Part 1. Organization, Finance, and Management

Chapter 55. Wage and Investment

Section 2. Organizational Changes

1.55.2 Organizational Changes

Manual Transmittal

November 29, 2018

Purpose

(1) This transmits revised IRM 1.55.2, Wage and Investment, Organizational Changes.

Material Changes

(1) Extensive editorial and format changes (e.g., changing bullet lists to alpha and/or numeric lists) were made throughout this IRM section.

(2) IRM 1.55.2.1 - Updated to add Program Scope and Objectives for this IRM.

(3) IRM 1.55.2.1.1 - Added background information to provide essential information related to the procedures in this IRM.

(4) IRM 1.55.2.1.2 - Added roles and responsibilities to provide information for those who are responsible for the activities in this IRM.

(5) IRM 1.55.2.1.3 - Added terms, definitions and acronyms that are applicable to this IRM.

(6) IRM 1.55.2.1.4 - Added related resources that provide additional information to work the procedures in this IRM.

(7) IRM 1.55.2.6. - Added additional information to clarify procedures.

(8) IRM 1.55.2.6.1 - Updated the exhibit information and clarified procedures. Changed Human Capital Office to W&I WIOS.

(9) IRM 1.55.2.7.1 - Updated to address the coordination and review of Category C changes.

(10) IRM 1.55.2.7.1.1.1 - Updated to change names to current business functions.

(11) IRM 1.55.2.7.1.4 - Updated business functions.

(12) IRM 1.55.2.7.1.5 - Updated to include coordination of offices.

(13) IRM 1.55.2.8.1 - Updated to require approval levels.

(14) IRM 1.55.2.8.2 - Updated to reflect current business function names.

(15) IRM 1.55.2.8.5 - Changed business function from Business Systems Planning to Modernization Development and Delivery. Updated business systems.

(16) IRM 1.55.2.8.6 - Updated to reflect current business functions.

(17) IRM 1.55.2.8.9 - Updated to reflect current business functions.

(18) IRM 1.55.2.10 - Added additional changes requiring the IRS Commissioner’s approval.

(19) IRM 1.55.2.11 - Update to reflect current business functions.

(20) IRM 1.55.2.12.1 - Updated to reflect current business functions. Added additional requirement for the implementing office.

(21) Exhibit 1.55.2.6 - Added new exhibit for Category C Change. Renumbered remaining exhibit.

Effect on Other Documents

This IRM revision supersedes the IRM 1.55.2 dated June 17, 2015.

Audience

Program Management employees within Customer Assistance, Relationships and Education, Customer Account Services, Return Integrity and Compliance Services, and Headquarters organizations in the Wage and Investment Division preparing requests for organizational change.

Effective Date

(11-29-2018)


Carolyn Chapman
Director, Capital Management and Oversight
Wage and Investment Division

1.55.2.1 (11-29-2018)

Program Scope and Objective

  1. IRM 1.55.2, Wage and Investment, Organizational Changes, provides an overview and procedures for requesting organizational changes to and for the Wage and Investment Division (W&I) organizational structure.

  2. Purpose: The purpose of this IRM Section is to establish policies and procedures to govern the review and approval of proposed organizational changes within the Wage and Investment Division. The review, concurrence and approval process for the request will depend on the scope and magnitude of the recommended changes.

  3. Audience: Program Management employees within Customer Assistance, Relationships and Education, Customer Account Services, Return Integrity and Compliance Services, and Headquarters organizations in the Wage and Investment Division preparing requests for organizational change.

  4. Policy Owner: Director, Capital Management and Oversight (CMO)

  5. Program Owner: Workforce Organization and Transition (WOT)

  6. Primary Stakeholders: Program management and leadership staffs within Customer Assistance, Relationships and Education (CARE), Customer Account Services (CAS), Return Integrity and Compliance Services (RICS), and Headquarters organizations in the Wage and Investment (W&I) Division.

  7. Program Goals:

1.55.2.1.1 (11-29-2018)

Background

  1. The following guidance is intended to serve as a framework for managing our organizational change process. It outlines the responsibilities of key officials and provides detailed procedures for processing and evaluating proposals that may originate from many sources (both internal and external to W&I). The "goal" of this decision-driven process is to ensure that all proposals to realign elements of the new organization are properly added, planned, implemented, and evaluated.

  2. Managers are responsible for ensuring sound organizational structures by continually evaluating the effectiveness and efficiency of their business units. Managers are encouraged to streamline and maintain as "flat" an organization as possible.

