130 

Organizational Change Criteria

131 Workload Increase or Decrease
131.1 Increased Work
When the volume of work increases to the point where an existing organization can no longer effectively complete the work
in accordance with accepted performance standards, organizational change may be justified. Workload increases may lead
to one or more of the following organizational changes:
a. Adding a layer of management to maintain an appropriate span of control.
Example: Authorization of a distribution operations manager responsible for supervising multiple supervisors.
b. Adding supervision within an authorized, existing layer in an organization.
Example: Authorization of an additional distribution operations supervisor.
c. Adding support positions.
Example: Authorization of operations specialists or analysts to support strategies and goals.

131.2 Decreased Work
When the volume of work decreases to the point where the organization’s existing resources are underutilized, a reduction
in authorized staffing and layers of management may be justified.

132 Change in Nature of Work

A change in the requirements placed upon an organization may involve adding or eliminating specialized functions within an
authorized scope of activity. When functions are added to or removed from an established structure, it may be necessary to
modify the organizational structure.

133 Duplication of Functional Responsibility

When two or more units within an organization are responsible for accomplishing essentially the same work:
a. Accountability for performance is difficult to fix;
b. Unnecessary costs are incurred; and
c. The units may be working at cross-purposes.
In such cases, consolidation of overlapping functions normally is the appropriate remedy.

134 Inappropriate Reporting Relationships

134.1 Hierarchy of Responsibility
The tasks assigned to a subordinate unit or position within an organization should be reflected within the broader scope of
responsibility of the next higher level of management. It is inappropriate to retain a reporting relationship in which the work of
the subordinate unit or position bears no relevance to the functional responsibilities of the management level under which
the unit or position is organizationally located.

134.2 Contingent Work Relationships

When a high level of interdependence between two organizational functions makes the performance of one unit contingent
upon the performance of another, both units usually have a common reporting relationship. In this way, responsibility is
clearly fixed for ensuring that the two functions are coordinated. When highly interdependent functions report to different
control points in the organization, it may be necessary to restructure the reporting relationships.
135 Unconnected Work
Common activities and tasks requiring similar supervisory or technical skill for effective performance should be grouped
within an organizational unit or job description. When activities and tasks become too highly differentiated within a unit or
position, it may be necessary to separate them into discrete functions.

136 Inappropriate Span of Control

136.1 Factors
The complexity of a managerial function is a governing factor in establishing an appropriate span of control. When
subordinates perform similar tasks, the span of control can be broader than when they perform dissimilar tasks.

136.2 Considerations
It is not practical to prescribe upper or lower limits to the span of control in a general context. Each organizational situation
must be separately analyzed. The following principles serve as guidelines:
a. When the span is so narrow that delegation is impaired and subordinate supervisors are limited in the use of
initiative and judgment, the span should be broadened.
b. When the span is so broad that subordinates are not receiving the proper degree of management, the span should
be narrowed.

137 Change in Mission
Sometimes the mission of an organization changes so substantially that the existing structure and staffing become
inadequate. Under such circumstances, a major reassessment of existing functional responsibilities and capabilities is
required.

138 Reduction of Expenses
A comparison of work requirements with authorized staffing may reveal inefficiencies. It may be necessary to consolidate
duties and responsibilities whenever staffing resources are not being used to the fullest extent. The objective is to achieve
operating economies without adversely affecting performance

139 Completion of Transition
Organizations that have been designed around new and complex systems often move through a start-up phase before
becoming fully operational. Note that:
a. During the start-up phase, actual staffing requirements may differ from projected staffing requirements due to
specialized activation programs and related activities.
b. When possible, identify the temporary elements of a start-up operation in advance, so that temporary solutions can
be developed.
c. When the organization achieves operating stability, it may be necessary to reassess and adjust the initial structure
and staffing.
Organizational Change Analysis
141 Analysis of Work Requirements
141.1 Nature of Functions
Analyzing the nature of functions involves allocating work of the organization into separate functional components. Each
functional component should represent an aggregate of duties that logically fall within the scope of a single job description
(i.e., duties that involve similar kinds of skills, knowledge, and abilities).
At this stage, the objective is not to establish detailed position requirements, but to focus on the manner in which work can
be segmented and assigned to major functional reporting or control points within a unit.

141.2 Volume of Work
The volume of work:
a. Can be translated into the number of employees required to perform the work by using conversion factors
appropriate for the activity involved.
b. Is derived from historical data combined with economic forecasts and other relevant projections, and — whenever
possible — expressed quantitatively.
c. Is analyzed for its impact on staffing requirements in the principal areas of operating activity, as well as in
supporting functions.

142 Analysis of Skill Requirements

142.1 Purpose
The analysis of skills requirements helps managers to:
a. Establish a basis for determining selection criteria.
b. Develop a hierarchical management structure for the organization that is internally consistent and compatible with
structures in other Postal Service installations.

