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Annex-E-CBC-Performance-Management-System-Policy.pdf
- 1. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 1 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 PERFORMANCE MANAGEMENT SYSTEM OVERVIEW The Performance Management System (PMS) is a vital tool for aligning individual performance with the Bank’s strategic direction and operational business plans. It is an integrated process by which the organization involves its employees in improving organizational effectiveness towards the accomplishment of its mission and strategic goals. Whereas the Bank shall use the Balanced Scorecard (BSC) as a tool to capture, describe and translate its strategic goals into defined objectives at group, divisional, departmental, and branch levels, it shall use the PMS to capture the individual officers’ objectives that are aligned with the BSC. This Policies and Procedures Circular shall take effect starting 2014 Performance evaluation period and shall be observed by the Officers and Supervisors of China Banking Corporation and all its subsidiaries. OBJECTIVE The Performance Management System (PMS) shall achieve the following objectives: 1. Employee Information- to provide an opportunity for a dialogue between the Employee and his Supervising Officer regarding standards of performance, review how the
- 2. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 2 2 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Employee’s performance measure against these standards, and determine the Employee’s strengths and areas for development. 2. Employee Development- to assist in determining the Employee’s training and developmental needs through assessment of gaps in performance and Employee’s potential. 3. Employee Recognition- to provide venue to recognize and reward outstanding or above acceptable performance. 4. Employee Placement- to ascertain the Employee’s potential, identified strengths, inclinations and skills, which may serve as guide for matching the Employee to the right job. DEFINITION OF TERMS Budget Period Twelve-month period, usually from January to December, during which specific activities should be implemented by the Bank and for which funding and resource requirements are defined to achieve its goals and objectives. Organizational Goal The overall vision, mission and strategic objectives of the Bank as established by its management and communicated to its employees. Balanced Scorecard (BSC) A strategic planning and management system used to align business activities to the vision statement including the strategic business objectives of an organization. It is used to evaluate an organization’s impact from several perspectives, such as customer, employees, internal business processes and financial results. Key Result Area (KRA) Refer to the key areas for which the employee needs to produce results. They are general areas of outcomes or outputs for which the Individual’s role is responsible, and are managed by setting output- based objectives or goals that are aligned with the overall organizational goals for a specific budget period. Key Performance Indicator (KPI) Refer to the factors that describe the indicators of performance or success for an employee, for each specific KRA. Performance Management Cycle The process of managing performance of employees to encourage employee growth and job satisfaction and ensure the attainment of the strategic business objectives. Line Manager/ Rater Officer with at least Department Head/Branch Manager position, responsible for managing the performance of his unit and its employees. Performance Progress Review The process of providing feedback to employees on the status of their performance on a quarterly basis or as needed.
- 3. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 3 3 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Annual Appraisal The process of evaluating overall performance of employees against set standards for a specific budget period. Performance Improvement Program (PIP) A program established for employees who are given “Needs Improvement” rating in the Annual Appraisal (for current employees) or after the third month from hiring or transfer date (for newly hired/transferred employees) with the objective of improving their performance to at least “Acceptable” level. DUTIES AND RESPONSIBILITIES Unit/Person Responsible Tasks Group Head (GH)/Division Head (DH)/Region Head (RH)/ Area Head (AH) 1. Defines group/divisional/departmental/branch goals in line with the set organizational goals (BSC) for the year. 2. Cascades the defined goals to subordinates. 3. Reviews and approves KRA of officers within their group to ensure alignment of their KRA to the overall BSC. 4. Approves overall annual rating of Officers under their group. Line Manager/Rater (Rater) 1. Together with the employee, develops individual KRAs that are aligned with overall BSC with set KPIs and corresponding weights. 2. Monitors and documents progress towards accomplishment of goals and provides feedback as frequently as needed. 3. Evaluates subordinate’s performance against standards identified in the goal setting. 4. Recommends over-all annual performance rating of individual officers under his unit. 5. Conducts performance review discussion. Employee/Ratee (Ratee) 1. Together with the Rater develops individual KRAs that are aligned with overall BSC with the set KPIs and corresponding weights. 2. Monitors and documents progress towards accomplishment of goals and gives feedback as frequently as needed. PMS Working Committee 1. Reviews KRA’s to ensure they are aligned to over-all business objectives, complementary and that weights are consistently assigned across units. 2. Ensures that Service Level Agreements across units are defined and agreed upon. Note: Composition of the Committee shall be set by the President every first month of the year.
