track of accomplishments, provides information to rating official, assists in
     Employee                   establishing job objectives.

                                Immediate supervisor. Establishes job objectives and performance expectations,
     Rating Official            monitors performance, rates employees, recommends rating, shares, and distribution
                                to second level reviewer and pay pool panel.



    Guest Rater
                                Another person for whom the employee has worked during the rating cycle, e.g., on
                                detail, who provides input to the rating official on an employee’s performance.


     Pay Pool
                                Coordinates and prepares for the pay pool panel meetings.
     Administrator


    Second Level
     Reviewer
                                Manager above supervisor. Reviews and adjusts recommended ratings, shares, and
                                distribution from rating official(s).

                                Comprised of managers who review and recommend final ratings, shares, and
     Pay Pool Panel             distributions (―reconciliation‖) to the pay pool manager.

                                Senior manager who makes final decisions on all ratings, shares, and distributions.
     Pay Pool Manager           Appoints pay pool panel members and makes certification decisions.



    Performance Review
     Authority
                                Higher level review body that looks into employee requests for reconsideration.
                                                                                                                      
    18 Sep 2006 / 20 Jul 2006                                                                                   Emp-142
                                       Highlights of the Performance Year,
                                                1 October – 30 September

   When                     Who                               What
                                      Set performance expectations and job objectives
By 31 Oct          Supervisor
                                      (jointly with employee)
(throughout                           Monitor performance, conduct mid-year review(s),
                   Supervisor
year)                                 develop employees
                                      Prepare self assessment and accomplishments, give
By 30 Sep          Employee
                                      to supervisor
                                      Recommend ratings, shares, and payout distributions
By 31 Oct          Supervisor         to Second Level Reviewer, who reviews, modifies, and
                                      reconciles and forwards to Pay Pool Panel
                   Pay Pool Panel,    Panel reviews, modifies, reconciles ratings; Pay Pool
By 30 Nov
                   Pay Pool Manager   Manager approves ratings of record and payouts
                                      Communicates rating of record to employee (after
Nov-Dec            Supervisor
                                      Pay Pool manager approval)
January (tbd)      CPOC               Payout actions processed in DCPDS



18 Sep 2006 / 20 Jul 2006                                                            Emp-143
                                                  Planning

 Main Elements of Planning
 • Establish expectations
 • Establish a written performance plan:
       – Identify and discuss objectives
       – Select contributing factors
       – Establish weighting

 The performance plan requires higher-level approval
 •
 • Identify developmental needs
 • Basis for ongoing dialogue about performance
                                                   Planning

 18 Sep 2006 / 20 Jul 2006
                                                    Emp-144
                                Monitor Employee Performance

• Ongoing Feedback and Dialogue
      – Acknowledge accomplishments
      – Reinforce positive behaviors
      – Anticipate and address difficulties
      – Remedy shortfalls
• Interim Review
      – Required at least once during the performance management
        cycle; should be informative and developmental
      – Check progress toward objectives, making necessary
        adjustments
• Closeout assessments as necessary
                                                             Monitoring

18 Sep 2006 / 20 Jul 2006                                       Emp-145
                                                    Interim Review

 • An interim performance review is required at least once
   during the performance management cycle; should be
   informative and developmental
       – At least one interim review must be documented, and the
         employee furnished a copy

 • Check progress towards objectives, make necessary
   adjustments
 • Provides an opportunity for feedback so the employee
   has the direction to achieve the objectives

 Documented in the automated appraisal tool
 •

                                                                      
 18 Sep 2006 / 20 Jul 2006                                         Emp-146
                             Adjusting a Performance Plan

 Guidelines for changing the performance plan
 • Performance plans may be changed during the year

 Objectives, contributing factors, and weights may be
 •
   changed together or separately
 • The employee should have sufficient time before the end
   of cycle to work towards a new performance plan
 • Best practice: no changes in performance plan after mid-
   cycle review
 • No surprises

                                                            
 18 Sep 2006 / 20 Jul 2006                               Emp-147
                                                     Addressing
                                        Performance Deficiencies

                Options
                • Remedial training
                • Mentoring
                • Coaching
                • Reassignment
                • Performance Improvement Plan
                • Letter of counseling
                • Verbal or written warning
                • Written reprimand
                • Adverse action

                                                             
18 Sep 2006 / 20 Jul 2006                                 Emp-148
                                   Documenting Performance

Contributions                      Context
• Highlight overall performance    • Restate your understanding of
  by detailing most significant      objectives and Contributing
  achievements for the year.         Factors.
• Make the connection between      Challenges
  what was done and why that
                                   • Note challenges that were
  should matter to the
                                     encountered and how they
  organization.
                                     were handled.
• Cite instances where actions
                                   • Note areas for continuing
  reflected those listed in the
                                     development or for
  Benchmark Descriptors for
                                     improvement.
  selected Contributing Factors.