  3. Once a decision is made to modify the current structure, it should be communicated and implemented in a manner that:

    • Supports the strategic vision

    • Minimizes disruption to business operations

    • Ensures the continuity of essential employee services

1.55.2.1.2 (11-29-2018)

Roles and Responsibilities

  1. The Director, Capital Management and Oversight (CMO)is responsible for overseeing the governing policy for W&I organizational changes.

  2. The Chief, Workforce Organization and Transition (WOT) is responsible for:

    • Establishing policies, procedures, standards, and controls for W&I organizational changes.

    • Ensuring compliance with the procedures.

    • Monitoring, tracking, reviewing, assessing, and implementing organizational changes.

1.55.2.1.3 (11-29-2018)

Terms/Definitions/Acronyms

  1. Definitions are added in order to establish common terminology in W&I:

    Term Definition
    Approving Official The management official authorized to approve/disapprove implementation of a proposed reorganization in W&I.
    Commissioner A title of address to the head of W&I Division. Also, the word Division should not precede Commissioner in the title. It is permitted to refer to the Division commissioner when generically distinguishing him/her from the IRS commissioner.
    Director A title of address to the head of a unit reporting to the W&I commissioner and/or an individual reporting to the head of the unit. The title "Director" is normally reserved for executives or board covered positions. Areas will be headed by directors and will be titled.

    Example:

    Director, Area 1 (Hartford) or Field Director, Submission Processing Center, Austin.
    Function All or a clearly definable group of activities performed to achieve an organization's mission. A concise statement about the purpose of an organization expressed in terms of what the organization produces and for whom.
    Organization Chart A diagram of boxes that shows the management titles of each organization and unit. Each box should contain the number of positions by pay plan, series, grade, bargaining unit status, position number, and span of control (SOC). The organization chart establishes the reporting relationships of organizations by lines between superior and subordinate organizations.
    Organizational Design A process concerned with establishing and/or changing a group of functions, reporting relationships, and workflow to achieve its mission and goals. Organizational design decisions are documented in the form of organizational charts and mission, and functional statements.
    Realignment Employees in a single organization are moved to a new organization within their business or functional unit, and there is no change in that organization’s mission or function. A realignment does not result in any impact to the employees' current position or status, e.g., series, grade, and/or work schedule.
    Reorganization A change to an organization that generally eliminates, adds, or realigns the functions or duties of an organization; specifically changes the mission, function, or organizational structure, including geographical boundaries and jurisdiction, reporting lines, office names, and managerial titles.
    Reorganization Proposal The written description and justification for a desired reorganization including the business case for the change, and other pertinent facts essential for the reviewing and approving officials to make an informed decision.
    Point of Contact Individual or office assigned primary responsibility for the development and coordination of the reorganization proposal.
    Position Management The structuring of positions into the most efficient and effective organization to accomplish the mission. Position Management is concerned with such issues as job design, career ladder development, ratio of supervisors to subordinates (SOC), excessive use of deputies and assistants, types of positions, contracting possibilities, and cost/benefit analysis.
    Transfer of Function The transfer of all or part of an existing function from one organization to another.
    Unit Any organizational component.

  2. Campus manager title includes the following:

    1. Field Director: Head of office delegated authority to oversee the overall planning, direction, timely execution of a variety of programs, the assignment, development and clearance of goals and objectives for subordinate organizations.

    2. Operations Manager: Level of management responsible for all programs under the jurisdiction of the field director; a campus expert that is called upon to participate in policy and decision making activities.

    3. Department Manager: Level of management responsible for developing and implementing necessary plans and schedules for the accomplishment of organizational objectives.

    4. Team Manager: Level of management responsible for directing, assigning, and reviewing the work of subordinate employees, planning, scheduling, and coordinating work operations.

  3. The following acronyms appear throughout this IRM:

    Acronym Term
    CARE Customer Assistance, Relationships, and Education
    CAS Customer Account Services
    CMO Capital Management and Oversight
    FTE Full Time Equivalent
    GS General Schedule
    HCO Human Capital Office
    MDD Modernization Development and Delivery
    OpSB Operations Strategy Board
    PAR Personnel Action Request
    PMO Program Management Office
    RICS Return Integrity and Compliance Services
    ROC Request for Organizational Change
    SOC Span of Control
    WOT Workforce, Organization and Transition
    W-ROC Wage and Investment Request for Organizational Change
1.55.2.1.4 (11-29-2018)

Related Resources

  1. The following lists the primary sources of guidance on organizational changes:

    • IRM 1.1.4, Organizational Planning

    • IRM 1.1.13, Wage and Investment

    • IRM 6.511.2, Position Management and Classification Policy and Operational Guidance

1.55.2.2 (06-17-2015)

Policy

  1. The following principles govern organizational design within the W&I Operating Division. Organizational structures should be designed to:

    1. Establish business practices, which provide the highest level of customer service at the lowest possible cost.

    2. Reduce overhead expenses by encouraging the use of collocated facilities, shared office space, consolidating support services, and eliminating functional duplication.

