**UNITED STATES DEPARTMENT OF AGRICULTURE**

Farm Service Agency

Washington, DC 20250

**For:** RMA Employees

**RMA's Performance Management Program**

**Approved by:** Deputy Administrator, Management

![](media/image1.png){width="2.7993055555555557in"
height="0.6993055555555555in"}

**1 Overview**

**A Background**

> In 1993, the Government Performance and Results Act established the
> idea of strategic planning and performance measurement in the Federal
> government. Building on this, the President's Management Agenda,
> issued in 2002, focused on improving government performance and budget
> and performance integration. Also in 2002, Congress passed the Chief
> Human Capital Officer's Act that requires OPM to design a set of
> systems for assessing the management of human capital by Federal
> agencies. This requirement resulted in the development of the Human
> Capital Assessment and Accountability Framework (HCAAF). A key
> implementing system of HCAAF is a results-oriented performance
> culture. According to OPM, a performance management program must
> effectively differentiate between high and low performance and develop
> employee performance plans that are aligned with and support
> organizational goals.
>
> **Note:** Performance plans are documented on AD-435A and AD-435B.
>
> During FY 2005, when RMA was under a pass/fail performance management
> program, all employees, starting with senior managers, developed and
> implemented new AD-435A's and AD‑435B's that aligned with and
> supported RMA's mission and goals. During FY 2006, RMA implemented a
> new, 5-tiered performance management program that effectively
> differentiated between high and low performance.
>
> It is RMA's policy to maintain a performance management program for
> improving individual and organizational effectiveness in accomplishing
> RMA's mission and goals. Beginning with the FY 2008 appraisal period,
> RMA will implement a performance management program that builds on our
> former program, and develops and maintains a results-oriented
> performance culture in RMA.

B Purpose

This notice announces RMA's FY 2008 performance management program.

+----------------------------+-----------------------------------------+
| Disposal Date              | Distribution                            |
|                            |                                         |
| October 1, 2008            | All RMA employees.                      |
+----------------------------+-----------------------------------------+

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**1 Overview (Continued)**

**C Authorities**

> RMA's performance management program is based on the following:

-   5 U.S.C. Chapter 43

-   5 CFR Part 430

-   USDA Performance Management DR 4040-430.

**D Coverage**

> RMA's performance management program applies to all RMA employees
> nationwide, except for:

-   individuals in the Senior Executive Service (SES), and Senior-Level,
    and Scientific or Professional employees

-   individuals for which employment is not reasonably expected to
    exceed the minimum appraisal period (90 calendar days) in a
    consecutive 12-month period

> **Note:** Temporary intermittent employees would only be subject to
> the performance management system if they actually work a continuous
> 90-calendar day period regardless of the length of their appointment.

-   individuals excluded from coverage by statute or by OPM regulation.

**E Effective Date**

> RMA's FY 2008 performance management program is effective October 1,
> 2007.
>
> **F Action**
>
> All supervisors shall ensure that all of their employee's AD-435A's
> and AD‑435B's comply with the provisions of this notice. Any changes
> that need to be made to bring an employee's AD‑435A's and AD‑435B's
> into compliance with this notice shall be completed no later than
> **October 30, 2007**.

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**2 Responsibilities**

**A Administrator Responsibilities**

> The Administrator is responsible for the following:

-   monitoring program compliance with applicable laws and regulations,
    Department policies, and collective bargaining agreements

-   ensuring program compliance with policy and program direction and
    administration

-   developing and communicating FSA's mission, strategic goals, and
    objectives to all levels, to assist supervisors and managers in
    developing employee AD-435A's and AD‑435B's.

**B Rating Official Responsibilities**

Rating officials are responsible for the following:

-   determining and communicating the appropriate RMA and USDA mission,
    goals, objectives, priorities, and relative performance measures and
    results to employees

-   communicating performance expectations clearly and holding employees
    responsible by establishing individual AD-435A's and AD‑435B's and
    creating a performance culture and environment that promotes a high
    performing work unit

-   engaging employees in the process of establishing and documenting
    AD-435A's and AD‑435B's, providing a written copy of AD-435A's and
    AD‑435B's at the beginning of each appraisal period or no later than
    30 calendar days after the beginning of each appraisal period or
    assignment of an employee to a position, or when AD-435A's and
    AD‑435B's are revised during the appraisal period

-   ensuring that each employee's AD-435A's and AD‑435B's have at least
    1 critical element that is aligned to the mission, goals, and
    outcomes of RMA and USDA

-   monitoring performance during the rating period and providing
    feedback to employees on their performance, developing employees,
    and conducting 1 or more progress reviews as provided for in this
    notice

-   preparing performance ratings in a timely manner, making meaningful
    distinctions among employees based on performance, and fostering and
    rewarding excellent performance and addressing poor performance.

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**2 Responsibilities (Continued)**

**C Reviewing Official Responsibilities**

Reviewing officials are responsible for the following:

-   managing individual and organizational performance and creating a
    work culture and environment that promotes a high-performing work
    unit

-   implementing the principles, policies, procedures, and requirements
    of the performance management program within their span of control

-   ensuring that rating officials carry out their performance
    management responsibilities and assessing the rating official's
    performance in fulfilling these responsibilities

-   reviewing and approving AD-435A's and AD‑435B's and ratings of their
    subordinate rating officials for consistency, fairness, objectivity,
    and completeness; and to ensure that AD‑435A's and AD‑435B's reflect
    the larger organization's overall needs and goals

-   ensuring equity and consistency in consideration for awards within
    their organization

-   resolving disagreements between the rating officials and employees.

> **Note:** In all discussions, the reviewing official shall make the
> final decision.

