RMO No. 12-2023 — Prescribes the Enhanced BIR Strategic Performance Management System Digest | Full Text | Annex A | Annex B | Annex C | Annex D | Annex E | Annex F

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"MAR 1'B" 2073 ReVeNue MeMoraNduM oRder no. J2- 2023

TO :All Revenue Officials and Employees

SUBJECT ENHANCED BIR STRATEGIC PERFORMANCE MANAGEMENT SYSTEM (ENHANCED BIR SPMS)

1. BACKGROUND

employee perfomance are often not established. appraisals which are pre-requisites for promotion and other personnel actions including separation and performance-based incentives. The link between appraisals and personnel action and incentives, and Systems in the government service through the years. These systems, however, focus only on individual the lack of parallel system to enable validation/comparison between organizational effectiveness and The Civil Service Commission (CSC) has implemented several performance evaluation/appraisaf

scientific and verifiable basis in assessing organizational performance and the collective performance it has set itseif in its strategic plan. System (SPMS), institutionalizes the adoption of an Agency SPMS in all government offices. The Agency operations of the units. It shall focus on measures of performance results that are reviewable over the of individuats within the organization. It is a mechanism that ensures that the employee achieves the objective set by the organization and the organization, on the other hand, achieves the obiectives that SPMS shall give emphasis to the strategic alignment of the agency's thrusts with the day-to-day period of the implementation of the agency's Road Map vis-a-vis targeted milestones and provides a Guidelines in the Establishment and implementation of Agency Strategic Perfomance Management To address the gaps, the CSC, through CSC Memorandum Circular No. 6, s. 2012, Subject:

II OBJECTIVES

This Order is issued to:

Concretize the linkage of organizational perfomance with the Philippine-Development Plan, the Agency Strategic Plan, and the Organizational Performance Indicator Framework;

Ensure organizationai effectiveness and improvement of individual employee efficiency by establishment of rational and factual basis for performance targets and measures; and cascading institutional accountabilities to the various levels ofthe organization anchored on the

3. Link performance management with other HR systems and ensure adherence to the principle of performance-based tenure and incentive system.

H. BASIC ELEMENTS BUREAU OF INTERNAL REVENUE EN UG 3:05 P.M MAR 30 2023 1 The BiR SPMS shall include the following basic elements: RECORDS MGT. DIVISION

Goal Aligned to Agency Mandate and Organizational Priorities. Performance goals and measurement are aligned to the national devetopment plans, agency mandate/vision/mission and strategic priorities and/or organizational performance indicator framework. Standards are pre- determined to ensure efficient use and management of inputs and work processes. These standards are integrated into the success indicators as organizational objectives are cascaded down to operational ilevei.

Outputs/Outcomes-based. The system puts premium on major final outputs that contribute to the realization of organizational mandate, mission/vision, strategic priorities, outputs, and outcomes.

3 Team-approach to performance management. Accountabilities and individual roles in the achievement of organizational goals are clearly defined to give way to collective goal setting and perfomance rating. individual's work plan or commitment and rating fom is linked to the divisioin/unit/office work plan or commitment and rating form to establish clear linkage between organizational performance and personnei performance.

4 User-friendiy. The forms used for both the organizational and individual performance are similar and harmonization of organizational and individual performance ratings. and easy to accomplish. The organizational and individual major final outputs and success indicators are aligned to facilitate cascading of organizational goals to the individual staff members

5 Information System that supports Monitoring and Evatuation. Monitoring and Evaluation (M&E) ensure generation of timely, accurate, and reliable information for both performance mechanisms and Information System are vital component of the BIR SPMS in order to facilitate linkage between organizational and employee performance. The M&E and Information System will monitoring/tracking, accomplishment reporting, program improvement and policy decision- making.

6. Communication Plan. A program to orient agency officials and employees on the new and revised

system, generate employees' appreciation for the BIR SPMS as a management tool for their role as partners of management and co-employees in meeting organizational performance goals. policies on BIR SPMS shall be implemented. This is to promote awareness and interest on the performance planning, control and improvement, and guarantee employees' internalization'of

IV. POLICIES

The BIR Strategic Performance Management System (BIR SPMS) aims to strengthen the culture of performance and accountability in the BIR.

2 The BIR SPMS shall adhere to the Equal Opportunity Principie (EOP) of performance-based tenure

disabilities, religion and I or indigenous group membership in the implementation of its and incentive system, and shall not discriminate based on gender identity, 'sexual orientation, performance managernent process.

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The BIR SPMS shall focus on linking individual performance vis-a-vis the agency's organizational vision, mission and strategic goals. It is envisioned as a technology composed of strategies. methods and tools for ensuring fuifitlment of the functions of the offices and its personnel as well as for assessing the accomplishments.

4 It shall foliow the four-stage Performance Management System (PMS) cycle: performance planning performance rewarding and development planning. and commitment, performance monitoring and coaching, performance review and evaluation,

Performance goais and measurement are aligned to the national development plans, agency mandate/vision/mission and strategic priorities and/or organizational performance indicator framework.

6. The system puts premium on major final outputs that contributes to the realization of Accountabilities and individual roles in the achievement of organizational goals are clearly defined to give way to collective goal setting and performance rating. Individual's work plan or organizational mandate, mission/vision, strategic priorities, outputs and outcomes.

commitment and rating form is linked to the division/unit/office work plan or commitment and rating form to establish clear linkage between organizational performance.

T. The BIR SPMS shall establish the formation and operation of the BIR Performance Management

Team (BiR PMT) in the National and Regional Offices.

