6.430.3. Performance Management Program for Evaluating Managers, Management Officials and Confidential Management/Program Analysts

(1) Except in rare circumstances such as when the employee is on extended sick leave, the supervisor must meet with the employee within the first 30 days of the beginning of an employee's appraisal period, or when the employee is assigned to a new position for at least 60 days (e.g., temporary promotions, details), to review responsibilities and establish commitments or objectives and discuss the Retention Standard for the fair and equitable treatment of taxpayers.

(2) The performance appraisal cycle for managers, management officials, and confidential management/program analysts is based on the fiscal year and normally begins October 1.

(3) The supervisor reviews the employee's assigned SPD, verifying that it accurately reflects the assigned duties. If it does not, the supervisor contacts the Human Capital Office (HCO) for assistance in identifying the appropriate SPD or developing a new one.

(1) Managers, management officials, and confidential management/program analysts are rated against critical performance expectations.

(2) Critical performance expectations consist of three components:

• Retention Standard for the Fair and Equitable Treatment of Taxpayers.

• Responsibilities.

• Commitments or Objectives.

(1) Both the supervisor and the employee should review the responsibilities found in Part I, Section A, of the appropriate performance agreement to ensure mutual understanding of how each responsibility applies to the employees expected performance during the upcoming performance appraisal period.

(1) Commitments and objectives enable managers, management officials, and confidential management/program analysts to develop action items that will, in turn, carry out the Service's day-to-day operations, linking their activities to the IRS' goals and objectives. Each commitment or objective should relate to, and support, one or more of the responsibilities listed in the performance agreement.

(2) The supervisor should share his or her commitments with the employee prior to the employee's commitments or objectives being developed. The supervisor discusses how the employees commitments or objectives should link to the organizational workplans and balanced measures.

(3) The supervisor should review documents such as organizational program plans, business plans, site-specific issues/priorities, Equal Employment Opportunity/Affirmative Action plans, and balanced measures data when preparing to discuss with the employee what needs to be included in his or her commitments or objectives.

(4) The supervisor and employee should identify the most important areas on which to focus.

(5) The supervisor and the employee jointly develop the employee's commitments or objectives, with the reviewing official having the final authority for approval of the performance agreement.

6.430.3.3.4.3 (10-28-2011)

Getting Behind the Numbers

(1) Commitments or objectives should be qualitative in nature, but can and should be guided by the organization's quantitative performance measures. The reason for this restriction is fundamental to the intent of the balanced measurement approach and critical to changing behaviors. If individuals are held accountable solely for achieving specific numerical targets, the natural response is to focus attention on the numbers and not on the actions.

(2) "Getting behind the numbers" is a seven-step problem-solving process, as shown in Figure 6.430.3-1. Throughout this process, numbers are only a starting point. The objective is to identify individual commitments, objectives, or actions to improve organizational performance. IRM 1.5.2, Managing Statistics in a Balanced Measurement System - Section 1204 Certification and Independent Review Processes, provides more detail on how to use numbers appropriately in evaluating organizational and individual performance and the prohibition in using Records of Tax Enforcement Results (ROTERs) in evaluating the performance of managers, management officials, and confidential management/program analysts.

(3) In evaluating the performance of a manager, management official, or confidential management/program analyst, the numerical results achieved with any of the IRS Balanced Measures (Employee Satisfaction, Customer Satisfaction, and Business Results) will never equate directly to a particular rating. Rather, an evaluation should focus on the actions that were taken (commitments or objectives) against the objectives and the results achieved to improve performance in each responsibility. The numerical results are helpful only for making an initial assessment of the impact those actions had on the Responsibilities.

(1) The supervisor must discuss with the employee behaviors that will allow the employee to meet the Retention Standard for the fair and equitable treatment of taxpayers, circumstances that may result in a determination that the employee does not meet the Retention Standard for the fair and equitable treatment of taxpayers, and the potential impact of not meeting the Retention Standard. IRM Exhibit 6.430.2-1, Performance Management Program for Evaluating BU & NBU Employees Assigned to CJEs provides examples of Retention Standard behavior that may result in a "Met" or "Not Met" rating.

(2) Discussions concerning the Retention Standard for the fair and equitable treatment of taxpayers may include:

1. An explanation of the requirements of the Retention Standard for the fair and equitable treatment of taxpayers in relationship to the employees job expectations.

