Leyte Normal University

GRADUATE SCHOOL

Tacloban City

Agency Paper

BDO UNIBANK INC.

In partial fulfilment of the Course Requirements in

MM 502 – Personnel Management

Submitted To:

DR. NESTOR C. SEDANZA

Associate Professor V

Submitted By:

Gwenn M. Daza

Kristelle Joy B. Gonzales

 TABLE OF CONTENTS

I. INTRODUCTION……………………………………………………………..…1

Name and Location of Agency …………………… ……….…………..…… 1

Vision, Mission, Goals and Objectives ………………………………………. 4

Form of Ownership and Composition of Management….……………..…… 6

II. PERSONNEL MANAGEMENT PRACTICES ……………………………… 20

A. Human Resources Planning …………………………………………….. 20

B. Recruitment, Selection and Placement…………………………………. 30

C. Training and Development…………………………………………………36

D. Compensation……………………………………………………………….40

E. Performance Evaluation……………………………………………………50

F. Labor-Management Relations……………………………………………..57

III. ANALYSIS AND RECOMMENDATIONS

A. Strengths of the Agency…………………………………………….………63

B. Weakness / Areas Needing Improvement……………………………..….64

C. Recommendations…………………………………………………………...65

IV. CONCLUSION……………………………………………………………………66

APPENDICES

A. Documentation………………………………………………………............70

B. Hiring Policies

C. Staffing Survey Questionnaire

D. Training Schedule and Various HRG Forms (Annexes)

REFERENCES …………………………………………………………………………..

Page 2 of 74
 I. INTRODUCTION

BDO Unibank Inc. is a full-service universal bank in the Philippines. BDO Unibank Inc. head

office is located BDO Corporate Center Ortigas 7899 Makati Avenue, Makati City 0726.

It provides a complete array of industry-leading products and services including Lending

(corporate and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and

Investments, Credit Cards, Corporate Cash Management, and Remittances in the Philippines.

Through its local subsidiaries, the Bank offers Leasing and Financing, Investment Banking,

Private Banking, Rural Banking, Life Insurance, Insurance Brokerage, and Stock Brokerage

services.

BDO is a member of the SM Group, one of the country’s largest and most successful

conglomerates with businesses spanning retail, mall operations, property development

(residential, commercial, hotels and resorts), and financial services. Although part of a

conglomerate, BDO’s day-to-day operations are handled by a team of professional managers

and bank officers. Further, the Bank has one of the industry’s strongest Board of Directors,

composed of professionals with extensive experience in various fields that include banking,

accounting, finance, law, risk management, and retailing/marketing.

Page 3 of 74
Corporate Mission

To be the preferred bank in every market we serve.

Corporate Vision

To be the leading Philippine bank and financial services company that empowers customers to

achieve their goals and aspirations, combining our entrepreneurial spirit, international

perspective, and intense customer focus to deliver a personalized banking experience that is

easy, straightforward, and convenient, while taking pride in building long-term relationships and

finding better ways to deliver offerings of the highest standard.

Page 4 of 74
Core Values

Commitment to Customers We are committed to delivering products and services that surpass

customer expectations in value and every aspect of customer services, while remaining prudent

and trustworthy stewards of their wealth.

Commitment to a Dynamic and Efficient Organization

We are committed to creating an organization that is flexible, responds to change, and

encourages innovation and creativity. We are committed to the process of continuous

improvement in everything we do.

Commitment to Employees

We are committed to our employees’ growth and development and we will nurture them in an

environment where excellence, integrity, teamwork, professionalism, and performance are

valued above all else.

Commitment to Shareholders

We are committed to providing our shareholders with superior returns over the long term.

Page 5 of 74
 Form of Ownership and Composition of Management

Functions of the Board of Directors

 Responsibility for good governance lies with the Board.

 It is responsible to provide effective leadership and overall direction to foster the long-

term success of the Bank.

Diverse and Balanced Composition

Considering the changes done, complexity and scope of the Bank’s business, the Board believes

that the current size and composition provides sufficient diversity among its directors that fosters

critical discussion and promotes balanced decision by the Board. It views diversity at the Board

level which includes difference in skills, experience, gender, sexual orientation or preference,

age, education, race, business and other related experience as an essential element in

maintaining an effective board for strong corporate governance.

• It oversees the business affairs of the Bank, reviews the strategic plans and performance

targets, financial plans and budgets, key operational initiatives, capital expenditures,

acquisitions and divestments, annual and interim financial statements, and corporate

governance practices.

• It oversees management performance, enterprise risk management framework, internal

control system, financial reporting and compliance, related party transactions, continuing

director education, and succession plans for the Board and CEO. It considers

sustainability issues related to the environment and social factors as part of its sustainable

banking practices.

Page 6 of 74
Composition

The Board is composed of 11 members and aided by 4 Advisers. The members of the Board

are all professionals with expertise in banking, accounting and finance, law, merchandise

marketing, strategy formulation, bank regulations and risk management. It is led by a Non-

Executive Chairperson with 5 Independent Directors, 4 Non-Executive Directors and only one

Executive Director who is the President and CEO. Independent Directors make up 45.45% of

the members of the Board, which exceeds the requirement of SEC and BSP.

The Board is responsible for the selection of new directors thru the Nominations Committee. It

leads the process of identifying and evaluating the nominees for directors. It evaluates the

balance, skills, knowledge and experience of the existing Board and the requirements of the

Bank. The result of the evaluation determines the role and key attributes that an incoming

director should have. The Nominations Committee receives recommendations of potential

candidates and uses, to the extent possible, external search firms or external databases in

selecting the pool of candidates for the new members of the Board. The Nominations Committee

recommends the most suitable candidate to the Board for appointment or election as director.

For the reelection of incumbent directors, the Nominations Committee also considers the results

of the most recent self-assessments of the Board and peer evaluation, attendance record in

meetings, participation in Board activities and overall contributions to the functioning of the

Board.

In evaluating the suitability of an individual board member and promoting diversity in the

composition of the Board, the Nominations Committee takes into account the relevant

qualifications of every candidate nominated for election such as among others, physical/mental

Page 7 of 74
fitness, relevant educational and professional background, personal track record, experience/

training, commitment to contribute, willingness to serve and interest to remain engaged and

involved without regard to race, gender, ethnic origin, religion, age or sexual orientation.

The Board is also responsible for approving the selection and appointment of a competent

executive management led by the President/CEO including the heads of units who will exercise

control functions i.e. Chief Compliance Officer, Chief Risk Officer and Chief Internal Auditor. Fit

and proper standards are applied in the selection of key officers and utmost consideration is

given to their integrity, technical expertise and banking industry experience.

Each year, the composition of the Board and board committees including the skills and

competencies of its members is reviewed to ensure appropriate balance of skills and experience,

and alignment with the new regulations. As a result, 5 board committees namely Risk

Management, Corporate Governance, Trust, Nominations and Related Party Transactions were

reconstituted by primarily designating Independent Directors as majority members including

Chairmanship of these committees.

During the year, the Board reviewed and approved the Bank’s budget and business targets,

quarterly declaration of dividends, conversion of unissued preferred shares to common shares

and the corresponding amendment of the seventh article of its Articles of Incorporation to reflect

the conversion, the hiring, resignation and promotions of senior officers, the successive versions

of the Corporate Governance Manual of the Bank; and the issuance of up to US150 million in

Green Bonds to be invested in by the International Finance Corporation via private placement at

the tenor of 5 to 7 years. It approved the release of the 2016 audited financial statements within

Page 8 of 74
60 days from year end. Its oversight functions include review of operational and financial

performance of senior management and work of the various committees in accordance with their

mandates.

Board Committees

The Board has established nine (9) committees to help in discharging its duties and

responsibilities. These committees derive their authority from and report directly to the Board.

Their mandates and scope of responsibilities are set forth in their respective charters which are

subject to review and update annually or when there are significant changes therein. The number

and membership composition of committees could be increased or decreased by the Board as

it deems appropriate and consistent with applicable laws or regulations specifically on the

majority membership and chairmanship of independent directors in various committees.

The standing committees of the Board are as follows:

Executive Committee

Chairperson: Teresita T. Sy

Members: Jesus A. Jacinto, Jr.; Nestor V. Tan; Josefina N. Tan; Antonio N. Cotoco; Guia

C. Lim; and Mario B. Palou

The Executive Committee acts on behalf of the Board as the main approving body for Bank

exposures particularly approval/confirmation of credit proposals, investments, and disposal of

acquired assets. The Executive Committee shall be composed of at least (3) directors and at

least two (2) members of senior management who shall be appointed/designated by the Board

of Directors.