- 4. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 4 4 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Unit/Person Responsible Tasks Performance Review Board (PRB) 1. Conducts bankwide review and calibration of performance rating of Officers. Human Resources Division – Human Resources Administration Department (HRD-HRAD) 1. Facilitates the Annual Performance Appraisal of Officers. 2. Convenes the Bank wide Performance Review. Human Resources Division – Organization and Employee Development Department (HRD-OEDD) 1. Facilitates and monitors developmental requirements stated in the PER form through coordination with the respective Line Manager. 2. Facilitates and monitors development programs and status of employees under PIP. Human Resources Division – Employee Relations Department (ERD) 1. Facilitates the process of separation for Officers who will fail the PIP. GENERAL GUIDELINES A. Appraisal Period 1. Regular Performance Appraisal of Officers and Supervisors shall be accomplished at least once a year, every January following the lapse of the budget period of the previous year (January to December). 2. However, appraisal may also be required for purposes including, but may not be limited to the following: a. Semestral/Quarterly/Monthly Progress Review b. Transfer of employees from one Group/Division/Department/Branch to another Unit. c. Administrative action such as promotion, change in status, etc. d. Performance Improvement Program 3. An appraisal shall cover a minimum period of three (3) months to a maximum period of one (1) year. B. KRA System 1. The Bank shall use the KRA System as a performance management tool for establishing and documenting the required and actual performance of the employee. 2. The weight of each of the KRA shall be determined based on the level of importance of the KRA and its contribution to the overall group objectives in the BSC. 3. Each KRA shall be defined by KPI’s which shall measure how the Ratee is performing or progressing. Each KPI shall also be assigned weights, based on their level of importance.
- 5. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 5 5 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 4. Officer’s KRA shall be aligned with the departmental objectives using the four perspectives of the Balanced Scorecard. 5. KPIs shall be stated in Specific, Measureable, Agreed upon, Realistic and Time-based (SMART) terms. 6. Every year, the PMS Working Committee shall review all KRA’s across the bank to ensure alignment with the Bank’s overall business objectives, target and BSC with consistent assignment of weights. C. Performance Evaluation 1. Performance shall be evaluated according to the following dimensions: a. Performance Dimension- focuses on measures common to all employees of the Bank, defined by observable behavior that when performed, may indicate acceptable performance. Performance Dimension shall be measured according to the following factors: i. Revenue Maximization – refers to business practices/strategies that capitalize on increasing profit or revenues of the organization. ii. Cost Management – refers to practices that shall control and plan the cost of operations to properly utilize available resources. iii. Service Excellence/Operational Effectiveness – refers to practices that shall address the needs and expectations of customers and effectiveness of the operation or internal controls, and coordination between or among departments; practices that allow the Bank to better utilize its inputs; adherence to pertinent policies, rules and regulations and Service Level Agreements. This dimension shall consider/include the following factors: Result of customer satisfaction survey/feedback Resolutions implemented to address/resolve the findings from the review conducted by Internal Audit, Compliance Testing, BSP Audit and other regulatory bodies. Timely submission of reports that are being required to be accomplished by the Business Units (i.e. RCSA, BCP, Compliance Testing, etc.) Performance and accomplishment of Compliance and Risk functions which include submission of critical reports. b. Behavioral Dimension- focuses on the set of behavior, actions and core values that an employee must exhibit in successfully carrying out his function, which may vary depending on the level of the employee’s position in the hierarchy. Behavioral Dimension shall be measured according to the following factors:
- 6. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 6 6 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 i. Strategic Orientation – Ability to anticipate and plan for future events, trends, problems and opportunities and to make sound judgment. ii. Results Orientation – Ability to focus on and deliver in a constantly changing environment, and to establish appropriate goals and action plans based on an understanding of overall deliverables. iii. People Management/ Leadership – Ability to create and sustain a work environment that promotes discipline, teamwork, career development and professional growth. Ability to influence, motivate and inspire people and develop in them the desire and commitment to work toward a common objective. iv. Technical Competence – Comprehensive knowledge and understanding of the concepts and basic principles of his/her function and its interrelationships. v. Customer Focus – Ability to create and nurture internal and external business and people relationships to assure beneficial working environment. 