# Presentation: 042973

## The Five-Level Performance Management System

**Notes:**
The E-learning presentation you are about to view is an overview of the new, five-level performance management system to be rolled out NOAA-wide effective October 1st, 2006, or when labor relations obligations have been completed.  All employees currently covered under the two-level, or pass-fail, performance management system will be migrated to the new, five-level system. 

## CAVEAT

- Please note that this presentation is intended for managers and supervisors and is not intended for bargaining unit members.
- If you are a member of a bargaining unit, you will receive training after labor relations obligations have been completed.

**Notes:**
Before we begin, I’d like to emphasize that this E-learning course is directed at NOAA managers and supervisors, and we ask that any bargaining unit members currently viewing this presentation please not continue any further.

Members of bargaining units will receive training once labor relations obligations have been completed.

## Goals of New System

- Meaningful distinctions in performance
- Linking individual performance to organizational performance
- Unified system across DOC

**Notes:**
In November 2004, the Department of Commerce convened the Performance Management Working Group, which consisted of representatives from each Commerce bureau, as well as a handful of managerial consultants from throughout Commerce.  The Working Group was charged with creating a multi-level performance management system and met several times each month during 2005 to devise such a system.

The Office of Personnel Management had determined that two-level performance management systems like NOAA’s current pass-fail system do not make meaningful distinctions in performance, and the Department of Commerce, therefore, decided to move all of its two-level bureaus to a multi-tiered system.  In addition to the ability to adequately identify aggradations in performance, the new, five-level system allows for the linking of individual performance with organizational performance.  This is an integral component of the President’s Management Agenda initiative in the strategic management of human capital.  It is this linking of individual performance with organizational performance that demonstrates to an employee how he or she advances NOAA’s strategic goals, ultimately leading us to a results-oriented organization.

The final goal of the Performance Management Working Group in devising the five-level performance management system was to create a unified performance management system throughout the Department of Commerce.  For nearly a decade, until the creation of the new, five-level system, employees under the General Workforce Performance Appraisal System were covered by a number of different systems throughout the Commerce bureaus.  There existed five-level systems, two-level systems, and there were even variations within each.  Policy was difficult to mete out due to these variations.  By October 1st, 2006, these inconsistencies will cease to exist because all General Schedule, Wage Marine, and Federal Wage System employees, with the possible exception of some bargaining unit members, will be covered by the same, five-level system.

## Policy

- DAO 202-430
- Signed:  10/13/2005
- _[http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001119](http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001119)__[ ](http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001119)_
*Performance Management Handbook*:
- Signed:  10/13/2005
- _[http://ohrm.os.doc.gov/Performance/PROD01_001123](http://ohrm.os.doc.gov/Performance/PROD01_001123)_

**Notes:**
The new, five-level system is governed by the Department Administrative Order, or DAO, 202-430.  This was signed into policy effective October 13th, 2005, for all bureaus in Phase I of the five-level implementation.  The Performance Management Handbook is a companion piece to the DAO and offers more thorough instructions and guidance on performance management.  For those of you familiar with the old, or draft, Performance Management Handbook, the new Performance Management Handbook is now official and was revised as part of the development of the five-level system.

Please note that we have provided you with hyperlinks to both the DAO and the Performance Management Handbook.

## Department of Commerce Rollout

- Effective 10/13/05 for all Commerce bureaus except:  NOAA, Census, OIG, and EDA
- NOAA to rollout effective 10/01/06 after labor relations obligations completed

**Notes:**
As I mentioned in the previous slide, Phase I bureaus rolled out the five-level performance management system effective October 13th, 2005.  Phase I bureaus included all Commerce bureaus with the exception of the Census Bureau, the Office of Inspector General, the Economic Development Administration, and NOAA.  These four bureaus compose Phase II of the implementation.

## NOAA Rollout:  Announcement of New System	

- 10/05:  National Consultation Rights with National Weather Service Employees Organization (NWSEO) completed
- 10/17/05:  Eddie Ribas, WFMO Director, briefs NOAA Executive Panel (NEP)
- 11/22/05:  Deputy Under Sec (Gen Kelly) issues email to AAs and Corporate Office Directors

**Notes:**
Once National Consultation Rights with the National Weather Service Employees Organization were completed in October 2005, NOAA began its internal rollout process.  On the 17th of October 2005, NOAA’s Director for Workforce Management briefed the Assistant Administrators, the Corporate Office Directors, and their designees on the upcoming performance management migration.

