State of California
   
   M E M O R A N D U M
   
   REFERENCE CODE:
   PML 96-029
   
   DATE:
   June 25, 1996
   
   TO:
   Labor Relations Officers
   Personnel Officers
   
   FROM:
   Department of Personnel Administration
   Classification and Compensation Division
   
   SUBJECT:
   Mid-Management Reductions
   
   
   CONTACT:
   Joe Broderick
   (916) 324-9397
   Office Vision:  DPA (JABRODER)
   Internet:  JABRODER@SMTP.DPA.CA.GOV
   Fax (916) 327-1886
   
   
   
   
   The Mid-Management Reduction Program conducted from
   January 1, 1994 through June 30, 1995 resulted in the
   reduction of nearly 1,850 managers and supervisors.
   
   The Department of Personnel Administration (DPA) has
   continued to stress the advantages of flatter
   organizations and has encouraged departments to pursue
   such structures wherever feasible.  Numerous departments
   are currently planning to move in this direction and have
   requested assistance in implementing their plans.  The
   Legislature is also interested in flatter organizations in
   State departments and has discussed establishing a
   mandatory statewide ratio of managers/supervisors to
   workers.  It appears that this issue will not fade in the
   immediate future.
   
   During the Mid-Management Reductions, DPA developed a
   system to red circle the benefits of mid-management
   employees who demoted.  This was a critical step to induce
   incumbents to demote without having to implement the time-
   consuming, costly layoff process.  Departments have
   requested that DPA reinstitute the red circle benefit
   process to assist in their current reorganizations.
   
   DPA will approve the red circling of the benefits of
   managers and supervisors when the following two conditions
   are met:
   
   1.     A manager or supervisor demotes to a rank-and-file
   class; and
   
   2.     The managerial or supervisory position is abolished
             or reclassified to a rank-and-file class. 
   
   The following Collective Bargaining Identifier (CBID)
   Codes will be used to effect the red circled benefits:
   
   1.     CBID Code E77 - exempt managers who demote to rank-
             and-file classes
   
   2.     CBID Code E67 - exempt supervisors who demote to
             rank-and-file classes
   
   3.     CBID Codes E01 through E21 - nonexempt managers and
             supervisors who demote to rank-and-file classes
   
   Managers and supervisors whose benefits are red circled
   will be entitled to any future enhancements to the
   managerial or supervisory benefit packages.
   
   Any manager or supervisor will be eligible for the red
   circled benefits if the two conditions in this memorandum
   are met and he or she will continue to receive the
   benefits until he or she returns to a manager or
   supervisor class or leaves the appointing power who
   requested the red circle.  If the manager or supervisor
   leaves the appointing power and moves to a different
   appointing power the continuation of red circled benefits
   will be permissive.
   
   Please contact your assigned Classification and
   Compensation Division analyst at DPA, if you have any
   questions. 
   
   
   
   
   Mike Vargas
   Program Manager