    3. Flatten existing organizational structures by eliminating fragmentation and empowering employees engaged in providing direct service to the customer.

    4. Eliminate unnecessary supervisory positions and organizational levels.

    5. Utilize the talents and capabilities of all employees.

1.55.2.3 (11-29-2018)

Submission of Proposals and Procedures

  1. There are three categories of reorganization, Category "A" , "B" and "C" . The content of the reorganization proposal package varies depending on the category of the request.

  2. Any individual in W&I may submit a reorganization proposal through the appropriate channels. However, each functional unit has procedures and processes in place that centralize this function.

1.55.2.3.1 (11-29-2018)

Inclusions for Reorganization Proposals

  1. The following are components of reorganization proposals:

  2. Statement of purpose or need: Describes the changes being proposed and the result that the organizational change is expected to achieve. Proposed changes should support the strategic direction, vision, goals and objectives of W&I.

  3. Proposed changes and the rationale behind those changes: Include and/or address (but are not limited to) the following:

    1. Budgetary costs and benefits (including subsequent years)

    2. Number of executive/managerial positions needed

    3. Overall effect on GS-301/343 staffing

    4. Number of GS-14s, GS-15s, and senior manager (SM) positions

    5. SOC and grade structure

    6. Employee labor relations issues

    7. Effective date of the change

  4. Stakeholder Engagement: Identify stakeholder engagement and what coordination went into the proposal during the early planning stages of the reorganization.

  5. Request for Organizational Change Form: See Exhibit 1.55.2-7Form 15012, Wage and Investment Request for Organizational Change (W-ROC). The form is also located on the WIOS CMO website http://win.web.irs.gov/hr/hr_org_changes.htm.

  6. Organization Charts: Include appropriate information based on category.

    1. "Category A" : Campus operations should include a copy of their Current Approved Organization Chart that reflects a 12-18 month period; if a Current Approved Organization Chart has not been established, you must submit your last quarterly working organization chart. In addition, a proposed organization chart must be provided. Headquarters (HQ) operations should include a copy of their Current Approved Organization Chart. In addition, a proposed organization chart must be provided.

    2. "Category B" : Prepare organization charts, both current and proposed, that describe in detail the current and proposed organization. See Exhibit 1.55.2-1, Example of an Organization Chart.

    3. "Category C" : Prepare organization charts, both current and proposed, that describe in detail the current and proposed organization. See Exhibit 1.55.2-1, Example of an Organization Chart.

  7. Organization Code Request Form: Located on the WIOS CMO website (http://win.web.irs.gov/hr/hr_org_changes.htm).

  8. Summary of Change: Prepare staffing charts that reflect the difference between the current and proposed staffing. List the position titles, series, and grades, showing the current and proposed staffing numbers and the net change, in column format. Highlight staffing increases or variance from existing staffing guides and justify differences. Located on the WIOS CMO website(http://win.web.irs.gov/hr/hr_org_changes.htm).

    Note:

    This component is optional. Similar information is captured in the costing worksheet.

  9. Mission and Functional Statements: Provide current and proposed mission and functional statements. Mission and functional statements must be in accordance with IRM 1.1.13, Wage and Investment, and account for all impacted functions.

  10. Costing Worksheet (Cost and benefit analysis): Compute benefits and/or dollar savings anticipated. Organizational change should result in a more efficient organization in addition to reduced costs. See Exhibit 1.55.2-3, Example of a Costing Worksheet. The Costing Worksheet is located on the WIOS CMO website(http://win.web.irs.gov/hr/hr_org_changes.htm). List and analyze the following:

    • Costs

    • Staffing

    • Benefits (particularly cost savings for personnel and support services)

    Example:

    Space, equipment, relocation, telecommunications, supplies, etc.

    Notes:

    1. Also analyze other tangible costs and benefits and separate by budget line item and address base cost adjustments, one-time costs, and revised operating costs. Explain or propose how additional information cost will be funded and identify when the funds will be required. Address whether additions or changes will increase or decrease the authorized staffing pattern (ASP); information is required by the reviewers and approving official to determine the availability or commitment of funds.

    2. Costing worksheets must be updated annually.

  11. Impact and Implementation Statement: Provide a schedule for implementation that illustrates when proposed change(s) will go into effect. Highlight milestones essential to successfully accomplishing the organizational change.

  12. Issues: Describe the issues to be resolved and propose how they are to be resolved.

    Example:

    Financial codes, Work Planning and Control (WP&C), personnel and office codes, etc.