2. The overall weight allocation for the two dimensions shall depend on the rank or position of the Officer. While each dimension shall have sub-elements which shall have corresponding weights according to job family/level. Weight allocation shall be as follows: Overall Weight Allocation Job/Position Level Performance Dimensions Behavioral Dimensions Total Grp/Div/Dept/Branch Heads, Marketing & Lending Officers 80% 20% 100% Technical, Operations & Support Officers 70% 30% 100% Note: Management reserves the right to update or revise the scale. Weight Allocation According to Job Family/Level Performance Dimension: Job Family Revenue Maximization Cost Management Service Excellence/Operational Effectiveness Marketing 40% 30% 30% Operations 0% 30% 70% Support 0% 30% 70% Technical 0% 40% 60%
- 7. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 7 7 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Note: Every year, PMS Working Committee shall recommend weight allocation for performance dimension on a per job family and shall still be subject for approval of the COO and President. Behavioral Dimension: Job Family Strategic Orientation Results Orientation People Management/ Leadership Technical Competence Customer Focus Group/ Division Heads 30% 20% 25% 10% 15% Department Head 15% 25% 25% 20% 15% Junior Officers 10% 25% 20% 30% 15% Note: Assigned weights for each dimension shall be uniform across the Bank. 3. A progress review shall be conducted by the Line Manager/Rater to ensure that actual performance and behavior are monitored and documented, and that employees are given feedback on how they have been doing so far, and advised on how to further improve performance. Note: Progress review can be done on a semestral, quarterly or monthly basis depending on the Officer’s function. Sales Officers are encouraged to do monthly progress review. D. Performance Cycle/Schedule 1. The Performance Management Cycle shall consist of the following phases: a. Planning – where performance objectives and standards are defined and communicated to the employees. b. Acting – where action is taken to achieve the stated objectives at the targeted performance levels. c. Monitoring – where the results are measured and the gaps on performance are analyzed and addressed. d. Reviewing – where the performance of an employee is evaluated against the set standards. 2. The following shall be the schedule of the Performance Management System: a. Annual Review for budget period January – December Phase Date Activity Detailed Task Planning January of current budget year Review of PMS Working Committee (PMSWC) PMS Working Committee reviews previous year’s weight allocation for Performance Dimension
- 8. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 8 8 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Phase Date Activity Detailed Task and recommends new matrix for the next review period. December of previous year to January of current budget year Formulation of KRA for the incoming year. Ratee and Rater formulate individual KRA that are aligned with organizational goals and objectives and accomplish the Officer’s KRA Setting Form. (See Exhibit 1). Note: Refer to Annex A for the complete step by step procedures in accomplishing the form. Rater and Ratee sign on the Officer’s KRA Setting Form. Note: Review shall be done up to Group Head level. 1 st Week of February Submission of signed/ approved KRA Rater submits accomplished and signed Officer’s KRA Setting Form to HRD-HRAD Monitoring April, July, October Quarterly/Semestral /Monthly progress review Rater monitors actual performance against goals indicated in the KRA using Progress Review Form (See Exhibit 2) and provides update to the Ratee. Note: The Ratee may initiate discussion with the Line Manager/Rater on the status update. Reviewing 1 st week of January of succeeding year Annual Performance Review for previous budget period Rater and Ratee accomplish the Officer’s Performance Appraisal Form (See Exhibit 3). Note: Refer to Annex A for the complete step by
- 9. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 9 9 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Phase Date Activity Detailed Task step procedures in accomplishing the form. Rater reviews and validates the rating as provided by the Ratee. Note: Refer to Procedural Guidelines for the detailed process. 1 st week of February Submission of recommended rating to HRAD Group Heads submit PER Forms (with recommended rating) of their Officers to HRAD 1 st week of March PRB Bankwide Performance Review PRB conducts bankwide performance review 4 th week of March Return of the Appraisal Form to the Group Heads After the bankwide performance review conducted by Performance Review Board, HRAD shall return the signed Appraisal Form to the Group Heads Upon receipt of the signed Appraisal Form Discussion with the Ratee Rater discusses the final rating with the Ratee. If rating is acceptable, Ratee signs on the PER Form. Otherwise, Ratee may an appeal and discuss with the Line Manager. The appeal should be noted by the Group Head and addressed to the Performance Review Board thru HRD. Note: If the rating result is Needs Improvement, Officer shall automatically be enrolled in Performance Improvement Program.