2. The potential impacts of not meeting the standard.

3. Avoidance of use of the words "deliberately" or "intentionally" in describing behavior that does not meet the standard.

4. An explanation of why infrequent lapses that are inadvertent or unavoidable will not result in a "Not Met" rating.

5. An explanation of why a "Met" or "Not Applicable" rating will have no effect on the summary evaluation rating, ranking in merit promotion actions, or entitlement to performance awards.

6. An explanation of why a "Not Met" rating for the Retention Standard for the fair and equitable treatment of taxpayers will result in a "Not Met" summary evaluation rating. A "Not Met" summary evaluation rating makes the employee ineligible for a performance award, within-grade increase (WIGI), career ladder promotion, competition for promotion, or satisfactory completion of a probationary period, and may result in the employees removal from the position and/or the IRS. A "Not Met" overall rating will also adversely affect an employees retention standing in a reduction in force (RIF).

Note: See IRM Exhibit 6.430.2-1, Performance Management Program for Evaluating BU & NBU Employees Assigned to CJEs and Retention Standard Guidance at http://hco.web.irs.gov/perfmgmt/evaluation/evalperf/nonmgrpolicy.html for additional information on the Retention Standard for the fair and equitable treatment of taxpayers.

(1) Executive Order 12958, Classified National Security Information, requires that all managers and management officials whose duties significantly involve the creation or handling of classified information and who handle national security information on a regular basis must have a critical element in their annual performance agreement dealing with this activity.

(2) Holding a national security clearance does not automatically require that the National Security Critical Element be included in the performance plan. The critical element is only applicable for managers and management officials who have regular, hands-on-work that requires classifying, safeguarding, and declassifying national security information. Each manager must determine on a case-by-case basis if their employees should be covered by this critical element.

(3) The U.S. Department of the Treasury Classified National Security Information Critical Element form should be added as a separate attachment to the performance agreements of affected managers, supervisors, and management officials.

(4) Because this element affects a limited number of employees, it has not been incorporated into Form 12450-A, Manager Performance Agreement, or Form 12450-B, Management Official Performance Agreement. The element should be attached to the performance agreement as long as the employee continues to perform work that meets the requirements of the Executive Order.

(5) Upon deciding to incorporate the element into the performance agreement of a manager, supervisor, or management official, the manager must discuss the critical element with the employee and have the manager or management official acknowledge receipt via signature on the form.

(6) Information about the Classified National Security Information Critical Element, a Decision Table for Implementation of the National Security Information Critical Job Element (For Managers, Supervisors, and Management Officials), and a link to the Classified National Security Information Critical Element for Evaluating Managers, Supervisors, and Management Officials form can be found under the “Related Links” heading on the Managers Performance Plan page of the HCO Performance Management website at: http://hco.web.irs.gov/perfmgmt/perfplan/mgrperfplan/index.html.

(1) The rating official, reviewing official, and employee sign and date the performance agreement to acknowledge that they have discussed the critical performance expectations. This discussion should occur within 30 days of the beginning of the appraisal period.

(2) The performance agreements for employees covered by the requirements of this section are:

1. Managers - Form 12450-A, Manager Performance Agreement.

2. Management Officials - Form 12450-B, Management Official Performance Agreement.

3. Confidential Management/Program Analysts (GS-343) - Form 12450-D, Management/Program Analyst Performance Agreement (Positions Designated as Confidential Only).

(3) Following the discussion, the supervisor should give a copy of the performance agreement to the employee and file the original in the Employee Performance File (EPF). For more information on the EPF, see IRM 6.430.3.3.3 and the Employee Performance File document at: https://portal.ds.irsnet.gov/sites/ERCDocs/2002/HCO/CompLvBr/EPFGuideforMgrs.pdf.

(4) The employee and supervisor should use the performance agreement and the critical performance expectations to monitor accomplishments or other significant events as they occur.

(1) After the supervisor and employee have reached agreement on a set of commitments or objectives, the supervisor should monitor the employee's progress in meeting the responsibilities and achieving the commitments or objectives throughout the appraisal period.

(2) At a minimum, the supervisor must conduct a mandatory mid-year progress review. This progress review generally occurs in April and should include a discussion of the employees progress in meeting expectations (Responsibilities, Commitments or Objectives, and Retention Standard for the fair and equitable treatment of taxpayers). This mandatory mid-year progress review must be documented on the Manager, Management Official, or Confidential Management/Program Analyst Performance Agreement.

