DBPLC GUIDELINES ON THE GRANT OF PERFORMANCE- BASED BONUS

                       

OFFICE ORDER NO. 24-17[1]

DBPLC GUIDELINES ON THE GRANT OF PERFORMANCE- BASED BONUS

1. I.BACKGROUND AND PURPOSE

These guidelines have been issued pursuant to the Governance Commission for GOCCs (GCG) Memorandum Circular No. 2017-01 dated 09 June 2017, providing the Interim Performance-Based Bonus (PBB), as amended by GCG Memorandum Circular No. 2018-01 dated January 31, 2018 and pursuant to Executive Order No. 36, s. 2017 (E.O. N. 36), as implemented by GCG Memorandum Circular No. 2017-3.

1. II.ELIGIBILITY FOR THE GRANT OF PBB

The grant of PBB shall be based on the overall company performance, and then distributed to individual Officers and Employees based on their performance ranking. Pursuant to the "Performance Evaluation System for the GOCC Sector" (GCG 3 MC No. 2013-02 (Re-issued), or any revised version thereof, a GOCC, in order to be eligible to grant PBB to its qualified Officers and Employees, must:

1. Achieve a weighted-average score of at least 90 in its Performance Scorecard; and
2. Submit a Quality Management System (QMS) for at least one core process certified by any international certifying body approved by the IATF or submit an Operations Manual covering selected core processes or areas of operation;
3. Comply with the Good Governance Conditions provided in GCG MC No. 2013-02 and 2014-02, to wit:

Conditions Common to NGAs and GOCCs:

1. Transparency Seal;
2. PhilGEPS Posting;
3. Cash Advance Liquidation
4. Citizen's Charter or its equivalent;
5. Government Quality Management System Standards (GQMSS) pursuant
   to EO No. 605, s. 2007; and
6. Compliance with the submission and review SALN (SALN).

Conditions Specific to GOCCs Covered by R.A. No. 10149:

1. The GOCC has satisfied all statutory liabilities, including the payment of all taxes due to the government as certified by the BIR, and declaration and payment of all dividends to the State as of the end of the applicable calendar year, whenever applicable, and NG Advances as certified by the Department of Finance (DOF).Liabilities that are still under dispute and there has been no final and executory judgment/decision as of the date of the release of the PBB by the GOCC shall be excluded for the purpose of this provision;

1. Submission and execution of concrete and time bound action plans for addressing Notices of Disallowances and Audit Observation Memoranda from the Commission on Audit (COA), if any;
   1. Maintain/update and implement the GOCC's "Manual of Corporate Governance" and "No Gift Policy" approved by the GCG and uploaded on the GOCC's website pursuant to the "Code of Corporate Governance for GOCCs" (GCG MC NO. 2012-07); and Compliance with posting on the GOCCs website the information enumerated under Section 43 of GCG MC No. 2012-07;

1. Compliance with posting on the GOCCs website the information enumerated under Section 43 of GCG MC No. 2012-07;

1. Comply with all Good Governance conditions and other reportorial requirements
   as validated directly by the appropriate and designated oversight/validating agencies. For DBPLC, only the following requirements are applicable:[2]

PBB REQUIREMENT	VALIDATING AGENCY
Transparency Seal	DBM-OCIO
PhilGEPS Posting	PhilGEPS
Citizen's Charter	Anti-Red Tape Authority
Submission of SALN of employees	Office of the President, Office of the Ombudsman and CSC Note: The SALN validating agencies shall provide the list of SALN non-fillers
Report on Ageing of Cash Advances	COA
PES Accomplishments	GCG
STO-accomplishments QMS Certification/Operations Manual	GQMC
Sustained Compliance with Audit Findings Submission of Financial Statements, Ageing of Cash Advances Report BFARs APCPI Submission of APP	COA COA COA GPPB-TSO GPPB-TSO
Agency Rating and Ranking Report	GCG
FOI Compliance Freedom of Information Manual Agency Information Inventory 2019 FOI Registry and 2019 FOI Summary Report Screenshot of Agency’s Home Page	PCOO

• All submissions shall be made directly with the abovementioned oversight/validating agencies.

1. III.COVERAGE

DBPLC officers and employees who occupy regular, co-terminous and casual positions shall be entitled to the full grant of the PBB from their employer at the time of the payout of the PBB; Provided they have rendered an aggregate of at least nine (9) months of service in the public sector for the year ending 31 December 2017. Officers and Employees who do not meet the 9-month service requirement but have served at least 3 months of service shall be entitled to PBB on a pro-rata basis as provided below.

