&? '1. /j ~;/--!!!.

-~.3 _/I'.UIY
Republic of the Philippines
- DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
OFFICE OF THE SECRETARY
Manila

DEPARTMENT ORDER) SUBJECT: STRATEGIC PERFORMANCE

MANAGEMENT SYSTEM
No. :3 ~ ]
Series of 201t:J ~.,"'f )

Pursuant to the provisions of Civil Service Commission Memorandum

Circular No.6, s. 2012 which provides the guidelines in the establishment
and implementation of agency Strategic Performance Management
System and Executive Order 80, s. 2012 directing the adoption of a
performance-based incentive system for government employees, the
DPWH Strategic Performance Management System is hereby established.

1. PURPOSE

The DPWH Strategic Performance Management System (SPMS) seeks to link

individual performance with th.e DPWH vision, mission and strategic goals. With
some adjustments, it also makes use of management systems and links performance
management with other human resource (HR) systems.

2. POLICY GUIDELINES

2.1 The DPWH SPMS is made an integral part of the human resource management
and capacity development program of the Department.

2.2 Performance goals and measurements are aligned to national development

plans, agency mandate, vision, mission and strategic priorities, and/or
organizational performance indicator framework. Predetermined standards are
integrated into success indicators as organizational objectives are cascaded
down to the operational level.

2.3 The SPMS focuses on the major final outputs (MFOs) that contribute to the
realization of the organization's mandate, vision, mission, strategic priorities,
outputs and outcomes.

2.4 Accountabilities and individual roles in the achievement of organizational goals

are clearly defined to facilitate collective goal setting and performance rating.
The individual's work plan or commitment and rating form is linked to 'division,
unit arid office work plan or commitment and rating form to clearly establish the
connection between organizational and employee performance.

2.5 The forms for organizational and individual commitments are similar. The office,
division, and individual major final outputs and success indicators are aligned to
cascade organizational goals to individual employees and harmonize
organizational and staff performance ratings.
 D.O. No. 32 5.2014 Page2of9

2.6 It is important that there is a regular monitoring of the performance of offices,

divisions, and employees. This needs evaluation mechanisms and evaluations so
that timely and appropriate steps can be taken towards meeting performance
targets and organizational goals. An information system as a vital management
tool that will support data management to produce timely, accurate, and
reliable information for program tracking and performance monitoring must be
in place.

3. SCOPE

The SPMSshall apply to all officials and employees of this Department except those in
the Career Executive Service (Undersecretaries, Assistant Secretaries, Project
Managers, Bureau Directors, Service Directors, Regional Directors, and Assistant
RegionalDirectors)

4. PERFORMANCE MANAGEMENT SYSTEM CYCLE

The SPMSfollows the four-stage Performance Management cycle that underscores the
importance of the performance.

First Stage - Performance Planning and Commitment

This will be done prior to the start of the performance period where the heads of the
offices meet with the supervisors and staff and agree on the outputs that should be
accomplished based on the goals and objectives of the Department. The suggested
period for the Performance Planning and Commitment is the last quarter of the
preceding year, from October to December. This stage involves the following steps:

1. Knowing and Understanding the DPWHMajor Final Outputs

2. Identifying the SuccessIndicators of Each Major Final Outputs
3. Identifying the Performance Goals of the Office (Bureau, Service,
UPMO,Regional office and District Engineering Office)
4. Identifying the Performance Goals of the Divisions Under Each Office
5. Identifying the Performance Goals of the Individuals Under Each
Division

Second Stage - Performance Monitoring and Coaching

This will be done from January to June (1st semester) and July to December (2nd
semester). During the monitoring and coaching period, it is important to regularly
monitor the performance of the office, divisions and employees. This stage involves
the following steps:

1: Developing the Performance Monitoring and CoachingTools

2. Developing the Performance Evaluation Tools

Third Stage - Performance Review and Evaluation

This will be done at the end of the performance monitoring period, June and
December. The following performance evaluation tools will be used to review

2
 D.O. No. 32 5.2014 Page30f9

performance from the office and division levels down to the individual staff
level:

~ Office Performance Commitment and Review (OPCR) Form is

accomplished by Bureau, Service and Regional Directors (Annex A)

~~ Division Performance Commitment and Review (DPCR) Form is

accomplished by the Division Chiefs (Annex B)

~ Individual Performance Commitment and Review (IPCR) Form is

accomplished by individual staff in all units of the organization.
(Annex C)

For the OPCR and DPCRforms, the first four columns of the table should be completed
atthe beginning of the performance monitoring period.

