DOE O 331.1B
3-14-01

THIS PAGE IS TO REMAIN WITH DOE O 331.1B

THIS PAGE TRANSMITS ADMINISTRATIVE CHANGES TO DOE O 331.1A, EMPLOYEE
PERFORMANCE MANAGEMENT SYSTEM, DATED 6-15-99. THIS PAGE ALSO
CANCELS DOE O 331.1A AND REISSUES IT AS DOE O 331.1B, EMPLOYEE
PERFORMANCE MANAGEMENT SYSTEM, DATED 3-14-01.

THE ADMINISTRATIVE CHANGES THAT OCCURRED WERE:
1. TO BRING THIS DIRECTIVE INTO COMPLIANCE WITH THE NATIONAL
NUCLEAR SECURITY ADMINISTRATION (NNSA) AND,
2. TO INCREASE THE AMOUNT OF ON-THE-SPOT AWARDS FROM "UP TO $300"
TO "UP TO $500" IN SECTION 5. RESPONSIBILITIES, PARAGRAPHS B(2), C(8),
AND E(3).
U.S. Department of Energy ORDER
DOE O 331.1B Washington, D.C.

SUBJECT: EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM

1. OBJECTIVE. To establish requirements and responsibilities for employee performance
appraisals, performance-related awards, and other forms of employee recognition. This Order
covers most employees at grades GS-15 and below (see the exclusions in paragraph 3c).

2. CANCELLATION. DOE O 331.1A, DEPARTMENTAL EMPLOYEE PERFORMANCE
MANAGEMENT SYSTEM, dated June 15, 1999.

3. APPLICABILITY.

a. Department of Energy (DOE) Elements. This Order applies to all DOE employees,
including those within the National Nuclear Security Administration (NNSA), except as
identified in 3c below.

b. Contractors. This Order does not apply to contractors.

c. Exclusions.

(1) DOE employees at grades GS-15 and below who are excluded under Title 5, United
States Code (U.S.C.), 4301(2), and Title 5, Code of Federal Regulations (CFR),
430.202(c) and (d).

(2) Members of the Senior Executive Service.

(3) Experts and consultants.

(4) All Members of the Board of Contract Appeals.

4. REQUIREMENTS.

a. General.

(1) A Departmental Employee Performance Management System shall be established
consistent with 5 USC 4302 and 5 CFR 430.204.

(2) Each DOE element shall adopt a Performance Management Program that

(a) uses quality management principles;

(b) continuously improves the performance appraisal/feedback/recognition policies
and process through systematic and periodic evaluations;

(c) establishes and maintains an environment where organizational, team, and
individual employee successes and accomplishments are recognized and
rewarded in a timely, fair, and consistent manner;

(d) supports the DOE Strategic Plan, mission goals and planning objectives, and
quality management objectives;

(e) solicits the participation of employees, unions, and partnership councils in the
development of the program;

(f) operates in a manner consistent with law and regulation;

(g) identifies individuals (by position) responsible for program development,
program operation (including preparing and reviewing ratings and award
nominations), and program evaluation;

(h) identifies employees (by pay plans and/or positions) covered by the program;
and

(i) has a program effective date and a savings provision consistent with 5 CFR
430.201(b) for administrative actions initiated before that effective date.

(3) Elements shall submit complete performance management program plans to the
Director of Human Resources (or for NNSA elements, the Administrator or his/her
designee) for approval prior to the implementation of any new or revised performance
management programs. Performance management programs include both
performance appraisal and employee recognition/incentive awards, even though the
two areas are often "de-linked" in operation. If an element deems it appropriate, it
may establish separate programs and/or submit separate plans for these two parts of
performance management.

b. Performance Appraisal.

(1) Align individual performance expectations with specific organizational performance
goals and objectives. Align managerial and supervisory plans with respective
executive's plans.

(2) Use timely, fair, and accurate employee performance evaluation and performance
improvement feedback, based on established elements and standards.

(3) Promote continuing performance improvement of the organization and its employees,
and provide assistance to employees in improving any unacceptable performance.

(4) Provide all employees, managers, and supervisors with frequent communication about
and training in the program.

(5) Provide opportunity for employees to participate in developing their own
performance plans.

(6) Establish an annual performance rating cycle.

(7) Provide for at least one progress review during the annual rating cycle.

(8) Provide for a 90-calendar-day minimum rating period.