A month later, in November 2005, NOAA’s Deputy Under Secretary issued a memo to NOAA leadership outlining the basics of the new, five-level system and offering references to further information on the system.

## NOAA Rollout:  Union Activities

- 10/05:  Union management officials briefed; policy, *Handbook *presented
- 11/05 – 03/06:  WFMO compiles listing of union issues; union negotiations occur

**Notes:**
Part of the reason for NOAA’s inclusion in Phase II of the five-level rollout was to allow us to spend fiscal year 2006 completing our labor relations obligations.

In October of 2005, after NOAA’s National Consultation Rights were finalized, all of the union management officials were briefed on the new, five-level system and presented with the DAO and Performance Management Handbook.

During the fourth quarter of calendar year 2005 and into the first quarter of 2006, NOAA’s Office of Workforce Management worked with the union management officials to identify concerns, make negotiability determinations, and ultimately conduct negotiations.

## NOAA Rollout:  Training

- Internal WFMO training:  01/06 – 04/06
- Managers Training:  04/06 – 07/06
- Client Services Office (CSO) briefs client managers
- Via WebEx, video and E-Learning
- Employees Training:  06/06 – 09/06
- LO/SO managers must ensure employees are trained
- Via in-person training or E-Learning course

**Notes:**
In early 2006, the Workforce Management Office began conducting internal training to ensure that all Human Resources Advisors could properly and comprehensively respond to questions once managerial training began in the Spring of 2006.

Managerial training on the new, five-level system began in April of 2006, and run through approximately July of 2006.  The Client Services Office within the Workforce Management Office will brief managers and supervisors during these months via WebEx, a pre-packaged video presentation, and this E-learning course.

Once managers and supervisors training has begun, it is the responsibility of these managers and supervisors to ensure their own employees are trained in the system.  We encourage managers and supervisors to conduct as many briefings and discussions as necessary in conveying the details of the new, five-level performance management system.  In teaching their employees about the new, five-level system, managers can use already-prepared PowerPoint slides directed at employees, create their own presentation, and/or direct their employees to a five-level, employees E-learning course similar to this one.  Please consult your servicing Human Resources Advisor in order to access to the 5-Level PowerPoint for employees or to get the title of the employees E-Learning course.

## NOAA Rollout:  The Final Steps

- 09/06 – 10/06:  Closeout of FY06, two-level plans
- 10/01/06:  Five-level system effective
- 11/30/06:  Five-level plans in place for all covered employees

**Notes:**
During the summer of 2006, as employees complete the five-level E-learning training, rating officials should start thinking about closing out all of the two-level performance plans.  By the first of October 2006, the five-level system will be effective, and by the end of November 2006, all covered employees must have five-level performance plans in place.

## Covered Employees	

- General Schedule
- Wage Marines
- Federal Wage System

**Notes:**
As mentioned previously in this E-learning course, the new, five-level system covers, or will cover, all General Schedule, Wage Marine, and Federal Wage System employees in the Department of Commerce.  Employees under the Demonstration Project or the Alternative Personnel System and members of the Senior Executive Service will not migrate to the new, five-level performance management system.

## Appraisal Cycles

- October 1 – September 30 (FY)
- Except:
- Wage Marines:  November 1 – October 31

**Notes:**
When the Department of Commerce decided to unify all General Schedule, Wage Marine, and Federal Wage System employees under the five-level performance management system, one of the advantages of this unification was to standardize the performance appraisal cycle throughout the Department.  The fiscal year has traditionally marked the beginning and end of the performance cycle, and as a result, the Performance Management Working Group chose October 1st through September 30th as the standard appraisal cycle throughout the Department.  A few groups were granted exceptions to this cycle, as were NOAA’s Wage Marines.  The appraisal cycle for Wage Marines remains as it was under the two-level performance management system—from November 1st through October 31st, to coincide with the fleet’s winter-in-port season.

## Five Rating Levels	

- No adjectives
- Level 5, Level 4, Level 3, Level 2, and Level 1
- Level 3 = employee meeting but not exceeding performance standards
- Level 1 equivalent to “Unacceptable”

**Notes:**
A unique component of the new, five-level system is the lack of adjectives used to describe levels of performance.  For many of you who have been covered by five-level performance management systems in the past, the terms “Outstanding,” “Commendable,” and “Fully Successful” were commonly used to label performance.  Under the Department’s new, five-level system, the adjectives were removed, in part to avoid any pre-conceptions about the meaning of these terms.  The new labels for each level of performance are simply:  Level 5, Level 4, Level 3, Level 2, and Level 1.  Level 5 designates the highest level of performance, while Level 1 is the lowest level of performance and is equivalent to “Unacceptable” performance.  Level 3 performance can be thought of as meeting established performance standards but not exceeding them.

