[Federal Register Volume 60, Number 237 (Monday, December 11, 1995)]
[Proposed Rules]
[Pages 63454-63457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30053]



========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 60, No. 237 / Monday, December 11, 1995 / 
Proposed Rules

[[Page 63454]]


OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 317 and 412

RIN 3206-AF96


Executive and Management Development

AGENCY: Office of Personnel Management.

ACTION: Proposed regulations.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is proposing to amend 
part 317 of its regulations governing initial career appointment to the 
Senior Executive Service (SES) and Qualifications Review Board 
certification. The proposed changes to part 317 would eliminate the 3-
year limitation on the validity of Qualifications Review Board (QRB) 
certification for appointment to the Senior Executive Service and 
simplify the Executive Resources Board (ERB) certification of 
candidates. The Office is also proposing to amend part 412 of its 
regulations governing executive and management development. The 
coverage will be expanded to include supervisory development. The 
revised regulations present broad program criteria on the systematic 
development of executives, managers, supervisors, and candidates. They 
also establish minimum requirements for formal Senior Executive Service 
candidate development programs. The changes proposed promote training 
and development activities which foster a corporate perspective of 
Government.

DATES: Written comments will be considered if received no later than 
February 9, 1996.

ADDRESSES: Send or deliver written comments to the Ms. K. Joyce 
Edwards, Assistant Director, Office of Executive Resources, Office of 
Personnel Management, Room 6484, 1900 E Street NW., Washington, DC 
20415.

FOR FURTHER INFORMATION CONTACT:
Constance Maravell, 202-606-1832.

SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) 
issued proposed regulations on executive and management development on 
March 2, 1993 (58 FR 11988). We received comments from 23 agencies, 9 
individuals and the Federal Executive Institute Alumni Association. 
Most comments expressed support for including the development of 
supervisors along with that of managers and executives. The proposed 
regulations were withdrawn on February 11, 1994 (59 FR 6593) to see 
which objectives of the regulations could be achieved through 
alternative means and so they could be reviewed in the context of the 
sunsetting of the Federal Personnel Manual in December 1993.

General

    In keeping with the spirit of Executive Order 12861 on 
``Elimination on One-Half of Executive Branch Internal Regulations,'' 
we re-examined the proposed regulations. This has resulted in the 
elimination of regulations on needs assessments for the management 
profession and for individuals and formal candidate development 
programs for supervisors and managers. Proposed requirements in these 
areas have been removed, not because we have found such activities to 
be ineffective, but because agencies should be free to engage in them 
without being required to do so. Well selected developmental 
experiences enhance the competence and broaden the perspective of the 
managerial workforce. We encourage agencies to undertake these 
activities on a systematic basis.
    We are also deleting regulations that are covered by statute which 
require no further clarification such as OPM's responsibility for the 
review of agency programs. We would like to draw agency attention to 
two provisions of statute which will not be regulated further. The 
first is the use of sabbaticals in general, 5 U.S.C. 3396(c). The 
second is, 5 U.S.C. 3396(d), authorizing sabbaticals, training, or 
details or other temporary assignments in other agencies, State or 
local governments, or the private sector for the continuing training 
and development of incumbent career SES members
    The earlier proposed regulations also provided for the reactivation 
of expired QRB certifications for graduates of formal SES candidate 
development programs (CDP). Reactivation was accomplished by a 
variation to the regulations in December 1993, which extended 
certifications until December 31, 1996. The current proposed 
regulations in part 317 would remove the present 3-year time limit on 
all QRB certifications. The removal would apply to certifications 
issued before the regulations as well as those issued afterwards.
    In response to a recommendation from the Executive Resources 
Management Group work group on staffing, we propose to simplify 
procedural requirements for the ERB certification of SES candidates. 
Specifically, when there are less than 10 eligible candidates for an 
SES position, an ERB would be permitted to refer all candidates to the 
appointing authority without further ranking. The statutory requirement 
that ERB's make written recommendations must be observed regardless of 
the number of candidates.
    What remains in the regulations is a clear set of criteria which 
promote a corporate perspective of governance through the systematic 
development of candidates for the SES and the continuing development of 
supervisors, managers, and executives. Public managers with a corporate 
perspective respect and embrace the dynamics of American democracy; 
they recognize their fundamental responsibility for balancing change 
and continuity. Their values encompass a respect for both diversity and 
merit. Their commitment to Government service transcends their agency 
mission and individual profession. Executives with a corporate 
perspective will play a critical role in the reinvention of Government.
    These regulations recognize and give meaning to the findings of 
OPM's 1992 Leadership Effectiveness Study. The 10,000 managers who 
responded identified 22 generic competencies essential to successful 
performance as leaders in any government position. The study found that 
effective supervisors, managers and executives have a shared base of 
competencies. As individuals move from supervisors to managers and 
executives they must acquire additional enhanced competencies. For this 
reason, the preparation of supervisors and managers is considered 
integral to the development of candidates for the SES.