1.55.2.4 (11-29-2018)

Request for Organizational Change (W-ROC Form)

  1. Form 15012, W&I Request for Organizational Change (W-ROC), provides a standard format to aid in processing, controlling, and coordinating internally generated proposals.

  2. The W-ROC will serve as the change control vehicle for documenting final decisions.

  3. For an example of the form and instructions, see Exhibit 1.55.2-7, Wage and Investment Request for Organizational Change (W-ROC) Form.

  4. Specific instructions for completing the W-ROC form for each category and routing of requests for management review and approval are found in the following subsections.

    Reminder:

    The W-ROC form is not an appropriate vehicle for accommodating the personal preferences or needs of individual employees, such as work/group assignments, post of duty designations, etc. Such should be handled through normal management channels in conformance with applicable human resource policies and procedures.

1.55.2.4.1 (11-29-2018)

Categories

  1. The proposed organizational change should be classified in one of three categories: "A" , "B" , or "C" , based on the nature, scope and expected impact.

    1. Category A – Apply to the simplest of requests to realign. If no adverse employee contact, consider cost neutral.

    2. Category B – Apply to significant changes, which alter reporting relationships or involve multiple business functions, e.g., CARE, CAS, and RICS, within one business operating division (BOD), e.g., W&I, that will require approval by the division commissioner. These changes must be presented to the Operations Strategy Board (OPsB).

    3. Category C – Apply to major changes, which alter reporting relationships or involve multiple BODs, such as, Small Business/Self-Employed (SB/SE), Large Business and International (LB&I), and Tax Exempt/Government Entities (TE/GE), that will require approval by the IRS commissioner. These changes must be presented to the OpSB and concurred with by the W&I Commissioner.

  2. The following subsections are general descriptions of each category and can serve as a guide for determining approval levels and the extent of pre-decisional coordination that may be required.

1.55.2.4.1.1 (06-17-2015)
Category A

  1. "Category A" proposals affect very limited components of the overall organization and costs are sustained within the approved work plan/work schedule (campuses) or within the full-time equivalent (FTE) allocation (headquarters).

  2. In "Category A" proposals, the campus director or HQ Director certifies that the change will have no known impact on other offices or programs and does not violate existing labor/management agreements.

  3. Following are examples of "Category A" changes:

    1. Establish new or temporary teams to accommodate new hires if funding was previously authorized by W&I Finance

    2. Reassign or realign employees or groups of employees to other groups or territories

    3. Collapse or combine existing teams, departments, groups, or territories

    4. Eliminate vacant positions no longer needed

    5. Change names of groups, teams, departments, etc.

    6. Capture the results of applicable position classification audits

1.55.2.4.1.1.1 (11-29-2018)
Category A - Instructions

  1. Complete the W-ROC form, Category A designation in accordance with the W-ROC template instructions; see Exhibit 1.55.2-7, Wage and Investment Request for Organizational Change (W-ROC Form).

  2. Prepare the proposed organization chart.

  3. Complete the costing template located on the W&I CMO website (http://win.web.irs.gov/hr/hr_org_changes.htm).

  4. Complete the Organization Code Request Form (Org. A Form) located on the WIOS CMO website (http://win.web.irs.gov/hr/hr_org_changes.htm).

  5. The Program Management Office (PMO), or the originator will review and perfect the package.

  6. The PMO or originator will obtain the director's approval and transmit via e-trak; then, package and hand carry to W&I Finance to obtain concurrence.

  7. The Chief, WOT will review and obtain the Directors, Capital Management and Oversight and Wage and Investment Operations Support’s concurrence, securing the organization code/naming convention, and if applicable discuss employee impact and implementation issues.

1.55.2.4.1.1.2 (11-29-2018)
Category A - Implementation

  1. CMO,WOT notifies the originator when the new organizational codes are issued and implementation of the change can begin.

    Note:

    Implementation should not begin until notification is received from CMO.

  2. The approving director, or their staff, is responsible for coordinating necessary personnel action requests (PARs) and ensuring system changes (i.e., Integrated Collection System (ICS), Examination Return Control System (ERCS), Procurement for Public Sector (PPS), and ConcurGov) are initiated and completed timely.

  3. The approving director, or their staff, is responsible for converting the "proposed" chart to the "approved" version.

  4. Upon completion of the conversion, send a copy of the current approved structure to W&I CMO for the master file.

    Note:

    To ensure the financial system is updated, please allow ample time after organizational codes are established, before submitting PARs; i.e., two pay periods.

1.55.2.4.1.2 (11-29-2018)
Category B

  1. "Category B" proposals are significant organizational changes that involve or affect multiple business units or functions within one BOD.

