L&S Operational Areas

Identifying Operational Areas is critical as they are what drives employee rights for a position and are used when decisions need to be made regarding staffing. An Operational Area is not necessarily an individual grant or funding source, or a specific supervisor.

When identifying Operational Areas, factors to consider are:

1. The position’s responsibilities for a particular area or program
2. The number of employees performing similar responsibilities, and
3. The position’s physical location.

UW-Madison policies mirror and extend Administrative Code which states Operational Areas need to be included in appointment letters, so they should be considered from the start of filling any position. An organizational chart should play an integral role in the determination of an employee’s Operational Area. You can reference how to pull an organizational chart via Workday here: How to download an Org Chart  

Depending on the focus of a position, those performing similar work, and the location of the position, an Operational Area may be a:

1. Department, college, school or division
   • Examples: Department of Chemistry, School of Journalism
2. 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.
3. Research laboratory
   • Example: Dr. Smith’s Laboratory, HOPE Lab, Johnson Group
4. Program area within a larger research laboratory
   • Example: Dr. Smith’s Laboratory – Drug Development
5. 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
6. Off-campus physical location
   • Example: Spooner Ag Research Station
7. Other defined criteria

Academic Staff: Operational Areas are used in layoffs and non-renewals for reasons of budget, program decision, or funding loss.  Academic staff layoff groups generally are organized by positions within an Operational Area that performs similar functions.

University Staff: Operational Areas are used in the university staff layoff process for reasons of lack of funds, organizational change or shortage of work. University staff layoff groups are organized by title.

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.

Supervisory Organizations are specific to Workday. They are reporting structures driven by who a group of employees are reporting to. More information regarding viewing and maintaining Sup Orgs can be found here: KB 156773

Operational Areas are driven by the focus and function of a position. While they can be the same as a Sup Org, they often will differ and should be considered as separate classifications.

1. An Accountant is within the Operational Area of Letters & Science Administration Budget Planning and Finance, but their Sup Org is specific to their Manager’s specific ART Finance team.
2. A Research Specialist is within the Operational Area of the Professor/PI’s lab, and the Sup Org is reporting to the Professor/PI.

How will employees know their Operational Area?

How are Operational Areas tracked?

Can Academic Staff and University Staff be in the same Operational Area?

“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:

1. UWS 10: Defines academic staff appointments and their terms, including limiting an appointment to an Operational Area specified at the time of appointment 
2. UWS 11: Covers academic staff dismissal for cause, requiring clarity in organizational structure
3. UWS 12: Governs academic staff layoffs due to budget or program changes, requiring identification of the affected Operational Area.
4. 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

1. Academic Staff Policies and Procedures (ASPP) Chapter 2: Academic Staff Appointments: Refers to Operational Areas in definitions of appointment types
2. ASPP Chapter 3: Nonrenewal of Fixed-Term Renewable Appointments: Governs the nonrenewal process for academic staff appointments
3. 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
4. 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.
5. UW-5081 Employee Personnel Files: Mandates that Operational Area information be included in appointment letters and maintained in personnel files
6. UW-5020 University Staff Appointment Types: Specifies that rights associated with an appointment are limited to the Operational Area specified in the appointment letter.
7. UW-5022 Temporary Employees: Specifies role of Operational Area in determination of concurrent or consecutive temporary employee appointments.
8. UW-5083 Furloughs: Operational Areas are noted in policy as a potential criterion for determining furloughs.