Federal Personnel Management: Views on Selected NPR Human Resource
Recommendations (Briefing Report, 09/18/95, GAO/GGD-95-221BR).

GAO provided information on federal human resource officials' views on
selected National Performance Review (NPR) human resource
recommendations, focusing on: (1) whether human resource officials favor
the NPR recommendations; (2) whether the officials believe they have the
capacity to assume the additional responsibility envisioned by NPR; and
(3) what oversight is being envisioned by the Office of Personnel and
Management (OPM) and agencies to ensure accountability for merit system
principles.

GAO found that: (1) although human resource officials generally favor
the flexibility that decentralization would give them and their agency
managers, they believe that NPR recommendations would add to their
overall workload; (2) NPR has recommended that OPM develop a new
oversight process to ensure compliance with the merit principles within
a deregulated and flexible environment; (3) most human resource
officials believe that their agencies could adequately oversee their own
human resource operations, but some federal agencies do not have a
performance measurement system to judge the outcomes of their
operations; and (4) OPM is working with agency human resource offices to
develop a set of performance indicators to assist them in monitoring
their activities.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-95-221BR
     TITLE:  Federal Personnel Management: Views on Selected NPR Human 
             Resource Recommendations
      DATE:  09/18/95
   SUBJECT:  Personnel management
             Federal personnel legislation
             Reductions in force
             Monitoring
             Federal agency reorganization
             Federal employees
             Personnel evaluation systems
             Work measurement standards
             Personnel recruiting
             Total quality management
IDENTIFIER:  National Performance Review
             General Schedule System
             TQM
             
**************************************************************************
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Cover
================================================================ COVER


Briefing Report to the Ranking Minority Member, Subcommittee on Civil
Service, Committee on Government Reform and Oversight, House of
Representatives

September 1995

FEDERAL PERSONNEL MANAGEMENT -
VIEWS ON SELECTED NPR HUMAN
RESOURCE RECOMMENDATIONS

GAO/GGD-95-221BR

NPR Human Resource Recommendations

(966625)


Abbreviations
=============================================================== ABBREV

  EEO/AE - Equal Employment Opportunity and Affirmative Employment
  FPM - Federal Personnel Manual
  GPRA - Government Performance and Results Act
  NPR - National Performance Review
  OPM - Office of Personnel Management

Letter
=============================================================== LETTER


B-265839

September 18, 1995

The Honorable James P.  Moran
Ranking Minority Member
Subcommittee on Civil Service
Committee on Government Reform
 and Oversight
House of Representatives

Dear Mr.  Moran: 

The National Performance Review (NPR), the administration's major
management reform initiative, is intended to identify ways to make
the government work better and cost less.  Legislation enacted as a
result of an NPR recommendation requires a reduction of 272,900
full-time equivalent positions in the federal government during
fiscal years 1994 through 1999.  Much of the workforce reduction is
expected to come from administrative functions, such as human
resources.  Some of NPR's recommendations relating to human resource
management would, in part, delegate authority for personnel decisions
from the Office of Personnel Management (OPM) to individual agencies. 
For example, NPR recommends that OPM abolish its central hiring
registers and authorize agencies to establish their own recruitment
and examining programs. 

You expressed concern about whether human resource offices in federal
agencies could assume additional responsibility from OPM, especially
when those same offices may be facing staff cuts.  You also expressed
concern about the possibility of additional flexibility leading to
increased violations of civil service laws.  Accordingly, we agreed
to obtain information on (1) whether human resource officials favored
the recommendations with which they were familiar, (2) if these
officials believed they had the capacity to assume the additional
responsibility envisioned by NPR, and (3) what oversight is being
envisioned by OPM and agencies to ensure accountability for merit
system principles.  On September 7, 1995, we briefed your office on
the results of our review.  This briefing report summarizes the
information presented in that briefing. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

Human resource officials we interviewed in 37 offices of 6 large
agencies generally favored the flexibility the decentralization
envisioned by NPR would give them and their agencies' managers,
although they said some NPR recommendations were of questionable
value.  For example, officials in most offices said they wanted
additional responsibility for recruitment and examining, but were not
in favor of having the federal government's standard job application
form abolished.  (See br.  sec.  II.)

In general, officials we contacted said that the NPR recommendations
would add to their overall workload even though some may actually
save them time.  Most said they could manage the additional workload
with little difficulty.  However, downsizing--especially downsizing
without planning and process streamlining--could hinder their
efforts.  (See br.  sec.  II.)