**D Employee Responsibilities**

Employees are responsible for the following:

-   participating in discussions and documentation of their AD-435A's
    and AD‑435B's, with their rating official for developing performance
    elements, standards and measures; progress reviews; and summary
    ratings

-   ensuring that they have a clear understanding of their performance
    expectations and how performance relates to the mission of the
    organization, and requesting clarification if necessary

-   taking responsibility to continuously improve performance, support
    team endeavors, develop professionally, and perform at their full
    potential

-   identifying work problems and cooperating with rating officials to
    resolve them

-   seeking performance feedback from their rating official and internal
    and external customers as appropriate.

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**2 Responsibilities (Continued)**

**E FSA's HRD Director Responsibilities**

FSA's HRD Director is responsible for the following:

-   overseeing the performance management program and its results

-   periodically evaluating the effectiveness and efficiency of the
    performance management program.

**F Servicing Personnel Office (SPO's)**

> SPO's are responsible for the following:

-   providing technical and operational support and advice to the rating
    and reviewing officials in administering the performance management
    program in a manner consistent with applicable laws, rules, and
    regulations

-   ensuring that AD-435A's and AD‑435B's and ratings of record are
    maintained in SPO according to 5 CFR Parts 293 and 297

-   providing training on the performance management program to all
    employees.

3 Establishing AD-435A's and AD‑435B's

> **A Appraisal Period and Documentation**

> The appraisal period starts October 1 of each year and ends September
> 30 of the following year.
>
> AD-435A's and AD‑435B's should be:

-   established within 30 calendar days of the start of the appraisal
    period or of an employee's assignment to a position

-   reviewed and, if necessary, amended, each time a work assignment
    changes significantly, up to 90 calendar days before the end of the
    appraisal period.

> Employees **must** be informed of and participate in any changes made
> to their AD-435A's and AD-435B's.
>
> **Note:** AD-435A and AD-435B are available from the FFAS Employee
> Forms Online web site at
> [**http://165.221.16.90/dam/ffasforms/currentforms.asp**](http://165.221.16.90/dam/ffasforms/currentforms.asp).

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3 Establishing AD-435A's and AD‑435B's (Continued)

> B Employee Participation
>
> Employee participation is **required** in establishing or revising
> AD-435A's and AD‑435B's. This can be accomplished by whatever method
> works best for the parties concerned.
>
> **Example:** The supervisor could ask the employee to develop draft
> AD-435A and AD‑435B's for discussion or the supervisor himself/herself
> could develop draft AD‑435A and AD‑435B's for discussion. If there are
> differences between the employee and the supervisor, the final
> decision shall be made by the reviewing official.

4 Elements

> A Basis
>
> The basis for elements are the requirements of the employee's
> position. Applicable sources for developing elements include position
> descriptions, work plans, organizational goals and objectives, and any
> other source that assigns or fixes responsibility for accomplishing
> work.
>
> B Number of Elements
>
> Supervisors shall establish at least 3 but no more than 7 performance
> elements. See Exhibit 1 for a list of elements from which the 3 to 7
> elements can be selected. Other job specific elements may be created,
> if necessary, in addition to those elements listed in Exhibit 1.
>
> C Critical and Noncritical Elements
>
> Supervisors shall determine what elements shall be critical and
> noncritical. Critical elements cover duties that are essential to the
> successful performance of the position. Elements aligned with RMA's
> mission and goals, and, for supervisors and managers, the elements
> titled, "Supervisory Equal Opportunity and Civil Rights" and
> "Supervision", must be critical. At least 1 element must be critical
> and 1 element must be noncritical. On the summary rating:

-   critical elements will be scored as 2 points

-   noncritical elements will be scored as 1 point.

> D Required Elements
>
> The following critical elements in Exhibit 1 are mandatory for all
> supervisors and managers:

-   "Supervision"

-   "Customer Service"

-   "Supervisory Equal Opportunity and Civil Rights".

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4 Elements (Continued)

E Equal Opportunity and Civil Rights (EO/CR) and Customer Service (CS)
Elements for

Nonsupervisors

> Separate EO/CR and CS elements are **not** required for
> nonsupervisors. The elements may be kept separate or built into other
> critical elements. If the supervisor decides that there will **not**
> be separate EO/CR and CS elements, the following EO/CR and CS language
> **must** be built into the element description piece of another
> critical element.
>
> For EO/CR:
>
> "Performs all duties in a manner which consistently demonstrates
> fairness, cooperation, and respect toward coworkers, office visitors,
> and all others in the performance of official business. Demonstrates
> an awareness of Equal Opportunity and Civil Rights policies and
> responsibilities of RMA and Departmental goals of valuing a diverse,
> yet unified workforce."
>
> For CS:
>
> "Routinely displays courteous and tactful behavior. Projects a
> positive and professional
>
> image of USDA. Provides advice that is timely, responsive and
> accurate. Maintains
>
> appropriate rapport with internal and external customers. Develops and
> establishes
>
> working relationships with external organizations as required. Keeps
> supervisor and/or
>
> team leader informed of difficult and/or controversial issues and
> unique problems. Takes
>
> action to effectively solve problems before they have an adverse
> impact on the
>
> organization or other employees."
>
> Supervisors will choose the appropriate element and develop at least 1
> standard to address the EO/CR component and at least 1 standard to
> address the CS component.
>
> **Note:** If the EO/CR or CS elements are kept separate, they **must**
> be critical.

