[Material Transmitted:]{.underline}

HHS Instruction 430-6, Performance Management for Members of the Senior
Executive Service

[Material Superseded:]{.underline}

HHS Instruction 430-6, dated August 11, 1986 (all)

[Background:]{.underline}

This Instruction constitutes the Department\'s performance management
plan for members of the Senior Executive Service (SES), which has been
revised to significantly streamline the process and provide greater
flexibility to the Operating Divisions. The revised plan was approved by
the Office of Personnel Management on April 24, 1997.

Major changes from previous policy include replacement of a five-level
rating system with a three level system consistent with law and
regulation; elimination of noncritical elements; elimination of a
mandatory scoring system to determine performance ratings; and
elimination of the mandatory application of generic performance
standards.

Any reference to \"OPDIV\" in this Instruction includes AHCPR, CDC, FDA,
HRSA, IHS, NIH, SAMHSA, the Office of the Secretary, the Office of the
Inspector General, the Program Support Center, HCFA, ACF, and AoA.

This issuance is effective immediately. However, OPDIVs, at their
discretion, may defer implementation of the revised SES performance
management system until the Fiscal Year 1998 rating cycle.

[Filing Instructions:]{.underline}

Remove superseded material and file new material. Post receipt of this
transmittal to the HHS Check List of Transmittals and file this
transmittal in sequential order after the check list.

John J. Callahan

Assistant Secretary for

Management and Budget

INSTRUCTION 430-6

Subject: PERFORMANCE MANAGEMENT FOR MEMBERS OF THE SENIOR EXECUTIVE
SERVICE

430‑6‑00 Purpose and Authority

10 Coverage

20 References

30 Definitions

40 Basic Responsibilities

50 Performance Period

60 Planning Performance

#  70 Progress Reviews

80 Performance Appraisal/Rating Process

90 Using Results of Appraisals

100 Training

110 Recordkeeping and Record Uses

120 Monitoring and Evaluating the System

Exhibit 430‑6‑A Procedures for Non‑Standard Situations

Exhibit 430-6-B Delegation of Authority to Manage Performance for
Members of the Senior Executive Service

Exhibit 430-6-C Letter from OPM Approving HHS\' SES Performance
Management Plan

(not available on Internet versions)

430‑6‑00 PURPOSE AND AUTHORITY

A. This Instruction constitutes the Department of Health and Human
Services\' plan for appraising the performance of appointees and members
of the Senior Executive Service (SES).

B. Title 5 United States Code, Section 4312, requires that each agency
esta­blish one or more performance appraisal systems which permit the
accurate evaluation of job performance based on job-related criteria and
critical elements for the position; provide for systematic appraisals of
performance of senior executives; encourage excellence in performance;
and provide a basis for making determinations for retention of
executives in the SES and for performance awards.

C. The SES performance appraisal system in the Department is part of the
broader, overall administration of the performance management process.
The purposes of this system are:

o communicating and monitoring organizational goals, objectives, and
accomplishments; ­

o linking individual accountability for achievement to organizational
goals;

> o evaluating individual performance in relation to goal achievement;
> and
>
> o providing a basis for making personnel decisions.

430‑6‑10 COVERAGE

This Instruction covers all HHS SES appointees. For the purpose of this
instruction the term Operating Divisions (OPDIVs) includes the Office of
the Secretary (OS) and the term OPDIV Head includes a designated
official for OS.

430‑6‑20 REFERENCES

A. 5 U.S.C. 4311-4314

B. 5 C.F.R. Part 430, Subpart C

C. 5 C.F.R. Part 451

D. 5 C.F.R. Part 534, Subpart D

E. HHS Personnel Instruction 920-1

430‑6‑30 DEFINITIONS

A. Appointing authority: the agency or department head or his or her
designee. For HHS SES performance appraisal purposes it means OPDIV
Heads.

B. Appraisal: the act or process of reviewing and evaluating the
performance of the executive against the described performance
standard(s).

