Rationalization Plan in The Government 1
Rationalization Plan in The Government 1
Rationalization Plan in The Government 1
ph/
Source Date: Wednesday, May 20, 2009
Focus: Citizen Engagement
Country: Philippines
Created: May 25, 2009
The Department of Budget and Management has already approved the Rationalization Plan of
seven government agencies.
The seven agencies include the Office of the President, the Office of the Vice President, the
Department of Labor and Employment, Department of Budget and Management; Department of
Science and Technology; Department of Tourism and the Civil Service Commission.
The applications of the rest of the agencies are still pending at the Department of Budget
and Management for approval.
This was learned yesterday by the Philippine Information Agency after it made a call to the
DBM upon the request of the Department of Labor and Employment Region 8, the chairman of this
year's celebration of the 111th Philippine Independence Day celebration.
DOLE8 said that the agencies which have not yet rationalized have been ordered to temporarily
fill up vacant plantilla positions from among the displaced workers and their dependents
which are registered with DOLE.
The directive was contained in the Executive Order 782 signed by President Gloria Macapagal
Arroyo in order institute measures to assist workers affected by the current financial
crisis.
The agencies have up to June 1 to submit the number of jobs that will be generated from each
one of them. This is to help minimize the impact of the current global financial crisis which
is already being felt through the retrenchment of workers.
The awarding of appointments and contracts is one of the highlights in this year's
Independence Day Celebration, DOLE 8 said.
BACKGROUND INFORMATION
WHAT IS THE RATIONALIZATION PLAN (RAT PLAN)?
The Rationalization Program was mandated for government agencies in October 2004 through
Executive Order (EO) 366
Casual and Contractual Employees funded under GAA-PS with appointment attested by CSC
It means they might change their position or job title or office but will still be working for DepEd
using their skills/knowledge
For those interested to apply for the new or higher vacant positions, they can also choose CTI
status while applying for new positions in the new structure. If they get appointed, the old item
will be abolished. In the event that they dont get appointed, they can retain the CTI status
For employees choosing this option, they cannot be appointed to a regular position in
government agencies for the next 5 years (except in hospitals or public schools)
In 2006, the Department of Education (DepEd) submitted to the Department of Budget and
Management (DBM) its Rationalization Plan/Program in line with Executive Order No. 366 dated
October 4, 2004 entitled "Directing A Strategic Review of the Operations and Organizations of
the Executive Branch and Providing Options and Incentives for Government Employees Who
May Be Affected By The Rationalization of the Functions and Agencies of the Executive
Branch."
In 2006, the DepEd Rationalization Plan/Program aimed at achieving the following goals:
c. A re-engineered schools division office with a core competence in leadership and supervision;
and
d. High performing schools (as measured by high Education for All (EFA) performance indicators
and high national test results).
However, the 2006 Rationalization Plan/Program has not been approved to date, for the DepEd has
experienced changes in priorities, thrusts and directions. Thus, the current management requested
from the DBM that the DepEd be given the opportunity to review and resubmit a revised plan in line
with Republic Act No. 9155 entitled "An Act Instituting A Framework of Governance for Basic
Education, Establishing Authority and Accountability, Renaming the Department of
Education, Culture and Sports As the Department of Education, and for Other Purposes" and
the new policies, thrusts and directions of the agency.
In September 2010, the DBM returned the plan to DepEd to "give management more time to
thoroughly review the functions, the organizational structure and the staffing complement with the
following reminders:
a. Have the same or lower number of positions as compared to its filled items at the start of the
rationalization effort in 2005;
b. Not to exceed the Personnel Services (PS) level of the Department at the start of the
rationalization effort in the aforesaid year; and
This is because the rationalization program is intended to improve efficiency and effectiveness in the
government operation with the use of existing resources of government through the rechanneling of
said resources to priority areas of concern.
In this connection, this Department will be reviewing and redrafting the rationalization plan/program,
through its reconstituted Change Management Teams (CMTs) and its sub-teams, a team of consultants
under management's supervision is now doing several rounds of pre-drafting and consultations in a
separate Memorandum.
From the DepEd management, the following guidelines and policy directions are to be followed as
provided in EO No. 366 in designing the rationalization plan/program and its consequent effects:
The Central Office consultations to be led by the CMT will commence in early October. The process will be
participatory and reiterative; hence, there will also be three (3) rounds of discussions with the different groups.
c. The implementation of the Rationalization Plan/Program will follow Section 20 of EO No. 366
which states: "The DBM shall issue the implementing guidelines for the effective
implementation of this EO, including the mechanisms for the agency utilization of savings,
provided that savings shall not be used for the creation of new positions and hiring of
additional personnel, either on contractual, casual, consultancy or job order basis."
d. No one will lose their rank or position level. The options available as prescribed by EO No. 366
include the following:
i. New assignments which will be at the same level or higher than their current position
if their qualification so merits it.
ii. Movement (lateral or to a higher post) in a different level of the DepEd organization
(e.g. from division to district)
e. Professional development programs such as retooling will be provided to assist the personnel
in the transition to adjusted/new tasks:
i. No one will be forced out or retrenched from the organization other than by natural
attrition. This wi11 be the option followed by management unless an employee opts to
explore other career options within or outside the organization. Help will be provided
for such employees (e.g. job leads, training, career transition counseling); and
ii. No one will be forced to retire unless the person volunteers. Those who will opt to
retire wi11 be provided retirement benefits defined in EO No. 366.
Read
more: http://www.affordablecebu.com/load/philippine_government/deped_rationalization_plan_progra
m/5-1-0-2007#ixzz4aVnAjEvw
CSC clarifies rule on rationalization State employees whose posts are abolished under Executive Order
No. 366 or the rationalization plan can opt to stay in government or avail of the generous separation
package. This was clarified yesterday by Civil Service Commission (CSC) Chair Ricardo L. Saludo. The
CSC chief also cautioned government employees against irresponsible alarmists who only create an
Under the law, affected personnel with permanent or temporary appointment who would opt to remain
in government service shall be placed in other agencies by the CSC where additional personnel are
required. Affected personnel, with appointments attested by the CSC, whether hired on a permanent or
temporary basis, who would opt to retire or be separated from the service shall be given the option to
The CSC Chief also pointed out that police, teachers and health worker posts will not be affected by the
Executive Order 366. Initially, those affected by the reorganization will stay with CSC until they are
Review of the Operations and Organizations of the Executive Branch and Providing Options and
Incentives for Government Employees Who May Be Affected by the Rationalization of the Functions and
The law directs agencies to prepare a rationalization plan to identify posts that are
redundant/outdated or no longer relevant to the accomplishment of the major final outputs of the
particular agency. The review of agency operations and structure also aim to improve the quality and