Implementing the Performance Evaluation System of the Office of the President (Proper)
Memorandum Order No. 118-E

June 1, 1993



Pursuant to the provision of Sections 33, Chapter 5, Personnel Policies and Standards, Book V of ESDcIA

I. Objectives

The herein Performance Evaluation System is intended to foster continuing improvement in personnel performance and efficiency, and enhance organizational effectiveness and productivity in this Office. Specifically, the System aims:

a. To evaluate periodically the performance, including the input/critical factors affecting job behavior of each employee in the organization.

b. To provide an objective basis for training and development, promotions and salary adjustments, incentives and rewards, and other related personnel movements including administrative sanctions for employees who may fail to achieve reasonable accomplishments, despite their supervisors' assistance and counselling.

II. Basic Policies and Guidelines

1. This system shall be made an integral part of the personnel management and development program of the Office of the President (Proper).

2. Performance of an employee shall be identified, measured and developed against set targets and pre-determined job-related standards, which are mutually agreed upon by the rater and the ratee, consistent with the organizational goals and objectives.

3. This system shall include the rater's comments on the ratee's strengths and potential or his needs for training and development. As may be necessary, appropriate training opportunities shall be provided to make the implementation of this system more effective.

4. Employees shall be properly informed of their rights and obligations under the System, including the right to appeal the rating on which they disagree.

5. Employees shall be given appropriate rewards in recognition of exemplary and meritorious performance defined in the Employee Suggestions and Incentive Awards System (ESIAS) which contributes to the productivity and efficiency of the office. Also, to qualify for promotion, salary increase or scholarships, an employee shall have at least a rating of "Very Satisfactory" (VS).

6. Refusal or failure to assume responsibilities attached to the position or accept reasonable work assignment shall be a ground for disciplinary action. Unsatisfactory rating under this system shall be a basis for dismissal.

7. This System shall also provide for sanctions against raters who may use the performance appraisal to give undue advantage or unreasonable disadvantage to the employees they rate. ICHDca

III. Scope

The Performance Evaluation System shall apply to all employees of this Office belonging to the First and Second Levels.

The Rating Form for Supervisors shall be accomplished by officials occupying positions of PSO VI or other employees occupying positions of equivalent in the Second Level, provided they perform supervisory functions; while the Rating Form for Non-Supervisors shall be accomplished by employees performing non-supervisory functions down to the lowest position in the First Level.

IV. Rating Period

Evaluation shall be done twice a year, from January to June and from July to December, except in the case of employees under probationary status who shall be rated from their first day of service up to the end of their probationary period.

V. Definition of Terms

1. Performance Evaluation System a system of identifying major and minor responsibilities of a position consistent with the organizational goals and objectives, evaluating objectively the performance against established standards, and using the results thereof in making personnel decisions/sanctions.

2. Performance is the employee's total accomplishment or actual output generally measured in terms of quality, quantity and time.

3. Behavioral Factors abilities and specific job behavior that affect or influence actual work output.

4. Key Results Area (KRA) is the main function of the office/division on the basis of which programs and activities are designed.

5. Performance Targets refer to projected measurable results desired to be achieved in the performance of an activity within a definite period of time. aDHScI

6. Performance Standards yardsticks or definite patterns to gauge the extent the target or commitment has been achieved.

VI. Procedures

A. Performance Targets/Standards Setting

This phase includes determining the Key Results Area and setting the Performance Targets resulting therefrom (Performance Commitment) towards achieving organizational mission, goals and objectives.

1. At the beginning of the rating period, the ratee shall prepare his Performance Commitment/Target (HRMO-PER-01) based on given work assignments which shall be discussed and reviewed by his immediate supervisor/rater and finally approved by the Head of Office. Said target should be specified, measurable and attainable.

2. The Performance standards in terms of Quantity, Quality and Time measures, generally acceptable for each task, shall be set by the ratee and the rater with the approval of the Head of the Office, preferably, in coordination with the Human Resource Management Office or Personnel Office.

B. Progress Monitoring

Checkpoints at which progress can be evaluated shall be determined by the rater and the ratee.

1. The ratee shall fill up an Actual Monthly Accomplishment Report Form (HRMO-PER-02) on daily basis and submit to his supervisor/rater weekly/monthly basis for notation/remarks.

2. Rater shall discuss the progress of the ratee and shall assist him in terms of training, counselling, coaching, etc.

6. Possible modification/revisions of targets may be done as necessary, subject to approval of the rater and head of office.

C. Performance Evaluation

The Performance Evaluation Report Form (HRMO-PER-03) for Supervisors or 03A for Non-Supervisors shall be accomplished within two weeks at the end of the rating period. ASTDCH

1. During the rating period, necessary and important changes in the assignment of the ratee shall be reflected in the Performance Commitment/Target Form. Intervening assignments, in addition to regular duties, given for any given period shall also be duly noted.

2. The Actual Monthly Accomplishment Report shall be compared/evaluated with the Performance Commitment/Targets.

3. The ratee shall be allowed to rate himself and enter his temporary rating in the Performance Evaluation Report Form which shall be discussed and reviewed by his immediate supervisor/rater. The Head of Office shall enter the final approval.