142.2 Method
In order to establish responsibility for work, it is necessary to assign specific duties to designated staff positions. To establish
the requirements of a position, the managers must analyze the job-related skills and experience required. This analysis
helps to identify structural implications. The first step in this process is to define job content by preparing a narrative
description, as follows:
a. State the:
1. Functional purpose of the position,
2. Scope of responsibility, and
3. Degree of supervision required.
b. Outline in detail the core duties and responsibilities performed by the incumbent. The description of each duty and
responsibility determines the skills required for efficient work performance. Use action words — such as directs,
manages, supervises, oversees, plans, and coordinates — to describe the depth of involvement and the degree of
responsibility. Action words help to differentiate the level of skill, knowledge, and ability required.
c. Analyze the functional purpose, duties, and responsibilities of the position to connect the educational disciplines,
work experience, physical capacities, and job-related skills expected of the incumbent.

142.3 Selection Criteria and Procedures

Organizational Effectiveness, Employee Resource Management, in consultation with the appropriate executive vice
president or vice president organization, determines the selection criteria for each position by issuing a qualification standard
or an interim statement of qualifications.

\ 143 Analysis of Functional Relationships

143.1 Basic Factors
The identification of work and skill requirements provides the basis for determining staffing needs. The next step is to
analyze the organizational structures to ensure that functional alignments and reporting relationships are appropriate to the
unit’s mission. The criteria used to make such a determination are identified in subchapter 130. Critically important criteria,
as outlined in previous sections, are repeated below:
a. Review functional statements and job descriptions to eliminate duplication of responsibility between subordinate
units of the organization, as discussed in 133. Where such duplication is found, functional responsibility is
assigned to the subordinate unit having dominant interests in the activity under review.
b. Group functional activities to ensure homogeneity of work as discussed in 135.
c. Establish a span of control consistent with the guidelines discussed in 136.
d. Establish a hierarchy of responsibility in vertical reporting relationships consistent with the guidelines discussed
in 134.1.
e. Align contingent work relationships so they are consistent with the concepts discussed in 134.2.

143.2 Reporting Relationships
143.21 Administrative

An administrative reporting relationship establishes a clear line of authority between positions or units in the organizational
hierarchy. The actions of the subordinate are subject to the direction and approval of the next higher level of management,
irrespective of the autonomy the latter may choose to grant to, or withhold from, subordinate levels. Subordinate positions
never report administratively to more than one higher level supervisor.
143.22 Functional

A functional reporting relationship establishes a connection between positions or organizational units at different

management levels based on the specialized nature of the function for which a mutual responsibility is shared. In this type of
situation — often referred to as an indirect reporting relationship — the higher level position or unit provides functional
guidance and support to positions or units lower in the organizational structure.
For example, Human Resources at Headquarters has functional responsibility for human resources activities in the areas.
However, these activities report administratively and directly to the vice president, Area Operations. There is no formal line
of authority in a strictly functional relationship.
143.23 Management of Reporting Relationships

The administrative head of an organization integrates all unit activities through the exercise of organizational authority.
Detailed functional expertise is usually located immediately below this level of management, where administrative authority
and functional direction are joined.
Sometimes it is necessary to separate administrative and functional reporting relationships. A separate functional reporting
relationship might be justified when:
a. The knowledge essential to effective performance is so specialized that the function can only be placed in the
higher levels of the organization (e.g., the Postal Service medical program).
b. The consequences of an incorrect decision are so great as to require continuing consultation with a higher
organizational level having policy responsibility for the functional area in question (e.g., international mail).
c. The sensitivity of the function requires total uniformity of execution throughout the entire organization (e.g., labor
relations or purchasing).
Organizational relationships are analyzed in terms of the adequacy of functional direction. Where it is appropriate, functional
reporting relationships can be formally established so that sanction channels of communication are not reflected in the
administrative structure.

143.3 Line and Staff Relationships

While line relationships are based on the exercise of organizational authority, staff relationships are founded on the exercise
of organizational influence and the authority of knowledge. While line managers are empowered to make operating
decisions, staff personnel act in an advisory role. Line managers report administratively to the next higher level of
management. Staff managers report administratively to line or staff management and often functionally to another level of
management outside and, sometimes, above the unit structure.
Staff functions are analyzed based on the following criteria:
a. Appropriate placement within the structure. If the reporting point is too low in the structure, the exercise of
influence is impaired.
 b. Extent of need. Functional expertise may be readily accessible to line management outside the immediate
structure, obviating the need for redundant internal staff.

143.4 Responsibility and Authority

A principle rule in organizational design requires authority to be commensurate with responsibility. Managers cannot be held
accountable for results over which they have limited or no control. Analyze reporting relationships to uncover any
organizational defects such as:
a. Placement of authority at one or more levels above the designated level of responsibility.
b. Placement of essential organizational resources outside the managerial control of the manager who needs them
most and who should be accountable for their use.
c. Granting overlapping authority to two or more positions or units that could lead to jurisdictional conflicts.

