GuidelinesforAgencies Final For Distribution
GuidelinesforAgencies Final For Distribution
GuidelinesforAgencies Final For Distribution
Table of Contents
I. Introduction 2
II. Typology of Organizations 2
III. Organization Guidelines 3
A. General Policies 3
B. Organization Guidelines for Departments 4
a. Composition/Subdivisions of a Department 4
b. Organization of the Office of the Secretary 4
c. Organization of Internal Management and Support to Operations Units 4
d. Organization of Operations Units 5
1. Organization of a Staff Bureau 5
2. Organization of a Line Bureau 6
3. Organization of Field Units 6
C. Organization Guidelines for Line Bureaus 6
a. Composition/Subdivision of a Line Bureau 6
b. Organization of the Office of the Director 6
c. Organization of Internal Management and Support to Operations Units 7
d. Organization of Operations Units 7
e. Organization of Field Units 7
D. Organization Guidelines for Intermediate Structures 7
a. Composition/Subdivision of an Intermediate Structure 7
b. Organization of the Office of the Head of the Agency 8
c. Organization of Internal Management and Support to Operations Units 8
d. Organization of Operations Units 8
e. Organization of Field Units 8
E. Organization Guidelines for Inter-Agency Bodies, Task Forces and Other Similar Entities 8
IV. Staffing Guidelines 9
A. General Policies 9
B. Guides in the Staffing of an Organization 9
C. Allowable Staffing Actions 9
D. Level of Agency Heads 10
Annex A: Guidelines on the Immediate Support Staff of a Department’s Key Officials 11
Annex B: Summary of Book IV Chapter of the Administrative Code of 1987 13
Annex C: Summary of the Provisions of the Integrated Reorganization Plan of 1972 (Part II 14
Articles III-VI)
Annex D: On the Creation of an Internal Audit Service (IAS) 17
Annex E: On the Creation of a Unified Project Management Office/Unit 18
1
I. INTRODUCTION
This Organization and Staffing Standards and Guidelines has been prepared to provide
a common reference in designing the organization structure and in determining the staffing
requirements of agencies of the Executive Branch, in support of the Rationalization
Program. These guidelines are expected to be applied after the agency has undergone a
thorough review of its functions. As a general rule, the proposed organizational structure
and staffing must be supportive of the core functions identified by the agency.
Department
A Department is the primary subdivision of the Executive Branch responsible for the
overall management of a sector or a permanent national concern with nationwide or
international impact.
Bureau
Service
A Service is a staff unit whose functions are primarily supportive of the major service
objectives of a Department. It may either provide technical inputs necessary in the
exercise of the substantive functions, or monitor the programs of a Department; or
perform administrative functions for a Department. Its clients include the Department
and the units under it. 4
Field Unit
A field unit is the “end” and “start” point of a Department or Agency or Line Bureau. On
one hand, it is the end point in the delivery of necessary public goods and services, and
therefore, the medium for producing results. On the other hand, it serves as the point of
origin of feedback and information, and as a resource for performance assessment,
policymaking, and program planning. 5
1
EO 292 Book IV Chapter IV Section 18 (1)
2
Ibid Section 19 (1)
3
Ibid Section 20 (1)
4
DBM-Management Office Memorandum to All MO Analysts dated 23 October 1979 (No definition in EO 292 and PD 1)
5
Paraphrased from Reengineering Principles and Parameters, p. 30
2
Intermediate Structures Between a Department and a Bureau
An intermediate structure is an inter-ministerial entity which may not compare with the
size of a Department but nevertheless performs tasks that are equally sensitive and
important. This places the entity on a higher plane than a Bureau. Councils,
Commissions, or Boards, whose operations cut across several agencies or even
Departments, and whose area coverage is nationwide, are considered intermediate
structures. 6
Inter-agency committees, task forces and similar entities are ad hoc bodies that are
organized to address urgent or cross-cutting concerns and problems that cannot be
resolved by ordinary processes of existing agencies. Their mandates are time-bound.
A. General Policies
The following policies should be observed in designing the most appropriate organizational
structure that will execute the agency’s rationalized functions.