C. Critical element: a component of a position consisting of one or more
responsibilities which contribute toward accomplishing organizational
goals and objectives and which is of such importance that unsatisfactory
performance of the element would result in unsatisfactory performance in
the position.

D. Executive: a member of the Senior Executive Service who may also be
referred to as an appointee, a member, a senior executive, or an SESer.

E. Final rating: the written rating of record made on an annual basis by
an appointing authority after considering the recommendations of a
Performance Review Board.

F. Generic standard: a written performance standard based on uniform
criteria common to the executive assignments to which it applies.

G. Initial rating: the summary rating made by the senior executive\'s
supervising official and provided to the Performance Review Board.

H. Performance: the senior executive\'s accomplishment of assigned work
as specified in the critical elements of the executive\'s position.

I. Performance plan: the aggregate of the senior executive\'s written
critical elements and performance standard(s).

J. Performance standard: a written statement of the expectations or
requirements established by management for a critical element at a
particular rating level. A performance standard may include, but is not
limited to, factors such as quality, quantity, cost efficiency,
timeliness, and manner of performance.

K. Progress review: a review of the executive\'s progress toward
achieving the performance standards which is not in itself a rating.

L. Rating official: the initial rater of the executive\'s performance,
generally his/her immediate supervisor.

M. Rating of record: the final rating for a specific period.

N. Reviewing official: an appropriate official, often the next level
above the immediate supervisor, who will review an appraisal at the
request of an executive being rated.

O. Summary rating: the assignment of an evaluation which assesses the
overall performance of an executive.

430‑6‑40 BASIC RESPONSIBILITIES

A. The Deputy Assistant Secretary for Human Resources shall:

1\. develop policy governing appraisal systems established within the
Department;

2\. provide guidance and advice to the OPDIVs concerning those policies;
and

3\. evaluate, in concert with the OPDIVs, the effectiveness of the
appraisal systems.

B. The Heads of OPDIVs shall:

1\. establish appraisal systems to be operated within their
organizations;

2\. develop procedures to efficiently and effectively implement and
administer appraisal systems;

3\. provide training for executives on the purpose, procedures and
techniques of the performance management process;

4\. integrate the performance management process into the overall
management systems of the organization;

5\. provide positive, timely reinforcement to those executives who are
effective in managing employees\' performance and who deal effectively
with employees who meet performance standards and with those who do not;

6\. monitor and evaluate performance appraisal systems as they are
administered, taking appropriate action to ensure changes where needed;

7\. establish one or more Performance Review Boards (PRBs), select
members to serve on PRBs, appoint a chairperson for each PRB, and assure
that the PRB operates efficiently.

8\. review appraisal documents and PRB recommendations and assign final
ratings.

C. First‑level supervisors of executives shall:

1\. consult with executives and develop individual performance plans for
each executive;

2\. conduct progress reviews to identify progress and problems, and
maintain whatever records are necessary to document performance status;

3\. appraise performance of executives, recommend summary ratings,
discuss results, and furnish appraisals to the PRB for its necessary
action;

4\. propose appropriate action for executives whose performance is less
than fully successful; and

5\. propose appropriate recognition for those whose performance is
worthy.

D. Reviewing officials shall:

1\. approve changes to critical elements in performance plans in the
last 120 days of the performance period;

2\. review initial appraisal upon request of an executive;

3\. prepare written response to the appraisal for review by the PRB if
one is requested by the executive;

4\. review initial ratings if an OPDIV Head requires a mandatory higher
level review of all initial ratings.

E. Performance Review Boards:

1\. must have three or more members, with notice of appointment
published in the [Federal Register]{.underline};

2\. for purposes of appraising career executives, must have membership
that includes more than one-half SES career appointees;

3\. may conduct a front‑end review of SES performance plans at the
beginning of the performance period to assure that they are clear,
results-oriented and equitable and focus on attainable goals, and they
may negotiate or direct changes believed appropriate;

4\. must review all SES appraisals for reasonableness and equity,
recommend final ratings in writing, and recommend bonuses to the
appointing authority for non‑PRB member executives. PRB members may not
take part in any deliberations involving their own appraisal.