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5 Standards

> A Basics
>
> For each element selected, there must be at least 3 written standards
> for measuring performance of the element. Standards must be
> observable, measurable, and attainable by the employee. Standards need
> only be written at the "Meets Fully Successful" level in AD‑435.
> However, rating officials should be prepared to explain performance at
> the "Does Not Meet Fully Successful" and "Exceeds Fully Successful"
> levels. Do not include phrases like "other duties as assigned".
>
> B Performance Management Standard
>
> All employees with the "Supervision" element shall have the following
> standard in the "Supervision" element:
>
> "Employee performance plans focus on results achieved, contain at
> least one element that is aligned with RMA and USDA mission, goals,
> and objectives, and are in place within 30 calendar days of the
> beginning of the appraisal period. Mid-year reviews are conducted
> according to Agency guidelines. Ratings are accurate and issued within
> 30 calendar days of the end of the appraisal period."
>
> C Customer and Employee Perspective Standard
>
> AD-435A's and AD-435B's for supervisors and managers must take into
> consideration customer and employee perspective. All employees with
> the "Customer Service" element shall have the following standards in
> the "Customer Service" element:
>
> "Customer needs and expectations are identified and are considered
> when making decisions, identifying solutions, and resolving conflicts.
>
> Internal and external customers' requirements and expectations for
> high quality products or results are met with almost no exceptions.
>
> Employee's written feedback is solicited to develop individual
> AD-435A's and AD‑435B's that support the goals and objectives of RMA.
>
> Employee feedback accepted by the rating official is written into
> AD-435's and AD‑435B's at the beginning of the performance cycle."

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5 Standards (Continued)

> D Health and Safety Standard
>
> All AD-435A's and AD‑435B's shall contain the following health and
> safety standard. For:

-   supervisors, the following standard is required under any
    appropriate critical or noncritical element:

> "Adheres to Safety and Occupational Health practices and procedures in
> order to promote and maintain a safe and healthful work environment
> for all employees. Upon report of unsafe/unhealthful condition,
> notifies appropriate office within 48 hours, and follows up and/or
> takes appropriate action until condition is resolved."

-   nonsupervisors, the following standard is required under any
    appropriate critical or noncritical element:

> "Demonstrates a basic understanding of the Agency's Safety and Health
> Program. Complies with safety and health rules and regulations that
> apply to all employees. Ensures all reports of unsafe and unhealthful
> conditions are reported to supervisor or designated official within 48
> hours."
>
> E Privacy Act Standard
>
> All AD-435A's and AD‑435B's shall contain the following Privacy Act
> standard. For:

-   supervisors, the following standard is required under any
    appropriate critical or noncritical element:

> "Demonstrates an understanding of the Privacy Act and applies the Act
> correctly when exercising controls and safeguards to preserve the
> integrity and confidentiality of protected information. In addition,
> ensures all employees comply with this standard."

-   nonsupervisors, the following standard is required under any
    appropriate critical or noncritical element:

> "Demonstrates an understanding of the Privacy Act and applies the Act
> correctly when exercising controls and safeguards to preserve the
> integrity and confidentiality of protected information."

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6 Cascading Alignment and Performance

> A AD-435A and AD-435B Alignment
>
> AD-435A and AD‑435B alignment is an ongoing process and offices must
> continue this process into FY 2008 and beyond. Supervisors should
> develop AD-435A's and AD‑435B's for their employees that include at
> least 1 critical element with standards that identify clear and
> measurable tasks and results that are aligned to organizational goals.
> Supervisors and employees are encouraged to align more than 1 element,
> where possible. Alignment should be clear and transparent so that
> employees can see how their AD-435A's and AD‑435B's support
> organizational goal achievement. Merely including a generic statement
> in AD-435's and AD‑435B's that employees support organizational goals
> is not adequate for communicating alignment. Simply restating
> organizational goals without including the metrics for determining
> performance against those goals is not adequate. It should be possible
> to map the responsibility for specific organizational goals through
> AD-435's and AD‑435B's of the chain of responsibility (SES member, to
> manager, to supervisor) to the front-line employee.
>
> In preparing for AD-435's and AD**‑**435B's, supervisors shall:

-   ensure that all employees are aware of RMA's and USDA's current
    Strategic Plan or organizational goals

> **Note:** RMA's Strategic Plan can be found at
> **http://www.rma.usda.gov/aboutrma/what/2006-11strategicplan.pdf**.
>
> USDA's Strategic Plan can be found at
> [**http://www.ocfo.usda.gov/usdasp/usdasp.htm**](http://www.ocfo.usda.gov/usdasp/usdasp.htm).

-   communicate how organizational goals are linked and cascaded to
    individual performance, and how the employee's accomplishments
    support organizational goals within their organizations, through:

-   staff meetings

-   individual or team meetings

-   electronic and internal correspondence

-   develop AD-435's that include at least 1 critical element with
    standards that identify clear and measure (quality, quantity, cost,
    and/or timely) tasks and results that are aligned to organizational
    goals for each individual.

> Aligned standards should be preceded by the following paragraph,
> modified as applicable, based on the part of the strategic plan the
> alignment standard is addressing:
>
> "The following results-focused measures align with USDA Strategic Goal
> (\_), "(title of goal)", Strategic Objective (\_.\_), "(title of
> objective)" in the USDA Strategic Plan, and with RMA Strategic Goal
> (\_), "(title of goal)", Strategic Objective (\_.\_), "(title of
> objective)" in the RMA Strategic Plan:"

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6 Cascading Alignment and Performance (Continued)

> B Results
>
> Each AD-435A and AD‑435B element must include language that holds the
> employee accountable for achieving expected results. This must be
> shown by explaining the results gained by the employee achieving their
> standards.
>
> Example: "Expanded 15 county crop programs in areas where none
> existed. The result is an increase in the number and efficiency of
> risk management opportunities through county crop program expansion."

Results must be appropriate to the employee's level of responsibility.

