Appendix F, Sec. A, Part V, Revised 5/2/96

Appendix F
OBJECTIVE STANDARDS OF PERFORMANCE

Section A -- Performance Objectives
Part V --HUMAN RESOURCES

PERFORMANCE OBJECTIVE #1 -- Cost Effective Salary Administration System
PERFORMANCE OBJECTIVE #2 -- Work Force Excellence
PERFORMANCE OBJECTIVE #3 -- Work Force Diversity

PERFORMANCE OBJECTIVE #1 -- Cost Effective Salary Administration System

The Laboratory will deliver HR systems in a cost effective manner, (Weight = 35%)

CRITERIA PERFORMANCE MEASURES

1.1 Job Classification and Evaluation System
Employees are appropriately placed in a current job classification. (Weight = 14%)
1.1.a Currency of Position Descriptions
% of positions for which current position descriptions exist. 85% will be rated at 75 points. (Weight = 7%)

Agreement:

"All positions" refer to regular/career positions which could include part-time employees but not casual or intermittent employees.

The percent of the covered population for which there is a current position description, which includes the elements set forth in laboratory guidelines will be measured.

95% will be rated at 95 points.

"Current" means that the position description has been reviewed for accuracy and updated, as appropriate, within the last 12 months (can define the last 12 months as 7/1 through 6/30).

The quality of the review process or of a new system for documenting position duties and responsibilities will affect the performance rating in addition to the actual percent of regular or career positions that has a current description.

1.1.b Currency of Job Classification
Cumulative % of classifications reviewed, updated and evaluated in accordance with the current system and/or the Laboratory's implementation plan of the program goals identified as a result of the Towers Perrin classification system review. Baseline is to have every classification reviewed at least once every 5 years. (Weight = 7%)

Agreement:

Report annually on cumulative % of classifications reviewed (including results/actions) with the goal of 100% by the end of a 5-year period.

In assessing the value of job classifications, both internal alignment and external market forces must be considered. The implementation plan and its milestones are the drivers for this measure.

As part of the classification review, a sample of the incumbents are assessed for appropriateness of the classification designation. The sample may be composed of posting, reclassification proposals or random job audits.

Classifications for which corrective actions and amendments are required will be counted under the cumulative % in the year in which the corrective action/amendment has been completed.

1.2

Salary Administration
Pay rates and pay structures for all employees are based on recruitment and retention practices in competitive and relevant markets. Starting salaries are based on qualifications, experience, and competitive market practices. Salary increases take into account performance as well as internal and external equity. (Weight = 23%)

1.2.a

Effectiveness of Implementation of Market-Based Pay Policy
The salary administration system reflects competitive market rates. % of all classification averages fall within ±5% of range control points (for LLNL, market averages) (excluding S&Es). Performance at the 50% level will receive 75 points. (Weight = 13%)

Agreement:
This measure may be limited to those classifications with 10 or more incumbents and for LLNL and LANL, to those classifications that are benchmarked. Classification average salary will then be compared to the level control point (or market average for LLNL) and designated "yes" if the classification average falls within ±5% of the control point (or market average for LLNL) and "no" if they do not. The number of "yes" will be divided by the total number of defined classifications.

LANL: Control point is the average market rate for each level determined by the classifications benchmarked in those levels.

1.2.b Adherence to Salary Administration Guidelines
Annual Laboratory guidelines for setting initial salary and subsequent salary increases which ensure consistency, pay for performance, and equity, internally and externally, are approved by management and implemented prior to the annual salary review. (Weight = 10%)

Agreement:
The purpose is to achieve and demonstrate consistency and equity in guidelines -- not new guidelines annually. Guidelines will be reviewed annually and revised as appropriate.

Evaluate Laboratory performance against annual salary guidelines using the following:

LBNL and LLNL:

Initial salary guidelines:
Review actions that resulted in exceptions to guidelines for career hires. Report % of exceptions approved.

Annual salary review adjustments:
Report the number and percentage of zero or minimum merit increases by S&E, administrative, and technical employee groups. Also report the salary increase distribution for each employee category, except for the step structure at LLNL.

LANL:

Initial salary guidelines:
Establish baseline June 30, 1995. Report % of TSM salary offers above market average to total offers made; report % of structured series offers above control point to total offers made.