430‑6‑50 PERFORMANCE PERIOD

A. In HHS, the minimum appraisal period for the SES is 120 days. A
written rating of record will be made on an annual basis.

B. The standard HHS SES performance appraisal cycle is based on the
fiscal year. An individual performance period begins when the executive
is given a written performance plan signed and dated by the supervisor.
Normally the plan will be put into effect within 30 days of the
beginning of the appraisal cycle or within 30 days of entering an SES
position, and will be provided to the executive in writing.

C. Appraisals will not be prepared for executives within 120 days after
the beginning of a new Presidential administration.

D. Appraisals will not be prepared for executives who have not served
under a performance plan for at least 120 days. If an executive cannot
be rated for this reason and has no other rating of record for the
­current appraisal period, the rating period will be extended for as long
as necessary to meet the minimum appraisal period at which time a rating
will be prepared.

430‑6‑60 PLANNING PERFORMANCE

A. Each performance plan must be developed in consultation with the
executive and will:

1\. recognize responsibilities assigned to the individual executive for
Administration, Secretarial and organizational goals and objectives;

2\. be consistent with the duties covered in the executive\'s position
description for which the executive can be held accountable;

3\. contain only critical elements covering key aspects of the job.
Noncritical elements will not be used in this Department\'s SES
appraisal system.

4\. describe, for each critical element, the standard by which fully
successful performance will be measured. Standards must be
outcome-oriented and should, to the extent possible or appropriate,
include indicators of quality, quantity, cost effectiveness, timeliness,
and manner of performance. OPDIVs, at their discretion, may develop and
use generic performance standards for their senior executives.

B. The following steps are to be taken to execute or change a plan:

1\. Both the supervisor and executive will sign and keep a copy of the
final plan. (If an executive does not wish to sign, the supervisor
should note this on the plan and indicate that the executive was given a
copy. This statement must be signed and dated by the supervisor.)

2\. SES level performance plans may be reviewed by the PRB and necessary
changes negotiated with the supervisor, or by direction of the PRB.

3\. Changes made to elements and standards at any time during the
performance period must be initialed and dated by the supervisor and
executive. Any changes to the plan during the last 120 days must be
approved (initialed and dated) by the reviewing official.

430‑6‑70 PROGRESS REVIEWS

A. Whenever warranted, but at least once in the appraisal period, each
supervisor and executive will meet to review progress formally. The
supervisor will:

1\. Provide written documentation if performance progress on an element
is less than fully successful. Documentation must show progress,
deficiencies, steps taken or needed to bring performance to fully
successful.

2\. Discuss with the executive and document all changes to performance
elements and standards.

B. Both the supervisor and executive will sign and keep a copy of the
progress review. (See 430-6-60 B.1 if the executive does not wish to
sign.)

430‑6‑80 PERFORMANCE APPRAISAL/RATING PROCESS

A. Each executive\'s performance will be appraised by the rating
official at least annually based on a comparison of actual performance
with the written critical elements and performance standards that
constitute the performance plan.

B. The rating assigned to each critical element will be based upon the
extent to which the executive\'s performance met one of the following
rating level definitions. The rating levels established for use in HHS
are the three rating levels required by statute and regulation:

Fully Successful: Expectations are met or exceeded

Minimally Satisfactory: Performance is marginally acceptable; needs
improvement

Unsatisfactory: Undeniably unacceptable performance

C. A written performance standard is required at the Fully Successful
level.

D. Appraisal of the executive will take into account individual as well
as organizational performance and the impact of individual and
organizational performance on the accomplishment of agency objectives.

E. Regardless of performance on other elements, a summary rating of
Unsatisfactory will apply to any employee who is rated unsatisfactory on
any one critical element. If the executive is rated minimally
satisfactory on any critical element, the summary rating will be no
higher than Minimally Satisfactory.

F. Both supervisor and executive will sign and keep copies of the
initial appraisal and its associated performance plan. (See
430-6-60-B.1. if the executive does not wish to sign.)