NPR recognized that some may be concerned that an increase in agency
flexibility might lead to increased occurrences of merit system
violations.  NPR recommended that OPM develop a new oversight process
to ensure compliance with the merit principles within a deregulated
and flexible environment.  The details of this new process were
evolving at the time of our review, but human resource officials we
interviewed had mixed opinions on both the need for oversight and the
entities that should be responsible for conducting oversight
functions.  Although officials told us that their agencies could
adequately oversee their own human resource operations, most said
they did not have a performance measurement system to judge the
outcomes of their operations.  However, in response to an NPR
recommendation directed to OPM, OPM is working with agency human
resource offices to develop a set of performance indicators to assist
them in monitoring their activities.  The Government Performance and
Results Act of 1993 (GPRA) requires agencies to begin using
performance indicators to demonstrate their achievements.  (See br. 
sec.  III.)


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :2

To determine if human resource officials favored NPR recommendations
and had the capacity to assume additional responsibility envisioned
by those recommendations, we discussed NPR's human resource
management recommendations with human resource directors and their
staffs in eight headquarters offices at the Internal Revenue Service
and the Departments of Agriculture, the Army, Defense, the Interior
(Interior and National Park Service offices), and Veterans' Affairs
(Veterans' Affairs and Veterans' Benefits Administration offices). 
We also contacted personnel officers and their staffs at 29 personnel
offices under those agencies.  We judgmentally selected the agencies
to achieve a mix of those with high and low use of OPM's services. 
We selected personnel offices in those agencies on the basis of the
same criteria.  We also obtained geographic dispersion by selecting
offices located throughout the United States.  Because the offices we
contacted were judgmentally selected, the results of our discussions
cannot be projected to the views of human resource officials in other
offices. 

We did not discuss each NPR recommendation with the human resource
officials we contacted.\1 Rather, we asked about any human resource
recommendations and action items with which they were familiar, about
those that they particularly favored or did not favor, and about any
that would add to their workload.  Components of the NPR they
discussed with us included (1) authorizing agencies to establish
their own recruitment and examining programs, (2) reforming the
General Schedule classification and basic pay system, (3) authorizing
agencies to design their own performance management programs, (4)
establishing alternative dispute resolution methods, (5) abolishing
standard job application forms, and (6) abolishing the Federal
Personnel Manual (FPM).  Although some officials we contacted
volunteered opinions on the potential impacts of NPR recommendations,
we did not attempt to gather consistent information on each possible
impact.  Plans to administratively and legislatively implement some
NPR recommendations were evolving at the time of our review.\2 In
addition, agency plans to downsize, streamline processes, and
otherwise reorganize personnel activities were envisioned or in
process.  Accordingly, personnel officials were often unsure how the
changes might affect them.  Appendix II summarizes the results of our
discussions.  We also reviewed the administration's draft human
resource legislative package developed in May 1995.  Such
legislation, called for by NPR, has not yet been submitted to the
Congress. 

To determine OPM and agency oversight plans, we discussed oversight
programs and options with OPM officials and officials in those
agencies and human resources offices mentioned above.  In addition,
we reviewed our past reports on oversight as well as OPM's plans
concerning a new oversight process being developed within the
framework of the merit principles. 

We conducted our review from September 1994 through June 1995 in
accordance with generally accepted government auditing standards. 


--------------------
\1 NPR contains 14 recommendations encompassing 46 action items
relating to reinventing human resource management.  These
recommendations are listed in app.  I. 

\2 GAO previously reported the status of all NPR recommendations and
action items in its report, Management Reform:  Implementation of the
National Performance Review's Recommendations, (GAO/OCG-95-1, Dec. 
5, 1994). 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :3

On August 23, 1995, we obtained oral comments on a draft of this
report from the NPR official responsible for human resource and OPM
issues.  On August 24, 1995, we obtained oral comments from OPM's
Director, Merit Systems Oversight and Effectiveness; Associate
Director, Human Resources Systems Service; Director, Staffing
Reinvention Office, Employment Service; and Chief, Interagency
Advisory Group Secretariat, Communications. 

NPR and OPM officials generally agreed with the information presented
in the report and provided technical clarifications that were
incorporated as appropriate. 


---------------------------------------------------------- Letter :3.1

We are sending copies of this briefing report to the Chairman of the
Subcommittee on Civil Service, House Committee on Government Reform
and Oversight, and the Director of OPM.  Copies will also be made
available to others on request. 

Major contributors to this report are listed in appendix IV.  Please
contact me at (202) 512-3511 if you have any questions concerning
this briefing report. 

Sincerely yours,

Timothy P.  Bowling
Associate Director
Federal Management and Workforce
 Issues


Briefing Section I OBJECTIVES,
SCOPE, AND METHODOLOGY
============================================================== Letter 


   REVIEW OBJECTIVES
------------------------------------------------------------ Letter :4



   (See figure in printed
   edition.)


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :5



   (See figure in printed
   edition.)

