Performance Evaluation System

May 6, 1993 REVENUE MEMORANDUM ORDER NO. 35-93 SUBJECT : Performance Evaluation System TO : All Revenue Officials and Employees Pursuant to the provisions of Rule IX of the Omnibus Rules Implementing Book V of Executive Order 292 which took effect on February 14, 1992, the Performance Evaluation System is hereby established. The System shall have the following integral components: I. OBJECTIVES: 1. To serve as reference in performance planning and review; 2. To serve as objective basis for all personnel actions such as promotion, transfer, reassignment, demotion and separation; and 3. To serve as reference in the grant of performance-based salary step increment as provided for CSC-DBM Joint Circular No. 1, s. 1990; and for other incentives and rewards that may be provided under the approved Employee Suggestions and Incentive Awards System of the agency. 4. To improve the performance of employees in their jobs through a continuing appraisal procedure that considers planning for future action and evaluating past employee performance. 5. To develop the opportunity for self-appraisal so that the employee can evaluate his own performance, determine and devise ways to improve his weaknesses and build on his strengths and hereby become a more viable member of the organization. 6. To promote the most effective use of manpower in the organization in order that the employee makes his/her optimum contribution in the delivery of basic services. II. BASIC POLICIES: 1. The Performance Evaluation System shall be made an integral part of the HRD program of this agency. 2. Appraisal shall focus on results/outputs rather than on activities/processes. 3. Employees shall be given appropriate recognition for their performance and contribution to the overall effectiveness and efficiency of the organization. 4. Each supervisor and subordinate shall be informed of his rights and obligations under the Performance Evaluation System and be periodically informed of his progress. 5. Appropriate training opportunities shall be continually provided to facilitate effective implementation of this system. III. SCOPE: The System shall apply to all career employees of the Bureau of Internal Revenue. IV. RATING PERIOD: Performance evaluation shall be done every six (6) months ending on June 30 and December 31 of every year. However, if there is a need for a shorter or longer rating period, the minimum appraisal period shall be at least ninety (90) days or three (3) months while the maximum appraisal period shall not be longer than one (1) year. V. PROCEDURE: The performance evaluation system shall follow the following processes: 1. Discussion of Duties There shall be a planning session at the start of the rating period during which targets or expected outputs shall be set jointly by the supervisor and subordinates. The supervisor and subordinates define the job of each member of the group, agree on the duties and responsibilities attached to a particular job, and establish the standards on which specific work outputs and behaviors shall be measured. 2. Setting Commitments Targets/major duties and responsibilities established during the planning session shall be listed in the Performance Evaluation Report Form under the PLANNED column. Agreements shall be jointly signed by both supervisor and subordinates at the start of the rating period. Copies of the Planned Targets shall be furnished the Chief, Personnel Division within thirty (30) days after signing the agreements. 3. Progress Review: This process involves a discussion between a supervisor and a subordinate using the following steps: 1. Subordinate reviews the progress of all the jobs assigned to him. He shall submit Monthly Accomplishment Report to his supervisor. 2. The supervisor reinforces progress on job goals already accomplished by recognizing employee's efforts and praising him for specific achievements. 3. They both discuss goals and standard not met and identify causes. 4. They identify and agree on appropriate action to overcome causes of difficulties. 5. They re-negotiate goals and standards where necessary. 6. Supervisors shall keep a "Logbook of Critical Incidence" as a tracking device to record the causes of the subordinate's failure in meeting his targets. 