Public Administration [6 ed.] 0023965703, 9780023965708

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A VOLU M E OF

THE

POLITICAL SCIENCE SERIES Editors RUFUS D. SMITH, Professor

of Politics,

and

RINEHART. J. SWENSON, Professor of Government New York UnivERsrry

PUBLIC ADMINISTRATION By

JOHN M. PFIFFNER, Ph.D. PROFESSOR OF PUBLIC ADMINISTRATION

the University

OF SOUTHERN

CALIFornia

REVISED EDITION

THE RONALD PRESS COMPANY

- ºr

NEW YORK

Copyright,

1946,

by

THE Ronald Press CoMPANY Copyright,

1935, by

The Ronald Press

All

Company

Rights Reserved

or any part may not be reproduced in any in whatsoever without permission writing from the publisher.

The text of this publication

thereof manner

Second Printing,

raint ED

IN THE UNITED

November,

1946

states of AMERICA

JK

Pu

tº

144,

TO MY WIFE

RAF ſy/1

OO!?

3 |

PREFACE This volume is

a complete revision and expansion

of Public Administra

tion issued in 1935. Like the preceding edition, it is designed essentially for use as a college textbook at the undergraduate level. The revision reflects both the experience gained through long classroom use of the earlier volume and the many significant changes and developments occurred during the past eleven eventful years.

which have

Some of these developments are of such major importance in presenting a rounded and comprehensive treatment of the subject as to warrant much fuller discussions in revision. Such topics, for example, as Government corporations,

the administration of field services, voluntary coordination planning and and research—treated only sketchily in the previous edition—have now assumed full chapter status. A more extensive treatment devices,

has been given to the theory

of organization and to federal personnel and

finance systems, while the material on public relations has been expanded fourfold. Particular attention has been focused on the struggle between lawyers and administrators over the powers and procedures of regulatory agencies, and also on the influence that sound industrial management has been exerting on public management. The section on administrative law has two innovations: an historical introduction which the author has found effective in his own teaching experience, and a chapter entitled “The

Law

Office as a Staff Agency.” A great obligation is particularly due to Dean Emery E. Olson, who has

made the administrative arrangements without which time and facilities would not have been available for work on this book. Research assistants

who worked on parts of the manuscript include Paul Ashby, James K. Anderson, Harold Irving Roth, and Philip J. Schlessinger. I am especially indebted to Miss Eleanor Butler for assistance with the details of manu script preparation. To Professors Rinehart J. Swenson and Lloyd M. Short are due my special thanks for their helpful counsel and valuable suggestions.

-

Los Angeles, California -

-

John M. PFIFFNER

CONTENTS PART ONE Introduction chapter

PAGE

1

THE New PUBLIC ADMINISTRATION

2

THE STUDY of PUBLIC ADMINISTRATION

3

PUBLIC ADMINISTRATOR's CULTURE

.

.

.

.

.

.

.

.

.

.

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.

13

Role IN MoDERN Civilization AND .

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30

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45

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-

-

-

-

.

PART TWO Organization

and Coordination

4

ORGANIZATION

5

PRINciples of ADMINISTRATIVE

6

STAFF

7

PROPER

8

THE ORGANIZATION

AND

.

.

LINE

Use of

.

RELATION

.

.

.

.

of

.

ORGANIzation .

.

.

AND CoMMISSIONs

BoARDS

MENT Corporation 9

.

THE

BUSINESS ENTERPRISEs: .

-

-

-

-

-

Between LEVELs of ADMINISTRATION

.

Govern

-

-

-

113

.

-

-

129

10

THE ADMINISTRATION

of FIELD

.

-

-

-

-

144

11

THE ADMINISTRATIVE

MACHINE IN Motion

.

-

-

-

162

12

Voluntary CoorDINATING

.

-

-

-

-

181

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195

-

-

-

-

-

210

SERVICEs

DEVICEs

.

PART THREE Planning and Research 13

PLANNING, RESEARCH,

14

StANDARDS AND MEASUREMENts

AND STANDARDs .

vii

.

-

viii

CONTENTS

-

PART FOUR Personnel CHAPTER

FAGE

229

15

THE PERSONNEL

16

THE FEDERAL PERSONNEL SYSTEM

17

RECRUITING

18

CLASSIFICATION

19

PLACEMENT

20

EMPLOYEE

21

IN-SERVICE TRAINING

PROGRAM

248

.

265 AND CoMPENSATION

Evaluation

AND EMPLOYEE

RELATIONs

283

-

.

303

318

-

333

PART FIVE Finance 22

FINANCIAL ORGANIZATION

23

FEDERAL

FINANCIAL

349

ORGANIZATION

362

*

24

BUDGET PLANNING AND ENACTMENT

371

25

BUDGET

Execution AND POST-AUDIt

392

26

PURCHASING

AND

27

Collection,

CUSTODY, AND DISBURSEMENT

PRocuREMENT

411

of RECEIPts

.

424

PART SIX Administrative

Law

28

THE LEGAL BASIs of ADMINISTRATION

29

THE STRUCTURE AND PRoceDURE of REGULATORY AGENCIES

30

JUDICIAL REVIEw of ADMINISTRATIVE

31

THE RULE-MAKING Process

32

THE LAw OFFICE As

33

OFFICERS AND REMEDIEs

Action

443 459 477 491

.

A STAFF .

.

AGENcy

501 515

CONTENTS

ix

PART SEVEN -

Public Relations

PAGE

CHAPTER 34

ADM (NISTRATION

AND

35

ADMINISTRATIVE

PUBLIC RELATIONs

36

DAY-to-DAY CITIZEN

37

THE PUBLIC INTEREST

Norm Al Contacts .

-

• '

.

PUBLICITY AND REPORTs

.

INDEx

-

.

-

-

-

-

-

.

-

Between -

-

-

-

.

-

-

.

539

-

-

-

.

562

EMPLOYEE

AND

-

-

-

-

.

575

.

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.

.

.

589

.

.

.

.

.

613

.

ILLUSTRATIONS FIGUre

PAGE

1

Weak Executive Organization

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57

2

Strong Executive Organization

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58

3

The No-Executive Organization

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60

4

Commission Form of City Organization

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61

5

Council-Manager

6

A Hierarchy

7

Chart

.

Depicting

Large

Organization .

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Taylor's

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..

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62

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.

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.

'68

Principle

Punch Card Accounting

Department

.

.

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.

Staff and Line Organization Organization 10

.

of

of Functional

Supervision

to

Setup in a State Social Security

.

.

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.

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.

79

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.

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.

.

84

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89

a National Forest

Represents Functional Supervision from Top, Rather than Grouping Bureau under Assistant Secretaries

.

.

.

.

.

.

.

95

11

Unitary Type of Field Organization

.

.

.

.

.

.

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.

150

12

Multiple Field Organization

.

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.

.

.

.

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.

151

13

Functional Organization Chart

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.

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.

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165

14

Personnel Organization

.

.

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166

15

Process Chart

Chart

175

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16

Work Distribution Chart

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176

17

Commission with Administrative

Powers

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241

18

Wisconsin-Cincinnati

Type of Organization

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.

242

19

Completely Integrated Personnel Organization

.

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.

243

Condition of Apportionment, Federal Classification System

.

.

260

Graphic Rating Scale

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.

313

21

.

.

.

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.

.

.

xi

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.

.

.

.

ILLUSTRATIONS

xii FIGURE 22

PAGE

Service Rating Form Prescribed for General Use by the U. S. Civil Service Commission

.

.

.314

23

Scoring and Rating Device for Use with the Probst Service Report .

315

24

Probst Rating Form

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.316

25

Activities of the Six Fiscal Officers .

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350

26

Disintegrated Financial

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351

27

Integrated. Financial Structure

.

.

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.

.

.

.

.

355

28

Sample of Working Paper Used in Budget Preparation

.

.

.

377

29

Appropriation

396

30

The City of Chicago Law Department,

.

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.

Structure .

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.

Ledger Set Up on Allotment Basis

w

1943

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505 t

PART ONE INTRODUCTION

CHAPTER

1

THE NEW PUBLIC ADMINISTRATION Recent Expansion of Administrative Activities The recent tremendous expansion of governmental activities is common place knowledge. Even before Hitler caused a world-wide expansion of military services, governmental activities in the United States had already

A

expanded enormously.

rough but adequate indication is furnished by the

fact that the total floor space occupied by the government

in the District of Columbia increased by 62.8 per cent between 1928 and 1935." This growth of public administration cannot be blamed either upon the desire of administrators for power or the doctrinaire theories of collectivists. The movement has been a steady and inevitable one ever since the full impact of the industrial revolution had been discernible. The development of a mechanized mode of life has created factories, and factories have created cities, with the result that well over half of our population lives in urban communities. The urban mode of life cannot function without paying atten tion to modern technology, and this technology cannot operate unless largely

of

in

all

supported and administered by governmental services. Technology as used in this book includes not only the physical sciences, engineering, and the mechanical arts, but that man knows the social sciences, including administrative technology. The growing intricacies

in

of

be

to

of

society have compelled government activity enter into many fields technological developments because the social benefits could not any other way. This inevitable trend has been amply demon achieved

by

of

of

in

public health where the fight against tuberculosis, infant mortality, and social diseases could not have been carried on with any degree success other than through the coordination and administration services strated

In

of

of

to

of

public health agencies. Chapters this book are devoted those questions administrative law which deal with the governmental regulation private business. every case where such regulation has

offered

3

19

D.

to

to

*

of

it

Brookings Institution, Investigation Erecutive Agencies Investigate the Executive Agencies the Select Committee C., 1937), pp. ment Printing Office, Washington,

not

for

those

govern

the Government, Report the Government (Govern

of

utter chaos were

of

state

of

to

of

it

of

has been instigated because abuses which only position correct. The modern systems trans

a

in a

portation would

be

in

come into existence, government was

INTRODUCTION

4

[Ch.

1

of friction, from Washington the Interstate Commerce Commission at down to the level of mental agencies which keep them moving with a minimum

constables policing a country road. Some vexing problems of society modern have been so pressing that they have been forced upon government even when governmental officials would have welcomed the township

their disposal

to

the acumen

at

attempted with

all

slightest excuse to avoid them. An outstanding example was the care of the unemployed during the 1930's when the various levels of government dump the unwanted step

the lag between the pressure

public

providing facilities and official action meet the problem juvenile delinquency. One could continue with example after example to

in

opinion

of of

the 1940's

is

in

Another instance

of

child into one another's lap.

be

to

The main point

emphasized

is

no

to

a

of

governmental activity set up very reluctantly by the establishment public officials who had the decision make, but carried out with the grim permit realization that circumstances could other solution. forces beyond the

that inexorable

of

is

be

of

inevitable,

promote

With con

public manage

public administration American

ideas

of

traditional

of

of

in

framework There will

of

that the expanding be

so

ment

perceive.

is

of

far more than our forefathers ever could observers well aware this trend, the next logical step perfecting the art structive civic effort the direction

to

a

so

of

to

to

is

of

is

of

of

public services and control man have been forcing the multiplication publicly authorized expenditures. This the increase not the statement purpose propagandize one whose for some “ism” with collectivist implications. Rather, the proper attitude taken that machine tech nology and the urban mode life have altered our once simple social larger degree public administration has become structure much that

can operate within the freedom and democracy.

those who say that the ideological conflict between democracy is

and enlarged public administration irreconcilable. This book disagrees contention, with that but reserves further discussion on the topic for the paragraphs that follow. -

What Is Public Administration?

the mint.”

According

or

of

of

in a

an

be

running

consists

Marshall

E.

in

coining money

it

ernment, whether

gov doing the work X-ray machine health laboratory

administration

to

Definition.—Public

Dimock:

with “the what,” and “the how,” of government. The “what” the subject-matter, the technical knowl perform his tasks. edge field which enables administrator principles according techniques management, The “how” the the concerned

p.

Graham, 1941),

Education 3.

*

George ice. Chicago,

A.

is

to

of

a

of

an

is

is

Administration

for Public Administration (Public Administration Serv

Ch.

THE NEW PUBLIC ADMINISTRATION

1]

5

to which cooperative programs are carried through to success. Each is indispensable; together, they form the synthesis called administra -

tion.

.

The

field

of administration,

then, is concerned with the problems and the techniques of management

and powers, the organization, according to which policy and program are carried out.”

Luther Gulick outlines the field and poses the status of public adminis tration concisely and aptly as follows: Administration has to do with getting things done; with the accom plishment of defined objectives. The science of administration is thus the system of knowledge whereby men may understand relationships, predict results, and influence outcomes in any situation where men are organized at work together for a common purpose. Public adminis tration is that part of the science of administration which has to do with government, and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obvi ously administrative problems also in connection with the legislative and judicial branches. Public administration is thus political science, and one of the social sciences.”

division

a

of

activities of the state consist of almost the totality of governmental activity, for it includes workers the government except members the legislative, the judiciary, and the very highest execu tive offices. The terms “executive” and “administrative” are used almost

of

of

all

The administrative

W.

practice.

of

to

a

everyday

F.

a in

Willoughby deplored this usage, advocating distinction which would virtually recognize fourfold governmental powers, adding “administrative” division the traditional “legislative,” “executive,” and “judicial.” interchangeably

be

to

in

be

as

of

to

of

of

in

is,

to

is

of

as

by

is

of

of

by

as a

of

is

executive

of

representing the govern function the function whole, and seeing that all its laws are complied with its several parts. The administrative function the function actually administering the law declared the legislative and inter preted by the judicial branches the government. This distinction usually made by declaring the executive function essentially political character; that having one do with the determination general policies, and involving the exercise judgment its use; and the administrative function one concerned with the putting policies into effect determined by other organs."

The

ment

of

F.

of

p.on

of

*

in

1,

*

E.

of

Administration,” American Political Science Re Dimock, “The Study Marshall pp. 31–32. view (February, 1937), Vol. XXXI, No. Luther Gulick, “Science, Values and Public Administration,” Luther Gulick and L. Urwick (Eds.), Papers the Science Administration (Institute Public Adminis tration, York, 1937), 191. Co., Inc., *W. Nºw Willoughby, Government Modern States (D. Appleton-Century New York, 1936), pp. 219–221.

INTRODUCTION

6

[Ch.

1

Summarizing these viewpoints, it would seem that administration con sists of getting the work of government done by coordinating the efforts of people so that they can work together to accomplish their set tasks. Administration embraces activities which may be highly technical and spe cialized, such as public health and the building of bridges, which Marshall E. Dimock calls the “what” or the “subject matter” of administration. It also involves managing, directing, and supervising the activities of thou sands, even millions, of workers so that some order and efficiency may result from their efforts; this Dimock calls “the how” of administration. The material of this book will be concerned primarily with the latter.

Is There

a Science of

Administration?—A well-known symposium on

came out with the somewhat ambitious title of, “Papers on the Science of Administration.” The principal author, in his chapter entitled “Science, Values and Public Administration,” prefaces his discus

administration

sion of administration as a science with the statement that, “At the present time administration is more an art than a science; . . .”.” However, he points out that public administration can become dominantly scientific in

other words, the goodness

or

be

-

expenditure

to

as

of

motions,

so

a

to

by

a

of

in

of

to

in

of

to a

an

great many people, particularly obnoxious word legislation reformers the field social and leaders the labor move ment. To them efficiency has meant the speeding up labor cruel efficiency expert, who with stopwatch hand scrutinizes each man's is

Efficiency

the

being motivated instead the reached, will utilize the test the objectives to

by

In

science.

by

of to

political

of

of

things, badness efficiency.

work independently of, without entirely

of

administration,

or

of

public administration will have ignoring, the value judgments science

its

as

of

In

in

of

it

if

is its

approach and method will adopt efficiency axiom. By efficiency meant, “the accomplishment the work hand with the least expendi man-power adopting ture and materials.” this scientific approach,

“squeeze” the most profits from operations with the least Organized labor has always regarded efficiency

wages.

do

to

in

he

is to

It

a

an

of

of

as

of

get him enemies the working man, endeavoring more money, job. for less and thus work him out certain that Luther efficiency because Gulick did not intend this concept included the symposium essay upon the Western Electric Company's experimental

experts

be

is

by

of

approach toward humanitarian management. Indeed, the spirit indus trial management today more and more actuated the realization that efficiency cannot taking measured without into account the wear and tear as

is

(Eds.), op. cit.,

p.

Gulick and Urwick Ibid., 192. p.

* *

If

of

upon the sentiments, attitudes, beliefs, and responses workers them efficiency getting things done with the minimum defined

selves.

191.

Ch.

THE NEW PUBLIC ADMINISTRATION

1]

7

outlay of human effort and materials, without lowering the worker's morale, health, and economic and social status, then the word takes on a meaning

in

in

defined

in

must

the same way.

favor

remember that mechanical laws the heavens tell yet cannot account the color and composition the stars and as

of

in

In

to

it

is

a

this well nothing about

science.

and us

of

a

be

is

differential then administration not sense only astro-physics may called science

a

in

a

process may

equation,

exactly expressed

be

in

every particularity all particularities covered and

be

a

of

things conceptual scheme meant which assigned covered may mathematical value and

science

is

by

Now

if

a

as

in

Charles Beard has advanced the following considerations regarding administration science:

of

A.

administration

be an

of

fit

which should be satisfactory to the most advanced humanitarian, as well as to the plant manager who must show an immediate profit. In other words, the efficiency of any particular plant for the short run must into the public social objectives efficient society the long run. Efficiency

for

to

or

in

if

of

or

a

of

as

he

or

a

as

or

Every science has

its

is,

a

or

of

a

of

a

us

is

is

is

It

or

a

in

as

be a

of

of

to

a

of

in

of

some the disturbances and explosions which seem accidental. If, on the other hand, we may rightly use the term science con body nection with exact knowledge, derived from experience and observation, and body rules axioms which experience has applicable demonstrated concrete practice, and work out practice approximately forecast, then we may, we please, appropriately and for convenience, speak science administra psychology general tion. much science economics biology, more politics. Once, when the science than history great French mathematician, Poincaré, was asked whether Euclidean replied that the question had no sense but that geometry true, geometry Euclidean and still remains the most convenient. The among other Oxford English dictionary tells that science things, particular branch knowledge study; recognized learning.8 department

arriving

no

of

be

to

if

in

rules, according

to

which one can predict public prevail. results certain conditions and circumstances Writers administration have from time time discussed the possibility that there “principles” might certain action which could constitute normal guides laws

of

of

at

in

administrative decisions.” This book makes claim that public administration. there are any comparatively foolproof principles

S.

A. in

to

ofH.

of

in

in

2.

E.

of

J.

as a

§:

p.

of

L.

to

*

8,

of

*

Charles Austin Beard, Philosophy, Science and Art Public Administration (Address delivered before the Annual Conference the Governmental Research Association, Prince ton, N. J., September 1939), As the meaning the term “principles” this sense see: Leonard D. White White, Dimock, Frontiers John M. Gaus, D. and Marshall Public Administration (University Barr, William Burton, Chicago Press, Chicago, 1936), pp. 18–19; Brueckner, Supervision; Principles and Practices and Leo the Improvement Instruc Co., Inc., New York, 1938), pp. 32-33; Herman, Finer, “Prin tion (D. Appleton-Century Management,” Guide Public Management (October, 1935), Vol. XVII, pp. –289.

INTRODUCTION

8

[Ch.

1

It

is

It

is

all

is believed that public administration can be scientific in method as is the case with the other social sciences, and this the only justifiable basis for the use of the term “social science.” further contended that to

of

of

of

a

on

of

a

of

body there exists information possessed, for the most part, by students public administration, and that this body information leads them uniformly think rather wide variety common administrative prob responsibility should lems. Thus they believe that administrative lines a

in

of

hierarchy concentrated

is a at

take the form the top, who

chief administrative

officer

of

an

in

a

of

a

of

at

the same time powerful and responsible. They hold that most governmental jurisdictions should have centralized purchasing, positions, and accrual appropriation accounting, classification standard ized compensation plan. They advocate well-articulated system internal They quasi-judicial quasi-legislative checks. believe boards for and They know activities, but prefer single heads for directing administration.

in

is

...

do

he

limited

of

to

by

executive

is

the number assistants reporting directly him the amount attention can give them, but they not know the precise number. They know that the good administrator the one who that

is

he

it

of

a

is

is

at

to

of

do

to

trying the work instead do all himself, that accomplished delegating authority and responsibility. one who While partly they admit that this aptitude, they matter individual also insist that there are standard tools and precepts which facilitate manage gets

ment.

by

of

in

by

of

working These things, and many others, are examples the type They have knowledge possessed public administration. the specialist practical administration, been discovered from contacts with made largely a

no

be

to

as

to

a

of

period century. researchers and survey groups over almost half principles.” disposition they We have no claim that are Some have particular objection assumptions, and there can referred them a

in

as

if

to to

derogatory sense. Reference has been made not used “pattern solutions,” without claiming any particular them elsewhere terminology.” sanctity for that The administrative specialist usually that term

to

conclusion that positions and

by

do

in

any jurisdictions where these standardized compensation plan exist. These pattern solutions are always tempered the peculiar

not

condi

&

in

7.

p.

**

in

of

of

is

º

10

very respectable authority for use There the word “principles” this connection. Urwick, The Elements Bros., New York, 1943), See Administration (Harper pp. 17–19. John M. Pfiffner, Research Methods Public Administration (The Ronald Press Co., New York, 1940),

{

a

is

a

propose some

of

It

budgetary

is a

is

income, the specialist certain accounting. foregone form control the personnel specialist will recommend the classification

of

constantly overspending

its

is

If

to

or of

approaches administrative problems from the standpoint solutions which patterns. Thus his experience has tended mold into particular forms poor city remedy purchasing purchasing. the for centralized

Ch.

THE NEW PUBLIC ADMINISTRATION

1]

9

tion found to exist in any particular situation. This does not alter the fact that specialists in public administration have achieved a considerable degree of uniformity in their thinking on those problems of administration which tend to exist irrespective of the subject matter of the service or function being performed. If a considerable degree of uniformity in the manner approach of to the solution of problems among the specialists is character istic of a science, then public administration has some right to the claim

of being one.”

The Nature of Administration.—The

essence

of administration

is the

ability of the administrator to get things done well and economically with out doing them himself. In other words, the good administrator is the one who can plan large projects, weld together an organization for their accom plishment, keep the organization functioning smoothly and efficiently, and carry the objectives to completion well within the allotted expenditure of personnel, time, and materials. There is an eternal quest on the part of students of administration and industrial psychology as to what constitutes this seemingly rare ability to function as a good administrator. Some people believe that administrators are born, and not made. There are others who claim that training and fruitful experience have their part in creating administrators.

it

seems best

No attempt is being made to take sides on this issue, for to await the findings of experimental J’sychologists who are

now carrying on investigations

which may prove significant.

Any cataloging of these traits which would seem to be significant in the makeup of a successful administrator also would appear to be just as important in the case of successful persons in other callings. Thus, an administrator should have an agreeable personality, possess the ability to get along with people, have character and integrity, have qualities of leadership, and be able to make a high percentage of correct decisions without undue procrastination.

for

In

getting along

the field of government, he must possess some aptitude Analysis of these qualifications will with politicians.

reveal that they do not distinguish the administrator sons in the professional or commercial fields.”

A

constantly

º,

recurring matter of controversy

from successful

per

is the question as to

whether or not there is such a thing as general administration

as distinct

** For a very interesting demonstration of the possible development of the scientific approach to public administration see: Edwin O. Stene, “An Approach to a Science of 1940), Vol. XXXIV, American Political Science Review (December,

§ o.

6, p. 1 ** The Committee

on Public Administration of the Social Science Research Council is carrying on studies in administrative aptitude both from a psychological and biographical approach. Charles S. Ascher, “The Program of the Social Science Research Council's Com mittee on Public Administration,” American Political Science Review (December, 1940), Vol. XXXIV, No. 6, p. 1195. See also Patterson H. French, “Progress Report on Research Aptitude,” Public Personnel Quarterly (Spring, 1941), Vol. II, No. 2, in Administrative 36-68; Albert B. Blankenship, “Method and Problems in Measuring Administrative #.raits,” Public Personnel Quarterly (Spring, 1941), Vol. II, No. 2, pp. 69–72.

INTRODUCTION

IO

[Ch.

1

from functional subject matter. By functional subject matter is meant such specialized fields as police, forestry, public health, and soil conservation. Proponents of one side state that administration is so inextricably mingled with the functional subject matter that there can be no such thing as admin istration as distinct from forestry, fire fighting, street maintenance, or traffic regulation. However, the specialists in the various fields frequently admit that one who is accomplished in the subject matter aspects may make a poor administrator. For instance, a great surgeon may be utterly un equipped to manage a large hospital, and the master bridge designer may lack the qualifications for a director of public works. On first thought, this disparity between functional and administrative abilities may seem to constitute no particular problem, but on closer exami nation certain universal tendencies operate against the best administrative achievement. An important difficulty of this nature arises from the fact that there is a tendency to reward achievement in the field of subject matter by promotion to administrative positions. It seems to be a dominant human desire to be chief of some organization. To achieve prestige a good fireman must become battalion chief, a detective must become inspector, a plant pathologist must become bureau chief, and the professor must become dean. This ambition on the part of functional experts to hold administrative posts creates an administrative problem to the extent that these experts lack the essential qualities of successful administrators referred to earlier in this

chapter.

The Generalizing Mind.—The various professional

and technical ac becoming specialized tivities of the modern world are so that administration tends to become a galaxy of functional specialists. Although those special ists possess a commendable desire to develop their own specialties up to, and even beyond, the standards established by their professions, neverthe less, there develops a tendency toward myopia, wherein each specialist regards his own particular activities as being unusually important. Persons with exceptional organizing ability and drive tend to become “empire builders,” developing their departments beyond what they should be, or at any rate building them up excessively from the standpoint of other

worthy units.

Many discerning

thinkers have pointed out the need for coordination and synthesis in our increasingly complicated modern society. In the field of administration this need has been most aptly posed by John M. Gaus, supported by his quotations from the writings of Brooks

Adams;

* and

also by Paul

H. Appleby in what

he calls “the quality

of

** John M. Gaus in Gaus, White, and Dimock, op. cit., pp. 104–105; John M. Gaus and Leon O. Wolcott, Public Administration and the United States Department of Agriculture (Public Administration Service, Chicago, 1940), 534 pp.; Roy F. Hendrickson, “The Admin Department of Agriculture (Jan istrative Generalist,” Personnel Bulletin, United States uary 4, 1941), Vol. I, No. 4, 4 pp.

Ch.

II

‘THE NEW PUBLIC ADMINISTRATION

1]

philosophy.”” A plea is made for the recognition of the “generalizing mind,” especially in general staff positions. The point is made that special ists are both desirable and necessary, but that someone has to coordinate, integrate, add up, and synthesize. A “generalizing mind” is one which can grasp a multitude of complex relationships, penetrate and understand the significant conclusions of a variety of technical specialists, bring them together into order and unity, and lay out a plan of action which is within the realm of existing possibility.

The general administrator,

meaning by that term one who functions as independently of any professional or functional prepara

an administrator tion he may possess, is no new phenomenon. American students of politi cal science have long heard the praises of the British administrative class. In the United States the city manager is rapidly approaching a half

administration. The governmental re developing general search movement has been administrators for approxi mately the same period. Beginning with the training institute of the New

century

of successful generalized

York Bureau of Municipal Research, the higher educational institutions of the country are rounding out several decades of producing an ever increasing volume of trainees in public administration, who are fulfilling Immediately these considerations raise certain contro a long-felt need.

for public administration. of

all

versies relative to training

These controversies bring them well

a

it

is

to

are so vital in discussions administration that complete review before proceeding farther. out into the open for SELECTED READINGs BOOKS AND MONOGRAPHS of

T.

New York,

in

the Improvement 1938), 981 pp.

and Practices

of

J.

A.

&

E.

G.

H., and Schwenning, The Science Production Organization. Sons, Inc., New York, 1938), pp. 1–29. (John Wiley Barr, S., Burton, William H., and Brueckner, Leo Supervision; Principles

Anderson,

Instruction.

(D.

Appleton-Century

Co., Inc.,

of

-

of

D. of

of

of p.

of

ofin

A. in

to

to

a

.

.

*

“.

capacity see public policy tens thousands different actions and public and governmental interest.” Paul relate these actions each other terms Knopf, New York, 1945), Appleby, Big Democracy (Alfred 43.

to

of

of

on

O.

of

E.

to

to of

7

8,

J.,

N.

of

Beard, Charles Austin. Philosophy, Science and Art Public Administration. (Address Delivered Before the Annual Conference the Governmental Research Association, Princeton, 1939), September pp. Brookings Institution. Investigation Erecutive Agencies the Government. Re port Investigate the Executive Agencies the Select Committee the C., Government (United States Government Printing Office, Washington, 1937), 1229 pp. Gaus, John M., White, Leonard D., and Dimock, Marshall Frontiers Public (University Chicago Press, Chicago, 1936), 146 pp. Administration. Gaus, John M., and Wolcott, Leon Public Administration and the United States Department Agriculture. (Published for the Committee Public Administra Service, tion the Social Science Research Council by Public Administration Chicago, 1940), 534 pp.

H.

INTRODUCTION

I2 Goodnow, 1900),

F.

J. Politics

[Ch.

(The Macmillan

and Administration.

Co.,

New

1

York,

pp. 1-93.

Graham, George A. Education for Public Administration. (Public Administration Service, Chicago, 1941), 366 pp. Hekking, Francis. Réflexions sur la Mécanique Administrative. (Editions de la Maison Française, New York, 1943), pp. 7–106. Martin, Roscoe C. The Growth of State Administration in Alabama. (Bureau of Public Administration, University of Alabama, 1942), 96 pp. President's Committee on Administrative Management. Report with Special Studies. (Government Printing Office, 1937), pp. 1–53. Upson, Lent D. The Growth of a City Government. (Detroit Bureau of Govern mental Research, April, 1942), 27 pp. Urwick, L. The Elements of Administration. (Harper & Bros., New York, 1943), pp. 7–19.

Walker, Harvey. Public Administration in the United States. (Farrar & Rinehart, Inc.; New York, 1937), 698 pp. White, Leonard D. Introduction to the Study of Public Administration. (The Mac millan Co., New York, Rev. ed., 1939), 611 pp. Willoughby, W. F. Principles of Public Administration. (Johns Hopkins Press, Baltimore, 1927), pp. 1–8.

PERIODICALS

to

2,

of

4,

a

5,

E.

of

3,

2,

2,

in

on

a

as

of

E.

3,

K.

L.

4,

lic

Ascher, Charles. “The Program of the Social Science Research Council's Committee on Public Administration.” American Political Science Review (December, 1940), Vol. 34, No. 6, p. 1195. Blankenship, Albert B. “Methods and Problems in Measuring Administrative Traits.” Public Personnel Quarterly (Spring, 1941), Vol. 2, No. 2, pp. 69–72. Caldwell, L. K. “Alexander Hamilton: Advocate of Executive Leadership.” Pub pp. 113–126. Administration Review (Spring, 1944), Vol. Caldwell, “Thomas Jefferson and Public Administration.” Public Administra pp. 240–253. tion Review (Summer, 1943), Vol. Dimock, Marshall “The Study Administration.” American Political Science Review (February, 1937), Vol. 31, pp. 28–40. Finer, Herman. “Principles Management.” Public Management Guide (October, 1935), Vol. 17, pp. 287–289. French, Patterson H. “Progress Report Research Administrative Aptitude.” pp. 66–68. Public Personnel Quarterly (Spring, 1941), Vol. No. Levitan, David M. “Political Ends and Administrative Means. Public Administra pp. 353–359. tion Review (Autumn, 1943), Vol. Merriam, Charles Theory for Administration.” “The Development Advanced Management (July–September, 1940). Vol. pp. 130–138. Rogers, Lindsay. “A Professor with Style.” Political Science Quarterly (Decem ber, 1941), Vol. 56, No. pp. 507–514. Wilson, Woodrow. “The Study Administration.” Political Science Quarterly (June, 1887), Vol. pp. 197–222.

CHAPTER

2

THE STUDY OF PUBLIC ADMINISTRATION Training the General Administrator There are two general controversies surrounding the question of college training for administrators. The first has to do with whether or not there is a field for the college-trained administrator without a background in functional subject matter, or whether administrators must first be special

ists in subject matter such as engineering, public health, agriculture, for estry, and scores of others which go to make up the public administration of today. Another way of saying this is the viewpoint that administrators must first be trained in a field

of civilian competence, a term used by Lewis

Meriam and discussed farther on in the chapter. The other controversy is concerned with the type of college training which is desirable to give those who intend to become general administrators. One trend of thought which formerly prevailed in American academic circles, and which is still very strong, looks with favor upon the British system of general liberal arts education emphasizing cultural subjects. The proponents of this school of thought maintain that the function of the col leges is to produce a cultured and civilized individual who will acquire administrative techniques through subsequent experience on the job. They

look with askance upon attempts to teach techniques and management processes in the college curriculum, feeling that such instruction would tend to produce the narrow technician rather than the broad-gage person of all-round capacity and depth of understanding. The other side of this issue, and the one which is tending to prevail, whether for good or for evil, is that the training of administrators will be promoted by special curricula in public administration. Such courses should usually be given upon the graduate level and should embody the general principles of public adminis tration, organization and management, personnel, finance, and planning. Graduate study should be preceded by a very broad liberal arts education with preference or major emphasis upon the social sciences. These are the questions which form the basis for the discussion of this chapter.

The British Administrative

Class.-The British

administrative

class

is made up of some 2,000 career men who occupy those administrative posts which are permanent in tenure, and directly below the ministers and I3

INTRODUCTION

I4

[Ch. 2

political undersecretaries. The members of this group are recruited from university graduates between the ages of 22 and 24, chiefly from Oxford and Cambridge.

The examination is similar to the one known as the Test, Oxford Honors and conforms rather closely to the content tradi tionally expected of the British educated person. This means education in the classics, including Latin and Greek, ancient and modern history, philosophy, modern languages, and the basic sciences. There is very little of what is ordinarily included in the social science curriculum in American universities. Practically the only concession to public administration would be some questions in economics touching upon some very broad aspects of Graduates who have been subjected to such a broad cul tural curriculum are thought likely to possess the “generalizing mind,” already treated in the previous chapter, and to have a capacity for coordina tion and synthesis. public finance.

While there have been some courses in public administration

taken toward teaching professional at the British universities, development

steps

along these lines has not been commensurate with that in the United States. Indeed, some British educational and administrative leaders themselves question the advisability of teaching public administration courses.

Posts in the English civil service are career positions, with great social prestige attached to them." It is difficult for an American to understand this English attitude toward civil service, because an opposite opinion has pre vailed in the United States. Many Americans have assumed that only the weak and unambitious sought civil service jobs, and then only as a place of refuge from the keen and rough competition of the business world. In England, membership in the higher civil service is definitely a mark of high social status. The younger men of the upper classes have for genera tions shunned the field of commerce to enter the colonial, military, or civil services. American readers of the weekly edition of the Manchester

Guar

dian no doubt remember the advertisements of H. Gordon Selfridge, the American merchant who set up a business in London, in which he tried to sell a business career to young Englishmen.” In the United States a differ ent kind of message must be preached to competent youth—a message that positions in public administration really present opportunities for CareerS.

An American Administrative public administration

Class.--Most American

are agreed that an American

specialists in

administrative

class is

* Note implication that a desirable quality for cabinet ministers is ability to resist being “socially overawed" by a civil servant, in Rebecca West, “. . . From England,” Harper’s Magazine (November, 1945), Vol. 191, pp. 445, 447, 448. *Selfridge also wrote a book entitled The Romance of Commerce (John Lane, The Bradley Head, Ltd., London, 1918), 385 pp., in which, especially in the first and the last chapters, he extols the virtues of a business career.

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2]

15

Indeed, there is convincing evidence to the effect that such an administrative class is actually developing. In fact, it really exists, although desirable.”

not with the same well-defined status which one finds in Great Britain. The

first serious attempt to develop an administrative class started in the train ing institute conducted for several years by the New York Bureau of Municipal Research, which had its beginning in 1904. Under the tutelage of such leaders as William H. Allen, Charles A. Beard, and Frederick A. Cleveland, the bureau has been responsible for producing such well-known contemporary leaders as Luther Gulick, William E. Mosher, Lent D. Upson, Clarence E. Ridley, and Robert Moses. Curricula leading to the master's degree in public administration began in about six institutions prior to, and immediately after, the first World War. Today the universi ties and colleges participating in the field of public service training are numbered in the scores.” As was mentioned above, it has long been a matter of controversy as to what, if any, type of training the American universities should offer for those preparing to enter the public service. Those who had majored in the traditional political science, without any such “tool” courses as statistics and accounting, had considerable difficulty in passing the civil service examinations, since these examinations were not designed specifically for traditional political science majors. There had always been a rather strong group

among the professors who deplored any attempt to teach “tool” courses and techniques. Political science has always been skeptical of the quantitative approach and statistical methodology. Its own methodology

has been largely historical, philosophical, and legal. It has tended to share the distrust which these disciplines have evidenced toward quantitative and technical means of study." Therefore, the political science curriculum long resisted the encroachment of such technical courses as public administra tion principles, organization and management, personnel administration, and financial administration.

The more conservative of the American universities

were influenced

largely by the British view that there is no such thing as public administra tion. The previous discussion of the background of the British administra tive class illustrates the British point of view. One of the most consistent American proponents of an attitude similar to this is Lewis Meriam.

Lewis Meriam on Training for Public Service.—Lewis Meriam of the Brookings Institution has for many years been warning educational institutions

against developing professional

curricula in public administra

* Better Government Personnel, Report of the Commission of Inquiry on Public Service Personnel (McGraw-Hill Book Co., Inc., New York, 1935), p. 36; contra, Lewis Meriam, Service and Special Training (University of Chicago Press, Chicago, 1936), pp.

#;

*George. A.

Service,

Chicago,

Graham, Education 1941), 366 pp.

for Public

Administration

(Public

Administration

-

INTRODUCTION

16

[Ch.

2

sp.

tion on too large a scale. While he admits that there is a definite place for teaching general courses in public administration as a cultural background along with other political science courses, he denies the need for training

he

to

understands

be

for the federal service, where for many years. He has expressed he

an

as

as

to

government, and professes talk only employed was administrative officer heartily agreeing with what himself

in

be

so

in

is

it is

to

specialists in public administration per He emphasizes two points rather sepa strongly. The first undesirable, and often impossible, that subject rate administration from functional matter the federal service. He admits that the same conditions might not true state and local

the modus

on

is

in

complete specialty

morale engen up

the superior

by

favor

a

than

of

rather

in

schools argue

by

itself."

to

on

and technical Meriam goes

a

be

professional

a

as

to

is

of

to

“a

of

of

Harvard, which comple the Littauer School act those who have already acquired field civilian competence.” The second point emphasized that public administration the pro supplementary to, and part of, the larger fessional level should operandi

ment

to

in

having administrative posts filled persons who have worked dered through the service and who are qualified the professional subject matter. He points out the injury morale which occurs when administrative posts

in

to

in

are marked out for outsiders who have not grown up the organization, especially when their claims competence are purely administrative with preparation professional subject matter." out the

of

The Junior Administrative Technician Test.—In spite these con trary views our colleges and universities have, during the last decade, in

the intern programs

an

such organizations

as

facilitated

of

greatly

of by

of

at

in

public administration, and creased substantially their course offerings graduates from these institutions have gone intosdesirable posts ever accelerating rate. The entrance into the service these graduates has been the

in

of

in

Washington, the Indian Service Public Affairs Albuquerque, the County Los Angeles, and the Southern Regional Train ing Program." National Institute

Prior

a

to

In

to

in

public for the trainee Original entry administration enter the federal service. was rather diffi cult, but progress was often quite rapid thereafter. 1934, the United college graduates for States Civil Service Commission gave test open to

there was little opportunity

1934

to

;

p.

°

of

in

of

4,

*

or

Industry?” American Political Science Lewis Meriam, “Public Service—Occupation Review (August, 1938), Vol. XXXII, No. 719 Lewis Meriam, “Value Students Courses Public Administration,” American Political Science Review (October, 1940), Vol. XXXIV, pp. 986–993. Chicago Press, Lewis Meriam, Public Service and Special Training (University at

of

of

of

;

of

7

in

Chicago, 1936), 83 pp. George W. Bemis, Internship Training for the Public Service Los Angeles County Research, University (Bureau Governmental California Los Angeles, December, 1939, mimeo.) pp. 8–9 Howard White, “Selecting and Training Prospective Public Admin istrators,” Journal Collegiate Registrars (October, 1945), pp. 33–45. the Association

Ch. 2]

THE STUDY OF PUBLIC ADMINISTRATION

17

Junior Civil Service Examiner. The test was taken by thousands of people, and the register was used widely for positions outside the Civil Service Commission the duties of which were other than personnel in nature. The same type of test was repeated in 1936. In 1937 there was an examination for Social Science Analyst, through which department heads succeeded in

recruiting a number of public administration specialists. However, the test which holds most significance from the standpoint of university train ing in public administration is the one given yearly since 1939 under the

Junior Professional Assistant category, with the option of Junior Adminis

The educational requirements in the Bachelor of Arts degree, were as follows: trative Technician.*

1940,

in addition to

hours in public administration, political science, or a combination of these subjects, provided that at least 12 hours must have been in any one or a combination of the following: principles of public administration; public personnel ad ministration; organization, management, public and supervision; budgetary or fiscal administration; administrative or constitutional law; and courses in the application of public administration principles to functional activities such as public welfare administration, public health administration, and public utilities regulation.” . . . 24 semester

or economics,

The following quotation gives these people do:

a general idea

of the kind of work which

A negligible few appointees are given supervisory assignments. Rather, they are put at plain clerking, at administrative analysis of an elementary nature, or at semi- or sub-professional work demanding a familiarity with the structure, management, and finance of govern ment. Their duties are primarily as staff aides; they perform as per sonnel or budget assistants, as administrative clerks, or as junior analysts in administrative and planning studies. Among the federal agencies recently appointing such personnel are the War Department, the Social Security Board, the Department of Agriculture, and the Bureau of the Budget. A few Junior Administrative Technicians find in certain types of line activities, e.g., local institutional analysts in the Bureau of Agricultural Economics, field-assistant work with the Social Security Board, and state and local government finance in the Bureau of the Census.” employment

There is ample evidence that the registers for Junior Administrative Technicians for 1939 and after enjoyed considerable prestige and were

gº

* Frederick M. Davenport, Lewis B. Sims, et al., “Political Science and Federal Employ Political Science Review (April, 1941), Vol. XXXV, No. 2, pp. 304–310.

mºIbid.,

bid., p. 305. p. 308. 10

INTRODUCTION

18

[Ch. 2

widely used by the appointing officers of the departments. Indeed, some of the departments started their recruiting activities in 1941 even before candidates knew that they were on the register. There seems little question but that the Junior Administrative Technicians have performed a needed and useful service with credit to themselves

and with satisfaction to their

It may be that the apparent success of this endeavor was due partially to the extraordinary expansion of governmental activities during the years of military defense developments which began in 1940. How superiors.

ever, the fact that a great many of the appointees went into normal civilian activities for which appropriations were being reduced because of defense demands, would indicate that they were satisfying some permanent need.

The Graham Report.—George Graham's Report on “Education for Public Administration,” ” conducted under the sponsorship of the Public Administration Committee of the Social Science Research Council, was issued in 1941. It found five types of training in which universities should be interested: (1) the traditional professional school, the graduates of which are increasingly going into the public service; sciences; (3) research in the social sciences;

(2) research in the natural (4) auxiliary staff agencies

in personnel, budgeting, purchasing, public relations, and fiscal activities; control and (5) managerial work.” The significant finding of the report emphatically favored post-graduate engaged

without sacrificing the civilizing and cul tural attributes of the liberal arts education. The report favors greater cooperation between the universities and the civil service commissions: training in public administration

the former could offer more graduate courses which are designed espe cially to train for public administration, whereas the latter could-adapt their examinations to test for those attributes which the liberal arts college has for many years regarded as helping to make up the well-rounded individual. The students who should be permitted to take professional training for public administration should be a selected group, and the courses should be mainly on the graduate level. Faculty members, specifically designated for the task, should provide individual supervision. The courses taken should be founded upon a liberal education with some emphasis upon political science and economics, supplemented by such “tool” courses as accounting and statistics. Graham strongly emphasizes the necessity of introducing public administration trainees to the social sciences.

The report then continues to give a very interesting account of the activ ities of the major educational institutions offering courses in public admin istration. To gain this information Graham traveled in many parts of the country visiting the institutions concerned. The general tenor of the report ** Graham, op. ** Ibid., p. 19.

cit., 366 pp.

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2)

I9

Ch. 2

is to give

administration

The Content of Public Administration

stion

all

to

as

to

a

in

sive emphasis upon staff and management subjects. At one place general by strong leaning toward economics are participated seminars with temporary consultants from particular governmental services. Another

the traditional

to

is

of

a

POSDCORB

POSDCORB.

is,

seem

the lines of Gulick's

of

desirable

administra

content has not been achieved and perhaps not training practical objective this time. The most for such would develop those skills which enable person function along

Standardization to

tion.

political science curriculum for their training

in

on

emphasizes state and local administration, 'sending students into the com munities research assignments. Most institutions lean strongly upon

be at

to

word designed

in

is,

is

of

a

of

made-up

of

course,

a

call atten tion the various functional elements the work chief execu tive because “administration” and “management” have lost all specific content. POSDCORB made up the initials and stands for the following activities: Planning, that working out broad outline the things that need accomplish the purpose done and the method for doing them set for the enterprise; to

is,

is,

of

of

Organizing, that the establishment the formal structure authority through which work subdivisions are arranged, defined and coordinated for the defined objective;

is,

all

to

is

of

in

of

is,

of

in

of

Staffing, that bringing the whole personnel function and work; training the staff and maintaining favorable conditions Directing, that making decisions and the continuous task specific and general orders and instructions and embodying them serving the leader the enterprise; as

of

Coordinating, that important duty interrelating the the various parts the work; Reporting, that keeping those whom the executive re going on, which thus includes keep sponsible informed what is

to

ian nSe

to

DW

to

‘ing

been much standardization

be

due

of content in public adminis tration courses given on the graduate level. More than 100 colleges in the United States offer, usually within the political science department, a survey course in public administration as embodied in the texts of Leonard D. White, W. F. Willoughby, and John M. Pfiffner. For a list of the institutions offering instruction in public administration see Charles Ascher's tabulation in successive issues of The Municipal Yearbook, circa 1938–1941. On the graduate level the approaches differ the way from giving considerable public works and public health, attention such line functions exclu There has not

to

heir

as is,

fore

bill of health to the principal types of training for public which have been developing during the past quarter century.

a clean

of

SOme

INTRODUCTION

2O

[Ch. 2

ing himself and his subordinates informed through records, research and inspection; Budgeting, with all that goes with budgeting in the form of fiscal planning, accounting and control.18

There is little question but that the content of public administration courses tends to emphasize, more and more, the over-all managerial activi ties, and the so-called “staff” activities rather than the line functions of

There are still a number of persons whose opinions are worth while who believe that there should be a stronger emphasis upon giving a broad over-all view of the line functions, such as police, public health, agri culture, public works, and the like; but the graduate curricula tend, more government.

and more, to emphasize seminars in managerial and staff problems, per sonnel administration, financial administration, planning, and organization and management.

The Need for the Study of Administration Those who ponder upon the problems of methodology are constantly confronted with the problem of whether to begin at the bottom or to begin at the top. There is a certain type of armchair philosopher who professes for details and who questions the quality of any effort which deals with detail. He is impatient with the quantitative method and such “tool” studies as accounting and statistics and disposes of them as being “admin istrative details.” Such a person likes to think in terms of large abstract a dislike

principles, trends, events, and categories. At the other extreme is the detailist, utterly lacking a sense of synthesis. He is the narrow specialist who seldom ventures outside, but who knows

with great preciseness the fundamentals

of

He may

be

may utterly lack a coordinated appreciation of how his knowledge may into the cosmic whole.

of

is

as

combination happy after medium. As philosophers and the specialists. Inasmuch society, affect every cultural pattern a

is,

in

of

increasingly specialized this age these two types, that the constantly sought administration, for there need for both the needs

of

The world undoubtedly technology

a

some consequence and attainment among his own kind, and yet

fit

person

of his own field.

administrative problems today

of

Some people claim that the great civilizations

of

a

of

it

seems desirable that the leaders thought appreciate the value of, and lend respectability to, the study administration.

the past have broken of

34

in

in

p.

of

in

of

on

L.

**

Organization,” Luther Gulick, “Notes the Theory Luther Gulick and Urwick (Eds.), Papers on the Science Administration (Institute Public Admin istration, New York, 1937), 13; see also Lawrence Appley's management formula (Society for Per his pamphlet entitled The Human Element Personnel Management pp. sonnel Administration, Washington, D. C., January, 1941),

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2]

2I

the facilities for administration had not kept up with the demands made upon them. Thus, one of our foremost contemporary politi cal theorists is responsible for the statement “. . . that Rome was con

“. its

down because

is

. .

of

of

to

to

fronted with problems of administration with which technical knowledge cope.”” inadequate was He further states that the need un precedented for giving our attention what we can learn about the tech nique successful administration and about the successful preservation

of

in

by a

is

A

order without demonstrable retrogression.”” similar conclusion ex pressed well-known American administrator and scholar these words: so

of

.

tion.16

-

to

of

of

so

be

is

to

of

great climaxes One plausible explanation for the breakdown many specialists and human culture that there came few generalists that the co-ordinating and integrating forces society specializa became too weak make effective synthesis the riot

Politics and Administration is

so

of

in

of

a

of

a

Every discipline has theoretical foundation and basic ideology. The keystone for study public administration the distinction between the concepts politics and administration. The word politics used this connection bears the more virtuous connotation the Greek philosophers in

in

popular usage. than the derogatory meaning often implied processes, procedures, Politics embraces the and activities involved the

rather

of

it

of

is

by

is

on

to of

public policy and the furnishing formation and declaration the facili carry Administration, policy ties and means with which that into effect. the other hand, the carrying into effect this will once has been political processes.” premises, therefore, made clear From these

a of

is

of

to

its

to of its

derived the keystone the new public administration—the conclusion that politics should stick policy-determining sphere and leave administra political apply tion own technical processes free from the blight meddling.” This two-way division governmental powers practical operating principle.

of

p.

2.

p.

a

in

of

of

A

G.

pp.p. E.

of

to

of

as

of

P.

in

to

of

of

in H.

is

an

.

in

in

to

B.

of

on

in

as

of

a

as

of

an

by

an

J.

is

of

J.

F.

1° # 17

E.

**

Catlin, Study the Principles Politics (The Macmillan Co., New 54. 55–56. Morgan, “Sociology meeting the T.V.A.” (Before the American Sociological Society, December 28, 1936, mimeo.), 18; Goodnow, Politics and Administration (The Macmillan Co., 1900), Administration,” Political Science Quarterly (June, 1887), Woodrow Wilson, “The Study Vol. II, pp. 197–222. coming pass through the growing power *This school administration the superintendent. Edmondson, “Recent Achievements School Administration,” Public (August, 1930), Vol. XII, pp. 429–433. Private organization and manage Management analogous distinction. Organization ment recognizes Thus there Will evi directors, and Organization Thought denced the board the staff and research Principles agencies, and Organization Dutton, Performance the line workers. Applied Organization Business (McGraw-Hill Book Co., Inc.; New. York, 1931), pp. 5–7. For very practical distinction between policy matters and administration see 10,000 40,000 Population Manual Public Works Records and Accounting for Cities Winona, Minnesota (Committee installed Uniform Street and Sanitation Records, Chicago, 1932), pp. 69–72. George

York, 1930), Ibid., Arthur

INTRODUCTION

22

[Ch.

2

as

its

do

Let no apostle of political realism think that advocates of such a separa tion of powers are unaware of doctrinaire pitfalls. They not advo to

is

of

of

be

be

a

in

no

aggra

fire department district attorney's

a

ascertain

in

much easier

much more

The dividing line between

others.

in

in

is

vated some fields policy and administration police department, than

situation will

denial that con closely intermin

in

action. Such activity than

policy will

to

in

of

siderable number gled with administrative

There of

instances questions

is

a

competence.”

administrative

of

legislative

in a

or

in

a

to

in

embalmed is

it

be

the Constitution stand for centuries, was judicial legislative, executive, the classical threefold division into and func merely tions. The desire establish rule action which will auto matically determine, given matter properly most cases, whether

cate that

a

in

a

in

A

of

be

in

a

in

a

recorder's office than public works than poor relief. fairly realistic concept politics and administration may depicted portion upon upper pure chart with the drawn white and marked “politics” and the lower part pure black and marked “administration.”

office, and

of

of

to

The line between the two would be shaded from black various shades grey, finally merging almost imperceptibly into the white. The line at

is

so

a

in to

of

a

is

it

at

be

others, indi demarcation would narrow some points and very wide cating that sometimes rather easy make clear distinction between politics and administration, and that other instances the two are intermingled and confused that clear distinction difficult.

in

in

be

to

be a

a

as

If

this hypothetical chart were blocked off into vertical sections, each police, fire, public works, which represented functional activity such tendency for the line between and public welfare and relief, there would politics and administration much more distinct some cases than in

be

others. Thus, the pure white and the pure black would much closer together technology those functions where science and had become highly developed and based upon generally accepted administrative procedures.

to

of

is to is

of

engineering and sanitary sciences and the hazard largely true involved the failure have qualified personnel. The same the fire department. Both the water and fire departments, moreover, are subject the surveillance the National Board Fire Underwriters,

of

to

of

of

to

in

great development

of

In

be

In

particularly true municipal administration this would fire and water departments, which are almost universally well run and comparatively free from politics. the case the water department this due the

because

its of

administration the police department commercially profitable vice. intimate relationship

in

affecting

to

politics

of

in

of

higher insurance rates for substandard admin which invokes the penalty istration these departments. One would undoubtedly find more

to

to

to

as

of

19 See city managers, City Manager Yearbook (International City Man discussion agers' Assn., Chicago, 1932), pp. 116–132. Some managers have had agreements with their councils what activities belonged the manager and which the council.

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2]

23

On the level of the national administration

at the present time two emerge strong representatives highly bureaus as of a scientific and technical approach to their problems, with a resulting minimization of political influ ence. These are the Forest Service in the Department of Agriculture and the Public Health Service in the Federal Security Agency.”

The City Manager as an Administrator.—A recent nationwide study of the city manager movement in the United States contained some interest ing observations on this question. A significant conclusion was that most managers were nonpartisan administrators.

in

the

be

to

of

of

man

great deal this respect came

so

in

have

the city council

of

continued

a

to to

of it

release the time members policy, community

more

done. Third, their colleagues

the manager plan tended that they could devote matters, and public relations. While they interest administrative matters, their

of

general that the adoption

of

It to

in

by

administration better accomplished the work agers were influenced the ethical code International City Managers' Association.” was found

a

of

to

in

In

in

by

it.

. . . They scrupulously avoided identifying themselves with special interest groups in the community and rarely participated in political campaigns. The position of city manager, when endowed with ade quate authority and responsibility, imposed natural restraints upon the plan man who filled the first place, the position was part many cities adopted the people order subordinate partisan Second, managers found from experience that impartial motives.

it

by

be

to

an

in

determinations bolstered technical and pro fessional opinions which were secured from the manager and his assistants. While did not bring about absolute separation between politics and

as

in

a

of

to

of

a

its

healthy relation did result between the two. By control manager brought administration, the the council was closer and significant part the servant the council, the manager had the prepa administration,

to

city.

by

so

do

it

to

to

to

all

well

apply equally make generalizations vary considerably for the situation was found from city Indeed, the principal conclusion was that the legislative branch

was also found inadvisable

in

]t

to

to

of

rely the legislative program. The legislative body did not have tipon legislation merely control administration, when could controlling the city manager.”

ration

cases,

of

of

F.

D.

of

of

a

*

For discussion the organization and activities these agencies see: Darrell H. C., 1930), 268 pp.; The Forest Service (Brookings Institution, Washington, William A. DuPuy, The Nation's Forests (The Macmillan Co., New York, 1938), 264 pp.; Schmeckebier, Laurence The Public Health Service (Johns Hopkins Press, Baltimore, 1923), 298 pp.; Thomas Parran, “The Aims the Public Health Service,” Annual Report the Smithsonian Institution (Government Printing Office, Washington, D. C., 1938), Smith,

pp. 463-468. in

Harold

A.

**

Stone, Don K. Price, and Kathryn H. Stone, City Manager Government United States (Public Administration Service, Chicago, 1940), pp. 70–71. **Ibid., pp. 178–179.

the

INTRODUCTION

24

[Ch. 2

always overlapped with administration but that the degree of overlapping varied quite widely, as depicted in the following chart. . . .

The

amount

of overlap

depends, first, on the understanding

each person has of the respective duties and responsibilities of council and manager, and second, on the relative strengths of the council and the manager in resisting inside and outside pressures. In some cities manager reducing by the council and the avoid friction the overlap

to a minimum, as in Fig.

(a). In other cities excursions into

each

COUNCIL

COUNCIL

COUNCIL

COUNCIL

MANAGER

MANAGER

MANAGER

MANAGER

(a)

(b)

(c)

(d)

#

other's territory run deep, as in Fig. (b), resulting in a large area where friction and discord may occur. Other types of trespassing in which manager or council cross the line between policy and adminis tration even though they may agree with each other on the division between their functions, are indicated in Figs. (c) and (d).28

Drawing the Line of Distinction.—To secure the proper equilibrium between politics and administration it will be necessary to have a working arrangement between political officers and administrative officers. The desired situation is best illustrated by the relationship between the highest

civil service officers and ministers in Great Britain. Civil servants reared and educated in the Tory tradition were able to serve the Socialist ministers in the labor governments with a faithfulness and conscientiousness equal to that extended to their predecessors. When the labor group came into power, it inherited a public service not used to working with ministers raised the labor movement. This situation was particularly noticeable in the higher branches, wherein reposed the duty of rendering advice to the minis ters. Ramsay MacDonald and other members of the government were impressed by the neutrality and good faith of the civil service.*

in

*

Harold A. Stone, Kathryn Stone, and Don K. Price, “Appraisal of Council-Manager Cities,” Annals of the American Academy of Political and Social Science (September, 1938), Vol. CXCIX, p. 52. ** Leonard D. White et al., Civil Service Abroad; Great Britain, Canada, France, Ger many, Report of the Commission of Inquiry on Public Service Personnel (McGraw-Hill Book Co., Inc., New York, 1935), pp. 44–45.

Ch. 2]

THE STUDY OF PUBLIC ADMINISTRATION

In Great Britain less than a hundred

offices

25

in a service numbering thou

sands are vacated by a change in government, and these are purely political in nature and openly stamped as such. In the United States two steps in this direction are necessary: first, a forthright and open acknowledgment that some offices are political

and, second, a and others administrative; resulting reduction of the offices whose duties are purely administrative but in which appointment and tenure are yet subject to political vicissitudes. In other words, we need a rapid expansion of the merit system, both upward and outward, in most jurisdictions. The following distinctions between political and administrative officers are offered in the hope that they may indicate where the merit system should begin, and where it should end.

Political Officers . . .

.

.

. . 1

.

Amateur Nontechnical Partisan Temporary More public contacts More legislative contacts More policy formulating More decisions More coordination Influenced by popular opinion

. .

.

.

. . .

Administrative Professional Technical Nonpartisan Permanent

Officers

Fewer public contacts Fewer legislative contacts Less policy formulating More advisory More performance Influenced by technological

data gleaned from study and research

The following division of duties has been suggested as probably indica tive of current thinking on the relationship between the city council and the city manager.

For

For

the Council

Budget adoption Adoption of regulatory ordinances Determination of salary scale Safeguarding the financial standing the city

of

Awarding contracts

Determining frequency of garbage lection

col

Location and size of a playground Advisability of giving health education

the Manager

Budget making Enforcement of ordinances Designation of employees to receive this salary Budgetary control; debt service Purchasing Layout of garbage collection routes Design and maintenance ground Instruction 25

of the

play

and Policy.—It would be folly to say that administrative officers should have absolutely no hand in the formulation of policy. They

Civil Servants

* Stone

et al.,

“Appraisal of Council-Manager Cities,” loc. cit., p. 53.

INTRODUCTION

26

[Ch. 2

may legitimately participate in this process in several ways, the most impor tant of which is probably in the presentation of studies, surveys, and reports and recommendations. Here the staff officer is acting merely as a fact finder, drawing his policy recommendations from the facts as revealed. There is a point in the dissemination of this information beyond which the administrator should not pass, but just where the divid

with conclusions

ing line between politics and administration

should be drawn is not always city managers they clear. Some feel that are justified in campaigning for bond issues. Others feel that this is an activity for lay citizens and council members only. The permanent official may legitimately influence policy through his rightful position as servant of the governing legislative body. The superintendent of schools and city manager are in this position. In a municipality a representative of the bureau of the budget may, as a matter of practice, be present at council meetings and may take a prominent part in the deliberations of the finance committee, which ordinarily is among the most powerful policy groups in the city. The unpreparedness of the amateur in political office to cope with matters demanding technical infor forces him to rely upon the advice of permanent offi cials. Thus the sheer pressure of circumstances in the modern state com pels the politician to defer to the expert. It is in this field of counsel and mation and training

influence on policy. A similar place influence is not accorded him in the public forum or on the campaign

advice that the expert has a proper

of

platform.”

Terminology

to

of

advisory

capacity only, and sometimes

to

an

who are acting

in

all

Considerable difficulty is encountered in the study of public administra Many of the most significant terms in the tion because of terminology. field are used in more than one technical sense. For instance, the word people “staff” sometimes refers to the people employed, sometimes personnel

a

to

a

as

and finance activities. Other words such “function” have fairly definite meaning within wide range, but offer difficulties when one tries narrow

is a

to

to

as

a

of

certain technical fields,

an

has already been done

in

in

of

of

a

is

of

a

if

of

protection persons and property down function. For instance, function, then what one its subdivisions such traffic control be choosing called? Some men have favored the committee make precise terminology public administration. lexicon the field This outstanding

example

of

in

in

a

a

2,

1,

of

in

of

of

a

*

superb discussion policy making See the part British civil servants Policy,” Amer Parliamentary Charles Aikin, “The British Bureaucracy and the Origins pp. 26–46 (April, ican Political Science Review (February, 1939), Vol. XXXIII, No. 1939); Vol. XXXIII, No. pp. 219–233. See also Fritz Morstein Marx, “Policy Formu lation and the Administrative Process,” American Political Science Review (February, 1938), Vol. XXXIII, pp. 55–60. Note recent protest against civil servant's neutrality David M. Levitan, “The Neutrality the Public Service,” Public Administration Review (Autumn, II, 1942), Vol. pp. 317-323.

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2]

being the work of the National Committee on Municipal Accounting. organization has issued a pamphlet which has found an acceptance

27

This suffi

ciently wide to justify several editions.” There is often a tendency for persons in a new line of endeavor to develop a jargon which is understood only by practitioners in the field. The objection to this development in public administration is that administra tors have innumerable contacts with laymen. Administrative organization and procedure is apt to be on a firmer foundation if based upon wide pop ular acceptance. Clothing it in a pseudo-scientific terminology would prob ably have the effect of arousing the apprehension and opposition of laymen, although much can be said for the fact that people often tend to have respect for that which is enveloped in an aura of mystery, giving credence

to that which is not understood. Undoubtedly standardized terminology is desirable in so far as it enables people to understand each other. The principal question is whether or not the science of administration is sufficiently advanced as yet to justify an attempt to standardize terminology. To many observers, it is very doubt ful that such a point has yet been reached.

Popular resentment toward stilted official language gained considerable publicity from the outcries of a former congressman who dubbed it “gobbledygook.”” The criticism is not so much of the use of technical and professional terminology as of long sentences, wordiness, and deliberate attempt to “double talk.” This results, to some extent, from the bureau

cratic tendency to remain neutral and

state both sides

Distinction Between Administrative

and

of an issue.

Executive.—The

words

and “executive” have a rather precise meaning in the literature of industrial management, and these terms are used in the British civil service with almost the same meaning as in industrial manage

“administrative”

ment.

However,

American

usage.

one

In

encounters pitfalls with the word “executive” industrial management, “administrative” refers

in to

those officers who stand between the board of directors and operations. They are the ones who plan broad policy matters, who contact the public and the board of directors, and who exercise a broad over-all control of operations, although they are not in immediate proximity thereto. Execu tive officers, on the other hand, are below the administrators and in direct

A plant superintendent would be an executive, vice-president whereas a in charge of plant operations for several plants would probably be an administrator.

charge

of operations.

gº

** Municipal Accounting Terminology for State, Municipal and Other Local Govern No. 11 (National Committee on Municipal Accounting, Chicago, June, 1941, .), 34 pp. *Maury Waverick, “The Curse of Gobbledygook,” Reader's Digest (August, 1944), Vol. 45, pp. 109–110; Rudolf Flesch, “More About Gobbledygook,” Public Administration Review (Summer, 1945), Vol. 5, pp. 240–244.

INTRODUCTION

28

In

_[Ch. 2

the terminology

of American political science and constitutional law, an executive officer is the President, governor, or mayor. He is a political entity placed in the hierarchy above administration. To the office of chief executive is attached some high and important political power, such as the President's supremacy in foreign relations. As used in the three way separation of powers into executive, legislative, and judiciary, “executive” also included the administrative

branch of government.

Management.—The

word “management” is probably one of the most' difficult of all. It is one of those words which usually carry rather definite meanings, but which are defined with great difficulty. It is sometimes utilized to mean both “administration” and “executive” as used above, yet the popular concept is probably one which more nearly approaches what is referred to as the “executive” in industrial management. For our purposes

it is a generic term rather synonymous with the over-all concept exemplified “Manage by the term “administration” as used in public administration. is indicative of professional personnel charged with the general task of directing others in getting work done. A manager is one who gets work done without doing it himself. This definition covers the field em concepts bodied in “supervision.”

of

all

ment”

the terms “administration,” “executive,”

on

Management.—The

and

President's Committee Admin Management terminology expression istrative introduced some new with the “administrative management.” The objective the committee was deal management, reorganization arrangement with over-all not the

or

in of

to

of

Administrative

in

it

to

in

in

to

point out that their principal interest was bureaus. Members desired management rather than organization, and management that was distinguish over-all nature from bureau operations and from mere systems and procedures. SELECTED READINGS

H.

BOOKS AND MONOGRAPHS

46

of

of

&

on

of

E.

A

of

of

of

A

G.

E. of

in

2,

in

A.

Appleby, Paul Big Democracy. Knopf, New York, 1945), pp. 1–27. (Alfred Bemis, George W. Internship Training for the Public Service Los Angeles County. Studies Local Government No. Bureau Governmental Research (University California, Los Angeles, December, 1939), mimeo., pp. Catlin, George Study the Principles Politics. (The Macmillan Co., New York, 1930), 469 pp. Cohen, Emmeline W. The Growth (George Allen the British Civil Service. Unwin, Ltd., for the Fabian Society, 1937), 254 pp. Inquiry Commission Public Service Personnel. Better Government Personnel, Report. (McGraw-Hill Book Co., Inc., New York, 1935), 182 pp. Dale, H. The Higher Civil Service Great Britain. (Oxford University Press, London. 1941), 242 pp.

THE STUDY OF PUBLIC ADMINISTRATION

Ch. 2]

29

Finer, Herman.

(George Allen & Unwin, Ltd., for the The British Civil Service. Fabian Society, 1937), 254 pp. Key, V. O. “Politics and Administration,” in L. D. White (Ed.), The Future of Government in the United States; Essays in Honor of Charles E. Merriam. (University of Chicago Press, Chicago, 1942), pp. 145–163. (University of Chicago Press, Meriam, Lewis. Public Service and Special Training. Chicago, 1936), 83 pp. Robson, W. A. (Ed.) (George Allen & Unwin, Ltd., The British Civil Service. London, 1937), 254 pp. Rodrigues Arias, Julio C. Sobre Algunos de Ciencia de la Administración. - (Uni versidad de Cuyo, Mendoza, Argentina, 1945), pp. 19–37. Selfridge, H. Gordon. The Romance of Commerce. (John Lane, The Bradley Head, Ltd., London, 1918), 385 pp. Stout, Hiram Miller. Public Service in Great Britain. (The University of North Carolina, Chapel Hill, 1938), 189 pp.

PERIODICALS

al.

Cole, G. D. H. “Reconstruction in the Civil and Municipal Services.” Public (January to June, 1942), Vol. 20, pp. 1–10. Administration Davenport, Frederick M., Sims, Lewis B., et “Political Science and Federal Employment.” American Political Science Review (April, 1941), Vol. 38, pp. MacGregor.

Asquith, “The Cabinet Minister and Administration: Political Science Quarterly (September, 1940), Vol. 55, .

R.

304–310.

Dawson,

Lloyd George, Curzon.” pp. 348-377.

H. Eliot. “Political Neutrality the Civil Service.” Public Personnel pp. 10–23. Review (April, 1940), Vol. Levitan, David M. “The Neutrality the Public Service.” Public Administration pp. 317–323. Review (Autumn, 1942), Vol. Maverick, Maury. “Gobbledygook.” Public Administration Review (Spring, 1944), Vol.

4,

2,

of

1,

of

Kaplan,

pp. 151–152.

3,

to

E.

in

of

to

Meriam, Lewis. “Value Students Courses Public Administration.” American Political Science Review (October, 1940), Vol. 34, pp. 986–993. Reining, Henry, Jr., and Stromsen, Karl “An Approach Public Service Train ing: Government Internships.” Public Personnel Review (July, 1942), Vol. pp. 190–199.

h

2,

of

S.

2,

of

Rommel, Rowena Bellows. “The Making Administrators.” Public Administra pp. 113–115. tion Review (Spring, 1942), Vol. Walker, Robert A. “The Universities and the Public Service.” American Political Science Review (October, 1945), Vol. 39, pp. 926–933. Wengert, Albert “The Study Public Administration.” American Political Science Review (April, 1942), Vol. 36, pp. 313–322. Zimmerman, Virgil B., and Dwight, Waldo. “A Worm's Eye View.” Public Ad pp. 55–60. ministration Review (Winter, 1942), Vol.

CHAPTER

-

3

PUBLIC ADMINISTRATION'S ROLE IN MODERN CIVILIZATION AND CULTURE Democracy, Its Implication

re Public Administration

less

effi

-

is

notation, and there widespread belief that public management cient than private enterprise.

is

an

in

by

is,

Many have been the attacks upon the democratic, liberal state, especially in the last two decades. Political democracy in the Anglo-Saxon sense has its roots in the economic laissec faire of Adam Smith and the Manchester school of economics. The Fascist reference to the “plutocratic” democra cies originated in the belief that real power in Anglo-Saxon political democracy belonged to the owners of capital and wealth. The growth of public administration therefore, regarded with misgivings, probably quite justifiably, the conservative elements the democracies them selves. For this reason the term “bureaucracy” has had invidious con

as

it

of

Many liberals also are apprehensive about the growth government. They regard encroaching upon man's fundamental liberties, regiment

coercive economy seemed

large body

a

of

an

in

classicists, humanists, and naturalists who

of

They are advocates regret the advent the industrial revolution. simple rural and rustic life based largely upon agriculture and the

of

a

Then there

of

way out." is

its

threaten something very dear and beauti American life and which was possibly

in

ful which had hitherto existed on

as

by

to

to of

a

of

of

routines and invading the dignity man individual. This probably expressed nostalgic view was best the lament well-known editor after the second election Franklin D. Roosevelt 1936. This talk ing him

the

handi

at

as

of

They revolt what they regard the vulgarity industrial They sooty place great civilization with factories and urban slums. store

by

its

crafts.

the cultural processes, including literature, music, poetry, arts, and to to

in

30

col.

1.

3,

Sec.

II,

1936),

p.

New York Times (November

8,

*

of

a

is

all

to

be as a

of

handicraft; and they regard mechanical techniques the modern world serious threat that worth while life. Such people tend impatient with politics. While evincing sentimental attachment simple rustic folk ways, they mistrust the intelligence and capacities the

ROLE IN MODERN CIVILIZATION

Ch. 3]

3I

to rule themselves. These are the reasons why many persons in category this tended to go Fascist in continental Europe.” It has been said that Anglo-Saxon political democracy had roots eighteenth century, eyes the economic liberalism the but our should not of

its

of a

is a

of

to

or

in

its

the full fruition that cultural and industrial phenomenon. Today, however, one notices the encroachment government services upon the hitherto sacrosanct domain laissez faire. This penetration

of

of

of

of

proportion

in

or

a

In

to,

trial

or

adult

product

the nineteenth population the male could either Great Britain the United States. By the 1920's, every subject, whether male female, had the right citizen vote product countries. this sense universal suffrage the indus revolution, for expansion was simultaneous with, and direct

in

vote both

flowering was the fact that only 1800, small proportion

to

blinded century.

In

be

of

in

its

masses

of

as

it,

of

to

government into the realm many problems. Can business gives rise political democracy, we have known function under the semi-collectiv government grow and still ism which seems inevitable? Can the activities

as

of

of

a

of

a

of

large sphere maintain freedom for the individual? Does the growth public administration imperil civil liberties and constitutional safeguards? greatly enlarged public administration function within the frame Can Anglo-Saxon political democracy work the spirit we have known

democracy

by

Charles

to

it

by

laid down

E.

approaching

seems desirable

democracy. meant problem this than by

just what

is

to

as

discussed any further,

as

assumptions

of

a

some understanding seems better way

of

Before this matter

is

it?

reach

There hardly restating

the

Merriam:

of

A

4.

of

in

rather than by the methods

of

of

p.

E.

* *

Survey of

Mann, “Culture and Politics,” Thomas pp. 149–151. Merriam, “The Assumptions Charles (September, 1938), Vol. LIII, 329.

XXVIII,

Graphic

Democracy,”

in

so

is

of

in

violence.”

expe the United States have had almost two centuries practice democracy. way deeply the The democratic

The people rience

of

of

5.

in

of

in

of

a

in

as

or

as

be

of

3.

of

2.

of

or

of

a

a

1.

of

protecting and man, the importance The essential dignity cultivating his personality on fraternal rather than on differential pfinciple; and the elimination special privilege based upon unwar exaggerated interpretation ranted the human differentials. constant drive toward the perfectibility mankind. The assump tion that the gains commonwealths are essentially mass gains and promptly possible throughout the community should diffused Pop great delay spread without too too wide differentials. ular decision last analysis on basic questions social direction and policy with recognized procedures for the expression this decision policy. possibility and its validation Confidence the con through the process scious social change accomplished consent

(February,

1939),

Political Science

Vol.

Quarterly

INTRODUCTION

32

[Ch. 3 -

grained in their daily lives and actions that it has become a part of them. Furthermore, they have become particularly adept at large-scale organiza tion in the field of corporate finance and industrial management. There is no doubt but that their inherent love of liberty and natural individualism will cause some hesitancy in accepting the full implications of expanding administrative services; however, once it is clear to them that it is a choice between the alternatives posed in Madariaga's Anarchy or Hierarchy, there seems little doubt as to what their reaction

will

be."

A simplified statement of Merriam's assumptions would be to the effect that democracy is the people organized to serve themselves. When the American people become convinced that they can organize to serve them as

by it

in

by

a

be

It

it.

selves to better advantage under a government agency than otherwise, they perfectly natural development will go ahead and do will always has been practical necessity rather than the past, dictated to

as

as

of

of

be

synchronize the state. Ways will found genius large-scale organization the American for industrial with the demo cratic practices our public life. Indeed, political democracy will have just much influence upon industrial management the latter will have any fine-spun philosophy

on the former, because

of

to

be

political democracy and the development Anglo-Saxon countries, one liberty im is

of

pressed

adopt democratic manage

in

to

by

.

reading the history constitutional safeguards

induced

of

By

if

the employer class can practices. ment zation

of

an

in

of

In

an

there seems little doubt but that we are entering era when democratic practices will invade the hitherto authoritarian short, there seems no reason why realm industrial management." democracy cannot function large-scale organi industrial civilization

a

the fact that the narrative discloses constant succession the aristocrats, the wealthy classes, and those with material vested interests, the clamor for social reform. has been the good

landmarks

of

necessities

to

that their ruling classes have bent the struggle. great social reform without destructive class The political democracy, part, our for the most have been

of

the Anglo-Saxons

of of

fortune

It

to

of

capitulations

to

it

to

is

of

a

be

to

to

of

in

be

sure, this manner. To was necessary behead one dynasty another, the Stuart Great Britain and exile and for the fight American colonists seven years' war against what they believed Georgian oppression; nevertheless, the main picture still one

achieved

to

of

(The Macmillan Co., New York, cooperation

(Brookings Institution,

H.

union-management

Policies and Industrial Management pp. 393–579.

Hierarchy

in

See the discussion

Anarchy

or

Madariaga,

of

de

of

be

to

*

S.

2.' pp.

It

in of

democracy. and peaceful adaptation the growth seems trying expect reasonable that this trend will continue the decades large come, when one problems development the chief will the to

gradual

Sumner Washington,

Slichter,

D.C.,

1937),

Union

1941),

Ch. 3]

ROLE IN MODERN CIVILIZATION

scale organization

to serve the people.

33

Much of this large-scale organiza

laissez faire economy

the Anglo-Saxon tradition

this stage can, and orderly change,

of

in

be

of

devoid

accomplished

to

The transition from

decade.

must,

a

its

tion will be within the framework of public administration, which will continue to increase control over private enterprise with each succeeding

violence and social calamity.

of

by

Liberty and Administration

To members

of of

tion.

laissez faire system

the League, liberty meant the maintenance capitalist enterprise."

of

to

of

of

to

In

of

of

Much has been said and written men both conservative and liberal turn mind about the sinister aspects arising from the expansion government. the 1930's, the American Liberty League tried counter act the governmental encroachments the New Deal upon the freedom men and corporations do business unfettered by governmental regula the

who see around them widespread social and something economic abuses and inequality. They would like correct Among evils, they using government these but abhor the means. this Henry George who see the adoption group are many the followers to

do

of

of

the single tax

as

of

of

as

to

There are also liberals

a

of

government

means

of

by

outside the sphere

of

it

ized, but they would cooperative societies.”

do

They realize that the machinery

the cooperative movement. largely social administration must be

who place great hope

in

liberals

of

section

of

of

of

be

is so

an automatic ameliorative economic and social evils. achieved, they believe, without The ends social reform could thus public administration." The same the expansion true considerable

of in

a

necessarily

of

Rights? all

of

an

civil liberties and the Bill

explore thoroughly raise these questions and philosophical practical. whether seems inevitable to

It

or

important

their implications,

of

the maintenance

expanded bureaucracy

to

is

It

inimical

to

liberty and freedom necessary?

Is

Is

of

Is

of

Is

in

There are several questions involved this dilemma. administration necessarily coercive? the socialization administration inevitable technology and machinery? the modern world new concept

183

to

&

ff.

p.

2.

of

to

work, earn, save and acquire property.” Henry George, Progress and Poverty (Harcourt, Brace 7

to of

of

of

6

5,

p.

“Liberty for Millionaires,” New Republic (September 1934), Vol. LXXX, 89. Liberty League: “1. To The article quotes the announced major purposes the American respect for the rights persons and property. teach the necessity To teach the duty government encourage and protect individual and group enterprise, foster the right Co., Inc., New

York,

1924),

in

:

*

Marquis Childs, Sweden: The Middle Way (Yale University Press, New Haven, 1938), pp. 23, 162. See also Ellis Cowling, Co-operatives America: Their Past, Present, and Future (Coward-McCann, Inc., New York, 1938), 206 pp.; John Daniels, Cooperation, Way (Covici, Friede, New York, 1938), 339 pp.; Thomas William Mercer, an American Towards the Co-operative Commonwealth (The Co-operative Press, Ltd., Manchester, Eng land, 1936, 221 pp.

