1.53.1 Managing Organizational Change

Manual Transmittal

August 02, 2022


(1) This transmits a revised IRM 1.53.1, Managing Organizational Change, Small Business and Self-Employed Division.

Material Changes

(1) Editorial and format changes were made throughout this IRM section. Additional information may be found on the SROC SharePoint.https://organization.ds.irsnet.gov/sites/SbseHCOWFPR/LR/SROC/default.aspx

(2) IRM - Revised information in Introduction section.

(3) IRM - Added Program Scope and Objective section.

(4) IRM - Renamed Purpose/Guiding Principles section to Background and information was revised. Removed Directives section.

(5) IRM - Added Policy section.

(6) IRM - Renamed Responsibilities section to Roles and Responsibilities and information was revised.

(7) IRM - Added Definitions section.

(8) IRM - Added and revised information in Organizational Change Categories section.

(9) IRM - Added Documents Required for SROC Submission section.

(10) IRM - Moved and revised Review and Approval section.

(11) IRM - Moved and revised Implementation section.

(12) IRM - Added Related Resources section.

(13) Removed Exhibits 1.53.1-1 through 1.53.1-5. Current forms can be found on the SROC SharePoint.

Effect on Other Documents

This IRM supersedes IRM 1.53.1 dated August 1, 2007.


SB/SE Division

Effective Date


Rashaunda Simmons
Director, Human Capital Office
Small Business/Self-Employed Division


  1. On October 1, 2000, Small Business/Self-Employed (SB/SE) officially stood-up as part of the new, modernized IRS. As the second largest Business Operating Division (BOD), SB/SE has approximately 21,000 IRS employees engaged in the full range of programs associated with tax administration.

  2. The SB/SE Request for Organizational Change (SROC) process has been in place since February 2001 and is administered by the SB/SE Human Capital Office (SHCO). A review of this IRM was initiated to identify areas for improvement and incorporate revisions to the organizational change process. Accordingly, the SB/SE organizational change policy and procedures have been refined to align the current business needs with customer demands.

Program Scope and Objective

  1. IRM 1.53.1, Managing Organizational Change, provides an overview and procedures for requesting organizational changes to the SB/SE organizational structure.

  2. Purpose: This IRM Section is to establish standardized policies and procedures to govern the review and approval of proposed organizational changes within the SB/SE Division. The review, concurrence and approval process for the request will depend on the scope and magnitude of the requested changes.

  3. Audience: Employees and managers in the SB/SE Division preparing requests for organizational changes:

    • Collection

    • Examination

    • Operations Support

    • Office of Fraud Enforcement (OFE)

    • Office of Promoter Investigations (OPI)

  4. Policy Owner: Director, SB/SE Human Capital Office (SHCO).

  5. Program Owner: Leadership Development and Support Office (LDSO) located within SHCO.


  1. The purpose of the SROC program is to serve as the means for documenting approval of SB/SE organizational design changes. The SROC process is the first step that should be taken to obtain final approval of the request for organizational change. The SROC process is not intended as a replacement for the routine processes which are already in place to secure funding of additional positions, upgrades, etc.

  2. The objective of this process is to provide consistency and ensure that every proposal to reorganize the current structure of SB/SE is properly evaluated, approved and implemented.

  3. The SROC program ensures all proposed changes adhere to current position management and classification guidelines and proper notification has been provided to National Treasury Employees Union (NTEU).

  4. The SROC program is required to request new organizational codes, rename or deactivate organizational codes.

  5. The guidance is intended to serve as a framework for managing the organizational change process. It outlines the responsibilities of key officials and provides procedures for processing and evaluating proposals. The processing will differ depending upon the type of organizational change request.


  1. Organizational changes should improve the effectiveness and/or efficiency of an organization through the optimum use of staff and resources, while accomplishing organizational goals and objectives.

  2. The following principles govern organizational design within the SB/SE Division. Organizational structures should be designed to:

    • Establish business practices which provide the highest level of customer service at the lowest possible cost

    • Eliminate unnecessary supervisory positions and organizational levels

    • Utilize the talents and capabilities of all employees

  3. Once a decision is made to modify any current structure, it should be communicated and implemented in a manner that:

    • Supports the Strategic Plan

    • Minimizes disruption to business operations

    • Ensures the continuity of essential employee services

    • Promotes efficiency within SB/SE

  4. The Deputy Commissioner for Operations Support (DCOS) instituted a six-month rule that freezes subsequent transitions affecting the same employees. Business units are not permitted to submit an SROC when there are changes in the employees’ work, organizational structure, or transition efforts for six months from approval of the prior SROC.

