GCG Guidebook Reorganization
GCG Guidebook Reorganization
GCG Guidebook Reorganization
FOR
REORGANIZATION FOR GOCCs
_________________________________________________________
INTRODUCTION
Republic Act (R.A.) No. 10149 mandates the Governance Commission to
ascertain the need to reorganize or rationalize GOCCs in order to align their
operations with the countrys overall goals.1
LIST OF ACRONYMS
BM Branch Model
CBA Cost-Benefit Analysis
CL Career Level
CMT Change Management Team
CSA Current State Assessment
DF Design Framework
MO Memorandum Order
OS Organizational Structure
OSSP Organizational Structure and Staffing Pattern
OSSP-CL Organizational Structure and Staffing Pattern with Career Leveling
PP Participatory Process
RP Reorganization Plan
SAP Strategic Action Plan
SP Staffing Pattern
TWG Technical Working Group
WAP Workforce Analysis and Planning
STEP 7 Strategic Action Planning (SAP) Annex 15: Strategic Action Plan
STEP 9 Creation of the Technical Working Annex 18: Official List of TWG
Group (TWG) Members
1.1. The GOCC must formally adopt and issue a Board Resolution approving the
commencement of the reorganization.
Reorganization in its technical meaning refers to reorganization under R.A. No. 6656.
Do the provisions of R.A. No. 6656 and E.O. 366 apply to reorganization under the
Memorandum Circular?
No.
1.2. The Board Resolution must also provide for the Governance Structure,
pursuant to Section 3.2.2.b of the GCG MC No. 2015-04.
1.3. The Board Resolution must also provide the Guiding Principles of the
Reorganization.
1. What objectives does the GOCC want to attain through its reorganization?
2. How will the reorganization plan support the thrusts of the government?
3. What is the optimal state of the GOCC?
4. How will the reorganization help the employees?
5. How will the GOCC conduct its reorganization plan?
Examples:
A. Focus government efforts on the exercise of its fundamental functions of establishing
and providing the appropriate social, political and economic environment within which
development can prosper;
B. Transform the bureaucracy into an effective and efficient institution for the delivery of
core public services; and
C. Ensure the long term sustainability of core government services through resource
mobilization and cost-effective public expenditure management.
NOTE: The Official List of CMT Members (Annex 2) is referenced in the Board Resolution Directing
the Commencement of the Reorganization and Providing Its Governance Structure (Annex 1). Hence,
Annex 2 is an integral part of Annex 1.
2.2. The GOCCs Human Resource unit shall act as the secretariat of the CMT to
ensure proper documentation of the planning and implementation of the RP.
What is the difference between Change Management Team and Technical Working Group?
As to the nature of functions, the Change Management Team is in charge of the development of the
Reorganization Plan, while the Technical Working Group is in charge of negotiating adjustments to the
Reorganization Plan with the GCG.
As to the time of constitution, the Change Management Team is constituted at the commencement of
the Reorganization process, while the Technical Working Group is constituted after the Governing
Board approves the filing of the Reorganization Plan with the GCG.
As to composition, the Change Management Team is composed of officers and employees, including
representative/s from the GOCCs accredited union/s, while the Technical Working Group is a subset
of the Change Management Team, composed only of officers representing GOCCs management.
2.3.1. The CMT shall establish and implement the Participatory Process in a
manner that ensures meaningful consultation of employees and key
stakeholders (e.g. Customers) on matters such as the overall objectives,
performance standards for staffing models, selection criteria for
personnel changes, and other broad parameters as may be defined by
the Governing Board through the Management.
In the conduct of the Current State Assessment, the GOCC may consider the
following activities and tools:
However, nothing herein shall preclude the GOCCs from adopting other tools or
activities that will assist them in the conduct of their Current State Assessment.
2 The McKinsey 7S Framework defines Systems as the daily activities and procedures that staff
members engage in to get the job done. (Mind Tools. n.d.)
