[Opm the Year in Review 1982]
[From the U.S. Government Publishing Office, www.gpo.gov]

OPM______________________
The Year in Review 1982
^0	ILLINOIS INSTITUTE @F TECHNOLOGY
KEMPER LIBRARY
MAY 2 1 1984
GOVERNMENT PUBLICATIONS
DEPOSITORY 0146-A
United States Office of Personnel Management
Office of Public Affairs
OPM Document 137-38-3 November 1983

THE YEAR IN REVIEW, 1982 INTRODUCTION
When President Reagan assumed the nation's highest office in January, 1981, he made two promises to the American people: to reorient government priorities and "to make government work."
Significant progress has been made on both fronts. Yet, with the world's largest work force — 2.1 million people working in 24,500 installations worldwide — making America's central government work effectively is a monumental task.
We have good people working for the government, with the highest standards of professionalism, dedication and education. But we have poor, outmoded administrative systems under which they must perform. Unfortunately, these systems are not only inefficient, but they too often actually encourage inefficiency and poor administrative practices. They provide disincentives for good work.
By and large, media reporting has been unfair to the 2.1 million men and women serving this nation in the civil service. The people in the civil service are not the problem. The system itself, by not providing appropriate positive rewards for good performance, and by encouraging poor performance is the problem.
As President Reagan's chief personnel officer, I have been working to make the personnel system as good as the people who work for that system. Presented in the pages that follow is a comprehensive, though not exhaustive, look at the past year in the civil service. In this report to the President, the Congress and the American people, I have sought to portray the manner in which this agency has gone about its part of fulfilling the promise "to make government work." There have been victories and there have been setbacks. Perhaps at no other time in the history of the Civil Service has this agency or its predecessor been the subject of such widespread public attention, controversy and concern.
In the Centennial year of its existence, however, such new-found attention
can only serve to strengthen the civil service. Apathy rarely, if ever, leads to reform, revival or longevity on the part of institutions. That the civil service has survived for a century is a tribute to the fundamental soundness of its basic merit principles. That the Civil Service is now a major issue on the public agenda bodes well that, through constructive debate and reform, the system can look forward to its Bicentennial Celebration as a model for the world of how "to make government work" for the people we in government are solemnly pledged to serve.
Dr. Donald J. Devine Director
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FULFILLING THE PRESIDENTS PROMISE TO REDUCE THE SIZE OF GOVERNMENT
One of the President’s major promises was to reduce the size of the domestic federal government, in its spending and regulatory powers, and in its number of employees. During 1982, the Office of Personnel Management (OPM) continued to manage the orderly reduction of the non-defense work force, both judged in terms of simple numbers and by the humane means it has used in that reduction.
As of the end of 1982, the non-defense, civilian work force of the Executive branch had been reduced by 113,105 employees, the largest decrease since World War II. By this reduction, the President redeemed his electoral pledge. And more than 90 percent of that reduction was achieved through normal processes of attrition, early retirement and other non-reduction-in-force procedures.
According to the Merit Systems Protection Board, reductions-in-force (RIFs), "through separations, downgrades or lateral reassignments directly affected a much smaller number of employees than was originally anticipated -- 12,594 or less than one percent of the full-time permanent work force."
While in human terms, any RIF is an unpleasant alternative to normal attrition processes, in 1982 OPM continued to ensure that employees separated from the civil service by a RIF action were helped in obtaining employment elsewhere as soon as possible. Through the Voluntary Inter-governmental Placement Program (VIPP), the Displaced Employee Program (DEP), the Interagency Placement Assistance Program (IPAP), and job fairs OPM has helped thousands of RIFed employees find work inside and outside government.
From April 1981 through March 1983 OPM programs helped 4,800 displaced federal employees find jobs in the private sector, state and local governments and in other federal agencies. Agency-operated programs placed 18,000 employees, whose jobs were abolished, in other vacancies where their skills were needed.
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To aid workers who remain unemployed, OPM has broadened its placement assistance efforts by widening the geopraphic area and increasing the number of positions for which employees may be considered.
