2001 annual report

Our vision is to champion workforce excellence in delivery of services to our customers and the citizens of Georgia.

Georgia Merit System supports state government in accomplishing its strategic business objectives by providing leadership in employment relations, staffing, compensation, benefits, and training services.

We Can We Care We Customize

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We Value: v' Strategic alignment with customer expectations and goal achievement v' Diversity of people, ideas and customers v' Collaboration, consensus and empowerment v' Timely and meaningful communication v' A competent workforce that is accountable in its duties to the State v' New challenges and opportunities v' Best practices and continuous process improvement v' Quality leadership and innovations v' Employee development and continuous learning
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, Commi1-1-ion7., 1, JME1-1-a9E
On behalf of the Georgia Merit System (GMS), I am pleased to present to our valued employees, customers, state government leaders, and citizens of Georgia, our 2001 Annual Report.
In the following pages, you will be given a glimpse into the accomplishments and services of the Merit System for fiscal year 2001. I hope the information and data provided in this report offers further credence to our agency's continual commitment to serve as a viable support and resource to state government and Georgia citizens.
This year, we renewed our commitment to champion our vision of workforce excellence by placing an emphasis on HR strategy, workforce planning, technology, and communication to address the challenges of recruitment and retention in state government. Two of our initiatives, workforce planning and performance management, became a major focus as state government began to analyze future labor market and workforce trends.
The Merit System continued to provide leadership to the Workforce Planning Advisory Committee to formulate statewide workforce planning guidelines. The Committee developed a phased approach workforce plan-
ning model to assist agencies in addressing their current and future workforce needs. Our partnership with the Office of Planning and Budget and the Georgia Technology Authority established guidelines for the state's first integrated strategic planning process that incorporates a workforce planning component. In January 2001 , we rolled-out the integrated planning process and provided agencies with the training, tools, assistance and information needed to complete the first phase.
In July 2000, the Merit System and the GeorgiaGain Advisory Committee, made up of agency heads and their designees, set out to act on Georgia state employees' concerns by correcting the problems with salaries and payfor-performance under the GeorgiaGain performance management system. As a result, PerformancePLUS was adopted as the new performance management system designed to move state employees closer to market parity and to bring equity and fairness to all state employees' compensation. PerformancePLUS, which includes a salary structural adjustment to the state's pay scale, a one-time lump sum bonus and incentive payments for outstanding achievers, has been embraced as the start of a catch-up plan to bring state employees closer to market salaries.
We are confident that the new performance management program and the workforce planning initiative will assist state government in running like an efficient business with incentives for employees and managers, thereby yielding effective results for the citizens of the state of Georgia.
Sincerely,
~#~
Marjorie H. Young, Commissioner

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MERIT SYSTEM

As part of the state consolidated strategic planning component for FY 2001, agencies submitted detailed workforce plans to GMS for incorporation into a statewide workforce plan. To help agencies meet additional planning requirements, GMS assigned each agency a representative, developed a web page of information and resources , and released a Request for Proposals to identify qualified vendors with a broad range of workforce planning services .
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0 Governor Roy E. Barnes committed to a three-year plan to move all state employees towards market
0 October 2000 was the first move which brought all employees 113 of the way to pay grade targets .
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To provide employees the opportunity for greater tax savings for medical expenses, the Health Care Spending Account maximum was increased from $3000 annually to $5,040 annually.

PerformancePLUS is the restructured pay-for-performance and performance management system recommended by the Georgia Merit System (GMS) and the GeorgiaGain Advisory Committee to correct problems with GeorgiaGain.
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Presentation of Innovations in American Government Award to GMS Commissioner Marjorie H. Young & staff.
Georgia Civil Service Reform was honored as an Innovations in American Government 2000 finalist. The State of Georgia received national recognition for implementing improvements in its personnel system. As one of 25 finalists, the Merit System was awarded a $20,000 grant to promote replication of its cutting edge program across the nation.

For the first time, Electronic Open Enrollment offered state employees the option of enrolling for benefits on-line. Employees were able to view their previous year's benefit selections as well as submit new choices. Because data was distributed to vendors electronically, the process was more timely and efficient.
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This fiscal year, Governor Barnes issued an Executive Order reinstating public recognition of state employees. May 6-12 was proclaimed Georgia Public Employee Week, and May 9 was designated as State Employee Recognition Day. A ceremony, sponsored by GMS , was held at the State Capitol to honor state employees with 40 or more years of service in state government and employees who made awardwinning suggestions through the Employees' Suggestion Program.