150 Organizational Change
151 Performance Issues
No organization is static, so managers need to ensure that structures and staffing continue to meet their unit’s objectives.
However, an organization may not perform up to expectations for reasons other than deficiencies in structures or staffing. If
the organization is fundamentally sound, allow structures and staffing to remain intact and consider other courses of action.
The causes of organizational performance issues can often be traced to one or more of the deficiencies listed below. If the
organization suffers from any of the deficiencies listed, changes in structures or staffing are not likely to correct them.
Management must address these issues directly by actions unrelated to the organizational design process. These include
deficiencies in the following areas:
a. Training.
b. Planning and goal setting.
c. Recruitment and selection.
d. Methods and procedures.
e. Controls and feedback.
f. Communication.
g. Leadership.

152 Reasons for Making Organizational Changes

Basic reasons for making organizational changes may include changes in the following:
a. Strategy, mission and vision.
b. Centralization of work or shared services concept or insourcing.
c. Consolidation of facilities.
d. Type or amount of work performed.
e. Operating procedures.
f. Reporting relationships.

153 Types of Organizational Changes

153.1 General
Proposed organizational changes are classified as major or minor, as specified in 153.2 and 153.3. Organizational change
requests can originate at any level of management. After the request has been reviewed and concurred by the next level
managers, it must be initiated by an officer or his designee for approval. Before making an official request, the requestor
should discuss it informally with higher level functional management, district or area Human Resources manager, and/or the
Manager, Organizational Effectiveness to seek further guidance.

153.2 Major Organizational Changes

Major organizational changes are initiated by an officer and implemented by Organizational Effectiveness within the
Employee Resource Management function. A major organizational change may consist of at least one of the following:
a. Consolidation: Involving the movement of operations from one or more facilities to other facilities.
b. Closure: Involving the elimination of one or more facilities.
 c. Restructure: Involving a major change in strategy within a functional group. (For example: centralization,
insourcing, shared services, decentralization, and new technology.)
Note: A major organizational change may result in the elimination of encumbered positions which may lead to a
potential Reduction in Force (RIF) impact. (See section 354, Assignment of Unassigned Employees.)

153.3 Minor Organizational Changes

Minor organizational changes are initiated by an officer and implemented by Organizational Effectiveness. A minor
organizational change may consist of at least one of the following:
a. Realignment of functional units. For example: a change in reporting relationship.
b. Realignment of work performed within a functional unit resulting in the modification of one or more job descriptions.
This may also result in the creation of new jobs.
c. Change in job titles.
d. Minor changes to a job description.
The above are not all-inclusive. A minor change may consist of other aspects concerning the specific organization.
Note: Minor organizational changes should not result in the elimination of an encumbered position.
Before making an official request, the requestor should discuss it informally with higher level functional management, district
or area Human Resources manager, and/or the Manager, Organizational Effectiveness, to seek further guidance.

154 Submitting Requests
154.1 Field Units
Managers of field units are to forward requests with appropriate documentation (see 155) through appropriate managerial
channels to the district Human Resources manager. Each level of management must concur before a request is submitted
to the next higher level.
a. The district Human Resources manager submits the request to the area Human Resources manager.
b. If it is concurred with at the area human resources level, it is submitted to the area Vice President for review and
concurrence.
c. The area vice president or area Human Resources manager submits the formal request to the vice president,
Employee Resource Management (ERM).

154.2 Headquarters Units
Managers of Headquarters units are to forward requests with supporting documentation to their next higher level manager
for review and concurrence. The next higher level manager will then submit the request to the vice president of the
functional department for concurrence. The vice president of the functional department will seek concurrence from their
Executive Leadership Team (ELT) member. The ELT member must submit the formal request to the vice president, ERM for
review and consideration.

155 Documenting Requests
The process for requesting a major or minor organizational change is described below:
a. The officer of the functional area submits a formal request to the vice president, ERM, with a copy to the general
counsel & executive vice president. The request should include supporting documentation and describe the
organizational change, its rationale, potential efficiencies, and cost savings.
b. The vice president, ERM reviews the request and forwards it to the manager, Organizational Effectiveness (OE),
for further review.
c. If OE determines the request to be a major change, it will contact the business customer to discuss the completion
of an organizational change restructure proposal packet (provided by OE).
d. If OE determines the request to be a minor change and is in agreement with the request, it will contact the
business customer to discuss, if necessary, or proceed with the requested change.
Note: Due to the potential employee impact that may result from an organizational change, OE will consult with the Law
Department to discuss any legal aspects that should be considered before proceeding with the request.
156 Approval Authority and Disposition of Requests
All organizational changes — major and minor — may be approved by the chief human resources officer or vice president,
ERM, or manager, Organizational Effectiveness.
After Organizational Effectiveness reviews the request and initiates all appropriate procedures for implementation, the vice
president, ERM may approve, approve in part, deny, or propose changes to any organizational change request.
An approved request that is ready for implementation may include one or more of the following:
a. Organizational chart showing revised reporting relationships, as applicable.
b. List of approved job titles, grades, occupational codes, and number of positions.
c. Implementation guidelines.