Staff reductions in 1981 and 1982 highlighted a need for more manageable and equitable reduction-in-force procedures governmentwide. Responding to that need, in the Spring of 1982, OPM initiated a full scale review of RIF policies which included soliciting ideas from all interested parties through the Federal Register.
It also became clear in 1982 that existing RIF procedures had a disproportionately negative impact on women and minorities. Minorities were separated at three times their rate in the work force. Women at higher grades, with an average tenure of under three years, also received little protection from seniority RIF rules, being seperated at twice the level.
This prompted OPM to thoroughly analyze RIF regulations and to recommend to the President, reforms to place greater emphasis on job performance as a criterion in RIF actions, thereby, giving more protection in RIFs to better performing women and minorities. Those reforms soon became official proposals of the President, serving, in part, to fulfill his promise to make government more efficient and comparable to private sector management practices.
Administration policy regarding RIF procedures rests upon five principles:
1.	Use of RIF only when required by budget or agency mission;
2.	Proper reliance on attrition, with adequate communication to employees;
3.	Early and comprehensive planning;
4.	Compliance and evaluation; and
5.	Assistance to RIF-affected employees enabling them to take advantage of alternative employment opportunities.
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OPM has worked to meet those principles, and is determined to implement the popular demand for a smaller federal goverment, but to do so in the most humane manner for its employees. This past year’s results, as confirmed by the independent MSPB, were gratifying, on the part of agencies, employees and OPM. Yet, improvements can be made. OPM is already implementing tighter controls on placement activties, giving employees an even better chance for jobs during necessary RIFs. A smaller, more efficient government with high employee morale is our goal, and throughout 1982 we moved closer to its realization.
STAFFING
Meeting the staffing needs of the federal government is a large part of OPM's day-to-day work. In 1982, as part of its nationwide staffing program, OPM answered 3.8 million job inquiries. In subsequent steps of its staffing function, OPM evaluated 933,500 applications, tested 244,000 competitors and referred 443,711 candidates to agencies for employment consideration, while agency examining units evaluated 313,379 applications, leading to 35,968 placements.
During 1982, OPM was also to lower its per case processing costs in the staffing area. Adjusted to 1982 dollars, OPM's direct labor cost per selection was reduced from $168.20 to $166.00, for a total savings of nearly $165,000.
To improve federal employment opportunities for spouses of U.S. military and diplomatic personnel, in 1982 OPM instituted Executive Order 12362. Under this authority, dependents of overseas U.S. personnel can establish career employment status, qualifying for direct appointment when they return to the United States.
Increasing opportunities for part-time federal employment was also a priority OPM effort in 1982. Under its program designed to encourage part-time hiring, since 1979 OPM has been instrumental in establishing 10,000 new part-time -5-
positions, opening jobs to individuals with child care commitments or physical disabilities. This effort has been of particular benefit to women who make up 70 percent of the career part-time work force.
In the area of examinations, in August 1982, OPM issued final regulations abolishing the Professional and Administrative Career Examination (PACE) and created an excepted Schedule B authority for external appointments, in accordance with a 1981 court consent decree.
Under the new regulations, agencies must first consider internal job candidates before requesting OPM authority to make excepted, outside appointments. Twelve Schedule B authorizations were issued by OPM in 1982, covering 1,441 positions in 8 agencies.
In other efforts to revise personnel qualification measurements during 1982, OPM's personnel research and development activities received widespead professional recognition for strengthening the merit system. These efforts led to the development of a model examination for computer specialists to replace the old PACE examination for this area. For the future, new methods such as reading and mathematics job samples and structural interviews will also be used by OPM as alternatives to PACE examining is developed for other areas.
TRAINING
Assuring that federal departments and agencies conduct efficient and cost-effective training programs is met by OPM through policy guidance, resource coordination, and reimbursable training services.
In the area of resource coordination, in 1982 OPM published the Resource Sharing Guide, providing a comprehensive list of course materials, staff, and government facilities available to agencies at little or no cost. By minimizing -6-
interagency program duplication and identifying unshared training resources, the Sharing Guide, while saving money, has also helped agencies find and use those resources best meeting their training requirements.
Also, as part of its cost savings and resource sharing efforts during 1982, OPM distributed governmentwide survey data on training evaluation methods to assist agencies in identifying those methods best suited to their needs.
