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 <subject>Employee relations</subject>
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 <subject>Federal regulations</subject>
 <subject>Human capital</subject>
 <subject>Human capital management</subject>
 <subject>National security personnel system</subject>
 <subject>Pay for performance</subject>
 <subject>Performance management</subject>
 <subject>Performance measures</subject>
 <subject>Policy evaluation</subject>
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 <title>Human Capital: Observations on Final Regulations for DOD&apos;s National Security Personnel System</title>
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<abstract>People are critical to any agency transformation because they
define an agency&apos;s culture, develop its knowledge base, promote  
innovation, and are its most important asset. Thus, strategic	 
human capital management at the Department of Defense (DOD) can  
help it marshal, manage, and maintain the people and skills	 
needed to meet its critical mission. In November 2003, Congress  
provided DOD with significant flexibility to design a modern	 
human resources management system. On November 1, 2005, DOD and  
the Office of Personnel Management (OPM) jointly released the	 
final regulations on DOD&apos;s new human resources management system,
known as the National Security Personnel System (NSPS). Several  
months ago, with the release of the proposed regulations, GAO	 
observed that some parts of the human resources management system
raised questions for DOD, 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 DOD once the final	 
regulations for the new system were issued. This testimony	 
provides GAO&apos;s overall observations on selected provisions of the
final regulations.</abstract>
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<note>Testimony</note>
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 <topic>Federal regulations</topic>
 <topic>Human capital</topic>
 <topic>Human capital management</topic>
 <topic>National security personnel system</topic>
 <topic>Pay for performance</topic>
 <topic>Performance management</topic>
 <topic>Performance measures</topic>
 <topic>Policy evaluation</topic>
 <topic>Strategic planning</topic>
 <topic>DOD National Security Personnel System</topic>
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