DOF Performance Management System

July 17, 2000 DOF DEPARTMENT ORDER NO. 043-00 ( Declared Repealed by D.O. 29-16) DEPARTMENT OF FINANCE PERFORMANCE MANAGEMENT SYSTEM In line with the Revised Policies on Performance Evaluation System enunciated under CSC Resolution No. 991792 and CSC MC No. 13 s. 1999, the Department of Finance adopts the herein Performance Management System to be referred to as DOF-PMS. I. Policies 1. The DOF-PMS adheres to the principle of performance-based security of tenure. It provides motivation and basis for incentives to performers and applies sanctions to non-performers; 2. The DOF-PMS operates on shared commitments and objective measures of performance results. Performance targets and standards or measures of results are planned and agreed upon by management, supervisors and employees; 3. The DOF-PMS enhances productivity by using performance targets and standards attuned to organizational goals and mandate; 4. The DOF-PMS recognizes the role of multi-stakeholders in the objective assessment and feedbacking on individual employee performance. It utilizes a cross-rating system between supervisor and employee-ratee; and 5. The DOF-PMS promotes transparency and provides mechanism for appeals and resolution of conflicts and/or disagreements. II. Objectives The DOF-PMS has the following objectives: 1. to continuously foster improvement of employee performance and efficiency; 2. to enhance organizational effectiveness and productivity; and 3. to provide all objective performance rating which serves as basis for incentives and rewards, promotions, training and development, personnel actions and administrative sanctions. III. Scope and Coverage The DOF-PMS applies to all first and second level employees both in career and non-career service. IV. Rating Period Performance evaluation is done every six (6) months ending on 30 June and 30 December of every year. However, if there is a need for a shorter or a longer period, the minimum appraisal period is at least ninety (90) calendar days or three (3) months while the maximum is not longer than one (1) calendar year. CaAcSE V. Procedures 1. Creation and Operations of Performance Evaluation Review Committee (PERC) A Performance Evaluation Committee (PERC) is hereby created with composition and responsibilities as follows: 1.a. Composition The PERC is composed of the following: Chairman Department Undersecretary for Administration Members Assistant Secretary Director, Central Administration Office Human Resource Management Officer V Two (2) Rank-and-File Representatives: one (1) for first level and one (1) for second level nominated by DOFPEA Respective Heads of Offices/Units/Divisions 1.b Responsibilities 1.b.1. Review of Employee's Performance Targets The PERC shall initiate the review and comparative assessment of employees' performance targets to ensure rationalization of employee workload particularly those holding similar positions and. working under the same work conditions and recommends necessary modifications or corrective action, if necessary. 1.b.2 Review of Performance Standards The PERC reviews performance standards adopted for each duty of a position in the different organizational units in the Department. It also ensures the adoption of uniform standards of measurements in rating employees holding similar positions, performing similar functions and working under the same conditions. 1.b.3 Determination of Final Rating At the end of the rating period, the PERC shall review documents, evaluates work accomplishment and performance ratings, conducts hearings or dialogues, if necessary, provide opportunities for employee or supervisor to defend a particular rating and eventually determine the employees' final rating. The PERC completes the review and approval of employees' rating not later than 30 days after the Personnel Services Division has submitted the same to the former. 1.b.4 Monitoring and Evaluation of DOF-PMS The PERC monitors and evaluates the effectiveness of the DOF-PMS. every year and effects or implements improvements essential to ensure its continued suitability to the different positions and needs of the DOF. 1.b.5 Internal Rules and Procedures The PERC shall meet with the respective groups to discuss/validate/confirm employee performance targets/standards for the rating period and to determine his/her final rating. Special meeting shall be held as need arises. 2. Setting of Performance Targets and Standards 2.a. Organizational Targets The preparation and setting of organizational targets shall be done not later than the last quarter immediately preceding each rating period. These organizational targets should be attuned to the vision and mission of the Department. 