Ko The BIR PMT shall validate the outstanding performance ratings and may recommend concerned

employees for performance-based awards. Grant of performance-based incentives shall be based on the final ratings of employees as approved by the Head of office.

9. Performance ratings shail be used as basis for promotion, training and scholarship grants, and other

personnel actions.

above-mentioned personnel actions and other related matters. Employees with Outstanding and Very Satisfactory performance ratings shall be considered for the

1o. Officials and employees who shall be on official travel, approved training grant or scholarship programs and who have already met the required minimum rating period of go days shall submit the performance commitment and rating report before they leave the office.

ratings in the last rating period prior to the official travel, scholarship program or training grant, which should be at Ieast Very Satisfactory. travel, scholarship program or training grant within a rating period, shall use their performance For the purposes of promotion and performance-based incentives, employees who are on official

11. Employees who are on detail or secondment to another office/project on a full-time basis shall be in the office where the employees have spent majority of their time during the rating period. were detailed or seconded to another office/project during the rating period shall be consolidated rated in their present or actual office by their project supervisors, copy furnished their mother Commissioner who directly oversees the implementation of the project. The ratings of those who office. Project supervisors, on the other hand, shall be rated by the Deputy Commissioner/Assistant

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12. Employees who transferred from one division/office to another division/office shall be rated and

included in the Annex I of the division/office where they served the longest.

Ifegual monthswere served for each division/office, they shall be rated on both divisions/offices which will result in an averaged IPCR rating. They shall be included in the Annex I of the recipient division/office.

Annex I of the office concerned. All employees assigned in the office as of the last day of the rating period shall be included in the

13. Employees who will retire but met the required minimum rating period shall submit their accomplished performance ratings within the prescribed period to be entitled to payment of

performance-based incentives.

14. Security of tenure of those holding permanent appointments is not absolute, but based on

performance.

Resource Management Division (AHRMD), to address competency-related performance gaps. (Division/Section Chief), in coordination with the Personnel Division (PD)/ Administrative Human Employees who obtained Unsatisfactory rating for one rating period or exhibit poor performance shall be provided appropriate developmental intervention by the Head of Office and supervisor

end of the rating period is required. If after advice and provision of developmental intervention, the employee still obtains an from the rofls. A written notice/advice from the Head of Office at least three (3) months before the Unsatisfactory rating in the immediately succeeding rating period, said employee may be dropped

15. Officials and employees with below Satisfactory rating either on the ist semester or 2nd semester or both shall not be entitled to receive performance-based incentives. No performance-based

incentives shall be given to employees who failed to submit their final performance ratings.

V. KEY PLAYERS AND RESPONSIBILITIES

of the BiR SPMS, and shall have the following responsibilities: The following officials/offices shall be the key players in the establishment and implementatior

t.SPMS CHAMPION (Commissioner of internalt Revenue)

a. h Primarily responsible and accountable for the establishment and implementation of the BIR SPMS; Sets agency performance goals/ objectives and performance measures;

e Assesses performance of offices; Determines agency target setting period; Approves office performance commitment and rating;

+ Provides over-all policy direction in the management, implementation, assessment and

g. Provides guidance and support to the National and Regional PMTs in resolving Performance enhancement of the BIR SPMS;

I Ensures that the goals and targets of the BiR SPMS are aligned with the BIR's Strategy Road Map. Management issues and conflicts;

Acts as appeals body and final arbiter for performance management issues of the agency Mission, Vision, and Core Values; and

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2. PERFORMANCE MANAGEMENT TEAM (PMT)

2.1. MANAGEMENT COMMITTEE

Chairperson: Deputy Commissioner for Resource Management Group (DCIR-RMG) Deputy Commissioner for Information Systems Group (DCIR-ISG

Deputy Commissioner for Legal Group (DCIR-LG) Deputy Commissioner for Operations Group (DC!R-OG)

Members: Assistant Commissioner, Planning and Management Service (ACIR-PMS) Assistant Commissioner, Human Resource Development.Service (ACIR-HRDS) Assistant Commissioner, Finance Service (AC!R-FS) Aiternate: Head Revenue Executive Assistant, HRDS (HREA-HRDS) AIternate: Head Revenue Executive Assistant, PMS (HREA-PMS) Alternate: Head Revenue Executive Assistant, (HREA-FS)

Representative from the Office of the Commissioner (OCIR)

of an accredited union or designated by the registered union (one from the first levet and one from the second level). They shall attend and participate in the meetings set by the Management Committee PMT. Serve for a period of two years and chosen through a General Election, in the absence Two (2) representatives from the career rank-and-file employees, who shall

of absence of the career rank-and-file representative/s in carrying out the stated responsibilities to the Management Committee PMT. of votes in the General Election or in the presence of a registered union, the said union shail be responsible in the delegation af authority to alternate representative/s in case Alternate: Candidate from each level who garnered the second highest number

Secretariat:Planning and Programming Division (PPD) Personnel Division (PD) For PMS, HRDS & FS where the Assistant Commissioners of the service are part of the Management Committee PMT, the HREAs of the corresponding services shall stand as the Chairperson of the Service PMT. - The Office of the Commissioner, the Offices of the Deputy Commissioners and the Performance Evaluation Division shall be directly under the Management Committee PMT. 2.2. National Office (Service PMT)

Chairperson : Assistant Commissioner of the Service

Alternate: Head Revenue Executive Assistant of the Service Members : Division Chiefs (under the Service)

Alternate: Assistant Division Chiefs (under the Service)

Two (2) representatives from the career rank-and-file employees of the Service concerned, who shall serve for a period of two years and chosen through a General Election, in the absence of an accredited union or designated by the registered union (one from the first level and one from the second Jevel). They shall attend and participate in the deliberations set by the Service PMT.

responsibilities to the Service PMT. votes in the General Election or in the presence of a registered union, the said union shall be responsible in the delegation of authority to alternate representative/s in case of absence of the career rank-and-file representative/s in carrying out the stated Alternate: Candidate from each level who garnered the second highest number of

The designated staff under the service concermed shall serve as the Secretariat.