> C Balanced, Credible Measures
>
> All AD-435A's and AD-435B's must include balanced, credible measures;
> balanced, so that in addition to measuring expected results, AD-435A's
> and AD-435B's include appropriate measures, such as:

-   quality, quantity, timeliness, and/or cost-effectiveness

-   indicators of competencies.

To be credible, performance expectations must be:

-   based on job analysis

-   clear, specific, and understandable

-   reasonable and attainable

-   measurable, observable, or verifiable

-   communicated in a timely manner

-   foster continual improvement in productivity.

7 Individual Development Plans (IDP's)

> A Short- and Long-Term Goals
>
> As part of the performance planning process, employees are encouraged
> to discuss their short- and long-term learning and developmental goals
> with their supervisor and develop an IDP. IDP's contain elective
> training, education, and developmental activities in which employees
> may engage to acquire the competencies to meet IDP goals. Rating
> officials retain sole discretion to determine the extent of
> implementation for IDP and will do so after considering operational
> requirements and budgetary limitations.

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8 Processing AD-435A and AD-435B Responsibilities

> A Rating Official Responsibilities
>
> Rating officials shall process AD-435A's and AD-435B's according to
> the following.

+----+-----------------------------------------------------------------+
| St | Action                                                          |
| ep |                                                                 |
+----+-----------------------------------------------------------------+
| 1  | Establish AD-435A's and AD-435B's. For each element selected,   |
|    | there must be at least 3 standards for measuring performance of |
|    | the element.                                                    |
+----+-----------------------------------------------------------------+
| 2  | Review AD-435A's and AD-435B's for accuracy.                    |
+----+-----------------------------------------------------------------+
| 3  | Give AD-435A's and AD-435B's to reviewing official for          |
|    | signature.                                                      |
+----+-----------------------------------------------------------------+
| 4  | Give AD-435A's and AD-435B's to the employee.                   |
|    |                                                                 |
|    | After discussing each element and standard with the employee,   |
|    | request that the employee sign and date AD-435A, item 11.       |
|    |                                                                 |
|    | Note: Rating officials should attempt to resolve concerns the   |
|    | employee may have about their AD-435A and AD-435B's. If         |
|    | employees refuse to sign their AD‑435A's, advise employees that |
|    | they will:                                                      |
|    |                                                                 |
|    | -   still be placed under AD‑435A's and AD‑435B's               |
|    |                                                                 |
|    | -   be held accountable for the elements and standards          |
|    |     described in AD‑435A's and AD-435B's.                       |
+----+-----------------------------------------------------------------+
| 5  | If employees refuse to sign AD-435A, annotate AD-435A, as       |
|    | follows.                                                        |
|    |                                                                 |
|    | > "AD-435A and AD-435B's were presented to, and discussed with, |
|    | > the employee. The employee refused to sign the AD-435A".      |
+----+-----------------------------------------------------------------+
| 6  | Give a copy of the signed or unsigned AD-435A and AD-435B's to  |
|    | the employee.                                                   |
+----+-----------------------------------------------------------------+

> B Reviewing Official Responsibilities
>
> Reviewing officials shall process AD-435A's and AD-435B's according to
> the following.

+----+-----------------------------------------------------------------+
| St | Action                                                          |
| ep |                                                                 |
+----+-----------------------------------------------------------------+
| 1  | Review employee elements and standards, as submitted by the     |
|    | rating official, to ensure that AD-435A's and AD-435B's:        |
|    |                                                                 |
|    | -   conforms with RMA policy and guidelines                     |
|    |                                                                 |
|    | -   are consistent with other AD-435A's and AD‑435B's in the    |
|    |     work unit.                                                  |
+----+-----------------------------------------------------------------+
| 2  | Sign and date AD-435A's.                                        |
+----+-----------------------------------------------------------------+

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8 Processing AD-435A and AD-435B Responsibilities (Continued)

> C Employee Responsibilities
>
> Employees shall process AD-435A's and AD-435B's according to the
> following.

+----+-----------------------------------------------------------------+
| St | Action                                                          |
| ep |                                                                 |
+----+-----------------------------------------------------------------+
| 1  | Review presented AD-435A and AD-435B's with rating official.    |
+----+-----------------------------------------------------------------+
| 2  | Discuss elements and standards needing clarification.           |
+----+-----------------------------------------------------------------+
| 3  | Sign and date AD-435A. The employee's signature certifies that: |
|    |                                                                 |
|    | -   a discussion took place with the supervisor about AD-435A   |
|    |     and AD-435B's                                               |
|    |                                                                 |
|    | -   the employee has seen AD-435A and AD-435B's                 |
|    |                                                                 |
|    | -   the employee has viewed the standards of conduct and has    |
|    |     had any questions answered to their satisfaction.           |
|    |                                                                 |
|    | Note: If the employee refuses to sign AD-435A and AD-435B's,    |
|    | the employee will still be held accountable for the elements    |
|    | and standards on AD-435A and AD-435B's.                         |
+----+-----------------------------------------------------------------+

**9 Performance Reviews**

**A Mandatory Performance Reviews**

The rating official shall:

-   conduct at least 1 performance review during the 12-month appraisal
    period between the 5th and 8th month

-   inform the employee of their level of performance as it relates to
    their performance elements and standards

-   within 30 calendar days of the performance review, document on the
    employee's AD‑435A that the performance review took place.

> **B Periodic Optional Performance Reviews**
>
> Even though only a mid-year performance review is required, it is in
> the best interest of the rating official and employee to periodically
> hold performance discussions. An employee may request a meeting for
> this review. Periodic performance reviews with the employee will:

-   provide regular feedback

-   keep the channels of communication open

-   assist in identifying strengths and weaknesses

-   help avoid an unexpected performance rating at the end of the
    appraisal period.

