[Federal Register Volume 76, Number 151 (Friday, August 5, 2011)]
[Proposed Rules]
[Pages 47516-47518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19844]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR PART 250
RIN 3206-AL98
Personnel Management in Agencies
AGENCY: U.S. Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The U.S. Office of Personnel Management is issuing proposed
regulations that would provide regulatory definitions related to the
strategic management of human capital, clarify requirements regarding
the systems and metrics for managing human resources in the Federal
Government, and streamline/clarify the procedures agencies are required
to follow.
DATES: Comments must be received on or before October 4, 2011.
ADDRESSES: You may submit comments, identified by RIN number ``3206-
AL98,'' using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Joseph Kennedy, Deputy Associate Director, Agency and
Veterans Support, U.S. Office of Personnel Management, Room 7460, 1900
E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Patsy Stevens by telephone at (202)
606-1574; by fax at (202) 606-1574; or by e-mail at
[email protected].
SUPPLEMENTARY INFORMATION: The U.S. Office of Personnel Management
(OPM) is issuing proposed regulations to revise 5 CFR part 250, subpart
B, Strategic Human Capital Management, and make a technical correction
to subpart C, Employee Surveys. Subpart B implements the requirements
of the Chief Human Capital Officers Act (CHCO Act), codified at 5
U.S.C. 1103(c). Section 1103 requires OPM to ``design a set of systems,
including appropriate metrics, for assessing the management of human
capital by Federal agencies'' and to define those systems in
regulation. Subpart B of part 250 of title 5, Code of Federal
Regulations, contains those regulations. Subpart B also provides a
mechanism for Chief Human Capital Officers (CHCOs) to carry out their
required functions under 5 U.S.C. 1402(a). Subpart C addresses the
requirements for employee surveys.
The current regulations implement 5 U.S.C. 1103(c) by adopting the
systems currently comprising the Human Capital Assessment and
Accountability Framework (HCAAF) to constitute the systems required by
5 U.S.C. 1103(c)(1) and to provide the definitions required by 5 U.S.C.
1103(c)(2). The HCAAF is a framework that integrates five human capital
systems--Strategic Alignment, Leadership and Knowledge Management,
Results Oriented Performance Culture, Talent Management, and
Accountability. These systems define good practices for effective and
efficient human capital management and support the steps involved in
the planning and goal setting, implementation, and evaluation of human
capital initiatives in the Federal Government.
OPM believes that incorporating the full text of the HCAAF to
satisfy these requirements has proven to undermine the original concept
of the HCAAF with respect to flexibility and adaptability. The original
HCAAF document was integrated several years ago into a Web-based
Resource Center that was being updated based on feedback, analysis, and
emerging agency practices and results. Once the entire text of the
HCAAF was brought into regulation, it became more difficult to keep
current. OPM has concluded that it would be more effective to discharge
its obligations under 5 U.S.C. 1103(c)(2) by providing definitions in
the regulations that establish broad, overarching concepts, and
treating the material in the HCAAF as guidance that is subject to
change as Federal human capital management evolves.
In addition, OPM is clarifying requirements imposed by two separate
legal authorities. In the past, there was some confusion regarding
whether agencies must establish separate accountability systems in
order to satisfy the statutory requirements of 5 U.S.C. 1103(c)(2)(F)
and any requirement OPM previously imposed under Civil Service Rule X
(5 CFR 10.2). The proposed regulations would make clear that the
requirements of these two legal authorities are satisfied by the
establishment of the Human Capital Accountability System (HCAS) set
forth in section 250.207 of the proposed regulation. Section 250.205(e)
would codify in regulation OPM's longstanding practice in this area of
these two legal authorities.
Finally, the proposed regulation would eliminate the requirement
currently stated in section 250.203 to maintain a human capital plan.
However, even though the requirement for a human capital plan will be
eliminated, agencies are expected to continue to engage in strategic
human capital planning. OPM will monitor agency outcomes in human
capital management, and agencies should continue to implement good
business practices that support effective and efficient human capital
management. The purpose of these proposed changes is to focus the
regulations on the specific requirements that are the most significant
for establishing and maintaining efficient and effective human capital
management while providing agencies more flexibility in determining how
they will accomplish their human capital planning activities.
The proposed regulations, therefore, will--
Define applicable systems and include standards as
required by 5 U.S.C. 1103(c)(2) to constitute a set of overarching
concepts in regulation, to be supplemented with details in guidance.
Enable agencies to have a greater alignment of human
capital policies and programs with mission objectives, by simplifying
the system definitions to broad, overarching concepts. The current
definitions incorporate the entire text of the HCAAF, which is quite
lengthy and includes much material better suited as guidance. Because
of its length, the HCAAF had to be printed in an Appendix, which was
published as part of the final rule in the Federal Register (73 FR
23013, April 28, 2008), but was not codified in title 5. Our experience
in recent years has shown agencies can achieve better alignment if they
focus their human capital activities on those initiatives that offer
the most organizational benefits, thus allowing them to allocate
budgetary and human resources more effectively. We hope the simplified
system definitions will facilitate more effective alignment of human
capital programs with agency mission objectives.