To determine if human resource officials favored NPR recommendations
and if they thought they had the capacity to assume additional work
envisioned by NPR, we contacted human resource officials in 8
judgmentally selected headquarters offices in 6 agencies and 29
personnel offices under those agencies.  To determine what oversight
is envisioned, we discussed plans with those officials and reviewed
the Office of Personnel Management's (OPM) plans for a new oversight
program.  We also reviewed our past reports on oversight and
accountability. 


Briefing Section II WILLINGNESS
AND CAPACITY TO IMPLEMENT SELECTED
NPR RECOMMENDATIONS
============================================================== Letter 


   AGENCIES WERE PREPARED TO
   ASSUME RESPONSIBILITY
   ENVISIONED BY NPR
------------------------------------------------------------ Letter :6



   (See figure in printed
   edition.)

Human resource officials we contacted generally favored the NPR
recommendations that they discussed with us.  Officials in 24 of the
37 offices we contacted said that NPR recommendations would increase
their overall workload.  Officials in 14 of these 24 offices said
they could absorb the increases. 


   RECOMMENDED ACTIONS HIGHLIGHTED
   BY HUMAN RESOURCE OFFICIALS
------------------------------------------------------------ Letter :7



   (See figure in printed
   edition.)

NPR contains 14 recommendations encompassing 46 action items relating
to reinventing human resource management.  We did not discuss each
NPR recommendation with the human resource officials we contacted. 
Rather, we asked about any human resource recommendations and action
items with which they were familiar, about those which they
particularly favored or did not favor, and about any that would add
to their workload.  They generally highlighted six recommended
actions. 


   AUTHORIZING RECRUITMENT AND
   EXAMINING FLEXIBILITY
------------------------------------------------------------ Letter :8



   (See figure in printed
   edition.)


      AUTHORIZING RECRUITMENT AND
      EXAMINING FLEXIBILITY
---------------------------------------------------------- Letter :8.1

NPR recommended that OPM abolish central registers and authorize
agencies to establish their own recruitment and examining programs. 
There is presently a statutory requirement for OPM to examine
applicants for positions that are common to agencies.  Officials in
nearly all offices we contacted said they favored the recommended
action, although most recruitment and examining is presently handled
by agencies and not by OPM.  Officials in about half of the offices
we contacted told us that this recommended action would result in
some additional work. 


   REFORMING THE CLASSIFICATION
   SYSTEM
------------------------------------------------------------ Letter :9



   (See figure in printed
   edition.)


      REFORMING THE CLASSIFICATION
      SYSTEM
---------------------------------------------------------- Letter :9.1

NPR recommended that agencies be given greater flexibility in
classifying and paying employees.  It also recommended the removal of
grade level definitions from law and the authorization of paybanding. 

Officials in most offices favored the recommended action; some said
the current system was too complex.  Others cautioned that additional
flexibility might result in increased complaints from those being
paid less than others and could possibly add to their workloads. 
However, most said there would be no workload increase.  Although we
did not specifically ask about the potential efficiency of NPR
recommendations, officials in seven offices told us this
recommendation might save them time. 


   REFORMING PERFORMANCE
   MANAGEMENT PROGRAMS
----------------------------------------------------------- Letter :10



   (See figure in printed
   edition.)


      REFORMING PERFORMANCE
      MANAGEMENT PROGRAMS
--------------------------------------------------------- Letter :10.1

NPR recommended that agencies be allowed to design their own
performance management programs for improvement of individual and
organizational performance.\3 Officials in most offices favored the
recommended action and wanted the flexibility to design systems
tailored to their agencies' specific operations and needs.  Some
specifically wanted to establish pass/fail rating systems or team
assessment programs. 

Most officials we contacted said there would be no workload increase. 
Further, although we did not specifically ask about the potential
efficiency of NPR recommendations, officials in five offices told us
that this recommendation might save them time. 


--------------------
\3 GAO made a similar recommendation in its report entitled Federal
Performance Management:  Agencies Need Greater Flexibility in
Designing Their Systems, (GAO/GGD-93-57, Feb.  24, 1993). 


   ESTABLISHING ALTERNATIVE
   DISPUTE RESOLUTION METHODS
----------------------------------------------------------- Letter :11



   (See figure in printed
   edition.)


      ESTABLISHING ALTERNATIVE
      DISPUTE RESOLUTION METHODS
--------------------------------------------------------- Letter :11.1

NPR recommended that each agency make available to all worksites
methods and options for resolving disputes that are alternatives to
established procedures governing equal employment opportunity
complaints, labor disputes, grievances, and appeals.  It also
recommended that OPM eliminate its regulations governing agency
grievance systems, thus freeing agencies to tailor alternative
dispute resolution techniques to various situations. 

Officials told us they favored the recommended action and would like
to see grievances settled in a less formal and less adversarial
setting.  Officials in only two offices said they thought their
workload might increase. 