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Claybon Edwards Vice Chair

Melinda Langston ~...,_,_. Board Member
Natalyn Cone -,.-...-__. Board Member

The Governor appoints five citizens to the board for five-year terms. The Commissioner of the Georgia Merit System serves on the State Personnel Board as the Executive Secretary.
The functions, duties and authority of the State Personnel Board include:
D Improvement of personnel administration in state agencies representing the best interest of citizens of Georgia;
D Determining appropriate goals and objectives for the State Merit System and providing policies for their accomplishment;
D Adopting and amending policies, rules and regulations ; and
D Reviewing adverse personnel actions or all other purported violations of departmental rules and regulations.

The State Personnel Board members also serve on the Employee Benefit Plan Council. The Benefit Plan Council is a ten-member council that consists of:
D The five members of the State Personnel Board;
D Two department heads who have employees eligible to participate in the employee benefit plans;
D Two state employees who are eligible to participate in the employee benefit plans; and
D One member from a corporation domiciled in the state of Georgia that insures or administers employee benefit plans .
The chair of the State Personnel Board also serve as the chair of the Council. Successors to the members of the State Benefit Council have the same qualifications and are appointed by the Governor.

Electronic Open Enrollment 0 Employees for the first time had the opportunity to select their benefits on-line through "web enrollment" for the Flexible Benefits Program 2001-2002 plan year. The project, approved by the Georgia Technology Authority and in collaboration with the Department of Community Health, allowed employees to view their previous year 's benefits and submit new benefit selections electronically. Because vendors and other external interfaces received the data electronically, the process was more timely while assuring the highest level of security.
Employee's Suggestion Program 0 State employees are now able to make and track their suggestions for government improvement on-line. The process enables employees to view previous suggestions, search for suggestion key words, show topics for suggestions, and show co-sponsored suggestions. Departmental coordinators are also able to read and evaluate suggestions on-line. 0 Thirty-six suggestions were submitted during FY 2001. 0 Ten state employees' suggestions were adopted and generated $792,109 in first year tangible and intangible savings. 0 Seven employees received monetary awards totaling $7,483 . 0 Three employees received certificates of commendation. 0 The program is accessible at www.gms.state.ga.us/employee/esp.
Salary Planning Tool 0 The Salary Planning Tool was developed through the cooperative efforts of the Georgia Merit System and the Department of Administrative Services. Using the Salary Planning Tool, agencies updated employees performance ratings . Ratings were used to calculate the related salary increases, and the data was interfaced to Phoenix HRMS. GMS provided training of the tool and serves as a help desk to agencies in interpreting salary increase policies and appropriately awarding the increases .

The JobSite 0 The Internet-based job vacancy posting web site, www.thejobsite.org. has continued to grow in popularity and utilization during this fiscal year for both applicants and Georgia agencies. Developed in 1999, The JobSite is part of the Merit System's continuing commitment to move from a paper-driven system to an electronic process of advertising and recruiting qualified job candidates. The JobSite offers the most comprehensive list of state job vacancies available.
Applicants can apply directly on-line for jobs posted on the site. Recruitment coordinators from any state entity are eligible to use this service. 0 782 registered recruitment users representing 140 agencies. 0 163,257 jobs applied for in response to job postings. 0 Established 44,405 new applicant accounts online this year, marking a 132 percent increase since the FY 2000 reporting figure of 19,200. 0 Listed 6,136 job postings during FY 2001, an increase of 46 percent over FY 2000's reported 4,200.

0 The Merit System served as facilitator to the GeorgiaGain Advisory Committee in the review of a study by the University of Georgia Georgia State University regarding the GeorgiaGain performance management and pay-for-performance system.
0 Developed workforce trends and salary increase projections that were incorporated into the final reports and recommendations of the GeorgiaGain Advisory Committee.
0 Developed legislation to provide authority to the State Personnel Board for awarding lump sum payments of incentive award and compensation programs.
0 Conducted executive forums for communicating the new PerformancePLUS program.
0 Developed salary increase policies and modified State Personnel Board rules for implementation of PerformancePLUS.