(9) Extend an employee's rating period if, at the end of the annual performance rating
cycle, the employee would have been on his/her performance plan for less than the
minimum rating period. Issue a rating as soon as practicable thereafter.

(10) Establish managerial and supervisory rating cycles tied to the organizational
strategic/operating plans and executive rating cycle.

(11) Address the performance of employees who have been transferred, detailed, or
placed on an Intergovernmental Personnel Act assignment.

(12) Establish a rating of record procedure, including a method for deriving and assigning a
summary rating level, as specified in 5 CFR 430.208(d).

(13) Specify the pattern of rating levels and summary levels that will be used.

(14) Establish a process to assist employees in improving performance, to include the use
of Performance Improvement Plans.

(15) Take appropriate performance-based action including reassignment, reduction-in-
grade, or removal when performance remains unacceptable, but only after the
employee has had an opportunity to demonstrate acceptable performance.

(16) Maintain records and other data to document performance appraisals and
performance-based actions for reporting purposes.

(17) Evaluate the effectiveness of program policies and processes.

(18) Use written performance plans for employees that

(a) are based on work assignments and responsibilities;

(b) are results-based; that is, they are tied to Departmental/NNSA and
organizational objectives (what is accomplished) and they reflect
Departmental/NNSA core values criteria (how results are accomplished);

(c) contain all performance elements used to derive and assign a summary rating
level or to support any personnel or management action described in 5 CFR
430.102(b);

(d) contain at least one critical element that addresses individual performance [see
paragraph 4b(18)(j) below regarding requirements for managers and
supervisors];

(e) specify the number of levels at which performance on critical and non-critical
elements may be appraised;

(f) contain at least two summary levels (i.e., "meets expectations" and
"unacceptable") but no more than five summary levels;

(g) have performance standards established at least at the "meets expectations"
level for each critical element;

(h) are reviewed at a second level when the summary level is below the "meets
expectations" level;

(i) are established within 30 days of the beginning of the appraisal period;

(j) for each manager and supervisor, contain at least two critical elements
Leadership and Program Accomplishment.

The criteria in Attachment 1, or equivalent variation approved by the Director of
Human Resources (for the NNSA, the Administrator or his/her designee), must be
used to evaluate the leadership element.

c. Employee Awards and Recognition Program

(1) Recognize and reward individuals and/or teams based on performance; suggestions
and inventions; training, education, and development; and other noteworthy
achievements.

(2) With awards cases, include documentation describing the contributions and showing
the approving official's signature and date.

(3) Have awards approved other than on-the-spot awards at a level above that of
the initiator, unless the initiator is the Secretary or the head of a Departmental
element.

(4) Limit any time-off awards for employees to 80 hours over a 12-month period.
Awarding managers and award recipients must arrange to have the time off taken
within 1 year of when granted or the award will be forfeited. Heads of Departmental
and NNSA elements may approve extensions of up to 90 days on a case-by-case
basis for unavoidable reasons that have or will have prevented using the time.

(5) Limit the value of non-monetary items conferred in connection with informal
recognition awards to a "nominal value" of $50 or less.

(6) Publicize the criteria for awards periodically.

(7) Ensure that all performance-related awards are based on measurable improvements
to organizational systems and processes and/or attainment of organizational missions
and goals and, for managers and supervisors, also reflect managerial core
competencies.

(8) Ensure that employees have the opportunity to receive the full range of incentive and
performance awards, including Quality Step Increases, suggestion awards, and
awards for patents and inventions.

(9) Address recognition of employees who are on detail, on an Intergovernmental
Personnel Act assignment, or are transferred.

(10) Relate award choice and size to the magnitude of the contribution.

(11) Incorporate Presidential Recognition and Departmental Awards in awards programs,
including

(a) The President's Award for Distinguished Federal Civilian Service for
exceptional achievements of unusual benefit to the nation.

(b) The Presidential Management Improvement Award for contributions that
result in tangible benefits to the Government of $250,000 or more.

(c) Presidential Letters of Commendation for a suggestion, invention, or other
superior accomplishment that is beyond job requirements and that results in
tangible benefits to the Government of $250,000 or more.

(d) The Secretary's Award granted by the Secretary for outstanding leadership
or other achievements deemed to merit the highest award granted by the
Department.

(e) The Award for Valor granted by the Secretary in recognition of acts of
heroism or courage involving great personal risk.

(f) The Meritorious Service Award granted by the Secretary for achievements
that substantially contribute to the accomplishment of the mission or major
programs of DOE including the NNSA.