Column 1 - Major Final Outputs that the Office or Division is contributing to

Column 2 - Success indicators or performance targets of the Office or Division
per MFO
Column 3 - Allocated budget per performance target. For performance targets
that have no budget allocation, write "None"
Column 4 - Divisions accountable for each performance target for the OPCR
- Persons accountable for each performance target for the DPCR

For the IPCR form, the first two columns should be completed at the beginning of the
performance monitoring.

Column 1 - Major Final Outputs that the Division is contributing to

Column 2 - Success indicators or performance targets of each individual staff
per MFO for the monitoring period

During the actual evaluation, the rater describes the actual accomplishments of the
ratee vis-a-vis the performance targets on the 5th column for the OPCR and DPCR or
the 3rd column for the IPCR.

. Fourth Stage - Performance Rewarding and Development Planning

This stage involves the discussion of the evaluation results focusing on the evaluation
results like the strengths, competency-related performance gaps and the opportunities
to address these gaps, career paths, and alternatives.

The Heads of the Offices and supervisors must introduce appropriate developmental
interventions based on the results of the performance evaluation espeCially for
employees w'ith Unsatisfactory and Poor Performance ratings.

5. RATING PERIODS

Performance Appraisal shall be made semi-annually, one from January to June and the
other from July to December.

3
 D.O. No. 32 5.2014 Page4of9

6. RATING SCALE

6.1 Rating dimensions

The three dimensions of performance or accomplishments are quality,efficiency,

and timeliness.

Quality or effectiveness means getting the right things done. It refers to the
degree to which objectives are achieved as intended and the extent to which issues
are addressed with a certain degree of excellence.

Efficiency is the extent to which targets are accomplished using the minimum
amount of time or resources.

Timeliness measures if the targeted deliverables was done within the scheduled or
expected timeline.

6.2 Numerical and Adjectival Rating

NUMERICAL ADJECTIVAL DESCRIPTION OR MEANING OF THE

RATING RATING RATING

5 Outstanding Performance exceeded expectations by 30%

and above of the planned targets
Performance demonstrated was exceptional in
terms of quality, technical skills, creativity, and
initiative, showing mastery of the task.
Accomplishments were made in more than
ex ected but related as ects of the tar et.
4 Very Satisfactory Performance exceeded expectations by 15% to
29% of the lanned tar ets.
3 Satisfactory Performance met 90% to 114% of the planned
targets. However, if it involves deadlines
required by law, it should be 100% of the
lanned tar ets.
2 Unsatisfactory Performance only met 51% to 89% of the
planned targets and failed to deliver one or
more critical aspects of the target. However, if
it involves the deadlines required by law, the
ran e of erformance should be 51% to 99%.
1 Poor Performance failed to deliver most of the targets
b 51% and below.

7. EVALUATION T.OOLS

To effect the cascading approach of the SPMStowards achieving organizational goals,

three kinds of forms will be used:

Office Performance Commitment and Review (OPCR) Form is accomplished by

Bureau, Service and Regional Directors

4
 D.O. No. 32 5.2014 PageSof9

Division Performance Commitment and Review (DPCR) Form is accomplished

by the Division Chiefs
Individual Performance Commitment and Review (IPCR) Form is
accomplished by individual staff in all units of the organization.