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**10** **Documenting Performance**

> **A Rating of Record**
>
> The Rating of Record is AD-435 that is issued at the end of the
> appraisal period and becomes part of the employee's performance file.
> Rating officials and reviewing officials **must:**

-   rate appropriately against the standards in the employee's AD-435A
    and AD-435B's

-   make distinctions in levels of performance.

> Rating shall be based only on actual employee accomplishments.
> Presumptive ratings (that is, ratings that are **not** based on actual
> accomplishments) are prohibited. Rating officials and reviewing
> officials will be held accountable for rating appropriately against
> the standards in the employee's AD-435A and AD-435B's and making
> distinctions in levels of performance.
>
> Artificial targets, such as quotas, for AD-435's should never be used
> to evaluate employee performance. AD-435's must be based on the
> individual accomplishments of the employee being rated.
>
> **B Reduction-in-Force (RIF)**
>
> For Federal employees, annual Ratings of Record are used to establish
> service credit and retention standing in the event of RIF's.

**C Minimum Appraisal Period**

To rate an employee:

-   a performance plan **must** have been established on AD-435A and
    AD-435B's

-   the employee **must** be under AD-435A for at least 90 calendar
    days.

> **Note:** If it has **not** been 90 calendar days by the end of the
> appraisal period, the period may be extended to allow for a rating to
> be given. If no plan has been put into place by the end of the
> appraisal period, no rating can be given.
>
> **C Obtaining and Completing AD-435**
>
> Rating officials shall:

-   use Microsoft Word versions of AD-435

-   complete AD-435 according to the instructions on AD-435.

> **Note:** AD-435 is available from the FFAS Employee Forms Online web
> site at
> [**http://165.221.16.90/dam/ffasforms/currentforms.asp**](http://165.221.16.90/dam/ffasforms/currentforms.asp).

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**10 Documenting Performance (Continued)**

> **D Appraising Elements**
>
> The rating official will evaluate each performance element and
> determine which 1 of the following 3 rating levels is most appropriate
> when comparing the employee's performance with the "Fully Successful"
> performance standard established for that element.

-   "**Exceeds Fully Successful**"; describes performance that exceeds
    the "Fully Successful" standard for the element being evaluated.
    Employees performing at this level may display initiative,
    ownership, and/or unusual independence.

-   "**Meets Fully Successful**"; describes performance of the solid,
    effective employee whose work meets normal expectations in terms of
    quality, quantity, and timelines, as outlined in the "Fully
    Successful" standard.

-   "**Does Not Meet Fully Successful**", describes performance that has
    failed to fulfill the basic expectation for the work.

> **Note:** With assistance from SPO, the rating official **must**
> prepare a comprehensive written statement describing the employee's
> deficiencies for all elements rated at the Does Not Meet Fully
> Successful level. Early identification and correction of poor
> performance is strongly recommended.
>
> **E Summary Ratings**
>
> A 5-level summary rating system summarizes the employee's overall
> performance and is calculated using the description on AD-435. The
> following are the 5 summary levels.

-   "**Outstanding**", all appraisal units are rated "Exceeds Fully
    Successful".

-   "**Superior**", more appraisal units are rated "Exceeds Fully
    Successful" than are rated "Meets Fully Successful", and **no**
    elements are rated "Does Not Meet Fully Successful".

-   "**Fully Successful**", as many or more appraisal units are rated
    "Meets Fully Successful" than are rated "Exceeds Fully Successful".

-   "**Marginal**" **(Minimally Satisfactory)**, more appraisal units
    are rated "Does Not Meet Fully Successful" than are rated "Exceeds
    Fully Successful".

> **Note:** If a critical element is rated "Does Not Meet Fully
> Successful", then the summary rating is automatically "Unacceptable".

-   "**Unacceptable**", 1 or more critical elements are rated "Does Not
    Meet Fully Successful".

> **Note:** If the "Unacceptable" level occurs, the rating official
> shall contact their SPO for guidance.

9-17-07 Page 15

Notice PM-2605

**10 Documenting Performance (Continued)**

> **F Due Date**
>
> AD-435's, AD-435A's, and AD-435B's shall be completed and distributed:

-   by **October 30**

-   according to subparagraph 12 A.

**11 Reviewing Performance**

> **A Rating Official Action**
>
> Rating officials shall review the performance of their employees by:

-   comparing the employee's performance of each element with the
    standards established on AD-435A and AD-435B's

-   checking the appropriate rating level for each element

-   if necessary, obtaining interim ratings from the employee's prior
    supervisors

-   reviewing and signing AD-435.

> **Note:** Supervisory employees detailed from their positions of
> record before the end of the appraisal period shall:

-   provide input to the incoming supervisor of record about an
    employee's performance

-   include a recommended rating for each performance element.