## Eligibility for Rating	

- 120 days – Minimum Appraisal Period
- Must occupy covered position on last day of cycle to be eligible for rating
- Supervisors do not have minimum appraisal period to rate

**Notes:**
Under the new, five-level system, the rules on eligibility for a rating have not changed from the current, two-level performance management system.  First, employees must serve 120 days under a performance plan in order to receive a performance rating.  Employees who come onboard with less than 120 days remaining in the performance appraisal cycle should receive a rating once they’ve completed 120 days under a performance plan.

Additionally, in order to receive a rating, an employee must occupy a covered position on the last day of the performance appraisal cycle—September 30th for General Schedule and Federal Wage System employees and October 31st for Wage Marines.

It is important to note that there exists no minimum period for a rating official to serve prior to completing ratings.  Even if a supervisor is hired in the latter half of September, he or she would be eligible to determine ratings for his or her direct reports.  Since this new supervisor has had only a limited amount of time to assess his or her employees’ work, the supervisor should consult interim ratings, the approving official, and employee accomplishment listings for input on assigning the proper final rating.

## Performance Planning

- Plans must be established within 60 days
- New form:  CD-430 to replace CD-516
- _[http://www.osec.doc.gov/forms/pdf/cd430fll.pdf](http://www.osec.doc.gov/forms/pdf/cd430fll.pdf)_
- Each element is linked to an organizational goal

**Notes:**
The first stage in the performance appraisal cycle is the performance planning phase.  As in the two-level performance management system, rating officials must establish performance plans within 60 days of the first day of the appraisal cycle.  This is November 30th for all covered employees except Wage Marines, who must have plans in place by December 31st.

The old performance management form, the CD-516 has been replaced under the five-level system by the CD-430.  A link to this CD-430 has been provided for you on this slide.

## CD-430, Critical Element Page

**Notes:**
This slide shows a marked-up page of the CD-430.  This is the page on which rating officials indicate the critical element, the organizational goals this element supports, and the standards by which this element will be evaluated.  

You will see that the first block on the page, just above the critical element and objective block, requires the Rating Official to note both the DOC and NOAA goals supported by this critical element.  Just below the critical element and objective block is the “Results of Major Activities” block.  This is the block in which your rating official clarifies the results he or she expects when completing the work associated with that particular critical element.   At the very bottom of the page is the block in which the rating officials write Supplemental Standards, or the qualitative and quantitative factors used in evaluating performance on that element.

## Lists 3 -6 duties involved in that critical element

Activities should be results-oriented 
Draft agency policies are created within the framework of government-wide regulations

Activities will not contain evaluative language
Evaluative language is:  Accurate reporting; timely submissions

- Lists 3 -6 duties involved in that critical element
- Activities should be results-oriented
- Draft agency policies are created within the framework of government-wide regulations
- Activities will not contain evaluative language
- Evaluative language is:  **Accurate** reporting; **timely** submissions

**Notes:**
In the “Results of Major Activities” block, the rating official must list at least three, but no more than six, duties or responsibilities which support the critical element listed on that page of the CD-430.  These duties should be results-oriented; that is, they must focus on the outcomes expected by performance on that element.  An example is:  “Draft agency policies are created within the framework of government-wide regulations.”  The result of this activity is the draft policy which conforms to Federal regulations.  

It is important to note that these results-oriented activities must not contain any evaluative language.  The standards on which your employees’ work will be evaluated are designated in a separate block on the form.  In the example provided, you will note that the statement “Draft agency policies are created within the framework of government-wide regulations” does not set a standard by which the policies must be written.  It does not require that the draft policies are written clearly or with few typographical errors.  It only requires that draft agency policies are created and that they do not violate the law or Federal rules.

## Commerce Strategic Goals

- Provide the information and tools to maximize U.S. competitiveness and enable economic growth for American industries, workers, and consumers.
- Foster science and technological leadership by protecting intellectual property, enhancing technical standards, and advancing measurement science.
- Observe, protect, and manage the earth’s resources to promote environmental stewardship.
- Management Integration Goal:  Achieve organizational management excellence.