- 10. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 10 0 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Phase Date Activity Detailed Task 1 st week of April Submission of PER forms with signature of the Ratee to HRAD Group Heads submit PER Forms (with signature of the Ratee) to HRAD for 201 file. b. New Hires/Transferees Phases Date Activity Detailed Task Planning Within 1 st week upon hiring/ transfer Formulation of KRA Ratee and Rater formulate individual KRA that are aligned with organizational goals and objectives and accomplish Officer’s KRA Setting Form. (See Exhibit 1). Note: Refer to Annex A for the complete step by step procedures in accomplishing the form. Rater and Ratee sign on the Officer’s KRA Setting Form. Note: Review shall be done up to Group Head level. Within two (2) weeks from the date of hiring/transfer Submission of KRA Rater submits accomplished and signed KRA Setting Form to HRD- HRAD Reviewing After three months upon hiring/6 months upon transfer Performance Review Rater and Ratee accomplish the Officer’s Appraisal Form (See Exhibit 3) Note: Refer to Annex A for the complete step by step procedures in accomplishing the form. Rater reviews and validates the rating as provided by the Ratee. Note: Refer to Procedural Guidelines for the detailed process.
- 11. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 11 1 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Phases Date Activity Detailed Task After the evaluation Discussion with the Ratee Rater discusses the final rating with the Ratee. If rating is acceptable, Ratee signs on the PER Form. Otherwise, Ratee may file an appeal and discuss with the Line Manager. The letter of appeal should be noted by the Group Head and addressed to the Performance Review Board thru HRD. Note: If the rating result is NI, Officer shall automatically be enrolled in the Performance Improvement Program. c. Performance Improvement Program Phases Date Activity Detailed Task Planning 1 st two weeks upon receipt of NI rating Signing of Undertaking and enrollment of the Officer in the Program Rater discusses with and explains the program and its objectives to the Ratee. Rater and Ratee formulate development action plans by accomplishing PIP KRA Setting Form (See Exhibit 4). The Rater and Ratee sign on the undertaking (See Exhibit 5). Rater coordinates with HRD- OEDD on the development plan for the concerned employee. Monitoring Monthly Progress review Rater provides status update to the Ratee and monitors actual performance against goals indicated in the KRA. Note: The Ratee may initiate discussion with the Line Manager/Rater on
- 12. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 12 2 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Phases Date Activity Detailed Task the status update. Reviewing 2 weeks Prior to end of the 1 st cycle Performance Review Rater and Ratee accomplish the PIP Appraisal Form (See Exhibit 6) Rater reviews and validates the rating as provided by the Ratee. Note: Refer to Procedural Guidelines for the detailed process. After the evaluation Discussion with the Ratee Forward signed PIP Evaluation Form to HRD- HRAD for 201 file. After the evaluation of the 1 st cycle prior to the start of the 2 nd cycle Formulation of action plans Rater and Ratee formulate development action plans by accomplishing PIP KRA Setting Form (See Exhibit 4). 2 weeks Prior to end of the 2 nd cycle Performance Review Rater and Ratee accomplish the PIP Appraisal Form (See Exhibit 6) Rater reviews and validates the rating as provided by the Ratee. Note: Refer to Procedural Guidelines for the detailed process. After the evaluation Discussion with the Ratee Rater discusses the final rating with the Ratee. If rating is acceptable, Ratee signs on the PER Form. Otherwise, Ratee may file an appeal and discuss with the Line Manager. The letter of appeal should be noted by the Group Head and addressed to the Performance Review Board thru HRD.