Page 9 of 74
Board Audit Committee

Chairman: Jose F. Buenaventura

Members: Jones M. Castro, Jr.; Jimmy T. Tang;

Adviser: Corazon S. de la Paz- Bernardo; Christopher A. Bell-Knight; Jesus A. Jacinto

Jr.

The Audit Committee ensures the integrity of financial reporting and provides oversight of the

internal and external audit functions. It is vested by the Board with the following authority:

A. Review and approve the audit scope and frequency, and the annual internal audit plan.

B. Provide oversight on the Internal Audit Department and appointment of the Chief Internal

Auditor as well as the Bank’s independent external auditor, the terms and conditions of

its engagement and removal of which only the independent and nonexecutive directors

should decide.

C. Monitor and evaluate the adequacy and effectiveness of the Bank’s internal control

system, including financial, operational and compliance controls and risk management

annually.

D. Receive and review reports of internal and external auditors, the Chief Compliance

Officer, and regulatory agencies, where applicable, and shall address all issues and

concerns from auditors expeditiously and effectively by ensuring that management is

taking appropriate corrective actions in a timely manner and take appropriate corrective

actions in addressing control and compliance issues with regulatory agencies.

E. Review the Bank’s quarterly, semi-annual, and annual financial statements before

submission to the Board and ensure that no revisions to the Bank’s financial statements

are implemented for reasons other than mandated changes in accounting practices.

Page 10 of 74
 F. Review and update the Audit Committee Charter at least annually, investigate any matter

within its term of reference and provide mechanisms for reporting of improprieties and

malpractices, independent investigation, follow-up action and subsequent resolution of

complaints.

G. Ensure that the internal auditors shall have free and full access to all the company’s

records, properties and personnel relevant to the internal audit activity. The internal audit

activity shall be free from interference in determining the scope of internal auditing

examinations, performing work, and communicating results.

The Committee shall be composed of at least four (4) members of the Board of Directors, three

(3) of whom shall be independent directors including the Chairperson. Advisers may also be

appointed to the Audit Committee by the Board of Directors. Membership exclusions apply to

the Chief Executive Officer, Chief Financial Officer and/or Treasurer, or officers holding

equivalent positions.

Compensation Committee

Chairperson: Jimmy T. Tang

Members: Jesus A. Jacinto, Jr.; Josefina N. Tan; and Teresita T. Sy

The Compensation Committee provides oversight on directors’ compensation and remuneration

of senior management and other key personnel, ensuring that compensation scheme is

consistent with the Bank’s culture and strategy, effectively aligned with prudent risk taking and

commensurate with corporate and individual performance. It also ensures consistency of the

compensation policies and practices across the Group. The Committee shall be composed of

four (4) members of the Board of Directors, one of whom is an independent director who is also

the Chairman.

Page 11 of 74
Corporate Governance Committee

Chairman: Gilberto C. Teodoro, Jr.

Members: Jones M. Castro, Jr.; Jimmy T. Tang

The Corporate Governance Committee is primarily tasked to assist the Board in formulating the

policies and overseeing the implementation of the corporate governance practices of the Bank

as well as its subsidiaries and affiliates. Annually, it also conducts the performance self-

evaluation of the Board of Directors, its committees, executive management and also peer

evaluation of directors using the Revised Board of Directors and Peer Evaluation Survey forms.

It also oversees the implementation of the Directors Orientation and Continuing Education

Policy. The Committee shall be composed of at least three (3) members of the Board of

Directors, two (2) of whom shall be independent directors.

Nominations Committee

Chairman: Jimmy T. Tang

Members: Jose F. Buenaventura; and Gilberto C. Teodoro, Jr.

The Nomination Committee leads the process for identifying and makes recommendations to

the Board on, candidates for appointment as Directors of the bank as well as those other

positions requiring appointment by the Board of Directors, giving full consideration to succession

planning and the leadership needs of the Group. In particular, this process includes the profiling

of the skills and competencies of the currently serving directors, the gaps in skills and

competencies identified and the search for candidates who are aligned with the Bank’s directions

to fill the gaps. It also makes recommendations to the Board on the composition and

chairmanship of the various committees. It keeps under review the structure, size and

composition of the Board, including the balance of skills, knowledge and experience and the

Page 12 of 74
independence of the non-executive Directors, and makes recommendations to the Board with

regard to any changes. The Committee shall be composed of three (3) members, with two (2)

independent directors and a Chairperson who is an Executive Director.

Risk Management Committee

Chairman: Jones M. Castro Jr.

Members: Nestor V. Tan; Dioscoro I. Ramos

Adviser: Christopher A. Bell-Knight

The Risk Management Committee is responsible for the development of the Bank’s risk policies,

sets the risk appetite and defines the appropriate strategies for identifying, quantifying, managing

and controlling risk exposures including preventing and/or minimizing the impact of losses when

they occur. It oversees the implementation and review of the risk management plan on an

integrated enterprise-wide basis, system of limits of management’s discretionary authority

delegated by the Board and takes immediate corrective actions when breached. It is also

responsible to reassess the continued relevance, comprehensiveness and effectiveness of the

risk management plan and revise it when needed. It works with the Audit Committee in certifying

in the Annual Report the adequacy of the Bank’s internal control and risk management systems.

The Committee shall be composed of at least three (3) members of the Board of Directors

including at least one (1) independent director, and a chairperson who is a non-executive

member who shall possess a range of expertise as well as adequate knowledge of the Bank’s

risk exposure.

Page 13 of 74
Trust Committee

Chairperson: Antonio C. Pacis

Members: Christopher A. Bell-Knight; Dioscoro I. Ramos; Nestor V. Tan; Ador A.

Abrogena

The Trust Committee reviews and approves transactions between trust and/or fiduciary

accounts, to accept and close trust and other fiduciary accounts, and to approve the investment,

reinvestment and disposition of funds or property. It evaluates trust and other fiduciary accounts

at least once a year. In addition, it also reviews the Trust and Investment Group’s overall

performance, profile of funds and accountabilities under its management, industry position, and

the risk management reports. It also approves offering of new products and services,

establishment and renewal of lines and limits with financial institutions, and investment outlets

and counterparties. The Committee shall be composed of at least five (5) members, including

the President and the Trust Officer. The remaining 3 members including the Chairperson are

non-executive directors or independent directors who are both not members of the Audit

Committee.

Information Technology Steering Committee

Chairman: Gilberto C. Teodoro, Jr.

Members: Nestor V. Tan; and Frederic Mark S. Gomez

The IT Steering Committee provides oversight and governance over the Bank’s IT functions,

including approvals of information technology-related policies and practices of the Bank and

applicable guidelines. It informs the Board of both internal and external IT-related developments

and activities, potential challenges and risks, progress vs. strategic objectives. It approves and

endorses to the Board IT-related best practices, strategic plans, policies and procedures. The

Page 14 of 74
Committee shall be composed of at least three (3) members, including a non-executive director,

the President and the Head of the IT Group. The Chairman of the Committee is the non-executive

director.

Related Party Transactions Committee

Chairman: Dioscoro I. Ramos

Members: Jones M. Castro, Jr.; Jimmy T. Tang

Adviser: Jesus A. Jacinto, Jr.

The Related Party Transactions Committee (RPTC) assists the Board in its oversight of the

conduct of all Related Party Transactions (RPTs) to protect the interests of the Bank and its

stakeholders. It ensures proper disclosure of all approved RPTs in accordance with applicable

legal and regulatory requirements and confirmation by majority vote on the Annual Stockholders’

meeting the Bank’s significant transactions with related parties. The Committee shall be

composed of at least 3 regular members (2 independent directors and 1 non-executive director)

and an alternate member who is an independent director. The Chairman of the Committee is

one of the independent directors.

Page 15 of 74
 Board of Directors as of April 20, 2018

Mr. Henry Sy, Sr.

Chairman Emeritus

Ms. Teresita T. Sy
Chairperson

Mr. Jesus A. Jacinto, Jr. Mr. Christopher A. Bell- Knight

Vice Chairman Director

Atty. Antonio C. Pacis Ms. Josefina N. Tan

Director Director

Mr. Nestor V. Tan Atty. Jose F. Buenaventura

Director, President & Chief Executive Officer Independent Director

Mr. Jones M. Castro, Jr. Mr. Dioscoro I. Ramos

Independent Director Independent Director

Mr. Jimmy T. Tang Atty. Gilberto C. Teodoro, Jr.

