RD Instruction 2060-B

Table of Contents

Page 1

PART 2060 - PERFORMANCE MANAGEMENT

Subpart B - Performance Management

## [Table of Contents]{.underline}

[Sec]{.underline}. [Page]{.underline}

2060.1 Purpose. 1

2060.2 Legal authorities. 1

2060.3 Definitions. 1

2060.4 Forms and records. 3

\(a\) Appraisal forms. 3

\(b\) Opportunity to Improve. 4

\(c\) Records. 4

2060.5 Responsibilities. 4

\(a\) Agency heads. 4

\(b\) Servicing Human Resources Office. 5

\(c\) Reviewing officials. 5

\(d\) Rating officials. 5

\(e\) Employees. 6

2060.6 Coverage. 7

\(a\) Federal Rural Development employees. 7

\(b\) Schedule C employees. 7

\(c\) Excluded employees. 7

2060.7 Policy. 7

\(a\) Accountability. 7

\(b\) Communication. 7

2060.8 Planning Performance. 8

\(a\) Performance work plans. 8

\(b\) Critical elements. 8

\(c\) Additional performance elements. 10

\(d\) Standards. 10

\(e\) Signature of employee and rating official. 11

\(f\) Employee acknowledgment. 11

\(g\) Contents not grievable. 11

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RD Instruction 2060-B

Table of Contents

Page 2

[Sec]{.underline}. [Page]{.underline}

2060.9 Monitoring and Appraising Performance. 11

\(a\) Progress reviews. 11

\(b\) Ratings of record. 12

\(c\) \"Results Not Achieved\" performance. 15

2060.10 Linkage of Rating of Record to Other Personnel Actions. 16

\(a\) Within-Grade Increases (WGI). 16

\(b\) Promotions. 17

\(c\) Training and Development. 17

\(d\) Reduction-in-Force. 17

\(e\) Quality Step Increases (QSIs). 18

2060.11 Program Evaluation. 18

EXHIBIT A - Quick Reference for Developing Employee Performance

Work Plans that Link to Organizational Goals

oOo

RD Instruction 2060-B

PART 2060 - PERFORMANCE MANAGEMENT

Subpart B - Performance Management

§ 2060.1 [Purpose]{.underline}.

The purpose of performance management is to improve individual and
organizational performance, program effectiveness, and accountability by
focusing on results, service quality, and customer satisfaction, and by
aligning standards and elements with organizational goals and strategic
plans.

This Instruction is to be used for all non-bargaining unit employees,
and for bargaining unit employees where such coverage has been
negotiated. For other bargaining unit employees, go to RD Instruction
2060-A.

§ 2060.2 [Legal Authorities]{.underline}.

\(a\) USDA Performance Management System established on June 12, 1996

\(b\) Chapter 43 of Title 5 of the U.S. Code (USC)

\(c\) Title 5, Code of Federal Regulations (CFR), Part 430

\(d\) Title 5, CFR, Part 432

§ 2060.3 [Definitions]{.underline}. The following general definitions
and acronyms are applicable to the terms used in this subpart:

[Additional Performance Element]{.underline}. A dimension or aspect of
individual, team, or organization's performance that is not a critical
or non-critical element. Such elements are not used in assigning a
summary level.

[Appraisal]{.underline}. The act or process of reviewing and evaluating
the performance of an employee against the described performance work
plan, including oral and/or written progress reviews.

[Appraisal Period]{.underline}. The period of time during which an
employee\'s performance will be reviewed and a rating of record will be
prepared. The appraisal period generally begins on October 1 of each
year and ends on September 30 of the following year.

DISTRIBUTION: WSAL Personnel

> Employment

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RD Instruction 2060-B

§ 2060.3 (Con.)