                                                                    
18 Sep 2006 / 20 Jul 2006                                        Emp-149
                                             Exercise: Writing Effective
                                                      Self-Assessments

• Self-Assessments are written to incorporate what you achieved
  considering the Performance Indicators and Contributing Factors
• Assessments need to include a result – make the connection
  between what you did and why it matters
• Consider these tips:
      – Write them in a clear and concise manner
      – Identify specific examples of what you achieved
      – Demonstrate how your accomplishments support your organization
• Take 10 minutes to write an accomplishment for the job objective
  you wrote earlier



                                                                         
18 Sep 2006 / 20 Jul 2006                                            Emp-150
                                             Supervisor Reviews /
                                       Re-Writes Accomplishments

• Supervisors consider the employee-written
  accomplishments but put them into their perspective,
  considering the work of the entire organization, what the
  whole group did, who did what
• When entering the accomplishments into the automated
  system, they need to be in the supervisor’s words and
  from the supervisor’s perspective
      – Don’t copy and paste from the employee’s write-up




18 Sep 2006 / 20 Jul 2006                                   Emp-151
                                                Developing


  Options:
  • Meaningful performance-related discussion
  • Mentoring and coaching
  • Classroom training

 Participation in process-improvement teams
 •
  • Details and reassignments
  • Review and update Individual
    Development Plans

                                                   Developing

18 Sep 2006 / 20 Jul 2006                           Emp-152
                                  Performance and Payout Timeline

A 12 month cycle and a 15 month process




                                                   JUN
                                           MAR
                            NOV     JAN            JUL
                   OCT                     APR     AUG
                            DEC     FEB    MAY     SEP




18 Sep 2006 / 20 Jul 2006                                  Emp-153
                                             End of the Performance Cycle

                                              Apr
                                       Mar          May

                                 Feb                      Jun
  Effective Date of
Performance Payouts            Jan                         Jul
     Employee
    Feedback &                  Dec                       Aug
   Challenges to
  Rating of Record
                                      Nov            Sep
                                              Oct


                                                                    Employee
 Pay Pool Panel
                                                                 Self Assessment
   Meetings


         Supervisor & Reviewer Assessment
       Recommended Rating and Shares/bonus



                                                                         Rating
   18 Sep 2006 / 20 Jul 2006                                               Emp-154
                                                         End of Cycle Milestones

                             Supervisor (Rating Official) Recommendations



           Rating of Record                Number of Shares         Distribution of payout
           Rounded total of                   Guided by             Pay increase vs. bonus
          weighted obj ratings               Share Range


                               Second Level Reviewer Recommendations


                             Pay Pool Panel Reconciles Recommendations
                            Guided by: Supervisory and Employee Assessments,
                              Guest Rater Comments, First Hand Experience


                            Pay Pool Manager Authorizes Rating and Payout


                              Supervisor provides feedback to employee
                              Communicates rating, shares and payout value
                                    One-on-one dialogue preferred
                                                                                                
18 Sep 2006 / 20 Jul 2006                                                                    Emp-155
                                                       General Rules

Requirements:
• There are a minimum of 90 consecutive days performance in an
  appraisal period
• Rating period may be extended in limited circumstances
Special Situations:
• Employees who have not completed the minimum period of
  performance (90 days) under an approved NSPS performance plan
  during the appraisal period will not receive a performance score and
  will not be eligible for a performance payout
• Deployed employees (have not served the minimum time) are given
  their last rating of record or the pay pool modal rating (whichever is
  more advantageous to the employee)

                                                                      
18 Sep 2006 / 20 Jul 2006                                          Emp-156
                                          Closeout Assessments and
                                                Early Annual Ratings

• Closeout Assessment:
      – Issued to eligible employees who have met the minimum time-
        period for NSPS coverage, but who move from one position to
        another or from one supervisor to another during the appraisal
        period
• Early Annual Rating:
      – When the supervisor leaves a supervisory position within 90
        days of the end of appraisal period
      – When the employee is reassigned within NSPS within 90 days of
        the end of the appraisal period

• Refer specific questions to your HR specialist

                                                                      
18 Sep 2006 / 20 Jul 2006                                         Emp-157
                                         Steps in the Rating Process

• Compare accomplishments with job
  objectives
      – Use the appropriate Performance
        Indicator
                                                   Performance

