ORGANIZATION AND

MANAGEMENT STUDY

GUIDELINES ON LGU
REORGANIZATION
3 Major Phases
Pre-reorganization Phase
Reorganization
Post Reorganization

A. Pre-reorganization Phase
Covers preparatory activities such as
completion of administrative requirements
and conduct of ORGANIZATION AND
MANAGEMENT STUDY focusing on
organizational structure, staffing pattern
and functions before reorganization.

A.1 Administrative Requirements

LCE issue an Executive Order creating the
Local Reorganization Committee(LRC)
composed of the following:
HRMO
Budget Officer
Sanggunian Member preferably Chairman
Committee on Appropriations
Secretariat

 LRC prepares an action plan for implementation

LRC design the instruments in data gathering,
analyzing and interpreting data
LRC conduct the inventory of existing positions
and personnel
LRC choose the appropriate structure
LRC meets with department heads to discuss
the objectives and mechanics of reorganization

A.2 CONDUCT OF THE STUDY

LRC ADMINISTERS THE QUESTIONNAIRE
TOGETHER WITH THE DEPARTMENT HEADS
RETRIEVAL OF THE QUESTIONNAIRE
TABULATE THE DATA
COLLATE COMPARE AND EXAMINE GATHERED
DATA
INTERVIEW 20% OF TOTAL RESPONDENTS TO
VALIDATE THE DATA
ANALYZE AND INTERPRET TABULATED DATA

Secondary Data
Gathered from existing records such as plantilla. Budget
staffing pattern organizational structure, position and
functional chart, 201 files,issuances on designation
transfer, detail etc
Conduct inventory of positions and existins personnel
Compare the existing plantilla with the Organization
staffing and classification action summary (OSCAS),
Position Allocation List(PAL) staffing pattern, budget and
other documents to determine the costs of personal
services (PS) for the proposed reorganization

A.3 INTERPRET THE FINDINGS

OF THE ORGN AND MGT STUDY

SUMMARIZE FINDINGS AS
FOLLOWS:
STRUCTUREproliferation
or
lack
of
organizational units, existence of unrelated units,
etc.
FUNCTION- duplication, overlapping, not clearly
delineate functions, uneven distribution of
workload among units personnel
PERSONNEL/STAFFINGoverstaffing,
understaffing, unqualified, underqualified, over
qualified, under utilized.over utilized,personnel
performing other functions etc.

A.4 PRESENT RECOMMENDATIONS

PRESENT TO LCE AND SANGGUNIAN THE FINDINGS AND
RECOMMENDATIONS. IT INCLUDES THE PROPOSALS TO RESPOND TO
THE FINDINGS, RELEVANT JUSTIFICATION IN PROPOSING MERGING,
CREATION, ABOLITION OF OFFICE.
IN CASE OF EXCESS PERSONNEL, THE LGU MUST BE GUIDED BY
PROVISIONS OF RA 6656
HIGHLIGHTS OF THE STUDY ARE:

PROPOSED ORGANIZATIONAL STRUCTURE

STAFFING PATTERN
POSITION AND FUNCTIONAL GRAPH
BRIEF NARRATIVE DESCRIPTION TO INCLUDE THE TIME AND MANNER OF
IMPLEMENATION

B. REORGANIZATION PHASE
CHOOSING THE STRUCTURE
ADOPTION-the LRC presents the
Reorganization Plan to LCE for adoption
by thr Sanggunian
INSTALLATION /IMPLEMENTATION OF
THE OSSP (Organizational Structure and
Staffing Pattern)

C. POST REORGANIZATION PHASE

IT TAKES PLACE AFTER THE
PERSONNEL AFFECTED ARE
TERMINATED, RETIRED, RE
APPOINTED OR APPOINTED
THE ACTIVITIES INVOLCE THE
FOLLOWING:
MONITORING AND EVALUATION
CSC PERSONNEL AUDIT AND INSPECTION

MARAMING SALAMAT PO!!

TO ACCOMPLISH GREAT THINGS, WE
MUST NOT ONLY ACT, BUT ALSO
DREAM, NOT ONLY PLAN, BUT ALSO
BELIEVE, IMPLEMENT THE PLAN TO
REALIZE THAT DREAM

GUIDE TO LGU REORGANIZATION

LEGAL BASIS
CONSTITUTION
REPUBLIC ACTS 7160 (LGC); 7305(Magna Carta
for Health Workers);7041 (Posting & Publication of
Vacant Position);6713 (Code of Conduct Ethical
Standard);6656 (An Act to protect security of tenure
of civil service officers and employees)

GUIDE TO REORGANIZATION
EXECUTIVE ORDERS OF THE
PRESIDENT
EO 503 RULES AND REGULATIONS
IMPLEMENTING TRANSFER OF
PERSONNEL ASSETS AND LIABILITIES
AND RECORDS OF DEVOLVED NGA
EO 507 TRANSFER OF FY 1992 APPROP
TO THE IRA OF LGU FOR DEVOLVED
FUNCTIONS