**B Accountability for AD-435's**

> Rating officials:

-   shall ensure that AD-435's:

```{=html}
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```
-   contain all elements

-   designate critical and noncritical elements

-   points are properly assigned, that is 2 points for critical elements
    and 1 point for noncritical elements

9-17-07 Page 16

Notice PM-2605

**11 Reviewing Performance (Continued)**

**B Accountability for AD-435's (Continued)**

-   totals are added correctly

-   summary rating is properly designated

-   employee has checked AD-435, item 17,"Yes" or "No"

-   contains the required signatures

-   shall ensure that the required signatures are entered on AD-435.

**C Providing Additional Information**

> Rating officials shall provide additional documentation to
> substantiate the rating for each element for each rating level given
> (such as, "Exceeds Fully Successful", "Meets Fully Successful", and
> "Does Not Meet Fully Successful") by completing AD-435A, item 10 and
> AD-435B, item 10.
>
> **Note:** If more space is needed than is provided on AD-435A and
> AD-435B, additional documentation may be provided on a piece of paper
> and attached to the rating.
>
> **D Completing AD-435**
>
> Rating officials shall complete AD-435 according to the following.

  ---------- -----------------------------------------------------------------
  **Step**   **Action**

  1          Complete AD-435 by transferring the performance elements and
             appropriate rating level information from AD-435A and AD-435B.

  2          Obtain the reviewing official's approval on AD-435.

  3          Discuss the approved rating and basis for the rating with the
             employee.

  4          Forward AD-435, AD-435A, and AD-435B to HRD or KCHRO according to
             subparagraph 12 A.
  ---------- -----------------------------------------------------------------

> **E Reviewing Officials' Action**

Reviewing officials shall:

-   discuss the performance and rating of employees with rating
    officials

-   change the ratings, if appropriate

-   sign AD-435, item 21 certifying approval of original or revised
    ratings

-   return rating to the rating official for distribution according to
    subparagraph 12 A.

9-17-07 Page 17

Notice PM-2605

**11 Reviewing Performance (Continued)**

> **F Employee Action**
>
> Employees shall:

-   complete AD-435, item 17

-   sign AD-435, item 18.

> **Note:** If the employee refuses to sign/accept the rating, rating
> officials:

-   shall indicate the refusal on AD-435, item 18

-   forward the rating to the appropriate SPO according to subparagraph
    12 A.

**12 Distributing AD-435's and Requirements for Multiple AD-435's**

**A Distributing AD-435's**

> The completed AD-435, AD-435A, and AD-435B's shall be forwarded to the
> appropriate SPO by October 30. Supervisors shall distribute the
> completed AD-435 according to the following.

  ---------- -----------------------------------------------------------------
  **Step**   **Action**

  1          Forward the original, completed copies of AD-435, AD-435A, and
             AD-435B's to the appropriate SPO by October 30.

  2          Provide the employee with 1 copy of AD-435, AD-435A and
             AD-435B's.

  3          Retain 1 copy of AD-435, AD-435A, and AD-435B's for the
             supervisor's files.
  ---------- -----------------------------------------------------------------

9-17-07 Page 18

Notice PM-2605

**12 Distributing AD-435's and Requirements for Multiple AD-435's
(Continued)**

> **B Requirements for Multiple AD-435's**
>
> The following provides instructions for AD-435A's for employees
> detailed or temporarily promoted.

+----------------------+-----------------------------------------------+
| **IF the             | **THEN...**                                   |
| employee...**        |                                               |
+----------------------+-----------------------------------------------+
| is detailed or has a | AD-435A's shall be established. The           |
| temporary promotion  | supervisor responsible for the detail or      |
| to other positions   | temporary promotion shall prepare the AD‑435A |
| in RMA or USDA for   | and communicate it in writing to the employee |
| 90 calendar days or  | within 30 calendar days of the start of the   |
| more                 | assignment. At the end of the assignment, an  |
|                      | interim rating shall be prepared detailing    |
|                      | the employee's accomplishments, and forwarded |
|                      | to the supervisor of record. This shall be    |
|                      | considered in deriving the employee's annual  |
|                      | rating of record.                             |
|                      |                                               |
|                      | **Note:** When employees are detailed outside |
|                      | USDA, the employing agency **must** make a    |
|                      | reasonable effort to obtain information on    |
|                      | the employee's accomplishments from the       |
|                      | outside organization.                         |
+----------------------+-----------------------------------------------+
| is detailed or has a | AD-435A's are **not** required. However, a    |
| temporary promotion  | narrative document shall be prepared          |
| to another position  | detailing the employee's accomplishments, and |
| in RMA or USDA for   | forwarded to the supervisor of record. This   |
| 90 calendar days or  | shall be considered in deriving the           |
| less                 | employee's annual rating of record.           |
|                      |                                               |
|                      | **Note:** When employees are detailed outside |
|                      | USDA, the employing agency **must** make a    |
|                      | reasonable effort to obtain information on    |
|                      | the employee's accomplishments from the       |
|                      | outside organization.                         |
+----------------------+-----------------------------------------------+
| has a change in      | each supervisor of 90 calendar days or more   |
| supervisors during   | shall prepare an interim rating detailing the |
| the appraisal period | employee's accomplishments, and forwarded to  |
| including while on   | the supervisor of record. This shall be       |
| detail               | considered in deriving the employee's annual  |
|                      | rating of record.                             |
+----------------------+-----------------------------------------------+
| has position changes | the supervisor shall prepare an interim       |
| during the appraisal | rating detailing the employee's               |
| period and has       | accomplishments. This shall be considered in  |
| served for           | deriving the employee's annual rating of      |
| 90 calendar days or  | record.                                       |
| more in the position |                                               |
+----------------------+-----------------------------------------------+
| has a transfer of    | the supervisor shall prepare an interim       |
| rating (moves to     | rating detailing the employee's               |
| another agency or    | accomplishments. This shall be sent to the    |
| Department) and has  | gaining organization to be considered in      |
| served for 90        | deriving the employee's annual rating of      |
| calendar days or     | record.                                       |
| more in the position |                                               |
+----------------------+-----------------------------------------------+

9-17-07 Page 19

Notice PM-2605

**13 Monitoring Performance**

> **A Marginal Performance**
>
> If the employee's summary rating is "Marginal", the rating official
> **must** contact their SPO for guidance. The rating official shall:

-   assist employee in improving less than "Fully Successful"
    performance in a noncritical element

-   inform the employee **as soon as** the less than "Fully Successful"
    performance is **apparent** and give the employee a chance to
    demonstrate "Fully Successful" performance

-   assist the employee by:

```{=html}
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```
-   determining if training is needed

-   providing closer supervisory review of work

-   holding discussions and providing correction of work products

-   advising the employee when they have achieved "Fully Successful"
    performance.