   ABOLISHING THE STANDARD
   APPLICATION FORM
----------------------------------------------------------- Letter :12



   (See figure in printed
   edition.)


      ABOLISHING THE STANDARD
      APPLICATION FORM
--------------------------------------------------------- Letter :12.1

As part of a recommendation to create a flexible and responsive
hiring system, NPR recommended abolishing standard application forms. 
On December 31, 1994, OPM abolished the Application for Federal
Employment, Standard Form 171 (SF-171).  In lieu of having to use the
SF-171, applicants for most jobs may now submit resumes.  In
addition, OPM has developed an optional applicant information form,
and agencies, under certain circumstances, may develop their own
supplementary forms. 

Officials in most offices we contacted did not agree with abolishing
the SF-171.  Also, officials in most offices said that the
abolishment of the form would add to their workload.  For example,
some officials we interviewed said that although the standard form
may have been difficult for applicants, it required all the
information agencies needed to judge qualifications.  They feared
that obtaining similar information from applicants through other
means would be more difficult and would take more time.  According to
these officials, this increased difficulty included having to read
and interpret information contained in nonstandard resumes and having
to obtain missing applicant information that had previously been
required on the SF-171.  They were also concerned that applicants
applying for jobs throughout the government would have to complete a
separate application form or resume for each agency applied to rather
than one standard application form. 

Officials who agreed with the abolishment of the standard application
form said that the form was too cumbersome for applicants and
required irrelevant job experience information because of its generic
nature. 


   ABOLISHING THE FPM
----------------------------------------------------------- Letter :13



   (See figure in printed
   edition.)


      ABOLISHING THE FPM
--------------------------------------------------------- Letter :13.1

To eliminate unnecessary red tape and simplify all aspects of the
personnel system, NPR recommended phasing out the entire Federal
Personnel Manual (FPM), which contained OPM's procedures and guidance
related to human resource management.  The FPM was abolished on
December 31, 1993.  OPM has since reissued portions of the FPM as
guidance.  In addition, OPM adopted as regulation certain information
considered to be essential to the orderly continuation of
governmentwide human resources management programs. 

Human resource officials' opinions were mixed on phasing out the FPM. 
While officials in 7 of 8 agency headquarters' offices favored the
abolishment, officials in only 10 of 29 personnel offices agreed with
the abolishment.  Some officials who agreed with phasing out the FPM
said that it was too detailed and inflexible.  Other officials we
interviewed said that it was of great value to them and doubted
whether remaining tools, such as the Code of Federal Regulations,
would be sufficiently detailed for their needs.  Some were concerned
that grievances would increase because consistency in application of
personnel laws may be compromised due to differing interpretations of
the law. 

Some officials said the impact of abolishing the FPM will be minimal
because they will continue to use it until adequate substitutes are
available.  Officials in most offices said they did not believe their
workloads would increase as a result of the abolishment of the
manual. 


   STAFF REDUCTIONS MAY HINDER
   CAPACITY TO ACCEPT ADDITIONAL
   WORK
----------------------------------------------------------- Letter :14



   (See figure in printed
   edition.)

Human resource officials said that in a static environment, NPR
recommendations could be implemented with little difficulty. 
However, human resource activities in many agencies are being
downsized.  Some agencies plan to reduce human resource staff to a
ratio of 1 to every 100 employees served.  In some cases, this will
reduce human resource staff by nearly half.  Process streamlining
based on strategic and workforce planning will be necessary for
agencies to cope with downsizing. 


   CONSOLIDATING OPERATIONS CAN
   INCREASE WORKLOAD CAPACITY
----------------------------------------------------------- Letter :15



   (See figure in printed
   edition.)


   AUTOMATING FUNCTIONS CAN
   INCREASE WORKLOAD CAPACITY
----------------------------------------------------------- Letter :16



   (See figure in printed
   edition.)

To help meet human resource management needs in an era of downsizing,
OPM and other agencies have developed a variety of automated systems. 
OPM has used automated examining systems for 18 years and is offering
automated examining services to agencies.  For example, in 1992 OPM
piloted a microcomputer-assisted rating system that scans
machine-readable application questionnaires, determines applicant
eligibility, and assigns scores to applicants.  OPM has been offering
this system to agencies on a fee basis to examine internal and
external candidates.  Personnel officials using the system informed
us that it is less costly than using their own staff to examine
applicants.  For example, a headquarters' human resource official
told us that his department could reduce its human resource staff by
170 employees and save about $6 million a year by purchasing this
examination service from OPM.  We were also told that this system
would be of great value to offices that had previously relied on OPM
for much of their examining and hiring. 

In 1994, an interagency task force started testing another system
that allows employees to make changes to certain personnel records
through a touch-tone telephone or touch screen.  For example,
employees will be able to make changes to their tax withholdings, pay
allotments, and addresses without the involvement of human resource
staff.  According to OPM, this initiative has the potential for
enabling agency personnel offices to eliminate the processing of up
to 50 percent of their personnel transactions. 