Independent Director Independent Director
Advisors to the Board as of April 20, 2018

Page 16 of 74
Ms. Corazon S. de la Paz-Bernardo Mr. Jose T. Sio

Mr. Harley T. Sy Mr. Vicente S. Pérez, Jr.

Independent Advisor

Mr. George T. Barcelon

Independent Advisor

Page 17 of 74
CORPORATE OFFICERS

President & Chief Executive Officer Nestor V. Tan

Corporate Secretary Edmundo L. Tan

Assistant Corporate Secretary Sabino E. Acut, Jr.

Assistant Corporate Secretary Alvin C. Go

Treasurer Pedro M. Florescio III

Deputy Treasurer Dalmacio D. Martin

Assistant Treasurer Marilyn K. Go

Chief Internal Auditor Estrellita V. Ong

Chief Compliance Officer Federico P. Tancongco

Chief Risk Officer Evelyn L. Villanueva

Page 18 of 74
Personnel Management Practices

Page 19 of 74
 II. PERSONNEL MANAGEMENT PRACTICES

A. HUMAN RESOURCE PLANNING

1. EMPLOYMENT PRACTICES

BDO is committed to fair employment practices without undue prejudice to race, gender,

ethnic origin, religion, age, or sexual orientation. Employees are treated fairly and

accorded with respect and dignity.

It ensures that employment practices and policies are in compliance with labor laws,

regulations and standards in the countries where it operates. Employees are selected,

engaged, compensated and promoted, as the case may be, based on the merits of

qualification and performance.

2. EMPLOYEES’ WELFARE

BDO is committed to promote the physical, social and mental well-being of its employees.

It aims to provide a workplace free from discrimination and all forms of physical, sexual

and psychological abuse including harassment, bullying and intimidation. It is committed

to maintain a positive, harmonious and professional work environment with due

importance accorded to occupational health and safety of the employees and related

external parties.

For the details of the data relating to health, safety and welfare of employees, refer to

pages 107 to 109 of the Annual Corporate Governance Report.

Page 20 of 74
3. EMPLOYEE MOVEMENTS

The Bank assigns responsibilities and tasks commensurate to the skills and abilities

demonstrated by its employees and implements changes and movements whether

necessary.

a. Transfer

A transfer is a physical movement from a branch or unit without any change in job title

and level. Such movement may be management-initiated to allow the Bank smooth and

uninterrupted service to the public, or employee-initiated as an alternative career option.

b. Temporary Job Assignment

A temporary job assignment involves an employee being assigned to perform a specific

function within his/her job level for a specific period of time.

c. Redesignation

A redesignation refers to an employee’s movement from one function to another within

the same job level. A basic requirement is adequate training or exposure on that specific

job.

Page 21 of 74
4. EMPLOYEE TRANSFER

Policy Statement

This Policy aims to provide standard process for employee transfer to maximize

manpower resource in response to business requirements.

Definition of Terms

To ensure common understanding of employee transfer governed by this policy, the

following definition of terms shall be used as reference:

1. Employee transfer is defined as a movement from one unit to another unit without

any change I in position title and job rank.

2. Employee redesignation is a movement to another position with the same rank but of

different job content and role, subject to completion of training requisites to new role.

Types of Transfer/Redesignation

a) Employee-initiated – movement requested by an employee as a career

option/development.

b) Management-initiated – movement of an employee initiated by the business unit

as required by the business operational needs.

Page 22 of 74
1. Eligibility

a) All permanent employees with at least one year tenure in their current position may

be eligible to request for transfer

b) Employees should have at least 3.0 rating in their last performance cycle.

2. Guidelines

a) While the Bank allows employees to request for transfer, Management reserves the

prerogative to reassign any officer or staff as the exigencies of the business

warrants.

Request for transfer is subject to approval depending on business needs.

b) Request for transfer may only be facilitated when requesting employee satisfactorily

meets the targeted position’s performance expectations and standards as

established by the accepting business unit.

c) An employee with an approved request for transfer shall move within sixty (60)

working days from the time the request is approved/confirmed by the accepting unit.

Deviations shall require a joint approval by the concerned Business Unit/Group

Heads (of the originating and accepting units).

 While employee is waiting for confirmation of an accepting unit, he/she should

remain in his/her original unit of assignment in current role.

Page 23 of 74
  Should the current business unit be restructured or streamlined, the employee

may be reassigned to another comparable role in the same business group while

waiting for redeployment.

d) Request for transfer filed by the employee shall be valid only for one calendar year

from date of request. Should the transfer be unprocessed within the calendar year,

the request is considered as no longer valid unless the employee has re-filed

another request for transfer in the subsequent year.

e) Whether the transfer is employee-initiated or management-initiated, if it requires

replacement, an Employee Requisition Form [ERF] must be accomplished. No

automatic replacement for transferred employees shall be processed.

f) All transfers should be in accordance with approved manpower headcount and

properly documented by accomplishing the required forms. Transfers that are

arbitrarily implemented by the business unit without proper documentation submitted

to HR shall be deemed as unofficial personnel movement and subject to applicable

sanctions by Management.

g) Management-initiated transfers may be documented via e-mail with copy furnished

to all required approvers, both from originating (releasing) and accepting units.

Page 24 of 74
3. Approval Matrix and Required Forms

The following matrix shall be observed in the approval of employee transfers:

Required Forms Accomplished by Approving Authorities

a. Employee-Initiated Requesting employee Head Office & Subsidiaries

Transfer Request Form - Supervisor Officer*

[TRF] - Business Unit

Head/Branch/Area/Region Head*

- Group Head, as applicable*

b. Management-initiated Supervising Officer of *For Management-

initiated transfers approvals

should come from both the

originating and accepting unit.

Page 25 of 74
Procedures

Employee-Initiated Transfer

Requesting Employee

1. Advises his/her immediate supervising officer that he/she is interested in other

opportunities outside of the unit.

2. Accomplishes the TRF and obtains approval of designated approving authorities

from the originating unit.

3. Forwards approved TRF to HRG-MP for evaluation/processing.

4. Coordinates directly with HRG-MP to ensure official processing of request.

HRG-MP

1. Validate whether targeted position in the desired unit is vacant and with

approved headcount.

2. Should request be qualified for processing, HRG-MP endorses request to

supervising officer of desired unit for assessment. HRG-MP coordinates

schedule of interview between requesting employee and desired unit, as

necessary.

2.1 HRG-MP provides Performance Appraisal Rating (PAR) and

Attendance Rating to the supervising officer of the accepting unit for

reference.

3. If request is not qualified for processing, HRG MP advises employee

accordingly, upon employee’s inquiry, and informs employee that request will

be valid only for one calendar year from date of request.

Page 26 of 74
Accepting Unit

1. Assesses request by conducting interview and verifies past performance of

requesting employee.

2. Advises HRG-MP of results and decision.

HRG-MP

1. Upon confirmation of acceptance of transfer by the business unit, coordinates

with originating and accepting units on the effective date of transfer

2. Should transfer require redesignation, prepares Request for Redesignation and

sends it via email to HRG-Training & Development

HRG-TRAINING AND DEVELOPMENT

1. Identifies the training requisite of the new role/assignment of the transferring

employee.

2. Coordinates with the supervising officer of the accepting unit on the training

schedule of concerned employee

3. Certifies completion of training requisites and confirms effective date of

redesignation and inform HRG-MP via email.

Page 27 of 74
 HRG-MP

1. Prepares transfer/redesignation memo and releases the same to the employee in

two (2) copies.

2. Updates all records in HR database on the details of the employee transfer.

3. Prepares Movement Update Report for release to appropriate HR units.

EMPLOYEE

1. Upon receipt of transfer memo, signs it and returns duplicate copy to HRG-MP

B. Management-Initiated Transfer

Immediate Supervising Officer of Employee to be transferred

1. Obtains approval of designated approving authorities both from originating and

accepting business units.

2. Discusses with concerned employee the business need to transfer him/her.

3. Coordinates with accepting unit on the effective date of transfer.

4. Notifies HRG-MP of the employee movement by sending an accomplished

Request for Personnel (RPA) Form or via email advice. Notice of employee

movement must be sent to HRG-MP at least seven (7) working days prior to

transfer date.

Page 28 of 74
HRG-MP

1. Upon receipt of the RPA, prepares transfer/redesignation memo and releases the

same to the employee.

2. A regular incident report on undocumented transfers and late notification shall be

submitted to the concerned Group Heads for appropriate action.

Employee

1. Upon receipt of transfer memo, signs it and returns duplicate copy to HRG-MP.

HRG-MP

1. Files the signed transfer/redesignation memo.

2. Updates all records in employee database.

3. Prepares Movement Update Report and sends it to appropriate HR units and

relevant business units.

