To: Undersecretaries
Assistant Secretaries
Bureau Directors
Directors of Services, Centers and Heads of Units
Regional Directors
Schools Division Superintendents
Directors of Bureaus, Services, Centers and Heads of Units
All Others Concerned

1. In October 2004, Executive Order 366 (EO) 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 Branchdirected a strategic review of the operations and organizations of the Executive Branch.
2. The initiative aimed to: (a) focus government efforts and resources on its vital/core services; and (b) improve the quality and efficiency of government services delivery by eliminating/minimizing overlaps and duplication, and improving agency performance through the rationalization of service delivery and support systems, and organization structure and staffing (Section 2, EO 366).
3. In December 2011, the Department of Education (DepEd) embarked on the review and revision of its Rationalization Plan (RP) in light of long-term reforms needed in the education sector notwithstanding fast-changing demands of the local and global environment. This Department opted to submit the Rationalization Plan in two phases:
   1. Phase I includes the mandate, functions and proposed organizational structure for the agency. It also shows the indicative staffing and costing for the proposed structure vis-a-vis the 2005 level.
   2. Phase II includes the placement of employees into the new staffing pattern and the names and positions of employees which will be affected by the rationalization effort of the organization.
4. The scope of the DepEd Rationalization efforts covers the following:
   1. All Central Office Units;
   2. Sixteen (16) Regional Offices excluding DepEd-ARMM;
   3. Schools Division Offices – Proper (206 as of 30 June 2013); and
   4. Personnel whose services are chargeable to specific objects of expenditures in the GAA-Personnel Services, that is, casual and contractual employees.All employees at the school level and DepEd ARMM offices are excluded in the DepEd Rationalization Program.
5. DepEd’s RP Phase I was submitted in February 2013. This was crafted by the DepEd Change Management Team (CMT) whose members represent the various DepEd levels, positions, functions and disciplines. In crafting the plan, the CMT followed a process that was consultative, participative, and transparent. Their recommendations are consistent with time proven principles in the field of management and organization development.
6. On November 15, 2013, the DepEd RP Phase I was approved by the Department of Budget and Management (DBM). The DepEd is given a maximum of four (4) months from the date of approval to place the employees and positions in the new staffing pattern (SP). The basis of the placement of employees to comparable positions will be merit and performance.
7. In addition, the general provisions of the approval are as follows:7.1. The employees whose items will be affected by the rationalization shall have the following options:
   1. Remain in government service through converting their respective item/s from regular to Co-Terminus with the Incumbent (CTI) status, either in DepEd including schools or other agencies
   2. Avail of retirement/separation with the applicable incentives.
      Employees who will be affected by the DepEd Rationalization efforts shall be given up to two months from the date of approval or January 15, 2014 to submit their preferred option to their respective heads of offices.

   7.2. Casual/Contractual items in the agency will be abolished pursuant to the rationalization efforts. In view of this, the services of personnel hired on a casual/ contractual basis in the DepEd should not go beyond one (1) month after the approval of the agency’s RP. Thus, all contracts of casual and contractual personnel shall end on December 15, 2013.
   Affected Casual/Contractual Personnel, if qualified, are entitled to avail of the retirement/separation package under the Program within one month upon approval of the DepEd RP.

   7.3. The Notice of Organization, Staffing and Compensation Action (NOSCA) that reflects the specific positions in the approved SP would be issued later by DBM upon submission by DepEd of the specific positions as placed therein.

   Upon the release of the NOSCA from DBM, DepEd can fill up the open and newly created positions through the regular selection process. All personnel, whether affected or not, may apply for the open positions, provided they meet the requirements of the applied position.

8. The National Change Management Team (CMT), reconstituted through DepEd Memorandum No. 271 s. 2011, shall manage the implementation of the approved Rationalization Plan. The central, region and schools division offices shall also reconstitute and activate their field CMT to manage the implementation of the RP at their respective levels.
9. The undersecretaries and assistant secretaries, together with the directors at the central and regional levels and schools division superintendents (SDSs), shall be meeting their respective employees from December 2 to 13, 2013 to communicate the approved plan.
10. Enclosed is the Implementing Guidelines for the DepEd RP to ensure smooth transition of the organization and the timely submission of the outputs required by DBM.
11. Immediate dissemination of and compliance with this Order is directed.

Encl.:
As stated Reference:
DepEd Memorandum: (No. 271, s. 2011); 224, s. 2011; 451 and 469, s. 2004

To be indicated in the Perpetual Index under the following subjects:
BUREAUS & OFFICES
EMPLOYEES
OFFICIALS
POLICY
QUALIFICATIONS
RATIONALIZATION
RETIREMENT
RULES & REGULATIONS

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