Based on the findings of an operations research project undertaken by the San Diego Community College District (SDCCD), this report presents recommendations for improving the organizational structure of SDCCD's payroll/operations department. The report first outlines 15 organizational and operations problems confronting the department as revealed by the operations research study, including bottlenecks in the flow of paperwork, a lack of communication between the two major components of the department, inadequate workspace, and the failure of personnel in other departments to fill out payroll forms on time and in accordance with codification procedures. After a discussion of the shortcomings of the department's present operational organization, which is structured by function rather than by workflow, the report describes radical, moderate, and marginal alternatives for departmental reorganization, along with the legal, administrative, physical, financial, political, and distributional constraints of implementing each alternative. Finally, the report provides recommendations for controlling the timeliness and accuracy of forms forwarded to the department, training employees for conversion to an on-line filing system, creating a more efficient work station design, and developing a procedures manual. Organizational charts are appended. (JP)