      – Review levels 3 and 5 to determine
                                                    Indicator


        objective rating

• Consider the selected Contributing
  Factors
      – Review benchmarks at expected and
        enhanced levels for all selected factors
      – Add one point if performance matches or
        exceeds enhanced level; subtract one
        point if less than expected level

                                                                    
18 Sep 2006 / 20 Jul 2006                                        Emp-158
                                       Rating and Pay Pool Hierarchy

•   Supervisor recommends:
      – Performance rating
      – Number of shares
      – Distribution between salary increase and bonus
•   Higher level reviewer:
      – Reviews supervisor’s recommendations, changes as appropriate
•   Pay Pool Panel:
      – Reconciles ratings, shares, and distribution within the pay pool; changes as
        appropriate
•   Pay Pool Manager:
      – Makes final decisions on rating of record, number of shares, and distribution
•   Supervisor conveys final rating, shares, and distribution to employees
      – After the pay pool manager is done



                      How do we ensure consistency and fairness?
18 Sep 2006 / 20 Jul 2006                                                          Emp-159
                                                         Pay Pool Basics

• What is a pay pool?
      – A group of employees who share in the distribution of a common pay-
        for-performance fund
• How are membership and boundaries of a pay pool determined?
      – By organizational structure
      – By similar lines of occupations or jobs
      – By geographical location
      – By organizational mission
      – Other considerations: pay bands, career groups, etc.

• Pay pools will be structured differently in different organizations




18 Sep 2006 / 20 Jul 2006                                              Emp-160
                                            Pay Pool Basics, con’t

• What does the pay pool panel do?
      – Ensures equity and consistency in the rating and payout
        determinations by recommending rating and payout
        adjustments for final approval by the Pay Pool Manager

• What is the management structure of the pay pool?

   The Performance Review Authority (PRA)
   –
      – The Pay Pool Manager (PPM)
      – The Pay Pool Panel




                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-161
                                  Pay Pools: Army Guidance

• Pay pool structures may be redefined each performance
  cycle
• All pay pool officials and raters will be management
  officials
• Size should range from 35 to 300
• General rule: separate pools for supervisors and
  nonsupervisory employees
• Consider sub-pay pools when the pool size exceeds 150



                            SC 1940.11
18 Sep 2006 / 20 Jul 2006                                Emp-162
                                                           Pay Pools:
                                        Communicating with Employees

• The supervisor will communicate to the employee before the
  effective date of the payout the:
      – Approved rating of record
      – Share assignment
      – Payout distribution                                 Within 90 days of the
                                                            beginning of the rating
• Employees will be notified in advance of payouts         on: or NLT 31 Dec.
                                                            period
      – Roles and responsibilities of employees, raters, pay pool panel
        members, and pay pool managers
      – Pay pool composition
      – Pay pool panel membership
      – General pay pool policies and business rules
      – The factors that may be considered in making
        specific share assignments
                                                                                      
18 Sep 2006 / 20 Jul 2006                                                      Emp-163
                                                 Pay Pool Funding

• Element 1
      – Money historically spent on CRI (WGIs / QSIs)
      – Promotions between broadbands (GS grades)

• Element 2
      – Rate Range Adjustment and/or Local Market Supplement
        remainder, if any

• Element 3
      – Funds spent for performance-based cash awards (money
        historically spent on CA)



                                                                  
18 Sep 2006 / 20 Jul 2006                                      Emp-164
                                                      Performance Payout

• An employee’s performance payout may be paid as:
      – An increase in base salary
      – A bonus
      – A combination of the two
• The payout distribution is subject to pay pool panel reconciliation
  and final approval by the pay pool manager
• Exercise care to determine an appropriate distribution of the payout
  between base salary increase or bonus; consider:
      – Current salary and level or complexity of work performed in comparison
        with others in similar work assignments
      – Local market salary levels of comparable occupations in the private
        sector and in other government activities
      – Attrition and retention rates of critical shortage skill personnel
      – Fiscal implications

                                                                                
18 Sep 2006 / 20 Jul 2006                                                    Emp-165
                            Calculating Performance Payouts

An employee’s performance payout is calculated by
multiplying the employee’s base salary at the end of the
appraisal period by the share value percentage, and then
by the number of shares earned by the employee:

  Employee Performance Payout = Base Salary X Share Value X Shares


The total performance payout is distributed between an increase in
base salary or a bonus, or a combination of the two:

          Employee Performance Payout = Salary Increase + Bonus


                                                                     
18 Sep 2006 / 20 Jul 2006                                         Emp-166
                                                  Performance Shares