Annual salary review adjustments:
Report the number and percentage of zero or minimum merit increases by S&E, administrative, and technical employee groups. Also report the salary increase distribution for each employee category.

PERFORMANCE OBJECTIVE #2 -- Work Force Excellence

The Laboratory will develop and maintain work force excellence. (Weight = 37%)

CRITERIA: PERFORMANCE MEASURES:

2.1 Training and Development Programs
The Laboratory provides a systematic and quality approach to its training and development programs. (Weight = 12%)

2.1.a Individual Development Plan
% of employees with a current development plan. Baseline is 75%. (Weight = 12%)

Agreement:
A 2% sample will be used. The percentage of completion is calculated by dividing those completed by the total sample size. Resulting percentage is compared to the 75% baseline.

2.2 Performance Management
Effective employee performance management. (Weight = 15%)

2.2.a Currency of Performance Appraisals
A system that evaluates each employee on an annual basis, against pre-established, job-related performance criteria is in place. % of individual performance appraisals completed annually will be measured. Baseline is 95%. (Weight = 15%)

Agreement:
Report latest viable data. Percent completed determined by dividing the number of completed performance appraisals by the eligible population. September data will be used for FY96.

LBNL and LLNL: Compare percent completed to 95% baseline.

LANL: Compare percent completed to 95% baseline for current performance appraisal system and 85% baseline for ÒpilotÓ performance appraisal system . The quality of the performance appraisals will affect the performance rating, and will consider performance appraisal elements set forth in Laboratory guidelines.

2.3 Employee Relations Activities
Effectiveness of employee relations program. (Weight = 10%)

2.3.a Employee Acceptance of Internal Complaint Resolution Process
Trend employee use of formal complaint processes. Measure the ratio of external complaints to internal formal complaints. (Weight = 5%)

Agreement:
All agency filings and lawsuits submitted by 1 individual will count as 1; actions filed by applicants and retirees will not count against this Performance Measure

The laboratories will provide a narrative summary of management initiated actions that would impact the results of this measure.

2.3.b Effectiveness of Employee Relations Activities
Measure the effectiveness of internal resolution of employee concerns, including but not limited to issues related to EEO, AA, employee discipline, whistleblowing and issues addressed by administrative review or grievance process, or the ombudsman. (Weight = 5%)

Agreement:
LBNL: Trend the ratio of formal to informal complaints.
LANL: Trend the result of the customer satisfaction questionnaire.
LLNL: Trend the ratio of formal to informal complaints.

PERFORMANCE OBJECTIVE #3 -- Work Force Diversity

Strengthen the commitment to and accountability for work force diversity. (Weight = 26%)

CRITERIA: PERFORMANCE MEASURES:

3.1 Employment of Women and Minorities
Ensure representation of minorities and women in underutilized groups in accordance with UC-approved affirmative action plans. (Weight = 26%)
3.1.a Employment of Minorities
Percentage reduction in underutilization of minorities in underutilized job groups as identified in the CY95 affirmative action plan. (Weight = 13%)

Agreement:
Utilization of minorities means to continue to improve - not necessarily just to attain goals. "Good faith efforts" will be measured with a weight of 50% for job groups in which utilization goals are not met. Examples for good faith efforts are: composition and viability of candidate pools; efforts to educate and sensitize the work force to diversity awareness, goals and objectives; coupling of recruitment/outreach efforts to key areas of underutilization; and efforts to encourage and obtain active top management support of diversity considerations, including affirmative action and educational outreach efforts.

The laboratories will provide a narrative summary of management initiated actions that would impact the results of this measure.

3.1.b

Employment of Women
Percentage reduction in underutilization of women in underutilized job groups as identified in the CY95 affirmative action plan. (Weight = 13% )

Agreement:
Utilization of women means to continue to improve - not necessarily just to attain goals. "Good faith efforts" will be measured with a weight of 50% for job groups in which utilization goals are not met. Examples for good faith efforts are: composition and viability of candidate pools; efforts to educate and sensitize the work force to diversity awareness, goals and objectives; coupling of recruitment/outreach efforts to key areas of underutilization; and efforts to encourage and obtain active top management support of diversity considerations, including affirmative action and educational outreach efforts.

The laboratories will provide a narrative summary of management initiatives that would impact the results of this measure.

