PERFORMANCE-BASED INCENTIVE SYSTEM FOR FY2012 O/TNIG CONFERENCE ROOM 040900H DECEMBER 2012

1. PERFORMANCE-BASED INCENTIVE SYSTEM FOR FY2012 O/TNIG CONFERENCE ROOM 040900H DECEMBER 2012 “Strong and Credible Navy for a Progressive Maritime Philippines”

2. SCOPE OF PRESENTATION • References • Highlights of EO80 & AO25 • Mechanics of the Interim AFP Rating and Ranking System • Deliverables • Rating Procedures for PN Personnel • Proposed PN Units Forced Ranking • Updates of PN Personnel Forced Rating

3. REFERENCES • Letter of DBM Secretary FLORENCIO B ABAD (Chairman, AO25 Inter-Agency Task Force) to Hon VOLTAIRE T GAZMIN, Secretary, DND re Conditional Approval of PBB Granting • EO80 (PB Incentive System), AO25 & AO25 Inter-Agency Task Force Memorandum Circular No 2012-02 dated 16 Oct 2012 • AFP Manual 11-2 re Inspector General Services & AFP RG 161-291 dated 21 Jan 1954 re Inspector General’s Service • DND Memo dated 26 Mar 2012 re 2012 Program Performance Review Guidance, Program 1-4

4. REFERENCES • DND Circular No 4, GHQ-AFP dated 05 May 2003 re AFP Officer Appraisal System • Memorandum Circular No 2012-03, IATF dated 12 November 2012 re Guidelines on Determining Eligibility and Ranking Bureaus, Delivery Units, and Individuals Based on Performance in Line with the Grant of the Performance-Based Bonus (PBB) in FY2012 • AFP Circular No 16 dated 13 Sept 93 re EP Evaluation Marks • AFP SOP No 6 dated 19 Jun 95 re AFP Performance Evaluation Mark for Civilian Employees

5. HIGHLIGHTS OF EO80 • Rationalize the current incentive system in government generally characterized by across-the-board bonuses • Strengthen performance monitoring and appraisal systems like the Organizational Performance Indicator Framework (OPIF) to measure agency performance • Link personnel incentives to delivery unit’s performance and recognizing & rewarding exemplary performance • Establish and implement a Performance-Based Incentive (PBI) System that will motivate higher performance and greater accountability.

6. HIGHLIGHTS OF AO25 • Rationalize, harmonize, streamline, simplify, integrate and unify the efforts of government agencies relative to the National Leadership’s Agenda, the Phil Development Plan, commitments and targets • Establish a unified and integrated Results-Based Performance Management System (RBPMS) • Incorporate a common set performance scorecard, and organizational performance information system • Provide a basis for determining entitlement to performance-based allowances, incentives, or compensation of government personnel.

7. PERFORMANCE-BASED INCENTIVE SYSTEM Productivity Enhancement Incentive (PEI) – across-the-board bonus of P5,000.00 per employee (from the original P10,000.00) Performance-Based Bonus (PBB) – top-up bonus based on individual’s contribution to accomplishment of Department/Agency targets Note: The PEI and PBB top-up bonus shall be sourced from the Miscellaneous Personnel  Benefits Fund (MPBF)

8. CONDITIONS TO QUALIFY FOR THE PBB • Achieved at least 90% of MFO (Major Final Output), STO (Support to Operations), GASS targets (General Administration and Support Services. • Achieved at least 90% of Priority Program targets • Meet 100% of good governance conditions under the performance drivers of the RBPMS, set by the AO 25 Task Force for FY 2012 • System of Forced ranking of Delivery Units and the personnel within them • Good Governance Conditions (all 4 of them)

9. PERFORMANCE CATEGORIES

10. MECHANICS OF THE AFP RANKING AND RATING SYSTEM The AFP and the different Major Services (PA, PAF, PN & GHQ Proper & TAS – Programs 1-4) shall adopt a standardized System of Rating and Ranking the Performance of AFP Delivery Units and Personnel/Soldiers.

11. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • Overall Lead Responsibility for organizing, conducting & implementing the proposed (Annual) System of Rating and Ranking shall be the respective Resource Managers of Program 1-3 (the Major Service Commanders) and Program 4 (VCSAFP). They shall formally be represented by the Deputy Inspector General of each Service (PA, PAF, PN) and in the case of Program 4 – by the Deputy, TIG, AFP: • Deputy IG’s of Program 1-4 shall be the lead staff in collaboration with their respective RMO, MFO, 1’s & IT Offices • They shall be designated as Performance Management Team. • PMTs for each Service shall have the lead responsibility for collating, recording, assessing, evaluating and in physically complying with the documentary requirements relative to the Rating and Ranking of Delivery Units and Personnel/Soldiers

12. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • The System of Rating and Ranking the Performance of AFP Delivery Units and Personnel/Soldiers shall center on the following: • Forced ranking of bureaus or Delivery Units (DUs) according to the extent/decree of their contribution to the achievement of their respective Agency/Unit performance targets. • Forced ranking of officials and employees of bureaus, offices or delivery units that qualified for the PBB

13. MECHANICS OF THE PROPOSAL • Forced ranking of bureaus or Delivery Units (DUs) according to the extent/decree of their contribution to the achievement of their respective Agency/Unit performance targets: • PMT of each Service (Program 1-4) shall rank their respective Delivery Units as follows:

14. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • The parameters for the determination which among the Delivery Units (DUs) is Best, Better or Good shall be in accordance with the establish quantitative criteria they observe in their respective Service. • In addition, each Service has the option to use other criteria, both quantitative and qualitative (ex. Rating/Result of Annual General Inspection and Program Performance Budget Execution Review - PPBER) in the implementation of their rating scheme

15. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • Forced ranking of officials and employees of bureaus, offices or delivery units that qualified for the PBB : • PMT of each Service (Program 1-4) shall rank their respective Individual Personnel/Soldier as follows:

16. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • The parameters for the determination which among their Individual Personnel/Soldier is Best, Better or Good shall be in accordance with the following: • a) DND Cir No 4, re AFP Officer Appraisal System • b) AFP Cir No 16 re EP Evaluation Marks • c) AFP SOP No 6 re AFP Performance Evaluation Markfor CEs

17. MECHANICS OF THE AFP RANKING AND RATING SYSTEM • The composition and corresponding basic duties of each member of the Performance Management Team is as follows: :

18. DELIVERABLES

19. RATING PROCEDURE FOR PN PERSONNEL • Categorization of Individuals shall be by personnel class: • Officers • Enlisted Personnel • Civilian Employee • All PN Units shall forced ranked their respective personnel by personnel class • Type Commands - PHILFLT/PMC • Operational Commands - SIX (6) NAVAL FORCES & FMRF • Support Commands - NSSC/NETC/NCBde/NRC/NBC • Support Units - NISF/PNFC/NLC/MNH/CNH/BNS • HPN & HSG/CMOG,PN

20. RATING PROCEDURE FOR PN PERSONNEL FORMAT OF PERSONNEL PERFORMANCE RATING SHEET

21. IMPORTANT GUIDELINES • Deadline of Submission: 291200H November 2012 • All Rating Sheets should be submitted in Hard and • Electronic Copy to HPN (Attn: N1) • PN Units that will not submit WILL NOT BE INCLUDED in • the Consolidated PN Personnel Rating Sheet that will be • submitted to the Chairman, DND Performance Management Group (Attn: ASPP/ASPER)