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Chairperson : Regional Director Members : Chief, Legal Division Alternate: Assistant Division Chief, Legal Division Alternate: Assistant Regional Director RECORDS MGt. DiVISiON 0UG

Chief, Finance Division Chief, Administrative & Human Resource Management Division (AHRMD) Alternate: Assistant Division Chief, Finance Division

AIternate: Assistant Division Chief, AHRMD Planning Officer assigned under the Office of the Regional Director

Two (2) representatives from the career rank-and-file employees of the Region concerned, who shall serve for a period of two years either chosen through a General

from the first level and one from the second level. They shall attend and participate in the deliberations set by the Regional PMT. Election (in the absence of an accredited union)or designated by the registered union;, one

shall be responsible in the delegation of authority to alternate representative/s in case Alternate: Candidate from each ievel who garnered the second highest number of votes in the General Election or in the presence of a registered union, the said union

responsibilities to the Regional PMT. of absence of the career rank-and-file representative/s in carrying out the stated

The Human Resource Management Section (HRMS) of the AHRMD of the concerned Regional Office shall Serve as the Secretariat.

3. ROLES AND RESPONSIBILITIES

The PMT shall have the following functions and responsibilities: Chairpersoris: D Assist the SPMS Champion in the implementation, monitoring and assessment of effectiveness of

the BIR SPMS; b. Set consultation meeting of all Heads of Offices for the purpose of discussing the targets set in the

d E Lead the calibration, review and evaluation of Office Commitments; Recommend approval of the office's performance commitment and rating to the Commissioner; Provide inputs in resolving Performance Management issues and conflicts; Ensure that Office performance targets and measures, as well as the budget are aligned with those of the agency and other work distribution of offices/units is rationalized; office performance commitment and rating form;

E. h Lead and set meetings on the System Review of BIR SPMS effectiveness; Act as appeals body and decide on filed appeals within one month from receipt;

' Identify potential top performers and provide inputs to the BiR Enhanced Prograrns on Awards and

m Y Adopt its own internal rules, procedures, and strategies in carrying out the above responsibilities Recommend.policies, systems, plans, program enhancement for implementation; Perform all other functions as may be assigned by the SPMS Champion; an Formulate customized criteria, guidelines, and tools for setting performance standards; Incentives for Service Excellence (PRAISE) Committee for grant of awards and incentives;

including schedule of meetings and deliberations and delegation of authority to representatives ir case of their absence or its members.

Members: a Assist the Chairperson and Co-Chairpersons in ensuring that office perfomance targets and measures, as well as the budget are aligned with those of agency and that other work distribution

b. Assist the Chairperson and Co-Chairpersons in resolving filed appeals relative to of Offices/units is rationalized;

C Act as appeals body and decide on filed appeals within one month from receipt: Identify potential top performers and provide inputs to the BIR Enhanced PRAISE Committee for performance management;

grant of awards and incentives; 8 Recommend policies, systems, plans, program enhancement for implementation; f Formulate customized criteria, guidelines, and tools for setting performance standards;

B Perform all other functions as may be assigned; and h including schedule of meetings and deliberations and delegation of authority to representatives in Adopt its own internal rutes, procedures, and strategies in carrying out the above responsibilities .case of absence.

Secretariat:

a b. Gathers and consolidates all necessary evidences/supporting documents for Performance Performs secretarial duties for the Performance Management Team;

C. Ensures the completeness and proper safekeeping of all documentation; Prepares all internal communications regarding the Performance Management System for the Management; Committee; and

Performs all other functions as may be assigned.

during their meetings and other activities. relevant information on the establishment and implementation of the BIR SPMS. All officials and employees concerned are enjoined to make the necessary arrangements to ensure normal operations of their offices The Performance Management Team may call on otherrevenue personnel to provide assistance and

4. : PLANNING AND MANAGEMENT SERVICE (PMS)/ PLANNING AND PROGRAMMING DIVISION (PPD) 2. D Monitors submission of Office Performance Comimitment and Review (OPCR) forms and schedules the review/evaluation of Office Commitments by the PMT before the start of a performance period. Consolidates, reviews, validates, and evaluates the initial performance assessment of the Heads of

d. Provides each Office with the final Office Assessment to serve as basis of offices in the assessment Conducts an agency performance' pianning and review conference annually for the purpose of discussing the office assessment for the preceding performance periods and plans for the assessment shall be the basis of PMT's recommendation to the Commissioner who shall determine the final office rating. succeeding rating period with the concerned Heads of Offices. of individual staff members. Offices based on reported Office accomplishments against the Success Indicators. The resuit of the

5. FINANCE SERVICE/BUDGET DIVISION

a Participates in the conduct of the Agency Performance Planning and Review Conference annually

b Monitors, reviews, validates, and evaluates the initial performance assessment of the Heads of Offices based on allotted budget against the actual expenses. Provides inputs for the allotted budget to be indicated in the OPCR form. as regards to budget utilization.