(g) The Exceptional Service Award granted by the Head of a Departmental
element for outstanding service or an established record of achievement,
exemplary accomplishment of assigned responsibilities, unusual initiative in
efficiency or improved management, outstanding executive or technical ability,
or unusual devotion to duty.

(12) Use other awards to an appropriate extent, including

(a) Awards for Achievement in Equal Employment Opportunity;
(b) Certificates of Appreciation;
(c) Career Service Awards;
(d) superior accomplishment awards for a special act or service, a suggestion, or
an invention; and
(e) awards for disclosure of cost savings (including Presidential awards for cost
savings).

(13) Maintain records and other data to document awards for reporting purposes.

(14) Evaluate the effectiveness of program policies and processes.

5. RESPONSIBILITIES.

a. Secretary.

(1) Approves Secretary's Awards, Awards for Valor, and Meritorious Service Awards.

(2) Approves monetary awards of more than $7,500, but not more than $10,000.

(3) Recommends to the Office of Personnel Management (OPM) any cash awards for an
employee in excess of $10,000.

b. The Administrator (NNSA) or Designee.

(1) In advance of implementation, approves program plans for NNSA elements.

(2) Approves monetary awards NNSA employees within Headquarters for up to $7,500
and on-the-spot awards for up to $500.

(3) Approves Exceptional Service Awards and other non-monetary awards.

c. Director of Human Resources Management.

(1) Develops the Departmental Employee Performance Management System and obtains
OPM approval of the system.

(2) In advance of implementation, approves program plans for Headquarters and for
each Departmental element outside of Headquarters, except for the NNSA, whose
program plans are approved by the Administrator or his/her designee.

(3) Ensures that adequate funds and award materials are available for Secretary's
Awards, Awards for Valor, and Meritorious Service Awards.

(4) Publicizes and coordinates Secretarial awards ceremonies and approves travel
expenses for guests.

(6) Coordinates beneficial suggestions that apply to more than one Departmental element
or that affect another agency.

(7) Coordinates and provides applicable reports to OPM.

(8) Approves monetary awards within Headquarters for up to $7,500 and on-the-spot
awards for up to $500, except for the NNSA, whose monetary awards are
approved by the Administrator or his/her designee.

d. Heads of Headquarters Departmental Elements. All responsibilities below except for (1)
may be redelegated at the discretion of each Departmental element head.

(1) Ensure that adequate funds are available for payment of monetary awards.

(2) Approve extensions of up to 90 days to the time limit for using time-off awards in
paragraph 4c (4) above.

(3) Ensure that reporting requirements are satisfied.

e. Heads of other than Headquarters Departmental Elements. All responsibilities below
except for (5) and (6) may be redelegated at the discretion of each Departmental element
head.

(1) Develop program plans based on the requirements in this Order.

(2) Obtain advance program plan approval from the Director of Human Resources for
non-NNSA programs or from the Administrator or designee for NNSA programs.

(3) Approve monetary awards for up to $7,500 and on-the-spot awards for up to $500.

(4) Approve Exceptional Service Awards and other non-monetary awards.

(5) Ensure that adequate funds are available for payment of monetary awards.

(6) Provide staffing and support services sufficient to ensure prompt action on awards
recommendations and beneficial suggestions.

(7) Approve extensions of up to 3 months to the time limit for using time-off awards in
paragraph 4c(4) above.

(8) Ensure that reporting requirements are satisfied.

f. Director, Office of Headquarters and Executive Personnel Services. All responsibilities
below except for (3) may be redelegated at the discretion of the Director, for non-NNSA
programs or from the Administrator or designee for NNSA programs.

(1) Develops Headquarters program plan based on the requirements in this Order.

(2) Obtains advance program plan approval from the Director of Human Resources for
non-NNSA programs or from the Administrator or designee for NNSA programs.

(3) Provides staffing and support services sufficient to ensure prompt action on awards
recommendations and beneficial suggestions.

(4) Approves Exceptional Service Awards and other non-monetary awards.

6. REFERENCES.

a. Title 5 U.S.C., Chapters 43 (Performance Appraisal) and 45 (Incentive Awards).

b. Title 5 CFR, Parts 293 (Personnel Records, Subpart D, Employee Performance File
System Records); 430 (Performance Management); and 451 (Awards).

c. OPM letter to Timothy M. Dirks, Director of Human Resources, dated September 22,
1995, which contains approval of the Departmental Employee Performance Management
System.