- 13. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 13 3 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 E. Rating Guide 1. In determining the score for each KRA, below shall be the guide in rating the Officer’s performance: a. Guide in rating/scoring the accomplishment and expected behavior Rating Definition Numerical Rating % Accomplishment of KRA Demonstrated Behavior O Outstanding 5 120% and above Exhibits all the required behavior at a very exceptional level all of the time VG Very Good 4 106 – 119.99% Exhibits all the required behavior more than the acceptable level 80% of the time G Good 3 90 – 105.99% Exhibits all the required behavior at an acceptable level A Acceptable 2 75 – 89.99% Exhibits 80% of the required behavior at an acceptable level NI Needs Improvement 1 0 - 74.99% Behavior requires immediate improvement Note: Management reserves the right to revise or update the scale. b. Guide in over-all rating of the Officer concerned Numerical Rating Rating Definition 4.67 -5 O Outstanding 3.67-4.66 VG Very Good 2.67-3.66 G Good 1.67 – 2.66 A Acceptable 0 – 1.66 NI Needs Improvement Note: Management reserves the right to revise or update the scale. F. Performance Improvement Program 1. The PIP is a program established to ensure that Officers who were not able to achieve their KRAs for the given budget period are provided with proper support and guidance with the objective of bringing their performance to at least Acceptable level. 2. An employee who is given a Needs Improvement (NI) rating shall automatically be enrolled in the Performance Improvement Program following the actual date of
- 14. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 14 4 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 discussion of his final performance rating by the Group Head/Region Head/Division Head/Area Head/Dept. Head/Branch Head. 3. The covered employee’s performance and developmental efforts will be closely monitored for the following duration: Covered Employees Duration New Hires 1 st cycle – 3 months 2 nd cycle – 3 months Existing Employees /Transferees (employees with atleast six months’ tenure as of Annual Rating Period) 1 st cycle – 6 months 2 nd cycle – 6 months 4. The Line Manager shall be responsible to closely monitor the performance of the enrolled employee to ensure that the employee has the proper support to achieve his goals. 5. Performance shall be assessed after the end of each applicable semester/quarter. 6. Officers who are enrolled in the program must have at least “Acceptable” Rating for the two consecutive cycles covered by the PIP to be taken out of the program. 7. The following scenarios shall be ground for the dismissal of an employee from his employment with the Bank or its subsidiaries, subject to the Bank’s policy on due process: a. Three consecutive performance ratings of NI b. Employee enrolled in PIP twice within a period of two consecutive years. G. Others 1. Appraisal matters are highly confidential and shall only be disclosed to the employee concerned and to duly Authorized Personnel. 2. Evaluation of Group/Division Heads shall be done by the following: Ratee Rater Risk Management Group Head Risk Committee Internal Audit Division Head Audit Committee Trust Group Head Trust Committee Chief Compliance Officer Compliance Committee All Division Heads except positions mentioned above Group Head Information and Security Office Head and Security Office Head President All Group Heads except positions mentioned above Chief Operating Officer or President
- 15. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 15 5 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 3. The effect of the administrative sanctions/penalties on Officer’s performance rating shall be on the year that the sanction/penalties were imposed in accordance with Bank’s Code of Ethics. Note: If there’s an appeal, the rating shall be on hold until resolution on the appeal is arrived at, following the Policies and Procedures in Handling of Administrative Cases. 4. Performance Rating forms/documents shall be submitted on deadlines set by HRD. 5. Failure to submit the Officer’s Performance Appraisal Form on the due date shall affect the overall rating of the Line Manager/Rater and shall not merit not more than NI rating under Behavioral Dimension-People Management Leadership factor. 6. Employee/Ratee Concerned may also be affected, if the latter is at fault and failed to do his part. 7. Formula for the annual appraisal of employees who transferred from one unit to another shall be as follows: (Rating of the Previous Unit X Number of Months rendered / 12) + (Rating of the Current Unit X Number of Months rendered / 12) e.g. (3.5 x 3 months / 12) + (4.2 x 9 months / 12) 0.875 + 3.15 = 4.025 Final Rating: 4.03 PROCEDURAL GUIDELINES A. Formulation of Organizational Objectives Senior Management Team 1. Define corporate goals for the incoming year. Group Head/Region Head/Area Head/Division Head 2. Cascade approved corporate goals to Line Managers. 3. Define departmental/branch goals in line with the organizational goals. Line Manager/Rater 4. Cascade departmental goals with subordinates.
- 16. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 16 6 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 B. Formulation of Key Results Area Line Manager/Rater 1. Based on set department/branch goals, develop KRAs align with overall BSC and assign KPI with set goals and corresponding weights. 2. Discuss KRA with Group Head. 3. Once KRA has been approved by the Group Head, discuss approved KRA with the Ratee. Ratee 4. Based on the discussion, accomplish Officer’s KRA Setting Form (Refer to Annex A for the complete step by step procedures). 5. Submit KRA Setting Form (See Exhibit 1) for review and approval of the Line Manager/Rater. Line Manager/Rater 6. Review KRAs encoded and assign respective weights (Refer to Annex A for the complete step by step procedures). 7. Submit KRA Setting Form to Group Head. Group Head/Region Head/Area Head/Division Head 8. Review and approve KRA Setting Form of individual Officers and return to the respective Line Manager once signed. Rater/Ratee 9. Discuss the approved KRA and sign-off. 10. Submit KRA to HRD-HRAD for 201 file and keep one copy for file. C. Progress Review (e.g. Quarterly) Ratee 1. At the end of the month/quarter, submit accomplishments to Line Manager/Rater vs the KRA and KPI that have been agreed upon. Line Manager/Rater 2. Upon receipt of the list accomplishments from the Ratee, discuss and identify concerns.
