Pay for Performance: Implementation of the Performance Management and Recognition System
GGD-87-28
Published: Jan 21, 1987. Publicly Released: Feb 04, 1987.
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Highlights
In response to a congressional request, GAO provided information on: (1) five federal agencies' transition from merit pay to the Performance Management and Recognition System (PMRS); (2) how PMRS addressed the problems identified with merit pay; (3) the problems that still exist under PMRS; (4) the pay increases and performance awards PMRS employees received in fiscal year 1985; and (5) selected employees' initial perceptions of PMRS operations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Personnel Management | The Director, OPM, should clarify the formula in current OPM guidance and regulations for calculating PMRS general pay increases. Specifically, the Director should provide more detailed guidance to agencies that would explain: (1) how PMRS general pay increases could have been miscalculated using previous OPM guidance and regulations; (2) what results could occur from seemingly small miscalculations of general pay increases on PMRS employees' positions in the salary range and their subsequent merit increases; and (3) how such miscalculations can be corrected. |
Closed – Implemented
On September 23, 1987, OPM published Federal Personnel Manual letter No. 540-2. It contained guidance and information for agencies to use in calculating PMRS general pay increases. This information should ensure that agencies provide appropriate payouts for PMRS employees.
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Topics
CompensationEmployee incentivesFederal employeesPerformance managementGS grade classificationJob classificationPay for performancePerformance appraisalSalary increasesSystems management