8. PERFORMANCE MANAGEMENT TEAMS

The DPWH Performance Management Team (PMT) was established through Department
Order No. 50, s. 2013. The main function of the DPWH-PMT was to establish and
implement the DPWH Strategic Performance System consistent with the Guidelines
disseminated under CSC Memorandum under CSC Memorandum Circular No.6, s. 2012.

It acts as appeal body and final arbiter on unresolved issues elevated by the Bureau,
Service, Regional and DEOs PMT.

Each Bureau, Service, Regional and District Engineering Office shall create its own Office
Performance Management Team (PMT) with the following composition:

A. Bureaus/Services
Chairman Bureau/Service Directors
Members: Assistant Bureau/Service Director
Maximum of three (3) Division Chiefs to be identified by
the .Bureau/Service Director
Bureau/Service Representative in the DPWH-CO
Employees Association

B. Regional Offices
Chairman Regional Director
Members: Assistant Regional Director
Chief, Planning & Design Division
Chief, Financial Management Division
Chief, Human Resource Management Section
President, DPWH-RO Employees Association

C. District Engineering Offices

Chairman District Engineer
Members: Assistant District Engineer
Chief, Planning & Design Section
Chief, Administrative Section
Chief, Financial Management Section
Human Resource Management Officer II (HRMO)

Responsibilities of the PMT

1. Set consultation meeting with supervisors to discuss the .office performance

commitment based on the approved infrastructure program, office
operations plan and annual training program;
2. Approval of the Office Performance Commitment Rating (OPCR) Form;
3. Create a Secretariat composed of technical and administrative staff to
assist in the review and validation of performance ratings;

5
 D.O. No. 32 5.2014 Page6of9

4. Act as appeal body and arbiter of issues arising from the implementation of
the SPMS;
5. Identifies potential top performers (office and individual) for rewards;
6. Identify and provide the kind of interventions needed for the proper
implementation of the SPMS;
7. Adopt and undertake communications strategy which will engage the
employees in the proper understanding the CSC- approved DPWH SPMS,
especially in setting their individual performance targets and linking the
same to the performance targets of their respective offices;
8. Set up a Help Desk and appeals mechanism to respond to queries, issues
and concerns on the new SPMS;and ensure adherence to the guidelines of
the SPMS.

9. WHO SHALL RATE?

As a general rule, each official or employee shall be rated by his/her immediate

supervisor, subject to the review or concurrence by the next higher supervisor

10. RESPONSIBILITIES

10.1. Human ResourceManagement Offices

The Human Resource Management Division (HRMD), Human Resource and
Administrative Service, DPWH Central Office and the Human Resource
Management Section (HRMS),of the Regional Offices shall:

Have the overall responsibility in the administration of the SPMSand

the custody of performance rating reports.

Provide staff assistance to supervisors and initiate and/or coordinate

training for raters and ratees to ensure effective implementation of the
System.

Monitor submission of Individual Performance Commitment Rating

(!CPR) Form

Review and maintain the summary list of individual performance

commitment rating.

10.2. Supervisors

Eachsupervisor shall be responsible for:

Assuring that the success indicators or performance targets .of each

~mployee under his/her supervision are derived from the MFOs(found
in the DPWH Logical Framework) and strategic objectives and measures
(found in the DPWHScorecard)

. Putting monitoring and evaluation mechanisms and tools in place so that

timely and appropriate steps can be taken towards meeting performance
targets and organization goals.

6
 D.O. No. 32 5.2014 Page7of9

Rationalizing distribution of targets and tasks to individual employee

based on the individual job description.

Providing an enabling environment, introduce interventions to improve

team performance and develop individual potentials.

Establishing an information system as a vital management tool that will

support data management to produce timely, accurate and reliable
information program tracking and performance monitoring and reporting.

Introducing appropriate developmental interventions to enhance skills,

address competency-related performance gaps, develop career path for
each employee and for performance-based incentives and rewards
purposes.