- 17. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 17 7 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 3. After discussion, summarize and document using the Progress Review Form (See Exhibit 2). 4. Sign-off Progress Review Form. 5. Keep signed Progress Review Form for file. Note: Progress Review Forms are not required to be submitted to HRD D. Annual Appraisal HRAD Staff 1. Send email notification to all Officers for preparation of the Annual Appraisal. 2. Send second notification. Ratee 3. Open the file accomplished during the KRA Setting at the start of the year. 4. Review KRAs encoded and validate. For any changes, revise and edit. (Refer to Annex A for the complete step by step procedures). 5. Once done reviewing/revising the form, encode accomplishments per KRA ((Refer to Annex A for the complete step by step procedures). 6. Submit file to the Line Manager. Line Manager/Rater 7. Review and validate KRAs and accomplishments encoded by the Ratee. 8. Discuss with the Ratee factors that may have affected performance of the Ratee. 9. After the discussion, encode comments and corrections, if any and accomplish the Behavioral Dimension Sheet. (Refer to Annex A for the complete step by step procedures). 10. Print and forward the accomplished Officer’s Performance Appraisal Form and Summary Sheet to the Group Head/Region Head/Area Head/Division Head for approval. Group Head/Region Head/Area Head/Division Head 11. Review and calibrate the recommended ratings of Officers within the group. 12. If acceptable, affix signature then forward final rating of Officer to respective Rater. 13. Submit signed Appraisal Form to HRD-HRAD and keep one copy for file.
- 18. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 18 8 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 HRD-HRAD 14. Upon receipt of the Appraisal Forms, convene Performance Review Board. 15. After the Bankwide Performance Review, update the individual Part III-Summary Sheet (with the PRB final rating) and send back to the concerned Group Head. Group Head/Region Head/Area Head/Division Head 16. Upon receipt of the Forms from HRAD, forward to the respective Line Managers for discussion with their Officers. Line Manager/Rater 17. Discuss the result of the rating with the Ratee Ratee 18. Accept and acknowledge the rating. Rater/Ratee 19. Once agreed, sign-off Officer’s Appraisal Form. 20. Send signed Summary Sheet to HRD-HRAD and safekeep one copy for file. HRAD Staff 21. Receive signed form and attach to the Part I and II and file for 201. E. Enrollment to Performance Improvement Program Note: This shall be conducted after the Announcement of the PRB Performance Ranking for the Annual Rating or after the finalization of the rating for newly hired/transferred employees Line Manager/Rater 1. Discuss Performance Improvement Program with the Officer concerned. Ratee 2. Understand the objective/purpose of the program and commit full cooperation. Rater/Ratee 3. Discuss and formulate action plans/development plans to be undertaken.
- 19. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 1 19 9 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Ratee 4. Agree on the set action/development plans and review the undertaking. 5. Sign-off Undertaking (See Exhibit 5). 6. Send documents to the following: HRD-HRAD – for 201 file HRD-OEDD – for monitoring purposes HRD-ERD – for their information F. Performance Evaluation for Officers under PIP 1. Open the file accomplished during the KRA Setting at the start of the year. 2. Review KRAs encoded and validate. For any changes, revise and edit. (Refer to Annex A for the complete step by step procedures). 3. Once done reviewing/revising the form, encode accomplishments per KRA ((Refer to Annex A for the complete step by step procedures). 4. Submit file to the Line Manager. Line Manager/Rater 5. Review and validate KRAs and accomplishments encoded by the Ratee. 6. Discuss with the Ratee factors that may have affected performance of the Ratee. 7. After the discussion, encode comments and corrections, if any and accomplish the Behavioral Dimension Sheet. (Refer to Annex A for the complete step by step procedures). 8. Print and forward the accomplished Officer’s Performance Appraisal Form and Summary Sheet to the Group Head/Region Head/Area Head/Division Head for approval. Group Head/Region Head/Area Head/Division Head 9. Review and calibrate the recommended ratings of Officers within the group. 10. If acceptable, affix signature then forward final rating of Officer to respective Rater. 11. Perform the following according to the result of the rating: a. If the result of the rating is “Acceptable” and above: Cycle Covered Action to be taken 1 st cycle of the Officer in the Program (6-month period) 1. Monitor performance for another cycle (6-month period).