Page 29 of 74
 B. Recruitment, Selection and Placement

Staff Level Positions Qualifications

 Should be a college graduate

 Should submit updated resume, 2 pcs. of 2x2 ID picture, valid ID, Transcript of Records

(if available) and NSO birth certificate.

Supervisory Level Position Qualification

 Should be a college graduate

 Should submit updated resume, 2 pcs. of 2x2 ID picture, valid ID, Transcript of Records

(if available) and NSO birth certificate.

 Should have at least 1 year experience in banking operations.

PROCESS FLOW

After the applicant submitted the required documents and was able to qualify. He/she will take a

pre-employment examination. If the applicant passes, he/she will go through a series of

interview. Initial interview over the phone will be conducted by the HR personnel unless

applicant’s location is within the area where our HR office is located in which he/ she will have

face to face interview.

The applicant will then be invited to attend an interview which is conducted by the Supervisors

and Manager of the branch where the applicant will be assigned if he/ she is hired. Based on the

Page 30 of 74
assessment of the Branch Manager, a feedback will be sent to HR as to who among the

applicants will go to training.

Prior to training, the applicant will have a pre-employment medical examination which is all

expensed paid by BDO. All the results of the medical examinations will have to be faxed and

forwarded to the HR for perusal. If the result of the medical examination is acceptable the HR

will now coordinate with the applicant regarding his/her hiring date and duration of training.

Once an applicant is accepted to undergo training he/she is already hired. The applicant will

then be required to open a payroll account with the BDO branch in which the applicant will be

assigned after the training.

For Visayas and Mindanao employees, New Employees’ Training is conducted in Cebu NRA

Training Center, Cebu City. The newly hired employee will be given a cash advance for his/her

expense for the whole duration of the training on top of the salary.

The employee will undergo a 2-week training which includes new employee orientation, basic

functions and job scope of a newly hired. Please refer to Appendices for the sample of the New

Hire Training Schedule (Annex A). The training is all-expense paid by BDO but the employee

has the option to pay for his/her Hotel and transportation during the training. All employees who

opt to avail of company-shouldered training expenses are required to sign a Training Agreement/

Bond wherein the employee is required to render a service period of (2) years starting from the

hiring date. Is it also stipulated in the training bond that in the unlikely event that the employee

decides to leave the bank before completing the service requirement of two (2) years, the

Page 31 of 74
employee shall pay a pro-rated amount based on the investment made by the bank on their

training i.e., Total cost of training/24 months multiplied by the number of months unserved. Also

the total cost of training investment is indicated for transparency.

After the 2-week training, the will have a 30-day OJT period in a designated branch, for

observation of actual bank transactions. A senior employee of the bank will be assigned by their

immediate supervisor to guide, assist and teach the newly hired employee the day-to-day

transactions and policies to be followed in the bank.

HIRING

Banco de Oro employs only the most qualified persons for job vacancies, promotes from within

and is committed to providing each employee with opportunities to grow and develop their

skills.

1. Status of Employment

1.1 Probationary employees refer to individuals undergoing the five month trial period

of employment. After the 5 months Probationary period, the employee’s performance

is evaluated. The entry level of a newly hired employee is Client Service Associate

(CSA) Level 2.

1.2 Regular employees are those who have satisfactory completed the probationary

period and have compiled with all of the requirements.

Page 32 of 74
2. Employee Orientation

2.1 All new hires go through a basic orientation course which covers the Bank’s

history, organizational structure, objectives, services, HR policies, benefits and

other pertinent information.

2.2 The Unit Head is responsible for conducting on the job orientation which includes

performance standards and expectations on work attitude and behavior.

3. Falsification of Information

The Bank values integrity and does not tolerate falsification of references and

employment-related documents. Such acts are deemed just cause for dismissal

once discovered.

4. Conflict of Interest

Employees and officers must avoid conflict of interest situations where personal

interests conflict or appear to conflict with the interests of the Banks.

4.1 When faced with such a situation whether actual or apparent, the matter should be

reported in writing to the Department Head, copy furnished HRM.

4.2 Management will determine whether a conflict of interest exists. The ruling issued

must be complied with.

Page 33 of 74
5. Outside Employment

Employees must avoid accepting employment which encroaches into time,

concentration and off-hours availability of the person concerned.

Written approval from the Department Head and HRM is presently without the required

clearance must make full disclosure and secure approval.

The following are covered:

 part-time job

 teaching or tutoring

 consultancy

 private practice of profession

 directorship in entities other than civic, religious or professional in nature

 other similar activities that affect the availability of bank employees

6. Personal Data Update

Employees must be responsible for keeping the Bank updated on personal information

(example: changes in civil status, residence address and telephone number; number

of children, dependents, etc.) to facilitate processing of relevant and available benefits.

Page 34 of 74
7. Relatives/Next of Kin

Disclosure should be made when a director or employee has a relative employed in

BDO. Management discretion shall be exercised to ensure that there will be no

superior-subordinate relationship between employed relatives or in a control function

exercised over the business unit of a relative.

Next-of-kin relationship should also be disclosed when it begins to exist with another

employee where one exercises superior-subordinate relationship or control

relationship with the employee.

Directors and employees are responsible for identifying, assessing and managing

conflicts of interest whether actual or potential that arises in their day to day work. Full

disclosure of any conflict of interest should be made on an annual basis or as

necessary, through the annual submission of the Conflict of Interest Disclosure Form

to BDO Unibank- Human Resources Group. Any disclosed potential conflict of interest

shall be forwarded by BDO Unibank- Human Resources Group to BDO Unibank

Compliance Office for evaluation. In case of doubt about the propriety of any course

of action or find that their own interests are or may be in conflict with those of the

institution, they must disclose and seek advice from the BDO Unibank- Human

Resources Group.

Page 35 of 74
 C. Training and Development

The Bank provides various in-house programs such as orientation program for new hires, regular

training, job specific training courses, management and leadership training programs to enhance

the knowledge, working skills and managerial ability of its employees. The Bank allocates every

year a training budget for these developmental programs. In 2017, the Bank invested heavily on

training and development. Average training hours for internal and external training of staff,

managerial and senior officers were 66.54, 49.10 and 32.17, respectively. In terms of actual

number of employees trained, staff was at 21,254, managers at 16,707 and senior officers at

2,164. As compared to 2016, training hours were up by 44.59%, 185.96% and 140.07%,

respectively. The Bank spends more on continuing education of officers and staff to ensure that

they are well-equipped and effective in their functions. Culture and values, service excellence,

regulatory requirements, job knowledge as well as leadership development were the focus in

2017.

For Directors and key officers (SVP up), the Bank provided an in-house Advance Corporate

Governance Seminar on July 19, 2017 conducted by SGV/Ernst & Young as part of its continuing

education program covering the key developments in the SEC Code of Corporate Governance,

Risk Management, AML updates and Data Privacy Act. This was attended by members of the

Board of Directors and Senior Management of the Bank and its subsidiaries.

Page 36 of 74
To prepare identified officers who are potential candidates for higher positions, the Bank has the

following development programs:

1. Officers Development Program

- To qualify for ODP, the employee is nominated by his/her immediate supervisor

and approved by the Branch Head. (Please refer to the sample ODP Nomination

template in the Appendices Annex B). The employee can only be nominated if

he/she has the rank of CSA or MA Level 4 (but will be promoted the next year to

Level and Level 5). The training takes 5 weeks which includes 3 weeks of

classroom training and 2 weeks OJT period on the branches selected by the HR.

A senior officer with the same position that the ODP trainee will assume after the

training program, will be assigned to serve a trainer during the OJT period.

An ODP trainee will be required to sign a Training Agreement/Bond in which the

employee is required to render a service period of (2) years starting from the

training date. Is it also specified in the training bond that in the unlikely event that

the employee decide to leave the bank before completing the service

requirement of two (2) years, the employee shall pay a pro-rated amount based

on the investment made by the bank on their training i.e., Total cost of training/24

mos x number of months unserved. After the ODP trainee satisfactory completed

the training he/she will have a Revalida.

The Revalida is conducted in the Area Office which includes Area Heads as the

panel. Through the Revalida the Area Heads will be able to evaluate if the ODP

trainee should be promoted as a Supervisor. In cases that the ODP trainee

failed the Revalida, a second chance is given. The HR will make new schedule

Page 37 of 74
 of the second Revalida. If the ODP trainee fails the second Revalida, he/she

will not be promoted and will go back to his/her previous job function and

position.