**Notes:**
The next few slides are dedicated to explaining the concept of linking individual performance with organizational performance. 

The Department’s organizational goals, as outlined in it strategic plan are:

To provide the information and tools to maximize U.S. competitiveness and enable economic growth for American industries, workers, and consumers.
To foster science and technological leadership by protecting intellectual property, enhancing technical standards, and advancing measurement science.
To observe, protect, and manage the earth’s resources to promote environmental stewardship. 
And the Management Integration Goal:  To achieve organizational management excellence.

## NOAA’s Goals and Priorities

**Four MISSION GOALS** and a **MISSION SUPPORT GOAL**:
- Protect, Restore, and Manage the Use of Coastal and Ocean Resources through an Ecosystem Approach to Management
- Understand Climate Variability and Change to Enhance Society's Ability to Plan and Respond
- Serve Society's Needs for Weather and Water Information
- Support the Nation's Commerce with Information for Safe, Efficient, and Environmentally Sound Transportation
- Provide Critical Support for NOAA's Mission

**Notes:**
NOAA’s goals and priorities, as outlined in its strategic plan, are the following four mission goals and a mission support goal:

To protect, restore, and manage the use of coastal and ocean resources through an ecosystem approach to management.
To understand climate variability and change to enhance society's ability to plan and respond.
To serve society's needs for weather and water information.
 To support the Nation's commerce with information for safe, efficient, and environmentally sound transportation.
And to provide critical support for NOAA's mission.  

## Linking Plans to Goals

- Ecosystems

- Climate

- Weather/Water

- Commerce/ Transportation

- Support

- Employee

- SES Supervisor

**Notes:**
During the performance planning phase of the appraisal cycle, it is the responsibility of the rating official to present the performance plan to his or her employees and to discuss the contents of the plan with these employees.  It should be evident to employees, through their critical elements, what work is expected of them during the appraisal cycle, and rating officials must make clear how each critical element advances DOC and NOAA goals.  

For some employees, the link between their everyday duties and organizational goals will be obvious.  For example, the duties of NOAA meteorologists clearly support the Commerce goal of observing, protecting, and managing the earth’s resources to promote environmental stewardship.  The link between meteorologists and NOAA goals is obvious as well.  Among other goals they may support meteorologists clearly serve society’s needs for weather and water information.

For other employees, their connection to organizational goals will be less evident, and rating officials can demonstrate how these employees’ critical elements support the performance plan of the Senior Executive in the chain of command.  The performance plans of Senior Executives are inherently linked to DOC and NOAA goals and therefore, employees which support their SESser’s plan necessarily support organizational goals.

## Performance Elements

- All elements are critical
- Minimum of 3, maximum of 5
- Mandatory elements:
- Customer Service for all employees
- Leadership for all supervisors
- All elements are weighted (by percentage)
- 15% is minimum

**Notes:**
In the five-level system, as in the two-level system, all elements in a performance plan are critical.  There are no non-critical elements.  Each performance plan must contain a minimum of three critical elements, but no more than five critical elements.  Also, every employee’s plan must contain a required customer service element which defines this employee’s customers and what type of work is provided to them.  While some employees’ job descriptions don’t initially seem to encompass customer service, it is important to note that every employee in NOAA provides a service, whether it be analysis, weather information, data, or the traditional customer service activities of responding to requests and inquiries.  Every NOAA employee also has at least one customer to which he or she responds.  Some employees may provide work to their supervisors, other employees may distribute information to the public.  The supervisors, the public--the persons or organizations receiving service or information should be made obvious to the employee under the mandatory customer service element.

In addition to the required customer service element, all supervisory performance plans must contain a leadership element.  This leadership element is the location of language on hiring and staffing, diversity, performance management, and other duties unique to supervisors.

The final fact to note about critical elements in the five-level system is that they are weighted by percentage within a performance plan.  The sum of the weights must
 equal 100 percent with 15% as the minimum for each critical element.  The weight determined for each critical element should not be based on the amount of time spent on that activity, but rather on the relative importance of that activity in advancing organizational goals.

## Performance Standards

- Generic Performance Standards
-  Applicable to all critical elements
- _[http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001139](http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001139)__[ ](http://ohrm.os.doc.gov/Performance/ssLINK/prod01_001139)_
- Supplemental standards are required

**Notes:**
When discussing the performance plan with the employee, a rating official should direct the employee to the Generic Performance Standards, which will be used throughout the covered bureaus to evaluate each critical element within a plan.  The Generic Performance Standards are found in the CD-430—the performance planning form--, and a hyperlink to this form has been provided for you.