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6. HUMAn RESOURCE DEVELOPMENT SErVICE (HRDS)/ PERSONNEL dIViSION (Pd)/ ADMINISTrAtiVE

HUMAN RESOURCE MANAGEMENT DIVISION (AHRMD) a. Monitors submission of Individual Performance Commitment and Review (IPCR) form by Heads of

b. Reviews the Summary List of Individual Performance Rating to ensure that the average performance rating of employees is equivalent to or not higher than the Office Performance Rating as Offices/Division Chiefs.

c. Provides analytical data on retention, skills/competency gaps, and talent development plans that are d. Coordinates developmental interventions that will form part of the HR Plan. recommended by the PMT and approved by the Commissioner. aligred with strategic plans.

I INFORMATION SYSTEMS PROJECT MANAGEMENT SERVICE (ISPMS)/ ADMINISTRATIVE SYSTEMS a. Assists the PPD/PD in developing a monitoring and evaluation information system that facilitates DIVISION (ASD) linkage between organizational and employee performance, as well as generate timely, accurate, and

b. Provides technical assistance in the use, maintenance, and upgrading of the BIR SPMS information reliable information to track performance and report accomplishments System. 8.HEADS OF OFFICES (Assistant Commissioners/ Regional Directors) b. Conducts strategic planning session with the supervisors/raters and staff, and agrees on the outputs c. Reviews and approves the Individual Performance Commitment and Review form of Division a. Assumes primary responsibility for performance management in their Office Chiefs/Revenue District Officers under his/her jurisdiction for submission to the PD/AHRMD. to be specified in the OPCR form for submission to the Planning and Programming Division.

d. Submits Quarterly Accomplishment Report to the PPD based on the approved OPCR. e. Does initial assessment of the Office's perfomarice using the approved OPCR Form to be submitted to PPD on the prescribed date. 9. DIVISION CHIEF/ REVENUE DISTRICT OFFICER (RDO) f. Informs employees of the final rating and identifies necessary interventions to ernployees based on a. Assumes joint responsibility with the Head of Office in ensuring attainment of performance objectives b. Rationalizes distribution of targets/tasks. e. Recommends employees for rewards and recognition and/or developmental intervention through c. Monitors closely the status of the performance of their subordinates and provides support and d. Reviews and approves final assessment of performance levels of the individual employees in his/her individual employee. the results of the employees' IDP and competency assessments. the assessment of developmental needs. office based on proof of performance for submission to PD/AHRMD. assistance through the conduct of coaching for the attainment of targets set by the Division/Unit and and targets - Recommends and discusses a development plan with subordinates who obtain Unsatisfactory shall warrant their separation from the service. and prepares written notice/advice to subordinates that a succeeding Unsatisfactory performance performance during the rating period not later than one (r) month after the end of the said period

Provides preliminary rating to subordinates showing Poor performance not earlier than the third and issues a written notice that failure to improve their performance shall warrant their separation (3rd) month of the rating period. Discusses a development plan with the concerned subordinate from the service.

10. INDIVIDUALEMPLOYEES

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V GUIDELINES

The BIR SPMS shall follow the four-stage PMS cycie that underscores the importance of performance management. 1. Performance Planning and Commitment

This is done before the start of the performance period where Heads of offices meet with the supervisors and staff and agree on the outputs that should be accomplished based on the goals/objectives of the organization.

During this stage, success indicators are determined. Success indicators are performance level yardstick consisting of performance measure and performance targets. This shall serve as bases in the office and individual employee's preparation of their performance contract and rating form.

Success Indicators form (Annex C). Performance measures need not be many: Only those that consideration changes and policy directions that affects the Agency's performance targets. The identified performance measures and performance targets shall be documented in the Index of contribute or support the outcomes that the Agency aims to achieve shall be included in the office performance contract, i.e., measures that are relevant to Agency's core functions and strategic priorities. The performance measures must be continuously refined and reviewed, taking into

Performance measures shall include any one, combination of, or all of the following general categories, whichever is applicable:

Category Definition Effectiveness Qua{ity (Q) The extent to which actual performance compares with targeted performance. - The degree to which objectives are achieved and the extent to which targeted probiems/issues are solved/ addressed with a certain degree of exceilence.

In management, effectiveness relates to getting the right things done. It may involve the following elements such as acceptability, meeting standards, comprehensiveness of reports, creativity or innovation and personal initiative. client satisfaction with services rendered, accuracy, completeness or

Efficiency I Quantity (E) The extent to which time or resources is used for the intended task or purpose. Measures whether targets are accomplished with a minimum amount or

guantity of waste, expenses, or unnecessary effort. It may involve the foilowing elerments such as standard response time, number of requests/applications acted upon over number of requests/ applications received or action on assigned tasks or optimum use of resources. Timeliness (T) : Measures whether the deliverable was done on time based on the requirements of the law and/or clients/stakeholders.

Time-related performance indicators evaluate such things as project completion deadlines, time management skills and other time-sensitive expectations.

The Commissioner of Internal Revenue (Commissioner) shall cause the determination of the "agency by the raters and the ratees, reviewed and concurred by the head of the department or office and submitted to the PMT. target setting period", a period within which the office and employees' targets are Set and discussed

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The Agency Road Map, Agency Strategic Plan, Annual Investment Plan, etc. shall be the basis of the targets of the Offices. Aside from the Office commitments explicitly identified under each Strategic Priority in the Road Map, Major Final Outputs (MFO)2 that contribute to the attainment of organizational mission/vision which form part of the Core Functions3 of the office shall be indicated as performance'targets. It may also include functions that do not directly deliver goods and services to external clients but still contribute to the delivery of the agency's MFOs through Support to Operations (sTO)4 or Generai Administration and Support (GAS)5 activities.