PERFORMANCE OBJECTIVE #1 -- Cost Effective Salary Administration System The Laboratory will deliver HR systems in a cost effective manner, (Weight = 35%)
CRITERIA	PERFORMANCE MEASURES
1.1	Job Classification and Evaluation System Employees are appropriately placed in a current job classification. (Weight = 14%)	1.1.a	Currency of Position Descriptions % of positions for which current position descriptions exist. 85% will be rated at 75 points. (Weight = 7%)
Agreement: "All positions" refer to regular/career positions which could include part-time employees but not casual or intermittent employees. The percent of the covered population for which there is a current position description, which includes the elements set forth in laboratory guidelines will be measured. 95% will be rated at 95 points. "Current" means that the position description has been reviewed for accuracy and updated, as appropriate, within the last 12 months (can define the last 12 months as 7/1 through 6/30). The quality of the review process or of a new system for documenting position duties and responsibilities will affect the performance rating in addition to the actual percent of regular or career positions that has a current description.
		1.1.b	Currency of Job Classification Cumulative % of classifications reviewed, updated and evaluated in accordance with the current system and/or the Laboratory's implementation plan of the program goals identified as a result of the Towers Perrin classification system review. Baseline is to have every classification reviewed at least once every 5 years. (Weight = 7%)
Agreement: Report annually on cumulative % of classifications reviewed (including results/actions) with the goal of 100% by the end of a 5-year period. In assessing the value of job classifications, both internal alignment and external market forces must be considered. The implementation plan and its milestones are the drivers for this measure. As part of the classification review, a sample of the incumbents are assessed for appropriateness of the classification designation. The sample may be composed of posting, reclassification proposals or random job audits. Classifications for which corrective actions and amendments are required will be counted under the cumulative % in the year in which the corrective action/amendment has been completed.
1.2	Salary Administration Pay rates and pay structures for all employees are based on recruitment and retention practices in competitive and relevant markets. Starting salaries are based on qualifications, experience, and competitive market practices. Salary increases take into account performance as well as internal and external equity. (Weight = 23%)	1.2.a	Effectiveness of Implementation of Market-Based Pay Policy The salary administration system reflects competitive market rates. % of all classification averages fall within ±5% of range control points (for LLNL, market averages) (excluding S&Es). Performance at the 50% level will receive 75 points. (Weight = 13%)
Agreement: This measure may be limited to those classifications with 10 or more incumbents and for LLNL and LANL, to those classifications that are benchmarked. Classification average salary will then be compared to the level control point (or market average for LLNL) and designated "yes" if the classification average falls within ±5% of the control point (or market average for LLNL) and "no" if they do not. The number of "yes" will be divided by the total number of defined classifications. LANL: Control point is the average market rate for each level determined by the classifications benchmarked in those levels.
		1.2.b	Adherence to Salary Administration Guidelines Annual Laboratory guidelines for setting initial salary and subsequent salary increases which ensure consistency, pay for performance, and equity, internally and externally, are approved by management and implemented prior to the annual salary review. (Weight = 10%)
Agreement: The purpose is to achieve and demonstrate consistency and equity in guidelines -- not new guidelines annually. Guidelines will be reviewed annually and revised as appropriate. Evaluate Laboratory performance against annual salary guidelines using the following: LBNL and LLNL: Initial salary guidelines: Review actions that resulted in exceptions to guidelines for career hires. Report % of exceptions approved. Annual salary review adjustments: Report the number and percentage of zero or minimum merit increases by S&E, administrative, and technical employee groups. Also report the salary increase distribution for each employee category, except for the step structure at LLNL. LANL: Initial salary guidelines: Establish baseline June 30, 1995. Report % of TSM salary offers above market average to total offers made; report % of structured series offers above control point to total offers made. Annual salary review adjustments: Report the number and percentage of zero or minimum merit increases by S&E, administrative, and technical employee groups. Also report the salary increase distribution for each employee category.
PERFORMANCE OBJECTIVE #2 -- Work Force Excellence The Laboratory will develop and maintain work force excellence. (Weight = 37%)