  2. These proposals add additional positions not previously funded, incur additional costs, or involve changes in types of positions, grade/series, program activities, work processes, or geographic locations. These types of changes require concurrence of the W&I OpSB, executive directorate, or the W&I Senior Leadership Team (SLT), and the approval of the W&I commissioner.

    Note:

    Exception of presentation of Category B ROCs will be for those organizations that are funding changes within their own allocations.

  3. Examples of "Category B" requests may include:

    • Increase in the number of higher grades (GS-14 and GS-15 nonsupervisory)

    • Increase in the numbers of overhead or staff positions (deputy, staff assistants, and series 343/301)

    • Upgrade of position or positions, not preceded by desk audit or grade structure change

    • Decrease in the supervisor to employee ratios (span of control) below the minimal acceptable level.

    • Creation of additional management layers

    • Transfer of management and program responsibility from one operating function to another

      Example:

      Transfer Business System Planning (BSP) from CMO to Business Modernization Office (BMO).

  4. "Category B" proposals must receive concurrence of the director of the function, the Director, CMO, and the Director, WIOS prior to approval by the Commissioner, W&I.

  5. Implementation dates and schedules will be established by the W&I Commissioner in consultation with the functional directors. Major workforce impact should be coordinated with the Director, CMO.

1.55.2.4.1.3 (11-29-2018)
Category C

  1. "Category C" proposals are major organizational changes in which the scope and impact directly affect other BODs, e.g., SB/SE, LB&I, and TE/GE. Exhibit 1.55.2-5., Category B & C Flow Chart.

  2. "Category C" proposals require prior approval by the IRS Commissioner in consultation and coordination with executives in other affected BODs. These changes may require coordination with several staff offices such as:

    • Policy Accountability and Talent Management and Workforce Restructuring Services

    • Facilities Management and Security Services (FMSS)

    • Communication and Liaison (C&L)

    • Legislative Affairs

    • Equity, Diversity, and Inclusion (EDI)

    • Information Technology (IT)

    • Chief Financial Officer (CFO)

    In addition, changes may require review and concurrence of Human Capital Board (HCB).

  3. Only the W&I Commissioner can make designation of "Category C" (and related recommendations).

  4. Schedules and timetables for implementation require full coordination with all operating areas and support organizations.

1.55.2.5 (06-17-2015)

Responsibilities of Functions

  1. Responsibilities are assigned in the following manner. These responsibilities may occur during the planning, proposal, or implementation phase.

1.55.2.5.1 (11-29-2018)

Initiating or Originating Office

  1. Depending on the category of the reorganization, the initiating office may be involved in any or all of the following:

    1. Coordinates with appropriate officials such as the PMO, W&I Finance, and CMO functions for assistance in planning the reorganization

    2. Prepares the proposal following procedures established in this IRM or as referenced on the W-ROC form

    3. Ensures the organizational change package has been vetted with W&I Finance prior to obtaining director’s approval

    4. Ensures coordination with officials with vested interest in the proposal, i.e., bargaining units and partnerships as appropriate

    5. Consults with W&I HCO, W&I Finance, and the human resources (consultant) specialist during the developmental stages of change request

    6. Implements or assists in the implementation of the approved organization change proposal

    7. Coordinates with Real Estate and Facilities Management and Information Technology staff to address space, property, telecommunications, computer needs, distribution/mail system changes, and security requirements

    8. Provides an approved copy of the complete proposal to CMO WOT and loads the approved package into e-trak

1.55.2.5.2 (11-29-2018)

W&I Capital Management and Oversight (CMO)

  1. Depending on the category of the reorganization, W&I Capital Management and Oversight (CMO) may be involved in any or all of the following:

    1. Reviews the proposal for completeness and accuracy of required documentation.

    2. Ensures assignment and coordination of organizational structure and cost center codes.

    3. Ensures employee impact issues are addressed.

      Note:

      Workforce Relations, Planning and Performance (WRPP) determines and assesses implementation and impact on bargaining unit employees, ensuring compliance with IRS/National Treasury Employees Union (NTEU) National Agreement provisions and/or negotiates a memorandum of understanding (MOU) as appropriate.

    4. Ensures position management and classification issues are addressed and coordinated with responsible officials.

    5. Coordinates review with staff offices such as PMO, W&I Finance, WOT, WRPP, and Learning and Education (L&E).

    6. Conducts an analysis of the proposal.

    7. Provides guidance on personnel, training, and local Labor Relations' actions.

    8. Recommends approval/disapproval of package prior to submission to the W&I SLT or W&I OpSB for input and W&I Commissioner for approval.

