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campuses, the University of North Carolina General Administration (UNCGA), and

OSP, worked on a plan of implementation for the Partnership Agreement. That plan

was accepted in substance by the director of OSP and the president in September 1998.

A copy of the Transition Team report to implement the Partnership Agreement is

attached. The Transition Team has now been replaced by the UNC Human Resources

Advisory Board for SPA Employees (HRAB-SPA), a permanent representative body

responsible for advising the president concerning all aspects of managing the SPA

human resources functions within the University.

II.

Characteristics of the University Classification System for SPA Personnel

Presently, the constituent institutions have authority for most of the day-to-day

management of the SPA personnel functions except in the area of classification and

compensation. The purpose of this memorandum is to begin outlining the process for

decentralizing responsibility for the classification and compensation of SPA employees

to those institutions that can demonstrate their readiness. The current SPA

classification and compensation system will be imported and, with the

approval of OSP, and the State Personnel Commission, will be changed

gradually to meet the needs of the University. Any changes to the

current system will be made in an organized and sequential fashion.

The following characteristics have been adopted for the University classification system:

A. The UNC classification system will be regulated by OSP, administered by

UNCGA, and monitored jointly by UNCGA and OSP. These two offices will

work together in partnership through the HRAB-SPA, which will be coordinated by

a human resource professional appointed by the president.

B. The UNC classification and pay structure will be based on the current “narrative

factors comparison” structure, at least in the beginning, but will offer opportunities

for institutions to propose, with HRAB-SPA approval, to try alternative classification

and compensation structures as pilot projects. At the end of such a pilot project, the

HRAB-SPA will receive a report and will disseminate the results of the project to

other campuses. This demonstration and dissemination feature will permit other

campuses to emulate successful pilots and prevent campuses from repeating similar

unsuccessful pilots. The goal will be to have a menu of tested classification and

compensation structures from which institutions may choose one or more to meet the

needs of different occupational groups of employees. If pilot projects result in the

recommendation of changes to the permanent classification and compensation

structures that would entail modification of existing rules and policies, approval by the

State Personnel Commission will be required.