2.b Employee Targets Each employee prepares performance targets using the prescribed Performance Evaluation Form (PEF-1) based on the organizational targets set by this Department and the work program of the division or organizational unit where he/she belongs. All targets relate to job duties and organizational needs. Employee Performance Targets are the duties or work assignments given by the supervisor (rater) to the employee (ratee), with work output of each duty clearly stated by the rater and understood by the ratee and measured with a standard in quantity, quality and time set by mutual agreement of the rater and the ratee. The employee performance is rated on how far he/she exceeded or fell short of these targets based on the range of adjectival or numerical rating stated herein. It is a must that the supervisor and the employee agree on the targets set. They should affix their signatures in the space provided for in PEF-1. 2.c Setting of Performance Standards Each employee shall set his/her performance standards together with his/her targets. These standards which include measures of quality, quantity and timeliness shall be agreed by the supervisors (raters) and the employees (ratees). The general standards under Annex A may be used as reference. 2.d. Confirmation Employees' performance targets shall be confirmed by the PERC not later than the 30th day of the start of the rating period. Failure to act on it within this period, these targets become final and valid. cACEHI When the PERC finds the individual performance targets acceptable, it shall certify and confirm them. It shall ensure that no alterations in the confirmed performance targets and standards are made during the evaluation process. In instances of obvious disparity in the distribution of assignment and workload among employees, the PERC through the concerned division chiefs or unit heads shall cause the necessary corrective action in consultation with the concerned employees. 2.e Modifications Employees' performance targets for a given rating period which are duly confirmed by the PERC may still be modified based on changes brought about by new mandates and programs of the Department and the organizational unit. Modifications shall also be allowed in cases where an employee is given special assignments but such special assignments will no longer be treated as intervening tasks. The employee or the supervisor shall immediately notify the PERC of such modifications to serve as guide in the review of ratings of affected employees. 3. Progress Review The supervisor and the ratee meet at least once a month to review progress of work accomplishments. Review or discussion shall focus on problems and difficulties encountered and how to resolve them. They also discuss and agree on certain checkpoints in terms of schedule and output status in order to ensure accomplishment of the tasks. AacSTE 4 Appraisal Discussion and Rating Proper At the end of the evaluation period, the supervisor and the employee meet to discuss the latter's accomplishments against established targets and standards They both give their ratings in the prescribed form and settle/discuss differences, if there are any. Together, they compute the overall performance rating of the employee using the prescribed weight allocation and computation under this System. Comments and recommendations are required in the space provided for in PEF-1 to serve as guide in improving performance in subsequent evaluation periods and in other appropriate personnel actions. VI Mechanics of Rating 1. Levels of Performance Each employee is rated on the basis of the levels of performance set below: Adjectival Numerical Description Rating Rating Performance exceeding Outstanding 10 targets by 30% and above (O) of the planned targets Performance exceeding Very 8 targets by 15% to 29% Satisfactory of the planned targets (VS) Performance of 100% to Satisfactory 6 114% of the planned (S) targets; for accomplishments requiring 100% of the targets such as those pertaining to money or accuracy or those which may no longer be exceeded, the usual rating of 10 for those who met targets or 4 for those who failed or fell short of the targets applies. Performance of 51% to Unsatisfactory 4 99% of the planned (US) targets Performance failing Poor 2 to meet the planned (P) targets of 50% or below In determining the final equivalent adjectival rating of the employee, the range of overall point scores is converted as follows: 9.50-10.0 Outstanding (O) 7.5 1-9.49 Very Satisfactory (VS) 4.01-.50 Satisfactory (S) 2.01-4.00 Unsatisfactory (US) 2.00-Below Poor (P) 2. Components of Rating The overall rating of employees for a given rating period consists of two Parts: Part I Performance and Part II Critical Factors. HIAcCD 2.a. Part I - Performance Part I Performance is given weight of 70% of the overall rating of the employees. Rating on Part I Performance is the evaluation of actual accomplishment versus the planned level of performance in terms of quantity, quality and timeliness of work based on the performance standards agreed upon by both the supervisor and the ratee duly confirmed by the PERC. Corresponding weight allocation/percentage shall be assigned per target based on the nature, complexity, difficulty level and processes involved with the aggregate total of 100%. 