    9. Coordinates with FMSS to ensure personnel payroll updating, organizational titles, series, and occupational changes are made.

    10. Maintains and updates organizational charts.

    11. Coordinates change with the Director, WIOS.

    12. Monitors analyst (series 301/343) and high grade (GS-14, GS-15, and SM) positions.

    13. Ensures organizational change include organizational charts along with information to show the organization title, supervisory position title, supervisory position (reports to), organizational symbols, mission, and functional statements, and functions that report to that supervisory position that were included with the ROC supporting information to the W&I Commissioner's Office for the purpose of updating IRM 1.1.13, Wage and Investment Division.

1.55.2.5.3 (06-17-2015)

Learning and Education (L&E)

  1. Learning and Education (L&E):

    1. Assesses current training needs of the business unit(s)

    2. Forecasts future training needs

    3. Coordinates budget allocations

1.55.2.5.4 (06-17-2015)

W&I Finance

  1. The W&I Finance office:

    1. Maintains correct financial codes, and ensures payroll is correctly charged

    2. Provides advice and assistance on financial structures

    3. Coordinates changes to financial systems and officially notifies all affected financial offices

    4. Reviews, assesses, concurs and consults with the PMO or originator on the financial impact of all change request before the director approves the change

1.55.2.5.5 (11-29-2018)

Modernization Development and Delivery (MDD)

  1. Modernization Development and Delivery (MDD) reviews organizational changes, if appropriate, and determines if administrative and business systems (e.g., AMS, Legacy Components (EFDS) and RRP) are updated as necessary.

1.55.2.5.6 (11-29-2018)

Program Management Office (PMO)/Originator

  1. The PMO/originator:

    1. Prepares and implements the reorganization proposal, obtains review by approving officials, and forwards the proposal to the Director CMO, Chief Finance, WOT, and, if necessary, consults with BSP

    2. Ensures business needs are addressed and all required documentation is included with submission

1.55.2.6 (11-29-2018)

Changes Requiring the W&I Commissioner's Approval

  1. All "Category B" organizational changes must be presented to the W&I OpSB or W&I SLT for concurrence and approved by the W&I Commissioner.

  2. The business unit director (e.g., CARE, CAS, RICS), the Director, W&I CMO and the Director, WIOS will review/concur with the proposals prior to the review of the W&I Commissioner, or W&I Deputy Commissioner. See Exhibit 1.55.2-5, Category B & C Flow Chart.

  3. All proposed changes (listed below) to functions, offices, branches, operations, departments, teams, or units below Director’s level are required in writing including:

    • Establishment

    • Realignment

    • Abolishment

    • Transfer

1.55.2.7 (11-29-2018)

Changes Requiring the IRS Commissioner's Approval

  1. The following changes must be approved in advance by the IRS Commissioner because these changes may affect our internal and external customers, budget, personnel, and mission essential programs:

    • Establishment, realignment, abolishment, or transfer of division

    • Establishment, realignment, abolishment, or transfer of director level organizations

    • Establishment, realignment, abolishment, or transfer of areas

    • Changes in IRS management of SES and /or critical pay positions as part of a formal reorganization

    • Changes resulting in Directed Reassignments outside the commuting area (unless there is a mobility agreement and /or job establishment (must be encumbered position))

    • Changes requiring adverse action, the use of mitigating strategies, or resulting in a reduction in force (e.g., negative impact to employee, displaced employees)

  2. It is imperative to coordinate proposed changes with executives and representatives in other divisions.

  3. The W&I Commissioner must coordinate and concur with the request for change before forwarding it to the IRS Commissioner/Deputy Commissioner. All proposed changes are required in writing and must address the business case.

1.55.2.8 (11-29-2018)

Approval

  1. "Category A" proposals must be routed through normal managerial channels to the campus or headquarters (HQ) Director; Chief, Finance; Director, CMO; and Director, WIOS for approval and concurrence.

  2. "Category B" proposals must be routed through normal managerial channels to the campus or HQ Director; Chief, Finance; Director, CMO; and Director, WIOS prior to submission to the W&I OpSB, W&I SLT, W&I Commissioner, or W&I Deputy commissioner for approval.

  3. "Category C" proposals must be routed through normal managerial channels through the campus or HQ Director; Chief, Finance; Director, W&I CMO; and Director, WIOS prior to submission to the W&I OpSB, W&I SLT, W&I Commissioner and, the IRS Commissioner for approval.

1.55.2.9 (06-17-2015)

Implementation

  1. Once approved in writing, the implementing official, as agreed or designated by the approving official, may begin implementation.

