Adoption of a Performance Contract System as a Basis for the Evaluation of the Performance of Officials in the Career Executive Service

March 15, 1991 REVENUE MEMORANDUM CIRCULAR NO. 28-91 SUBJECT : Adoption of a Performance Contract System as a Basis for the Evaluation of the Performance of Officials in the Career Executive Service TO : All Revenue Officials and Employees and Others Concerned For the information and guidance of all revenue officials and employees, quoted hereunder are Administrative Order No. 204 issued by the Office of the President and Career Executive Service Board Circulars No. 90-03 and 90-04 on the Performance Contract dated December 16, 1990, respectively. "WHEREAS, public officials are at all times accountable to the people and are required to serve them with utmost responsibility, integrity, loyalty and efficiency; WHEREAS, corollary to the principle that appointment of officials in the Civil Service shall be determined according to merit and fitness is the concomitant obligation and responsibility to maintain an acceptable level of performance, to keep fit, to maintain merit and to exercise responsiveness and efficiency in office; WHEREAS, the adoption of measures for the promotion of morale, efficiency, integrity, responsiveness and courtesy in the Civil Service is a continuing policy of the government to account for their accomplishments or performance while in office; casia NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the power vested in me by law, do hereby order: Sec. 1. Performance Contract . All department secretaries and heads of agencies of the National Government-Owned or Controlled Corporations shall require all third level officials in their respective Departments and Agencies to prepare and enter into a semi-annual/annual performance contract with them. The performance contract shall be based on the mandates, objectives, programs, projects and activities of the respective offices of these officials for the Calendar Year. Sec. 2. Purpose of Performance Contract . The performance contract shall serve as a basis for the periodic evaluation of the performance of third level officials to be conducted by the heads Departments and Agencies. Sec. 3. This Administrative Order shall take effect immediately. DONE in the city of Manila, this 19th day of December, in the year of Our Lord, nineteen hundred and ninety. (Sgd.) CORAZON C. AQUINO By the President: (Sgd.) OSCAR ORBOS Executive Secretary Pursuant to the provision of the Career Executive Service Law and in the furtherance of Board Resolution No. 90-06, and of the directive of the President, the following guidelines are issued for the implementation of the Performance Contract System for officials in the Career Executive Service (CES). cdt Sec. 1. Performance Contract . All department secretaries and heads of agencies of the national government including government-owned or controlled corporations shall require all officials in the CES in their respective departments and agencies to prepare and enter into a semi-annual or annual performance contract with them or with their respective superiors. The performance contract shall focus on the primary responsibilities of the officials based on the mandates, goals and objectives of the offices where they belong. Sec. 2. Purpose of Performance Contract . The performance contract shall serve as the basis for the periodic evaluation by the superiors of the accomplishments of officials in the CES in accordance by the Career Executive Service Performance Evaluation System (CESPES) as prescribed by the Career Executive Service Board (CSEB). Sec. 3. Contents of Performance Contract . The Performance Contract shall contain the following: a. List of projects, activities and other undertakings which the official binds himself to accomplish for a particular year. As far as practicable, it shall provide for measurable targets and outputs; and b. The Secretary's or superior's commitment and support to ensure successful implementation of the above undertakings. The performance Contract may also provide room for special assignments and other ad hoc activities that are given from time to time which may constrain successful implementation of the promised undertakings. Sec. 4. Drawing Up the Performance Contract . The performance contract shall be negotiated between an official in the CES and his superior at the start of each year. A final copy of the performance contract signed by both the official and his superior shall be furnished the Career Executive Service Board. Sec. 5. Non-Submission of Performance Contract . Non-submission of the Performance Contract shall be a valid ground for disciplinary action. Sec. 6. Effectivity . This circular shall take effect immediately. (Sgd.) Patricia A. Sto. Tomas Chairman Attested by: (Sgd.) ELMOR D. JURIDICO Executive Director Pursuant to the provisions of the Career Executive Service Law and in the furtherance of Board Resolution No. 90-05, the following guidelines are issued for the implementation of the Performance Evaluation System for officials in the Career Executive Service. 1. Career Executive Service Performance Evaluation System (CESPES) . The Career Executive Service Performance Evaluation System (CESPES) the parameters, methods and processes of which are provided below is hereby adopted as the system for the periodic evaluation of the performance of officials in the Career Executive Service. 2. Objectives of the Career Executive Service Performance Evaluation System . The CESPES has the following objectives: a. To evaluate the official's accomplishments of specific targets relative to his office's goals and objectives as defined in his performance contract; b. To evaluate the official's managerial competence; and c. In general, to utilize the performance evaluation results, as applicable, for determining security of tenure in CES, appointment and promotion in rank, grant of incentives and awards and formulation of CES career development programs. 3. Coverage . The Career Executive Service Performance Evaluation System shall cover all Career Executive Service Officers (CESOSs), Career Executive Service Eligibles, and incumbents of CES positions in the various departments and agencies of the national government including government-owned or controlled corporations. 4. Frequency and Period of Evaluation . The Career Executive Service Performance Evaluation System shall be conducted annually and completed within the first quarter of the year. The performance of the official during the preceding year shall be the subject of the evaluation. 5. Criteria of Evaluation . An official in the Career Executive Service shall be evaluated on two (2) performance dimensions, namely: a. Accomplishments of office goals and objectives particularly those undertakings contained in his performance contract; and b. Managerial competence which refers to his effectiveness in managing work, people, resources, and linkages. 6. Performance Contract As A Basis for Evaluation of Accomplishments . To ensure an objective evaluation of accomplishments, an official in the CES shall be evaluated by his superior on the basis of his performance contract. The official shall provide the Board a copy of his performance contract. 7. Raters . The official shall be rated by his superior and by at least a majority of his subordinates who have personal knowledge of his performance. The subordinates shall include the official's immediate staff and all other office personnel directly reporting to him. 8. Rating Forms . Two rating forms shall be used in the evaluation of performance, namely: a. Superior Rating Form which mainly measures the official's accomplishments; and b. Subordinate Rating Form which mainly measures the official's managerial competence. cd i 9. Rating Scale . The performance of the official in each of the two performance dimensions shall be rated on a 7-point scale ranging from Outstanding to Unsatisfactory. 10. Rating Formula . Each performance criteria and source of rating shall be assigned the following weights: Performance Criteria % Accomplishments 70 Managerial Competence 30 100% Sources of Rating % Superior (90% of 70) 63 Subordinate (10% of 70) 7 Superior (50% of 30) 15 Subordinate (50% of 30) 15 100% 11. Conduct of CESPES . The Board shall conduct CESPES annually. In pursuance of such activity, the Board may seek the assistance of CES Coordinators in the central offices and on the CSC Regional Offices. 12. Reports of Ratings . The Board shall provide the Secretary and/or the head of the agency or corporation concerned with report agency. The Board shall also furnish all ratee-officials with copies of their performance ratings. 13. Repealing Provisions . The provisions of any rule or regulation previously issued by the Board inconsistent herewith are hereby repealed and/or modified accordingly. 14. Effectivity . This Circular shall take effect immediately. (Sgd.) Patricia A. Sto. Tomas Chairman Attested by: (Sgd.) Elmor D. Juridico" Executive Director All revenue officials and employees are enjoined to give this circular as wide a publicity as possible. (SGD.) JOSE U. ONG Commissioner of Internal Revenue