ITA TWO-LEVEL PERFORMANCE MANAGEMENT PROGRAM

QUESTIONS AND ANSWERS

Q.	Why did ITA change the current system?
A.	In 1995 the Office of Personnel Management permitted Federal Agencies to go to bureau level performance management systems for its general workforce employees. The Department of Commerce permitted operating units to choose from either a 5-level or a 2-level system that was tailored to meet the needs of a specific bureau. The Under Secretary called together a task group made up of employees representing all program units and consisting of employees and supervisors to study performance appraisal programs and make recommendations as to what might work better in ITA. This group recommended that ITA go to a 2-level performance appraisal program which would be simpler, which would emphasize planning and feedback, and one which would decouple the current cash awards program from end of year ratings. This recommendation was adopted by Under Secretary Aaron in January of 1999.
Q.	What benefits are expected from the new program?
A.	The main benefits that ITA hopes to derive from the new program are better communication in setting performance goals which are aligned with ITA's strategic plan, simplification, more frequent feedback on performance, tying awards to actual performance as it occurs, and an increased emphasis on teamwork.
Q.	How are we going to move from the current five-level program to the new two-level program?
A.	The current appraisal cycle will end as usual on September 30th. Ratings and awards will be given in accordance with the regulations on the five-level program. On October 1, 1999, implementation of the new two-level program will begin.
Q.	Why don't we just eliminate written appraisals completely?
A.	Performance appraisal systems, including the assignment and documentation of performance ratings, are required by law and government-wide regulations.
Q.	What are the main changes in the new performance management program?
A.	A reduction in the number of possible performance ratings, from 5 to 2. Under the new program, there are two ratings, Meets Expectations and Does Not Meet Expectations. Every employee will receive one of these two ratings every year. Simplification and reduction of paperwork. Under the new program, there is no requirement for second-level review of plans or appraisals unless there is a disagreement about the plan, or a rating of Does Not Meet Expectations is proposed. There is also no requirement for written narrative justification of a Meets Expectations rating, as ongoing feedback and recognition are intrinsic to the new program. Separating the rating process from the incentive award process. With the elimination of the various rating levels, the ratings will no longer drive awards as in the past. Rather, employee achievements will be recognized as they occur.
Q.	Will my immediate supervisor or team leader still be the rating official and will my second-level supervisor also have a say in the process?
A.	Your immediate supervisor or team leader will still be the rating official. Under the new program, a second-level supervisor is not required to be involved in reviewing the performance plan or in the rating process unless there is a disagreement with the plan or unless a Does Not Meet Expectations rating is being proposed.
Q.	What is a critical result?
A.	A critical result is a work assignment, responsibility or result to be achieved, that has such importance that unacceptable performance of the critical result would result in a determination that an employee's overall performance is unacceptable.
Q.	What are performance indicators?
A.	Performance indicators (previously know as performance standards) are statements of the performance expectations or requirements necessary for achieving the critical results of the position. ITA's generic performance indicators include quality, quantity, team work, and customer service measures, and they are designed to be a focal point for discussions between rating officials and employees throughout the rating period. Additionally the ITA System plan provides an optional Feedback on Performance Guide to facilitate communication between supervisor and employee.
Q.	Will there still be individual performance plans like before?
A.	Yes. Your performance plan will consist of critical results and the ITA generic performance indicators and any supplemental indicators you and your rating official believe are significant to measure performance on a given critical result. At the beginning of the rating period, your rating official will meet with you to identify 3 to 5 critical results that you are expected to meet during the rating period. The rating official will determine to what extent the quality, quantity, teamwork, customer service and other performance indicators apply to each critical result. These will be discussed with you at the beginning of the rating period to ensure a common understanding of performance expectations.
Q.	How many times do I meet with my rating official under the new program?
A.	There are at least three opportunities for employees and rating officials to meet: at the beginning of the performance cycle; at the progress review during the rating cycle; and at the final review when the rating is assigned. However, the new program is designed to encourage communication, so either party may initiate discussion at any point in time.
Q.	I always dreaded these "formal" types of discussions with my rating official and I think he/she dreaded them almost as much as I did. What will be different in this program in terms of the communication?
A.	First, a two-level process really eliminates the "report card" approach to performance management. It is hoped that under the new program, employees and raters alike will feel more open and comfortable in discussing work issues, since the Meets Expectations rating, which 99% of employees will receive, does not have a monetary impact. Second, since awards will be tied to performance as it occurs, there are more opportunities for ongoing feedback and discussion during the year in a less formal setting.
Q.	As a rating official, how do I determine if someone's performance is deficient?
A.	Under the new program, the rating official uses critical results and the performance indicators to define what is and what is not acceptable.
Q.	Will there still be Performance Improvement Plans (PIP) under the new program?
A.	Yes. ITA is still very much committed to helping people improve their performance and, in fact, preventing them from reaching the Does Not Meet Expectations level. For those few ITA employees whose performance "does not meet expectations", the PIP will continue to be the tool used when less formal counseling efforts are not successful and it becomes clear that an employee is falling short of expectations in one or more of the critical results. It is hoped that early intervention when there are problems will result in few or no Does Not Meet Expectations ratings.
Q.	I have always received Outstanding ratings in the past and a relatively large cash award. What happens to me in the new program?
A.	Outstanding and other high performers will still be eligible for cash awards under this program. Under the two-level program, awards will be granted throughout the year as employees make their contributions, rather than at the end of the year. There are still provisions for rewarding sustained superior performance through Quality Step Increases.
Q.	In the past, performance awards were always tied to the performance rating. Now it looks like they are separate. Why was this done?
A.	While awards (with the exception of the Quality Step Increase) will be decoupled from the employee's performance rating, there will be a better linkage of recognition to specific performance accomplishments as they occur. By recognizing good performance in a timely manner, employees will receive immediate positive reinforcement for contributions which further ITA's goals. In keeping with the Government Performance and Results Act (GPRA), it is envisioned that awards will be tied to organizations' and employees' success in producing results as outlined in the ITA strategic plan and Office operating plans.
Q.	If awards, other than a Quality Step Increase, are no longer tied to the appraisal, what will the awards program look like?
A.	We are restructuring our incentive awards program from one which emphasized rewarding accomplishments long after they have occurred to one which immediately recognizes the performance. In this way we hope to motivate employees to even greater achievements. The awards options themselves will not look very different from the ones we have now. With the exception of the annual performance award tied to the appraisal, all currently available awards will continue under the new program. Quality Step Increases will be the only award still tied to the appraisal (given after the appraisal cycle ends). Special Act or Service Awards, Time-off Awards, Cash-in-a-Flash, letters of appreciation, and honorary awards are all currently used and will take on greater importance, as they will be the primary methods for rewarding noteworthy and outstanding performance under the new program. Supervisors will be challenged to seek creative ways to motivate each of their employees, and to better relate awards to team accomplishments and organizational achievements.
Q.	Since ITA often does not have a final budget until well into the fiscal year, how can awards be given throughout the entire cycle?
A.	Historically, under the 5-level system, awards were given in the first quarter of the year, many times without a final budget being given (using funds in the Continuing Resolution). Pools will be determined at the beginning of the cycle based on the presumption that a final budget will be forthcoming, if not already in place.
Q.	Will we receive any Reduction In Force (RIF) service credit under the new program?
A.	Yes. Employees who are rated "Meets Expectations" will receive 12 years of service credit. Employees will receive 0 years of service credit for a "Does Not Meet Expectations" rating of record.