156.1 Approval
A request that has been approved is sent to the initiating official through appropriate channels.

156.2 Denial
A letter explaining the reasons for denying a request is sent to the initiating official, with copies provided to the appropriate
functional units.

157 Implementation
To effect a major organizational change with service-wide impact, Organizational Effectiveness coordinates the preparation
of an implementation plan with stakeholders. Functional management at Headquarters provides technical guidance, as
requested, to ensure accuracy of content and consistency with established policy. When the implementation plan is
approved, changes to organizational structure will be entered in the Organizational Management system (see 161.1).
Due to the unique circumstances of each organization, implementation plans will differ. However, most implementation plans
may include at least one or more of the following items:
a. Schedule of target dates for each phase of the plan.
b. Anticipated internal operational impacts of the modified structure and staffing plan.
c. Standard job descriptions for new or modified jobs.
d. Guidelines for consolidating duties and responsibilities.
e. Guidelines covering the transfer of functions to or from another organizational unit.
f. Clarification of new reporting relationships.
g. Instructions concerning changes affecting bargaining unit positions and consultations with the management
associations and local unions, as necessary.
h. Suggested procedures for monitoring compliance.
Note: When implementing an organizational change, the organizational change procedures in 354, Assignment of
Unassigned Employees, may need to be invoked.

354 Assignment of Unassigned Employees

354.1 Policy
354.11 Bargaining Employees

Assignment of excess bargaining employees must be in accordance with the applicable provisions of the appropriate
collective bargaining agreement.
354.12 Non-bargaining Employees

Assignment of unassigned career non-bargaining employees must be in accordance with the procedures described in 354.2,
as appropriate. Postal Service policy provides equal opportunities for all employees without discrimination because of race,
color, religion, sex, national origin, disability, or age.
354.2 Assignment of Non-bargaining Unit Employees Due to a Potential or Actual Reduction in
Force
The Postal Service has the option to apply to any individual organizational change none, one, or more of the following
provisions that are not required by reduction in force (RIF) statutes and Office of Personnel Management RIF regulations
applicable to the Postal Service.
354.21 General

354.211 Definition of Reduction in Force

A reduction in force (RIF) is the administrative process through which the Postal Service eliminates positions and accounts
for the employees who formerly occupied those positions. A RIF action occurs when an employee is released from his or her
competitive level by separation, demotion, or a reassignment requiring displacement. Release from a competitive level must
be caused by the following:
 Elimination or significant modification of existing work.
 Creation of new work.
 Reorganization.
 Transfer of function.
 An individual’s exercise of reemployment or restoration rights.
 Reclassification of an employee’s position based on the erosion of duties that will take effect after a RIF has been
formally announced in the employee’s competitive area (i.e., the area in which the employee competes for
retention during a RIF) and when the RIF will take effect within 180 days.
Note: With the exception identified above concerning the reclassification of an employee’s position, a change to lower
grade based on the reclassification of an employee’s position due to a change in classification standards or the
correction of a classification error is not a RIF.
354.212 Legal Basis for Reduction in Force

Laws governing RIF are found in Title 5, United States Code (U.S.C.), Sections 3501-3503. These laws are implemented in
the federal government through regulations issued by the U.S. Office of Personnel Management (OPM) (Title 5, Code of
Federal Regulations (CFR), 351). In the Postal Service, these laws apply only to individuals entitled to veterans’ preference
during a RIF. The legislative provisions making these laws and regulations applicable to preference eligible employees in the
Postal Service are found in Title 39, U.S.C. Section 1005 (a)(2).
354.213 Management and Human Resources’ Responsibilities

Management plans and organizes the workforce based on the strategic direction of the Postal Service. That responsibility
includes determining the type, number, and location of positions that are to be filled, abolished, or vacated (see 156). When
changes are anticipated as a result of this responsibility, management determines whether a RIF is necessary and when
such action will occur.
Human Resources is responsible for coordinating RIF avoidance strategies to exhaust all means of placement for a specific
competitive area undergoing a RIF. This responsibility includes advising and assisting management in designing a RIF
strategy and implementing management’s RIF-related decisions. Human Resources will work with all stakeholders and
responsible managers to coordinate the process associated with a reinstatement list for preference eligible employees
(see 354.27).
354.214 Coverage of Reduction in Force Procedures