In FY 2001, a statewide Workforce Planning Advisory Council provided leadership to formulate statewide workforce planning guidelines. The guidelines provided the principle direction for workforce planning teams to direct their resources. The following were accomplished:

0 Implemented Phase I of the workforce planning process.

0 Established cross-functional workforce planning project teams . Developed

tools and support systems to increase agencies' capacity for effective workforce

planning.

0 Developed and published guidelines for state agencies to use in workforce

planning.

0 Developed and distributed Rapid Workforce, an electronic reporting tool for

workforce planning, to all agencies.



0 Trained all state agencies in workforce planning guidelines.

Agency Workforce Plans 0 Expanded workforce planning services to support state agencies' efforts by establishing and staffing a new section, Workforce Planning Best Practices and Consultant Services. 0 Identified workforce planning vendors for agencies' use through a competitive process. 0 Developed planning pages on the GMS Web site. 0 Hosted Workforce Planning Vendor Orientation. March 2001.

Workforce Best Practices 0 Presented results and cost-benefit analysis of Child Support Enforcement Agent competency profile and behavioral interview project at three national conventions 0 Began competency profiling and behavioral interview development and training project for Child Support Enforcement supervisors and managers.
0 Developed professional child welfare competency profiles, minimum
knowledge base requirements, training ladders, and developmental frameworks
for several DFCS Social Services jobs.

In FY 2001, the Merit System assisted agencies with the screening of applicants by administering more than 19,000 tests - an increase of 20 percent over last year. Of that total, 87 percent was at agency request for jobs unique to the individual agency (75 percent in FY 2000).
0 Completed the pilot testing and validation phase of a selection process for an Assistant Financial Examiner in the Department of Banking and Finance . The new process is scheduled for implementation early in FY 2002.
0 Started preliminary job analysis activities with a nationally recognized consulting firm for a multi-state project to develop a Juvenile Correctional Officers selection process for the Department of Juvenile Justice .
0 Completed the development and implementation of a behavioral interviewing process for auditor positions in the Department of Audits.
0 Conducted supplemental training for hiring managers in the Georgia Bureau of Investigation for the administration and scoring of the behavioral interview process for Special Agent positions .
0 Developed and implemented a more effi~ient selection process for Correctional Officer positions. Instead of hand-entered, an application form can now be scanned into the applicant tracking system .

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A Human Resource Audit team was established to develop and implement an audit function that will:
0 Provide agencies with an HR self-audit instrument to assess current agency

compliance with State Personnel Board Rules and established standards of

human resource management.

0 Provide agencies with an evaluative report of their current HR management

practices, information that identifies where agency practices varied widely from

established standards and comparative procedures consistent with the established

standards.

0 Work with customer agencies, at their request, to review existing practices

and aid in the development and implementation of alternative best practices of

HR management that reflect the established standards.

0 Develop training modules and resource materials for agency management to

support the implementation of HR best practices.

The Merit System, through its Employee/Management Relations (EMR) section:
0 Provided information and technical assistance to over 3,500 employees and supervisors from more than 80 state agencies
0 Provided technical assistance, relating to personnel practices, policy issues, and State Personnel Board rules to over 1,500 HR managers and staff members
0 Developed handbooks for eight agencies 0 Assisted 15 agencies in developing reduction-in-force plans 0 Reviewed over 200 State Personnel Board appeals and settlement
agreements for the Office of State Administrative Hearings 0 Trained and assigned six grievance hearing officers to various state
agencies to hear employee grievance cases 0 Trained and assigned five mediators to state agencies to resolve
conflict.

