Establishment of a Performance Rating System

October 14, 1966 REVENUE ADMINISTRATIVE ORDER NO. 09-66 TO : All BIR Officers and Employees SUBJECT : Establishment of a Performance Rating System This Order prescribes the performance rating system for all officers and employees of the Bureau of Internal Revenue pursuant to the provision of Section 26 of R. A. 2260, Civil Service Rule IX and Civil Service Memorandum Circular No. 6, s. of 1963. I. Purpose The performance rating system shall be continually administered to: 1. Foster the improvement of individual employee performance by providing effective supervision and counseling through the identification of the employee's weak and strong points. 2. Develop standards of satisfactory performance; 3. Strengthen supervisor-employee relations; and 4. Objectify the application of personnel policies in selection, placement, promotion, reduction in force and other processes of personnel administration. II. Scope The Performance Rating System shall cover all officials below the rank of Deputy Commissioner, whether in the competitive or non-competitive service. III. Policies 1. This Performance Rating System is hereby made an integral part of the personnel program of this Bureau. 2. Each employee shall be informed of his right and obligations under this System. 3. In establishing performance requirements, whether written or oral, the views of the employee for whose position the requirements apply will be solicited and fully considered. 4. The performance of each employee shall be evaluated fairly in relation to the performance requirements of his position. 5. Each employee shall be kept currently advised of how his performance meets requirements and shall be notified of his performance rating. 6. The strong qualities of employees shall be utilized in making work assignments insofar as possible. 7. Employees shall be given appropriate recognition for the merit of their performance and their contribution to efficiency and economy in the operation of this Office. IV. Definition of Terms 1. "Performance Rating System" is an orderly, systematic method of administering continuing appraisal, accurate recording and periodic reporting of employee performance. 2. "Rater" is the supervisor who shall have the authority to rate his immediate subordinate. 3. "Ratee" is the employee or officer being rated. 4. "Supervisor" is the one who has actual and direct supervision over other employees, notwithstanding the title of his position. 4. "Next Higher Supervisor" is the supervisor who has authority to review the ratings prepared by initial raters and who is next higher in rank to the latter in the organization hierarchy. 6. "Non-Supervisor" is one who does not exercise actual and direct supervision over other personnel, notwithstanding the title of his position. V Performance Standards 1. All employees shall be informed by their immediate supervisors what they are expected to do and how well they are expected to accomplish their jobs. This shall be done periodically with all employees and whenever an employee enters a new job. A discussion of that is to be done and how well it is to be done shall serve as the basis for continuing discussion of actual performance. 2. Performance standards (what the employee is expected to do and how well he is expected to do it) will be prepared in writing by the supervisor and a copy will be furnished to the employee. See attachment A to this Administrative Order for the format to be used in developing written standards. 3. In the development and discussion of written performance standards, the views of the employee will be solicited and fully considered. 4. Performance standards should be established in terms reflecting satisfactory performance in these aspects which are necessary for the successful operation of the job. cdt VI Appraising and Discussing Performance 1. The real value of the performance appraisal process is the day-to-day communication between the supervisor and employee. These discussions may vary from remarks on current accomplishments to general performance discussions. 2. During these discussions the supervisor might cover (1) Performance standards (2) the degree to which the employee is meeting these standards (3) current projects to illustrate standards and performance, and (4) career development of the employee. Supervisors should encourage employees to indicate their career goals whenever appropriate and discuss the employees next probable assignment, his long range objectives, and what he plans to do, to better himself for advancement. A discussion of career development possibilities may be more stimulating to an employee than a review limited to past performance and can provide the supervisor with the opportunity to develop the employee's abilities in the present job. 3. The content of such discussions should be varied from time to time and adapted to fit the current circumstances. 