INTRODUCTION

34

[Ch. 3

will differ in their intellectual, temperamental, and cultural re

that men

Be that as it may, the modern world cannot administration—organization function without to get things done well and

economically—and

undoubtedly

not without

an increasing

amount

of

of

it

of

in

so

be

to

a

is

admitted that such administration could carry with authoritarian aspect highly inimical the survival civil liberties; but necessarily this need not the Anglo-Saxon democracies, for several

It

growth

an it.

actions to the issues posed.

reasons. so

is

of

it

in

of

In

strongly the first place, the Anglo-Saxon idea the rule law imbedded our culture that should resist administrative authoritarianism sometimes rebel the appar change, very thing ent resistance our law social this also assur legal safeguards liberty Secondly, ance that our civil will survive. the Anglo-Saxon bureaucrat on the whole, rather timid sort fellow. His at

which means that Many legislative criticism.

will

to

of

office,

go

remain

he

a

in

is

first concern

to

is,

of

is

to

of

While social reformers

an

rather successfully.

great its

of

to

of

order

a

in

to

escape social reformer, ruefully pet panacea law, speak who has seen his enacted into can uninspired, unaggressive, and underfinanced administra semi-failure due public utility regulation and minimum tion. This has been largely true

lengths

Now one must not conclude from these statements social reforms never can effective. What happens

that administration frequently that there

be

the states.

of

in

wage laws

as

to in

of

is

in

of

it

annoying

nullify the practical adminis Americans which they have theoretically approved just one more assurance purists, but

to

reform legislation,

may

a

of

by

to

of

of

is

tration principle,

This tendency be

of

Amendment.

it in

a

of

is

is

prin lag between legislative acceptance ciple operation. social reform and popular willingness abide very political processes, This situation characteristic American liquor under the Eighteenth exemplified by the prohibition the traffic

to

its

a

that American administration will develop only within framework politic liberty. body develops constitutional The American own anti serum resist administrative aggression.

of

to

of

of

of

is

A

third consideration the fundamental respect the American man on the street for private forms administration and his corresponding public enterprise. While the events mistrust the 1930's served

an

ideology. While no doubt there has socialism been some left-wing influence, the American labor movement, even among the militant.unions, has not been based strongly socialist ideology. no

on

of

always steered clear

as

in

is

alter this situation somewhat, the fact remains that there no really impor tant socialist movement America. Influential social reformers have

to

to

to

all

is

question but that administration will tend more and more become socially controlled, but not socialization will involve govern ment ownership. The corporate form will undoubtedly tend more and adapt large-scale organization more social objectives while still pre

There

ROLE IN MODERN CIVILIZATION

Ch. 3]

35

of private management.” This will likely

serving the benefits

be the

pat

tern for the next hundred years in America: a more socially owned and socially conscious private enterprise operating within the rules laid down by the conscience of the nation and enforced by governmental agencies.

of private enterprise to keep

and the willingness

in

its

The degree of enforcement will always vary with the temper of the times own house

order.

inertia, lack en many this symbolic

of

apparitions

of

The word “bureaucracy” conjures

up

Bureaucracy red tape, mediocrity, and inefficiency. To public administration which presumed the ineffectiveness inherently and ineradicably infected with the virus bureaucracy. The result that the term has acquired an invidious connotation. However,

be

to

be

its

be

a

or

in

it

and cracy

or

dictionary meaning which need not derogatory, technical brief, bureau with this concept that these paragraphs deal. To essence, large-scale organization with attendant problems,

does have

is, is

it

is

of

is

of

of

is

terprise,

its

of

an

in

is

In

as

of

on

so

or

of

an

They the Swiss bureaucracy.” bureaucracy. the first place, there organization units known the basis on

Friedrich and Taylor Cole

laid down three characteristics arrangement the work departments, bureaus, offices.

of

Carl

J.

by

a

of

in

In

of

an

A

private. whether public study recently made for the Temporary National Economic Commit objective analysis bureaucracy, particularly tee attempted corporations.” prevalence private approaching the problem, the bureaucracy contained authors relied upon definition earlier work

which justify

cracy

bureaucracy

of

private

bureau is be

a

of

as is

made that these qualities are characteristic public business well administration. The TNEC report contains list those alleged aspects as

office. The point

of

is

is

to

a

in

Secondly, these are arranged that they Thirdly, the personnel operating this hierarchy. are interrelated professionalized; there hierarchy some qualification necessary hold

-

to

is

of

to

to

authority

Lilienthal, TVA—Democracy

on the March (Harper

&

jºid

19 44),

attributed

endeavoring

increase their jurisdiction. their and These both personnel and structural causes which are

expanding to

faults can

E. E.

own

be

importance

by

Finally, bureaucrats are said constantly

be

a

of

of

to

A

cause for criticism. said both the public and hierarchical superiors. There often maladjustment the working parts the organization, and excessive legalism. internal From these difficulties springs low level morale.

irresponsible

Bros., New York,

J.

in

3d

K.

J.

**

TNEC

&

19

Large Hyde, Bureaucracy and Trusteeship Dimock and Howard Printing Office, Monograph No. 11, 76th Cong., sess. (Government D. C., 1940), 144 pp. Carl, Friedrich and Taylor Cole, Responsible Bureaucracy (Harvard University Press, Cambridge, 1932), 93 pp. See also Carl Friedrich, Constitutional Government Bros., New York, 1937), pp. 31–39. and Politics (Harper Marshall

Corporations, Washington,

INTRODUCTION

36

[Ch. 3

to some extent in large-scale organization, and are discernible even in those corporations commonly considered to be well managed. The lesson to be learned is that management must be constantly alert to guard against such faults. The solution is not to capitulate to blind condemnation inherent

of large-scale public administration

simply because it is vulnerable to the Rather, the plan of action same disease found in private administration. develop management should be to devices and practices which will resist the inroads of the aforementioned corrosive tendencies. Whether or not the corrosive tendencies in public management differ from those in private management will be treated in the following paragraphs.

Comparison of Public and Private Management The problems of organization and administration run very much in the same channels, irrespective of whether one is dealing with a government department or a private corporation. As Marshall E. Dimock has pointed out, both the American Telephone and Telegraph Company and the federal departments “. . . find their most difficult management problems in the relation between headquarters and field, in reconciling operating autonomy and over-all control, in keeping delay and other evidences of red tape at a minimum.” ” This preliminary acknowledgment of fundamental similarity is offered as a preface to a plea that the public administrator has a harder job than his counterpart in private organization. It is a more difficult task for the public administrator because considerations of public policy have placed both legal and psychological and freedom of action.

restrictions

upon managerial autonomy

The first, and possibly the principal, handicap of the public administra tor is that he is not constantly under the whip of the profit and loss state ment as is his brother in business.

Governments

render services which are

largely intangible and for which the individual consumer does not pay a fee. The problem of how much should be spent upon any particular service raises a question of standards of goodness. As will be indicated later in this book, serious efforts have been made in several fields to establish standards of administrative achievement, but by and large both the public and the administrator with which particular

are without precise means of knowing the intensity activities should be developed.

limitations in Anglo-Saxon democracies has placed deliberate checks upon the public administrator. The concept of the three-way separation of powers, with the legislature and judiciary checking the executive branch, is one example. Another is the election of

The doctrine of constitutional

financial officers in American state and local government. 12 Marshall E. Dimock, “The Study of Administration,” American Review (February, 1937), Vol. XXXI, No. 1, p. 36.

Still another is Political

Science

ROLE IN MODERN CIVILIZATION

Ch. 3]

37

Closely associated the amateur's meddling in the details of administration. highly concept legalistic to the checks and balances is the one which has dominated the management of public business.

As will

be indicated at greater length

in

a later chapter, the law officer

is a very dominant influence in American public administration. His author ity is firmly entrenched in the doctrine of constitutional limitations and the principle of the rule of law. The public administrator must be reasonably ..sure that he has the power to do a thing before he proceeds, and he is much safer if he can trace this power to some specific written statement in the law. If he cannot do so, he will hazard a strong possibility of acting ultra

The result is that the public administrator usually seeks the advice of an attorney on matters of doubtful power before proceeding. The pri vate manager also is always consulting his attorney, but usually with the objective of asking the attorney to devise ways and means so that he can do what he wants to do or to protect him in doing what he wants to do. The vires.

net result is that the public administrator is much more handicapped by the exigencies of the law. Marshall E. Dimock writes that public administration is less responsive than business management because it is more accountable. Thus, the for mer is required to pay meticulous attention to rules and regulations which it cannot change at will. One of the great problems of democratic adminis tration is to establish some means of obtaining the accountability of officers and still reduce the routine and paper work of accountability to a mini mum.18

Government also suffers from the disadvantage of frequent change in policy resulting from change of political administration. It seems possible difficulty might mitigated period years by the develop that this be over a of ment of a core of professional civil servants occupying posts rather high in the hierarchy. Furthermore, there seems some promise in the further development of management autonomy through such devices as the govern ment corporation, which is to be treated later on.

One often hears that certain forms of governmental organization re semble those of private corporations, a celebrated example being the city manager plan of municipal government. While the analogy may often be useful, it may not be entirely valid, as pointed out in the following state ment: of this greatly analogy—that city manager plan overworked the resembles a business corporation in that both have an elected governing body which em ploys a skilled manager—the similarity ends there. The city manager and his staff have no vote on the council; several of the principal While

there is some validity in the main implication

**Ibid., p. 37.

INTRODUCTION

38

[Ch.

3

by

as

as

a

of

to

is

a

is

to

a

of

to

of

of

do

many votes each whom has has corporation. usually public relations shares the Councilmen are corporations seldom agents for the city government; directors any public relations work unless they are paid vice-presidents assigned city government such work. The objective serve the citizens; the purpose private profit.** the business make

owners

the company,

he by

of

of a

of

in of

he

of of

is

formal system for soliciting proxies for their candidates for an elec usually formality. Councilmen are elected tion which the votes the people, each whom has one vote irrespective the amount pays; board members corporation are elected taxes the

.

a

officers

a

of

to

in

be

in

of

a

of

it.

full-time paid officers of a private corporation are usually members of the board of directors and have a vote on The manager and his staff do not select candidates for the council; the paid officers conjunction with the board business corporation directors almost invariably determine who shall candidates for board membership. The city manager and his staff rarely participate the political cam corporation use paign elect councilmen; the paid

in

to

in

of

to

in

of

in

an

of

of

In

summer ment-owned-and-operated

in

An

dinner ahead the successful business reported American columnist interview London the 1941 with the manager one the newly established govern

of

man.”

the civil servant goes

to

has put

it,

is

is

up

A

significant difference, which must have some effect upon comparative public administration the lowered prestige now the United States. This direct contrast the situation Great Britain, where the civil service has much greater prestige. As one commentator efficiency,

a

It

the civil service the United States has changed for the better, but one can hardly claim that yet equal career business the professions.

in

a

to

as

is

or

it

in

of

prestige

as a

he

as

of

in

comparing his munitions establishments. position with his former status private industry, this manager mentioned one the advantages, despite smaller salary, the high social status enjoyed which now civil servant.” seems quite possible that the

The Scientific Management Movement

production.

the

both the human and mechanical

laity little

known about his very

sig

in

of

K.

A.

Price, and Kathryn H. Stone, “Analogy Manager Form Stone, Don Harold Private Corporations,” City Manager Government the United States (Public Admin **

to

Among

is

factors

in

superintendent who devoted his attention

to

in

an

of

The scientific management movement dates from the last quarter the nineteenth century when Frederick Winslow Taylor conducted his experi engineer and plant ments the Bethlehem Steel Company. Taylor was

13

of

p.

2.

p.

*

2.

at

**

of

p.

istration Service, Chicago, 1940), 166. Inquiry on Public Service Personnel, Minutes Commission Evidence on Hear ings Held Embassy (Grosvenor Gardens, London, July the American and 14, 1934, mimeo.), Dorothy Thompson, “On the Record,” Denver Post (August 24, 1941),

*

ROLE IN MODERN CIVILIZATION

Ch. 3]

39

work in the mathematics of metal cutting. His main reputation comes from his experiments in the field of getting more production per man-hour by simplifying the movements of workers. It is unfortunate nificant

that his name should be so closely identified with that aspect of scientific management which has been criticized most, namely, time and motion study. There is no question but what the principles of work simplification,

originally pioneered by Taylor,

formed the basis of time and motion techniques the were largely perfected by later workers in the field such as Frank and Lillian E. Gilbreth. The opposition of exemplified by their statutory American labor to time and motion studies is studies, although

prohibition in government arsenals and defense industry for at least 25 years prior to the military emergency of the 1940's. It is interesting to note that there has been a strong revival of interest in work simplification be

for increased productiveness of defense work in the

cause of the necessity early 1940's.

to

was inevitable

that this mote

the human the eye the

of

element. However, management experts

approaches than

in

the mechanical and physical

it

attention

to

of

management problems. For many years the practitioners the solution scientific management were largely industrial engineers who paid more to

of to

all

Scientific management should not be interpreted in terms of time and motion study alone. It is really a very wide movement with large and varied aspects. It embraces that has do with the scientific approach

is

of

to

of

in

interested

in

so

is of

ment today

of

is a

should create distorted vision interfering with Today maximum success. the result that the exponents the scientific management movement are including industrial psychology and personnel winning the workers over management with the idea mind the acceptance work simplification. That one the reasons why manage supervision

and supervisory

training.

Ad

in

is

to

to

in

of

to

if

to

officers have come

to

the realization that there no point trying simplify work movements and management procedures the workers are going resist and nullify such efforts. Thus, scientific man agement today attempts enlist the workers the use science ministrative

in

its

it of

-

its

its

of

producing goods and service. discover the best and most economical way origin While the scientific management movement has the field private management, and there achieved appreciable recognition, first

by

of

impact upon government. Thus the governmental has nevertheless had originating Municipal movement, research with the New York Bureau

in of

is

of

in

to

of

is

note

p. of

is

It

interesting

Luther Gulick, The National Institute Public Administration, New York, 1928), *7

of

D. C.

Washington,

It

of

in

1906, was strongly influenced Research the management examples private industry.” significant that one the largest chapters Society Management the American for the Advancement located

this connection the establish

£. Public Administration (National Institute 10.

INTRODUCTION

40

[Ch.

3

ment of administrative analysis units in governmental departments during recent years. Indeed, there are a great many people in public administration with very strong interest in and inclination toward scientific management. Some people are erroneously inclined to regard the scientific manage ment movement as merely of vocational interest to engineers and techni cians. Humanitarians and socially minded persons have very frequently taken a negative attitude toward scientific management because they thought that it was a device for profiteers to get more work out of labor for less pay.

There is no one, it appears, who is held in contempt more widely

than the so-called efficiency expert. It seems paradoxical, therefore, to declare that scientific management has followers among socially minded people who in some cases are even zealous reformers. Several reasons account for this seeming inconsistency. In the first place, the primary objective of scientific management as it affects the worker is to make work

To

of efficiency experts is also to have the worker produce more per hour, but to do so by utilizing means which make the worker, less fatigued even though he is producing more units. Many social reformers realize that the major problem of society is administration, They feel that the only means of solving production, and distribution. this problem is by scientific approach. They believe that the ultimate easier.

be sure the object

benefit to mankind must come by means of adapting the best management practice to social ends. It is this attitude that explains why scientific man agement is becoming more and more a social movement.

SELECTED READINGS BOOKS AND MONOGRAPHS Burnham,

James.

The

Managerial

York, 1941), pp. 77–151. Crider, John H. The Bureaucrat.

(The John

Revolution.

Day

Co.,

Inc.,

New

93

J.,

(J. B. Lippincott Co., Philadelphia, 1944), 373 pp. Dimock, Marshall E., and Hyde, Howard K. Bureaucracy and Trusteeship in Large Corporations. TNEC Monograph No. 11, 76th Cong., 3d sess. (Government Printing Office, Washington, D. C., 1940), 144 pp. Friedrich, Carl Responsible Bureaucracy. and Cole, Taylor. (Harvard Univer sity Press, Cambridge, 1932), pp. Glasser, Comstock. Administrative Procedure. (American Council on Public fairs, Washington, C., 1941), pp. 9–18. Gulick, Luther. The National Institute Public Administration. (National Insti tute Public Administration, New York, 1928), 106 pp. Juran, Joseph M. Bureaucracy, (Harper Challenge Better Management. Bros., New York, 1944), 138 pp. Kingsley, Representative Bureaucracy. Donald. (Antioch Press, Yellow Springs,

Macmahon, University

TVA–Democracy

pp. 105–116. Arthur W., and

Millett, John

the

Press, New York, 1939), 524 pp.

&

March.

Federal

(Harper

&

David 1944),

D.

York,

324 pp.

E.

1944),

Lilienthal,

on

J.

A

to

of

of

D.

Af

Administrators.

Bros.,

New

(Columbia

Ch. 3]

ROLE IN MODERN CIVILIZATION

4I

Charles E. The New Democracy and the New Despotism. (McGraw-Hill Book Co., Inc., New York, 1939), 278 pp. Merriam, Charles E. Public and Private Government. (Yale University Press, New Merriam,

Haven, Conn., 1944), 78 pp. Millspaugh, Arthur C. Democracy, Efficiency, Stability: An Appraisal of American Government. (Brookings Institution, Washington, D. C., 1942), 522 pp. Mises, Ludwig von. Bureaucracy. (Yale University Press, New Haven,

1940,

125 pp.

Rodriguez Arias, Julio C.

Sobre Algunos Principios de Ciencia de la Administración. (Universidad de Cuyo, Mendoza, Argentina, 1945), pp. 88–108. Stone, Harold A., and Price, Don K., and Stone, Kathryn H. City Manager Gov Service, Chicago, 1940), ernment in the United States. (Public Administration 279 pp.

Sullivan, Lawrence. 318 pp.

Bureaucracy Runs Amuck.

Taylor, Frederick Winslow. Bros., New York, 1911),

The Principles 144

(Bobbs-Merrill, Indianapolis, 1944),

of Scientific

Management.

(Harper &

pp.

Veblen, Thorstein. The Engineers and the Price System. (B. W. Huebsch, Inc., New York, 1921), 169 pp. White, Leonard D., et al. Civil Service Abroad: Great Britain, Canada, France, Germany. Report of the Commission of Inquiry on Public Service Personnel. (McGraw-Hill Book Co., Inc., New York, 1935), 275 pp. White, Leonard D. (Ed.). The Future of Government in the United States: Essays (University of Chicago Press, Chicago, 1942), in Honor of Charles E. Merriam. 274 pp.

PERIODICALS Aiken, Charles. “The British Bureaucracy and the Origins of Parliamentary Policy.” American Political Science Review (February, 1939 and April, 1939), Vol. 33, pp. 219–233.

Bendix, Reinhard. “Bureaucracy and the Problem of Power.” Public Administra tion Review (Summer, 1945), Vol. 5, pp. 194–209. Dimock, Marshall E. “Bureaucracy Self-Examined.” Public Administration Review (Summer, 1944), Vol. 4, pp. 197–207. Jarvis, R. C. “The Place of Public Administration in a Changing Society.” Public Administration (British) (October, 1937), Vol. 15, pp. 406–418. Mann, Thomas. “Culture and Politics.” Survey Graphic (February, 1939), Vol. 28, pp. 149–151.

Merriam, Charles E. “The Assumptions of Democracy.” Political Science Quar terly (September, 1938), Vol. 53, pp. 328–329. Stone, Harold A., Stone, Kathryn, and Price, Don K. “Appraisals of Council Manager Cities.” Annals of the American Academy of Political and Social Science (September, 1938), Vol. 199, pp. 50–56. Urwick, L. “The Development of Scientific Management in Great Britain.” British Management Review (October–December, 1938), Vol. III, pp. 18–96.

PART TWO ORGANIZATION AND COORDINATION

CHAPTER

4

ORGANIZATION What Is Organization? Organization is the medium through which individuals work as a group as effectively as each would work alone." It consists of the relationship of individuals to individuals and of groups to groups, which are so related as to bring about an orderly division of labor. Organization is a universal phenomenon found wherever two or more people are associated in doing something.

It

is a rather common practice to regard organization as composed solely of the physical and mechanical concept of structure. This fact is undoubt edly the main reason why many persons minimize the real importance of structure in its broader aspects. These individuals for the most part have a certain antipathy for techniques. Organization, however, embodies not

only physical structure but psychological structure.” necessarily

involves

the many and varied

Because organization relationships and reactions of

leader

leaders unrecognized

on

own indigenous

or

its

people, one to another, it cannot help but be influenced by the psychological structure. There are also other quite definite psychological aspects of organization which have not been given sufficient attention by students of the subject to date. Thus there will often be an informal organization with the organization

chart.8 in so

is

of

in

be

is

of

There are those who would not emphasize the psychological and socio logical aspects organization too strongly. As many the case with public administration, the question cannot problems decided terms particular organizations absolutes. The issue involved here whether

the basis

of

set

on

and the organization

up

disregarded

be

or

to

of

should bend their structures suit the idiosyncrasies and qualifications entirely available individuals, whether individual personalities should ideal structure

*

ºftement J.

p.

*L.

1

,

ſº

in

*

Eric A. Nicol, “Management and the Personnel Director,” Personnel Administration (February, 1941), Vol. III, pp. 1–6; Lawrence A. Appley, The Human Element Per (Society for Personnel Administration, Washington, D. C., January, of

p. in

2.

A

,

45

in a

N.

T.

J.

C.

J.

* F.

...

Marshall, Organization: Groups (Amer Basic Process the Coordination ican University, Washington, D. C., 1940, mimeo.), Roethlisberger Dickson, Management and the Worker (Harvard and William Whitehead, Leadership University Press, Cambridge, 1939), pp. 559–562, 589; Free Society (Harvard University Press, Cambridge, 1937), pp. 68–69, 78–79.

ORGANIZATION AND COORDINATION

[Ch. 4 lie

46

unquestionably

the basis

of

by

to

strive for ideal structure ability into such structure.

the proper procedure choosing individuals

is

permissible,

on

choice an

freedom

is

of

alone. The solution to this problem in any particular case is going to somewhere between the two extremes. In those instances where some

their

avoids

be

unpleasantness

of

continuation

of

because

an

its

to

it

a to

is

a

of fit

to

Of course, this cannot done where strictly limited. However, those who have the alternatives within their power mold organizations should constantly resist the highly temptation questionable organizational feature simply condone the choice

the moment.

Very

is

an

a

is

if

In

by

of

a

an

often immediate and courageous facing such situation will avoid much irritation and embarrassment later on, because problem situations organization this kind are seldom cured inertia. other words, pathologi neglected, both physical and psychological; either feature

Importance

of

cal situation may result.*

Organization

to

is

It

it

of

It

has been stated above that there are persons who belittle the impor organization chiefly because they believe overemphasizes mechan tance important impress upon those persons who ics and techniques.

it is

its

a

to

if

is

in

it

is

of

organization that organization minimize the significance not physical spiritual alone, but that psychological, social, embodies and even consider ations the term used broadest connotation. Furthermore, impress upon those who have personal antipathy toward essential

The community provides

the

as

by

in

details and techniques, that these are very important our modern machine Huxley age. This has been most aptly stated Julian follows: machinery

for

the

existence

and

of is to

us

to

to

85.

Luther Gulick and Urwick Public Administration, New L.

Problem,”

in

a

Technical

Administration (Institute

of

1937),

on

York,

p.

L.

*

Urwick, “Organization (Eds.), Papers the Science

of as

of

in

of

to

be

is

if

of

to to

of

a

is

of

is a

of

of

development individuals. There are those who deny the importance machinery, social who assert that the only important thing heart, and that the right machinery merely change natural consequence the right inner attitude. This appears me mere solipsism. Different kinds social machinery predispose different machinery attitudes. The most admirable useless the inner life unchanged; but social machinery can effect the fullness and quality life. Social machinery can devised make war more difficult, promote health, add interest life. Let not despise machinery life, any our zeal for fullness more than we should dream that machinery can ever automatically grind out perfection living."

Huxley, “Life Can Be Worth Living.”

8,

la

'

p.

in

de la

pp. 351–352. the collapse

A

CXLVII,

of

*

1938), Vol. The Nation (October Frenchman writes that poor organization was considerably respon Mécanique sible for France 1939–40. Francis Hekking, Refleriones sur Administrative (Editions Maison Française, New York, 1943), 212.

Julian

-

ORGANIZATION

Ch. 4)

47

Coordination—what Is It? The techniques of organization consist largely of arranging people in groups in order to associate those who should be associated together. Such association rests dominantly upon a functional basis, and functions, in turn, rest upon specialization. The result is that there is a tendency to set up units to accomplish particular purposes of functional special ties, such as public health, fire protection, forestry, regulation of commerce, and scores of others. The objectives of these functional specialties are organization

high and worthy, such as the preservation of public health, the prevention of fires, or keeping the streets clean. However, functional specialists tend to be so preoccupied with their own objectives and operating usually

problems that they often fail to observe how they encroach upon the prob lems of other functional specialists. In many instances, therefore, it be comes imperative that the functional specialists from different organiza tional units cooperate. Thus, while the Soil Conservation Service is in the Department of Agriculture, much of the public lands which offer soil con servation problems in the Southwest are under the jurisdiction of the Department

of the Interior. In

a municipality public health problems are department, found in the water the public works department, and the bureau which administers the building code. There is also a tendency for the functional specialist to magnify the

importance

of his work. Aggressive and virile administrators have been aptly referred to as “empire builders,” which means that they are constantly striving to expand their organization units by adding activities and per sonnel. Practically every unit in the organization could put forth reasons

which would justify

each desire for additional appropriations and person nel, but the resources available must be judiciously apportioned among all the various spending agencies. The problem posed by these centrifugal tendencies is that of coordination.

Coordination is an all-inclusive term embracing a wide variety of activi ties, the central purpose of which is to have people and groups work har moniously and effectively together. It is the unifying influence which by

its

counteracts the separatist tendency of the functional units in administration. purpose Coordination can be either coercive or it can achieve consent.

be

or

no

to

the prevention

of

aiding

in

common purposes

of

of

a

to

to

existing situation. Coordination can deal with groups which have structural relationship connec tion, leading example being the coordinating councils dealing with the problems juvenile delinquents. Associated through the council for the

is

the only way apply made

an

a

in

be

is

It

goes without saying that the latter always the best policy and the only truly effective one that can the long run. However, there are instances peremptory coming where order down from the administrative hierarchy

juvenile delinquency and

ORGANIZATION AND COORDINATION

48

[Ch.

4

building better citizens, are probation officers, police, and other officials of the juvenile court, the Y.M.C.A., scoutmasters, school authorities, church

coordinating

it

councils mentioned above.” is

of

of

by

to

of

of

is

is

organization.

It

organization. the dynamics techniques consultation, Coordination's noncoercive consist collabora tion, exchange information and ideas, and attempts obtain the active reconciling their sentiments consent those who perform the work nation

but one aspect

of

of

composed

of

organization and, like the latter, the cohesive element psychological both structural and elements. Indeed, coordi

Coordination is

as

to

of

or

is,

workers, and businessmen's luncheon clubs." Coordination may be both vertical and horizontal because in a large organization it is very difficult to have information reach the extreme points either up and down or cross wise on the same level." It may be either internal or external; that may coordination may apply within the administrative family itself cooperation families, aim secure the several was the case with the

of

It

and ideas with those who formulate policy. minimizes the friction re sulting from conflicting temperaments and sentiments groups and indi viduals.”

-

Liaison

is

in

on

in to

II

he

of on

by a

of

to

of

to

of

large-scale organization One the main obstacles coordination inability elsewhere, goes the one unit know what the age-old prob intelligence and communications. lem The situation was most aptly posed British biologist who lectured morale officers during World compared problem large-scale organiza War when the liaison

bring about the efficiency

already achieved

biological mechanisms.”

in

of

social organization An example

in

It

experimentation,

to

of

years

in

trial and error,

of

of

of

in

of

tions with the development the nervous system the human body. The automatically through latter coordinates itself the development the years biological evolution. brain during thousands will take many

a

automatic coordination administration occurs when Upon police and firemen answer fire alarm. their arrival they are likely of

of 54

in

P.

7.

is: #;"

of

of

p.

E.

;

6,

of

9

L.

of

* E.

p.

7

F.

a

1,

of

•

S.

California,” State Beam, “Coordinating Councils Kenneth California Depart pp.; Norman Fenton, “The 1938), No. 11, ment Education Bullesn (September Solution,” California Journal Coordinating Council Offers Secondary Education (Berke McEvoy, “Community ley, January, 1940), pp. 32–37; Clearinghouse,” Reader's Digest (December, 1939), Vol. XXXV, No. 212, pp. 108–111. Millett, Arthur W. Macmahon and John D. Federal Administrators (Columbia Univer sity Press, New York, 1939), Herring, Pendleton Public Administration and the Public Interest (McGraw-Hill Book Co., Inc., New York, 1936), pp. 337–339. Luther Gulick and Urwick (Eds.), Papers on the Science Administration (Insti 33, 60, 77, 119 tute Public Administration, New York, 1937), pp. John M. Gaus, Dimock, Leonard D. White, and Marshall The Frontiers of Public Administration (University Chicago Press, Chicago, 1936), 69. McCurdy, The Structure Morale (The Macmillan Co., New York, 1943), pp.

ORGANIZATION

Ch. 4]

49

to meet repair crews from the telephone company, the gas company, and the electric company. The high-pressure pumps of the water company are al ready in action. All of these coordinated activities have been set in motion

through the alarm system.

Evolution of Administrative Organization Colonial experience created in the American people an abiding trust in popular assemblies, combined with a deep-seated fear of executive power. In their conflicts with royal authority the popular branch of the legislature had been the champion of colonial rights, while the colonial governors had

in

of

of

to of

or all

naturally tended to stand by the king when controversial issues presented themselves. The result was that while the first state constitutions provided power. The lines for a governor, they practically left him bereft of administrative authority ran from the legislature from the people municipal government elective officials. The that same era carried over borough organization the colonial form which the mayor was little a

the legislative body. These weak types administrative organization answered the purpose long very well two conditions prevailed. the first place, the country

In

as

as

of

in

part

its

in

in

a

at

slightly exalted councilman. Munic least administratively, than ipal administration was nontechnical, modern sense, and very much scope, while administrative powers resided for the most restricted

more,

of

in

of

less closed corporation

composed

of of

more

or In

a

to

of

government was predominantly agricultural and the services demanded permitting meager, were thus amateur administrators function satisfac torily. government was the second place, the process the hands

the wealthy land owners,

a

of

its

of

of

so

and the aristocracy. This was because the property-holding and tax-paying qualifications for voters and office holders. During the first half the nineteenth century, however, both these situations were altered. The industrial revolution began transformation rural so

increases

vast growth the functions density more governmental regulation

of

for

in

call

of govern

basis

is

population

so altered the social and economic

in a

ment. As necessary.

to

American society

as

The industrial revolution

in

on

is

ciety into one which today predominantly urban and industrial, and the property and tax restrictions participation government were removed.

a

if

on

of

to

A

consequences would result from similar action on the part urbanites. There are many living today who can remember the first street car their city, the first electric street light, the first sanitary but disastrous

in

of

prairie,

of

he

a

to

a

A

farmer located half-mile from his nearest neighbor may dig cesspool without causing any particular harm society, but city may pollute supply dweller does likewise the water scores others. frontiersman may, with social impunity, allow his garbage rot the

ORGANIZATION AND COORDINATION

50

[Ch. 4

sewer, the first pavement, the first automobile, the coming of the railroad, and the first telephone. Practically all of these events have taken place in the last half-century for most American communities. Their coming has transformed the problem of public administration from that of ministering to the meager wants of a rural eighteenth-century society to that of satisfy ing the twentieth-century urban dweller's insatiable appetite for ever increasing services. The history of administrative organization from 1850 onward has been characterized by an unplanned experimentation, almost a groping, which has sought to bridge this gap.

At

property

Those without

of

the Jeffersonian and Jacksonian movements.

or

ing forces

of

its

about the same time that the social and economie basis of government began to change, political aspects were greatly altered by the populariz

by

all a

ing

be

to

a

of to

income were allowed vote and hold office. The tide agrarian democracy created host elective administrative offices which popular vote for short terms and rotated among the were filled populace. This would keep rascals from causing excessive damage by stay

of

at

r

so

of

a

of

it

in

sporting chance too long, and would give the blessings and public emoluments office. Qualifications were matter minor impor tance, the processes simple that any administration being deemed ordinary citizen could master them without difficulty.

of

of

by

at

of

to

The United States embraced extreme democratic ideas and practices just before government started become increasingly intricate, with re sulting friction many points. The story the capture administration venal political machines, “pork-barrel” politicians, and plundering of

as

or

correlate and coordinate each with

or

or

services were added with no effort

to

is

to

Tweeds, together with the amateurish blundering well-intentioned but unqualified officials, government. Administrative familiar students

or

in

of

to

be

agency, such the other with some central official the governor mayor. Many activities would placed under independent boards with overlapping terms, subject no administrative control other than the constitution, letter the law contained charter statute. Some states

to

an

in

of

to

of

had from one two hundred these independent administrative agencies. From the mid-century on, the cities experimented with various types boards effort discover some machinery that would harmonize the a

to

of

a

of

democracy with new machine civilization. governor While the offices and mayor had been steadily gaining tige and power, the effort secure effective administration through

ills

pres cen

most significant

mayor the actual head

was the clause which boldly

administration

with power

to

reform,

of

field

of

a

its

of

In

in

tralizing administrative authority those officials did not achieve momentum until the last decade the nineteenth century. 1899 the National Municipal League introduced municipal program, sometimes referred to as the first model charter. While its recommendations covered wide made the

appoint and control

Ch.

ORGANIZATION

41

51

11 Referring to this program in 1908, J. A. Fairlie could say that “the legislation of the past ten years shows a distinct advance in advocacy the adoption of these principles.”* The League transferred

its

his subordinates.

charter, each the commission and council-manager form which concentrates administrative authority central agency officer. Municipal Research With the birth the New York Bureau 1905 profound there was initiated movement which has had most effect on

or

in

of

a

of

a

in

of

of

to

successively

of

of

all

in

in

in

of

in

to

In

setting the model for numerous addition cities, the New York Bureau has conducted surveys which have resulted scores the actual adoption the integra principle parts tion numerous cities and states the Union.” administrative integration. similar agencies other

as

Although federal administration

of

of

of

of

of

it

of

period

essentially

the twentieth century was tremendously significant municipal reform and civic renaissance. However, was political progress era ideas and rather than adminis

decade

an

as a

The first

of

of

to

in

on

to

of

has always been integrated, contrasted disintegration cities, report the extreme states and the the Taft Economy Efficiency Commission and 1912 served focus attention on the extremely loose budget methods the nation.

The great governors and mayors that period popular legislative were leaders rather than administrators.” This true such men Robert M. La Follette, Sr., Charles Evans Hughes, and Hiram Johnson. The twenty years beginning about 1911 were see much to

as

of

is

trative reorganization.

in

or

to

of

a

in

actual progress administrative science such as: one five cities under council-manager charter, the state reorganization movement, and the widespread use the executive budget. During the years 1911 1917

of

fairly general underlying principle

of

a

as

istration their immediate integrated lines came out

more so-called efficiency and economy these bodies had the improvement admin object, the need for reorganization along

of

of

as

all

a

the states appointed score commissions. While not

their

reports.”

of

&

2,

E.

A.

of

of of

S.

J.

C.

D.

G.J.

an

H.

in in fſ.

p.

A.

C.

in

in

of

F.

2,

in

A.

J.

**

A

of

A.

of

G.

in

J.

**

*

of

in

J.

12

º,

of

of

F.

**

of

.

Wilcox, “An Examination Delos the Proposed Municipal Program,” Proceed the Conference for Good City Government, 1899 (National Municipal League, Phila delphia, 1899), pp. 51–57. Fairlie, “Charter Tendencies Recent Years,” Proceedings the Pittsburgh Conference for Good City Government and the Fourteenth Annual Meeting the National Municipal League, 1908, pp. 204, 207. Gulick, Progress Report Luther H. The National Institute Public Administration: Weber, Organized (New York, 1928), pp. 32–42; Efforts for the Improvement Co., New York, 1919), Administration the United States (D. Appleton pp. 173–19U. See, M. Mathews, “The New Rôle the Governor,” American Political Science pp. 216–228. Review (May, 1912), Vol. VI, No. Weber, op. cit.; Fairlie, “Governmental Reorganization Illinois,” American Horack, “Ad pp. 252–257; Political Science Review (May, 1915), Vol. IX, No. Iowa,” ibid., pp. 258–263; Dykstra, “The Reorgani ministrative Reorganization Young, “Administrative Kansas,” ibid., pp. 264-272; zation State Government Reorganization Minnesota,” ibid., pp. 273–286; Barnett, “Reorganization State Oregon,” ibid., pp. 287–293; James, “The Reorganization Government State Government,” ibid., pp. 294–303. reorganization For excellent account the state Beard, American Government and Politics (The Macmillan Co., New movement see York, 6th ed., 1931), 615 ings

ORGANIZATION AND COORDINATION

52

[Ch. 4

The philosophy of the reorganization movement was probably best crystallized in the reports of the New York Bureau of Municipal Research to the New York Constitutional Convention of 1915. It conceived the

a

its

governor as the central agency of administration, standing at the apex of a hierarchy over which he has broad powers of control.” Although the proposed constitution was rejected at the polls, basic ideas were carried by into effect constitutional amendment decade later under Governor

of

In

under the leadership Governor Lowden, Illinois took, perhaps, the first comprehensive step toward administrative reorganization adopting administrative code, which embodied thoroughgoing inte 1917,

an

by

Smith.

From that time on the integration movement achieved momen adoptions,” brought way resulting tum which has much the concrete in

of

a

gration.

government, and new charters

in

of

of

by

a

in

in

and consolidation more than score states. At the grew leaps and bounds. same time the executive budget movement Approximately 600 cities came under the operation council-manager reorganization

Denver, Buffalo,

contemporary -

tendency

in

of

the outstanding

of

a

the hands single executive officer administrative reform.

of

Detroit, San Francisco,

other cities concentrated more administrative power the mayor. This placing the hands is

in

authority

of

New York, and numerous

Federal Administrative

Organization

William Howard Taft was the first twentieth-century

American

Presi

it

In

of

of

as

become

It

in

to

large-scale administrative reorganization. interested quite possible Secretary seems that his previous service War and Governor General the Philippines may have impressed him with the necessity for such improvement. any event, was during his adminis dent

as

in

of

up

of

by

tration that attention was effectively directed toward administrative reor ganization the appointment what was known the Taft Efficiency Economy Commission, and made such celebrated men the field

E.

of

in

of

of

of

of

?”

1,

15

of

in

in

of

in

of

E.

of

**

4,

in

in

*

of

Constitution and Government of the State New York, An Appraisal (Bureau of Municipal Research, Albany, N. Y., 1915), Ch. II, commented on Harvey Walker, “Theory and Practice State Administrative Reorganization,” National Municipal Review (April, 1930), Vol. XIX, No. pp. 249-254. Buck, The Reorganization A. State Governments the United States (Columbia University Press, New York, 1938), 299 pp.; William H. Edwards, The Position the Governor Recent Administrative Reorganizations the States (Ohio State University Press, Columbus, 1937), pp. 61-70; William H. Edwards, “A Factual Summary State reprinted from The Southwestern Social Science Quarterly Administrative Reorganization,” (June, 1938), Vol. XIX, No. pp.; William H. Edwards, “Has State Reorganization 1938), Vol. XI, No. 10, pp. 183–184, 192–193; Succeeded State Government (October, Bryant Putney, “Reorganization State Governments,” Editorial Research Reports (May 23, 1938), pp. 295-310. For an extensive bibliography on surveys and reports the reorganization administrative the individual state governments see Grace Weiner, “Surveys the Administrative Reorganization State Governments,” Jerome K. Wilcox (Ed.), Manual for the Use State Publications (American Library Assn., Chicago, 1940), Buck, op. cit., pp. 266-287. pp. 93–99; A.

-

Ch. 4)

ORGANIZATION

'53

Cleveland and W. F. Willoughby. present The Commission had the misfortune to the greater portion of report election year and under the auspices administration political about suffer defeat.” Woodrow Wilson had been the first

of public administration

A.

an

of

in

political science plead with his American colleagues administration, through his interest the academic studies of

note

in

to

scholar

to

an of

to in

an

its

as Frederick

ganization.

in

in to

of

in

take famous essay the Political Science Quarterly 1887.” The first few years the Wilson administration were taken up mostly with social and economic reform, with little attention given basic administrative reor

The first budget bill was passed

1919, but was vetoed by

he

scientific budget procedure, but because certain provisions the bill.” An Act,” was bill, Accounting Budget almost identical known the and passed and signed President Harding 1921. was the first really significant step reorganization attempted federal administrative that on

he

in

not because disbelieved disagreed with Congress

it

in

an

in

It

in

by

as

in

Wilson

of

it

by

by

it

of

to

executive budget. At the same time created one the most perennial points controversy when established the General Accounting Office headed the Comptroller General, who, whether the assumption set up

a

at

on

in

be

Board and established

the Federal Classification

of

which set

scheme for the classifi

salaries. While the board the Civil Service Commission

in

of

to

it

to

of

is

of

salary matters still the basis for the administration Washington importance the service. The the Act 1923 lies the significant attempt classify positions fact that was the first and

in in

1932,” the law

to

of

positions and the standardization cation was abolished and its activities transferred

1923

up of

This was the Act a

processes.

federal administrative

structure, matter development the **

reform was not extremely significant rôle

of

did have

an

it

The next major administrative although

of in a

to

of

15

to

it in

to

of

as

or

of

power otherwise, has established himself budgetary control agency, much the vexation administrative officers. The points issue this controversy will discussed later the chapters finance. Suffice say here that administrative reorganization was quite dormant for years subsequent the enactment the budget act.

as a

wage and salary matters for the federal service whole. Ramspeck contemplate Executive Orders and the recent Act the extension the Hoover administration

there was some

District talk

Columbia. During reorganization which

of

the

of

the field outside

of

this principle

to

of

standardize

on

Economy and Efficiency (Government Committee Print 1910–1913), Circulars Nos. I-VI, VIII-XXXV. Administration,” Political Science Quarterly (June, Woodrow Wilson, “The Study 1887), Vol. II, No. pp. 197-222; reprinted Political Science Quarterly (December, 1941), Vol. LVI, No.4, pp. 481–506. Willoughby, The National Budget System (Johns Hopkins Press, Baltimore, W. 1927), pp. 30–31. 11, 13–24, 41–58 (June 10, 1921). 42 Stat. 20, A. 42 Stat. 1488, A. 661–674 (March 1923). *47 Stat. 416, 633a (June 30, 1932).

in

4,

2,

1,

§§§§

§

A.

C. C. C.

S. S. S.

U. U. U.

5

31

F.

5

** **

*

2,

*

of

**

United States President's ing Office, Washington, D.C.,

ORGANIZATION AND COORDINATION

54

[Ch. 4

Act”

culminated in the passage of an

empowering the President to shuffle This power remained comparatively

within certain limitations. unused until the Executive Order No. 6166* was issued by Franklin D. Roosevelt on June 10, 1933, after which reorganization measures were carried out in the interests of better administrative organization and inte bureaus

gration.

-

-

The major developments in reorganization took place from 1936 to 1938. The Senate set up a Select Committee under the chairmanship of Harry F. Byrd, who had sponsored a reorganization plan when Governor of Virginia. A like committee was set up in the House on April 29, 1936.” Both the Senate and House committees employed the Brookings Institution to furnish the necessary technical and advisory services. In March, 1936, the President appointed his Committee on Administrative Management,” the report of which was issued in January, 1937.* President Roosevelt

*

gave wholehearted support to the recommendations of his Committee in a message to Congress.” It was unfortunate that the entire issue should have been overshadowed by the controversy relative to the reorganization of the

Supreme Court. Probably a greater misfortune was the fact that the ex perts on the President's Committee disagreed with the experts of the Brookings Institution on several points which aroused considerable emo

tional antagonism. Perhaps the principal one of these points was the position of Comptroller General—an issue which is discussed later in the chapters on finance. Another Committee

recommendation

which

caused violent

difference

of opinion was that the independent regulatory commissions should

be

placed in the executive departments. The commissions’ administrative and quasi-judicial functions were to be separated, the former to be placed under the immediate supervision of the executive department and the latter to be independent of executive control. This feature came in for considerable oratorical condemnation during congressional debate, in spite of the fact that it was not included in the reorganization came before Congress and was passed.*

measure which eventually

Authority

was given to Franklin Delano Roosevelt to redistribute by bureaus executive order. A reorganization order was required to be sent to Congress and was to become effective only if after 60 days the ** 47 Stat. 413, 5 U. S. C. A. § 124 (June 30, 1932). House Doc. 69, 73d Cong., 1st sess.; text of order amendments given in 5 U. S. C.

1.

* *

A.

Senate Res. 217, 74th Cong., 2d sess. (February 26, 1936). * House Res. 460, 74th Cong. 2d sess. (April 29, 1936). See. Public Papers and Addresses of Franklin D. Roosevelt (1936), (Random House, New York, 1938), Vol. V, p. 144. Report with Special Studies President's Committee on Administrative Management, Printing Office, Washington, D. C.), 382 pp. (Goyernment Record, 75th Cong., 1st sess., (January 12, 1937), Vol. LXXXI, Pt. 1, p. jºongressional (April *$3 Stat. 561, 5 U.S. c. A. s 1939). 3,

133

*

ORGANIZATION

Ch. 4]

55

order was not disapproved by a two-thirds vote of Congress.” Several such orders have actually taken effect and are known as Reorganization Plans I, II, III, IV, and V. Reorganization approved an

Act of 1945.-On December 20, 1945, the President giving Act him powers to reorganize the administrative agen

He was authorized to group, coordinate, agencies and consolidate and functions according to their major purpose; to abolish such agencies as may not be necessary for the effective conduct of the government; and to eliminate overlapping and duplication of effort. per cent

in

of

least

that such reorganization the administrative

of

a

expectation 25

expressed in the Act should accomplish reduction agencies costs the affected. Congress

at its

of the federal government.

cies

tion was placed upon reorganization

affecting

any civil function

of

to

in

of

The following agencies were exempted from the effect the Act, ex cept the event that they should have functions transferred them: Commission, Commission, Interstate Commerce Federal Trade Securities and Exchange Commission, National Mediation Board, National Railroad Adjustment Board, and Railroad Retirement Board. An absolute prohibi

§.

had lain before both Houses

be

reorganization

of

it

until

was further provided that

no

It

to

Engineers

of

of

the the United States Army. Certain restrictions were also placed upon reorganizations having do with the Federal Communi cations Commission, the Federal Deposit Insurance Corporation, the United Administration. States Tariff Commission, and the

Corps

order should effective Congress for 60 days, during which

it

Congress, but the latter can nullify concurrent resolution days. Powers granted under this Act expire April, 1948.*

within

60 by

by

be

In

an

in

a

time there has not been passed by both Houses concurrent resolution stating Congress substance that does not favor the reorganization plan. other words, such order can effective without positive action

War Did Not Change Pattern.-The

federal administration expanded tremendously during adding many new units. The Bureau captur during Budget special unit devoted the maintained the war ing and recording the administrative history this period, with the result a

that the student of the future will have

wealth of material which should

a

of

to

of

World War II,

R.

3,

§§

C.

S.

5

53 Stat. 562, U. A. 133c-133d (April 1939). Public Law 263, 79th Cong., Ch. 582, 1st sess. (H. 4129)

*

32

in

by

in

us

much about administration during national emergencies. However, the war caused very little change the basic administrative pattern. “New activities poured down channels already determined the constitutional system; the channels were widened and many side courses opened, but teach

(December

20, 1945).

ORGANIZATION AND COORDINATION

56

the main the scheme was not changed.”

“

Shortly after

[Ch.

V-J

4

Day such

agencies as the Office of War Information and the War Labor Board were abolished, or had their functions combined with older departments, thus establishing a trend back to the traditional channels referred to above.

Existing Types of Organization

It

is not intended to convey the impression that all, or even a great majority, of American state and local governments have adopted the prin

for such would be far from the truth. In practice largely these units are still under loose, disjointed, and uncorrelated ad ministrative organization, with many elective officers who are independent of each other as well as of any central coordinating, authority. It is

ciple

of integration,

extremely difficult to generalize by way of classifying existing organizations into categories. Nevertheless, it may be stated that there are five general types of organization into which most cities and states can be classified.

These are the weak executive type, the strong executive type, the executive type, the commission

plan, and the council-manager

no

plan.

The Weak Executive Type.—The weak executive form of organiza tion possesses a mayor or governor elected by the people for a term of two or four years, and with little actual summary control over the administra tive agencies. These latter are largely independent of each other and of anyone else. The only supervision over those who are elected consists of recall at the polls or judicial action, and neither of these controls is They are legal and political in nature. In those areas not administrative. permitting the recall, even the popular remedy must wait until the next election.

To say that an administrative agency is responsible to the people

is to utter a platitude. Furthermore, a chief executive will apply to the courts for writs to force officers into line only in extreme emergencies. Such action by the executive will frequently place himself on trial before public opinion more than those against whom the action is directed. The result is that those officers who are elected by the people often direct their efforts toward perpetuating their tenure rather than perfecting the processes of administration.

Where the governor or the mayor is given authority to appoint certain administrative officials, he must usually consult the senate or a council for approval. Most close students of administration regard this practice as vicious, because it forces the chief administrative officer to make compro mise political

would have

*

appointments

made

if

which often are much worse than those he such approvål were not required. His power of con

Pattern, the Executive Branch,” Arthur W. Macmahon, “The Future Organizational The American Political Science Review (December, 1944), Vol. 38, pp. 1179–1180.

ORGANIZATION

Ch. 4)

57

trolling these appointees, from the administrative standpoint, is impaired because he does not have a free hand in directing their work, owing to fear of alienating their political friends and because the law makes removal difficult in a large number of jurisdictions.

The chief executive is deprived, of course, of any administrative super vision over those officers appointed by the legislature, of which there are many in the smaller cities operating under a mayor and council charter. Under this organization an outstanding personality can achieve a high degree of political and civic leadership, as did Governors Johnson, Hughes, and

La Follette, and

as did such mayors as

Tom Johnson and Brand

Whit

t

ELECTORATE

LEGISLA

OR

Figure

1.

Weak Executive Organization

However, public management in the true

lock.

such arrangements. are so uncorrelated,

This is true

sense is impossible

under

the various administrative units disintegrated, and insulated by law from effective supervision that they are not amenable to the control of the governor or mayor. They are replete with duplications and overlappings that almost because

defy unraveling.

Such governments do not have effective executive budget ing. The result is that the departments vie with each other for legislative favor on appropriations, with the further result that those having political strength are able to secure money for functions which properly belong elsewhere or which should not be undertaken at all. Administrative organi zation approaches chaos. There is no effective central planning and control of administration, and coordination is usually lacking. The legislative body

it

or of

to

as

be

can

the governor

mayor were made chief adminis American states and cities probably

fact. The majority belonging classed this category, although the mayor and

trative officer

still

lose

if

relax

in or

have

to

its

is generally averse to changing this state of affairs because it is jealous of own detailed control over administration, which would inevitably

ORGANIZATION AND COORDINATION

58

[Ch. 4

governor are gaining rapidly in strength, and practically one out of every five cities having populations over 10,000 has a city manager.”

The Strong Executive Type.—Under

the strong executive type,

ad

ministrative authority is centralized in the hands of a political executive who appoints the heads of departments without council confirmation, and who may remove them without restrictions. Lines of authority run from the bottom upward and inward, converging in the hands of the mayor or governor. Activities are departmentalized on a unifunctional basis as

ELECTORATE

-

GOVERNOR

|NDEPENDENT

AUD|T

ºnim Figure

2.

Strong Executive

Organization

nearly as possible. The administrative personnel becomes administratively responsible to the political executive who can be held politically responsible

for his acts. More recent proposals have sought to interpose an appointive chief administrative officer between the mayor or governor and the depart ment heads, after a principle similar to that exemplified by the British hoping thereby to minimize the evil effects of political changes. By combining power and responsibility in a single person responsible to the electorate, the strong executive organization aims to

permanent undersecretaries,”

bring political leadership out in the open instead of leaving it in the hands of bosses and machines. The proponents of this plan argue that, contrary

* Orin

F. Nolting, “Council-Manager Government,” in Clarence E. Ridley and Orin The Municipal Year Book (International City Managers' Assn., Chicago, plan : Cin 1941), p. 252. The following cities are governed under the council-manager cinnati, Rochester, Oakland, Fort Worth, Dallas, Wichita, Miami, Long Beach, San Diego. Such an official, with greatly restricted powers, was provided for in the San Francisco charter adopted in 1930. See Harvey Walker, “Theory and Practice in State Administra

F. Nolting (Eds.),

*

tive

Reorganization,”

loc. cit., pp. 249, 252.

ORGANIZATION

Ch. 4]

59

to the reaction of the average citizen, the old weak form of organization

of administration by machine politicians. It gave govern ment that touch of mystery which barred attempts at further insight on the part of great numbers of persons. This left the rapacious political its

by

favored control

of

*

by

of

by

a

of

confounding plunder, shielded free to carry on veil integra intricacy impenetrable the workaday voter. The advocates simplifying government through placing tion would meet this situation organization

in

to

is

of

a

to

be

of

a

in

single leader who compelled administration the hands act popular sentiment can readily the open, and upon whom the influence controlling possible arbitrary and dis brought bear. As means

a

of

as

of

honest acts and preventing administration from falling into the hands political machines, there would exist such checks the recall, the legisla administration, citizen advisory committees, and rigorous tive audit administrative

exists

theory

in

-

organization

in

This

type

of

merit system for personnel.

such cities

of

in

in

its

in

in

It

as

in

New York, Boston,” and Denver; and, with certain mitigations, such recent charters as those of Buffalo and San Francisco. has now varying degrees been embodied the reorganizations state gov York, California, Illinois, New Ohio, Tennessee, Virginia, ernments integration probably and others.” The idea has received most thorough going trial the six hundred and some-odd cities which have adopted Because

form,

involves has been given

The No-Executive Organization.—The administrative

thus

officer,

types

administrative

organi

far have had some kind of executive or chief one case with only nominal authority, and the in

considered

in

zation

of

in

little different principle than the strong mayor separate treatment later this chapter.

a

government.

it

municipal

it

plan

of

the council-manager

in an

as

of

as

of

the fifth and sixth class, the chairman the respon may designated mayor, elective board but his administrative greater than those sibilities are his colleagues. The board divides administration, itself into committees on the chief functional divisions by

of

of

no

be

California municipalities

In

a

of

is

a

of

other with considerable actual directing power. However, most American counties, and number smaller cities, have no single executive authority with even nominal powers. Executive authority divided between elective board and number elective officers. the smaller cities,

be

in

which, while having no more legal authority than ordinarily possessed legislative committees, practice exercise considerable control over ad

in of

of

in

B.

of

E.

* *

**

policy This question will more thoroughly discussed from the standpoint following chapters. Here only the bare elements are mentioned. Munro, The Government For descriptions Boston and New York, see W. York, Co., 1926), pp. American Cities (The Macmillan New 449-479. Buck, Administrative Consolidations See A. State Governments (National Munic ipal League, New York, 1930, 5th ed., pp. 1–42.

ORGANIZATION AND COORDINATION

60

[Ch. 4

ministration. The elective officers derive their powers from statute or charter and, therefore, are not subject to any other administrative control.”

The difficulty with trying to segregate administrative organization into or types lies in the danger of oversimplification, and this is peculiarly true of this classification which has been arbitrarily named the “no-executive” form. The chart in Figure 3 is by no means intended to all

categories

to

be a

is

It

so

convey the impression that administered, for American counties are such not the case. County organization has myriad forms. would fairly safe generalization make, however, that administrative respon

ELECTORATE

BOARD OR

|

recent years

the electorate

in

to

Organization

The No-Executive

larger number

HD

the older county activities,

but

of

in

sibility generally runs

3.

Figure

E

H

THE THE HIHL

B

L

COUNCI

1900, commission

wave widespread

by

Cities.—Coming during the

It

ending about 1915. combined three, five, and administrative functions into seven elective commissioners who acted collectively the city council and individually heads administrative departments. The initial popularity the scheme decade

or

adoption

into existence on the Galveston tidal government enjoyed great vogue and secured a

of

Commission

a

that the charitable and social service agencies have been placed under officers appointed the board.

its

was frequently adopted high class citizenry

on

of

a it

the fact that

of

was probably largely due

to

of

as

as

legislative

the

sup

to

turn led

its

of

a

in

of

in a

many instances. Administrative action, controversy before the commission, matter

official animosities w

causing certain commissioners

to

which

to

unhappy union details, frequently became

in

proved

an

in

of

In

of

of

a

wave civic renaissance and attracted port. The inherent weaknesses the idea soon became apparent, however. the first place, combining the political function with the direction permanent administration, administration the absence tradition

C. in

J.

K.

*

See H. Porter, County and Township Government the United States (The Macmillan Co., New York, 1922), Ch. VII; A. Fairlie and M. Kneier, County Gov ernment and Administration (The Century Co., New York, 1930), Ch. VII.

Ch.

ORGANIZATION

4]

61

combine in cliques against others. The result was that the supervising administrative personnel became composed of puppets who capitulated to the politicah exigencies of the commissioners. Further, as is usual under political control of administration, the fear of the man on the job of politi cal removal created a certain formalism which deprived departments of that elasticity and freedom of action which is so vital to effective manage ment. The meddling of political amateurs in the field of the technician led the latter to surrender his command and become an automaton who re

ELECTORATE

/

COMMISSIONERS

ACT COLLECTIVELY AS CITY COUNCIL ACT INDIVIDUALLY AS DEPARTMENT HEAD5

_^

Figure

4.

N

|

Commission Form of City Organization

sponds mechanically to the commissioner's not develop under such conditions.

will. Good administration

can

In the second place, commission government did not bring the centrali zation of power and responsibility which it promised. Instead of the much needed executive budget, the sine qua non of effective administration, it offered the opportunity for legislative treasury raids free from administra tive checks. Furthermore, five men can be as effective as a mob when it policy. Political dickering led to comes to agreeing on administrative agreements whereby one commissioner would agree to refrain from voting adversely on matters concerning the departments under another, for a

of

its

reciprocal consideration. The result was lack of coordination and central ized planning. While this plan of municipal government is still working popu well in many small and medium-sized cities, the crest of wave

larity passed almost twenty years ago.

Council-Manager

Organization

a

F.

E.

*

Ridley and Orin, Nolting Clarence national City Managers' Assn., Chicago, 1945),

(Eds.), The Municipal Year p.

to

of

of

Approximately 600 American cities now operate under the council municipal government.* This most recent American con tribution the field charter experimentation provides for small coun manager plan

532.

Book

(Inter

*

ORGANIZATION AND COORDINATION

of of

in

as

in

go

such matters that whole field commonly

management.

understood

so

a

administration the appointment

Some charters even far from even suggesting prospective employees

to

to

councilmen

as

as

of

belonging

free hand

a

activities for the geheral policy.

the administrative

city.” The council charged with determining questions Its members must refrain from interfering the realm proper, leaving the manager his subordinates, well

4

as

at

large, and this group selects

to

entrusted

[Ch.

as

whom

of

members elected

seven

is is

to

five manager

all

or

of

cil

62

prohibit

the manager.

ELECTORATE

-

COUNCIL

AUDIT

H H

attempts

of

resist

council members resign He should rather than

it

of

is

is

councilmanic the

should seek

to

excessive

his own sphere.”

be

considered properly

If

to

administration. subject him

which

what not pleased with the conduct administration petty interference, the situation without and

council

El

-

H

H

T

-

~A

Organization

all

5.

Council-Manager

supposed

of

the field

conditions

-- -

to

meddling

in

to

interfere work under

is

good city manager

in

A

Figure

L

*

to

\

&

HH

**

T

zºss-__ -

,”

H

—º

MANAGER

of

to to

or

be

the salary which can

Florida, and irrespective

Of

course this admirable

of

in

by

*

Manager

Y A.

Cottrell, “Advantages and Disadvantages the Council-Manager Plan,” City carbook, 1931 (International City Managers' Assn., Chicago, 1931), pp. 9–18. City Manager Yearbook, 1932, pp. 109-132. leading managers See discussion

E.

**

or

in

he

of

to

is

tive secure the best qualified man available paid, regardless whether lives Maine campaign contributions party activity.

of

it

be

as

require that the manager assistant manager. The objec at

as

the newer charters are even going far experience city manager shall have had

or

so

is

to

of

or

if

correct this fails can always bring about the removal resignation the manager. professional and experienced Because city managers are expected administrators, their selection not confined local candidates. Some

ORGANIZATION

Ch. 4)

f

Af

63

theory does not always work out in practice, for managers are frequently chosen on a basis having little to do with sheer merit. Nevertheless, much progress is being made in this direction.* SELECTED READINGS

-

º

BOOKS AND MONOGRAPHS

Appleby, Paul H. Big Democracy. (Alfred A. Knopf, New York, 1945), pp. 65–77. Barnard, Chester I. The Functions of the Erecutive. (Harvard University Press, Cambridge, 1938), 339 pp. Brookings Institution Report of Byrd Committee. Investigation of Erecutive Agen cies of the Government. (Government Printing Office, Washington, D. C., 1937), 75th Cong., Senate Rep. No. 1275, pp. 4–44. Buck, A. E. The Reorganization of State Governments in the United States. (Columbia University Press, New York, 1938), 299 pp. Edwards, William H. The Position of the Governor in Recent Administrative Re organizations in the States. (Ohio State University Press, Columbus, 1937), pp. 61–70.

Fayol, Henry. Industrial and General Administration. (Published for International Management Institute by Sir Isaac Putnam & Sons, London, 1930), 84 pp. (Kegan Paul, Trench, Florence, P. Sargent. The Logic of Industrial Organication. Trubner & Co., Ltd., London, 1933), pp. 1–24. Gulick, Luther H. The National Institute of Public Administration: A Progress Report. (The Institute, New York, 1928), pp. 3–106. Gulick, Luther H., and Urwick, L. (Eds.). Papers on the Science of Administration. (Institute of Public Administration, New York, 1937), pp. 65–127. Hart, James. An Introduction to Administrative Law. (F. S. Crofts & Co., New

York,

1940),

pp. 65–127.

Hekking,

Francis. Réfleriones Sur la Mécanique Administrative. (Editions de la Maison Française, New York, 1943), pp. 7–106. Herring, E. Pendleton. Public Administration and the Public Interest. (McGraw Hill Book Co., Inc., New York, 1936), pp. 28–43. (University Lipson, Leslie. The American Governor, from Figurehead to Leader. of Chicago Press, Chicago, 1939), 282 pp. MacCurdy, J. T. The Structure of Morale. (The Macmillan Co., New York, 1943), pp. 152–167.

Marshall, Leon C.

Organication: A Basic Process in the Coordination of Groups. (American University, Washington, D. C., 1940, mimeo.), 81 pp. Meriam, Lewis, and Schmeckebier, Laurence F. Reorganization of the National Government, What Does It Involve. (Brookings Institution, Washington, D. C., 1939),

Munro,

272 pp.

W.

B.

York, 1926),

The

Government of American

Cities.

(The Macmillan

Co., New

pp. 449–479.

Chicago

Press,

Chicago,

J.

1934), 143 pp.

of

F.

“The City Manager Profession and Directory,” The Municipal Year Book, 1945, ff.; Nolting, The City Manager Profession (UniversityRidley and O. E.

531

C.

**

p.

J.,

National Municipal League. Model City Charter. (The League, New York, 1941, 5th ed.), pp. 1–14. Porter, K. H. County and Township Government in the United States. (The Macmillan Co., New York, 1926), 362 pp. President's Committee on Administrative Management. Report, with Special Studies. (Government Printing Office, Washington, D. C., 1937), 382 pp. Roethlisberger, F. Management and the Worker. (Har and Dickson, William vard University Press, Cambridge, 1939), 615 pp.

\ 64

ORGANIZATION AND COORDINATION

[Ch.

4

Short, Lloyd M. The Development of National Administrative Organization in the United States. (Johns Hopkins Press, Baltimore, 1923), 514 pp. Stone, Harold A., Stone, Kathryn, and Price, Don K. City-Manager Government in the United States. (Public Administration Service, Chicago, 1940), pp. 53–76. Weber, G. A. Organized Efforts for the Improvement of Methods of Administration in the United States. (D. Appleton & Co., New York, 1919), 391 pp. Wilcox, Delos F. “An Examination of the Proposed Municipal Program.” Pro ceedings of the Conference for Good City Government, 1899. (National Municipal * League, Philadelphia, 1899), pp. 51–57.

PERIODICALS E. A. “Advantages and Disadvantages of the Council-Manager City Manager Yearbook (International City Managers' Assn., Chicago,

Cottrell,

Plan.” 1931),

pp. 9–18.

Edwards, William H. “Has State Reorganization Succeeded?” State Government (October, 1938), Vol. 11, pp. 183–184, 192–193. Gulick, Luther H. “War Organization of the Federal Government.” Americon Political Science Review (December, 1944), Vol. 38, pp. 1166–1179. Herring, Pendleton E. “Executive Legislative Responsibilities.” American Political Science Review (December, 1944), Vol. 38, pp. 1153–1165. Macmahon, Arthur W. “The Future Organization of the Executive Branch.” American Political Science Review (December, 1944), Vol. 38, pp. 1179–1191. Millett, John D., and Rogers, Lindsay. “The Legislative Veto and the Reorganization Act of 1939.” Public Administration Review (Winter, 1941), Vol. 1, pp. 176–189. Ridley, Clarence E. “The Job of the City Manager.” Public Management (Septem ber,

1945),

Vol.

27, pp. 258–263.

Ridley, Clarence E., and Nolting, Orin F. (Eds.). The Municipal Year Book. (Published annually by the International City Managers' Assn., Chicago). Spicer, George W. “Gubernatorial Leadership in Virginia.” Public Administration Review (Autumn, 1941), Vol. 1, pp. 441–457. Symposium. “Ten Years Progress in Management.” Transactions of the American Society of Mechanical Engineers (April, 1943), pp. 213–260. Walker, Harvey. “Theory and Practice in State Administrative Reorganization.” National Municipal Review (April, 1930), Vol. 19, pp. 249–254. Wilson, Woodrow. “The Study of Administration.” Political Science Quarterly (June, 1887), Vol. 2, pp. 197–222; reprinted in Political Science Quarterly (Decem ber, 1941), Vol. 56, pp. 481–506.

CHAPTER

5

PRINCIPLES OF ADMINISTRATIVE ORGANIZATION It

advisable to make a preliminary summary or recapitulation before we proceed to a more detailed discussion of the principles of organi zation. A summary of this kind should permit the reader to obtain an over-all picture which should facilitate his thinking when studying sepa seems

rately the various points given below: 1.

be a hierarchy,

There should

sometimes referred to as the “scalar process,” wherein lines of authority and responsibility run upward and downward through several levels with a broad base at the bot tom and a single head at the top. Each and every unit or person in the organization should be answer able ultimately to the chief administrative officer at the apex of the hierarchy.

The principal subdivisions on the level immediately under the chief ordinarily should be made up of activities grouped into depart ments on the basis of function or general purpose. The number of these departments should be small enough to mit the chief to have an effective “span of control.”

per

these departments should be self-contained in so far objective as this does not interfere with the necessities of integra tion and coordination.

Each one of

be staff services, both general and

There should

auxiliary, to

facili

as

be

it,

tate management and coordination. In organizations large enough to warrant certain auxiliary activi ties, such personnel and finance, should directly under the officer and should the line departments.

work very closely with

be

to

is

as

recognized The distinction between staff and line principle applied with the variations appropriate

to an

similar units

in

chief administrative

operating the

situa

tion.

administrative

integration.

As

group

one governmental

in

the professional

65

is

The dominant dogma

of

The Integrationist School public administration

function after another

ORGANIZATION AND COORDINATION

66

[Ch.

5

in

of a

is

it.

is

of

it.

has been added over a period of years, the tendency has been to set up a new and independent unit to administer The pressure groups sponsor ing legislation have usually wanted such autonomy, and the normal drift public administrative organization toward The result that many American states have had administrative units numbering excess often with statutory

autonomy enabling them resist effective separate coordination. the cities have administrative departments running into the scores. Men who have attained professional status public administration, whether scholar practitioner, almost unanimously

or

in

of

Many

to

hundred,

of

disapprove

an

as

from any single responsible management authority. For this uncoordinated arrange ment they would substitute the hierarchical principle with administrative departments under the supervision chief administrative officer and his

supervision

a

of

all

their

own separate ways without coordination

or

in

it

of

this situation." administrative integration view antidote for arising anarchy departmental autonomy the administrative from excessive American state and local government. They see these departments going

The advocates

of

immediate assistants.

of

a

in

is

in

no

is

of

administrative integration raise the arbitrary power. The integration apparition dictatorship and the use danger placing great power ists reply that there the hands accompanied by chief administrative officer provided that this power

of

Those who are apprehensive

by a

of

They claim that administrative integration commensurate responsibility. brings the wielder power out into the open where the people can see him and hold him responsible. They claim that this contrasts very favorably

so by

be

is

to

is

of

is

In

is

with the old disintegrated system, wherein the real power wielded political boss who neither visible nor responsible. other words, the power. choice not between freedom and power, but between two types likely Under the weak administrative forms, the power exercised persons other than the duly elected public officials. As Lincoln Steffens

“invisible government”

in B.

Munro has very aptly dubbed this situation

as

a

a

in

of

aptly pointed out, the wielder the scepter might very well have his disreputable neighborhood over dingy saloon.” William office

so

is

as

of

It

of

in

of

&

of

p.

1,

of

G.

of 3,

C.

of

3,

F.

of

is

be

to

in

H.

K.of is

of

on

in

it

to

of

*

of

integration There has been some skepticism toward the extreme form administrative on the part certain very reputable political scientists. “Authoritative control from above business, by no means has much recommend terms dollars and cents. high certain that concentrated power, the state level, such governmental functions way administration and the management schools would yield the same good results. This especially true when political considerations are properly weighed, and when the interest democracy and self-government the people what they conceive considered.” Porter, “Surveys State Administrative Organization: Iowa and Wyoming,” pp. 481. 488. American Political Science Review (June, 1934), Vol. XXVIII, No. W. Coker, Dogmas Administrative Reform,” American Political Science Review (August, pp. 399–411; Haines, “The General Structure 1922). Vol. XVI, No. Court Organization," Annals Academy the American Political and Social Science (May, 1933), Vol. CLXVII, pp. 5–8. *Joseph Lincoln Steffens, The Autobiography Co., Lincoln Steffens (Harcourt, Brace York, 1931), New 236.

PRINCIPLES OF ORGANIZATION

Ch. 5]

67

The integrationists fully realize that the adoption of their ideas will not be a specific cure for administrative ills, but they to

is

a

of

it

place actual administrative power claim that desirable duly designated public hands official. This move will facilitate

for the introduction

the

coordi

budgetary practice, provide

the framework management, work

of

nation, bring about improved

in

do

all

his book by that title.”

In

responsibility.

a

as

of

by

of

the principles scientific simplify proper politics toward the division between and administration ing the line command, and consequence create administrative short, integration

on

by

is

of

be

is

the modern streamlined skeleton upon which sound public management must based. The principle integration usually applied administrative within the individual depart

a of

or to in

is

of

is

on

ments themselves even those who oppose integration the top level. Integration top opposed by the level various functional groups, an example public education. The educators which found the field a

by

be

welfare and social work groups also have wanted their activities

to

in

of

of

becoming department the general city city manager. They demand their own sepa rate boards education with independent taxing power, and they have attaining this end. The public been successful with but few exceptions

almost unanimously object government under mayor

in

as

as

in

of

as

independent boards, but they have not been successful attaining budgetary independence. The principles the school people summary form above have uni administrative organization set forth administered

management coordination ments are subjected.

and budgetary controls

to

be

as

versal applicability for individual organization units. Controversy arises only over the question whether certain broad functional units such the public schools, public welfare, and public libraries shall exempt from the which

other depart

The Scalar Principle or

of

re

consists

of

It

scale,

supreme leadership represented to

in

of

the hierarchical pyramid, but necessary delegate both authority

of

to

it

to

order exercise this leadership and responsibility the subleaders

on is

at

or

by

tion, and (3) functional definition. There persons, the person, the apex

is

is

to

of

a

in

or

groups

is

arranging the administrative from which comes the designation “scalar.” According those responsible for the use this term, the process” phases: leadership, “scalar divided into three (1) (2) delega

it

structure, because universal. upon steps units

a

is

It

as

to

is

synonymous with what has sometimes been The scalar principle hierarchy. particular form organization ferred the not

*

William Bennett Munro, Invisible Government

of

in

of

the various subordinate steps the upon scale. These subleaders head units which have been differentiated the Thus, Agriculture basis functional definition. the Department (The Macmillan Co., New York, 1928).

ORGANIZATION AND COORDINATION

68

[Ch.

5

there is a Bureau of Dairy Industry and a Forest Service. A similar dif ferentiation in function is exhibited by the Department of the Interior with an Office of Indian Affairs and a Petroleum Conservation Division.*

= [= HELLP

[−

-

HH

=

Figure 6.

Unity of Command.—A

A

Hierarchy

aspect of the “scalar” or hier There should be at the top of the

fundamental

archical principle is unity of command. scale one point where the lines of authority and responsibility concentrate. The lines of authority should run both upward and downward so that every single worker is ultimately answerable to the head of the organization. The strict channels of authority along which such responsibility runs are designated on an organization chart by the heavy black lines which join the steps on the hierarchical scale. This is sometimes referred to in techni cal parlance as the “line of command” or “chain of command.”" Thinking

as

it

is

to

of

command, communications should go through the line familiarly referred may be. This matter how circuitous “through channels.” Anyone familiar with day-to-day administration no

ingrained that

all

on this subject is sometimes confused. This confused thinking arises from the fact that many administrative contacts in practical operations do not strictly follow the line of command. In military circles the feeling is deeply

to

of

of

in

organizations with well knows that there are many cross contacts even established hierarchical lines. The unity command principle means that the chief should not go over the heads his immediate subordinates deal a

of

practice breeds lack with their subordinates, for such confidence and injures morale." However, anyone even slightly familiar with large-scale

º

&

of

pp.

Administration 28–29.

in

5,

in

H.

Arnold Brecht and Comstock Glaser, The Art and Technique Ministrics (Harvard University Press, Cambridge, 1940),

German

of

88

*

.

*

*

C.

(Harper Reiley, The Principles Organization James D. Mooney and Alan Bros., New York, 1939), pp. 14–24. Marion, “Organization for Internal Control and Coordination John the United Army,” American Political Science Review (October, 1938), Vol. XXXII, No.

º

PRINCIPLES OF ORGANIZATION

Ch. 5] organization

69

of cross contacts both up and down the hierarchical levels which constitute desirable short cuts, just so long as they do not impair the normal chain of command." Another apparent violator of the principle of unity of command is the functional

knows that there is

specialist.

a wide variety

In practically every large-scale organization there are

functional specialists in a staff capacity. They are constantly contacting people on all levels of the hierarchical scale and advising them in relation to the particular specialty concerned. This often causes a conflict between. the technical staff people and the line of command which is so aptly de scribed in the expression “the rival claims of hierarchy and specialty.” " Some authorities refer to a line which runs from the functional specialists at headquarters and supplements and parallels the line of command as representing “the authority of ideas.” There has been at times a tendency. to try to ignore these functional lines because of a feeling that they violated good organization principles. However, their existence is being given more than formerly.

The fact that they cannot be ignored is evi denced by their existence even in the army, where obedience is an unques recognition

tioned axiom.”

Officer.—The principal difficulty encoun tered with the chief administrative officers, like the President, governor, and mayor, is that they are at the same time both political leaders and administra tive heads. They are elected for short terms, a fact which often results in breaking the continuity of administrative policies. The inclinations of these

The Chief Administrative

officers are for the most part probably much more political than administra tive. Seldom does an American chief executive have a feel for adminis

tration; some exceptions seem to have been Governor Alfred E. Smith of New York, Mayor Daniel Hoan of Milwaukee, and President Franklin

D. Roosevelt.

-

Both investigators and observers in the field have, for many years, been searching for some device to remedy the adverse effects upon administra tion which have resulted from having the elective heads as the actual direc tors

of administration.

Under the city manager form of government this

difficulty is minimized

by the fact that the manager is recognized as the -* head professionally qualified for the office. It has been recommended that a similar officer be placed in charge of state administration,” leaving the governor free for that rôle which Ameri can tradition seems to demand of him: legislative leader, molder of policy, administrative

U. S. Temporary National Economic Committee, Investigation of Concentration of Printing Office, Washington, Monograph No. 11 (Government D. C., £ºwer, 1940), p. 78. * Arthur W. Macmahon, John D. Millett, and Gladys Ogden, The Administration of

fºr:

-

Federal Work Relief (Public Administration Service, Chicago, 1941), p. 244. ° Marion, loc. cit., p. 887. 10 See Harvey Walker, “Theory and Practice in State Administrative Organization,” National Municipal Review (April, 1930), Vol. XIX, No. 4, pp. 249, 252-253,

-

7

.

70

ORGANIZATION AND COORDINATION

[Ch.

5

manipulator

of public opinion, or ceremonial and festival playboy, and community orator. In 1931, San Francisco adopted a new charter creating a chief administrative officer to be appointed by the mayor and to have charge of the following departments: finance and records, purchasing, real estate, public works, electricity, public health, county welfare, coroner,

horticultural inspection, and weights and measures.”

L. D. Upson

has recommended an administrative assistant to the mayor for Detroit. Such an officer would constitute a stabilizing force in administration in a city where there have been ten mayors in sixteen years. Chosen from an eligible

list furnished by the civil service commission, he could be removed by the mayor at will upon presentation of charges, but his successor would have to be chosen from an eligible list.” This permanent administrative office should be as attractive as possible from the salary standpoint. Mr. Upson proposes $15,000 to $18,000 for Detroit. The San Francisco charter sets the salary at $12,000 (more than the salary of the mayor who receives $10,000), and Harvey Walker suggests $25,000 to $50,000 per year for the state position. One might venture the guess that the director of finance, as chief budget officer, is tending to become the chief administrative officer in fact, in those places where executive budgeting is taken seriously. Mr. Walker suggests that his proposed chief administrative

officer may actually be taking form in the director of finance.” It is in line with sound British experience, where the permanent undersecretary of the treasury is the head of His Majesty's Civil Service. When one considers how the budgeting of

in

sufficient funds among services with infinite needs is tied up with every possible phase of management and coordination, it is not difficult to under stand that the director of finance is tending to become the chief administra tive officer in fact. This is a desirable tendency if each incoming political executive will refrain from changing incumbents to satisfy political exigen cies. The next step will be to impress on incoming governors that no change should be made in this position for political reasons.

The director of finance heads the department of finance which super vises the housekeeping activities of all of the branches of the governmental unit to which it belongs, whether it be nation, state, county, or city. After the appropriation acts are passed, the department of finance holds the several departments to the terms thereof, thus preventing them from incurring obligations in excess of resources. It maintains constant current audits to see that every division is handling funds with fidelity and according to the

1931, Secs. 59–62; also 11 See Freeholders Charter of City and County of San Francisco, San Francisco Bureau of Governmental Research, The City, March 2, 1931. The charter is published in full in Statutes of California 1931 (Bancroft–Whitney Co., San Francisco, 1931), pp. 2978–3109. Research, Report No. 123, A Proposal for an Ad ** Detroit Bureau of Governmental ministrative Assistant to the Mayor (March 20, 1931). **Walker, op. cit., pp. 249, 252-254.

PRINCIPLES OF ORGANIZATION

Ch. 5]

fees, fines, costs, and invoices col government the are promptly turned into the general treasury for accounting and safe-keeping. purchases supplies and equipment according standard specifications, transfers unneeded sees that

where

be to

to

equipment

it

It

all

of

by

strictest accountability. any agency lected

all

It

71

used, and salvages much that would otherwise

can

It

finance may,

in

a

of

to of

the needed personnel. Some departments avoid deficit by reducing expenditures

is a

all to

it

be

so be

its

personnel divisions waste. Through classifies duties and positions wages according that and salaries can set well-devised plan. keeps the service rating and personnel records employees, and recruits

emergencies,

less than the appropriations.

vengeance.

on

of

a

a

to

In

a

coordination with Organization and report made special legislative committee Revenue the Wyoming State Legislature, Griffenhagen and Associates, Such

in

Administration established

in

is

of

to

a

be

for

need

a

unified and coordinated state organiza tion, advocated state administrator chosen by, and responsible to, the legislature.” An experiment worth watching the Commissioner

after recommending the

is

an

in

is

will distrust him

by

is

in

tration. no authority

responsibility

an

on

If,

of

of

for those particular phases adminis hand, permanent given the other the administrative chief incoming his own right, there the possibility that

the chief executive

he

the necessity his position, has worked with the previous administration. These difficulties, while probably not insurmountable, are nevertheless formidable. because,

of

governor

to

If

it

of

of

or

to

A

Minnesota 1939. creating administrative chief with tenure give him any substantial powers without impairing the responsi how bility the governor the mayor himself. the law confers specific powers thereby tends administration upon such an officer, relieve very great difficulty

high professional has indicated that these units build up reputation period years, and technical over their services and advice will utilized the political elective heads irrespective their political tendency incoming governor mayor views. There natural for a

of

of

to

or

an

all a

to

no

the advisors

of

the previous administration, and make permanent political little or distinction between the civil service staff and appointees. Experience has indieated that where competent administrative be

suspicious

of is

be

by

a

if

Experience

is

in

of

in

of

be

by

A

of

very promising device for insuring that the interests sound adminis jeopardized changes political tration will not the administration budgeting and research. the establishment staff agencies the field

a

is

be

to

on

research staffs have existed for some time the newly elected chief executive will gradually turn such staffs for advice administrative matters. The period when each cautiously feeling out first few months will often

Ol.

-

-

Report Made the Special Legislative Committee on Wyoming (Prairie Publishing Co., Cooper, Wyo., 1933), to

and Associates, Revenue, State

of

II,

p.

**

$ººd

Griffenhagen

ORGANIZATION AND COORDINATION

72

[Ch. 5

It

is then that the stature of the staff director is tested by his adroitness in gaining the confidence of the new governor or mayor. Certain staff agencies were set up in the Executive Office of the Presi the other.

all

dent by the Reorganization Act of 1939. There can be little doubt that these staff agencies are destined to remain as permanent attachments to the chief executive, and it is the more likely that future Presidents will

by

a

at

great disadvantage without such aid. Before the afore find themselves mentioned changes took place, the President was overwhelmed with un ending detail and sheer necessity allowed essential administrative con

the question, however,

be

public administration.” There remains kept not the personnel will from on

the field whether

be

historic importance

Luther Gulick intimates that these new the new organizational arrangement will

of in

of

establishments accompanied

or of

by

slip away from him.”

to

trols

to

to

to

to

to

to

one administration the next lend valuable continuity administrative procedures. Not enough time has elapsed enable anyone make any regarding possibility personnel assertions the that staff attached the in

limited

the number the “span

to in

is

by

what the psychologists refer management there has been much speculation as

can supervise

In

persons

of

of

Control—Any particular individual he

of of

Span

of

a

in

of

a

in

a

in

change executive office will remain their posts even though adminis change tration takes place. The probabilities are that administration change will result heads directing some these staff agencies.

an

be

to

a

by

by

is to a in

of of

of

a

the span

of

growth

in

geometric control complexity One well-known writer has even reduced the the control mathematical formula." Another points out that the to a

beyond this number leads ratio. span

no

It

to

is

or

of by

to

of

attention.” the field regarding the number persons who should report administrative supervisor. An extreme view, but chief means fantastic one, that the maximum number near the top the hierarchy ought from three five. has been said that the arithmetical increase of units

is

a

is

only

answerable

to

be

wants

to

separate departments because the “empire builder” type the chief executive

of

forces which make large number

a

there are certain and almost irresistible tendency toward first place, there

or of

the

is a

In

so.

it

large because

in

of

control

of

necessarily limited the number effective decisions day, perhaps one man can make which not more than five.” The span control most American governmental jurisdictions too span

department head governing

body.