RIF procedures apply to the assignment or separation of career non-bargaining employees who occupy positions that have
the potential of being impacted by, or will be directly affected by, a RIF.
These procedures apply to non-career, non-bargaining employees serving in an indefinite appointment period only to the
extent necessary to terminate their employment, or to avoid (or minimize) the impact of a RIF on career non-bargaining
employees.
Exclusion: Bargaining employees are excluded from these procedures. The assignment or separation of excess bargaining
employees is in accordance with the applicable collective bargaining agreement and applicable statutes.
354.215 Veterans’ Preference Status

Entitlement to veterans’ preference is based on the Veterans’ Preference Act of 1944, as amended, and is codified in
various provisions of Title 5, U.S.C. Employees who are eligible for veterans’ preference for purposes of initial appointment
are also eligible for veterans’ preference for RIF, except for employees who are retired members of the uniformed services.
Employees who retired from the military must meet one of several special conditions before they can be granted veterans’
preference for RIF purposes. The conditions differ and depend on whether the employees retired below, at, or above the
rank of major.
354.216 Veterans’ Preference Entitlement

Veterans’ preference eligible employees are entitled to the following:

a. Higher Retention Standing. A preference eligible employee is entitled to a higher retention standing (seniority) on a
retention register than a non-preference eligible employee during a RIF.
b. Assignment Rights. A preference eligible employee is entitled to assignment rights if the employee’s last merit
performance rating of record before separation was better than a non-contributor for RIF purposes or its equivalent
under paragraphs (1) or (2) of this subsection.
1. Bumping. A preference eligible employee may replace an employee in the same competitive area who
has a lower retention standing and occupies a position that is no more than three grade levels (or
appropriate grade interval or equivalent) lower than the position from which the preference eligible
employee is released.
2. Retreating. A preference eligible employee may replace an employee (in the same competitive area,
tenure group, and veterans’ preference subgroup), who has a lower retention standing, occupies the
same position, or a different position that was previously held by the preference eligible employee, that is
no more than three grade levels (or appropriate grade interval or equivalent) lower than the position from
which the preference eligible employee is released. A preference eligible employee with a compensable
service-connected disability of 30 percent or more can retreat to a position that is up to five grade levels
(or appropriate grade interval or equivalent) lower than the position from which he or she is released.
c. Appeal Rights. A preference eligible employee may file an appeal with the Merit Systems Protection Board (MSPB)
under the provisions of 5 CFR 351.901. For additional information, refer to the Merit Systems Protection Board’s
website at mspb.gov.
354.22 Processing Requests for Organizational Change

354.221 Evaluating the Need for Change

Requests to change a Headquarters or field organizational structure are initiated by the business function with approval of
the functional organization vice president. An organizational change is made to meet one or more of the following objectives:
a. Change in mission.
b. Change in nature of work.
c. Duplication of jobs, functions, or responsibilities within or between organizational structures.
d. Ensure the relevance and consistency of organizational structures and staffing.
Human Resources, in consultation with the business function, reviews and evaluates the specific needs for change with the
functional organization vice president to provide possible solutions (see 140 for more details).
Human Resources evaluates how the proposed changes will affect specific competitive areas and determines whether a RIF
may be necessary. If the potential for a RIF exists, Human Resources provides the business function with a preliminary
placement plan that outlines the strategies to minimize or avoid the need for a RIF.
354.222 Implementing the Change

Following completion of the evaluation process and final approval, Human Resources takes the following actions:
a. Notifies the business function of the new or modified structure and staffing changes to be implemented.
b. Develops qualification standards (knowledge, skills, and abilities) for any new positions and assigns the positions
to the appropriate competitive levels. If placement of competitive area employees into the new organization based
on competitive levels and qualification standards does not result in a potential RIF situation, the vice president and
competitive area management are advised to proceed to fill any vacant positions under the normal EAS selection
procedures.
If the organizational change does result in a potential RIF, Human Resources is responsible for coordinating RIF avoidance
or minimization strategies, conducting the RIF process, and, if necessary, coordinating with competitive area management
other placement opportunities that may be available.
354.23 Minimization Strategies for RIF Avoidance

To minimize or avoid the impact of a RIF, Human Resources, in coordination with the business function, may implement
some or all of the following actions:
a. Freeze hiring and promotion actions.
b. Separate contract employees, temporary employees, and reemployed annuitants.
c. Reassign employees:
 1. To vacant positions in the same competitive area or other competitive areas.
2. To positions within or outside the commuting area. This may be voluntary (e.g., where an employee has
responded to a vacancy announcement) or directed by management.
Note: Reassignments are not subject to RIF procedures when employees are involuntarily placed
into same level positions.
d. Cancel all detail and temporary promotion PS Forms 50, Notification of Personnel Action.
e. Terminate probationary employees.
f. Approve employee requests to voluntarily change to vacant positions at lower grades within the competitive area,
including bargaining positions.
g. Provide voluntary resignation incentives.
h. Obtain approval from OPM to offer a voluntary early retirement option.
i. Provide voluntary early retirement incentives.
j. When circumstances warrant, implement other RIF avoidance measures, provided such measures comply with
regulations and, if appropriate, the applicable collective bargaining agreements.
354.24 Providing Initial Notification and Making Preliminary Placements

