System for Ranking Officers & Employees

GCG MEMORANDUM CIRCULAR NO. 2015 - 05

DISTRIBUTION SYSTEM - Distribution of PBB among qualified Officers and Employees of a GOCC who have complied with the eligibility rules shall be in accordance with the following procedure:

I.  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 levels as determined by the GOCC Governing Board through Management in accordance with the following guidelines:

(a) Senior Management:  This refers to the executive officers of the GOCC, and includes all heads of functional units, which are primarily involved in the development, evolution, and approval of long-term vision accross a function or area of strategy, implement and maintain policies of the organization for area of responsibility.  (e.g., Deputy Administrator, Sr. Deputy Administrator, Assistant General Manager, Executive Vice President, Sr. Vice President, Vice President, etc.)

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. 2015-06, 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 be included in the forced ranking of Officers and Employees.

(b) Middle Management:  This 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 (e.g., Head of Department or Service).

(c) Professional and Supervisory:  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 (e.g., Financial Analyst/Specialists, Accountant, HR Officer, etc.)

(d) Clerical/General Staff:  This category includes all clerical, administrative and secretarial staff with little or no supervisory responsibility but who conrtribute independently to the organization. It also covers basic computing/data processing staff such as operators, customer service assistants and skilled craftsmen/technicians (e.g., Secretary, Clerk, Finance Processor, Administrative Assistant, Chauffeur, Utility Worker, Messenger).

II.  DISTRIBUTION FOR QUALIFIED OFFICERS AND EMPLOYEES

In each level provided for in Section I above, the ratings of Officers and Employees under the GOCC's SPMS or its equivalent shall be quantified to allow for ranking on a percentile basis for the purpose of distribution as follows:

For Profitabe GOCCs. - The grant of the PBB 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 based on the table below, but not to exceed the ceilings computed by using the same multiple to twice the basic salary of the comparable NG position as provided in Annex A.  Thus, the PBB for Profitable GOCCs shall be distributed among its Officers and Employees for CY 2015, as follows:

PERCENTILE MULTIPLE
Top: Maximum 10%  2.50
Next: Maximum 25% 1.50
Remaining:  Minimum 65% 1.00

*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 2015 computed before subsidy and unrealized gains/losses, and after taxes.

For Losing GOCCs. - The grant of PBB shall also be based on the performance of individual Officers and Employees with the following fixed  rate of incentive; thus, Losing GOCCs shall distribute PBB among its Officers and Employees for CY 2015, as follows:

PERCENTILE AMOUNT
Top: Maximum 10%  25,000
Next: Maximum 25% 15,000
Remaining:  Minimum 65% 7,500

*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.

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