2.b. Part II Critical Factors Part II Critical Factors is given weight of 30% of the overall rating of the employees. Rating on Part II Critical Factors reflects the behavioral dimensions that affect the job performance of the employee. For this purpose, factors like human relations, stress tolerance, work attitude, leadership (for supervisors only), judgment/decision-making (for supervisors only) and punctuality and attendance shall be used. TcEaAS Punctuality and attendance observed behavior of coming to office on time or to be present at work to complete assigned responsibilities. Punctuality and attendance is rated not separately but as combined factors treated as one item of Part II. Fifty percent (50%) of the rating of this factor is based on records such as fingerscan , print-out, pass slips and leave applications, etc. and the other 50% is based on actual attendance or presence in the place of work as may be observed. The first half is rated as follows: Punctuality 10 not more than 3 times tardy/undertime during the last 6 months 8 4-6 times tardy/undertime 6 7-10 times tardy/undertime 4 11-15 times tardy/undertime 2 more than 15 times tardy/undertime Attendance 10 not more than 4 days absent 8 5-8 days absent 6 9-12 days absent 4 13-16 days absent 2 more than 16 days absent The average for attendance is arrived at by dividing the rating of absences and undertime by 2. For this purpose, authorized sick leave, forced leave, maternity leave, paternity leave and privilege leave of absences are not included in the counting of the number of days absent. Human Relations integrates concerns for people at work, office clientele, and supervisor-subordinate relationship into work situations. 10 Very effective in dealing with public. Gets along easily with other members of the workforce. Has cordial relationship with supervisors, peers and subordinates. 8 Can be relied upon to deal with the public and is generally courteous and accommodating. 6 Has the ability to deal with the public and peers, although needs some advice at times. 4 Has some difficulty in dealing with the public, occasionally discourteous except when attending to important or influential persons. 2 Has considerable difficulty in dealing with the public. Draws negative reaction. Often discourteous and irritable. Stress Tolerance stability of performance under pressure or opposition. 10 Always calm and shows pleasant disposition Consistently confident and positive even during stressful conditions at work. Never loses patience and never allows tension and anxiety to affect workplace (performance in workplace). 8 Most of the time calm, confident and positive. Occasionally loses control during stressful conditions. 6 Normally calm, confident and positive. Occasionally loses emotional control during stressful conditions. 4 Often loses emotional control in dealing with stressful work situations. Often complains about people and situations at work. 2 Cannot handle stress. Highly emotional and into violent arguments with others. Work Attitude Willingness to accept additional responsibilities and accomplish the same with zeal and towards organizational goals. 10 Accepts additional responsibilities on top of regular duties and accomplishes them smoothly and efficiently. Initiates action to contribute to the achievement of organizational goals to the highest degree. Goes out of the way to take special care of equipment and materials. 8 Always acts immediately to accomplish assignment. Accepts one or two additional assignments with very good results. Uses and maintains office materials very well. 6 Normally does the work when told to do so. Accepts additional assignment but sometimes regular duties are being sacrificed. Initiates action on minor matters and normally takes care of equipments when reminded to do so. DaEcTC 4 Employee does not accept additional responsibilities. He/She shows in initiating work on his/her own. Sometimes abuses equipment and wastes materials. 2 Employee does not accept additional responsibilities. Irritable and discourteous in all aspects. Resorts to absenteeism when given assignment. Careless and abuses equipment and materials. Leadership (for supervisors only) the manner of guiding, influencing, motivating and developing confidence of subordinates to work as a team and accomplish assigned task, leading the organizational unit to achieve its goals and objectives enthusiastically. 10 Leads staff exceptionally well. Easily achieves high productivity through teamwork. Maintains a good balance of tasks and people concern. 8 Leads staff effectively. Often gets job done through teamwork. Staff are productive. 6 Leads staff adequately well. Usually gets job done. 4 Seldom exercises leadership over staff. Seldom gets job done on time. 2 Cannot lead staff. No teamwork. Productivity is slow. No balance of tasks and people concern. Judgment/Decision-making (for supervisors only) Ability to develop alternative solutions to problems, to evaluate fact or courses of actions, and reach sound decision and readiness to take action or commit oneself. SEcAIC 10 Has exceptional ability to develop alternative solutions to problems. 8 Judgments and decisions are always reliable and adequately meet job demands. 6 Normally able to interpret facts, develop alternative sources of actions and arrive at sound decisions. 4 Seldom develop alternative course of action to arrive at sound decisions. 