• The resulting organizational structure and staffing of agencies should strictly observe
the overriding goal of the Rationalization Program to improve the delivery of vital
government services in terms of quality, scope, speed, accountability, and affordability.
Thus, the organization and staffing structure should promote focused use of limited
resources on core functions and programs, and simultaneously cut down waste and
overlaps by scaling-down, phasing-out, or abolishing non-core functions and programs.
The functional approach combines activities that are indigenous or common to a major
function. It may be adopted when an entity’s functions are complex that there is a need
to subdivide component activities.
The process approach involves grouping of various jobs/activities that form the
sequence or components of one complete process pertaining to a service/product.
In the clientele approach, units are organized to serve a wide range of requirements of
specific groups or types of clients. It may be considered when the entity has only one or
a few homogeneous activities, but caters to a very large segment of the bureaucracy or
general public.
6
DBM-Management Office Memorandum to All MO Analysts dated 23 October 1979
3
The geographical approach involves a territorial grouping of operations. It may be used
when the expanse of the geographical area of operations is very wide.
• The extent and size of departmentation/divisionalization shall take into account the
functional distribution, workload, span of control, type and variety of skills/expertise
required, the number of personnel for each type of expertise, and the geographical
location of the work station in order to ensure clear and effective performance
accountability.
• The Department/Agency’s structure should reflect and facilitate the full devolution of
government’s services as provided for in the Local Government Code of 1991 and other
related legal issuances.
a. Composition/Subdivision of a Department
The Office of the Secretary is responsible for the overall management and
administration of a Department, formulation and implementation of policies, plans and
programs, and in the day-to-day supervision and administration of its functional units. It
is composed of a Secretary, Undersecretary/ies and Assistant Secretary/ies, and their
immediate support staff.
The Secretary shall primarily advise the President relative to matters under the
jurisdiction of the Department; establish policies and standards for the operation of the
Department pursuant to the approved programs of government; and promulgate rules
and regulations necessary to carry out department objectives, policies, functions, plans,
programs and projects. 8
The Undersecretary shall advise and assist the Secretary in the formulation and
implementation of department objectives and policies and oversee all the operational
activities of the department of which he shall be responsible to the Secretary. 9
7
Administrative Code of 1987 Book IV Chapter 1 Section 2 (3)
8
Administrative Code of 1987 Book IV Chapter 2 Section 7 (1-3)
9
Administrative Code of 1987 Book IV Chapter 2 Section 10 (1-2)
4
The Assistant Secretary shall perform such duties and functions as may be provided by
law or assigned to him by the Secretary. 10 Ideally, an Assistant Secretary should
supervise a specific function, office or unit which is distinct from that supervised by an
Undersecretary.
The immediate support staff of the OSec provides executive assistance in a range of
strategic matters and administrative support in general office duties. Specific guidelines
in the staffing of the OSec are indicated in Annex A.
Except as otherwise provided for by law, each Department may have units which shall
perform planning, financial, management and administrative services, internal audit, and
other support to operations functions.
For Departments with department-wide field units, the bureaus will serve primarily as
staff units to advise and assist the Office of the Secretary and provide consultative and
technical services to the operations personnel in the field units.
A Staff Bureau shall avail itself of the planning, financial and other
support/administrative services in the Department Proper. The Bureau may have a
separate Administrative Division, if circumstances so warrant. 12
10
Administrative Code of 1987 Book IV Chapter 2 Section 11
11
Administrative Code of 1987 Book IV Chapter 1 Section 10 (1-2)
12
EO 292 Book IV Chapter 4 Section 19 (3)
5
2. Organization of a Line Bureau
A Line Bureau may have staff units, as may be necessary, corresponding to the
services of the Department Proper. If the Bureau is small, only a single unit
performing combined staff functions may be provided. 13
After examining the need to maintain Field Offices, a Department must identify the
appropriate level of its field operations, taking into consideration the extent of the
decentralization of its operations and the provisions of the Local Government Code
of 1991 on devolution.