A

p.

2,

8.

p.

la

de

la

of

of

*

on

in

L.

-

p.

2,

A.

*7

I,

I,

* *

of

Louis Brownlow, “The Executive Office the President, General View,” Public Administration Review (Winter, 1941), Vol. No. 104. Luther Gulick, “The Executive Office, Conclusions,” Public Administration Review (Winter, 1941), Vol. No. 104. Graicunas, “Relationship V. and Organization,” Luther Gulick and Urwick (Eds.), Papers the Science Administration (Institute Public Administration, New York, 1937), pp. 183–187. Mécanique Administratize (Editions Francis Hekking, Réfleriones sur Maison Française, New York, 1943),

PRINCIPLES OF ORGANIZATION

Ch. 5]

73

to

its

the seat

to

as

if

of of in

a

possible frustration and

of

the legisla department

particular governmental activities fear that they are functional affairs may result large department. They the many units

is

in

head. Fifth, those interested inept and dilatory handling placed merely one what

of in

or

cal steps. Fourth, each functional chief desires such access governing body may appertain ture the position

are apprehensive

hierarchi

authority without going through intervening

of to

access

of

to

in

as a

an

in

or

be

up

Second, each pressure group wants own pet administrative activity independent department rather than embodied set bureau Third, every functional chief desires division another department.

to

an

in

of

in

to

of

do

of

of

of

failure achieve desired departmental offi the inertia and lack enthusiasm cials.” Sixth, the sponsors new administrative activities not want become units an old department because they imagine that they will organization which they believe already become stifled the red tape ends because

too large for effective action.

of

to

of

In

on

be

Luther Gulick has stated that the three factors of func this respect. Thus, one who

is

homogeneous function, such engineer subordinates However, engineers, may utilize larger span control. an engineer having medical, educational, and social work supervisors reporting a

in

an

a

smaller span desirable. Probably the span older and more stable organization than

control

new one.

of

the offices one's subordinates are scattered geographi span small control would seem desirable.”

of

a

Furthermore, cally,

if in

be

to

him might find larger can

of

a

supervising

of

as

of

supervising

in

space have great influence

an

often than others.

tion, time, and

at

of

It

of

a

It

state with any degree assurance that there control universally applicable. varies with indi span top viduals and circumstances. The control the the hierarchy any given organiza should probably smaller than the lower levels. tion there will be subordinates who should see their immediate chief more

is

does not seem possible

particular span

is it is

at

it

tendency for energetic and people reporting them. as to a

of

a

to

to

ments are feasible. There seems petent persons large number want

a

be

in

of

a

of

to

is

in

it

so

of

far has emphasized the span control the depart level, necessary impression ment head but avoid the that unim portant fact, probably steps. the other hierarchical As matter the subordinate units the department that the most effective adjust The discussion

com The

p.

#.

19s, Jing24 f. ,

is

to

at

is

It

be

suggestion that this number personal reduced often regarded affront. not all uncommon find an overworked executive hazard Landis, The Administrative Process

(Yale University Press,

New Haven,

of

of

of

.

. .

of

C.

;

L.

in

of

25

of

on

of

p.

on

of

on

*

Organization,” Luther Gulick, “Notes the Theory Luther Gulick and Ur wick (Eds.), Papers the Science Administration (Institute Public Administration, New York, 1937), pp. 8–9; Schuyler Wallace, Federal Departmentalization (Columbia Uni. Supervision and versity Press, 1941), Ralph Davis, The Influence 41 the Unit the Span Economy Organization Erecutive Control the Structure (Ohio- State Uni versity, Bureau pp. Business Research, Columbus, 1941),

ORGANIZATION AND COORDINATION

74

[Ch.

5

ing physical breakdown because he will not delegate power to his subordi nates. Thus, it seems that the span of control is directly related to the delegation of authority, for almost invariably the overworked executive is a detailist who will not relinquish immediate contact with every possible phase and aspect of operations. In most cases the satisfactory answer rearrangement would be a of functions and activities so that a smaller number of persons would be reporting directly to the chief who finds him self in such a critical situation.”

The Number of Departments.-The theory of a small span of control leads students of public administration to advocate a small number of administrative departments, whether they are dealing with the federal, state, or local government. This led the President's Committee on Administrative Management to advocate that the independent regulatory agencies be inte

The device of separating the admin istrative and policy-forming functions of these agencies was designed to retain their independence of action on quasi-legislative and quasi-judicial matters. As is the case with most issues of this kind, there are two sides with rather eminent advocates of the counter viewpoint. Thus, James M. grated into the executive departments.

Landis argues that there is nothing to fear in the increase of the regulatory commissions and that, quite conversely, such a development would tend

It is claimed that large heter ogeneous departments do not give effective supervision to new activities. Instances are pointed out where regulation has been energized by having it transferred from a department to an independent agency. Responsibility toward efficiency in the regulatory process.

can be placed directly upon those in charge when a new activity is given independent status. The need of the day is expertness, and the proper incentive to the expert is not provided by stifling him in the labyrinth of an enormous executive department.” interest on this point are the observations of Lewis Meriam and Laurence F. Schmeckebier, which probably also represent the views of The Brookings Institution. Two types of federal departments

Of

considerable

one, the unitary operating department, and the other, the type of department. The first includes those departments department unite toward achieving single the bureaus

major objective.

a

a

of

of

where

all

are recognized: parent-company

This group includes State, War, Navy, Justice, and Post

4, 3

fſ.

25

º

p.

**

I,

in

*

Case Reports Public Administration 1940), Vol. pp. Case Report No. Landis, op. cit.,

(Public

the Interior Department. Administration

Service,

It

Education

in

and the Office

of

Department

in

of

to

in

to

as

of

The second consists those departments which include bureaus particularly purpose not related the others, such the Treasury, Agri culture, Interior, Commerce, and Labor. For instance, prior the Reor ganization Act 1939, the Public Health Service was the Treasury Office.

Chicago.

PRINCIPLES OF ORGANIZATION

Ch. 5]

75

was concluded that it is impossible to establish a formula to determine the proper number of departments. The establishment of the minimum num ber of departments in order to have a small spañ of control would inevi tably result in a certain number of parent-company type of departments. Some of the bureaus in such departments have, in fact, a very great deal of autonomy. This was true of the Public Health Service when it was in the Treasury Department the Interior Department.

and of the Office of Education when it was in Indeed, these agencies had so much autonomy where they were formerly located that it is said that they preferred not to be transferred to a new department with greater similarity of function.

The conclusion of these authors seems to be that the creation of a larger number of small departments with unifunctional objectives might be a desirable objective. It is insisted that structural reorganization will not bring about the desired efficiency and economy in the federal service. stead of fewer departments it seems probable that better results might be obtained by a larger number of smaller departments with coordination

In

brought

about through

a management staff agency under the President, and a research staff attached to the appropriate committees of Congress.” Arnold Brecht, formerly an important administrative official in Ger many under the Weimar Republic, suggests for American consideration a device used there. Certain important bureaus were given a great deal of operating autonomy while still subject to the over-all coordination of the department head.*

Organization

Subunits

An organization is divided into subunits on the basis of functions per formed by groups. The use of the word “function” in this connection

as

a

in

Frederick W. Taylor refers

to

the functionalism

of is

a

by

because

be

to

has

to

it

because

something

in

Furthermore, the specialists government finance make activity, distinction between function and the latter being division municipal fire department might represent under function. Thus,

a

a

a

automotive equipment.”

There are as

also process functions which building maintenance, and care

activity under function.” cross line departments, such

of

function and arson investigation

an

a

a

a

an

more involved.

finance,

However, this

F.

f.

p.

of

on

in

&

p.

I,

* ** *

23

Schmeckebier, Reorganication Lewis Meriam and Laurence of the National Govern ment (Brookings Institution, Washington, D. C., 1939), pp. 159–168. Brecht, Departments,” Arnold “Smaller Public Administration Review (Summer, 1941), Vol. pp. 363-373. Bros., New York, 1929), A. E. Buck, Public Budgeting (Harper 181 Gulick, “Notes Organization,” loc. cit., See chart the Theory 17.

•

so

of

is,

†)

many shades meaning. public administration, function usually refers the purpose accom fire, public health, plished department police, line such simple explanation and war. However, there some difficulty such

In in

many respects, unfortunate,

ORGANIZATION AND COORDINATION

76

[Ch.

5

confusion is not nearly so perplexing as it may seem, for little difficulty will be encountered if one simply bears in mind that function usually means an activity with a more or less unitary objective or purpose, very often utilizing the specialized technique of a craft, vocation, or profession. The very keystone of organization is the functional group; the hierarchy merely a grouping of functional units both vertically and horizontally. Thus, it is often stated that a department, bureau, or even a division should

\.

unifunctional. To say this, however, does not solve the problem of organizing subunits, because there are many other considerations which be

Functionalization may Recent trends in industry tend to make

to

or

so

of

has been suggested that the general purpose close that the public welfare agency

it

stance,

as of to a

of

or

where groups having similar community objectives differ vastly techniques, sources knowledge, professional background.”

be

principle may

the pure functionalization

made

in

Another exception

to

as

be

to

of

of

of

general rule,

be

deprived the control services that are essen purpose.” complete tial the and effective execution the main object But those departmental services which are common all branches, such accounting, stores, and personnel, may and should supervised by some central agency. a

not,

to as

is

A

all

be carried to an absurd extreme. each departmental unit nearly complete organization as a and self-contained as practical considera tions of cost allow.” Hence, it may not be advisable to create separate drafting, and all typing. departments which have charge of statistics, department head who rendering services directly the public should

all

must be taken into account.

their

For

in

police depart

at

of

is

of

to

is

ment warrant their very close association.” Yet the approach and viewpoint each group diametrically opposed many points. The engineering aspects traffic

of

of

be

In

in

be

placed elsewhere than control might very well the police department.” accomplished other words, departmentalization by function can never However, precision should with the precision the slide rule. this lack

1931),

H.

pp.

of

Dennison, 142-143.

can

be

it

in

what grouping

S.

**

mining

Organization Engineer

up

we are confronted

done and deter placed without violating the prin

any

(McGraw-Hill

be

of

In

building the organization from the bottom analyzing everything that has

by the task

to

of

or

a

of

to

be

justify expanding the number not used functional departments beyond reasonable span control. recognized Luther Gulick has that four considerations may govern the grouping organization units: activities

Book Co., Inc., New York,

of

p.

p. p.

B.

in

9,

E.

C.

** * *

Ridley, “Some Principles Administrative Organization,” Public Manage pp. 580, 581. ment (September, 1929), Vol. XI, No. Blandford, “Organization Management City Administration,” City See John Manager Yearbook (International City Managers' Assn., 1932), pp. 133, 134. Ibid., 137; Manager Edy, contra, ibid., 161. Ibid., 136. -

PRINCIPLES OF ORGANIZATION

Ch. 5]

This is not or theoretically. It will be found must be characterized by: ciple

1.

2.

of

homogeneity.

77

a simple matter, either practically that each worker in each position

The major purpose he is serving, such as furnishing water, trolling crime, or conducting education. The process he is using, such as engineering, medicine, statistics, accounting;

con

carpentry,

stemography, 3.

4.

The persons or things dealt with or served, such as immigrants, vet erans, Indians, forests, mines, parks, orphans, farmers, automo biles, or the poor; The place where he renders his service, such as Hawaii, Boston, Washington, the Dust Bowl, Alabama, or Central High School.32

It

is interesting to note that another authority in the field adds a fifth category to Gulick's enumeration given above. His addition would be that of grouping activities by knowledge available, or procedural convenience. He elaborates on this added consideration, which he considers to be basic, by stating that sometimes it is worth while to group together activities which may include several purposes or processes, utilize a common store of knowledge, or be closely tied together by certain factors of procedural con venience.

He illustrates his point by citing

the merger

of the employment

service and unemployment compensation offices. The two agencies were begun for entirely different reasons. Yet cooperation between the two was essential because persons for the most part haſl to be registered at the employment offices as available for work before they could receive benefits from the unemployment compensation office. It was quite apparent that both agencies were procedurally related. In fact, employees of both agencies worked out of the same premises. Thus, the two agencies were merged, since both the knowledge and procedures of each were very much linked

together.” *

f

Flexibility versus Rigidity It is

almost a dogma of administrative

thought that the details of

organi

zation structure should not be set forth in law. it is acceptable for the legislature to specify by statute the principal departments and to leave to administrative discretion the determination of the structure Some would say that

within

these departments.

better administrative

It has

been found that there is a tendency toward

results in those city manager cities wherein the

Theory of Organization,” loc. cit., * Gulick, “Notes George C. S. Benson, “Internal Administrative Organization.” * pp. 472-473, 480–481 tion Review (Autumn, 1941) Vol. I, No. on

p.

the

5,

man

15.

Public Administra

ORGANIZATION AND COORDINATION

78

[Ch.

5

ager has discretion under the law to mold his own organization.” Organi zation is dynamic and constantly changing. The administrative machine is almost certain to be poorly adjusted to reality unless it is perpetually watched and readjusted. Hence the chief administrative officer should have agency which studies organization and recommends to him the changes which may be necessary from time to time. The basic law govern ing administration should give the chief administrative officer the power to make such rearrangements in organization structure as may seem desirable a staff

at the time.*

Taylor's Functionalism Frederick W. Taylor's system of functional foremanship was based upon far-reaching a subdivision of the work by specialized activities or functions. His theories violated the principle of unity of command by placing the individual worker under as many as eight or nine supervisors, instead of the single foreman. He emphasized the authority of function and special ized skill rather than the military principle of unity of command. Taylor's experience, writings, and applications had to do with factory and shop management

where

physical

products

were

made by machinists

using

machine tools. The principle of specialization of function is becoming so important in public administration today that it is deemed advisable to demonstrate hypothetically how the Taylor system might work in a govern mental setup. The imaginary application as depicted in the accompanying figure envisages a very large punch card accounting establishment in a department

state

administering

unemployment

compensation.

as New York, Pennsylvania,

In such

Illinois, and California, accounts must states be kept for from two to five million individuals. This is usually accom requiring plished by punch card machines scores of key-punch operators

is,

and dozens of sorting, gang-punching, and accounting machines. It comes as near to constituting a factory production process as can ordinarily be found in governmental operations.

of is

as a

as

it

is

of

a

of

all, planning section which lays out the work and first constantly informed on every detail operations. This the heart Taylor's management program which sees the system superseding the man, although Taylor would not have regarded constituting regimentation There

of

it

7

in

to

of

he

the individual. Quite the contrary, would see means improving the individual and introducing him opportunities for ever Figure greater self-expression. The eight functional supervisors are

p.

K.

A.

Harold

*

in

**

Price, and Kathryn H. Stone, City Manager Government Stone, Don United States (Public Administration Service, Chicago, 1940), 79. President's Committee on Administrative Management, Report with Special Studies Printing Office, Washington, D. C., 1937), pp. 18, 33–34. (Government the

PLANNING SECTION

Writes Orders for

ORDER OF WORK CLERK

by

as

of

is

of

it

is

it

R.

in

7. Jones, Taylor,

of

4 Thomas Frederick W.

in

Security

of

Department

Supervision

Large

Punch

Card

(American Management Organization Theories and Types York, Book Co., Inc., New (McGraw-Hill Shop Management

Social

INSPECTOR

PERSONNEL

Association, 1911).

Accounting

Sees that workmen keep proper machines up standards care,

REPAIR SUPERVISOR

Discipline, industrial relations, grievances, personnel records,wages

Responsible for quality

to

No.

O

Functional

R

State

Principle

E K

Taylor's

R

Depicting

S

Chart

in

w

Best way do work quickest time Demonstrates

SPEED SUPERWISOR

Supervises recording time and gathers data for Planning Section

TIME AND COST CLERK

of

chart

to

Has charge preparation all work up time set machine Responsible for how set

to

New

York,

Setup

cleanliness, preservation and repair

in

from

FLOOR SUPERVISOR (Gang Boss)

Writes detailed instructions on do the work how

to

1929);

a

Adapted

work laid out Planning Section

INSTRUCTION CARD CLERK

CHIEF

| to of

Figure

at

least Layout work one dayahead

Division

º ^IVC

ORGANIZATION AND COORDINATION

8o

exact counterparts of changes in terminology

Taylor's

[Ch.

5

eight

functional foremen with certain developments to suit the of time and place. For instance, Taylor called his personnel man a discipline boss, which is hardly in line with modern attitudes toward supervision. The chart also uses the term “supervisor” rather than “boss.” Four of the functional supervisors have tasks which are clerical or “white collar” in nature. The order of work clerk would write orders as laid down by the planning section. In other words, he would be in charge of sched uling and seeing that the proper written schedules of work are in the hands of both the other supervisors and the workers. The instruction clerk would

write detailed instructions as to how

work was to

the

be done.

The time

and cost clerk would instruct the men how to fill out their time reports and gather data on time and costs for the planning department. The personnel given the line personnel officer as described later in this book. The floor supervisor would be charged with preparing the work for the machines and general flow through them. The speed supervisor would concerned with the best way the work

it in

the shortest amount

necessary.

seemed

of time. He would The responsibility

do

to

be

its

man would have the duties customarily

teach and demonstrate whenever

for quality would rest upon the

by

in

of

to

to

The repair supervisor

it

would see that the workers them maintaining the machines and equip selves gave the maximum attention preservation and repair. Because these machines ment the proper state inspector.

of

a

of

of

be

be

must leased from the manufacturer rather than owned the govern ment, this latter supervisor would probably representative the manufacturer rather than the management.”

of

to

It

be

authority runs from will noted from the chart that the solid line eight supervisors the division chief each the functional and from

individual worker.

of

by

a

to

in

in

unity

of

each

of

dogma

of

to

Because this violates the management Taylorism has not achieved command, this aspect widespread acceptance industry. The fact remains that functionalism actually greater this nature does exist both industry and government them

in

to

a

is

he is

management. The functional supervisor extent than has been admitted frequently dominating influence management situations even where nominally supposed have only staff relationships with the line. in

many governmental units

is

”

There are others who feel that

the staff specialist

in

the dominant position

Final Authority.” of

is

“The Illusion

of P.

of

on

de

There are persons who would openly recognize this facto situation. One Mary Follett, recognition these who advocated such her essay

p.

D.

of

ff.

13

R.

in

is

p.

of

5,

of

P.

*

p.

of

A

of

*

Taylor's functionalism most succinct explanation contained Thomas Jones, Theories and Types Organization (American Management Assn., New York, 1923), Production Executives Series No. 83, Mary Follett, “The Illusion Final Authority,” Bulletin the Taylor Society Millett, and (December, 1926), Vol. XI, No. 243; Arthur W. Macmahon, John Gladys Ogden, The Administration Federal Work Relief (Public Administration Service Chicago, 1941), 245ff.

PRINCIPLES OF ORGANIZATION

Ch. 5]

81

responsible for the deterioration of the quality of line supervision and for an undesirable dispersion of authority and responsibility.”

Sociology of Organization increasingly evident to students of administration that there is more than structure in organization. Probably it would be more nearly correct to state that the structural aspects of organization consist not only of mechanical framework, but of psychological, sociological, and anthropo

It is becoming

logical elements. Thinking along this line has been largely influenced in recent years by the very creative and realistic scholarship of a group in the Harvard Business School consisting of such persons as Elton Mayo and

F.

J.

Roethlisberger,

who have been influenced by the management studies period made over a of years at the Hawthorne plant of the Western Electric Company. While it is not possible to summarize their findings and opinions in a few sentences, the following observations are probably indicative of the general trends of thought induced by the writings of these men. The sympathies, thoughts, and actions of workers do not spring mainly from the ideology and appeals from management coming from the top down. Man

structure

management has seen

to

which

fit

of

informal organization existing alongside

of

often constitute

an is

its

agement has been largely mistaken in the past decades because it has efficiency. believed that workers can be made to respond to own logic groups Rather the truth that workers have their own informal which the formal place upon the organization be

in

of

to

no

It

by

is

of

chart. The informal organization the workers often neither explicit may nor well understood the workers themselves. the spontaneous largely response indigenous but subconscious leaders who have status the formal supervisorial structure. An almost universal example the

bearing

** F.

2,

*

See Eric A. Nicol's Meeting, October 1940.

on

a of

be

in

no

to

is

is

of

itself. This not ment. The point aware the psychological,

which have

come

of

sources

from tapping the the sentiments and reactions the employee group manage say that formal organization has place rather for those who deal with organization matters sociological,

and anthropological

influences

it.”

speech

given

to

innermost

worker response must

to of

more that the mainspring

is

at

It

by

to

f

a

to

by

is

of

such organization the often tacit and inarticulate agreement piece rate basis. limit production those working on pro among These considerations have been the foremost influences management upon the duce the tremendous emphasis being placed supervisorial process being realized more and the present time. results

Civil Service

Assembly,

Thirty-second Annual

an

of

a

in

T.

J.

J.

Roethlisberger and William Dickson, Management and the Worker (Harvard University Press, Cambridge, 1939), 615 pp.; N. Whitehead, Leadership Free Society (Harvard University Press, Cambridge, 1937), 266 pp.; Elton Mayo, The Human Problems Industrial Civilization (The Macmillan Co., New York, 1933), 194 pp.

ORGANIZATION AND COORDINATION

82

[Ch. 5

SELECTED READINGs Books AND MONOGRAPHS E. H., and Schwenning, A. T. The Science of Production Organization. (John Wiley & Söns, Inc., New York, 1938), pp. 92–123. Brecht, Arnold, and Glaser, Comstock. The Art and Technique of Administration. (Harvard University Press, Cambridge, 1940), 191 pp. Copley, Frank Barkley. Frederick W. Taylor, Father of Scientific Management. (Harper & Bros., New York, 1923), Vol. I, pp. 274–303. Farquhar, Henry H. “Functional Organization,” in Taylor Society, Scientific Man (Harper & Bros., New York, 1929), pp. 136–146. agement in Industry. Glaser, Comstock. Administrative Procedure. (American Council on Public Affairs. Anderson,

Washington, D. C., 1941), pp. 19–36. Graves, Thomas J. “Organization of a Service where More than One Department Is Involved.” Case Reports in Public Administration. (Public Administration Service, Chicago, 1942), No. 68, 6 pp. Greene, Lee S., and Reichle, Leonard. “Span of Control,” Case Reports in Public Administration. (Public Administration Service, Chicago, 1940), No. 4, 3 pp. Harris, Joseph P. “The Future of Administrative Management,” in L. D. White (Ed.), The Future of Government in the United States, Essays in Honor of Charles E. (University of Chicago Press, Chicago, 1942), pp. 164–191. Merriam. Holden, Paul E., Fish, Lounsbury S., and Smith, Hubert L. Top-Management Organization and Control. (Stanford University Press, 1941), 239 pp. Jones, Thomas R. Theories and Types of Organication. (American Management Assn., New York, 1929), Production Executives Series No. 83, 60 pp. Mayo, Elton. The Human Problems of an Industrial Civilization. (The Macmillan Co., New York, 1933), 194 pp. (Harper Mooney, James D., and Reiley, Alan C. The Principles of Organication. & Bros., New York, 1939), 223 pp. Moran, Louis A., and Von Wagenen, R. W. “Relations Between a Department and a Subordinate Agency in Maintaining Fiscal Control, Deviation from the Prin ciple of Unity of Command,” Case Reports in Public Administration. (Public Administration Service, Chicago, 1942), No. 79, 6 pp. Porter, Kirk H. State Administration. (F. S. Crofts & Co., New York, 1938), 450 pp.

Roethlisberger, F. J. Management and Morale. (Harvard University Press, Cam bridge, 1941), 194 pp. Steffens, Joseph Lincoln. The Autobiography of Lincoln Steffens. (Harcourt, Brace & Co., New York, 1931), 884 pp. Taylor, Frederick W. Testimony before Commission on Industrial Relations, April 13, 1914), Final Report and Testimony. (Government Printing Office, Washing ton, D. C., 1916), 64th Cong., 1st sess., Senate Doc. No. 415, pp. 765–810. Temporary National Economic Committee. Investigation of Concentration of Eco nomic Power. (Government Printing Office, Washington, D. C., 1940), Mono graph No. 11, 144 pp. Wallace, Schuyler. Federal Departmentalization. (Columbia University Press, New

York,

1941),

251

pp.

PERIODICALS Brecht,

Arnold. “Smaller Departments.” Vol. 1, pp. 363–373.

Public

Administration

Review

(Summer,

1941),

Brownlow,

Louis. “The Executive Office of the President, a General View.” Public Administration Review (Winter, 1941), Vol. 1, pp. 101–105. Follett, Mary P. “The Illusion of Final Authority.” Bulletin of the Taylor Society (December, 1926), Vol. 11, pp. 243–250.

Ch. 5]

PRINCIPLES OF ORGANIZATION

83

Harry Arthur. “Soundings in the Literature of Management; Fifty Books the Educated Practitioner Should Know.” Advanced Management (September, 1945), Vol. 10, pp. 93–103. James, Charles C. “Principles of Organization and Operation.” Advanced Manage Hopf,

(April-June, 1945), pp. 42–52. Norman M. “Fayolism as the Necessary Complement of Taylorism.” American Political Science Review (February, 1945), Vol. 39, pp. 68–80. ment

Pearson,

-

3.

CHAPTER

6

STAFF AND LINE There is probably no concept in public administration

which has given

more difficulty than the distinction between line and staff. The trouble arises entirely from confusion as to what is meant by “staff.” By line is simply meant those operating officials, and workers, who are in the direct

|

line of command of the scalar ladder. They are the ones who issue orders and those who work at the tasks relating directly to the functional objective. However, there are attached to every step of the hierarchy persons and units which are auxiliary to the chain of command." The line of command branches out to them, but does not go beyond. These services attempt to aid, in one way or another, the people on the line to perform their tasks in the most efficient manner possible. These extended services have been referred to as staff, auxiliary, housekeeping or institutional activities. They

will be discussed immediately below under the general head of staff.

-

H-

RESEARCH)

|

—T-l

COST

ADMIN.

Alſº

CCOUNTING|

PUBLIC

|RELATIONS

HHH H H H Figure

8.

Staff and Line Organization º

It is

common to distinguish between a pure line type of organization and line and staff organization. The former is sometimes erroneously referred to as the military type, presumably because the line of command is not supplemented by auxiliary units of any kind. The terminology

is erroneous

1 James D. Mooney and Alan C. Reiley, The Principles of Organization (Harper & Bros., New York, 1939), p. 35.

84

STAFF AND LINE

Ch. 6]

85

military services originated the staff concept and have utilized it probably to a much greater extent than civil administration. There are, in fact, very few instances of the pure line organization, except in very small units, and probably toward the bottom of the hierarchy in large-scale organization. It should also be noted that the duties of particular individuals are often part staff and part line.” Similarly, some units perform both staff because

and line activities.

Confusion Surrounding Term “Staff” The confusion surrounding the

use

of the term “staff” has arisen very

of an

is

to

to

of

up

at

from the overemphasis upon the advisory nature of staff work. There has been built up the general illusion that staff workers are cloistered, academic, scholarly, and retiring individuals who desks remote from action, they plans the field where devise which are sent the chief for consideration. The theory that the latter ultimately gets around independent decision, and subse read these reports and plans, makes sit

largely

is

It

it

is

quently issues 3rders down the chain command. The difficulty does not incorrect, but rather that arise from the fact that this picture incom plete. impression leaves the that staff services are isolated from action

as

on

of

is

O.

in

of

is

and performance, whereas more often quite the contrary the case. Staff people are certainly the heart the action. This true the general carrying staff which John M. Gaus and Leon Wolcott describe

by

is

of

of

for, and protecting, the Secretary Agriculture.” Urwick has indicated that the same true the military staff people who coordinate and facili tate action for the line commander.” would

be

the difficulty

of

to

of

of

of

frankly recognizing that clarified services, agencies, there are different kinds staff staff and staff persons. All them would seem fall logically and naturally within three broad general staff, classifications: the the auxiliary staff, and the technical staff." An understanding the distinction between the activities performed under Much

will reveal that staff services go much beyond study ing, planning, and advising; they facilitate the actual work management.” working with The staff frequently aids the line but without infringing it,

by

of

these three categories

p.

f.

L.

in

C.

L.

D.

p. 3.

of

gº

*

p.

p.

*

D.

of

a

of as

p.

of

p.

4.

*

5.

*

Edgar W. Smith, Organization and Operating Principles (American Management Assn., York), General Management Series No. 112, John M. Gaus and Leon O. Wolcott, Public Administration and the United States Agriculture (Public Administration Service, Chicago, 1940), Department 289 Urwick, “Organization Technical Problem,” Luther Gulick and Urwick (Eds.), Papers on the Science Administration, Administration (Institute Public New York, 1937), 76. Millett, and Gladys Ogden, The Administration of Arthur W. Macmahon, John Federal Work Relief. (Public Administration Service, Chicago, 1941), 245. Marshall, Organization—a Basic Process Mooney and Reiley, op. cit., 148; in Groups (American University, Washington, C., 1940, mimeo.), Coordination New

ORGANIZATION AND COORDINATION

-86

[Ch. 6

upon the latter's authority and responsibility." There are occasions when a staff person will be exercising specially delegated authority, but when this ity

occurs there should be a very definite understanding,

first, that such

author

by

is

of

be

to

as

the line.”

by

by

of

objective the coordina staff work has for devising activities which are not always the type accomplished

of

tion

genuine control over

its

considerable portion

of

A

these activities when exercised

great deal

of

purchasing, and personnel, does have

a

its

it

so

a

to

it

has been delegated and, second, that has definite limitations. Staff very officers very often have consultative relationship the line which dynamic that may seem intimate and often an operating nature. accounting, The auxiliary staff, which has for work such activities

be

of

in

“trouble shooting,”

up a

the most important staff activities

to

One

is

opposition.

of

be

of

to

in

of

the office and writing them into the form orders issued the line commander. Frequently, the coordination takes the form human winning contacts, which may nature, purpose subtle for the over plans

by

of

by

will ordinarily

This discussion

those taken from the field

of

best tools

be

of

an

a

by

of

a

wherein the line commander sends out trusted staff man clear vexing administrative situation. Problems this nature are solved best anyone armed with club authority, but rather one gifted with not frailties, understanding negotiation, investigation, human who and counsel can bring about understanding among the parties concerned. His applied psychology. be

to

job done

in

be

not exclusively -

-

advisory, teaching, and consultative nature,

it

but also involves inspection. Rarely should definitely delegated from above.”

it

an

largely

of

Staff work

is

is

staff work

a

ever, that administrative cloistered offices.

is

to

of

is

belittle the fundamental advisory and research functions staff units. All good staff work must based upon finding, investigation, point emphasized, fact and research. The how not intended

embrace command unless

potential enemy,

is

what the enemy,

or

undercover investigations

of

is

be

There are staff officers whose principal activities may contact and constantly conducting liaison. Thus the military intelligence division doing.

rºº is

to

as

be

by

is

of

In

civil administration undercover work this nature ordinarily not required; nevertheless, persons who help maintain contact with other or ganizations, businesses, and individuals, are frequently needed the civil going on.” administrator who always must informed what

-

-

of

of

in

of

1,

of

in

in

in

of

p.

6

p.

of

**

to

of

p.

C.

*

7.

7

Elliott Dunlap Smith, The Operating Executive: His the Specialized Departments (American Management Assn., New York, 1929), Production Executives’ Series No. 80, Municipal Public Works (Public Administration Stone, The Management Donald Service, Chicago, 1939), Mooney and Reiley, op. cit., 33. Some the most penetrating thinking this field has been done book reviews Gulick and Urwick's book. See John M. Gaus's review Gulick and Urwick American pp. 132–134, and Leonard Political Science Review (February, 1938), Vol. XXXII, No. D. White's review Academy Gulick and Urwick Annals the American Political and Social Science (May, 1938), Vol. CXCVII, pp. 284-285.

STAFF AND LINE

Ch. 6]

.

87

The General Staff . The most concrete example of what is meant by general staff is furnished by Gaus and Wolcott in their description of the general staff of the Secre tary of Agriculture. It consists of several categories of officials. One of

the categories includes those who are in constant, intimate association with the Secretary in his office, such as Assistant Secretary, Under Secretary, and assistants to the Secretary. Then there are several special advisory aides, such as the special assistant who handles patronage matters. There is an economic advisor, a scientific aide, and a special advisor on personnel. All of them are closely associated with the Secretary. The heads of certain

by

to

its

auxiliary services also function part of the time in a general staff capacity. In this category are the Directors of the Offices of Budget and Finance, Research, Extension, Personnel, Information, and Solicitor. The Bureau of Agricultural Economics is the great central planning agency of the department and proposals are subject review the Agricultural Pro gram Board.” Another special example

of of

the general staff

is

an

of

that

a

of

a

is

the President's Executive presi the White House Office, consisting personnel secretary, and dential secretaries, administrative assistants, Budget, executive clerk. The Bureau the which formerly had nominal

The first unit

Office.

to

of

of

It

is

in

the Treasury Department, the second unit attached directly really the White House. has become the administrative and research and planning unit the federal government. The remainder the White place

II

a

a

as

act filter and important handle the

Presi of

Thus, one

of

in

a

to

funnel enable matters without becoming bogged down detail. appointments dent's secretaries handles his and

to

is

general staff chief executive,

to

department head,

Management.

or

The fundamental purpose

a

Office for Emergency

of

there was

an

its

is

to

contemporary House staff setup flexible and dynamic, adjusting itself events. During the New Deal social reform era the National Resources Planning Board had niche, while for time during World War

an

a

of

to

reputed

on

at

is

late incumbent this refusing appointment while have the happy faculty the same time ingratiating himself with the one who has been denied. The administrative assistants are recent additions recommended by the post

This committee passion also recommended that these assistants should have for anonymity, phrase which has become classic.” Their duties consist conserving the Committee

Administrative Management.

by

a

of

a

President's

to

a

of

handling great many matters which officers time the administrative departments would normally take the President himself. President's

-

p.

Report 5.

D.

ff.

p.

on

** **

Gaus and Wolcott, op. cit., 311 President's Committee Administrative Management, Printing Office, Washington, C., 1937), (Government

with

Special

Studies

88

ORGANIZATION AND COORDINATION

.

[Ch. 6

In other words, this is one function of the general staff—to help minimize the burdens and delays of a large span of control. It is insisted that general staff personnel should be generalists even though some of them are also specialists. They should possess no direct authority and should be self-effacing. A staff man should ordinarily like people and have the ability to handle himself in difficult human situations. He should have the ability to adjust himself quickly to new situations and rapidly to become a part of departmental surroundings. There is another which he should possess, but it is intangible and there fore difficult to describe. It is that quality which sets off the superior per son from the one who is merely satisfactory, referred to by Gaus and Wolcott as a certain “plus.”” special qualification

Auxiliary Staff

It

is this second type

of staff which has caused most of the difficulty

surrounding the use of the term. The two most prominent examples are personnel and finance, which have central units close to the chief adminis trative officer as well as decentralized units in the departments. Because personnel and finance units, whether departmental or central, always exer cise some degree of control over line activities, it has been difficult to recon cile them to the concept of the general staff. The result has been that various

an

as

every department irrespective

Gaus and Wolcott, op. cit.,

p.

** **

of

housekeeping processes which are found their major general purpose.

in

In

a

a

in

of

is

it

of

a

as

if

its

writers have referred to them by terminology which avoids the use of the word “staff.” Thus, W. F. Willoughby uses the term “housekeeping or institutional.” Dr. Leonard White prefers the word “auxiliary.” “ The first edition of this book called the central personnel and finance units “central control agencies.” Of late there has been some tendency to use the term “auxiliary staff.”” We are inclined to favor this term because it com bines the newer concept with the old. There is still a deeply ingrained tra dition of referring to personnel and finance activities as being staff in nature and trying to alter this idea would be akin to swimming upstream. Further more, these auxiliary units and officers do participate in a great deal of general staff work. The entire difficulty could be cleared of intellectual pitfalls “auxiliary” stamps remembered that the word such units having great deal authority coordinating process, using Gulick's concept process being activity which cuts across functional depart ments horizontally.” other words, auxiliary staff activities are those

300.

Chicago,

to

1941),

53.

*

Gulick and Urwick (Eds.), of. cit.,

-

p.

Service,

p.

**

p.

of

of

p.

F.

Willoughby, Principles Public Administration (Johns Hopkins Press, Balti 45; Leonard D. White, Introduction more, 1927), the Study Public Administration (The Macmillan Co., New York, 1939), 42. George A. Graham, Education for Public Administration (Public Administration W.

17.

STAFF AND LINE

Ch. 6]

89

The Special, Functional, or Technical Staff One of the most obscure concepts in public administration is the status of functional specialists who have continual contact with the line. The problem is especially significant in those agencies which have extensive field establishments, whether it be a city public health department, a national NATIONAL FOREST SUPERVISOR

ASSISTANT SUPERWISOR

ADMINIs. TRATIVE ASSIST.

RECREA. TION ASSIST.

FIRE ASSIST -

OTHERs

|

|

|

|

|

|

DISTRICT RANGER

DISTRICT RANGER

DISTRICT RANGER

DISTRICT RANGER

DISTRICT RANGER

DISTRICT RANGER

Figure

Organization of a National Forest, with top row representing the principle of technical staff acting as functional supervisors from headquarters, bottom row shows district rangers as the local area or line commanders. For further illustrations of functional principle applying to the United States Forest Service see Earl W. Loveridge and Peter Keplinger, “Washington-Field Relationships in the Forest Service,” Washington-Field Relationships in the Federal Service (Graduate School, U. S. Department of Agriculture, Washington, D. C., 1942), pp. 23–34. 9.

forest, or a state unemployment compensation commission. universally is existent.

The problem

practically

Because the concept is obscure and intangible, an attempt will be made to illustrate it by direct application to a national forest, which is the field unit of the United States Forest Service. Each national forest is headed by a supervisor

who reports directly to the regional supervisor, who in turn reports directly to the chief forester in Washington. (See Figure 9.) On each of these hierarchical levels one will find various specialists who are not in the direct line of command. Thus, there has been for several years in the Washington office a management specialist. Each of the regional specialists control, training, recreation, offices has in matters such as fire and timber sales.

Each one of the national forests is divided into districts

Each district ranger is the line commander of all activities in his district. He reports directly to the forest supervisor. headed by district rangers.

ORGANIZATION AND COORDINATION

90

[Ch.

6

who aids him in administering the forest. In addition, the national forest supervisor's office also has several technical specialists such as fire assistant and recreation assistant.”

The latter has

an assistant supervisor

in public administration have maintained the theory specialists, represented by the fire assistant and recrea that the functional tion assistant above, are staff officers, the fact remains that they do in fact have a very intimate relationship to the line. These persons usually have While authorities

been selected

in the beginning

of superior qualities both from the They are frequently dynamic and

because

technical and personnel standpoint. aggressive individuals who command immediate confidence in the field. As a result authority seems to gravitate automatically to them when they

Furthermore, the big problem in the operation of field services is the almost universal difficulty of getting line supervisors capable of discharging their duties properly. This problem refers to the position which is similar to that of the district ranger. In public health administra tion the comparable position is that of district health officer. These persons are line commanders of a wide variety of functional specialties carried on in their districts. Much of the difficulty which arises from functional super vision is due to the weaknesses of the line commanders. There is often a are on the line.

considerable gap in the thinking, reactions, and sentiments of the head quarters group and those who are working in the line. The headquarters staff of traveling specialists constitutes a device for instilling the workers out in the field with the ideology and sentiments of progressive thought in the technical fields. This procedure has been referred to as functional super vision.

a

of

of of

set

is

all

The concept of the functional supervisor presents certain difficulties because it is assumed that a supervisor must have the powers However, aspect line commander. this but another the error which in

is

to

is

implies that the staff apart and never participates directly action. very good authority support supervision There the contention that

an

the specialists

make final judgments.”

This idea

is

the decisions made

by

is

P.

of

that final authority always consists who really are the only ones fitted

to of

of

as

of

in

of

to

do

is a

In

respectable staff activity.” other words, the staff often has super visory duties, but supervisory duties not always require that one possess final authority command. management who place great emphasis There are writers the field upon the authority ideas distinct from the line command. Mary Follett even maintains that the authority command illusion and

p.

of

of

5,

P.

* *

of

in

in

P.

17

“Washington-Field Relationships Keplinger, See Earl W. Loveridge and the Forest Service,” Washington-Field Relationships the Federal Service (Graduate School Agriculture, Washington, D. C., 1942), pp. 23–34. Department 256; Mooney and President's Committee on Administrative Management, op. cit., Reiley, op. cit., pp. 35–36. Mary Follett, “The Illusion Final Authority,” Bulletin the Taylor Society (December, 1926), Vol. XI, No. pp. 243–250.

:

STAFF AND LINE

Ch. 6] sometimes referred

to as functional

authority.

91

Another writer refers to

it by using the phrases “lines of informational and advisory “line of delegated authority.””

contact” and

is a

in

of

in

it is

he in

is

by

of

of

as

its

The author of this book is not disposed to make too much of the author ity which staff specialists may exercise over line workers. He believes that the fundamental objective of every organization should be to develop strength and reliance in line supervisors the only safe and constructive long-run policy. However, the author evading the issue not favor supervisor saying the functional that does not exist. There place for the specialist who assists command, but government Taylor's functional foremen who are essentially line probably not that commanders, for Taylorism was essentially line functionalism. The func

be

the line commanders. in-service training,

Such an end can based largely confer on

by a

in

the complete confidence gained good program

of of

is

in

of

a

to

in

government are essentially staff people and should tional supervisors undoubtedly remain so. The adherence such doctrine should not deprive being dynamic, vigorous, and vital functional supervisors their asso Rather, problem they ciations with workers. the that establish themselves

by be

he

to

answerable immediately the latter rather than pro headquarters. This understanding cannot be

their own “cronies” by

to

line command should

at be

in

to

to

is

tional supervisor

If

the func judged philosophy by imbued with the that will his ability build and fortify line supervisors rather than his ability particular activities, understanding outshine them the basis for mutual will have been established. Moreover, the specialists working under the ences which stress management and human relations problems.

Understanding will come only from con spirit ferences which the issues are thrashed out candor. The authority actually delegated amount the functional supervisors will differ from one function another and from one region another. The

of

in

be

to

is

to

dogma, but rather answer this question not found understanding, forbearance, and common courtesy.”

in

to

to

to

a

in

all

merely issuing orders.

of in

duced

mutual

The Fusion

of

Overhead Organization Political and Permanent Staff.-A perplexing problem

be

is

patronage pressures, for

it

there were

no

present even

if

to

its

a

it

a

of

a

how

to

is

in

bring about balance between the permanent political depart civil service staff and the political desires and interests invariably power, ment head. When new administration comes into wants choose own departmental officers. This predisposition would administration

the natural

Organization Management,” Administrative Man “Relation Agriculture, Washington, D. C., 1938), (Graduate School, Department 63. Violet H. Hodgson, Supervision Public Health Nursing (The Commonwealth Fund, New York, 1939), -

ft.

68

p.

**

in

of

p.

to

of

*0 Edgar W. Smith,

agement

ORGANIZATION AND COORDINATION

[Ch. 6

its

92

of go

of

of

on

of

a

in

of

in

desire of a new administration to want those of own ideology the positions which influence policy. On the other hand, the dictates good continuity personnel which will transcend politi administration require cal changes. Furthermore, the process efficient management should irrespective politics. the vicissitudes This raises the question to

how far up the hierarchy the permanent civil service should go, and how far down the hierarchy one should find the political assistants the depart ment head.

The British apparently have solved this problem rather satisfactorily

by

to

of

of

is a

a

be

in

to

in

be

political

of

under secretaries. They may heads political department assistants the heads the larger ones. Below each department the hierarchical structure there will permanent undersecretary, who member the administrative

or or

and Parliamentary minor departments

of

of

of

approximately 50 members the appointment Parliament ministerial posts. Normally about twenty these are members the Cabinet and are department heads. The remainder are ministers without Cabinet status

in

is

as

of

in

no

of of so

of

the permanent civil service. He and his numerous subordinates are part party politics and hold their positions trained men who take long they prove efficient, irrespective power. Most what party class

in sit in

of

to

of

is

to

the permanent undersecretary's attention devoted the processes administration, while matters departmental policy are left the discre tion the department head.” Parliamentary undersecretaries normally a

clear

dif

in

a

has become quite distinct. Unfortunately has not yet been achieved the United States.

and administration ferentiation

be

to

It

a

in

of

of

Commons and may have significant party political duties very connection with the functioning Parliament. seems happy arrangement country where the demarcation between politics the House

Departmental

to

as

In

a

of

Officers.-The American federal government does not homogeneous set officers who act assistants the depart ment heads. the past the secretaries' chief assistants have been almost wholly political appointees and have been designated assistant secretaries. have

Of

of be

to

or

or

is

to

in

of

a

of

late years number under secretaries, administrative assistants, special appeared upon the scene. The use any one and advisors have preference another, however, any differen these titles not due

de

a

or

in

relationships. An undersecretary may may not duties more less important than first assistant secretary. An administrative assistant may have more facto influence upon the secretary than an tiation

versity

1938),

Bennett 111.

Munro, The Governments

of

William

Europe

Arthur W. Macmahon and John D. Millett, Federal Press, New York, 1939), pp. 17–18.

*

York,

p.

**

undersecretary.” (The Macmillan Co.,

Administrators (Columbia

New

Uni -

STAFF AND LINE

Ch. 6]

It

-

93

to be generally agreed that a federal department head should corps have a of assistants close at hand to advise him on matters of policy, and to represent the department in its relations with other departments, with the President, with Congress, and with the general public.” These seems

individuals may be distinctly

“It

be free

political

of operating or managerial responsibilities, and may

Indeed, the President's Committee felt that is of the essence of democratic government that these officers be selected

by the administration

officers.

in office.””

A second category of higher officials needed in the federal government is composed of those who are primarily concerned with management coordi nation. Such a function is undertaken by the general manager referred to below. There is beginning to appear in the federal departments a business manager whose duty it is to supervise a wide variety of housekeeping, fiscal, and custodial problems to the end that operating bureaus may have their energies released to concentrate upon their functional objectives.”

of

Macmahon and Millett envisage in the federal departments the emergence a general-manager type of officer, citing recent examples in Commerce,

Interior, and Treasury where such posts have been held by career civil servants. The status of a general manager is set forth by Macmahon and

Millett:

The

emergence

of general

is not yet sufficiently matured

at the center of departments and stabilized to permit a detailed,

managers

standard account of what the incumbents of these posts do. A few generalizations may be hazarded. The general manager is the channel through which pass all papers destined for signature by the Secretary or by a political Assistant Secretary. He makes certain that required procedures in the consideration of documents have been complied with. He notes and brings up for decision the questions of policy which are presented amid operating routine. In turn he sees that the determinations of the Secretary reach the proper officials. He makes from the department head are abided by. He investigation sees to the of complaints; those that are ticklish he is apt to handle himself. He supervises business operations. But he does more than these things merely. He is the adviser of the Setretary on the operating details of proposed measures and on the possible reper cussions, upon the administrative organization as a whole, that might result from the adoption of a particular policy.” sure that instructions

A third

person of importance close to the department head is the business manager. As is the case with the general manager mentioned above, the business manager is seldom referred to by his distinctive name; more often

* President's Ibid., p.

Committee on Administrative Management, 39. ** Macmahon and Millett, Federal Administrators, p. 3, ** Ibid., p. 26.

**

op. cit., p. 39.

ORGANIZATION AND COORDINATION

94

[Ch. 6

his actual title may be assistant secretary, administrative assistant, or budget officer. There is no uniformity in the actual activities which he supervises, although he practically always has important duties with respect to housekeeping or auxiliary staff activities, which include budgeting, accounting, finance, property control, and sometimes personnel. His duties are certainly not routine in nature because they involve managerial strategy

of the highest order. While he supervises much of the detail which is characteristic of the traditional chief clerk, the business manager decidedly is not a “routineer” of that species.” The business manager of the depart ment has been more appropriately characterized as one who has duties com parable to those of an operating vice-president in a corporation.” As a matter of fact, his position has been established in several of the depart ments in order to overcome the inertia and paralysis of departmental ele phantiasis. This is a disease which the traditional chief clerk aided, abetted, and nursed with jealousy, inertia, obstruction, and ignorance. The new business manager represents a forward attempt to overcome this condition by the injection of progressive management practices.

The question of functional supervision referred to above arises whenever the subject of overhead organization for large departments is discussed. The normal plan under our federal administration has been to divide up each department into blocks of bureaus with an assistant secretary in charge of each block. The critics of this mode of organization allege that instead of facilitating the flow of work, as was planned, the assistant secretaries have actually become “bottlenecks” to effective administration and manage business piles up on the secretaries' desks with the result that the secretaries not only become useless fifth wheels, but operate as obstructive brakes.” It has been pointed out, however, that the difficulty ment.

Important

here arises not from any inherent weakness of the organization plan itself but rather from the fact that the assistant secretaries have been rank ama

They are short-term political appointees who are frequently chosen for other than administrative qualities, such as the ability to work with

teurs.

Congress.

It

seems entirely

possible that these assistant secretaries' desks have become 'bottlenecks” because of the application of those individuals' energies to the desire of politics rather than to the exigencies of depart . mental affairs.”

Functional supervision presents an alternative method of organizing the overhead supervisory activities of the department. Under this system there will be a group of agencies located near the secretary which will super vise and direct the bureaus on a functional basis, rather than as blocks of

* The term “routineer” is taken from ibid., p. 41. * Presley W. Melton, (October, “Administration in Federal XXXIII, 1939),

Political Science Review Vol. *9 Willoughby, op. cit., pp. 119–139. Macmahon and Millett, op. cit., pp. 59–65.

*

a

Bureau,” American Government 5, pp. 835–840.

No.

-

--

-

-

Sº

Figure

-

---

-

-

Division

---

-

in

-

office

of the

from

-------

Top,

and

--

-

---

Rather

Personnel

------

---

---

-----

office

than

-

---

-

Grouping

---

-

-----

-

Bureaus

Office

-------

----

---

-º

-------

Management,

-

-

----

agencies.

PROGRA---

-------

---

--- ---

-Gº Re----------

---

- |--|--|--|--|--|-------

-

---service

SECRETARY OF AGRICULTURE

Departmental-staff

Organization

-

---

-----

---

---

-

---

Supervision

of

Functional

Prepared

-

-

-" -º-

|

of

Represents

-

----

-

---

-

---

---

co-oon-------

ſ

----

---

--------

--

-

-----

-

--

-----------

werart-ent-of-agriculture

uwired states

-----

under

Personnel

---

ru-------

-------------

-

Assistant

--

-

---

--

--- -

-

-

-

Secretaries

-

---

---

. -

--

-

10.

-----

-

------

-

ORGANIZATION AND COORDINATION

96

bureaus under several assistant secretaries.

[Ch. 6

Instead there are a number

of functional units each of which is supervised by functional supervisors who report directly to the department secretary.” For a functional type of departmental supervision

see the chart

of the Department of Agriculture

in Figure 10. The idea of the administrative assistant has been referred to several times above, particularly under the heading of “span of control.” Although there are administrative assistants who are placed in charge of specific operating units, the generic concept of such an office would disclose a sort of roving assignment. An administrative assistant is a person who com bines administrative research ability with an aptitude for quiet, behind-the scenes contacts and negotiations. The President's Committee on Adminis trative Management recommended that several of these positions should be created at the White House to relieve the President of the pressure of business.” These were the persons in connection with whom was coined the phrase “passion for anonymity.” An administrative assistant should have a research background and possess the ability to accomplish his funda mental purpose of relieving his chief of details. If he is adept at mar shalling and organizing facts, he will be able to negotiate agreements with the departments on matters which otherwise might well demand hours of the chief's time. When facts are assembled and properly presented, they very often speak for themselves. the administrative assistant meets the departmental officers with the research approach, an objective attitude, and

If

a personable demeanor, contentiousness and friction can be almost, if not entirely, eliminated. Agreements arrived at with departmental officials can be written up in such a manner as to enable the chief to gain complete understanding within a few minutes and often to make expedient decisions on the spot. Such conservation of an executive's time is absolutely essen

tial in large-scale organization and is the reason why the efficient depart ment head can keep abreast of his responsibilities even though he is respon sible for the activities of tens of thousands of workers. of Authority.—The last few sentences of the preceding paragraph really set forth the secret of the delegation of authority. There are many people in positions of authority who either cannot, or will not, delegate authority. These persons are slaves to detail and apparently lack the ability or the desire to permit anything to be done except under their personal scrutiny. Several bad results flow from a situation of this kind. In the first place, such an executive usually overworks himself, putting in long hours of overtime which eventually result in heart failure or a nervous breakdown. Secondly, because of his persistence in overseeing personally Delegation

pp. 65-88. ** Ibid., President's Committee

º

on Administrative Management,

op. cit., p. 5.

STAFF AND LINE

Ch. 6]

97

that goes through the office or plant, the executive's desk be comes a “bottleneck” and retards the progress of business. In the third place, his unit tends to become a one-man organization. His subordinates everything

of all manner of routine opera tions that their deference to him becomes sycophantic. Instead of becoming strong, virile, and self-reliant individuals, they appear as mere shadows of their chief. The question is frequently asked: “How may one delegate authority? become

so inured to securing his approval

What are some of the techniques?” gate authority one must want to do

The first reply is that in order to dele so, and the reason for failure to delegate However, if the desire to dele very is often a subconscious disinclination. gate exists, the following are some of the possible ways to accomplish that purpose:

:

Train them to carry

of shouldering responsibility.

-

it.

Select subordinates capable Define such responsibility.

or

Establish general policies and disseminate them throughout the •

ganization. 5.

Strive toward maximum

standardization

of both functional

and

on

6.

Carry

perpetual management planning consisting

of

housekeeping procedures.

job analysis,

of

organization

simplifi

Establish internal checks which automatically show danger signals. Assure the flow information up, down, and across the hierarchy.

of

s

cation

study, budget planning, work flow study, and systems and procedures.

SELECTED READINGs BOOKS AND MONOGRAPHS of

L.

of C.

of

&

in

P.

&

E.

A. T.

H., and Schwenning, The Science Production Organization. Sons, Inc., New York, 1938), pp. 124–192. (John Wiley Follett, Mary Henry “Leader and Expert,” Metcalf and Urwick (Eds.), Mary Parker Follett. (Harper Dynamic Administration, The Collected Papers Bros., New York, 1942), pp. 247–269. Gaus, John M., and Wolcott, Leon O. Public Administration and the United States Department Agriculture. (Public Administration Service, Chicago, 1940), pp. Anderson,

275–377.

60 40

D.

of

D.

in

in

in

in

E.

Hodgson, Violet Supervision Public Health Nursing. (The Commonwealth Fund, New York, 1939). Loveridge, Earl W., and Keplinger, Peter. “Washington-Field Relationships the Washington-Ficla Relationships Forest Service,” the Federal Service. (Grad Agriculture, Washington, C., 1942), pp. uate School, Department Macmahon, Arthur W., and Millett, John Federal Administrators (Columbia University Press, New York, 1939), pp. 25–115. Smith, Edgar W. Organization and Operating Principles. (American Management Association, New York, 1930), General Management Series No. 112, pp.

ORGANIZATION AND COORDINATION

98

[Ch. 6

Smith, Edgar W. “Relationship of Organization to Management,” Administrative Management. (Graduate School, Department of Agriculture, Washington, D. C., 1938), pp. 53–66. Smith, Elliott Dunlap. The Operating Erecutive: His Relations to the Specialized Departments. Management Assn., New York, 1929), (American Production Executives' Series No. 80. Stone, Donald C. The Management of Municipal Public Works. (Public Adminis tration Service, Chicago, 1939), 344 pp. Upson, Lent D. A Letter From a Dean of Public Administration to His Graduates About Being an Erecutive, 10 pp.; A Letter From a Dean of Public Administra tion to His Graduates About the “Tools of Administration,” 12 pp. (Both pri vately printed by the author, Detroit, 1941). Urwick, L. The Elements of Administration. (Harper & Bros., New York, 1943), pp. 56–76.

Willoughby, W. F. Principles Baltimore, 1927), 720 pp.

of Public

Administration.

(Johns Hopkins

Press, -

PERIODICALS Benson, George C. S. “Internal Organization.” Administrative Public Adminis tration Review (Autumn, 1941), Vol. I, pp. 472–483. Gaus, John M. Book Review of Gulick and Urwick, Papers on the Science of Administration in American Political Science Review (February, 1938), Vol.

XXXII,

pp.

132–134.

.

.

Norman N. “A General Administrative Staff to the President.” Public Administration Review (Spring, 1944), Vol. 4, pp. 127–147. Pearson, Norman N. “The Budgeting Function of the Department of Agriculture.” Public Administration Review (Winter, 1943), Vol. 3, pp. 24–41. Simon, Herbert A. “Decision-Making Organization.” and Administrative Public Pearson,

Administration Review (Winter, 1944), Vol. 4, pp. 16–30. Symposium. “Administrative Management in the Army Service Forces.” Public Administration Review (Autumn, 1944), Vol. 4, pp. 255–308. Symposium. “The Executive Office of the President: A Symposium.” - Public Ad ministration Review (Winter, 1941), Vol. 1, pp. 101–140.

CHAPTER

7

PROPER USE OF BOARDS AND COMMISSIONS Types of Boards or Commissions board is the depart government. Examples are to be unit of a found all over the United States in such municipal departments as parks, recreation, public health, library, and others. Such a board is usually com

The Administrative Board.—The administrative

ment head for an organization

of around five members appointed by the mayor or governor, for overlapping terms, frequently with the assent of the city council or state all

posed

*

to a

to

it,

of

Such a body is called an administrative board because the powers administer reside with even though substantial authority may have been delegated chief administrative officer. senate.

The Regulative Commission.—The

regulative commissions, while not

by an

of

of

to

in

of

entirely innovations the last few decades, have nevertheless come into widespread use during that period answer the need for some means correcting the economic and social abuses growing out industrial

in

of

to

society, urban life, and the machine age. They are endowed constitu regulate private persons and property tion and statute with authority the interest the general well-being, and are given quasi-judicial and

of

organization

to

Because their

judgment

based

justified.

on

use

thought

Commission. be

of

cretion, the board type overlapping terms

involving the

to of

and the Federal Communications

largely deliberative,

is

work

is

Commission,

be

necessary functions thought achieve that objective. Familiar examples are the state public utilities commissions, industrial acci dent boards, the Interstate Commerce Commission, the Federal Trade to

quasi-legislative

dis

The system

of

a

to

designed

Boards Tied into Hierarchy.—In reorganization

at

to

a

if

more important governmental organ the government continue expand the present

become

of

and seems destined regulative functions ratio.

to

its

in

of

is

continuity policy and inde secure through single action not obtainable individuals placed the departmental hierarchy. The regulative commission has proper place pendence

to

if

to

99

it

schemes was fre quently found advisable, not politic, retain administrative boards, but tie them into the hierarchical administrative structure with reduced

IOO

ORGANIZATION AND COORDINATION

[Ch.

7

powers, usually entirely quasi-judicial and quasi-legislative in nature. In these cases, administration was placed in the hands of an officer located directly in the responsible hierarchy and not responsible to the board. Two

excellent examples of this are the Civil Aeronautics Board in the Depart ment of Commerce and the Social Security Board in the Federal Security

Agency. In the former situation the Civil Aeronautics Administrator is directly responsible to the department Secretary and functions independ

of the Civil Aeronautics Board. The duties of the latter agency con sist largely of prescribing rules and conducting hearings upon appeal from ently

decisions arising under such rules. The functions of the Social Security Board are carried out by the Executive Director, charged with administrative responsibility to the Federal Security Administrator, administrative

while general matters of policy determination reside with the board. This use of a board for quasi-judicial and quasi-legislative matters, administra tion remaining within the hierarchy, is justifiable and many times highly desirable; indeed, it is a most useful means of reducing an excessively large span of control. Reference will be made below in the chapters on administrative law to the recommendation of the President's Committee on Administrative Man agement that the independent regulatory commissions be tied into the hier archy of an existing executive department. Each commission was to be

(1) an administrative section as a bureau in a department; and (2) a judicial section, “in” a department for housekeeping purposes only—to be independent of the department and executive." The proposal divided into:

proved to be so controversial that the chief regulatory agencies were left independent in the Reorganization Act adopted by Congress in 1939, with the exception

of the Civil Aeronautics Board referred to above.”

Permanent Advisory Boards.-A notable trend in public administra tion is the use of advisory agencies relative to the processes of administra tion. As is the case with many other situations requiring definition, the term “advisory” does not have a universally accepted usage when describing boards, commissions, councils, or committees. The ordinary concept of the advisory agency, however, is a group of experts or representatives of the public called in to function, usually on a voluntary basis, as a consulta tive group and to tender advice and recommendations in regard to administrative problems and procedures. Hence, it has often been the practice in council-manager cities for the city manager, in pursuance of his discretion, to appoint temporary advisory boards, composed of citizens, to confer and give advice relative to the activities of specific administrative Management, Report 1 President's Committee on Administrative Printing Office, Washington, D. C., 1937), pp. 36–38. (Government * Act of April 3, 1939, 53 Stat. 561, C. 36.

with Special

Studies

PROPER USE OF BOARDS AND COMMISSIONS

Ch. 7]

IOI

-

t

Through this medium it is felt that administration will receive the benefit of citizen opinion and experience, and that harmony will be

departments.

maintained between administration and the public, a public that otherwise might be critical or even hostile. Some advisory boards are more technical in composition and purpose, bringing to the government for nominal or no compensation the advice, experience, and training of professional, tech nical, and industrial experts who give freely of their time from purely unselfish and patriotic motives. The experience in New York would seem

in or

of

its

to indicate that the proper use of the advisory group and the judicious adaptation of recommendations has had wholesome effect upon certain phases that city's administrative program.” Whether not the advisory

of

of

layman, while serving

these boards, the administrative machinery

take hold and manipulate the consideration and danger which

a to

on

of

a

of

in

every instance depends large part upon board will serve beneficially highly qualified personnel, the promulgation the existence sound objectives, and good leadership. The inevitable endeavor the American

be

it

to

to

of

of of

in

be

in

to

to

to

disparage discourage the use not intended advisory board, suggest the but caution their use until the results further experimentation can recorded. Recent developments apparently many cases where the administra favor their expanded adoption, even is

The foregoing

or

to

in

of

is

It

be

is

levers certainly must not point out many sit overlooked. not difficult uations the past wherein the members boards considered their originally prerogative powers upon assume which were not bestowed them.

of a

on

in

opinion tive board has been abolished. The course the United States has, with few notable exceptions the federal level, been against the permanent advisory boards, although temporary citizen advisory creation

in

specific problem, bring

a

study

in

situations has been

a

to

of

by

in

groups have occasionally been used satisfactorily local jurisdictions. The advisory group procedure usual method followed the these latter report, and then

ad

to

of

of

on a

up

no

in

It

would seem for the most part, therefore, that our advisory nonstatutory and boards have been set hoc basis. This has been true small measure because the fear that they otherwise would become superfluous administrative needs, and that for want some disband.

do, they would meddle inadvisedly with affairs out activity. This perhaps justifies the apprehensions those who believe advisory boards would become political dictators administrative heads. the other hand, the use

of

Great Britain,

on

In

-

of

to

of

of

to

thing constructive side their sphere

the permanent advisory

Investigation,

Advisory Bodies and Public Housing pp. New York, undated),

in

Leo M. Drachsler,

44

ment

of

*

board has been extensive and has met with considerable success

and

ac

New York City (Depart

ORGANIZATION AND COORDINATION

IO2

o

[Ch. 7

t

claim. There the majority of governmental departments are provided with a permanent advisory committee through which expert advice, intradepart mental coordination, and interdepartmental harmony are obtained. Further, it is felt that the public interest is protected against that type of bureauc racy which public administrators frequently decry and awhich invariably accompanies an increase in governmental functions.” Among the very few American counterparts of the British advisory committees are the Federal

Advisory Council of the Federal Reserve System and the National Advisory Committee for Aeronautics.”

If

confined within their proper sphere, the advisory committees could offer an opportunity for the infiltration into the public service of qualified professional, civic, industrial, and commercial leaders without exposing them to the humiliations and indignities of politics. There would thus be made available to governmental jurisdictions that type of person who never would adopt the customary legerdemain of thé political class. The type of person attracted would be the successful technical expert, industrial man ager, financier, or philanthropist—persons who shun the inevitable pub licity and electioneering of political campaigns. People of this type have much to offer administration as distinct from politics, and they are more

than willing to offer a part of their time to their city, state, or nation if they can do so without running for some elective office, and if they can deal with professional administrators instead of spoils' politicians. The project depend, however, quality personnel; mediocrity, entire will on the of so characteristic of board appointments in the past, will but perpetuate the evils of yesterday. Indeed, one might question whether advisory councils are not proper instrumentalities of a rather higher state of development than most communities have yet achieved.

say that there should never

be

not the author's intention

to

is

auditor.

It

as

of

car

of

Ex Officio Boards.-A few years ago it was the widespread practice in many states to create officio boards composed the highest state officers governor, lieutenant-governor, treasurer, secretary state, and such of

car

of

a

on

or

by

of

or

on

car

be

cognizant the officio commissions, but one must, nevertheless, agencies fact that service three four these the chief executive department head will inevitably make serious inroads time needed for executive and departmental matters. Experience has shown that board cutting members often have been appointed officio with the purpose any

in

in

in

of

necessary functions. This down costs arising from the administration shortsighted saving usually resulted, dollars has the long run, wastes

* E

1,

to

A.

•

Perkins, “Permanent Advisory Committees John the British Government De partments,” American Political Science Revicto (February, 1940), Vol. XXXIV, No. pp. SS-96. Pendleton Herring, Public Administration and the Public Interest (McGraw-Hill Book Co., Inc., New York, 1936), pp. 350–351.

PROPER USE OF BOARDS AND COMMISSIONS

Ch. 7]

I03

in administrative efficiency and public service, and has not inoculated admin istration against intermittent

partisan pressures.

It

has been found that the ex officio type of organization constitutes an accumulation of makeshifts, both in personnel and function. Board members are elected without due consideration to their ability or to the requisite technical background involved. The legislature may be at a loss to know what to do with a certain function. It is under pressure to keep down

taxes and prevent the “growth of bureaucracy.”

What could

be

easier than to devolve the bothersome function upon existing officials sit ting as a board? It is quite proper to create ex officio coordination commit tees for advisory purposes only, but many of the functions of these agencies are purely administrative.

As such they could

be articulated much department. better into the framework of an administrative Such was the case of the federal Personnel Classification Board made up of representa tives of the Bureau of the Budget, the Civil Service Commission, and the

Bureau of Efficiency." Good personnel practice labels classification as a function of the personnel agency. Er officio boards are not entirely tabooed, but an excess of them will create the impression that the entire administra tive organization

is a makeshift and haphazardly

put together."

its

The Bipartisan Board.—Bipartisan boards, composed of members belonging to the two leading political parties, are sometimes set up with a view toward eliminating politics. The idea seems to be that if both parties are represented, neither one will be able to accomplish direct political In

on

to

designs, the check thus provided tending subdue partisan interests and place emphasis achieving the best possible administration. local

on

in

in

governments such arrangements are sometimes found civil service com missions and police boards, while the national government both major parties are represented the Civil Service Commission, the Interstate

in

to

Commerce Commission, the Shipping Board, the Federal Trade Commis sion, and the Federal Reserve Board. Bipartisan boards have failed eliminate politics local administration, police commissions constituting

of

at of

by

of

on

a

of

an

politics was actually strengthened, excellent example. There the grip pooling for the result was interests and spoils the representatives having effective administration both parties the board.” Instead

successful

in

to a

heart, they distributed the plums according gentlemen's agreement. On the other hand, the bipartisan commissions have been relatively more federal

Among the reasons advanced for

administration.

to

The Personnel

&

A. §

C.

S.

U.

F.

S.

&

G.

p.

*

in

a

5

Civil

p.

*

Classification Board has been abolished and its functions transferred Service Commission, 47 Stat. 416, 633a (June 30, 1932). MacDonald, American State Government and Adminis For discussion see Austin tration (T. Y. Crowell Co., New York, 1940), pp. 322–323. Bros., New York, 1940), Bruce Smith, Police Systems the United States (Harper pp. 223-225; see MacDonald, op. cit., 322; Henry Hodges, City Management (F. Co., New York, 1939), Crofts 47. the

104

1

ORGANIZATION AND COORDINATION

[Ch.

7

of the national government are not charged with the administration of a specific department; their duties are of a regu latory and research nature. Thus they are confined within limits which restrain them from interfering in administration on a wholesale scale. Furthermore, some feel that the federal service is better protected against this is that the commissions

political pressure through civil service laws and regulations than are most states and cities,” although some observers would question the superiority of the federal personnel system to those of the better states and cities. Is not the prominence of federal appointments, together with the possible scandal to be aroused by a bad choice, more responsible for the success of federal commissions than any question of the nature of their functions?

Partisanship in administration is to be condemned wherever found. Where it insists on creeping in, it is logical to ask whether administration is not erroneously

charged with a task which should be transferred

political branch.

Criticism of Administrative

back to the

Boards

The layman in government

has been disposed to solve an annoying problem by placing administrative it under a board or commission. The professional element in the public service, on the other hand, has become

distrustful of the wholesale use of these plural-headed admin istrative units. The following pages will attempt to lay down principles which will aid in determining whether a given activity should be placed under a board or single head. While certain authorities recognize a distinc tion between a board and a commission, the difference is not essential to increasingly

our discussion.

The terms will

be used here interchangeably

as being

synonymous.

It

is said that boards give an opportunity for administration to secure the advice and services of the best lay competence in the community at little or no cost to the taxpayer. This tends to promote intelligent citizen coopera tion and develop a sense of civic responsibility by enabling wider citizen participation in government. By providing that board terms shall overlap, that the terms of members shall expire at different times, a holdover of

will work toward a continuity of policy at times when political change is in the air. Boards have grown up in welfare and educational activity in response to demands that these activities be freed from the political taint of the general government, and in many instances the disin personnel

clination of city councils to give these agencies what they considered ade quate financial support has led to giving them their own taxing power. It is furthermore maintained that commissions offer an opportunity for repre ° W. F. Willoughby, Principles of Public Administration more, 1927), pp. 123–125.

(Johns Hopkins Press,

Balti

PROPER USE OF BOARDS AND COMMISSIONS

Ch. 7]

105

senting differing phases of opinion in the community, such as nationality and religious groups on a school board. Underneath citizen reliance on boards and commissions has been that intangible and widespread American distrust of one-man authority, the feeling that a group of citizens will be less corruptible and less inclined to be arbitrary and officious than a single head.

of political

of professional administrators have come to realize that board administration in practice has fallen far short of fulfilling these lofty objectives. The most potent cause of this failure is that board organization defies at the outset that fundamental basis of good government—the distinction between politics and administration. Into those departments whose work is almost entirely technical and routine is injected the lay and amateur element in the form of board members. In Great Britain, where administration is supervised Students

and increasing

science

numbers

in

In

to

fit

by committees of the city council, this has caused no great difficulty because hamper the professional through petty inter the layman has not seen ference administrative matters. the United States, however, the to

as

it

his prerogative and duty control routine.” He frequently regards him

it

of

a

of

to

of

of

resents well-intentioned advice the professional qualifications members the technical staff whose and experience are beyond question. This leads demoralization the politically through member, staff fear the minded board and makes

part

this that

on

he

administrative do

so

as

the minute details competent self

to

of

ordinary board appointee regards

is

he

its

that fact.

This

need

It

calculated plotting.

not come simply is

it

or of

of

as

able letting the members become conscious any sinister design about the result

in

a

is,

to

direc

endowed with such keen insight into human nature that board, keep proper sphere without “handle” his that is

tor who

or

an

to

the directing personnel mere errand boys the board. Occasionally, one will find exceptional department manager

by

to

is

a

be

a

the desirable and natural outcome where confident and competent admin willing istrator has board which respects him and led his suggestions. conditions, may tactful Under these board administration

Without denying scattered exceptions, to

be

boards and rather mediocre not actually making board appointments, governers and mayors have been

in

In

inferior.

state that the personnel

cases,

p.

of

B.

Munro, The Government W. American Cities (The Macmillan Co., New 4th ed., 1926), pp. 343, 351–354; Hodges, op. cit., 46. 10

it

or

practice.

on

illusion

quite within the facts would many commissions has been,

if

largely

in

an

to

of

of

to

of

in

work without appreciable friction, but the United States neither board directorship personnel essen nor technical has commanded the quality tial achieve this relationship. Thus, the ideal the highly competent leading citizen giving generously city state, with only nominal compensation, has proved his time his

York,

ORGANIZATION AND COORDINATION

106

[Ch.

7

debts or in securing “safe” indi They viduals who could be controlled. are seldom skilled in the technical background of the function of which the board is in charge. W. F. Wil concerned with either repaying political

was of the opinion that the commission system has worked out much better for national administration than for the states and cities.” loughby

The board system aggravates the disintegration and lack of responsible directorship which is so characteristic of our state and local administration. If anything goes wrong, it is impossible to fix responsibility. Action is slowed down, and proper decisions are delayed or vitiated by compromise.

In many

cases the technical director is made to understand that desired changes are not to be attempted because of the peculiar interest of certain

board members. Subordinates curry favor with commissioners in order to thwart the manager's efforts to improve administration. Plural leadership inaction, dissension, teamwork, makes for lack of and lack of control in

The governor or mayor is unable to maintain the executive con trol over administration which the electorate expects of him, because his political future depends on the proper manipulation of commission per the outset by

to

at

he is

the dictates

of

Even though he may sincerely desire to obey frequently thwarted sound administrative practice, having deal with politically minded boards. sonnel.

of

all

general.

an Administrative

Is

When

Board Justified?

is

of

a in

rise may

of

to

do is

there they

paragraphs perhaps lead the reader wonder whether justification any boards, ever for the use and the answer that have their proper place. Where the administrative activity gives seemingly irreconcilable differences opinion the community, to

The foregoing

to

sit

to

to

commissions should retained and which Angeles, expressed Los the author has the opinion water and power commissioners should retained ownership political issue. The board needed

to as

is

a

is

as

that the board long municipal

which

be

the City

of

abolished

be

discussing

tuated.

of

in In

in

to

it

be

satisfy permit opposing groups desirable on board protect their interests. School boards often answer this purpose the wish communities where racial, religious, and nationality interests are accen

policy matters concerning

at

to

is

be

it

be

a

of

If

of

all

practicable and desirable. This justification for boards possible carried too far, however, for rationalize one's

the mayor would should not

of

the expansion the power facilities around which the controversy centers. the question issue were only the management system, single general manager the water under settle

&

6.

B.

G.

F.

Willoughby,

E.

*1

op. cit., pp. 123–127. See Bruce Smith, op. cit., pp. 224–225, 227–228; Crawford, Public Utility Regulation (Harper Bros., New York, Mosher and Eutsler, Public 1933), pp. 54–66; and G. Lloyd Wilson, James M. Herring, and Roland Utility Regulation (McGraw-Hill Book Co., Inc., New York, 1938), pp. 63–6

W.

Ch. 7]

PROPER USE OF BOARDS AND COMMISSIONS

107

self into a state of mind which recognizes a controversial issue in almost any administrative activity. Boards have occasionally been considered desirable in those administra tive activities where the technology or techniques are not sufficiently set tled to be generally accepted by the lay public. Again the example is the school board, one of the functions of which is to act as a brake on the enthusiasm of professional educators for innovations which the school patrons, whether rightfully or wrongfully, may be unwilling to approve. This interference of the laity perhaps may be justified on the grounds that connected with American family life, yet it is not unthinkable that the educational technique of the future will so win public approval as to eliminate the board entirely. This exceptional justifi cation for a board should not be used to sanction their wholesale introduc

the schools are conspicuously

tion into fields where they are not desirable.

It

is quite generally agreed that boards may be used in those adminis trative activities requiring deliberation and the determination of policy.

This is very closely associated with the justification, above, where there is a seemingly irreconcilable difference of opinion in the community, yet there are many boards which deliberate on matters not the basis of violent community controversy. Such is the case normally with a civil service commission hearing appeals of dismissed employees; the California State

Board of Control in making rules for the settlement of claims against the state; and a school board in deciding whether to build a new school. In these cases the boards are acting

in either a quasi-legislative capacity, mean ing that they are making rules of a combined legislative and administrative nature; or in a quasi-judicial capacity, meaning that they are acting much the same as a court of law in pronouncing a decision in a controversy involving administrative officials themselves, or between them and citizens.” Although practice favors giving such power to a board, there are countless examples of single officials exercising quasi-legislative and quasi-judicial authority with seeming satisfaction to those affected. The opinion is fast becoming universal that board control is ill-fitted for those branches of the service which demand quick decisions and imme diate action, where delay or deliberation would seriously impair the attain ment of effective operation. Fire and police administration fall into this category, as does public health. While the American Public Health Asso ciation still recommends a board of health, and while such a board is found in municipalities, there is a tendency to relieve it of powers in the larger cities.” C. E. McCombs of the administrative commonly

* *

The nature of quasi-legislative and quasi-judicial power is treated in much more detail in a later chapter. Ira. V. Hiscock (Ed.), Community Health Organization (The Commonwealth Fund, New York, 1939), p. 35.

ORGANIZATION AND COORDINATION

Io8

[Ch.

7

National Institute of Public Administration, on the other hand, favors the abolition of the board of health. He cites the Iowa case where the clerk of the board called up the members individually to secure authority to estab a quarantine. The state supreme court later invalidated a quarantine effected under such procedure. Mr. McCombs states that emergencies “are constantly arising in public health service, which if met adequately, must be met immediately. It is well-nigh impossible for a board of health always promptly avail to foresee these emergency situations be

to

or

“At

of

all of

lish

by

of

in of

of

to

able take formal action when emergencies arise.” least two the country's largest and most successful health units are not administered boards health—the City New York and the County Los Angeles.

of

Fifty years ago public health procedure

excellent example.

so

is

health

an

by

Boards are not necessary those fields where technology and procedure have become well developed and accepted the public. The board

to

it

to

in

well developed, and has won such popular approval, that the board can very well eliminated.” Fire departments also have well-settled technology, which the primary reason for their being com

of

a

is

be

is

health technique

so

of

a

of

a

of

was not matter well-settled agreement, was thought advisable meeting community have the best minds the deliberate and devise Today, however, public combating disease. the best-known means

free from politics. The National Board Fire Underwriters requires cities adopt ideas what constitutes the best mode fire fighting and fire prevention, the penalty for failure being higher

of

as

so

do

to

of

to

its

paratively

in

at

to

a

of

a

It

be

accuracy that, insurance rates. can stated with fair degree technology and technique become more highly developed given field, politics tends disappear, and, hence, the need for the board diminishes the same time.

on

all

a

in

be

in

necessary

of

is

those activities which require discipline semimilitary type. Included police, this group, perhaps, would fire, prison administration, highway patrol, and peace officer activity.

The single head

If

of

a

of

in

so

firm, decisive, and unified command. The Here effectiveness depends hesitance, “buck-passing,” and delay frequently present under board control usually results serious impairment morale. the captain a

is

of

2

at

it

is

of

in

of

a

is

police district knows that the chief merely figurehead, and that real power lies police commission, who the hands the chairman the the lodge brother and lifelong friend the captain, not quite possible might considerably that the chief's control that district become under mined

Ibid.,

McCombs,

by

headed

a

discretion, should

be

practically

37

C.

E.

... is

p.

p.

exercise

no

of

Those activities which are almost entirely routine and which involve the single officer.

City Health Administration (The Macmillan Co., New York, 1927),

ff.; Hodges,

op.

cit., pp. 350-351.

PROPER USE OF BOARDS AND COMMISSIONS

Ch. 7]

109

are the office of county recorder, the city clerk, and the cus todian of public grounds and buildings. Here a board would be mere excess baggage, an encumbrance, as it very often proves in practice. Examples

The following recapitulation will crystallize the general principles which may aid in deciding whether a given activity should be under a board or single head:

Board 1.

2.

3.

Single Head

Seemingly irreconcilable difference of community opinion Technology not yet developed point of complete lay acceptance

to

Deliberation necessary a. Policy determination b. Quasi-legislative and quasi-

judicial

1.

Quick

decisions

and

quick action

essential 2. Wéll-developed technology mands lay confidence 3.

Discipline necessary

4.

