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 <subject>Compensation</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Federal regulations</subject>
 <subject>Human capital</subject>
 <subject>Human capital management</subject>
 <subject>Human capital planning</subject>
 <subject>Human capital policies</subject>
 <subject>Internal controls</subject>
 <subject>Performance appraisal</subject>
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 <title>Human Capital: Observations on Final DHS Human Capital Regulations</title>
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<abstract>People are critical to any agency transformation, such as the one
envisioned for the Department of Homeland Security (DHS). They	 
define an agency&apos;s culture, develop its knowledge base, and are  
its most important asset. Thus, strategic human capital 	 
management at DHS can help it marshal, manage, and maintain the  
people and skills needed to meet its critical mission. Congress  
provided DHS with significant flexibility to design a modern	 
human capital management system. DHS and the Office of Personnel 
Management (OPM) have now jointly released the final regulations 
on DHS&apos;s new human capital system. Last year, with the release of
the proposed regulations, GAO observed that many of the basic	 
principles underlying the regulations were consistent with proven
approaches to strategic human capital management and deserved	 
serious consideration. However, some parts of the human capital  
system raised questions for DHS, OPM, and Congress to consider in
the areas of pay and performance management, adverse actions and 
appeals, and labor management relations. GAO also identified	 
multiple implementation challenges for DHS once the final	 
regulations for the new system were issued. This testimony	 
provides overall observations on DHS&apos;s intended human capital	 
system and selected provisions of the final regulations.</abstract>
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<note>Testimony</note>
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 <topic>Compensation</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Federal regulations</topic>
 <topic>Human capital</topic>
 <topic>Human capital management</topic>
 <topic>Human capital planning</topic>
 <topic>Human capital policies</topic>
 <topic>Internal controls</topic>
 <topic>Performance appraisal</topic>
 <topic>Performance measures</topic>
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