GUIDE TO REORGN
EXECUTIVE ORDERS
EO 164-ADOPTING A REVISED
CLASSIFICATION SYSTEM IN
GOVERNMENT
EO 51 LGUs TO REVISE BUDGETS TO
ADDRESS DEVOLVED FUNCTIONS

GUIDE TO REORGN
ADMINISTRATIVE ORDERS
AO 42 CLARIFIES THE ROLE OF DBM IN THE
COMPENSATION AND CLASSIFICATION OF LG POSITIONS
AO 47 AMENDS ART. 417 OF THE IRR LGC 1991
AO 53 GRANT OF ADDITIONAL COMENSATION TO PUBLIC
SCHOOL TEACHERS AND UNIFORMED MEN OF THE PNP
AND AFP .EXTENDING BENEFITS TO THE REST OF GOVT
PERSONNEL
AO 58 DIRECTS IMMEDIATE REAPPOINTMENT OF
DEVOLVED PERSONNEL AND PAYMENT OF SALARIES

GUIDE TO REORGN
CIRCULARS MEMORANDA,ISSUANCES
DILG MEMO Devolution clarification on
interpretation
DILG MC
-Mandatory absorption of
personnel of national govt affected by
devolution
DILG MC Guidelines I efecting devolution in
the LGUs etc

GUIDE TO REORGN
MEMO CIRCULAR , ISSUANCES

CSC MC 37 Revised Appointment forms

CSC MC 38 Omnibus Rules in Appointment
CSC MC 42 & 46 New Qualification Standards
DBM LBC No. 54 Guidelines for initial implementation
of reviced compensationa dn classification system
DBM LBC No. 55 Guidelines on compensation in
LGUs speciically on RATA, Honoraria, PERA,
Compensation of Punong Barangay

GENERAL POLICIES IN
REORGANIZATION
DECLARATION OF POLICY
It is a declared policy of the State to protect
the security of tenure of civil service officers
and employees in the reorganization of
various agencies of the national government
and KGUs state colleges and universities..

PROHIBITION AGAINST
REMOVAL
NO OFFICER OR EMPLOYEE IN THE
CAREER SERVICE SHALL BE
REMOVED AS A RESULT OF
REORGANIZATION EXCEPT FOR
VALID CAUSE AAND AFTER DUE
NOTICE OR HEARING (SEC. 2 RA 6656)

WHO WILL BE EVALUATED FOR

REOGANIZATION
ALL OFICERS AND EMPLOYEES
INCLUDING THOSE WITH PENDING
ADMINISTRATIVE CASES, OR ANY
DEROATORY RECORDS.THEY SHALL
BE EVALUATED ON THE BASIS OF
RETENTION OR TERMINATION (SEC. 5,
RULES IMLEMENTING GOVT REORGN)

FACTORS FOR ASSESSMENT

OF EMPLOYEES
RELATIVE FITNESS , MOST QUALIFIED AND
COMPETENT
PERFORMANCE FOR THE LAST TWO (2) YEARS
EDUCATION AND TRAINING
EXPERIENCE AND OUTSTANDING
ACCOMPLISHMENTS
PHYSICAL CHARACTERISTICS AND PESONALITY
TRAITS

PREFERENCE FOR APPOINTMENT

PREFERENCE FOR APPOINTMENT IN THE
FOLLOWING ORDER
OFFICERS AND EMPLOYEES HOLDING PERMANENT
TEMPORARY EMPLOYEES WHO POSSESS NECESSARY
QUALIFICATION AND CS ELIGIBILITY FOR PERMANENT
APPOINTMENT
CASUAL EMPLOYEE WHO POSSESS NECESSARY
QUALIFICATION FOR PERMANENT APPOINTMENT
OFFICERS AND EMPLOYEES O HOLDING PERMANENT
APPOINTMENT IN OTHER AGENCIES WHO MEET
QUALIFICATION REQUIREMENTS
NEW EMPLOYEES WHO MEET THE NECESSARY
QUALIFICATIONS

PLACEMENT COMMITTEE
COMPOSITION
FUNCTION TO ASSIST THE APPOINTING
AUTHORITY IN THE JUDICIOUS SELECTION
AND PLACEMENT OF PERSONNEL IN ORDER
THAT THE BEST QUALIFIED AND MOST
DESERVING PERSONS BE APPOINTED IN
ANY REORGANIZATION

PLACEMENT COMMITTEE
COMPOSITION
- 2 MEMBERS APPOINTED BY HEAD OF AGENCY
-A REPRESENTATIVE OF THE APPOINTING AUTHORITY
-1 MEMBER DULY ELECTED BY EMPLOYEES HOLDING
POSITION AT THE FIRST LEVEL
-1 MEMBER DULY ELECTED BY EMPLOYEES HOLDING
SECOND LEVEL POSITION
-A REPRESENTATIVE OF THE EMPLOYEES
ASSOCIATION
-A CSC REPRESENTATIVE REQUESTED TO RENDER
ASSISTANCE TO THE COMMITTEE