Ensure consistency by clearly defining key human capital
management terms, including the Human Capital Management Report (HCMR).
Outline OPM's requirements for the annual agency HCMR
agencies currently submit, in alignment with the requirements placed on
agencies' CHCOs in 31 U.S.C. 1115(a)(3) and (f) and 1116(d)(5).
For purposes of the required elements of their Human
Capital Accountability System and their HCMR, differentiate between
agencies that are required by the CHCO Act to have a CHCO (hereafter
referred to as ``CHCO agencies'') and agencies that are not required to
have a CHCO (hereafter referred to as ``non-CHCO agencies'') in how
they are expected to comply with subpart B. This does not suggest that
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two separate systems are being implemented, rather that we have a
system that is flexible enough to accommodate the human capital
requirements for large agencies (or CHCO agencies) with small
subcomponents, and smaller agencies (non-CHCO agencies).
Streamline the requirements of subpart B of part 250 for
agencies, by removing the regulatory requirement for a human capital
plan and eliminating redundancy in provisions relating to agency
accountability systems.
The technical correction to subpart C clarifies that the
definitions contained in the subpart apply only to that subpart.
Executive Order 13563 and Executive Order 12866, Regulatory Review
The Office of Management and Budget has reviewed this rule in
accordance with E.O. 13563 and 12866.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will apply only to Federal agencies and employees.
List of Subjects in 5 CFR Part 250
Authority delegations (Government agencies), Government employees.
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, OPM is proposing to amend 5 CFR part 250 as follows:
PART 250--HUMAN CAPITAL MANAGEMENT IN AGENCIES
1. Revise the authority citation for part 250 to read as follows:
Authority: 5 U.S.C. 1101 note, 1103(a)(5), 1103(c), 1104, 1302,
1401, 1401 note, 1402, 3301, 3302; E.O. 10577, 12 FR 1259, 3 CFR,
1954-1958 Comp., p. 218; E.O. 13197, 66 FR 7853, 3 CFR 748 (2002).
2. Revise the heading of Part 250 to read as set forth above:
3. Revise subpart B to read as follows:
Subpart B--Strategic Human Capital Management
250.201 Coverage and purpose.
250.202 Definitions.
250.203 Agency responsibilities.
250.204 Human Capital Management.
250.205 Systems and standards.
250.206 System metrics.
250.207 Human Capital Accountability System.
250.208 Human Capital Management Report.
Subpart B--Strategic Human Capital Management
Sec. 250.201 Coverage and purpose.
Pursuant to 5 U.S.C. 1103(c), this subpart defines a set of
systems, including standards and metrics, for assessing the management
of human capital by Federal agencies. These regulations apply to all
Executive agencies as defined in 5 U.S.C. 105 and support the
performance planning and reporting that is required by sections
1115(a)(3) and (f) and 1116(d)(5) of title 31, United States Code.
Sec. 250.202 Definitions.
Chief Human Capital Officer (CHCO) means the person appointed or
designated by the agency head as required by 5 U.S.C. 1401, who is
accountable for the strategic alignment of the agency's workforce to
its mission and is responsible for maintaining and effectively
directing the agency's human capital management policies and programs.
CHCO agency means an agency required by 5 U.S.C. 1401 to appoint a
CHCO.
Human Capital Management Report (HCMR) means the report compiling
an agency's required metrics and its self-assessment of its progress in
meeting the established goals, objectives and milestones in the
agency's human capital programs and initiatives. Agencies may also use
the HCMR to report on designated Governmentwide goals and objectives.
The report helps CHCOs meet the requirements of 31 U.S.C. 1115(a)(3)
and (f) and 1116(d)(5).
Non-CHCO agency means an agency not required by 5 U.S.C. 1401 to
appoint a CHCO, although it may have one.
Sec. 250.203 Agency responsibilities.
(a) An agency is responsible for planning, developing,
implementing, maintaining and evaluating its strategic human capital
management programs and policies and its human resources practices to
ensure that they support meeting mission objectives and are efficient,
effective, and compliant with merit system principles, laws, and
regulations.
(b) An agency must comply with OPM instructions when assessing and
reporting on its human capital management efforts.
Sec. 250.204 Human Capital Management.
An agency must use the systems, standards and metrics contained in
Sec. Sec. 250.205 and 250.206 of this part in planning, evaluating and
improving the efficiency and effectiveness of agency human capital
management with respect to--
(a) Aligning with executive branch policies and priorities, as well
as with individual agency missions, goals, and program objectives, and
ensuring its human capital management strategies support its strategic
plans and performance budgets prepared under OMB Circular A-11;
(b) Supporting human capital programs with comprehensive workforce
planning and analysis;
(c) Recruiting, hiring and retaining a highly competent workforce,
especially in the agency's mission-critical occupations;
(d) Ensuring leadership continuity through the implementation of
recruitment, development, and succession plans;
(e) Sustaining an agency culture that values, elicits, identifies,
and rewards high performance;
(f) Developing and implementing a knowledge-management strategy,
supported by appropriate investment in training and technology; and
(g) Holding the agency head, executives, managers and human
resources officers accountable for efficient and effective human
capital management, in accordance with merit system principles.