Almost entirely routine

com

-

Planning Board Business

A

great deal of the difficulty caused by boards penetrating too far into processes the of administration could be obviated by the use of a little strategy on the part of the executive officer. For instance, it has been said that boards handle matters of administrative detail because such material is presented to them. The boards could be kept within their proper sphere if more time were given to preparing the agenda, so that they could be kept

busy on policy matters. If policy questions do not seem to be readily at hand, it would be profitable to use a little executive time and deliberation to devise agenda items which will be challenging to board members and

worthy of utilizing their energies. The executive officer should be in a position to influence the nature of the items which go on the agenda. The experience of successful executives appears to justify the expenditure of considerable time in this direction. against providing

for a board secretary independent of the executive officer. This makes for a Lawmakers cannot

be cautioned

too strongly

can become very demoralizing. It is not at department headed uncommon witness board under which highly qualified executive officer there not only the professional type, but also secretary who answerable directly the board and not

of

a

by a

which

a

is

to

a

is

to

all

dual-headed authority

by

of

a

to

in

as

it

a

to

secretary who has been the executive officer. One may also encounter appointed for reasons which are largely political and personal. This indi vidual frequently regards his mission life maintain basis

performing those with individual board members little personal favors which are well within the law, but which transcend personal relationship

ORGANIZATION AND COORDINATION

IIO

[Ch. 7

the propriety of the situation. The result of this is often a situation in which the secretary is personally closer to the board than is the executive officer, with consequent embarrassment to the latter. Sometimes the finan cial officer also answers directly to the board instead of to the executive officer. It is highly preferable that all of these auxiliary officers report directly to the executive officer instead of to the board. There should be, if possible, a written understanding between the board and the executive officer as to the demarcation between the duties of each.

This agreement is not always

easy to attain, but

will often

be forthcoming

is

the position of the executive officer, who should be fully in charge of matters of administration for which he answerable to the board.

all

if insisted upon by a new executive officer as a condition of accepting the position. Furthermore, statutes and charters, which constitute the basic law of administration, should in all instances endeavor to define clearly

he

of

a

is

he

be

in all

If

be

of

a

It

goes without saying that desirable relationship between board and largely dependent upon the personal capacity executive officer will person the latter. the super-technician type—impatient with laymen—it may contact with that never should have been placed position

the first instance.

on

at

to

in

a

The most successful executive get along with their boards, officers have been those who have been able leading them toward constructive action while the same time making such

is

allowance for individual idiosyncrasies. Laymen who get these boards beings egos. are normal human with normal The wise executive officer

function

as an executive officer under

illy equipped

to

One not endowed with large portions thereof a

nature.

is

a

at

of

one who gives these individuals ample opportunity for self-expression, and the same time guides their efforts toward the accomplishment his major purposes. This requires great patience and keen insight into human board.

on

The Clamor for Boards

of

by

in

to

be

Special interest groups have frequently insisted placing certain activi ties under independent boards order insure that they would directed technically qualified and sympathetic persons instead suffering from

to

to

to

of

political appointment. Moreover, they have the blighting incompetence frequently been able give these boards independent taxing power insure city willing support previously give. financial that councils had not been

to

be

by

in

of

it

in

is

of

Such functions have included schools, libraries, parks, recreation, hospitals, and eleemosynary institutions various kinds. The political situation many American cities and states that such would inadvisable tie general government. Nevertheless, many the schools with the these

be

as

as

of

be

as

single heads and should functions could just well administered rapidly placed under the budgeting control the city just cities and

Ch. 7]

PROPER USE OF BOARDS AND COMMISSIONS

III

Until the housekeeping practice of the general government achieves a level of free dom from political interference at least equal to that now possessed by states are able to make their houses clean enough to receive them.

school, library, and park boards, it is advisable to retain the latter. In many cities this standard of administrative competence has been achieved and the consolidation of independent boards and commissions should proceed.

The social welfare group is particularly apprehensive of the integration movement,” and there is no denying that such apprehensions frequently have been well grounded in experience. Members of this group have seen institutions built up to a high state of efficiency after years of painstaking struggle, only to have this labor wasted at a single stroke by a spoils re moval and a mediocre appointment. Is it any wonder that they immediately clamor for a board independent of political control? The political scientist

is entirely sympathetic with these aspirations. He would, figuratively, spend his last farthing to end political interference in administration. His expe rience with boards has not convinced him, however, that they constitute the proper medium for accomplishing this purpose. This is due to the fact that he has seen the most rampant machine politics control municipal administration through police commissions, finance commissions, and even civil service commissions. Perhaps there is a common ground which can reconcile the pro- and anti-board forces.” The special interest groups will benefit themselves in the long run by joining with generalists to raise the tone of public administration rather than by clamoring for administrative autonomy through boards and inde

pendent tax levies. The way to oppose evil is not by dividing up into groups of kindred souls, each sniping at the dragon separately. There must be a united front which will arouse an enlightened citizenry to demand and secure a merit system for personnel and a high level of over-all adminis trative performance. SELECTED READINGS BOOKS AND MONOGRAPHS Benson, George C. S., and Litchfield, Edward H. The State Administrative (University of Michigan Press, Ann Arbor, 1938), 107 pp. in Michigan.

Board

McDiarmid, E. W. The Library Board and Library Administration. (Ameri can Library Assn. Bulletin, Chicago, March, 1942), pp. 192–195. McDiarmid, E. W., and McDiarmid, John. The Administration of the American Public Library. (American Library Assn., and University of Illinois Press, Ur bana,

1943),

pp. 21–44.

Organication 10 See White House Conference on Child Health and Protection, for the Care of Handicapped Children (The Century Co., New York, 1932), pp. 150–171; recom

mendation 4, p. 170, favors lay board. “Municipal Recreation 17 See Weaver W. Pangborn, Management (September, 1935), Vol. XVII, pp. 272-273.

for the New Leisure,” Public

II2

ORGANIZATION AND COORDINATION

Porter, Kirk H.

State Administration.

3–30.

(F.

[Ch. 7

S. Crofts & Co., New York, 1938), pp.

Short, Lloyd M., and Tiller, Carl W. The Minnesota Commission of Administration (University of Minnesota Press, Minneapolis, 1942), and Finance, 1925–1939. -

160 pp. Stene, Edwin

(University of O. Railroad Commission to Corporation Commission. Kansas, Lawrence, 1945), 108 pp. Advisory Bodies. (George Allen & Vernon, R. V., and Mansergh, N. (Eds.) Unwin, Ltd., London, 1940), 520 pp. PERIODICALS Glaser, Comstock. “Managing Committee Work in a Large Organization.” Public Administration Review (Spring, 1941), Vol. 1, pp. 249–256. Herring, E. Pendleton. “The Political Context of the Tariff Commission.” Political Science Quarterly (September, 1934), Vol. 49, No. 3, pp. 421–440. Monsees, Carl Henry. “Industry Advisory Committees in the War Agencies.” Pub lic Administration Review (Summer, 1943), Vol. 3, pp. 254–262. Pangborn, Weaver W. “Municipal Recreation for the New Leisure.” Public Manage ment (July, 1935), Vol. XVII, p. 191. Editorial comment (same issue), p. 190. “Independent Administrative Boards.” Public Management (September, 1935),

Vol.

17, pp. 272-273.

Rogers, Lindsay. “The Independent Regulatory Commissions.” Quarterly (March, 1937), Vol. 52, No. 1, pp. 1–17. Starr, Joseph R. “The Hatch Act—An Interpretation.” National

(July,

1941),

Vol.

30, pp. 418–425.

Political Science Municipal

Review

CHAPTER

8

THE ORGANIZATION OF BUSINESS ENTERPRISES: THE GOVERNMENT CORPORATION The Nature of the Problem.—The expansion of governmental activity into a wide variety of economic and business activities produces many prob lems. These problems are largely concerned with harmonizing management autonomy with democratic responsibility. It may seem at first sight that paradoxical, these two elements are antithetical and but that is not neces

In the field of private commercial enterprise, flexibility and ini tiative are characteristics essential for success; hence, it becomes necessary sarily

so.

for us to discover and analyze those forces and conditions which foster management flexibility in successful enterprises and to see how they can be utilized in public administration," "

its

of

be

a

of

to

of

to

its

The problem just posed is in many ways another aspect of that outlined in the first chapters of this book; namely, the separation of politics and administration. The simple and theoretically desirable situation would en visage politics as the process by which the legislature would declare that it was desirable for the government to enter a business activity, outline the conduct, and provide the means with which broad framework for begin operations. Thereafter, the actual administration the business group upon management accomplish would devolve the the results flexibility. large degree operating autonomy management under and Responsibility the management group would maintained through

of

on

of

be

to

of

periodic accounting for stewardship the democratic organs control. enterprise The success the would then determined the basis the results actually received.

in

a

It

be

to

acknowledge that there has been would unrealistic not wide spread apprehension that governmental operations may possess certain inherent weaknesses which operate against successful performance this Although representing personal views, field. not his own one writer has

of

an

is

of is

”

grouped these weaknesses under the following five headings: (1) there question typical department organization some whether the and bureau government adequate type organization for business purposes; of

113

of

in

p.

of

*

*

Chicago John McDiarmid, Government Corporations and Federal Funds (University Press, Chicago, 1938), 14. John McDiarmid, “Can Government Be Efficient Business?” Annals the American Academy Political and Social Science (November, 1939), Vol. CCVI, pp. 155–160.

ORGANIZATION AND COORDINATION

II4

[Ch. 8

(2) the omnipresent fear of political interference is thought by many to constitute a brake on business efficiency; (3) the hypothesis of the general inferiority of government personnel acts as a depressive; (4) it has been found desirable to impose housekeeping control of financial administration upon governmental units; and (5) it is claimed that typical governmental fails to produce that type of management flexibility which

administration

is essential to efficient business enterprise. There would be no particular point in entering into a controversy rela tive to the validity of the criticisms just enumerated. Even though he felt that they might be exaggerated, the student of public administration should, nevertheless, take them into account seriously. One does not deny the fact that private business is in the popular imagination thought to be much more efficient than governmental operations. Rather than make a flat denial of this contention, the proper approach might be to make an objective exami nation of those factors which make for effective functioning in large-scale organization whether it be public or private.

The distinguishing

feature of large-scale business organization under capitalism is the corporation and the corporate form of organization. It is undoubtedly the reputation for efficiency achieved by the govern multiplication business corporation which has the use

of

of

of

by

of

a

of

body formed for the pur single person. The essen

this feature

as of

be as is a a

is

to

to

of

a

tial characteristic viduals who act

persons number act corporateness said

of

of

enabling

the century. literature, some

students evidenced the flood the bibliography the end this chapter.

The Corporate Concept.—A corporation pose

since the turn

at

listed

public administration is

in of

is

of

The keen interest which

in

mental corporations

to

led

twentieth-century

several

indi

is

be

to

to

as

It

to

on

to

by

is

as

Thus, the corporation viewed an artificial carry person, which particular authorized law activities and individuals, functions. has certain powers ordinarily appertaining property; sued; right purchase, hold, such the and sell sue and one.

a

to

a

In

by a

in

of

to

or

provide for succession continuity.” forming customary corporation has been The manner secure traditionally government, charter from the which the United States has

and

States have been incorporated

under state law, and that there

the United general no

enmphasized that the great private corporations

is of

of

of

4;

J.

*

Grange, Corporation William Lazo for Officers and Directors (The Ronald Press Co., New York, 1940), pp. 8–9; Richard N. Owens, Business Organization and Combination (Prentice-Hall, Inc., New York, 1934), pp. 108-109; Harvey Pinney, “The Nature the Corporation," Temple, University Law Quarterly (July, 1940), Vol. XIV, No. Harvey Pinney, “The Legal Status Corporations,” Federal Government California Law Review (September, 1939), Vol. XXVII, pp. 712–736.

.

should

be

It

to

of

special meant from the state. former days this charter was granted legislature, practice many years act the but the has been for for some designated state officer grant charters under general incorporation laws.

THE GOVERNMENT CORPORATION

Ch. 8]

II5

federal incorporation law. As a matter of fact, several of the government corporations discussed below were incorporated by officials of the United States under state laws,” a practice prohibited by law in 1945.

The Government Corporation in the United States

of

as as a a

of

on a

largely

a

at

its

in

of

its

While there was federal ownership of bank stocks in the first decade of the nation's history, the first corporation to be wholly owned by the United previous States was the Panama Railroad Company, acquired from governmental owners 1904.” The utilization the corporation major impetus administrative device achieved first result the corporations were formed, first World War, which time number temporary basis, for prosecuting war objectives. These included the United States Shipping Board Emergency Fleet Corporation, the Food Administration Grain Corporation, the War Finance Corporation, and the

United States Housing Corporation." of

government the 1920's the far-reaching agricultural depression created widespread systems farm credit agencies, which have since been largely grouped under the Farm Credit Administration." The depression the brought string corporations, including giant 1930's wake the

In

The two postwar depressions stimulated the birth rate

of

a

its

in

of

of

corporations.

Reconstruction Finance Corporation, the Home Owners' Loan Corpora tion, the Tennessee Valley Authority, the Federal Deposit Insurance Cor poration, the Surplus Commodity Corporation, and many others. in

to

a

of

The second world conflagration and the exigencies sound and strong many national defense program the United States, have given birth to in

in

to

of

of

a

of

variety additional corporate entities which have taken on forms and powers and have extended into innumerable fields activity. Thus, 1940, Congress empowered the Reconstruction Finance Corporation create, with approval the President, new corporations aid the de in

of

pursuance fense program. During 1940 there were created, this author ity, the Rubber Reserve Company, the Metals Reserve Company, the Defense Plant Corporation, the Defense Supplies Corporation, and the Homes Corporation.* say how many governmental proprietary corporations are difficult any one time, but the President's Committee existence Administra on

to

is

*

tive Management listed 93 existing Ruth

G.

Weintraub,

Government

p.

*

* * *

1936.”

Corporations

Press, New York, 1939), pp. 23–24. McDiarmid, Government Corporations Ibid., pp. 24–30. Ibid.,

in

at

in

It

Defense

The Federal Reserve Bulle

and State

and Federal

Law (Columbia

University

Funds, pp. 22, 74–83.

30.

in

Henry Edmiston, and Gunhild Anderson, “United States Government Corporations 1940,” Federal Reserve Bulletin (April, 1941), Vol. XXVII, pp. and Credit Agencies p.

on

*

297-307. Management, Report President's Committee Administrative (Government Printing Office, Washington, D. C., 1937), 305.

with

Special

Studies

ORGANIZATION AND COORDINATION

116

tin prints

[Ch.

8

monthly

balance sheet of assets and liabilities of these and once or twice a year it includes an eight- or ten-page commenting upon their operations.” The General Accounting a

corporations,

recognized

some extent,

to

Types

approximately

within

60 government

auditing jurisdiction

corporations

on

Office

its

summary

June 30,

as coming,

1945.

by

of

a

by

a

be

of

to

of

of

Governmental Corporations.—The ownership, control, field operation, and purpose government proprietary corporations vary widely from nation nation, and even within country itself. This can listing very well illustrated various classifications some promi as

of

in

of

gov nent authors the field. Thus John McDiarmid lists three types ownership and control ernmental corporations upon the basis follows: is

in

is

in

of

is

is

in

A

or

a

. . .

characteristic type Great Britain the public utility trust, nonvoting privately securities, with its owned and its government appointed directors, “trustees.” second variation, found prin cipally Germany and France, the mixed undertaking, which characterized by joint private and public ownership, and over which control, though likewise shared, rests ultimately with the govern ment. Finally, the purest type the corporation completely owned and controlled by the government, and the utilization this instrument the United States has been among the leaders.11

of

the creation pendence, flexibility, and responsibility

as

by

business; third, the ease with which certain statutes corporations the executive; and fourth, inde

of

permit

of

of

an

divorced instrumentality

of

of

consist

in

these activities, the answer would undoubtedly several parts: first, the necessity for quick emergency action from bureau routines; second, the prestige the corporation

ration was used

many

to

If

in

The corporation device has been used extensively for emergency and wel many instances, transcend the commercial and fare purposes, which, explain why the corpo business objectives involved. one were asked

management.

State and Local Corporations as

to

in

Anglo-Saxon countries have been referred Local governmental units traditionally politic “bodies and corporate.”” Thus, the municipal cor of

p.

&

1,

p.

as

31 ;

of

&

J.

**

;

of

a

E.

of

**

1.

a

of

*

corporations_consult Edmiston and Anderson, loc. cit., For recent official list Office, Reference Manual General Accounting Government Corporations (Government Printing Office, Washington, D. C., 1945), 79th Cong., 1st sess., Doc. No. 86, pp. V, VI. McDiarmid, Government Corporations and Federal Funds, For further classifi cations see David Lilienthal and Robert H. Marquis, “The Conduct Business Enter prises by the Federal Government,” reprint from Harvard Law Review (February, 1941), Corporations,” Georgetown Vol. LIV, pp. 545–601 Lowe Watkins, “Federal Ownership Law Journal (January, 1938), Vol. XXVI, pp. 261–287, (March, 1938), pp. 637–665. Dillon, Municipal Corporations (Little, Brown Co., Boston, 5th ed., 1921), Sec. Municipal Corporations Eugene McQuillin, The Law (Callaghan Co., Chicago, 237; Charles W. Tooke, Cases on the Law of 2d ed., revised by Ray Smith, 1940), Municipal Corporations (Commerce Clearing House, Inc., New York, 1931), pp. 106.

THE GOVERNMENT CORPORATION

Ch. 8]

117

poration has for centuries been familiar as the typical method of organiz ing municipal government.” The law has classified the activities of municipal corporations into two categories—one governmental and one

corporate,”

being those which have a business or commercial Reference is made to the municipal corporation at this point for the

aspect.

the latter

purpose of calling attention to the fact that the corporation as a govern mental and administrative instrumentality is not entirely new. Here we are primarily concerned with the governmental proprietary corporation utilized for the avowed purpose of carrying on a business enterprise. One schooled in traditional American political science cannot fail to note certain features of the ad hoc special districts, so familiar in state and

as

to is

of

its

Probably a distin local government, which “smack” of corporateness.” guishing feature of the special district is taxing power. Thus, the Metro politan Water District frequently referred Southern California, which

a

In

of

directors with considerable accounting, financial, and

large degree

of

personnel matters they enjoy can present balance sheet

a

in

of

cost. They have their own separate boards degree independence management.

conduct some business furnishes sewer service, presumed cover the to

the sanitation district when charge for the service which

is

it all

a

a

or

They

corporations.

a

all

as

enterprise, such and they make

of

to

the family

to

at a

is

belong

A

of

to

having corporate characteristics, has the power tax, and exercised special dis that power during the first several years its existence.” usually popular trict voted into existence election. Aside from these differences, however, water district sanitation district seems

autonomy.

They usually on

of

a

assets and liabilities based fiscal self special rely upon Even districts which taxation for support, objectives governmental and whose are distinct from commercial, such mosquito-control district, have many these characteristics. the as a

of

In

as

sufficiency.

in

to

of

is

to

of

A

of

it

of

past, government has been the tendency for students view with alarm the multiplication such governmental units. little later this treatise, however, reference made the possible advantages the cor porate form.

of

in

is

of

it

is

of

A

by

A

notable development the 1930's was the increase utilization financing governmental revenue-bond local units. revenue bond one paid entirely out which the proceeds commercial revenues and not from taxation; hence, does not enjoy the general municipal taxing power &

S.

v.

&

v.

S.

2

of

3d

*

of

of

**

Bºst

59

**

Sons, Emerson Smith, Municipal and Local Government Law (Sir Isaac Pitman 1929), pp. 33–44. Municipal Home Rule (Columbia Uni Joseph D. McGoldrick, Law and Practice versity Press, New York, 1933), pp. 24–25; State er rel. Carpenter City St. Louis, 318 Mo. 870, W. (2d), 713 (1928); Healy Kansas City, 277 Mo. 619, 211 W. (1918); 43 Corpus Juris 179–184. 15 Hodes, Law and the Modern City (The Reilly Lee - Co., Chicago, 1937), pp. 66–71. “The Metropolitan Water District Southern California,” Colorado River Aqueduct ed., 1937), pp. 28–29. (Los Angeles,

H.

Ltd., London,

ORGANIZATION AND COORDINATION

II8

[Ch.

8

The issue of such bonds was stimulated during the depression of the 1930's by the desire of the Reconstruction Finance Corporation and the federal Public Works Administration to extend grants to self-liquidat ing projects. Many localities which needed to create work most urgently found that their limitations on bonded indebtedness allowed no leeway for raising funds immediately in this manner. Thus, laws were passed per mitting the issue of revenue bonds for self-liquidating projects in excess as security.

of the constitutional debt limitations.

Such laws have usually been upheld in the courts. Sometimes these bonds were issued by special districts cre ated especially for the purpose, and sometimes they were issued for projects under the immediate jurisdiction of the general municipal government. The term “authority” came to be applied to such projects, so that it has had a certain acceptance as being distinct from governmental operations However, it is which are self-liquidating and financially self-supporting. probably not safe to regard this use exclusive connotation.

of the word “authority” as being an

Are Government Corporations

Really Corporations?

really are not corpora upon premise tions at all. This observation is based the that the essential characteristic of a corporation is the acting together of persons, a group acting as a single legal personality. Government corporations are said to

It

has been said that governmental

corporations

lack this element of group association; corporation is a corporation by courtesy

hence,

to some, the government

only." Those who take this view

admit, however, that even though the organization

and statutes of some so-called “corporations” are little different from normal governmental de partments, the corporation analogy may be very useful. It serves to mark particular activities as being wholly or dominantly commercial as distinct

As

from governmental.

a result, appropriate

treatment is required in such matters as accounting, finance, and management. It should be interesting to examine some of the characteristics of government corporations to see how they compare with traditional standards of corporateness. Examples its

of similar characteristics might be the charter of incorporation providing powers and for the creation of the corporate body and setting forth duties, and the right greater degree

to

be

to

the

status

liability of

to

limit

of

be

suit.

the private corporation, however, has been might also noted here that the question

of

the case

It

to in

its

is

to

in

to

sue and

a

of

in

to

liable suit. This latter element may government corporation where, the the absence statutory provision the contrary, the corporation liable suit although no such liability had been written into tendency charter.” The apply

the

L.

83

S.

59

F.

R.

v.

&

*

*7

in

John Thurston, Government Proprietary Corporations the English-Speaking Coun tries. (Harvard University Press, Cambridge, 1937), pp. 10, 98–100. C., 306 U.S. 381, Keifer Keifer Ct. 516 Ed. 784 (1939).

THE GOVERNMENT CORPORATION

Ch. 8]

119

government corporation has proved to be a source of conflict in the Supreme Court. Indeed, it would appear from some decisions emanating from our highest tribunal that the judges themselves are in a quandary as to the status applicable to the government corporation.”

A

private corporation

applying

is usually formed by a minimum of three persons to some state official. Federal corporations have

for a charter in four ways, listed below. While some have been born as a result of executive order, it seems necessary to trace corporation origin back to either some general or specific grant of power by Congress. Fed eral corporations had been formed as follows prior to 1945: been formed

1.

Directly by special act of Congress acting

as the national

legisla

ture,

By executive order authorizing the use of the incorporation law of the District of Columbia provided by the Congress acting as the local legislature for the District, 3. By executive order providing for incorporation under the laws of one of the states, 4. By the acquisition by the United States of outstanding stock of an existing private corporation.” 2.

-

While federal-owned corporations often have shares of capital stock, this The Tennessee Valley Authority has no stock and the same is true of the British proprietary government corpora does not seem to be essential.

owned by the government and is voted by the board of directors. In this instance, it may be that the issuing of stock is a nonessential survival from the analogy of private enterprise. The situation is different, of course, where there is some diversified owner

tions.”

The stock is usually entirely

ship of the stock, such as is the case with the mixed enterprises of conti nental Europe. There it has been a fairly widespread practice to set up corporations which have the characteristic of joint private and public

ownership.”

Organization

Problems

A

first principle of organization is that the corporation should adopt the scalar principle or hierarchical form, with administrative authority con verging in a general manager directly responsible to the board. This obser 1°Astoria Marine Iron Works vs. Fleet Corporation, 258 U. S. 549, 42 S. Ct. 386, 66 Ed. 762 (1922); United States v. Walter, 263 U. S. 15, 44 S. Ct. 10, 68 L. Ed. 137 (1923); Skinner & Eddy Corporation v. McCarl, 275 U. S. 1, 48 S. Ct. 12, 72 L. Ed. 131 (1927); Fleet Corporation v. Western Union, 275 U. S. 415, 48 S. Ct. 198, 72 L. Ed. Corporation 345 (1928); Keifer & Keifer v. R. F. C., loc. cit.; Inland Waterways v. Young, 309 U. S. 517, 60 S. Ct. 646, 84 L. Ed. 901 (1940); R. F. C. v. Mcnihan Cor poration, 312 U. S. 81, 61 S. Ct. 485, 85 L. Ed. 595 (1940). Watkins, “Federal Ownership of Corporations,” loc. cit., pp. 261, 276. ** Thurston, op. cit., p. 37. ** McDiarmid, Government Corporations and Federal Funds, p. 1.

L.

*

ORGANIZATION AND COORDINATION

I2O

[Ch. 8

vation is not distinctive of corporations alone, for it applies as well to any government department headed by a board. It is thought worthy of men tion here because during the first few years of the Tennessee Valley Author

ity the three directors divided the activities of the TVA functionally, three ways, giving one part to each director. This was much like the commission form of municipal government so familiar to, and universally condemned

one who has the title

to

general manager. as

istrative officer

of

in

of

is

It

of

cal

by, political scientists. It leads to disunity, administrative feudalism, politi gratifying horse-trading, and lack coordination. note that the Valley Authority lodged powers Tennessee has now the the chief admin

a

of

with some concern.

for bringing about the structural integration

government

Two devices corporations

by

the number

of

corporations

of

in

increase

a

to

a

of

is

It

natural that those who envisage governmental operations functioning through whole, sufficiently small number unified executive departments give the president control, view the workable span

The first was recommended the President's Com mittee Administrative Management” and was carried into effect by subsequent executive orders. provides that these units placed under Many supervisory agencies appropriate government departments.”

Germany

the government holding corporation commercial enterprises. An outstanding

operating divisions

for integrating example

the

facilitate and rationalize these enterprises. own. The holding corporation owned

a

1921

broken

its

in

of to

no

“Viag,” established

It

-

used

public-owned had

the President

in

have had their direct line

is

federal corporations this manner.”

to

in

It

be

on

present themselves.

minority

from

portion

of

annually

a

pays dividends

in

of

its

as

in

of

corporations operates very others. This system much the same manner do private holding companies. Each member corporation has own operating autonomy and board directors and a

merely

in

a

of

of

nationwide series electric plants, aluminum plants, nitrogen plants, foundries, machine factories, two banks, and an auditing firm. The “Viag” majority some, and owned many corporations outright, the stock

the revenue into the Reich the credit

the last quarter p.

the United States

of a

represented

by

integration

in

agencies which have arisen

of

third form in

perhaps,

a

There

is,

treasury.”

4,

§

I,

to

of

I,

of

1,

in

I,

of

in

*

*...*

p.

of

§

C.

*

1,

§

4,

to

to

of

**

of

*

President's Committee on Administrative Management, op. cit., 303. Leading examples how this was done are: Commodity Credit Corporation trans Agriculture (Reorganization Department part 4.10a); Federal Farm ferred Plan Agriculture (Reorganization Mortgage Corporation Department transferred Plan 401); Federal Prison Industries, part Inc., transferred Department Justice 3a); all effective July (Reorganization Plan II, part 1939. Corporation,” Herman Pritchett, “The Paradox the Government Public Admin istration Review (Summer, 1941), Vol. 385. Comparative Administration Arnold Brecht, Three Topics Public Policy (Grad Public Administration, Harvard University, Cambridge, 1941), Vol. II, p. -

Ch. 8]

THE GOVERNMENT CORPORATION

century.

For instance, the Farm Credit Administration is not

I2I a

holding

and yet it does serve to integrate scores of regional banking corporations and literally thousands of cooperative associations and credit corporation,

unions.”

Until

1939 the

Farm Credit Administration liked to regard itself as an

independent agency; but in that year it was transferred to the Department of Agriculture,” a move which may have been requested by Secretary Wallace in order to coordinate farm loan operations with the general eco nomic and social objectives fostered by the Department of Agriculture. Perhaps there was some feeling in the Department that the Farm Credit Administration's loan policy should to a considerable extent disregard purely

economic and fiscal criteria of soundness in the interest

of farm

welfare in general.

Alleged Advantages of the Corporation

Form

The corporation is urged as the organization unit for business enter prises for a variety of reasons, the sum of which stresses a need for man agement autonomy and flexibility. In the first place, it is said that autonomy and flexibility make for managerial initiative, ingenuity, and creativeness. Second, greater freedom from political considerations and control would

A third consideration is exemption from the universally irksome auxiliary staff controls, such as finance and civil service. Fourth, it is result.

alleged

that a government business enterprise should be placed on an equal basis with private corporations as to legal services and the right to sue and be sued.” Each of these allegations will be discussed in detail in the following paragraphs. Bureau organization is alleged to deaden the initiative and creativeness of department officials largely because of the desire to avoid unpleasant altercations. In England ministerial responsibility and the cele brated question hour render the acts of civil servants constantly vulnerable to political inquisition. This may be a fine thing for democracy, but it

political

the much publicized anonymity alleged to be the distinguishing mark of the good civil servant. When the passion for anonymity becomes a device for “neck preservation,” administrative inertia may result. It has fosters

been said that this is one

of the principal reasons for not including the per

sonnel of the new British corporations in the civil service even though the latter has a worldwide reputation for competence and probity. The direct

ing personnel of these corporations may successful

be compared

managers, who possess initiative,

with our concepts of

resourcefulness,

drive,

and

Emmerich, *7 Herbert “Public Administration,” American Political Science Reviert, (December, 1936), Vol. XXX, No. 6, pp. 1117–1133. Reorganization Plan I, part 4, § 401 (April 25, 1939), effective July 1, 1939. Lilienthal and Marquis, “The Conduct of Business Enterprises by the Federal Gov ernment,” loc. cit.

* *

,-

ORGANIZATION AND COORDINATION

I22

[Ch. 8

They are given salaries on a level comparable with those paid for similar services in the private business field.” The claim that the corporation form facilitates freedom from political

courage.

of

is

of

it,

interference springs from the independence and remoteness from both presidential and congressional supervision. All functional pressure groups they desire to have independent and autonomous status. To secure argument politics. advance the freedom from This the crux the no

an

up

to

is

in

of

demand the social welfare people, recreation groups, and library groups municipal administration. denying for independent boards There politi autonomy may group that functional form the basis for resistance

a

exceptional set superior per loyalty very institutional often remarked

had fostered

by

sonnel which

of

an

This organization had attracted an

1939.

is

de

up

of

It

to

inspired, creative, and cal encroachment. often does serve build political competent leadership which neutralizes the deleterious effects manipulations. Such autonomy and resulting leadership build remark esprit corps. example able An the Farm Credit Administration before

It

be

to

It

to to

a

of

in

about those who came contact with the executive staff. was gen erally known that the movement agency Department transfer this the Agriculture was depressive institutional pride. would interest to

tional pride and status.

question

be

would over-all operating arising out func

of

is

is

it

or

actually desirable from superficial consideration

an

An appropriate

independence.

whether such independence standpoint, whether

be a

is

to

in

be

to

be do

securing

a

means

of

to

of

a

to

ing study make determine just how subsequent incorporation into Agriculture may have affected the situation. Functional, the Department special groups integrated and coordinated not like this manner. They want independent, and the corporate form alleged

in

to

is

of

One the major advantages urged for the corporate form freedom regard personnel and finance. from auxiliary staff control, particularly of

this book have pointed out, however, that coordina tion, economy, and general efficiency require centralized auxiliary staff departmental operations. control has also been observed that auxiliary

to

Reed Committee relative

They wanted

selection

the proposals

lawyers

of

of

be

illustrated

of

can

by

This

to

practice.

be

to

to

Those functional units struggling for autonomy desire from what they consider the restrictions traditional

organization liberated

civil service

the lawyers

on

management planning,

be

to

staff control applies such items control, personnel, and finance.

as

It

of

Previous chapters

the

for the federal service.81 civil service re

free these individuals from the traditional

on

&

A.

D.

of

*

99

Unwin, Ltd., London, 1937), Robson, Public Enterprise (George Allen William pp. 359–403. Report President's Committee Civil Scrwice Improvement (Government Printing Office, Washington, C., 1941), pp. 29–55.

THE GOVERNMENT CORPORATION

Ch. 8]

I23

quirements of the written examination and certification. Many of the pro fessional and functional groups rebel at what they consider to be the rigidity of civil service practice which tends to conform all to a uniform pattern and a dead level of mediocrity. Competitive written examinations are often said to produce a personnel which is high in intellect but mediocre in per sonality and judgment. It has been a further contention that the classifica tion system restricts opportunities for paying exceptional salaries to exceptional people. Finally, it may be that the necessity to consult the central civil service agency results in red tape, delays, and excessive centralization

the public, and the same

is

bond issues which have been sold

to

entirely

by

to

its

its

in Washington. The strongest argument for autonomy has been found in the field of finance. Because of the desirability of financial self-sufficiency, it is urged that a government corporation should not secure funds from annual bring appropriations which would tend operations excessively within the political sphere. The great British corporations are financed almost

to

of

want auditing

be

corporations

of

Government

trol, especially the type

to

a

of

of

be

be

by

to

a

In

of

by

of

the Port be

of

proj those instances where ect cannot financed the sale securities the public, freedom from appropriations permanent appropriations, revolv annual can secured ing funds, and initial grants capital funds. The objective should growing out self-sufficiency establish basis financial the corpora tion's own revenues.” true

New York Authority.

free from central accounting

con

which the General Accounting Office

is

is

of

It

imposes upon the regular government bureaus. contended that they type auditing should have the same audit that outside firms impose upon private corporations, wherein emphasis upon operating results, profit

to

to

nullify the very reasons and inflexibility, tending the adoption the corporate form. The Comptroller Gen begun government corpora eral had utilize the business type audit being specifically directed tions prior law 1945.94 on

of

The Corporation Control Act

in

by

so

to

to

to

do of

of

tape,

to

rigidity, red which lead

is

of

to

and loss, assets and inventories.” The traditional governmental audit probes for official honesty and regularity, holding individual officers produce legalistic account for the minutiae transactions. This said

1945

It

to

of

6,

A

to

bring about budgetary and financial supervision measure designed government corporations became law on December and control 1945.” provides that the corporations shall submit annual budgets the Presi

*

of

p.

of

2.

**

p.

McDiarmid, Government Corporations and Federal Funds, 55. Lilienthal and Marquis, loc. cit., 577. Annual Report the Comptroller General the United States, for the fiscal year ending June 30, 1943, pp. 29–32; ibid., 1944, pp. 31–34. Public Law No. 248, 79th Cong., Ch. 557, 1st sess., 1945.

ORGANIZATION AND COORDINATION

I24

[Ch.

8

dent through the Bureau of the Budget, but that they shall be business-type budgets with due allowance given to the need for flexibility, including pro vision for emergencies and contingencies. The budget programs called for by the Act include a complete analysis of financial condition, assets and lia bilities, surpluses and deficits. The President may amend, modify, or revise before submitting the programs to Congress as a part of his annual budget.

They may or may not require annual appropriations ing on the provisions of existing legislation.

by Congress, depend

The Act provides for audit of the accounts of government corporations by the General Accounting Office in accordance with rules laid down by the Comptroller General, but concessions are made to viewpoints that the audit shall be of a commercial variety rather than the traditional governmental

(This issue is discussed elsewhere in this chapter.) The Accounting General Office is to go to the premises of the corporation to make the audit instead of requiring that the papers and books be sent to Washington, a controversy which once waxed warm with TVA. The Comptroller General is required to make a report of such audit prior to the January 15 next following June 30 which ends each fiscal year. fidelity

type.

The Director of the Bureau of the Budget is authorized to bring any corporation within the normal budgetary procedure accorded other govern ment agencies when he considers it to be practicable and within the public interest.

No new corporations can be inaugurated without specific authorization by Congress, thus ending the practice of creating such entities by presiden tial flat, and of incorporating them under the laws of a state or territory. All corporations organized in the latter manner must be dissolved prior to June 30, 1948.

Appraisal:

Leonard D. White's Observations

Leonard D. White has been critical of the claims made in favor of using the corporation form. The substance of his conclusions would indicate that many of the advantages claimed are enjoyed by the bureaus and other offices contained in the executive departments. The internal organization of these departmental units is very frequently similar to the internal organi zation of private corporations. In many instances they do have an actual autonomy which is superior to that appertaining to particular governmental Also, experience shows that the corporate forms offer no corporations. interference. On the other hand, there are numerous examples of departmental bureaus untouched by political blight. Indeed, there are commercial operations which are administered quite satis insurance

against

political

factorily within the departmental structure.

The objections to personnel

THE GOVERNMENT CORPORATION

Ch. 8]

125

control imposed by the civil service do not strike at inherent obstacles. As a matter of fact, procedural changes could make civil service administration conform to the needs of the corporations.

be

of

its

it

in

its

White does not deny that the corporation may have certain advantages, place and that it does have the governmental structure. However, would seem that usefulness arises more from the great prestige cor porate enterprise than from inherent operating characteristics which cannot duplicated within the hierarchical structure.”

Psychological Advantages This psychological advantage may

of

of

it

he

of

be

more than casual importance. average person When the thinks the tremendous industrial activities the United States, visualizes the American businessman and, invariably, may the corporation executive. There are some, then, who contend that

in

to

by

all

of

by

a

call the governmental units which engage business They “corporations.” that, although the name reason the governmental business enterprises do not have the prime characteristics be

good thing

operations

2.

There should

Public responsibility

4.

used

a

for business purposes only.

financial self-sufficiency. be

a

be

representative should obtained through directors, and ultimate control should with them rather

cabinet secretary

or

of

a

board

be

1.

The corporate device should

than

the officers

They should have their own personnel sue,

be

They should

or

service. 5.

govern

under five headings:

3.

ment corporations

to

Dimock recently summarized his views relative

of

Marshall

be

E.

as

to

of

private corporations, nevertheless calling those enterprises such might management autonomy title serve secure for them that fiscal and highly desirable.” which some stress -

the corporation.

systems free

from civil

sued, without exception.*

The Government Corporation and the Future

It

in

a

as

its

of

be

of

by

many critics, the gov the points view expressed appreciated having phenomerial popularity ernment corporation must during governmental picture may and distinction the the last decade. Regardless

E.

*

of

7.

p.

in

*7

of

to

*

Leonard D. White, Introduction the Study Public Administration (The Mac Co., New York, 1939), pp. 124–141. Research the Use the Government Corporation (Committee on Public Adminis tration, Social Science Research Council, New York, 1940), Harper's Magazine (May Dimock, “These Government Corporations,” Marshall 1945), Vol. 190, pp. 569–576. millan

ORGANIZATION AND COORDINATION

126

[Ch.

8

of the government corporation's pur pose, organization, management control, and function are yielding to recent developments found to be more expedient to governmental administration in general. This is admirably illustrated by the incorporation of many former independent agencies within the executive departments. Further, one cannot fail to note the changes which the formerly “autonomous” be true, however, that early concepts

bodies are undergoing. No longer is there freedom from civil service regulations; the Ramspeck Act and the Reed Committee have stimulated the spread of the civil service with its attendant controls. No longer also is there freedom from financial scrutiny. If the government corporation is to continue as such, certain facts must First, there must be more be acknowledged and dealt with accordingly. care in determining activities which are to be incorporated. The tendency

in the past has

nonbusiness enterprise and business enterprise alike with no consideration of the unsuitability of the former to the corporate device. One must, indeed, be wary of making a fetish of been

to incorporate

a good idea.

Second, the status of the government corporation must be fully determined. To date our Supreme Court justices have been unable

to concur in this matter.

It has

been a thorn in the side

of our administra

tive program and will continue to be such unless remedied by cooperative judicial decision. Third, corporations should not be set up to correct abuses which could be remedied as expeditiously by existing agencies. To sustain

policy would be conducive to red tape, lack of coordination, and pos sible duplication of effort, to say nothing of deleterious effects upon the general. Fourth, the exponents morale administration the corpo such

of

in

of

its

a

series

of

adjusted through

a

lem could may

be be

in

of

to

of

in

governmental business enterprises must adjust their principles rate device and programs the increasing trend toward central control staff func tions, particularly personnel the fields and finance. This latter prob procedural changes.”

sphere

of

be

be

by

it

be to

machin

to

any event, the governmental corporation, having been set given administrative device, must function properly within pass beyond the administrative horizon.

Pritchett, op. cit.,

*

our administrative

accomplished would which this might statutory provisions specifically designated accomplish its

or an

as

up

the enactment the purpose.

in

a

One possible way

In of

ery.

integration and proper adjustment in

through

an

in

It

complete ebb that the future will see the use the corpo government. On the other hand, may rate device that the govern ment corporation will grow into greater prominence than ever, before

pp.

381–389.

THE GOVERNMENT CORPORATION

Ch. 8]

127

SELECTED READINGs BOOKS AND MONOGRAPHS Bard, Erwin Wilkie. The Press, 1929), 352 pp.

Bird, Frederick L.

45 pp. Chase, Stuart. pp. 244–247.

Revenue

Port of New York Authority. Bonds.

(Columbia

University

(The Haynes Foundation, Los Angeles, 1941), -

Government in Business.

(The Macmillan

Co., New York,

1935),

-

Citizens National Committee. Government Corporations, The No Man's Land of Federal Finance. (The Committee, Washington, D. C., 1943), 37 pp. Committee on Public Administration. Research in the Use of Government Corpora tion, an Outline of Suggested Research Topics. (Social Science Research Coun cil, New York, 1940), 31 pp. Dimock, Marshall E. Developing America's Waterways, Administration of the (University of Chicago Press, Chicago, 1935), land Waterways Corporation.

In

123 pp.

-

Dimock, Marshall E. Government-Operated Enterprises in the Panama Canal Zone. (University of Chicago Press, Chicago, 1934), 248 pp. Fainsod, Merle, and Gordon, Lincoln. Government and the American Economy. York, Co., Inc., 1941), pp. 657–734. (W. W. Norton & New Finer, Herman. Municipal Trading: A Study in Public Administration. (George Allen & Unwin, Ltd., London, 1941), 431 pp. General Accounting Office. Reference Manual of Government Corporations as of June 30, 1945 (Government Printing Office, Washington, D. C., 1945), 79th Cong., 1st sess., Senate Doc. 86, 526 pp. Gordon, Lincoln. The Public Corporation in Great Britain. (Oxford University Press, New York, 1938), 351 pp. (Harper & Bros., New Lilienthal, David E. TVA—Democracy on the March. York, 1944), 248 pp. McDiarmid, John. Government Corporations and Federal Funds. (University of Chicago Press, Chicago, 1938), 244 pp. O'Brien, Terence H. British Erperiments in Public Ownership and Control. (W. W. Norton & Co., Inc., New York, 1938), 301 pp. Pinney, Harvey F. Federal Government Corporations as Instrumentalities of Govern (Unpublished ment and of Administration. thesis in New York University library, 1937). Pritchett, C. Herman. The Tennessee Valley Authority: A Study in Public Adminis (University of North Carolina Press, Chapel Hill, 1943), 333 pp. tration. Robson, William A. (Ed.). Public Enterprise. (George Allen & Unwin, Ltd., London, 1937), 416 pp. Thurston, John. Corporations in the English Speaking Government Proprietary Countries. (Harvard University Press, Cambridge, 1937), 294 pp. Wickwar, W. Hardy. The Public Services. (Cobden-Sanderson, London, 1938), 243 pp.

-

PERIODICALS Harper's Magazine (May, E. “These Government Corporations.” Vol. 190, pp. 569–576. Edelstein, Mortimer S. “The Authority Plan—Tool of Modern Government.” Cor nell Law Quarterly (January, 1943), pp. 177–191. Emmerich, Herbert. “Public Administration.” The American Political - Science Re view (December, 1936), Vol. 30, No. 6, pp. 1117–1133. Field, Oliver P. “Government Corporations—A Proposal.” Harvard Law Review (March, 1935), Vol. 48, pp. 775–796. Dimock, Marshall 1945),

128

ORGANIZATION AND COORDINATION

[Ch.

8

Lilienthal, David E., and Marquis, Robert H. “The Conduct of Business Enterprises by the Federal Government.” Harvard Law Review (February, 1941), Vol. 54, No. 4, 601 pp. Macmahon, Arthur W., and Dittmar, W. R. “Autonomous Public Enterprise—The German Railways.” Political Science Quarterly (I, December, 1939), Vol. 54, pp. 481–513; (II, March, 1940), Vol. 55, pp. 25–52; (III, June, 1940), Vol. 55, pp. 176–198.

“California Uses the Government Corporation.” American Politi cal Science Review (April, 1940), Vol. 35, pp. 300–306. McDiarmid, John. “Can Government be Efficient in Business?” Annals of the American Academy of Political and Social Science (November, 1939), Vol. 206,

McDiarmid, John.

pp. 155–160.

Mann,

Fritz Karl. “The Government Corporation as a Tool of Foreign Policy.” Public Administration Review (Summer, 1943), Vol. 3, pp. 194–204. Pinney, H. F. “Nature of Government Corporations.” Tulane Law Review (De cember, 1940), Vol. 15, pp. 51–74. Unsigned. Brooklyn Law Review (De “The Reconstruction Finance Corporation.” cember, 1938), Vol. 8, pp. 158–187. Watkins, Lowe. “Federal Ownership of Corporations.” The Georgetown Law Journal (January, 1938), Vol. 26, pp. 261–287; (March, 1938), pp. 637–665.

CHAPTER

9

RELATION BETWEEN LEVELS OF ADMINISTRATION One of the most perplexing

problems of administration

is the proper

by

is

its

relationship between administrative levels, or units which enjoy a certain degree of autonomy. Thus, the United States Public Health Service exer cises no legal authority over state health departments, yet influence

of

of

of by

a

of

a

to

be

them.

A

city health department may enjoy great deal autonomy subject supervision and home rule and still certain degree the state Department Health. During the economic emergency the

felt

very close relationship

cities and consumers' cooperatives.

The basic issue

of

to

is

it of

to

to

a

the field

of

of

cities was built

in

up

between the federal authorities and the public works and emergency relief. The Valley Authority brought Tennessee has new type federal administra tion very close state and local government and the cultural interests actually producing electric power and selling the people.” Uncle Sam a

1930's

of

by

in

of

a

of

in

of

American politics has always been that centraliza tion versus decentralization. This issue was controlling the controversy over federalism versus states’ rights Hamilton versus Jefferson and industrialism versus agrarianism. The constitutional basis for strong fed eral government was laid the Supreme Court decisions John Marshall; but while Marshall could say that the United States could go into the politi banking business, Jefferson and Jackson could curtail that power

in

of

of

to

rechartering the United States cal methods. Their active opposition Bank, and the attendant transfer and deposit funds into various state banks, resulted banking operations. cessation federal Thus there was

in

to

(July

2,

301

129

1862).

March (Harper

&

on the

was largely political Bros.,

in

a

to

up

§

A.

C.

S.

U.

7

12

decentralization

Lillienthal, TVA—Democracy

151. Stat. 503,

*

or

is

centralization

E.

of

º

question

to

at

a

It of

strong political resistance federal centralization favor states' rights which lasted least until the War Between the States. seems not insignificant that the original Morrill Act,” which constituted the first considerable grant-in-aid the states, was enacted during Lincoln's admin point period thereafter, the istration. The that that time, and for nature.

1944),

pp.

ORGANIZATION AND COORDINATION

130

[Ch. 9

The federal administrative departments were not reaching their tentacles of supervision and control down into the administrative activities of states, counties, and cities, nor were state administrative agencies actively exercis ing power and influence over the units of local government. Such centrali zation as did exist in this latter area was political - and legislative in nature,

without benefit of state administration.

The twentieth century has witnessed a definite change in character in the field of state-federal and state-local relationships. Whereas they were for merly political or legislative, the tendency in recent years is for them to become administrative in nature. For example, federal administrative de are coming to have more and more authority over state and local administration by developing the system of grants-in-aid. On the state level the central government has no more constitutional power over its

partments

to

of

a

or

is

to

a

of

exercising the local agencies than before, but it has varied manner Formerly power. legislature passed this the state law and assumed that local administrators would obey; now the tendency entrust some super department departments state administrative certain amount

administration.

for centralization

The forces making

of of

certain types

in

of

and equalization

of

a

visory authority over local government. This trend results naturally from the new social legislation and from demand for geographical uniformity the field

social legislation political thought as

be

to

it

if

in

to

have been strong enough practically reverse schools Thus, years. recent the New Dealers are classified Jeffer sonians, they are also “centralizers”; for was during the early New Deal be

a

a

of

a

control

to

on

of

all

state.

leg

distinction between integration and gathering single per means into the hands given unit—a city, the administrative authority for Centralization, the other hand, has do with the ex

Integration

state

social

over local administration.

Centralization

to is

tension

a

county,

of or

or

centralization. body son

matters

a

Political science terminology makes

of

the good old days when the states were supreme islation.*

in

to

as

if

to

to

of

grants-in-aid era that the social security system the states, was By the same token, enacted.” the anti-New Dealers are classified Hamiltonians, they must find themselves looking nostalgically back

the

1938), pp. 422–436. For background

&

J.

or

of

policies and procedures For the effect federal grants-in-aid state administrative Henry Bitterman, State and Federal Grants-in-Aid (Metzer, Buch Co., New York,

* see

or

of

a

of

as

of

generally understood. Integration refers antithesis home rule but single level government. Centralization commonly deals with the rela tionship between two levels government: nation and state, state and

R.

of

to

G.

of

of

of

A

*

Lewis, study political thought see Edward this reversal History American Political Thought from the Civil War the World War (The Gettell, History Macmillan Co., New York, 1937), Ch. XI: Raymond Amcrican Political Thought (The Century Co., New York, 1928), pp. 397–411.

LEVELS OF ADMINISTRATION

Ch. 9]

131

Integration can exist without centralization, and the reverse is also true." This chapter will endeavor to treat the relationships between upper and lower levels of administration, chiefly the relations of the state to the local.”

city and county.

Federalism

A

its

federal relationship exists when the powers of government are divided between a central government and local area. Each is prevented by a funda

or

all

is

to

of

to

of

mental law, which neither can change of own accord, from encroaching Thus, upon the sphere assigned the other. the relation the 48 common wealths the national government under the Constitution the United government States federal. The central has certain enumerated powers

state cannot levy

is

the state home rule,

a

a

and county

the city having constitutional or

The relation

Amendment,

to a

the Eighteenth

of

imports.

to

be

adoption

of

to

to

to

in

in

other powers not denied them the Constitution general en the national government. Neither can Thus, upon sphere granted government croach the the other. the national was presumed unable enact national prohibition law until the

and the states have given exclusively

tax on

ordinarily not in

to

federal grants-in-aid

estab

demonstrated

in a

will

be

local areas can be

of

in

by

administrative control strict federal arrangements, to

the states. the above definition, however, another very important aspect centralization, namely, the degree centralization decentraliza administration, but upon tion which may exist between two levels

D.

L.

*

White, Introduction New York, 1926), pp. 55–59.

the Study

or

of a

in

of

separate administrative to

a

relationships

is

C.

of

in

or

seen most clearly

in

the operation regard the federal government the working relationship between the Washington, regional field offices and the central departmental office varying degrees authority autonomy granted D. The and these

This

to is

government. in

single level

of

of

of

of

Contrary

is

later section

of

In

a

if

of

spite

the legislature, and the latter has tried control regulations minute contained elaborate stat

of

system

to on

lished

in

That

utes.”

a

the creature corporations

of

of

is

the city municipal

a

In

those states situation ap federalism may arise the courts adopt liberal attitude con struing cases involving the boundary between what are local affairs and general state interest." those most our American states, however, federal. proaching

problem and has been reserved

Public Administration (The Macmillan Co., as

of

B.

*

to

as

L.

of

1,

* I

.

tiºn W.,.

of

°

Note the characterization French administration “Centralization Minus Integra Sharp, The French Civil Service (The Macmillan Co., New York, 1931), p. McBain, The Law and Practice Municipal Home Rule (Columbia University H. Press, New York, 1916), Ch. IV, entitled “The Federal Idea Applied Relations Be tween the City and the State,” pp. 109–117. Munro, The Government W. American Cities (The Macmillan Co., New York. 1926), Ch. IV. pp. 71–91.

As such,

be

for the following chapter.

[Ch.

9

132

ORGANIZATION AND COORDINATION

of

is it

or

of at

of

of

confused with the subject matter this chapter which concerned with the degree cen affecting government are, nominally, tralization two levels which least constitutionally legally autonomous and independent each other. should not

Relationships.--Most

of

of

of

In

of

of

of

the administrative contacts be tween departments the federal government and those the states come through grants-in-aid. about the administration federal the middle presenting the states with the last century such grants took the form

Federal-State

to

to

is

in

of

or

to

of

equalize standards services between the wealthier and the country. The difficulty with this contention that equalization practice largely such has not been realized because the states needy are required match each federal dollar which they receive. Thus, a

in

fourteen dollars

receive three dollars per month Massachusetts.” The truth probably

Arkansas and that the extent, by

aged person might

is in

or

to

in

is

of

that they tend poorer sections

of

on

ing grants-in-aid.

uniformity purpose govern basic philosophy Probably the most prevalent argument their favor no

seems

be

There

to

War II.9

for many years and have tended quadrupled the decade prior World cash

in

ment have taken the form multiply, having practically

of

as

to

of

is

to

why state agricultural public lands within their boundaries. That title colleges which received subsidies under the Morrill Act 1862 are re land-grant colleges. Subsidies ferred the part the federal govern

of

pres character, and basis granting federal aid has been determined intensifying groups upon raising sure intent the standard and the adminis

in

to

of

to

of

of

their particular functional interest. Thus, educational authorities years tap the federal treasury for hundreds have for been attempting equalize educational opportunity millions dollars the United

tration

-

expenditure.

in

preserved

by

that state and local autonomy

be

at

of

States.” The educators have wanted federal subsidy for the poorer sections any federal control, desiring the country; but they have always balked

Advance

super

organization

approval

of

Alteration

of

3. 2. 1.

The means which federal departments exercise administrative vision can be classified somewhat as follows: within the state state plans and budgets

Federal inspection and field service

p.

p.

S.

C.

ft.

19

I

of

of

&

of

**

P.

p.

on

S.

U.

*

of

3,

°

º:

to

F.

Macdonald, “Federal Aid Austin the States: 1940 Model,” The American Politi cal Science Review (June, 1940), Vol. XXXIV, No. 490. Advisory Committee Education, Floyd Reeves, Director (Gov See Report Printing Office, Washington, D. C., 1938), and Tables and II, pp. 25–226. Harris, “The Future Joseph Federal Grants-in-Aid,” Annals the American Academy Benson, Political and Social Science (January, 1940), pp. 14–26; George Rinehart, Inc., New York, 1941), pp. 74–75; Macdonald, The New Centralization (Farrar op. cit., 498.

Ch.

LEVELS OF ADMINISTRATION

9]

I33

The audit

4.

The threat of withdrawal of federal cooperation 6. Establishment of state personnel standards "* 5.

The most significant observation here would

seem to be that the federal agencies administrative have been reluctant to use coercive power over the states even when the law permitted them to do so. The pressure has been on Congress to refrain from imposing upon the states any far-reaching

degree of federal supervision.

depart

The result is that the administrative

ments have been reluctant to take any action which might “smack” of coer cion. Thus, actual aid has been tempered by a conciliatory approach designed to bring about voluntary cooperation. This is not to say that federal efforts have been halfhearted and lackadaisical; on the contrary, the ameliorative, advisory, and educational nature of the relationship has often paved the way for genuine cooperation. º

In the field of organization

the federal government has on occasion accomplish found it difficult to the purposes of specific grants-in-aid because the internal organization of the state acted as a barrier. Sometimes state laws have had to be amended in order to meet federal standards, such as

giving power to a

by

a

be

by a

department rather than to counties. There are also instances where federal authorities require integration as well as centralization; that particular function performed single that

of

in

A

of

of

state agency rather than the overlapping activities several.” striking example personnel most federal influence the field

is

is,

state highway

by

to

up a

a

of

“

found under the Social Security Act. Whereas only about half the states possess regular civil service setup, every state, irrespective size and location, has been required system set merit for the activities sub sidized the Social Security Board and the United States Employment

This requirement has

been extended down into the counties,

up

Service.

which

set

of

to

merit systems that are under the super vision both the state and federal agencies.” Federal inspection and field services have demonstrated their large poten have also been required

to

in

of

tialities the administration the older federal grants.” To insure neces sary goodwill and cooperation and avoid any distasteful connotations,

of

to

is

It

of

in

of

to

of

in

of

of

in

of

of

**

*

f.

p.

a

** **

in

of

to

of

p.

Benson,

of

**

82; V. O. Key, Jr., The Administration op. cit., Federal Grants (Public Administration Service, Chicago, 1937), pp. 369-375; Jane Perry Clark, The Rise New Federalism (Columbia University Press, New York, 1938), 186 Clark, op. cit., pp. 191–195. By December, 1941, three other states had approved civil service systems and were installing them. striking the process note that the nineteen statewide merit systems, ten have been adopted since early 1937. (Information from letter from Civil Service Assembly United States and Canada, Chicago.) On the problems involved the extension merit systems counties see Ruth Fitzsimmons, “Preparation and Direction Washington Case-Work Personnel—the Training Program,” Proceedings the National Conference Social Work, 1938 (University Chicago Press, Chicago, 1938), pp. 196–207, and William Haber, “Problems Proceedings, 1937, pp. 445-451. State Administration,” See Key, op. cit., pp. 85–108. States

ORGANIZATION AND COORDINATION

I34

[Ch. 9

care has been taken to eliminate the word “inspector.” The same functions are performed, but by federal “consultants,” “highway engineers,” and the like. Inspection has usually not been carried out in the “snooping” spirit but rather with the intention of rendering advice and technical help. The give and take of conferences, field visits, and consultation result in fruitful exchange of information and serve to introduce professional and technical influences. When competent persons make suggestions and conduct periodic inspections, there is an effective, though intangible, raising of services to a higher level. The audit tends to accomplish the same purpose, although the complaint has been made that in practice it partakes too much of the detailed fiscal examination of accounts, whereas it would be much more desirable to have a comprehensive administrative audit.” It has been suggested that this latter type of audit be performed at somewhat longer intervals and be broadened to include an examination as to the adequacy

of the functions performed and the efficiency with which funds are ex pended.” In other words, the audit should provide a complete evaluation of administrative operations in addition to the usual financial check. The threat of the withdrawal of federal funds, while rarely used, has undoubtedly served as an effective moral sanction. The few cases in which it has had to be invoked were characterized by gross political manipulation and inept management of almost scandalous proportions.

V. O. Key:

In the words of

The power is of little avail in the correction of the weaknesses an unimaginative, half-hearted, self-satisfied, incompetent state agency which commits no spectacular offenses and exhibits a modicum of activity.19 . . .

of

Moreover, federal administrators must always reckon with the possible effect upon Congress of a withdrawal of funds, for such action invariably sets a great variety of political cross-currents in motion. However, there seems little doubt but what the very existence of the power to withdraw federal cooperation constitutes an effective force to induce state cooperation with federal authorities. Furthermore, it facilitates the work of constructive movements, and influences within the state itself, for they can bring pressure upon federal officers and support them in their threat of withdrawal. groups,

Federal Grants to Local Government.—The

1930's witnessed a

devel

opment new to the American experience, at least in regard to its magnitude. This was a series of administrative relationships wherein federal authori 37 ſpid., p.

37:.

** Wylie Kilpatrick, State Supervision ice, Chicago, 1941), pp. 13–17. ** Key, op. cit., p. 174. .

of Local

Finance

(Public Administration Serv

LEVELS OF ADMINISTRATION

Ch. 9]

I35

ties contacted local governments directly without going through the state level.” In other words, state administrative agencies were short-circuited.

This does not mean, of course, that

the states were entirely ignored, because counties, districts, municipalities the school and are creatures of state law and their relationships with the federal government had to be based either

Practically

all of

upon the state constitution or laws passed by the state legislature. Hence, the distinction should be very clear that, while state administration was circumvented, state legislation and legal authority were not.

in

A

to

the direct federal-local situations had do with unem ployment and emergency relief. beginning was made under the Hoover administration 1932 with the Federal Emergency Relief and Recon the Reconstruction Finance Corporation municipalities public make loans states and for works unemployment relief. 1933 the National Industrial Recovery Act authorized loans with accompanying direct grants municipalities for self-liquidating public

Act which authorized to

45

an

Act

of

an

This was continued per cent federal gift

works.

of by

to

In

to

struction

1935 which authorized

outright

of

by

of

on

be

55

of

the costs the project and provided that per cent remainder might the financed federal loans. The policy municipal projects direct federal work relief was started with the

by

on

in

to

1933, and from 1935 Civil Works Administration its discontinuation Progress was carried the Works Administration (later called Work Projects Administration). The Tennessee Valley Authority deals directly

Authority deals directly with municipalities.

The Federal Bureau

of

of

in

of

power and also has with local governments and cooperatives the sale many other types relationships with them. The United States Housing

Inves to

a

in

maintain regional schools.” techniques and controls exer the work relief projects are interest

of

federal authorities

the Public Works Administration remitting the cash installments the work progressed. This system traditionally no more nor less than the effect between build ing contractor and the one who has engaged him. Inspectors were constantly

Projects Administration

the

projects

make

of

to

a

the case were planned and by

to

Work

refusal

In

on

the job, and unless progress was satisfactory the threat future advances tended insure good performance.

of

is

in

as

in

was that

of

here.” The chief control exercised

by

cised

in

instructors into the local areas they Because are new, the administrative

to

its

sends

by

it

of

It

in

to

tigation extends fingerprinting and identification service directly local Washington police academy law-enforcement units. also maintains which are sent representatives local police departments, and addition

the

per

n.

p.

by

ft.

p.

of

op

an

*

in

**

p.

J.

*

Kerwin Williams, Grants-in-Aid under the Public Works Administration University Press, New York, 1939), 49 f., 272 M. H. Satterfield and Hugh W. Urban, Municipal Government and Administration (Mississippi State Planning Commission, January, 1940), pp. 55–61. Mississippi For extended discussion the enforcement procedures used the Public Works Administration, cit., see Williams, 200 See (Columbia

ORGANIZATION AND COORDINATION

136

º

[Ch.

9

-

under the direct operation and management of the local govern ment. However, the payment of workers was actually disbursed by federal authorities, who had also given preliminary approval to a rather detailed plan of the project. The WPA also maintained field consultation and field formed

its

its

supervision as well as a training and rehabilitation program. The federal government met the payroll for the relief labor and own administrative

juris

its

of

of

staff, but the local government paid own supervisors. The local paid diction also the costs materials out own budget.”

by

as a

a

to

of

or

of

provide

by

the increased school, fire, health, and sanitary tripling doubling services occasioned the the population near factories and military installations. There was organized President's Congested coordinating Committee for Production Areas which acted to

expected

all

in

be

to

of

II

the direct contact between federal and local gov multiplied provide expanded com ernment was because the necessity munity facilities war-congested areas. Local government could not

During World War

in

of

of

to

study the problems and secure action unit the appropriate agency. grants arranged schools, Federal and loans were for the construction hospitals, and sewers; and support was rendered the form both

for such services

Local Administration

Local Government.—Units

of

of

disease control, child care centers,

of

The Legal Status

of

State Supervision

as

finance and personnel and social welfare.”

local government from which they

in

as

as

as

in

is

a

to

of

by

are the creatures their respective state legislatures, receive life, power, and status. The courts have for the most part held meant, essence, that they them rule strict construction, which can perform only those activities which are set forth specifically the stat corpora regarded full-fledged municipal utes.” While cities have been

state

constitutions

have sought

to

to

in

Home rule amendments

to of

to

ipalities.”

of

be

to

in

tions, they have legislative control fact been much subject counties, school districts, and other special districts. There may some exceptions this broad generalization the case those seventeen states which have given varying measures constitutional home rule munic

I,

&

239,

as

2d

by

F.

ff,

&

of

of

p.

I,

of

of

*

5,

in

**

in

5,

in

I. J.

**

A.

Williams, “New Techniques Kerwin Williams and Edward Federal Aid,” pp. 947–954. The American Political Science Review (October, 1940), Vol. XXXIV, No. 1944,” The Municipal M. Labovitz and John W. Field, “Federal-City Relations Assn., Chicago, 1945), pp. 129–133; Year Book, 1945 (International City Managers' Corrington Gill, “Federal-State-City Cooperation Congested Production Areas,” Public pp. 28–33. Administration Revicto (Winter, 1945), Vol. municipal powers For rules construction the courts see Eugene McQuillin, Municipal Corporations (Callaghan Co., Chicago, ed., The Law revised by Ray Smith, 1940), Vol. Dillon, Commentaries on the Law Sec., 368, 1017 and John Municipal Corporations (Little, Brown Co., Boston, 5th ed., 1911), Vol. Secs. 237–

to

so

by

-

he

to

p.

**

448–455. d'É. Benson, op. cit., 117. The author (Pfiffner) has been challenged by attorneys for municipalities under the general law demonstrate where chartered cities have any more power than the former, and has been somewhat chagrined his inability demon Strate.

Ch.

LEVELS OF ADMINISTRATION

9]

recognize two types

of power to

-37

be exercised by municipalities:

of

in

to is

its

that which significance and consequences, and that which purely is statewide in local its application and effect. Cities have been empowered frame govern charters, city's their own which makes each individual form

to a

to

of

In

its

a

as

by

centralization.

In

of

a

it

to

in

to

the governor. other words, was form dominantly political centralization which was nature. This era also con formed the period when special legislation was rampant. Legislatures to

local offices subject

to

ferred police departments

epidemic the state politicians, there was type was the centralization which trans state jurisdiction and made the appointment

of

However,

it of

of

attracted the covetous eyes

an

to

a

a

at

or

by

is

by

in

on

to

its

is

of

is

custom-made.

a

growing feeling that this There namely, the chief contribution home rule: the right each city build own unique structural pattern rather than conform stand uniformly pattern clamped ard all cities class. case the munici pality does not abide by the law governing its operations, the remedy ordi narily not intervention some state administrative authority, but rather intervention some local agency such the grand jury, district attorney, taxpayer.” suit law grow and the revenues and political patronage began When the cities ment and organization

of

of

an to

in

to

an

in

municipal

affairs. Cities were given the option powers which might contain statements

framing their own

of

charters,

of

of in

of

a

of

particular phases enacted statute after statute which applied only the legis single city. This resulted administration extreme form lative centralization local government. State constitutions were amended two ways effort counteract this virulent legislative centralization

of to

to

to

be

of

to

a

as

to

is, a

of

which cities could legislative exercise free from interference. The other form amendment attempted prevent special legislation, that law applying only particular city. While there remains some doubt the efficacy these measures, there seems evidence the effect that the extreme legislative centralization may have subsided.” form

Administrative Supervision.—There

of of

to

a

in

tendency has been recent years give state administrative departments some supervisory authority over local administration. Several influences have worked in this direc

it

an

or

fault,

&

pp.

I–IX.

-

the

of

For

Government 1934), Chs.

earthquake

(Harper Bros., New the United States 80–106. city government see Thomas Harrison Reed, Municipal historic aspects Co., Inc., New York, rev. ed., the United States (D. Appleton-Century in

M. Kneier, City Government

Charles 1934),

*

York,

county dam was built upon

in

*7

city dam broke and

a

an

to

in

in

tion, but the chief motivating factor former years was the failure municipal administration responsibilities specific fields meet its outstanding abuse activities. Very often disaster affecting human lives formed the immediate reason for state invasion. Thus, when one

ORGANIZATION AND COORDINATION

138

[Ch. 9

was provided that no dams should be built until plans and specifications were approved by the state engineer. When an earthquake did extensive damage to school buildings, the law was amended to require the state architect to approve plans for school buildings in the future. When munic ipalities defaulted on their obligations during the depression of the 1930's, certain states provided for varying degrees of state supervision over local

budgets.” Another factor leading to state administrative supervision is the feeling that the state is in a position to provide stronger administrative staffs than are individual cities. However, this point cannot be pressed far without en countering the possibility that the administrative staffs of the large cities

of the country may

be more competent, better organized, and administra tively more proficient than those of the states in which they are located. Indeed, this is the point at which state administrative supervision of cities

has broken down. Only a handful of states can boast of an administrative organization strong enough to supervise the larger cities effectively; at least, this is the opinion of many city officials.

A

more recent influence toward state supervision of local administration has been the widespread utilization of state grants-in-aid to finance local

government.” This eventuality has been stimulated by the failure of the real-estate tax, which has long been the mainstay of local revenue, to fur nish sufficient money to meet the expanding needs of municipal house keeping. Thus, the cities now receive more than a third of their revenue from state grants-in-aid, and with this money has naturally gone a certain supervision

of state administrative

amount

State administrative

over local administration.* may vary in intensity from merely

supervision

rather wide discretion and

istrative controls.

The fact

seems

to

slow the advance

be that the sentiment

of

to

the persuasive rather give local

Strong local tradition has served to

authorities

has generally been

of

In

of

influence has been exerted, than the coercive variety.

it

a

of

its

providing information and advice to substituting own administra defaulting local government.” practice the states tion for that have not exercised rigid disciplinary controls over local units. Wherever

state

admin

for home rule

of

be

in

cf.

is

to

at

so

is

strongly embedded the officials the municipalities that state super all, must vision, exist exerted cautiously.” Whereas, legally, possible, cooperation coercion should form the working basis between the two.

p.

ff.

p.

in

C.

p.

f.

of

,

of

* * ** *

Wylie, Kilpatrick, State Supervision New York, 1939), 131 pp. Bitterman, op. cit., pp. 24–58, 248 Benson, op. cit., i23 Schuyler Wallace, State Administrative Supervision over Citics the United States (Columbia University Press, New York, 1928), pp. 39–59. Commission,” James W. Fesler, “North Carolina's Local Government National Municipal Review (June, 1941), Vol. XXX, 330.

For further development this phase Local Budgeting (National Municipal League,

LEVELS OF ADMINISTRATION

Ch. 9]

I39

However, home rule does not eliminate the problem of administrative Since unlimited home rule would result in the dissolution of state government, there must arise a modified form. As stated previously, some powers are for the state and some are equally within the local prov ince, but there are others which are not clearly either state or local.” Thus taxation, indebtedness, and other financial matters, while of immediate supervision.

local concern, are subject to ultimate control by the state. It is here that we find the best and most numerous examples of state supervisory tech niques.

The manner in which local

government

state administrative

can take myriad

forms.

authority is exercised over Here, mere mention will be

made of but a few of the more common varieties. A large number of require the local authorities to submit periodic reports of financial states operations. However, this is frequently done in a very perfunctory manner

*

or

of

audits

by

is is

It

of

in

both,

in

to

or or

the fiscal operations cities optional, compulsory. some instances and other State auditing does not necessarily mean that the state staff does the only auditing merely indicates that the state charged with local accounts. make counties,

supervise regular

of

all

with the state going no further than prescribing the form in which the figures shall be forwarded. Indeed, in some cases nothing is done with the reports submitted. Nearly the states authorize some state department

In it

a

or

as at

or

a

be

to a

seeing that the local units are audited, and not whether done the auditor, private auditing firm, agency. fact, local the state the trend away from large state auditing staff and toward now appears small examining staff available for state examinations either local request

bond issues

on

Advance approval

for the construction

of of

such cases

for adoption. by

required

local initiative as

may

be

niques, relying

in

in

to

in

in

an

required.” the event the local unit does not provide for audit There are many fields which state officials confer, counsel, and advise with local units. The state may set the minimum standards, for example, regard certain budget records, and then suggest more advanced tech plans

public

of

of of

be

or

particular projects financed works the cities' share the state-col gasoline specifications lected tax. Administrative rules and fiscal records, forms, and systems prescribed by the state may often joint the result cooperation between local and state governments.

in

or

of

as

of

There are instances where state officers exercise appellate power over the acts local officials, under the Indiana plan described below. Vary ing degrees personnel administration are performed by civil service governments the states for local New Jersey, Massachusetts, and New

In

Municipal

of in f.

in

**

p.

of

**

Joseph D. McGoldrick, Law and Practice (Columbia University Press, New York, 1933), 338 1940 reports were required from counties Wylie Kilpatrick, 40 states. Cf. State Supervision *Ibid., pp. 13–17.

Home

Rule, 1916–1930-

47 states and from municipalities Local Finance, op. cit., pp. 17–23.

ORGANIZATION AND COORDINATION

140

[Ch.

9

York. The supreme form of administrative control is provided when the in and takes over the financial operations of a city which finds virtually itself in bankruptcy.” This form of administrative control is known as substitute administration and applies to fields other than finance. It has been most widely used in the field of public health. For instance, the state may come in and take jurisdiction over the local health situation in many instances where it has become a menace, and where local Obviously authorities either are unwilling or are unable to cope with state steps

applied only temporarily

to

drastic measure and

is

a

this

is

it.

*

correct

extraor

a

of

by

an

in

in

as

to

As

of

on

of

them attempt matters and administrative practice.

to

leagues vary from state clearing office legal maintain

While the functions

a

all

interest. state, practically

a

municipal

to

of

is

so

of

if

all

is

is

as a

of

a

to

in

dinary difficulties. Many states authorize their cities unite semiofficial state organi zation, frequently known municipalities. Support state league permanent staff and regular league functions largely provided mem ordinarily entirely bership fees paid from municipal funds. Membership voluntary, seldom ever including cities the state. At annual Usually meeting matters policy are decided and officers are elected. arranged provide education and training the program matters

In

at

in

of

to

to

result, they are frequently able furnish valuable advice their members. their early stages, the mayors and councilmen who were leagues were largely under the control influencing legislation more interested the state capital than technical

a

of

in

in

a

larger say

In

recent years, however, the administrative offi league affairs with the result that league staffs cers have had have become more interested administrative research and training pro grams. Leagues municipalities usually have strong home rule complex problems.

administrative

to

expand state administrative competent staff the hands a

of

a

is in

If

to

oppose many attempts which leads them league's day-by-day work control.”

of

a

of

a

is

league can accomplish much not politically minded, the purpose administrative control, probably with great deal less friction than other wise would be the case.

which

many functions are the gathering and publishing

of

of

of

a

of

its

its in

of

a

of

been much flirting with the idea state department government general supervisory powers over local which would exercise county and municipal affairs. The State Pennsylvania has established Municipalities. Among Department Internal Affairs Bureau

There has

statistics, the

instal

a

to

p.

of

by

Recommendations

Municipalities, December

Kansas 7,

of

by

p.

and Wallace, op. cit., 57. See “Probable Effects Upon Cities mission,” issued the League Kansas .

p.

of

* *

p.

G.

of

*

For discussion the widely publicized Fall River, Massachusetts case see H. G. Fishack, "A Financial Dictatorship for Fall River,” National Municipal Review (April, Fishack, “A State Board Attempts City's 1931); Vol. XX, 201, and H. Control Activitics,” Public Management (November, 1931), Vol. XII, 366. For definition and examples substitute administration see Kneier, op. cit., 100 ft., 1929.

Tax Code Com

LEVELS OF ADMINISTRATION

Ch. 9]

I4I

lation of accounting systems, the rendering of advice helpful to the improve ment of administration in general, and the preparation of plans. The

Brookings studies of Mississippi and Alabama recommended similar units to deal particularly with counties.” However, in general the state adminis trative relationship to cities is not yet conducted through a single bureau of municipal affairs, but is carried on in the various states with each particular department,

number of which often runs into scores.** Inasmuch as the principal development has come in the field of financial administration, it seems appropriate to describe briefly what has happened functional

in such states

the

North Carolina, and New Jersey.

as Indiana,

The so-called Indiana plan empowers the State Board of Tax Commis sioners to affirm or reduce local tax levies and bond issues upon the petition of ten taxpayers.” . The North Carolina Local Government Commission came into existence in 1931 primarily to aid cities and counties to struggle out of a morass of defaulted debts. It has conducted- itself in a conciliatory rather than a coercive manner.” The most distinctive feature of the 1938 New Jersey legislation, setting of

to

its

its

up a State Department of Local Government, was the preventive nature objectives. Through powers prescribe the method of account in

by

it

to

ing and improve financial administration, endeavors avoid debt defaults removing and deficits advance the causes and conditions which might create them.** SELECTED READINGs BOOKS AND MONOGRAPHS

(American

Council

on

D.

47

in

of

Anderson, William. The Units Government the United States. (Public Ad pp. ministration Service, No. 83, Chicago, Rev. ed., 1942), Baum, Robert The Federal Power Commission and State Utility Regulation. Public Affairs, 1943),

301

pp.

a

of

of

of

P”

1,

to

P.

a

2,

in

of

F.

**

,

in

of

**

of

of

in

of of

a 1,

*9

of of

Survey Institute for Government Research the Brookings Institution, Report on of the Organization and Administration the State and County Governments Alabama pp. 327–336; Institute (The Wilson Printing Co., Montgomery, Ala., 1932), Vol. II, Pt. Survey for Government Research the Brookings Institution, Report on the Organi Mississippi (State Research zation and Administration State and County Government Mississippi, Jackson, Miss., 1932), pp. 609–618. Commission super For the great number and variety state agencies having some measure visory power over local units finance, see Kilpatrick, State Supervision of the field Local Finance, pp. 1-8. Indiana,” American Political Science G. Bates, “State Control Local Finance pp. 352–360; Observer, “Has the Indiana Plan Review (May, 1926), Vol. XX, No. Been Success National Municipal Review (February, 1932), Vol. XXI, pp. 101–106; Zoercher, “Regarding the Indiana Tax Plan—A Reply Observer,” ibid. (May 1932), Vol. XXI, pp. 309–311; W. Kilpatrick, “State Codes for Local Budgeting,” ibid. (April, 1933), Vol. XXII, pp. 179–183.

9.

p.

of

of

of

39

of

of

of

of of

** **

Fesler, loc. cit., pp. 327–334. The First Annual Report the Local Government Board the State Department pp.; The Second Annual Report Local Government New Jersey (September, 1939), the Local Government Board the State Department Local Government New Jersey (December, 1940),

ORGANIZATION AND COORDINATION

I42

Benson, George C. S. The New Centralization. York, 1941), 181 pp.

[Ch. 9

(Farrar & Rinehart,

Inc.,

New

Clark, Jane Perry. The Rise of a New Federalism. (Columbia University Press, New York, 1938), 347 pp. Crouch, Winston Winford. State Aid to Local Government in California. (Univer sity of California Press, Berkeley, 1939), pp. 223–421. Dillon, John F. Commentaries on the Law of Municipal Corporations. (Little, Brown & Co., Boston, 5th ed., 1911), Vol. 1, Sec. 237–249, pp. 448–455. Gettys, Luella. The Administration of Canadian Conditional Grants. (Public Ad

ministration Jones, Victor. 1942),

Service, Chicago, 1938), 193 pp. (University of Chicago Metropolitan Government.

Press,

Chicago,

364 pp.

Kallenbach, Joseph Ernest. Federal Cooperation with the States under the Commerce Clause. (University of Michigan Press, Ann Arbor, 1942), pp. 342–372. Key, V. O., Jr. The Administration of Federal Grants to States. (Public Adminis tration Service, Chicago, 1937), 388 pp. Kilpatrick, Wylie. State Supervision of Local Budgeting. (National Municipal League, 1939), 131 pp. Kilpatrick, Wylie. State Supervision of Local Finance. (Public Administration Service, Chicago, 1941), No. 79, 65 pp.

McBain, Howard

Lee. The Law and Practice of Municipal Home Rule. (Columbia Press, New York, 1916), 724 pp. McGoldrick, Joseph D. Law and Practice of Municipal Home Rule, 1916–1930. (Columbia University Press, New York, 1933), 431 pp. McQuillin, Eugene. The Law of Municipal Corporations, as revised by Ray Smith. (Callaghan & Co., Chicago, 2d ed., 1940), Vol. 1, Sec. 368, 1017 pp. Martin, Roscoe C. The Growth of State Administration in Alabama. (Bureau of Public Administration, University of Alabama, 1942), 96 pp. (Brookings Institu Millspaugh, Arthur C. Local Democracy and Crime Control. tion, Washington, D. C., 1936), 263 pp. Rodriguez Arias, Julio C. Relaciones de las Entidades Antárquicas con la Adminis tracion Central. (Best Hermanos, Mendoza, Argentina, 1945), 77 pp. Twitty, P. S. The Respective Powers of the Federal and Local Governments within Lands Owned or Occupied by the United States. (Government Printing Office, Washington, D. C., 1944), 82 pp. Wallace, Schuyler C. State Administrative Supervision over Cities in the United States. (Columbia University Press, New York, 1928), 288 pp. Wilk, Kurt. Decentralized Government Work, Conclusions from a Comparative Study of Administrative Areas. (Institute of Public Administration, New York, 1942, mimeo.), 128 pp.

University

Williams,

J. Kerwin. Grants-in-Aid

lumbia University

under the Public Works Administration. Press, New York, 1939), 292 pp.

(Co

PERIODICALS Bosworth,

Karl A. “Federal-State Administrative Relations in the Regulation of Public Service Enterprises.” The American Political Science Review (April, 1942), Vol. 36, pp. 215–240. Dortch, Carl R. “The ‘Indiana Plan' in Action.” National Municipal Review (No vember, 1938), Vol. 27, pp. 215–240. Durish, Lawrence L. “Local Government and the TVA Program.” Public Adminis tration Review (Summer, 1941) Vol. 1, pp. 326–334. Edelmann, A. T. “The TVA and Inter-governmental Relations.” American Political Science Review (June, 1943), Vol. 37, pp. 455–469. Fesler, James W. “North Carolina's Local Government Commission.” National Municipal Review (June, 1941), Vol. 30, pp. 327–334.

LEVELS OF ADMINISTRATION

Ch. 9]

I43

Gill, Corrington.

“Federal-State-City Cooperation in Congested Production Areas.” Public Administration Review (February, 1945), Vol. 5, pp. 28–33. Harris, Joseph H. “The Future of Federal Grants-in-Aid.” Annals of the Amer (January, 1940), Vol. 207, pp. ican Academy of Political and Social Science i

14–26.