But if the ODP trainee passed the Revalida, the trainee will have a probationary

period of 5 months in which they are supervised and evaluated by their

immediate supervisor. After which if the trainee satisfactory completed the

probationary period and have complied with all of the requirements, he/she will

be promoted as a Junior Assistant Manager 1 a supervisory position.

The HR will require the newly promoted employee to fill out the BSP

Biographical Data and Authorization for the background checking which will be

submitted to BSP. This are part of the requirement of BSP to all the promoted

employees of the bank with supervisory and managerial Level.

2. Management Development Program

- To qualify for MDP, the employee is nominated by the Branch Head. (Please

refer to the sample MDP Nomination template in the Appendices Annex C ). An

employee can only be nominated if he/she has the rank of Junior Assistant

Manager 3.

The training takes 5 weeks which includes 3 weeks of classroom training and 2

weeks OJT period on the branches selected by the HR. The Operations Officer

or the Assistant manager will be assigned to serve as a trainer during the OJT

period.

Page 38 of 74
An MDP trainee will be required to sign a Training Agreement/Bond in which the

employee is required to render a service period of (2) years starting from the

training date. Is it also specified in the training bond that in the unlikely event

that the employee decide to leave the bank before completing the service

requirement of two (2) years, the employee shall pay a pro-rated amount based

on the investment made by the bank on their training i.e., Total cost of

training/24 mos x number of months unserved. After the MDP trainee

satisfactory completed the training he/she will have a Revalida.

The Revalida is conducted in the Area Office which includes Region Heads as

the panel. Through the Revalida the Area Heads will be able to evaluate if the

MDP trainee should be promoted to manager.

When ODP trainee passes the Revalida, the trainee will have a probationary

period of 5 months in which they are supervised and evaluated by their Branch

Head. After such, if the trainee satisfactory completed the probationary period

and have complied with all of the requirements, he/she will be promoted as a

Assistant Manager a Managerial position.

The HR will require the newly promoted employee to fill out the BSP

Biographical Data and Authorization for the background checking which will be

submitted to BSP. This are part of the requirement of BSP to all the promoted

employees of the bank with supervisory and managerial Level.

Page 39 of 74
There are also trainings for re-designation of an employee. It a 5-day training that includes the

technical know-how and a functions of the new position. After the training, the re-designated

employee will undergo an OJT period of 10 days and will take an online exam. Upon completion

the employee will assume function of the new position.

Trainings are also conducted whenever the company feels the need for it or whenever a new

system, software or process are being introduced or implemented. Some of the trainings are

facilitated online in which the employee has to enroll to the courses online and answer an

online quiz. Online trainings a being closely monitored by the HR and failure to enroll and

answer the online quiz will have sanctions and penalties.

Page 40 of 74
 D. Compensation

The policies on Compensation and Salary Administration covers the maintenance of a viable

compensation plan for employees which achieves equity in pay for jobs of similar reposibilities

and consistency in the pay differentials between jobs.

BDO’s Compensation Philosophy has guided our pay practices. Built on the principles of external

competitiveness and pay for performance, the bank continues to invest resources to attract,

retain and motivate our workforce necessary to achieve the Bank’s short and long term business

goals.

Salary Administration

 Hiring Rate: Hiring rates of employees are based on the existing job salary structure of

the Bank consistent with the government policies and compliant to statutory requirements.

 Salary Structure: The bank maintains the standard salary of employees in accordance

with the job level that is competitive with those of peer banks.

 Performance Appraisal: The Bank reviews the performance of employees every end of

the year. A mid-year review is in place to ensure tracking against year-end goals/targets.

Consistent with “pay for performance”, employees are given salary increases based on

their annual performance rating in accordance with standard Bank Policies.

Page 41 of 74
Compensation Related Benefits

Compensation related benefits are based on basic pay.

1. Bonuses

The Bank grants four (4) months basic pay equivalent to the following:

1 ½ months basic pay - mid year bonus

1 ½ months basic pay - Christmas bonus

1 month basic pay - 13th month pay

2. Holiday Pay
Employees are given additional compensation for all Legal Holidays.

3. Overtime Pay
Overtime pay rates for services rendered after eight hours work are as follows:

Overtime Pay Rates (after 8 hours of work):

Regular Work Day - 130.0% of regular basic pay

Rest Day or Special Holiday - 175.5% of regular basic pay

Special Holiday falling on Rest Day - 202.5% of regular basic pay

Legal Holiday - 270.0% of regular basic pay

Legal Holiday falling on Rest Day - 351.0% of regular basic pay

Premium Pay Rates (first 8 hours of work):

Rest Day or Special Holiday - 130% of regular basic pay

Special Holiday falling on Rest Day - 150% of regular basic pay

Legal Holiday - 200% of regular basic pay

Legal Holiday falling on Rest Day - 260% of regular basic pay

Page 42 of 74
 Sundays, Holidays and Restdays:

For work performed in excess of eight (8) hours on Sundays, Rest Days or Holidays,
the Bank gives additional 5% overtime pay over and above provided by law.

Night Differential Pay:

Overtime work from 10:00 p.m. to 6 a.m. shall be given additional 10% premium or
night differential.

4. Work Related Allowances

The Bank provides specific categories of employees with the following allowances:

a. Teller’s Allowance

b. Travelling Teller’s Allowance

c. Pick-up Teller’s Allowance

d. Credit Investigator’s/Appraiser’s Allowance

e. OSU Clearing Staff Allowance

5. Food Allowance

Gift checks for groceries are given to employees on a quarterly basis.

6. Overtime Meal Allowance

Employees who render overtime service are provided with a meal allowance on top of
the overtime pay.

7. Retirement/Gratuity Pay

The Bank’s retirement/gratuity program starts to vest in five (5) years 50% to a
maximum of 200% after 20 years of service.

Page 43 of 74
 WAGE INCREASE AND BONUSES

A. WAGE INCREASE

The Bank shall grant every regular employee a monthly increase as follows:

1. Effective November 1, 2015 – 2.5% of Basic Pay plus Php 2,100.00 to all regular employees

as of November 1, 2015.

2. Effective November 1, 2016 – 2.0% of Basic Pay plus Php 1,800.00 to all regular employees

as of November 1, 2016

3. Effective November 1, 2017 – 1.5% of Basic Pay plus Php 1,700.00 to all regular employees

as of November 1, 2017

B. LONGEVITY PAY – In addition to the above wage increase, the Bank shall grant a

Longevity Pay on the First year of the CBA to all qualified employees in accordance with the

following schedule:

1. Employees with 3-5 years of service – Php 150.00 to be added to the Basic Pay

2. Employees with 6-9 years of service – Php 300.00 to be added to the Basic Pay

3. Employees with 10 years of service – Php 450.00 to be added to the Basic Pay

The grant of this salary increase shall be without prejudice to the right of the Bank to grant merit

increase to individual employees as it may see fit as provided for in Article VII Section 4. The

granting of merit increase to deserving employees is exclusively a prerogative of the Bank.

C. MIDYEAR BONUS
The Bank shall grant every regular employee a Midyear Bonus equivalent to one and one
half (1-1/2) months Basic Pay pro rata from date of permanency to the cut –off date of 31
May of each year.

Page 44 of 74
D. CHRISTMAS BONUS

The Bank shall grant every regular every regular employee a Christmas bonus equivalent to one

and one half (1-1/2) month Basic Pay, pro-rata from date of permanency to the cut-off date of

30 November of each year.

E. FOOD SUPPLEMENT

The Bank shall grant a food supplement to all regular employees payable thru Premium Sodexo

gift check for groceries in the amount of Php 1,500.00 per month.

F. HOLIDAY PAY

The Union acknowledges that the Bank is presently paying Holiday Pay.

G. RANK & FILES ANNUAL ASSISTANCE

The bank hereby grants an annual assistance to all covered rank & file employees to be paid

every March of each year in accordance with the following schedule:

For Year 2015:

Php 1,450.00 for all employees who have completed less than one (1) year of continuous

service as of November 01, 2015.

Php 1,900.00 for all employees who have completed at least one (1) year of continuous

service as of November 01, 2015.

Php 6,000.00 for all employees who have completed at least three (3) years of continuous

service as of November 01, 2015.

Page 45 of 74
 Php 7,200.00 for all employees who have completed at least six (6) years of continuous

service as of November 01, 2015.

Php 8,300.00 for all employees who have completed at least ten (10) years of continuous

service as of November 01, 2015.

For Year 2016:

Php 1,450.00 for all employees who have completed less than one (1) year of continuous

service as of November 01, 2016.

