Administrative Code of 1987

Section 1

There shall be established performance evaluation systems in every department or agency of the national and local governments, including state universities and colleges and government-owned and controlled corporations with original charters.

Section 1

(a) An official or employee shall avoid conflict of interest at all times. (b) Conflict of interest occurs: (1) When the official or employee is: (a) a substantial stockholder; or (b) a member of the Board of Directors; or (c) an officer of the corporation; or (d) an owner or has substantial interest in a business; or (e) a partner in a partnership; and (2) The interest of such corporation or business, or his rights or duties therein, are opposed to or affected by the faithful performance of official duty. (c) A substantial stockholder is any person who owns, directly or indirectly, shares of stock sufficient to elect a director of a corporation. This term shall also apply to the parties to a voting trust. (d) A voting trust means an agreement in writing between one or more stockholders of a stock corporation for the purpose of conferring upon a trustee or trustees the right to vote and other rights pertaining to the shares for certain periods and subject to such other conditions provided for in the Corporation Law.

Section 2

(a) When a conflict of interest arises, the official or employee involved shall resign from his position in any private business enterprise within thirty (30) days from his assumption of office and/or divest himself of his shareholdings or interests within sixty (60) days from such assumption. For those who are already in the service, and conflict of interest arises, the officer or employee must resign from his position in the private business enterprise and/or divest himself of his shareholdings or interests within the periods herein-above provided, reckoned from the date when the conflict of interest had arisen. The same rule shall apply where the public official or employee is a partner in a partnership. (b) If the conditions in Section 1 (b) concur, divestment shall be mandatory for any official or employee even if he has resigned from his position in any private business enterprise. (c) Divestment shall be to a person or persons other than his spouse and relatives within the fourth civil degree of consanguinity or affinity. (d) The requirements for divestment shall not apply to those specifically authorized by law and those who serve the government in an honorary capacity nor to laborers and casual or temporary workers.

Section 2

The Performance Evaluation System or Systems shall be so designed and administered to: (a) Continuously foster improvement of employee performance and efficiency; (b) Enhance organizational effectiveness and productivity; (c) Provide an objective performance rating which shall serve as basis for incentives and rewards, promotion, training and development, personnel actions and administrative sanctions.

Section 3

The following minimum requirements shall be observed in the development of the Performance Evaluation System: (a) It should provide for the identification of the outputs as well as the job-related behaviors of the position/functions and the corresponding performance standards which should be mutually agreed upon between the supervisor and the subordinates. (b) It should provide mechanisms by which an employee shall be currently advised of his progress in accomplishing his assignments. (c) Supervisors should be given opportunity by the System to make comments and recommendations regarding employee's strengths and weaknesses which may be instrumental in furthering his career, or identifying constraints that may impede his development. (d) Performance evaluation shall be done every six months ending on June 30 and December 31 of every year. However, if the organizational needs require a shorter or longer period, the minimum appraisal period shall be at least 90 days or three months. No appraisal period shall be longer than one year. (e) The system shall provide sanctions against raters who use it to give undue advantage or disadvantage to people they rate. (f) The following adjectival ratings shall be adopted: Outstanding — 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 agency concerned. Very Satisfactory — 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 employees with Outstanding and Very Satisfactory performance ratings shall be considered for promotion. Satisfactory — 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 — 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. Poor — 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. g. As much as possible, the Performance Evaluation System shall contain the following parts: 1. Objectives 2. Basic Policies 3. Procedures/Mechanics of the System 4. Mechanics of Rating

Section 4

The highest ranking officer in charge of personnel management shall be responsible for the development and administration of the performance evaluation system. The Personnel Division of the department or agency shall be responsible for the safekeeping of all performance reports and records of its personnel. It shall periodically submit to the Head of Agency the consolidated results of its employee performance evaluation.

Section 5

An employee who expresses dissatisfaction with the rating given him may appeal through the duly established Grievance Procedure of the Department or Agency within fifteen days after receipt of his copy of his performance rating. Failure to file an appeal within the prescribed period shall be deemed a waiver of such right.