4. Documentation of continuing discussions should be kept to a minimum. However, supervisors should periodically note those issues which they believe they may need to refer at a later date. For example, a supervisor may have observed one or more strengths or weaknesses which may affect a formal personnel action in the future, namely promotion, removal or recommendation of an award. Use of the Performance Evaluation Form _____, (Attachment B to this Administrative Order) for this purpose would save time for the supervisor particularly in preparing future evaluations for Outstanding and very satisfactory rating. High factor marking supported by narrative examples should have sufficient justifications for approving officials to determine whether an outstanding rating is merited. VII Rating Procedures 1. Adjective ratings Four adjective ratings shall be used: (1) An Outstanding rating shall be given when performance not only materially exceeds all performance standards of the position but is unusual and deserving of special commendation. (2) A very satisfactory rating shall be given when performance exceeds the performance standards of the position in those aspects which are necessary for the successful operation of the job. (3) A satisfactory rating shall be given when performance meets the performance standards of the position in those aspects which are necessary for the successful operation of the job. (4) An unsatisfactory rating shall be given when performance fails to meet the performance standards of the position in one or more of those aspects which are necessary for the successful operation of the job. 2. Frequency of ratings (1) Performance ratings shall be given semi-annually, one on June 30, for the January to June period and another on December 31 for the July to December rating period. (2) Female employees who go on maternity leave shall also be rated for the period when they render actual services. The inclusive period of their maternity leave shall not be deducted under the factor of attendance. (3) A probationary period rating shall be made at the end of the sixth month of employment of an employee on probationary status. (4) Ratings will be postponed if they fall due under the following circumstances: a. Where the employee has served less than ninety (90) days in his present position his performance rating will be postponed until ninety (90) days shall have elapsed from the time he entered the duties of his present position. b. Performance rating of an employee on detail shall be given by his former supervisor in collaboration with supervisor of the Unit, Section or Division where he is presently detailed. c. When an official warning period for unsatisfactory performance has not expired, the employee will be given his rating at the end of the warning period. d. When the employee has not been performing satisfactorily but has not been given an official warning the supervisor will issue the warning immediately and rate the employee at the end of the warning period. e. When an employee is under suspension or has been notified of proposed suspension or other adverse action namely removal or demotion, within sixty (60) days following his return to duty from suspension, or withdrawal of a notice of proposed adverse action, the employee shall either be rated, or issued a 60 days warning for unsatisfactory performance if such warning has not already been issued. aisadc 3. Who shall rate (1) The Deputy Commissioner of Internal Revenue shall rate Heads of Departments and Regional Directors, which ratings shall be subject to confirmation by the Commissioner of Internal Revenue. (2) Rating of all other employees shall be done by the employees' immediate supervisor. 4. Assigning the rating (1) Supervisors will prepare Performance Evaluation Form _____ in triplicate at the end of the rating period for each eligible employee and will promptly notify employees of their assigned performance ratings. (2) Upon notification, supervisors will discuss the ratings with their employees. The discussion should include a follow-up and summary of the various evaluation meetings held with the employee during the rating period. In addition to evaluating the employee, the supervisor should recognize the ratee's good points and encourage him to describe what he thinks he has done well and what he would like to do better. The supervisor should develop a plan with each ratee which will help the ratee to do better in those aspects of the position in which there is room for improvement. (3) After the discussion the rater and ratee shall sign the Performance Evaluation Form _____ and note the date the rating was discussed. (4) The three copies of the rating shall then be forwarded by the rater to the reviewer for his review and/or concurrence. If a Very Satisfactory rating was assigned to the ratee, the rater will include a statement on the rating form or in an attachment thereto describing in what ways the ratee's performance exceeded the requirements of the position that justified the Very Satisfactory rating. Upon concurrence by the reviewer, one copy of the rating report shall be given to the ratee, one copy shall be kept in the corresponding unit or division and the original shall be sent to the Personnel Division. (5) If the evaluation calls for a rating of "Outstanding" the rater shall submit a written justification in detail for the rating as well as an additional copy of the accomplished performance rating form of the ratee concerned. If the ratee occupies a position below that of a department head or regional director the rating shall be reviewed by a committee composed of all department heads chaired by the Deputy Commissioner. After confirmation by this committee, or if the ratee is a Regional Director of Department Head, after approval by the Commissioner of Internal Revenue, a copy of the performance rating report together with the supporting justifications shall be forwarded by the Personnel Division to the Commissioner of Civil Service thru the Honorable, the Secretary of Finance for comment and recommendation, for a possible incentive award. A copy of the report shall also be furnished the ratee with a letter of commendation from the Commissioner of Internal Revenue. If the committee does not approved the rating of "Outstanding" the file shall be returned to the rating official