The Medical and Physical Examination Program (MAPEP) is designed to provide a consistent, job-related process for insuring that prospective employees meet the medical and physical standards of their appointment. This year:
0 The Merit System released a Request-For-Proposal for MAPEP that resulted in reduced rates for participating agencies .
0 The Drug and Alcohol Testing Program includes pre-employment, random, post-accident, periodic, follow-up , and reasonable suspicion testing. This year, 12,849 drug and alcohol tests were performed.
State Charitable Contributions Program (SCCP) is a statewide, communitybased program that is administered by the Merit System. SCCP provides an opportunity for employees to donate to charities of their choice through payroll deduction . This year:
0 State employees and employees of the Georgia University System contributed $2.6 million during FY2001.
Faithful Service Awards Program recognizes graduated years of employee service with a pin and/or certificate. In FY2001, the program was enhanced by the addition of retiree recognition awards. Retirees with 30 or more years of service receive their choice of a wristwatch o~ a plaque. Retirees with less than 30 years of service receive a lapel pin. The Merit System:
0 Presented 7,729 awards based on graduated years of service 0 Presented 567 awards to retirees with 30 or more years of service 0 Presented 717 awards to retirees with less than 30 years of service
Governor Barnes proclaimed May 6-12 as Government Employee Recognition Week and May 9 as State Employee Recognition Day. The Merit System organized a special recognition ceremony at the state capitol where Governor Roy E. Barnes issued and presented:
0 One 55-year service award certificate of commendation 0 Two 41-year service award certificates of commendation 0 Nine 40-year service award certificates of commendation 0 Three employee suggestion monetary awards

'Jfexibfe !Benefiti

The Flexible Benefits Program provides the following benefit choices: Employee Life, Dependent Life , Accidental Death and Dismemberment, Short-term Disability, Long-term Disability, Vision , Legal , Health Care Spending Account, Dependent (Child) Care Spending Account, Dental , and Long-Term Care. All benefit choices provide a tax-savings to participants through pre-tax reductions with the exceptions of Dependent Life , Short-term Disability, Legal, and Long-term Care.

Fiscal Year 2001

Product
Life Insurance - I Life Insurance - 2 Life Insurance - 3 Life Insurance - 4 Life Insurance - 5 Total
AD&D-1 AD&D-2 AD& D-3 AD& D-4 AD&D-5 Total
Dep. Life-1 Dep. Life-2 Total
STD+ SS STD-SS Total
LTD-Ret+ LTD+Ret+ LTD-RetLTD+ RetTotal
Dental - Single Dental - Family Dental, PPO - Single Dental, PPO - Fam. Dental, PRPD - Sin. Dental, PRPD - Fam. Total
SA-Health SA - Dependent Total
Legal Ins - Single Lei:al Ins - Famil]:'. Total
LTC-Base LTC - Inflation Prot. LTC - Red. Pd. Up LTC - Infl. /Red. Total

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Enrolled
13,762 19,011 20,405 11 ,882 3,656 68,716
11 ,307 10,744 21 , 167 7,051 13,207 63,476
16,808 23,281 40,089
31,863 62
31,925
27,424 11,162
79 54 38,719
18,836 19,302 4, 193 4,320
1,738 2,243 50,632
9,377 1,050 10,427
4,303 4,381 8,684
2,422 202 167 77
2,868
16,244 15,148 31,392

% Active Emp.
16.30 22 .52 24.17 14.07
4.33 81.39
13.39 12 .73 25 .08 8.35 15 .6 4 75.19
19.91 27.58 47.49
37.75 0,07
37.82
32.49 13 .22 0.09 0.06 45.86
22.31 22.87
4.96 5.11 2.05 2.65 59.95
11.11 ~ 12.35
5.09 5. 19 10.28
2.86 0 .23 0 . 19 0.09 3.37
19.24 17.94 37.18

Total Prem.
110,040 267,283 396,989 304,226
75,319 1,153,857
13 , 164 25,083 74,892 34,475 77,081 244,695
33,952 94.055 128,007
286,033 _____fil2_ 286,712
286,603 95,008 984 595
383,190
349,972 1,058,714
53, 167 161,395 25, 166 80,972 1,729,386
608,797 244,842 853,639
38,296 50,381 88,677
47,787 13 ,703 5,386 7,913 74,789
88,529 229.492 318,021

Fiscal Year 2000

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Enrolled
14,383 19,361 19,733 11 ,854 3,823 69,154
11,696 10,810 20,390 6,968 13.762 63,626
16,293 23,652 39,945
31,679 63
31,742
27,375 10,813
95 49 38,332
19,418 19,510 4,260 4,344 1,888 2.366 51,786
9,345 1,048 10,393
4,324 4.345 8,669
2,466 202 172 74
2,914
17,156 15,628 32,784