[[Page 63455]]

    The criteria in section 412.103 are designed to enable agencies to 
run strong supervisory, managerial and executive development programs 
to provide a corporate perspective in the context of their succession 
planning systems. This assures that there are enough prepared and 
qualified employees as candidates for SES positions. This section 
requires agencies to provide initial and continuing training and 
development to their management corps. Formal SES candidate development 
programs are one option, but not the only one for assuring that 
agencies have enough candidates for the SES.

SES Candidate Development Programs (CDP)

    If an agency desires graduates of its SES candidate development 
program to receive Qualifications Review Board certification, the 
program must meet the minimum standards in Sec. 412.104. OPM will 
review all programs prior to announcement for the first time under 
these regulations regardless of whether they have been approved under 
the previous regulations. After the initial announcement, OPM will only 
review programs if there is a significant change in the program.
    The standards meet statutory requirements and support the National 
Performance Review recommendation for promoting a corporate culture in 
the SES. During the time the candidates are in the program, they must 
attend at least 80 hours of formal interagency training programs; have 
developmental assignments totalling 4 months; and have a mentor. If an 
agency wishes to deviate from these minimum requirements, it must 
obtain an exception from OPM before the candidate starts the program.
    OPM believes that even individuals who are well qualified for an 
SES appointment can benefit from this minimum training and development. 
It is not our intention to grant exceptions to the minimum requirements 
based on the fact that the candidate is already well qualified to enter 
the SES. OPM does not support the use of the formal SES candidate 
development program as a mechanism for ``precertifying'' fully 
qualified individuals for the SES.
    These standards differ from the existing regulations in the 
following ways. Agencies can choose, under the standards, the formal 
interagency executive level training experience rather than be limited 
to OPM approved programs. An agency may substitute a work experience, 
longer than 80 hours, that involves multiple agencies for formal 
training; but this substitution does not eliminate the requirement for 
a developmental assignment. The length of the developmental work 
assignments has been specified to eliminate confusion about what cases 
will be presented to the QRB.
    One way to promote a corporate perspective in the SES is to 
encourage the selection of qualified applicants from outside the 
agency. The law, in 5 U.S.C. 3393(a), supports this goal by requiring 
at least governmentwide competition for initial appointment to the SES. 
While the proposed regulations on recruitment for SES CDP are 
consistent with this statutory requirement, they provide flexibility 
for those agencies which have demonstrated support for an SES corporate 
perspective.
    Specifically, the exception from Governmentwide competition in the 
current regulations for agencies with 150 or fewer allocated SES 
positions for their candidate development programs has been changed in 
two ways. First, the exception is available to agencies which can show 
OPM that in the 5 years prior to announcing a CDP, at least 15% of the 
career SES members appointed come from outside the agency. An agency 
may be able to conduct one offering of a CDP under this exception but 
not another because the agency does not meet the criterion at that 
time. Second, when there has only been agencywide competition for the 
CDP, the graduates of these programs are required to compete 
Governmentwide for entry to the SES.
    The regulations on ``status'' and ``non-status'' SES candidate 
development programs currently in subpart E have been rewritten in a 
new subpart B to eliminate redundancy. There is no change in the nature 
of the programs.

Regulatory Flexibility Act

    I certify that these regulations will not have significant economic 
impact on a substantial number of small entities because they affect 
only Federal employees and agencies.

List of Subjects in 5 CFR Parts 317 and 412

    Government employees.

    Office of Personnel Management.
James B. King,
Director.

    Accordingly, the Office of Personnel Management proposes to amend 5 
CFR parts 317 and 412 as follows:

PART 317--EMPLOYMENT IN THE SENIOR EXECUTIVE SERVICE

    1. The authority citation for part 317 continues to read as 
follows:

    Authority: 5 U.S.C. 3392, 3393, 3393a, 3395, 3397, 3593, and 
3595.