indicating the rating assigned to the ratee on the basis of the record. The committee shall also advise the ratee and the Personnel Division of its disapproval of the outstanding rating. (6) If on the evaluation of a rater, the employee falls below the performance standards of the position in one or more aspects which are necessary for the successful operation of the job, the following procedure shall be followed: a. The rater shall give the employee a written warning of at least 60 calendar days containing a detailed explanation of the unsatisfactory performance. b. It shall be stated in the warning that the employee shall be given a rating of "unsatisfactory" unless his performance improves sufficiently to meet the standards for satisfactory performance or unless the improvement in performance indicates that these standards will be met within a reasonable period of time. c. The warning shall also indicate to the employee how he may improve his performance and that a reasonable opportunity for, and assistance in improving his performance shall be given to him. d. A copy of the warning shall be furnished the next higher supervisor or the chief of the organizational unit where the employee being warned belongs. e. If after the warning to the employee, his performance adequately improves and such improvement is maintained for a sufficient period of time, the rater shall assign a rating "satisfactory" to the ratee. However, if the employee's performance is not improved at the end of the warning period, the rater shall assign an "unsatisfactory" rating and shall recommend that the ratee be transferred, reassigned or separated from his position. VIII Appeals 1. An employee who feels that he has not been rated fairly or properly may appeal through channels for review of his performance rating to the Grievance and Complaints Committee. 2. The request for review shall be in writing and shall be made not later than the seventh day after receipt of his notice of evaluation of performance rating. cdta IX. Relationship between Performance Rating and Personnel Actions The performance rating of employees shall be considered in connection with the following personnel actions: 1. Placement The strong qualities of employees shall be utilized in duty assignments insofar as possible. 2. Promotion A current rating of "Satisfactory" or better shall be a requirement for promotion. 3. Incentive Award An employee for whom an "Outstanding" rating is approved shall be recommended for an incentive award. 4. Reduction in force The performance rating shall be one of the factors considered in determining retention in case of reduction in force. 5. Disciplinary Action An employee whose periodic performance rating is unsatisfactory shall be subject to administrative disciplinary action. X. Repealing Clause All previous orders, circulars, instructions or provisions in conflict with this Revenue Administrative Order are hereby superseded. XI. Effectivity This Order shall take effect January 1, 1967. cdta (SGD.) MISAEL P. VERA Commissioner of Internal Revenue APPROVED: (SGD.) ABELARDO SUBIDO Commissioner of Civil Service PERFORMANCE EVALUATION FACTORS: GUIDE TO RATERS GENERAL FACTORS 1. QUALITY OF WORK : Consider Is work accurate and thorough? Does it usually stand as presented or is correction frequently required? Is it neat and presentable? A. Work always complete, attractively presented, and accurate. Never makes serious errors. Never makes same mistake twice. B. Fits somewhere in between preceding description and following description. C. Work usually acceptable. Seldom needs major redoing. Seldom repeats mistakes. Generally adhere to applicable instructions. Work reasonably neat and presentable. D. Work frequently incomplete or needs to be done over. Often repeats same kind of mistakes. Sloppy appearance and arrangement. 2. QUANTITY : Consider The volume of acceptable work output. How fast the employee works how much he has accomplished. A. Completes work as quickly as possible, ahead of schedule. Seems to be able to organize his work, to take care of more important things first and still makes room for other assignments. B. Fits somewhere in-between the preceding description and following description. C. Generally completes work in reasonable amount of time. D. Tends to be lazy and wastes time unnecessarily. Often fails to meet deadlines. Let work accumulate when he shouldn't. 3. JOB KNOWLEDGE : Consider How well does he know and understand his job (procedures, techniques, instructions, etc.) Does he know where and how to locate information needed in his work? A. Well versed even on unusual and complex aspects of job. Frequently consulted by others on technical points. B. Fits somewhere in between preceding description and following description. C. Reasonably good knowledge of job. While not an expert, generally knows what to do and how to do it. D. Often displays lack of knowledge and understanding. Requires frequent help on routine problems. Must improve. 4. JOB ATTITUDE : Consider Amount of interest and enthusiasm show in work. How much interest does he show in other related activities? Does he demonstrate a desire to always want to do a quality job? Has he made an effort toward self-development? A. Demonstrates sustained motivation to do the best possible job. Eager to do more than his share. Constantly inquires into how his work relates to work of other activities. B. Fits somewhere in between description and following description. C. Reasonably conscientious. Enthusiastic in performing assigned tasks in own and related fields. Makes a real effort toward over coming difficulties. D. No real interest in job. Satisfied if he can "squeak through". Quibbles about doing work not specified in his position description. 