Php 1,900.00 for all employees who have completed at least one (1) year of continuous

service as of November 01, 2016.

Php 6,000.00 for all employees who have completed at least three (3) years of continuous

service as of November 01, 2016.

Php 7,200.00 for all employees who have completed at least six (6) years of continuous

service as of November 01, 2016.

Php 8,300.00 for all employees who have completed at least ten (10) years of continuous

service as of November 01, 2016.

For Year 2017:

Php 1,450.00 for all employees who have completed less than one (1) year of continuous

service as of November 01, 2017.

Php 1,900.00 for all employees who have completed at least one (1) year of continuous

service as of November 01, 2017.

Page 46 of 74
 Php 6,000.00 for all employees who have completed at least three (3) years of continuous

service as of November 01, 2017.

Php 7,200.00 for all employees who have completed at least six (6) years of continuous

service as of November 01, 2017.

Php 8,300.00 for all employees who have completed at least ten (10) years of continuous

service as of November 01, 2017.

H. RANK & FILE EDUCATIONAL ASSISTANCE

The Bank hereby grants an annual educational assistance in the amount of two thousands pesos

(Php 2,000.00) to all covered rank & file employees to be paid every April of each year.

I. Health Benefits Package

The Bank has put together a health benefits package to assist employees in the maintaining and

safeguarding their physical well-being.

1. Health Card Plan

Employees are enrolled in a reputable health card plan that provides for the following:

1.1 Annual medical check-up

1.2 Hospitalization benefits

1.3 Outpatient benefits

1.4 Dental benefits

2. Family Medical Allowance

An annual allowance is credited to the employees’ salary to cover medical, dental, or

optical expenses without the need for supporting receipts.

Page 47 of 74
 3. Bank Clinic Services

The Bank Clinic at the Head Office is open from Monday to Friday with a company

nurse ready for consultation and treatment of minor health problems and emergency

medicines during office hours. The company nurse is also responsible for processing

claims for medical benefits like hospitalization assistance and maternity benefit.

A doctor likewise available on selected days of the week.

J. Maternity Benefit

Although not required by law, the Bank pays the difference between the SSS benefit and

the employee’s regular monthly compensation to enable her to receive her normal pay for

the duration of the leave.

The maternity benefit covers only the first four (4) deliveries, abortion or miscarriage.

K. Loan Benefits

The Bank offers financial assistance to employees in the form of various types of loans.

1. Salary Loans

 Maximum term of 3 years, payable in semi-monthly installments;

 Re-availment is limited (once a year only) and can take place only when the loan has

matured;

 The requirements for co-maker can be waived under certain conditions.

2. Equity Loan

Page 48 of 74
  Available to employees with at least five (5) years of service to provide equity for the

purchase of a house and lot, or a lot , or an existing house, or to build one;

 Can also be used for house improvements, repairs or extensions.

L. Credit Card Benefit

All interested employees are issued SM Privilege cards which enable them to make

purchases at any SM outlet and pay in four installments interest-free through salary

deductions.

M. Insurance Benefit

The Bank provides Group Life/Accident Insurance to all permanent employees.

N. Uniforms

All male and female employees (below AM rank) are provided with the prescribed set

uniforms which must be worn during banking hours.

O. Death Benefits

The Bank provides financial assistance in the event of death of a bank employee or the

demise of a member of his/her immediate family; spouse, parents, children (if married);

parent, brother or sister (if single).

Page 49 of 74
 E. Performance Evaluation

The performance management System of the bank recognizes and rewards superior

performance of competent employees. It is a systematic process of tracking employees’

performance against set objectives through the annual review to identify opportunities for

improvement in order to achieve a consistently high level of productivity.

Employees’ year end performance and significant contributions in the organization are

recognized following BDO’s Merit Increase/ Promotion Program.

Employees who exhibit readiness to assume higher responsibilities and consistently perform

within the Bank’s Career Development Program such as Officers’ Development Program (ODP)

and Management Development Program (MDP).

Salient features of BDO Performance Management System Cycle are as follows:

1. Planning work and setting expectations

 KRA (Key Result Areas) are defined at the beginning of the rating period

2. Providing annual rating performance

3. Rewarding good performance

 Promotions and Merit Increase

Schedule of Performance Appraisal Review (Please refer to the sample template of PAR

for Staff and Officer in Appendices Annex D and E)

1. Probationary employees are appraised prior to permanency.

2. All regular employees are appraised twice a year.

Page 50 of 74
Result of the review are used as basis to reward exceptional performance within a prescribed

period.

Promotion

Employees who exhibits readiness to assume higher responsibilities and consistently

perform within the Bank’s standards are recognized through promotion. Promotion from within

the ranks is done subject to availability of the position.

Criteria for promotion:

a. Job performance ratings in the present position and necessary skills and attitudes

required for the next level.

b. Required training or specialized preparation for the new position.

c. Clearance from any disciplinary action that can affect promotion.

d. Everything else being equal, seniority in length of service.

2018 Merit Increase Program Guidelines for Permanent Officers & Staff (Branches &

Non-branch Business Groups)

All employees recommended to receive Merit Increase for 2018 MUST successfully pass the

eligibility criteria as follows:

 Eligibility

All permanent and active employees as of December 21, 2017

Page 51 of 74
  Par Score

Should be satisfactory levels reflecting a general achievement of performance targets

for the period covered.

 Integrity

Must be of good moral character.

Must not have been meted a suspension with penalty of more than three (3) days

during the year in review.

 Financial Management

Must have no record/s of BDO cancelled cards due to negative credit findings,

adversely classified loans or court cases in relation to management of finances at the

time of recommendation.

 Attendance And Punctuality (For Staff And Jams Only)

Must comply with the applicable attendance and punctuality standards.

All 2018 Promotion nominations shall be screened based on the following minimum

requirements:

 PAR SCORE

Should be satisfactory levels reflecting a general achievement of performance targets

for the period covered.

Page 52 of 74
  INTERGRITY

Must be of good moral character.

Must not have been meted a suspension for the year in review.

 FINANCIAL MANAGEMENT

Must have no record/s of BDO cancelled cards due to negative credits findings,

adversely classified loans or court cases in relation to management of finances at the

time of recommendation.

 ATTENDANCE AND PUNCTUALITY

Must comply with the applicable attendance and punctuality standards.

2018 KRA and BEHAVIOR PLAN FORM SUBMISSION GUIDELINES

FOR PERMANENT OFFICERS & STAFF
(BRANCHES & NON-BRANCH BUSINESS GROUPS)

All Supervising Officers shall prepare the 2018 individual KRA and Behavior Plan Form.

The accomplished plan forms must be discussed with the employees prior to the covered

rating period to ensure understanding of job/role expectations and prescribed behaviors.

FORM GUIDELINES

I. KRA Plan Form shall contain the following:

Page 53 of 74
  Key Result Area (KRA) – specific critical output requirements of the job such as

Business Development/Revenue Generation, and Accuracy. (Please refer to the

sample KRA for staff and officer in Appendices Annex F and G)

 KRA Measure & Definition – specific parameters or standards of measure to be

used as reference in gauging the success of accomplishment of KRA

 Performance Objective/Target – identifies what needs to be accomplished based

on set performance standards

 Source/Reference – source document where relevant information on actual

accomplishments/deliverables can be gathered and validated

 Percentage Weight – allocated weight for each KRA based on job impact and

significance to total task delivery. The fixed percentage weight for the total KRA is

100%

 Performance Grid – defines the PAR Rating Scale as follows:

NUMERICAL RATING ADJECTIVE RATING DESCRIPTION

Reflects SUPERIOR performances in all

5 OUTSTANDING/ aspects. Exceeds Performance Standards
EXCELENT and demonstrated prescribed behaviors
necessary to perform the role.

4 VERY Reflects ABOVE AVERAGE performance.

SATISFACTORY Consistently meets Performance and Behavior
Standards.

3 SATISFACTORY Reflects GOOD performance. Meets

PERFORMANCE Performance & Behavior Standards.

2 NEEDS Reflects INADEQUATE performance.

IMPROVEMENT Inconsistently meets Performance and Behavior
Standards.

1 FAILED Reflects POOR performance. Performance and

Behavior Standards are not met most of the time.

Page 54 of 74
II. Behavior Plan Form (BPF) shall contain the following:

 Prescribed behaviors – set of behaviors relevant to the Ratee’s role/function

For Non-Branch Business Groups

Using the Behavior Plan Form, please do the following:

1. Identify behaviors from the thirty (30) listed that are important and relevant to the

role.

2. Indicate Y in the YES column for applicable behavior/s and indicate N in the NO

column for behaviors not applicable to the role/function.