Eligibility of Individual Officers and Employees of GOCCs:

1. Employees belonging to the First and Second Levels should receive a rating of at least "Satisfactory" based on the agency's CSC-approved Strategic Performance Management System (SPMS);

1. Other officials performing managerial and executive functions who are presidential appointees are covered by the agency's CSC-approved SPMS should receive a rating of at least “Satisfactory."

1. Personnel on detail to another government agency for six (6) months or more shall be included in the ranking of employees in the recipient agency that rate his/her performance. Payment of the PBS shall come from the mother agency;

1. Personnel who transferred from one government agency to another agency shalI be rated and ranked by the agency where he/she served the longest. If equal months were served for each agency, he/she will be included in the recipient agency;

1. An employee who has rendered a minimum of nine (9) months of service the fiscal year and with at least "Satisfactory”, rating may be eligible to the full grant of the PBB.

1. An employee who rendered a minimum of three (3) months but less than nine (9) months of service and with at least "Satisfactory" rating shall be eligible for the grant of PBB on a pro-rata basis. The PBB of employees shall be pro-rated corresponding to the actual length of service rendered, as follows:

The following are the valid reasons for an employee who may not meet the nine-month actual service requirement to be considered for PBB on a pro-rata basis.

1. Being a newly hired employee;
2. Retirement;
3. Resignation;
4. Rehabilitation Leave;
5. Maternity Leave and/or Paternity Leave;
6. Vacation or Sick Leave with or without pay;
7. Scholarship / Study Leave; and
8. Sabbatical Leave

1. An employee, who is on vacation or sick leave, with or without pay, for the entire year, is not eligible to the grant of the PBB;

1. Personnel found guilty of administrative and/or criminal cases filed against them and meted penalty in FY 2017 shall not be entitled to the PBB. If the penalty meted out is only a reprimand, such penalty shall not cause the disqualification to the PBB;

1. Officials and employees who failed to submit the 2014 SALN as prescribe rules provided under CSC Memorandum Circular No. 3 (S. 2016), shall entitled to the FY 2017 PBB;

1. Officials and employees who failed to liquidate Cash Advances received in 2017, within the reglementary period as stated in the prevailing COA Circular, shall entitled to the FY2017 PBB;

1. Agency heads should ensure that officials and employees covered by RA 6713 submitted their 2014 SALN to the respective SALN repository agencies as prescribed in the rules provided under CSC Memorandum Circular NO. 3 (s.2017) and also liquidated 2017 Cash Advances, as this will be a basis for the release of FY2017 PBB to individuals;

1. IV.EXCLUSIONS

The following are excluded from the grant of the PBB:

1. Those hired without employer-employee relationships with DBPLC and paid from non-Personal Services appropriations/budgets as follows:
   1. Consultants and experts hired to perform specific activities or services with expected outputs;
   2. Laborers hired through job contracts (pakyaw) and those paid on piece-work basis;
   3. Student laborers and apprentices;
   4. Individuals and groups of people whose services are engaged through job
      orders, contracts of service, or others similarly situated; and,

1. DISTRIBUTION SYSTEM.

Distribution of PBB among qualified officers and employees of the DBPLC shall be in accordance with the following procedure:

1. Grouping of Personnel - In determining the distribution of the PBB among qualified GOCC Officers and Employees, all personnel shall be ranked on a percentile basis within their respective levels as determined by the GOCC Governing Board through Management in accordance with the following guidelines:

1. Senior Management (JG 15-17): Refers to the Executive Officers of DBPLC including all heads of functional units, which are primarily involved in the development, evolution, and approval of long-term vision across a function or area of specialization. It includes those who lead the development of function strategy, implement and maintain policies of the organization for area of responsibility.

The President/CEO, or whoever is the highest ranking executive officer, has the prerogative to avail of either the Performance-Based Incentive (PBI) under GCG MC No. 2015-05, or the PBB, but not both. In the event the CEO is included in the PBB application, he/she must meet the eligibility requirements for the PBI and shall be ranked separately on his/her own and shall not be included in the forced ranking of Officers and Employees.

1. Middle Management (JG 13-14): Covers those whose work is primarily achieved through others, with direct accountability for setting direction and deploying resources. Responsible for people management, including performance evaluation and pay reviews and typically hire/fire decisions. Includes individual contributors who are recognized as subject matter experts with in-depth technical knowledge, project management and significant influence skills in area of expertise.