In general, Field Offices may be created, if the sources of inputs to the agency
production process, or the beneficiaries or objects of agency outputs, are so
spatially located and distributed across the country. 14 As may be necessary, the
field units shall constitute the operating arms of a Department that are concerned
with the direct implementation of plans and programs drawn up in accordance with
approved policies and standards. As counterparts of a Department in the region,
they shall undertake Department operations within their respective jurisdictions, and
be directly responsible to their Department Secretary. 15
Departments are encouraged to maintain only one level of field presence, if at all
necessary. Departments are also encouraged to cluster/combine field offices for
more effective, yet economical field service delivery, and to categorize field units
based on scope of work and degree of intervention.
A Line Bureau is composed of units performing core, support to operations, and internal
management functions. It may have administrative field offices as provided for by law.
A Line Bureau is headed by a Director who may have one Assistant Director.
In structuring the organization, a Line Bureau may use departmentation approaches that
it deems most effective yet economical, for service delivery. The basic subdivision of a
Line Bureau is a division.
13
Ibid Section 20 (3)
14
Reengineering Principles and Parameters p. 30
15
EO 292 Book IV Chapter 8 Section 41 (2) (This EO 292 provision refers to Field Offices of a Line Bureau; but since it is also applicable for
Departments, I replaced the term “Bureau” with “Department” )
6
The Office of the Director is composed of the Director, Assistant Director, and
immediate support staff positions. For the manning of the immediate support staff,
please refer to Annex A.
c. Organization of Internal Management and Support to Operations Units
In general, the policy guidelines for the internal management and support to operations
units of a Department also apply to Line Bureaus.
Line Bureaus may also refer to the Administrative Code of 1987 and the Integrated
Reorganization Plan. Depending on specific requirements, a Line Bureau may have its
counterpart of the Department Services. In this case, counterpart units may be a
division level entity and may perform combined internal management/support functions,
e.g. combined administrative, financial and management.
As may be necessary, field units may constitute the operating arms of a Line Bureau
that are concerned with the direct implementation of plans and programs drawn up in
accordance with approved policies and standards. As counterparts of the bureau in the
field, field units shall undertake bureau operations within their respective jurisdictions,
and be directly responsible to their Bureau Director. 16
In general, the organization guidelines for the department field units may be adopted in
organizing field units of Line Bureaus.
As a matter of policy, all agencies lower than a Department shall be placed under the
administrative supervision or attached to a department best able to provide policy or
program guidance or exercise administrative supervision over it. 17
16
EO 292 Book IV Chapter 8 Section 41 (2)
17
EO 72 dated 11 February 2002 Section 1
7
b. Organization of the Office of the Head of Agency
Intermediate structures in the Executive Branch have varied types of top management
organization. In general, the level of the head of the agency should follow what is
provided for by the law.
The Office of the Head of the Agency may be provided with positions for executive and
administrative assistance. For the immediate support staffing, refer to Annex A.
The guidelines for the organization of internal management and support to operations
units of a Department also apply to intermediate structures.
Intermediate structures may also refer to the Administrative Code of 1987 and the
Integrated Reorganization Plan. Depending on specific agency requirements, an
intermediate structure may have its counterpart of the Department Services. In this
case, counterpart units may be a division level entity and may perform combined
internal management/support to operations functions, e.g. combined administrative,
financial and management.
When necessary, intermediate structures may adopt the organization guidelines for
Department field units in organizing their Field Units.
The Field Units of an intermediate structure may constitute the operating arms of the
agency that are concerned with the direct implementation of plans and programs in
accordance with approved policies and standards. As counterparts of the intermediate
structure in the field, they shall undertake intermediate structure operations within their
respective jurisdictions, and be directly responsible to their Agency Head. 18
E. Organization Guidelines for Inter-Agency Committees, Task Forces and Other Similar
Entities
Inter-agency committees, task forces and other similar entities whose functional
concerns can be subsumed under an existing unit of a Department may be abolished.
As a policy, Department/Agency heads are encouraged to call on any agency of
government or the private sector for assistance in the exercise of their functions,
whenever necessary. Thus, institutionalization of such entities is no longer necessary.
18
EO 292 Book IV Chapter 8 Section 41 (2)
8
IV. Staffing Guidelines
A. General Policies
Prior to the preparation of the proposed staffing pattern, Departments/Agencies may identify
functions that could be effectively outsourced/contracted out. Contracting out/outsourcing
may be considered in both core and non-core functions when it is deemed more efficient
and economical for the Department/Agency, provided that accountability mechanisms are in
place.
e. Apart from the unit head, allow one-of-a-kind higher or senior level position and provide
at least one entrance level position.