    Exceptions to the Six-Month Rule:
    When there is no change in organizational codes
    When there is only a change in the organizational name
    Movement of an employee or group of employees corrects a staffing imbalance or Span of Control (SOC) issue, where the resources did not materialize as originally planned by the SROC and there is no change in working conditions to the employees being realigned/reassigned (e.g., series, grade or work)

Roles and Responsibilities

  1. The SB/SE Commissioner has designated the Director, SHCO, as the responsible Executive for overseeing the governing policy for SB/SE organizational change proposals to meet these objectives and ensure full and open communication at all levels. Within SHCO, the Chief, LDSO will serve as the focal point for controlling and coordinating organizational change proposals. In addition, LDSO will serve as the official repository of all documentation associated with organizational change proposals and decisions.

  2. SB/SE Executives are responsible for ensuring sound organizational structures by continually evaluating the effectiveness and efficiency of their business units.

  3. The SROC process only approves the organizational design change. Once the SROC has been approved, the implementation of the new design (e.g., filling positions) must be done in accordance with current Finance and Position Management Guidelines. Furthermore, after a change has been approved, it is the responsibility of the initiating SB/SE Executive to ensure that the change is properly implemented, all applicable systems have been updated and any Labor Relations issues have been resolved prior to implementation.


  1. Approval Authority & Limitations: The levels of review and approval for SROCs will vary due to the nature of the request. Once the SROC has been approved, the implementation of the new design (e.g., filling positions) must be done in accordance with current Finance and Human Capital guidelines.

  2. Approving Originating SB/SE Executive: The SB/SE Executive who promotes the organizational change and ensures that it is properly implemented subsequent to approval.

  3. Approving SB/SE Executive: The next level SB/SE Executive above the Approving Originating SB/SE Executive.

  4. Business Case Memo: Memorandum prepared by the originating office and included in the SROC package outlining the justification for the organizational change as required by Corporate Human Capital Office (CHCO). The business case includes the desired outcome, and other facts (e.g., workforce plan) essential for the approving official to make a well-informed decision.

  5. Classification: The analysis and evaluation of a position to include pay category, title, series and grade level.

  6. Directed Reassignment: An involuntary action initiated by the agency to direct the movement of an employee from one position to another without promotion or change to lower grade (CLG) (e.g., movement to a new occupational series, or to another position in the same series and grade level), where an employee and their position is realigned to a location outside of the commuting area.

  7. Functional Statements: Statements that clearly define the purpose and responsibilities of each segment of the organization. Current SB/SE Functional Statements are located in IRM 1.1.16 Small Business/Self-Employed Division.

  8. Job Abolishment: The termination of a position where the duties are eliminated entirely or combined with duties of another position(s). Job abolishment does not involve situations where:

    • There is no material change in official job duties and responsibilities

    • The position is re-described

    • A paperwork transaction eliminates one position and creates another

    • There is a change in title and/or series only

  9. Mass Update Module (MUM): An application in HR Connect that HR specialists use to process a large volume of the same type of personnel actions.

  10. Operating Units: The internal business units that comprise SB/SE (Exam, Collection, Operations Support, OFE and OPI).

  11. Organizational Change: Any change to an organization’s structure, geographic boundaries, management structure, organizational mission or function, or business processes that may or may not result in a change in the workforce. The change may involve realignment, reorganization, or restructuring. Changes may result in abolishment of current positions, creation of new positions that did not previously exist in SB/SE, changes to position titles, series and grades, and/or excess employees.

  12. Organizational Charts: A diagram of boxes that shows the structure of an organization and the reporting hierarchy. Each box should contain:

    • Name of group, team, department, etc, and number of positions

    • Position title/pay plan/series/grade/PD #, BU Status (e.g., Internal Revenue Agent, GS-0512-13, 94595, BU)

    • Employee name, POD and building code

    • Vacant positions

  13. Organizational Codes: Any location within SB/SE that has a manager position is assigned its own unique set of organizational codes (e.g., groups, territories, teams or departments, etc.). The set of codes consists of Treasury Integrated Management Information System (TIMIS) codes, title, SETR and Department ID organizational codes.


    The current list of SB/SE organizational codes are located at the following link:


  14. Point of Contact (POC): The individual employee who is assigned primary responsibility for development and coordination of the SROC. The individual should have complete knowledge and understanding of the proposal and direct access to the Approving Originating Executive.

  15. Positional Description (PD): An official written statement of the major duties, responsibilities and supervisory relationships of a position.


    The IRS PD library is located at the following link:


  16. Position Management: The structuring of positions into the most efficient and effective organization to accomplish the mission. Position Management is concerned with such issues as job design, career ladder development, ratio of supervisors to subordinates (span of control), appropriate use of assistants, types of positions, and cost/benefit analysis.

  17. Realignment: The movement of an employee from one organization to another. A realignment does not result in any impact to an employee’s current position or status (e.g., series or grade, work schedule, and/or pay (including locality pay)).

  18. Reassignment: The movement of an employee from their current position to another vacant approved position, without promotion or change to lower grade, level or pay band.

  19. Span of Control (SOC): Ratio of supervisor to direct reports.

  20. SROC Category: The SROC category (A, B or C) is used to classify the organizational change based on certain defined criteria (see definitions and examples in IRM The category of the SROC determines the routing path and approval level.

