Overview
This document provides information related to operational areas. It includes definitions of relevant terms, where operational areas come from, and information on how operational areas are used, particularly in appointment letters and in layoff decisions. Operational areas are vital in maintaining operational continuity and in aligning staffing with institutional priorities.
Definitions
- Division: For purposes of this document, a UW–Madison school, college, or equivalent organizational unit (also commonly referred to as school/college/division or S/C/D).
- Layoff Group: For academic staff, a group of employees from which one or more layoffs will be made that is generally organized by positions within an operational area that perform similar functions. For university staff, a group of employees in a single title from which one or more layoffs will be made.
- Operational Area: An area of focus or function in a school, college, division, department, or office. An operational area will generally be a subset of a school, college, division, department, or office, and does not necessarily include the whole unit. Similar Titles: Positions that share the same, or predominantly similar, primary duties and responsibilities, or the same official titles of record and standard job descriptions.
Operational areas in policy
“Operational area” is a term found in Wisconsin Administrative Code, particularly UWS Chapters 10-12. These chapters emphasize the importance of clearly defined units or areas within institutions related to employment decisions. These rules necessitate defining and documenting operational areas to ensure transparency, fairness, and compliance in employment actions.
Relevant UWS Chapters:
- UWS 10: Defines academic staff appointments and their terms, including limiting an appointment to an operational area specified at the time of appointment
- UWS 11: Covers academic staff dismissal for cause, requiring clarity in organizational structure
- UWS 12: Governs academic staff layoffs due to budget or program changes, requiring identification of the affected operational area.
- UWS 5: Governs faculty layoffs and termination for reasons of financial emergency. While the term “operational area” is not explicitly used in the chapter, the principles of unit-based decision-making, seniority within departments, and reemployment rights all reflect the operational area framework. These areas are critical for ensuring that layoff decisions are structured, equitable, and legally defensible.
UW-Madison policies mirror and extend Administrative Code, and these policies require that:
- Appointment letters specify the operational area
- Personnel files include documentation of the operational area
- Layoff and nonrenewal decisions are made within the context of these defined areas
Relevant UW–Madison Policies:
- Academic Staff Policies and Procedures (ASPP) Chapter 2: Academic Staff Appointments: Refers to operational areas in definitions of various appointment types
- ASPP Chapter 3: Nonrenewal of Fixed-Term Renewable Appointments: Governs the nonrenewal process for academic staff appointments
- ASPP Chapter 5: Layoff for Reasons of Budget or Program: Governs the layoff process for academic staff appointments; stipulates reappointment rights under the operational area
- UW-5077 Layoff of University Staff: Governs the layoff process for university staff appointments; stipulates criteria by which operational areas are used to determine layoffs.
- UW-5081 Employee Personnel Files: Mandates that operational area information be included in appointment letters and maintained in personnel files
- UW-5020 University Staff Appointment Types: Specifies that rights associated with an appointment are limited to the operational area specified in the appointment letter.
- UW-5022 Temporary Employees: Specifies role of operational area in determination of concurrent or consecutive temporary employee appointments.
- UW-5083 Furloughs: Operational areas are noted in policy as a potential criterion for determining furloughs.
Operational areas in practice
An operational area is typically an identified programmatic area within a school, college, division, department, laboratory, or area of focus. An operational area is not necessarily an individual grant or funding source, or a specific supervisor.
When identifying operational areas, factors to consider are:
- the position’s responsibilities for a particular area or program
- the number of employees performing similar responsibilities, and
- the position’s physical location.
An organizational chart should play an integral role in the determination of an employee’s operational area.
How will employees know their operational area?
The employee’s appointment letter or a formal operational area notification should identify their operational area.
If an employee moves into a new position or the operational area changes, the employee should receive a letter documenting the updated operational area.
Changes to an assigned operational area may occur due to changes in an employee’s duties, a reorganization within the division, changes in research, or funding shifts.
How are operational areas tracked?
Each school/college/division may use its own method for tracking operational areas, including cost center hierarchies, supervisory organizations, or laboratory names. Regardless of the method used, it is essential that the employee’s appointment letter identifies their operational area. The appointment letter must be maintained in the employee’s personnel file.
What are examples of operational areas?
Using the tracking mechanisms listed above, an operational area may be a:
- Department, college, school or division
- Examples: Department of Chemistry, School of Journalism
- Overall administration of a department
- Example: (Department/Division) Administration
An administrative operational area may include, for example, all HR, payroll, IT, Finance, student service and/or outreach positions for the entire department. In larger areas, these functions may be identified as separate operational areas.
- Example: (Department/Division) Administration
- Research laboratory
- Example: Dr. Smith’s Laboratory, HOPE Lab, Johnson Group
- Program area within a larger research laboratory
- Example: Dr. Smith’s Laboratory – Drug Development
- Program area outside of a research laboratory, such as a center, institute or fee-for-service operation
- Example: Center for Dairy Profitability, Center on Education and Work, Asian American Studies Program, Astronomical Journal
- Off-campus physical location
- Example: Spooner Ag Research Station
- Or other defined criteria
How are operational areas used?
For academic staff, operational areas are currently used in layoffs and non-renewals for reasons of budget, program decision, or funding loss. Operational areas are also used in the university staff layoff process for reasons of lack of funds, organizational change or shortage of work.
Layoffs within an operational area are determined by layoff group. University staff layoff groups are organized by title. Academic staff layoff groups generally are organized by positions within an operational area that performs similar functions.
Layoff groups are essential for:
- Determining who is eligible for layoff
- Applying seniority rules and other criteria fairly, and
- Ensuring that decisions are not arbitrary or discriminatory
Without clearly defined operational areas, it becomes difficult to justify the decision to layoff or non-renew one employee over another.
For academic staff, operational areas are also critical in determining reemployment rights after a layoff. ASPP 5.09 describes reappointment rights for academic staff who have been laid off. Because future hiring decisions must consider these reappointment rights, it is important that the operational area is documented and maintained.
Wisconsin Administrative Code and UW-Madison policies require that employment decisions (e.g., layoffs) be made within clearly defined operational areas to ensure:
- Consistency in how decisions are applied
- Transparency in identifying which units are affected
- Fairness in determining who is subject to layoff or nonrenewal
Operational areas also help in strategic workforce planning by:
- Identifying critical functions that must be preserved
- Evaluating redundancies or overlaps in staffing
- Planning for restructuring or program redirection with minimal disruption
These are all vital for maintaining operational continuity and aligning staffing with institutional priorities.
Additional resources
Layoff Job Aid (includes information on nonrenewals as well).
Questions?
Contact your local Workforce Relations specialist.