Macdonald, Austin F. “Federal Aid to the States: 1940 Model.” American Political Science Review (June, 1940), Vol. 34, No. 3, pp. 489–499. May, Samuel C., and Ward, Robert E. “Coordinating Defense Activities in a Metro politan Region.” Public Administration Review (Spring, 1942), Vol. 2, pp. 104– 112.

Roderick,

W. P. “State Control over Federal Areas.” George Washington Law Review (December, 1943), Vol. 12, pp. 80–93. Stewart, Frank M., and Ketchum, Ronald M. “Inter-Governmental Contracts in California.” Public Administration Review (Spring, 1941), Vol. 1, pp. 242–248. Williams, J. Kerwin, and Williams, Edward A. “New Techniques in Federal Aid.” The American Political Science Review (October, 1940), Vol. 34, No. 5, pp. 947—954.

Willoughby, G. Agriculture.” pp. 394–420.

W.

“Cooperation

Iowa

Between

the

State and Federal (October,

Journal of History and Politics

Departments of 1943),

Vol.

41,

CHAPTER

10

THE ADMINISTRATION OF FIELD SERVICES The Nature of the Problem It

is customary for the citizen to associate his national government with city the of Washington, D. C. However, the statistics of the Civil Service Commission indicate that approximately 87 per cent of federal employees were located outside of the Washington area in 1940—the last prewar year.” It may even be that the number of federal workers in places like Denver and the San Francisco Bay area exceed those on the payrolls of the state and local governments. Many of the problems connected with the administration of field units are quite apparent on the surface. They mainly revolve around the axis of centralization

versus decentralization—how

to have effective administrative

all

control from the center, while at the same time delegating sufficient mana gerial autonomy to those in charge of the field stations. Thus the question

by

in or

to

is

to

to in

is

a

it

all

arises in a government agency whether it is good to administer activities authority centered, from main office which make decisions whether better distribute the agency's activities offices located to

at

to

of

A

of

all

served and filled

in

be

to

men given authority make decisions. Washington must operate over federal bureau the three million square miles the United States and maintain defensible, uniform stand ards throughout that territory, while the same time giving due regard the areas

varying local considerations

of

of

to

a

in

to

This problem

Under these circumstances, requiring information and contact,

and conditions.

largely

one constant struggle against the barriers distance. unique states; indeed, not the federal situation nor the

becomes

turn results is

which

in

the problem

by

of

of

is

by

to

even municipal administration has had contend with the same perplexing amply illustrated situation for years. This the fact that the proper headquarters channels administrative control the precinct stations

to

in

of

of

of

be

a

perplexing problem for metropolitan police departments. has long been passing made, for illustrative purposes, Brief mention will two develop any the most vital problems which are likely the field

I44

of

-

to

as

of

of

of

1940,

there

of

In

*

greatly expanded defense the year government activities increased because compared 127,597 working were 875,223 employees working outside within the territorial limits the District Columbia. These figures do not include employees the legislative, judicial, military services nor CCC enrollees. Report the Civil Service Commission, June, 1940.

efforts,

.

Ch.

THE ADMINISTRATION

10]

OF FIELD SERVICES

The first is that of centralization

services.

versus decentralization.

I45

How

much autonomy

should headquarters devolve upon the field commanders, and what are the devices to assure the utmost delegation consistent with necessary controls? The natural tendency would seem to be toward more centralization.” Headquarters are reluctant to decentralize, and the field is frequently just as reluctant to accept the responsibility going with delega tion. This is merely another manifestation of that universal disease of administration

which may

be described as the

inertia of “neck preserva

tion.”

In his study of the field services of the United States Department of Agriculture in the Chicago area, David B. Truman speaks of the “common unwillingness to accept responsibility,” which he seems to attribute to a number of possible factors. In part it may be due to the fact that field men are not individually capable of assuming additional or discretionary respon sibilities. More likely, they are so tied to habits and traditions of “robot like” acceptance of orders from the chief, or their central office, that many field men can work in no other way. These traditions and habits may have come into being from the very fact that administrators themselves have failed to introduce methods into their organizations which would induce acceptance of responsibilities by field men.” The second illustrative type of problem, which seems accentuated in the administration of the field service, is what a trio of brilliant authors has claims of hierarchy and specialty.” “ ever-increasing use of the technical Modern Thus, and scientific specialties. in public health administration one finds public health nurses, physicians specializing in tuberculosis, in epidemiology, and so on. The clash is between the coordinating efforts of general admin recently

referred

to as “the rival administration is making

heads and the separatist tendencies of the specialists. General administration wants unity of command running in an unbroken chain headquarters from in Washington to the work in the field, but the func istration

tional specialists, such as the doctor, veterinarian, biologist, and engineer, frequently find it necessary to have cross contacts both vertically and hori zontally which do not conform to the black lines on the organization chart commonly known as the “lines of command.” Until recently this universal problem has been given little attention, a deficiency which is probably one of the reasons why it still is a matter of considerable controversy. It will be treated

in greater detail below.

* Earl W. Loveridge and Peter Keplinger, “Washington-Field Relationships in the Forest Service,” in Washington-Field Relationships in the Federal Service (Graduate School, Department of Agriculture, Washington, D. C., 1942), pp. 31–33. (University of Chicago Press, * David Bicknell Truman, Administrative Decentralication

Chicago, 1940), p. 105. * Arthur W. Macmahon, John D. Millett, and Gladys Ogden, The Administration Federal Work Relief (Public Administration Service, Chicago, 1941), p. 244.

of

ORGANIZATION AND COORDINATION

146

Administrative

[Ch. Io

Regions or Areas

The question of administrative areas or regions is one upon which the science of administration is far from dogmatic. Indeed, American literature on public administration has given it relatively little attention. In the past, agencies of the federal government have divided the country into regional and district areas for administrative purposes without examining divisions

of other units. Students of regionalism have decried this lack of uniformity in dividing the area of the United States into regions for federal admin istration." A brief but accurate statement is the following paragraph the pen of James W. Fesler:

In

from

the typical scheme of federal administrative regions would have 12 regions, would correspond with no other federal regional scheme, would form its regions through grouping states summary,

dividing them, and for headquarters-cities, would choose 12 of the following cities: San Francisco, New York, Chi cago, Boston, New Orleans, Denver, Atlanta, St. Paul or Minneapolis, St. Louis, Seattle, Baltimore, Kansas City, Portland, Washington, Cleveland, Los Angeles, Philadelphia, Cincinnati, Detroit, Omaha, and Pittsburgh." rather

than

by

In his monograph

for the President's Committee on Administrative Fesler urged that federal regional agencies be located not same city but in the same building or general vicinity." Tru

Management,

only in the man's Chicago study supports this last recommendation by indicating that coordination even within a metropolitan area is handicapped where regional offices are dispersed at some distance from the heart of the city.” Clarence E. Ridley and Orin F. Nolting recommend that moderately large to very large cities be divided according to size into administrative districts contain ing from 100,000 to 300,000 people. Within each one of these areas most of the functional activities of the city departments would be centered and located in district city halls. The size of the district might vary some, but the boundary lines for every activity for a district would be the same in so far as possible.”

Luther Gulick offers a word of caution relative to the desirability and need for, a uniform boundary for all administrative activities:

ſº

of,

* National Resources Board, A Report on National Planning and Public Works in to Resources (Government Printing Office, Washington, D. C., December , 1934), p. Aftral 74. ° James W. Fesler, “Federal Administrative Regions,” American Political Science Review (April, 1936), Vol. XXX, No. 2, p. 267. Fesler, Management Service,” " James W. “Executive and the Federal Field in Presi dent's Committee on Administrative Management, Report with Special Studies (Government Printing Office, Washington, D. C., 1937), p. 284. * Truman, op. cit., p. 162. Back to the * Clarence. E. Ridley and Orin F. Nolting, “Taking City Government People,” Public Management (April, 1939), Vol. XXI, pp. 99–103.

Ch.

10]

THE ADMINISTRATION

OF FIELD SERVICES

I47

Whenever the concept of geographic areas is introduced into the structure of organization, either as a primary or as a subordinate plan of division of work, there is always the further practical problem of delineating appropriate boundaries. This is particularly difficult when it is planned to deal with several activities widely differing in their nature and technology. There is always the danger that the tasks to be dealt with do not follow compact geographic boundaries and that the administrative separation introduced by the geographic division will complicate rather than simplify the work.19

Determining the number and location of field services and stations is an administrative act rather than a function to be performed by the legisla ture.” Local communities, through their chambers of commerce and members in Congress, are constantly trying to secure the location of federal units within their own boundaries.

The charge has often

been made that the United States Army has far too many posts which are of little or no military usefulness, primarily because influential members of Congress have been able to secure them for their own states.

Decentralization has already been indicated that the natural and normal pull is toward centralization and consequently against decentralization of administrative power and authority. There seems to be a popular assumption that decen

It

tralization would result in greater administrative efficiency. One of the most irritating results of extreme centralization is the slowing up of business due to the necessity of referring even minor decisions to headquarters. There results an accentuation of the evils alleged to be inherent in bureaucracy. These consist of excessive red tape and the slowing up of the flow of work to secure that nicety and correctness of detail which will insure protection

against criticism. If there is a rigid adherence in a legalistic and formal way to the channel of command, correspondence may have to go over half a dozen desks on the way from the field to departmental headquarters. Bottlenecks result from the piling up of business on the desks of important persons. The workers in the field have learned from experience that life will be easier and more devoid of irritations if they secure clearances and approval before acting. The result is that if an administrative

unit desires to secure maximu:m

decentralization, direction.

it must struggle against a normal tendency in the opposite The officer who wants to delegate to the field must assure the

19 Luther Gulick and L. Urwick (Eds.), Papers on the Science of Administration tute of Public Administration, New York, 1937), p. 30. ** W. F. Willoughby, Principles of Public Administration (Johns Hopkins Press, more, 1927), p. 25.

(Insti Balti,

ORGANIZATION AND COORDINATION

148

[Ch. Io

a

in

In

to

in,

workers there of his sincerity. This means that he must refrain from rush ing starting make decisions, and giving orders when things are going wrong certain sector. other words, decentralization can come only

policy such

this

of is

raised that

a

be

Objections may

as

of

strength

by in

the field. Such strength can come only from self-reliance generated the knowledge that headquarters expects the field men work themselves out their own normal difficulties, making allowance for some mistakes.

of

the development to

through

inconsistent with

a

is

of

performance, but the demands line command and uniform standards such need not be the case. There distinct difference between central

for achieving results. There

to

of

to

of

in

of

puppets direction and the manipulation the field. Under the former, the headquarters office lays down administrative policies, fur nishes guides and aids the carrying out those policies, creates stand ards uniform performance, and holds the field command accountable administrative

a

is

in of

it

a

is

in

of

of

is a

constant effort evaluate the relations having the between headquarters and field offices with the objective possible maximum number decisions made the field. There con consultative, stant liaison between the field and headquarters, but

spirit. Instead and friendly nature rather than authoritative specialized headquarters assuming the services from the lion's share administrative power, the line officers the field are cultivated that they

of

so

in

of

advisory,

be

of

a

is

–

by

be

at

of

by

will voluntarily and urgently request more aid from the functional special headquarters. Instead being manned weaklings the field serv ists performers.” strong ices will led and self-reliant largely understanding what can Decentralization matter dele

setting

up

administration below.

by

certain

able

standards

The government corporation

facilitate such decentrali decentralize personnel to

set been

to

Credit Administration was accordingly zation.” The same organization has

up

in

of

of

he

be

it

gated and how can done. When Henry Morgenthau, Jr. became the governor the Farm Credit Administration, observed that 90 per cent the loan applications could have been settled the field. The Farm

and

controls

discussed

of

as a

is

as

as

the Tennessee Valley Authority

administra

is

It

claimed that real decentralization must secure the active cooperation the people the local

p.

6,

ff.

19 12

Truman, op. cit., pp. 57–59, 123 Herbert Emmerich, “Public Administration, (December, 1936), Vol. XXX, No. 1123.

American

in

of

order

to

result

in

at

of

decentralization sought tion the “grass roots.”

by

to

in

of

is

to

securing has been pointed means especially operating decentralization. This true where the actual direc torate and management the corporation are located the field, the Valley Authority regional case with the Tennessee and the banks under the Farm Credit Administration. David E. Lilienthal has referred the form

Political

Science

Review

10]

Ch.

THE ADMINISTRATION

OF FIELD SERVICES

I49

of

upon whom the services operate. Also, the effectiveness federal decentralization depends largely upon the cooperation the state and local governments. The claim made that the Tennessee Valley

of

The Organization

of

Field Services Willoughby conceives

two

of

F.

Willoughby's Classification.—W.

federal functions.”

of

of

as

is

It

such cultivation “grass root” administration referred to

that

is

success.

achieve these ends with some degree local sentiment, control, and cooperation

to

Authority has striven earnestly

of

is

of

communities

of

all

a

or

of

a

is

of

general classifications field services: the unitary and the multiple. Under unitary jurisdiction plan the the area divided among number regions each regional headquarters administrative areas which has

to

a

at

the giving below, indicated

by

rather than

staff functional supervisory relationship the field involving relationship. relationship, command This functional greater length technical information and advice discussed

of a

headquarters have

or

at

to

to

at

in

of

a

is

There

to

regional chief administrative officer whom sub depart region report. stations the The line command runs from the headquarters ment the regional chief administrative officer and then the substations. Under these arrangements the technical specialists office.

of

or

to

be at

of

is

the dotted lines on the accompanying chart. (See Figure 11.) Under the multiple type organization the lines command headquarters run directly from the functional specialists similar

yard foreman who sees that operation and keep the yard going carried on, but there

in or

any sense

the word

as is

be

to

maintenance necessary probably no single person who can regarded field coordinator for the entire department.”

of

work. There may

in is

tend

be a

to

in

be

on

In

of

in

functional specialists the field. There may no regional field head quarters with coordinating power. the case the Public Works Depart ment, indicated the chart (see Figure 12), there may service yards and shops scattered around the city which the functional bureaus will

a

is

in

its

by

to

of

of

is

probably no department bureau existence which com types pure departments either these form. Federal tend have their field services organized under bureau control rather than departments. The bureaus follow both the multiple and unitary form.

There

plete example

in

of

a

is

in

of

Agricul Probably the United States Forest Service the Department unitary good example type, there, ture the but even foresters in

:

E.

a

TVA,

of

of

**

Lilienthal, The TVA An Erperiment David the “Grass Roots” Administration Federal Functions, an address before the Southern Political Science Association, Knox ville, Tenn. (November particular 10, 1937), 30 pp. Even within subdivision the

p.

*

5

in

L.

to

it

of

operations which handled requisitions, the office controlled the files, supervised telephone switchboard operators, cared for office equipment, etc., found feasible decen tralize and establish area offices with managers possessing administrative authority over these area offices. See Krainock and Harry Miller, Case Reports Public Administra pp. tion (Public Administration Service, Chicago, 1941), Vol. II, Willoughby, op. cit., 155.

| AND

SANITATION

SEWERS

|

OF

I | lI II I I|IIl| l|

| ll ! l l I I ! ! l | I | Il I ! !| I| ll

t

•

t

1

|

I

| | | I |IIIII! |i | CHIEF

1

t rt w

M

Organization.

7

of

Field

Public

of

lines Administration

Dotted

w

in

Principles

w

A A

Type

# ºr n

(Johns

represent

--|--/

CHIEF

DISTRICT

Hopkins

functional

Press,

contacts

A.

Willoughby

f/f

Baltimore,

advisory

|

CUSTODIAN AND JANITORS

—l-

w

fºf

CONSTRUCTION

/

--|--

CHIEF

DISTRICT

r

CHIEF

ACCOUNTING AND FINANCE

-

II I I I I I t

/f

/

f**

Unitary

I

/ ſ Mf f

CHIEF

1927),

nature.

--|--

156.

º

FINANCE

ACCOUNTING AND

DISTRICT

in

W.

tIº

STREET MAINTENANCE

w

f / // || | / / // / / | |

//

,/

11.

ºº

fw f

z

Figure

/ AAM

|

DISTRICT

T w

As described

w

/

SEWERS AND SANITATION

/ /f / fw

ENGINEERING

CONSTRUCTION

A

--1-

Alºjor

CUSTODIAN

r

/

CHEf

DISTRICT

FIELD

OPERATIONS

-

7

DISTRICT

-

| | I I I I l |t I I I I ! | | ||

MAINTENANCE

STREET

|

BUREAU

|

ENGINEERING

|

OF

OF WORKS

CHIEF

DIRECTOR PUBLIC

§

: p.

F.

by

Bureau

of

7

District

Office

Engineering

/

and

As described

Sanitation

Sewers

W.

12.

Multiple

\SQ

f

Public

Organization

-

156.

Construction

Administration,

\ Principles

Field

and Janitor

Custodial

OF WORKS

NN

Accounting and Finance

\\

Willoughby

Figure

Maintenance

Street

DIRECTOR PUBLIC

: §

p.

of

in

F.

by

ORGANIZATION AND COORDINATION

152

the experimental

are placed outside

stations

[Ch. Io

the command

of regional

foresters.” Gulick's Classification.—In his essay on the theory of organization, Luther Gulick discussed the various means of classifying administrative activities, one of them being what he termed “organization by place.” He divides the organization of field services into three general categories, which he admits constitute an oversimplification. The first and third would seem to correspond with Willoughby's second classification. The three are classified for illustrative purposes as: “all fingers”; “short arms, long fingers”; and “long arms, short fingers.”

Gulick's three simplified types field visualize them. Workers might find three following organized administrative

any one

of

themselves

in

further clarification organization will help the reader the

to

of

Perhaps

of

-

of

to

of

or

in

to

is,

The first, or “all fingers” organization, is one in which there are no administrative units in the headquarters office corresponding to geographi cal subdivisions. There are a great number of fingers running straight from headquarters to the field. Gulick's second type of organization differs from Willoughby's unitary one only in that the regional headquarters are physically located in the head office rather than in the field, that where the designation “short arms and long fingers” applies. The “short arms” are from the chief his regional chiefs, the latter being located physically the same building. The “long fingers” are from the regional chiefs, running probably hundreds thousands miles the field units. The “long arms, short fingers” has the regional offices decen third category tralized geographically.”

a

to

the field reported

in

to

be

“long arms, short fingers” arrange the field employees still worked Denver but found their chief Washington, C., along with his other regional colleagues and the

in

working under

department

head the same the workers would find themselves under the “short arms, long fingers” arrangement. However, the regional chiefs along with their location, offices were abolished, and the field workers, regardless offices

their

in

from separate

to

D.

to

ment.

If

the workers would moved reporting

D.

as

of

workers

in

If

Denver regional office chief responsible, who made most the decisions and who was were his other Washington, C., then eleven regional colleagues, the main office situations:

of

all

if

if

building,

to

of

directly

to

Washington headquarters without reference any particular regional chief, then the “all fingers” type organization would reported

-

result.

+

**

L.

in

of

in a

p.

of of

**

O.

Wolcott, Public Administration and the United States John M. Gaus and Leon Agriculture (Public Administration Service, Chicago, 1940), 266. For the Forest Service setup see Earl W. Loveridge and Peter Keplinger Washington-Field Relationships the Federal Service, pp. 23–34; for that the Social Mitchell, op. cit., pp. 35–45. Security Board see W. Gulick and Urwick, op. cit., pp. 26–30.

Department description

THE ADMINISTRATION

Ch. Io)

Ridley's

OF FIELD SERVICES

153

Nolting's Plan.—The

larger cities of the country have by necessity been forced to some decentralization of specific administrative activities, but it has not been on any uniform basis. Some are centralized and some decentralized. Those which are decentralized may have their and

those

services

which

community center,

occasion

be

own city hall

in

have

or

its

district offices scattered at various points. Clarence E. Ridley and Orin P. Nolting recommended that the cities be divided into districts with flexible boundaries containing from 100,000 to 300,000 people. Each district would which there would

considerable

located citizenry. the

with

contact

is

to

of

In do

of

to

at

People would become accustomed transact their business with the city headquarters. these district The most interesting feature the proposal that which has with coordinating the efforts the diverse func to

of

the representatives

departments

the district but would act coordinators for the functional specialists within their respec tive districts.” This line of command would run from the functional the main city hall

to

department heads

of in

as

the functional

in

of

be

to

a

district there would or

each

be

district service super city manager. The district supervisors visor responsible the mayor would not administrators with the line command running from them

tional departments.

in

to

of

to

or

of

a

of

to

on

to

to

be

suggest improvements The district supervisor would free municipal services, give administrative guidance all personnel assigned work with him, particularly matters relating the integration daily work. He would make administrative studies on functional and area basis. He would keep the chief administrator and coordination, the need for department heads informed the lack ordinances, and suggest program changes new regulations make

-

of

be a

at

functional field officers the supervisor representative district. The district service would the chief administrative office, charged chiefly with the task noncoercive coordination.

be

as

of

in

in

in

the districts more effective.

of

in

His special job would that ironing operating policies, and coordinator—in out conflicts helping harmonize and unify the entire municipal service his area. This district coordinator and personal representative the chief administrator could carry some such title District Service Super the work

visor, which would quite accurately symbolize his duties.”

of

the main problems separatist ize the tendencies

large-scale organization

to

p.

a

be

of

an

of

of p.

See Ridley and Nolting, op. cit., Ibid., 102.

**

is

how harmon specialists principles the functional with the unity integration. command and the theory When preparing organization setup for headquarters office, the activities can grouped

of

One

of

Problems of Functionalism

101.

ORGANIZATION AND COORDINATION

I54

[Ch.

To

fit

into fairly homogeneous functional units without giving rise to insuperable difficulties. The functional specialists can be made to into their respec of

preva

universally

of

so

is

of

to

all field services that

command

remarkable that the literature

public

at

be

is

or

to

it

administration has given little attention. fairly universal irrespective great problem, The which seems location, function the relationship between the functional units

of

so

lent

the line

it is

specialists

the functional

in

of

in

up

It

is

in

tive grooves the headquarters setup. when these functional specialists operating against “the rival claims start the field that one runs hierarchy and specialty.” The controversy surrounding the relationship

it

on

headquarters and those who actually perform these functions the line under the district administrator.” Before proceeding any further would

as

on

in

to

to

designate the desirable establish the terminology necessary functional specialists from headquarters who travel and visit the field, differentiated from the specialists the “firing line.”

seem

as

in

However,

these

on

be

it

Taylor's

using the term “supervisor”

do

involves authority

reconsideration

of

and command.

that

a

grounds

is

large-scale

forcing

public administration ideas on this point. There may some opposition

to

is

to

of

is

of

to

be

Good authority can cited for referring the former functional Taylor's functional foreman, supervisors. There the historic example and there some reason believe that the emergence this problem

the people

of

a

to

is

It

a

in

great many things which are essentially supervisory nature without being coercive. necessary accept concept supervision which does not imply impulsion from above. Indeed, there are strong tendencies

toward industrial democracy, involving democratically

super

motivated

in

be

to

is

at

the line

of

staff capacity rather than

in

a

ters who travel contacting workers

in

in

to

be

is

If

of

spirit supervision, which this concept democratic accepted, the term “functional supervisor” and not necessarily coercive, headquar applied without hesitancy could the functional specialists vision.

command when

the field.

of

at

in

or

to

The principal difficulties have arisen largely because functional super visors frequently have tended take too much authority into their own hands, because line administrators the field felt least some intrusion

a

of

in

of

bureau which

by

survey made among the field units federal makes extraordinary use functional supervisors the

indicated

a

ances

is

is

of

upon their command prerogative. That much this apprehensiveness the line toward the functional supervisor based upon imaginary griev

a

of

K.

an

in

I,

4.

in

1,

o.

§º

of

*

an

in

in

p.

20

Macmahon, Millett, and Ogden, op. cit., 244. For treatment functional aspects pp. federal field situations see Washington-Ficli Relationships the Federal Service, 13–19, 24–27, 45–46. Robinson, For actual case posing this problem see William Cooper and H. “Organization Accounting Agency with Geographically Separated Projects,” Case Public Administration (Public Administration Service, Chicago, 1940), Vol. 22, pp.

Ch.

THE ADMINISTRATION

10)

OF FIELD SERVICES

I55

field. It was found that, contrary to what had been presupposed, the line agencies, in their own reports appraising several hundred visits to the field by functional supervisors, found them to be useful and worth while. The conclusion would seem to be that the functional supervisor really has his place, and that he is here to stay. In many instances, he has undoubtedly been a dominating factor in particular operating situations because of weakness in the field command. There are unquestionably situations wherein the functional supervisors from headquarters have participated in line to the point of causing the line officers gradually to abdicate many of their prerogatives without actually realizing that they were doing so. There have probably been instances also when functional supervisors have not paid proper deference and courtesy to heads of field offices when operations

entering the region to confer with comrades of their own particular spe cialty. Where these conditions have been accentuated to the point that the staff specialists are running the administrative machine in the field, there is no doubt that an unhealthy administrative situation exists even though excellent results are being achieved at the moment. Thus, we see one of the foremost federal bureaus realizing this hazard by making the slogan

training conferences: “Back the Line.” The concept staff and line has been discussed above where their status

This

For

fre

a

of

distinct from the authority stating that they wield the to

is

all

is

of

merely another way specialized functional subject matter. The field administrator specialist things. His primary duty coordinate the great many specialists. There particular inconsistency

in

in

be

cannot

of a of

authority

certain staff people.

the effect that staff people as

of

to

instance, there have been statements quently exercise the authority ideas command.

exercise

of

officers may occasionally

as

that staff

no

indicated

authority without essentially changing

was type

it

of

to

its

of

to

in

is

It

or

of

a

is

activities saying that while the functional supervisor exercises the authority ideas, functional authority, the regional line commander exercises command power. necessary these situations realize that the line com

at

of

to

is

to

permit and healthy administrative setup not going controversy irreconcilable arise between the line commander and the functional specialist. a

satisfactory

all

to

an

more,

to

to

is

as

If

he

of

course, mander has ultimate power, subject, his line commander headquarters. wise, going not contradict the opinions the they apply functional specialists the subject matter fields. Further

in a

de

so

a

in

or

In

of

staff relationship indicated that staff officers can be, and often are, charged with responsibility for carrying out specific facto, doing they are acting, tasks under delegated authority. line command capacity without essentially departing from their

The above discussions

in

as

status staff officers. Functional supervisors frequently exer specially delegated authority when they are operating cise this the field. principal

*

-

ORGANIZATION AND COORDINATION

156

[Ch. Io

It

is imperative that the proper precautions be taken in these instances so that the line commanders in the field know such authority has been dele gated to staff officers, and that it is to be exercised with due deference to the formers' prerogatives and sensibilities. In general, the principal duties supervisors

of functional

center around

training,

counseling,

guidance,

inspection, and dissemination of technical information. A philosophy of supervision which continues to gain ascendency, be it either in the field or at headquarters, is to emphasize the importance of the immediate line officer. There has been a tendency during the last quarter has been expanding in geometric by throwing them into the laps of specialized technical staff units. Such a delegation of work proved to be a desirable development resulting in permanent value. There is an increasing feeling,

of

a century, when large-scale organization

ratio,

to solve problems

however, that maximum achievement will not result in such fields as per sonnel, budget and finance, managerial and procedural planning, and general improvement of the operating personnel unless the positive and energetic

would

be a weak organization

which

did not tend to bring

its

support of the in mediate line officers can be enlisted. The same principle also applies to the relationships between field and headquarters. It is a good thing to have strong specialists on the headquarters staff. Indeed, it strongest

into rather close relationship with the chief administrative However, since these individuals are dealing with the field, they a

individuals

be

to

is

do is If to a

to

of

officer. should remember that the commanders the field stations are line officers, responsible for results. virile and self-reliant field service developed, the thing devolve upon the field commanders the max

not

by

is

the field

a

sufferance, but rather

is

of

efficiency unless their presence urgent request. the result

in

by

imum possible responsibility and authority. The functional specialists from headquarters can achieve their greatest usefulness creating demand from the field for their services. Indeed, they cannot achieve their highest

Coordination of Field Services

In

in

up

is

the many specialized bureaus and divisions especially difficult. Several abor the federal departments the field tive attempts have been made, notable among which was the federal coordi

of

coordinating

of

The problem

in

Each federal bureau was represented association, member the business the principal activities which seem monthly clearinghouse have been hold luncheon and act for surplus space and equipment. The coordinating service was abolished, but offices.

as a

to

a

to

to

of

federal

of

city having

by a

to

to

a

in

nating service set with the budget system 1921. each army corps area federal regional coordinator was established. His main duty seems every have been foster and work with federal business associations

Ch.

10]

THE ADMINISTRATION

OF FIELD SERVICES

157

the business associations continued to function chiefly as a vehicle for eating together once a month. The National Emergency Council, super seded by the Office

of Government Reports, which was finally consolidated into the Office of War Information, made some attempts at field coordina tion.22

A

noteworthy

venture,

designed

to secure coordination among the bureaus of a single department, are the Department of Agriculture clubs located in the principal field centers. In his monograph for the President's Committee on Administrative Management, James W. Fesler recommended that institutional services, such as personnel, retirement, and disbursing agencies, should select a common regional headquarters. He further stated that there would be little need for field coordinators of such institutional services if the regional heads had some authority to make commitments for their respective agencies. On the other hand, if these institutional services

in the region are not headed by officers who possess authority to make commitments, then field coordinators may be needed. A central coordinat ing staff agency, responsible to the President, was recommended. The field representative of this unit would not have any authority but would secure results by noncoercive means.”

Administrative

to issue orders,

Control of Field Services

,It

is axiomatic that if headquarters is going to maintain administrative control over field services, both under a centralized and a highly decen tralized system, there must be inaugurated a system of internal checks and controls. Foremost among these is information. There must be provided the best possible network of channels of information, communication, and notice, so that headquarters may always be aware of the status of perform ance in the most remote corners of the jurisdiction. It is also just as important that the reverse of this be true, namely, that the field always be advised and informed on policies, decisions, and actions taken at quarters.

In

these

days of mechanical communication,

most governmental

head areas

have means of almost instantaneous communication. Thus the federal gov ernment uses the radios of the War and Navy Departments for telegraphic communication of urgent business. In many states there is a system of state-owned teletype connecting the capital with the most important urban centers. An air-mail letter posted on the west coast in late afternoon is

delivered in Washington, D.C., the following afternoon. Hence, the prob lem is not one of long delays and impossibility of communication, but rather

ff.

** Truman, op. cit., pp. 159–161. For a more extended discussion of coordination in field services see James W. Fesler, “Interdepartmental Relations in the Field Service of the Federal Government,” Washington-Field Relationships in the Federal Service, pp. 51-60. *James W. Fesler, loc. cit., p. 291

ORGANIZATION AND COORDINATION

158

[Ch. Io

the flow of information in some systematic and orderly manner. This becomes largely a question of boiling down to that which is most pertinent, so that the business executive in headquarters can secure, with a minimum amount of time, that information from all the field areas one of coordinating

which is essential for purposes of administrative control and supervision. It also means reducing the volume of communications from headquarters so that the time of field workers will not be unduly burdened. The use of written instructions and administrative directives is quite prevalent in federal jurisdictions. Sometimes the size of these manuals will run into a dozen or more bound, mimeographed volumes. There have been cases when directives for a single federal bureau cover two sizable shelves in a bookcase. The volume of these mimeographed circulars which come out of Washington often is tremendous. It is usually the duty of a particular person, frequently a chief clerk in the field office, to read these bulletins and to check them for the attention of individuals in the field stations to whom they apply. It is not impossible that this work may take up as much as one-half the time of a single individual. The management problem here is one of trying to reduce this flow to an amount which will render a maximum of information and control with a minimum of reading time and effort.

of

to

to

it

it

or

be

of

all

a

a

in

all

The burden of written communications between headquarters and the field is one of the reasons why some organizations have found it desirable single headquarters unit under to integrate contacts with the field director field operations. Under this system, communications with go through attempt argue the field must this office. No will made here against this arrangement. Suffice say that some organiza either for tions have found desirable to channelize contacts and communications in this manner.”

Decentralization

Action on Papers to

to

in

to

of

to

in in

is,

be

accomplish decentrali One thing above all else must done order field; give complete zation the that field officers the power Washington sending the papers action the field without the necessity

of

In

of

funds, and the authorization go

the disbursement

of

to

of

of

for approval before they become valid. Examples the type action papers personnel, securing supplies and equipment, referred are appointment travel.

some federal on

to

to

A

to

to

be

up

of

Washington and are passed by agencies action papers this type top officers, thus slowing operations tremendously. better procedure power complete delegate would such transactions the field offices

**See Washington-Field Relationships,

is

of

to

and develop internal checks hold them responsible. An acknowledged securing such responsibility method the post audit, sometimes referred pp. 30, 46–47.

Ch.

10]

THE ADMINISTRATION

OF FIELD SERVICES

I59

II

to as inspection. During World War the War Department decentralized paper work concerning civilian personnel and checked upon operations through a corps of inspectors.”

The system of inspecting the field stations systematically by representa tives from headquarters is quite generally followed in all large field organi zations.” In many fields of administration inspection is regarded as “snoop ing,” and as being beneath the dignity of technical and professional people. Nevertheless, every well-run organization of considerable size has found it necessary to install some form of inspection. It is one of the types of internal check upon which most reliance is placed. It does not have to be conducted in the spirit of “snooping,” and it may be preferable to refer to it under some other name than “inspection.” In the supervision and inspec tion of local projects by the regional offices of the Soil Conservation Service, great stress is placed on the fact that supervisional, or inspectional, visits should be for education and advice rather than for policing. This attitude encourages unit personnel to bring up problems which they would have been too timid to raise otherwise.” Indeed, the proper approach for such supervision would be one dominated by a desire to be helpful, to train, advise, and counsel.

This is the approach of the functional supervisors referred to above. They are really inspectors, but it is well not to refer to

them as such.

Every large-scale organization in which there must be accountability for property and funds has found it necessary to set up some type of investiga tive unit. The duties of such a unit are to investigate charges of a criminal or quasi-criminal nature, and either prepare the case for prosecution or secure some type of settlement. It is one means of combating the more vicious types of political interference and looting. Thus, the WPA set up a division of investigation with some reluctance, but found it to be one of the most reliable instruments * tration.28

for securing

a satisfactory

level of adminis

The satisfactory flow of statistics and information pertaining to the condition of administration is essential to the control of field operations. The great problem is having these statistics available in time to be adminis tratively useful. The device of the master daily or weekly report, sum marizing the status of operations, is familiar to management everywhere. In those instances where operations are reducible to quantitative data in tabular form, such reports can be placed upon the executive's desk at the intervals

*

required.

For nonquantitative

data the summary

memorandum

For the War Department's plan further to decentralize such paper work see Civilian Personnel Procedures Manual No. 1 (War Department, Washington, D. C., 1945) pp. 5–19. ** Macmahon, Millett, and Ogden, op. cit., p. 234. ** A. M. Hedge and George C. S. Benson, “Supervision and Inspection of Local Projects by Regional Offices,” Case Reports in Public Administration (Public Administra tion Service, Chicago, 1941), Vol. II, No. 43, pp. 5, 7. Macmahon, Millett, and Ogden, op. cit., pp. 236–238.

*

.

ORGANIZATION AND COORDINATION

16o

[Ch. Io

at

so

of

all

is sometimes used. The man working upon the “firing line” in the field writes a memorandum to his superior; the latter summarizes this for his chief, and so on up until the man at headquarters secures a master sum mary of such memoranda. Sometimes the form and order these memoranda are standardized that the same material will appear the

for successive reports.

same place

in

by

of

of

is

of

Various procedural devices have been used for controlling the field. Ohe Thus, the facilities organization. these the uniform plan the uniformly organized United States Veterans Administration are and staffed wherever they may exist. The differences are caused variations the be

to

is

at

a

particular

is

in

in

to

of

it is

to

a

at

If

service under Washington know taken new point for the first time, the officers exactly how much going cost, and the operators the field are held rigidly headquarters the allocations cost. Sometimes there set up

activities and services performed.

organization

a

is

of

to

an

and procedures unit dealing primarily with The Farm Credit Administration has management plan ning consultants allocated the field. The State Advisory Service, the Board, Security essentially management, planning, consulting Social service for the states.

headquarters field problems.

SELECTED READINGs

Paul

Big Democracy.

(Alfred

A.

arº.

H.

BOOKS AND MONOGRAPHS Knopf,

New York, 1945),

pp. 97–

No.

64,

No.

22,

7

46

in

J.

of

D.

on

on

Brecht, Arnold. Chairman, Special Committee Comparative Administration. Memorandum on Regional Coordination. (Social Science Research Council Com C., 1943, mimeo.), pp. mittee Public Administration, Washington, Carlson, Carl “Clearance Instructional Material for Field Offices,” Case Re ports Public Administration. (Public Administration Service, Chicago, 1942), pp.

59

to

be

to

D.

of

4

in

of

Z.

of

I.

of

of

E.

Crouch, Winston W., and McHenry, Dean California Government, Politics and (University Administration. California Press, Berkeley, 1945), pp. 123–137. Hinderaker, H. Administrative Districts and Field Offices the Minnesota State Government. (University Minnesota Press, 1943.) Kile, Bryan “Determining the Number Operating Forms Distributed Field Offices,” Case Reports Public Administration. (Public Administration Service, Chicago, 1942), No. 62, pp. Library Congress Legislative Reference Service. Federal Field Offices. (Govern C., 1943), 78th Cong., 1st sess., Senate Doc. ment Printing Office, Washington, pp.

6

2, in

in

R.

4

in

&

on

E.

Lilienthal, David “Decentralization: Antidote for Remote Control,” TVA— (Harper Democracy Bros., New York, 1944), pp. 139–166. the March. Rafael, Emil W. “Organization Where Two Units Work Together on Statistical Tabulations,” Case Reports Public Administration. (Public Administration Service, Chicago, 1942), No. 63, pp. Simmons, Walt “Geographical versus Functional Organization Central-Field Relations,” Case Reports Public Administration, (Public Administration Serv ice, Chicago, 1941), Vol. pp. No. 61,

Ch.

10]

THE ADMINISTRATION

OF FIELD SERVICES

161

Relationships in the Federal Service. Donald C., and others. Washington-Field (Graduate School, Department of Agriculture, Washington, D. C., 1942), 60 pp. Truman, David B. Administrative Decentralization, a Study in the Field Offices of (University of Chicago Press, the United States Department of Agriculture. Chicago, Ill., 1940), 211 pp. War Department. Civilian Personnel Procedures Manual, No. 1. (War Department, Washington, D. C., 1945), pp. 5–19. Stone,

PERIODICALS Abel,

Albert S. “Decentralized Administrative Techniques of the Federal Govern ment.” University of Chicago Law Review (July, 1943), Vol. 10, pp. 437–452. Carey, William D. “Central-Field Relationships in the War Production Board.” Public Administration Review (Winter, 1944), Vol. 4, pp. 31–42. Fesler, James W. “Criteria for Administrative Regions.” Social Forces (October, 1943),

Vol.

22, pp. 26–32.

Howard, Paul D. “The Art of Communicating Washington to the Field.” Public Administration Review (Spring, 1944), Vol. 4, pp. 148–150. Symposium. “Administrative Management in the Army Service Forces.” Public Administration Review (Autumn, 1944), Vol. 4, pp. 255–308; reprinted (same title) Service, Chicago, 1944), No. 90, pp. 14–27. by Public Administration Uhl, Raymond. “Administrative Regions in Virginia.” Public Administration Re view (Winter, 1942), Vol. 2, pp. 50–53. White, Leonard D. “Field Coordination in Liberated Areas.” Public Administra tion Review (Summer, 1943), Vol. 3, pp. 187-193.

CHAPTER

11

THE ADMINISTRATIVE MACHINE IN MOTION The Operating Setup—Authority The powers exercised by administrative officers must be based upon law. The legal aspects of administration are discussed at some length in later chapters on administrative law. However, it seems desirable to emphasize at this point the fact that the Anglo-Saxon administrator must be very sure that he is on sound legal ground, especially when undertaking

some

activity which has not been carried on before. This does not require that every minute administrative step must have been prescribed and authorized by some specific statement in the law, but it does mean that it is the course

of one's ground before doing something which may be open to any degree of legal doubt. While the general rule is that officers will not be held liable for the honest exercise of discretion, judgments have neverthless been rendered against them in a sufficient number of cases to warrant caution. Furthermore, aside from the question of financial respon sibility, the potential embarrassment both to the officer himself and to his of wisdom to

be sure

agency should warn him against embarking upon an administrative course which may have to be abandoned because it has been found ultra vires. The latter is the legal term to designate an act beyond legal powers.

The necessity for the administrator to be doubly sure that he is not acting ultra vires, or illegally, is responsible for the rôle played by the law officer in public administration. This is much more obvious in America than in England because of our more rigid doctrine of constitutional limita tions. The advocates of efficiency frequently rebel at the rigorous legal tutelage which they believe is unnecessarily straitjacketing the administra tor's freedom of action. Administrators are often impatient with the a

it

to

be

in

of

all

delays and meticulous attention to detail often necessitated by making sure democracy that the legal requirements have been met. Yet responsible. The Anglo-Saxon way has been administration must make both legally and politically responsible."

S.

in

J.

C.

in

I,

in

of

of

J.

et

of

J.

in

1

Friedrich, “Responsible Government Service under the American Con al., Problems Friedrich the American Public Service (McGraw-Hill Friedrich, “Public Policy and the Book Co., Inc., New York, 1935), pp. 3–74; Carl Responsibility,” Nature Administrative Friedrich and Edward Mason (Eds.), Public Policy, 1940 (Harvard University Press, Cambridge, 1940), pp. 3–24; see critique Friedrich's views Herman Finer, “Responsibility Democratic Government,” Public pp. 335-350. Administration Review (Summer, 1941), Vol. See Carl

stitution,”

162

THE ADMINISTRATIVE

Ch. 11]

MACHINE IN MOTION

163

The powers, duties, and responsibilities of administrative agencies and officers are governed by a hierarchy of law, which consists of descending levels of authority somewhat as follows: Constitution Statutes Charters (City and County) Ordinances

Rules and Regulations Procedural Manuals Supervisors’

Orders and Instructions

The general rule is that details should increase as one goes down the hier Thus, there is probably no more generally accepted credo of political

archy.

all

science than that a constitution should contain very little about the actual organization and conduct of administration. Indeed, most authorities would probably consider the Constitution of the United States as a model in this a

of

a

of

to

in

in

respect, as it does not mention administration at except passing department heads.” Most authorities are agreement that the reference great deal constitutions the states are too long and contain unneces

of be

of of

in

A

of

sary detail about the organization and conduct administration. very important question revolves around where, the hierarchy law, the written description hierarchy the administrative should

gress.

In

namely the bureaus, should given other words, the two top levels (three be

subdivisions,

a

is

F.

in

Willoughby W. the opinion that federal administration major departments independent agencies, together the and with their chief placed.

Con Presi

statutory basis by by

of

on

of

by

a

the various levels the hierarchy will have rather intimate relationship the position classification scheme administered the per promi why organization charts sonnel department. That often play a

of or

no

is

so

to

ployees

of to

be

in

be

if

one includes the Congress. dent) should set forth the federal statutes enacted left, with certain exceptions, Below that they can the discretion departmental officers.” The duties and responsibilities officers and em

a

as

in

of

is

in

nent part classification procedure. Job analysis more less than particular discovering, analyzing, and describing the duties and activities positions. Thus, the description duties set forth the civil service specifications legal classification acts control within rather broad limits.

of

of

in

.

.

.”

. .

of

of

I,

"

.

2,

of

of

in

of

F.

°

to

in

*

of

may require Constitution the United States, Art. II, sec. “The President writing, the opinion, the principal officer each the executive departments, upon any subject relating the duties their respective offices Willoughby, Principles W. Public Administration (Johns Hopkins Press, Balti more, 1927), pp. 17–24; the comparative powers the President and Congress under the Reorganization Act 1939 are discussed John D. Millett and Lindsay Rogers, “The Legislative Veto and the Reorganization 1939,” Public Administration Review Act (Winter, 1941), Vol. pp. 176–189.

ORGANIZATION AND COORDINATION

164

[Ch.

11

An administrative code is often recommended

as a means for segregating governing responsibilities the laws the duties and of administrative agencies and officers. Thus, some of the states, such as Illinois, have grouped the

statute laws describing the hierarchical structure and responsibilities of administrative agencies, and have called it an administrative code. Aside from the convenience, which applies equally well to codification in other fields, there is the argument that it will relieve the pressure to place exces

Leaving it in the statutes will build for desirable administrative flexibility, especially in those states where constitutional amendment is difficult. On the municipal level there has been some sentiment in favor of placing administrative arrangements on the ordinance level so as to keep them out of the charter. Some advocate that the municipal administrative code should consist of a higher level of city ordinance, requiring an extraordinary majority such as a two-thirds vote detail in the constitution.

sive administrative

of the city council to enact, amend, or repeal. The administrative code should be clearly distinguished from the admin istrative manual. The former outlines the major structure of the adminis trative organization, defines the functions of the departments, and establishes the duties and responsibilities of the chief administrative officers. In a single document it outlines the general procedures and policies which are expected to remain substantially the same for some time. The student should be careful not to confuse this code with the administrative manual regulations discussed below.”

or the administrative

Organization Control

It

has been said that responsibility consists of establishing a set of standards of accomplishment and of measuring the performance of an individual or agency in the light of these standards." It is easier to hold a person accountable

or function.

Such

if he is assigned some well-defined task, duty, activity, responsibility cannot be maintained without clear-cut

lines and definition of authority. This process, which may be referred to as organization control, can be accomplished through certain techniques and mechanics generally accepted where good management prac tices exist. organization

Organization

Charts.-There is

controversy as to the general opposing charts. Those them maintain that a chart can never reflect the true situation. The chart's failure to accomplish this purpose is due to several factors: first, the dynamic nature of organization efficacy

some

of organization

in this chapter; also “V. Administrative Codes, Rules, and Regulations,” a Public Management (January, 1942), pp. 13–18. Authority University, *..I. C. Marshall. The Location and Utilization of (American

* See later survey report, Washington,

D.

C.

1940,

mimeo.),

p. 50.

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166 11

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*

THE ADMINISTRATIVE

Ch. 11]

t

MACHINE IN MOTION

167

which changes the relationships almost as soon as they are written down; second, the intangibility of the sociology of organization which frequently makes the informal organization more significant than the formal one; and third, the propensity of the indigenous leader to exercise legitimate leader

be

effectuated

a

is

is

by

all

of

is

A

vidual bureau, division,

of

of

general three types organization charts: the skeleton, personnel. and the The first merely sets forth the the hierarchy. functional chart made up each indi

in

of

the functional,

major units

of

to

the rule

There are

law and order cannot

no"argument against the maintenance the statute really law. The organization chart visualized expression management. order desired

the letter

or

of of

the rule

of

The fact that the maintenance

according

of of

poses.

to

in

of

all

ship not reflected on the chart. The realistic student of organization can accept the deficiencies the charting process and yet see sufficient utility charts warrant maintaining them for management control pur

unit, setting forth the functions,

duties, and

in

of on

These latter are written brief form right into the boxes the chart. The personnel chart shows the same box outline setting forth the duties and activities, the functional chart; but instead

as

each subunit.

maintains constantly.

it

for

unit

charts The through conferences subdivisions immediately concerned.

loose-leaf bound volume

the

of

a

Administrator. Each principal executive has

prelim by

arrived

at

these

is

for their preparation

with the chiefs the administrative The agreements resulting from such conferences are placed upon inary charts which become authoritative when they are signed charts upon his desk."

job analysis.

of

of

Job Analysis and Description.—Large-scale increasing amount

organization

needs

scientific management

of an

organization

Vet

a

The United States

date.

this respect

on

work

to

in

in

unique

of

proper information

is

it

erans Administration may whose sole duty

to be

be

these charts always up

to

of

of

in

of

in

of

complete set

of

positions with the number incumbents each. quite prepared process making Charts this nature are often the classifying positions. There administrative surveys and studies and relatively few units would seem the public service which maintain

of

it

lists the hierarchy

a

of

activities

Taylor school was that type

of

The heart job analysis which was based very largely upon time and motion study and work simplification. Public ad

the

an

is

management, but one should not lose sight

of

ful and essential tool

of

of

by

of

ministration has made only sporadic use this approach, but has probably carried position classification farther than has industrial management. The positions extremely use classification the personnel department the

in

*

in

See John M. Pfiffner, Research_Methods Public Administration (The Ronald Press Co., New York, 1940), pp. 306–307; The Technique of Municipal Administration (The Municipal Administration, Chicago, 1940), pp. 81–82. Institute for Training

ORGANIZATION AND COORDINATION,

I68

[Ch.

11

fact that it is only one form of job analysis. The job analyst from the personnel department is ordinarily confined to analyzing and classifying generally outside his purview to devise better ways of doing the job, although it is his duty to discover whether the incumbent of a position is performing the duties prescribed for him, that whether

It is

working “out

or

study

devising better ways

of

of

work with the objective

the being

of

is

It

is of

getting

to is

or

in

is

in

every possible aspect

on

class.” analyst The administrative the management planning division, other hand, concerned with seeing whether not the work performed the best possible manner." his responsibility

is

not

of

he

is,

jobs.

is

he

is

at

creative and dynamic. Instead constantly the office, the he

in

a

of

to

job analysis many angles, his approach poring over mass questionnaires

of

of

is a

in

of

in

to

in

it

done. He often more interested the flow work from position than positions. constantly individual While job analysis approaching the question large variety ways and from

position

of

of

an

it

do

to

those who

do

of

the work, helping them better and easier. Thus, planning analyst department the administrative from the becomes instru mentality management, performing functions coordination, supervi sion, and liaison. side

readily

available, comprehensive

the so-called administrative

manual.

considerably

guide

It

action

is

Written Procedures.—A administrative

for

contains

by or

is

a

or

as

be

to

more detailed material than the code referred above. There separate manuals covering such distinct procedures personnel, purchasing, budgeting, either within single department for the designed especially for use whole organization. The manual the em

may

is

It

be

is

is

its

in

by

to

ployees, emphasizing how certain definite tasks are carried out. often prepared staff specialists close touch with line operations. On by municipal level, the enactment the council not desirable and

lations may concern,

office telephones, the method

legislation)

or

of

which affect the rights

of

tive body (often termed subordinate and privileges citizens.”

an

be

by

in

in

be

to

or

government government property, the use equipment. manual, they may departmental owned motor Like the organizational scope. Administrative regulations this sense should not confused with ordinance rules and regulations issued administra

of

reporting damage,

for example, the use

of

or

be

of

rarely required unless relations with the council make such action expedient. Administrative regulations are prepared for the continuing guidance employees. They are briefer, less detailed than the manual, and may issued, amended, rescinded without prior legislative approval. Such regu

*

º

on

of

*

of

analyst see Comstock For detailed consideration the functions the administrative Glaser, Administrative Procedure (American Council Public Affairs, Washington, D. C., 1941), pp. 143–146. “V. Administrative Codes, Rules, and Regulations,” loc. cit,

Ch.

THE ADMINISTRATIVE MACHINE IN MOTION *

11]

169

It

is difficult to generalize upon the advisability or extent of written manuals and procedures. There are many organizations and administrators of good repute who in practice use a minimum of formal written rules and regulations. The inquirer will usually elicit the observation that it would be “nice” to have more written procedures if there were only time and money to prepare them. There is another situation which constantly chal lenges explanation,

namely, the frequency with which one runs across manuals which originated in a burst of enthusiasm but have fallen into disuse and have not been kept up to date. There seem to be at least three

its

broad generalizations which can be made with assurance upon this subject. First, the larger and more far-flung an organization becomes, the more

in all

to

in

it

is

of

to

desirable it seems to reduce administrative procédures and policies writing. This especially true those units which have extensive field Thus, better-managed services. the federal bureaus have found desirable issue administrative manuals which are maintained uniform loose-leaf

or to to as

in

of

of

of

parts

a

in

the United States. They have also introduced some uniformity the numbering and filing the mimeographed circulars information which are common feature the federal field services. binders

in a is

of

an is

frequently

found

in

operation.

It

particular

is in

a

in

of

Second, the type commonly referred written procedure which the standard practice manual often useful new organization, up organization. clean bad situation old This kind document analyzes and describes detail the exact procedures and systems for each large clerical establishments

or

a

of

be

is

having several hundred people doing work which both routine and similar. Examples would huge public utility, the customer accounting division

of

a

machine accounting installation for state employment insurance. The fact that such manuals fall into disuse and become out date need not

no

it

a

new and orderly procedure. With the organization functioning longer became necessary accordance with the revised methods, consult the manual constantly.

with

to in

to

its

in

by

in

of

mean that they have not been useful their day. The preparation the written procedures the beginning was undoubtedly merely one phase problems and emerge which the management was able think through

of

a

a

to

be

to

of

of

of

of

higher administrative strategy. the level lays the recent manuals out the plan attack for typical large fires where hundreds case men have sum

of

situations

in

Thus, one

to

shovel, they are graduated

up

of

of

is

of

is

no

is

of

as

Third, written manuals and procedures are extremely important tools training. Those organizations which wholeheartedly adopt in-service prob training automatically find themselves preparing manuals. There nonmilitary ably organization where training part federal more everyday life than the case the United States Forest Service. Its fine training manuals constitute the essence scientific management. Be ginning, for the novice, with the detailed methods how handle

ORGANIZATION AND COORDINATION.

I68

[Ch.

11

fact that it is only one form of job analysis. The job analyst from the personnel department is ordinarily confined to analyzing and classifying

It is generally outside his purview to devise better ways of doir job, although it is his duty to discover whether the incumbent of the position is performing the duties prescribed for him, that whether working not “out class.” of

he is

is,

jobs.

to

devising better

c

do

it

of

of

the administrative mentality management, performing functions sion, and liaison.

action

is

Written Procedures.—A administrative

is

he

he is

in

of

the work, helping them better and analyst from the planning department beco to

those who

creative and dynan the office, cons

do

of

a

of

to

job analysis many angles, his approach poring over mass questionnaires side

of

is a

in

of

in

to

in

it

done. He often more interested the flow position than individual positions. While job analysis approaching the question large variety way position

or

is

or

of

work with the objective

of w

getting

is

It

every possible aspect

is of

in

is

other hand,

performed

analyst

in

the management planning division, concerned with seeing whether not the work possible the best manner." his responsibility

The administrative

readily

coordin.

available, comprehe

the so-called administrative

may

a

or

be

considerably more detailed material than the code referre may separate manuals covering such distinct proce purchasing, budgeting, either within single deſ.

by

its

in

by

to

is

designed especiall whole organization. The manual ployees, emphasizing how certain definite tasks are often prepared staff specialists close touch wir

tº

i

the municipal level, enactment the council rarely required unless relations with the council mal Administrative regulations are prepared for

They are briefer, less detailed than issued, amended, rescinded without prior legisl of

:

~

--

damage, government property, owned motor equipment. Like the manual, organizational scope. Administrative regul confused with ordinance rules and regul: tive body (often termed subordinate legis' and privileges citizens.”

-- is: -----s

to

reporting

for example, the use

-

of

lations may concern,

of

or

employees.

in

tº

ird

*

-

- >

º

-

of

of

*

ºro

ºrg

be

7

For detailed consideration of the functions Glaser, Administrative Procedure (American Cou. 1941), pp. 143–146. “V. Administrative Codes, Rules, and Reg.

=f

-º ---is

`ISTRATIVE MACHINE IN MOTION

171

perform

ºng units need to supervise the

ºny down

the hierarchy.

Otherwise

in this respect will not be

'eeping activities, es for each "sing.

ad ler a eau

of

example units

can

Budget,

me

sion 1

on

Ad

the State

of

was embodied in

of which

statement

ntegrated bureau of nance are usually re ndependent status. For red to Chapter 22 below, hat the central housekeeping ºl more prevalent, but that the s

partment or bureau has achieved for accounting, budgetary and as

still regarded

financial activities

a

is

It

years.

in

e

ºnt

enue collection, and personnel have

single

good

unit.”

activities which usually are not ultimately ire concentrated few units effected, these items such concentration

be

a

which has achieved certain size. hasing office will given charge

a

dis

remedy

printing,

unusable equipment, and the control Some central housekeeping unit will most surely

of

salvaging

even

To of

uneconomically and wastefully,

or

is

!

in

seeping

of. cit., pp. 52–80.

in

of

&

p.

of

w

in tº

ºf

p.

unicipal Finance (The Macmillan Co., New York, 1926), Budgeting (Harper Bros., New York, 1929), pp. 291–295; cation State Governments the United States (Columbia York, 1938), pp. 59, 83, 89, 112, 118, 191, 217, 244. Municipal Administration, op. cit., 204.

ORGANIZATION AND COORDINATION

170

[Ch.

11

it

of

in

all

moned and deployed in the space of an hour or two. Job analysis has been carried to the extent of working out mathematically the rate of fatigue for training, men on the fire line. While this is done the name

of

by

service manuals. The manuals and regulations

the numerous

Authoritative Coordinating

guide and facilitate

to

to

all these administrative give continuous training and information line supervision and top management.

is

of

sive and vital part played there

principal objective

of

is

in

of

is a

be

management, should noted that training constant everyday aspect Anyone permeating the most remote corners the far-flung organization. military experience very who has had the service aware the exten

Devices.—It has already

both

been pointed out

it

is

by

be

to

It

be

goes without that coordination can both voluntary and authoritative. saying that the best results are securing voluntary and achieved spontaneous cooperation through leadership. Indeed, wise for adminis

done. The paragraphs immediately preceding have already mentioned one authoritative coordinating device, namely, the rule law.

of

be

that things

to

to

of

in

to

strive for voluntary and willing response even those cases However, they possess strong powers compulsion. where realism com pels one recognize that administrative officers possess authority require

trators

Rule

Law and Order.—Every

a of a

In

of

In

of

management situation must have public rule law and order. the service these include the hierarchy addition, there are laws governing administration mentioned above. number of instruments of law and order which lie within the discretion of management. These include administrative manuals, written circulars, state ments, published descriptions, organization charts, work flow charts, and the orders issued by supervisors. There are also the unwritten and informal these appertain groups compos

Supervision

universally

rule

of

a

creator,

of

Central

to

possess, no less than

its

it

it.

its

to

of

traditions, customs, and long-standing practices. Some the service unit itself and others emanate from the social ing form, the administrative organization, Whatever performs the state the functions which give life and

through which substance, must

law and order.

Housekeeping—It has

been

found almost

of go

of

looking

with

ad

avoiding

substantially the same “auxil the Training Civil Servants as

p. of

to

or

.

(H.

work, meaning “establishment” “housekeeping." Report the Committee on M. Sta. Office, London, 1944), 14.

of

"The British, refer

iary"

a

is

"

is

be

cedure that the line officers should relieved the necessity after the purely business and housekeeping activities which However, pursuits. merely polite way ministrative this

of

a

as

desirable have functional units immediately under the chief finance, personnel, and administrative officer dealing with such subjects pro general administration. given very frequently The reason for such

Ch.

THE ADMINISTRATIVE

11]

MACHINE IN MOTION

171

a

be

in

of

as

of

is, to

to

separate the various housekeeping activities, independent personnel office and separate offices for each that have an accounting, treasury, and purchasing. the financial functions such strong trend public ad There has been the underlying philosophy is

The general practice

in

a

of

all

the fact that the central housekeeping units need to supervise the perform ance of their respective activities the way down the hierarchy. Otherwise uniformly high standard accomplishment this respect will not attained.

of

of a

is

as

F.

to

or

auxiliary staff activities under place the housekeeping ministration single organization unit, which W. Willoughby would call the bureau Treasury general administration. The British cited the ideal example

of

of

of

on

of

of

organ general administration. Some American units approach concept which this are the United States Bureau the Budget, finance, the Massachusetts Commission some state departments Ad Finance, Department ministration and and the Executive the State a

full-fledged

New York.10 in

of

re of

of

E. of

is

contained general administration

A.

of

of

general administration was embodied the bureau department finance, the best statement the central which the writings Buck.” The integrated bureau

in

of

the concept

of

The theory

finance are usually sisted other officials who want retain their independent status. For complete Chapter 22 below, more discussion the reader referred dealing with financial organization. is

a

present trends indicates that the central housekeeping

of

An appraisal

auxiliary units are becoming stronger and more prevalent, but that the or

or

to

to

by

and central department

a

to

proposal integrate them under single department bureau has achieved only partial success. The central offices for accounting, budgetary and as

a

in

a

in

even

dis

To remedy of

a

be

a

an

be

handled uneconomically and wastefully, honestly, organization which has achieved certain size. situation, the purchasing office will given charge such

in

will almost always

or

is

an

of

housekeeping activities which usually are not number beginning, the but are ultimately concentrated few units organization grows. Until such concentration effected, these items

There are integrated as

a

to

in

is

It

in

administrative research, purchasing, revenue collection, and personnel have grown unquestionably stronger good recent years. still regarded integrate the financial activities single unit.” administrative theory

printing,

of

of

warehousing, disposal and salvaging unusable equipment, and the control equipment generally. Some central housekeeping unit will most surely *

p.

et

E. F.

p.

of

**

in

&

E.

** 10

Willoughby, op. cit., pp. 52–80. al., Municipal Finance (The Macmillan Co., New York, 1926), A. Buck Buck, Public Budgeting (Harper Bros., New York, 1929), pp. 291-295; 17 ff.; A. A. E. Buck, The Reorganication of State Governments the United States (Columbia University Press, New York, 1938), pp. 59, 83, 89, 112, 118, 191, 217, 244. Municipal Administration, op. cit., The Technique 204.

W.

of

11

all

of

the insurance policies, and the same will the acquisition, sale, and leasing real estate and right-of-way. found desirable establish central mailing room where a

be

[Ch.

by

of

will

with handling

to

be

true

It

be charged

all

ORGANIZATION AND COORDINATION

172.

is

It to

of

a

to is

be

mail will metered and audited the sampling method see that the mailing privilege being personal purposes. frequently not abused for found desirable establish central transportation unit which will control

-

by

a

is

in

of

not only government automobiles but also mileage paid for the use private automobiles. The maintenance and housing automotive equip single unit. ment often placed

The line departments usually are irked

central housekeeping However, facts and figures these

by

be

It

of

of in

all

to

be

of

alleged delay and red tape. controls because usually can mustered demonstrate overwhelmingly the case for such housekeeping control savings and economy. terms should re personnel performed membered that not the financial and activities are each department and bureau frequently has personnel its own and financial officers. The ideal striven for con templates the central units exercising not stern coercive control, but trying bring about uniformity, voluntarily and cooperatively. The a

by

to

be

strengthen the line rather than all staff agencies should usurp authority. To sure, auxiliary staff units their very nature Thus, require certain powers personnel agency control. the must have classifying positions and establishing eligibles the final word list

of

a

in

in

of

to

be

objective

of to

as

as

to

be

these central units, because

the line workers, the more effective central house

Control Through Information.—The

big problem

in

ments and sympathies keeping will become.

of

in

be

to

to

to

to

for appointment. So must the accounting office have the power hold departments within their appropriation allowance and require them confine their purchases standard items. But the more these controls economically can exercised and effectively accordance with the senti

large-scale public

securing information, information not only for the adminis trators, executives, and supervisors responsible for getting the work done, but also for the citizen and taxpayer. Information the lifeblood on

is

of

is

organization

be

is

is

it

it

a

of

or

it

managerial operations, whether for the general the battlefield, the manager factory, going the street foreman—all must know what They quickly accurately good, bad, on. must know and and whether

or

needs

great deal more

of

America

a

The public service

of

ing records.

to

of

of

is

in

or

public administration indifferent. The crying need better account ing, recording, and reporting. Investigating committees complain the of, of, difficulty elementary their task due the lack nature account

train

as a

a

a

as

as

a

in

ing, development, and professionalization accounting, record the field keeping, and statistics. To require strong deterrent against record acts powerful incentive toward wrongdoing respectable standard well

Ch. 11]

THE ADMINISTRATIVE

MACHINE IN MOTION

I73

If an

of achievement.

officer is required to record his achievements, he does not want to hazard a felony charge of falsifying a public record. Every administrator should have a constant stream of reports coming to him periodically and regularly. Some will deal with such housekeeping activities as budgetary operations and personnel, but the head of the func tional unit will probably be more interested in the general purpose functions

for which his unit chiefly exists. Thus, the chief of police will receive a daily report showing the various categories of crime activity in each of the several precinct stations, the captains of which assemble the data from the reports which sergeants have in turn received from individual patrolmen. The chief's master report will probably show totals for the same period a year ago, and various other comparisons. The data which compose these reports will be compiled into the monthly report to be sent to the city man ager or mayor. The latter official will have similar reports from every department in the city.” Everyone's time can be used more effectively by discussing concise reports weekly, rather than running to the chief with every little happening.”

all

as

all

as

all

he

However, the administrator who relies entirely upon written reports and office conferences for his information may not know that should know.about his organization. He should get into the field himself often possible,” but should see above regular else that there exist and fre

up

Control Activities.—During World War

II

to

in

to

be

quent face-to-face contacts between superior and subordinate the way superior hierarchy. down the These contacts should not confined the relationship, subordinate for workers the staff units need have fre quent contacts with line and operating personnel. our fighting

services set

of

is

in

to

be

a

management staff services which they called “control” units, term which probably can attributed the writings Henri Fayol.” To him being carried out control meant “seeing that everything accordance

with the plan which has

been adopted, the orders which have been given,

a

is

is

a

by

in

be

to

point out which have been laid down. Its object mistakes order that they may rectified and prevented from occurring again.”” Thus manager controls satisfying himself that plan exists, organization sound, being properly handled, that the the material that is

and the principles

operations are progressing well, that finances are being accounted for, and

.

p.

O.

84

º

p.

&

!, 10

jºb)

of

of

in

of

of

p.

15 ** 13

-

Ibid., pp. 92–98, 105–128. Glaser, op. cit., 115. Agriculture assigns officials from Washington and from the field The Department for periods service with the other branch order that they each become better acquainted Wolcott, with the characteristic problems the other. See John M. Gaus and Leon. Agriculture (Public Adminis Public Administration and the United States Department tration Service, Chicago, 1940), 270. Henri Fayol, Industrial and General Administration (Translated from the French by Sons, Ltd., London, 1930), pp. (Sir Isaac Pitman bid., 77.

I74

ORGANIZATION AND COORDINATION

[Ch.

11

It is the process of seeing that there interfunctioning is the smoothest of the parts, that coordination, unity, integration, and organization are present in large degree.” The control units established by the Army Service Forces were probably that orderly information is available.

to illustrate the concept. A control unit was established in Washington directly under the commanding general of the Army Service Forces, and similar units in subordinate echelons ultimately numbered almost 400. These units had no operating authority or responsi sufficiently

representative

bility, nor did they duplicate or interfere with existing staff services. Their approach was essentially one of fact finding and research for the purpose of discovering delays, deficiencies, and possible improvements, and the formulation of measures for correction. Examples of actual problems tackled were the scheduling of men in and out of training schools, the development and installation of personnel procedures, and the decentraliza tion of authority to the field commanders. It undertook a thoroughgoing program of work simplification, introducing such techniques as process and layout charting; and developed systems of work measurement.” used in this sense somewhat belies any

The word “control” when

coer

cive connotation which the term may have in common parlance. The spirit of the work is based on the techniques of fact finding coupled with partici and the winning of hearts as well as minds. In other words, control people do not devise plans in an ivory tower and impose them arbitrarily upon operating units. They may bring pressures

pation, persuasion, instruction,

work will have they can secure the cooperation of the organiza

to bear from above in certain recalcitrant greater long-run success if tion as a whole through voluntary

cases, but their

methods.

Work Simplification by Supervisors.-It is

well and desirable to have devoting studying staff units their entire time to how to improve manage ment, but the effort must secure the cooperation of the line. The lower

supervisor must be made conscious of this problem and trained in appropri ate methods. During World War both industry and governmental agen cies accelerated their training of supervisors by including instruction in

II

courses being “JMT,” some instances such training was tied in with employee suggestion program the and extended to the rank-and-file workers. They were taught how to look for short-cuts and improvements, requested

Work Simplification, one of Job Methods Training.” In

the original

trio of

“J”

* Mary Administration, P. Follett, “The p.

Process of Control,” in Gulick and Urwick, Papers on the of 168. Robinson, “Management **C. F. Control in the ASF,” Public Administration Review (Autumn, 1944), Vol. 4, pp. 260-267; H. A. Barnes, “Control Activities in the Quarter master Corps," ibid., pp. 298–308, both reprinted in Administrative Management in the Service Forces (Public Administration Service, Chicago, 1944), No. 90, pp. 4–13, Science

§":

* Discussed

at greater length in the Chapter

on

Training, infra, Chapter 21.

work site Pufic ATION PROGRAM PROCESS CHART Certification— UNIT Division, BRANCH, ETC.—fleld–

PRocess CHARTED-certification. Procedure October 15,

Elº :

5

3

DESCRIPTION OF EACH STEP

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(showwhat is done who does tº

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to to

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32

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31

33

Tºº To typist

38

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draft

statement typed

--

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A

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1105, 985| 13 14 14

41

44

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||

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basket

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8

20

section chief incoming

35

37

prepared

basket

Draft revised for conformance

CCoA Dlso A D 40

so

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30

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In

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120

deas

recommendations

29

||

130

D

OO D O oA O D

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clerk

typist

28

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dictated

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to

OO

50

correspondence

17| Acknowl 18

ONZS D

130

outgoing basket section chief incoming basket

Reviewed and signed to

-

--

-

-

showing Process Chart. Two such charts are prepared for each study, one existing practice, another the suggested simplified process. Courtesy

Bureau

of

15.

||

[]

C[o A. D. 60

incoming basket

Case checked against file for change

Dllel

A

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case

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|

12|

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120

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10

120

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tº

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DISTRIBUTION

r

*

WORK total

n

in

Work Distribution Chart.

16.

Courtesy

Bureau

of

Figure

f

in

f

by

n

activitytheprope, ºposesform. Activitiesi theordero importance thefirst column. Tasks sed,employeeeach employee ecºy. grude responsibility.total Hoursforeach andforeach twºortes noma, andworking title (notcivilservice title)i ordero their

the

Budget.

of of

if

is

a

to

them through suggestion boxes conveniently located near work, and given cash award the proposal was accepted. governmental activity dominantly clerical and the routines Normal day-to-day management are largely concerned with the processing submit

of

so

of

a

of

continued.

is

paper work, fundamental problem the simplification unnecessary steps, and seeing that obsolete practices are dis paper work becomes The pyramiding the load burden

papers. Hence, abolishing

Ch. 11]

THE ADMINISTRATIVE

MACHINE IN MOTION

177

some that many creative and imaginative administrators

rebel at what they pushing”; “paper call it ties them to their desks on routine matters when they should be devoting their time to planning and solving larger problems. This preoccupation with clerical tasks becomes stultifying in that it makes

to

a

is

to

a

it,

operations so dependent on the clerical type of mind, giving promotional advantage to those who possess person combined with seniority. Such pre likely great respect precedent, have for tradition and desire the Budget has inaugurated for supervisors, applicable to

of

The United States Bureau training program

Simplification

all a

serve the status quo, and regard change with suspicion.

Work

to

of

to

of

It

of

federal getting the operating agencies consists hold confer supervisors wherein conference discussion alternates with on-the ences job practice. Special graphical instruction techniques have been devised departments.

in

improvement

industry,

often being used

in

a

a

a

of

three basic work simplification techniques: (1) labor; (2) chart, the work distribution device for analyzing division the process chart, device for analyzing work flow; and (3) the work process count.” The chart has long been familiar device for management present the elements

connection with the layout

chart, showing where furniture and machines are placed.

Inspection has long been

factory the word arouses apprehen

acknowledged and essential phase

However, the mere mention among governmental pathological aver sion workers. They have almost sion for “snooping.” Nevertheless, well-managed federal organizations a

of

production.”

of

an

Inspection and Investigation

by

on

be

by

as

as

to

In

it

a

of

practice securing possible. Undoubt make much field inspection edly, the aversion toward considerably proper training. can reduced addition the inspection carried the functional supervisors from to

of

do

to

of

a

of

as

be

expect and accept outside the immediate unit, the workers should led inspection regular part the duties their immediate line supervisors. “investigation” usually The word refers undercover examination into to

of

its

as

of

it

to

derelictions having with property and finance. Most the large necessary federal departments have found establish some such inves tigation unit Inspection the Post Office Service.” The Department Agriculture has devolved this duty upon Office Personnel.”

**

Gaus and Wolcott,

op. cit., pp. 335-336.

of

in

S.

U.

B.

of

23

22

6,

21

Harry H. Fite, “Training Supervisors Management Analysis.” Public Personnel pp. 91-98; Review (April, 1945), Vol. Bureau the Budget, Work Simplification (Public Administration Service, Chicago, 1945), No. 91, 49 pp. Cornell, Organization and Management (The Ronald Press Co., New See William York, 1938), pp. 361-383. Annual Report the Postmaster General for the Fiscal Year ending June 30, 1946 (Government Printing Office, Washington, D. C., 1941), pp. 76–86; Karl Baarsleg, “Why Your Valuable Letters Are Seldom Stolen,” Reader's Digest (June, 1941), pp. 50–52.

178

ORGANIZATION AND COORDINATION

[Ch.

11

A

recent survey of New Deal relief activities referred to the general honesty of the Work Projects Administration and gave credit to its Division

of Investigation.”

In

One of the most interesting agencies of this type is the Department of vestigation of New York City. It is headed by a Commissioner of Investiga tion appointed by the mayor. He is authorized to investigate any municipal

department, function, or activity when directed by the mayor or the council, or upon his own initiative. He has the power to compel the attendance of witnesses, to administer oaths, and to examine such persons as he may deem necessary. The department has had a somewhat checkered career, being aggressive when reform mayors were in power and quiescent when Tammany reigned. During Mayor La Guardia's administration it has been especially effective in running down the corruption remaining from the old Tammany régime.” -

Internal Checks.-The administrator at the top of a hierarchy will have control of his organization to the extent that he has established effective internal checks. By an internal check is meant a device or arrangement whereby the work of one employee or unit is checked by one or more others. Here again the stigma of “snooping” is directed at a managerial device which is innocent, harmless, and essential if operated in the proper spirit.

It

need not be too obviously aimed at dishonesty, but rather directed toward

guarding against the consequences of human frailties. Good workers should, and do, welcome those automatic checks which will reveal honest errors in time to be corrected before causing serious consequences. They should welcome the protection which such automatic checks afford them against being charged with the misdeeds of others. This is particularly true of those responsible for the handling of money.

The principle of internal checks is the most obvious in financial adminis tration. Because financial checks are treated more fully in a later chapter, only one or two examples will be mentioned here. The most effective tool of financial supervision is the administrative audit conducted by auditors from the comptroller's office who are constantly working in the other de partments.

The effectiveness of budgetary control rests largely upon the pre-audit by the comptroller's office of proposed expenditures, which has the power to hold up the incurring of obligations in excess of the amount appropriated.

The principle of internal checks can, and should be, applied to man agerial control of nonfinancial activities as well. Thus, it is common prac ** Arthur W. Macmahon, John D. Millett, and Gladys Ogden, The Administration of Federal Work Relief (Public Administration Service, Chicago, 1941), pp. 236–238. Harold Seidman, Investigating Municipal Administration (Institute of Public Adminis tration, Columbia University, New York, 1941), p. 103.

*

Ch.

THE ADMINISTRATIVE MACHINE IN MOTION

11]

179

tice for civil service agencies to check payrolls against the roster and disallow payment of those not properly employed. The Farm Credit Administration has a visé unit which checks all outgoing correspondence for style, spelling, punctuation, and format, as well as for conformity to policy. The City

Health Departments are constantly checking the water supply for bacterial content. The use of serially numbered stationery with several carbon copies is an almost indispensable tool for checks. Thus, a decade ago one heard a great deal about the “fixing” of traffic citations. While the disappearance of this despicable practice is undoubtedly due to popular sentiment, the fact remains that it has been accomplished almost universally by an improved record keeping system which permits internal checks. Thus, the officer's citation is made out so that the original goes to the offender, a carbon to the traffic courts, a carbon remains in the officer's book, and frequently another carbon goes to the city comptroller for auditing purposes. In order to “fix” a citation under a system of rigid internal auditing, the record

would have to be altered in an identical way on all of these copies filed in three or four different places. Follow-up or tickler files are frequently maintained to see that various matters, such as complaints, are properly handled and not permitted to lapse through lack of attention. It is often desirable to route carbon copies of correspondence through the desks of persons other than those who do the dictating.

SELECTED READINGs BOOKS AND MONOGRAPHS

J. How to Make and Interpret Functional Organization Charts. (Grad Division for Training in Public Service, New York University, New York, 1943), 64 pp. Glaser, Comstock. Administrative Procedure. (American Council on Public Affairs, Washington, D. C., 1941), pp. 112–134. MacEachern, Organization and Management. (Physicians' Malcolm T. Hospital Record Co., Chicago, 1935), pp. 77–116. Macmahon, Arthur W., Millett, John D., and Ogden, Gladys. The Administration of Federal Work Relief. (Public Administration Service, Chicago, 1941), pp. Furia, John uate

244–268.

Municipal

-

Model State Constitution. (National Municipal League, New York, 4th ed., 1941), 53 pp. Nolting, Orin F. Management Methods in City Government. (International City National

League.

Managers' Assn., Chicago, 1942), 60 pp. Payne, John. “Management of a Passenger Car Fleet,” Case Reports in Public ministration. (Public Administration Service, Chicago, 1942), No. 65, 6 pp.

Ad

J. M. Research Methods in Public Administration. (The Ronald Press Co., New York, 1940), 447 pp. Unsigned. The Technique of Municipal Administration. (The Institute for Training in Municipal Administration, Chicago, 1940), 512 pp. Urwick, L. The Elements of Administration. (Harper & Bros., New York, 1943),

Pfiffner,

pp. 97-116.

18o

ORGANIZATION AND COORDINATION

[Ch.

11

Department, Civilian Personnel Division, Office of the Secretary of War. Ad ministrative Planning Agencies in the Federal Government. (Government Print ing Office, Washington, D. C., February 28, 1942, mimeo.), 195 pp. Wilson, O. W. Police Records, Their Installation and Use. (Public Administra tion Service, Chicago, 1942), 336 pp.

War

PERIODICALS “Why Your Valuable Letters Are Seldom Stolen.” Reader’s Digest (June, 1941), pp. 50–52. Barnes, H. A. “Control Activities in the Quartermaster Corps.” Public Adminis tration Review (Autumn, 1944), Vol. 4, pp. 298–308. Finer, Herman. “Responsibility in Democratic Government.” Public Administration Review (Summer, 1941), Vol. 1, pp. 335–350. Millett, John D., and Rogers, Lindsay. “The Legislative Veto and the Reorganiza tion Act of 1939.” Public Administration Review (Winter, 1941), Vol. 1, pp. Baarsleg, Karl.

176—189.

“The Organizational Structure of the Army Service Forces.” Pub lic Administration Review (Autumn, 1944), Vol. 4, pp. 268–278. Pinney, Harvey. “Institutionalizing Administrative Controls.” American Political Science Review (February, 1944), Vol. 38, pp. 79–88. Robinson, C. F. “Management Control in the Army Service Forces.” Public Ad ministration Review (Autumn, 1944), Vol. 4, pp. 260–267. Unsigned. “Ickes's OGPU-The Secret ‘600'.” New Outlook (May, 1935), pp. 17– Millett, John D.

21.

CHAPTER

12

VOLUNTARY COORDINATING DEVICES

be

It is the more the surface, where, apparent. The

to

as a

of

be

on

both individuals and groups will resist coordination. vexing because such resistance may not visible fact, acquiescence matter wholehearted seems

all

The most difficult problem in coordination is psychological in nature, for

as of

to

to

to

of

by

of

In

be

go

is to

of it

to

is

of

that the most effective techniques coordination are those which people being make want coordinated. other words, instead working together required through the form authority the whip, much better induce people want work together the result

delays

by of

so

It

be

done, “or else.” leading advocate the conference method points out that the conferring are ordinarily much less than the subsequent delays to

issue an order and require

it

quicker

of

However,

to

easier

a

or

be

of

be

to

be

of

is

of

in

their own sentiments, desires, and convictions, voluntarily acquired. surely This philosophy administration line with the underlying tenets Anglo-Saxon political democracy. There may those who are impatient conferring, educating, and with what they consider the dilatoriness cajoling people into doing what should done. seems ever much result

to

or

to

it

of

in

to

is

It

in

failure confer advance." undoubtedly true that great emergencies the stress becomes modify temporarily, some normal administra necessary lay aside,

caused

its

its to

to

to

tion how democratic administration when necessary.”

have them meet face

a

It of

a

to

to is

to

a

based squarely upon

to

get them want work together face and confer upon common problems. One to

work together. The best way to

is to

to

to

management and supervision assumes that the best way want

democratic policy from normal and long-run viewpoint. get people work together have them

is

The following discussion

magnificent illustra was rather adapt epic emergencies can itself to

of

procedural safeguards were ill-advised;

it

in

in

tive procedures and devices. Thus, the United States Civil Service Com mission, order render 24-hour service the defense departments II, during World War cut straight through normal procedural safe guards get order action. This did not mean that normal peacetime

in

-

p.

D.

I,

*

*

(Society Lawrence A. Appley, The Human Element Personnel Management for C., January, 1941), Personnel Administration, Washington, 24. Herbert Emmerich, “Administrative Normalcy. Impedes Defense,” Public Adminis pp. 317–325. tration Review (Summer, 1941), Vol. 181

ORGANIZATION AND COORDINATION

182

[Ch.