Under the Rationalization Program, the Department/Agency may consider the following
staffing actions to rationalize its staffing pattern:
a. Abolition of positions
b. Conversion of positions
Conversion of position means the abolition of vacant position/s and the creation of
another position in its/their stead with the same, lower or higher salary range/grade.
9
c. Reclassification of Positions
d. Retitling of positions
All administrative support positions shall be retitled in accordance with DBM Budget
Circular 2004-3 and 2004-3A.
e. Creation of Positions
The scrap and build policy must be observed when proposing new positions.
Departments/Agencies may create new positions as long as there are corresponding
obsolete/unnecessary but funded positions which can be abolished to support the
creation of the new position/s.
For reference, the following tables indicate the appropriate levels of designated heads of
agencies/organizational units*
a. Organic Structure
b. Field Units
* Exceptions may only be allowed as provided in the IOS e.g. lawyer positions.
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10
ANNEX A
The immediate support staff may consist of personnel that will provide executive assistance
and administrative assistance to key positions of the Department/Agency. The Executive
Assistance staff shall provide executive support in a range of strategic matters involving the
performance of a variety of technical and administrative tasks. The Administrative Assistance
staff shall provide administrative support in general office duties, including but not limited to,
secretarial, clerical, chauffeuring, messengerial and reproduction work.
B. Composition
The composition of the immediate support staff shall be based on the position of the official in
the organization, to wit:
Salary Maximum Highest Highest
Grade Allowable Executive Administrative
Position of Number of Assistant Assistant
Official Positions Position Position
Agencies have the option to determine the mix of executive assistant and administrative
assistant positions for the Department Secretary, Undersecretary and Assistant Secretary or
their equivalents, provided that they shall not exceed the maximum allowable number and
highest level of positions.
11
C. Appointment
The appointment of those who provide executive assistance, private secretarial and
chauffeuring services shall be co-terminus with the official being served.
D. Other Guidelines
1. To preserve the hierarchy of positions, there should be no duplicity in the level of each type
of position, except for Executive Assistant positions allocated to SG 17 and below, and
administrative positions allocated to SG 9 and below.
2. To conform with the staffing model provided, agencies shall adopt the scrap and build policy
where existing vacant positions may be abolished to create or reclassify appropriate
positions, working within the funding limitations. The number of immediate support staff may
be less than the prescribed staffing model.
- Agencies should see to it that the full requirements for personal services for
created/reclassified/converted positions would not exceed the amount generated from
the abolition of positions.
3. The agency may resort also to the transfer/redeployment of positions from other units within
the agency.
12
ANNEX B
Summary of Book IV Chapter 3 of the Administrative Code of 1987
Except as otherwise provided by law, each Department shall have Department Services which
shall include the Planning Service, the Financial and Management Service, and whenever
necessary, the Technical and Legal Services.
Planning Service
The Planning Service shall provide the Department with economical, efficient and
effective services relating to planning, programming, and project development, and
discharge such other functions as may be provided by law.
Where the work of the Department does not call for substantial planning and
programming, the Planning Service shall be constituted as a single unit without
subdivisions. Where substantial primary data gathering is essential to the operations of
the Department, a statistical unit may be constituted as part of a Technical Service.
Administrative Service
The Administrative Service shall provide the Department with economical, efficient and
effective services relating to personnel, legal assistance, information, records, delivery
and receipt of correspondence, supplies, equipment, collections, disbursement, security
and custodial work. It shall also perform such other functions as may be provided for by
law.
Technical Service
Whenever necessary, one or more technical services may be established to take charge
of technical staff activities essential to the Department and which cannot be allocated to
the three other services or to the bureaus.
Legal Service
The Legal Service shall be provided where the operations of a Department involve
substantial legal work, in which case the Administrative Service shall not have a Legal
Division. The Legal Service shall provide legal advice to the Department; interpret laws
and rules affecting the operations of the Department; prepare contracts and instruments
to which the Department is a party, and interpret provisions of contracts covering work
performed for the Department by private entities; assist in the promulgation of rules
governing the activities of the Department; prepare comments on proposed legislation
concerning the Department; answer legal queries from the public; assist the Solicitor
General in suits involving the Department or its officers or employees, or act as their
principal counsel in all actions taken in their official capacity before judicial or
administrative bodies; and perform such other functions as may be provided by law.