354.241 Notifying Employees of a Potential RIF

If the potential for a RIF exists, management at the competitive area must meet with employees to advise them of the
situation, either individually or in groups. This meeting occurs after approval is received from Human Resources, but before
issuance of the specific RIF notice. The information provided to employees includes, if applicable:
a. A description of the new organization, including the job title and number of any new positions added, their grade
levels, and reporting relationships.
b. The number of positions by title and grade level in the organization being abolished.
c. The position titles, grade levels, or organizational function that will be directly impacted by the RIF.
d. The options available to impacted employees, including any RIF avoidance or minimization strategies that will be
used (see 354.23).
354.242 Establishing Employee Job Profile

Employees who may be impacted by a RIF must update and maintain their employee profile to apply for any available
vacant positions.
354.25 Implementing RIF Procedures

354.251 Issuing Specific RIF Notices

Human Resources issues specific RIF notices to all impacted employees within the competitive area no less than 60 days
before the RIF effective date. Each specific RIF notice either advises an employee that he or she has been placed in the
new organization, giving the position title, grade level, occupational code, and duty station location, or that he or she did not
receive a placement offer and will be separated from the Postal Service. The specific RIF notice also contains the following:
a. Information used to determine an employee’s assignment rights in the RIF, including the competitive area,
competitive level, tenure group, veterans’ preference subgroup, RIF service date, and the four most recent merit
performance ratings of record.
b. Notification of how to obtain a copy of OPM’s RIF regulations at 5 CFR part 351.
c. Information concerning saved grade and saved salary under the provisions of 415.1.
d. PS Form 999, Application for Reinstatement List, if the employee is preference eligible, did not receive a
placement offer, and was notified that he or she would be separated from the Postal Service.
e. If the employee is preference eligible and was separated or changed to a lower grade level as a result of the RIF,
information about his or her right, if any, to appeal to the Merit Systems Protection Board.
354.252 Placing Unplaced or Displaced Employees

Procedures for placing employees before the RIF effective date are as follows:
a. Preference eligible employees who are not placed based on their RIF rights and non-preference eligible
employees who are considered for any appropriate and available vacant positions remaining in their competitive
area as follows:
1. Following the issuance of the specific RIF notice, Human Resources provides the business function with
a list of employees not placed during the specific RIF action (see 354.251), and a list of vacant positions
 within the competitive area undergoing the RIF, if any. In the case of closure of an entire competitive
area, all positions are abolished and no placement opportunities remain within the competitive area.
2. The business function may place the remaining impacted employees into vacant positions as a RIF
assignment based on RIF retention standing. This process is strictly optional.
3. If the business function elects to place remaining impacted employees into vacant positions as a RIF
assignment, it must return the entire placement file to Human Resources. If it chooses not to place
remaining impacted employees, it must notify Human Resources in writing.
b. Career bargaining employees, displaced in order to afford a preference eligible employee his or her RIF
assignment rights, are reassigned in accordance with the applicable collective bargaining agreement.
354.253 Advising Employees of Options

Before the RIF effective date Human Resources meets individually, or in groups, with employees who remain unplaced to
discuss in detail the following options:
a. Non-pay, Non-duty Status. Employees who do not expect to be placed by the RIF effective date may request to be
placed in a 30-day non-pay, non-duty status, as an extension to the RIF effective date. The placement
administrator must receive this request before the RIF effective date. During the 30-day extension, employees may
continue to seek a position with the Postal Service based on the conditions specified in 354.26.
b. Compensation Alternatives. An overview of the compensation programs available to employees who will be
separated can be found in the Organizational Change/RIF FAQs on the Organizational Changes website.
354.254 Separating Remaining Employees

Employees who decline or fail to request a 30-day extension in a non-pay, non-duty status by the RIF effective date are
separated on that date.
354.26 Making Post–RIF Employee Placements

Employees placed on a 30–day extension in a nonpay, nonduty status have the following options:
a. Noncompetitive Consideration. Employees may apply noncompetitively for any vacancy at or below their current
grade within the commuting area. Employees assigned to a lower grade position are entitled to grade and salary
treatment in accordance with 415.4.
b. Voluntary Bargaining Position Placement. If employees meet the qualifications for vacant bargaining positions,
they may volunteer for placement into these vacancies subject to the approval of the manager where the vacancy
exists. Seniority and pay provisions governing such placements are in accordance with the applicable collective
bargaining agreement.
354.27 Establishing a Reinstatement List