- 20. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 2 20 0 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 Cycle Covered Action to be taken 2 nd cycle of the Officer in the program (6-month period) 1. Submit recommendation for Ratee to be taken out of the Program. 2. Request approval from the Group Head on the recommended action. 3. Discuss the rating with the Ratee. 4. Send the signed form to the ff: HRD-HRAD for 201 file HRD-OEDD for monitoring purposes. HRD-ERD for monitoring purposes. b. If the result of the rating is “Needs Improvement”: Frequency with “Needs Improvement” rating Action to be taken 1 st cycle of the Officer in the Program (2 nd time to receive)* 1. Monitor performance for another quarter (6- month period). 2 nd cycle of the Officer in the Program (3 rd time to receive)* 1. Coordinate with HRD-ERD 2 nd cycle of the Officer in the Program (2 nd time to receive)* 1. Monitor performance for another quarter (6- month period). 3 rd cycle of the Officer in the Program (3 rd time to receive)* 1. Coordinate with HRD-ERD *From the Annual Rating period prior to inclusion to PIP G. Formulation of Key Results Area for Newly Hired/Transferred Officers Line Manager/Rater/Ratee 1. Within first week upon hiring of the new Officer, accomplish Officer’s KRA Setting Form (Refer to Annex A for the complete step by step procedures). 2. Submit KRA Setting Form (See Exhibit 1) for review and approval to the Group Head/Area Head/ Region Head/ Division Head . Group Head/Region Head/Area Head/Division Head 3. Review and approve KRA Setting Form of individual Officers. Rater/Ratee 4. Sign-off KRA.
- 21. H HU UM MA AN N R RE ES SO OU UR RC CE E P PO OL LI IC CI IE ES SA AN ND D P PR RO OC CE ED DU UR RE ES S M MA AN NU UA AL L S SU UB BJ JE EC CT T: : P PE ER RF FO OR RM MA AN NC CE E M MA AN NA AG GE EM ME EN NT T S SY YS ST TE EM M P Po ol li ic cy y N No o: : 2 20 01 14 4- -0 00 02 2 P Pa ag ge e 2 21 1 o of f 2 21 1 E Ef ff fe ec ct ti iv vi it ty y D Da at te e: : J Ja an nu ua ar ry y 1 1, , 2 20 01 14 4 A Ap pp pr ro ov va al l D Da at te e: : A Ap pr ri il l 2 2, , 2 20 01 14 4 5. Request approval/signature of the Group Head. Line Manager/Rater 6. Once approved, send form to HRD-HRAD for 201 file H. Performance Evaluation for Newly Hired/Transferred Officers 1. Open the file accomplished during the KRA Setting. 2. Review KRAs encoded and validate. For any changes, revise and edit. (Refer to Annex A for the complete step by step procedures). 3. Once done reviewing/revising the form, encode accomplishments per KRA ((Refer to Annex A for the complete step by step procedures). 4. Submit file to the Line Manager. Line Manager/Rater 5. Review and validate KRAs and accomplishments encoded by the Ratee. 6. Discuss with the Ratee factors that may have affected performance of the Ratee. 7. After the discussion, encode comments and corrections, if any and accomplish the Behavioral Dimension Sheet. (Refer to Annex A for the complete step by step procedures). 8. Print and forward the accomplished Officer’s Performance Appraisal Form and Summary Sheet to the Group Head/Region Head/Area Head/Division Head for approval. Group Head/Region Head/Area Head/Division Head 9. Review and calibrate the recommended ratings of Officers within the group. 10. If acceptable, affix signature then forward final rating of Officer to respective Rater. Line Manager/Rater 11. Perform the following according to the result of the rating: a. If the result of the rating is “Acceptable” and above: i. Finalize the rating and sign off the Appraisal Form. ii. Submit signed Appraisal Form to HRD-HRAD for 201 file. b. If the result of the rating is Needs Improvement: i. Assess and discuss next action with the Group Head.