Where the workload of the Department does not warrant a Legal Service or a Legal
Division, there shall be one or more legal assistants in the Office of the Secretary.
13
ANNEX C
Planning Service
The Planning Service provides the Department with services relating to planning, programming,
and project development, and such other functions as may be provided for by law. It may have
a Planning and Programming Division, a Project Development and Evaluation Division, and a
Research and Statistics Division.
The Financial and Management Service advises and assists the Secretary on budgetary,
financial, and management matters. It may have an Accounting Division, a Budget Division,
and a Management Division.
14
Budget Division
• Develops and improves budgetary methods, procedures and justifications;
• Provides, subject to budgetary ceilings, fund estimates in support of the Department’s
operations, plans and programs;
• Assists management in the presentation of the Department’s budgetary estimates
before administrative and legislative bodies;
• Provides technical assistance to subordinate budget units in the application and
utilization of budgetary methods and the budget system;
• Prepares annual financial work plans;
• Allocates, in coordination with the Planning Service, available funds to programs on the
basis of approved guidelines and priorities;
• Issues allotment advice in support of the fund requirement for the conduct of the
operations under each program;
• Reviews performance reports to determine conformance with set standards;
• Prepares financial reports for management guidance and as required by higher
authorities; and
• Performs such other functions as may be provided by law.
Accounting Division
• Advises management on financial matters;
• Prepares and submits financial reports to management and other government
Departments and agencies authorized to receive such reports;
• Maintains basic and subsidiary accounting records and books of accounts to reflect
accurate and current financial information required by existing auditing rules and
regulations and by management;
• Certifies to the availability of funds and obligates funds;
• Processes requisitions, vouchers and reports of collections and disbursements;
• Prepares billings to debtors of the National Government; and
• Performs such other functions as may be provided by law.
Management Division
• Develops plan and program objectives relative to management improvement in the
Department;
• Examines the administrative organization of the Department and makes
recommendations for improvement;
• Maintains and updates the Department’s organization and other manuals;
• Undertakes regular management surveys of organizational structure, manpower, and
operations; studies special problems as assigned; reviews existing methods,
procedures, and systems; and makes recommendations for improvement;
• Develops new and improved management systems; exercises staff supervision over the
implementation of such improvements; and provides training in the use of the system/s;
• Develops staffing standards and manpower requirements for the Department;
• Performs such other functions as may be provided by law.
Administrative Service
The Administrative Service is responsible for the provision of services relating to personnel,
legal assistance, information, records, delivery and receipt of correspondence, supplies,
equipment, collections, disbursements, security and custodial work to the Department. It may
have a Personnel Division, a Legal Division, a General Services Division, and an Information
Division.
15
Personnel Division
• Advises management on personnel policy and administration;
• Develops and administers a personnel program which shall include selection and
placement, classification and pay, career and employment development, performance
rating, employee relations and welfare services;
• Acts on all matters concerning attendance, leaves of absence, appointments,
promotions, transfers and other personnel transactions;
• Conducts training programs in the Department;
• Maintains personnel records and statistics; and
• Performs such other functions as may be provided by law.
Legal Division
• Provides legal advice to the Secretary, the Undersecretary and the bureaus and offices
of the Department;
• Interprets laws and rules affecting the operation of the Department;
• Prepares contracts and instruments to which the Department is a party, interpreting
provisions of contracts covering work performed for the Department by private entities;
• Conducts administrative investigation, including the review of administrative charges
against employees of the Department;
• Assists in the promulgation of rules governing the activities of the Department;
• Prepares comments on proposed legislation concerning the Department;
• Assists the Solicitor General in court litigation in which the Department is involved; and
• Performs such other functions as may be provided by law.
Information Division
• Develops programs to have the policies, plans and activities of the Department properly
understood by the public;
• Produces and disseminates media materials to implement the information program of
the Department;
• Coordinates with the Public Information Office in the Office of the President; and
• Performs such other functions as may be provided by law.