5. PUNCTUALITY AND ATTENDANCE : Consider Does he report timely for work? Does he quit early? Does it take him too long to observe the coffee-break? Does he absent himself without permission? (All applications for vacation and sick leaves duly approved by his supervisor shall not be deducted from this factor.) A Is rarely tardy for work and stays until quitting time. Confines coffee-break to the 15-minutes period regulation. Obtains supervisory approval for sick and vacation leave as the case may be. B. Fits somewhere in-between the preceding and the following descriptions. C. Generally reports for work on time and generally leaves at quitting time. Usually observes the 15-minutes coffee-break period. Generally obtains supervisory approval for vacation and sick leave as the case may be. D. Frequently fails to report for work on time. Often quits work ahead of time. Frequently fails to obtain supervisory approval on vacation and sick leave. Frequently disregards the 15-minutes coffee-break regulation. 6. LEARNING ABILITY : Consider How quickly and how well he catches on to new procedures and techniques? How well does he retain information? How responsive is he to training and instruction? A. Quick to grasp new ideas. Very retentive memory. Soaks up information like a sponge. B. Fits somewhere in between preceding description and following description. C. Learns satisfactorily with appropriate explanation. Little repetition necessary. D. Slow to learn. Requires detailed explanation and frequent repetition. 7. DEPENDABILITY : Consider Can you rely on him to carry out an assignment? Do you have confidence that he will take care of his duties and responsibilities without checking on him? that he will keep you informed of any significant matters that you should know about? A. Completely trustworthy and reliable. Carries out his responsibilities without being checked on. Admits it when he doesn't have answer rather than mislead. B. Fits somewhere in between preceding description and following description. C. Generally reliable but may have to check up on him occasionally. Usually keeps you informed on significant matters. D. Forgetful and unreliable. Can't be counted on to carry out assignments without frequent prodding and checking. Never informs you of things you should know about. 8. COOPERATION : Consider Is he willing to work with others? How well does he get along with others? To what extent does he observe fundamental principles of courtesy in dealing with others? Is he sensitive to others? Is he sensitive to other's views and feeling? A. Genuinely considerate of others views and interests. Teamworker. Goes out of his way to be constructive and helpful. B. Fits somewhere in between preceding description and following description. C. Generally pleasant in his relations with others. Cooperates willingly when asked. Rarely annoys others or causes friction. Easy to get along with. D. Sour. Discourteous. Likes to keep to himself. Unwilling to lend a hand. Selfish, unfriendly and hard to get along with. 9. UTILIZATION OF TIME : Consider How effective is he in planning and organizing his time? How well does he distribute his time among his duties according to their relative importance? Does he meet deadlines without necessary delay? (For production-type jobs consider also quantity of work produced. If production records are maintained, compare output with others on same work.) A. Completes work as quickly as possible, ahead of schedule. Seems to be able to organize his work, to take care of more important things first and still make room for other assignments. B. Fits somewhere in between preceding description and following description. C. Generally completes work in reasonable amount of time. Meets normal deadlines. Does pretty good job of laying out his work and planning his schedule. D. Tends to be lazy and wastes time unnecessarily. Often fails to meet deadlines. Lets work pile up when he shouldn't. SUPERVISORY FACTORS 10. SUPERVISORY RELATIONS : Consider Does he inspire confidence and respect? Is morale in his unit high? Does his unit function smoothly when he is absent? Does he encourage employee participation in problem solving? Does he stand up for his employees in appropriate situation? A. Always considerate of employee interests and personal feelings. Encourages and promotes employee participation in resolving problems. Personal competence and enthusiasm inspire employees complete confidence and respect. B. Fits somewhere in between preceding description and following description. C. Generally shows interest in employee participation. Disciplinary measures are generally timely, just and effective. Morale in his unit is good. D. Shows no real interest in his employees. Neglects to take proper disciplinary measures. Plays favorites. Fails to inspire confidence in his employee. Tends to prefer status quo. cdt 11. EMPLOYEE RECOGNITION AND DEVELOPMENT : Consider Is he effective in directing on-the-job instructions? Does he counsel employees on strengths and weaknesses, and point out productive self-development activities? Does he recognize individual differences in people and treat them accordingly? Does he encourage employee creativeness and suggestions? A. Offers sound constructive advice on how to improve and develop. Perceptive in recognizing individual differences in employees, and in handling them accordingly. Actively inspires employee's suggestions and creativity. B. Fits somewhere in between preceding description and following description. C. Generally counsels employees on self-development activities. Recognizes the obvious areas of employee improvement and usually takes corrective action. Accepts the employee suggestion program as worthwhile. D. Conveys on-the-job instruction in piecemeal fashion. Employees keeps in dark on how well they are doing. Does not give talented employees special recognition or development. Does not encourage employee suggestions. 