Assessingindividual employees' performance

10.3 Capacity Development Division (CDD) and Human ResourceDevelopment

Section (HRDS)

The Capacity Development Division (CDD), Central Office and the HRDSin the
Regional Offices shall

Conduct orientation courses to all officials and employees in the DPWH

Central Office and Field Offices (Regional and District Engineering
Offices) respectively, for the effective implementation of the DPWH
SPMS.

Coordinate development interventions with HRM officer and design aid

implement training courses to enhance employees' competency and
develop appropriate teamwork behaviour.

The Chief Administrative Officer of the CDD and the Administrative Officer V of
the HRDSin the Regional Offices shall, when necessary, seek the assistance of
the Civil Service Commission in the conduct of such training.

1-1. MANAGERS' AND SUPERVISORS' ORIENTATION

All managers with the level of Bureau Directors, Service Directors, Project Directors,
Regional Directors, District Engineers and Division Chiefs shall undergo orientation prior
to initial implementation of the SPMS.

The Bureau Directors, Service Directors, Project Directors, Division Chiefs in the Central
Office shall attend the orientation to be held in the Central Office Training Room.

The Regional Directors, Assistant Regional Directors, District Engineers and Division
Chiefs, in the Regional Offices shall attend the orientation to be conducted in the
Regional Office Conference Hall.

7
 D.O. No. 32 5.2014 Page8of9

A series of orientations for personnel with the levels of Project Managers (not designated
as Project Director), Assistant District Engineer, and Assistant Division Chief and below
shall be held at later date.

12. SANCTIONS/PENALTIES

Unless justified and accepted by the PMT, non-submission of the Office Performance
Commitment and Review form to the PMT, and the Individual employee Performance
Commitment and Review Forms to the HRM Office within the specified dates shall be a
ground for:

a. Employee'sdisqualification for performance-based personnel actions which would

require the rating given such as promotion, training or scholarship grants and
performance enhancement bonus, if the failure of the submission of the report
form is the fault of the employee.

b. An administrative sanction for violation of reasonable office rules and regulations

and simple Neglect of duty for the supervisors or employees responsible for the
delay and non-submission of the office and individual performance commitment
and review report.

c. Failure on the part of the Head of Office to comply with the required notices to
their subordinates for the unsatisfactory or poor performance during a rating
period shall be a ground for an administrative offense for neglect of duty.

13. APPEALS

a. Office performance assessment as discussed in the performance review

conference shall be final and not appealable. Any issue/appeal on the initial
performance assessment of an Office shall be discussed and decided during the
performance review conference.

b. Individual employees who feel aggrieved or dissatisfied with their final

performance ratings can file an appeal with the PMTwithin 10 days from the
date of receipt of notice of their final performance evaluation rating from the
Head of Office. An office/unit or individual employee, however, shall not be
allowed to protest the performance ratings of other office/unit or co-employees.
Ratings obtained by other office/Unit or employees can only be used as basis or
reference for comparison in appealing one's office or individual performance
rating.

c. The PMTshall decide on the appeals within one month from receipt.

d. Officials or employees who are separated from the service on the' basis of
Unsatisfactory or Poor performance rating can appeal their separation to the CSC
or its regional office within 15 days from receipt of the order or notice of
separation.

8
 D.O. No. 32 5.2014 Page90f9

Since the employee's performance rating may influence many important personnel
decisions like tenure, promotion, salary increments, incentives, bonuses and etc., the
ratee has the right to appeal if he/she is not satisfied with the supervisor's performance
evaluation. Within five (5) day from receipt of his/her copy of the performance evaluation
report, an employee who is dissatisfied with the rating given him/her may appeal his/her
case through the duly established Grievance Machinery of the Office.

14. REPEAL

This Order revokes Ministry Order No. 25 series of 1982, Department Order No. 187
series of 1992, and Department Order No. 85 series of 1993.

13. EFFECTIVITY

The DPWH Strategic Management System shall be implemented starting the rating
period July-December2014 and shall remain in use until further notice.

------ -------.--------

Department of Public Works and Highways

Office of the Secretary

1II11 " 111111I1111111111111I111111111

WIN4D00506