Managers will likely have more responsibility for human resource
activities such as job classification if NPR recommendations are
implemented.  Officials we interviewed told us that automation will
assist them in assuming more responsibility.  For example, one agency
is developing an automated system for human resource staff as well as
managers that will assist in the development of documents that
integrate position information used for classification, staffing,
performance management, and training.  (Automation is discussed in
more detail in app.  III.)


Briefing Section III OVERSIGHT
============================================================== Letter 


   OPM IS IMPLEMENTING A NEW
   OVERSIGHT PROCESS
----------------------------------------------------------- Letter :17



   (See figure in printed
   edition.)


   WHAT IS THE PURPOSE OF
   OVERSIGHT? 
----------------------------------------------------------- Letter :18



   (See figure in printed
   edition.)


   WHO HAS BEEN RESPONSIBLE FOR
   OVERSIGHT? 
----------------------------------------------------------- Letter :19



   (See figure in printed
   edition.)


   WHY IS OVERSIGHT A CONCERN? 
----------------------------------------------------------- Letter :20



   (See figure in printed
   edition.)


   INDEPENDENT OVERSIGHT NOT SEEN
   AS NEEDED
----------------------------------------------------------- Letter :21



   (See figure in printed
   edition.)


      INDEPENDENT OVERSIGHT NOT
      SEEN AS NEEDED
--------------------------------------------------------- Letter :21.1

Human resource officials we contacted said that if they and their
agencies were given the flexibility and responsibility for
establishing human resource programs to meet their needs, independent
oversight would not be needed.  These officials disagreed about the
need for oversight and the responsibility for conducting reviews of
human resource activities.  Some said that external oversight was
unnecessary and that employee unions and special interest groups
would keep inappropriate actions to a minimum.  Others, however, said
they were concerned that an absence of more formal oversight could
result in drastic inconsistencies in human resource activities
throughout the government and eventually cause confusion among
employees and the public. 

Although personnel officials in 35 of 37 offices we contacted told us
that they could adequately oversee their own human resource
operations, our discussions revealed that only 16 of these 37 offices
had performance measurement systems needed to review human resource
operations. 


   MONITORING TO BE BASED ON
   OUTCOMES
----------------------------------------------------------- Letter :22



   (See figure in printed
   edition.)


      MONITORING TO BE BASED ON
      OUTCOMES
--------------------------------------------------------- Letter :22.1

In response to an NPR recommendation directed to OPM, OPM is
assisting agencies in developing and using performance measures to
judge adherence to merit principles in their human resource
activities.  As part of its Good Government Framework, OPM is
stressing the benefits of evaluating outcomes to internally monitor
human resource activities and is deemphasizing adherence to specific
processes.  As of May 1995, OPM had obtained feedback from agencies
on the types of performance indicators that should be monitored. 

In addition, the Government Performance and Results Act of 1993
(GPRA), Public Law 103-62, will hold agencies accountable for
achieving results and stresses the importance of outcomes as opposed
to processes.  Although the act emphasizes mission-related outcomes,
its intent--reviewing outcomes rather than processes--is consistent
with OPM's Good Government Framework. 


   WHO WILL CONDUCT OVERSIGHT IF
   NPR RECOMMENDATIONS ARE
   IMPLEMENTED? 
----------------------------------------------------------- Letter :23



   (See figure in printed
   edition.)


      WHO WILL CONDUCT OVERSIGHT
      IF NPR RECOMMENDATIONS ARE
      IMPLEMENTED? 
--------------------------------------------------------- Letter :23.1

Although agencies will still be accountable to their
customers--Congress, the courts, employees, unions, and the
public--OPM will retain a modified oversight role under the NPR
recommendations.  It will be responsible for evaluating outcomes and
making recommendations to agency heads.  It will also continue
investigating complaints of merit system abuses.  OPM will focus its
efforts more on evaluating outcomes rather than processes. 


Briefing Section IV GAO
OBSERVATIONS
============================================================== Letter 


   OBSERVATIONS
----------------------------------------------------------- Letter :24



   (See figure in printed
   edition.)


      OBSERVATIONS
--------------------------------------------------------- Letter :24.1

Under a more deregulated, flexible approach, employees, supervisors,
and managers will be expected to do more with fewer resources and be
held more accountable for results.  If they are empowered to devise
creative solutions to reduce costs, given the authority to
restructure the way they work, and have the resources needed to
provide training in new skills, then NPR objectives could more likely
be met.  If, however, agencies are asked to do more with less prior
to process streamlining, then organizational effectiveness may be
more difficult to achieve. 