> [Critical Element]{.underline}. A component of a position consisting
> of one or more duties and responsibilities on which the employee is
> rated and which contributes toward accomplishing the goals and
> objectives of the organization. This work assignment or responsibility
> is of such importance that unacceptable performance on the element
> would result in a determination that the employee\'s overall
> performance is at the \"Result Not Achieved\" level. Performance work
> plans under this two-level program only contain critical elements.
>
> [Customers]{.underline}. Internal coworkers and/or external members of
> the public who receive various services and/or products from RD
> employees.
>
> [EO/CR]{.underline}. Equal Opportunity/Civil Rights.
>
> [EPF]{.underline}. Employee Performance Folder.
>
> [Element Rating]{.underline}. The level of performance on a critical
> element which is determined by comparing accomplishments to the
> performance standard. Element rating levels are: \"Results Achieved\"
> and \"Results Not Achieved.\"
>
> [Minimum Appraisal Period]{.underline}. The 90-calendar-day period of
> time during which an employee must have operated under a performance
> work plan and for which the employee may receive a performance rating.
>
> [Opportunity to Improve (OTI)]{.underline}. A written plan established
> at any time during the appraisal period when it is determined by the
> Rating Official that an employee is performing at the \"Results Not
> Achieved\" level in any element(s). It outlines the steps the employee
> should take to improve performance to an acceptable level and the
> length of time for which it is in effect. It is contained in RD Form
> 2060-2, \"Opportunity to Improve.\"
>
> [Performance Standard]{.underline}. The management-approved expression
> of the performance threshold(s), requirement(s), or expectation(s)
> that must be met to be appraised at a particular level of performance.
> A performance standard may include, but is not limited to, quality,
> quantity, cost-efficiency, timeliness, and manner of performance.
>
> [Performance Work Plan]{.underline}. The written document that
> identifies the employee\'s critical elements and performance standards
> by which he/she will be rated. It is contained in RD Form
> 2060-1,\"Performance Work Plan.\"

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RD Instruction 2060-B

§ 2060.3 (Con.)

[Progress Review]{.underline}. A joint discussion between the Rating
Official and the employee regarding the employee\'s progress toward
achieving performance standards. It does not involve the issuance of a
rating of record.

[Rating of Record]{.underline}. The final summary rating normally issued
at the end of the appraisal period which becomes a part of the
Employee\'s Performance File (EPF) maintained in the Servicing Human
Resources Office.

[Rating Official]{.underline}. An employee\'s first line supervisor or
other person designated with responsibility for establishing performance
work plans, conducting progress reviews, and issuing final ratings of
record. Typically, the Rating Official resides in the same agency as the
employee being rated.

[Results Achieved]{.underline}. Element rating which means performance
meets expectations. Also, the overall summary rating which equates to
the Level 3, \"Fully Successful,\" as specified in 5 CFR
430.208(d)(2)(iii).

[Results Not Achieved]{.underline}. Element rating indicating
performance is unacceptable, i.e. *does not meet* expectations. It is
also a summary level which equates to the Level 1, \"Unacceptable,\" as
specified in\
5 CFR 430.208(d)(2)(ii).

[Reviewing Official]{.underline}. The individual responsible for
reviewing and concurring in a \"Results Not Achieved\" rating and
resolving differences of opinion between rating officials and employees.

[RIF]{.underline}. Reduction-in-Force.

[Team]{.underline}. A cooperative unit designed to accomplish a
specified mission, such as those typically found in local offices,
within organizational structures, assigned to specific tasks or
projects, etc. Team membership is not necessarily limited to a specific
agency or functional unit.

§ 2060.4 [Forms and records]{.underline}.

\(a\) [Appraisal Forms]{.underline}. Performance work plans containing
progress reviews and performance ratings conducted under this program
must be recorded on RD Form 2060-1.

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RD Instruction 2060-B

§ 2060.4 (Con.)

\(b\) [Opportunity to Improve (OTI)]{.underline}. An OTI is developed
and documented on RD Form 2060-2. See § 2060.9(c) for discussion of
performance at the \"Results Not Achieved\" level.

\(c\) [Records]{.underline}. In addition to the procedures set forth in
5 CFR Part 293, the following procedures govern the establishment and
maintenance of performance records.

\(1\) All records must meet the requirements of 5 CFR Part 297, as well
as any Departmental provisions of the Privacy and Freedom of Information
Acts.

\(2\) Additional performance elements that are developed between a
supervisor and employee and are not considered part of the rating are
not to be submitted to the Human Resource Office, but are to be
maintained by the supervisor and employee.

\(3\) Ratings of record and the performance work plans on which the
ratings are based must be filed in the EPF for the most recent\
4 years. Ratings older than 4 years are not retained in the EPF.

\(4\) When the EPF of an employee is sent to another Servicing Human
Resources Office in the employing agency, to another agency or
department, or to the National Personnel Records Center (NPRC), the
\"losing\" Servicing Human Resources Office shall include in the EPF the
three most recent ratings of record received during the preceding 4-year
period. Also, the \"losing\" office will purge from the EPF, all ratings
of records and work plans that are more than 4 years old.