(3) The supervisor should also document any other progress reviews held and provide a copy to the employee. Documented observations throughout the performance appraisal period serve as an aid in completing the mandatory mid-year progress review and the annual evaluation. The supervisor should identify the actions taken to accomplish commitments or objectives, and responsibilities.

(4) The supervisor should focus on the employees performance as it relates to the Retention Standard for the fair and equitable treatment of taxpayers and progress toward achieving commitments or objectives. If necessary, the supervisor should identify improvement opportunities.

(5) At any point during the performance cycle, the supervisor and the employee can review and revise commitments or objectives to reflect changes in the priorities of the Service.

• Changes may be needed for reasons such as: the expectations of commitments or objectives changed; or the Service's mission, strategic business goals, or business plans changed; or the level of available support (e.g., staff, dollars, training) decreased or increased.

• Changes to commitments or objectives must be made at least 60 days before the end of the performance appraisal period to avoid having to extend the appraisal period.

(6) The supervisor may NOT use Records of Tax Enforcement Results (ROTERs) in monitoring progress against critical performance expectations. The ROTERs do not convey whether an individual performed well under his or her critical performance expectations. For additional information on ROTERs, see IRM 1.5.2, Managing Statistics in a Balanced Measurement System - Section 1204, Certification and Independent Review Processes.

(7) Progress reviews including mid-year reviews may not be disputed. Assessments of performance at the time of a progress review may differ from the annual summary evaluation. Disputes filed before the end of the appraisal period would be premature. However, employees may submit documentation to the supervisor regarding matters of concern on the progress review.

(8) The following includes actions the supervisor should take to monitor progress against critical performance expectations:

1. Record observations as they occur, recalling past behavior is often difficult.

2. Focus on specific actions the employee took to accomplish commitments or objectives, and how responsibilities were demonstrated; avoid evaluating personality traits. Cite performance or results, not conduct or general impressions.

3. Document observations in sufficient detail to be understood by another supervisor.

4. Document performance for all employees consistently. Avoid comparing one employee to another.

5. Maintain performance data in the employees EPF. All documents used in formulating an evaluation must be shared with the employee prior to placing it in his or her EPF.

   Note: For additional information on EPFs, see IRM 6.430.3.3.3 and the Employee Performance File document at: https://portal.ds.irsnet.gov/sites/ERCDocs/2002/HCO/CompLvBr/EPFGuideforMgrs.pdf

   .

(1) If at any time during the appraisal period an employee's performance in one or more critical performance expectations (Responsibilities, Commitments or Objectives, or the Retention Standard for the fair and equitable treatment of taxpayers) falls below the "Met" level, the manager must provide assistance.

(2) The supervisor must consult with their servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" or "Minimally Satisfactory" to ensure that all parties understand the implications of failing to improve.

(3) Employees who do not meet the Retention Standard for the fair and equitable treatment of taxpayers, Commitments or Objectives and/or Responsibilities should be counseled as early as possible in the appraisal period. Failure to improve or to sustain a "Met" rating could impact an employee's ability to remain in his or her position. Failure to improve or to sustain a "Met" rating could also impact an employee's salary review and cause the employee to be ineligible for a pay increase under an IRS Payband System.

(4) Before a supervisor begins the formal process of taking a performance-based action, the supervisor needs to be aware that he or she has certain options. The law provides for two different processes for taking performance-based actions:

1. If a performance-based action is taken under 5 CFR Part 432, a formal opportunity to improve is required.

2. If a performance-based action is taken under the adverse action procedures of 5 CFR Part 752, an opportunity period is not required.

Note: Regardless of the process used, the supervisor must contact the servicing Labor Relations/Employee Relations Office for assistance.

(5) "Not Met" ratings must be reviewed and approved by an official higher than the rating official.

(6) When an employee's performance fails to meet established performance expectations at an acceptable level in one or more critical performance expectations (i.e., Retention Standard for the fair and equitable treatment of taxpayers, Commitments or Objectives and/or Responsibilities), the supervisor must notify the employee in writing. This notice must advise the employee of the following:

1. That his or her performance is unacceptable.

2. Which critical performance expectation(s) are not being performed in an acceptable manner.

3. What is required to perform at the rating level of "Met" or above.

4. Any assistance that will be provided to the employee.

5. What the reasonable period to demonstrate acceptable performance will be.

6. Failure to perform at an acceptable performance level may result in removal, reduction in grade, withholding of a WIGI, denial of a performance-based increase, or reassignment depending upon the performance factors.

