FAA Initiated Personnel Changes in Three Broad Areas, Some of Which Required Exemptions from Title 5

Once exempted from most provisions of title 5, FAA initiated a broad set of  personnel changes. For example, FAA’s workforce  planning initiative did not require an exemption from title 5. Characteristics of FAA’s Workforce and the Need to Negotiate Changes Have Affected the Pace and Extent of Reform Implementation

The variety of skills and areas of technical expertise represented in FAA’s  workforce has affected the implementation of the agency’s new  compensation plan. FAA Had Little Data on Reform’s Effects, and Views of FAA Officials Often Differed from Views of Managers and Employees We Interviewed

FAA had little or no data on the effects of many of the reform initiatives. FAA Has Not Fully Incorporated Elements Needed for Effective Human Capital Management

FAA’s lack of empirical data on the reform effort’s effects is one indication  that it has not fully incorporated elements that we and others have  identified as important to effective human capital management into its  reform effort. FAA also has not gone far enough in establishing linkage  between reform goals and program goals of the organization, another  element we have identified as important to effective human capital  management. We found that the lack of these elements has been pointed  out repeatedly in evaluations of FAA’s human capital reform effort, but FAA  has not developed specific steps and time frames by which these elements  will be established and used for evaluation. Incorporation of these  elements could also help FAA build accountability into its human capital  management. FAA’s Human Capital Reform Effort Lacks Needed Data Collection and Analysis, Performance Goals and Measures, and Linkage of Reform Goals to Program Goals of the Organization

The lack of baseline and comparative data for analysis and the lack of  performance goals and measures has made it difficult to objectively  evaluate the effects or success of FAA’s reform effort. FAA human resource management officials  agreed that the agency should have spent more time to develop baseline  data and performance measures before implementing the broad range of  reforms but said that establishing measures and goals and reaching  consensus on their use was a complex and difficult task with which all  federal agencies struggle. Challenges, including implementing reform initiatives throughout its  workforce with a wide range of skills and negotiating agreements with  employee unions, reflect difficulties that may be faced by other federal  agencies that seek to implement human capital management flexibilities. FAA is not able to determine the effectiveness of its human capital reform  initiatives because it has not incorporated key elements of effective human  capital management into its effort thus far.
Why GAO Did This Study

In 1996, the Federal Aviation Administration (FAA) undertook a human capital reform effort under one of the most flexible human capital management environments in the federal government, including broad exemptions from title 5 laws governing federal civilian personnel management. GAO was asked (1) to examine the changes FAA initiated in its reform effort, including whether they required an exemption from title 5 and their implementation status; (2) determine the effects of the reform effort according to available data and the views of FAA officials, managers, and employees; and (3) assess the extent to which FAA's reform effort incorporated elements that are important to effective human capital management.

What GAO Found

In 1996, FAA initiated human capital reform initiatives in three broad areas, some of which required exemption from title 5, and some of which have been fully implemented. FAA has not yet completed implementation of some key initiatives. For example, FAA's new compensation system remains unimplemented for about one-quarter of the agency's workforce--those staff whose unions have not reached agreements with FAA. FAA's need to implement initiatives among a workforce with a wide range of skills and to negotiate changes with multiple unions were among factors that affected the pace and extent of reform implementation. FAA had little data with which to assess the effects of its reform effort. While FAA human capital officials cited positive effects of FAA's reform effort, the views of managers and employees GAO interviewed were generally less positive. FAA's lack of empirical data on the effects of its human capital initiatives is one indication that it has not fully incorporated elements that are important to effective human capital management into its overall reform effort. These elements include data collection and analysis, performance goals and measures, and linkage of reform goals to program goals. FAA human resource management officials said that the agency should have spent more time to develop baseline data and performance measures before implementing the broad range of reforms but that establishing these elements was a complex and difficult task. FAA has also not gone far enough to establish linkage between reform goals and overall program goals of the organization. GAO found that the lack of these elements has been pointed out repeatedly in evaluations of FAA's human capital reform effort, but FAA has not developed specific steps and time frames by which these elements will be established and used for evaluation. Incorporation of these elements could also help FAA build accountability into its human capital management.