4. Discussion of results There should be a highly interactive performance appraisal discussion and feedback mechanism to foster better working relationship between supervisor and subordinate. At the end of the evaluation period, the supervisor and subordinate meet to discuss the results of the employee's efforts to meet the targets previously established. In checking results, the supervisor should do all he can to assist the employee. This assistance may take many forms such as coaching, training, counselling, or reassignments. If the employee still fails to reach his targets after the various means of assistance have been employed, appropriate disciplinary action should be taken against him. On the other hand, the employee who excels in the achievement of his targets should be given recognition. If he cannot be promoted, other forms of rewards should be given. VI. MECHANICS OF RATING: A. Appraisal 1. The employee evaluates his own work performance and behavior using the standards set for specific work outputs and behavioral factors affecting performance. This evaluation shall be based on the information contained in the division logbook, attendance records, accomplishments book and other relevant documents. 2. The supervisor and subordinate meet to discuss and agree on the rating and develop plans for work improvement. 3. The supervisor and subordinate complete the Performance Evaluation Report Form. 4. The duly accomplished forms are submitted to the authorized official for review. If the authorized official agree with the employee's rating, he signs the report form. If not, he should notify the employee and rater and discuss the change in the rating with them. The revised rating shall be initialed by the employee, rater and reviewer. 5. The original copy of the final rating shall be sent to the Personnel Division, copy furnished the employee and the rater. If the employee disagree with the final rating, he shall also sign the report and/or initial the changes. He may then appeal his rating in accordance with the rules and procedures for the purpose. B. Rating for Job Accomplishments The performance Evaluation Report Form shall reflect the results of the appraisal of the performance of an individual employee. Only one (1) form is adopted for rating both supervisory and non-supervisory personnel. 1. To get the Average Point Score, add all the scores assigned under Quantity, Quality and Time by the total number of entries. 2. Multiply the Average Point Score by .7 (70%) to get the Equivalent Point Score. C. Rating Employee's Behavior 1. The graphic scale presents four (4) behavioral factors for non-supervisors and five (5) for supervisors, affecting the performance of every employee. 2. For each factor there are five (5) levels of performance or anchors which range from Outstanding (10) to Poor (2).Choose the level of performance that gives the most accurate description of the employee's behavior. 3. Add all the corresponding scores and divide the sum by the total number of behavioral factors to get the Average Point Score. 4. Multiply the Average Point Score by .3 (30%) to get the Equivalent Point Score. D. Overall Rating The overall rating is computed by adding the Equivalent Point Scores for both Job Accomplishment and Behavior. The sum is the overall rating. Use the indicated rating scale to find the Equivalent Adjectival Rating of the obtained overall rating. OVERALL RATING ADJECTIVAL RATING 9.6 - 10.00 Outstanding 8.0 - 9.5 Very Satisfactory 4.6 - 7.9 Satisfactory 2.8 - 4.5 Unsatisfactory 2.0 - 2.7 Poor The adjectival ratings are defined as follows: OUTSTANDING - An employee shall be given this rating when he exceeds his performance targets by 50% and he possesses the personal qualities relevant to the accomplishment of the targets. Employees at this performance level should have demonstrated exceptional job mastery in all major areas of responsibility. His achievement and contributions to the Bureau are of marked excellence which even his peers recognize through a forced comparison. VERY SATISFACTORY - An employee shall be given this rating when he exceeds the expected performance by 25%.Only employees with Outstanding and Very Satisfactory performance rating shall be considered for promotion. SATISFACTORY - An employee shall be given this rating when he meets his performance targets, together with the personal qualities relevant to the accomplishment of the targets. UNSATISFACTORY - An employee shall be given this rating when his performance falls short of the minimum requirements but could stand improvement. Since in giving this rating, the supervisor has considered the employee's potential for improvement in his performance, it is expected that in the next performance appraisal period, the employee under close supervision, will either improve his performance for which he shall be given at least a satisfactory rating, or if not, he shall get another Unsatisfactory rating. If on the next rating period, the employee has not improve his performance, he should be given training on the particular job he is assigned to or provided with other forms of