§ 2060.5 [Responsibilities]{.underline}.

The following guidelines are applicable to the Under Secretary, Agency
Heads, Human Resources Offices, reviewing officials, rating officials,
employees, and union officials:

> \(a\) [Agency heads]{.underline}. The Under Secretary and Agency Heads
> are responsible for:

\(1\) Tailoring Departmental policy to meet individual needs of the
Agency.

\(2\) Assisting in resolving concerns at the lowest possible level.

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RD Instruction 2060-B

§ 2060.5 (Con.)

\(b\) [Servicing Human Resources Office]{.underline}. The Servicing
Human Resources Office is responsible for:

\(1\) Providing technical and operational support and advice to the
rating officials to help them administer the performance management
program in a manner consistent with applicable laws, rules, and
regulations.

\(2\) Ensuring that performance work plans and ratings of record are
maintained in the Servicing Human Resources Office in accordance with
the requirement of 5 CFR Parts 293 and 297.

\(3\) Providing training on the performance management program and their
responsibilities.

\(4\) Assisting in resolving concerns at the lowest possible level.

\(c\) [Reviewing Officials]{.underline}. Reviewing Officials are
responsible for:

\(1\) Reviewing and concurring in a \"Results Not Achieved\" rating.

\(2\) Resolving differences between employees and rating officials
concerning ratings and adjusting ratings when necessary.

\(3\) Assisting in resolving concerns at the lowest possible level.

\(d\) [Rating Officials]{.underline}. Rating Officials are responsible
for:

\(1\) Informing the employee of the overall mission, objectives, goals,
plans, and activities of the Agency and work unit and the employee\'s
related duties and responsibilities.

\(2\) Providing feedback to the employee through ongoing communication
and actively listening and considering feedback from the employee and
customers.

\(3\) Providing the employee the opportunity to participate in the
development of performance work plans.

\(4\) Providing the employee with written performance work plans which
identify the critical elements related to their specific duties,
responsibilities, and expected levels of performance.

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RD Instruction 2060-B

§ 2060.5(d) (Con.)

\(5\) Conducting and documenting at least one formal progress review
around the midpoint of the appraisal period and additional reviews as
necessary.

\(6\) Completing performance ratings which include evaluating and
documenting the employee\'s actual accomplishments and determining
summary levels.

\(7\) Recommending personnel actions and/or training, as necessary,
based on the employee\'s level of performance in relation to the
performance standards and elements.

\(8\) Addressing concerns at the lowest possible level.

\(e\) [Employees]{.underline}. Employees are responsible for:

\(1\) Communicating with the supervisor throughout the appraisal period.

\(2\) Participating in the development of performance work plans and
measurable performance standards.

\(3\) Assuring that they have a clear understanding of their rating
official\'s expectations and requesting clarification when necessary.

\(4\) Assisting in identifying training needs to enhance performance.

\(5\) Managing performance to achieve expectations and bringing to the
rating official\'s attention circumstances that may affect achievement
of standards.

\(6\) Participating in discussions of individual performance.

\(7\) Actively listening and considering feedback with an open mind.

\(8\) Providing input on accomplishments.

\(9\) Improving those aspects of performance identified as needing
improvement.

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RD Instruction 2060-B

§ 2060.6 [Coverage]{.underline}. Coverage of this program is clarified
as follows:

\(a\) [Federal Rural Development employees]{.underline}. All Federal
Rural Development employees who are reasonably expected to be employed
for more than 90 days.

\(b\) [Schedule C employees]{.underline}. Schedule C employees are
covered but are not afforded any rights as established by 5 USC 4303.

\(c\) [Excluded employees]{.underline}. Excluded from coverage are those
employees expected to be employed for less than 90 days; non-Federal
employees; and those persons employed in the Senior Executive Service.

§ 2060.7 [Policy]{.underline}.

It is Rural Development's policy that, within the framework provided by
this program, individual and organizational goals will be communicated
to employees, individual responsibility for accomplishing team and
organizational goals will be identified, employees will be provided
feedback regarding performance, performance will be evaluated and
improved, and performance results will be used as a basis for
appropriate personnel actions.

\(a\) [Accountability]{.underline}. All participants in this process
should expect to be held accountable for accomplishment of their
performance management responsibilities as identified in this
Instruction.