In policy guidance, OPM's efforts are also directed toward holding down costs while improving the quality and efficiency of training programs. In 1982, this included guidance in managing training programs during times of fiscal constraint. Aimed at focusing limited resources on the government's highest priority training needs, this guidance included a model control system for long-term training and standardized per diem payment. Currently under development is guidance for assuring efficient management of agency programs by eliminating expenditures for training unrelated to employees' present or projected future jobs.
Sixteen regional and Washington Training Centers, three Executive Seminar Centers and the Federal Executive Institute represent OPM's commitment to furnish federal employees at all levels with the knowledge and skills to carry out agency goals. In FY '82, this nationwide training system played a key role in implementing Administration initiatives by:
o reinforcing Reform '88 principles to reduce waste, fraud and abuse and to streamline management and administrative systems;
o continuing fulfillment of the Civil Service Reform Act;
o applying proven private sector methods to the federal work force; and
o developing needed work force skills necessary for new programs.
Organization and management of OPM's 450-course training curriculum also aids in economically meeting government's training needs. Strong central direction -7-
and a network of training centers allow OPM to take training where it is needed, reducing travel costs and avoiding the high cost of duplicating course development.
In FY '82 nearly 190,000 employees attended OPM training with most of the 8,200 course sessions conducted outside of Washington and the regional office cities. Annually OPM takes its training to over 450 locations in the United States.
A key factor in the effective management of OPM's reimbursable training program is achieved by running it like a business. Because these programs are not funded by OPM, but, rather, by the agencies using the program, providing the best service at the lowest cost has been key in controlling costs. This simple business principle has allowed OPM to better meet the training needs of other agencies at lower cost than found elsewhere -- $7.00 per OPM training hour versus $9.00-$11.00 per training hour through non-government sources.
Providing high quality courses at the lowest possible cost makes OPM a positive force in implementing the Administration's government priorities and developing the work force to do the best job possible.
CIVIL SERVICE CENTENNIAL CELEBRATION
As the President's personnel management agency, OPM is chiefly responsible for generating public awareness of the 1983 Centennial celebration of the creation of the civil service. Among the Centennial projects were:
1.	Presidential Proclamation -- A special Presidential proclamation on January 16, 1983, the Centennial of the signing of the Pendleton Act.
2.	Centennial Book -- A book to follow the 75th anniversary's "Portrait of an Ideal," which provided a general overview of civil service history, but which did not integrate its impact on America's national development.
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The revised work should be of far greater general interest, starting with American political history from the nation's founding and relating it to the development of the civil service. The book is to be published in hard and soft covers and is planned to be made available during the Centennial year.
3.	Centennial Exhibits -- Portable exhibits detailing through photographs, prints and other materials the history of the civil service, were produced by OPM's Office of Public Affairs in conjunction with the Department of Agriculture. Arrangements to display the exhibits throughout the nation in 1983 in government agencies and private institutions were begun in 1982.
4.	Centennial Postage Stamp — OPM began work in 1982 with the United States Postal Service on a Civil Service Centennial commerative postage stamp. A design for the stamp was commissioned through OPM during the year with a joint OPM-Postal Service unveiling ceremony planned for 1983.
5.	Public Service Announcements -- Public service announcements (PSAs), highlighting the Centennial year were produced for distribution during 1982.
PROTECTING THE INTEGRITY OF THE MERIT SYSTEM AND ITS PRINCIPLES
Throughout 1982, OPM sought to strengthen the Merit System Principles codified in law by the 1978 Civil Service Reform Act through oversight and implementation of the government's personnel system.
The agency strengthened significantly the capabilities of its Compliance and Evaluation Division. By streamlining personnel office evaluations in 1982, OPM was able to undertake more evaluations at less cost, conducting 226 such evaluations, at a unit cost of $13,113. This represents a 38 percent increase in evaluations over 1981 (226 vs. 164) with an 18 percent decrease in cost per evaluation ($13,113 vs. $15,908).