12

of the first tasks is to get them to realize that they do possess com mon problems; for in spite of varying functional approaches, coordination must constantly struggle to break through the walls of functional compart ments and isolation. Its best weapons of approach have proved to be those of diplomacy rather than force. Excessive Functional Isolation.—There has already been a sufficiently full discussion above of the compartmentalizing tendencies of functional professional groups.” The functional specialists like to gather by themselves where they can work for group unity, which in turn breeds strong feelings for group security. The intrusion of the outsider, especially the lay out sider, is resented and resisted from a management and performance stand point. This group solidarity may tend to obstruct the adoption of improved methods.”

Unified Institutional Spirit The strongest integrating force in any organization is that group spirit which cuts across functional lines, and which has variously been called morale, esprit de corps, and the service motive." Because these terms are controversial, trite, and hackneyed to many people, the expression “institu

tional spirit” is ventured

as possibly approaching a description

of intangibles to which reference is

of that maze

Whatever designation may

made.

be

used, it is something which cannot be artificially concocted in the offices of management and effectively instilled by pep talks. Healthy and loyal insti tutional spirit must spring from the innermost group sentiments of the

of

in

at

of

its

conception must issue from enlight To be sure, management leadership ened and the top, but the actual building the thing itself must take place the minds, sentiments, yearnings, apprehen sions, and satisfactions the workers themselves. Whether the institu

workers themselves.

is to

in

in

work together happily, firm the they doing socially ingredient conviction that what are useful. The chief creative, humane, and the formula which produces institutional spirit inspiring personnel policy intelligently administered. By personnel policy

Public

this phase see Cambridge, 1941),

Administration

Roethlisberger,

194 pp.

(July,

of

a

is

Administration,”

J.

of

*

an

pp. 268–269. For extended treatment Morale (Harvard University Press,

Vol.

competitive tests and the classification

F.

XIII,

of

4.

Supra, Chapter Urwick, “A Republic

of

not meant merely the giving * * L.

is

in

turn generated by getting people

is

to

or

is

as

as

to

be

or

positive negative depends upon the extent tional spirit will which the directing heads and the first-line supervisors recognize the workers adult human beings and treat them such. generated by producing job satisfaction for every Institutional spirit worker down the lowest-paid clerk laborer. Job satisfaction

1935),

Management

and

Ch.

12]

VOLUNTARY COORDINATING DEVICES

183

positions.

Those things are necessary, but far more important from the standpoint of institutional spirit are training and creative leadership. Find an organization where every phase of management is inseparably fused with training and that organization will almost surely have institutional spirit. One senses from casual contacts that conditions approach this status in such units as the United States Forest Service (undoubtedly in the De partment of Agriculture in general), the Tennessee Valley Authority, and the United States Bureau of Prisons. Institutional spirit must be fostered by effective supervision at the lower levels, such as is referred to at greater length below.

Consultative Approach Any management action can

be most sure of success when it has the approval of those whom it affects. Talking things over in advance of action may often tax patience, but it also reveals and tends to dissolve obstructions which would produce delay during the action phase. This is only one reason

why consultation and conference techniques of good management.

within reasonable limitations are normal The consultative approach also produces

spirit by making staff members feel that they are impor tant as individuals and that their opinions relative to the operation of the organization are welcome and receive consideration. Mary P. Follett and

good institutional

of the conference have stated that the contacts of human minds when thinking together in this manner become highly creative, imagi other advocates

native, and inventive, generating not have come out rately."

ideas and plans of action which would

of the brains of the conference members acting sepa

Consultative techniques are also widely used for in-service training under the name of the “conference method.” The utilization of staff con ferences seems to depend upon the temperament of the men at the top, the nature of the work being done, the pressure of getting out the work, and many other factors. Consultation will not succeed unless the man at the top wants to do things that way. If his temperament is such that he wants to make the decisions himself, issue er parte orders, and have them obeyed unquestioningly, there is obviously no place for the conference. Again, if the organization is well staffed and of long standing, there may not be so necessity for conferences to think through unexplored problems. However, there is ample evidence that the man at the top will be most effective if he will but listen to the reactions of his subordinates in an atmosphere of free expression. This does not have to be in the formal,

much

periodical

staff conferences

* Mary P. Follett, Creative f., 212–216, 240–242.

pp. 156

which

unit chiefs

Erperience (Longmans.

are required Green

& Co.,

to attend at

New York, 1924),

ORGANIZATION AND COORDINATION

184

[Ch.

12

it

as

as

it,

whatever sacrifice. There needs to be more study of the staff conference to determine how not to use well how and when should take

to

at

stated time whether

or

week

a

get together once

at a

a

be

If

the consultative spirit dominates those the top, vital and pro ductive conferences will constantly spring up spontaneously; and this may much happier situation than when the division heads are ordered place.

not they have anything

to talk about."

a of

a

of

it

to

a

so

to

is

to

is

In

is

to

as

of

as

mediator contributing absolute minimum substantive information. Some authorities go far claim that the best leader one who not familiar with the subject any case the leader supposed keep the matter under discussion. participate, pacify antagonisms, discussion on the main issue, induce all conference

method the leader acts merely

an

at a

it

on

of

be

is

in of

method for training supervisors that the con ference, the techniques which will more fully described the chap personnel. Suffice say here that gathering ters consists not more than twenty supervisors who discuss common problems under leader who stands blackboard and records the results. Under the free

The dominant

to is

is

in

It

of

and curb the loquaciousness individuals. stimulated, method that interest contrast

urged for the conference

the lecture method where expected crystallize the expe

is

of

rience and thinking

to

a

is

is at

minimum. The conference persons with many years of-combined experience. The important training value that consideration and practices may, perhaps for interest

be

the first time, tion together has

Furthermore,

in

of

of

or

a

It

of

a

forth

perspective.

their delibera creative, inventive, and imaginative phase wherein the any one collective thinking goes beyond the experience the individuals present. appears worth while that summary conference results set

to

supervisory

definite aid

a

later

training cannot exist unless the

of

a

democratic attitude toward

of

on

be

of

an

willing

to

at

management and are suffer the embarrassments the consultative approach. An organization which adopts policy internal free speech must expect ques that questions vital policy will asked. These are the kinds men

the top have

of

The conference method

would constitute at

and any specific decisions reached. Thus guide valuable and reference for supervisors and conferences.

a

inquiries,

it

to

of

as

be

typed up mimeographed and made available should the various participants. This could include such items problems discussed, authori pertinent tative interpretations administrative regulations, responses

labeled

because

of

so

matters are not

to

in

the past management has liked assume involved confiden tial considerations which prevented their being aired before the employee group. Close scrutiny usually reveals that these so-called confidential tions which

their intrinsic delicacy but rather 1,

7

Fritz Morstein Marx, “Policy Formulation and the Administrative Process,” American pp. 55–60. Political Science Review (February, 1939), Vol. XXXIII, No

Ch.

VOLUNTARY COORDINATING DEVICES

12]

185

because management has chosen to-fence off a domain of privacy. In other words, the temperamental attitudes and class outlook of management often prevent effective supervisory training because of unwillingness to permit the supervisors on the lower levels freely to discuss policy matters vital to the upbuilding of the institutional spirit referred to above. In any number of cases, it is quite probable that there exists an underlying fear that it

com

empha in

the public service are those becomes inseparable from the actual per approach exemplified the so-called Appley

in

sized enough that the elite organizations

be

it

The conference method of training should be, and frequently bined with actual day-to-day management. Indeed, can hardly

is,

would be difficult, if not impossible, to uphold reasonably before such a conference group some ill-advised or hastily thought-out managerial policy.

This

duties.

be

of

a

in

he

of

of

up

is of

a

is

of

which series conferences from the top words, down. other the first conference made the top level supervisors. Theoretically the leader this conference would the representa although, fact, may designate chief administrative officer

In

Method, the framework

in

formance

is

of

which constant in-service training

of

a

go

is

at

in

tive who more adept conference leadership. Those participating this conference would back and themselves hold similar series con ferences with their immediate subordinates on the next level. This would

of

by

up

on

of

of

of

on

is

of

an

go on down the hierarchy until all supervisors were covered. The educa facilitating the flow arrangement tional value such enhanced ways. information both The conferences the lower levels apprise the supervisors the sentiments the workers, and these are carried through the supervisorial ladder conferences. At the same time infor

must dominated management.”

the problems

be

by a

as

these conferences

a

be

through the same channels.” How regarded merely framework

of

conferences because consultative approach

to

of

in

mation flows the opposite direction ever, the Appley system should not

human,

by

The Coordination Officer a

be

to

an

of

is

in

a

is

good example this Department action necessarily cooperation with work carried out

its

of

Service much

as

servation agency,

of in

a

of

of

a

is

very fruitful function performed There often staff officer charged with coordinating the efforts separate the units that impinge Agriculture has used this upon common problem. The Department device, particularly affecting field work several bureaus. The Soil Con

2,

in

to

in

on

A

in

34

of

of L.

*

*

A. Appley, “An Educational Program for Employee Morale-Building,” Proceed ings the First Personnel Institute, May 12, 1938 (Ohio State University Publications, Columbus), College pp. 19–29. Commerce Conference Series No. Appley, The Human Element pp. For addi Personnel Management, op. cit., on, and evaluation of, the conference, and other employee training tional information methods, see Committee Employee Training the Public Service, Employee Training Report the Public Service, the Civil Service Assembly (Civil Service Assembly, Chicago, 1941), 172 pp.

ORGANIZATION AND COORDINATION

186

[Ch.

12

other bureaus and agencies. Here the coordinating officer is strictly an employee of the Soil Conservation Service rather than of the Department as a whole. His job consists of coordinating the action of his bureau with other bureaus and agencies working on the same problem. Not only is the amount of overlapping work reduced, but so also is much of the confusion which arises when too many of the personnel contact other agencies. Thus

is,

the number of individuals who must spend time arranging and making contacts with other agencies or governmental units is cut to a minimum. Frequently the need is primarily for liaison, that for knowing what

in to

of

as

of

in

of

to

in

doing

is

order avoid duplication. Those who came Washington and participated the work the new defense agencies especially necessity 1940 became aware the for liaison between such organizations the United States Civil Service Commission, the Employ

the other fellow

be

to

of

of

in a

of

ment Service, and the Office Production Management. As matter fact, the chief problems which had solved were largely the nature liaison, and many individuals were charged with coordination and

almost wholly along these lines. The responsibilities the administrative assistant are largely those constantly coordination and liaison. Acting staff man, contact with those who work the subdivisions under his chief. He acts as the

in

is

in

as a

he

of

of

responsibilities

latter's eyes, ears, and sometimes his voice. The successful administrative assistant not one who gives commands, but rather individual who by

is

an

in

all

of

in

of

he

he is

duces the desire for cooperation and action means which leave people with the impression that they have acted voluntarily. The administrative possession assistant secures action because the facts, because so

at

the

\

a

easing departmental friction while true coordinator, relieving same time his chief from burden and embarrassment.

become

at

a

to

is

he

of

in

department officials, and established himself the confidence adept reaching mainsprings because the human nature person can that men come correct decisions and like them. Such has

by

Coordinating Committees

In

of

of

of

is

of

The problem coordinated effort most aptly posed the findings the Great Plains Committee studying the problems the dust bowl. the words the committee, more

to

in

important Federal agencies, addition municipal governments and numerous types of districts which have been will formed under the provisions State laws, touch the problem the Great Plains some point or or

at

of

be

of

and

or

Some fifty State, county,

Committee, The Future C., December, 1936),

of

Great Plains Washington,

p.

Office,

D.

19

another.10 the 10.

Great

Plains

(Government

Printing

Ch.

VOLUNTARY COORDINATING DEVICES

12]

187

The device which has been widely used by the federal government to deal with problems of this kind has been the interdepartmental committee, of which approximately 400 are in existence. These consist of representatives of the agencies concerned who meet together. Sometimes they have secre taries and staffs. Occasionally they are temporary, but more often they tend to become more or less permanent in nature. Furthermore, each indi vidual department has found it necessary to create intradepartmental com mittees to work upon problems which cut across more than one bureau or subdivision. The Department of Agriculture alone has about 150 of these committees.”

The variety, purposes, and organization of this host of committees is a subject that in itself merits more space than is available here. Suffice it to say that their very existence in such numbers must surely indicate a con siderable field of usefulness. There are, however, a few brief generaliza tions that can be made here about the work of interdepartmental commit tees. In addition to strictly coordinative functions, they have been found useful for other kinds of administrative endeavor. They have been used to advantage in the exploration and drafting of legislative proposals and other research matters cutting across department lines; in the facilitation of the conduct of an administrative program having certain interdepart

similar problem. at

of

frequently leveled

of

on a

for several agencies working

of

of

in

of

fit

mental aspects but legally the sole responsibility of a single agency; in the actual collegial conduct of an administrative program which does not seem to into existing agencies, but which requires the combined, concerted several; and action the clearing information and exchange data

a

is

From

management

onerous, especially

become

upon

of of

on

to

of

by

a

Work

in

“Managing Committee (Spring, 1941), Vol.

I,

Glaser,

Agriculture has committees, -

re

moribund.” p.

Comstock

Administration Review

is

it

be

is

done. The Department with the systematic management as

or

experimenting

job

cently having abolished 160 11

lacking.

who serve several committees. Committees are they since must abolished the officials the agencies creating them. Thus possible for them live

after their particular been

to

committee service tends

certain key officials not self-terminating, agency

to

or

effective continued guidance

standpoint,

on

entirely

if

of to

Some the criticisms the use these committees multiply too rapidly and are often created without are that they tend prior consideration whether not they constitute the best solution that particular problem. Again, they may bog down and get off the subject

Large Organization,” Public

2,

in

of

in

C.

in

is

of

as

**

A

249. Mary Trackett, good discussion departmental committees contained “The Committee an Instrument Coordination the New Deal,” American Political pp. 301–310; Mary Trackett Reynolds, Science Review (April, 1937), Vol. XXXI, No. Interdepartmental Committees the National Administration (Columbia University Press, New York, 1939), 177 pp.; Pendleton Herring, Public Administration and the Public Interest (McGraw-Hill Book Co., Inc., New York, 1937), pp. 334–348, 388-394.

ORGANIZATION AND COORDINATION

188

[Ch.

12

Since 1921 there has been extensive use of interdepartmental commit tees in the coordination of purchasing and procurement by the federal gov ernment, first under the Bureau of the Budget and then under the Division

of Procurement of the Treasury Department.

its

After the enactment of the Budget and Accounting Act of 1921,” a new coordination service was set up and attached to the Federal Bureau of the Budget. Normally headed and manned by army and navy officers assigned for this duty, work was

been made that the federal administration

as

The point has

an

of

to

of

carried on largely through interdepartmental committees. Their field activity was confined almost entirely coordinating the procurement, use, disposal supplies, materials, and and equipment.** uses

exces

of

an

to

is by in

a

a

to

of in

of

management committees compared sive number their limited use private management. There are those who believe that the setting up problem many instances committee handle evidence to

is

in

in

if

of

It

a

subterfuge used vacillating management weak leadership and avoid taking firm and decisive action. often overlooked that committees are tremendously expensive the combined salaries the individuals volved are taken into account.” In defense of the use of such committees

be a

a

as

on

a

in

of is

of

to

a

be

could probably said that much greater sensi necessary there than private management. Fur thermore, the activities the federal departments are much greater private business, except very scale than are those few such the Bell Telephone system, the Standard Oil hierarchy, and few others. Moreover,

it

public administration tivity public reaction

is

in

engaged broadly termed social the federal government what may management rather than business management, and the former may require more deliberation. to

The interdepartmental

number

these committees may lead

to

to

extraordinary

of

an

of

of

a

in

committee does not seem have been used on city municipal managers have wide scale administration. While some made use this device, the official view would seem be that the existence the suspicion

or

as

be

to

is

that the municipality not well organized. Coordinating committees are thought more suitable for studying particular problems, such juvenile delinquency, which involve several departments agencies, than for day-to-day coordination.”

in

et

C.

of

of

in

of

*

p.

of

in

L.

of

as a

L.

**

;

T.

3,

**

F.

1

31

1942 Stat. 20, U.S.C.A. (June 10, 1921). Willoughby, The National For information on old coordination system see W. Budget System (Johns Hopkins Press, Baltimore, 1927), pp. 188–220; Sir Josiah Stamp, “Departmentalism and Efficiency,” Public Administration (July, 1932), Vol. X, No. pp. 220–231 Craven, “Coordination Thomas Public Administration,” United States Naval Institute Proceedings (March, 1932), Vol. LVIII, pp. 359–365. Urwick, “Organization Technical Problem,” Luther Gulick and Urwick (Eds.), Papers on the Science of Administration (Institute Public Administration, New York, 1937), 83. Municipal Administration (The Institute for Training Municipal The Technique Administration, Chicago, 1940), pp. 81–82. For the effective use committees by the city al., City Manager Gorernment Rochester see Frederick Mosher Seven Citie (Public Administration Service, Chicago, 1940), pp. 71–72.

Ch.

VOLUNTARY COORDINATING DEVICES

12]

189

Research and Planning as Tools of Coordination Because research and planning will be treated at greater length below,

at

the central staff have such planning and administrative

in

is

by

in

be

is

all

of

important part

of

an

all

only brief mention will be made here as to their relation to coordination. The most solid basis of securing agreement among the divergent elements is understanding, and understanding consists of seeing alike. An elementary basis for achieving this end is to be sure that concerned are looking the pos saying this same thing. Another way that they should why research and planning performed session the same facts. That Management

coordination.

to

of

to

in

single organization unit, confined should constitute the basis upon which every administrative decision should not

to a

be

however,

so

for

it

planning,

be

or

as

as

be

research units can attached directly the larger chief administrative officer well the chiefs his subdivi sions, they may budget bureaus. Such research and included

Facts often speak for themselves that they dissolve conten They also tend and friction automatically. banish the bias ignorance which often results from the other fellow's aims, actions, and operations. Face-to-face negotiations based upon mastery the facts

of

of

to

is

made. tiousness

the master formula

for coordination.

Standardization as

Means of Coordination

a

constitute

it

a

of

an

deliberations

interdepartmental

com of

tions are decided upon through

of

in

of

is

of

it

to

is

in

Although standardization treated more fully later chapter, point important seems desirable out here that has coordinative pur pose. One the most familiar examples the use standard specifica supplies. Usually such specifica tions the purchase and procurement

in

of

of

to is

A

of

standard classification accounts facilitates comparison operation throughout financial the entire service. Modern personnel ad dependent upon salary standardization and the classification ministration bring about just and common treatment positions individuals mittees.

to

as

of

is

judge

the effectiveness superb job administration. His bare statistics and facts may represent assembling and marshaling data, the but the latter mean very little adequacy. Indeed, most thinking until compared with some standard

of

such standards facilitates coordination.

it

at

the point where

or

of

of

the field administration ultimately arrives performance, operation, with the standards

in

of

all

of

a

which

to

goodness

by

standards

of

ment

of

is

is

or

is

to

of

of

performance The setting up work units and standards quan judge management adequate enables whether work either tity quality. hardly separable from research and Standardization planning, because what the researcher really looking for the establish these matters.

must cope

achievement. The existence

ORGANIZATION AND COORDINATION

190

[Ch.

12

Supervision Both public and private management have become very much more inter ested recently in the worker as an individual and human being. The domi nant approach to the improvement of administration during the last 40 years has been the administrative survey, which was interested chiefly in structure and organization. The political scientist's approach to the study of administration has been mainly from the standpoint of structure and law with a minimum of attention to considerations which might be termed psychological and sociological in nature. His study of personnel adminis tration has been very largely reformist and formal with primary attention to the central staff agency. During recent years there has been a certain disillusionment resulting from the failure of these formal approaches to accomplish the administra

tive improvement ganized structurally

which might be expected. State after state has reor without achieving completely the expected improve

Surveyors who would ment in the spirit and quality of administration. reorganize and reconstruct financial administration have found their task almost impossible because of the lack of sympathetic understanding on the part of those who operate the machinery. Improvements in personnel admin istration have often been obstructed and sabotaged by the misunderstanding and unsympathetic attitude of public employee groups.

The answer to this reform or the cessation of the struggle to improve organization, but rather the winning over of the rank-and-file employee so that he will be sympathetic to administrative reform. difficulty is not the abandonment of structural

If

there is one dominant theme in current management philosophy, whether public or private, it is the importance of the first-line supervisor. It is almost as though someone had made a profound discovery which

located the blame for past failure in management, and as though this star tling discovery had so permeated the thinking of the managerial group that they have concentrated upon remedies for this malady to the exclusion of almost all else. The culprit has been the first-line supervisor, with the result that today he is the recipient of the solicitous interest of management

in general. It is finally realized that there can be no effective improvement in administrative methods unless workers both individually and as a group are sympathetic and cooperative. Supervision is no more or less than the normal relationship of the leaders on the lower levels of the hierarchy with the workers under them. Whether or not coordination can be brought about in management policy is going to depend very largely upon the extent to which these lower supervisors can, and will, educate and convince the workers under them. A more complete discussion of supervision will be included in the chapters on personnel.

It is desirable here merely to empha

Ch.

VOLUNTARY COORDINATING DEVICES

12]

191

must be based upon favorable desires, reactions, and sentiments of the entire worker group, and that this can come about only if there is a high order of supervision from first-line to top management. size that coordination

SELECTED READINGS BOOKS AND MONOGRAPHS Buck, A. 1926), Buck, A. Buck, A.

E., and 562 pp.

others.

Municipal

Finance. -

(The Macmillan

Co., New

York,

(Harper & Bros., New York, 1929), 612 pp. Public Budgeting. The Reorganization of State Governments in the United States. (Co lumbia University Press, New York, 1938), 299 pp. Cornell, William B. Organization and Management. (The Ronald Press Co., New York,

E. E.

1938),

802 pp.

Committee. The Future of the Great Plains. (United States Govern ment Printing Office, Washington, D. C., December, 1936), 194 pp. Leighton, Alexander H. The Governing of Men: General Principles and Recom mendations Based on Erperience at a Japanese Relocation Camp. (Princeton University Press, Princeton, 1945), 404 pp. Macmahon, Arthur W., and Millett, John D. Federal Administrators. (Columbia University Press, New York, 1939), pp. 307–468. Macmahon, Arthur W., Millett, John D., and Ogden, Gladys. The Administration of Federal Work Relief. (Public Administration Service, Chicago, 1941), 407 pp. Metcalf, Henry C., and Urwick, L. (Eds.). Dynamic Administration: The Collected (Harper & Bros., New York, 1942), 320 pp. Papers of Mary Parker Follett. Niles, Mary Cushing. Middle Management, the Job of the Junior Administrator. (Harper & Bros., London, 1941), 270 pp. Seidman, Harold. Investigating Municipal Administration. (Institute of Public Ad ministration, Columbia University, New York, 1941), 215 pp. Stone, Harold A., Price, Don K., and Stone, Kathryn H. City-Manager Government in the United States. (Public Administration Service, Chicago, 1940), pp. 136–162. Urwick, L. “Organization as a Technical Problem,” in Luther Gulick and L. Urwick (Eds.), Papers on the Science of Administration. (Institute of Public Adminis tration, New York, 1937), 195 pp. Great Plains

PERIODICALS Bean, Kenneth S. “Coordinating Councils in California.” State of California De partment of Education Bulletin (September 1, 1938), No. 11, 54 pp. Fenton, Norman. “The Coordinating Council Offers a Solution.” California Jour mal of Secondary Education (Berkeley, January, 1940), Vol. 15, pp. 32–37. Field, Oliver P., and Stoner, John E. “The Charlestown Coordinator.” Public

Administration Review (Winter, 1943), Vol. 3, pp. 42–50. Glaser, Comstock, “Managing Committee Work in a Large Organization.” Public Administration Review (Spring, 1941), Vol. 1, pp. 249–256. Gordon, Joel. “Operating Statistics as a Tool of Management.” Public Administra tion Review (Summer, 1944), Vol. 4, pp. 189–196. Gottschalk, Oliver A. “Standardization of Procedures.” Public Administration Re view (Autumn, 1944), Vol. 1, pp. 287–297. Vieg, John Albert. “Working Relationships in Governmental Agricultural Pro grams.” Public Administration Review (Winter, 1941), Vol. I, pp. 141–148. Witten, John D. “Statistics as a Tool of Management.” Public Administration Review (Autumn, 1944), Vol. 4, pp. 279-286.

PART THREE PLANNING AND RESEARCH

CHAPTER

13

PLANNING, RESEARCH, AND STANDARDS The scientific approach to the problems of administration is based squarely upon planning and research. The mature judgment of competent and experienced managers can never be eliminated as a key factor in admin istration, but a high batting average of success in making judgments must depend upon knowledge. Hunch and intuition are not mystical qualities but rather the superior person's gift to perceive and assess the inevitably

factual situation and make accurate judgments accordingly. The more facts at hand, the more reliable is the exercise of judgment and the smaller is the margin of error. Planning as applied to administration simply involves the process of securing all of the facts within the limits of time, distance, and the powers of man and bringing those facts to bear upon the adminis trative problems concerned.

Every administrative

all

of

its

of

be a

all

Planning is not an isolated activity to be concentrated in a planning agency to the exclusion of other administrative processes, for planning part operations. should the normal day-to-day procedures plans and planners, and should have any considerable size should have planning units. Planning should those public health public deal with the functional subject matter such works, housekeeping budgeting personnel. well the activities like and

all

is

be

it

This discussion will deal primarily with three broad types emphasized that this classification should made with

of

as

as

as

or

of

subdivision

planning, but some reluctance planning can cate be

be

extremely broad generic process which itself penetrate every activity. planning just should human The three types referred are economic and social planning, physical planning, and admin analysis management planning. istrative

or

to

of

is

poses, and that planning

an

is

in

It

it

to

might lead for fear that the impression that gorized clearly understood that this three this manner. should way subdivision made here only for convenience and for illustrative pur

Economic and Social Planning Undoubtedly

in

I95

a

in

interference with the free flow trade protective this sense the tariff advocated

pure laissez-faire

by

of

in

of

a

there are those who would make distinction between social and economic planning; however, the making distinctions this controversy. planning might field invites immediate Economic involve economy, and

economic conservatives would

PLANNING AND RESEARCH

196

[Ch.

13

of economic planning. However, it is probable that most thinking people in of economic planning have in mind some kind of abso lute control of the economic system such as is evidenced in Soviet Russia. be an instrument

It

appears that social and economic planning are inextricably intermingled. This point, it seems, is best illustrated by public housing and slum clearance projects which are a combination of social, economic, and physical planning.

for playgrounds is certainly a combination of social and physical planning. Probably the term “a planned economic order” comes nearest to designating what most people have in mind when referring to The planning

economic planning. A planned economic order would be one in which the essential aspects of both production and consumption of economic goods and services not only would be planned in advance but also controlled by state agencies. It is probably not essential that state ownership of the tools of production ac company a planned economic order, but that is what it means to the average person. The foremost experiment in operating a planned economic order is that which has existed in Soviet Russia since the beginning of the third decade of this century. The supreme planning agency in Russia is the Gos plan. It consists of a huge administrative unit which is located in Moscow and comprises a staff numbering into the thousands. In addition to this

of

Moscow. The Gosplan technically and trained

of

Gosplan

up

to

a

is

its

central agency, every region, administrative area, and autonomous republic has a planning agency of own. There continuous flow statistical information from the most remote corner of the Soviet Union direct the is

in

to

in

of

be

to

be

to

made

of

at

individuals who are specialties the several which are necessary for production and economic planning. However, their proposals political authority, which subjected must the scrutiny this case happens Peoples' Commissars. There would seem the Council professionally

in

its

to

in

war

in

fight against Hitler's Germany. Neverthe less, the record also indicates that planning Russia has had deal with many intangibles, imponderables, and unpredictables. Observations have

of

supplied munitions

to

in

of

no

a

of

be

ample evidence that this type planning had very significant effect upon the Five-Year Plans. The effects Russian planning have caused regard little surprise the effective manner which the Soviet machine

to

a

of

for precise estimates and controls

a

In

of

in

in

in

trying revealed that there have been repeated failures achieve pro quotas many words, duction fields endeavor. other Soviet planning many respects constituted has focus for thought rather than device production."

I.

&

E.

of

&

T.

1

A

Sidney and Beatrice Webb, Soviet Communism: New Civilization (Chas. Scribner's Sons, New York, 1936), Vol. II, pp. 529–601; Bertram W. Maxwell, The Soviet State Wayburn, Topeka, Kans., 1934), pp. 250–270; Michael Florinsky, Toward an (Steves Understanding the USSR (The Macmillan Co., New York, 1939), pp. 147–172; Hubbard, Soviet Trade and Distribution (Macmillan Co., Ltd., London, 1938), Leonard Mezhlauk, The Second Five-Year Plan (International Publishers, pp. 103–125; V. New York, 1937), 671 pp.

w

Ch.

PLANNING, RESEARCH, AND STANDARDS

13]

197

Some people claim that it is impossible to build up a planned economic order within the framework of Anglo-Saxon political democracy. This is especially true of those who are steeped in the traditional philosophy of orthodox economic theory, and who see the interplay of prices in a free market as the only workable economic system. They regard any govern ment interference with the flow

of supply and demand as being tantamount

to sacrilege and the flouting of divine law. There are probably no persons in responsible positions in the United States who contemplate or advocate any such thoroughgoing control as is exemplified by the Soviet Union. However, there is a respectable and ever-enlarging school of liberals who feel that the necessity for some sort of planning is inescapable. Rather than impose controls immediately upon the basic economic processes, they would favor for the most part an evolutionary approach, ascertaining by

for the free flow

all in

no

the United States, which was after

of

It

existence than the Constitution planned an economic plan.

of

is

its

trial and error those essential phases of our economic system which must be planned while at the same time preserving the maximum sphere of individual initiative and opportunity.” To those who say that it is impossible to plan, the reply is that the United States has planned from the very begin ning of existence; indeed, there probably more grandiose plan trade between the

it

It

of

of

original thirteen states which had erected strong barriers against one an planned for the restoration public credit following default other. planned for union where disunion had previously existed; national bonds;

of

it

of

its

it

by

E. of

is

of

of

requires that the planners take into their because great confidence the masses the people. The result that when plans are finally adopted and carried into action, they have the solid basis common consent. This truth has been admirably stated Charles

itant

planning

an is

is

is

a

of

it

of

planned for the construction and roads and highways, for the coinage citizenship; Rights, money, for planned common and with Bill democracy for freedom. To those who say that planning the antithesis long-run freedom, reply democracy essential, and the that concom

as

follows: or

Merriam

in

is to

is

is

to

is

of

a

of

concluding that plan, democracy cannot manage Instead true, namely, that the nature we know the contrary the demo management and planning. cratic association the best adapted Cooperation planning and management these efficiency the key richly days, and cooperation most obtained when those concerned

Soule,

“Toward

A

to

so

in

º

pp. 29-30.

of

with the common welfare are consulted about the common good. Cooperation the long run will produce more units material and spiritual good than clubbing. “The strongest are never strong but try might right they that turn their into and obedience into duty.” Planned

Society,” The New Republic

(November,

1939),

PLANNING AND RESEARCH

198

In

democracy

duty springs spontaneously

sent freely arrived at and freely given.”

from consultation and -

[Ch.

13

con

The fact is that the United States is already doing a great deal of rather detailed economic and social planning. The best examples are the programs carried out by the United States Department of Agriculture. Under the comprehensive Farm Act of 1938, soil conservation on a nationwide basis was greatly encouraged. The stabilization of farm production in such basic commodities as cotton, corn, tobacco, wheat, and rice by means of acreage allotments was authorized. Also the Act provided for loans to they farmers so that could hold over their crops in the aforementioned basic commodities during years of surplus. In addition, crop insurance for wheat was also authorized. The passage of the Farm Act, however, would have been futile if the Agricultural Marketing Act had not been enacted the The provisions of this Act made possible the arrangement of marketing agreements in order to avoid market gluts, especially in dairy products and other perishables. Authority was given to distribute surplus commodities to relief clients outright or through a food stamp plan. After considerable administrative and functional planning involving tedious supervision, the formulation of standards, and the working out of formulas by experts of the Department of Agriculture, the two acts have solved in part some of the farmer's major difficulties. However, the powers previous year.

rendered by both acts have to be used so that they augment one another if the proposed objective, “an ever-normal granary,” is to be achieved and maintained. To synchronize the two acts toward the achievement of that end, the Department of Agriculture has found it necessary to do a great deal of planning. In order to influence those responsible for the amount of acreage to be planted, the Department must of necessity make advanced

farm crops. For many years, it has done so with of closeness to the actual yield that grain markets everywhere in the world have a high respect for the Department's estimates. The plans in regard to allotments and marketing quotas are set up by agricultural experts, but they are not arbitrarily thrust estimates of the yields from the principal

such a remarkable degree

upon the farmer with a take-it-or-leave-it attitude. Means for discussion are arranged for possible modification of the plans, and a referendum is Planning in a democratic required for certain aspects of the program. manner is fundamental to the entire program. Acreage allotments, encouragement of better farming through soil con servation, loans by the Commodity Credit Corporation to help the farmer hold over surpluses, the distribution by the Federal Surplus Commodity Corporation of designated surplus food items to relief clients, the export * George B. Galloway York, 1941), p. 506.

and Associates,

Planning For America (Henry Holt & Co., New

Ch.

-

PLANNING, RESEARCH, AND STANDARDS

13]

I99

of

all of

subsidy program, and wheat crop insurance comprise integral parts but not the important phases economic planning for agriculture. Through the Farm Credit Administration, many insecure farmers still left with some to

As

of

to

came destitute could not appeal the Farm Credit Administration. result, the Farm Security Administration within the Department

a

It

to

buy needed land, collateral may obtain loans obtain means for growing crops, and for marketing them. However, the Farm Credit Administra tion has its limitations. cannot go far enough. Many farmers who be

Agri

a

by

as

the various divisions

of

by

these planning activities carried

on

All

of

of

in

all

A.

S.

F.

of

rural rehabilitation program. However, the work the does not end with just giving aid, for planning and supervision have become vital features rehabilitation work conducted the Agriculture.” Department culture conducts

the

of

in

be

by

a

of

of

by

a

in

of

a

is

is

on

of

a

of

to

Agriculture range from planning for one-farm family nationwide projects tremendous proportions. The results such plan ning not only have had but will have profound effects both rural and urban life. The conclusion one reaches inevitable. American agriculture rigid supervision resulting from economic and social today under planning. This state affairs has come about democratic manner, pursuance Congress, usually passed acts with great reluctance but with the conviction that the circumstances made them unavoidable. Many other examples economic and social planning could cited subject; upon however, present purposes from voluminous literature the Department

on

by

it.

if

be a

social planner even his inclina the tremendous burden upon state and the phenomenal increase the population to

scale requires the administrator Thus, tions were against

an

of

it

in

a

is

in

merely indicating are served broad and general way what involved process study public the and how fits into the administration. The ever-accelerating latter's expansion into social reform and legislation

wholly upon planning. of

is

sympathetic

broad vision, the future

in it

of

of

of

Blaisdell, 153.

Government

and

Agriculture

(Farrar

&

Donald

p. C.

*

a

be

planner with social vision, for public management future must management. social

is of

realization these facts should public that the administrator

A

in

actuated men affairs the past. nish the setting for understanding

York, 1940),

Indeed,

human values replace largely the bare economic considerations which have

of

are destined

to

is

to

be

to

of

the successful administrator the future will one who planning, the idea and whose social outlook one comprehension, and understanding. Public administration going more and more social administration, and

is

based

be

Modern budgetary procedure must

be

to

of

to

of

in

local governments occasioned insane asylums during the last decade requires economic planning provide for the care these people and social planning stem the tide.

Rinehart, Inc.,

fur the also

New

a

PLANNING AND RESEARCH

200

[Ch.

13

Physical Planning

laymen usually appointed

by

a

is

independent body

of

planning commission,

is an

of

its

by

Physical planning in the past has been almost wholly concerned with the techniques of the engineer. It has been for the most part confined to what has been known as city planning, which has been primarily concerned with the design aspects of laying out cities and the engineering phases of public works. Thus, city planning has traditionally encompassed such matters as streets and highways; harbors, docks, and wharves; parks and playgrounds; airports and other transportation terminals; public buildings and administrative centers. City planners also have dealt with the question of land use by controlling the subdivision of acreage into lots and blocks, zoning. and limiting use carrying on city planning through city The orthodox manner

of

to

be

in

in

be

to

to

be

a

of

a

the mayor. The theory that this city planning commission will hire tech planners nical staff who will prepare master city plan how the city's physical facilities ought developed the future. This plan will show future, opened what new streets are the what areas are set

all

for parks and playgrounds, where new public buildings and other

aside

it

of

as

an

to

In

be

of

of

all

is

to

be

located, and city develop other pertinent aspects advisory document, and ment. This master plan such should con tain the hopes and aspirations which have any reasonable prospects attainment. addition the advisory master plan, there should an structures are

by

of

by

of

official map containing those phases the master plan which have been adopted city the council. The official map should receive approval both from the city planning commission and from the city council.

is

to

in

of

as to

of

land use American cities has been attempted means zoning regulations according which the city divided into areas which building and use. Thus, some areas are set aside type are restricted

The control

for industrial uses, others for single-family dwellings only, and others for retail and commercial uses. These restrictions are usually placed by

solely

by

be

by

in a

of

a

in

zoning ordinance which has been adopted the city council upon the zoning advice the city planning commission. Substantive changes ordinarily may only amending ordinance made the ordinance

of

However, individuals who feel that rigid application the prop particular hardship regard ordinance will work undue their own to

of

a

appeals which may grant spot zone spot zone does not alter the application

of

a

zoning board

that particular instance. Such

a

in

erty may appeal

to

in

council action.

to

up

of in

of

to

Up

in

other respects. the present time there has been general dissatisfaction with the city planning achievements the United States. The city planning unimaginative individuals who have not commissions have been made They picture. employ the seen the broad have not had sufficient funds the ordinance

Ch.

PLANNING, RESEARCH, AND STANDARDS

13]

201

staff required to do a good job of planning. Those appointed to city plan ning commissions have frequently represented business and other callings in which there has been fear that planning would be inimical to their best interests. Because planning has been largely in the hands of an independent commission of laymen who have maintained a certain distance between themselves and other city officials, much needed coordination so essential for success in planning has failed to materialize. In other words, city planning has not been sold either to the citizens or officials."

Until recently those engaged professionally in city planning have been architects, landscapers, and engineers primarily interested in design. Like many other professional groups, designers have tended to be conservative, thereby underestimating the purely human aspects of physical planning. A commendable change in this respect seems to be taking place at the present time. It now appears that less emphasis than formerly is being placed upon the engineering qualifications for a city planner. Some of the most influ ential leaders in city planning work today are persons without engineering

training or background; they do possess, however, a very broad under standing

of the economic, social, and psychological factors which determine

Furthermore, there is considerable evidence reveal ing the growth of social consciousness among an influential wing of the

municipal development. designers, including

architects, landscapers, and engineers.

The city planning department of the future will not utilize the data re sulting from drafting and map making as its only source of basic records.

It will

maintain a large reservoir of social data on a variety of questions pertaining to municipal development. It will know where workers live in relation to their work, and the number of children who live in the service

of

all

area of any particular playground. It will have data on the economic minority groups and social status of in particular areas. It will seek to discover the causes of urban blight and to propose methods by which it may be combated. City planners of the future will furnish constructive to

in

leadership in coordinating the municipal services the never-ending effort make the city comfortable, clean, healthy, and beautiful. They always recognize that social and moral considerations must condition will

all

city planners This function coordinators bearing upon planning extremely important.

of

the physical setting.

of

to

an

as

at

133

Urban Government

(University

of

Function

in

1941),

ff.

Walker, The Planning

Chicago,

p.

.”

Robert Chicago Press,

.

A.

arm's length, frequently

any other official agency and held themselves harboring bias against the other administrative a

being independent

of

as

of

to

of

as

is

In

as

of

municipal activities past the the city planning independent agency, the principal commission has regarded itself plan objective public which was educate the the desirability ning. The members this lay commission very often regarded themselves

PLANNING AND RESEARCH

2O2

[Ch.

13

n

officers. Thus planning was carried on in an atmosphere of isolation from the mayor, or other administrative officer, and his department heads. This aloofness from the other administrative departments is often characteristic

all

of those who at the beginning dominate staff activities. During the first period of crusading zeal, advocates of the new service tend to regard

to

in

as

as

politicians and hence potential enemies. However, administrative officers plan ultimately the time comes when the leaders such staff agencies ning, finance, and personnel realize that achieve their maximum objec to

he

a

it

of

It

in

of

be

operating department heads must tives wholehearted collaboration planning director requires capacity secured. broad secure this type collaboration, because means that must have that exceptional

it

be

of

to

be

to

of

ability which secures voluntary cooperation groups and persons who tend separatists. Thus the good planning director will see that the superintendent planning department schools confers with the before of

will benefit

of

committee composed the heads concerned with the physical aspects

a

of

in

of

of to

of

such coordination. type secure this coordination one the largest cities the coordinating made chairman

of of

of

in

has been placed recently the charter City Planning country. The Director

is

A

to

has been made feel that his department very interesting experiment designed

by

of

a

to

locate new school plant. This type liaison should accomplished spontaneously, voluntarily, and wholeheartedly. The proper relationship will not have developed unless the superintendent schools proposing

those departments which are chiefly municipal administration. The com

by

be

of

of

of

Playgrounds, mittee includes the Director Public Works, the Director Parks, and several others. While the charter requires the Superintendent they every month, that meet the success achieved inevitably will commen

of

be

the Executive Office on

a

sort over-all liaison advise the President and the Congress matters and best utilization national resources. The

to

of

This

unit was supposed

to

the President.

and coordination device relative conservation

Planning Board

to

of

era was the National Resources

in

a

of

do a

surate with the personal leadership evidenced the planning director." great deal There are many federal government agencies which during physical planning, but interesting development most the New Deal

its

of

of

a

It

of

it

as

as

to

of

Board did not limit itself the narrow interpretation national resources purely physical but took into consideration social, cultural, and economic aspects well. Thus conducted studies on urbanism and city develop many ment. took inventory the nation's research facilities. One publications was very significant survey population trends." The Board

in

I,

a

as

* *

amended, May, 1941, Secs. 94–99%. Los Angeles City Charter, National Resources Committee, Research National Resource (Government Printing Office, Washington, D. C., 1938), 255 pp.; National Resources Committee, Urban Govern Printing Office, Washington, D. C., 1939), Vol. ment (Government 303 pp.; National Committee, Our Cities: Their Role Resources the National Economy (Government Printing Office, Washington, D. C., 1937), 88 pp.

Ch.

PLANNING, RESEARCH, AND STANDARDS

13]

203

to

of

its

was authorized to cooperate, not only with the federal, but with the state and municipal agencies as well. One of first efforts was the stimulation planning up agencies. states set state Results were most gratifying,

to a

an

It

of a

of

it

and social planning brought about

physical, economic,

democratic processes. The Tennessee

its watershed includes three more. Many this area have low economic status. Much the top

all the Southern

of

states and

a

of

the inhabitants

in

of

River traverses four

example

of

noteworthy by

ning for which Valley Authority constitutes

a

by

is of a

the watershed

soil

to an

surrounding satellites cooperating under may refer York Regional Plan. Also great river system like the Tennessee, most the plan done the Tennessee Valley Authority. The Tennessee its

the City New York and arrangement called the New

states has eroded and washed away

at

of

to

to

to

for 47 states now have state planning commissions. The Board was ulti mately abolished owing failure receive Congressional support. Regional planning applies area which transcends the geographical single political may apply metropolitan area like limits unit.

an accelerated

or

A

score

will control the run-off and hold

to In

or

control and soil conservation measures. have been are being built; and these

instituting flood large more dams either

this problem

of

Authority has attacked the physical side

by

to

a

at

rate, with the result that the existing agricultural economy furnishes best low subsistence. Floods and deforestation, with intermittent droughts, have tended whittle away nature's patrimony. The Tennessee Valley

to is

by

at

of

of

of

in

of

is

in

addition, they are generating electric power which floods check. being distributed both urban and rural consumers rates designed being encouraged secure widespread use. Soil conservation control proper waters, cultivation, flood research and education methods

by

to

up

crops, and improved care the forests. time, At the same attention has been directed toward building the economic and industrial base. The agency has developed and continues the diversification

products

to

greater variety

of

an ever-widening

a a

of

of

of

building develop the Tennessee River for cheap barge transportation deep channels, locks, and dams.” The results series this work have only not stimulated increased traffic but have induced the shipment

Cities and towns not located the river proper have benefited from this development well have the terminal points along the river. The ramifications this improve the increased river traffic are innumerable, but have tended to

the same time increase

busi

in

to

in

of

social and economic status the area and ness other parts the country. Also, industries have been encouraged

at all

of

of

as

as

on

area.”

8.

id.,

p.

the

Tennessee River (Tennessee 12, 1941, mimeo.), 2.

Conditions

Division, September

p.

*

Tºº Navigation

on

in

locate semirural surround. ings where factories might use cheap power and the workers live clean, Valley Authority,

River

PLANNING AND RESEARCH

204

[Ch.

13

healthful surroundings far from typical urban slums. However, recreation neglected. The construction of dams, which in possibilities haye not been

turn have formed a series of lakes, has created many recreational oppor tunities. With the aid of conservation officials and with community coopera tion, plans have been drawn up which have stimulated pleasure boating, fishing, and picnicking, just to mention a few leisure pastimes in and around these beautiful man-made lakes. Many of the plans were made

before the lakes came into being, and today thousands visit the areas, creat ing many business opportunities, and work for guides, game wardens, and food purveyors.” Improvement of the soil, electrification of rural homes, and improvement of marketing methods—all have con stituted an attack upon the social as well as the economic problem. The distinctive aspect of the Tennessee Valley Authority's approach to planning has been democratic nature. The technical staff, recruited serves, has meticulously sought from outside the territory avoid clashes with the local folk culture. No coercion has been used

it

largely

in to

its

crop diversification,

or

of

a

to

trying impose new order upon unwilling natives. On the contrary, the Authority has always worked through the democratic organs local gov

It

to

other voluntary groups. has sought accom example and leadership rather than imposition by

purposes from above.

by

its

ernment, cooperatives, plish

Planning and Research

Administrative of

of

Frederick Winslow Taylor's system was the planning department the factory wherein specialists planned operations and work flow. These are Taylor's words: The very heart

of

in

in

by

to

as is

a

of

be

He

uses the slide-rules

obtaining the best and quickest setting the work the third, through the time-study in

guide him

analyzes

up

man

used.

aid,

to

an

to

is

of

by

be

which have been described proper speeds, etc. Another

as

the proper speeds and cutting tools

a

of

the planning room, each whom has his own specialist on them, instance, function. One for

men

or

several specialty,

in

of

of

In

. . .

machine-shop which managed under the the case system, modern detailed written instructions the best way doing each piece advance, work are prepared men the planning department. These instructions represent the combined work

º

these men, however, are written

p.

31.

single

instruction card,

a

Lilienthal, The Development Region's Resources (An address delivered Valleys Association, Little Rock, Ark., October 17, 1941, mimeo.),

the Southwest

of

*

David

E.

or sheet.

on a

all

of

of

.

a

in

in

a

it,

to

motions made the workman machine and removing etc. Still records which have been accumulated, makes out time-table giving the proper speed for doing each element the work. The directions

Ch.

PLANNING, RESEARCH, AND STANDARDS

13]

205

These men of necessity spend most of their time in the planning department, because they must be close to the records and data which they continually use in their work, and because this work requires the use of a desk and freedom from interruption. Human nature is such, however, that many of the workmen, if left to themselves, would pay but little attention to their written instructions. It is necessary, there fore, to provide teachers (called functional foremen) to see that the workmen both understand and carry out these written instructions.”

as

as

of

be

all

The planning approach as just outlined constitutes today the essence of well-managed industrial units. To sure, certain basic operations in Taylor's system—the functional foreman, for example—have not aspects accepted wholeheartedly been others. Furthermore, the rigid application

of

to

as

to

is

of

of

time-and-motion study has frequently encountered the obstinacy hu Taylorism Nevertheless, today man nature. the essence still virile and tenacious. Indeed, management planning seems attract more attention and command greater prestige the years go on.

in

Only recently has one heard the word “planning”

It

of

in

in

in

by

to

is,

used the above management phase government. sense, that the internal probably was introduced students and practitioners scientific manage ment who recent years have accepted positions the federal government.

applied

of

of

of

in

of

of

of

D.

of

A

of

management engineers came into number the federal service during the depression the 1930's, and their recruit C., exceptionally large ment accounts for the and active Washington, chapter Management. World War the Society for the Advancement

administrative

leadership.

a

to

is

It

in

of

Efficiency them were employed the former Bureau the federal government; and when that agency was abolished they found their way into the Farm Credit Administration, the Treasury Department, and interesting positions genuine elsewhere. see few them now Some

in

government circles than Management planning

in

is in in

is

to

is

in

II

of

Washington trained and greatly augmented the number persons management. scientific The result that the term “plan ning” applied internal management much more often federal experienced

state and local. essence based upon research and fact finding.

and securing all information available. The data gathered are then organized reveal meanings, plan their true the end that action created. The ultimate accomplished, aim define the purposes and objectives know brought the factors considered and the information bear on

data, conducting

investigations,

all

to

be

to

to

be

is

of

a

to

to

be

to

of

is

to

to

It

involves study, gathering

New

to

Scientific Management

(Harper

&

Frederick W. Taylor, The Principles York, 1911), pp. 122–123.

of

11

of

at

to

is

It

to

getting the job done, and then proceed. find out the best way dispel desirable the outset any misconception that management planning involves the employment slave-driving overseers who, with Bros.,

PLANNING AND RESEARCH

206

[Ch.

13

stop-watches in hand, are bent on getting the last ounce of effort out of the workers. Some “efficiency” engineers of bygone days may have pursued such tactics, but now they are decidedly out of date. In government the tasks are predominantly clerical and white collar in nature, and as a result planning problems deal largely with paper work. That is why the planning unit is frequently referred to as the systems and procedures division. The

subjects considered include systems, layout, finance, job analysis, and organi zational relationships.” Time-and-motion study plays a negligible role and the piece-rate method of compensation is almost entirely absent.

is,

Pioneering in administrative research as applied to public administration took the form of the governmental research movement initiated by the New York Bureau of Municipal Research in 1904. Too much credit cannot be given to these pioneers. However, for many years the application of

planning

organization

administrative Another significant

department working in, and alongside of, the itself, has achieved any momentum.

of

a

Taylor idea

of

It

of

to

research to government was confined to the citizen research efforts, that municipal research financed by private citizens and operating bureaus governmental organization. outside has been only recently that the

is

and laudable development the establishment units, procedures especially and the newer federal agencies. Sometimes these organization and procedures units are directly under the chief administrative officer his administrative assistant, and sometimes or

in

organization

charge.

is

or

people

an

in

it

of

a

such work

a to

classification preferable

the personnel office. Since effective position analysis and study organization and procedure, are based upon place administrative research agency which will give

in

they are set up

in

of

In

Agriculture,

the Tennessee

of

the Civilian Personnel Division the War Depart procedure closely and studies are allied with personnel

Valley Authority, and ment, organization

the Department

in

in

of

in

be

close liaison with personnel administration. Whether not planning placed personnel administrative research and should the de partment will depend upon the capacity, vision, and outlook the personnel

administration.

by

A

of

training and background are prerequisites for administra What kind tive research and planning? recent examination for administrative analyst given the United States Civil Service Commission had four optional

M.

of in an

go

public administration,

of a

(3)

immediate

engineer

the social are usually long on back

Niles, The Office Supervisor (John Wiley

&

E.

**

H. Niles and 1935), pp. 123–124.

C.

sciences, including those

in

an

to

techniques, that how about analyzing operating problem, those who have studied and had experience ing and industrial management have advantage. Students

of

knowledge

is,

branches: (1) management analysis, (2) constructive accounting, budget examination, and (4) procedural analysis. From the standpoint

Sons, New

York,

Ch.

PLANNING, RESEARCH, AND STANDARDS

13]

207

ground and short on techniques. Yet public administration is conducted in a social setting the comprehension of which is facilitated by social science training. The answer is that administrative researchers or management planners can, and should be, recruited from a variety of backgrounds. Students of public administration can take heart that the Junior Adminis trative Technician list has been used very widely for recruiting embryo planners for the federal government. Organization and procedure problems in government deal predominantly with white collar and office management situations rather than shop and factory production. The techniques of organization

study and procedural analysis as applied to office management in the governmental setting do not require an engineering or industrial management background. That public administration background has proved as a desirable qualification is attested by the competition among the departments to secure appointments from the top of the Junior Administra tive Technician list.

itself

Research in the Functional Subject Matter Fields department should be constantly carrying on re search in own functional specialty. The inquiring, open, and flexible mind the hallmark the creative administrator. The worst malady which organization can afflict the dry rot contentment with existing prac

of

of

is

an

is

of

its

Every governmental

be

a

it

be

be

to

be

of in

research. The research attitude must permeate the entire through accomplish such objective and the best way continuous and ever-present program in-service training. Whenever organization one finds an which research and training are normal and procedures, such

is

unit will have tone and stature.

has been estimated that

in

It

accepted

a

in

a

of

to

organization,

an

going program

In to

of

is

tice, and this usually coupled with suspicion innovation and suppression experimentation. effective, order administration must thorough dynamic; and dynamic, upon order must based

for re

1937 and 1938 federal expenditures

recent

1937 and 1938, this Department

as

was outlays research, federal for and twice Some federal agencies, such the Bureau as

as

of

spending almost one-third any other department.” much

in

a

for so-called basic research. all

years

Agriculture has obtained funds from Congress

In

Department

of

to

it is

a

to

of of

3

to

1

to

per cent search amounted from total expenditures.” Govern ment research consists, for the most part, fact finding solve rather operating problem. appropriations immediate To obtain for research usually necessary present practical, short-run objective; however, the

Research

National Resource,

to

p.

Committee,

a

fit

p.

14**

National Resources Ibid... 67.

to

of

in

of

Commerce, are set up primarily for Standards the Department purposes. agencies research Other have seen set up research units complement their normal administrative activities. 66.

PLANNING AND RESEARCH

208

[Ch.

13

SELECTED READINGS BOOKS AND MONOGRAPHS

E. H., and Schwenning, G. T. The Science of Production Organization. (John Wiley & Sons, Inc., New York, 1938), pp. 223–262. Appley, L. A. “An Educational Program for Employee Morale-Building,” Proceed ings of the First Personnel Institute, May 12, 1938. (Ohio State University Pub Anderson,

lications, Columbus), College of Commerce Conference Series No. 2, pp. 19–42. Appley, L. A. The Human Element in Personnel Management. (Society for Per sonnel Administration, January, 1941), 34 pp. Bienstock, Gregory, Schwarz, Solomon M., and Yugow, Aaron. Management in Russian Industry and Agriculture. (Oxford University Press, New York, 1944), pp. 47–57.

Black, Russell Van Nest. Planning for the Small American City. (Public Adminis tration Service No. 87, Chicago, Rev. ed., 1944), 86 pp. Fesler, James W. “Interdepartmental Relations in the Field Service of the Federal Government,” in Washington-Field Relationships in the Federal Service. (Grad Washington, D. C., 1942), pp. 51–60. uate School, Department of Agriculture, Florinsky, Michael T. Toward an Understanding of the U.S.S.R. (The Macmillan Co., New York, 1939), 245 pp. Follett, Mary P. “Individualism in a Planned Society,” in Henry C. Metcalf and L. Urwick (Eds.), Dynamic Administration, The Collected Papers of Mary Parker (Harper & Bros., New York, 1942), pp. 295–314. Follett. Follett, Mary P. Creative Erperience. (Longmans, Green & Co., New York, 1924), 303 pp.

Galloway, George B. Postwar Planning in the United States. (Twentieth Century Fund, New York, 1942), 158 pp. (Henry Holt & Co., Galloway, George B., and Associates. Planning for America. New York, 1941), 713 pp. Gaus, John M. The Education of Planners. (Graduate School of Design, Harvard University, Cambridge, 1943), 50 pp. Glaser, Comstock. Administrative Procedure. (American Council on Public Affairs, Washington, D. C.), pp. 68–83, 135–153. Hubbard, Leonard E. Soviet Trade and Distribution. (Macmillan & Co., Ltd., London, 1938), 281 pp. Lilienthal, David E. “Planning and Planners,” TVA—Democracy on the March. (Harper & Bros., New York, 1944), pp. 192–202. Maxwell, Bertram W. The Soviet State. (Steves & Wayburn, Topeka, Kans., 1934), 383 pp. Mezhlauk, V. I. The Second Five-Year Plan. (International Publishers, New York, 1937), 671 pp. Mosher, Frederick. City-Manager Government in Rochester. (Public Administra tion Service, Chicago, 1940), 95 pp. National Municipal League. Model City Charter. (National Municipal League, New York, 5th ed., 1941), pp. 56–70. National Resources Committee. Our Cities: Their Role in the National Economy. 1937), 88 pp. (Government Printing Office, Washington,

#".

National Resources Committee. Research a National Resource. - (Government ing Office, 1938), 255 pp. Reed, Thomas H. Municipal Management. (McGraw-Hill Book Co., Inc.,

York,

1941),

Print New

pp. 303–328.

in

al.

Reynolds, Mary Trackett. Inter-departmental Committees in the National Adminis tration. (Columbia University Press, New York, 1939), 177 pp. Segoe, Ladislas, et Local Planning Administration. (Institute for Training Municipal Administration, Chicago, 1941), 684 pp.

Ch.

13]

PLANNING, RESEARCH, AND STANDARDS

209

Taylor, Frederick W. The Principles of Scientific Management. (Harper & Bros., New York, 1911), pp. 122–123. Vieg, John A. “Developments in Governmental Planning,” in L. D. White (Ed.), The Future of Government in the United States: Essays in Honor of Charles (University of Chicago Press, Chicago, 1942), pp. 63–87. E. Merriam. Walker, Robert A. The Planning Function in Urban Government. (University of -

Chicago Press, Chicago, 1941), 376 pp. War Department, Civilian Personnel Division. Administrative Planning Agencies in (Washington, D. C., 1942, mimeo.), 195 pp. the Federal Government. Webb, Beatrice and Sidney. Soviet Communism: A New Civilization. (Chas. Scribner's Sons, New York, 1936), Vol. II, 528 pp. (University of North Carolina Press. Wootton, Barbara. Freedom Under Planning. Chapel Hill, 1945), 176 pp.

PERIODICALS Burdell,

Edwin S. “Administration and Urban Planning.” Public Administration (Winter, 1943), Vol. 3, pp. 70–79. Marx, Fritz Morstein. “Policy Formulation and the Administrative Process.” Amer ican Political Science Review (February, 1939), Vol. 33, pp. 55–60. Person, H. S. “Research and Planning as Functions of Administration and Man agement.” Public Administration Review (Autumn, 1940), Vol. 1, pp. 65–73. Rice, Stuart A. “The Role and Management of the Federal Statistical System.” American Political Science Review (June, 1940), Vol. 34, No. 3, pp. 481–488. Trackett, Mary C. “The Committee as an Instrument of Coordination in the New Deal.” American Political Science Review (April, 1937), Vol. 31, pp. 301– Review

310.

Urwick, L. “A Republic of Administration.” Vol. 13, No. 3, pp. 263, 268–269.

Public Administration

(July, 1935),

CHAPTER

14

STANDARDS AND MEASUREMENTS *

The basic objective and method of scientific management is to be con stantly in search of a better way of doing things. This better way involves not only a search for money economy but also for the lessening of strain and fatigue upon the workers themselves. A classic example is Frederick W. Taylor's story of how Schmidt, the pig-iron handler, was made into a “high-priced” man. By following instructions as to when and how to work, and when to rest, Schmidt was able almost to quadruple the volume of pig iron which he was loading. This was done without apparently adding to fatigue or producing the feeling of putting forth excessive effort." Under Taylor's system, it was the province of the planning department to lay out the work and to set the tasks, an activity which involved the ultilization of standards and the measurement of both quantity and quality. It is the uni versal practice of production management to facilitate the maintenance of such standards through a corps of inspectors. While standardization and work management constitute universal prac tice in industrial management, their adoption by government has been some what slower. In the first place, public administration has been a generation or two behind industrial management in embracing the principles of scien tific management. However, a more justifiable reason is the fact that gov ernment is dealing with intangible services rather than with concrete units. of factory production. The quantity and quality of pig iron, electric bulbs, gasoline, and newsprint can be measured fairly easily, but hardly anyone can tell what.constitutes adequate units of accomplishment in police, forest, public welfare, and public employment administration. This inherent diffi culty in the measurement of governmental services leads probably the major

Principles

2IO

Scientific Management

(Harper

or

of

of

finding out whether

&

*

Frederick. W. Taylor, The New York, 1911), pp. 43–48.

merely the process of

after all,

is

Measurement,

in

to

all

ity of administrators to assume that measurement is impossible except upon the basis of appraisal by persons of experience and proved judgment. The normal pulls are toward this defeatist attitude, for the obstacles in the way However, the of measurement are formidable and but insuperable. exceptional person creative administrator—that with initiative and spirit— will not succumb this defeatism even the face continued frustration. not

Bros.,

2II

STANDARDS AND MEASUREMENTS

Ch. I4]

one is doing a good piece of work at the job which life has marked out for him, and the conscientious administrative leader will be constantly struggling to answer this question for his own satisfaction. To aid him in this objective, scientific management can furnish certain valuable techniques its

such as record keeping, cost accounting, job analysis, organization analysis, procedural analysis, and management research in broadest aspects.

of

of

be

is

It

in

the basis

a is

of

is

going on, and such what systematic manner. information must come from written records kept keeping part operations desirable that record normal instead becoming extraneous paper work which causes resentment and rebellion. Measurement

possible only

on

Record Keeping

of

of

to

do a be

records enables them

curiosity statisticians. original reports, filled out

convinced that the time required make the merely satisfying the better job instead Effective administrative records spring from basic by

to

Line operating people must

a

it in

those who perform the routine and ministerial daily slip which shows how far his truck tasks. The truck driver fills driven, has been what loads has picked up and disposed of, and how

a

a to

a

at

receipt for the materials the concrete mixer signs policeman prepares report relative him. The on the beat duties. The captain who answers the fire alarm makes out tells what happened. These and thousands others like them the crew

delivered

of to of

in

he

it

much gasoline and oil has consumed. The gang boss makes out the daily group works; and the man report charge time for the with which

his tour form which

up

of

of

a

a

of

of

of

are the sub administrative reports and constitute the fabric information which guides administrative performance. Standards and measurements spring from system hierarchy reports mounting record made stance

from the basic foundation just illustrated.”

in

The frustration and defeatism often present

to

Internal Operating Standards

his own which

being he

work which

is

of

indicate the quantity and quality his unit. He may have standards

of of

to

is

a

in

by to

have records accomplished

emphasize that intercity com performance and standards Every good administrator will

of to

below. The matter mentioned here only parisons are not essential the utilization given jurisdiction. work measurement

at

in

be

to

or

to

of

discussions relative measuring administration are due the fact that much this discussion comparisons cities, states, has referred between other entities. The problem involved greater length such comparison will discussed

has

78

A

E.

of

C.

*

Municipal Public Works (Public Administration Stone, The Management Donald Nolting, Service, Chicago, 1939), pp. 57–60; DeWayne Model Records and Reporting System for Fire Departments (Public Administration Service, Chicago, 1938), pp.

PLANNING AND RESEARCH

2I2

[Ch.

14

fit

never divulged to anyone, but which, nevertheless, constitute worthwhile judgments upon the effectiveness of results. Sometimes he will be able to these into, and compare them with, similar figures available from other

with what his own unit of

be

a

or

a

A

in

Thus

or

good clerical supervisor should know how girl should copy per hour per day, and

he

of

in

should dig. straight typing

will know how much earth of

a of

construction foreman ordinarily day, laborer should move how many

foreman's “horse sense” standards. feet trench many pages

expected should the form the

a

in

of

did last year, the year before, and what improvement operations the future. Much the measurement

is

be

jurisdictions; but usually the comparison will

w

records

to

for failures when there are

to

be

place responsibility able reveal them.

no

of

is

is

if

be

how many envelopes should addressed under given conditions. The diffi culty that records are not kept and scrutinized, laxity will result. Work expected ers will not know what them and supervisors will not

of

The Measurement of the Production of Workers.-The measurement factory management where been commonplace compensating method workers has often been combined with time-and-motion study. However, the application measurement the use of clerical and white collar workers has been much slower than in

to

of

of

the piecework

in

worker output has long

its

in a

The large-scale management problem

of

concrete physical product. perplexities ment finds

a

to

is

in

is

significant for public administration because the domi the factory. This management government nant situation clerical and white collar only very limited extent with nature. Public administration deals

govern

in

in

in

of

in

up

supervision

of

type

of of

of

of

in

large-scale office management—in the indexing and handling files which occupy whole floors vast office buildings, keeping the accounts for millions security clients, preventing the social correspondence from piling bottlenecks, and securing that flow clerical groups which will keep them productive and

happy.

of

large volume clerical work have made some approach the measurement staff output. Measurement seems have single been most successful where there has been continuous load operation sufficient keep one busy more workers and where the unit to

to

a

of

or

a

to

of

a

Most organizations with

various units

of

be found

in

measurement

is to

of

of

as

in

to

or of

prevail more measurement was fairly simple. These conditions seem accounting punch less such units machine under the card system, stenographic pools, and various other types copying. This variety the

Farm Credit Administra

tion, the Treasury Department, the Social Security Board, and the

of

Wirt, “The Use

thesis, University

of

Marion

Master's

A.

*

ment Printing Office.”

Govern

Work Units and Measured Production” (unpublished California, Los Angeles, 1940), 152 pp.

Southern

Ch.

STANDARDS AND MEASUREMENTS

14]

213

One should not get the impression that the measurement of routine clerical operations is general. The resistance to such measurement is very strong. It springs from the workers’ suspicion that it is a speed-up device; from the feeling of administrators and supervisors themselves that accurate measurement is impossible, and hence not worthwhile; and from the belief that, even

if

possible, any improved results that might accrue would not be worth the effort involved in increased record keeping. Even though these objections may be very real, the fact remains that those organizations pos sessing “tone” have found

it necessary to obtain figures on the output of

clerical workers. Sheer administrative necessity has required them to rise above overpowering inertia and defeatism.

The problem of measurement offers many more difficulties on the execu tive and technician level, for here the variability of the work is so great that work units can be established only with the utmost difficulty. However, some rather significant experiments have been made in the field of social work and in the activities of the Social Security Board.* Probably the most interesting development is found in the United States Forest Service where the measurement of work loads is combined with training as an everyday concomitant

of management.

The device used by all of these agencies is known as the time study. A record is made of the amount of time put in by each worker on each differ ent type of work. There are two or three different ways of recording this time. The one used by the Forest Service is to require each worker in the field, from the head of the forest down to the laborers themselves, to keep a diary of each day's work. In some cases it is found desirable to have a second person or observer accompany the worker and make the record." In other instances the worker is asked to make a continuous running record, timing himself whenever he changes from one work sequence to another. The Forest Service has a composite job list which sets forth the principal categories of work performed by an administrator. The work loads for the individuals employed in particular forests are estimated in conferences attended by those to whom the job analyses will apply. The actual record of performance is subsequently compiled from the diaries and compared with the previous estimates." * Herbert A. Simon et al., Determining Work Loads for Professional Staff in a Public Welfare Agency (Bureau of Public Administration, University of California, Berkeley, 1941), 94 pp.; Herbert A. Simon and William R. Divine, “Controlling Human Factors in an Administrative Experiment,” Public Administration Review (Autumn, 1941), Vol. I,

pp. 485–492. * Cincinnati Regional Crime Committee, The Cincinnati Police Beat Survey (American Public Welfare Assn., Chicago, 1937, mimeo.), 31 pp.; State Relief Administration, Job Analysis (Los Angeles, February, 1940, mimeo.), 48 pp. *James E. Scott, “Executive Work Load Measurement,” The Work Unit in Federal Administration (Public Administration Service, Chicago, 1937), pp. 26–31; Mayhew Davis, Analysis and Planning Procedure in the Forest Service,” The Work Unit In ederal Administration (Public Administration Service, Chicago, 1937), pp. 31–35; E. W. Loveridge, Job-Load Analysis and Planning of Earecutive Work in National Forest Adminis Printing Office, Washington, D. C., 1932), 236 pp. tration (Government

};"|

PLANNING AND RESEARCH

214

[Ch.

14

The value of time studies of this kind springs from their usefulness in scheduling work. They show whether or not an executive or supervisor is spending too much time in nonessential details. Thus they help to facilitate the delegation of duties. When time studies of this kind are combined with the analyses of work flow, the principal causes of lost motion in clerical work are discovered. Bottlenecks are revealed where papers pile up on the desks of particular individuals who for one reason or another cannot get at them. Time study combined with work flow analysis facilitates measure ment by establishing work units, which in turn permit the scheduling of operations. Such scheduling sets up work loads and work flow in a scientific manner so that a sequence of administrative and clerical operations can be planned in advance and completed on announced schedule."

Work Units.-Work

of In public works and construction work it is fairly common to estimate jobs in terms of man-hours or man-days, which means the amount of work one man could do in an hour or in a day. These units were utilized quite widely in estimating projects for the Work Projects Administration, probably because the main object was to create work. A unit of efficiency might be the square yard of floor cleaned per man-hour, or the number of units quite naturally

vary in different

types

operations.

buildings inspected per man-day.”

Clerical measurement might call for the number of pages typed per day, number of cards punched per day or per hour, and the number of envelopes addressed per day. In 1929 a joint cooperative venture was inaugurated and carried on by the research staff of the International City Managers' Association and other groups

of officials through the Committee on Uniform Street and Sanita

tion Records.” A cost accounting system based on complete records for controlling and analyzing labor, materials and supplies, and cquipment was devised. To street sanitation activities, to which the project was originally

delimited, were added street repairs, sewer cleaning and repairs, property maintenance, traffic and street signs, and other activities commonly found in a public works department. Demonstration installations were made in

Brunswick, Georgia; Kenosha, Wisconsin; Troy, New Minnesota; Cincinnati, Ohio; and Lexington, Kentucky.

York; Winona,

Through them public works officials are enabled to obtain a record of every significant transaction through a series of periodical reports from the individual opera tor up to the director himself. Ultimate results express work units in terms * Comstock Glaser, Administrative Procedure (American Council on Public Affairs, Washington, D. C., 1941), 207 pp. Stone, op. cit., p. 51. For an illuminating and interesting analysis of how one proceeds to establish work units in a public agency to obtain standards and measurements for budget ary considerations, see pamphlet by Irving Tenner, Work Measurement in the City of Los Angeles Building and Safety Department (Municipal Finance Officers Assn. of the United States and Canada, December, 1941), Cost Accounting Bulletin No. 1, 16 pp. * See the objectives as stated in The Measurement and Control of Municipal Sanitation (the committee, Chicago, tentative draft, September, 1930), pp. 11–17.

Ch.

STANDARDS AND MEASUREMENTS

14]

215

of money costs, such

as cost per ton of garbage removed, per mile of street cleaned, or per catch-basin cleaned. Aside from the value of such costs for comparative purposes, they are useful for internal management. For instance, Kenosha found that certain

streets were overswept, thus permitting reduction of time thereon. In the same city cost records were found useful for budget requests; for if the council asked for a reduction in appropriations for street cleaning, the man ager could ask which streets they thought should remain unswept. It was also found that the monthly reports of operations created a spirit of rivalry among the men.”

The principal utility of unit costs is to inform an administrator on cost Comparisons of costs from city to city trends in his own 'organization. caution, should be made with extreme for the variables are ordinarily too great to permit a fair comparison. On the other hand, it may be fallacious to compare one year's costs with another in the same unit, for such a compari son might merely result in measuring one poor performance against another. Furthermore, students of public administration, along with accountants, should face the fact squarely that unit costs are not utilized for administra

~

of

by

to

in

all

tive purposes to the extent advocated by administrative and accounting theory. It is not at uncommon for those working line departments resent and resist the installation cost accounting the comptroller's

to

formal and perfunctory by

of

condition

to

of

operating officers. no utilization the records say that the latter are obtuse and obdurate and

in

or

a

in

it

of is

be a

good for them. However, there must more signifi prevails the fact that cost accounting, even where form, has not generally become formulating vital tool either adminis policy maintaining day-to-day trative administrative control. This do not know what cant explanation

in

problem needs much research.

Munro's Criteria in

B.

or

as

to

by

Probably the best-known proposals for evaluating municipal government are the twenty-five “Criteria” advanced W. Munro 1926." Never measurements, the author cautions against any referred standards

A

a

in

is

of

of

in

of

by

'...";

of

E.

4,

C.

*

Stone, “Measuring Public Works Efficiency,” Donald National Municipal Review O'Brien, “How Public Works Records 1932), Vol. XXI, No. pp. 226–228; W. Budget Control,” City Manager Yearbook, 1932, pp. 140–147. statement spectacular savings resulting from these installations mimeographed bulle contained tin issued by the Committee on Uniform Street and Sanitation Records, December, 1932, Savings Effected Installations Public Works Records and Accounting Systems. Man City uals covering the entire installations several cities are issued by the International Municipal Public Works, pp. 47–62. Managers' Assn., Chicago. Stone, The Management Government American Cities (The Macmillan Co., New York, 4th ed., 1926), pp. 434–446.

(April, Aid

in

-

is

maintenance with little The easy explanation

or

watch operating agencies fall into

a

a

of

of

office. Moreover, one has seen time and again the installation cost ac counting with degree anticipation enthusiasm, only considerable and

PLANNING AND RESEARCH

216

[Ch. 14

attempt to use them as inflexible and rigid yardsticks. They merely pretend “to indicate certain general questions which the intelligent citizen may ask and answer in relation to his own local government.”.” Sample questions relate to the amount of genuine home rule, the conciseness of the charter, the concentration of responsibility for popular control, the number of elec tive officials, the existence of a merit system, the method of awarding con tracts, and popular interest. Extremely useful as guides in directing a general estimate of the government of a particular city, they hardly consti tute the objective standards of performance for which students and adminis trators are striving. The same can be said of the criteria listed by Charles A. Beard in his comments on the government of Tokyo.”

Along the

same

W. Brooke Graves lists

lines,

a number

of essential

elements which a state constitution should possess if it is to be an instrument which can be used to meet satisfactorily the ends for which it was adopted.” However, at one time he also suggested possible criteria for attempting to measure the effectiveness of state government and state administration. He listed sixteen criteria which he suggested might be used as a possible means of approach and as a point of departure for further refinement.”

Model Laws Another source of standardization is to

be

found in model codes or laws

proposed by special interest groups to serve as a basis for the drafting of laws to be enacted by legislative bodies. In the field of state and local government, the National Municipal League has done pioneer work with

a

of

by

its

Model City Charter, Model State Constitution, Model Registration Sys tem, and Model Accrual Budget Law.” Prepared committees those thoroughly familiar with the subject matter, these publications present of of

sponsored

on

the National Conference the United States Department

Street and Highway Safety

of

made

by

Commerce.”

D.

Tokyo

Heath

&

jºke -

of

A.

12

*

*,

1945

The American

p.

Ibid., 436. Beard, The Administration and Politics Charles York, 1923), pp. 19–25. New W. Graves, American State Government (D.

C.

been

by

to

of

to

do

on

valuable consensus the important matter administrative organization, but they not pretend set up measures administrative performance. Significant contributions the standardization traffic regulations have

(The Macmillan Co., Co., Boston, Rev.

ed.,

D.

*7

A

in

A

A

73

of

on

A

A

**

of

See W. Brooke Graves, “Criteria for Evaluating the Effectiveness State Govern ment,” American Political Science Review (June, 1938), Vol. XXXII, pp. 508–514. Model City Charter (National Municipal League, New York, Rev. ed., 1941); Model State Constitution (National Municipal League, New York, Rev. ed., 1941); Model Registration System, Report the Committee Election Administration (National Municipal League, New York, 1939), pp.; also there has been published 1942 by the National Municipal League: Model Bond Law, Model Accrual Budget Law, and Model Cash Basis Lazo. National Conference on Street and Highway Safety, Model Municipal Traffic Ordi C., 1930); Uniform Act Regulating Traffic on Highways (Govern nance (Washington, ment Printing Office, Washington, D. C., 1939).

STANDARDS AND MEASUREMENTS

Ch. I4]

217

health departments.” The significant feature rather than achievements;

all

of

a

of

its

Public Health Association has made perhaps the most conscientious effort procedures, one of any of the functional groups to standardize its city being setting up organization notable achievements the model for

of in

is

by

is

of

these efforts that they emphasize methods they measure procedures but not results. This, however, does not mean that there establishing model pro no value cedures, for methods must things have some rather the very nature a

in

of

on

to

to

to

If

intimate relation achievement. several the forty cities metro “go” politan area permitted drivers yellow light required the and others them wait for the green, the resulting confusion certainly would have effects

on traffic.

Students

are also

well aware

of the fact

by

adverse

of

measures

a

in

of

of

of

proposed obligations that pre-audit the chief accounting officer tends Uniformity “go” toward economy. on the green light and the require pre-audit are both standards sense, but they are not direct ment ultimate performance.

Rating Scales

by

by

or

is

in

of

public administration standard developed most fully rating through agencies scale, the which administrative are graded scored. Examples are the Appraisal Form for Local Health Work developed the

The type

in

of

American Public Health Association and the scores used the National rating departments. Board Fire Underwriters local water and fire Each of these rates methods rather than ultimate results. E. S. Griffith has

of

of

a

of

pointed the way toward the development rating scale for cities which would place emphasis both on methods and achievements.” For several years the Chamber Commerce the United States has united with the

a

cn

of

a

of

on

of

a

to

L.

in

an

to

in

urging local chambers enter their respective cities public contest, annual nationwide health based rating scale developed for the purpose.” Mabel Walker has actually attempted large number rate number cities the basis func

American Public Health Association

these scales

later

in

of

possible rating scale for cities.” Some connection with functional standards

in

broad outlines will be discussed

a

of

tions.” The National Conference on the Science of Politics indicated the this

*

Ira V. Hiscock (Ed.), Community Health Organization (The Commonwealth Fund, New York, 3d ed., 1939), 318 pp. Griffith, Current Municipal Problems (Houghton Mifflin Co., New York, 1933),

ºš.

of

to

of

of

a

of

L.

A.

E.

**

p.

E.

L.

**

of

on

*

pp. 99– See Handbook the Inter-Chamber Health Conservation Contest (Chamber Com merce the United States, Washington, D. C., 1932). Walker, “Rating According Mabel Cities the Services Which Their Citizens Are Getting,” American City (July, 1929), Vol. XLI, pp. 130–134; criticized by A. Buck, ibid., Walker, Municipal Expenditures (Johns Hopkins Press, Baltimore, 154; Mabel 1930), pp. 52–111. Cities,” Cottrell, “Development Rating the Relative Efficiency Method American Political Science Review (February, 1925), Vol. XIX, pp. 149-155.

PLANNING AND RESEARCH

218

chapter.

In

a

[Ch.

14

similar category are the schedule for the appraisal of com

munity recreation by the National

Recreation Association

and the

Strayer

Engelhardt Score Card for school buildings.”

Functional Standards The most ambitious study of functional standards was that published in 1938 by Clarence E. Ridley and Herbert A. Simon.” The study included chapters on fire, police, public works, public health, recreation, public wel fare, public education, public libraries, personnel, finance, and city planning. It is valuable chiefly from the standpoint of setting forth the history and status of measuring movements and devices and citing the literature in the field. While the administrator and analyst who desire to make some appli cation to specific situations will find certain broad guides and wise advice, the general picture is one of confusion and incompleteness. One of the chief obstacles to be overcome is administrative inertia and lack of creative ness, ingenuity, and inventiveness in these problems; however, there is con siderable cause for hope and expectancy in a number of these fields. One of the principal contributions of the Ridley and Simon study is Appendix B, setting forth sample report forms of municipal activities. The discussion of standards here will be confined to three items for

illus

trative purposes.

These are the uniform crime statistics maintained by the Federal Bureau of Investigation in the Department of Justice and the appraisal forms and schedules for public health and fire administration. These are taken because they represent something tangible and are widely known and applied. The techniques in public health differ from those used in fire administration, in that the health appraisal form was developed by public health people themselves inside the profession, whereas the fire sched ule was developed by the National Board of Fire Underwriters representing insurance firms protecting their own interests. A long expressed desire for uniform crime statistics began to take form in 1927, with the appointment of a Committee on Uniform Crime Records under the auspices of the International Association of Chiefs of Police. As a result there appeared in 1929 a volume entitled Uniform Crime Reporting designed as a guide for police departments in reporting crimes to a national agency. The major obstacle in carrying out such a scheme was the recon ciling of divergent definitions of the various crimes in the several states. Two ways were open: enacting uniform crime laws or establishing formulae for eliminating the divergencies as a part of the process of reporting. For

*

Schedule for the Appraisal of Community Recreation (National Recreation Assn., New York, undated, mimeo.), 26 pp.; John M. Pfiffner, Research Methods in Public Ad ministration (The Ronald Press Co., New York, 1940), pp. 84–87. Municipal Activities (Inter ** Clarence E. Ridley and Herbert A. Simon, Measuring national City Managers' Assn., Chicago, 1938), 102 pp.

Ch.