\(b\) [Communication]{.underline}. Communication between the rating
official and the employee is essential throughout this process.

\(1\) The rating official and employee should work together to jointly
clarify how competencies apply within the work environment so that there
is a common understanding about the expectations for performance.

\(2\) There should be a discussion of the goals of the individual work
unit and the employee\'s involvement/contribution to unit goals for the
upcoming year.

\(3\) The rating official is ultimately responsible for setting
performance elements and standards.

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RD Instruction 2060-B

§ 2060.8 [Planning Performance]{.underline}.

Planning performance is the process of developing performance work plans
that align individual performance with organizational goals. Focus must
be placed on accomplishments (i.e., end results) rather than on
activities. The Office of Personnel Management (OPM) developed an
eight-step method to assist organizations in developing performance
plans with this emphasis. Please reference attached Exhibit A, \"Quick
Reference for Developing Employee Performance Plans that Link to
Organizational Goals,\" which outlines this process. This reference may
be consulted when developing performance work plans.

\(a\) [Performance work plans]{.underline}. Performance work plans are
developed on\
RD Form 2060-1. Work plans document progress reviews and specify the
elements and the standards on which the employee will be rated.

\(b\) [Critical elements]{.underline}. Performance work plans under this
two-level program only contain critical elements as required by the OPM.
A performance work plan must contain at least two, but no more than
five, critical elements.

\(1\) Critical elements are work assignments or responsibilities of such
importance that unacceptable performance in the element would result in
a determination that the employee\'s overall performance is
unacceptable.

\(2\) The elements should be based on organizational goals, strategic
plans, position descriptions, and internal and external customer needs.
Whenever possible, similar positions should have like standards.

\(3\) Sources of feedback on employee performance related to a critical
element must be substantiated and documented.

\(4\) Critical elements must be based solely on the individual
performance of the employee.

\(5\) Standardized (generic) performance elements have been established
and are available for use in developing performance work plans.

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> RD Instruction 2060-B

§ 2060.8(b)(5)(Con.)

\(i\) Timeframes and appropriate procedures, when referenced in
elements, are derived directly from applicable regulatory guidelines,
procedural guides, and/or agency program instructions, etc. This is so
the standard does not become too cumbersome and lengthy.

\(ii\) When timeframes, quantity, quality, or cost-effectiveness need to
be more specific or expanded from the standards provided, this may be:

\(A\) Documented on an additional sheet and attached to the performance
plan;

\(B\) Referenced to one of the blank numbered blocks located after the
standardized elements; or if possible;

\(C\) Placed directly in the block with the element;

\(D\) Any element(s) needing additional clarification will be further
defined in writing by the rating official in one of the manners
described in (A), (B), and (C) above. A copy must be given to the
employee at the beginning of the appraisal period, along with a copy of
his or her performance work plan.

\(iii\) The employee and rating official may choose applicable elements
by placing a checkmark in the appropriate block.

\(iv\) Rating officials may also write specific performance elements in
the blank spaces provided at the end of the standardized elements.

\(v\) All employees must have at least one job-specific performance
element which may include the following:

\(A\) Supervisory responsibilities,

\(B\) The individual\'s contributions to team accomplishments,

\(C\) Execution of duties, etc., or

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RD Instruction 2060-B

§ 2060.8(b)(5)(v) (Con.)

\(D\) An element may be specifically written for this purpose in the
blank numbered bocks provided at the end of the standardized elements.

\(vi\) A mandatory EO/CR element, Element 9, is required as a
stand-alone element for all rating officials.

\(vii\) Employees who are not rating officials must also have an EO/CR
standard and this has been included with Element 10.

\(viii\) A mandatory Resources Management element, Element 11, is
required as a stand-alone element for all managers and supervisors GS-13
and above.

\(c\) [Additional performance elements]{.underline}. Additional
performance elements provide another tool for communicating performance
expectations important to the organization. However, they are not
appropriate for inclusion in the performance work plan as critical
elements and will not be used in assigning a summary level.

\(1\) Additional performance elements allow employee performance plans
to communicate a fuller picture of the performance that is expected.

\(2\) Additional elements are to be provided separately in a format best
suited for the element.

\(i\) One example is team performance objectives where overall team
accomplishments are being monitored and evaluated.