% Active Emp.
16.79 22.60 23.03 13 .84
4 .46 80.72
13.65 12.62 23.80 8. 13 16.06 74.26
19.02 27.61 46.63
36.98 0.o7
37.05
31.96 12.62 0.11 0.05 44.74
22.67 22. 77 4 .97
5.07 2.20 2.76 60.44
10.91 U1 12.13
5.04 5.07 10.11
2.87 0.23 0.20 0.08 3.38
20.03 18.24 38.27

Total Prem.
111 ,096 262,342 383,576 302, 115
74,620 1,133,749
13,527 25,054 72,238 34,074 79,170 224,063
32,91 I 95,554 128,465
283 ,814 685
284,499
285,849 91 ,716
1, 123 553
379,241
360,786 1,070, 123
54,016 162,291 27 ,33 8 85,412 1,759,966
605 ,720 244.735 850,455
38,483 49,967 88,450
47,481 14,080 5,579 7,440 74,580

While it has been a challenging year in the Deferred Compensation Program due to the significant decline in world equity markets, there was an eight percent increase in enrollment, coupled with increased contributions from participants during this fiscal year. This year, the program:
D Released a Request For Proposal to select a SelfDirected Brokerage Option provider to enhance investment opportunities for Deferred Compensation participants.
D Selected CSFBdirect, in partnership with Great-West (Third Party Administrator for the Deferred Compensation Program) for implementation of the Self-Directed Brokerage Option in FY 2002.
D Filed a Private Letter Ruling Request with the Internal Revenue Service to add a Section 403(b) Plan and to make the Plans available to employees of educational entities.

Total Plan Assets and Enrollment including Employer Contributions and Rollovers

Total Plan Assets as of 6/30/01 = Total Enrollment as of 6/30/01 =

$532,023,545 34,605

457 Plan
6/30/99 6/30/00 6/30/01

EamUild

CbllDKll

18,975

18,599

(376)

17,967

(632)

% Change FY 99 - 01

401(k) Plan
6/30/99 6/30/00 6/30/01

Egrglbal

Chll!!2e

10,729

13 ,383

2,654

16,638

3,255

% Change FY 99 - 01

457 and 40l(k) Plans combined

Eomlllld

CblDKll

6/30/99 29,704

6/30/00 31,982

2,278

6/30/01 34,605

2,623

% Change FY 99 - 01

~CbllDB
-2% -3% -5%
0t11 CbDD2e
25% 24% 55%
~ CbllDKll
8% 8% 16%

Aum
461 ,350,278 508,529,950 465,108,331
A.nm
29,020,336 48 ,712,383 66,915 ,214
Aum
490,370,614 557,242,333 532,023,545

CbllPKll
47,179,672 (43,421,619)

~CbllDB
10% -9% 1%

Chan2e
19,692,047 18,202,831

0l!I Ch11n2e
68% 37% 131%

CbllDKll
66,871,719 (25 ,218,788)

~CbllDB
14% -5% 8%

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*Some classes are delivered to multiple locations using GSAMS or satellite equipment. **Organizational Entities total is the number of different organizational entities that sent
employees to training and is not a sum of the organizational entities column.

The Merit System implemented several strategies to make Performance Management Process Training congruent with PerformancePLUS.
D Coordinated the establishment of an Interagency Training Team. This team collaborated with the training division in implementing several evaluation and assessment strategies of the Performance Management Process Training. The Interagency Training Team conducted focus groups in three cities, and interviewed Human Resource Development and Human Resource Management representatives from nine agencies.
D Surveyed 500 supervisors who had taken Performance Management Process Training since 1999 and compiled the survey results .
D Collected assessment and evaluation data from focus groups, surveys, interviews, and the Interagency Training Team to enhance the foundation of the Performance Management Process Training in Fiscal Year 2002.

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0 Collaborated with the lnteragency Safety Council in development of an assessment survey for state agencies in support of the safety and risk management initiative in Georgia state government. The Merit System administered the survey, and compiled and analyzed the results for the Council.
0 Conducted an evaluation survey of those who graduated from the Professional Secretaries Development Program (PSDP) between 1988 and 2001 . The purpose of the survey was to ascertain participants assessment of the program and the impact of the program on their professional and career development.
0 Administered an employee satisfaction survey and later compiled and analyzed the results on behalf of the Georgia Environmental Facilities Authority.
0 Increased the use of electronic technology to conduct surveys in order to improve the efficiency by which the Merit System collects customer feedback . The safety and risk management, the PSDP, and the Performance Management Process Training assessment surveys were all administered electronically.