> A "Marginal" rating will result in the denial of a Within-Grade
> Increase.

**B Unacceptable Performance**

> If the employee's summary rating is "Unacceptable", the rating
> official **must** contact their SPO for guidance. Rating officials
> shall:

-   assist employee in improving less than "Fully Successful"
    performance in a critical element

-   inform the employee in writing as soon as the less than "Fully
    Successful" performance is apparent and give a reasonable
    opportunity to demonstrate "Fully Successful" performance through an
    Opportunity To Improve (OTI).

> OTI:

-   provides formal notice to the employee that performance is
    unacceptable and provides the employee the opportunity to
    demonstrate "Fully Successful" performance

-   may include activities like developmental assignments, structured
    employee assistance or counseling, formal or on-the-job training,
    and mentoring.

9-17-07 Page 20

Notice PM-2605

**13 Monitoring Performance (Continued)**

> B Unacceptable Performance (Continued)
>
> Careful records **must** be kept of the assistance offered and results
> achieved under OTI. Rating officials should provide the following:

-   notification of elements in which performance is unacceptable

-   specific examples of the unacceptable performance

-   performance requirements or standards that **must** be attained to
    demonstrate "Fully Successful" performance

-   a reasonable opportunity period, usually at least 90 calendar days,
    to demonstrate "Fully Successful" performance on the elements at
    issue

-   notice that the employee **must** improve to the "Fully Successful"
    level by the conclusion of the opportunity period and **must**
    sustain that level of performance for at least 1 year from the start
    of OTI.

> Should an employee's performance again become unacceptable in 1 or
> more of these critical elements, a performance-based adverse action or
> other alternative action may be proposed without the benefit of an
> additional OTI.
>
> An "Unacceptable" rating will result in the denial of Within-Grade
> Increase.
>
> **C Prior Administrative Actions**
>
> Administrative actions initiated against employees whose performance
> is "Unacceptable" under 5 U.S.C. 4303 or 5 U.S.C. 752 involving a
> performance management program in existence before the effective date
> of this program, shall continue to be processed consistent with that
> pre-established set of procedures and requirements.

14 Performance

A Organizational Performance Assessment

> Organizational unit performance will be assessed and communicated
> throughout the organization. Rating officials will be provided
> guidance on how unit performance should be considered when deciding
> ratings and awards.

B Performance Management Program Training

> Each year, supervisors, managers, and employees will receive mandatory
> training and retraining on the requirements and operation of the
> performance management program. All supervisors, managers, and
> employees must know how the performance management program operates.

9-17-07 Page 21

Notice PM-2605

14 Performance (Continued)

C Performance Management Accountability

> According to paragraphs 5 and 10, managers and supervisors will be
> held accountable for the performance management of their subordinates
> and **must** communicate with their employees continuously from the
> beginning to the end of the rating cycle, not just at certain times
> within the rating cycle. At the end of the rating cycle, they must
> **accurately** rate their employee's performance. Corrective action
> will be taken against supervisors who fail to address performance
> deficiencies.

D Recognizing Performance

> Employees receiving summary ratings of "Outstanding" or "Superior"
> should be considered for recognition. This recognition may be any of
> the following:

-   quality step increase (can only be granted if the summary rating is
    "Outstanding")

-   performance bonus

-   time-off award

-   any other form of recognition.

> Note: Recognition is never automatic. External factors, such as
> budgetary constraints, may affect the availability of certain types of
> recognition.

9-17-07 **Page 22**

**Notice PM-2605**

15 Evaluation and Additional Information

> A Evaluation of the Performance Management Program
>
> The performance management program will be evaluated for its
> effectiveness on an annual basis within 90 calendar days of the end of
> each appraisal period. This evaluation will include such issues as the
> correlation between the:

-   performance management program and any improvement of organizational
    performance

-   employee/managerial satisfaction with the performance management
    program.

> B Additional Information
>
> If there are any questions about rating employees, supervisors may
> contact the appropriate SPO according to the following.

+---------------------------+------------------------------------------+
| IF the supervisor is      | THEN contact...                          |
| located in...             |                                          |
+---------------------------+------------------------------------------+
| any RMA Office (except    | Employee Programs Branch, HRD at         |
| Kansas City)              | 202-401-0679,                            |
|                           |                                          |
|                           | 202-401-0694, or TTY at 202-205-9057.    |
+---------------------------+------------------------------------------+
| Kansas City               | KCHRO, Human Capital Management Section  |
|                           | at                                       |
|                           |                                          |
|                           | 816‑926-1630 or TTY at 800-735-2966.     |
+---------------------------+------------------------------------------+

9-17-07 **Page 23**

**Notice PM-2605 Exhibit 1**

**Possible Elements**

> The following is a list of elements that 3 to 7 performance elements
> shall be selected and included in AD-435A and/or AD-435B. Supervisors
> shall designate which elements are critical and noncritical.