In testimony before the Senate Committee on Governmental Affairs on
May 17, 1995,\4 we reported that agencies have the primary
responsibility for ensuring that their programs are well-managed,
funds are properly spent, and statutory objectives are being
achieved.  GPRA forms the basis for the development of agency
performance information.  Such data could be used by the agencies to
manage their responsibilities and could serve as the basis for
congressional hearings, along with information from GAO, other
congressional agencies, and the Inspectors General.  In this way,
Congress would have a comprehensive picture of each agency's
performance in human resource management. 


--------------------
\4 Government Reorganization:  Issues and Principles,
(GAO/T-GGD/AIMD-95-166, May 17, 1995). 


NPR RECOMMENDATIONS AND ACTION
ITEMS:  REINVENTING HUMAN RESOURCE
MANAGEMENT
=========================================================== Appendix I


      HRM01:  CREATE A FLEXIBLE
      AND RESPONSIVE HIRING SYSTEM
------------------------------------------------------- Appendix I:0.1

Action Items

1.  Authorize agencies to establish their own recruitment and
examining programs.  Abolish central registers and standard
application forms. 

2.  Allow federal departments and agencies to determine that
recruitment shortages exist and directly hire candidates without
ranking. 

3.  Reduce the number of competitive service appointment types to
three. 

4.  Permit nonpermanent employees to compete for permanent positions
under agency procedures for internal placement. 

5.  Abolish the time-in-grade requirement.  Create a general
qualifications framework that permits agencies to augment or modify
qualification standards for both internal and external placement
actions. 

6.  Eliminate all statutory rules on detailing employees to temporary
assignments. 

7.  Create a governmentwide employment information system to inform
the public of job opportunities.  Coordinate the development and
operation of common automated systems to facilitate agency staffing
policies and operations. 


      HRM02:  REFORM THE GENERAL
      SCHEDULE CLASSIFICATION AND
      BASIC PAY SYSTEM
------------------------------------------------------- Appendix I:0.2

Action Items

1.  Remove all grade-level classification criteria from the law while
retaining the 15-grade structure. 

2.  Provide agencies with flexibility to establish broadbanding
systems built upon the General Schedule framework. 

3.  Modify the standard 15-grade classification system that applies
to those employees not covered by a broadbanding system. 

4.  Provide agencies under the standard 15-grade system with
additional flexibilities in setting base pay rates. 

5.  Establish reporting requirements that apply to both the modified
standard system and any broadbanding system. 


      HRM03:  AUTHORIZE AGENCIES
      TO DEVELOP PROGRAMS FOR
      IMPROVEMENT OF INDIVIDUAL
      AND ORGANIZATIONAL
      PERFORMANCE
------------------------------------------------------- Appendix I:0.3

Action Item

1.  Authorize agencies to design their own performance management
programs. 


      HRM04:  AUTHORIZE AGENCIES
      TO DEVELOP INCENTIVE AWARD
      AND BONUS SYSTEMS TO IMPROVE
      INDIVIDUAL AND
      ORGANIZATIONAL PERFORMANCE
------------------------------------------------------- Appendix I:0.4

Action Items

1.  Authorize agencies to develop their own incentive programs. 

2.  Encourage agencies to establish productivity gainsharing programs
called Federal Performance Sharing to support the reinvention and
change effort. 


      HRM05:  STRENGTHEN SYSTEMS
      TO SUPPORT MANAGEMENT IN
      DEALING WITH POOR PERFORMERS
------------------------------------------------------- Appendix I:0.5

Action Items

1.  Reduce by half the time required to terminate federal managers
and employees for cause.  Make other improvements in the systems for
dealing with poor performers. 

2.  Develop a culture of performance that supports supervisors'
efforts to deal with poor performers. 

3.  Improve supervisors' knowledge and skills in dealing with poor
performers. 


      HRM06:  CLEARLY DEFINE THE
      OBJECTIVE OF TRAINING AS THE
      IMPROVEMENT OF INDIVIDUAL
      AND ORGANIZATIONAL
      PERFORMANCE; MAKE TRAINING
      MORE MARKET-DRIVEN
------------------------------------------------------- Appendix I:0.6

Action Items

1.  Deregulate training and make it more responsive to market
sources. 

2.  Give agencies the flexibility to use savings realized from
reinvention to increase their investment in employee training and
development. 


      HRM07:  ENHANCE PROGRAMS TO
      PROVIDE FAMILY-FRIENDLY
      WORKPLACES
------------------------------------------------------- Appendix I:0.7

Action Items

1.  Implement family-friendly workplace practices while continuing to
ensure accountability for quality customer service. 

2.  Provide telecommunications and administrative support necessary
for employees participating in flexiplace and telecommuting work
arrangements. 