G. An executive who disagrees with his/her initial appraisal and wishes
to seek redress must respond in writing to disputed statements and
findings in the appraisal and have the initial appraisal and his/her
response reviewed by the reviewing official. If an executive reports
directly to the Secretary or an OPDIV Head, the executive cannot request
a higher level review. A copy of the response of the reviewing official
must be given to the executive, the manager who rated the executive, and
the PRB.

H. The PRB will consider the initial appraisal, the executive\'s
response, if any, the reviewing official\'s written response, if any,
and whatever other inputs it believes would be beneficial to full
understanding of relevant issues in recommending a final appraisal to
the appointing authority.

I. The appointing authority must consider the recommendation of the PRB
in assigning the final rating for each executive.

430‑6‑90 USING RESULTS OF APPRAISALS

A. Actions Based On Fully Successful Performance

1\. SES Performance Awards (Bonuses)

Executives whose performance is rated as fully successful are eligible
to be considered for an SES bonus. Individual appraisal results and the
extent of the executive\'s contributions to meeting organizational goals
constitute the primary factors considered by the Performance Review
Boards when proposing bonus nominees.

2\. SES Pay Adjustments

Performance appraisal results are among the key factors considered in
the annual review to determine the appropriateness of upward or downward
adjustment of SES pay rates.

3\. Presidential Executive Rank Awards

The selection of nominees for Presidential Executive Rank Awards is
based on records of performance over multiple year periods.

4\. Incentive Awards

Authority to grant special act or service awards may not be used for
granting cash awards based on sustained superior performance, i.e., such
awards are not to be substituted for performance or rank awards.

B. Actions Based on Less than Fully Successful Performance

1\. Minimally Satisfactory Performance

a\. During the Appraisal Period

If performance on one or more critical elements is determined to be
minimally satisfactory, that determination must be documented following
a progress review and written notification of such findings provided to
the executive. The documentation must include identification of the
critical element(s) and performance standard(s) involved, and a
narrative description of the performance in comparison to the
standard(s). Additionally, assistance to enable the executive to raise
the performance to the fully successful level must be provided. Such
assistance may include but is not limited to formal training, on‑the‑job
training, counseling and closer supervision. The assistance to be
provided must be summarized on the progress review form.

b\. At the End of the Appraisal Period

If performance on one or more critical elements continues to be rated at
the minimally satisfactory level, consideration must be given to a
reassignment action.

If an executive whose performance was found to be fully successful on
the progress review is rated minimally satisfactory on the final
appraisal, the executive must be given assistance in the subsequent
appraisal period to raise his/her performance to fully successful.
Documentation and assistance as described in B.1.a. above apply.

2\. Unsatisfactory Performance

a\. During Appraisal Period

If performance on one or more critical elements is determined to be
unsatisfactory, that determination must be documented and assistance
provided as described in B.1.a. above.

b\. At the End of the Appraisal Period

If performance on one or more critical elements is determined to be
unsatisfactory, that determination must be documented and the executive
must be reassigned or transferred within the SES or removed from the
SES.

3\. Any executive who receives two unsatisfactory ratings of record in
any five year period must be removed from the SES.

4\. Any executive who twice in any three year period receives less than
a fully successful rating must be removed from the SES.

5\. Downward Pay Adjustment

The pay of any executive whose performance is rated less than fully
successful should be reviewed and considered for a downward adjustment.

430‑6‑100 TRAINING

Training in developing performance plans, conducting progress reviews,
making appraisals and using appraisals as a key factor in making other
management decisions will be provided by OPDIVs to executives covered by
this Instruction and to senior staff who manage the executives. Training
will be designed to assure that the performance management process
operates effectively. Specific training requirements will be established
by OPDIVs.

