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1. Identify Business Capabilities: The first step in designing microservices is identifying the business capabilities of your application. Understand the primary and secondary functions that your application provides. This also involves breaking down your monolithic architecture into smaller modules and identifying the dependencies between them.

2. Define Microservices: Based on business capabilities, you can define the microservices. Each microservice should have a single responsibility and should focus on performing one task only. You need to define the boundaries and scope of each service with a business capability.

3. Choose communication strategy: In a microservices architecture, services communicate with each other over HTTP/HTTPS by default, while they can also use other communication modes like messaging, databases, or REST APIs.

4. Apply Spring boot and Dockerize: Select Spring Boot as your development framework for the microservices to use dependency injection and create RESTful web services.

5. Implement API Gateway: Implement a reverse proxy, such as Netflix Zuul or Spring Cloud Gateway, to handle communication between microservices.

6. Develop Test Automation: Use a test-driven development approach to ensure the continuous health of applications.

7. Implement Continuous Integration and Deployment: Once the microservices are ready, a continuous integration and deployment process can be implemented to ensure automatic software delivery.

8. Monitor and maintain microservices: Finally, once microservices are deployed into the production environment, you need to ensure smooth functioning and monitor transactions for continuous integration.

In conclusion, designing microservices for a Java Spring application involves identifying business capabilities, defining microservices, choosing the communication strategy, using Spring Boot, implementing an API gateway, developing test automation, and integrating deployment. These steps promote scalability, flexibility and improves the overall effectiveness of your application.