Role of the PRB in the Bonus Decision: Pitfalls to Avoid

The Civil Service Reform Act (CSRA) of 1980 created a Performance Review Board (PRB) to supervise the performance appraisal process for the Senior Executive Service (SES). The appraisal process has added significance because of the bonus incentives introduced by the Act. This new feature offers greater opportunity and flexibility for rewarding merit, but the potential for disruption and abuse exists. The responsibility of the PRB is to seek an effective, equitable strategy for the performance appraisal process. A study was done of the characteristics of an effective Executive Resources Board (ERB). Significant emphasis was placed on the PRB because it is a major component of the ERB structure. Four agencies were observed for commitment to CSRA reforms. The results indicate that there were problems with the performance appraisal process and bonus system, but that these problems are not insurmountable and the effort to overcome them is worthwhile. Agencies should try to improve timing and degree of effort at compatibility, openly discuss performance appraisal weighting schemes in a timely manner, and structure their PRBs to minimize favoritism.