430‑6‑110 RECORDKEEPING AND RECORD USES

A. As part of monitoring performance, supervisors may make notes on
significant instances of performance so that the instances will not be
forgotten. Such notes will not be required by or under the control of
the Department or any of its components. Such notes are not subject to
the Privacy Act or accessible under the Freedom of Information Act as
long as they remain solely for the personal use of the supervisor, are
not provided to any other person, are not used for any other purposes,
and are retained or discarded at the supervisor\'s sole discretion.
NOTE: If the supervisor bases a performance appraisal in part or in full
on specific information from such notes, then that information will be
recorded on or attached to the official appraisal form. Information on
or attached to the form will be subject to the Privacy Act.

B. The retention, maintenance, accessibility, and disposal of
performance records as well as supervisors\' copies will be in
accordance with Office of Personnel Management regulations. Performance
records must be retained for five years and transferred with the
executive\'s Official Personnel Folder when the executive transfers to a
new organization in HHS or to another agency.

430‑6‑120 MONITORING AND EVALUATING THE SYSTEM

A. The Office of the Assistant Secretary for Management and Budget,
Office of Human Resources, has responsibility for the ongoing review of
the operation of performance management throughout the Department and
for implementing program improvements.

B.  OPDIVs, in assessing the effectiveness of their overall executive
    resource management programs (see HHS Personnel Instruction 920-1),
    should consider the extent to which the SES performance management
    system is contributing to program objectives. System improvement
    efforts should be instituted as necessary within the framework of
    Department requirements.

PROCEDURES FOR NON‑STANDARD SITUATIONS

The following procedures apply for performance plans, performance
ratings and ratings of record in non-standard situations.