\(ii\) Only the individual contributions to the team, Element 12, can be
evaluated under the performance work plan.

\(d\) [Standards]{.underline}. Standards should focus on accomplishments
\-- results, service quality, teamwork, and customer service. Standards
should be established as follows:

\(1\) Within 30 days of the beginning of an appraisal period; or

\(2\) Within 30 days of appointment, reassignment, promotion, detail for
more than the minimum appraisal period, or when the duties of the
position are substantially changed during the established appraisal
period.

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RD Instruction 2060-B

§ 2060.8 (Con.)

\(e\) [Signature of employee and rating official]{.underline}. The
employee and rating official sign and date the performance work plan
indicating that it has been discussed and the employee has had the
opportunity to obtain a clear understanding of expectations.

\(1\) The employee is provided a copy of RD Form ­­­2060-1, and any
additional clarifying information.

\(2\) Where there is disagreement as to the content of performance
elements and standards, the rating official\'s decision prevails.

\(i\) If the employee refuses to sign the performance work plan at the
beginning of the appraisal period, the supervisor should note this in
the employee\'s signature block.

\(ii\) The date the plan was discussed with the employee and implemented
should also be noted accordingly.

\(iii\) Lack of the employee\'s signature and date on the performance
work plan does not negate implementation of the plan.

\(f\) [Employee acknowledgment]{.underline}. At the time the performance
plan is developed, the employee also indicates knowledge and
understanding of the standards of conduct (ethics regulations) and
acknowledges that questions have been answered to his/her satisfaction
by initialing the appropriate block.

\(g\) [Contents not grievable]{.underline}. The contents of performance
work plans cannot be grieved.

§ 2060.9 [Monitoring and Appraising Performance]{.underline}.

The employee and rating official will meet periodically throughout the
appraisal period to provide feedback relating to performance. This will
be accomplished through progress reviews and performance ratings.

\(a\) [Progress reviews]{.underline}.

\(1\) A progress review is a joint discussion between the rating
official and the employee regarding specific strengths and weaknesses in
relation to the employee\'s performance work plan, as well as any areas
or performance which are central to the employee\'s position. It does
not involve the issuance of a rating of record.

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RD Instruction 2060-B

§ 2060.9(a) (Con.)

\(2\) Rating officials are responsible for initiating communication with
the employee about actual performance and ensuring progress reviews are
held. Open dialog between the employee and the rating official is
crucial during these discussions.

\(3\) Progress reviews are conducted one or more times during a full
appraisal period. Normally, these required reviews will be accomplished
during the midpoint of the appraisal period.

\(4\) The rating official is encouraged to make written comments
concerning the employee\'s performance on RD Form 2060-1, at the time of
the progress review.

\(i\) The purpose of the written comments is to provide for a more
formal identification of the employee\'s performance in relation to the
performance work plan.

\(ii\) Employees are encouraged to provide written comments on the form
at this time.

\(iii\) The employee and the rating official initial and date the
appropriate blocks to indicate that the discussions were held.

\(iv\) If the progress review is still not held, the employee may seek
assistance from the second level supervisor (usually the reviewing
official.)

\(v\) The purpose of this is to encourage resolution at the lowest
possible level, make employees more responsible in their own
performance, and encourage employee involvement and participation.

\(5\) Failure to conduct a progress review may be grieved; however, the
outcome of a progress review may not be grieved as no official rating is
given.

\(b\) [Ratings of record]{.underline}.

\(1\) A rating of record is the final rating issued at the end of the
appraisal period and it becomes part of the employee\'s EPF maintained
in the Servicing Human Resources Office. A rating of \"Results
Achieved\" or \"Results Not Achieved\" is assigned to each element at
this time, as well as the overall summary rating.

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RD Instruction 2060-B

§ 2060.9(b) (Con.)

\(2\) A performance work plan must be in place for the minimum appraisal
period (90 calendar days), and normally, no longer than 15 months for a
rating of record to be conducted.

\(3\) Normally, the rating of record is issued for the appraisal period
ending September 30.

\(i\) Performance discussions and ratings will occur at the time of each
position and/or supervisory change, provided the employee has served
under standards for the minimum appraisal period. This rating must be
provided to the gaining supervisor to be considered at the time the
rating of record is issued.

