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<titleInfo>
 <title>Human Capital: DHS Faces Challenges In Implementing Its New Personnel System</title>
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<abstract>DHS was provided with significant flexibility to design a modern
human capital management system. Its proposed system has both	 
precedent-setting implications for the executive branch and	 
farreaching implications on how the department is managed. GAO	 
reported in September 2003 that the effort to design the system  
was collaborative and consistent with positive elements of	 
transformation. In February, March, and April 2004 we provided	 
preliminary observations on the proposed human capital		 
regulations. Congressional requesters asked GAO to describe the  
infrastructure necessary for strategic human capital management  
and to assess the degree to which DHS has that infrastructure in 
place, which includes an analysis of the progress DHS has made in
implementing the recommendations from our September 2003 report. 
DHS generally agreed with the findings of our report and provided
more current information that we incorporated. However, DHS was  
concerned about our use of results from a governmentwide survey  
gathered prior to the formation of the department. We use this	 
data because it is the most current information available on the 
perceptions of employees currently in DHS and helps to illustrate
the challenges facing DHS.</abstract>
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