354.271 Providing Priority Consideration to Employees

A reinstatement list (RL) identifies career preference-eligible employees who are eligible for priority consideration for
reinstatement to the Postal Service because they have been separated as a result of a reduction-in-force (RIF).
An RL is established the day after the RIF effective date if one or more employees have been found eligible for placement
on the RL. The RL remains in effect for 2 years following its establishment or until no eligible employees remain on the RL,
whichever is earlier.
Note: Acceptance of an employee’s PS Form 999, Application for Reinstatement List, and placement on the RL does
not guarantee the employee’s reinstatement to the Postal Service.
354.272 Determining Employee Eligibility

A career employee is eligible to be placed on an RL if all conditions listed below occur:

a. The employee is preference eligible for RIF purposes, as defined in section 354.215.
b. The employee received a specific RIF notice indicating that he or she will be separated from the Postal Service,
and that notice has not been canceled or rescinded. An employee who retires on or before the RIF effective date is
eligible for placement on the RL, provided he or she meets all other eligibility requirements.
c. The employee does not refuse an offer of a position under 5 C.F.R. part 351, subpart G, with the same type of
work schedule and with a representative rate at least as high as that of the position from which the employee was
or will be separated.
d. The employee’s last merit performance rating of record before separation was better than a non-contributor for RIF
purposes or its equivalent.
e. The employee submits an Application for Reinstatement List no later than the RIF effective date.
 f. The employee is at least minimally qualified for one or more of the positions identified on the Application for
Reinstatement List.
354.273 Considering Employees on a Reinstatement List

Provisions for reinstatement list consideration are as follows:

a. Eligible RL applicants are provided initial consideration before external advertisement of a vacant position within
their competitive area and all other competitive areas within commuting distance not undergoing an organizational
change/RIF action. Consideration is limited to those applicants who are at least minimally qualified for the vacant
position.
Note: A vacant position does not include positions that are filled through other special programs, such as the
restoration of individuals who served in the uniformed services and the reemployment or reassignment of
employees injured on duty who recover within one year.
b. Human Resources maintains the RL and checks the list before publishing external job postings.
c. Positions identified by eligible RL applicants on their Application for Reinstatement List form for which they are at
least minimally qualified must be:
1. Authorized positions.
2. At the same or lower grade level (or representative rate) as the position held before separation due to a
RIF action.
d. If an otherwise eligible RL applicant is found to be at least minimally qualified for a position identified on his or her
Application for Reinstatement List, he or she must be offered the position before external applicants are
considered.
354.274 Removing Employees From a Reinstatement List

An employee’s name is removed from the RL in the following situations:

a. The employee accepts a career appointment with the Postal Service or another federal agency;
b. The employee voluntarily requests, in writing to Human Resources, to have his or her name removed from the RL;
c. The employee fails to provide Human Resources with any changes in his or her address or telephone number,
thereby preventing Human Resources from contacting the employee about potential employment opportunities; or
d. Human Resources tries to contact the employee about a position with a representative rate at least as high as the
representative rate of the position from which the employee was separated, and the employee declines the
position, fails to respond, or fails to appear for an interview without having taken reasonable steps to reschedule
the interview.
For additional information or to learn more about RIF under OPM’s regulations, refer to OPM’s website; links are available
via the Organizational Change website at liteblue.usps.gov/humanresources/organizationalchanges/oc_home.shtml.

Organizational structure involves, in addition to task organizational boundary

considerations, the designation of jobs within an organization and the relationships
among those jobs. There are numerous ways to structure jobs within an organization,
but two of the most basic forms include simple line structures and line-and-staff
structures.
In a line organization, top management has complete control, and the chain of
command is clear and simple. Examples of line organizations are small businesses in
which the top manager, often the owner, is positioned at the top of the organizational
structure and has clear "lines" of distinction between him and his subordinates.
The line-and-staff organization combines the line organization with staff departments
that support and advise line departments. Most medium and large-sized firms exhibit
line-and-staff organizational structures. The distinguishing characteristic between simple
line organizations and line-and-staff organizations is the multiple layers of management
within line-and-staff organizations. The following sections refer primarily to line-and-staff
structures, although the advantages and disadvantages discussed apply to both types
of organizational structures.
Several advantages and disadvantages are present within a line-and-staff organization.
An advantage of a line-and-staff organization is the availability of technical specialists.
Staff experts in specific areas are incorporated into the formal chain of command. A
disadvantage of a line-and-staff organization is conflict between line and staff
personnel.

LINE-AND-STAFF POSITIONS
A wide variety of positions exist within a line-and-staff organization. Some positions are
primary to the company's mission, whereas others are secondary—in the form of
support and indirect contribution. Although positions within a line-and-staff organization
can be differentiated in several ways, the simplest approach classifies them as being
either line or staff.
A line position is directly involved in the day-to-day operations of the organization, such
as producing or selling a product or service. Line positions are occupied by line
personnel and line managers. Line personnel carry out the primary activities of a
business and are considered essential to the basic functioning of the organization.
Line managers make the majority of the decisions and direct line personnel to achieve
company goals. An example of a line manager is a marketing executive.
 Figure 1
Line-and-Staff Organization

Although a marketing executive does not actually produce the product or service, he or she
directly contributes to the firm's overall objectives through market forecasting and generating
product or service demand. Therefore, line positions, whether they are personnel or managers,
engage in activities that are functionally and directly related to the principal workflow of an
organization.