In addition to the Generic Performance Standards, Supplemental Standards will be used to evaluate each critical element within a performance plan.  Unlike the Generic Performance Standards, the Supplemental Standards are not common to all employees covered by the five-level system.  Supplemental Standards must be written by the rating official, and each critical element must have unique Supplemental Standards.  Supplemental Standards define quality, quantity, timeliness, and cost-effectivess and should be written to define the specific standards required in order to receive a Level 3 rating on that element.  In other words, the Supplemental Standards for each critical element should demonstrate to the employee how he or she must perform on that element in order to achieve Level 3 performance.

## Supplemental Standards

- Credible Measures

**Notes:**
The next few slides contain examples of Supplemental Standards, also known as Credible Measures.  Remember that each critical element must have associated Supplemental Standards, and a block to note these standards is located under each critical element on form CD-430.

## HR Specialist

**Critical Element:****  Incentive Awards Program**
**Objective:****  To manage and disseminate info/guidance on awards programs available to NOAA employees and to plan associated recognition ceremonies.**
**Results-Oriented Activities:**
**Gold and Silver Medal nominations are submitted to DOC.**
**NOAA’s Incentive Awards Board (NIAB) is convened and provides recommendations on award recipients to the VADM.**
**Awards ceremonies are planned and carried out.**
**Supplemental Standards:**
**Gold/Silver Medals are submitted to DOC within 1 week of the deadline established by DOC**
**NIAB is provided w.ith well-organized review materials (as judged by the Chair) and meets at least 3 times a year to coincide with each major awards cycle.**
**Ceremonies are planned within budget restrictions and reflect a high-level of detail and organization (as judged by the Dir for WFMO).**

**Notes:**
Many of the occupations at NOAA involve scientific or technical work.  Employees provide data, scientific papers, weather forecasts, and coastal impact studies.  For these jobs which lend themselves to quantification and qualification, Supplemental Standards may be easier to write.  For instance, a research fishery biologist may have as a requirement to produce 2 scientific papers during the performance cycle.  This is a very clear standard that must be met in order for the employee to be performing at least at the Level 3 on that element.

Other occupations are less quantifiable in nature and writing Supplemental Standards to define how employees must provide critical support for NOAA’s mission—those occupations which are more administrative in nature—may be challenging at first.

Please take a minute to read the critical element and associated Supplemental Standards on this slide.  

[PAUSE FOR 45 SECONDS]

The duties of the job described on this slide are administrative in nature; the employee administers NOAA’s awards programs and plans the awards ceremonies.  As you can, the associated Supplemental Standards clarify the results-oriented activities by describing the quality of these results.  For example, the expected result of this HR Specialist’s work in the Incentive Awards Program is the submission of NOAA’s Gold and Silver Medal nominations to Commerce.  However, this result does not describe the quality or timeliness of the Gold and Silver submissions to DOC.  The first listed supplemental standard— “Gold and Silver Medal nominations are submitted to DOC within 1 week of the deadline established by DOC”—tells the employee that his or her work must meet this 1-week standard in order to achieve at least a Level 3 rating on this element. 

It is important to note that Supplemental Standards must not contain absolute standards so that it is virtually impossible for an employee to satisfy the condition and receive a Level 3, nevermind exceed performance and achieve a Level 5.  An absolute standard would be:  “Gold and Silver Medal nominations submitted to DOC contain no grammatical or factual errors.”  “No errors” is an absolute standard because very few, if any, employees could review nearly 50 3-page nominations and not overlook at least one error.  A Supplemental Standard must allow for the average employee to achieve a Level 3 on that element and for high performers to achieve Levels 4 or 5 if they exceed the standards.

## Management Analyst

**Critical Element:****  Management of the NWS Directives System (NDS)**
**Objective:****  To ensure that needed guidance and technical assistance are provided to internal and external users of the NDS.**
**Results-Oriented Activities:**
**Policy and procedural guidance is issued to writers using the NDS.**
**Reports are prepared and disseminated to appropriate offices/individuals.**
**Support is provided to NDS Cadre members.**
**Supplemental Standards:**
**Guidance on the NDS is clear, concise, and usually factually correct (as judged by NDS users).**
**Reports issued to offices/individuals are usually accurate.  When errors are found, they are corrected within 5 working days.**
**NDS users’ requests for assistance are responded to within 3 working days.**

**Notes:**
This slide shows the critical element, objective, results and associated Supplemental Standards for a Management Analyst in the Weather Service.  Please take a moment to read this slide.