(11) Skills shortage and oversupply
(12) Employment market and competition
(13) Exit interviews
(14) Employee perception survey results
(15) Customer service survey results
Current Vacancies or Overage Projected Attrition
Projected Workload Changes
Retirements
Resignations
Terminations
Growth/ Expansion Promotions
Workload Ratio Demotions
Policy/ New Initiative Transfers
Regulatory Change Others
Other
When was the GCG MC No. 2015-04 published in a newspaper of general circulation?
It was published in the Manila Standard on 30 July 2015. Accordingly, the 3 month deadline for
the required workforce analysis report is on 30 October 2015.
Job
Plantilla /Item Career Path Qualification Standards
Grade
In the example above, only one person will occupy the plantilla item but he or she may be hired at
different levels. If an incumbent, he or she may also be promoted. Career Path involving a change
of job grades only pertains to non-senior positions in the Customer, Professional, Technical,
General Staff and Labor career bands.
Career Pathing may only be applied in the GOCCs reorganization plan after presenting
an approved competency framework and appropriate performance standards on an individual
level. Its implementation must also not result in a job or salary distortion vis--vis other similarly
situated individuals in the organization.
What is the difference between Corporate Treasurer and Head of Treasury Department?
A Corporate Treasurer is a corporate officer, while the head of treasury department is a regular
employee (albeit high-ranking and managerial).
A Corporate Treasurer need not have a plantilla item, while the head of treasury department is a
plantilla position.
A Corporate Treasurer is appointed by the Board, while the head of treasury department is
appointed in the same manner as all other managers in the corporation.
A corporate officer is one which is created by the Charter, By-Laws or the Board of Directors, while
a regular employee position is created through the approval of a plantilla.
Can the head of the treasury department also be the Corporate Treasurer?
Under Section 21.2 of the Code of Corporate Governance for GOCCs, the Chief Finance Officer
may also be the Corporate Treasurer.
If the head of treasury department reports to the Chief Finance Officer, the head of treasury
department may not act as the Corporate Treasurer.
If the head of treasury department is, at the same time, the Chief Finance Officer, the head of
treasury department may act as the Corporate Treasurer.
6.1.3. Career Band, Career Level and Job Grade
The GOCC shall undertake Career Leveling based on the following
elements:
a) Career Band
b) Career Level
c) Job Grade
Career leveling will be discussed in-depth in the next Step.
GOCC
FINANCIAL RANGE (P)
GRADE
16 < 3.0 billion
17 > 3.0 billion and < 6.5 billion
18 > 6.5 billion and < 22.0 billion
19 > 22.0 billion and < 43.5 billion
20 > 43.5 billion and < 87.5 billion
21 > 87.5 billion and < 218.0 billion
22 > 218.0 billion and < 436.5 billion
23 > 436.5 billion and < 2.0 trillion
24 > 2.0 trillion and < 4.0 trillion
25 > 4.0 trillion
GOCC
NO. OF FTE EMPLOYEES
GRADE
16 Up to 89
17 90 to 240
18 241 to 620
19 621 to 1,600
GOCC
NO. OF FTE EMPLOYEES
GRADE
20 1,601 to 4,100
21 4,101 to 10,600
22 10,601 to 27,500
23 27,501 to 75,000
24 75,001 to 200,000
25 More than 200,000
6.2.1.3. Geographical Scope and Business Complexity - The grade for the
GOCCs Geographical Scope and Business Complexity shall be
determined as follows:
Global 20 22 24
SCOPE
International 19 21 23
Domestic 16 18 20
BUSINESS COMPLEXITY
A. Geographical Scope
(a) Domestic if majority of operations are based in a single
country or a small cluster of countries within one region
(b) International if the organization is characterized by multi-
function operations across an entire region or in several
countries in two continents.
(c) Global if the majority of functions are represented across three
or more continents.
All GOCCs are automatically classified as domestic unless there is
clear and substantial basis to classify the GOCCs actual
operations otherwise.