    2. In section 317.501, paragraph (c)(5) is revised to read as 
follows:


Sec. 317.501  Recruitment and selection for initial SES career 
appointment.

* * * * *
    (c) * * *
    (5) Provide that the ERB make written recommendations to the 
appointing authority on the eligible candidates and identify the best 
qualified candidates. If there are less than 10 eligible candidates, 
the ERB may refer to the appointing authority all candidates as ``best 
qualified.'' Rating sheets may be used to satisfy the written 
recommendations requirement for individual candidates, but the ERB must 
certify in writing the list of candidates to the appointing authority.
* * * * *
    3. In section 317.502, paragraph (c) is revised to read as follows:


Sec. 317.502  Qualifications Review Board certification.

* * * * *
    (c) Qualifications Review Board certification of executive 
qualifications must be based on demonstrated executive experience; 
successful completion of an OPM-approved candidate development program; 
or possession of special or unique qualities that indicate a likelihood 
of executive success. Any existing time limit on a previously approved 
certification is removed.
* * * * *

PART 412--EXECUTIVE, MANAGEMENT, AND SUPERVISORY DEVELOPMENT

    3. Part 412 is revised to read as follows:

PART 412--EXECUTIVE, MANAGEMENT, AND SUPERVISORY DEVELOPMENT

Subpart A--General Provisions

Sec.
412.101  Coverage.
412.102  Purpose.
412.103  Criteria for programs for the systematic training and 
development of executives, managers, supervisors, and candidates.
412.104  Formal candidate development programs for Senior Executive 
Service positions.

Subpart B--Senior Executive Service Status and Nonstatus Candidate 
Development Programs

412.201  Purpose.
412.202  ``Status'' programs.
412.203  ``Non-status'' programs.


[[Page 63456]]

    Authority: 5 U.S.C. 3397, 4101, et seq.

Subpart A--General Provisions


Sec. 412.101  Coverage.

    This subpart applies to all incumbents of or candidates for 
supervisory, managerial, and executive positions in the General 
Schedule, the Senior Executive Service (SES), or equivalent pay systems 
who are also covered by part 410 of this chapter.


Sec. 412.102  Purpose.

    (a) This subpart implements for supervisors, managers, and 
executives the provisions of chapter 41 of title 5 of the United States 
Code related to training and section 3396 of title 5 related to the 
criteria for programs of systematic development of candidates for the 
SES and the continuing development of SES members.
    (b) The subpart identifies a continuum of preparation starting with 
supervisory positions and proceeding through management and executive 
positions governmentwide. For this reason, the subpart establishes a 
comprehensive system that is intended to:
    (1) Provide the competencies needed by supervisors, managers, and 
executives to perform their current functions at the mastery level of 
proficiency; and
    (2) Provide learning through development and training in the 
context of succession planning and corporate perspective to prepare 
individuals for advancement, thus supplying the agency and the 
government with an adequate number of well prepared and qualified 
candidates to fill supervisory, managerial, and executive positions 
governmentwide.


Sec. 412.103   Criteria for programs for the systematic training and 
development of executives, managers, supervisors, and candidates.

    Each agency must provide for the initial and continuing development 
of individuals in executive, managerial, and supervisory positions, and 
candidates for those positions. The agency must issue a written policy 
to assure that their development programs:
    (a) Are designed as part of the agency's strategic plan and foster 
a corporate perspective.
    (b) Make assignments to training and development consistent with 
the merit system principles set forth in 5 U.S.C. 2301(b) (1) and (2).
    (c) Provide for:
    (1) Initial training as an individual makes critical career 
transitions to become a new supervisor, a new manager, or a new 
executive consistent with the results of needs assessments;
    (2) Continuing learning experiences, both short- and long-term, 
throughout an individual's career in order for the individual to 
achieve the mastery level of proficiency for his or her current 
management level and position; and
    (3) Systematic development of candidates for advancement to a 
higher management level. Formal candidate development programs leading 
to noncompetitive placement eligibility represent one, but not the 
only, type of systematic development.


Sec. 412.104   Formal candidate development programs for Senior 
Executive Service positions.

