A pass-fail performance system does not provide enough
meaningful information “to recognize and reward top
performance, help everyone attain their maximum potential,
and deal with poor performers,” the Government Accountability
Office has said, in response to questions following a Senate
hearing on progress in human capital management.
Senator George Voinovich, R-Ohio, has asked GAO if, “instead
of allowing each agency to create its own performance
management system, should the federal government return to
a uniform multi-level performance evaluation system?”
GAO said the Office of Personnel Management recognizes that
agencies need to take different approaches to performance
management depending on their specific situations, but noted
that under the July 2004 OPM interim final regulations,
“agencies must have, at least four, but no more than five
rating levels, among other things, in designing their new
performance-based senior executive performance management
systems.”
Only after both OPM and the Office of Management and Budget
agree that agency “performance managements systems, as
designed and applied, make meaningful distinctions based
on relative performance,” may agencies raise the senior
executive pay cap, said GAO.
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