assistance. However, such employee with Unsatisfactory rating shall not be entitled to promotion or merit increase in pay until he gets a Satisfactory rating. Two (2) successive Unsatisfactory ratings shall be ground for separation from the service. POOR - An employee shall be given this rating when he fails to meet performance requirements and there is no evidence to show that he can improve his performance. A rating of Poor shall be a ground for separation from the service. VII. MECHANISM OF APPEAL: An employee who expresses dissatisfaction with the rating given him may appeal to the Grievance Committee established under CSC MC No. 45, s. 1989 within fifteen (15) days after receipt of his copy of the Performance Evaluation Report Form .The appeal should specify what his performance rating should be and supporting documents to support his appeal. VIII. SANCTIONS: Sanctions against rater who use PES to give undue advantage or disadvantage to people they rate. IX. EFFECTIVITY: This Performance Evaluation System will be made effective upon the approval of the Civil Service Commission. VICTOR A. DEOFERIO, JR. Deputy Commissioner Officer-in-Charge ATTACHMENT Performance Evaluation Report Form PART II BEHAVIORAL DIMENSIONS (30%) POINT SCORE A. Human Relations _______ B. Dependability _______ C. Work Attitude _______ D. Street Tolerance _______ E. Punctuality and Attendance _______ F. Leadership (for supervisors only) _______ Total _______ Average Point Score _______ Equivalent Point Score _______ OVERALL POINT SCORE (Part I & Part II) _______ EQUIVALENT ADJECTIVAL RATING _______ Employee's Comments/Remarks: DISCUSSED RATING WITH ________________________________ ________________________________ ________________________________ ____________ _________ Signature of Date Ratee Rater's Comments/Remarks: ________________________________ ________________________________ ________________________________ ____________ _________ Signature of Date Rater over Printed Name ____________ _________ Signature of Date Rater's Supervisor over Printed Name HOW TO COMPUTE THE RATING PART I PERFORMANCE (70%) 1. Add all the total ratings obtained under Quantity, Quality and Timeliness. 2. Divide the sum by the number of ratings to get the Average Point Score. 3. Multiply the Average Point Score by .7 to get the Equivalent Point Score. PART II BEHAVIORAL DIMENSIONS (30%) 1. Add all the total ratings obtained for each behavioral factor. 2. Divide the sum by the number of behavioral factors to get the Average Point Score. 3. Multiply the Average Point Score by .3 to get the Equivalent Point Score. To get the Overall Point Score, add the Equivalent Point Scores of Part I and Part II. Convert the Overall Point Score into its Equivalent Adjectival Rating by referring to the table below: OVERALL POINT EQUIVALENT ADJECTIVAL SCORE RATING 9.6 - 10.00 Outstanding 8.00 - 9.5 Very Satisfactory 4.6 - 7.9 Satisfactory 2.8 - 4.5 Unsatisfactory 2.0 - 2.7 Poor GENERAL STANDARDS A. Quantity/Volume of work 10 - Target or quota exceeded by 50% or more 8 - Target or quota exceeded by 10%-45% 6 - Target or quota accomplished as planned 4 - Only 60%-95% of target or quota accomplished 2 - Less than 60% of target or quota accomplished B. Quality of written work 10 - No error. Clearly presented and well organized. Every aspect of assignment well covered. 8 - 1 - 3 errors. Clearly presented and well organized. 6 - 4 - 7 errors. Report in accordance with instructions. Minor revision needed. 4 - 8 - 10 errors. Major revision needed. 2 - Work not acceptable. Needs total revision. C. Quality of non-written work 10 - Excellent results. All aspects of work assignment thoroughly covered. 8 - One or two minor errors in the execution of work assignment. Results still very good. 6 - More than two minor errors or deficiencies in the execution of work assignment. Results are acceptable. 4 - More than two major errors or deficiency that can be overcome with help/assistance from supervisor. 2 - Haphazard or careless execution of work assignment. Unacceptable results. D. Timeliness 10 - Task completed within 1/2 of the time required to finish it. 8 - Task completed within 2/3 of the time required to finish it. 6 - Task completed just before or on the deadline. 4 - Task partially completed at the deadline. 2 - Task not yet begun at expected date of completion. GUIDELINES ON RATING BEHAVIORAL DIMENSIONS In rating behavioral factors affecting job performance, the following should be considered: A. HUMAN RELATIONS - Integrates concern 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. Cooperative with peers and respectful of leaders. 6 - Has the ability to deal with the public and peers, although needs some advice at times. 