    Formal SES candidate development programs permit the certification 
of the executive qualifications of graduates by a Qualifications Review 
Board under the criterion of 5 U.S.C. 3393(c)(2)(B) and selection for 
the SES without further competition. The agency must have a written 
policy describing how the program will operate. The agency must obtain 
OPM approval of the program before it is conducted for the first time 
under these regulations and whenever there are substantive changes to 
the program. Agency programs must meet the following criteria.
    (a) Recruitment. (1) Recruitment for the program is from all groups 
of qualified individuals within the civil service, or all groups of 
qualified individuals whether or not within the civil service.
    (2) Agencies may request an exception to the provision in paragraph 
(a)(1) of this section if they can show that during the 5-year period 
prior to the announcement of a program they have made at least 15% of 
their career SES appointments from sources outside the agency. 
Notwithstanding this exception recruitment must be competitive and be 
announced at least agencywide. Graduates of these programs who have 
been certified by a QRB must then compete Governmentwide for entry to 
the SES, but do not have to obtain a second QRB certification before 
appointment.
    (b) In recruiting, the agency, consistent with the merit system 
principles in 5 U.S.C. 2301(b) (1) and (2), takes into consideration 
the goal of achieving a diversified workforce.
    (c) All candidates are selected through SES merit staffing 
procedures. The number selected shall be consistent with the number of 
expected vacancies.
    (d) Each candidate has an SES development plan covering the period 
of the program. The plan is prepared from a competency-based needs 
determination. It is approved by the Executive Resources Board.
    (e) The minimum program requirements, unless an exception is 
obtained in advance of the beginning of the candidate's program, for an 
SES development plan are as follows:
    (1) There is a formal training experience that addresses the 
executive core qualifications and their application to SES positions 
governmentwide. The training experience must include interaction with a 
wide mix of Federal employees outside the candidate's department or 
agency to foster a corporate perspective but may include managers from 
the private sector and state and local governments. The nature and 
scope of the training must have Governmentwide or multi-agency 
applicability. If formal interagency training is used to meet this 
requirement, it must total at least 80 hours. If an interagency work 
experience is used, it must be of significantly longer duration than 80 
hours.
    (2) There are developmental assignments that total at least 4 
months of full-time service outside the candidate's position of record. 
The purpose of the assignments is to broaden the candidate's experience 
and/or increase knowledge of the overall functioning of the agency so 
that the candidate is prepared for a range of agency positions.
    (3) There is a member of the Senior Executive Service as a mentor.
    (f) Each candidate's performance in the program is evaluated 
periodically, and there is a written policy for discontinuing a 
candidate's participation in the program. A candidate can be 
discontinued or may withdraw from the program without prejudice to his 
or her ability to apply directly for SES positions.
    (g) Each candidate has a documented starting and finishing date in 
the program.

Subpart B--Senior Executive Service Status and Nonstatus Candidate 
Development Programs


Sec. 412.201  Purpose.

    Section 3393 of title 5, United States Code, requires that career 
appointees to the SES be recruited either from all groups of qualified 
individuals within the civil service, or from all groups of qualified 
individuals whether or not within the civil service. This subpart sets 
forth regulations establishing two types of SES candidate development 
programs, ``status'' and ``nonstatus.''

[[Page 63457]]



Sec. 412.202  ``Status'' programs.

    Only employees serving under career appointments, or under career-
type appointments as defined in 5 CFR 317.304(a)(2), may participate in 
``status'' candidate development programs.


Sec. 412.203  ``Nonstatus'' programs.

    (a) Eligibility. Candidates are from outside Government and/or from 
among employees serving on other than career or career-type 
appointments within the civil service.
    (b) Requirements. (1) Candidates must be appointed utilizing the 
Schedule B authority authorized by 5 CFR 213.3202(j). The appointment 
may not exceed or be extended beyond 3 years.
    (2) Assignments must be to a full-time position created for 
developmental purposes connected with the SES candidate development 
program. Candidates serving under Schedule B appointment may not be 
used to fill an agency's regular positions on a continuing basis.
    (3) Schedule B appointments must be made in the same manner as 
merit staffing requirements prescribed for the SES, except that each 
agency shall follow the principle of veteran preference as far as 
administratively feasible. Positions filled through this authority are 
excluded under 5 CFR 302.101(c)(6) from the appointment procedures of 
part 302.

[FR Doc. 95-30053 Filed 12-8-95; 8:45 am]
BILLING CODE 6325-01-M