\(A\) Details and Temporary Promotions. At the conclusion of a detail or
temporary promotion, the rating official to whom the employee was
detailed will document the employee\'s accomplishments and forward the
information to the employee\'s permanent supervisor. This guidance
applies to any employee detailed within USDA. When an employee is
detailed outside the Department, the permanent supervisor should make a
concerted effort to obtain information regarding the employee\'s
performance prior to completing the annual performance rating of record.

\(B\) Supervisory Change. Each individual who supervised the employee
for 90 days or more during the appraisal period should discuss the
performance with the employee, prepare feedback comments, and forward
them to the current rating official.

\(C\) Position and Supervisory Change. When an employee who has occupied
a position for at least 90 days leaves that position, the supervisor or
rating official should prepare feedback comments on the employee\'s
performance and forward them to the new supervisor/rating official.

\(D\) Position Change Without a Supervisory Change. When an employee
changes position, but retains the same supervisor (e.g., the employee
was promoted or reassigned within the same organization), the supervisor
should prepare written documentation of the employee\'s performance.
This information must be considered in the employee\'s rating of record.

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RD Instruction 2060-B

§ 2060.9(b)(3) (Con.)

\(ii\) All employees must be issued a rating of record annually.
Employees who have not served under established standards for the
minimum appraisal period must have the timeframe extended to meet this
requirement. Once the minimum appraisal period has been completed, a
rating of record must be issued.

\(4\) An overall summary rating of \"Results Achieved\" indicates that
the employee has met the performance expectations for each element.
\"Results Achieved\" performance equates to the Level 3, \"Fully
Successful,\" as specified in statute.

\(5\) An overall summary rating of \"Results Not Achieved\" means that
the employee has not met performance expectations for one or more
element(s) and constitutes unacceptable performance. \"Results Not
Achieved\" performance has the same meaning and effect as
\"Unacceptable,\" Level 1, as used in law and regulation.

\(i\) \"Results Achieved\" performance requires no written comments by
the rating official. It requires signature by only the rating official
and the employee; there is no need for the signature of the reviewing
official or anyone above the level of the rating official.

\(ii\) \"Results Not Achieved\" performance requires mandatory written
comments to be attached to the performance work plan and must be signed
by the rating official and the reviewing official prior to presenting to
the employee for signature. See § 2060.9(c) for further guidance on this
level of performance.

\(iii\) The employee\'s signature indicates receipt of the rating; it
does not represent agreement with the rating. If the employee refuses to
sign the rating of record, the rating official should note this in the
appropriate block and indicate the date the rating was issued.

\(iv\) Ratings of record may be grieved and shall be handled under the
administrative grievance procedure or applicable negotiated grievance
procedure.

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RD Instruction 2060-B

§ 2060.9 (Con.)

\(c\) ["Results Not Achieved" performance]{.underline}.

\(1\) Rating officials shall discuss and consider reasonable means by
which to assist employees in improving performance. Such assistance may
include training, closer supervision, revision of assignments, and
coaching.

\(2\) If at anytime during the appraisal period one or more element(s)
is found to be at the \"Results Not Achieved\" level, the employee
should be placed under an official OTI. The purpose of the OTI is to
provide the employee a reasonable opportunity to improve performance to
the acceptable (\"Results Achieved\") level.

\(3\) RD Form 2060-2 will be completed jointly by the rating official
and employee with the technical assistance of the Servicing Human
Resources Office. It will be signed by the rating official and the
employee indicating receipt and implementation of the plan. The
employee\'s signature is not required, however, to implement the plan.

\(4\) Components of RD Form 2060-2, will consist of the following:

\(i\) The length of time for which the plan is to be in effect. The
duration will be determined by considering:

\(A\) The type of position for which the OTI is being prepared,

\(B\) The types of improvement needed,

\(C\) The amount of reasonable time necessary to demonstrate the
acceptable performance (but no less than 60 days), and

\(ii\) The element(s) in which performance is unacceptable, specific
deficiencies, and required improvement to raise performance to the
\"Results Achieved\" level.

\(iii\) The support/assistance to be provided to the employee.

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RD Instruction 2060-B

§ 2060.9(c)(4) (Con.)

\(iv\) The frequency of follow-up reviews. In determining the frequency
of reviews, consideration should be given to the length of the OTI. Upon
completion of each follow-up review, the rating official and employee
will initial and date the appropriate block of RD Form 2060-2.