4. In the event of disagreement on the ratings, the ratee and the rater shall sit down for consultation to settle points of disagreement. If necessary, the Head of Office shall be consulted for his final decision.

D. Performance Rating Factors

The Performance Rating Factors and corresponding points for each are as follows:

D.1. For Supervisors

A. Performance
Output (Quantity, Quality, Time) 45%
Supervisory Skills 30%
Planning & Controlling 5%
Leadership 5%
Decision-Making 5%
Maintaining Discipline 5%
Communication Skills 5%
Creativity 5%
B. Behavioral Factors 25%
Attendance 5%
Punctuality 5%
Human Relations 5%
Integrity 5%
Reliability 5%

D.2. For Non-Supervisors

A. Performance
Output (Quantity, Quality, Time) 65%
B. Behavioral Factors 35%
Attendance 5%
Punctuality 5%
Human Relations 5%
Work Attitude 5%
Resourcefulness 5%
Reliability 5%
Integrity 5%

E. Mechanics of Rating

1. The employee's Performance/Output shall be evaluated and rated using a scale of five (5) in descending order with values as follows:

OUTSTANDING 5 value-point

An employee shall be given this rating when he exceeds his target by at least 50%. It represents an extraordinary level of achievement and commitment in terms of quality and time, technical skill and knowledge, ingenuity, creativity and initiative. Employees at this performance level should have demonstrated exceptional job mastery in all major areas of responsibility. His achievement and contributions to the organization are of marked excellence which even his peers recognize through a forced comparison/distribution method established by the Office of the President. ESTCDA


An employee shall be given this rating when he exceeds the expected output/performance by at least 25% but falls short of what is considered an outstanding performance. In addition, his competence and contributions shall be recognized by his peers also through a forced comparison/distribution method based on the criteria established by the agency concerned. Those screened out in the forced comparison/distribution for outstanding performers shall be included in this category.

Only an employee with outstanding and very satisfactory performance shall be considered for promotion.

SATISFACTORY 3 value-point

An employee shall be given this rating when he meets 100% of the standards or ordinary requirements of the duties of the position. Those screened out in the forced comparison/distribution method for Very Satisfactory performers shall be included in this category.

UNSATISFACTORY 2 value-point

An employee shall be given this rating when his performance is 51% to 99% of the minimum requirements but could stand improvement. It is expected that in the next rating 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. Two (2) successive Unsatisfactory ratings shall be a ground for separation from the service. HIDCTA

POOR 1 value-point

An employee shall be given this rating when he fails to meet performance requirements or meets 50% or below of the minimum 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.

The number representing the adjective rating which most closely describes the accomplishment of the ratee shall be pick out, after considering any or all of the factors, namely Quantity, Quality and Time as may be applicable.

2. The resulting Average Value shall be added to get the Total Average Value. This shall be divided by the number of outputs to get the Weighted Average (WA). Said WA shall then be multiplied by 45% and 65% for Supervisors and Non-Supervisors, respectively, to obtain the Equivalent Rating on page one of PER 03 or 03A accordingly.

3. Supervisory skills and behavioral factors for Supervisor and behavioral factors for Non-Supervisor shall be rated based on the most appropriate characteristics described in the PER 03 and 03A, respectively. The selected characteristics in terms of number values shall be added and the sum divided by the total number of factors. The quotient shall then be multiplied by 30% and 25% for supervisory skills and behavioral factors, respectively for Supervisor by 35% for behavioral factors for Non-Supervisor to get the equivalent ratings. All Equivalent Ratings shall then be added to the Overall Numerical Ratings.

4. Intervening assignments shall be credited a bonus score ranging from .25, .5, .75 and 1.00 point maximum which shall be added to the Overall Numerical Rating. DcSEHT

.25 significant official intervening job assignment for a duration of less than a week;

.50 significant official intervening job assignment for a duration of 1-2 week/s;

.75 two or more very significant official intervening job assignment for a duration of 2-3 weeks;

1.00 two or more very significant official intervening job assignments for a duration of not less than 3 weeks.

5. Refer to instructions on the detailed mechanics of rating.

6. The adjectival rating shall be reflected in PER 03 and 03A based on the following:

Poor (P)
Unsatisfactory (UN)
Satisfactory (S)
Very Satisfactory (VS)
Outstanding (O)

VII. Appeals

All appeals on the PER shall be addressed to the Grievance Committee of OP within 15 calendar days after a ratee receives his copy of the PER.

VIII. Sanctions for Rater's Partiality

An official or employee shall be charged administratively if found guilty of using the performance rating to give undue advantage or disadvantage to either rater or ratee in accordance with CSC CM Nos. 30 and 32, s. 1989.

IX. Responsibilities

The heads of offices shall have the responsibility for the implementation of the revised Performance Evaluation System. AHDaET

The Human Resource Management Office (HRMO) or Personnel Office shall be responsible for the administration of the System including monitoring of compliance and keeping records of reports.

Orientation of raters and ratees to ensure effective implementation of the System shall be conducted by the HRMO (Personnel Office).

X. Effectivity

The PES shall take effect January, 1994.

Manila, June 1, 1993.