TO:	All Heads of Departments and Agencies The Chairman, Civil Service Commission The Budget Commissioner The Chairman, Career Executive Service Board

WHEREAS, national development and modernization are the overriding concerns of the government at present;

WHEREAS, such efforts are primarily implemented through the administrative system and it is therefore of the essence that the capability and effectiveness of such system be strengthened and upgraded;

WHEREAS, this can be achieved not only through structural revamp and policy reformation but likewise through the adoption of better and more effective techniques of management;

WHEREAS, under the present program of the government being implemented by the Career Executive Service Board, key officials of the government have been exposed to the concept of Management by Objectives;

WHEREAS, experiences in various department and agencies of the government such as the Department of Health, Department of Social Services and Development, National Economic and Development Authority, Government Service Insurance System, and the Department of Public Highways, among others, indicate that Management by Objectives—adapted to prevailing organizational environments has been very effective in marshalling organizational resources towards the achievement of results;

WHEREAS, the Civil Service Commission jointly with the Development Academy of the Philippines and the U.P. College of Public Administration have conducted a seminar-workshop on this management system and has crystallized the view that its gradual and adaptive use would make government operations more effective;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the.Philippines, do hereby direct:

1. All heads of departments and agencies shall encourage the adoption of Management By Objectives (MBO), modified in accordance with organizational requirements, in their respective offices and to   lend full support to such effort.
   
   Towards this end, they shall:
   
   

   (a)	Provide for the training and development of their employees on Management By Objectives to pave the way for the installation of the system and to imbue the employees with a high level of commitment to MBO; and
   (b)	Improve the existing reporting and monitoring systems in their respective offices.

   
   
2. The Budget Commission shall take steps to see to it that:
   
   

   (a)	The budget is reoriented towards the adoption of MBO; and
   (b)	Funds are provided for its implementation in the departments and agencies.

   
   
3. The Civil Service Commission shall likewise:
   
   

   (a)	Take the necessary steps to effect linkage between MBO and such personnel programs as performance evaluation promotion and training; and
   (b)	Continue to make studies on similar policies and practices designed to improve the civil service.

To further assure the implementation and integration of MBO, an Executive Council headed by the Chairman of the Civil Service Commission with the Budget Commissioner and Career Executive Service Board Chairman or their representatives as members, is hereby created.  This Council shell, more specifically, be responsible for providing guidance and direction, through appropriate rules and policies, to the department and agencies.

The Council shall be assisted by a technical staff, each of the members of which shall also come from the offices represented in the Council.  The Management Office of the Budget Commission shall monitor the extent and results of the implementation of the program.

Done in the City of Manila, this 1st day of October, in the year of Our Lord, nineteen hundred and seventy-six.