  2. Management should allow at least six weeks to complete the implementation phase of a "Category B" or "Category C" proposal. This time will allow proper notification of offices and functions with vested interest in the reorganization. Implementation responsibilities are listed in the following subsection.

    Note:

    Category A changes are not as broad in scope or impact and may take significantly less time to implement. See IRM 1.55.2.4.1.1.1, Category A Instructions, for more information.

1.55.2.9.1 (11-29-2018)

Implementation Responsibilities

  1. Implementing Office/Official/Contact Point:

    1. Notifies support personnel and other functions to take necessary actions

    2. Coordinates Labor Relations/Employee Relations (LR/ER) issues with WRPP

    3. Coordinates talent, human resource and position management issues with WOT

    4. Revises the IRM and other governing directives

    5. Ensures actions are accomplished

  2. CMO:

    1. Ensures correct financial coding and coordinates all changes with the Chief Financial Officer staff; the financial codes are then forwarded to Agency-Wide Shared Services, Transactional Processing Operations (TPO)

    2. Coordinates change to the financial systems and notifies unit financial offices

  3. FMSS, Transactional Processing Operations:

    1. Updates organizational titles and structure codes in personnel systems

    2. Adds, changes, or deletes organizational codes in personnel systems codes; updates report formats and reports distribution list

    3. Notifies appropriate Employment Operations Associate Director when to implement changes

  4. FMSS, Employment Office (Servicing) and Servicewide HCO:

    1. Makes needed personnel changes

    2. Provides guidance on employee impact

    3. Obtains special authorities, if necessary

      Example:

      Waivers and/or extensions

  5. CMO, WRPP Liaison:

    1. Determines labor relations implications

    2. Prepares notification to the union and coordinates union bargaining proposal

    3. Assists in negotiations on the impact or implementation of the reorganization

  6. CMO, WOT:

    1. Reviews change proposals for completeness and ensures change addresses the business case

    2. Addresses mitigation strategies (reassignments, Voluntary Early Retirement Authority(VERA)/Voluntary Separation Incentive Payment (VSIP), placement programs, outplacement options)

    3. Coordinates with all that have vested interest (e.g., when the ROC is approved, provides W&I Finance with a copy of the approval)

    4. Adds new organizational chart to W&I HCO shared site

  7. W&I Equity, Diversity and Inclusion (EDI):

    1. Coordinates with LR to accomplish the following:

      1. Identify and project the impact the reorganization will have on all ethnicities, genders, and persons with disabilities

      2. Propose actions to eliminate the unfavorable impact, if necessary

      3. Develop action plans to improve strategies and negative trends, if necessary

  8. W&I Learning and Education:

    1. Determines the training needs and, if necessary, arranges reprogramming or supplementing the training budget to meet the needs

    2. Arranges for the distribution of training materials and writes guidelines

1.55.2.10 (06-17-2015)

Evaluation

  1. To determine whether a given reorganization is effective, it may be necessary for the approving official to request an evaluation. At the time of approval, the approving official decides when, how, and by whom the proposed evaluation plan will be carried out.

Exhibit 1.55.2-1

Example of an Organization Chart

The preferred formats for organizational charts are: Microsoft PowerPoint, Microsoft Word, and Microsoft Visio.

This is an Image: 37989007.gif
 

Please click here for the text description of the image.

Exhibit 1.55.2-2

Example of a Summary of Changes Template

The Summary of Changes Template is available on the W&I HCO website (http://win.web.irs.gov/hr/hr_org_changes.htm).

This is an Image: 37989008.gif
 

Please click here for the text description of the image.

The information below provides description for the above graphic as well as instructions for completion of the template.

Instructions for Summary of Changes Template

1. Name of Agency or Staff Office - Enter the name of the agency or staff office.

2. Grades - List by grade for all units and/or functions identified.

3. Current - Enter a summary of current FTEs for all units and/or functions identified.

4. Proposed - Enter a summary of proposed FTEs for all units and/or functions identified.

5. Variance - Enter the difference between proposed and current FTEs.

6. Annual Costs - Enter a summary of current annual costs, proposed annual costs, and difference between current and proposed annual costs for the Current fiscal year (FY). Cost should be broken down by "Salary and Benefits" and "Other" . "Other" includes travel, supplies, and equipment costs related to the identified FTEs.

Note:

A reduction in FTEs and salary and benefit costs usually results in a reduction in "Other" costs.

7. Supervisor/Employee Ratio - Enter a summary of current Supervisor to Employee Ratio and proposed Supervisor to Employee Ratio.

Note:

The numbers should equal the actual staff years before and after the proposed reorganization. Assume that all Senior Executive Service (SES) and senior level positions are filled when completing the FTE information.