3. Immediate Supervising Officer to discuss approved prescribed behaviors with the

Ratee and request to acknowledge.

Note: During PAR, particularly Part II of the form, employees will be rated based on how

set of behaviors were demonstrated.

For Branch Banking Group

1. Immediate Supervising Officer to discuss to their respective branch personnel

approved prescribed behaviors relevant to the role/position (refer to Infocast link for the

Page 55 of 74
 applicable forms provided below) and request to acknowledge using BBG KRA and

Behavior Plan Discussion Form.

In addition, all Immediate Supervising Officers are requested to keep a copy of all the forms

(KRA Plan Form, Behavior Plan Form, and signed Certificate of Discussion of their officers and

staff) as well as provide their employees copies for reference/file.

Ratings from the originating and receiving branch and compute for the weighted average

based on the number of working days or months.

G. ON CROSS-SELLING MEASURES (BONUS POINTS)

h. Encode a rating of zero (0) on applicable Cross-Selling (SFP Bonus Points

criteria), when minimum hurdle is not met according to the established

performance rating standards.

F. LABOR-MANAGEMENT RELATIONS

NUBE-BANCO DE ORO EMPLOYEES ASSOCIATION, a legitimate labor organization

duly registered with the Department of Labor and Employment, with office address at Basement

2, North Tower, BDO Corporate Center, 7899 Makati Ave., Makati City, Herein represented by

NUBE National Vice President / Treasurer, and BDOEA President, NESTOR P. PEREZ, BDOEA

Executive Vice President, JEFREY H. JOVEN, herein after referred to as the “UNION”.

Page 56 of 74
 The UNION, through its list of membership and other pertinent evidence, has established to

the satisfaction of the BANK that represents a majority of the regular rank and file personnel

employed by the BANK in the Philippines;

It is the mutual desire of the parties hereto to promote sound, stable, industrial peace and

to advance he general welfare, health and safety and the best interests of the employer and

employees by the settlement of issues respecting terms and conditions of employment and by

providing methods for the fair and peaceful adjustment of disputes that may arise between BANK

and UNION.

The BANK and the UNION, after a series of negotiations, now desire to enter into an

agreement for the purpose of establishing, maintaining and regulating the standards of hour of

work, rates of pay and all other terms and conditions of employment in the BANK, and with a

view to facilitating the peaceful adjustment of all differences that may arise from time to time

between the parties, and promote harmony and efficiency to the end that he BANK, the UNION,

the employees and the general public may mutually benefit; for and in consideration of the

foregoing premises and the mutual agreements hereinafter set forth, the parties hereby agree

as follows:

UNION RECOGNITION AND SCOPE

Section 1. The Bank recognizes the Union as the sole and exclusive collective bargaining

agent for all permanent rank and file employees of the Bank in all matters pertaining to salaries

and wages, hours of work, employees’ benefits and allowance and other terms and conditions

of employment.

Page 57 of 74
The Bank likewise recognizes that Union officers (list attached) are duly authorized to act for and

in behalf of its members.

Section 2. The appropriate bargaining unit covered by the Agreement shall consist of all

permanent rank and file employees of the Bank below the rank of supervisors, at its head office

and branches throughout the Philippines except for the following:

2.1. Managerial employees within the scope of the definition in Book V of the Labor Code

of the Philippines, like branch cashiers and accountants and securities custodian

others holding equivalent rank;

2.2. Staff of the human Resources Group;

2.3. Staff of the Corporate Planning and Marketing Services (CPMS);

2.4. Secretaries of the Chairman, President, Chief Executive Officer, Vice President,

Assistant Vice Presidents, Corporate Secretary and Senior Officer;

2.5. Lawyers of the Legal Unit

2.6. Casual and Temporary Employees

Section 2a. All regular employees of BDO subsidiaries/ affiliates shall be covered in the

bargaining unit hereof.

Page 58 of 74
 Section 3. The Bank agrees to maintain all position within the bargain unit. Any change

shall be discussed with Union.

Section 4. The BANK fully recognizes the right of the Union in protecting its membership as

provided for in the Labor Code and the Union likewise recognizes the right of the bank in

promoting its business and operations. Any misunderstanding or violation thereof committed by

either party shall be treated in accordance with Labor Code and/or CBA.

Section 5. The Union recognizes that Chairperson has the sole prerogative to act on bank

officers in their dealings with Union, therefore any problem arising therefrom shall be reported

the Chairperson.

Section 6. Whenever an employee in promoted or transferred from an employment

category within the bargaining unit or appointed to any excluded employment category as herein

enumerated, he shall automatically be considered dropped from the union rolls and/or

automatically be considered dropped from the union rolls and/or automatically removed from the

bargaining unit herein defined from the scope of this Agreement, provided further that the

positions vacated by the transferred/promoted employee is likewise filled up if necessary and to

the extent possible. In any case, the Bank and Union shall meet and discuss.

GRIVANCE MACHINERY/ARBITRATION

Section 1. The parties agree on the principle that all disputes between the Union or any of

its members and the Bank may solved through friendly negotiations; that an open conflict in any

Page 59 of 74
form involves losses to the parties and that, therefore, every effort shall be exerted to avoid such

an open conflict. In the Furtherance of this principle, the parties have agreed to (a) provide

opportunity for discussion of any complaint, and (b) establish procedure for the processing and

settlement of grievance.

Section 2. Any dispute arising as to the meaning, application or claim of violation of any

provision of this Agreement or alleged discrimination against any employee in relation to

demotion, discharge, lay-off, transfer, assignment from one branch to another or disciplinary

action, and similar matters shall be considered a grievance, provided, that any such action shall

take effect on the date decided by the Bank without prejudice to the outcome of the grievance

machinery.

Section 3. GRIEVANCE PROCEDURE. A grievance shall be taken up during the business

hours of business days in accordance with the following procedure.

3.1 An employee who has a grievance may take up the matter in writing with their Union

Branch representative which the latter attempts to settle with their Branch/ Unit Head for

settlement or adjustment within three (3) working days after presentation of the grievance, but

the Branch Manager may ask for an extension of two (2) working days for a total of five (5) days.

3.2 When the grievance is not settled in the first step, the problem or issue is elevated to

the Bank Area Head or HRG Head, where appropriate, by the concerned employee and/ or the

Union Steward referred to in Article II Section 9 of the CBA. Should the matter remain unresolved

within (10) calendar days, subject to an extension depending on the complexity of the matter at

hand, the grievance shall be elevated to Step 3.3.

Page 60 of 74
 3.3 Should the preceding step fail, the grievance may be referred in writing to the

Grievance Committee to be settled and decided within five (5) working days from receipt thereof.

3.4 Should the preceding step fail, the dispute shall be referred to an Arbitrator to be chosen

by both the Bank and the Union, whose decision shall final, binding and executory except where

the Arbitrator committed grave abuse of discretion in making his decision, hence, the same may

be appealed to the National Labor Relations Commission pursuant to the Law.

Section 4. The composition of the grievance committee shall be as follows:

4.1 Two (2) Members from Bank

4.2 Two (2) representatives from the NUBE-BDO Chapter.

Section 5. ARBITRATION. Upon receipt of written notice of intention by either party from

the other to submit the dispute of grievance to voluntary arbitration, the bank and the Union shall

meet and endeavor to select or name a Voluntary Arbitrator within fifteen (15) working days. The

Voluntary Arbitrator shall be selected or named rom among the list of five (5) person each

submitted by the Bank and the Union by the process of elimination, one at a time, with both

parties alternating in the drawing (the first party to draw to be determined by drawing lots) until

there remains only one of the list who shall be considered by the Voluntary Arbitrator within the

afore said period. Each of them shall be free to refer the matter to the Department of Labor and

Employment for compulsory arbitration. Nothing stated herein shall be construed to confer upon

the Arbitrator any power to add to, subtract from, or modify any of the terms and conditions of

Page 61 of 74
this Agreement or supplementary agreement thereto. Arbitration fees shall be borne by and

divided equally between the bank and the Union.

Section 6. Failure to elevate any grievance within the time period above stipulated shall be

deemed a waiver thereof.

Section 7. The grievance procedure fixed above is without prejudice to informal and

simpler methods which the Bank may authorized to resolve employees’ complaints.

Section 8. The effective and efficient application of the grievance machinery and

procedures depend highly on the mutual understanding between the line officers and the Union

representatives. For this purpose, the Bank and the Union agree to conduct a joint training

periodically among the Branch Managers and Union Stewards under the supervision of the

Human Resources Group (HRG). The Branch Heads and the Union Stewards are encouraged

to practice consultation for the purpose of promoting cooperation and understanding among and

between them.