CATEGORY DESCRIPTION
Small 16
CLASSIFICATION AVERAGE GRADE
Medium 17 to 18
Large 19 and Up
MANAGEMENT
Typically, the most senior level within a major function who is primarily
involved in the development, evolution and approval of long-term vision
across a market function, division, region, or country
Typically, one downs of CEO/President/Business Unit Heads
Executive (EX) May be a board or executive committee member or will have a
comparable level of influence
Impacts broader organization performance directly
Main focus is on strategy setting (either for the entire organization or a
major function/division of the organization)
INDIVIDUAL CONTRIBUTOR
Primarily involved in direct contact with customers/clients to acquire new
business or develop existing business or accounts
Customer/Client
Participates in sales presentations, developing bids, and responding to
Management &
proposals
Sales (S)
At senior levels, likely to set/negotiate product/service terms (contracts)
A portion of their compensation is likely to be based on sales results
What is a branch?
A branch is an operating unit which has two elements:
It is distributed geographically for the purpose of extending services to specific
geographical locations; and
Its organizational design and functions are merely iterated/replicated across different
geographical locations, the only variability being its size.
Does the branch model apply to other units operating locally?
Yes. A branch includes: (1) regional offices, (2) provincial offices, (3) field offices, (4) service
offices, (5) local centers, and others of similar nature.
The GOCC shall design a Strategic Action Plan in order to implement their
Reorganization Plan. The SAP shall include the following minimum requirements:
Does the signature of the Secretary of the Supervising Agency in the Board Resolution
suffice as Endorsement of the Supervising Agency?
In cases where the Board Resolution is signed by the Secretary of the Supervising Agency sitting
as Ex Officio member, a separate endorsement is no longer necessary.
If the Board Resolution is signed by the Ex Officio alternate, a separate endorsement from the
Secretary is necessary.
The GOCC shall submit a complete set of Reorganization Plan annexs and
forms as provided in this Guidebook.
The GOCC must submit the following copies of the Reorganization Plan
together: (a) Hard Copies; and (b) Soft Copies in USB
Soft copies of the Reorganization Plan documents must have the following
formats:
What are the two modes of applying the Operational Flexibility Clause?
1. Through the Transitory Provisions in Section 10 of GCG MC No. 2015-04; and
2. Through a GCG-approved reorganization under GCG MC No. 2015-04
What are the conditions for the application of the Operational Flexibility Clause under
the Transitory Provisions of GCG M.C. No. 2015-04?
There are three conditions:
1. The 90-day rule. The GOCC must submit a Workforce Analysis and Planning (WAP)
Report within 90 calendar days or 3 months from the date of effectivity of GCG M.C. No.
2015-04.
GCG M.C. No. 2015-04 was published in the Manila Standard on 30 July 2015.
Accordingly, the 3-month deadline for the workforce analysis report is on 30 October 2015.
2. The 60-day rule. Sixty (60) working days must lapse from the date of the receipt by the
GCG of the WAP Report, after which the GOCC can apply for conditional authority under
GCG MC No. 2015-04.
However, receipt by the GOCC of GCG regulatory intervention shall indefinitely toll the
running of the 60-day period.
3. The 30-day rule. After the perfection of the 60-day period, the GOCC must submit
Application/s for Conditional Authority under GCG MC No. 2015-04, following the
prescribed forms in this Guidebook. Thirty (30) working days must lapse from the date of
the receipt by the GCG of the Application/s for Conditional Authority.
However, receipt by the GOCC of GCG regulatory intervention shall indefinitely toll the
running of the 30-day period.
GCG M.C. 2015-04 provides that the Governing Board has the authority to
effect the following:
What is the meaning of 10.5 of the Transitory Provisions of the GCG MC No. 2015-04?
Section 10.5 states: "The filled positions within each GOCC and all positions that have only been
vacant for not more than four (4) months from the effectivity of this circular shall be deemed the
authorized workforce level of the GOCC, and all other vacant positions shall be deemed abolished."
This is only for the purpose of Career Leveling under Step 9. This does not imply an actual and
automatic abolition of plantilla items.
