(a) Each agency as defined atsection 4301(1) of title 5, United States Code, shall develop one or more performance appraisal systems for employees covered by this subpart.
(b) An agency appraisal system shall establish agencywide policies and parameters for the application and operation of performance appraisal within the agency for the employees covered by the system. At a minimum, an agency system shall—
(1) Provide for—
(i) Establishing employee performance plans, including, but not limited to, critical elements and performance standards;
(ii) Communicating performance plans to employees at the beginning of an appraisal period;
(iii) Evaluating each employee during the appraisal period on the employee's elements and standards;
(iv) Recognizing and rewarding employees whose performance so warrants;
(v) Assisting employees in improving unacceptable performance; and
(vi) Reassigning, reducing in grade, or removing employees who continue to have unacceptable performance, but only after an opportunity to demonstrate acceptable performance.
(2) Identify employees covered by the system;
(3) Specify the flexibilities an agency program established under the system has for setting—
(i) The length of the appraisal period (as specified in§ 430.206(a));
(ii) The length of the minimum period (as specified in§ 430.207(a));