3.  Expand the authority to establish and fund dependent care
programs. 

4.  Allow employees to use sick leave to care for dependents. 

5.  Give returning employees credit for previously accrued unused
federal sick leave. 

6.  Expand the demonstration project authority to allow projects on
employee benefits and leave. 

7.  Reauthorize voluntary leave transfer/bank programs. 


      HRM08:  IMPROVE PROCESSES
      AND PROCEDURES ESTABLISHED
      TO PROVIDE WORKPLACE DUE
      PROCESS FOR EMPLOYEES
------------------------------------------------------- Appendix I:0.8

Action Items

1.  Eliminate jurisdictional overlaps. 

2.  All agencies should establish alternative dispute resolution
methods and options for the informal disposition of employment
disputes. 


      HRM09:  IMPROVE
      ACCOUNTABILITY FOR EQUAL
      EMPLOYMENT OPPORTUNITY GOALS
      AND ACCOMPLISHMENTS
------------------------------------------------------- Appendix I:0.9

Action Item

1.  Charge all federal agency heads with the responsibility for
ensuring equal opportunity and increasing integration of qualified
women, minorities, and persons with disabilities into all levels and
job categories, including middle and senior management positions. 


      HRM10:  IMPROVE INTERAGENCY
      COLLABORATION AND
      CROSS-TRAINING FOR HUMAN
      RESOURCE PROFESSIONALS
------------------------------------------------------ Appendix I:0.10

Action Items

1.  Establish an Interagency Equal Employment Opportunity and
Affirmative Employment (EEO/AE) Steering Group under the joint chair
of the Equal Employment Opportunity Commission and OPM. 

2.  Require appropriate cross-training for human resource management
professionals. 

3.  Combine all equal opportunity and affirmative employment reports
into one comprehensive assessment of the total workforce EEO/AE data. 

4.  Modify the Central Personnel Data File to enable total automation
of the EEO/AE data reporting requirements. 


      HRM11:  STRENGTHEN THE
      SENIOR EXECUTIVE SERVICE SO
      THAT IT BECOMES A KEY
      ELEMENT IN THE
      GOVERNMENTWIDE CULTURE
      CHANGE EFFORT
------------------------------------------------------ Appendix I:0.11

Action Items

1.  Create and reinforce a corporate perspective within the Senior
Executive Service that supports governmentwide culture change. 

2.  Promote an agency corporate executive level succession planning
model. 

3.  Enhance voluntary mobility within and between agencies for top
senior executive positions in government. 


      HRM12:  ELIMINATE EXCESSIVE
      RED TAPE AND AUTOMATE
      FUNCTIONS AND INFORMATION
------------------------------------------------------ Appendix I:0.12

Action Items

1.  Phase out the entire Federal Personnel Manual and all agency
implementing directives. 

2.  Replace the Federal Personnel Manual and agency directives with
automated personnel processes, electronic decision support systems,
and manuals tailored to user needs. 

3.  Identify and develop useful accountability measures that can be
automated. 


      HRM13:  FORM
      LABOR-MANAGEMENT
      PARTNERSHIPS FOR SUCCESS
------------------------------------------------------ Appendix I:0.13

Action Item

1.  The president should issue an Executive Order that identifies
labor-management partnership as a goal of the executive branch and
establishes the National Partnership Council. 


      HRM14:  PROVIDE INCENTIVES
      TO ENCOURAGE VOLUNTARY
      SEPARATIONS
------------------------------------------------------ Appendix I:0.14

Action Items

1.  Provide departments and agencies with the authority to offer
separation pay. 

2.  Decentralize the authority to approve early retirements. 

3.  Authorize departments and agencies to fund job search activities
and retraining of employees scheduled to be displaced. 

4.  Expand outplacement services. 

5.  Limit annual leave accumulation by senior executives to 240
hours. 


HUMAN RESOURCE OFFICIALS' VIEWS OF
NPR RECOMMENDATIONS
========================================================== Appendix II

We interviewed human resource representatives in 8 headquarters'
offices and 29 human resource offices to determine whether they
favored NPR recommendations and whether they believed the
recommendations would increase their workloads.  The following tables
summarize their responses to recommended actions on authorizing
recruitment and examining flexibility, reforming the classification
system, reforming performance management programs, establishing
alternative dispute resolution methods, abolishing standard
application forms, and abolishing the Federal Personnel Manual (FPM). 