\(v\) The final review will state whether performance meets or does not
meet expectations. If it does not meet expectations, then the rating
official must provide written comments supporting this determination.
The rating official will contact the Servicing Human Resources Office to
determine further action necessary, such as reassignment, demotion, or
removal.

\(5\) Employees who improve their performance to the acceptable level
during the improvement period must sustain acceptable performance.

\(i\) Should the employee\'s performance return to the unacceptable
level in the same element(s) within 12 months from the commencement date
of the improvement period, a performance-based adverse action (i.e.,
demotion or removal) or other alternative action, such as reassignment
may be proposed without the benefit of an additional improvement period.

\(ii\) Should performance fall to the unacceptable level in a different
element(s) during this 12-month period, the employee must be given
another improvement period for that element(s).

§ 2060.10 [Linkage of Rating of Record to Other Personnel
Actions]{.underline}.

Personnel decisions are made on the basis of merit, with appropriate
consideration of employee performance. All judgments about performance
must be fair and equitable and may not be based upon non-merit factors
such as sex, race, color, national origin, religion, personal
favoritism, age, marital status, political affiliation, sexual
orientation, mental or physical disability, or other non-merit reasons.

\(a\) [Within-Grade Increases (WGI)]{.underline}. Employees may be
granted WGI\'s when the current level of performance and most recent
rating of record are \"Results Achieved.\" When a WGI decision is not
consistent with the employee\'s most recent rating of record, the rating
official should contact the Servicing Human Resources Office to
determine what further action is necessary.

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RD Instruction 2060-B

§ 2060.10 (Con.)

\(b\) [Promotions]{.underline}. No employee shall receive a promotion
unless the most current rating of record is \"Result Achieved.\" Rating
officials and employees should be aware, however, that a \"Results
Achieved\" rating is not the only criterion for promotion.

\(c\) [Training and Development]{.underline}. The performance appraisal
process may be used as a basis for identifying the training needs of
employees. Additional performance elements are particularly useful for
this purpose.

\(d\) [Reduction-in-Force (RIF)]{.underline}. Annual ratings of record
are used to establish service credit and retention standing for RIF
purposes. An employee will not be assigned a new rating of record for
the sole purpose of affecting retention standing. To provide adequate
time to properly determine an employee\'s retention standing prior to a
RIF, a general or specific RIF notice will specify the date after which
no new rating of record will be given that could be used to determine
retention standing.

\(1\) Retention Standing. According to Departmental policy (as contained
in Personnel Bulletin No. 351-1, Reduction in Force), the crediting of
performance ratings issued on or after October 1, 1997, is subject to
OPM regulations on whether all the ratings within the competitive area
were issued under a single rating pattern.

\(2\) Ratings issued under multiple (or different) rating patterns.
Where these ratings do not conform to a single rating pattern, the
following crediting plan will be used to determine the years to be
credited:

  --------- ---------- ---------------- ----------- ------------- ------------ ---------------
  Rating    No. of     Level 1          Level 2     Level 3       Level 4      Level 5
  Pattern   Summary    (Unaccept-able   (Marginal   (Fully        (Super-ior   (Outstand-ing
            Rating     or equiv.)       or equiv.)  success-ful   or equiv.)   or equiv.)
            Levels                                  or equiv.)                 

  A         2 levels   0                N/A\*       16            N/A          N/A

  B         3 levels   0                N/A         13            N/A          17

  C         3 levels   0                N/A         13            17           N/A

  D         3 levels   0                0           17            N/A          N/A

  E         4 levels   0                N/A         12            15           18

  F         4 levels   0                0           14            N/A          18

  G         4 levels   0                0           14            17           N/A

  H         5 levels   0                0           14            16           18
  --------- ---------- ---------------- ----------- ------------- ------------ ---------------

17

(07-21-04) PN 377

RD Instruction 2060-B

§ 2060.10(d) (Con.)

\*N/A means \"Not Applicable\" to this rating pattern, i.e., this level
is not used in this pattern.

The numbers represent the number of years to be credited for a rating at
that level and under that pattern.

\(3\) Ratings within the same pattern. Where all ratings within the
specified period and competitive area are in the same pattern, the OPM
provision for using the pattern of crediting

is as follows:

\(i\) 20 years of service for a Level 5 rating, 16 years service credit
for a Level 4 rating, and 12 years for a Level 3 rating will be used.