• The value of a performance share depends on:
      – The total amount of available pay pool funds
      – The number of shares awarded to employees in that pay pool
      – The base salary of employees who have been awarded a payout
• The value of a share cannot be exactly determined until the pay
  panel process is complete
• No performance pay increases will cause an employee's base salary
  to exceed the maximum rate for the pay schedule, band, and level
  occupied by that employee
      – Any excess amount will be paid as a performance bonus
      – For employees who receive retained rates above
        the applicable pay band maximum, the entire
        performance payout is in the form of a bonus


                                                                         
18 Sep 2006 / 20 Jul 2006                                             Emp-167
                                         Performance Payout
                                        Design Considerations
The value of the payout is directly proportional to:
 • The number of shares assigned within the pay pool to which the
   employee belongs
 • The number of shares assigned to the individual employee
 • The salary of the employee

The size of payout reflects employee’s relative contribution
to the organization in comparison to other employees in
the organization
      The more shares assigned within the pay pool,
            the less the value of each share

                                                                    
18 Sep 2006 / 20 Jul 2006                                      Emp-168
                                         Rating Distribution Considerations

                                    Distribution A                                      Distribution B




Modeling Example:
                               Percent                 Amount*                    Percent           Amount*
Average raise                  4.43%                    $2,215                    4.43%             $2,215
Maximum raise                  9.55%                    $4,775                    6.75%             $3,375
Average raise for a            3.16%                    $1,580                    2.25%             $1,125
level 3 rating
Average raise for a
                               6.21%                    $3,105                    4.44%             $2,220
level 4 rating
Average raise for a
                               9.24%                    $4,620                    6.58%             $3,290
level 5 rating
                                       * Amount based on base salary of $50,000
   18 Sep 2006 / 20 Jul 2006                                                                       Emp-169
                                                          Pay Pool Calculations




1. Total Base Salaries
2. Total Base Salaries X Payout Factor = Pay Pool Value
3. Base Salary X Shares = Salary Share Product
4. Pay Pool Value / Total Salary Share Product = Share Value per Share
5. Base Salary X Shares X Share Value per Share = Employee Performance Payout
   (this does not show how the payout is distributed – bonus vs. salary increase)

       Example: Employee B $42,356 X 2 X 1.866922 = $1,582                             
18 Sep 2006 / 20 Jul 2006                                                           Emp-170
                               Starting Over: Setting and Communicating
                                 Performance Expectations for Next Cycle


• Purpose: Set up and communicate performance
  expectations and job objectives for the coming year
• Done in October when the performance cycle starts over
      – Note that the new cycle begins before the former cycle
        completes

• Coverage:
      – Discuss goals and expectations for the next period
      – Help your employee improve his or her performance
      – Summarize the discussion and sign documentation




18 Sep 2006 / 20 Jul 2006                                         Emp-171
                                    Administrative Reconsideration /
                                                          Grievance
Employees may challenge:                        Employees may not challenge:
Performance rating                                                 Performance payout
                                                                      Number of shares
                                                                          Value of shares
                                                                 Distribution of payout


•   Two avenues to challenge a rating:
      – Administrative reconsideration procedure (available to all employees)
      – Negotiated Grievance procedure (available only to bargaining unit
        employees)
 SC1940.12.4.3. Allegations that a performance rating was based on prohibited
 discrimination, such as race, color, religion, sex, national origin, age, physical or mental
 disability, or reprisal may not be processed through the reconsideration process, but
 instead shall be processed through the Equal Employment Opportunity discrimination
 complaint procedure.
18 Sep 2006 / 20 Jul 2006                                                               Emp-172
                                                         SC1940.12.4 Procedures for
                                                       Administrative Reconsideration
                                                                                                        Pay Pool
                           New                                  Reviews & Confers                       Manager
                                                                 W/ Rating Official                     Renders
           May Request                                                                               Written Decision
            to Address                                          Conducts Further                      To Employee
         Pay Pool Manager                                      Inquiry, As Deemed
               and/or                                              Appropriate
          Pay Pool Panel
Rating                                                            Determines if
                                  Submit written                                                  Within 15 days of
                                   request to                    pay pool panel                  Receipt of Employee’s
    Employee                                                   should be convened
                                    Pay Pool                                                         Request for
     Seeking
                                    Manager                                                        Reconsideration
  Reconsideration                                                   Decide on
                                 Copy to Servicing             Employee’s Request
                                                                                            Copy to Servicing Copy to
 Within 10 calendar              Human Resource                to Address Pay Pool
                                                                                            Human Resource Rating Official
 days of Receipt of                   Office                     Manager / Panel
                                                                                                 Office
 Rating of Record,
   Submit Written                   Copy to                    Reviews & Prepares
    Challenge /                   Rating Official                To Discuss With
  Reconsideration                                               Pay Pool Manager