Sec. 250.205 Systems and standards.
The five human capital management systems and standards are--
(a) Strategic Alignment. A system led by senior management--
typically the CHCO--to promote the alignment of human capital
management strategies with agency mission, goals, and objectives
through analysis, planning, investment, measurement, and management of
human resources programs. The core standards for the Strategic
Alignment system require an agency to have--
(1) Human capital management strategies and practices that
effectively promote accomplishment of its mission; and
(2) Measurable, observable agency performance results.
(b) Leadership and Knowledge Management. A system that ensures
continuity of leadership by identifying and addressing potential gaps
in effective leadership and implements and maintains programs that
capture organizational knowledge and promote learning. The core
standards for the Leadership and Knowledge Management system require
that agency leaders and managers--
(1) Manage people effectively, ensure continuity of leadership,
sustain a learning environment that drives continuous improvement in
performance;
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(2) Provide a means to share critical knowledge across the
organization; and
(3) Support knowledge management by appropriate investment in
training and technology.
(c) Results-Oriented Performance Culture. A system that fosters a
high-performing organizational culture that offers challenging work and
is supported by effective performance management systems and awards
programs. The core standards for the Results-Oriented Performance
Culture system require an agency to have--
(1) A diverse, results-oriented, high-performing workforce; and
(2) A performance management system that effectively differentiates
between high and low levels of performance and links individual/team/
unit performance to organizational goals and desired results
effectively.
(d) Talent Management. A system that addresses competency gaps,
particularly in mission-critical occupations, by implementing and
maintaining programs to attract, acquire, develop, promote, and retain
quality talent. The core standards for the Talent Management system
require an agency to--
(1) Close skills, knowledge, and competency gaps/deficiencies in
mission-critical occupations; and
(2) Make meaningful progress toward closing skills, knowledge, and
competency gaps/deficiencies in all occupations used in the agency.
(e) Accountability. A system an agency is required to establish
under Sec. 250.207 of this part that contributes to agency performance
and mission accomplishment by measuring, monitoring and evaluating the
results of its human capital management policies, programs, and
activities; by analyzing compliance with merit system principles; and
by identifying and monitoring necessary improvements. The core
standards for the Accountability system require an agency to--
(1) Guide its human capital management decisions by a data-driven,
results-oriented planning and accountability system;
(2) Inform the development of its human capital goals and
objectives by the results of the agency's accountability system, in
conjunction with the agency's strategic planning and performance
budgets; and
(3) Effectively apply its accountability system to promote
effective human capital management in accordance with the merit system
principles and in compliance with Federal laws, rules, and regulations.
(f) OPM may augment the core standards set forth in this section
with additional standards that the Director of OPM will publish in such
form as the Director determines appropriate.
Sec. 250.206 System metrics.
(a) The required metrics that an agency must address focus on the
three systems that implement the human resources life cycle (Leadership
and Knowledge Management, Results-Oriented Performance Culture, and
Talent Management) and include--
(1) Organization metrics;
(2) Employee perspective metrics; and
(3) Merit system compliance metrics.
(b) OPM will provide instructions on the specific metrics an agency
must include in its Human Capital Management Report described in Sec.
250.208.
(c) OPM may provide additional suggested metrics in guidance on
human capital management activities that an agency may use in its
reports.
Sec. 250.207 Human Capital Accountability System.
(a) Each agency must establish and maintain a Human Capital
Accountability System (HCAS), consistent with Sec. 250.205(e), that--
(1) Is formal and documented; and
(2) Is approved by OPM.
(b) For a CHCO agency, the HCAS also must provide for an
independent audit process, subject to full OPM participation and
evaluation, to review periodically the agency's human resources
transactions to ensure legal and regulatory compliance.
(c) An agency must--
(1) Take corrective action to eliminate deficiencies identified in
the independent audit and to improve its human capital management
programs and its human resources processes and practices; and
(2) Report the analysis, HCAS results, and corrective actions taken
to its leadership and OPM.
Sec. 250.208 Human Capital Management Report.
(a) An agency must submit a Human Capital Management Report (HCMR)
to OPM that--
(1) Assesses human capital performance in relationship to the
agency's mission;
(2) Addresses agency human capital programs and initiatives,
including the required metrics specified in OPM instructions; and
(3) Informs the development of human capital management goals and
objectives to support the agency's strategic planning and annual
performance budget formulation processes, as well as the treatment of
human resources results during the annual performance and
accountability reporting process.
(b) A CHCO agency must submit an HCMR annually.
(c) A non-CHCO agency must submit an HCMR in accordance with the
timeframe established by OPM.
4. Revise the introductory text to Sec. 250.301 to read as
follows:
Sec. 250.301 Definitions.
In this subpart--
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[FR Doc. 2011-19844 Filed 8-4-11; 8:45 am]
BILLING CODE 6325-39-P