[Code of Federal Regulations]
[Title 5, Volume 1, Parts 1 to 699]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR430.304]

[Page 319-320]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT
 
PART 430--PERFORMANCE MANAGEMENT--Table of Contents
 
            Subpart C--Managing Senior Executive Performance
 
Sec. 430.304  SES performance management systems.

    (a) To encourage excellence in senior executive performance, each 
agency must develop and administer one or more performance management 
systems for its senior executives.
    (b) Performance management systems must provide for:
    (1) Planning and communicating performance elements and requirements 
that are linked with strategic planning initiatives;
    (2) Consulting with senior executives on the development of 
performance elements and requirements;
    (3) Monitoring progress in accomplishing elements and requirements;
    (4) At least annually, appraising each senior executive's 
performance against requirements using measures that balance 
organizational results with customer and employee perspectives; and
    (5) Using performance information to adjust pay, reward, reassign, 
develop, and remove senior executives or make other personnel decisions.
    (c) Additional system requirements.
    (1) Appraisal period. Each agency must establish an official 
performance appraisal period for which an annual summary rating must be 
prepared.
    (i) There must be a minimum appraisal period of at least 90 days.
    (ii) An agency may end the appraisal period any time after the 
minimum appraisal period is completed, if there is an adequate basis on 
which to appraise and rate the senior executive's performance.
    (iii) An agency may not appraise and rate a career appointee's 
performance within 120 days after the beginning of a new President's 
term of office.
    (2) Summary performance levels. Each performance management system 
must have at least three summary performance levels: one or more fully 
successful levels, a minimally satisfactory level, and an unsatisfactory 
level.
    (3) Method for deriving summary ratings. Agencies must develop a 
method for deriving summary ratings from appraisals of performance 
against performance requirements. The method must ensure that only those 
employees whose performance exceeds normal expectations are rated at 
levels above fully successful. An agency may not

[[Page 320]]

prescribe a forced distribution of rating levels for senior executives.