The Georgia Statement 0 Quarterly newsletter published by the Georgia Merit System (GMS) and distributed to all state employees . It featured articles submitted by state agencies spotlighting state government and its employees. This state employee newsletter is utilized as a viable communication tool by all government agencies. More than 400 ,000 copies were distributed this fiscal year.
Executive Vision 0 Quarterly newsletter published by GMS and distributed to the Governor's Office, the General Assembly, commissioners , executive directors and senior management staff. Articles included personnel issues, human resource trends, a quarterly calendar, ViewPoint - government issues from a commissioner's perspective, and details of varying initiatives implemented this year. Approximately 5,000 newsletters were distributed in FY 2001.
The "You Decide!" Booklet 0 Annual Flexible Benefit Program booklet, published by GMS , informed state employees about state benefit options for the 2001-2002 Plan year. In a collaborative effort with the Department of Community Health , the book highlighted Health, Flexible Benefits, and Deferred Compensation information. Testimonials from state employees across Georgia were included in this year's theme "Focus On Good Life."
State Directory 0 The 2000 -2001 state directory, published annually by GMS , provided a comprehensive listing of government entities. The directory included the telephone and fax numbers of key contacts and divisions submitted by the agencies for inclusion in the directory.

D 2000 Job Market Composite Report. Compares state salaries with the overall job market. (August 2000)
D 2001 Salary Report. Provides salary information for common jobs and agency-unique jobs. (April 2000)
D 2000 County and Municipal Governments Compensation Survey. (May 2000) D 2000 Health Care Compensation Survey. (May 2000) D 2000 Southeastern States Compensation Survey. (May 2000) D 2000 Salary/Market Reports. Customized reports of compensation and
workforce statistics for each agency in state government. D Strategic Workforce Planning: One Consultative Model. A presentation to
agency leadership at Governor Barnes ' announcement of consolidated strategic planning initiative. (January 2001) D Georgia's Consolidated Strategic Planning Guidelines for Fiscal Year 2001. A joint publication of GMS, The Governor's Office of Planning and Budget, and the Georgia Technology Authority. (January, 2001) D Rapid Workforce: Georgia's Electronic Workforce Planning Reporting Tool (v.i). A Workforce Planning application. (March 2001) D Status Report of the Competency Study of Social Services Case Managers, Department of Family and Children Services. A Publication of the Georgia Merit System. (February 2001)
D HB 161 provides the State Personnel Board the authority to develop incentive programs and compensation plans for all state employees. This bill also provides that those incentive awards can be paid in the form of a one-time lump sum payment. Moving from the basic salary increase to a one-time lump sum payment, in the pay period during which the employee exceeds , will free funds that can be used to to bring the state's salary structure up to market over the next few years.
D HB 813 allows employees of county and independent school systems to participate in the state deferred compensation plan (401k) at the request by such systems, and with the approval of the State Personnel Board. Some county and independent school systems currently participate in the state flexible benefit plan and other systems have approached the Georgia Merit System about participation. Legislation was needed to allow these school systems to participate in the state deferred compensation plan.

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Liz Hurst Confidential Secretary

Marjorie H. Young Commissioner

Sandra Flanigan Executive Assistant

Bill Dunn Assistant to the Commissioner
Kathleen Carey Director Personnel

Gail Love Deputy Commissioner

Grady L. Cornish Special Advisor to the
Commissioner
Peggy Rosser Assistant Commissioner

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- _____ ______.________ Deborab u:::-
Division Director Administration and
Systems

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.._EDmivpVilsoiicyoenKeDeBeinerenecetfoitr_s _,,._DCeaobnmodDrmaMihuraenWrciktcoelalrttliilnmognms

Elbert Hackney Director
Legal Services

Mustafa Aziz Division Director Customer Services

Diane Schlachter Division Director
Training and Organizational Development

Mary Gayle Ulm Division Director Compensation and
Staffing

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2 Martin Luther King Jr., Drive West Tower, Suite 502 Atlanta, Georgia 30334 Phone: 404-656-2705