\(e\) [Quality Step Increases (QSIs)]{.underline}. QSIs may be granted
to employees who demonstrate sustained performance of high quality
significantly above that expected at the \"Results Achieved\" level.

§ 2060.11 [Program Evaluation]{.underline}.

Ongoing evaluation of the performance management program will be
conducted by Rural Development in order to identify continuous
improvement opportunities and to make adjustments to the overall policy.
Evaluation of overall organizational results, employee satisfaction, and
consistency with mission objectives will promote the continued
enhancement of a performance management program supportive of critical
organizational results.

Exhibit A, Quick Reference for Developing Employee Performance Plans
That Link to Organizational Goals

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## 18

##  

RD Instruction 2060-B

Exhibit A

Page 1

**QUICK REFERENCE**

**FOR DEVELOPING EMPLOYEE PERFORMANCE PLANS**

> **THAT LINK TO ORGANIZATIONAL GOALS**
>
> **Step 1 Look at the overall picture.**
>
> Review organizational goals and objectives and performance measures
> already available. Determine which goals and measures the employee's
> work unit can affect.
>
> **Step 2 Determine what's going to be measured at the work unit level
> using** **any or all of the** **following methods:**

**Method A *(Results-Oriented) ***Cascade the organization's mission or
goals to the work unit level. Determine the work unit's
accomplishment(s) that directly affect the organization's mission or
goals.

**Method B** ***(Results-Oriented)*** Determine the product(s) or
service(s) (i.e., the accomplishments) that the work unit supplies or
provides to its

> customers.

**Method C** ***(Process-Oriented)*** Develop a process flow chart for
the work unit. Establish key steps in the work process(es). These are
the steps that should be measured.

> **Step 3** **Develop performance elements that support work unit goals
> and mission or work processes.**
>
> Performance work plans can only include critical elements that address
> individual performance. However, one way to ensure that those
> assignments and responsibilities are linked to the organization's
> mission and goals would be to derive elements from work unit results.
> The most important aspects o unit performance (results and/or
> processes) are identified in Step 2.
>
> **Step 4** **Determine which performance elements should be critical
> elements and mark these on the performance work plan.**
>
> There is a good possibility that the element should be critical if the
> element is a major component of the work, if serious consequences
> would result if the employee performed it unacceptably, if the element
> requires a significant amount of the employee's time, or *if* there is
> a statutory or regulatory requirement related to its performance.

(07---21---04) PN 377

RD Instruction 2060---B

Exhibit A

Page 2

> **Step 5** **Develop work unit and individual measures.**

For each element or work accomplishment, determine which general
measure(s) (i.e., quantity, quality, timeliness, or cost-effectiveness)
are important. Determine how to measure the quantity, quality,
timeliness and/or cost-effectiveness for the element. If an
accomplishment can be measured with numbers, determine the *unit* of
measurement to be used. If performance can only be described (i.e.,
observed and verified), clarify who would appraise the work and what
factors they would look for.

> **Step 6 Develop work unit and individual standards.**

A *successful* standard must be established for each critical element.
Write the performance requirement(s) or expectation(s) that must be met
to be *successful.*

If the measure for the element is numeric, determine minimum number(s)
that would represent successful performance. If the measure for the
element is descriptive, determine what the rater would see or report
that would verify that performance expectations for that element had
been met and below which a performance problem would exist.

If other work accomplishments or achievements are to be tracked and
measured, it is recommended that employees be given a clear idea of the
performance expectations to help them and their work units focus on what
they are to do. Avoid absolute and backwards standards.

> **Step 7 Determine how performance will be monitored.**

Determine what data to collect for each performance element, the source
of the data, and whether all the data or just a sample should be
collected. Determine when the data should be collected, who should
collect it, and who should receive it. Review existing reports for
possible use as feedback reports. Create feedback tables or graphs where
appropriate, necessary, or desired. Try to design feedback processes
that give employees feedback automatically.

RD Instruction 2060-B

Exhibit A

Page 3

> **Step 8** **Check the performance plan to ensure that elements and
> standards are effective and meet regulatory requirements.**
>
> Are the performance expectations quantifiable, observable, and/or
> verifiable? Does failure on the element mean that the employee's
> overall performance is unacceptable? Are the standards attainable and
> challenging and are expectations reasonable? Do they allow for some
> margin of error? Can the rater manage the data collected through the
> measurement process? etc\...

oOo

(07-21-04) PN 377