2 Cannot make sound decisions. Rely on other people to offer alternative courses of actions. All ratings under Part II are computed based on averages of all factors and number of raters involved per category. 2.c Performance of Intervening Tasks The performance of intervening or additional tasks is duly considered only if these were done simultaneously with the planned targets. Intervening tasks are those which are neither inherent nor directly related to employee's plantilla or designated positions And may include memberships in ad-hoc committees, research work and other similar assignments which require a considerable amount of effort and time of the employees and are duly covered by an office order. Employee's performance of intervening tasks may be given a maximum of one (1) additional point to their overall rating provided the following criteria are met: a. Said task is difficult, technical in nature or requiring special skills. b. Said task is not within the regular functions of the employees or work program/performance contract of their divisions or units. c. There is urgency in the completion of the intervening task which has an impact on the organizational unit concerned. d. Non-compliance/performance of the intervening task will unduly prejudice the service; e. Employees' planned targets were all accomplished and rated at least satisfactorily; and AaCTcI f. Performance or completion of said intervening task will require an aggregate period of one week to two months. Special or additional assignments are no longer considered intervening task if it will significantly affect the performance of the employee's regular targets. In such a case, the same is treated as an allowable modification of regular target. 3. Cross Rating The DOF-PMS uses a cross rating scheme which involves employee-ratee and supervisor-rater. Under this scheme, each rater is allocated percentage weight as follows: Rater Overall Weights Supervisor Rater 65% Self Rater 35% 100% Supervisor Rater rates the Employee-Ratee in both Part I Performance and Part II Critical Factors using the prescribed Performance Evaluation Form (PEF-1). Self Rater rates himself/herself both Part I Performance and Part II Critical Factors using the prescribed Performance Evaluation Form (PEF-1). 4. How to Compute the Rating 4.a Supervisor and Employee Ratings on Part I Performance 1. Add all the scores under QN, QL and T for each work/activity for each rater and divide by the number of entries to get their respective Average Point Scores (APSs). 2. Multiply each Average Point Score by the assigned percentage weight for each work or activity to get the Equivalent Point Scores (EPSs). 3. Add all Equivalent Point Score (EPS) of both the Supervisor Rater and Self Rater separately to get their respective Total Equivalent Points Scores for Part I. 4. Multiply separately the Total Equivalent Point Score of both Supervisor Rater and Self Rater by 70% to get their respective Weighted Average Scores (WASs). 4.b. Supervisor and Employee Ratings on Part II 1. Using PEF-1, the Supervisor Rater and Self-Rater rate each factor. 2. Add all Supervisor Rater scores together and all Self Raters scores together, then divide by the total number of entries to get their respective Average Point Scores (APSs) for Part II. 3. Multiply each Average Point Score (APS) by 30% to get the Weighted Average Score (WAS) for each rater in Part II. 4.c. Overall Rating 1. Using the Summary of Rating portion of PEF-1, indicate the Raters Weighted Average Scores for both Part I and Part II. 2. Add the Weighted Average Scores for Part I and Part II of each rater to get the Overall Point Scores and multiply by the Rater's Percentage Weight Allocation to get their respective Overall Weighted Scores. 3. Add all Overall Weighted Scores to get the Total Overall Score or Final Numerical Performance Rating. 4. Add the rating for Intervening Task, if any. 5. Convert the Total Overall Score or Final Performance Numerical Rating to Adjectival Rating. The Client Rater Form (PEF-4) shall be used as feedback mechanism towards further improving public service but will not form part of the rating of the individual employee. VII. Performance Evaluation Form (PEF) PEF-1 Performance Evaluation Form-1 contains the work targets, accomplishments, rating of Supervisor and Employee-Ratee on Part I and Part II and the Summary of Ratings showing the final performance numerical and adjectival ratings of the employee. It also contains the signed agreement of the supervisor and the employee, PERC action and the comments and recommendations. It is the form used in all stages of the performance evaluation process. DIcTEC VIII. Submission of Performance Targets, Standards and Ratings Performance targets of employees are submitted to the PERC not later than fifteen (15) days before the start of the rating period. The PERC shall have confirmed these targets not later than the 30th day of the start of each rating period. Failure on the part of the PERC to act on these targets on the above period means that they are automatically confirmed. Performance standards shall be submitted in the same period together with the performance targets. Accomplished