+-----------------------+-----------------------+-----------------------+
| Situation             | Performance Plan      | Performance Rating(s) |
|                       |                       | and Rating of Record  |
+-----------------------+-----------------------+-----------------------+
| For whatever reason,  | Establish plan        | Extend appraisal      |
| executive did not     | immediately           | period for the amount |
| have a plan at any    |                       | of time necessary to  |
| time during the       |                       | meet the 120 day      |
| entire period, or did |                       | minimum               |
| not perform against a |                       |                       |
| plan for 120 days.    |                       |                       |
| For example, a member |                       |                       |
| returning from long   |                       |                       |
| term training.        |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Executive changes SES | Establish plan for    | At time of each       |
| positions within HHS  | each new position     | position change, rate |
| during the appraisal  | even if less than 120 | based on plan if it   |
| period                | days remain in the    | had been in effect    |
|                       | appraisal period      | for at least 120      |
|                       |                       | days. Rating of       |
|                       |                       | record for the        |
|                       |                       | appraisal period must |
|                       |                       | consider all ratings  |
|                       |                       | made during that      |
|                       |                       | period.               |
+-----------------------+-----------------------+-----------------------+
| Employee moves from   | Continue on existing  | Executive should be   |
| GS to SES in          | plan under SES        | rated                 |
| essentially the same  |                       |                       |
| position within 120   |                       |                       |
| days of end of        |                       |                       |
| appraisal period and  |                       |                       |
| had plan in effect    |                       |                       |
| for 120 days          |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Within 120 days of    | Establish a plan to   | If employee had a     |
| the end of the        | cover the minimum     | plan in SES for at    |
| appraisal period, for | rating period for the | least 120 days, rate  |
| reasons not related   | new position          | when removed from     |
| to performance, the   |                       | SES. Rate again at    |
| employee is removed   |                       | end of minimum rating |
| from the SES and      |                       | period for new        |
| placed in a position  |                       | position. Consider    |
| covered by the EPMS.  |                       | both ratings to       |
|                       |                       | derive rating of      |
|                       |                       | record.               |
+-----------------------+-----------------------+-----------------------+
|                       |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Situation             | Performance Plan      | Performance Rating(s) |
|                       |                       | and Rating of Record  |
+-----------------------+-----------------------+-----------------------+
| Within 120 days of    | Establish a plan for  | Rate at time of       |
| the end of the        | the new position      | reassignment if an    |
| appraisal period, for |                       | SES plan was in place |
| reasons not related   |                       | for at least 120 days |
| to performance, the   |                       | in the old position,  |
| executive is          |                       | and use as rating of  |
| reassigned from one   |                       | record for the        |
| SES position to       |                       | appraisal period,     |
| another               |                       | unless there was      |
|                       |                       | another rating        |
|                       |                       | earlier in the period |
|                       |                       | which must be         |
|                       |                       | considered            |
|                       |                       |                       |
|                       |                       | -or-                  |
|                       |                       |                       |
|                       |                       | If executive cannot   |
|                       |                       | be rated in former    |
|                       |                       | position because      |
|                       |                       | he/she was not under  |
|                       |                       | a plan for at least   |
|                       |                       | 120 days, extend the  |
|                       |                       | period until 120 days |
|                       |                       | are reached, then     |
|                       |                       | rate based on plan    |
|                       |                       | for that period. This |
|                       |                       | rating is then the    |
|                       |                       | rating of record      |
+-----------------------+-----------------------+-----------------------+
| Executive is detailed | Establish plan for    | Rate at time of       |
| or temporarily        | new position no later | position change if a  |
| assigned to another   | than 30 days after    | plan had been in      |
| SES position in HHS,  | the assignment begins | place for at least    |
| and the time in that  |                       | 120 days. Also rate   |
| position is expected  |                       | at end of temporary   |
| to be at least 120    |                       | assignment if time in |
| days by the end of    |                       | it lasted at least    |
| the appraisal period  |                       | 120 days. Consider    |
|                       |                       | all ratings made      |
|                       |                       | during the appraisal  |
|                       |                       | period in preparing   |
|                       |                       | the rating of record  |
|                       |                       | for that period.      |
+-----------------------+-----------------------+-----------------------+
| Before the end of the | N/A                   | Rate at time          |
| appraisal period,     |                       | executive goes on     |
| executive goes on     |                       | training based on     |
| long-term training    |                       | earlier plan if it    |
| and does not return   |                       | had been in effect    |
| by the end of the     |                       | for at least 120      |
| appraisal period      |                       | days. If not,         |
|                       |                       | employee is unratable |
|                       |                       | for the appraisal     |
|                       |                       | period.               |
+-----------------------+-----------------------+-----------------------+
| Situation             | Performance Plan      | Performance Rating(s) |
|                       |                       | and Rating of Record  |
+-----------------------+-----------------------+-----------------------+
| Within 120 days of    | Establish plan to     | Extend appraisal      |
| the end of the        | cover 120 days for    | period until 120 days |
| appraisal period,     | the position          | are reached, then     |
| executive is          |                       | rate based on the     |
| reinstated from       |                       | plan for that period. |
| outside government to |                       | This is the rating of |
| an SES position or    |                       | record                |
| appointed to an SES   |                       |                       |
| position in HHS from  |                       |                       |
| another Federal       |                       |                       |
| agency                |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Executive transfers   | Establish plan to     | Obtain summary rating |
| from an SES position  | cover remainder of    | transferred from      |
| in another agency     | appraisal period      | former agency. This   |
| with an approved      |                       | is the rating of      |
| performance appraisal |                       | record if the         |
| system to an SES      |                       | transfer occurred     |
| position in HHS       |                       | within the last 120   |
|                       |                       | days.                 |
|                       |                       |                       |
|                       |                       | If 120 days or more   |
|                       |                       | remain in the         |
|                       |                       | appraisal period, the |
|                       |                       | transferred rating    |
|                       |                       | must be considered    |
|                       |                       | along with the rating |
|                       |                       | based on the plan for |
|                       |                       | the new position when |
|                       |                       | deriving the rating   |
|                       |                       | of record.            |
|                       |                       |                       |
|                       |                       | If the transfer       |
|                       |                       | occurred within the   |
|                       |                       | last 120 days and no  |
|                       |                       | rating transferred,   |
|                       |                       | extend the appraisal  |
|                       |                       | period until 120 days |
|                       |                       | are reached, then     |
|                       |                       | rate based on the     |
|                       |                       | plan for that period. |
|                       |                       | This is the rating of |
|                       |                       | record                |
+-----------------------+-----------------------+-----------------------+
| Executive transfers   | N/A                   | Rate executive and    |
| to a new agency after |                       | transfer current      |
| serving under a plan  |                       | performance ratings   |
| for at least 120 days |                       | of record for         |
|                       |                       | consideration by new  |
|                       |                       | agency.               |
+-----------------------+-----------------------+-----------------------+

