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GAO-16-520R 1 (2016-05-09)

handle is hein.gao/gaobaajwb0001 and id is 1 raw text is: G A O U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 May 9, 2016 The Honorable Ron Johnson Chairman Committee on Homeland Security and Governmental Affairs United States Senate Federal Workforce: Distribution of Performance Ratings Across the Federal Government, 2013 Dear Mr. Chairman: High-performing organizations have found that an effective employee performance management system-including expectation-setting, coaching, and feedback-can be a strategic tool to drive internal change and achieve desired results. Constructive performance feedback is also a strong driver of employee engagement.1 Developing modern, credible and effective employee performance management systems has been a long-standing challenge for federal agencies. In 2003, we identified a set of key practices for effective performance management to help agencies establish a clear line of sight between individual performance and organizational success and transform their cultures to be more results oriented, customer focused, and collaborative.2 Among other things, we reported that effective performance management requires the organization's leadership to make meaningful distinctions between acceptable and outstanding performance of individuals. That leadership must also appropriately reward those who perform at the highest level, and, when necessary, address poor performance. Meaningful distinctions in performance ratings are the starting point for candid and constructive conversations between supervisors and staff, and add transparency to the ratings and rewards process. Such distinctions also help employees better understand their relative contributions to organizational success, areas where they are doing well, and areas where improvements are needed. In our January 2015 report, we recommended that the Office of Personnel Management (OPM) do more to ensure meaningful distinctions are made for members of the Senior Executive Service (SES).3 You asked us to review performance management systems for non-SES employees across the 24 Chief Financial Officers Act (CFO Act) agencies.4 This report describes (1) the types of performance 'Employee engagement is generally defined as the sense of purpose and commitment employees feel toward their employer and the mission of their organization. A growing body of research on both private- and public-sector organizations has found that increased levels of engagement can lead to better organizational performance. See, for example, GAO, Federal Workforce: Additional Analysis and Sharing of Promising Practices Could Improve Employee Engagement and Performance, GAO-1 5-585 (Washington, D.C.: July 14, 2015). 2GAO, Results-Oriented Cultures: Creating a Clear Linkage between Individual Performance and Organizational Success, GAO-03-488 (Washington, D.C.: Mar. 14, 2003). 3GAO, Results-Oriented Management: OPM Needs to Do More to Ensure Meaningful Distinctions Are Made in SES Ratings and Performance Awards, GAO-1 5-189 (Washington, D.C.: Jan. 22, 2015). 4The CFO Act agencies are the executive branch agencies listed at section 901 (b) of title 31, United States Code. The agencies covered by the CFO Act of 1990, as amended, are generally the largest federal agencies and account for more than 98 percent of the federal workforce. GAO-16-520R Federal Employee Performance Ratings Page 1

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