1. Professional and Supervisory (JG 10-12): This level comprises the personnel whose work is primarily achieved by an individual or through project teams. Requires the application of expertise in professional or technical area(s) to achieve results. Typically has a university degree or equivalent work experience that provides knowledge and exposure to fundamental theories, principles and concepts. Includes supervisors and junior management that may not have full' management authority.

1. Clerical/General Staff (JG 4-9): This includes all clerical administrative and secretarial staff with little or no supervisory responsibility but who contribute independently to the organization. It also covers basic computing/data processing staff such as operators, customer service assistants and skilled craftsmen/technicians.

The detailed inventory and listing of manpower for 2016 is hereby attached, marked, integrated and incorporated as Annex “A.”

1. 2.Distribution for Qualified Officers and Employees

The grant of the PBS shall be based on the performance of the individual Officers and Employees with the rate of incentive as a multiple of the individual's monthly basic salary as of 31 December of the applicable year based on the table below:

Percentile	Multiple
Top: Maximum (10%)	65.00%
Next: Maximum (25%)	57.50%
Remaining: Minimum (65%)	50.00%

"The percentile of the "Top" and "Next" levels are maximum figures with the discretion on the part of the Governing Board Management to decrease the figures and distribute them to the Remaining" level.

Provided that the total cost of the PBB shall not result in a net loss for CY 2016 computed before subsidy and unrealized gains/losses, and after taxes.

The Division Chiefs' rating for their respective staff shall be subject to the validation of the PVT. Any complaints pertaining to ratings whether of the concerned employee or other divisions/employees shall be coursed through to the SPMS Grievance Committee;

1. VI.ELIGIBILITY CRITERIA FOR THE PBB AND RANKING OF INDIVIDUAL PERFORMANCE

The rating of the employee will be based on the total rating of the Part 1 and Part 2 of the Accomplished Performance Appraisal.

PART 1: KEY RESULTS AREA (KRA) KEY PERFORMANCE INDICATORS (KPI)

PART 2: COMPETENCY REQUIREMENTS

The Immediate Superior will rate the Manager/Supervisor based on the following rating scale:

5 = Outstanding

4 = Exceeds Expectations

3 = Meets Expectations

2 = Needs Improvement

1 = Below Expectations

Part 2 will cover the 40% the total Performance Rating

PART II. PERFORMANCE COMPETENCIES for Managers/Supervisors (Score/135 x 40%) for Assistant Vice Presidents & above (Score/160 x 40%)

 

COMPETENCIES	RATING
WORK
1. Work Knowledge-considers the knowledge of the job and the possession of skills needed in carrying out the job.
2. Quality of Work – considers accuracy, thoroughness and effectiveness
3. Productivity – considers the work output in any given task
4. Results focus & Initiative – considers the extent to which the employee sets own constructive work practice and does tasks even without follow-up.
COGNITION
5. Analysis and Reasoning- considers examining data to grasp issues, draw conclusions, and solve problems.
6. Creative and Innovative Thinking- considers developing fresh ideas that provide solutions to all types of workplace challenges.
7. Problem Solving - considers analyzing difficult and complicated work challenges, resolves and/or recommends possible solutions
8. Researching Information – considers identifying, collecting and organizing data for analysis and decision-making.
COMMUNICATION
9. Comprehension – considers grasping the meaning of verbal and written information/instructions and applies it to work situations.
10. Speaking – considers conveying ideas and facts orally using language the audience will best understand
11. Writing – considers ideas and facts in writing using language the reader will best understand.
PERSONAL EFFECTIVENESS
12. Accountability & Dependability – considers taking responsibility in completing the assignments or tasks ensuring quality and timeliness of work, and achieves results with little oversight.
13. Adaptability & Flexibility – considers adapting to changing business needs, conditions, and work responsibilities.
14. Development and Continual Learning – considers displaying an ongoing commitment to learning and self-improvement
15. Self Management – considers managing own time, priorities, and resources to achieve goals
16. Ethics & Integrity – considers earning others’ trust and respect through consistent honesty and professionalism in all interactions.
17. Attention to Detail – considers diligently attending to details and pursues quality in accomplishing tasks.
INTERACTION WITH OTHERS
18. Relationship Building – considers building constructive working relationships characterized by high level of acceptance, cooperation and mutual respect
19. Teamwork – considers the promotion of cooperation and commitment within team to achieve goals and deliverables.
MANAGEMENT QUALITIES
20. Staff Management, Coaching and Mentoring – considers managing staff in ways that improve their abilities to succeed on the job. Enables co-workers to grow and succeed through feedback, instruction and encouragement
21. Decision Making and Judgment – considers timely, informed decisions that take into account the facts, goals, constraints and risks.
22. External Liaisons/ Networking & Public Image – considers maintaining positive professional reputation and cultivates effective relationships with private and public sectors in relation to business operations.