+-----------------------+-----------------------+-----------------------+
| Situation             | Performance Plan      | Performance Rating(s) |
|                       |                       | and Rating of Record  |
+-----------------------+-----------------------+-----------------------+
| Employee is detailed  | Make reasonable       | Rate at time of       |
| or assigned outside   | effort to see that a  | position change if a  |
| HHS (e.g., IPA        | plan is given the     | plan had been in      |
| assignment) and the   | employee while in the | effect for at least   |
| time in the outside   | outside entity        | 120 days.             |
| organization or       |                       |                       |
| agency is expected to |                       | Also make a           |
| be at least 120 days  |                       | reasonable effort to  |
|                       |                       | obtain performance    |
|                       |                       | information and rate  |
|                       |                       | taking into           |
|                       |                       | consideration the     |
|                       |                       | plan from that        |
|                       |                       | outside assignment,   |
|                       |                       | especially if         |
|                       |                       | employee did not have |
|                       |                       | any HHS plan for at   |
|                       |                       | least 120 days during |
|                       |                       | the appraisal period, |
|                       |                       | but did serve in the  |
|                       |                       | outside organization  |
|                       |                       | for its minimum       |
|                       |                       | appraisal period (if  |
|                       |                       | applicable).          |
|                       |                       |                       |
|                       |                       | Consider all ratings  |
|                       |                       | made during the       |
|                       |                       | appraisal period in   |
|                       |                       | preparing the rating  |
|                       |                       | of record.            |
+-----------------------+-----------------------+-----------------------+
| Before the end of the | If within HHS,        | Rate at time of       |
| appraisal period,     | establish a           | position change if    |
| executive is detailed | performance plan to   | employee had a plan   |
| to a non-SES position | cover detail. If      | for at least 120      |
| in HHS or another     | outside HHS, make     | days.                 |
| Federal agency        | reasonable effort to  |                       |
|                       | see that an           | If within HHS, also   |
|                       | appropriate plan is   | rate at end of detail |
|                       | given the employee    | if time in it lasted  |
|                       | while in the outside  | at least 120 days. If |
|                       | agency.               | outside HHS, attempt  |
|                       |                       | to get rating         |
|                       |                       | information.          |
|                       |                       |                       |
|                       |                       | Consider all ratings  |
|                       |                       | during the appraisal  |
|                       |                       | period in preparing   |
|                       |                       | the rating of record. |
+-----------------------+-----------------------+-----------------------+

MEMORANDUM TO: Heads of Operating Divisions

The Inspector General

Subject: Delegation of Authority to Manage Performance for Members of
the Senior Executive Service

A. [Delegation of Authority]{.underline}: I hereby delegate the
following authorities to Heads of Operating Divisions and the Inspector
General:

1\. the authority to implement performance appraisal systems for Senior
Executive Service (SES) members within their organizations;

2\. the authority to finalize performance ratings for those SES members;
and,

3\. the authority to appoint members and chairs of Performance Review
Boards.

These authorities may be redelegated. All redelegations must be in
writing.

B. [Guidance]{.underline}: This authority is subject to the conditions
and guidelines outlined in HHS Personnel Instruction 430-6, which
constitutes the Department\'s Senior Executive Service performance
management plan as approved by the Office of Personnel Management.

C. [Authority Superseded:]{.underline} This delegation supersedes a
delegation memorandum from the then Assistant Secretary for Personnel
Administration dated August 11, 1986, entitled \"Delegation of Authority
for Managing Performance of Members of the Senior Executive Service.\"
Existing redelegations made under that memorandum will continue in
effect until new redelegations are made under the authority of this
memorandum.

D. [Effective Date:]{.underline} This delegation is effective upon date
of signature.

John J. Callahan

Assistant Secretary for

Management and Budget