                 Authorizing Recruitment and Examining
                              Flexibility

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            8      27              35
Do not favor                     0       2              2
No opinion on                    0       0              0
 recommendation
Increase in workload             0      18              18
No increase in workload          7       9              16
Do not know impact on            1       2              3
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------


                  Reforming the Classification System

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            8      26              34
Do not favor                     0       2              2
No opinion on                    0       1              1
 recommendation
Increase in workload             0       5              5
No increase in workload          4      15              19
Do not know impact on            4       9              13
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------


                    Reforming Performance Management
                                Programs

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            7      26              33
Do not favor                     0       3              3
No opinion on                    1       0              1
 recommendation
Increase in workload             0       1              1
No increase in workload          3       8              21
Do not know impact on            5      10              15
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------


                    Establishing Alternative Dispute
                           Resolution Methods

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            7      23              30
Do not favor                     0       2              2
No opinion on                    1       4              5
 recommendation
Increase in workload             0       2              2
No increase in workload          4      15              19
Do not know impact on            4      12              16
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------


                 Abolishing Standard Application Forms

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            3      10              13
Do not favor                     3      18              21
No opinion on                    2       1              3
 recommendation
Increase in workload             4      20              24
No increase in workload          1       7              8
Do not know impact on            3       2              5
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------


                           Abolishing the FPM

                                     Human
                                    resour
                                        ce
                            Headqu  office
Responses                   arters       s            Total
--------------------------  ------  ------  ==========================
Favor                            7      10              17
Do not favor                     0      19              19
No opinion on                    1       0              1
 recommendation
Increase in workload             3       7              10
No increase in workload          2      20              22
Do not know impact on            3       2              5
 workload
======================================================================
Total responding                 8      29              37
----------------------------------------------------------------------

EXAMPLES OF HUMAN RESOURCES
AUTOMATION
========================================================= Appendix III


      ACCESS TO FEDERAL EMPLOYMENT
      INFORMATION
----------------------------------------------------- Appendix III:0.1

To provide one source for those seeking governmentwide employment
information, OPM developed the Federal Employment Information
Highway.  Job seekers may access the Highway to conduct job research
and find out about federal career opportunities through the use of
four systems. 

  The Touch Screen Computer system provides potential job applicants
     with daily updated federal employment information.  As of
     December 1994, 115 touch screen computers were in use across the
     country. 

  Career America Connection is a nationwide voice response telephone
     system that receives an average of more than 20,000 calls per
     month from callers seeking federal employment information 24
     hours a day, 7 days a week. 

  Federal Employment Information System is a network/personal
     computer based software package designed especially for
     employment information providers responding to telephone,
     walk-in, or correspondence inquiries from employees and the
     public. 

  Federal Job Opportunities Board is a computer-based bulletin board
     system that receives an average of more than 24,000 calls per
     month from callers seeking federal employment information 24
     hours a day, 7 days a week.  Job seekers may also contact OPM on
     Internet. 


      APPLICATION AND EXAMINING
      SYSTEMS
----------------------------------------------------- Appendix III:0.2

OPM has been using automated examining processes for about 18 years. 
These processes are being offered to agencies for their own use and
may be of greater benefit if the NPR recommendation to turn over all
examining to agencies is implemented.  Examples of systems
implemented within the last few years include: 

  The Telephone Application Processing System allows job-seekers to
     apply for federal employment directly through a touch-tone
     telephone.  Voice prompts direct callers to respond to questions
     on education, experience, licenses, occupational specialties,
     and veterans' status.  This process eliminates the costly and
     more time consuming process of manually reviewing job
     applications and can verify employment qualifications soon after
     an application is filed. 

  The Microcomputer Assisted Rating System allows human resource
     staff to develop applicant screening tools for specific
     vacancies and develop customized examining processes suiting
     their specific hiring needs.  Up to 50 machine readable
     applications can be scanned and evaluated per minute. 


      CHANGES TO PERSONNEL ACTIONS
      THROUGH EMPLOYEE EXPRESS
----------------------------------------------------- Appendix III:0.3

The Employee Express Inter-Agency Task Force was formed in 1994 to
define the technology, cost-benefits, and options available to
provide current employees with immediate access to information about
their own personnel and payroll records and the ability to directly
process those actions which are at their discretion.  Such actions
would include changes to health benefits, Thrift Savings, pay
allotments, tax withholding, bonds, and addresses.  The technologies
used will include use of touch screen kiosks and touch-tone
telephones with toll-free numbers to enable employees to make changes
from their homes or offices.  The Employee Express system will
empower employees, reduce processing time and effort, and remove a
layer of personnel office activities.  According to OPM, this
initiative has the potential for enabling agency personnel offices to
eliminate up to 50 percent of their personnel transactions, resulting
in tremendous savings governmentwide. 


MAJOR CONTRIBUTORS TO THIS
BRIEFING REPORT
========================================================== Appendix IV

GENERAL GOVERNMENT DIVISION,
WASHINGTON, D.C. 

Steven J.  Wozny, Assistant Director, Federal Management and
Workforce
 Issues
Michael J.  O'Donnell, Advisor

DENVER FIELD OFFICE

Joseph J.  Buschy, Evaluator-in-Charge
Richard Y.  Horiuchi, Staff Evaluator