[PAUSE FOR 45 SECONDS]

You can see the measures of quality and timeliness in the Supplemental Standards.  The NDS guidance must be clear, concise, and usually factually correct in order to be eligible for a Level 3 on this element.  Furthermore, any errors in the reports provided must be corrected within 5 working days.

## EEO Manager (GS-13)

**Critical Element:****  ADR Counseling Team Lead**
**Objective:  ****To coordinate ADR sessions in the informal and formal EEO process and facilitate pre-complaint activities.**
**Results-Oriented Activities:**
**EEOTrack entries are inputted.**
**Notices of Right to File are issued.**
**EEO and ADR programs are operated in compliance with all statutes, regulations, and policies issued by the EEOC.**
**Supplemental Standards:**
**EEOTrack entries contain few errors and are inputted within 5 business days of receiving completed client information.**
**Notices of Right to File are issued within 30 days of initial contact, 90 days if ADR is elected or an extension is granted by the EEO Officer or requested by the counselees.**
**Counselors are assigned within the timeframe established by the EEO Officer.**

**Notes:**
Here’s an example for an Equal Employment Opportunity Manager at the GS-13 level.  Please take a moment to read over this element, the noted results, and supplemental standards.

[PAUSE FOR 45 SECONDS]

Again, you should note the language which defines how Level 3 performance is demonstrated on this element.  EEOTrack entries must be inputted within 5 business days.  An EEO Manager who inputs EEOTrack entries within 2 or 3 business days may be eligible for a Level 4 or Level 5 rating on that element because the employee exceeded the standard for Level 3 performance.

## Progress Reviews

- One required at midpoint (March/April)
- Additional progress reviews may be requested by employee or supervisor
- If performance at Level 3 or above on all critical elements, no justification required
- If performance below Level 3, deficiencies must be noted for that element

**Notes:**
Under the new, five-level system, a progress review must be conducted at the mid-point of the appraisal cycle, around March or April, and this progress review must be discussed with the employee.  Individual critical elements are not rated at this point.  If a rating official feels that  performance on all critical elements is at the Level 3 or above, he or she should check the appropriate box and no other documentation is required.  

If performance does fall below Level 3 on one or more critical elements, the rating official must note those critical elements and indicate the deficiencies in performance.

## Assigning Ratings to Elements

- Using the Generic Performance Standards and Supplemental Standards, evaluate and rate each element within a plan (Levels 1 – 5)
- No fractional scores permitted
- Rating must be Level 4, Level 5
- Not Level 4.5

**Notes:**
It is not until the end of the performance appraisal cycle that rating officials determine a final, or summary rating, by rating each critical element in a plan.  At the end of the cycle, and within 30 days of the beginning of the new cycle, the rating official must use the Generic and Supplemental Performance Standards to rate performance on each element at one of the available levels, that is, Levels 1 through 5.

Each critical element must be assigned a whole number.  If performance falls between levels, it cannot be quantified as Level 3.5 or Level 43/4.

## Summary Derivation Scheme

- Use each element’s weight and multiply the weight by that element rating to achieve a score
- Ex. – 15 (%) x (Level) 4 = 60 points
- Total these scores to achieve an overall rating
- Ex. – 60 points + 80 points + 260 points = 400 points
- Use scale to determine which rating corresponds to 400 points

**Notes:**
Once a rating official has assigned a rating to each critical element in the employee’s performance plan, the rating official uses this information to determine the summary rating or final rating for that appraisal cycle.  This formula for determining a final rating from the critical element ratings is known as the Summary Derivation Scheme.

The rating official multiplies the weight of the critical element by the rating level on that element to determine a score for that element.  In the example provided, the critical element was weighted at 15 percent and was rated at a Level 4.  So...the rating official multiplies 15 by 4 to achieve a score of 60 points on that critical element.

The same process is carried out for each critical element in the plan so there are between 3 and 5 scores which must be summed.  In the example provided, critical element one resulted in a score of 60; critical element two resulted in 80 points; element three resulted in 260 points.  The total for all of these critical elements is 60 plus 80 plus 260 equals 400 points.