 SC1940.12.4.13. When calculating time limits under the administrative reconsideration procedure, the day of
 an action or receipt of a document is not counted. The last day of the time limit is counted unless it is a
 Saturday, a Sunday, a legal holiday, or a day on which the employee is not regularly scheduled to work. In      Decision
 those cases, the last day of the time limit shall be moved to the next regularly scheduled work day. All time
 limits are counted/in calendar days.
      18 Sep 2006 20 Jul 2006                                                                                    Emp-173
                                           SC1940.12.4 Procedures for
                                          Administrative Reconsideration
                                                                                 Rating Official
                                                                              Human Resource
                                                                                  Office
                                                                                Copy to
                                              Renders Written Decision          Pay Pool
          Pay Pool                            Within 15 Calendar Days           Manager
          Manager                              Of Receipt of Request
          Renders                                     To PRA
       Written Decision
        To Employee
                                              Conducts Further Inquiry         Within 15 days
                                              As Deemed Appropriate            Written Decision
                                                                                to Employee
     Within 15 days of
                                              Reviews and Confers
    Receipt of Employee’s
                                              With Pay Pool Manager             Decision of PRA
        Request for
      Reconsideration                                                           or PRA Designee
                                                                                     is final.
Copy to Servicing                              Performance Review Authority
                  Copy to
Human Resource Rating Official                    (PRA) or PRA Designee
     Office

                                       Within                   Employee Submit
                                  5 Calendar Days               Written Request
                                    of Receipt of               For Final Review
                                 Pay Pool Manager’s                  To PRA
                                      Decision
    18 Sep 2006 / 20 Jul 2006                                                        Emp-174
                      Decision
                               Automated Tools Supporting NSPS

  The Defense Civilian Personnel Data
    System (DCPDS) is adding tools to
    assist in NSPS processes:

 Performance Appraisal Tool
 •

 Compensation Workbench
 •
       – Assists in the management, control, and distribution of NSPS
         performance payouts
       – Available to pay pool panels

 Pay Pool Identifier Tool
 •
       – Assigns employees to the correct pay pool
       – Identifies NSPS roles (pay pool panel members, pay pool managers, etc.)


                                                                              
  18 Sep 2006 / 20 Jul 2006                                                Emp-175
                               The Performance Appraisal Tool

 Automated tool that:
 •
       • Provides an electronic version of the Performance Appraisal form
       • Provides for input of interim and annual employee and
         supervisory assessments
       • Documents performance discussions
       • Captures the recommended rating by the supervisor and the
         final rating
       • Stores completed appraisals

 Accessible to both employees and supervisors
 •
       • Accessed via CPOL to My Workplace (supervisor / manager) or
         MyBiz (employee)
                                                                       
 18 Sep 2006 / 20 Jul 2006                                          Emp-176
                                                     My Biz / My Workplace
                                                Performance Appraisal Flow
 Develop Performance Plan        Interim Appraisal             Final Appraisal



  Create Performance Plan     Create interim appraisal       Transfer to employee



     Transfer to employee       Transfer to employee        Input self-assessment



    Review and give input      Input self-assessment         Transfer to supervisor



    Transfer to supervisor     Transfer to supervisor      Input recommended rating



  Approve Performance Plan   Input employee assessment      Transfer to pay pool mgr



                                Transfer to employee

       = Supervisor
                                   Acknowledge
       = Employee


                               Transfer to supervisor
18 Sep 2006 / 20 Jul 2006                                                     Emp-177
                                                Round Robin Exercise: A-Ha!


                                1.                     Supply          2.
                               Job                                    Self
          Nurse             Objectives                  Clerk      Assessment




                          4.
                                         Engineer             3.
                                                          Supervisor
                        Rating
                                                          Assessment            Budget
                                                                                Analyst




18 Sep 2006 / 20 Jul 2006                                                        Emp-178
                                                   Lesson 7 Review

• Summary
      – List the five phases of the NSPS performance management cycle
      – Describe who is involved (both individuals and groups) during
        the various phases of the cycle
      – Describe the time requirements for rating employees
      – Describe the sequence of events and timeframes for the
        activities that occur at the end of the rating period
      – Describe pay pool administration and procedures
      – Describe the administrative reconsideration process
      – Describe the automated tools that support NSPS
• Questions?