The targets shall take into account any combination of, or all of the following:

Historical data. The data shall consider past performance. Benchmarking. This involves identifying and comparing the best agencies or institutions or units within the agency with similar functions or processes. Benchmarking may also involve recognizing existing standards based on provisions or requirements.of the law. Client demand. This involves a bottom-up approach where the Office sets targets based on the needs of its clients. The Office may consult with stakeholders and review the feedback on its services. OPES Reference Table -- list of major final outputs with definition and corresponding OPES points. Top Management Instruction. The Commissioner may set targets and give special assignments Future trends. Targets may be based from the results of the comparative analysis of the actual performarce of the Office with its potential performance.

In setting work targets, the Office shall likewise indicate the detailed budget requirements per expense account to help the Commissioner in ensuring a strategy driven budget allocation and in measuring cost and Review(OPCR) Form(Annex A).7 efficiency. The Office shall also identify specific division/unit/group/individuals as primarily accountable for producing a particular target output per program/project/activity. These targets, performance measures, budget and responsibility centers are summarized in the office Performance Commitment

The approved OPCR Form shall serve as basis in the individual performance targets and measures to be prepared in the individual Performance Commitment and Review (IPCR) form (Annex B).

shall not be Iower than the agency's standards in its approved OPCR Form. Unless the work output of a particular duty has been assigned pre-set standards by management, its standards shall be agreed upon by the supervisors and the ratees. Individual employees' performance

2. Performance Monitoring and Coaching

individual shall be monitored at various levels: i.e., the Commissioner, PMS/PPD, Head of Office, Division Head and individual, on a regular basis. During the performance monitoring and coaching phase, the performance of the Offices and every

5 GAS refer to activities that deal with the provision of overall administrative management suppart to the entire agency Operation (Guidebook on the Strategic Performance Management System). SOPES points refers to the time within which an output wil be produced by an average performer. 7 This shall be used for Office Performance Contracts of Groups, Services, Divisions, Revenue District Offices and other office urits that may be identified. 2MFOs are goods and services that a department/agency is mandated to deliver to external clients through the implementation of the Strategic Performance Management System). programs, activities and projects (per DBM published Organizational Indicator Framework (OPIF) Book of outputs for 201). 3 Core functions are these performed by the Office which are inherent in its mandates. 4 5TOs refer to activities that provide technical and substantive support to operations and projects of the agency (Guidebook on BUREATOF INTERNAL WOUENLE NETYYN MAR 30 ZBZ3 3:05 pm 10

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Supervisors and coaches p!ay a critical role at this stage. Their focus is on the critical function of managers and supervisors as coaches and mentors in order to provide an enabling environment/intervention to improve team performance and manage and deveiop individual potentials.

Monitoring and evaluation mechanisms should be in place to ensure that timely and appropriate steps can be taken to keep a program on track and that its objectives or goals are met in the most effective manner

support data management to produce timely, accurate and reliable information for program tracking and (Annex D, E, and F). Also, a very vital tool of management at this stage is an information system that will performance-monitoring/reporting.

3. Performance Review and Evaluation (Office Performance and individual Employee's Performance)

targets and measures as approved in the Office and individual performance commitment contracts. This phase aims to assess both Offices and individual employee's performance level based on performance

verifiable basis for target setting and evaluation. The results of assessment of office and individual performance shall be impartial owing to scientific and

A. Office Performance Assessment The PMS/PPD shall consolidate, review, validate and evaluate the initial performance assessment of the Heads of offices based on reported office's accomplishments against the succ ass indicators. The result oi

The Commissioner shall determine the final rating of offices/units. the assessment shall be submitted to the PMT for calibration and recommendation to the Commissioner.

An agency performance review conference shall be conducted annually by the PMS/PPD for the purpose Finance Service/ Budget Division as regards budget utilization. To ensure complete and comprehensive performance review, all Offices shall submit a quarterly accomplishment report to the PPD using the prescribed format (Annex G) based on the SPMS calendar (Annex H) of discussing the Office assessment with concemed Heads of Offices. This shall include participation of the

and decided by the Commissioner during this conference, hence the final rating-shall no longer be appealable/contestable after the conference. Any issue/appeal/protest on the Office assessment shall be articulated by the concerned Head of Office

The PMS/PPD shall provide each Office with the final Office Assessment to serve as basis of offices in the assessment of individual staff members.

B. Performance Assessment for Individual Empioyees

at the beginning of the rating period. The performance rating shall be based solely on'records of accomplishment; herice, there is no need for seif-rating. The irmmediate supervisor shall assess individual employee performance based on the commitments made

Hence, rating for planned and/or intervening tasks shall always be supported by reports, documents or any output as proof of actual perfomance. In the absence of said bases of proofs, a particular task shall not be rated and shall be disregarded. The supervisor shall indicate qualitative comments, observations and The BIR SPMS puts premium on major final outputs towards realization of organizational mission/vision.

which shall be used for human resource development purposes such as promotion and other interventions. recorimendations in the employee's IPcR form including cormpetency assessment? and critical incidents1

8 The timetable for the preparation, review and approval of performance targets, standards, and ratings. 9 Competencies are observable, measurable and vital behaviorai skils, knowledge and personal attributes that are transiations or organizational 1o Record of events, happenings or actual information affecting the overall acco Capabilities deemed essential for success. Competency shall be identified for a particular position or job family. RECOK1AA>J.D{VjSION CDS u} O 4m V FTUL Tplishments of the employee during the particular rating period. 11

Empioyee's assessment shall be discussed by the supervisor with the concerned ratee prior to the submission of the employee's IPCR fom to the Head of Office/Division Chief/RDO. The Head of Office/Division Chief/RDO shall determine the final assessment of performance level of the individual employees in his/her Office based on proof of performance. The final assessment shall correspond to the adjectival description of Outstanding, Very Satisfactory, Satisfactory, Unsatisfactory or Poor.