Staff positions serve the organization by indirectly supporting line functions. Staff
positions consist of staff personnel and staff managers. Staff personnel use their
technical expertise to assist line personnel and aid top management in various business
activities. Staff managers provide support, advice, and knowledge to other individuals in
the chain of command.
Although staff managers are not part of the chain of command related to direct
production of products or services, they do have authority over personnel. An example
of a staff manager is a legal adviser. He or she does not actively engage in profit-
making activities, but does provide legal support to those who do. Therefore, staff
positions, whether personnel or managers, engage in activities that are supportive to
line personnel.

LINE-AND-STAFF AUTHORITY
Authority within a line-and-staff organization can be differentiated. Three types of
authority are present: line, staff, and functional. Line authority is the right to carry out
assignments and exact performance from other individuals.

LINE AUTHORITY.
Line authority flows down the chain of command. For example, line authority gives a
production supervisor the right to direct an employee to operate a particular machine,
and it gives the vice president of finance the right to request a certain report from a
department head. Therefore, line authority gives an individual a certain degree of power
relating to the performance of an organizational task.
Two important clarifications should be considered, however, when discussing line
authority: (1) line authority does not ensure effective performance, and (2) line authority
is not restricted to line personnel. The head of a staff department has line authority over
his or her employees by virtue of authority relationships between the department head
and his or her directly-reporting employees.

STAFF AUTHORITY.
Staff authority is the right to advise or counsel those with line authority. For example,
human resource department employees help other departments by selecting and
developing a qualified workforce. A quality control manager aids a production manager
by determining the acceptable quality level of products or services at a manufacturing
company, initiating quality programs, and carrying out statistical analysis to ensure
compliance with quality standards. Therefore, staff authority gives staff personnel the
right to offer advice in an effort to improve line operations.

FUNCTIONAL AUTHORITY.
Functional authority is referred to as limited line authority. It gives a staff person power
over a particular function, such as safety or accounting. Usually, functional authority is
given to specific staff personnel with expertise in a certain area. For example, members
of an accounting department might have authority to request documents they need to
prepare financial reports, or a human resource manager might have authority to ensure
that all departments are complying with equal employment opportunity laws. Functional
authority is a special type of authority for staff personnel, which must be designated by
top management.

LINE-AND-STAFF CONFLICT
Due to different positions and types of authority within a line-and-staff organization,
conflict between line and staff personnel is almost inevitable. Although minimal conflict
due to differences in viewpoints is natural, conflict on the part of line and staff personnel
can disrupt an entire organization. There are many reasons for conflict. Poor human
relations, overlapping authority and responsibility, and misuse of staff personnel by top
management are all primary reasons for feelings of resentment between line and staff
personnel. This resentment can result in various departments viewing the organization
from a narrow stance instead of looking at the organization as a whole.
Fortunately, there are several ways to minimize conflict. One way is to integrate line and
staff personnel into a work team. The success of the work team depends on how well
each group can work together in efforts to increase productivity and performance.
Another solution is to ensure that the areas of responsibility and authority of both line
and staff personnel are clearly defined. With clearly defined lines of authority and
responsibility, each group may better understand their role in the organization. A third
way to minimize conflict is to hold both line and staff personnel accountable for the
results of their own activities. In other words, line personnel should not be entirely
responsible for poor performance resulting from staff personnel advice.
Line-and-staff organizations combine the direct flow of authority present within a line
organization with staff departments that offer support and advice. A clear chain of
command is a consistent characteristic among line-and-staff organizational structures.
Problems of conflict may arise, but organizations that clearly delineate responsibility can
help minimize such conflict.
SEE ALSO: Leadership Styles and Bases of Power ; Organizational
Chart ; Organizational Structure ; Organizing
Tami L. Knotts
Revised by Scott B. Droege

FURTHER READING:
Hitt, Michael, Stewart Black, and Lyman W. Porter. Management. Englewood Cliffs, NJ:
Prentice Hall, 2004.
Jones, Gareth R. Organizational Theory, Design, and Change. Upper Saddle River, NJ:
Prentice Hall, 2004.
Judge, Timothy A., and Herbert G. Heneman, III. Staffing Organizations. Boston, MA:
McGraw-Hill-Irwin, 2006.
Young, Gary J., Martin P. Charns, and Timothy C. Heeren. "Product-Line Management
in Professional Organizations: An Empirical Test of Competing Theoretical
Perspectives." Academy of Management Journal 47, no. 5: 723–735.

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