18 Sep 2006 / 20 Jul 2006                                          Emp-179
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18 Sep 2006 / 20 Jul 2006                                        Emp-180
                     Lesson 8:
             Performance Conversations




                              Return to TOC

18 Sep 2006 / 20 Jul 2006                     Emp-181
                                        Lesson 8 Objectives

After completion of this lesson, participants will be able to:
• Explain how communication drives performance
  improvement
• Identify and list opportunities for providing feedback to
  employees
• List the performance conversations that are required by
  NSPS and describe the primary purpose(s) and
  outcome(s) of each
• Apply guidelines for communicating with employees



18 Sep 2006 / 20 Jul 2006                                 Emp-182
                                                Emphasis Changing

• Managers:
      – Emphasis is on enhancing their leadership role

• Employees:
      – From executing instructions to taking responsibility
      – Since objectives are framed in terms of results rather than
        activities, employees can best determine how to do their job
      – Because employees are more involved in planning their activities
        and goals, they take greater responsibility for their work
      – Greater involvement can lead to employees with greater
        motivation

                              Cultural Change

18 Sep 2006 / 20 Jul 2006                                          Emp-183
                                                      Communication
                                                  Drives Performance

• Creates shared understanding
      – Setting and leveling expectations
      – Priorities, goals, objectives

• Builds mutual trust and confidence
• Provides a framework for identifying, addressing, and
  resolving performance issues
• Promotes a common sense of purpose and direction




                                Cultural Change
18 Sep 2006 / 20 Jul 2006                                     Emp-184
                                  Framing the Discussion

• What is the desired outcome?
• What do I want to focus on?, e.g., performance?
  behavior? development? goals for next year?
• Identify 2-3 follow on actions to be taken
• Identify some conversation starters
• What are some tough questions employee may ask?
• Establish follow-up date




18 Sep 2006 / 20 Jul 2006                           Emp-185
                                    Performance Conversations

 Conversation 1: (required)         Conversation 3: (optional)
 Performance Plan                   End-of-Cycle Review
 • Beginning of cycle.              • End of cycle.
                                    • Needs to be a separate
                                      conversation from the first one
                                      of the following cycle.
 Conversation 2: (required)         Conversation 4: (required)
 Interim Review(s)                  Annual Appraisal
 • At least one during the cycle.   • Three months after the end of
                                      the rating cycle.
                                    • Communicate pay
                                      pool decisions.

                                                                        
18 Sep 2006 / 20 Jul 2006                                         Emp-186
                                                 Employee Preparation for
                                               Performance Conversations

Conversation 1: (required)                   Conversation 3: (optional)
Performance Plan                             End-of-Cycle Review
• Draft job objectives for current (new)     • Write a self-assessment (required).
  rating cycle.
                                             • Review the Achieving Results
• Review Contributing Factors and relevant     Performance Indicator.
  Performance Indicators.
                                             • Review your Contributing Factors.
• Consider stretch goals and developmental
  needs.
 Conversation 2: (required)                  Conversation 4: (required)
 Interim Review(s)                           Annual Appraisal
 • Review your performance plan and          • None
   development plan.
 • Write a self-assessment (recommended)
   or be ready to present examples of
   progress made toward achieving
   objectives.
  18 Sep 2006 / 20 Jul 2006                                                Emp-187
                                                 Employee Preparation for
                                               Performance Conversations

Conversation 1: (required)                   Conversation 3: (optional)
Performance Plan                             End-of-Cycle Review
• Draft job objectives for current (new)     • Write a self-assessment (required).
  rating cycle.
                                             • Review the Achieving Results
• Review Contributing Factors and relevant     Performance Indicator.
  Performance Indicators.
                                             • Review your Contributing Factors.
• Consider stretch goals and developmental
  needs.
 Conversation 2: (required)                  Conversation 4: (required)
 Interim Review(s)                           Annual Appraisal
 • Review your performance plan and          • None
   development plan.
 • Write a self-assessment (recommended)
   or be ready to present examples of
   progress made toward achieving
   objectives.
  18 Sep 2006 / 20 Jul 2006                                                Emp-188
                                Performance Conversations Process


          Preparation                Conversation                Outcomes


    Each conversation            Each conversation           Each conversation
    requires                     has a distinct              has important
    preparation                  purpose                     outcomes

    Example Task                 Example Topics              Example Products
    • Drafting job objectives    •    Accomplishments        •   Performance plan
    • Reviewing                  •    Contributing Factors   •   Written appraisal
      organizational goals       •    Development goals      •   Recommended rating
    • Writing a self-            •    Areas for              •   Recommended
      assessment                      improvement                payout