The Head of Office/Division Chief/RDo may adopt appropriate mechanisms ta assist him/her distinguish performance level of individuals, such as but not limited to peer ranking and client feedback The average of all individual performance assessment shall not go higher than the collective performance assessment of the Office. The Head of Office/Division Chief/RDO shall ensure that the employee is notified of his/her final performance assessment. The Summary List of Individual Ratings (Annex I) with the attached IPCRs are submitted to the PD/AHRMD within the prescribed period. Head of Office/Division Chief/RDO shall maintain copies of the final IPCRs of employees under his/her jurisdiction for monitoring and reference purposes.

At the end of every evaluation period (June and December), on the prescribed date based on SPMS

Scanned and soft copies, for the Personnel Division, one copy for the office concerned, and one copy for the Employee, using the B!R SPMS Mechanics on Rating Individual Performance. calendar, the employee's IPCR Forms shall be accomplished in triplicate: one copy, together with the

4. Performance Rewarding and Development Planning

Part of the individual employee's evaluation is the competency assessment vis-a-vis the competency requirements of the job. The result of the Competency Assessment and Development Pian (Annex J) will be used to craft the Individual Development Plan (Annex K) which must be outlined and monitored to measure progress and shall be discussed by the Head of Office/Division Chief/RDO and supervisors with the individual employee at the end of each rating period. The discussion shall focus on the strengths, competency-related performance gaps and opportunities to address these gaps, career paths and alternatives. The result of the competency assessment shall be treated

shall be made available by the Head of Office and supervisors in coordination with the PD/AHRMD independently of the performance rating of the employee. Appropriate development interventions

using ANNEX L or the Summary List of Individual Development Pian.

The result of the performance evaluation/assessment shall serve as inputs to the:

b. PD/AHRMD in consolidating and coordinating developmental interventions that will form part of a. Head of Office/Division Chief/RDO in identifying and providing the kinds of interventions needed the HR Plan and the basis for rewards and incentives; based on the developmental needs identified;

d. BiR PRAISE Committee in determining top performers of the agency who will qualify for awards c. BIR PMT in identifying potential PRAISE Awards nominees for various awards categories; and and incentives.

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5. Rating Period Performance evaluation shall be done semi-annually. Rating Period of the SPMS shail be done every RECORDS MGT. DIVISION Um

six (6) months ending on June 3o and December 31 of every year. In cases of a shorter or longer period, however, the minimum appraisal period is at least three (go) days while the maximum shall not be longer than one (1) calendar year.

The three dimensions of performance or accomplishments are'efficiency, quality, and timeliness. 1.) Quantity or Efficiency (Q) means the extent to which targets are accomplished using the minimum

refers to the degree to which objectives are achieved as intended and the extent to which issues amount of time or resources. 2.) Quality or Effectiveness (E) means getting the right things done. It

are addressed with a certain degree of excellence. 3.) Timeliness (T) measures if the targeted deliverables were done within the scheduled or expected timeline.

VII. BIR SPMS RATING SCALE

Various rating scales may be used for specific sets of measures. However, in general, there shall be five-point rating scale ( to 5), 5 being the highest and 1, the lowest.

1. DETAILED DESCRIPTION ON THE RANGES OF THE RATING SCALE FOR MAJOR FINAL OUTPUTS FOR GENERAL FUNCTIONS

The following shall be the detailed descriptions for the ratings for general functions:

RATING DESCRIPTIONS

Numerical 2 3 '5 4 UNSATISFACTORY SATISFACTORY SATISFACTORY OUTSTANDING Adjectival VERY errors. Output delivered, with more than five (s) needed. Heip/assistance from well organized; with one (1) or two (2) minor Tesults still very good. deficiencies; partiat/minor revision needed. supervisorsfpeers reguired to overcome Covered. All goals objectives and targets were achieved above the established standards. prescribed guidelines, clearly presented and errors in the execution of work assignment; Performance met expectations and in accordance with instructions. Output delivered within prescribed guidelines, with three (3) to five (5) minor errors or errors or deficiencies; Major revision is Performance was exceptional in terms of quatity, technical skills, creativity, and initiative, showing mastery of the task. All aspects of work assignment thoroughly Accomplishments were made in more than expected. Output delivered in accordance with Quality (Q) / Effectiveness aspects of the target. Performance only met 51% to 99% of the planned targets. Performance targets. Performance met planned targets. planned targets and failed to deliver one or more critical Exceeded expectalions by 15% to 29% of the planned 100% to 114% of the Performance expectations by 30% Exceeded and above of the Efficiency (E)/ Quantity the deadline. completed at the finish it. deadline. time required ta accomplished on Task partially Task Task accomplished Task accomplished finish it. within 2/3 of the within 1/2 of the time required to Timeliness (T)

N POOR Performance was consistently below Performance fajled to Task not yet

toward critical goais was not made. Qutput not acceptable; haphazard or careless execution of work; needs total'revision. expectations, and/or reasonable progress below. targets by 50% ard deliver mast of the expected date of begun at completion..