   Note: Supervisors must contact their servicing Labor Relations/ Employee Relations Office for assistance in dealing with an employees failure of a critical performance expectation.

(7) If the employee demonstrates acceptable performance during the opportunity period, the rating official retains the notice of unacceptable performance in the EPF for one year from the date the opportunity period became effective.

1. In accordance with 5 U.S.C 4303(d) if, because of performance improvement by the employee during the notice period, the employee is not reduced in grade or removed, and the employee's performance continues to be acceptable for one year from the date of the advance written notice, any entry or other notation of the unacceptable performance for which the action was proposed must be removed from any record, manual and automated, relating to the employee.

2. The rating official is responsible for removing and destroying such records from the EPF and for initiating removal from the Service's automated personnel records.

(8) Saving Provision - Any administrative action initiated (e.g., an action taken against "Not Met" employees under 5 U.S.C 4303) must continue to be processed consistent with the procedures and requirements of the program in effect when the action was initiated.

(9) A rating of "Minimally Satisfactory" or "Not Met" will also lead to the employee's ineligibility to receive a within-grade increase, career ladder promotion, or to complete his or her probationary period.

(10) A rating of "Minimally Satisfactory" or "Not Met" will also lead to the employee's ineligibility to receive a basic pay increase under an IRS Payband System.

(1) The EPF consists of all performance ratings and other performance-related records maintained on an IRS employee in accordance with 5 CFR 293, Subpart D.

(2) Management is responsible for creating records concerning employee performance and maintaining them in accordance with the Privacy Act and Freedom of Information Act regulations.

(3) At a minimum, the EPF should contain forms and documents which:

1. Record and support the performance appraisal and individual performance plans.

2. Are used by the supervisor to recommend a personnel action affecting an employee when the basis for the action is performance related.

3. Are furnished in support of recommended actions and the agency's final decision on the matter.

   Note: Other types of documents and forms may include Individual Development Plans (IDPs), recommendations for training that are performance-related, and copies of supervisory counseling session records resulting in performance-based personnel actions.

(4) The following documents must be maintained for four years:

• The Performance Agreement (Forms 12450-A,12450-B, or 12450-D appropriate for the employee's position).

• Progress review(s) documentation.

• Employee self-assessments.

• Documented workload reviews, case file reviews, and job visitations.

• Any other documentation that supports the performance rating.

(5) The supervisor must keep performance records in the EPF as long as necessary, if needed in connection with a grievance, appeal or judicial proceeding.

(6) For employees who are permanently changing positions within the IRS, the supervisor will ensure the employee's entire EPF is forwarded to the gaining supervisor.

(7) For employees who are accepting outside employment and leaving the IRS, who are accepting employment with another government agency, or who are resigning or retiring from the IRS, the supervisor must remove all of the ratings of record completed within the last four years from the separating employees EPF, attach these ratings of record to Transmittal Form 3210, and forward the package to the following address:

Internal Revenue Service - OPF Consolidation Site
440 Space Center Drive
Lee's Summit, MO 64064

(8) The National Archives and Records Administration staff will ensure the ratings of record are filed in the Official Personnel Folder (OPF) before being sent to the Federal Records Center if the employee resigns or to the gaining agency if the employee transfers.

(9) Supervisors must destroy any remaining performance related documents unless such records are needed in connection with a grievance, appeal, or judicial proceeding.

(1) All employees who have served the minimum appraisal period of 60 calendar days are entitled to an annual performance appraisal that becomes the rating of record.

(2) Permanent supervisors, complete the annual performance appraisals for employees under their authority.

(3) Employees who are temporarily promoted or detailed to a supervisory position have the authority to complete the annual performance appraisals for employees under their supervision, as long as the employees meet the requirements for an annual performance appraisal. There is no minimum period of time required for this authority.

(4) The employees performance must have been observed a minimum of 60 days in the appraisal period by any supervisor who was responsible for assigning, reviewing, and evaluating the employee's work. However, it is not necessary for the employee's current supervisor to have observed the employees performance under a signed performance plan for 60 days or more.