PART II. PERFORMANCE COMPETENCIES (Score/100 x 40%)

COMPETENCIES	RATING
WORK
1. Work Knowledge-considers the knowledge of the job and the possession of skills needed in carrying out the job.
2. Quality of Work – considers accuracy, thoroughness and effectiveness
3. Productivity – considers the work output in any given task
4. Results focus & Initiative – considers the extent to which the employee sets own constructive work practice and does tasks even without follow-up.
COGNITION
4. Analysis and Reasoning- considers examining data to grasp issues, draw conclusions, and solve problems.
5. Creative and Innovative Thinking- considers developing fresh ideas that provide solutions to all types of workplace challenges.
6. Problem Solving - considers analyzing difficult and complicated work challenges, resolves and/or recommends possible solutions
COMMUNICATION
7. Comprehension – considers grasping the meaning of verbal and written information/instructions and applies it to work situations.
8. Speaking – considers conveying ideas and facts orally using language the audience will best understand
9. Writing – considers ideas and facts in writing using language the reader will best understand.
PERSONAL EFFECTIVENESS
10. Accountability & Dependability – considers taking responsibility in completing the assignments or tasks ensuring quality and timeliness of work, and achieves results with little oversight.
12. Adaptability & Flexibility – considers adapting to changing business needs, conditions, and work responsibilities.
13. Development and Continual Learning – considers displaying an ongoing commitment to learning and self-improvement
14. Attitude – considers a display of positive attitude and shows concern for the organization.
15. Time and Resources Management – considers in managing own time, priorities and resources to achieve goals
16. Ethics & Integrity – considers earning others’ trust and respect through consistent honesty and professionalism in all interactions.
17. Attention to Detail – considers diligently attending to details and pursues quality in accomplishing tasks.
18. Support of Management Policies– considers that the employee understands, supports, promotes and upholds the policies of the Company.
INTERACTION WITH OTHERS
19. Relationship Building – considers building constructive working relationships characterized by high level of acceptance, cooperation and mutual respect
20. Teamwork – considers the promotion of cooperation and commitment within team to achieve goals and deliverables.

1. Scores in Part 1 and Part 2 of the Performance Evaluation shall be added and the sum of which shall be rated based on the Over-all Adjusted Equivalent Scale to determine whether based on the assessment on the individual performances of the employees would entitle them for PBB.

Over-All Adjusted Equivalent Scale
95% to 100%	-	Outstanding (O)
86% to 94%	-	Very Satisfactory
71% to 85%	-	Satisfactory
62% to 70%	-	Unsatisfactory (US) – not entitled to PBB

1. The IPCR rating of the employees shall also include intervening tasks with proof of actual performance and pioneering initiatives if there are any.

1. Payment of PBB to the Third Level officials shall be contingent on the results of the OPCR

1. Officials and employees who do not submit their IPCR or before the set deadline shall not be entitled to the PBB or to any other performance-based incentives.

1. The contractual and casual personnel who shall be entitled to the PBB shall be those whose compensation are charged to the lump sum appropriation under Personnel Services; or those occupying positions in the GCG-approved Contractual staffing pattern of agencies/offices concerned. They shall be included in the ranking along with the regular personnel;

1. Personnel who were assigned in more than one (1) division within the year shaII be based on the average IPCR rating of his/her individual commitments in each office.

1. VII.PERFORMANCE VALIDATION TEAM (PVT):

The ManCom shall be constituted to become the Performance Validation Team (PVT) which shall be created under this Office Order, which shall perform its functions as indicated in the Order.

1. VIII.GRIEVANCE MECHANISM:

The DBPLC Grievance Committee shall be created under this Office Order which shall respond to the PBB-related issues and complaints raised by officers and employees.

1. IX.EFFECTIVITY AND IMPLEMENTATION:

This Office Order shall take effect immediately.

For information and strict implementation.

 

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[1] DBM-IATF MC No. 2019-1 amended Item II.5 of the Guidelines.

[2] As Amended by DBM-IATF MC No. 2019-1

 

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