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2 RATING SCALE FOR MAJOR FINAL OUTPUTS WITH DEFINED / FIXED OUTPUT REQUIRING 1O0%

PERFORMANCE The rating scale to be-used for MFOs requiring 10o% performance of the target and the maximum performance level of accormplishment can no longer go beyond too%, shall be the foflowing:

RATING DESCRIPTIONS

Numerical Adjectival Quality / Effectiveness) ) Efficiency/ Quantity (E) Timeliness T)

5 4 SATISFACTORY OUTSTANDING VERY task. showing mastery of the ' Performance was All goals, objectives and exceptional in terms of "quality, technical skills, targets are achieved creativity, and initiative, 90%-99% 100% Task accomplished finish it. Task accomplished within 1/2 of the time required to

above established within 2/3 of standards; with one (1) or the time two (2) minor errors in the required. execution of work assignment; results still

BUREAUOF INTERNALREVBNUE TENYYTT 3 0 MAR 2023 3 SATISFACTORY to five (5)'minor errors or instructions, with three (3) revisions needed. very good. Performance met expectations and in accordance with deficiencies. Minor 80%-89% on the accomplished deadline. Task

3:65 pah 2 UNSATISFACTORY Output delivered, with more than five (5) errors or deficiencies. Major 70%-79% Task partially the deadline. completed on

revision is needed. Help.

1 POOR supervisors/peers required to overcome errors. assistance from Performance was 60%-69% Task not yet

consistently below expectations. begun at expected date of completion.

3. COLLECTION PERFORMANCE RATING SCALE

For officials and employees, especially for those whose performance are directly related to the attainment of coliection targets, collection performance is considered only as one variable from which

1 collection targets. Actual collection is considered equivalent with other assigned activities that are being activities/functions being performed are components of and are contributory to the attainment of they are evaiuated, among other tasks that they perform. It should be ermphasized that other

performed, whereas it should be their primary focus.

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The performance of the Deputy Commissioner -- Operations Group, Assistant Commissioners (ACiRs) . Head Revenue Executive Assistants (HREAs) under the Large Taxpayers Service (Assessment Service /Collection Service, Regional Directors, Assistant Regional Directors, Revenue District Officers (RDOs), Assistant Revenue District Officers (ARDOs) and Revenue Officers who are assigned with collection targets or goals shall be rated principally by their attainment of their assigned goals. The ratings shall be based on the following rating scale:

Numerical RATING Adjectival DESCRIPTIONS

5 OUTSTANDING Exceed the goa!

4 VERY SATISFACTORY Meets the goal or shart by not more than 1%

3 SATISFACTORY Short of goal by more than 1% but not more than 4%

2 UNSATISFACTORY Short of goal by more than 4% but not more than 7.5%

POOR Short of goal by at !east 7.5% or more"

To get a rating better than the above, the ratee/ rater should be able to cite an extra ordinary

requirements, such as, but not limited to no prescribed cases. However, a ratee may get a rating lower than the above if his performance on the other KPIs so warrant. performance or a very significant KPI other than collection. This is in addition to compliance with other

4.RATING SCALE FOR AGING OF ISSUED LETTER OF AUTHORITY (LA)

of a Revenue Officer, it states that a revenue officer assigned to perform an assessment furiction may. Based on Section 13 of the National Interna! Revenue Code (NiRC) of 1997, as amended, under Authority

pursuant to a Letter of Authority, examine taxpayers within the jurisdiction to collect the correct amount of tax, or to recommend the assessment of any deficiency tax due. Under Revenue Memorandum Order (RMO) No. 6g-201o, report of Investigation / verification of cases covered by eLAs other than VAT claims for Refund / Credit shall be submitted by the Revenue Officer within 18o days. Thus, the Revenue Officers (Assessment) should be evaluated not only on actual collection from the disposition of the LAs.

following the prescribed rating scale: Revenue Officers who are assigned with LAs shall be rated on the Aging of issued Letters of Authority.

Numerical RATING Adjectival DESCRIPTIONS

5 OUTSTANDING 120 days or less

3 2 4 1 VERY SATISFACTORY UNSATISFACTORY SATISFACTORY POOR More than 120 days but not.exceeding 240 days More than 240 days but not exceeding 479 days More than 479 days but not exceeding 719 days More than 719 days

11Based on Republic Act No. 9335 or the Attrition Act of 2005, wherein shortfall of 7.5% or more shall be rated as Poor. BUREAUOF INTERNALREVENOJE DnYTYIN 3:0r p.m MAR 30 ZUZ3 15

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S.RANGE AND ROUNDING OFF OF OVERALL POINT SCORES

In determining the final equivalent adjectival rating of the ermployee, the range of overall point scores is converted as follows:

NUMERICAL 1.00 -- 1.99 4.00 - 4.99 3.00 -3.99 2.00 - 2.99 5.00 RATING Very Satisfactory Unsatisfactory ADJECTIVAL Outstanding Satisfactory Poor

For the uniform procedures on the rounding off of computed scores, the computed numerical ratings shall use two decimal places rather than rounding off the computed score to whole numbers. And to

rounded up if Iast digit is from 5-9 while with numbers 1-4 shall all be rounded down. standardize the rating process, ratings shall be rounded off in the following manner: ratings shall be

At the end of the rating period, the Supervisor shall rate each work/activity by comparing the work targets against the actual work/activity performed. The Q, E and T standards earlier set shall be used in

work/activity done by each rater and divide by the number of entries to get the respective Average Point giving each accomplishment a numerical point rating. Add all the point scores under Q, E and T for each Scores (APS). Then add all the APS to get each respective Totai Equivalent Point Score.

