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B-166802 1 (1973-11-01)

handle is hein.gao/gaobaaeio0001 and id is 1 raw text is: COMPTROLLER GENERAL'S REPORT TO THE CONGRESS DIGEST WHY THE REVIEW WAS MADE GAO reviewed the t vy.e Aj rds Proq.c.zo determine whether cash performance awards (lump-sum special achievement awards and quality in- creases) and cash suggestion awards had been effective in encouraging employees to help improve Government operations. GAO also inquired into actions taken by the Civil Service Commission regarding previously- identified problems. GAO's review was made in 10 depart- ments and agencies, which repre- sented a cross section of the Fed- eral Government; at the Commission's headquarters; and at its Atlanta, New York, and San Francisco regional offices. FINDINGS AND CONCLUSIONS During fiscal year 1972, Government agencies granted over $16 million for 91,161 achievement awards and about $4.6 million for 56,606 em- ployee suggestions. The Commission reported measurable benefits of $315 million related to special achievements and adopted sugges- tions. (See p. 6.) Quality increases were awarded to 42,570 employees but related bene- fits were not determined. The Com- mission estimated a first-year cost of $17 million for these quality in- creases. (See p. 6.) Tear Sheet. Upon removal, the report cover date should be noted hereon. IMPROVING THE EFFECTIVENESS OF THE GOVERNMENT EMPLOYEES' 13 IV INCENTIVE AWARDS PROGRAM Oii. U.S. Civil Service Commission B-166802 LM09138 Performance awarc. Performance awards are not as effec- tive as they could be. Of the more than 1,900 randomly selected employ- ees responding to a GAO question- naire, 56 percent indicated that the Incentive Awards Program had not motivated them to do a better job and about 67 percent believed that favoritism was shown in granting cash performance awards. (See p. 8.) GAO believes that the primary reasons for this lack of confidence were: --Cash performance awards had been used inconsistently. In fiscal year 1972, special achievement awards by all Federal agencies ranged from 1 to 146 for each 1,000 employees and quality in- creases ranged from 2 to 85 for each 1,000 employees. GAO believes that the inconsistent use of cash performance awards is attributable in part to the vary- ing attitudes of management toward the awards and in part to the sub- jective nature of most performance awards. Cash performance awards should be used more consistently and per- formance criteria should be more objective. These awards should be given only when employee performance has clearly increased the productiv- ity, economy, efficiency, or ef- fectiveness of Government opera- tions. (See p. 14.) 1973 NOV. I

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