## Determining the Summary Rating	

- Determining the Summary Rating

**Overall Score****	****	****	****Summary Rating ****	****	****	****	****	**
- 470 – 500 points				Level 5
- 380 – 469 points				Level 4
- 290 – 379 points				Level 3
- 200 – 289 points				Level 2
- 100 – 199 points				Level 1
- Example from Previous Slide:
- 400 points translates into a Level 4 rating

**Notes:**
As you can see on the provided scale, 400 points falls into the range of “380 to 469 points” so the employee would receive a final rating of Level 4.  This scale is the same for all employees covered by the new, five-level performance management system, and it is included in the CD-430, Performance Management Record.

## Another Example	

- Critical Element 1 is 30% of plan		Rated at Level 4	30 x 4 = 120 points
- Critical Element 2 is 30% of plan		Rated at Level 3	30 x 3 = 90 points
- Critical Element 3 is 20% of plan		Rated at Level 3	20 x 3 = 60 points
- Critical Element 4 is 20% of plan		Rated at Level 4	20 x 4 = 80 points
**120 + 90 + 60 + 80...............TOTAL = 350 points**
**Scale**
- 470 – 500 points				Level 5
- 380 – 469 points				Level 4
- 290 – 379 points				Level 3
- 200 – 289 points				Level 2
- 100 – 199 points				Level 1
**Final Rating = Level 3**

**Notes:**
Please take a look at another example of using the Summary Derivation Scheme to determine a final rating.  Critical element one was weighted at 30 percent and was rated at Level 4 so 30 multiplied by 4 equals 120 points.  Critical element two is 30 percent, or 30, times Level 3 so the score for that element is 3 times 30, or 90, points.  Critical element three becomes 60 points, and critical element four becomes 80 points.  Finally, the scores are added together to become 350 points.

Using the scale, you can see that the employee falls into the 290 to 379 range and therefore receives an overall Level 3 rating.

## Justifying the Rating

- Supervisor required to write overall narrative justification...or
- Justifications for _each_ individual element...or both
- All elements rated below Level 3 require a justification
- Level 1 on any element = Overall Level 1
- Level 1 rating---see your servicing HRA; PIP required

**Notes:**
Once the final rating has been determined, the rating official has three options.  He or she can write an overall narrative justification explaining the final rating and level of performance throughout the appraisal cycle.  Or...the rating official can elect to justify each, individual critical element instead of writing an overall narrative.  Finally, the rating official can decide to both justify any or all of the critical elements as well as write an overall narrative.  

Please note that any critical elements rated below Level 3 must be addressed in a separate narrative justification.

It is also important to note that receipt of a Level 1 rating on any critical element automatically results in an overall Level 1 rating.  As a rating official, as soon as you assign a Level 1 to a critical element, you do not need to proceed with the summary derivation scheme.  The final rating necessarily becomes a Level 1.

In addition, once an employee receives a Level 1 rating, the supervisor should immediately contact his or her servicing Human Resources Advisor—a Performance Improvement Plan, or PIP, is required.  In fact, if at any time during the appraisal cycle, the employee’s performance falls to Level 1, or unacceptable, the supervisor must contact his or her servicing Human Resources Advisor.

## Reconsideration of Rating

- If employee is not satisfied with rating, he/she may request informal reconsideration
- Also may request formal reconsideration
- Under the appropriate negotiated grievance procedures or under the DOC’s administrative grievance procedures

**Notes:**
Under the new, five-level performance management system, the employee has two options if he or she is unsatisfied with his or her rating.  The employee may request informal reconsideration through discussions with his or her rating and approving officials.

The employee may also elect to request formal reconsideration of a rating under the appropriate negotiated grievance procedures or under the Department of Commerce’s administrative grievance procedures, whichever is applicable.

## Reinstatement of Performance Awards

- Performance awards linked to achievement of organizational goals
- Highest performers to receive largest awards
- Special Act, Time Off, and CIYA still available for use throughout year

**Notes:**
Two of the main emphases of the new, five-level system are to link individual with organizational performance and to make meaningful distinctions in performance.  Through the reinstatement of end-of-cycle performance awards, the five-level system can further both of these goals.  The highest performers in your organizations should receive the largest performance awards; that is, your Level 5s should receive the largest awards, followed by the Level 4s, and so on.  

Since the critical elements most important in advancing NOAA goals are weighted the most heavily in performance plans, these critical elements will have the greatest impact on the final score and the greatest impact on performance awards.  A high level of performance on an element more crucial to NOAA results will have a disproportionate affect on the final score, making the score higher.  This higher score results in a higher rating, and therefore, a larger performance award.