18 Sep 2006 / 20 Jul 2006                                                            Emp-189
                                       Performance Plan Conversation:
                                         Purposes & Outcomes
PURPOSES                            OUTCOMES
• To reach a joint understanding    • Performance plan
  of performance expectations for
                                    • Development plan
  the current (new) rating cycle
                                    • Conversation notes, other
• To align employee objectives
                                      relative documentation
  with organizational goals
• To identify developmental
  needs




18 Sep 2006 / 20 Jul 2006                                         Emp-190
                                        Performance Plan Conversation:
                                                        Preparation
EMPLOYEE                             MANAGER/SUPERVISOR
• Draft job objectives for current   • Communicate organizational
  (new) rating cycle.                  goals to employee in advance.
• Review Contributing Factors        • Review employee’s previous
  and relevant Performance             performance plan and current
  Indicators.                          salary.
• Consider stretch goals and         • Review Contributing Factors
  developmental needs.                 and relevant Performance
                                       Indicators.




18 Sep 2006 / 20 Jul 2006                                       Emp-191
                                              Performance Plan Conversation:
                                                            Topics & Tips
REQUIRED TOPICS                            TIPS
• Organizational goals                     • Be open to employee input and
• Work priorities                            ideas

• Job objectives                           • Be open to employee concerns
                                             about potential barriers and
• Contributing Factors                       unknowns
• Developmental needs                      • Consider talking about your
• Impact of conduct on                       own job objectives and how
  performance                                these fit with the employee’s
                                             job objectives
      Optional Topics
                                           • You may want to review the
      – Potential barriers to success
                                             overall rating process with the
      – Tasks, timelines, and milestones     employee


18 Sep 2006 / 20 Jul 2006                                               Emp-192
                                       Interim Review Conversation:
                                       Purposes & Outcomes
PURPOSES                          OUTCOMES
• To check progress toward        • Confirmed performance plan
  achieving objectives            • Confirmed development plan
• To acknowledge what is          • Conversation notes, other
  working                           relative documentation
• To make course corrections as
  needed                             Optional Outcomes
                                     – Revised performance plan
• To provide feedback so the
                                     – Revised development plan
  employee has the direction
                                     – Performance Improvement Plan
  needed to achieve objectives
                                       (PIP)




18 Sep 2006 / 20 Jul 2006                                         Emp-193
                                      Interim Review Conversation:
                                                    Preparation
EMPLOYEE                         MANAGER/SUPERVISOR
• Review your performance plan   • Review your own notes
  and development plan             regarding previous feedback
• Write a self-assessment          given and employee self-
  (recommended) or be ready to     assessment (if submitted)
  present examples of progress   • Review organizational goals and
  made toward achieving            work priorities
  objectives                     • Review employee performance
                                   plan and development plan.
                                 • Create an agenda and plan your
                                   feedback




18 Sep 2006 / 20 Jul 2006                                   Emp-194
                                            Interim Review Conversation:
                                                      Topics & Tips
TOPICS                               TIPS
• Progress made toward               • Distinguish this conversation
  achieving objectives                 from the ―everyday‖ feedback
• New or changing organizational       you give employees
  goals and work priorities          • Note problems, but avoid
• Adjustments to performance           problem-solving
  plan and/or development plan       • Provide feedback that is specific
                                       and supportive
       Optional Topics
                                     • Provide examples of the
       – Areas for improvement
                                       employee’s performance
       – Problems solved, problems
           needing solutions         • Do not say, ―If I were to rate
                                       your performance today …‖



18 Sep 2006 / 20 Jul 2006                                         Emp-195
                                     End-of-Cycle Review Conversation:
                                          Purposes & Outcomes
PURPOSES                             OUTCOMES
• To review employee self-           • Written appraisal
  assessment                         • Recommended rating
• To clarify understanding of        • Recommended shares
  accomplishments and
  contributions and to gather        • Recommended payout
  additional information regarding     distribution
  employee performance
• To provide feedback for
  continuing success and       Recommended rating, shares, and payout
  development                  distribution are NOT to be discussed with
                               the employee during this conversation



                                                                    
18 Sep 2006 / 20 Jul 2006                                        Emp-196
                             End-of-Cycle Review Conversation:
                                                 Preparation
EMPLOYEE                     MANAGER/SUPERVISOR
• Write a self-assessment    • Review employee self-
• Review the Performance       assessment
  Indicators                 • Review your notes from the
• Review your Contributing     Interim Review and other
  Factors                      feedback conversations
                             • Review the Performance
                               Indicators and the descriptors
                               for selected Contributing
                               Factors
                             • Create an agenda and plan your
                               questions