Page 62 of 74
 III. ANALYSIS AND RECOMMENDATION

A. Strengths of the Agency

 The Bank’s hiring process is streamlined. Upon hiring, the status of the employee is

already Probationary. Unlike other companies, the employee does not start with a Job

Order status or contractual status.

After the employee satisfactorily completed the five-month Probationary period, he/she will

become a regular employee.

 The Bank’s compensation plan and benefits package is competitive.

 The Bank is able to provide the clear and updated guidelines on Performance Evaluation

Metrics that are accessible to employees.

 The bank employs an automated system for employee information and other HR related

concerns.

 The bank recommends promotions of employees on the basis of objective appraisal of

their performance.

 Job functions and role of the employees are clearly defined.

 The Human Resource Group’s response to employees’ availment of Medical services is

timely.

 The Bank develops collaborative and problem-solving approaches in union management

relations.

Page 63 of 74
B. Weakness/Areas Needing Improvement

 Most of the continuing trainings are done online which has a lesser impact on employees

tan conventional formal training.

 Team building activities are only done every three years per Area which has minimal

effect on strengthening team efforts in the workplace.

 The bank mandate on service excellence and customer focus sometimes places its

employees at a disadvantage. (e.g. Overtime without pay – since overtime charges are

directly charged to the bank, requests for overtime time are avoided.)

 As soon as an employee gets promoted to a supervisory position, he/ she is no longer a

member of the Labor Union.

 Lack of job support positions that would address bottlenecks in the workplace such as

administrative work, filing, review and handling of recurring audit findings.

 There is no rotation of job functions within the branch.

Page 64 of 74
C. Recommendation

 The Bank should provide more modern and innovative ways of conducting trainings. To

be able to do so, the HR department should benchmark against the competition. Before

agreeing to support a new initiative, company leaders would always want to know what

the competition is doing and whether you’re doing more or less. This certainly holds true

for training and development; that’s why it helps to network with professional colleagues

to find out what others are doing. They should create a better feedback system for

employees, who are the best source of information about organizational performance.

They first-hand experience of what’s going on and what, if anything, should be changed.

Then, training should be aligned accordingly.

 Team building activities should be conducted every year to develop teamwork within the

workplace and to establish better relationships with co-workers.

 The HR Department should commit to strict overtime policies which allows employees

overtime pay during the workdays that require extended working hours.

 An employee promoted to a supervisory position should still be a member of the Labor

Union.

 The Bank should hire additional employees that will handle the back office work and

compliance such as filing and enhanced due diligence compliance, so the front liners can

focused on the daily operations in the bank.

 There should be a rotation of employees job function within the branch at least every two

years to stay true to the concept of universal teller/employees in the Bank.

Page 65 of 74
 IV. CONCLUSION

The purpose of this agency paper is to have an overview of the personnel management of the

agency. To have a better understanding of Personnel Management by having an assessment of

the agency’s Personnel Management Practices. The agency paper has brought about my

acknowledgement of the importance of the role of the Human Resource Department in personnel

management, without it, an organization will crumble and will not be able to meet organizational

goals. One of the function of the HR in an organization is to maximize employee performance in

service of an employer's strategic objectives. Personnel Management is primarily concerned

with the management of people within organizations, focusing on policies and on systems. HR

departments and units in an organization typically undertake a number of activities, including

employee benefits design, employee recruitment, "training and development", performance

appraisal, and rewarding (e.g., managing pay and benefit systems). HR also concerns itself with

organizational change and industrial relations, that is, the balancing of organizational practices

with requirements arising from collective bargaining and from governmental laws. The agency

paper also review the training and development practices of the agency which is done through

training programs, performance evaluations and reward programs. It also provides an overview

of the Employee relations in the agency which deals with the concerns of employees within the

organization while developing a win-win scenario for both the employee and the management.

Personnel management also focuses in developing compensation structures, family leave

programs, discounts and other benefits that employees can get. In the current global work

environment, most companies focus on lowering employee turnover and on retaining the talent

and knowledge held by their workforce. HR departments strive to offer benefits that will appeal

Page 66 of 74
to workers, thus reducing the risk of losing corporate knowledge. This can only be achieved

through an effective Personnel Management.

Page 67 of 74
 APPENDICES

Documentation

BDO HR Department- 10 Floor BDO Corporate Center Ortigas 7899 Makati Avenue, Makati City

0726.

Page 68 of 74
BDO SM Savemore Tacloban Branch

Page 69 of 74
 SURVEY QUESTIONNAIRE

Staffing Survey Questionnaire

Excellence in Staffing

Performance Development
Staffing Comments
Rating* Needs**
1. Do managers take full responsibility
for the staffing of the department
5 1
(although using assistance from the
personnel department)?
2. Does the company make it clear that
every position in the department is
5 1
open to the best- qualified individual,
either inside or outside the company?
3. Do managers make certain that
subordinates are given opportunity for 4 2
training for better position?
4. Do managers utilize appropriate
methods for training and developing 5 1
subordinates?
5. Do managers effectively practice
4 2
coaching of subordinates?
6. Do managers appraise subordinate
objectively and regularly on the basis
5 1
of performance against preselected
goals.
7. Do superiors appraise managers
objectively and regularly on their
5 1
ability to plan, organize, staff, lead,
and control?
 8. Do managers use appraisal as a
means of helping subordinates to 5 1
improve their performance?
9. Do managers select, or recommend
promotion of subordinates, on the
5 1
basis of objective appraisal of their
performance?
10. Does the organization provide
adequate and motivating 4 2
compensation and condition of work?
11. Do managers evaluate and develop
the whole organization unit (e.g., 5 1
through organization development)?
Total number of “NA” and “?” 0 0
Total number of question on which
11 11
ratings are made
Total score of questions given
52 14
ratings
Average of ratings in Excellence in
4.7 1.3
Staffing
*Performance Rating: 0 – Inadequate; 1.0 or 1.5 – below standard; 2.0 or 2.5 – satisfactory; 3.0 or 3.5 –
good; 4.0 or 4.5 – very good; 5.0 – excellent

** Developmental needs: Need no further development – 1 2 3 4 5 An extreme amount of development

needed.

Page 71 of 74
 Summary of Management Excellence

A. Performance Rating
Total No. of No. of N/A and No. of Questions Total Average
Questions “?” Answered Scores Rating
11 Staffing 0 11 52 4.7
B. Development Needs
11 Staffing 0 11 14 1.3

Summary of Evaluation: Most of the items in the staffing survey are currently practiced by the

agency - proper training and evaluation methods are in place. 8 out of 11 items garnered the

highest score of 5 and averaged 4.7 for the performance rating. Development needs averaged

1.3 with indicating minimal need for improvement. Further, items rated 2 under development

needs are normal constraints in branch banking.

Name of Organization Evaluated: BDO Unibank Inc.

Page 72 of 74
 Annex A

New Hires Training Schedule

Position: CLIENT SERVICE ASSOCIATE

Date Hired: Feb 16 and March 01, 2018
Venue: Cebu NRA Training Center
Registration: Registration 8:00 am - 8:30 pm
Program Proper: 8:30 am – 5:30 pm

DATE MODULE LOCATION

Mar 1 Thu New Employee Orientation 2F Cebu NRA
Mar 2 Fri IT Equipment/ Banking Law/ Intro to
System/UIDM/ Basic Cash Handling/ elearning
Mar 3 Sat Branch Service High Counter 1
Mar 4 Sun
Mar 5 Mon Branch Service High Counter 2
Mar 6 Tue ID Detection and Fraudulent Check Verification
Seminar
Mar 7 Wed Counterfeit Detection and Currency Redemption
Mar 8 Thu Signature Verification
Mar 9 Fri Branch Service Low Counter 1
Mar 10 Sat
Mar 11 Sun
Mar 12 Mon Branch Service Low Counter 2
Mar 13 Tue Branch Deployment

OJT: 30 days
Start of OJT: Tuesday, March 13, 2018
End of OJT: Thursday, April 26, 2018
OJT Exam: Friday, April 27, 2018

NAME OF TRAINEE: ______________________________________________

Note: Additional one day travel time for PROVINCIAL OUT-OF-TOWN TRAINEES (50
kilometers distance from the residence to Training Center)

Page 73 of 74
REFERENCES:

www.bdo.com.ph/

www.bdo.com.ph/annualreport/

www.bdo.com.ph/companydisclosures/

BDO Infocast HRM

Page 74 of 74