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During 1982, OPM also: increased by 20 percent its total executive personnel program evaluations, conducted 108 evaluations of delegated personnel authority, 20,316 personnel investigations and 234,371 national agency checks and inquiries. Plans were made for a reform of the evaluation system in 1983, to utilize more modern statistical evaluations rather than the current case methods.
In its most noted investigation, in late 1982, OPM looked at the merit system personnel practices pursued in a Department of Energy RIF. These efforts led Director Devine to order 19 separate "corrective actions" hailed by Jean Couturier of the Senior Executive Association as "outstanding, fair and thorough work."
As required by the Merit Principles of the Civil Service Reform Act, OPM also moved during 1982 to strengthen agencies in dealing with problem employees. Guidance was issued to agencies through the Federal Personnel Manual (FPM) implementing penalty tables for employee misconduct. Also, in action upheld by the MSPB and federal courts, OPM stood for the agency's position with regard to disciplining and removing problem employees.
STRENGTHENING VETERANS' PREFERENCE IN FEDERAL PERSONNEL PRACTICES
During 1982, OPM continued President Reagan's policy of strengthening the federal personnel management system's emphasis upon veterans' preference. During the year, Veteran Readjustment Appointments (VRA) totalled nearly 20,000 -- the third highest number of such appointments in the program's 12 year history. This success led to an increase in the total number of Vietnam-era veterans employed through VRA appointments to over 180,000.
OPM also strongly encouraged the use of the VRA program to combine education and training with actual work experience for disadvantaged and disabled Vietnam veterans. In this regard, hiring of severely disabled veterans also -10-
dramatically increased during 1982, as a total of 3,000 disabled veterans were added to federal employment rosters, an 80 percent increase over 1981.
In addition to these quite tangible efforts on behalf of veterans, OPM has continued its policy of regular meetings and consultations with representatives of veterans' organizations to discuss matters of mutual interest, to assess impact of OPM policies on veterans in the federal government and to promote further veteran employment programs through OPM federal job information centers, directives, pamphlets, training sessions and on-site agency evaluations.
In conjunction with the November 1982 Veterans Week activities in Washington, D.C., OPM held an Open House with job information seminars and counselors to explain veterans preference policies in federal hiring actions.
In assuming the federal government's responsibility of Veteran Affirmative Action programs, the agency reviewed all Executive branch departments and agencies. This review resulted in the issuance of new directives requiring all departments and agencies to develop and implement an annual plan governing recruitment, placement and advancement of disabled veterans. The agency also extended Veterans' Preference to the President's Management Intern Program.
OPM has consistently urged federal department and agency heads to recognize the needs of America's veterans and to give them the special consideration they deserve in federal personnel matters. "When opportunities present themselves," the Director said, "we must not forget those who have given so much in the defense of freedom and we must not forget that, once those disabled veterans are employed, they deserve every opportunity for career advancement as loyal public servants."
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CIVIL SERVICE RETIREMENT SYSTEM
With an unfunded liability of half a trillion dollars -- half again the total national debt -- the Civil Service Retirement System (CSRS), serving 2.7 million federal employees and 1.9 million federal retirees and survivors, is a government program desperately in need of fundamental reform. Throughout 1982, OPM continued to improve the program's day-to-day administration while developing long-term reform proposals to restore financial stability and integrity to CSRS.
To improve the efficiency and effectiveness of CSRS, the agency upgraded the program's claims processing procedures. OPM reduced the system's claims backlog from 1981's 100,000 backlogged case level to a normal stabilized "caseworkin-progress" level of approximately 25,000. In improved service delivery, OPM's Compensation Division reduced the average total time required to process a claim from 140 days to 52 days in 1982, a reduction of 67 percent.
To attain such dramatic results, OPM designed new application forms, conducted numerous on-site evaluations, increased interagency training and introduced greater use of automated data processing equipment.
In disability claims, closer adherence to statutory requirements for eligibility and a tightening of management controls resulted in a 54 percent decline in disability retirements with a $196 million savings for Fiscal Year 1982 and a projected savings in Fiscal Years 1983-85 of $1.1 billion.
It should also be noted that improved management efficiency during 1982 did not come at the expense of denying valid claims. As a result of OPM's continuing commitment to reform CSRS and make it more efficient and of greater service to annuitants, 1982 witnessed a 20 percent decline in the number of reversals of rejected claims by the Merit Systems Protection Board.