+---------------------+------------------------------------------------+
| **Elements**        | **Description**                                |
+---------------------+------------------------------------------------+
| Execution of Duties | Completed work assignments are performed in a  |
|                     | timely manner, assuring a quality of work that |
|                     | meets the needs of the organization.           |
|                     | Appropriate work methods are selected for the  |
|                     | development of work products. Work products do |
|                     | not require substantive revisions. Assignments |
|                     | are completed in accordance with applicable    |
|                     | RMA guidelines, including timeframes.          |
+---------------------+------------------------------------------------+
| Communications      | Oral and written communications are clear,     |
|                     | correct, timely, and presented in an           |
|                     | understandable manner. Supervisor and          |
|                     | coworkers are informed of issues and problems  |
|                     | when necessary. Information and guidance       |
|                     | provided is timely and correct.                |
+---------------------+------------------------------------------------+
| Supervision         | Work is assigned in a fair and effective       |
|                     | manner. Technical guidance to subordinate      |
| **Important:        | staff is given in a timely manner. Performance |
| Mandatory for all   | management is implemented in accordance with   |
| supervisors and     | procedure. Issues, concerns, or problems are   |
| managers**.         | handled promptly and fairly. To the extent     |
|                     | possible, staff is properly trained and        |
|                     | complies with occupational health and safety   |
|                     | programs. Management decisions are supported   |
|                     | and implemented within appropriate timeframes. |
+---------------------+------------------------------------------------+
| Team Leadership     | Routinely leads individuals and team members   |
|                     | toward specific goals and accomplishments.     |
|                     | Provides encouragement, guidance, and          |
|                     | direction as needed. Adjusts style to fit      |
|                     | situation. Delegates appropriate authority in  |
|                     | an effective manner. Coordinates functions of  |
|                     | the team members. Demonstrates a sincere       |
|                     | interest in employees\' activities, abilities, |
|                     | etc.                                           |
+---------------------+------------------------------------------------+
| Program Management  | Manages program(s), resolving issues and       |
|                     | problems within the employee\'s control.       |
|                     | Monitors all aspects of program(s) for         |
|                     | quality, effectiveness, and consistency.       |
|                     | Program plans and guidance are responsive to   |
|                     | objectives and requirements of RMA. Policy     |
|                     | instructions are appropriately issued and are  |
|                     | accurate. Evaluates effectiveness of work and  |
|                     | adjusts plans accordingly.                     |
+---------------------+------------------------------------------------+
| Special Projects    | Special projects are regularly completed on    |
|                     | time in a competent, accurate, and thorough    |
|                     | manner. Completed projects comply with         |
|                     | regulations and procedures. Special projects   |
|                     | are completed independently, or reflect        |
|                     | research and collaboration with others as      |
|                     | required.                                      |
+---------------------+------------------------------------------------+
| Research and        | Thoroughly and accurately researches issues in |
| Analysis            | a timely manner, using available reference     |
|                     | sources (e.g., USDA manuals, or applicable law |
|                     | or regulations. Makes reasonable               |
|                     | recommendations or decisions based on          |
|                     | available guidance.                            |
+---------------------+------------------------------------------------+

9-17-07 **Page 1**

**Notice PM-2605 Exhibit 1**

**Possible Elements (Continued)**

+----------------------+-----------------------------------------------+
| **Elements**         | **Description**                               |
+----------------------+-----------------------------------------------+
| Customer Service     | Routinely displays courteous and tactful      |
|                      | behavior. Projects a positive and             |
| **Important:         | professional image of USDA. Provides advice   |
| Mandatory for all    | that is timely, responsive and accurate.      |
| supervisors and      | Maintains appropriate rapport with internal   |
| managers**.          | and external customers. Develops and          |
|                      | establishes working relationships with        |
|                      | external organizations as required. Keeps     |
|                      | supervisor and/or team leader informed of     |
|                      | difficult and/or controversial issues and     |
|                      | unique problems. Takes action to effectively  |
|                      | solve problems before they have an adverse    |
|                      | impact on the organization or other           |
|                      | employees.                                    |
+----------------------+-----------------------------------------------+
| Supervisory Equal    | Performs all duties in a manner which         |
| Opportunity and      | consistently demonstrates fairness,           |
| Civil Rights         | cooperation, and respect toward coworkers,    |
|                      | office visitors, and all others in the        |
| **Important:         | performance of official business.             |
| Mandatory for all    | Demonstrates an awareness of EO/CR policies   |
| supervisors and      | and responsibilities of RMA and USDA goals of |
| managers**.          | working to employ and develop a diverse, yet  |
|                      | unified workforce.                            |
+----------------------+-----------------------------------------------+
| Nonsupervisory Equal | Performs all duties in a manner which         |
| Opportunity & Civil  | consistently demonstrates fairness,           |
| Rights               | cooperation, and respect toward coworkers,    |
|                      | office visitors, and all others in the        |
|                      | performance of official business.             |
|                      | Demonstrates an awareness of EO/CR policies   |
|                      | and responsibilities of RMA and USDA goals of |
|                      | valuing a diverse, yet unified workforce.     |
+----------------------+-----------------------------------------------+
| Resource Management  | Monitors allocated funds and maintains        |
|                      | complete and accurate records of              |
|                      | expenditures. Routinely utilizes resources in |
|                      | an efficient and effective manner. Ensures    |
|                      | that funds, property and other resources are  |
|                      | guarded against waste, loss, unauthorized     |
|                      | use, and misappropriation.                    |
+----------------------+-----------------------------------------------+
| Individual           | Ordinarily displays dependability and         |
| Contributions to the | reliability. Promotes open communication.     |
| Team                 | Contributes creative ideas and actively       |
|                      | participates in team meetings resulting in    |
|                      | added value to the team\'s products and       |
|                      | services. When problems arise, explores       |
|                      | causes and assists in resolving them. Works   |
|                      | with team members to appropriately implement  |
|                      | decisions. Is usually open‑minded to new      |
|                      | ideas and approaches in implementing the      |
|                      | team\'s goals. Willingly accepts and acts on  |
|                      | constructive criticism.                       |
+----------------------+-----------------------------------------------+

9-17-07 **Page 2**