(5) The supervisor should consider the following when evaluating performance to complete an annual appraisal:

1. Position description.

2. Performance Agreement.

3. Documents in the employees EPF.

4. Mid-year and other progress reviews.

5. Employee's written documents (management briefings, memos) and/or presentations given

6. Employee's self-assessment.

7. Feedback from coworkers, taxpayers, and other customers.

8. Team assignments and contributions to the work group.

9. Special achievements.

Note: For more information on the various reasons for performance appraisals, see IRM 6.430.2, Exhibit 6.430.2-3.

(1) Self-assessments are narrative descriptions or lists of accomplishments that the employee develops to describe his or her realization of goals, objectives, achievements, and significant accomplishments or shortfalls during a specified appraisal period.

(2) An effective self-assessment describes the specific actions taken by the employee to accomplish work requirements identified by responsibilities, commitments or objectives, and the Retention Standard for the fair and equitable treatment of taxpayers.

(3) As the end of the performance appraisal period approaches, the supervisor should request that the employee prepare a written summary of his or her performance not to exceed two pages. The supervisor should explain that the self-assessment becomes a part of the manager's, management official's, or confidential management/program analyst's performance agreement. Providing a self-assessment contributes to the preparation of an accurate summary evaluation.

(1) This narrative is limited to the space on the form and should outline the key accomplishments for each commitment or objective and relate accomplishments to performance in the responsibilities. The supervisor should also consider all the performance agreements completed during the appraisal period for temporary assignments.

(2) Do not include ROTERs in the Summary Narrative; ROTERs are not an indication of whether the employee performed well against the critical performance expectations.

(3) In completing the Summary Narrative:

1. Be concise, but descriptive enough to give the next level reviewer an accurate picture of the strengths, development needs, and overall effectiveness of the employee.

2. Focus on what is important for that particular job and the performance agreement.

3. Be clear about whether the employee exceeds, meets, or does not meet the Commitments or Objectives and Responsibilities.

4. Ensure that the Summary Narrative is consistent with the focus of the commitments or objectives and responsibilities outlined in the performance agreement.

(4) While the Retention Standard for the fair and equitable treatment of taxpayers is not normally addressed in the Summary Narrative, it must be discussed if the rating for the Retention Standard is "Not Met."

(1) The supervisor must use the rating definitions found in this section.

(1) The summary evaluation provides one rating for the combined performance against the Retention Standard for the fair and equitable treatment of taxpayers, the Responsibilities, and the Commitments or Objectives.

(2) The supervisor must also consider the rating for the National Security Critical Element for those managers or management officials who are covered by that element. Failure of the National Security Critical Element is treated in the same manner as the failure of the Retention Standard for the fair and equitable treatment of taxpayers.

(3) The summary evaluation balances the Retention Standard for the fair and equitable treatment of taxpayers, Responsibilities, and Commitments or Objectives for the final rating and ties the Commitments or Objectives directly to the five Responsibilities and should ensure balance among all of the Responsibilities.

(4) The supervisor should only assign the annual summary evaluation at the end of the appraisal period for an employee who is on a permanent assignment or who is on a temporary promotion or detail at the end of the employees appraisal period and meets the conditions specified in IRM 6.430.5.3, IRM 6.430.5.4, and IRM 6.430.5.5.

(5) Office of Personnel Management (OPM) regulations prohibit setting quotas for summary evaluation ratings (i.e., a forced distribution of summary levels).

(6) Supervisors can complete a rating up to 364 days following the end of the appraisal period. Lengthy delays should be extremely rare due to the potentially negative impact on both the individual and the organization.

(7) The approving official has final authority to approve the summary rating.

(8) It is not necessary for the supervisor to have observed the employees performance under a signed performance agreement for 60 days or more. However, the employees performance must have been observed by at least one other supervisor under a signed agreement for a minimum of 60 days within the appraisal period. In rare cases, it may be necessary to extend the appraisal period until the minimum 60 days has been met.

(9) If the employee has insufficient performance during the appraisal period to be assigned a rating of record, the employee will be designated "Not Ratable" for that period.

(1) A new employee begins his or her regularly scheduled annual appraisal period upon entrance on duty. This may be at any point in the period of October 1 through September 30. A supervisor should begin monitoring a new employee immediately to determine if the employee is willing and able to perform the work and is otherwise suited for retention in the position.