We still encourage the use of other monetary awards throughout the appraisal cycle.  Special Act, Time-Off, and Cash-in-Your-Account Awards remain excellent tools for rewarding outstanding achievement in discrete work products and for clearly linking good performance with recognition.  Please note that any monetary awards given throughout the year may impact performance award amounts because the higher performers in an organization must be receiving the largest dollar-value of total awards throughout the cycle. 

## Employee Performance Files (EPFs)

- EPFs must be maintained by rating officials
- EPFs must contain:
- Copies of performance plans, ratings of record, and Performance Improvement Plans (PIPs)
- Forms/supporting documentation used for recommending performance-based personnel actions
- Ex. – Certificates for WGIs (CD-416); Recommendations for Recognition (CD-326); Probationary or Trial Period Reports (CD-35)

**Notes:**
Before we conclude today’s five-level presentation, I’d like to take a minute and mention Employee Performance Files, also known as EPFs.  At NOAA, the maintenance of EPFs has been delegated to rating officials.  This was true under the two-level performance management system, and it will also be the case under the five-level system.  

EPFs must contain copies of performance plans, ratings of record, and any Performance Improvement Plans (PIPs) for each direct report under a rating official.  In addition, rating officials should maintain in EPFs any forms or supporting documentation which are used in recommending performance-based personnel actions.  These actions include any certificates for Within Grade Increases, Recommendations for Recognition, and Probationary or Trial Period Reports.

## Disclosure of EPFs

- EPFs are covered by the Privacy Act
- EPFs must be maintained in locked files
- EPF access is restricted to:
- Employee and representative
- Rating and approving officials
- Officials who need EPF documents in order to perform their jobs

**Notes:**
All EPFs must be maintained in accordance with the provisions of the Privacy Act, and they must be housed in locked files.  Access to EPFs is restricted to the following individuals:

The employee and his or her designated representative (this representative must have a signed release statement);
Rating and approving officials; or
Other organizational officials who need access to EPFs in order to perform the duties of their job.  For example, Human Resources Advisors, employees in the Office of the General Counsel, or representatives from the Equal Employment Opportunity Commission are all officials who may, at some point, require access to EPFs.

It is also important to note that any time an employee separates or transfers to another organization, the rating official must forward that employee’s EPF to the servicing Workforce Management Office.

## Retention of Records in EPFs

- Performance plans and ratings = 4 years
- Unacceptable performance appraisals where notice of demotion/removal issued but not effected
- Related documents destroyed after 1 year of acceptable performance (from date of advance notice of demotion/removal)
- See DOC’s retention guide for retention periods on other EPF records
- To destroy records, burn or shred

**Notes:**
Once records have been stored in an EPF, the rating official must follow prescribed records retention rules in determining whether to retain or destroy these documents.  All performance plans and associated documents as well as performance ratings must be maintained in an EPF for four years.  These records may be retained longer than 4 years only for the purpose of statistical analysis. Any data retained beyond four years may not be used in any action affecting the employee when the record has been or should have been destroyed.

Appraisals of unacceptable performance--Does Not Meet Expectations in the two-level system or Level 1 in the five-level system—where a notice of demotion or removal has been issued but not effected, must be destroyed after one year of acceptable performance.  This one year begins on the date of the notice of  proposed demotion or removal.

All other EPF records have retention periods prescribed by the Department of Commerce’s retention guide.  In most cases, this is two years.

As with any documents containing personal information such as social security numbers, EPF records must be destroyed through burning or shredding.

## For more information, visit:	

- _[http://ohrm.os.doc.gov/Performance/PROD01_001118](http://ohrm.os.doc.gov/Performance/PROD01_001118)_
- Or see:** **_[http://](http://www.wfm.noaa.gov/performancemgmt/media/test.asx)__[www.wfm.noaa.gov/performancemgmt/media/test.asx](http://www.wfm.noaa.gov/performancemgmt/media/test.asx)_
- 	for the DOC training video

**Notes:**
Thank you for taking the time to view this course today.  If you would like more information on the new, five-level performance management system, please visit the first hyperlink indicated on this slide.  This is a direct link to all of the information posted by the Department of Commerce on the five-level system.

The second hyperlink provided here is a 16-minute video originally produced by the Department to give a brief overview of the new, five-level system.  This video can be viewed on the Workforce Management Office website at any time through computers which support Windows Media Player.

Additionally, we encourage you to address any questions you may have about the five-level performance management system or on the maintenance of EPFs to your servicing Human Resources Advisor.