Lesson 2: Policy and Context

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Lesson Objectives

At end of lesson, you will be able to

Describe the performance management cycle and place performance standards within the cycle Define critical and noncritical elements Describe key DFAS and OPM policies for developing performance standards

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Lesson Agenda

Five key topics

Performance management cycle overview Performance standards development Critical elements vs. noncritical elements Performance standards support DFAS Balanced Scorecard (BSC) Performance standards within DFAS policy

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What Is Performance Management?

It is a systematic process of

Planning work and setting expectations Continually monitoring performance Developing the capacity to perform Periodically rating performance in a summary fashion Rewarding good performance

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Performance Management Cycle

Planning Monitoring

Rewarding

Developing Rating

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Performance Management Cycle

Planning
Planning
Set Goals
Establish and communicate elements and standards

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Performance Management Cycle

Monitoring Monitoring
Measure performance

Provide feedback
Conduct progress review

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Performance Management Cycle

Developing
Address poor performance Improve good performance

Developing

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Performance Management Cycle

Rating
Summarize performance
Assign the rating of record

Rating
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Performance Management Cycle

Rewarding

Rewarding

Recognize and reward good performance

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What Is A Performance Plan?

DFAS definition
The written record of an employees critical and noncritical elements and performance standards.

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What Is A Performance Plan? (contd)

Employee Performance Plan

Performance Elements Tells employees WHAT they have to do

Performance Standards Tells employees HOW WELL they have to do it

Critical Element A major component of a job, which consists of 1 or more duties and responsibilities that contribute to accomplishing organizational goals and objectives that is of such importance that unacceptable performance in the element would result in unacceptable performance in the position.

Non-Critical Element A major component of a job that does NOT meet the definition of a critical element, but is important enough to warrant appraisal and assignment of an element rating

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What Is A Performance Standard?

Definition

A statement of the expectations or requirements established by management for each critical and noncritical element at the rating level Met.
Quality Quantity Timeliness Manner of Performance

Includes factors such as

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May 1, 2002

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Performance Standards

Determining standards - focusing on outcomes

Quality - Identify who will rate performance; list factors that rater will look for; state what rater will use to verify Met Quantity - List the units to be tracked and determine range of number that represents Met Timeliness - Determine acceptable number of times employee can fail and be Met Manner of performance - Best if addressed as part of another element to avoid conduct or attendance issues

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Performance Standards

Performance standards must be

Legally sufficient Developed with workload requirements of organization and position in mind Reasonable, capable of being exceeded Adequate enough to inform employee Considered a living document Objective

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When To Develop Performance Plans

Planning Monitoring

Rewarding

Developing

Rating
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How Do Performance Standards Link With DFASs Goals?

DFASs Strategic Goals

Programs Annual Performance Plan Goals

Work Unit Products & Services

Individual Employee Products & Contributions

Individual Employees Performance Standards

May 1, 2002 Lesson 2: Slide - 18

What Is A Performance Element?

Tells employees WHAT they have to do Two types of performance elements used by DFAS

Critical Elements Noncritical elements

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What Are Critical And Noncritical Elements?

Critical Element Definition

An assignment or responsibility of such importance that unacceptable performance in that element would result in a determination the employees overall performance is unacceptable.

Noncritical Element Definition

A dimension or aspect of individual team, or organizational performance, exclusive of a critical element, that is used in assigning a summary level rating
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Critical Element - Characteristics

A critical element can

Reflects basic purpose of position Cause considerable adverse consequences if not performed properly Require large amount of positions time Be a grade-determining factor Repeatedly be performed in some positions Be used to describe only an individual employees performance

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Critical Element Requirements And Practices

Number of required critical elements in performance plans

Non-bargaining unit employees - minimum of 2 Bargaining unit employees - minimum of 3

DFAS recommends odd number of critical elements No maximum limit - large number becomes unwieldy

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Noncritical Element - Characteristics

A noncritical element is

Not based on performance actions Used to measure group performance The importance each supervisor places on noncritical elements is one way to affect summary ratings

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How To Develop A Performance Plan

Identify Job Tasks
Group Job Tasks Determine What Is Missing

Critical or Non-critical

Develop Performance Standards

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Step 1: Identify Job Tasks For The Position

Review the DFAS Position Description to identify major job tasks

What would a person in this position do? How do these tasks relate to your divisions goals? How do these tasks relate to the agencys goals?

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Job Descriptions Are A Good Start But...

Can be outdated or incorrect Can be too generic Most job descriptions identify activities required for job Performance plans with elements and standards measure accomplishments not activities

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Step 2: Group Tasks Into Several Major Categories Of Tasks

Should have between 3 and 8 categories These categories are the performance elements Examples of performance elements

Customer Satisfaction Technical Administration Written Products

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Step 3: Review/Determine If Any Job Tasks/Elements Are Missing

Are there duties that a person in this position must perform that are not on the list yet? Are there duties that a person in this position will perform on an infrequent basis, but are still essential to their position?

Example:

Compile voucher processing data for quarterly and annual reports

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Step 4: Determine If Specific Elements Are Critical/Noncritical

Must have at LEAST 3 critical elements for bargaining unit employees If a person in this position performed this element in unacceptable manner, is it so critical that it would result in a rating of unacceptable performance for the position overall?

If so, its a critical element If not, but its still essential to this position, its a noncritical element

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May 1, 2002

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Exercise

Critical vs. Non-critical Elements Objective: to learn how to distinguish between critical and noncritical elements; to practice taking an existing job description and writing performance elements Time: 45 minutes

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How Do Performance Standards Link With DFASs Balanced Scorecard?

DFASs Strategic Goals

Programs Annual Performance Plan Goals

Work Unit Products & Services

Individual Employee Products & Contributions

Individual Employees Performance Standards

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DFAS Performance Management Policies

Requirements that apply to bargaining unit employees

Standards must be consistent with job duties and responsibilities Employee participation in developing standards and elements Objective, fair and reasonable, and job related appraisals Regular, informal feedback Recognition and rewards

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DFAS Performance Management Policies (contd)

DFAS performance standards requirements

Employee input at beginning of rating period Audit follow-up Protecting classified information Internal Management Control (IMC)

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DFAS Performance Management Policies (contd)

DFAS performance standards requirements

EEO Inventory Management Acquisition Safety Personnel Management

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May 1, 2002

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DFAS Performance Management Policies (contd)

Agency policies

Every employee must have approved plan; reviewed annually Plans must be approved by a higher level official Plans required for all employees assigned to a position for 90 days Employees must have performance plan for at least 90 days before rating can be rendered New supervisors must review and discuss plans with employees within 30 days after arrival

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Lesson Wrap-up

Performance management cycle has five stages There are 5 steps to develop performance plans There are critical and noncritical performance elements DFAS uses a Balanced Scorecard to meet competing needs Effective performance standards lead to success in Balance Scorecard goals

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