Report on Management Agenda Issued

The Office of Management and Budget recently published the latest in a series of reports on agency progress in carrying out the President’s Management Agenda, a series of goals that include better management of “human capital”-that is, federal employees. OMB used the report to again pitch the administration’s proposal for a fund to reward high-performing employees. Said the report, “The Federal Human Capital Survey showed that only 30 percent of employees responding believe that their awards program gives them the incentive to do their best. Agency efforts to more clearly tie performance management to results will set the stage for the successful use of the Human Capital Performance Fund proposed in the 2004 budget. This $500 million fund would allow managers to reward their highest performers with increases to their base pay when they demonstrate that their performance appraisal systems appropriately distinguish between high and low performers.” However, employee organizations and many members of Congress have expressed doubts that agencies can accurately and fairly distinguish among levels of employee performance. A spending bill pending before the House would authorize just $2.5 million for the fund.