18 Sep 2006 / 20 Jul 2006                                Emp-197
                                                 End-of-Cycle Review Conversation:
                                                                  Topics & Tips
TOPICS                                          TIPS
• Employee self-assessment                      • Use your best listening skills;
• Employee job objectives,                        ask questions to clarify
  accomplishments, and link to                    understanding, otherwise let
  organizational goals                            the employee do most of the
                                                  talking
• Selected Contributing Factors
  and Benchmark Descriptors                     • Give feedback throughout the
                                                  year to reduce employee
      Optional Topics
                                                  anxiety at this meeting
      – Improvements shown, areas
         needing further improvement            • Do not say, ―If I were to rate
                                                  your performance today …‖

            The End-of-Cycle Review and Performance Plan
            conversations should be scheduled separately.



18 Sep 2006 / 20 Jul 2006                                                     Emp-198
                                        Annual Appraisal Conversation:
                                         Purposes & Outcomes
PURPOSES                            OUTCOMES
• To review written appraisal       • Performance payout (January)
• To communicate rating of          • Rating of record
  record and performance payout     • Conversation notes, other
  (share and payout distribution)     relative documentation
• To provide feedback for              Optional Outcomes
  continuing success and               – Revised performance plan (for
                                         current cycle)
  development
                                       – Revised development plan
                                       – Performance Improvement Plan
                                         (PIP)
                                       – Appeals process




18 Sep 2006 / 20 Jul 2006                                           Emp-199
                                Annual Appraisal Conversation:
                                                Preparation
EMPLOYEE                    MANAGER/SUPERVISOR
• None                      • Review comments from Pay
                              Pool Panel (if any) and
                              incorporate them into the final
                              written appraisal
                            • Review your notes from the
                              End-of-Cycle Review and other
                              feedback conversations
                            • Plan your feedback, particularly
                              if the rating is below Valued
                              Performance or otherwise not
                              what the employee is expecting




18 Sep 2006 / 20 Jul 2006                                Emp-200
                                      Annual Appraisal Conversation:
                                                   Topics & Tips
TOPICS                            TIPS
• Written appraisal               • There should be no surprises.
• Rating of record                  All concerned want the
                                    appraisal to be fair
• Performance payout (share and
  payout distribution)            • If the rating of record is below
                                    Valued Performance, it is
      Optional Topics               important to discuss next steps
      – Areas for improvement       immediately
      – Appeals process           • Do not criticize or blame the
                                    pay pool panel for lowering a
                                    rating




18 Sep 2006 / 20 Jul 2006                                      Emp-201
                                                        Continuing
                                            Performance Discussions

• Recurring:
      – Revisit performance expectations.
      – Check progress

• Formal or informal
• Establish the relationship and ensure framework for the
  discussion is in place
• Ease the process in the event difficult conversation is
  required



                                                                
18 Sep 2006 / 20 Jul 2006                                    Emp-202
                               Feedback Aims & Opportunities

Feedback aims                       Feedback opportunities
• To reinforce positive             • In the moment
  behavior                             For instance …
• To acknowledge                       – When answering a question
  contributions and                    – When things go well (or not)
  accomplishments                   • On a schedule
• To anticipate difficulties           For instance …
                                       – Following completion of a
• To remedy shortfalls                   project or task
                                       – During required Performance
                                         Conversations




18 Sep 2006 / 20 Jul 2006                                        Emp-203
                                                     Lesson 8 Review


• Summary
      – Explain how communication drives performance improvement
      – Identify and list opportunities for providing feedback to
        employees
      – List the performance conversations that are required by NSPS
        and describe the primary purpose(s) and outcome(s) of each
      – Apply guidelines for communicating between supervisor and
        employees
• Questions?




18 Sep 2006 / 20 Jul 2006                                           Emp-204
                            Wrapping It Up: Cultural Changes



          NSPS is going to require some cultural changes
          in DoD.
          What cultural changes do you foresee as NSPS
          is implemented?




18 Sep 2006 / 20 Jul 2006                                  Emp-205
                                    Additional Resources

• NSPS website:
  http://www.cpms.osd.mil/nsps/
• Army NSPS website:
  http://cpol.army.mil/library/general/nsps/
• Army NSPS training website:
  http://www.chra.army.mil/NSPS-training/index.htm
• Your servicing Civilian Personnel Advisory Center
• Your NSPS Transition Team

           Thank you for your participation!

18 Sep 2006 / 20 Jul 2006                             Emp-206

				
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