(2) Although formal performance improvement plans are not required for employees who are serving probationary periods, a supervisor should provide an employee who is not meeting his or her Responsibilities and Commitments or Objectives with enough information to help the employee understand how he or she is failing and how the employee might improve.

(3) Upon determination that a probationary employee either will not or cannot meet expectations, the supervisor must begin action to terminate the employee from his or her position and/or from Federal service.

(4) A rating of "Met" or higher rendered early during a probationary or trial period does not preclude a subsequent decision that the employee is not performing at expected levels or otherwise suitable to be retained. However, a supervisor should be able to provide specific examples either:

• How performance and/or conduct deteriorated after the rating was assigned, or

• How the conduct used to support the termination was unrelated to the performance appraisal.

(5) Supervisors should consult with the servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" to ensure that all parties understand the implications of failing to improve.

(1) Employees serving probationary periods for initial appointments to supervisory/managerial positions who do not meet expectations set forth in performance plans that relate to supervisory/managerial responsibilities will be returned to non-supervisory positions. That decision can be made at any time during the one year probationary period.

(2) Although formal notice and opportunity to improve are not required, supervisors generally should provide at least enough information so that the new supervisor understands specific deficiencies in time to make corrections.

(3) A rating of "Met" or higher rendered early during the supervisory/managerial probationary period does not preclude a subsequent decision that the individual is not successfully performing the supervisory/managerial aspects of his or her position. However, a supervisor should be able to provide specific examples of deficiencies that occurred after the rating was rendered.

(4) Decisions to remove probationary employees may be made at any time during the probationary period.

(5) Supervisors should consult with the servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" to ensure that all parties understand the implications of failing to improve.

(1) A departure appraisal is a performance appraisal prepared when either the supervisor or employee moves from a permanent or temporary assignment to another permanent or temporary assignment.

(2) The employee must have been provided a performance agreement and served in the position for a minimum of 60 days to receive a departure appraisal.

(3) Each critical performance expectation is given a rating; however, a summary evaluation is not assigned unless the employee or supervisor departs his or her position within the last 60 days of the appraisal period and the appraisal becomes the rating of record.

(4) Types of departure appraisals:

1. Supervisor Departure: If a supervisor departs his or her position, a departure appraisal must be prepared for the employees under the supervisor's work unit. If the employee being rated is a manager or management official, the departure appraisal will become the employee's rating of record if the supervisor's departure occurs within the last 60 days of the employee's appraisal period.

2. Employee Departure: If an employee departs his or her position, the supervisor must prepare a departure appraisal for that employee. The employee's departure appraisal will become his or her rating of record if the departure occurs within the last 60 days of the employee's appraisal period. If not within the last 60 days, the employee's new supervisor will consider the departure appraisal when preparing the employee's rating of record.

(5) If a supervisor is assigned to a new organization and the employee accompanies the supervisor to the new organization and will occupy the same position, a departure appraisal is not required.

(6) The supervisor must sign the departure appraisal and provide a copy to the employee for the employee's signature. The approving official's signature is not required unless the departure appraisal will become the employee's rating of record.

(7) All departure appraisals must either be sent to the employee's new office (with the employee's EPF), if the employee is changing positions, or placed in the employee's EPF when the supervisor changes positions.

(8) The rating official should consider all departure appraisals as input for preparation of the employees annual rating of record.

(9) Departure appraisals are not required for employees leaving the IRS and not going to other Federal employment. For example, departure appraisals are not required for employees who resign or retire.

(1) The employee's most recent rating of record will be used for merit promotion in nearly all cases.

(2) A supervisor may prepare a new performance appraisal for merit promotion purposes only when the employee is newly hired or has returned to duty after a lengthy absence and has no rating of record on file.

1. To be provided a merit promotion appraisal after a lengthy absence, the employee must not have had at least 60 days of performance under a signed performance agreement for the most recently completed appraisal period.

2. The newly hired employee must have been on board for at least 90 days after an initial appointment.

3. In either instance, the employee must meet the minimum appraisal period requirements for the current appraisal period.

(3) These merit promotion appraisals cannot be used as the employee's rating of record and are valid only for the specific merit promotion action.

(4) Since a merit promotion appraisal cannot become a rating of record, no approving official signature is required and no summary evaluation is assigned.