4 - Has considerable difficulty in dealing with the public; occasionally discourteous except when attending to important or influential persons. 2 - Has apparent difficulty in dealing with the public. Draws negative reactions. Often discourteous and irritable. B. DEPENDABILITY - The ability to be relied upon in the accomplishment of tasks with less supervision. 10 - Highly reliable. Introduces ideas and projects with originality without supervision. Always available on the job when needed. 8 - Starts action and undertakes projects under minimal supervision. 6 - Starts action to meet goals with regular supervision and support. Available on the job when needed. 4 - Lacks personal drive to start a project or complete assigned tasks. 2 - Refuses to perform assigned tasks despite assistance and very close supervision. Always absent or tardy. C. WORK ATTITUDE - Refers to the willingness to accept responsibilities and adherence to office rules and regulations. 10 - Shows willingness to accept additional responsibilities. Shows highest degree of compliance to office rules and regulations. 8 - Cooperation, respect, concern for others and adherence to office rules are demonstrated most of the time. Always shows willingness to accomplish assigned tasks immediately. 6 - Employee has the ability to cooperate with others. Accepts additional assignments but does not show initiative and resourcefulness to work with others. Compliance with office rules and regulations. 4 - Show difficulty in compliance with office rules and regulations. Does not show willingness to accomplish assigned tasks. cdt 2 - Irritable and discourteous in all aspects. Resorts to absenteeism when given assignments. Total disregard to office rules and regulations. D. STRESS TOLERANCE - Stability of performance under pressure or opposition. 10 - Always calm and shows pleasant disposition at all time. Consistently confident and positive even during stressful conditions at work. Never loses patience and never allows other's tension and anxiety affect workloads. 8 - Most of the time calm, confident and positive. Positive effect on the group is noticeable. 6 - Normally calm, confident and positive. Occasionally loses emotional control under pressure. 4 - Often loses emotional control in dealing with stressful work situations. Often complains about people, personal difficulties and situations at work. 2 - Cannot handle pressures and stress. Highly emotional and into violent arguments with others. E. PUNCTUALITY AND ATTENDANCE - In accordance with CSC Memorandum Circular No. 4, s. 1991, punctuality and attendance shall be rated as follows: No. of times Tardy/ Rating No. of Absences Undertime/Half-Day (for 6 months) (for 6 months) 0 10 (0) 0 1 - 30 8 (VS) 1 - 15 31 - 54 6 (S) 16 - 30 55 - 59 4 (US) 31 - 45 60 - More 2 (P) 46 - More The following cases should be excluded in the determination of the rating for attendance: 1. Forced Leave 2. Maternity Leave 3. Prolonged sick leave duly certified by the office physician. Physical presence in the work place shall also be considered. In rating attendance. The average score is arrived at by dividing the rating for absences and undertimes by 2. F. LEADERSHIP (For Supervisors Only) - The manner of guiding, influencing, motivating and developing confidence of subordinates to work as a team and accomplish assigned tasks, 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 concerned. 8 - Leads staff effectively. Often gets job done through teamwork. Staff are productive. 6 - Leads staff adequately. Normally gets job done. 4 - Seldom exercises leadership over staff. Seldom gets job done on time. 2 - Cannot lead staff. No teamwork. Productivity is low. No balance of task and people concern. Factors A to E shall apply to non-supervisory positions. Factors A to F shall apply to all supervisory positions. cdtai May 19, 1993 MR. VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer -in-Charge) Bureau of Internal Revenue BIR Road, Quezon City Dear Deputy Commissioner D eoferio : We are returning to you the Employee Suggestions and Incentive Awards (ESIAS) and Performance Evaluation System (PES) of that Bureau, duly approved. As regards the PES, it is necessary that the following requirements be met before the System is fully implemented: 1. The system shall be pilot-tested for at least one (1) rating period and the Commission shall be informed of the pilot-testing results when completed; and 2. If improvements are to be made after the pilot-testing and prior to actual implementation, the Commission shall be furnished the revised copy of the System. We hope for the effective implementation of the said System. Very truly yours, PATRICIA A. STO. TOMAS Chairman