STANDARDS AND MEASUREMENTS

14]

2I9

obvious reasons, the latter course was adopted. A classification of the major crimes for each individual state, with the code reference, guides the local department in reaching class totals “which will be reasonably comparable with those of other jurisdictions.” The reports are mainly interested in two sets of facts: the number of offenses known to the police and the number cleared by arrest. A monthly return sets forth the number of offenses known or reported to the police from which are subtracted those known to

Two annual reports record the number of crimes known to police the and the number of persons charged respectively. This system was operated for a few months by the International Association of Chiefs of be unfounded.

grants, but the work was finally taken by Department over the Federal of Justice under legislation enacted by Congress in 1930.” These official reports were published monthly, begin ning with August, 1930, but have been issued quarterly after April, 1932. Up to that time they had contained comparative tables of crime rates in

Police by means of philanthropic

individual cities. Although the bulletin does not say so, the discontinuance of statistics for individual cities was undoubtedly due to what many considered to be dis torted and untrue comparisons. It was apparent that some departments were not reporting complete data, no doubt due at least partially to the fact that the internal functioning of many police departments did not permit even their own officers to have adequate knowledge of what happened. In other cases, the directions for reporting were misinterpreted in such a man ner as to be thrown out of line for comparative purposes. As important departments ceased to make reports, owing to what they considered to be unfair comparisons with statistics faultily compiled, and as sincere friends

of the movement began to point out the weaknesses of any crime reporting system, the original enthusiasm for the project cooled to the point of sheer disillusionment in some quarters. At present a saner outlook has formed. It is realized that British official crime statistics have been published for but always with caution as to their reliability and interpretation. Thus, the F. B. I. bulletin for April, 1934 resumed the publication of com parative statistics for individual cities, but with an entire page of warning

decades,

false interpretations. Since 1930, when the Federal Bureau of Investigation began to publish quarterly Uniform Crime Reports, nearly any great size have been included. Although this compilation cities an

of

all

its

against

in

on

(Committee Uniform Crime Records, International York, 1929), 464 pp.; Bruce Smith, Police Systems the New York, 1940), pp. 310–318. Sources Criminal Statistics,” Annals the American Science (September, 1941), Vol. CCXVII, 21. p. of

of

26

&

of

of

Uniform Crime Reporting Police, New Chiefs Bros., United States (Harper Ronald H. Beattie, “The Academy Political and Social

Assn.

of

as

be

of

of

in

be

it

kept covers estimated 70,000,000 people, should mind that figures for any given state are not complete.” The publication state totals police statistics probably will not sufficiently complete until some agency

PLANNING AND RESEARCH

22O

[Ch. 14

of the states acquires or assumes the responsibility of collecting such data in a uniform manner and thereby assists the Federal Bureau of in

each

Investigation

to make a complete nationwide coverage. There has been some doubt as to the accuracy in the collection of such data accompanied by the feeling that reporting of such information has not been uniform.” Doubt regarding the uniformity of collecting crime statis tics also raises some skepticism as to whether or not the number of crimes known to police of one city can be compared with other cities. To check the validity of any statistical compilation is difficult, let alone the checking

of crime statistics from thousands of sources. It could be done by extensive field work, but R. T. Harbo of the F. B. I. suggests a much less expensive,

although not a foolproof approach. 'He suggests the possibility of present ing indications of reasonableness that the figures reported can be thought to

He presents several types of indications for determin ing reliability of data gathered.* The F. B. I. has urged caution in the interpretation of crime statistics.” be generally reliable.

Public Health

significant.

a of

so

is

its

in

its

Probably no administrative field has gone farther than public health in developing criteria to judge the effectiveness of work. Since public health present form young, this fact becomes especially administration of

of

by

a

of

to

The standards and measurement referred are the results experiences growing out public health surveys covering number period years. From these have been evolved the American Public

of

Health Association the Appraisal Form for City Health Work and the Appraisal Form for Rural Health Work.” Since that time, however, the has felt that significant distinctions between the needs rural and urban areas have for the most part disappeared and result com bined the two appraisal forms and called the Appraisal Form for Local

it

as a

Association

to

of

in

of

Health Work, the title which was again changed 1943 The Evalua designed tion Schedule.” The forms were for the use the health officer

1

flººr -

of

of to

of

of

to

a

of

on

**

99

of

of

B.

S.

9;

p.

p.

** 28

p.

in

of

*7

B.

of

Warner, “Statistics Sam Crimes Known the Police,” Government. Research Government, Proceedings and Citizen Control the Twenty-Eighth Conference the Governmental Research Association, 1939 (Governmental Research Assn., Detroit, 1940, mimeo.), 139. Ibid., 147. Uniform Crime Reports for the United States and Its Possessions (April, 1934), Warner, “Crimes Known Vol. V, the Police—an Index Crime?” Harvard Law Review (December, 1931), Vol. XLV., pp. 307-331; Thorsten Sellin, “Report on Criminal Statistics,” American Bar Association Journal (May, 1932), Vol. XVIII, pp. 309–311; Thorsten Sellin, “The Basis Crime Index,” Journal Criminal Law and Criminology (September, 1931), Vol. XXII, pp. 335–356; Bennet Mead, “Police Statistics,” Academy (November, 1929), Vol. Annals the American Political and Social Science CXLVI, pp. 74–75. American Public Health Assn., Committee on Administrative Practice, Appraisal Form for Rural Health Work (New York, 1927), 72 pp. American Public Health Assn., Committee Administrative Practice, Appraisal Local Health Work (New York, 1938), 185 pp.; same, The Evaluation Schedule

STANDARDS AND MEASUREMENTS

Ch. I4]

22I

of his work. The standards are said to be equalled or by exceeded about one-fourth of the cities from which data are available.” The criteria are so objective that little is left to the opinion of the appraiser. in

the self-appraisal

Very thoroughgoing and rigorous proofs of the validity of the previously separated city and rural forms have been made.” Indeed, it has been shown quite conclusively

that there is a very direct relation between the amount spent public that is for health administration, score achieved, and the health of the community as shown by the mortality and morbidity rates.

It

should be noted that the American Public Health Association rating form is based upon performance rather than results. In other words, it takes cognizance of the administrative"organization and facilities of the health administration rather than sickness and death statistics (morbidity and mortality rates). There are those who believe that the rating under the appraisal form should be supplemented by statistics of health achieve

. following table, The taken from a survey of Kansas City, Missouri, will indicate how the final score is reached. It will be noted that Kansas City rating per cent, received a of about 68 and that her public health expenditure was less than cities in the same class.”

ments.34

Percentage of Possible X Relative Weights 100 Points

Activity

control ........... - - - - - ................................ Venereal disease control ....................... Tuberculosis control ...........................

-

=

Weighted Score

Communicable disease

65

1.60

104.0

Vital statistics

64

.50

44

.50 .90

32.0 22.0

Maternity hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . . Infant hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preschool hygiene School hygiene Food and milk control Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . •'- - - - - - - - Laboratory . .. .. . . . . .. .. .. . .. . .. .. . .. .. . .. .. .. Popular health instruction Cancer control Heart disease control

............................. ................................ .........................

Total

73 84

.80

55.2 61.6

69

.80

77 73

.80 1.20

69

.70

67

.80

53.6

91

.60 .40

54.6

..................... 47 .20 ................................ 12 .20 .......................... 47 ........... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - .

** American Public Health Assn., Committee Form for City Health Work (New York, 1929),

65.7 67.2

87.6 48.3

18.8 2.4 9.4 682.4

Appraisal on Administrative Practice, p. 1. In 1934 there was issued a new

form with scoring somewhat revised. See G. T. Palmer, “The City Appraisal Form,” American Journal of Public Health (March, 1934), Vol. XXIV, pp. 216–218. ** P. S. Platt, The Validity of the Appraisal Form as a Measure of Administrative Health Practice (American Public Health Assn., New York, 1928), 102 pp. Municipal Government (Municipal Administration ** Clarence E. Ridley, Measuring and School of Citizenship and Public Affairs, Syracuse University, Syracuse, 1927),

appraisal

jº

pp. 23–30. ** Committee

on Administrative Practice of the American Public Health Assn. and the Kansas City Public Service Institute, Health and Hospital Survey (Chamber of Commerce, Kansas City, Mo., 1931), pp. 41–42. In a rating published in 1929, New York City health facilities were rated 709 out of a possible 1,000. M. M. Davis and M. C. Jarrett, The Health Inventory of New York City (The Welfare Council of New York City, 1929), pp. 22, 24,

PLANNING AND RESEARCH

222

[Ch.

14

The American Public Health Association has also set up standard or ganization plans for three classes of communities: a large city, a small city, and a rural community. The various bureaus and divisions are outlined and their duties enumerated and described in some detail. A reasonable budget allowance for each bureau, division, and activity is reduced to a per capita expenditure basis which may be used as a standard or guide in judging public health expenditures. The total adds up to a proposed outlay of $2.17 per capita.” Ira V. Hiscock also has done the same thing for a community of 100,000, proposing a more flexible annual budget outlay ranging from $1.97 to $2.39 per capita, and indicating that these recommendations be used as a point of departure for larger br'smaller communities.”

Fire Fighting and Protection The National Board of Fire Underwriters has since 1916 rated the cities of the United States for the purpose of determining fire insurance rates. The price charged for insurance is based on two considerations: (1) the basic rate for the municipality, and (2) the individual rate for the specific risk, taking into account such factors as type of construction, wiring, and exposure. From the standpoint of measuring administration, only the first or basic rate need be considered. All of the factors entering into a city's fire protection are assigned a total of 5,000 points allocated as follows: water supply, 1,700; fire department, 1,500; fire alarm, 550; police, 50; building laws, 200; hazards, 300; and structural conditions, 700. In deter mining the rating of any city, the numbers given above express the total possible deficiency points in any category. In other words, the larger the number in the final rating, the lower the rank. Cities are divided into classes on the basis of total scores as follows: 0–500 points, class 1; 501–

1,000, class 2; 1,001–1,500, class 3; 1,501–2,000, class 4; 2,001–2,500, class 5; 2,501–3,000, class 6; 3,001–3,500, class 7; 3,501–4,000, class 8; 4,001– 4,500, class 9; 4,501 and over, class 10.*

Some of the criteria used in rating the fire department include: officers, operators, qualifications of chief officers, chief's tenure of office, appoint ment and promotion of officers, enlistment and promotion, retirement, appa ratus, organization and distribution of companies, condition of equipment, reserve resources, fire station, discipline, and training. It is interesting note that stress is placed upon permanent tenure of personnel selected competitive examination, with adequate retirement allowances. There is question but that the National Board of Fire Underwriters has set

j

p. 51.

American

97 Hiscock,

Public Health

Assn.,

op. cit., pp. 305-307.

* Orin F. Nolting, City Managers' Assn.,

Community

Health

Organization

to by no up

(New York, 1927), -

How Municipal Fire Defenses Affect Insurance Rates (International Chicago, 1939). See Harvey Walker, “Grading Municipalities to 1929), Determine Fire Insurance Rates” (League of Minnesota Municipalities, Minneapolis, Pub. No. 29; Ridley, op. cit., p. 13.

Ch.

STANDARDS AND MEASUREMENTS

14]

223

standards of operation which have had their effect in forcing higher performance in fire protection. As Ridley points out, however, it is necessary to measure results as well as operation. Ridley conducted several analyses in an effort to ascertain what, if any, objective

of results might be attempted with any reasonable degree of suc immediately cess. He dismisses fire loss per capita as unreliable because the larger cities contain almost twice as much material per capita subject to measures

He goes on to conclude that the

destruction by fire as the smaller ones.”

of is

to

a to

its

best available factor is the ratio of fire loss to the total assessed valuation of real property, corrected to estimated true value. This true because point available data seems the fact that the total value the improve

of

to

to

in

be

is

It

a

its

is

it,

of

suggested that the scale

be a

if

to

of

A

of

a

of

a

in

be

It

in

of

in of is

It

of

a

on

fairly constant ratio land bears the total value land itself. Furthermore, personal property bears fairly constant relation the value real property. therefore proposed that three criteria used measuring the results protection: per fire (1) number fires million valuation; (2) loss dollars per million valuation (to have double weight); and (3) average loss per fire expressed dollars. claimed that these criteria can used for comparative purposes when done with general way what other cities caution and wisdom. They will indicate accomplishing, they high fire loss.” are but will not discover the source recent study the National Board Fire Underwriters' rating scale show, eighteen years experience tends after with that there little rating which any correlation between city attains and fire loss.

ments

”

-

of

is a

to to

of

is

revised include four factors which are now omitted. These are: “(1) The ability use fire defenses, which matter personnel; (2) fire prevention; (3) moral hazard; and (4) the record fire losses and number of fires.”

Intercity Contests.-The United States Chamber

to

to

to

in

of

to

well

health improvement. order make the encourage cities compete, other all sizes grand award, are given cities who win their

as

fair

to

contests prizes,

and community as

prevention,

In

to

in

as

as

of

Commerce col Safety Council, organizations laborates with such the National National Fire Protection Association, and the American Public Health Association conduct competition between cities such activities traffic safety, fire

in

as

In

a

in

addition respective population class. some years, civic organizations sponsor addi specialized fields, tional contests such disease control and public welfare improvement. the more prominent intercity contests the National Traffic Safety annually Contest conducted the National Council. is

of

An

by

One Safety

of

A.

p.

* *o *

Ibid., 15. Ibid., pp. 19–21. Stone, Fire Insurance Classification Harold Cities and Fire Administration Service, Chicago, 1934), Pub. No. 43, pp. 18–19.

Losses

(Public

PLANNING AND RESEARCH

224

other is the annual Inter-Chamber

[Ch.

14

Fire Waste Contest which was started in

National Fire Waste Council, an affiliate of the United States Chamber of Commerce. In one year, for example, approximately 300 cities with a total population of nearly 30,000,000 entered the contest through their local chambers of commerce. The winners of the grand and respective population prize awards received their honors on the following basis: (1) records of fire loss, (2) educational activities, and (3) permanent improve 1923 by the

ments to eliminate fire hazards.” Another organization, the National Fire Protection Association, sponsors an annual Fire Prevention Week Contest. Over 1,000 cities of the United States and Canada enter this competition. The winners are determined by results obtained from a rating schedule which covers different phases of fire prevention work.” In another field, the American Public Health Association and the United States Chamber of Commerce cooperatively administer the City and Rural Contests. Funds for the City Health Conservation Contest are contributed by insurance companies, while the W. K. Kellogg Foundation finances the rural competition. In Canada the contests are spon

Health Conservation

The spon

sored by both the American and Canadian Health Associations.

sors claim these contests stimulate increased standards of health protection. Each city and rural community is graded by a group of health experts who judge what it does to: its

provide and safeguard water supply; adequate furnish and safe sewerage disposal; reduce infant and maternal deaths; combat tuberculosis and syphilis; protect its citizens against other communicable diseases; insure healthy children; protect and safeguard its milk and other foods; promote effective cooperation with its physicians and dentists, fur nishing necessary services all those who need them; enlarge and improve lay understanding ways and means preventing sickness and death and maintaining good health.*

of

of

of

its

9.

to

i

1.

SELECTED READINGs

&

T.

E.

G.

H., and Schwenning, Sons, Inc., New York, (John Wiley

Anderson,

of

BOOKS AND MONOGRAPHS The Science 1938),

Production

Organization.

pp. 64–91.

(Amer

396

p.

“...The City Vol. XC, 458.

(International City Managers'

Assn.,

Chicago),

p.

1941

ft.

Ibid.,

p.

Municipal Year Book,

The

*

396

**

31

Cincinnati Regional Crime Committee. The Cincinnati Police Beat Survey. pp. ican Public Welfare Assn., Chicago, 1937, mimeo.),

and Rural Health

Conservation

Contest.”

Science

(November

17,

1939),

Ch. I4]

-

STANDARDS AND MEASUREMENTS

225

General Appraisal Standards and Methods for Measuring Public Bloomington, 1942, Administration. (Institute of Politics, Indiana University, mimeo.), 21 pp. Davis, Mayhew. “Job-Load Analysis and Planning Procedure in the Forest Service,” The Work Unit in Federal Administration. Public Administration Service, Chi cago, 1937), pp. 31–35. Glaser, Comstock. Administrative Procedure. (American Council on Public Affairs, Washington, D. C.), 207 pp. Lambie, Morris Bryan. Erperiments in Methods of Municipal Analysis; with special application to the 351 cities and towns in the commonwealth of Massachusetts. (Harvard Graduate School of Public Administration, Bureau of Research in Municipal Government, Cambridge, 1941, maps), 306 pp. National Recreation Association. Schedule for the Appraisal of Community Recrea tion. (National Recreation Assn., New York, mimeo., undated), 26 pp. Nolting, De Wayne E. A Model Records and Reporting System for Fire Depart ments. (Public Administration Service, Chicago, 1938), 78 pp. Ridley, Clarence E., and Simon, Herbert A. Measuring Municipal Activities. (Inter national City Managers' Assn., Chicago, 1938), 102 pp. Scott, James E. “Executive Work Load Measurement,” The Work Unit in Federal Administration. (Public Administration Service, Chicago, 1937), pp. 26–31. Simon, Herbert A. Determining, Work Loads for Professional Staff in a Public Wel fare Agency. (Bureau of Public Administration, University of California, Berkeley, Clack,

Douglas.

1941), 94 pp.

Simon, Herbert A. Fiscal Aspects of Metropolitan Consolidation. (Bureau of Public Administration, University of California, Berkeley, 1943), 67 pp. Simon, Herbert A., Shephard, Ronald W., and Sharp, Frederick W. Fire Losses and Fire Risks. (University of California, Berkeley, 1943), 65 pp. Tenner, Irving. Cost Accounting and Work Measurement in the Federal Government. (Municipal Finance Officers Assn. of the United States and Canada, Chicago, May, 1942), Cost Accounting Bulletin No. 4, 72 pp. Warner, Sam B. “Statistics of Crimes Known to the Police,” Governmental Research Proceedings of the Twenty-Eighth Confer and Citizen Control of Government. ence, Princeton, N. J., September, 1939. (Governmental Research Assn., Detroit, January, 1940, mimeo.), pp. 138–143.

PERIODICALS Bellman, Arthur. “A Police Rating Scale.” Journal of Criminal Law and Criminol ogy (May-June, 1935), Vol. 26, pp. 74–114. Parratt, Spencer D. “A Critique of the Bellman Police Service Rating Scale.” Journal of Criminal Law and Criminology (March–April, 1937), Vol. 18, pp. 895–905.

Parratt, Spencer D. “A Scale to Measure Effectiveness of Police Functioning.” Journal of Criminal Law and Criminology (January–February, 1938), Vol. 1, pp. 739–756.

-

Simon, Herbert A., and Divine, William R. “Controlling Human Factors in an Experiment.” 1941), Administrative Public Administration Review (Autumn, Vol. 1, No. 5, pp. 485–492. Stouman, K., and Falk, I. S. “Health Indices, a Study of Objectives, Indices of Quarterly Bulletin of the Health in Relation to Environment and Sanitation.” Health Organication of the League of Nations, Vol. 5, pp. 901–1081.

PART FOUR PERSONNEL

CHAPTER

15

THE PERSONNEL PROGRAM Current Status of the Merit System Early public personnel practice in the United States has been largely un coordinated and decentralized. Haphazard employment and personnel policy has been widely accompanied by the so-called “spoils system.” Beginning in with the enactment of the Pendleton law establishing the federal Civil Service Commission, the last 60 years have seen the development of the civil service movement. The pioneers of this cause deserve the undying gratitude of every living advocate of a skilled and professional public serv ice. Especially is this true of the National Civil Service Reform League, which has long rendered excellent service in the cause of better government." Also doing splendid work for continued civil service reform is the National League of Women Voters. Their successful efforts have been ascribable, in large part, to their belief that the necessity for organized citizen support for a merit system does not suddenly cease with the passage of a civil service law.” Concrete results are evidenced by the existence of civil service commissions in some 650 states, cities, and counties. If additional testimony is required, one need but point to the fact that approximately three-fourths of the million federal employees in June, 1940, were under civil service.” At the same time 900 cities had at least a portion of their employees under some type of merit system; substantially a score of states had full-fledged 1883,

operating merit systems and every state had a partial merit system, the sult of the influence of federal aid in social security.”

In

spite

re

of this imposing achievement, however, the civil service move

ment has largely failed to give the governmental units of the United States unified and coordinated personnel administration. The duties of civil service commissions, in the past, have been concerned primarily with administering

To the state and local units has been added the task of hear ing appeals of removed or suspended employees, frequently with power of entrance tests. reinstatement.

T. F. M.

Emphasis has been placed on the so-called negative aspects

Stewart, The National Civil Service Reform League, History, Activities, and Problems (The University of Texas, Austin, 1929), 304 pp.; The organization's name is now the National Civil Service League. * Betsy Knapp, The Awkward Age in Civil Service (National League of Women Voters, Washington, D. C., 1940), pp. 34–38. * United States Civil Service Commission, 57th Annual Report (Government Printing Office, Washington, D. C., 1941), p. 34. * Civil Service Agencies in the United States, a 1940 Census (Civil Service Assembly

of

the United

States and Canada, Chicago,

July, 229

1940),

pp. 5–6.

-

230

PERSONNEL

[Ch.

15

of civil service, the thwarting of the spoilsman. There was a corresponding lack of attention to those technical phases of personnel administration by which contemporary practice is beginning to lay so much store. These in clude the maintenance of classification and compensation plans; control of time off, vacations, and sick leave; efficiency ratings, and the improvement of working conditions in general. Under the civil service régimes the chief object of the commission was to remain aloof from the politicians, whether' the “ins” or the “outs.” The principal weapons in achieving this end were competitive examinations and hearings of discharged workers. Without desiring to belittle the positive accomplishments of the civil service movement, one is compelled to say that it has failed to answer the personnel needs of today. The professional personnel administrator is im patient of the limitations placed on technical progress by his masters on the amateur commission. A great many intelligent laymen look upon civil serv ice as a scheme to protect government employees from the normal conse quences of indolence and incompetence. In no small number of cases these suspicions have been confirmed in practice by the experience of vigorous such as certain city managers, who have found difficult re provisions moval disastrous to morale. These criticisms are not aimed at the merit system. The term “merit system” must be distinguished from “civil service.” A civil service commis administrators,

sion may be in effect a centralized agency for dispensing patronage or for ratifying such patronage. The merit system goes much farther than the mere form of a personnel agency, however. It demands a certain spirit in

conformity with the dictates of merit, an intelligently

directed and well supported effort to make appointments and promotions and fix compensation on the merit basis. A merit system may exist minus the usual trappings of

It is

entirely conceivable that a rather thoroughgoing merit system could exist without a commission to give examinations." It has been actually demonstrated that a merit system can exist where a discharged

“civil service.”

employee is given no legal recourse." In other words, good personnel ad ministration is not dependent on any magic formula known as “civil serv ice.” It results, rather, from an application of the merit spirit through a personnel program based on a desire to utilize the most reliable technical progress in the field.

Changing Nature of Public Personnel Administration Public personnel administration has evolved through three broad eras, phases, or philosophies. While one phase followed the other quite logically and chronologically for the most part, the development has not always been * In Cincinnati and the state of Wisconsin the commissions do not control examinations. * Federal civil service and many council-manager cities.

Ch.

THE PERSONNEL PROGRAM

231

all

15]

jurisdictions. The first era was the policing era when the civil service commission and staff attempted maintain tight super operating, departments vision and control. The attitude was that the line, spoilsmen, who were unfriendly were the hands the merit system in

to

in

of

or

to

its

simultaneous

of

of

a

of

oil

a

be

and consequently could not trusted. Personnel administration assumed self-righteous pose. Everyone not anointed with the holy civil service being was suspected ravisher and rapist. The permanent staffs the

individuals, but without

or

As

were well-intentioned

of

civil service commissions

of

of

of

a

fact, technical much professional technical attainment. matter public personnel did not develop appreciably until the time phases the public personnel administration was first World War. The second era

in

in

V.

as a

in

in

the technical phase which started the decade after 1910. Chicago adopted 1912," and the Army brought classification plan such psychologists Bingham W. and Walter Dill Scott 1917.* The short-answer test

a

It

of

is

an

eliminated the old essay form and the psychometrical becoming ever more dominating influence.” increasingly aspect public personnel administration has This technical unquestionably had tremendously wholesome influence. has brought into to

has now practically approach testing

to

be

In

creative and experimental outlook, science; but the technicians have

a to of

the public service keen intellects with motivated by the spirit and approach their defects, which are just coming

it

of

an

in

to

in

evident. order secure technicians with basic training administration and psychology, has been bring young people necessary exceptionally large proportion

a

They have had

zeal

their teachers. They

acquire rather quickly the technical competence necessary been handicapped, primarily environ by

have been able

to

of

highly intelligent, earnest, energetic, and industrious. public service drilled into them for the ideals

by

of

on

in

an

A

at

glimpse practically any progressive public direct from the colleges. extraordinarily low aver personnel agency 1940 would have revealed age age the part the staff members. These individuals have been

for their positions; but they have of

in

to

of

employees were mental and sociological considerations. The great mass hostile the bringing these younger people over their heads into positions which the older workers have thought themselves not only entitled on

of

of

to

30

to

to, but better qualified fill. The senior departmental officers have often having years age resented deal with individuals hardly vital position classification, compensation, and recruiting, especially matters up

when the younger person represented authority. Time and again the per through the technical approach had sonnel administrators who had come in

p.

*

in

Committee on Position-Classification and Pay Plans the Public Service (Ismar Baruch, chairman), Position-Classification the Public Service (Civil Service Assembly,

II:

of

in

D.

P.

J.

sº

of

I:

*

of

8.

Chicago, 1941), Committee on Classification Personnel the Army, The Personnel System the History United States Army, Vol. the Personnel System, 713 pp.; Vol. The Per Printing Office, Washington, C., 1919). sonnel Manual, 342 pp. (Government Guilford, Psychometric Methods (McGraw-Hill Book Co., Inc., New York, 1936), pp.

PERSONNEL

232

[Ch.

15

neither an aptitude nor taste for public relations either with the outside or with the departmental officers. In those thousands of personnel matters which are neither distinctly black nor white, the tendency was too often that of “take it or leave it.” Irrespective of the abstract justice of such situa tions, no cause, movement, or individual

will survive if there is insistence

in

upon dealing with adults in this manner. Such is the background of fluences and events leading to the third phase of personnel administration

upon which we are now entering. The personnel era which is just dawning is most aptly described as that of salesmanship. More and more leaders are recognizing the fact that good personnel practices cannot be achieved by imposition from above. They have further realized that there is tremendous resistance from both officials and the rank and file of employees to the actual, concrete application of the accepted dogmas and credos of the personnel technicians. Recent research in management has revealed the tendency of workers to have sentiments and desires of their own which run counter to management's logic of efficiency. Moreover, the sentiments of the lower supervisors are quite as likely to be

with the workers as with management.” Progressive management philos ophy and practice is also emphasizing the necessity for regarding personnel administration as a primary responsibility of the line, with the central staff agency as a service unit rather than an agency emphasizing its control as pects. Thus the new personnel administration will be one dominated by the training spirit wherein the technicians make a friendly approach to the line by means of training, conferences, consultation, and judicious public rela tions. Instead of personnel administration being confined to the central agency, there

will

be a personnel officer in every department, division,

and subunit of the line organization which is large enough to justify it.” This already exists in many federal departments and bureaus. Alongside of each one of these personnel officers, if not under him, will be a training unit. The objective will be to get the line supervisors and their workers to accept and apply good personnel practices. agency and control aspects will

This does not mean that the central

to

secure voluntary

F.

a

manner measures.”

as

it in

it

be

its

eliminated, but does signify that the officer who administers central controls will know how to do such acceptance without the need for coercive

J.

J.

of

of

3.

A.

of p. 1,

of

in

A.

**

D.

:

of

**

**

Roethlisberger and William Dickson, Management and the Worker (Harvard University Press, Cambridge, 1939), pp. 548, 557. personnel administration Note Lewis Meriam's classification into (1) operating personnel administration; (2) control personnel administration; and (3) developmental per sonnel administration. Public Personnel Problems from the Standpoint the Operating C., 1938), Officer (Brookings Institution, Washington, Devoe, Maxwell Administrative Relationships Public Personnel Agencies.” Nicol, “The Role Public Personnel Review (January, 1941), pp. 18–27; Eric the Management,” An address given before the Civil Service Assembly Personnel Director United States and Canada, Cleveland, Ohio, October 1940 (mimeo.), 23, pp.; and Nicol, “Management and the Personnel Director,” Personnel Administration (February, 1941), Vol. III, pp. 1–7.

Ch.

THE PERSONNEL PROGRAM

15]

233

Essentials of a Personnel Program The activities engaged in by this new personnel administration will be much broader than those typical of the traditional civil service commission. The latter has been so overburdened with the crushing load of giving exami nations that it has had little in the way of funds and energy to devote to anything else. Even position classification has been an aspiration and theoretical concept more than an accomplished fact. There were formerly many public personnel men of some note who openly declared that public personnel administration had little, or nothing, in common with private or industrial personnel. They were prone to make this announcement with an

air of virtue, implying superiority.

Industrial personnel has not, for the part, technique most embraced the of written tests for either recruitment or placement. It is often assumed, furthermore, that position classification

and salary standardization are the unique property of public personnel ad ministration, but the error of this assumption becomes immediately apparent upon examination of the footnote citations in the Civil Service Assembly's recent volume on classification.” A very sizable proportion of the technical

literature in this field comes from industrial management. The adoption by the personnel people of the ameliorative approach to the line departments will bring public personnel closer to the program of activities regarded as appropriate in private personnel work. There will be much greater emphasis upon such items as training, counseling, placement, and employee relations. Two forces working in opposite directions are uniting in the center to bring public personnel and industrial personnel much closer together. The union ization of industry has compelled management to abandon the “hire-and

to is

an

In

do

its

by

fire” approach in favor of the new industrial relations. Public personnel has found itself stymied in the approach to worthwhile objectives the line them, oppose officers and workers who not understand and hence them. both industry and public administration the approach today toward

A

a

a

of

of

unbending personnel management the worker on the line, the line supervisors and workers. The following list constitutes the elements such comprehensive program for merit system. basic constitutional

provision and the enabling statute

Position classification Recruitment and selection Placement Compensation plan

Wage levels and standardization

Position-Classification and Pay Plans

in

Committee

on

*

Efficiency and service ratings Retirement, disability, and death benefits the Public Service,

op. cit.

PERSONNEL

234

[Ch.

15

Training and movement Employee training and counseling Promotions and transfers Separations and turnovers Employee relations Morale and employee cooperation

Environment: safety, health, welfare, etc. Attendance, hours of work, leaves, etc. Personnel

research

Formulation of rules and regulations Investigation of the operation of the basic law Research in personnel methods and techniques Forms, records, procedures, and reports Public relations 14 The above list, published in

1940, is

still an accurate outline of progressive

public personnel administration with one exception: the employee relations category should give more attention to labor unions and employee organiza tions. An ever-increasing area of public jurisdictions is engaging in face to-face negotiations with employee representatives, as discussed in Chapter 20 below.

The Spoilsman Still Rides *

The foregoing account of the trend from a negative to a more positive type of personnel administration does not mean that the need for the watch fulness, militancy, and zeal of the reformer is over. All great social move ments need their crusaders; and even after the struggle has achieved substantial success, there have to be those who stand on guard against retro gression and despoliation. In spite of the impressive gains made in behalf of progressive personnel movements in the last decade, there are influences constantly seeking to undermine the achievements today.

Denials of the Merit System The actual administration

of the so-called “civil service” has not always of its friends.” Because of indiffer

been such as to excite the admiration

ence, public apathy, and the purely negative tactics

have been able frequently

of reformers, spoilsmen

to mold the system to their own purposes.

In

** Henry F. Hubbard, “The Elements of a Comprehensive Personnel Program,” Public Personnel Review (July, 1940), Vol. I, pp. 1–17; William E. Mosher and J. Donald Kings ley, Public Personnel Administration (Harper & Bros., New York, 1941), pp. 89–106; Programs for Smaller Cities (Public Administration Service, Chicago, 1940), Personnel pp. 5–6; Fred Telford, Essentials of a Comprehensive Personnel Program (Civil Service Assembly and Bureau of Public Personnel Administration, Chicago, 1930), 16 pp. Record, 75th Cong., 1st sess. (1937), ** For example, see remarks in Congressional p. 9275.

THE PERSONNEL PROGRAM

15]

-

235

all

Ch.

of

of

other cases an uncreative and self-satisfied type of administration has but spirit. denying system nullified the merit Some the means the merit are set forth below.

Provisional Appointments.-Regulations

filling posi wholly justifiable arrange

usually

permit

in

to

of

if

is a

tions temporarily without examination. This properly handled, need not violate merit principles. When ment which, appointments such include from one-fifth one-half the service, and when they are continued indefinitely for months and years, they result

could

order given

continue eligible

or

in

once

be

at

to

or

conditions force the department bureau act functioning and before any formal examination

to

or

60-day limit for such provisions.” case emergencies unforeseen

in

is

pointments even though the law had set necessary The provisional clause

a

a

a

is

of

at

is

of

It

of

said that one time 40 per cent the Chicago service provisional consisted such appointments. One extreme case that appointee who held position for nineteen years through successive reap serious abuses.

of

be

suggesting names

to

take the initiative

in

a

be

be

of

its

on

is

provision

to

is

it

a

fraught with danger and compli cations, place definite restrictions wise use. Among the more common limitations are the requirements that the time limit such service final; that appointees previous applicants; taken from the list that qualifying examination taken and passed; that the personnel agency list established. Since such

the appointing

officer.”

as

as

private secretaries and secret investigators; part-time, temporary, gency positions; laborers; and certain other positions, such those attorneys. good exemptions ernment There are reasons for these

emer

if of

or

a

of

be

of

Exemption Specific Positions.—Civil service laws sometimes ex empt specifically named positions. These are thereby removed from “civil service status” and may filled without examination. Chief among these exempt positions are: positions confidential nature, such certain

gov they

agency.

Any large number

A

he

a

to

of

he

to

in

or

in

a

no

be

to

to in

high political officer may good faith actual practice. person need from time time two whom has implicit trust. There objection permitting him seems choose directly few asso ciates, upon whom depends most, without contacting the personnel are carried out

these positions, however, would immediately

raise the supposition that they were created solely for spoils purposes.

Posi

an

accepted competitive

selected

on

of

to

in

G.

p.

Mosher and Kingsley, op. cit., 259. Housing Management Rosahn, Civil Service Beatrice Relation (Citizens' Housing Council New York, 1940), pp. 5–7. ** **

of

on

no

by

is

methods. means complete agreement this question the government's lawyers. The President's Committee Civil

However, there handling

by

why legal personnel cannot

be

is

of

of

attorney are frequently exempted. tions involving the qualifications Friends the merit system have maintained that there no good reason

Personnel

PERSONNEL

236

[Ch.

15

Service Improvement in their 1941 report were so split on this proposition that they submitted two separate plans in respect to the induction of attor neys into the federal service.” is also a fairly usual practice to exempt common labor and certain other positions which are usually highly technical or specialized. Exempt ing the labor group has been widely defended on the ground that including

It

it would, by the ambiguous character of the duties and seasonal peak em ployment loads, add too much of a burden to the already overworked and understaffed personnel agency. It has also been claimed that this type of work was not important enough for the attention of the agency. Be that as it may, the continued exemption of such workers leaves wide open the door to spoils appointments in the lower ranking classified positions, such engineering, and as clerical, trades—skilled and semi-skilled—laboratory, the like. When persons are appointed as common laborers to positions

carrying the duties of a regularly classified position, the merit system is obviously evaded. The exempting of many specific positions from the usual process

of competitive appointment constitutes perhaps one of the most

serious and easily exploited possibilities of abuse in the personnel field.” Frequent exemptions of positions—especially in the lower brackets—from examination on the grounds of impracticality of competitive testing is often an admission

of one of two things, either the incompetency or the political

mindedness of the personnel agency.

Control of Promotions and Compensation.—The merit principles may be vitiated by

lack of central control over promotions and compensation. In any jurisdiction there are a number of relatively low-grade positions. Political favorites can secure appointments to these posts by passing the required tests in a thoroughly above-board fashion. It is a common practice, however, to transfer or promote these favorites to more lucrative positions after they have once been regularly appointed to original minor posts. While the outward appearance of merit in appointment is maintained, for all practical purposes it is completely nullified.

Withdrawal of Financial Support.—Personnel administration has gen

of

all

erally been handicapped by the lack of adequate financial support, but occa sionally the legislative spoilsman resorts to the drastic means of starving support. The Bureau the merit system by withdrawing Public

a

of

on

in

be

Personnel Administration even fifteen years ago claimed that five dollars per year per employee the service under jurisdiction would none too much for the support central personnel agency. Others would insist

D.

p.

**

18

President's Committee on Civil Service Improvement, Report, 77th Cong., 1st sess., Printing Office, Washington, C., 1941), pp. 29-55; House Doc. No. 118 (Government also see infra, Chapter 31. Mosher and Kingsley, op. cit., 112.

Ch.

THE PERSONNEL PROGRAM

15]

237

ten dollars per employee as an absolute minimum.” Generally speaking, while the most effective work is being done by those agencies which exceed five dollars per employee, this minimum amount is perhaps only relative if one takes notice of the good job done by New York City on less than four dollars per employee.” The State of Michigan has guaranteed mini mum support

of civil service through constitutional amendment.

Political Control.-Outright political control of commissioners, in the sense that the personnel agency is run as a spoils vehicle, may be relatively

Political influence is usually more subtle. It takes the form of finan cial starvation, perfunctory testing, and exemptions. It is quite possible, moreover, to have good personnel administration under a more or less par tisan board. It often happens that commissioners with an avowedly partisan flavor will have a sincere belief in the fundamental purposes of the merit system. On certain matters of vital partisan concern they will bow under the pressure of their political chieftains. At the same time, the great mass of personnel work will go on with reasonable attention to accepted stand ards. Even civil service commissions desiring to enforce the merit spirit rare.

will find themselves thwarted by the contamination of a patronage environ ment.” One of the irritating aspects of federal personnel administration is the tendency of discharged or disaffected employees to seek the interven tion of Congressmen. A disgruntled individual can frequently create suffi cient stir to get a Congressman to take a personal interest in his case.” Educational Requirements.-It frequently happens that members of city councils and civil service commissions are persons who have attained their positions in the world without much formal education. They feel that mere school attendance is no criterion for assuring performance in any par ticular post. There is constant political pressure on them to lower educa tional requirements for entrance to examinations. Along with this goes a resistance to the introduction of the newer type psychological tests. It is demanded that tests be “practical.” This cry is frequently a political sub terfuge for lowering recruiting standards. Congress has recently placed severe restrictions on formal education as a prerequisite for appointment to a position or taking an examination. The Civil Service Commission has interpreted this provision so literally that departments like Agriculture with large numbers of technical and professional positions have had to re

* Merit System Kingsley, Installation Mosher and * See, William E. Mosher's (Ed.),

(Public Administration Service, Chicago, 1941), p. 3. cit., p. 71. reference to the “patronage committee” in L. D. Upson Cincinnati and Hamilton County (City Survey Committee,

op.

**

The

Government

Cincinnati, 1924), p. 153.

of

*An interesting variation is seen in the testimony of disgruntled employees before a Senate Investigating committee; see, for example, United States Senate, 76th Cong., 1st sess., Special Committee to Investigate the Administration and Operation of the Civil Service Laws, Hearings pursuant to Senate Resolution 198, 75th Cong. (Government Printing Office, Washington, D. C., 1940), 133 pp.

PERSONNEL

238

[Ch.

15

late their job descriptions to particular technical courses in order to secure minimum educational standards. The evil in such a situation is that techni cal and trade courses are emphasized to the exclusion of background general education.

and

Opposition of Professional Groups.-Certain professional groups have voiced opposition to civil service regulations. Among them have been the city managers, librarians, and educators. They have felt that their own system of selection has been superior to that of the local civil service com mission, and they have frequently been correct in this assertion. Capitu lations to the demands of other interest groups not professional in nature may have the effect of denying the merit principle. It is felt by many that veterans' preference is inimical to the best interests of good personnel ministration. This matter will be treated at greater length later.

ad

Organization The form of organization

that should be adopted for the personnel agency is a matter on which general agreement has not yet been reached, either among students or among administrators themselves. The forms taken by civil service commission structure in practice are too numerous

a

its

for fruitful enumeration here. Suffice it to say that the typical central per sonnel agency has been headed by a commission appointed for overlapping terms by the chief executive with the affirmation of the council or Senate. This body takes general charge of the personnel matters placed within jurisdiction. Of late years there has been reaction away from the com in

is

probably more dependent upon the sincerity, vigor, and competence staff than upon any other factor.”

of

of

of

is

to

of

a

in

of

single-headed personnel agency placed directly favor the remains, however, good personnel administration. The fact that administra organization. Without belit tion found exist under various types tling the importance organization, the quality personnel administration mission

the

control minutely the technical details

of

tendency

to

to

of

on

Dissatisfaction with the civil service commission, the other hand, has widespread deny importance organization problems. become too the Probably the chief indictment against the commissioners has been their

experience

in

to

not hostile, the merit principle. Seldom have management the field found their way into these

if in

persons lukewarm,

people

In of

of

of

administration. Some appointments commission members have been purely political nature and intent. In such cases the commission would come under the control

an

to

bodies. those cases where persons friendly merit principles do receive appointment, they frequently take attitude which militates against merit

5,

**

Editorial, “Improving Public Personnel (May, 1930), Vol. VIII, No. pp. 65-66.

Administration,” Public Personnel

Studies

Ch.

THE PERSONNEL PROGRAM

15]

239

They regard themselves as the protectors of the employees in removal and discipline cases. This factor, more than any other, has in

whom have been thwarted remove employees whom

of

by

of

to

alienate the city managers, many attempting civil service commissions they deemed insubordinate and incompetent. served

to

all

in practice.

This protectionist complex of

to

be

a

an

of

in

of

it

of

to

is

of

is

is

in

a

as

or

be

it

it.

of

to

civil service has tended the merit system become critics For this situation the commission cannot escape just unjust. the chief blame, whether There has been reaction against civil service commissions the domi nating influence personnel administration. gradual departure There conception from the old that civil service inviolate domain Presidents, governors, mayors, and shielded from the encroachments city managers. The new personnel administration work more closely with the line departments and officers. The President's Committee on Administrative Management actually recommended the abolition the United States Civil Service Commission, criticizing for excessive delay, meeting new problems, lack understanding of, and insufficient initiative sympathy with, the operating personnel problems and needs the depart to

cause many sincere friends

Inents.

is

is

a

of

in

of

It

a

in

of

in

to

in

of

.

.

to .

The Commission has shown relatively little tendency, however, interest itself the constructive and developmental activities major adequate personnel agency. an central Its interest appears negative remain the and restrictive activities attendant upon the posi enforcement the civil service laws and rules, rather than tive and cooperative approach toward improved recruitment, place ment, training, and morale-building activities. questionable organization present capable whether the Commission its form positive approach.” such

has recently taken more constructive, positive, and functions, largely under the leadership creative approach such pro gressive commissioners Leonard White and Arthur Flemming.

D.

of

its

as

to

a

The Commission

a

be

by

a

a

of

Committee advocated the establishment new per well-qualified, nonpolitical administrator. sonnel agency under He should special examining selected under civil service rules committee. The

The President's

by

be

to

of

a

Committee did not completely abandon the board idea and recommended appointed new Civil Service Board seven members the President with the advice and consent of the Senate. The members of the board

63

5

p.

Personnel Administration C., 1937), (p. D.

on

*

President's Committee Administrative Management, the Federal Service (Government Printing Office, Washington, large edition).

in in

an

in

of

be

be

would serve only part time without regular salary but would reimbursed for actual time and expenses. The board would not the administrative investigative, watchdog, head the department but would work only

PERSONNEL

240

[Ch.

and advisory capacity with the main objective to protect the public

15

inter

est.26

Most people are accustomed to the old type civil service wherein an inde pendent commission was supposed to protect the classified service from the spoilsmen. Many will, therefore, object to placing all personnel matters directly under the President, governor, mayor, or city manager. In reply,

of the new movement would say that political influences have on countless occasions nullified the merit system under the old civil They furthermore legal safeguards. service institutions, in spite of all

the proponents

of

by

or

of

to

be

at

be

no

politics than declare that personnel officers will more the mercy gain the under the old arrangements. On the contrary, they may able working governors mayors confidence with them instead of—in of

by

is

It

in

of

of

or

governor—at cross purposes. One the eyes the mayor the favorite nullifying ways starving the per civil service laws the past was thought that more adequate support will sonnel agency financially.

in

a

of

service

growing opinion that also those communities where civil accepted institution, the danger from spoils constitutes one an

There

is is

it

to

result from connection with the chief executive's budget agency. Experi ence has tended show that alliance with the executive has given the per sonnel agency far more authority and real power than ever had before.

of

In

to

a

be

to

is

as

an

of

public personnel administration. Instead standing the lesser hazards ever-suspicious watchdog, the new per aloof from the departments friendly guide and technical adviser sonnel agency them.

by

of

of

of

to

it

to

correct faulty classification and compensa shopworn means with the adequacy testing, and general complacency relative loose methods administra tion. These conditions may exist without spoils influence, and they are

this capacity will attempt tion plans, smug satisfaction

thought

many

to

of

of

a

a

to

to

constitute the real enemies civil service. organize There are three very broad and general ways central per type; agency. personnel sonnel These are: the commission the director quasi-legislative and (or) under the chief administrative officer with quasi-judicial commission; and the single-headed type with no commission. The following pages will set forth the general characteristics these types organization.

6,

United States,

1940 Census,

pp. 18, 28.

of

by

or

council.” The feature

-

the

a

in

##! 10.

the Senate

Generally, the commission the President, governor,

7.

Ibid., pp. Service Agencies

in

most cities. five members appointed

of

or

states, and

three mayor with the affirmation

*

or

will consist

of

number

of

system,

a

in

is

of

of

personnel agency exercising control Commission Type.—The type governmental employees over the greatest number still the typical civil service commission.” This has been found traditionally the federal

Ch. ,

THE PERSONNEL PROGRAM

15]

24I

terms, with only one member retiring in any one year, supposed is to maintain continuity of policy and procedures. The combina judicial, and executive—that the agency car tion of functions—legislative, ries on has been recognized as the reason for the common requirement that having overlapping

the major political parties be represented by membership on the board simultaneously.” In the County of Los Angeles three political parties represented. must be In the larger services the commission is aided by a

full-time technical administrator frequently known as the secretary or chief Sometimes he has civil service status; more often he serves at

examiner.

the pleasure of the commission.” The members of the commission them selves rarely devote full time to the service. They do, nevertheless, fre SENATE OR CITY COUNCIL

CHIEF EXECUTIVE

2^

~

2^

w

CIVIL SERVICE COMMISSION (ADMINISTRATIVE POWERS)

SECRETARY

CLÉRICAL

*

Figure

17.

AND TECHNICAL

STAFF

Commission with Administrative

Powers

matters, usually having the authority to direct the details of administration if they so desire. It is this inter ference with administration by laymen which produces most dissatisfaction

quently meddle with administrative

with a personnel agency headed by a commission.

Director and Commission Type.—The second general type of per sonnel agency embodies a director of personnel directly under the control of the chief executive, chief administrative officer, director of finance, or ** The Technique of Municipal Administration (The Institute for Training in Municipal Administration, Chicago, 1940, mimeo.), p. 131. Digest of State Civil Service Laws (Civil Service Assembly. Chicago, 1939), 35 pp.

*

PERSONNEL

242

[Ch.

15

This official is in charge of the technical and purely administra aspects tive of personnel work. With respect to these phases he is effec tively insulated from interference by the commission. The commission, on the other hand, is given certain quasi-legislative and quasi-judicial Quties; indeed, rule-making and investigative power may controlling nature. of

An example

this type

of

in

be

its

manager.

arrangement

is

in

by

a

to

of all

of

a is

in

offered the Wisconsin up personnel board, 1929. That statute sets which make rules respecting state personnel matters. Such personnel director appointed rules are made upon the recommendation the governor and located the executive department. They are, more personnel law given the power

administered

the personnel director.

CHIEF

rules

as

its

the operation

of

The law gives the personnel board to

the governor's approval. conduct investigations

as

thé authority

by to to

over, subject

The board also hears appeals from

ãº.

EXECUTIVE

§: º

CIVIL SERVICE

COMMISSION

DIRECTOR

QUA5HJUDICIAL POWERS ONLY.

OF

PERSONNEL

18.

TECHNICAL

Wisconsin-Cincinnati

Type

STAFF Organization

by

Figure

AND

of

CLERICAL

is

of

is

In

The manager, therefore,

to

civil service commission.

of

a

by it

on

to

any action taken the director, although the statute fails state whether may overrule the director appeal.” appointed Cincinnati there personnel who the city manager director ex-officio secretary

91

Wisconsin

Statutes, 1931, pp. 172–174;

Wisconsin

directors

of

the board

of

mission members are appointed one each

by

to

to

of

to

is

able maintain administrative control over the director, subject the rule-making and advisory power the commission. The latter has the authority review suspensions and dismissals and reinstate discharged persons. The com the

the

Session Laws, 1931, Chs. 45, 424.

of

of

University Cincinnati, the board District, and the mayor, respectively.”

education

of

is

243

the Cincinnati

The Single-Headed Type.—A third general type

of

a

to

central personnel agency. This form existed for many years St. Paul where the elected City ex

Comptroller served

of

in

organization

is

the director activities commonly appertaining

as

by a

is

It

of no

public personnel single officer, frequently board. headed known personnel, who charged with the administration those

agency has

of

School

of

ch,

THE PERSONNEL PROGRAM

the case

in

under the control

officer. Such

is

director

to

of

is

as

officio Civil Service Commission and head the place the Civil Service Bureau. The more accepted practice, however, the chief executive or chief administrative Maryland where the State Employment Commis

CHIEF-EXECUTIVE

DIRECTOR OF PERSONNEL

CLERICAL AND Figure

TECHNICAL

Completely Integrated

19.

STAFF

Personnel Organization

ises charters.

the natural development

in

be

to

to

of

is

in is

A

appointed by, and responsible to, the governor. similar situation Pasadena, California, where the personnel officer immediately exists prom responsible manager. Indeed, variety personnel agency the this sioner

smaller cities having council-manager -

it

as

on

of

of

of

City managers have frequently expressed impatience and dissatisfaction they have seen practiced. At some with certain aspects civil service the earlier annual conferences the International City Managers' Asso

XXIV,

to

1.

of

the City of Cincinnati (1926), Art. V. Sec. Consult also Fred Telford, Personnel Legislation,” American Political Science Review (February, 1930), Vol. pp. 104–109; Mosher and Kingslev, op. cit., pp. 85–87. No.

Charter

“Recent

1,

**

in

of

antagonism. Investigation ciation discussion the subject bordered usually revealed that the managers who thus expressed their hostility had seeking encountered difficulty remove employees whom they deemed

PERSONNEL

244

[Ch.

15

incompetent, and in some cases absolutely disloyal. Hearings before the civil service commission had frequently created tense situations as the result of the reinstatement of men removed by the manager. More often than not

this situation would arise in the police department, which is always the manager's most prolific source of worry. It was seen that this situation stood in the way of a happy understanding between professional personnel administrators and city managers.' In 1929–1930 a joint committee of the

In

of

all

two groups sought to study the problem. Composed of John N. Edy, of city managers renown, and Clifford N. Amsden, now secretary and chief examiner of the Los Angeles County Civil Service Commission, it reported in 1930. The recommendation drew largely on a tentative report of a com mittee working on the personnel provisions of a then forthcoming edition of the National Municipal League's Model City Charter.” in

of

of

the council.

However,

personnel board appointed largely Its powers would

it

would have preliminary review appeals rules issued and would hear case any employee under the system rank, suspended. This then would create sub were removed, reduced Cincinnati, described above. stantially the same situation prevails

in

as

in

or

in

advisory and investigative.

by a

be

In

nonpartisan

be

should established larger cities there would for six-year, overlapping terms a

to

the city service should exceed 1,000, there department personnel under personnel director. a

positions

of

be

When the number

in of

science and skilled

He might appoint someone “familiar with the personnel administration” the art assist him.

in

the council for adoption.

of

to

to

to

be

general, it was suggested that aspects personnel administration largely manager should left the direction the the smaller cities. prepare rules governing personnel procedure and present them He was

1941 edition

of

the Model City Charter retained essentially the same with the added requirement that the personnel director “shall Today, personnel administration.” have had training and experience type city manager keenly appreciative good the better the that may

The

“

of

is

of

in

provisions,

to

result from professional personnel administration. One will still find him. quite sensitive, however, the embarrassment that may accrue from diffi provisions cult removal under civil service.”

The Departmental Personnel Office branches:

personnel into three main the field operating personnel administration, (2) control personnel

Meriam has divided

(1)

of

Lewis

J.

*

Fred Telford, “Organization for Handling Personnel Work,” City Manager Yearbook, (International City Managers’ Assn., Chicago, 1931), pp. 190–197; N. Edy and Council-Manager N. Amsden, “Report the Committee on Personnel Administration Cities,” ibid., pp. 256–259; Model City Charter (National Municipal League, New York, Rev. ed., 1933), Secs. 77–91. 34. City Charter (National Municipal League, New York, 5th ed., 1941), Art. VII,

*

in

**

ecs.

the

A

in

of

#

110–124.

Stone, Don K. Price, and Kathryn H. Stone, City Manager Government Harold United States (Public Administration Service, Chicago, 1940), pp. 106–107.

A.

S

C.

1931

Ch.

THE PERSONNEL PROGRAM

15]

245

and (3) developmental personnel administration. He defines operating personnel administration as “that part of personnel administration which has not been separated, and perhaps cannot be separated from the rest of day-to-day management of an operating agency and thus remains

administration,

in the hands of the responsible operating officers.” He goes on to describe the second category, or control personnel administration, as “that part of personnel administration which has been separated out and centralized in a special personnel agency that exercises control over the regular operating officers with respect to these personnel matters.” Public personnel admin

”

istration has in the past emphasized the second category almost to the exclusion

of the first. Indeed, one has even heard leading public personnel

men declare that the operating departments had no business dabbling in personnel matters. The new era in personnel, described above, envisages the maximum possible of personnel administration being carried on in the operating departments themselves. The approach is to be one characterized by training, education, advice, conference, and a friendly relationship with employee groups and representatives. This necessitates a personnel officer with a staff in every department and in every subunit of organization and field station of considerable size. The duties of this personnel officer will

a

of

it,

be to establish a basis of conciliatory and friendly relations with every operating official and unit, the end being to secure good personnel admin istration because people want it and demand and not because com mandment from above.

The departmental personnel officer has many functions which are similar of

of

to

the central staff agency; but the duties one complement the other, rather than overlap. Thus, reclassification studies will ordinarily originate with the department, and the departmental personnel officer will those

make the original investigations

If

to

a

of

by

be

to

is

and recommendations. the appointment subdivision, departmental personnel offi made the chief the cer will receive the certifications from the central agency and interview those who are certified, sending his observations and recommendations the appointing

officer.

The departmental personnel officer will keep

per

personnel

rules and regulations.

of

to

as

by

to

of

employment, vacations, leaves absence, sonnel records and files relative separations, and such other data customarily kept personnel are officers. He will confer with the departments relative the observance

The departmental personnel officer will

p.

*

Meriam, op. cit.,

3.

he

to

in

ideology and action than capitulates this does not mean that both

to

the central personnel agency, but those departmental officers who

to

he is

is

be

to

to

in

trouble-shooter

to

become

a

to

help out both the department head and the administrative officers concerned those difficult personnel situations avoid, but which, nevertheless, occur and have which all humans seek departmental personnel officer operating officials met. The closer tend

.

-

PERSONNEL

246

[Ch.

15

may seek to violate good personnel principles. It is the personnel man's duty to see that correct decisions are made as a result of the fact that oper ating officers have been convinced that things should be done that way.” SELECTED READINGS BOOKS AND MONOGRAPHS Committee on Classification of Personnel in the Army. The Personnel System of the Army, History United States Vol. I: of the Personnel System, 713 pp.; Vol. The Personnel Manual, 342 pp. (Superintendent of Public Documents, Washing ton, D. C., 1919). Crouch, Winston W., and McHenry, Dean E. California Government, Politics and (University of California Press, Berkeley, 1945), pp. 215–225. Administration. Donavon, J. J. “Personnel Administration,” Municipal Year Book. (International City Managers' Assn., Chicago). Consult current issue. Finer, Herman. Municipal Trading. (George Allen & Unwin, Ltd., London, Eng.,

II:

1941), 431 pp.

Judith Norvell. Inter-governmental Cooperation in Public Personnel Admin (University of California at Los Angeles, istration in the Los Angeles Areas. Bureau of Governmental Research, 1944, mimeo.), 107 pp. Kingsley, J. Donald. Representative Bureaucracy. (The Antioch Press, Yellow Springs, Ohio, 1944), 305 pp. Knapp, Betsy. The Awkward Age in Civil Service. (National League of Women Voters, Washington, D. C., 1940), 114 pp. Meriam, Lewis. Public Personnel Problems. (The Brookings Institution, Washing ton, D. C., 1938), 440 pp. Mosher, William E., and Kingsley, J. Donald. Public Personnel Administration. (Harper & Bros., New York, 1941), 671 pp. National Municipal League. Model City Charter. (National Municipal League, New

- Jamison,

York,

5th ed., 1941), pp. 46–55.

Robson, William A. (Ed.). (George Allen & Unwin, The British Civil Servant. Ltd., London, Eng., 1937), 254 pp. Sharp, Walter. “Public Personnel Management in France,” in Commission of Inquiry on Public Service Personnel, Civil Service Abroad. (McGraw-Hill Book Co., Inc., New York, 1935), pp. 83–157. (University of North Carolina Stout, Hiram M. Public Service in Great Britain. Press, Chapel Hill, 1938), 189 pp. Telford, Fred. Essentials of a Comprehensive Personnel Program. (Civil Service Assembly and Bureau of Public Personnel Administration, Chicago, 1930), 16 pp. Unsigned. Merit System Installation. (Public Administration Service, Chicago, 1941), No. 77, 58 pp. Walters, J. E. Personnel Relations. (The Ronald Press Co., New York, 1945), pp. 3–123.

-

White, Leonard D. Research in Public Personnel Administration: An Outline of Suggested Research Topics. (Committee on Public Administration, Social Science Research Council, Washington, D. C., 1942), 39 pp. White, Leonard D. “The Public Service of the Future,” in L. D. White (Ed.), The Future of Government in the United States, Essays in Honor of Charles E. Mer riam. (University of Chicago Press, 1942), pp. 192–217. White, L. D., Bland, C. H., Sharp, W. R., and Marx, F. M. Civil Service Abroad: Great Britain, Canada, France, Germany. (McGraw-Hill Book Co., Inc., New

York,

*

1935), 275 pp.

-

Management, op. cit., p. 43; Functions President's Committee on Administrative the Personnel Director (Metropolitan Life Insurance Co., New York, 1937), 38 pp.

of

Ch.

THE PERSONNEL PROGRAM

15]

Wilmerding,

York,

Lucius.

Government by Merit. -

1935), 294 pp.

(McGraw-Hill

247 Book

Co., Inc., New

PERIODICALS Appley, Lawrence A. “Organizing for Personnel Administration.” Public Personnel Review (April, 1942), Vol. 3, pp. 100–106. Aronson, Albert H. “Merit Systems under the Social Security Act.” Public Per sonnel Review (April, 1940), Vol. 1, pp. 24–28. Devoe, Maxwell A. “Administrative Relationships of Public Personnel Agencies.” -

Public Personnel Review (January, 1941), Vol. 2, pp. 18–27. Donavon, J. J. “The Classification of Subject Matter Dealing with Public Personnel Administration.” Public Personnel Review (January, 1941), Vol. 2, pp. 36–59. Emmerich, Herbert. “Good Personnel Administration is Good Public Administration.” Public Personnel Review (January, 1945), Vol. 6, pp. 1–5. Finer, Herman. “Civil Service in War-time Britain.” Public Personnel Review (July, 1941), Vol. 2, pp. 181–191. e Gibbon, Gwilym, Sir. “The Civil Service and the War.” Public Administration (October, 1940), Vol. 18, pp. 219–232. Howell, William F. “The Personnel Program of the United Nations Relief and Rehabilitation Administration.” Public Personnel Review (July, 1945), Vol. 6, pp. 154–160.

Hubbard, Henry F. Personnel Review Mosher, W. E., and Public Personnel Ritherod, Henry A. Review

(April,

“The Elements of (July, 1940), pp.

a Comprehensive Personnel Program.” 1–17.

Public.

Van Dyke, Stuart. “Public Relations for Personnel Agencies.” Review (October, 1940), Vol. 1, pp. 18–29. “Arkansas Abandons the Merit System.” National Municipal

1939),

Vol.

28, pp. 296–297.

CHAPTER

16

THE FEDERAL PERSONNEL SYSTEM *

Civil Service Commission

The approval of the Pendleton Act in 1883, shortly after the assassina tion of President Garfield by a disappointed office-seeker, resulted in the of the United States Civil Service Commission. This law establishment came as the inevitable reformative expression of an aroused and vigilant citizenry against the malignity of political spoils in government employ, and envisaged the regulation

and improvement of the public service in the United States. Indicative of the impact of this statutory landmark is the fact that it remains essentially the same as when first enacted and continues as the basic authority determining appointment into the federal civil service."

1940 set the

the head

the Commission's

administrative

machinery

is

of

At

successor must

at

of

in

a

to

the chief executive, subject only the restriction that original appointed the manner. The Ramspeck Act salary $10,000 per year.” these officers

of

be by

of

to

its

The United States Civil Service Commission is composed of three com missioners appointed by the President with the advice and consent of the Senate for an indefinite term. By law the Commission is bipartisan, which means that no more than two of three incumbents may belong the political party. any same Provision exists for the removal commissioner

the

Execu

of

policy and procedure. The executive staff directs and controls the general activities the Commission and its field offices and local boards, once the course of action has been determined.

of

the Civil Service Commission over the years has conducting open competitive examinations been that establish and certify eligible lists appointees for the federal departments. This activity as

of

to

of

The principal task

*

of

is

of

of as

a

by

is

tive Director and Chief Examiner who classified employee appointed Among serving the Commission. his many responsibilities that the chief adviser the central federal personnel agency on matters

§

C.

§

U. S. C. A. 632 (January 16, 1883). U. S. A. 632 (November 26, 1940).

5

5

22 Stat. 403, 54 Stat. 1216,

248

of

of

is

the President which are promulgated upon the basis * 1

to

its

to

of

as

of

frequently constitutes the major portion the Commission's work well Although employees. personnel agency that our federal has the power regulate civil service examinations, this subject the rules the latter's statutory

Ch.

THE FEDERAL PERSONNEL SYSTEM

16]

249

authority... Excluding this limitation, however, the Commission maintains a free hand in determining examination procedures and policies. Contrary to general impression, the Commission has never been a general appeal agency from suspensions or dismissals, except when they involved political, religious, or racial issues. Hence it has seldom intervened in the problems arising between employees and their superiors and in the matter of hearing

In other words, the federal civil service parlance law embodies what is known in the of the trade as the “open back door.” “ The Commission has always had rule-making power, but those general have been promul of rules which have applied the service by

gated

in

to

its

appeals from aggrieved employees.

-

the President through executive orders. as

Although experience has generally proved contradictory, the statement has been made that the Civil Service Commission functions an admin as in

of

of

the disposal

istrative arm the President managerial responsibilities and

the latter's administrative

of

in

to

to

it

chief executive. On occasion has ren dered advice the President relative the preparation executive orders and amending the civil service rules. Sometimes the President himself has taken the initiative and requested the Commission's services matters

In

a

in

affecting personnel administration. Further, few instances the Commis sion has solicited presidential intervention upon pending proposals before be

an

in

it

of

Congress which the Commission believed would vitiate the merit system. spite the foregoing, however, cannot concluded that the chief execu tive and the central personnel agency have been continuous and close

-

at

of

in

of

of

contact with one another. All too frequently there has been absence relationship which would produce harmonious management that type and working procedures the executive civil service. Such had been the prevailing situation least until the creation the Liaison Office for Management.

Personnel

Up

A

to

of

a

to

now the United States Civil Service Commission has had 60 graft and scandal. There year record almost entirely free from charges were infrequent and minor skirmishes with the spoilsmen, but for the most part these matters were adjusted without incurring lasting and harmful effects the merit system. familiar example was the political removal

to

to

all of

so

of

of

of

Engraving under the Harding admin some employees the Bureau istration. This particular situation, however, aroused much protest that ultimately those who still cared return the federal civil service

10

a

of

to

of

In

or

in

do

to

were permitted so." The great spoils forays have taken place the posi exempt positions. service,” mass 1883 the “classified those tions subject the civil service laws, approximated little more than per cent the total federal executive employ. Since that date, each suc a

$”

in

4

*

For discussion see Harry W. Marsh, “The Case for the ‘Open Back Door”,” National Municipal Review (May, 1941), pp. 275-278. Jeopardy,” Literary Digest (April 22, 1922), Vol. LXXIII. pp. 12–13.

PERSONNEL

250

[Ch.

16

ceeding administration has brought additional positions within the merit system until by July, 1940, approximately three-fourths of the normal complement of federal employees were under civil service requirements. This is a percentage which increased most rapidly in recent years and is indicative undoubtedly of present and future developments.

The Civil Service Commission

and its staff have been vulnerable

to

criticism on the basis of professional and technical attainment as well as on that of managerial vitality. While there have been a few distinguished com missioners, such as Theodore Roosevelt," the Commission itself had by and large until 1933 failed to exercise initiative and exert creative leader ship. Indeed, the position of commissioner was not always prized by the gifted members of the President's entourage." The administrative and tech nical work of the federal Commission was not highly regarded by those in the personnel field. There was a fairly prevalent impression that the better state and local commissions were much more progressive than was the staff

of the federal agency. This was due primarily to the existence of low salary levels which failed to attract a high order of competence, and to the want of vigorous leadership in the Commission, which probably reflected presidential indifference to personnel problems. The President's Commit tee on Administrative Management emphasized the lack of enterprise, initiative, creativeness, and imaginative leadership on the part of the Com mission's staff."

There is little doubt that tremendous progress was made in the outlook, status, and general achievements of the Civil Service Commission in the decade following 1933. In the first place, the White House has been inter in and sympathetic to the professional and technical approach in personnel to an extent not hitherto evidenced. This is said in full cog nizance of charges which might be made relative to spoils and patronage. Either by chance or by intent, the Commission has been energized by per ested

sons sympathetic to the professional and technical approach; yet, oddly enough, these have been the Republican members.” Furthermore, during this time the Commission has acquired a wider range of personnel activities by taking over the work of the Personnel Classification Board, the Bureau of Efficiency, and the Federal Retirement System, and supervising the work

;: Tºdore

Roosevelt, American Ideals (G. P. Putnam's Sons, New York, 1897), –159. personally ° The writer heard a former governor tell of his feeling of letdown and relegation to the side lines when appointed to the Civil Service Commission. He had been promised something important, and he did not consider this as such. Floyd David, * W. Reeves and Paul T. “Personnel Administration in the Federal Serv ice,” in President's Committee on Administrative Management, Report with Special Studies Printing Office, Washington, D. C., 1937), pp. 25–26 (pp. 83–84 in large pp.

ſºment

edition). * Samuel H. Ordway, Jr., formerly Civil Service Commissioner for the City of New York; Leonard D. White, Professor of Public Administration, University of Chicago; Arthur S. Flemming, formerly Director of the Scl:ool of Public Administration, American University.

O

Ch.

THE FEDERAL PERSONNEL SYSTEM

16]

251

in

history, the Commission has become actively interested train separate purpose. Perhaps set division for that the best of the Commission's recent revitalization the fact that the up a

time in

its

of the Council on Personnel Administration discussed below. For the first ing, and has

of

is

indication

of

all

it

to

of

to

tremendous expansion civilian positions due directly the recent war effort has been kept within the general framework civil service. At exempt first was reported that the defense agencies desired legislation

to

be

to

civil service rules and regulations, but representatives the Commission assured them that every possible effort would made tape, administration, emergency eliminate red decentralize and furnish service. The Commission has extended itself mobilize civilian workers them from

of

a

by of

at

whatever points the defense agencies have wanted them and within the time limits the requests. That fair degree success has been attained is

to

of

on

in

by

to

or in

in

virtually

employees engaged

of

to

tions

this respect were augmented by

1939–1940 which extended these prohibi many state and local the federal civil service and part work financed whole federal funds.”

Act and amendments all

the Hatch

in

federal employees. Its functions

in

of

part

to

its

It

is

repeating the fact that the Commission still legally our chief recruiting agency.” has always been one the Commission's responsibilities enforce the laws and own rules relative prohibited political activities the attested

an

to

to

of

of

its

in

its

on

in

has done much

of

criticisms

it

the decade following 1937

live down the the President's Committee Administrative Management job was interested the negative policing aspects the exclu unimagi positive approach, uninspired, the and that work was

Commission that

is

in

of

is

of

interdepartmental Personnel Administration, which departmental personnel officers, placed committee was under the Com mission's supervision 1940.” There considerable indication that the

The Council

sion native, and uncreative.”

to

in

of

In

a

in

Civil Service Operations the Field.—An ever-widening scope and responsibility has made the federal personnel service vast and highly diversified system, penetrating into every state, local jurisdiction, territory, and possession the United States. addition the organization under Washington, the Civil Service Commission there are thirteen distriët its

adapt

organi in

is

*

Printing C.

18

54

2,

ff.

§

C. p. A. 1

S.

U.

18

(July 19, 1940). Executive Order No. 8467 (July 1940). Reeves and David, op. cit., pp. 22–26. 1,

61a

*

§

**

f. 53

D.

*

United States Civil Service Commission, 57th Annual Report (Government Office, Washington, C., 1941), 1939); Stat. 1147–48, 61a (August Stat. 767,

thir

direc

U. S.

to

expanding jurisdiction, district offices were established zation key teen cities throughout the United States. Each office under the

A.

to

150 rating boards.

its

offices, 5,000 local examining boards, and approximately Because the Civil Service Commission has been obliged

PERSONNEL

-

[Ch.

16

all

252

in

or

its

by

in

In

tion of a district manager, who has immediate supervision over civil service activities his particular area. normal times the Civil Service represented employees Commission has not been own officers to

as

is

of

a

leading cities other than these regional headquarters. As indicated above, objective the district offices maintain continuous contact between the departmental and field services. Besides this, however, other important conducting examinations and certifying functions are undertaken, such

for employment

in

applicants

or a

of

at

at

or

a

is

in

in

to

of

of

the field offices. Elsewhere there are reporting hundreds local boards civil service examiners the district manager. These are found cities, other than those which district up, post office has been set where there office the first second class, and are usually located that place the local customhouse. regular federal employees who are car government department, such ried some other the Post Office, and have been assigned civil service work the local board without representative additional compensation. The local board acts the as

of

of

as at a

the payroll

of

on

The local boards are composed

to

in

in

in

of

by

in

in

announcing examinations, furnishing information federal Commission upon request, and conducting assembled examinations local areas. These Washington functions are performed offices the Commission itself and the thirteen district office cities. There are, addition the field

lo

a

of

in

or

of

rating and local personnel agencies, scores establishment boards, navy yards, arsenals, quartermaster depots, cated the and other centers supply which require skilled tradesmen and mechanics. Under the

of

on

to

of

the district manager the Civil Service Commission, the rating boards have authority announce examinations, receive applications, pass preference claims, investigate character and experience claims

of

supervision

rate papers, establish registers, certify eligible lists, and audit appointments.” applicants,

an

to

of

of

securing the most competent

the exigencies

vast numbers dictated the national emer Employees many instances were secured within the space few short hours. Eligibles were determined and positions filled for the defense agencies through such channels the interdepartmental placement as

in

gency.

of a

in

workers

the task

by

sonnel machinery was geared

to

of

in

the

by

Civil Service Commission by unprecedented effort the defense effort the early 1940's was met delegation authority toward decentralization and the field. The per The tremendous pressure placed upon

of

of

service, the National Roster Scientific and Specialized Personnel, and the National Emergency Unit affiliated with the Civil Service Commission. Publicity techniques and procedures the first world conflagration were and supplemented. Radio broadcasts, motion pictures, nationwide publications, personal interviews, and the canvassing

lectures,

of

revived

educa

Office, Washington,

*

**

-

Commission, 56th Annual Report D. C., 1939), pp. 35–43, 63–65.

United States Civil Service

(Government

Printing

Ch.

THE FEDERAI PERSONNEL SYSTEM

16]

253

tional institutions were among the recruiting devices most frequently em ployed. Additional rating boards were appointed at many points where they had not existed before. The district officers, as well as the appointing offi cers themselves, were given authority to take action in many matters which formerly had to be referred to Washington. The examination procedure was expedited by the use of the unassembled examination, with the result that for many types of positions the examination consisted of a desk rating of information on application forms. Close liaison and cooperation was established with other employment units, such as the Social Security Board and federal-state employment services. The niceties of strict conformance to rules were subordinated to the overwhelming necessity of getting men on much-needed jobs practically

overnight.”

*

Council of Personnel Administration One of the criteria of a sound personnel program is whether or not a means is provided for coordinating the functions of the central personnel agency with those of departmental organizations. Uniformity in policy and procedure must be attained not only between departments and their subordi nate bureaus and hierarchical units, but across broad departmental lines among groups of departments. A lack of this usually results in general antipathy within and among departments, dupli

employee demoralization,

cation of effort, and other situations not conducive to progressive personnel management. Until recently there had been no machinery whereby the Civil Service Commission could deal with the departments on a basis of

unity relative to

a wide variety of personnel problems which were rather common to departmental operations. These included such items as trans fer, promotion, pay, training, supervision, complaints, and record keeping.

Bence, the Council of Personnel Administration was established as an inter departmental committee to deal with such federal personnel matters and was given

which are essentially supervisory, coordinative, and liaison'in nature.” It is composed of the directors of personnel from the departments and independent establishments, in addition to a representative functions

of the Bureau of the Budget and the Civil Service Commission.

The

per

sonnel directors meet around the council table with representatives of both the President and the Commission who act as sounding boards for the expressions of opinions and sentiments of the directors. Through the Coun

cil's work in coordinating the departments and agencies with the Civil Service Commission, well-rounded administrative policies are looked upon as coming realities. ** United States Civil Service. Commission, 58th Annual Report Office, Washington, D. C., 1941), pp. 1–4. ** Executive Order No. 7916, Sec. 7 (June 24, 1938).

(Government -

Printing

-

PERSONNEL

16

in

its

in

standing committees which are assisted by staff preparing recommendations for consideration.

acts through its making studies and

Thus,

its

Administration frequently its

The Council of Personnel

[Ch.

in

254

initial

it

of

its

in

From the information gathered through this and other investiga felt that the foundations have been laid for remedial action

to is

lishment. tions,

to

of

in

of

a

to

year, the Council was able carry out comprehensive survey the per membership, sonnel programs each the organizations represented the results which only served further vindicate the Council's estab

to

In

in

leading improved techniques meeting federal personnel problems, preparing uniform standards, and stabilizing federal employment.” 1940 the Council became attached the Civil Service Commission and the national defense program.

in

subsequently assumed an important

rôle

From the time when

it

Departmental Personnel Officers was first established the United States

Civil

a

informed about the present and prospective per those agencies which services. Our federal system has

kept continuously

of

must

of

be

so

it

sonnel needs large and diffused, however, that the consummation become departmental personnel offices, would without the aid

Hardly

this task, practical

generation ago the terms “personnel officer” and “personnel offices” were almost alien concepts many authorities federal depart personnel administration. The general administrative officials the in

to

in

a

impossibility.

a of

be

it

of

of

Service Commission has been the principal personnel agency the federal government. As such, huge service organization that takes the form

was ordi degree departmental regard maintain some contact classification and recruitment, was too frequently it

all

in

to

While the Civil Service Commission

as

able

such matters

clerks.”

of

“appointment

narily

to

by

of

important personnel functions upon ments would take the administration themselves, and routine matters were usually devolved upon various chief clerks. Formal personnel records for each department were maintained

in

in

at

of

at

and unable

to

of

relieve the personnel problems originating actual administration and often the lower levels the departmental hierarchy. This was typical most federal agencies, least until recent years. unaware

so

in

a be

in

Another and equally distressing situation often developed connection departmental organization responsible with the itself. The administrative greatly dissociated from his actual operating units and officer would so immersed maze of administrative detail that he could find neither the a

acquaint himself with his rank-and-file

*

57th Annual Report, pp. 22–29.

employees

or

a

to by

of

to

handle seemingly distant personnel problems emerging from those units. Without the services modern personnel office, led highly trained personnel officer, the department head could not hope

time nor means

with their respective

16

Ch.

THE FEDERAL PERSONNEL SYSTEM

255

of

no

no

duties. Furthermore, there was device for carrying out first-hand inves tigations departmental personnel needs and means, other than the

be

quick, summary decisions, made without adequate existing knowledge. investigation and intelligent application remedy To these and other weaknesses the federal system, and

to

in

of

tion could

gathered;

or

in

of

ordinary administrative channels, through which adequate information for the basis of sound decisions could be obtained. This situation caused either making decisions until more informa one two extremes: long delays

be

on

by

of

a

be

to

Supervision and Management headed Director The establishment these operating personnel offices directly

of

Personnel

a

of

of in an

of

in

departmental personnel procedures and coordinate and add uniformity Commission, the activities the Civil Service President Roosevelt issued executive order June 24, 1938, which required that there set up major departments each the executive and establishments Division

in

in

a

as

a

of

it

in

is is,

Personnel." therefore, the line departments recent development our federal personnel setup. While true, course, that few departments, such Agriculture, had experimented with personnel officers the years immedi

and full-fledged personnel departments and many

are characteristic

the executive

the major independent establishments. Agriculture excellent example

a

of

an

of

is

of

of

in

The Department

divisions

in

ately preceding 1938, the great impetus for their creation came from the President's order. Today, competent and highly qualified personnel officers

a

of

a

agency that has achieved high order personnel administration forward-looking approach and many years hard work. As the

federal through

Depart of

of its

Personnel, sought

as

it

is

of

Agriculture has firmly believed that good personnel administration ment dependent largely upon sound organization, has, through Office

is a

to

authority, maintain such things clear-cut lines responsibilities, coordinating well-defined duties and and efficient devices. At the head of the Personnel Office Director who serves as an adminis a

on

to

of

to

In of

trative assistant the Department Secretary. Frequently, the functions the personnel officer transcend those mere supervisorial nature. regular duties, addition his the Personnel Director renders advice and

of

a

is

a

Organization and Management has recently

corps

Division

in

to of

in

of

are several functional divisions, each which staffed specialists who are trained particular personnel function.

A

by

in

a

is

to

makes recommendation the Secretary matters affecting personnel policies and procedures, and similar relationship maintained with the various bureaus. Beneath the Personnel Director the Office of Personnel

of

as

on

investigations

is

on

been established the Office organization and make reports such items structure, function and authority, unit relationships, work flow, and super vision. Further, general assistance often provided the officials indi

carry

17

vidual staff and operating units through this new personnel division, Executive Order No. 7916 (June 24, 1938).

(Ch.

PERSONNEL

256

Most of the larger bureaus in

the Department

16

of Agriculture have set

up their own personnel offices. These units are to the department personnel office what the latter is to the Civil Service Commission. The functions of the bureau personnel officers are largely those

of advising the bureau chiefs

and their subordinate administrative officers on personnel matters, main taining direct contact with the personnel problems of their respective bureaus, and administering the routine phases of bureau personnel admin

It should be noted that many of the large bureaus in the Depart Agriculture ment of have decentralized field services. Hence, regional or istration.

district offices have been established and delegated an appropriate amount these decentralized field services occur, the central bureau office confines itself principally to broad matters of en forcing and coordinating policy and leaves with the district offices the

of administrative discretion. Where

immediate responsibility for the administration of policy determined by the higher department authorities. Sometimes the district offices submit matters to the bureau offices for the consideration of the latter or of the depart mental personnel office. A typical example of this decentralized type of organization in the Department of Agriculture is the Forest Service, which represents one of the largest bureaus of that executive agency.”

Federal Classification System least two dif ferent meanings in our federal service. One is jurisdictional classification, being which means that those under civil service are referred

in

as

to

all

In using the term classification, one is confronted with at

in

to

of

of

is

to

Then there the other usage which refers those position salary who come under the classification and standardization pro visions the Classification Act 1923.” This may apply some posi tions which are not under civil service. The Classification Act has been the classified service.

in

of

of

at

of

to

operation for some twenty years, but has applied only the positions the Washington. agencies central offices federal Since 1932 the Civil Service Commission has administered the provisions the Act, taking over the functions the former Personnel Classification Board. Except for

jurisdiction over salary standardiza extended the field services. The Ramspeck to

minor exceptions, the Commission's

in

.

in

to

in

to

tion and control has not been Bill, enacted 1940, however, authorized the chief executive extend positions the Classification Act the field, and steps have been taken that direction under executive order.”

of

26

4,

D.

§§

A.

C.

S.

5

42

* *"

of

D.

of

of

Agriculture, Forest Service, Report *United States Department Personnel Officers C.), 44 pp.; Conference, March 14–16, 1938 (Government Printing Office, Washington, Agriculture, Report United States Department the Director of Personnel, 1940 C., 1940, pp. (Government Printing Office, Washington, Stat. 1488, U. 661–674 (March 1923). Executive Order No. 95.12 (January 16, 1945).

Ch.