(5) Managers, management officials, and confidential management and program analysts who apply for bargaining unit positions must have their most recently completed performance appraisal converted to the performance appraisal form used for bargaining unit employees. Exhibit 6.335.1-4 of IRM 6.335, Promotion and Internal Placement, contains guidance on how that is accomplished.

(6) For a "Not Ratable" employee who has served 90 days on a competitive appointment but not served 60 cumulative days under a signed performance agreement, the supervisor must submit a statement to the servicing Employment Office indicating that the employee is "Not Ratable."

(7) These "Not Ratable" employees cannot receive any type of performance appraisal for merit promotion, even a "presumptive" Fully Successful appraisal. Employment Offices will not accept "presumptive" Fully Successful appraisals for merit promotion.

(1) The OPM regulations require that the decision to grant or deny a WIGI must be supported by the employee's most recent rating of record. If the most recent rating of record does not support the decision, a new rating must be prepared.

(2) A new rating of record is required when:

1. A WIGI was previously denied and the employee's performance has improved to the "Fully Successful" level making the employee eligible for a WIGI.

2. The employee's most recent rating of record is at least "Met" but the employee's performance has now decreased below that level which would make the employee no longer eligible for the WIGI.

(3) This rating of record prepared to support or deny the WIGI becomes the employee's new rating of record for all purposes.

(1) A supervisor may be unable to rate an employee at the end of the performance appraisal period, in which case no rating of record shall be recorded for the employee for that appraisal period.

(2) Examples of "Not Ratable" situations :

1. The employee was not assigned an approved performance plan for his or her position for at least 60 days during the appraisal period;

2. The employee is newly-hired and does not have 60 days remaining in his or her performance appraisal period;

3. The employee was on extended leave and did not have at least 60 days of performance during the appraisal period;

4. The employee was detailed to a position excluded from the performance appraisal requirements in 5 CFR Part 430, by law, or other OPM regulation.

(3) If the supervisor determines that the employee is "Not Ratable" at the end of the employees designated performance appraisal period, the supervisor must complete the performance agreement in the automated performance appraisal system and indicate that the employee is "Not Ratable" and specify the reason for that determination in the space provided.

(4) In those cases where an non paybanded employee cannot be rated, the employee may be granted a "Waiver of Requirement for Determination" for a WIGI as specified in 5 CFR 531.409(d).

(1) The OPM regulations and IRS policy prohibit retroactive ratings of record.

1. The OPM regulations (5 CFR 430.208(i)) do not permit the assignment of a rating of record for an earlier appraisal period, if a rating was assigned for a subsequent period or if the agency's established deadline for providing a rating of record has passed.

2. It is the Service's policy that supervisors can effect a rating of record up to 364 days following the end of the employee's appraisal period, unless a rating of record for a later period has been completed. Once that 364 day period has passed, no rating of record can be assigned for the previous appraisal period.

(2) Exceptions include appraisals changed as a result of:

1. A grievance, complaint, or other formal proceedings permitted by law or regulation.

2. When the Service determines that a rating of record was incorrectly recorded or calculated.

(1) Presumptive ratings for ratings of record are prohibited by 5 CFR 430.208 (a)(2).

(2) A rating of record can be based only on the evaluation of actual job performance for the designated performance appraisal period. A supervisor must not issue a rating of record that assumes a level of performance by an employee without an actual evaluation of that employee's performance.

(1) Supervisors are also required to discuss Form 13236, Evaluation of Managerial Potential (EMP). The EMP is completed at the end of each appraisal period to identify leadership competencies for development and to determine potential in the competitive process. Recently many managers completed the four stages of the Leadership Succession Review (LSR) assessment which also identifies leadership competencies for development. Until further notice, managers who have completed all four stages of the LSR will not be required to complete the EMP annually as part of the appraisal process. Managers who have not completed all four stages of the LSR assessment will continue to complete the EMP as part of the annual appraisal process. Note: In the near future the EMP will be obsoleted and be replaced with LSR leadership competency ratings in the Merit System Promotion competitive process.

1. Management officials, confidential management/program analysts, and other first time applicants for management positions may request the form be completed at any time; however, once completed, their EMP will remain in effect for the duration of their performance cycle.

2. For additional information on the EMP form, visit the Management Selection Program Resource Center web site at http:/hco.web.irs.gov/recruitstaff/internalplac/meritpromo/msp/index.html.