Organizational Change Categories

  1. Depending on the nature, scope, cost, and expected impact of recommended organizational changes, all proposed changes will be assigned to one of three categories (A, B or C) . Most requests fall under either Category A or B.

Category A

  1. DEFINITION: Category A applies to simpler requests. Examples are listed below.

    • Create new groups or teams

    • Create new territories or departments

    • Realign employees

    • Collapse existing organizational structures (groups, territories, teams, departments, etc.)

    • Eliminate vacant positions that are no longer needed

    • Rename group, team, etc.

Category B

  1. DEFINITION: Category B may involve or affect other operating units, add positions not previously funded, incur additional costs, or involve changes in type of position, grade or series. Examples are listed below.

    • Increase number of analyst or overhead positions (e.g., 343's, 301's etc.)

    • Increase the number of grade 14 and 15 positions

    • Change the title, series, or grade of a position

    • Increase/Decrease span of control for an occupational series

    • Transfer management and program responsibility from one SB/SE Operating Unit (OU) to another

    • Create new positions that did not previously exist in the OU

Category C

  1. DEFINITION: Category C involves major organizational changes within SB/SE or whose scope and impact directly affect other Business Operating Divisions (e.g. W&I, LB&I, TEGE). Examples are listed below.

    • Create/abolish/merge Areas and Divisions

    • Substantially modify employment base in any state

    • Close/move Posts of Duty and Customer Service Assistance locations

    • Close/build/move an IRS facility

    • Create occupation upgrades

    • Changes that impact National Labor Agreements

    • Transfer management and program responsibility from one operating division to another

    • Create new positions that did not previously exist in the IRS

    • IRS Servicewide changes in authority, function, or scope of activities

    • Directed Reassignment

    • Create/abolish/promote Executive level positions


    All new Executive positions require approval from the Corporate Human Capital Office (CHCO) and the Executive Resources Board (ERB).

Documents Required for SROC Submission

  1. SROC Template Category Streamlined A or B/C

    • Document is used to describe and justify the organizational change request

    • 1st and 2nd level Executive signatures are required on this form

  2. Business Case Memo

    • Memo required by CHCO to process an organizational change request

  3. Current Organizational Chart

    • Structure of the current organization


    Contact the SROC POC to obtain the most recent organizational chart

  4. Proposed Organizational Chart

    • Structure of organization which includes proposed changes

  5. Combined EDI and Impacted Employee Listing

    • Listing contains all impacted employees (BU and NBU)

  6. Form 14036, Notice to National Treasury Employees Union (NTEU)

    • Used to notify NTEU when BU employees are impacted


    For additional information, refer to the SROC Desk Guide on the SROC SharePoint.https://organization.ds.irsnet.gov/sites/SbseHCOWFPR/LR/SROC/default.aspx

Review and Approval

  1. The SROC package will be reviewed for completeness and to ensure:

    1. SROC Template and Business Case Memo clearly define the purpose and justification of the proposed changes

    2. Span of Control (SOC) guidelines are met

    3. Positions Descriptions (PDs) are valid and current

    4. Organizational Charts accurately reflect proposed changes

    5. All impacted employees are shown on the Combined EDI and Impacted Employee Listing

    6. Form 14036 is included when BU employees are impacted

    7. Employees are not adversely affected

    8. Current vacant positions are identified on both the current and proposed organizational charts

    9. New vacant positions are identified on the proposed organizational charts

    10. All name changes are labeled on the proposed organizational charts

  2. After the review process has been completed, the SROC package is submitted to internal and external stakeholders for approval, based upon the type of the request. Approvals may include:

    1. SB/SE Leadership

    2. Equity, Diversity and Inclusion (EDI)

    3. Chief Financial Officer (CFO)

    4. Corporate Human Capital Office (CHCO)

    5. Deputy Commissioner for Operations Support (DCOS)

    6. Deputy Commissioner for Services and Enforcement (DCSE)


  1. Upon completion of the SROC, the Approving Executive is responsible for ensuring:

    1. Personnel Action Requests (PARs) and system changes (e.g., ICS, Concur, RGS, etc.) are initiated and completed timely

    2. NTEU notification process has been completed

    3. Labor Relations issues are resolved prior to implementation

    4. Implementation of the new design (e.g., filling positions) is completed in accordance with current Finance and Human Capital guidelines

  2. New organizational codes will be provided with the approved SROC package.


    Realignments of 75 or more employees require a MUM.

Related Resources

  1. List of related resources:

    • Corporate Human Capital Office IRM 1.1.4 Organization and Staffing - Organizational Planning

    • SB/SE Functional Statements IRM 1.1.16 Organization and Staffing - Small Business / Self Employed Division

    • SROC SharePoint https://organization.ds.irsnet.gov/sites/SbseHCOWFPR/LR/SROC/default.aspx