Performance Evaluation Forms (PEFs) with the final ratings are submitted to the Personnel Services Division not later than the 30th day after the end of the rating period. The PSD shall consolidate all the employee ratings and prepare a report to the PERC containing the statistics on PEF submission, distribution of ratings and list of protested or appealed ratings, if any, including all documents thereto. It shall submit all the above documents to the PERC within 60 days after the end of each rating period. Officials and employees who shall be on official travel, approved leave of absence, training or scholarship programs and who have already met the required minimum rating period of 90 days are required to submit their performance targets and accomplished Performance Evaluation Forms (PEFs) before they leave the office. DcCIAa For purposes of performance-based personnel actions, employees who are not given ratings for a particular period shall use their performance ratings obtained in the preceding rating period, except those who on vacation leave, even with an application approved by their supervisors. The DOF shall submit to the Civil Service Commission Field Office a list of employees with their corresponding performance ratings not later than three (3) months after every rating period. IX. Sanctions Non-submission to the PERC of the performance targets within 30 days before the start of the rating period and the Performance Evaluation Forms (PEFs) within 60 days after the end of each rating period, unless justification for such has been accepted by the PERC, is a ground for: a. Employees' disqualification for performance-based personnel actions which would require the rating for the given period such as promotion, training or scholarship, and productivity incentive bonus if the failure of the submission of the report form is the fault of the employees. b. Employees who fail to rate themselves will not be given final ratings; and c. An administrative sanction for violation of reasonable office rules and regulations and simple neglect of duty for the supervisors or employees responsible for the delay or non-submission of said performance targets and PEFs or both. Administrative action shall be filed against an employee the DOF-PMS to give undue advantage or disadvantage to the employees they rate. Procedure of filing complaints and imposing administrative sanctions shall be in accordance with the Uniform. Rules in the Conduct of Administrative Investigation. X. Uses of Performance Ratings 1. Performance-based Security of Tenure Security of tenure of those holding permanent appointments is not absolute but is based on performance. Employees who obtained Unsatisfactory ratings for two rating periods and Poor rating for one evaluation period may be dropped from the rolls. 2. Eligibility/qualification for Performance-based Awards and Incentives Grant of incentives like the productivity incentive bonus or other performance based incentives and awards shall likewise be based on the final ratings of employees as approved by the PERC. The PERC shall validate the Outstanding Performance ratings and may recommend concerned employees for performance-based awards. 3. Basis for Personnel Actions Performance ratings shall be used as basis for promotion, training and scholarship grants and other personnel actions. Only employees with Outstanding and Very Satisfactory Performance ratings shall be considered for the above-mentioned personnel actions and other related matters. XI. Transparency on Performance Ratings General information on the final rating of the employees or the number of the employees who got a particular rating (O, VS, S, US and Poor) per division/unit shall be made known to both management and rank and file employees, subject to the procedures set by the DOF-PERC. IASTDE XII. Appeals Employees who feel aggrieved or dissatisfied with their final performance ratings can file an appeal with the PERC within fifteen (15) days from the date of receipt of their PEF or after the appraisal discussion with his/her supervisor. Employees, however, are not allowed to protest the performance ratings of their co-employees. Ratings obtained by other employees can only be used as basis or reference for comparison in appealing one's performance ratings. The PERC shall decide on the appeals within one month from receipt. Decision of the DOF-PERC is appealable to the CSC Proper, only in exceptional cases. XIII. Effectivity The DOF-PMS takes effect on 31 July 2000. By authority of the Secretary: (SGD.) FLORENCIA G. TARIELLA Undersecretary ATTACHMENT Performance Evaluation Form AGENCY AGENCY PERFORMANCE EVALUATION SYSTEM (AGENCYPES) CLIENT RATER FORM (CRF) ______________________________ DATE _________________________________ NAME OF EMPLOYEE TO BE RATED ______________________________ POSITION ______________________________ OFFICE PLEASE READ THE INSTRUCTIONS CAREFULLY BEFORE ACCOMPLISHING THIS FORM COMMENTS AND RECOMMENDATIONS __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ NAME AND SIGNATURE OF RATEE _________________________________ CONTACT ADDRESS/OFFICE & TEL. NO. _________________________________ DATE