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U.S. Department of Energy POLICY
Washington, D.C. DOE P 111.1
8/27/96

SUBJECT: DEPARTMENTAL ORGANIZATION MANAGEMENT SYSTEM

PURPOSE AND SCOPE

Public Law 95-91, 42 United States Code 7101, Department of Energy Organization Act, Section
642 gives to the Secretary of the Department of Energy the responsibility to approve organization
changes affecting the number, designation, or mission of Departmental Elements and to approve
the addition, deletion, or transfer of missions and/or functions of or between Departmental
Elements. In order to streamline the organizational change process, the Secretary has delegated
to the Heads of Departmental Headquarters and Field Elements the authority to approve
organization changes.

POLICY

The policy of the Department of Energy is to:

1. Organize the Department of Energy and its Elements in an efficient manner, in keeping
with good management practices and available resources, to effectively accomplish
Departmental mission requirements.

2. Enable Heads of Departmental and Field Elements to establish, alter, consolidate or
discontinue such organizational units as he/she may deem to be necessary or appropriate.

3. Ensure that bargaining unit obligations, as prescribed in law, regulation, or contract, with
a recognized bargaining unit are met prior to the implementation of any organizational
change.

RESPONSIBILITIES

Heads of Departmental Elements are responsible for approving organizational changes affecting
sub-elements within their organization. This approval authority may be further delegated to an
official(s) one level below the Head of the Departmental Element. Organizational changes
considered to be significant, including all involving second tier organizational components, should
be reported to the Secretary of Energy at least two (2) weeks in advance of the proposed effective
date. Information of interest to the Secretary includes the improvement in supervisor to employee
ratios, elimination of management layers, change to average grade level, process improvements,
increased efficiency, other management concerns and initiatives, and the anticipated benefits that
are expected from the organizational change. Also, please send a copy of this notification to the
Office of Organization and Management through the Assistant Secretary for Human Resources
and Administration and to the Associate Deputy Secretary for Field Management when the
change involves a Field Element.

The Assistant Secretary for Human Resources and Administration, through the Office of
Organization and Management, is responsible for assigning and maintaining organization codes
and mail routing symbols for all organizations, and maintaining a central repository for the mission
and function statements and organization charts for all Departmental Elements. The office can
provide consultation services to all Departmental Elements contemplating organizational changes.

In order to assure timely implementation of approved organization changes, Departmental
Elements are advised to submit an organizational change package, including an organization chart
for the proposed organization, and revised mission and function statements for affected
organization components, to the Office of Organization and Management at least two (2) weeks
prior to the planned effective date. This will assure that changes to organization codes and mail
routing symbols can be processed in a timely manner.

HAZEL R. O'LEARY
Secretary of Energy