Lusthaus, Charles, Marie-Hlne Adrien, Gary Anderson, Fred Carden, and George Plinio Montalvn.
2002. Organizational Assessment. International Development Research Centre/Inter-American
Development Bank, Retrieved 10 September 2015, from http://idl-
bnc.idrc.ca/dspace/bitstream/10625/31375/4/IDL-31375.pdf
Mind Tools. n.d. Organization Design: Aligning Organization Structure with Your Business Goals.
Retrieved September 11, 2015, from https://www.mindtools.com/pages/article/newPPM_95.htm
Mind Tools. n.d. The McKinsey 7-S Framework: Ensuring That All Parts of Your Organization Work in
Harmony. Retrieved September 11, 2015, from
https://www.mindtools.com/pages/article/newSTR_91.htm
MIT Human Resources. n.d. Strategic Planning of Talent. Retrieved 10 September 2015, from
http://hrweb.mit.edu/ctm/organizational-strategies/talent-management-workforce-planning
oOo
FORMS
[Supervising Agency Letterhead] Annex 1
BOARD RESOLUTION
NOW BE IT
Chair
NAME DESIGNATION
Members
NAME DESIGNATION
e.g. Department Manager,
Union Representative, HR
Officer
Annex 3
SAMPLE OUTLINE3
1. Introduction
Background and purpose
Development issues
Description of the organization
Unit of analysis
2. Methodology
Major issues/questions
Data collection/sources
Data analysis
Limitations (time, resources, information) Team
Schedule
4. Enabling Environment
Formal rules
Legal framework
Intellectual property rights
Mandate
Labor rights
Institutional culture
History
Cultural values
Norms
Capabilities
Natural resources
Human resources
Technology
Financial resources
Finance
Program/services
Infrastructure
Technology
Inter-organizational linkages
7. Organizational Performance
Effectiveness
Efficiency
Ongoing relevance
Financial viability
DEMAND ANALYSIS
Current Staffing Level (number of filled plantilla positions) 50
ADD: Number of indispensable but unfilled plantilla positions 5
LESS: Number of filled plantilla positions deemed redundant or obsolete 6
ADD: Number of plantilla positions required to meet workload requirements 4
Required Staffing Level 53
SUPPLY ANALYSIS
Current Staffing Level 50
LESS: Projected Attrition (see Trend Analysis) 18
Projected Internal Supply 32
GAP ANALYSIS
Retirements 6% 50 3.0
Terminations 3% 50 1.5
Promotions 2% 50 1.0
Demotions 4% 50 2.0
COST-BENEFIT ANALYSIS
DESIGN FRAMEWORK
Financial Indicator 1 Accountable Unit 1 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Financial Indicator 2 Accountable Unit 2 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Financial Indicator 3 Accountable Unit 3 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Financial Indicator 4 Accountable Unit 4 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Financial Indicator 5 Accountable Unit 5 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Operational Indicator 1 Accountable Unit 6 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Operational Indicator 2 Accountable Unit 7 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Operational Indicator 3 Accountable Unit 8 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Operational Indicator 4 Accountable Unit 9 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Operational Indicator 5 Accountable Unit 10 Year 1 Target Year 2 Target Year 3 Target Year 4 Target Year 5 Target
Annex 8
MASTER DATA
[See MS Excel template for Master Data on the Memorandum Circulars page of the GCG Website]
Annex 9
A. BUDGET DEPARTMENT
Position Title Career SG Number of Parameters for Creation of Career Career JG Qualification
Path Items Additional Positions Band Level Standards
Department Manager III 25 1 Fixed
Executive Assistant II 22 1 Fixed
Financial Analyst I 15 3-10 Add one additional position for
II 18 every X number of inputs
III 22
Accountant I 15 2-5 Add one additional position for
II 18 every Y number of transactions
III 22
Administrative Assistant II 22 1 Fixed
B. UNIT 2
Position Title Career SG Number of Parameters for Creation of Career Career JG Qualification
Path Items Additional Positions Band Level Standards
Position Title 1
Position Title 2
Position Title 3
Position Title 4
Position Title 5
Annex 10
[Insert existing organizational chart. Each box must contain the name of the organizational unit. Each box must also contain the
number of plantilla personnel.]