CRITERIA:	PERFORMANCE MEASURES:
2.1	Training and Development Programs The Laboratory provides a systematic and quality approach to its training and development programs. (Weight = 12%)	2.1.a	Individual Development Plan % of employees with a current development plan. Baseline is 75%. (Weight = 12%)
Agreement: A 2% sample will be used. The percentage of completion is calculated by dividing those completed by the total sample size. Resulting percentage is compared to the 75% baseline.
2.2	Performance Management Effective employee performance management. (Weight = 15%)	2.2.a	Currency of Performance Appraisals A system that evaluates each employee on an annual basis, against pre-established, job-related performance criteria is in place. % of individual performance appraisals completed annually will be measured. Baseline is 95%. (Weight = 15%)
Agreement: Report latest viable data. Percent completed determined by dividing the number of completed performance appraisals by the eligible population. September data will be used for FY96. LBNL and LLNL: Compare percent completed to 95% baseline. LANL: Compare percent completed to 95% baseline for current performance appraisal system and 85% baseline for ÒpilotÓ performance appraisal system . The quality of the performance appraisals will affect the performance rating, and will consider performance appraisal elements set forth in Laboratory guidelines.
2.3	Employee Relations Activities Effectiveness of employee relations program. (Weight = 10%)	2.3.a	Employee Acceptance of Internal Complaint Resolution Process Trend employee use of formal complaint processes. Measure the ratio of external complaints to internal formal complaints. (Weight = 5%)
Agreement: All agency filings and lawsuits submitted by 1 individual will count as 1; actions filed by applicants and retirees will not count against this Performance Measure The laboratories will provide a narrative summary of management initiated actions that would impact the results of this measure.
		2.3.b	Effectiveness of Employee Relations Activities Measure the effectiveness of internal resolution of employee concerns, including but not limited to issues related to EEO, AA, employee discipline, whistleblowing and issues addressed by administrative review or grievance process, or the ombudsman. (Weight = 5%)
Agreement: LBNL: Trend the ratio of formal to informal complaints. LANL: Trend the result of the customer satisfaction questionnaire. LLNL: Trend the ratio of formal to informal complaints.
PERFORMANCE OBJECTIVE #3 -- Work Force Diversity Strengthen the commitment to and accountability for work force diversity. (Weight = 26%)
CRITERIA:	PERFORMANCE MEASURES:
3.1	Employment of Women and Minorities Ensure representation of minorities and women in underutilized groups in accordance with UC-approved affirmative action plans. (Weight = 26%)	3.1.a	Employment of Minorities Percentage reduction in underutilization of minorities in underutilized job groups as identified in the CY95 affirmative action plan. (Weight = 13%)
Agreement: Utilization of minorities means to continue to improve - not necessarily just to attain goals. "Good faith efforts" will be measured with a weight of 50% for job groups in which utilization goals are not met. Examples for good faith efforts are: composition and viability of candidate pools; efforts to educate and sensitize the work force to diversity awareness, goals and objectives; coupling of recruitment/outreach efforts to key areas of underutilization; and efforts to encourage and obtain active top management support of diversity considerations, including affirmative action and educational outreach efforts. The laboratories will provide a narrative summary of management initiated actions that would impact the results of this measure.
		3.1.b	Employment of Women Percentage reduction in underutilization of women in underutilized job groups as identified in the CY95 affirmative action plan. (Weight = 13% )
Agreement: Utilization of women means to continue to improve - not necessarily just to attain goals. "Good faith efforts" will be measured with a weight of 50% for job groups in which utilization goals are not met. Examples for good faith efforts are: composition and viability of candidate pools; efforts to educate and sensitize the work force to diversity awareness, goals and objectives; coupling of recruitment/outreach efforts to key areas of underutilization; and efforts to encourage and obtain active top management support of diversity considerations, including affirmative action and educational outreach efforts. The laboratories will provide a narrative summary of management initiatives that would impact the results of this measure.

Appendix F Table of Contents
Appendixes Table of Contents
Contract 98 Table of Contents

Appendix F OBJECTIVE STANDARDS OF PERFORMANCE Section A -- Performance Objectives Part V --HUMAN RESOURCES

PERFORMANCE OBJECTIVE #1 -- Cost Effective Salary Administration System

PERFORMANCE OBJECTIVE #2 -- Work Force Excellence

PERFORMANCE OBJECTIVE #3 -- Work Force Diversity

Appendix F
OBJECTIVE STANDARDS OF PERFORMANCE

Section A -- Performance Objectives
Part V --HUMAN RESOURCES