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Efforts to provide long-term reform of CSRS approached completion during 1982 and were included in President Reagan’s Fiscal Year 1984 Budget. That the system is in dire need of reforms is well documented. As noted, the system's unfunded liability reached an astonishing $514.8 billion during 1982. During the last four years, the liability has increased at the rate of $70,000 per minute.
Were the total unfunded liability to require immediate payment, the cost to each of America's 81.4 million working families would be approximately $6,060. While the system's unfunded liability is not included in the federal government's trillion dollar national debt, if it were, that debt would be increased by 50 percent.
To remedy this extremely serious problem, OPM developed during 1982 proposals to restore CSRS to its original principle of being fully funded by government and employee contributions; to preserve retirement at age 55 with 30 years service but to make the cost of such retirement comparable to the private sector; and to reform the system's cost-of-living adjustment (COLA) to bring it more in line with both Social Security and the private sector.
MAXIMIZING CHOICE FOR FEDERAL EMPLOYEES HEALTH BENEFIT PARTICIPANTS
1981 OPM reforms in the Federal Employees Health Benefits (FEHB) program were proven during 1982 to have been necessary and in the best interests of the taxpayers, who must finance most the program's costs, and of federal employees.
Designed to remedy past mismanagement that had left the program with depleted reserves and a $440 million funding shortfall, OPM's reforms sought to reverse the short-sighted policies of the past and return FEHB to financial health based on fundamental insurance principles. But in 1981 and 1982, Director Devine's authority to institute these reforms was challenged in court, forcing OPM to postpone the 1981 "Open season" awaiting final judicial rulings.
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Finally, in February 1982, the Courts recognized the Director's authority to to remedy the shortfall, minimize premium increases and return the program to financial stability; with the U.S. Court of Appeals ruling OPM had "acted in good faith" in reforming the program and "had good cause" to postpone "Open Season."
As a result of OPM reforms, the taxpayers were saved approximately $320 million and the magnitude of projected premium increases was slashed by nearly 50 percent, a cost avoidance of immense importance to all federal employees. The reforms also resulted in some dramatic programmatic turn-arounds for FEHB.
The $440 million funding shortfall was converted to a $77 million surplus in 1982. During the year, two "Open Seasons" were held, the first in May to make up for 1981's postponement and the second in November as regularly scheduled. During these two periods, a million federal employees and retirees switched to lower-cost benefit plans, saving themselves and the taxpayers additional millions of dollars.
The 1982 FEHB reforms were also upheld by a General Accounting Office report late in the year which indicated that OPM's reforms were both needed and effective in curing the program's ills. Numerous private sector health plans are now being reformed in similar fashion as spiralling health insurance costs force the re-evaluation of health care program management nationwide.
Also during 1982, OPM continued work in development of an FEHB "Voucher Plan" designed to minimize benefit costs and maximize coverage choices available to federal employees. Presented to Congress in 1983, the proposal provides a voucher for each federal employee, who would then be able to purchase any benefit plan from any recognized carrier. The cost difference between the voucher and the plan's total cost would either be covered by the employee or, in the event of a cost less than the voucher total, would be refunded to the employee.
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The agency believes that the Voucher Plan for FEHB would increase employee choices, and lower the cost to the employee and the taxpayers while maximizing the quality of health care coverage for each employee.
COMBINED FEDERAL CAMPAIGN
Nearly $100 million in Combined Federal Campaign (CFC) contributions were made by federal employees during 1982, demonstrating the impressive humanitarian concern characterizing federal workers across the nation. But in 1982, CFC became a subject of controversy as the admission to the campaign of ideological and political advocacy groups, not previously included, spurred public debate.
Historically, with eligibility to solicit funds under the CFC limited to traditional health and welfare charities, the campaign had received widespread and growing support from federal workers. With the inclusion of advocacy groups, however, Federal Executive Boards and local CFC coordinators reported widespread federal employee complaints about the participation of many of the non-traditional groups while numerous complaints came directly to the agency. Fears were expressed that the campaign would be politicized and several local CFC campaigns experienced boycotts arising from political and ideological conflicts between competing groups in labor, environmental and social policy fields.