Technical Service
Whenever necessary, a Technical Service shall be established to take charge of technical staff
activities peculiar to a Department and which cannot be allocated to the three other services or
the bureaus.
16
ANNEX D
The Internal Audit Service is responsible for assisting management in achieving an effective
and efficient fiscal administration and performance of agency affairs and functions, without
intruding into the authority and mandate of COA. 19 Its functions include, among others, (a)
appraisal of procedures as to efficiency or adequacy; (b) appraisal of personnel efficiency; (c)
verification and analysis of financial operations data to ascertain if attendant management
information systems generate data or reports that are complete, accurate and valid; (d)
verification of the extent of compliance with accounting procedures, governmental regulations,
department policies and programs, achievement of performance targets and contractual
obligations; (e) prevention and detection of fraud or dishonesty; (f) review of cases involving
misuse of agency property; and (g) when requested, performance of miscellaneous services,
including special investigations and assistance to outside contacts such as the COA. The
determination of effectiveness and adequacy of security and management controls over
information systems and databases and their integrity are deemed part of the operations and
financial audit.
The IAS shall report directly to the Department Secretary or his equivalent. The audit shall
cover audit areas in the Office of the Secretary, bureaus, offices and agencies, 20 including field
offices, regulatory agencies, 21 and other agencies under the supervision and control or
administrative supervision 22 of the Department.
The IAS shall be headed by a Director III or as may be provided by the Administrative Code of
1987 or other special laws. It shall have an Operations Audit Division and a Financial Audit
Division. Each Division shall be headed by an Internal Auditor V with the rank of Division Chief
with a Salary Grade of 24.
Agencies attached to the Department for policy and program coordination may have a separate
Internal Audit Unit (IAU), which shall report to the head of the agency. In case of multi-headed
attached agencies, said IAU shall report to the governing body. Small agencies attached to a
Department, may however, opt to avail of the services of the IAS of the Department.
For GOCCs/GFIs
In case of a government-owned and/or controlled corporation, the IAU shall report to the Audit
Committee, which in turn, shall report to the governing board of said corporation. 23
19
Section 1, par. 2, AO 70, s. 2003
20
Section 39, Chapter 8, Book IV, EO 292, “The Administrative Code of 1987”
21
Section 43, ibid
22
“(2) Administrative Supervision – (a) Administrative supervision which shall govern the administrative
relationship between a department or its equivalent and regulatory agencies or other agencies as may be provided by
law, shall be limited to the authority of the department or its equivalent to x x x cause the conduct of management
audit, performance evaluation and inspection to determine compliance with policies, standards and guidelines of the
department ; x x x (Section 38, Chapter 7, Book Iv, EO 292 (“ The Administrative Code of 1987”)
23
Item I (9), Code of Corporate Governance, Securities and Exchange Commission
17
ANNEX E
The Project Management Office/Unit is responsible for the management and operation of
projects of the agency in a consolidated and unified manner, with the following key functions:
(a) project operations planning; (b) project monitoring/evaluation; (c) project coordination/
“oversight”; (d) project operation and management; (e) trouble shooting; (f) financial
management; (g) coordination with various stakeholders; and (h) post project
completion/mainstreaming of project concerns in regular activities.
A unified PMO may be established in agencies (Departments, attached agencies, line bureaus)
with two or more development projects which need focused implementation to comply with
expressed commitments and ensure attainment of target sectoral and agency outputs and
outcomes. It may also be created in agencies with a single development project provided the
following conditions are present:
• Project components are “capital intensive”, i.e., will involve infrastructures/civil works
and other capital outlays (exception, however, are those involving purely procurement
projects);
• Implementation will involve two or more agencies either within the department, across
departments, GOCCs and other government instrumentalities, and or sectors; and
• Physical implementation will be in two or more areas.
A Unified PMO may be established as a separate unit within the department; or, an existing unit
(e.g. bureau, service, division) may serve as the Unified PMO as may be deemed appropriate
or consistent with or related to existing functions. The functions, structure, and staffing of said
unified PMO shall be in accordance with the provisions of National Budget Circular 485 dated
March 13, 2003.
18