VIHI. PROCEdURES

The following shall be the Raters in the implementation of the BIR SPMS in the Office level:

OFFICe RATER

Services Office of the Deputy Commissioners, PMS, PMIS, LTS and PED Chief of Staff, Office of the Respective Deputy Commissioners Commissioner

Regional Divisions/Revenue District Offices Divisions under the Service Regional Offices Respective Regional Directors Deputy Commissioner, Operations Group Assistant Commissioner]

For the Individual Jevel, the following shall be the Raters:

Staff Section Chief Ratee NATIONAL OFFICE Section Chief Asst. Div. Chief Rater Section Chief Staff Ratee REGIONAL OFFICE Asst. Div. Chief/ ARDO Section Chief Rater

CIR's & DCIR's Staff Division Chief Asst. Div. Chief Service Staff * in the ab'sence of the assigned rater, the prescribed Hierarchy of Raters shall be folfowed. HREA Division Chief ACIR Chief of Staff Division Chief/ RDO Asst. Div. Chief/ ARDO }. ORD Staff Division Chief/ RDO Asst. Reg'l Director Regional Director

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RECORDS MGT.DIVISION 1. The Deputy Commissioners/ Assistant Commissioners/ Regional Directors/ Division Chiefs}

Revenue District Officers shall: a., Prepare and submit the Index of Success Indicators (Office and Individual) to their respective

b. Develop standard performance measures, targets and rating scales for equitable evaluation of Raters (Office Level) for approval after the conduct of the annual planning session;

office and individual performance; C. Accomplish the OPCR forms for approval of their Raters at the start of the rating period; and d. Monitor the submission of the Quarterly Office Accomplishment Report to the PPD.

2. The PMS/PPD shall: a. Monitor the submission of the approved OPCR and schedule the review/evaluation of Office

b. Receive and review the following documents prepared and submitted by all offices in the Commitments by the PMT before the start of a performance period;

c. Consolidate, review, validate and evaluate the initial performance assessment of the Heads of * Office Accomplishment Report * Office Index of Success Indicators * Office Performance Commitment and Review (OPCR) forms National and Regional levels:

d. Conduct ani annual BIR Performance Review Conference for the purpose of discussing the Office e. Forward to the National Office PMT for indorsement to the Commissioner the results of the Assessment with concerned Heads of offices; and Offices/Deputy Commissioners based on the reported office accomplishments against the success indicators;

evaluation.

3. The PD/AHRMD shall:

a. Receive and review the Individual Index of Success Indicators submitted by'offices; and b. Monitor the submission of the IPCR Forms.

The following shall be the schedule of submission of required reports/documents:

ACTIVITY SUBMITTO DEADLINE OF SUBMISSION

Submission of OPCR (performance plan) PPD January 15/ July 15 Submission of OPCR (performance evaluation) PPD February 25/ August 25

Submission of Office Accomplishment Report PPD Every 1oth of the month after the quarter Submission of IPCR (perfomance plan) Head of Office January 10/ July 10

Submission of IPCR (performance plan) Pd/ahrmd January 15/ July 15

Submission of IPCR (performance evaiuation) Head of Office February 25/ August 25

Submission of IPCR (performance evaluation) and Summary List of Individual Performance Ratings* PD/ AHRMD February 28/ August 31

and scanned copies to the PD a week after the submission of the regional documents to their office. *The AHRMD shall furnish copies of signed IPCRs and Summary List of Performance Ratings in hard, soft

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IX. MECHANISM OF APPEAL RECORDS MG(.DIVISION

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 upon during the performance review conference.

2 Individual ermployees who feel aggrieved or dissatisfied with their final performance ratings

can file an appeal with the PMT within ten (ro) days from the date of'receipt of notice on their final performance evaluation rating from the Head of Office. An office/unit or individua employee, however, shall not be allowed to protest the performance ratings of other office/unit or 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

3. The PMT shall decide on the appeals within one month from receipt thereof.

4. Appeais lodged at any PMT shall follow the hierarchical jurisdiction of various PMTs in an

agency. For example, the decision of the Regional Office PMT is appealable to the National Office PMT.

5 The decision of the Nationai Office PMT may be appealed to the Commissioner. 6. Officials or employees who are separated from the service on the basis of Unsatisfactory or

days from receipt of the order or notice of separation. Poor performance rating can appeal their separation to the CSC or its regional office within 15

X. SANCTIONS

1. Uniess justified and accepted by the PMT, non-submission of the Office Performance Commitment

and Review forn to the PMT, and the Employees' Individual Performance Commitment and Review form to the PD/ HRMU within the specified dates shall be a ground for:

b. An administrative sanction for violation of reasonable office rules and regulations and simple a. Emplayees' disqualification for performance-based personnel actions which would require the neglect of duty for the supervisors or employees responsible for the delay or non-submission rating for the given period such as promotion, training or scholarship grants and performance enhancement bonus, if the failure of the submission of the form is the fault of the employees.

of the office and individual performance commitment and review report.

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

XI.REPEALING CLAUSE

repealed, revoked, amended or modified accordingly. All revenue issuances and/or portions thereof that are inconsistent herewith are hereby

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XII. EFFECTIVITY

Office for approvai. Office concemed and its subsequent amendments shall likewise be submitted to the CSc Regional The BIR Enhanced SPMS shall become effective oniy upon the approval of the CSC Regional

rom6 d.lumagui3r. A

Conmjssioner. of Internal Revenue 093938

Date CSC Action:

APPROVET

JUDITH A. DONGALLO-CHICANO Director IV

MAR 13 2023

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RECORDS MGT. DIVISION UG