The controversy's results were disturbing. While the total dollar contribution to CFC did increase in 1982, the number of contributors declined significantly making it clear that the controversy over admission of political and ideological advocacy groups, of whatever persuasion, threatened the very future of the CFC.
In order to return the CFC to its historic purpose of aiding traditional health and welfare charities, the President issued a new Executive Order to govern campaign operations. Designed to concentrate its limited resources on the most -15-
essential philanthropic activities, and to restore contributors’ faith in the campaign, the new rules would limit CFC participation to health and welfare organizations. Throughout its work leading to the new Combined Federal Campaign, OPM sought to restore the CFC to the respect it enjoyed among federal employees throughout the Kennedy, Johnson, Nixon, Ford and Carter administrations as a tool for bridging the gap between private and public sector programs aiding the needy in American society.
KEEPING OUR OWN HOUSE IN ORDER
In carrying out its responsibility to oversee the annual expenditure of $100 billion in federal pay and benefits, OPM has an operating budget of approximately $250 million and a work force of approximately 6,000 Full-Time Equivalent (FTE) employees. An integral part of OPM's mission as the government's primary personnel agency, is to perform these functions as cost-effectively as possible.
In 1982, the agency continued its progress in reversing the growth and cost of its own operation. In just two years, OPM has successfully cut its administrative budget by 6.5 percent and reduced the FTE work force by more than 18 percent --reductions in absolute terms, not merely reductions in the rate of increase.
The overwhelming majority of these cut-backs were achieved with minimum displacement of current employees. Approximately 90 percent of the work force reductions were achieved through attrition, while many of the budget savings were achieved through improved management practices.
A review of all agency publications resulted in the elimination of 212 periodicals and pamphlets for an annual budget savings to the taxpayers of nearly $1 million. An internal study of OPM training programs also showed room for savings, and by relocating five training sites, the agency saved another $100,000.
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Yet, even with significant savings in 1982, OPM successfully implemented its major goals. Greater scrutiny of OPM-managed trust funds was achieved through internal management reform. The agency also augmented its resources for programs providing incentives for improved employee morale and performance, and a separate unit was created to upgrade and bring together agency efforts in the areas of performance appraisal, merit pay and other incentive awards.
Also, to improve interagency coordination on personnel matters, the Office of Policy and Communications was established to combine the functions of public affairs, policy planning and evaluation and agency-management relations.
STRENGTHENING THE CAREER SERVICE
To strengthen the career service in 1982, OPM worked to continue and enhance support programs. The agency developed legislation to continue Alternative Work Schedules (AWS) which match personal circumstances to professional requirements by allowing federal employees to vary their time of work. Because of the importance of AWS to mothers who must meet both child care and employment responsibilities, and the need for government to maintain proper management controls, OPM negotiated with members of Congress to win the bill's passage which the President signed into law in July 1982.
The new AWS bill not only meets the needs of federal employees but provides important management controls ensuring that the program does not increase government costs to the taxpayers or reduce efficiency in service to the public.
For the Presidential Management Intern Program (PMIP), in May 1982, the President issued an Executive Order reforming this important program. These reforms include expansion of academic degree eligibility, establishment of new
university nomination procedures, a requirement for graduate programs to apply -17-
appropriate veterans' preference criteria in screening nominees and a provision allowing OPM to approve a third year of internship when requested by agencies.
To assist the Federal Executive Institute (FEI) in 1982, OPM arranged for government purchase of the land and facilities which have been FEI's home for nearly 20 years. The agency also continued to meet with FEI staff, seeking ways FEI can strengthen the executive management corps governmentwide.
Revitalization of the Federal Executive Boards (FEBs) as vehicles for communication and cooperation among federal agencies locally and nationwide was a priority goal of the agency during 1982. After years of neglect of FEB's, OPM has designated representatives in each region of the nation to coordinate FEB activities and is using the boards to re-open much needed lines of communication between the federal government's work force in the field and the nation's capital.