7. DEFINITION. A Performance Management Program Plan, also referred to as a program
plan, is a document or documents combining the same information as an appraisal program, as
defined in 5 CFR 430.203, and an award program, as defined in 5 CFR 451.102.

8. CONTACT. Questions concerning this Order should be addressed to the Office of Personnel
Policy, Programs and Assistance at (202) 586-8513.

SPENCER ABRAHAM
Secretary of Energy CRITERIA FOR EVALUATING
THE CRITICAL ELEMENT "LEADERSHIP"
(The applied performance standards must include measures/benchmarks of
the quality, quantity, timeliness, or nature of performance required.)

Critical Sub-Element: Communication/Trust

1. DEFINITION. The manager/supervisor communicates information and builds trust within the
organization and with stakeholders and customers.

2. STANDARDS.

a. Quality Advocacy. Incorporates quality management principles and programs as tools for
improving the organization. Is accountable and holds process owners accountable for
systematically and continuously examining and improving processes and programs.
Implements appropriate process improvements in a timely manner. Ensures that
subordinate staff are trained in quality principles and techniques.

b. Customer Orientation. Establishes methods to identify customers, their needs, and their
expectations. Continuously fosters their participation, feedback, and satisfaction. Ensures
that work decisions account for and reflect customers' needs. Initiates changes based on
customer input/needs.

c. Communications. Is an active listener and fosters open, two-way information exchange.
Provides written and oral information in a clear, concise, and timely manner. Promotes
communications within the organization and with the organization's customers.

d. External Relationships/Networking. Effectively articulates and promotes the organization's
purposes and programs to outside groups. Meets regularly with clients, institutionalizes
relationships with them as needed, and engenders their cooperation and support.

e. Negotiating/Influence. Language and behavior promote "win-win" solutions when
differences or opportunities between groups or individuals arise. Makes timely, thoughtful,
and practical proposals to resolve impasses or to reach consensus, taking shareholders'
interests into account.

f. Interpersonal Relationships. Conveys respect for clients and employees. Takes positive
steps to build trust, morale, and esprit de corps within the organization. Creates solid
working relationships with others.

Critical Sub-Element: Human Resources

1. DEFINITION. The manager/supervisor recruits, trains, develops, and motivates employees,
rewards performance, and promotes diversity within his/her organization.

2. STANDARDS.

a. Human Resource Management. Takes timely action to acquire, rightsize, restructure, and
reallocate staff as priorities shift. Promotes human resources programs that enhance
organizational and employee well-being.

b. Managing Diversity. Creates a work environment of inclusion, fairness, and equity.
Proposes actions to, and works toward, achieving workforce diversity (e.g., minorities,
women, small businesses, and colleges are used for contracting/recruiting purposes).

c. Team Building/Teamwork. Values and fosters teamwork, cooperation, and trust in day-to-
day program operations and in pursuing solutions to cross-cutting organizational issues.
Establishes, actively participates in, champions, and/or makes constructive contributions to
teams established to improve programs and operations.

d. Developing Talent/Managing Performance. Provides staff with timely and well-targeted
opportunities to develop/enhance skills. Serves as an effective coach/mentor. Provides
continuous, honest, timely performance feedback to staff. Takes timely action to establish
performance expectations; celebrates, recognizes, and/or rewards performance successes
and accomplishments; deals with performance deficiencies.

Critical Sub-Element: Management/Business Practices

1. DEFINITION. The manager/supervisor allocates, spends, and accounts for resources and
procures, produces, and contracts for goods and services for his/her organization.

2. STANDARDS.

a. Strategic Planning. Provides value-added input to the strategic planning process. Reflects
the strategic plan, key initiatives, and organizational goals in all work plans for which he/she
is responsible. Communicates organizational goals and performance expectations in a
timely, clear, and consistent manner. Holds self and others accountable for achieving
program goals consistent with the plan.

b. Vision/Change Agent. Works collegially with others to realize a shared vision of the
organization aligned with DOE's mission, vision, and values. Champions change by
proposing and regularly encouraging ideas from stakeholders/customers on new ways of
doing/improving business.

c. Financial Management. Takes timely action to identify, request, monitor, and reallocate
financial and material resources. Identifies ways and takes action to streamline business
practices. Acts decisively and promptly to avoid or correct instances of potential fraud,
waste, and abuse.