NOTICE AND HEARING

OFFICERS AND EMPLOYEES WHO
UPON EVALUATION SHALL BE DULY
NOTIFIED AND SHALL BE GIVEN
OPPORTUNITY TO PRESENT THEIR
SIDE TO ASSURE UTMOST
IMPARTIALITY AND OBJECTIVITY

VALID CAUSES FOR

SEPARATION
A POSITION HAS BEEN ABOLISHED OR
CONSIDERED REDUNDANT
POSITIONS ARE MERGED, DIVIDED OR
CONSOLIDATED TO MEET THE
REQUIREMENTS OF THE ORGN.
CAUSES ALLOWED BY CS LAW, RA 6656

ORDER OF SEPARATION
PURSUANT TO REORGANIZATION
CASUAL EMPLOYEES WITH LESS THAN 5YEARS IN
SERVICE
CASUAL EMPLOYEES WITH 5 YEARS OR MORE
EMPLOYEES HOLDING TEMPORARY APPOINTMENT
EMPLOYEES HOLDING PERMANENT APPONTMENT ,
WHO ARE LEAST QUALIFIED TO THE POSITION

APPOINTMENT, POSTING AND

NOTICE OF NON- APPOINTMENT
INDIVIDUAL APPOINTMENTS SHALL BE IN THE
PRESCRIBED CSC FORM
LIST OF NAMES OFAPPOINTED PERSONNEL AND
THEIR POSITION SHALL BE POSTED
NOTICE OF NON-APPOINTMENT AS A RESULT OF
REORGANIZATION SHALL BE GIVEN AT LEAST 30
DAYS BEFORE THE TERMINATION

SEPARATION FROM SERVICE

CONSIDERED IN BAD FAITH
WHEN THERE IS SIGNIFICANT INCREASE OF POSITIONS OF
THE NEW STAFFING PATTERN
WHEN AN OFFICE IS ABOLISHED AND ANOTHER
PERFORMING THE SAME FUNCTION IS CREATED
WHEN INCUMBENTS ARE REPLACED WITH LESS QUALIFIED
TO THE POSITION
WHEN THERE ARE RECLASSIFICATION OF OFFICES IN A
DEPARTMENT AAND TH RECLASSIFIED OFFICE PERFORM
THE SAME FUNCTION AS THE ORIGINAL
WHERE THE REMOVAL VIOLATES THE ORDER OF
SEPARATION PROVIDED IN THE RULES

APPEALS
TO APPOINTING AUTHORITY APPEALS MAY BE
SUBMITTED WITHIN 10 DAYS FROM THE LAST DAY
OF POSTING OF APPOINTMENTS BY THE
PERONNEL OFFICER
TO CIVIL SERVICE COMMISSION-ANY EMPLOYEE
NOT SATISFIED WITH THE DECISION OF THE
APPOINTING AUTHORITY MAY APPEAL WITH CSC
THE CSC SHALL RENDER A DECISION WHICH IS
FINAL AND EXECUTORY

ORDER OF REAPPOINTMENT
ALL OFFICER AND EMPLOYEES WHO
ARE FOUND BY CSC TO HAVE BEEN
SEPARATED IN VIOLATION OF
PROVISIONS OF RA 6656 SHALL BE
ORDERED REINSTATED OR
REAPPOINTED AS THE CASE MAYBE

LIST OF EMPLOYEES
SEPARATED
THE AGENCY SHALL PREPARE LIST OF
SEPARATED EMPLOYEES AS A RESULT
OF REORGANIZATION COPY
FURNISHED CIVIL SERVICE
COMMISSION

SEPARATION AND RETIREMENT

BENEFITS
ALL OFFICERS AND EMPLOYEES WHO AE
SEPARATED FROM SERVICE AS A RESULT
OF REORGANIZATION SHALL BE PAID
APPROPRIATE BENEFITS SEPARATION PAY
AND GRATUITY. IT SHALL HAVE PRIORITY OF
PAYMENT FROM SAVINGS OF THE AGENCY

CRIMINAL LIABILITY
ALL HEADS OF DEPARTMENTS WHO WILLFULLY
VIOLATE ANY PROVISION OF RA 6656 INCLUDING
FAILURE TO IMPLEMENT SUCH RULES SHALL UPON
CONVICTION BE PUISHED WITH A FINE OF
10,OOOPHP OR IMPRISONMENT OF 3 TO 5 YEARS
AT THE DISCRETION OF THE COURT
SHALL SUFFER PERMANENT DISQUALIFICATION TO
HOLD PUBLIC OFFICE