MAKING PERFORMANCE CENTRAL IN THE CIVIL SERVICE
Perhaps no other goal dominated the activities of OPM personnel during 1982 than its efforts to implement, strengthen and expand the civil service Merit Principles established by the Civil Service Reform Act (CSRA) of 1978, even though much of this work did not come to fruition until 1983.
The first significant step taken by OPM during 1982 in defense of the merit principles came in implementing and refining the performance appraisal system. In June, FPM guidance stated the Reagan Administration's postion that performance appraisals were a top priority in meeting the objectives of the federal government and in achieving major personnel management reforms for the civil service. By the end of the year, all 1.7 million federal white collar employees had been working under a performance appraisal system for at least one performance rating cycle.
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By late 1982, work was under way at OPM to increase the effective use of performance appraisals to improve their connection with personnel actions. This work would culminate in major personnel system reforms early in 1983 through issuance of the President's Centennial Reforms.
Possibly the most significant initiative developed during 1982 was the proposed Performance-Based Incentive System (PBIS), designed to base federal white collar employee within-grade pay raises on job performance ratings. The reform is designed to strengthen the performance appraisal system mandated by CSRA and to make job performance the federal government's central personnel management principle governing employee within-grades.
By standardizing performance appraisal systems throughout the white collar work force, the PBIS proposal will provide tangible rewards for employees doing the best job, as in the private sector. While much negotiation and compromise will occur between the proposal's introduction and its ultimate implementation, the Reagan administration is absolutely committed to making the concept of "pay for performance" the fundamental federal personnel management principle.
Similar to PBIS, as an incentive principle of federal personnel management, OPM also developed revised procedures for federal reduction-in-force (RIF) actions. The proposed procedures would give more importance to employee performance as compared to seniority in determining employee retention in the event of a RIF. The proposal would also limit "bump and retreat" procedures which have, in the past, too often resulted in high ranking executives bumped down to clerical tasks while still receiving their $50,000 salaries.
This proposal will be of particular value to women and minority federal workers who, under current RIF procedures, suffer from "the last hired, first fired" aspect inherent to seniority-based personnel systems. The new proposal would -19-
allow women and minorities to be retained on the basis of the job they have done for the government, not simply on the basis of how long they have been with the government. It should also be noted, however, that in any case, while job performance will become far more important in the federal work force under the new RIF proposal, seniority will remain a significant criteria in RIF decisions.
PBIS illustrates the Reagan Administration's commitment to establish a fair and equitable personnel system for its workers while improving government efficiency. By affording employees the opportunity to see their work rewarded, PBIS would encourage workers to strive for individual excellence, providing them with tangible rewards for work well done while providing government with the increased efficiency inherent to a motivated work force.
Encouraging better work through recognition and reward also establishes a policy of managing government more like private industry — a perennial demand of America's electorate and a goal of this and past administrations. Performance management moves the government much closer to this long-standing goal.
By offering the simple incentives of recognition and reward -- keys to private sector success and productivity -- performance management can improve the quality and effectiveness of government work by enhancing federal employee morale and increasing enthusiasm for doing their jobs above minimal standards. This system will better serve the public in its cost-effective use of tax dollars, as well as in improved government service. As importantly though, the system will also better serve federal workers themselves by providing the opportunity for individual accomplishment to white collar federal workers at every level.
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EPILOGUE: THE PURSUIT OF EXCELLENCE IN THE CIVIL SERVICE
America's civil service is unique in all the world in surviving a full century based upon the same fundamental Merit Principle. The institution of the civil service has done much to provide both the "requisite energy in government" that so occupied the founders, and the essential accountability and responsiveness of government for which the government was created.
Institutions must, however, change and adapt through time to remain relevant to the needs of so dynamic a people as our own. Unfortunately, those who complain about "bureaucracy" too often ignore the dedication and professionalism of America's public employees. Conversely, others too often convey an impression of insensitivity to the need for positive evolution in public institution management.
As President Reagan's chief personnel management agency in the federal government, the Office of Personnel Management remains committed to the evolution of a federal civil service that enshrines merit principles as the foundation for the government's efficient management, while providing for its public servants the dignity and opportunity of a system that recognizes and rewards their efforts.
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