Annex 11
[Insert proposed organizational chart. Each box must contain the name of the organizational unit. Each box must also contain the
number of plantilla personnel.]
Annex 12
JOB DESCRIPTION
BRANCH MODEL
Example
Generated Revenue >= $100M <$100 M & >=$70M <$70 M & >=$30M <$30 M & >=$5M
Total Store Area >=15,000 m2 3,000 15,000 m2 300 to 5,000 m2 300 to 2,000 m2
Manager 1 1 1 1
Secretary 1 1 1 1
Assistant Manager NL*NSS NL*NSS NL*NSS NL*NSS
ENDORSEMENT
BOARD RESOLUTION
WHEREAS, the Board has determined that the [GOCC Acronym] needs to
undergo reorganization for the following reasons: [state rationale];
NOW BE IT
RESOLVED, that a Technical Working Group (TWG) is hereby established, as
provided in GOCC Reorganization Annex 18;
RESOLVED, that the TWG is hereby authorized to enter into negotiations with
the GCG in order to arrive at an agreement on the proposed reorganization;
MEMORANDUM
DATE :
This refers to the [GOCC] Board Letter dated _____, requesting for endorsement of
the proposed Reorganization Plan of the [GOCC], pursuant to GCG Memorandum
Circular No. 2015-04.
In this regard, the Department formally endorses the proposed Reorganization Plan
of the [GOCC], as approved by the Governing Board.
PROGRESS REPORT
Note: This form substantially reproduces the Strategic Action Plan, but includes updates on the status of activities.
Form 2
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving Changes in Scope of Responsibilities and
Reporting Lines
2. Updated Annex 10 and Annex 11 of this Guidebook
This is also to certify that the [GOCC Acronym] availed of an adequate participatory
process under 3.2.2(c) of GCG MC No. 2015-04 before filing this application with the
GCG.
Form 3
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving the Staffing Plan
2. Updated Annex 8 and Annex 9 of this Guidebook
This is also to certify that the [GOCC Acronym] availed of an adequate participatory
process under 3.2.2(c) of GCG MC No. 2015-04 before filing this application with the
GCG.
Form 4
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving Changes in Titles of Organizational Units and
Executives
2. Updated Annex 8 and Annex 9 of this Guidebook
3. Updated Annex 10 and Annex 11 of this Guidebook
This is also to certify that the [GOCC Acronym] availed of an adequate participatory
process under 3.2.2(c) of GCG MC No. 2015-04 before filing this application with the
GCG.
Form 5
Example
Job
Plantilla Item Career Path Qualification Standards
Grade
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving the Career Pathing Plan
This is an application for conditional authority to implement a SCRAP AND BUILD PLAN
in [GOCC], pursuant to Section 4.1.5 of GCG MC No. 2015-04. The actions to be
undertaken are as follows:
I. POSITIONS TO BE SCRAPPED
Position Title Salary Grade Career Band Career Level Job Grade Rationale for
Scrapping
Position
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving the Transfer of Personnel
4As a general rule, a Board approval is sufficient to transfer plantilla items from one organizational unit to
another. This conditional authority applies only if the number of transfers covers a substantial number of
organizational units, and alters the responsibility of the heads of said units.
Form 8
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving the Reduction of Workforce
It is understood that these actions are effective 30 working days from the date of
receipt of this application by the GCG. However, if the GCG determines within the 30-
day period that these actions require further evaluation, it is understood that the GCG
may suspend the effectivity of these actions through a written SUSPENSION ORDER.
Attached hereunder are the requisite documents:
1. Board Resolution approving the Abolition of Coterminous to the Incumbent
Positions
I. CREATION OF BRANCHES
Branch Title Branch Classification Rationale for Creation