FEDERAL EMPLOYEE OCCUPATIONAL CLASSIFICATION SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B01152R001201450014-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: March 5, 2008
• Sequence Number: 14
• Publication Date: August 15, 1983
• Content Type: MEMO

Approved For Release 2008/03/05: CIA-RDP85BOl 152R001201450014-2
UNITED STATES
OFFICE OF PERSONNEL MANAGEMENT
WASHINGTON, D.C. 20415
August 15, 1983
MEMORANDUM FOR THE'CABINET COUNCIL ON MANAGEMENT AND ADMINISTRATION
FROM: Donald
Director
SUBJECT: Federal Employee Occupational Classification System
The overwhelming proportion of Federal Government occupations are
organized under a classification system. In general, there is a 15
grade system, ranging from the least demanding jobs at GS-1 to the most
demanding jobs at GS-15. Four major elements make up the full
classification system: (1) Primary Occupational Standards are derived
from statute into primary guidelines by the Office of Personnel
Management (OPM), to set generic policies for establishing each
occupational series, for setting qualifications for these occupations,
and for assigning factor evaluations scores to broad skill levels;
(2) Specific Occupational Standards are developed by OPM from the
primary standards, and are evaluated against data gathered from a field
study of how work actually is done in these occupations in the
Government; (3) Job Classification is then performed by agencies to
classify specific jobs under the occupational standards set by OPM; and
(4) Classification Audits are done by OPM to assess how well agencies
have classified under OPM standards, with compliance actions being
.ordered by OPM where misclassification is identified.
II. CURRENT STATUS
OPM estimates that agency overclassification under present
standards costs the government $680 million per year. OMB estimates
there is an additional poor position management expense, beyond the
formal classification system, of $8 billion per year. Historical data
indicate that the major distortion of the classification system took
place between 1950 and 1970, with only a gradual escalation since
then. Average grade rose from 5.4 in 1950 to 7.8 in 1970, and then to
8.1 in 1980. OPM estimates that a maximum of 50 percent of this growth
in grade can be attributed to technological change, suggesting that the
remainder is solely due to poor classification; i.e. Federal employees
are rated at least one and a half grades too high on the average. We
estimate that 14 percent of occupations are overgraded governmentwide,
17 percent in civilian agencies and 9 percent in DoD, and 30 percent of
all positions in the Washington, D.C. area.
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The basic structure of the classification system has not changed
since 1975. Since then, OPM has not questioned the primary standards,
but simply has produced specific new occupational standards and has
done audits of agency classifications. Every occupational standard
issue which has had even the potential of downgrading an occupation has
become very controversial. The controversy often becomes widespread
because private occupational associations, as well as all levels of
government, often follow OPM standards. In most cases, audits have
revealed significant overgrading, with agencies reluctantly complying
with the comparatively few audits OPM was able to perform nationwide.
III. ACTION FORCING EVENT
Two particularly controversial occupational standards were ready
for issue in late 1982, after substantial field analysis by OPM: the
contract and procurement standard, and the librarian standard. The
contract and procurement standard issue was brought to the CCMA on
December 8, 1982. OPM was tasked to review the standards with an
interagency committee. The committee has now met and resolved the
issues that were outstanding. All the major agencies are now satisfied
with the changes. OPM intends to proceed to issue the revised standard
for the contract and procurement occupation.
IV. ANALYSIS
As a result of the intensive analysis of the contract and
procurement standard, as well as experience gained with other standards
issued over the past two years, OPM has come to the following
conclusions. First, all three primary standards need to be reviewed.
It is almost a decade since they have received a comprehensive
analysis. OPM intends to study each of these to be sure these
essential elements of-the system are sound. This is especially so for
the qualification standards, since our preliminary analysis suggests
that they mandate more credentials than are necessary, both under the
law (5 U.S.C. 3308), and under the free market philosophy of reducing
barriers to entry in occupations.
Second, OPM intends to institutionalize the review process
initiated for the contract and procurement occupational study, whenever
a significant controversy arises over an occupational standard. That
is, an interagency committee recruited from the Governmentwide
Personnel Policy Group will be recruited to review these standards and
make recommendations to the Director of OPM.
Third, it is clear that classification has been over-delegated to
agencies, resulting in significant overgrading and expense. As already
noted in the Budget, OPM will be presenting a comprehensive plan to
manage "grade creep", especially the "bulge" identified by the Grace
Commission report for the GS-11 to GS-15 grade levels. This plan will
be submitted to CCMA within the next month.
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Fourth, it is clear that OPM audit evaluations study too small a
sample of Federal occupations. This is a result of its desk audit and
case study methodology. OPM intends to shift to a statistical, rather
than a case, evaluation method. This will allow central government
executives to more properly evaluate classification governmentwide, and
to control overgrading in the future.
V. DECISION
Approve OPM Approach
Disapprove OPM Approach
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