12. PLANNING AND ORGANIZATION : Consider How does he plan and organize work to be performed? Does he order his work in proper relative priority of importance? Does he devise effective methods for carrying out plans? Does his planning anticipate the long-range efforts? A. Extremely effective in laying out plans for accomplishing work of unit. Planning anticipates all probable difficulties. Forecasts of workload and resources needs well supported. B. Fits somewhere in between preceding description and following description. C. Plans his work reasonably well. Devises adequate work methods. Estimates of resources needed to workload and plans. D. Lacks orderly approach in devising methods to carry out plans. Planning usually does not take into account long-range effects. 13. DIRECTING AND CONTROLLING OPERATION : Consider Does he fix responsibility clearly and delegate commensurate authority and control corresponding to importance of the operation and competence of his employees? Does he keep tab on status of operation? Does he make necessary day-to-day adjustments to assure that there will not be backlogs in the work? A. Assigns responsibility and delegates authority clearly and effectively with no room for misunderstanding. Has complete grasp of work progress and controls in relation to schedules and objectives at all times. Is prompt and decisive in making day-to-day adjustments. B. Fits somewhere in between preceding description and following description. C. Generally keeps employees informed of work plans, procedures, and changes. Responsibilities and delegations of authority are reasonably clear. Maintains effective controls over work. D. Communication of work plan often vague and frequently results in misunderstanding and confusion. Controls are either too loose or too tight. Does not adjust work schedules to meet day-to-day needs. OTHER FACTORS 14. PROMOTABILITY : Review all the factors you have previously considered and evaluate his capacity for further advancement. A. Excellent prospect for advancement to greater scope and complexity of work. Confident that employee would perform very capably at a higher grade. B. Capabilities are well beyond job requirements. Very god prospect for advancement. C. Capabilities above job requirements. Employee would be satisfactory at higher grade if given training. D. Present job taxes capabilities. Employees shows no potential for promotion at this time. 15. COMMUNICATION SKILLS : Consider Does he communicate effectively? Are his thoughts expressed in a logical and orderly manner? Does he express himself clearly, concisely and accurately? Is his language appropriate for the situation? the receiver? A. Expresses himself clearly and effectively regardless of complexity of subject. Thoughts are logically presented and directly to the point. Use of language appropriate in all situations. B. Fits somewhere in between preceding description and following description. C. Reasonably clear in expressing himself although presentation might not be thoroughly organized. Stays pretty mush on course and gets point across in an acceptable manner. D. Does not communicate effectively. Presentation poorly organized. Can't stick to the point. 16. INITIATIVE : Consider Does he see what needs to be done and proceed to do it without being asked? To what extent does he originate ideas or work methods? How useful is he in improvising means for handling emergency situations? A. Self-starter. Improvises solution to difficult situations. Frequently originates complete suggestions and ideas. B. Fits somewhere in between preceding description and following description. C. Sometimes goes ahead on his own with what he sees needs to be done. Occasionally offers suggestions. D. Waits to be told what to do. Never has any suggestions to offer. 17. INDEPENDENCE : Consider Does he carry but job function on his own? To what extent does he rely on outside direction and guidance to get things done? Does he make decisions on matters for which he himself is responsible? A. Makes decisions expected of him without relying on others. Assumes full responsibility for any task assigned to him. B. Fits somewhere in between preceding description and following description. C. Generally works out own details. Occasionally relies on others to makes decisions on the more difficult matters for which he is responsible. D. Often depends on others to assist him in carrying out job duties. Expect other to make all decisions. 18. JUDGMENT : Consider How good is he at analyzing a problem, defining the issues, weighing alternatives and arriving at correct and logical conclusions. Are his decisions sound and realistic? A. Usually accurate in sizing up a problem or situation, weighing pertinent factors, projecting implications. Conclusions supported by sound logic even in complex or unusual matters. B. Fits somewhere in between preceding description and following description. C. Generally takes most of the pertinent factors into account. Decisions generally sound and realistic on problem of moderate difficulty. D. Often makes ill-considered and unrealistic judgments. Frequently fails to consider pertinent facts or foresee implications or actions. TASK AND PERFORMANCE STANDARDS