Exhibit 1.55.2-3

Example of a Cost Analysis Worksheet

FY 2015 Position Costing Worksheet Instructions

See the W&I HCO website (http://win.web.irs.gov/hr/hr_org_changes.htm) for all worksheets, spreadsheets, and additional information referenced below for salary tables not included in this exhibit.

General Instructions: The worksheet needs to be filled out for each Organizational Change Request following the specific instructions below. Salary Tables provide a representative salary rate for each position at step five of the grade or mid level of the pay band for each of the geographic localities, please do not adjust. In addition, spreadsheets used for these purposes calculate the total annual salary for the current and proposed organization, along with benefits, and the variance between the current and proposed organizations.

Specific Instructions:

  1. Provide the financial information only for the area(s) affected by the request.

  2. In cell A4 of the worksheet, type in requesting organization's name. The worksheet allows the user to select a location for this item.

  3. In Cell B5, select (from the drop down list) the geographic location of the organization. This is used to determine average salaries based on locality pay. The default is Rest of US for multiple locations or for areas not listed.

  4. In Cell B6, select (from the drop down menu) the date the organizational change is effective. Leave blank if not effective until the next fiscal year.

  5. Provide the current (Columns B through F) and proposed (Columns J through N) total number of positions by payband and grade level only for the area(s) affected by the request.

  6. Once complete, print the Worksheet spreadsheet and include it in the Organizational Change Package for review and signature.

This is an Image: 37989012.gif
 

Please click here for the text description of the image.

Exhibit 1.55.2-4

Category A (Streamline) Flow Chart

This is an Image: 37989013.gif
 

Please click here for the text description of the image.

Exhibit 1.55.2-5

Category B & C Flow Chart

This is an Image: 37989014.gif
 

Please click here for the text description of the image.

Exhibit 1.55.2-6

Category C Change Checklist

The Category C Change Checklist

This is an Image: 37989017.gif
 

Please click here for the text description of the image.

This is an Image: 37989018.gif
 

Please click here for the text description of the image.

This is an Image: 37989019.gif
 

Please click here for the text description of the image.

This is an Image: 37989020.gif
 

Please click here for the text description of the image.

Exhibit 1.55.2-7

Wage and Investment Request for Organizational Change (W-ROC Form)

The Wage and Investment Request for Organizational Change form is available via the W&I HCO website (http://win.web.irs.gov/hr/hr_org_changes.htm).

This is an Image: 37989015.gif
 

Please click here for the text description of the image.

This is an Image: 37989016.gif
 

Please click here for the text description of the image.

INSTRUCTIONS

The “Purpose” includes a brief statement outlining the operational statement or programmatic reasons for the proposed change. Organizational change proposals should directly support the mission, strategic vision, goals and objectives of W&I.

Identify the business need and the result that the organizational change is expected to achieve. Ensure the changes relate to the mission and are directly supported by mission, Strategic Vision, Concept of Operations (CONOPs), goals and objectives.

The “Description” summarizes the proposed change and expected impacts, including the following:

  • total number of affected employees series, grade, title, and location

  • budgetary costs and/or savings (including subsequent years)

  • changes in the number of executive/managerial positions, span-of-control, and grade structure changes

  • labor relations issues that could require discussions or negotiations with NTEU.

“Affected Office and Systems” identifies other organizational components (both within and outside W&I), business, operational, and/or administrative systems that would be affected.

  • Examples of operational and administrative systems that could require realignment include the following:
    ♦ Automated Collection System (ACS)
    ♦ Automated Underreporter System (AUR)
    ♦ Integrated Data Retrieval System (IDRS)
    ♦ Travel Reimbursement and Accounting System (TRAS)
    ♦ Requisition Tracking System (RTS)
    ♦ HR Connect
    ♦ TAPS/TIMIS
    ♦ WP&C

Note:

These systems may require realignments to approval path and user profiles. Links to other systems should also be identified.

The “Originator” field identifies data for the sponsoring manger or executive. The “Originator” must be either a Director or a direct report. That is, while Territory Managers may propose or initiate a W-ROC, the “Originator” should be no less than one level below the Operating unit Director level.

Example:

Functional Director, CARE, SPEC; Director, Area 1

The “Contact Point” field identifies data for the individual employee assigned primary responsibility for development and coordination of the W-ROC. This contact will serve as the originating Director’s liaison with HCO and all other offices included in the routing, concurrence, and implementation stages of the approval process. The contact, who may be a manager or staff analyst, should have complete knowledge and understanding of the proposal and direct access to the sponsoring executive.

The “Approval/Concurrence” field establishes separate routing paths for concurrence/approval of the three different categories ("A" , "B" , and "C" :).