THE FEDERAL PERSONNEL SYSTEM

16]

257

of

or

in

be

its

The Classification Act established a plan whereby the positions subject jurisdiction could to classified accordance with their respective duties and responsibilities. Five broad divisions “services” were set up positions placed. into which related classes were Thus we have the pro

an

to

of

to

to

or

the subprofessional service, with incidental, preparatory duties and training. The technology involved quality inferior the first service. “CAF" would apply

of

of

or

is

provision,

so

statutory on down the list. Each service, “grades,” divided into which are subdivisions the service positions having very general character and include one more classes to

the next service, and

by

a

of

be

here would

a

that represented standing. “SP” would apply

or

professional

subordinate,

of

scientific nature and require related training equal degree from college university recognized

by or a

a

of

be

a

general service description and individual identification letter. “P”, therefore, descriptive The letter would the first service men tioned above, which would involve duties based upon established principles

is

given

in

of

fessional and scientific service; the subprofessional service; the clerical, administrative, and fiscal service; the custodial service; and the clerical mechanical service. Each the services the federal classification system

their work. Each grade definite, uniform compensation scale. This begins with has minimum rate, provided entrance followed series intermediate rates for

of

of

At

a

or

by

a

and value

of

responsibility,

a

importance, difficulty,

to

in

to

A

istics. service may have several grades ranging from the easiest and more routine the most difficult and responsible work. Thus, distinctions regard between various grades are based upon their differences the

of

to

on or a

confused with descriptions classes. subsequently estab The former are directions which the latter, lished, are given fitted into each grade. Each grade within service number, beginning with number one and proceeding the numerical up a

the allocation

positions

to

so

be

P-1, SP-2, CAF—4, and of

World War

II

of

this would

on.

classes required

for the Washington service.

of

Prior

to

scale. Examples

is

to

be

a

to

be

of

be

grades should not by

Descriptions

of of a

a

is

increased usefulness and promotional incentive. the top the salary range government maximum rate the most that the will pay an position given level difficulty and responsibility. incumbent

part

the

Com

to

of

in

of

as a

speed and doned during the war the interests decentralizing the power mission's general program

of

in

a

of

the Commission The Com position classifiers who conducted pre-audit mission maintained staff investigations the departments. The former normal practice was aban pre-approval

to

in

of

take action on personnel matters. Representatives the Commission were placed the departments give Commission consideration when required. However,

in

a

of

of

to

the urgent necessity decentralize and look for short-cuts under the stress pattern for future peacetime operation, and that war has probably set pattern takes the form establishing standards advance and conducting

º

PERSONNEL

258

[Ch.

16

post audits to ascertain conformance. This is the procedure set up for clas sifying field positions, and which prevailed for the vast majority of positions

in Washington during the war. It had so many obvious advantages that there is strong sentiment for continuation indefinitely. The Commission has set up a staff whose duty will be to develop job standards and specifications in sufficient detail so that operating agencies can allocate positions rather readily and easily to established categories. The Commission will maintain its control through post audit and review,

requiring the correction of misallocation.

Such procedure has the merit of decentralizing the power to act to the area of operations; it also obviates the necessity to maintain an army of position classifiers, the prospective expense

of which delayed extension of the Classification Act to field positions. Apportionment.—The

law provides that appointments to positions in the classified departmental service at Washington, D. C., be apportioned among the states, territories, and the District of Columbia, in proportion to their population as determined at the last decennial census. There are certain exceptions to this requirement. Thus, if one is an eligible appointee and possesses a veteran's or military preference, he is certified without regard to apportionment. The same is true of those who have been excepted by executive order or by an act of Congress. Most of the field positions are exempt from the apportionment law and are filled on the basis of local competition and residence.

Many people do not fully understand the apportionment procedures. If a for instance, receives appointments the sum of which do not equal the total number it is entitled to have, it does not follow that the remaining positions will be kept vacant so that they can subsequently be filled by that state. The administration of government business necessitates the filling of vacancies as soon as possible after they arise. In other words, there is never a certain number of positions open solely to one state's residents to the state,

exclusion of those of another state. Vacancies that normally arise are usually filled by those states in arrears of their quota before appointments are made from other jurisdictions having an excess. So long as a person occupies, by original appointment, a position in the apportioned service, the

the whole number

or

the state's residents employed when increases

of

are made

of

the number

in

in

or

or

its

charge for appointment continues to run against the state of his original residence. The quota of a state may vary as residents enter leave departmental service, may vary proportionately any change the without decreases

apportioned positions. as

in

of

to

scientious effort

as a

the Civil Service Commission has made con pos strictly enforce the apportionment provisions positions departmental sible. The number the service which have been filled under the apportionment law has increased with each succeeding year.

From the very beginning,

Ch.

THE FEDERAL PERSONNEL SYSTEM

16]

259

Through conditions

beyond the Commission's control, inequalities have arisen and prevented the appointment quotas from coming out in exact Thus, the District of Columbia, Maryland, and Virginia are proportions. credited with a percentage of positions many times in excess of their quotas under the apportionment law. This is largely due to the fact that those certified from low quota states have refused to report, and because those competing for Washington jobs quite naturally abound in the vicinity

of the nation's capital. The Commission

makes a conscientious effort in normal times to abide by both the spirit and letter of the apportionment -

law.21

The Keller-Nichols amendment, under discussion in

1940,

would have

required the Civil Service Commission to include within the classified civil service only persons from states in arrears with their apportionments. Testimony offered before a Senate committee considering the Ramspeck

provision would be impos stands, apportionment provision is direc sible to administer. As it now the tory rather than mandatory, and it seems that the Commission does make a sincere effort to enforce the apportionment quotas as far as is possible

Bill in

the spring

and consistent

of

1940 indicated that such a

with sound administration.

20) shows the status of the 1933 and

states

The following table (Figure

and territories

as to apportionment

in

1940.2%

Liaison Office for Personnel Management Until the establishment of the Liaison Office for Personnel Management as a division of the President's

Executive

Office, the chief executive of the

United States was not provided with a means by which he might keep in close and continuous contact with federal personnel affairs. Originally the Civil Service Commission was conceived as an administrative arm of the President,

but subsequent developments denied this happy relationship. growth of the Commission's jurisdiction, the prevalent skepti steady The cism toward adverse political motives emerging from executive offices, and the feeling of the civil service commissioners that they alone had a vested right in the workings of the civil service system were among the chief to federal personnel insulation from the President. The Liaison Office for Personnel Management, headed by an administra tive assistant, serves largely to bridge the gap between the Commission and factors

contributing

United' States Civil Service Commission, Federal Employment Under the Merit Sys Printing Office, Washington, D. C., 1940), pp. 50–55; United States (Government Civil Service Commission, The State Apportionment of Appointments in the Departmental Printing Office, Washington, Service at Washington, D. C. (Government D. C., 1931), p. 1 See also Herman Feldman, Personnel Program for the Federal Civil Service (Government Printing Office, Washington, D. C., 1931), pp. 138–142. Committee on Civil Service, Hearings on an Act Ertending the Classified Civil Serv Printing ice the United States, United States Senate, 76th Cong., 3d sess. (Government Office, Washington D. C., 1940), pp. 28–29. 21

of **

A

ff.

tem

.

PERSONNEL

26o

Condition of the ApportionMENT,

28, 1933, AND JANUARY

FEBRUARY

º:

[Ch.

Percent positions laun to which entitled

State or Territory

1933

------------------------------------

------§ºp. Missouri....------

Minnesota.---------

Montana......... Nebraska.-------------------------------Nevada----------------------------------New Hampshire.-------------------------

-

New Jersey------------------------------New Mexico.----------------------------New York-------------------------------. North Carolina.-------------------------North Dakota.---------------------------

10-------------------------------------

--Oklahoma.------Oregon----------------------------------Pennsylvania.----------------------------

Rhode Island.---------------------------South Carolina--------------------------South Dakota.-------------------------Tennessee.

------

----

-----

...

-

Wyoming---------------------------------

-

43.5 61.7 28.0 52.8 35.7 62.9 22.2 35.2 76.2 99.1 84.9 58.1 96.9 89.6 8, 165.2 || 4,485.8 09.2 93.4 65.9 48.6 78.5 93.3 54.0 77.4 80. 6 87.8 112.0 110.9 80.0 104.5 66.6 67.7 47.1 36.3 99.7 98.2 475.7 313.4 95.5 99.6 47.8 33.6 77. 9 110.6 60. 3 49.8 97.7 79.0 100.9 61.6 123.3 81.3 89.2 60.0 94.7 99.2 56.0 37.1 66.1 50.4 99.0 54.6 70. 1 56.3 70.3 107.3 60.7 51.2 30, 1 61. 9 91.4 48.3 97.9 75.5 106.8 92.5 57.3 48.2 110.4 85.1 al. 6 77. I 40.3 27.3 108.3 89.1 101.4 127.6 207.8 344.9 96.7 56.5 100.0 99.4 80.2 50.7 95 67.2 37.5 31.3 10. 11.0 7.2 4.8

fi

Washington.-West Virginia. Wisconsin....

1940

º

of

1933

1933

4-1 207 213 2, 112 1, 103 442 543 272 780 90 305 15 125 408 58 1,868 485 130 925 196 125 1,976 1 228 160 438 433 123 125 2,273 240 467 405 41

1940 1,069 176 749

719 118 504. 1,544 282 437 65 132 399 791 * 121 2,075

660 93 471 807 415 551 86 8,837 554 774 168 2,387 1, 149 1,119 794 704 400 321 2,065 1,710 927 1, 146 490 1,433 219 687 33 178 915 113 5,034 898 295 1,631 599 352 3,812 297 403 309 815 949 222 147 2,034 611 699 953 87

384 95 1,121 0. 745

419 649 96. 1-7 s 1, 175 1. 3,034 1,300

wº

672 511 711 57.1 217 444 1,155 1,317 697 546 987 146 375

760 1.057 849.

32

659 1,717 1,957 1,036 812 1.467 217 557 37 188 1,633 171 5,087 1,281 27. 2,686 963 385 3,892 278 703 280 1.057 2,354 205 145 979 632 699 1,188

126 1,099 115 3, 423 862 185 1,807 05:1 259 2,619 187 473 188 711 1, 584 138 659 425 470

ol

24 149 624

9

16 Alaska-----------------------------------11 16 100 Hawaii----------------------------------20 45 420 Puerto Rico.-----------------------------Virgin Islands----------------------------|----------|----------|---------- -------------------33,919 50,423 33,917 Total.---------------------------------------------------

||

9

7

5

*

entitled

1940

3.13 33 180 342 215 254 3. 10,778

º

31, 1940

*:::::::

*:::::: tions occu p

16

50,419

Statistical

S.

Figure 20 Division, U.

Civil Service Commission,

February 15, 1940.

D.

of it

inbe by of

is of

in

It

gº."

in

be

to

a

in

as a

of

by

of

to

in

in

of

in

by

is

of

*

C., Although the apportioned classified civil service Washington, law located only Columbia, includes only about half the Federal civilian positions the District Positions local post .#é. customs districts, and other field services outside the District Columbia, which are subject persons who are the Civil Service Act are filled almost wholly general community local residents the which the vacancies exist. should noted and under. original appointment, person occupies, the apportioned stood that so, long original residence, service, the charge for his appointment continues run against his State and once appointed he cannot removed from his position because his State excess. Certifi. eligibles are first made from States which are cations arrears. nevertheless

-

THE FEDERAL PERSONNEL SYSTEM

16]

Ch.

261

to

In

a

is

It

to

of

is

vitally concerned the President, who, for various and obvious reasons, with personnel matters. evident those persons familiar with the provisions the Pendle relationship ton Act that the intent was for close exist between the President and the Civil Service Commission. the first place, the former appoint the federal commissioners. Secondly, these individuals were serve more less the President's pleasure and could removed from office when was deemed expedient. As third consid eration, the President was receive the aid the Commission the at

mined and promulgated considerations

in

Civil Service Act.

in

stitutional

the were subject

the rules deter Although the chief executive. these and con were recognized the Pendleton Act, still the

the Commission

to

of

Finally, the activities

of

rules affecting the administration by

preparation

of

to

of

a

it

be

to

or

to

was given discretion

a

in

Throughout the decades following

its

in

to

negative atmosphere factors referred the preceding paragraph bred and distrust the Civil Service Commission toward executive officers.

of

in

of

to

in

inauguration, the Commission main “watchdog” tained this attitude and viewed with disfavor suggested positive improvements personnel administration the federal service. Legislative wary proposals, although leaders were these the truth the matter indi

in

cated more executive interest

extending and improving the merit system small wonder, therefore, that

congressional circles.

is

It

competent cooperative and advisory agency. the chief executives were obliged solicit the to

of

of

For want

finding

this, many

a

with the necessity

of

in

a

to

of

than was shown many obtain, through our Presidents were unable distant and un wieldly Commission, the assistance needed making sound personnel deci sions. As time passed the President was faced more and more frequently

An executive order was issued

8,

on

of

other government officials and agencies. Thus the President and the Civil Service Commission gradually became further and further divorced from one another.

aid

of

no

of

of

as a

September 1939, establishing the Management Liaison Office for Personnel division the Executive Office the President. The functions the administrative assistant for

of

to

assistant has been delegated authority make decisions they the chief executive concern the latter. Subsequently, made the President the Liaison Officer through which the be

the latter.

In

kept informed the action taken many matters may quickly and expeditiously

former

by

by

as

of

to

is of is

administrative behalf report

a on

to

to

or

a

of

personnel are largely coordinative and advisory nature. He has au thority discharge the functions responsibilities the Civil Service Commission, but meets periodically with that body discuss problems and policies affecting the Commission's work. On these occasions the President's

this way

determined and the chief on

executive kept free from administrative detail. Excluding matters concern ing policy-determining positions, the President does not usually act

PERSONNEL

262

personnel matters without first securing of his Liaison Officer.

[Ch.

16

the advice and recommendations

In addition to establishing a channel of communication

between the

President and the Civil Service Commission, the Liaison Officer is able to maintain similar contacts with the Council of Personnel Administration, the Bureau of the Budget, the executive departments, and other federal establishments which affect policy in personnel management. Thus it would seem that many of the goals envisaged by the President's Committee on Administrative Management have been at least partially achieved and personnel administration ernmental affairs.”

gov

given more emphasis in the management of

Extension of the Competitive Class The number of positions excepted from the competitive service has always numbered in the tens of thousands. At the last date approaching pre-war normalcy, namely 1940, there were roughly 250,000 of these ex cepted positions, aggregating approximately one-quarter of the federal civilian personnel. A few factors may be listed in giving consideration to this situation. In the first place, our federal Constitution made no provision

for the establishment and maintenance of

a merit system.

Secondly,

Con

gress took it upon itself to exclude from the competitive class such positions as it saw fit. A large portion of these had been reserved as the plums of patronage, and many positions so existed until recent years. Only through new legislation could many of the exempt positions be covered into the service. As a third consideration, the Presidents of the United States have had authority over the years to extend the competitive class, subject only to certain statutory limitations. All of them have exercised this power to

varying degrees, but it remained for

its

its

the administrations of Franklin D. Roosevelt to make the most far-reaching and appreciable extensions. place The Ramspeck Act,” approved in November 1940, will take among the foremost statutes affecting our federal personnel system. By

to

of

the

of

I,

5

Stat. 1211, Executive Order No. 8743

A. 631a (November (April 25, 1941). §

C.

S.

U.

54

esti

be

to

1,

on

William H. McReynolds, “The Liaison Office for Personnel pp. 121–126. Administration Review (Winter, 1941), Vol.

* ** *

Act,

200,000 federal employees were covered into the January 1942, the effective date the order. Be upon personnel abnormal strains activities growing out

mated 100,000 competitive class cause

the Ramspeck

an

pursuance

of

in

executive order,” issued to

an

of

be

of

be

it

an

given authority

of

extend the scope the Civil early predicted Service Act and the Classification Act. At date was gradual and cover that the extension the latter act would probably many years, while the former would more immediate. Under the terms is

provisions, the President

26, 1940).

Management,”

Public

Ch.

THE FEDERAL PERSONNEL SYSTEM

16]

263

of the war, an evaluation of accomplishments under the Ramspeck Act cannot be made at this writing. The exception of legal positions, such as the federal assistant district attorneys, from the provision of the Ramspeck Act was finally settled by the adoption of the so-called “Plan A” recommended as an alternative proposal by the President's Committee on Civil Service Improvement (the Reed Committee). This is discussed more fully in Chapter 31. The Ramspeck Act provided for the extension of the jurisdiction of the

Civil Service Commission

to government

owned and controlled

corpora

exercise relative

-

to

attempted

to

its

of

to

be

by

a

of

It

to

its

tions. The Tennessee Valley Authority was excepted. Considerable con troversy has arisen upon this point. It will be remembered that one of the chief arguments in favor of the government corporation was freedom ordinary housekeeping governmental from the controls which certain agencies are subjected. has further been pointed out that the Tennessee Valley Authority has had progressive personnel system own which delayed and handicapped would only control from Washington. The Tennessee Valley Authority has been subjected the same kind controversy about these controls which the Comptroller General has finance.

SELECTED READINGS BOOKS AND MONOGRAPHS

75

in

an

of

*

D.

of

to

of

Byrd Committee. Investigation Report Erecutive Agencies the C., 1937), 75th Cong., Government. (Government Printing Office, Washington, Senate Report No. 1275, pp. 507–522. Meriam, Lewis. Public Personnel Problems from the Standpoint Operating (Brookings Institution, Washington, D.C., 1938), 440 pp. Officer. President's Committee on Administrative Management. Personnel Administration the Federal Service. (Government Printing Office, Washington, D. C., 1937), Brookings

pp.

President's Committee on Civil Service Improvement. Report. House Doc. No. 118, 77th Cong., 1st sess. (Government Printing Office, Washington, D. C., 1941), 128 pp.

of

in

D.

to

D.

of

D.

of

D.

B.

Sims, Lewis Recruiting Social Scientists for the Federal Service. (The Author, C., 1938), 87 pp. Bureau the Census, Washington, United States Civil Service Commission. Annual Report. (Government Printing Office, Washington, D. C., annually). United States Civil Service Commission. Federal Employment Under the Merit System. (Government Printing Office, Washington, C., 1940), 112 pp. History United States Civil Service Commission. the Federal Civil Service, 1789 C., 1941), 162 pp. the Present. (Government Printing Office, Washington, White, Leonard (University Chicago Press, (Ed.). Civil Service Wartime. Chicago, 1945), 250 pp.

PERIODICALS

of

6,

of

Baruch, Ismar. “The Federal Employees Pay Act 1945.” Public Personnel Review (October, 1945), Vol. pp. 201–212. Devoe, Maxwell A. “Administrative Relationships Public Personnel Agencies.” Public Personnel Review (January, 1941), pp. 18–27.

-

264 Fischer, John.

PERSONNEL “Let's Go Back to the Spoils System.”

[Ch. Harper’s Magazine

16

(October,

Vol. 191, pp. 362–368. Graves, W. Brooke. “The Philadelphia Federal Council of Personnel Administration.” Public Personnel Review (October, 1945), Vol. 6, pp. 240–247. Nicol, Eric A. “Management and the Personnel Director.” Personnel Administra tion (February, 1941), Vol. 3, pp. 1–7. Floyd Reeves, W. “Civil Service as Usual.” Public Administration Review (Autumn, 1944), Vol. 4, pp. 327–340. Sims, Lewis B. “Professional Personnel in the Federal Government.” Public Admin. istration Review (Spring, 1941), Vol. 1, pp. 271–280. 1945),

CHAPTER

17

* .

RECRUITING Philosophy of Recruiting of public personnel

The recruitment strongly

influenced

in the United States has been Strong philosophies of government.

by equalitarian all

feeling has prevailed that

normal persons are equally qualified for public and there should no barriers which would permit employment for some while denying others. This has operated against requirement schooling prerequisite taking civil service the formal a to

to

experience and practical place tests nonacademic nature." There has also been disinclination age limits upon initial recruitment, with the result that employment has a

a

to

of

and emphasized the desirability

of

examinations,

as

of

it

be

employment,

to

persons who have worked elsewhere than for the govern Examination content has emphasized immediate job knowledge and

gone largely ment. proficiency

of

be

in

an

of

of

to

in

to

of

rather than over-all capacity. political science tend critical the condi tions described the previous paragraph and look with some favor upon the method executive, administrative, and clerical recruitment appropriate level classes Great Britain. There one must have achieved

University teachers

of

an

to

in

to

16

an

is

is in at

the school system before being permitted take examination. Entry 22; and the content early age, varying from the examina nature, being based upon school attendance for the level tion academic a

a

to

of

is

of It

in

to

be

general for the particular class. Thus, examinations tend system produces rather than particular nature. claimed that such adjusting persons caliber, capable broad themselves wide variety required

of

to

is

of

it

is

to

agencies toward ever-increasing educational requirements, recruiting policy which will adapted and reflect American to

American

that

it

the desirable characteristics

in

distinctively

and

con

will blend

on

Recruiting Applicants for the Public Service (J. Donald Kingsley, Recruiting Applicants for the Public Service (Civil Service Assembly, Chicago.

Committee

),

*

will

of

This will have some

the British system, but

be

evolving.

it

a

ditions

is

º

that

be

personnel

of

A

an

rather than narrow specialists. attempt discussion and reconcile these two opposing points say that view would require more space than available here. Suffice forcing public the increasingly technical nature the public service

of

situations,

pp. 1–24.

265

PERSONNEL

206

[Ch.

technical competence with a broad understanding relations.

Veterans’ Preference

17

of society and human

*

Unfortunately the problems resulting from war are not confined merely to the period of actual strife, but they continue to persist long after the struggle is over. One of these problems is the care of veterans. Almost every country in the world, ever since recorded time, has accorded preferen tial treatment of some sort to war veterans, and this country has been no One of the many fields in which they have received preference has been in the civil service. In the United States such preference can be public service—federal, state, county, and city— found on levels jurisdictions. There still are some states and other local although not

be

this respect given

or

a

of

a or

If in

of

of

of

a

88. One the most liberal provisions that the federal government, wherein the able veteran advantage five points, and disabled veteran and his wife

is

ten,

veteran added, thus an

for

the nation's wars. instance, five points would

be

83,

points, usually five

provided,

is

grade

rating

of

should earn

giving him

a

to

of

a

the law requires that certain number added the earned ratings veterans

is

of

government where such preference does not exist. most civil service jurisdictions where veterans' preference

of of

In

units

all

in

of

all

exception.

widow, ten

if

in

to

a

to

If

is

at

of

or

When the disabled veteran, his wife

grades

on

widow, receives passing any test, the name immediately placed the head the appointment list. they should fail passing score obtain the test, but the ten bonus points added their earned scores lift their scores

points.

of

at

to

be

in

or

of 95

to

in

of or

as a

of a

appointed ahead testees with earned government positions secured above. While employed preference, many may receiving disability result this veterans also salary. This whole question other veterans’ compensation addition

achieve ratings

passing grade can

be

a

of or

to

be

placed the passing point, they would automatically the head the widow, veteran, list. This means that disabled his wife who fails

all

is

that unbiased judgment

but impossible.

The Veterans' Preference Act (2)

of

1944.—The current federal law gives categories: four (1) able veterans, both men men and women with service-connected disabilities who

employment

to

in

preference and women;

so

is

to

public emoluments veterans confounded with emotional patriot military ism, appeal, and genuine compassion for maimed bodies and lives

of

in

of

to

to

of

work; (3) wives are able veterans unable work because service disability; connected and (4) unmarried widows veterans. Persons

10

F.

to

is

of

in

in

of

*

For many the ideas found this section, the author indebted John Miller's Veteran Preference the Public Service,” Problems the American Public Service, Inc., York, Monograph No. Co., 1935), pp. (McGraw-Hill Book New 243–334.

--

RECRUITING

Ch. 17]

267

the first category have five points added to their earned examination grade and must achieve 65 per cent to pass, while those in the other three classes receive ten points and must achieve a passing grade of only 60. Except

or scientific positions paying over $3,000 per year, the on

of all

for professional

veterans

a

long

as

as

confined

is

tenance services

to

he

A

be

names of ten-point preference eligibles are placed above others the certified ahead nonveteran eligible list. five-point veteran must with whom has tied. Competition for the building operation and main any are available. An veteran eligible must

a

to

a

as

it in

of

of

appointing officer who passes over the name justify writing and await the action the Civil Service Commission. preferred position layoff and reemployment. Veterans are given

Positive Recruitment

or

a

by

in

is a

It

common accusation that public personnel agencies have been too passive and lacked aggressiveness recruiting. The examinations have bulletin, usually letter legal size, and containing been announced

by

to

to

as

to

of to

mailing lists and the class specifications. These bulletins have been sent placed upon bulletin boards. Prior the depression the 1930's there question public personnel was some whether examinations were attracting those above the median level compete; however, that situation

of

a

of

unemployment during the depression, with the conditions the result that public personnel jurisdictions were shouldered with back breaking load applicants. During the early 1940's the situation was was altered

fill the positions

substitute basis those who were needed persons on military leave.

to

for recruiting of

necessity

on a

by

to

or

reversed, with the most competent tending leave for either military civilian defense positions. The situation was aggravated further the

of

to

to

a

by

is to

D.

to

the

Public Service,

cit.,

ff.

for

13

Committee on Recruiting Applicants

of

the Office p.

Training School conducted

by

the Southwest

op

*

lowed

by

ing interviewers

the government. The selection made send the college campuses. The same practice has been fol

of

various departments to

in

50

of

by

in

to

an

in

of

as

is

young engineers and commerce graduates send representatives the colleges, where they act evangelists for their respective fields and conduct recruiting interviews. There has been some experiment with this type get capable young college people effort the more interested public service career. Probably the most notable effort along this line has been conducted the National Institute Public Affairs, which each year brings about Washington, C., recent graduates become interns

Indian

.

in

by

at

of in

It

has often been advocated that public personnel jurisdictions engage positive recruitment, positions.” One form least for various classes positive recruitment widely used securing the large corporations

PERSONNEL

268

Affairs at Albuquerque.

However, it can

[Ch.

17

be said with some confidence that

recruit

public personnel agencies have not engaged in this form of positive ment to any appreciable extent.

-

The Testing Process mimeographed

sheet,

as

printed

or

or

a

which

is

It tin

The Bulletin.-The holding of a test is announced by means of a bulle legal size. either letter position, qualifica title a

In

to

be

of

accepted, and where and how applications by

cations will

be

be

is

a

is

to

be

of

contains the usual class specifications, such tions, experience and training required, and typical tasks performed. job description -There also the duties. local jurisdiction the given, bulletin informs one when the test the last date when appli must

filed.

for examination

appear

at a

to

cants who meet the standards are notified specified time and place.

at a

Applications usually are received both public counter mail and maintained for that purpose. The applications are evaluated and the appli -

the testees

New York

a

as

to

written form all large cities such

in

a

in

in

local jurisdictions are administered single room, although assembled

of

The Assembled Written Test.—Most civil service tests in state and

of

of

in

of

in to

be

people simultaneously test may administered thousands several high school auditoriums various parts the city. The United States Civil Service Commission has made much more use the unassembled type

all

in of of

of

test, especially for the higher administrative, professional, and scientific positions, than have the other jurisdictions. During the war emergency types the early 1940's unassembled testing became quite general for

of

an

in

by

is

of

positions. The unassembled test approaches the type procedure used private and industrial personnel, wherein the evaluation based largely upon the information contained the application form, followed inter viewing and experience and professional attainment. How evaluation

of

an

as a

to

is

a

of

to

read and analyze each question and then separate piece paper. Until the 1920's, this variety thought

many

place

a

test

or to

The free answer

by

civil service commissions for the intermediate classes is

positions.

or

a

test was used

expected

all a

on of of

write his answer

is

He

by on

of

questions.

to of

written test known the college student essay examination and the personnel examiner free" answer test. given typed mimeographed paper containing Each testee number is

The traditional type

as

a

in

to

it

be

ever, emphasized that the normal type should civil service testing starts off with the written portion administered the testees when assem single room. bled together

premium

to

to

be

on

no

of

pencil, whereas written expression and facility with pen perform qualifications may ability these have relation whatsoever many jobs. Certain persons may have superior aptitudes and yet ease

Ch.

RECRUITING

17]

269

unable to express themselves satisfactorily. Difficulties in spelling, pufic tuation, and paragraphing are common in people with high degrees of com petence. Others fail to record well-known information due to a form of stage fright or to mechanical difficulties in using the pen. Administrative considerations raise further objections to free answer tests. They must be graded by high-salaried examiners, whereas the newer tests are easily and accurately scored by low-salaried clerks. Probably the major count against free answer tests, however, is their lack of objectivity. It has been found that no two readers will score a given test with equal results; frequently the scores vary so widely as to cause skepticism relative to the value of the test. One should not conclude from this discussion that the free answer

of

In

is

in

it

all

test has been abandoned entirely. Some agencies use it a great deal more positions, than others; but practically utilize for certain types particularly where the subject matter professional and technical nature

in

of

a

of

of

of

examining for executive and and the number testees relatively few. supervisory positions, personnel agencies make frequent use this type conjunction questions test. Also few free answer are often included

with other means

testing. an

or

is

a

is

to

or

be

by

no

is

arbitrary date must question, however, that since 1920 (if widely displaced set) the free answer test has been the newer short answer so-called objective varieties. The usual types are: the true-false, required where the testee indicate whether statement correct There

a a

or to

to

be

to

to

is

of

as

human beings, abilities be

to

to

be

is

in

definitely known that any average group according will distributed what has come probability curve.

of

a

of

a

of

a

if

to

proper distribution 200 questions abilities secured. longer list questions will tend other words, eliminate elements chance and secure better distribution scores for the group tested.

It of In

to

or

a

or

he is

incorrect; the multiple choice, where asked select the correct answer series; and the completion, requiring him supply answers from missing word phrase. The tests are usually mimeographed printed, copy going each testee. Each short answer test should contain from 100

known

the normal

a

is

is

of

to

as

enough, both probability curve

of It

a

be

A

be

superior; certain small percentage will still larger percentage above average; and the great middle group will demonstrate average capaci slightly below average, and the small remainder will ties. Others will inferiority. large exhibit decided known that where the sampling

to

a

on

of

as a

or

a

its

is

an

a

to

a

curve varying high low

of

is

given test administered large group presents markedly from the normal with abnormal proportion grades, there suspecting validity. some reason for

If

a

testees, the test and the number normal will result. The grades those taking the test will fall categories plotted graph they will tend into the described. When form what known bell. From this comes the term “biological curve.”

the extent

PERSONNEL

270

*The short answer test has

[Ch.

17

for several reasons. In the first place, it is much more objective to score than the older forms of examination. The testees are graded in accordance with a standard of measurement which can be applied to with equal fairness. There but answering question correctly. The varying judgments one way popular

of

is in

no

of

to

is

all

to

is

or

readers and scorers not enter answer either entirely correct tween, left the scorer's discretion.

to

confuse comparative grades. An wrong. There variant be This tends establish the confidence

in

do

a

of

all

become

a

in

be

of

a

in

to

for large

the third place, at

to

a,time—short thousands given the proper keys and sten answer tests are cheaper administer. cils, unskilled junior clerks can score them with facility. fact, some per sonnel agencies are utilizing electric test-scoring machines which reduce time and effort still further. Fourthly, and most important, short answer

In

to

If

groups—and assembled tests are now given

a

to

the applicant's fitness for the job.

In

section

of

is

be

a

of

of

on

to

is

both examiner and testee. The second chief advantage that short sample extensively answer tests will more the field covered shorter spending several hours time. Instead six twelve topics, hit larger number problems can and-miss essay test, the testee's grasp explored. The examiner thus enabled secure more accurate cross

to

to

is

about how each item will stand under the criticisms testees. After the tests have been scored, normally there

an

of

extent charge

sensitive disgruntled

is of a

up

is

of

public criticism Civil service tests must run the gantlet not encountered by educational tests. The result that those preparing and administering civil service tests always must

that the higher type

in to

tests has tended

produce

a

a

in

It

short answer

general way, however,

be

recruit.

known

to

introduction

of

and job performance.

is

of

is

of

it

be

to

tests are thought more reliable. However, not yet possible present unanswerable proof validity.” This largely due the fact that no extensive study has been made the correlation between test scores

to

These remarks are preliminary public personnel testing today

in

lished and become public property.

is to

in

of

In

to

of

to

period set papers, challenge aside for testees who wish check their own and the keyed responses any the items which they responded differently." correcting the tests are pub the City New York, the stencils used the

is

to

-

*

is

is

of

statement that the dominant trend the multiple choice type short answer item. The predominating reason for this trend that the multiple choice item easier defend than the true

is

is

a

to

it

to

in

of

it.

in

A

a

of

it is

it

it

if

is

it * *

if

A

happens test reliable measures accurately whatever measure: valid designed measures those traits, abilities, aptitudes, and skills which measure. “scoring reliability,” Public personnel technicians sometimes speak term which has different meaning. test has scoring reliability when several examiners achieve substan tially, the same results scoring See “The Scoring Reliability Test Material the Free Answer and Short Answer Forms,” Public Personnel Studies (May, 1928), Vol. VI, pp. 98–108. Key response the response expected by the examiner from the testee.

Ch.

RECRUITING

17]

271

false type. The latter is prolific of argument, whereas the multiple choice has proved to be less so in practice; however, statistical analysis has demon strated no great superiority as to reliability and validity for the multiple choice over the true-false."

W

and Aptitude

Intelligence

Tests.-A

significant

development

which

its

gained momentum in the 1920's has been the more widespread use of stand ardized aptitude and intelligence tests. By a standardized test is meant one which has been given to a large number of people at different times and

It

of

from

be

It

administration and scoring. that any single test score can all

in so

norms

determined

reliability and validity.

also involves predicates the establishment compared with the norm the group, tested." The most widely test, and that which gave the greatest

its

objectivity

of

analyzed statistically to establish

the scores intelligence

in

found useful

be

at

on a

to

in

known standardized testing, was the Army Alpha, developed initial publicity the army during the first World War. Since that time many such tests have been developed present approximately fifty may commercial basis and civil service testing.”

in

is

of

of

is

It

“I.Q.”

the

to

to

In

in

referred

as

to

monly

be

testers would like believe that they are examining for supposed nate and hereditary qualities. this sense intelligence something distinct from acquired knowledge. The scores achieved on the intelligence test are expressed terms the Intelligence Quotient, com Intelligence

indicative

mental age, but this

and below represents feeble-mindedness; above 130, quite superior.”

90

110,

opinion

is of

of

16

in to

14 14

at

to

fairly general consensus to

Probably

development.

a

is

as

as

of

be

term should used with caution. Consternation once resulted from re ports that the average mental age years. The mental Americans was regard maturity being years. There testers mental achieved not exact agreement what the I.Q. means terms mental that 69

normal; and anything

125 per cent

8.

for

of

a

of

on

125,

is

I.Q.

10

if

10, the

is

of

mental age

a

is

to

and

a

8

age

of

as

is

to

is

in

scoring intelligence tests for The intelligence quotient not used public personnel administration, the reason given being that the I.Q. method testing adults. The I.Q. figured not adapted the basis mental age compared chronological age. Thus, chronological child has

of

of

a

8. of a

in

L.

L.

of

as

a in

of

|

of

of

p.

I,

a

of

J.

°

of

of

in

of

p.

F.

*

R.

7

p.

°

in

of

Joseph W. Hawthorne, “Progress Methods Personnel Selection,” Public Per sonnel Review (January, 1942), 14. Wright, “Should Employment Tests Be Standardized.” Personnel Adminis James Brolyer, “The Meaning (December, 1940), Vol. III, pp. 6–9; Cecil tration Test Standardization,” Personnel Administration (February, 1941), Vol. III, pp. 8–11. Sublette, “The Preparation Donald Pencil and Paper Tests,” Public Personnel Review (January, 1941), Vol. 16. The development factor analysis has resulted the tentative isolation number single index, such mental abilities with the result that the concept the I.Q., ma" inquiry thinking be obsolete. Leaders this field are measurement terms Thurstone, profile which would reflect different factors. Theories number Intelligence (University Chicago Psychometric Laboratory, No. 18, February, 1945),

272

PERSONNEL

-

[Ch.

17

of

the battery

to

achieved

-

fit

into figures which into the total markings several tests administered all testees.”

in

The public personnel people have not capitulated to the conclusion that mental growth ends at 16 or thereabouts. The Army Alpha, which is an intelligence test once widely used by public personnel agencies, has a numerical scoring of zero to 212. The Scores achieved can be converted

in

very important place testing and aptitude tests have fairly positions. they seems well established that have determining general qualities which are desirable, but not

It

for many types

of

a

Intelligence

in by

in

some validity necessarily brought

hazard

entry

the public service.

that they can avoid this aptitude and items along with using standardized intelligence test

intelligence

of

questions

including

of

political

by

to

of

interests who seek block higher standards Some public personnel administrators claim

to

a

of

of

in

a

questions

is

which merely seek knowledge and information. However, some public personnel jurisdictions there political hazard intelligence and the use the standardized variety aptitude tests. They constitute convenient target for those with vested out

a

of

to

no

in

of

a

of

a

as

information instead separate part battery written tests. Personnel people other jurisdictions claim that they encounter opposition unusual the use

is

of

by

to

standardized intelligence tests, and they attribute this the fact that testing regularly systems such has been used the local school for many years. The result that the testees are familiar with the device the

of

it at

of

standardized test and give least tacit approval. Examples standard general intelligence are the Stanford-Binet, the Otis, and the ized tests

of

Army Alpha. Examples standardized aptitude tests are the O'Rourke Police General Adaptability Test, the Stenquist Mechanical Aptitude Test, as

However, the aptitude test aims

it at

nique and approach. ferent goal. Instead

an a

by

to

and the Minnesota Vocational Test for Clerical Workers. Aptitude tests are commonly referred synonymous with intelligence psychologists and employ tests. Both were developed similar tech entirely

dif

to

as

be

to

be

by

in

to

of

innate general mental qualities, seeks discover ability special thing. aptitude tests, the learn some Mechanical for instance, are widely used the public service. Perhaps confusion would referring psychologi avoided both intelligence and aptitude tests cal tests.

it

the occupation.

However,

is

nology, tools, and practices

of

the candidate's knowledge

it

probing

of

do have some value

in

to

as

in

Skilled and Unskilled Labor.—While pencil and paper tests can examining for the skilled trades and crafts, used one phase has been supplement performance found desirable them with tests. Written tests the

termi

good practice

in

of

a

*

complete discussion intelligence tests from the public personnel standpoint. For “Measuring Abstract Intelligence Public Personnel Work,” Public Personnel Studies (May-June, 1929), Vol. VII, pp. 69–92.

see

-

Ch.

RECRUITING

17]

273

to have electricians actually do a piece of wiring, sheet metal workers manufacture a piece of work from the blueprint, and tree trimmers actually demonstrate how they can do the work. This type of performance test may also be applied to stenographers, and other skilled office positions, and to designers and draftsmen. Such performance tests have considerable public relations value because they serve to convince department heads that serious

effort is being made to

select the most skillful from the available candidates. Testees are also impressed with the fairness of an examination which asks

them to demonstrate how to do the work on the job. Furthermore, the outside examiners who rate the performance tests carry away a more favor able impression of civil service examinations than they had theretofore pos -

sessed.”

One of the most perplexing problems in public personnel administration has been the recruiting of common labor. If too much attention is given to the examination aspects of the recruiting process, costs are raised out of proportion to the results achieved. On the other hand, if recruiting of this class of personnel is not subjected to the control of the central personnel agency, the door is left wide open to political preferment in this section of the service. As one personnel man put it: “The agency which does not succeed in solving the recruiting problem in this class is likely to build a good superstructure on a leaking hull.” As a matter of fact, the technicians consulted on this point will agree almost unanimously that it is not safe to leave the recruiting of common labor entirely in the hands of foremen, for be pressed to appoint men suggested by aldermen and other per having sons either political or personal influence. A considerable amount priority Employment of nepotism also will creep the basis application also has certain drawbacks. The men who are ahead list

of

on a

of

on

in.

they will

of

a

in

of

by

a

to

in

heavy percentage this manner are likely include the less competent, because they will have been among those first laid off indus trial plants which lay off the least competent first. The arguments are largely cheap and quick procedure which will sift out the favor prepared

to

is

to

in

a

is

is

to

to

In

a

of

majority jurisdictions have not developed Probably entirely satisfactory many cases this means themselves. due the apply the merit principle fact that local opinion not ready common administering labor lists where labor. There technical problem incompetent.

a to

of

de

In

if

employment occurs over wide geographical areas, but personnel techni given complete freedom cians believe they could solve this difficulty many exemption do so. instances the facto this class has given

desired opportunity for spoils appointments. Various skilled and semiskilled positions are filled favored individuals who are employed common laborers avoid the examination process.

*

of

Lyman H. Cozad, “The Use Service Commission,” Public Personnel

-

by

to

as

by

much

Performance Tests the Los Angeles City, Civil Review (October, 1941), Vol. II, pp. 281–289.

PERSONNEL

274

17

In

by

Probably a summary of good practice in common labor recruiting can made without incurring the dangers inherent in excessive generalization. all

be

[Ch.

as

a

to

be

be

the first place, labor positions should controlled the central personnel agency. Each applicant should subjected medical exami nation. Otherwise the city will incur unnecessary medical and workman's compensation expense arising from such common ailments heart disease be

graded, the usual practice being The applicants should then personal his brief oral interview combined with the testee's statement tory and past employment. Sometimes there strength, test such weights and the tossing heavy sacks. This may immediately the lifting

of

is a

order

to

of

precede the medical examination Some progressive agencies find

it in

of

as

a

of

and hernia.

detect abnormal heart action.

to

test for literacy, mental ability agility, and the relay and follow instructions. These take the very brief and practical tests, such form the repetition series numbers the reading street name sign. Still other agencies separate laborers into several general groups, Milwaukee. The appointment list competence rather than on priority should maintained the basis

of

a

of

of

of

on

be

as in

a

of

or

as

of

to

desirable

These general criteria constitute basis upon which any agency may proceed experiment with the recruiting common labor. to

of

a

application.

Administrative and Supervisory Positions.—Testing

for administra

at

lie

is

to

of

to

be

it

of

of

to

diagnose various These usually strive presumed the heart the problem. rather skeptical written tests which purport say attempts personality This not that

various traits and characteristics. aspects personality, which Psychologists

in

is

to on

a

is

tive and supervisory ability offers most perplexing problem, which far from being solved. There considerable research going this field, attempt prognosticate and there are on the market several tests which

to

of

be

at

to

is

by

all

tend personality. examine for pencil and paper should tests ruled out, for some the country's reputable psychologists experimented problem most have with the and even have published tests which seem have some validity when their limita be

it

of

a

is

to

or

acknowledged. Probably tions are recognized would more accurate say that there single over-all test which will pick out not available accuracy. administrators and supervisors with any considerable degree

in

is

conclude that the principal means

testing for personality

is is

forced

of

to

of

A

of

great deal being carried on commendable experimentation this field, and there are undoubtedly tests now available which, when used along validity.” However, one with other testing devices, have some degree

it of

in

II as

of

of

L.

to

of

of

A

L.

L.

to

to

as

it at

of

L.

in

A

in

12

study carried on Washington early World War had mind discovery predicting administrative methods success. Professor Thurstone protested that go ahead because was starting the complex end, but agreed the urging his col leagues that necessary pilots. Some tests did dif was just select administrators sufficiently suggest ferentiate between higher and lower salaried federal administrators Thurstone, Perception (Uni avenues for further investigation. Factorial Study versity Chicago Press, Chicago, 1944), pp. 131-144.

RECRUITING

Ch. 7]

275

still the admittedly crude device of the oral interview, which is discussed further on. Scoring Written Tests.-The larger public personnel jurisdictions have to carry a tremendous load in the mere routine physical scoring of tests. A general clerk examination may bring out 5,000 applicants in a city like Detroit and up to 20,000 in the City of New York. These tests usually consist of a mimeographed booklet including questions of the short answer

assure accuracy

it

order

of

have each separate set answers examined by scoring the larger agencies utilize a

Today most

of

two different clerks.

to

was often the practice

glance.

to

pick out errors

at a

to

permit one

In

it.

In

type. Each booklet is given a serial number, so that it cannot be identified by the one who scores the past these booklets have been scored by clerks who used stencils, which when laid over the answer sheet would

up the work immeasurably.” Sometimes civil service laws require that passing marks established arbitrary Many percentage personnel people some such 75. are irked as

at

be

machine, which has speeded

an

of

In

only one

addition, several sections. oral training and experience may follow. Because by

a

of

be

the test may rating interview and

of

part

of to

in

to

to

by this provision because the newer approach testing does not lend itself scoring manner; instance, this for written tests the short answer variety commonly have some 200 500 items. Furthermore, the written

its

is

of

the case, the letter

If

of

of

be

to

so

be

is

an

The Validity

held and the old list

be

new examination

be

quire that

a

of

In

be

is

at

required, those the bottom the mediocre and inferior persons who may bring political pressure reality, good personnel practice would re continuation the list.

When list may

for

arbitrary percentage grade

be as

to

of

a

at

number the top sufficiently large the known demands for the probable life the list. this composed only used, method lists can established those with known superiority, and new tests can held when they are exhausted. establish satisfy

eligible list composed

of

an

be

of

is

transforming the combined the law met percentage grade. scores into some sort Even though establishment may somewhat arbitrary, personnel technicians ordinarily would rather this

discarded.

of

making and evaluating measures personnel testing will find himself secures training

in

in in

in

of

procedures which are used aid capabilities. mental The technician handicapped his profession unless

he

an

as

in

of

to

of

Tests.-The science mental measurement has re ceived widespread attention from educators and experimental psychologists. testing utilizes many techniques taken from the The modern approach psychometrics. Techniques field this field involve complex statistical

statistical

Business

Machines w

*

Joseph W. Hawthorne and Muriel Morse, Administration (Los Angeles, undated), 43 pp.

in

methods. Public Personnel

PERSONNEL

276

[Ch.

17

The objective in test construction is to secure a test which possesses both reliability and validity. When used in this sense, reliability means the ability to secure the same score when the test is repeated either to the same group or different groups. It aims at consistency. Validity, on the other hand, relates the test to criteria of success on the job. A test is valid which measures the achievement or the traits, characteristics, and aptitudes which it is designed to measure. In order to establish the validity of public per sonnel tests it would be necessary to prove statistically that those who per form best upon the job were those who did best in the tests. One is forced to say reluctantly that this has not been done on any comprehensive scale; however, it does not follow from such an admission that civil service tests are necessarily invalid, but the criteria of validity usually applied to them are not too objective in nature. These criteria consist of the opinions which officers have of the capacity and competency of the eligibles certified to them, the opinions of experts asked to review the test both before and after it is given, the complaints or commendations emanating appointing

from the testees themselves, and the general reputations of those who prepare and administer the tests. In order to prove in an objective and statistical manner the validity of tests, it would be necessary for public per

sonnel agencies to establish research units, thereby entailing greater appro priations. Personnel agencies are normally so burdened with the load of administering

examinations that the available staff must put in many hours

of overtime just trying to keep up to schedule. Before research into the validity of tests can be carried on with any degree of adequacy, public personnel units must be provided with greater support than previously has been accorded them. Research of this kind means experiment—experiment with the fortunes of thousands Many psychological research beings public employment. of human who seek budgetary

efforts in the testing field involve test items designed to get reactions from the testee which are not apparent in the question. The result is that many questions at their face value seem absurd, whereas, in fact, they may have Aggrieved testees complain of the impractical nature of great validity.

their

of

be

a

favor

an

the argument

in

presenting

in

to

it.

to

such tests and appeal to their political representatives to do something about public gaze, they frequently offer When the items are revealed laughed out ridicule hazard which permits them court without atmosphere

less

charged

of

of

Some public personnel agencies now are carrying tion which seeks validity, and which one internal

statistical

that type valida the authorities has

of

research which seeks their correlation

means that type job performance. with

of on

not commonly established

by

service tests

is

of

to

it

to

is

with emotional fervor. The result that public personnel agencies may find much easier avoid newfangled notions and resort the three “R’s” for comfort. For these, and for many other reasons, the validity civil

Ch.

17]

ſ

RECRUITING

277

referred to as pulling one's self up by one's bootstraps.” This is com monly known as item analysis. Each question or item is analyzed statisti cally to find out how often it was missed and whether it was missed by those who stood high, low, or medium in the test as a whole. Skilled test can utilize statistical analysis of this kind as an indication of whether particular questions are good, bad, or indifferent. Sometimes the analysis place rating item takes before the final of testees, and those items which are revealed as having poor or doubtful value are eliminated before technicians

final scoring. However, using item analysis in the scoring process encoun ters a public relations hazard because it is necessary to explain to disgrun tled testees why the items which they answered correctly were not consid ered in the scoring. Statistical procedures, even though they have been fairly simple and objective, are often difficult to explain and justify when there is political advantage in confounding them.”

Progressive personnel agencies are tending more and more to keep card

files. of questions, each card containing one question. In addition to the statement of the question itself, there will be a record of what happened to the question after being subjected to item analysis in successive tests. Those items which maintain a good discriminating power become a part tests. Thus, the technician who is preparation confronted with the of tests has his task considerably lessened by being able to go to the files and secure a nucleus of questions having proven quality.

of the permanent file for use in future

The Oral Interview.—The oral interview is usually given to those who have passed the written examination. It is given by a board composed of personnel technicians, often supplemented by outside experts, laymen, and sometimes by an officer of the department where the position exists.

However, this latter practice is widely frowned upon

because

of suspicion

that insiders will be favored. Sometimes the departmental representative is permitted to observe without participating in the questioning or scoring. Candidates are frequently vexed at what they believe to be the irrelevant questions asked by the oral board. Many undoubtedly expect that they will be subjected to further questioning on the subject matter of the job. How ever, the primary objective of the oral is in an entirely different direction, namely, a judgment

as to the candidate's general personal characteristics.

impressionistic, largely subjective in nature, and admitted to be such by most frank personnel people. Indeed, they would like to make it as objective as possible, but they have not had much success in that direction

It is

so far. 16 ** Hawthorne, op. cit., p. 18. ** William T. Toolan and Kathryn A. Humm, Analysis of Individual Items for the Im. provement of Test Construction, as used by the Los Angeles City School Districts, Personnel Division (Los Angeles, 1937, mimeo.), 22 pp. Hawthorne, op. cit., pp. 11–19.

*

r

PERSONNEL

278

[Ch.

17

1936 and 1937, the New York Court of Appeals handed down deci deciding sions that the oral phases of examinations must be objective in nature. This created some consternation among public personnel agencies

over the country

of

all

In

experiment

to

with methods devising The chief result was the forms which require the recording the processes and results the oral inter views. However, seems possible that the oral interview has merely been formalized rather than objectified. Many these forms have, one and caused them

as

over-all impression

of

of

rated,

an

be

a to

the categories

of

it

of

of

of

objectifying the interview.

the candidates.

Studies

to by

at

or

be

to

is

be on

an

of

to

to

significantly high correlation between this over-all rating reveal ratings and the other the more detailed and specific items.” The infer probably bound ence would seem that the oral rating the expression impression, impression over-all least that the over-all seem

of

in

in

its

of

is

revealed the detailed working papers.” proposals On occasions there have been abolish the oral portion the subjective nature. Psychologists are almost unanimous test because their assertion that the employment interview widely used commerce usually coincides with what

by

at

is

of

a

of

and industry has doubtful validity. They strongly dispute the claims the judging men self-styled master short interview.” Yet this mode employment overwhelmingly prevalent still outside government circles. uses written tests, they are only auxiliary the employment normally subsequent Nevertheless, interview and thereto. there are few public personnel people who would abolish the oral portion the test. per They feel complete evaluating would not without some means

of

it

be

of

to

When industry

is

It

at

of

it

is

as

may be, the oral interview sonal qualities. Crude and subjective the only known method approaching this task. The oral board least can just detect the obviously bad and the attractive personal attributes. is it

go

the oral are those who

do

object

to

at

of

let

a

in

one more sieve the selection process, sieve with coarse apertures which through; but seldom likely that portions sometimes the dross rejected point. Investigation may the fine are this show that those who not like sieves.

Induction into the Service testees have completed the examination and the various scores determined, appointment list—sometimes referred have been the register—is prepared from the names eligible list those who were

or

&

12

E.

to

ft.

p.

3d

9

E.

9

N.

v. p.

of

v.

-

Ibid., 15. Finegon, 270 Fink Y. 356, N. (2d) 462 (April 14, 1936); and Sloat Eraminers, 274 N. Y. 367, (May 25, 1937). Board N. (2d) Walter Van Dyke Bingham and Victor Bruce Moore, How Interview (Harper Bros., New York, ed., 1941), 102

* * 17

all

maintained

at

lists should

a

at

Appointment

be

ments can period, usually two years.

of

a

This appointment list becomes roster from which appoint made during its life, most lists lapsing the end stated

be

successful.

as

of

to

an

When the

Ch.

RECRUITING

17]

'279

times for those classifications to which frequent appointments are made. For classes with ºnly one or two positions wherein vacancies seldom occur, it would be obviously unnecessary to maintain lists constantly. On the other hand, failure to maintain appointment lists necessitates temporary appointments. These may grow to unwieldy proportions where the person nel agency, owing to scanty support and inadequate staff, is unable to keep

up with its examining program. After the appointment list is completed, names are ready for certifica tion. The most common practice is to certify to the appointing officer the highest three, any one of whom may be and one of whom usually must be

In other words, when the department head desires to secure a person to fill a certain position, he asks the personnel agency to certify names on the eligible list of the appropriate class. He is furnished with the appointed.

names of the three standing highest on the existing appointment list and may choose any of the three. It has been urged that the appointing officer should be required to select the person standing highest on the list or explain

in writing his reasons for not doing

of this idea urge that failure to appoint the highest is in large degree a negation of the merit principle. They argue that tests used by public personnel agencies are so so.

Proponents

valid and reliable that personal interviews by the appointing officer can add little or nothing to the selective process.” Most appointing officers would not agree with this doctrine. Selection of names from eligible lists can be abused. A familiar means of evasion is to make successive appointments and discharges, continuously demanding new eligibles until a favored testee far down the list is reached. Another means of circumventing the list prin ciple in promotional examinations is to bring pressure to bear on the higher testees to waive their rights so that a favored person lower in the list may receive appointment.

-

. . ."

of, selective permits scanning only eligible registers certification. It not one but several to obtain individuals with particular training, aptitude, and competence. Such selection need not be confined to the top three upon the list. For There

seems to be an increasing trend toward, and approval

its

instance, a mechanical engineer with navy yard experience might not be within normal certification reach, but under the process of selective certifi cation he could be certified upon the basis of being the only one having the

of

to

those who administer

it

ness

of in

of

it

is

to

good of qualifications desired. Selective certification has supplies that flexibility which needed counteract excessive However, public personnel processes. formalization the success flexi bility any management process must depend upon the ability and willing

combination points, for

guard against abuses.

Selective certifica

?”

p.

p.

?”

p.

&

*

433; Co., New York, 1922), Lewis Mayers, The Federal Service (D. Appleton “How Many Names Shall Be Certified Public Personnel Studies (December, 1924), Vol. II, 267; “How Many Names Should Be Certified Public Personnel Studies (February, 1927), Vol. V, 25.

PERSONNEL

28o

[Ch.

17

in

confidence

to

all in

tion is open to the abuse that it may be used as a subterfuge to certify favorites who have no actual claim to preferment other than on the basis of political or personal connections. The Reed Committee Report recom mended a system of selective certification for federal attorneys, which is briefly described later in the section on administrative law.” It is advisable to do the personnel agency's power assure public test administration.

Some unsuccessful candidates are bound to a

by

A

of

of an

as to a

is

it

of

inspiring the confidence

be

of

is

in

of

higher positions, where the exam not always possible the case iners cannot help identifying those with whom they have had long associa identity may not tion the service. While the concealment essential part sound testing, nevertheless advisable means

in

This

is

of

to

is to

be

to

Certain common precautions will reduce minimum opportunities question the motives very those who conduct tests. general device have test papers identified numbers rather than by names, thus hiding the identity the testee until the paper corrected. disgruntled.

considering curtailing this service because the increased use test scoring machines and the pressure work. Practically jurisdictions provide for during trial period which

a

a

is all

of

of

them, but the Commission

of to

of

to

to

a

at

permitting competitors

gain access resisted various attempts its practice years has followed the for number see their papers the nearest district office

is to

of

test records.” However,

it

other hand, has successfully

to

as

on

of

he

to

of

is

It

of

the public. also good policy allow the inspection and explana testee access his corrected paper for purposes tion the position achieved the appointment list. Most state and local agencies permit such inspection under prescribed conditions time Commission, and convenience. The United States Civil Service on the

or

to

of

a

be

is as

he

to

In

as a

During this time the appointing officer discharge the free without recourse. There almost universal criticism that pro so of is

procedure. probationer

to

to of

to

perform grow into the new appointee demonstrate his ability duties the position which has been appointed. This period, usually part months, properly regarded limited six should the testing

of

on

personnel should replace the automatic completion

of

supervising

is

It

a

to

is

is

part not generally used the selective process. the federal during rejection probation service rare that the conscientious executive discharge probationer because such action would make him hesitates conspicuous.” urged that some affirmative action the part the bation

the

pro

to

of

on

by

of

In

allowing the end probation bation period. other words, instead slip unnoticed, probationary status would continue until the appointing

of

to

p.

3d

A

**

p.

a

of

L.

F.

F.

**

*

President's Committee Civil Service Improvement, Report, 77th Cong., 1st sess., House Doc. No. 118 (Government Printing Office, Washington, D.C., 1941), 128 pp. M. Stewart, The National Civil Service Reform League (University Texas Austin, 1929), pp. 153–161; Telford, “Right Inspect Federal personnel Citizen Records Denied,” National Municipal Review (February, 1928), Vol. XVII, 115. Herman Feldman, Personnel Program for the Federal Civil Service (Government Printing Office, Washington, D.C., 1931), 71st Cong., sess., House Doc. No. 773, 156.

Ch.

RECRUITING

17]

281

officer had furnished written notice that the appointee had given satisfactory evidence of his ability to fill the job. Where a large bureau, taking on many new workers each year, has no rejections, there would be a follow-up by the central personnel agency to see that the bureau was complying with the

provisions of the law.

-

counteract the occasional abuse of appointing and immediately dis charging probationers to get a favorite further down the employment list, various safeguards are proposed. One is that the probation period must last a minimum number of days or weeks, thus rendering the manipulation

To

process unduly long.

It is

also thought that the personnel agency should have the authority to return to the employment list persons who have failed on probation—a practice prevailing in many jurisdictions. Such individuals represent quite an investment on the part of the government. Failure to satisfy probation requirements in a single department may have been due to a clash of personalities, unfavorable emvironment, uncongenial associa

tions, or any number of causes not directly traceable to faults of the proba tioner. A proper study of placement would undoubtedly prove many who

failed on probation to

be valuable

workers

if

properly situated.

SELECTED READINGS BOOKS AND MONOGRAPHS Bingham, W. V. Oral Eraminations in Civil Service Recruitment. (Civil Service Assembly, Chicago, 1939), 30 pp. (Harper & Bros., New Bingham, W. V., and Moore, V. B. How to Interview.

York, 1941), 3d ed. Civil Service Assembly of the United States and Canada. Oral Tests in Public Per sonnel Selection. , (Public Administration Service, Chicago, 1943), 174 pp. Commission of Inquiry on Public Service Personnel. Better Government Personnel. (McGraw-Hill Book Co., Inc., New York, 1935), pp. 27–30. Committee Report. The Employment of Veterans in the Public Service of the United States. (Civil Service Assembly, Chicago, 1944), 8 pp.

Faraago, Ladislas (Ed.). German Psychological Warfare, Survey and Bibliography. (Committee for National Morale, New York, 1941), 155 pp. Guilford, J. P. Psychometric Methods. (McGraw-Hill Book Co., Inc., New York, 1936), 566 pp. Hawthorne, Joseph W., and Morse, Muriel. Business Machines in Public Personnel Administration. (Los Angeles, undated), 43 pp. Kingsley, J. Donald (Chairman). Recruiting Applicants for the Public Service. (Civil Service Assembly, Chicago, 1942), 200 pp. Martindale, (George Allen & Hilda. Women Servants of the State, 1870–1938. Unwin, Ltd., London, 1938), 218 pp. Miller, John F. “Veterans' Preference in the Public Service,” Problems of the Amer ican Public Service. (McGraw-Hill Book Co., Inc., New York), 433 pp. Report. 77th Cong, 1st sess., President's Committee on Civil Service Improvement. House Doc. No. 118 (Government Printing Office, Washington, D. C., 1941), 128 pp.

-

Toolan, William T., and Humm, Kathryn A.

Analysis of Individual Items for the Improvement of Test Construction, as used by the Los Angeles City School Dis tricts, Personnel Division. (Los Angeles, 1937, mimeo.), 22 pp.

,

282

PERSONNEL

[Ch.

17

PERIODICALs Brolyer,

Cecil R. “The Meaning of Test Standardization.” Personnel Administra tion (February, 1941), Vol. 3, No. 6, pp. 8–11. Cozad, Lyman H. “The Use of Performance Tests by the Los Angeles City Civil Service Commission.” Public Personnel Review (October, 1941), Vol. 2, pp. 281–289.

'Harvey,

Verne K., M.D. “Recent Trends in Physical Examination Under Civil Service.” The Journal, American Medical Assn., Chicago (February 21, 1942), pp. 1–7. Hawthorne, Joseph W. “Progress in Methods of Personnel Selection.” Public Per

Review (January, 1941), Vol. 2, Olson, Emery E., and Pollock, Ross. 8,

Vol.

in

petence

Service.”

28–35.

“Staffing and Training for Administrative Com (September, 1945), Personnel Administration

pp. 8–14.

“Improving the Civil Service Essay Test.” Norman Public Personnel pp. 112–119. Review (April, 1942), Vol. Strong, Edward K., Jr. “Interests Public Administrators.” Public Personnel pp. 166–173. Review (July, 1945), Vol. Sublette, Donald “The Preparation Pencil and Paper Tests.” Public Personnel pp. 1–17. Review (January, 1941), Vol. Sublette, Donald “The Returning Veteran.” Public Personnel Review (July,

Vol.

Louis

pp. 147–153.

L.

1945),

Thurstone,

6,

J.

2,

J.

of

6,

of

3,

J.

Powell,

the Federal

pp.

sonnel Review (January, 1942), Vol. 3, pp. 11–19. Johnson, Eldon L. “The Administrative Career of Dr. W. W. Stockberger.” Public Administration Review (Autumn, 1940), Vol. I, pp. 50–64. Kingsley, J. Donald. “Recruitment—the Quest for Competence.” Public Personnel

“Testing Intelligence and Aptitudes.”

4,

3,

F.

be

6,

(January, 1945), Vol. pp. 22–27. Wright, James “Should Employment Tests pp. istration (December, 1940), Vol. No.

Public

Standardized.”

6–9.

Personnel Review Personnel

Admin

CHAPTER

18

CLASSIFICATION AND COMPENSATION Trends in public administration reveal more and more a close relationship

A

between budgeting and personnel processes. reflection on the situation generally ago which existed a decade would disclose that at least one-half of the budgeted expenditures of governments went for personal services in the form of wages, salaries, and fees. If debt service were excluded from the computation,

salaries and wages would normally constitute, in some jurisdictions, as high as 80 per cent of the current expense. Today, these

percentages are certainly no less than before. Budget officers are extremely interested in duties classifications, com pensation plans, the numbersof persons needed to perform any particular job, and the entire range of personnel activities affecting expenditure. The officers are just as concerned about making correct payments for personal services as they are in drawing warrants for supplies; indeed, they should be more so, for personal services constitute greater totals.

accounting

Whether or not matters of sick

leaves, vacations, disability,

and retirement problems cannot be

payments are predominantly budgeting or personnel of by any categorical answer. The only reasonable conclusion is that the housekeeping phase of the administrative process is not divisible

disposed

into independent compartments; it is

a single, unified process into which the various technical services should merge to achieve the most effective results.

That is why the British have found that the Treasury can best exercise budgetary control over personnel. There have been many indications that we are evolving in a similar direction. The following pages purport to treat budgetary of those procedures and activities which combine personnel and * º characteristics.

The Classification Plan Many personnel workers regard the classification plan

of a sound personnel program."

Recruitment,

as the keystone

training, promotions,

trans

fers, and fiscal operations involve procedures the successful administration of which will depend largely upon the existence of such a well-established and well-administered * The standard the Public Service

plan. Reference to “classification”

here

will mean the

work is: Ismar Baruch, Committee Chairman, Position-Classification in - "(Civil Service Assembly, Chicago, 1941), 404 pp. 283

PERSONNEL

284

“position” or “duties” classification and not word which differentiates civil service from classification may govern those jobs which are subject to the merit system. Hence, it would

[Ch.

18

that frequent usage of the exempt positions. Position not under civil service or not not be accurate to say that

they are not classified.

The position classification plan refers to the allocation of positions to classes on the basis of duties performed, the responsibilities involved, and functions concerned. In other words, posi tions with like functions and like responsibilities are grouped into a single class, without regard to the department or service in which they are located. the authority

and supervisory

It

is generally considered a wise policy to make individual classes broad enough so as to be mutually exclusive and to provide the necessary flexi bility for the classification of any new positions. The determination of should follow an objective and impersonal procedure. No consideration is given to the qualifications or personal characteristics, work habits, or other attributes of the person currently employed in a particular classifications

treated in the determination of rates for the various levels of responsibility that may be designated for each class. Position classification disregards departmental

post.

Such factors may

be subsequently

compensation

boundaries. It works on the principle that a stenographer in the health department should have the same qualifications as a stenographer for a tax commissioner. Positions are grouped into classes on the basis of ability to subject them to common treatment with respect to compensation, recruit ment, and other personnel activities. Members of the same class will ordi

a

in

all

narily have the same pay, their duties will be almost identical, and they will have been chosen by the same selection process. It should be possible, particular employ therefore, to fill positions the same class from by a

ment list.

some

jurisdictions which have

no

tees.

In

and 1930 and conducted under the authority

function. 1917

of

York State classifications initiated

staff specially in

to

in

be

Such was the case of the New

or

an

a

of

the approval central personnel agency and aided personnel technicians. Occasionally outside skilled designated group may discharge the classification called

highly

of

by a

by

to as a

or

is

usually prepared The classification plan central personnel agency, department personnel offices sub civil service commission,

such ject

special legislative commit classification law, the responsible

officer designates the classification. Line officers, however, should free classification duties because they ordinarily not have requisite ability the time, energy, devote such problems. Successful do

to

be

is

of an

is

be

such

it

only

by a

involves well-established principles and techniques which can specially trained staff. Furthermore, only through met agency that ultimate objectivity and uniformity can obtained. necessary plan the information for the classification secured

classification

Most

to

of

or

be

administrative

CLASSIFICATION AND COMPENSATION

Ch. 18].

285

from desk audits, interviews with department heads and supervisors, and studies of the individual positions themselves. The most widely used tech nique is the questionnaire in which each employee is requested to describe Opportunity is frequently provided the his duties and responsibilities. employee to volunteer comment as well as to check descriptive phrases. The questionnaire then goes to the supervisory officer for checking and supplementary information. However, he is not permitted to alter employee comments. Thus, if an individual tends to think too well of his responsi bilities, there will be a balancing check provided by comments from his chief. After approval by the bureau chief or department head, the ques tionnaire is transmitted to the classifying agency for examination and acceptance. Questions that may arise can be settled through conferences or

with the appropriate department officials.” When the questionnaires have been turned in to the personnel agency, they are sorted into classes. To each of these is allocated a descriptive class title by which the class will be subsequently known in the various

consultations

accounting, personnel, and budgeting processes, as well as by administrative officers and appropriating authorities. Then follows the writing of the class specifications, which should be so worded as to distinguish clearly each class from every other class. In doing so the class title should be defined by including statements of duties and responsibilities, typical tasks, and minimum qualifications required. Sometimes the principal lines of promotion

The following class description

are also designated.

trative:

is

illus

º

CoLLEGE

DEAN

DUTIES: Subject to the administrative approval of the President, Institution of Higher Education, to have charge of the curriculum and the guidance of students in one of the colleges of an institution of higher education; and to do other work as required.

Typical Tasks:

Cooperates with the members of the faculty of arranging college the in the curriculum; revises courses of study and catalogue construction; interviews students with reference to their

educational progress; advises new students and assists them in arrang ing their courses; conducts entrance examinations and diagnostic tests; assists in securing positions for graduates and former students; prepares and keeps student records; makes reports.

Either (1) education equivalent to of M. A. from a college or university five years of successful experience in

MINIMUM QUALIFICATIons: that represented

by the degree

of recognized standing

and

* For discussion on the techniques and sources of class information see Lewis Meriam, Public. Personnel Problems (Brookings Institution, Washington, D. C., 1938), pp., 20–28; and William E. Mosher and J. Donald Kingsley, Public Personnel Administration (Harper & Bros., New York, Rev. ed., 1941), pp. 416–423.

-

PERSONNEL

286

[Ch.

18

teaching or educational administrative work; or (2) any other equiva lent combination of education and experience; ability to size up situa tions and people and to get along well with others; administrative ability; ability to give counsel to students; firmness; initiative; tact; discretion; good judgment; good address.

Additional Desirable Qualifications: Education equivalent that represented

by the degree

to

of Ph.D., from a college or university

of recognized standing.” of class description? Why does the American per regard sonnel technician them as the keystone of his work? Convincing answers to these queries are not lacking.” In the first place, classification produces a comparative measure of duties’ which permits equal pay for What are

the uses

equal work. Thus, a proper control of the classification plan will tend to reduce and eliminate favoritism in pay matters. In the second place, an objective standard of duties forms the measure for setting salaries and rates of pay in terms of what the performance of similar duties would command

elsewhere. Thirdly, a proper delineation of duties aids in setting standards of job performance. A fourth advantage accrues from the ease with which organization charts can be built from properly prepared duties question up a

a

is,

naires. In the fifth place, an adequate classification plan will clearly indicate given class will lead the path of promotion, that whether blind

a

is

to

view. Still seventh advantage the general stimulation good management practice resulting from having good written job descrip in

objectives

to

in

of

be

A

to bya

or

recruiting progressive career. sixth merit lies the aid class definitions which clearly set forth the desired personal qualifications workers. Tests can constructed with definitely stated alley provided

of

by

a

of

a

can

detected

by

positions

be

essary duplication

of

be

to

a

be

s

of

all positions. grouped Under seventh heading can host considerations accruing from the impetus given effective budget control the classifi plan. may given cation Each class code number for the purpose identifying the position, thus facilitating accounting operations. An unnec tions

the descriptions

and

of

of

job performance resulting from the classification study. Merit, standards rather than inertia, haphazard chance, and political favoritism, forms the gross basis for job holding. Classification permits the elimination

of

of

in

in

of

of

inequalities and the adjustment pay rates accordance with duties performed. Indeed, the theoretical arguments favor the classification plan are endless and almost unanswerable.”

1941), pp. 55–82.

of

R.

to

a

sembly, Chicago,

in

*

•

*

p.

*

of

Proposed Classification and Compensation Plan for the Public Service the State Ohio (Columbus, 1930), 129. Dawson, For view not favorable classification see M. The Civil Service Canada (Oxford University Press, London: Humphrey Milford, 1929), pp. 154–177. Report, Committee Position-Classification the Public Service (Civil Service As

Ch.

18]

CLASSIFICATION AND COMPENSATION

287

The Compensation Plan Classification is essential to an agequate compensation plan, but the converse is not true. The compensation plan has an integral role in personnel administration and is based on the classes previously designated in the classification plan. Such matters as attracting and retaining the most com petent employees, developing a real career service, assuring uniformity and justice in the administration of pay rates for employees occupying similar positions, and maintaining employee morale represent only a few of the desirable features achieved in great part by a proper compensation scheme. One of the first steps is the determination of the compensation policy." What factors, principles, or general policies are to govern in determining rates of pay? Are they to be no greater than those similarly employed in local private enterprise, or is a decent minimum standard of living, irre spective of competitive rates, to be the guiding factor? What consideration is to be given to the scale of union labor?

Shall compensation levels be made flexible so as to meet fluctuations in the cost of living as indicated by price indexes? What salaries and wages can the government afford to pay? These and other questions can be answered by intensive study, the accumulation and sifting of exhaustive data, and the judicious application

of pertinent facts regarding salary scales and wage rates. The use of questionnaires and personal interviews and consultations with private and public agencies, as well as with leading trade and profes sional organizations,

are among the devices frequently employed toward these ends. Information concerning prevailing salary rates and the adminis tration of an equitable and uniform compensation policy may often be secured through available class specifications which convey a clear picture of actual jobs as represented by the class titles. The general compensation policy having been decided upon, it is possible to proceed to the allocation of pay rates to classes. This is usually done by fixing a minimum rate for new appointees and a maximum which is the highest paid to anyone in that class. There will also be, between this minimum and maximum, one or more intermediate rates which will be attained only by demonstrated pro ficiency and periodic service ratings. Progression from lower to higher pay rates within a class should not follow automatically after length of service. Care should be taken to avoid making the minimum rate of any class any lower than the maximum rate of the next lower class. In preparing a compensation plan, data relative to wages paid for comparable work by other employers in the same locality are almost indispensable. Although there are certain standardized techniques" and procedures that may be universally applied to the establishment of a compensation plan, one must

wary of becoming stereotyped and not lose sight of conditions prevail solely in the particular government agency concerned. be

which

PERSONNEL

288

[Ch.

18

The fundamental aim of a compensation plan based on classification is equal pay for equal work. Furthermore, it must be susceptible of practical application and provide for the administration of pay in accordance with the essentials of the job irrespective of extraneous personal qualifications or abilities. Hence, a junior accountant in a budget bureau should be no more valuable from a pay angle than a junior accountant in a comptroller's office. If he is doing the work of a budget investigator, his class and salary should

be changed to conform to his actual duties. If a person has capabilities in excess of the maximum requirements of his class, he should be rewarded not by special exception in his existing class pay rates. In a classification study of the New York State service, it was found that for persons performing the duties of what should be senior clerks there were by promotion,

50 rates of compensation ranging from $696 to $4,000. Those functioning typists received 52 different rates of compensation varying from $744 to $3,000." These examples are not such absurd exceptions as might be imagined; they can be duplicated in a great many services." The demoralizing effect of such discrepancies is apparent. Aggressive depart ment heads are able to secure salary increases for favored employees with out reference to the competitive or comparative value of services rendered. Under such conditions, compensation tends to depend on political influence, , favoritism, and nepotism, instead of proficiency in job performance as should be the case. A compensation plan based on class definitions will furnish a technical structure of great value in administering fair pay poli However, this technical structure alone cannot produce equitable cies. as assistant

compensation methods;

it must have the support of a sincere community desire to maintain the merit spirit in such matters. Compensation levels in the various public services may or may not be the result of deliberately determined policies or principles. The cost of living, financial condition of the agency concerned, legal restrictions, and the recognition of union rates and wage trends in the particular area are important factors frequently given consideration. The chances are that in any given jurisdiction the interaction of group interests has a tremendous bearing on the situation. The Personnel Classification Roard found that federal pay exceeded that for private employment in positions where the compensation was less than $2,000 per year. Where salaries exceeded that figure, the opposite was true. The salaries paid by private concerns to their major executives exceeded federal pay for positions of similar responsi bility anywhere from

100 to 500 per cent.”

A similar

conclusion undoubt

* H. Eliot Kaplan, “Reclassification of the New York State Service,” National Municipal Review (June, 1932), Vol. XXI, No. 6, p. 404. * See for example, Griffenhagen and Associates, Report on Classification and Compen 1937), pp. in the Service of the Commonwealth of Virginia (Richmond,

†: fººtions ,

/1

pp.

* Personnel Classification Board, Closing Report of Wage and Personnel ernment Printing Office, Washington, D. C., 1931), pp. 114–122.

Survey (Gov

CLASSIFICATION AND COMPENSATION

Ch. 18]

289

edly can be drawn for state and local jurisdictions. The average voter is a person of very modest income who cannot possibly see how anyone can earn a salary in excess of $5,000. On the other hand, the representatives of

of

all

union labor constantly bring pressure to bear to maintain union wage scales Employee organizations often wield sufficient in the labor classes. political power

see that their wage interests are not ignored.

of

In

in

in

of

an

of

to

is

it

so

to

There are militantly campaigned numerous cities where policemen and firemen have setting salary for charter amendments favorable scales.” These conditions generally that pay exist difficult state any prevailing principles places level determination. There are where sheer inertia creates under paid service, and there are other jurisdictions where many those who are the public service are paid more than they would receive for similar duties the competitive market.” times industrial depression, taxpayers' groups exert tremendous

It

Employee groups usually resist the inevitable long possible. Eventually, however, they must accept percentage cut salary, take fur join loughs pay, vacations without even forced the unemployed. From the standpoint technical personnel administration, retrenchments

If

of

of

be

personnel morale. should effected with minimum loss left political pressure groups, the result will depend free interplay strength

the the

employees and the large taxpayers. Where the employees are highly organized, the City New York and San Fran cisco, needed retrenchments may long delayed. too Where they are

of

in

poorly led, the demand for reduced taxes may create

* severe injustices. perplexing problem

to

in

is

Faced with the task

later.

of

decade

as

the cost

of

acceleration and upward

a in

A

public pay scales rapid the adjustment living happened downward the early 1930's

of

loosely organized

or

be

as

of

comparative

on to

to

be

or

a of

or

a

wages.

as

in as

of

is

reduce governmental expenditures. inevitable that the principal burden the resulting retrenchment should fall upon salaries and

to

pressure

adjusting the salaries

in

to

of

by

to

to

in

of

compete against order meet rising living costs and during higher wages private industry, many the offered cities the initial provide for increments stages the war emergency were obliged their employees,

of

relieved salary prob fluctuating scale based upon

means

living. Except for the wages

a

by

1922, had apparently

of of

the cost

of

of

a

which, under plan adopted municipal employees lems

in

of

pay rolls. The methods most commonly used included straight percentage increases, flat horizontal rate additions, and cost-of-living adjustment plans. An outstanding exponent the latter technique was the City St. Paul

laborers and unskilled workers

in

of

an

*

63

in

in

of

*

of

Employment, Citizens' Budget Commission, Inc., Compensation, Conditions and Retirement Benefits Policemen and Firemen New York City and 292 Other Cities pp. the United States (New York, 1938), wages For extended discussion the public service see Mosher and Kingsley, op. cit., pp. 443–449.

PERSONNEL

290

[Ch.

18

personnel, the pay of employees in is adjusted each year on the basis of price indexes reflect ing changes in the cost of living of at least 2 per cent over the previous year. No formal action or approval by the city council is required before the changes are written into the budget. Alterations in pay scales have been

and the salaries that municipality

of top administrative

made without friction, the employee and taxpayer each feeling that he is being treated fairly and in accordance with principles of justice. The plan has worked so well in St. Paul that it has been adopted with variations in other jurisdictions, such as Milwaukee, Duluth, Portland, and Niagara

Falls. The adoption and intelligent administration

of sound position classifica compensation plans tion and have made the task of adjusting pay to the cost of living a simplified procedure in progressive public jurisdictions. This latter function is frequently aided by a study and comparison of local pay trends with average trends as shown by figures of the United States

Bureau of Labor Statistics.” Living costs between localities will differ. This is due not only to variations in climatic conditions and economic fac tors, but also to differences in housing, transportation, and other facilities. Although “prevailing rates” paid for similar work in private industry are

in adjusting public pay scales to the cost of living index, still the latter is an idea which merits the investigation and deliberation of all salary-fixing bodies.” not always given consideration

Administration

of Classification and Compensation

Momentous questions of power and authority are involved in the actual carrying out of the classification and compensation plans. Should the classi fication plan be passed upon in detail by the legislative body? Should every subsequent change in class require legislative enactment? And should the allocation of positions to classes be an administrative or a legislative proce dure? The better view favors a maximum of administrative discretion in

The legislation should be basic rather than detailed in char ordinarily acter. It is sufficient to enact a statute or ordinance naming or creating the administrative agencies to be in charge of the work. These these matters.

agencies should be authorized to make the classification and compensation plans, to make rules and regulations governing the administration of the plans, and to see that the various administrative subdivisions observe the rules.

-

** Labor union contracts have in recent years contained clauses providing for automatic readjustment of salaries geared to some such price index as that of the U. S. Bureau of Labor Statistics. ** Civil Service Bureau, The Civil Service Mcrit System in the City of St. Paul (Feb ruary, 1942), pp. 3–4; J. M. Leonard and Rosina Mohaupt, Cost-of-Living Salary Plans Research, Inc., February, for Municipal Employees (Detroit Bureau of Governmental 1942), p. 1 ff.; Jeremiah J. Donovan, “Pay Adjustments for City Employees,” Public (January, 1942), pp. 8–12; Samuel E. Turner, Jr., “St. Paul's Adjustable Management Salary Scale,” National Municipal Review (December, 1938), Vol. XXVII, pp. 583–587.

Ch.

CLASSIFICATION AND COMPENSATION

18]

291

One occasionally finds some friction between the central finance and personnel agencies relative to who shall have the responsibility for making recommendations affecting the compensation plan. Realism will permit no evasion of the budgetary aspects in setting rates of pay. The clamor in 1941 for the enactment of the Ramspeck-Mead so-called automatic salary increase bill arose from the abuses accumulated over a long number of years as the result of economy pressure upon the budget. The Appropriations

of the House of Representatives ultimately called upon Bureau of the Budget for recommendations to bring about equity in very significant that matters between the civilian services.” Appropriations request should have been made the Committee is

the the

to

the Civil Service Committee the that the budget people are going

by

In

say

to

of

proposals about the feasibility alter the many state and local jurisdictions the recommenda compensation are made the central personnel agency

to

have considerable compensation plan.

to to

of

Bureau the Budget rather than Civil Service Commission. The point

the pay

is

by

by

It

of

all

Committee

is

a

distinction apparent

in

so

by

made between position classification and compensation—a professional personnel. people, but not sisted upon

to

In

by

a

of

in

tions for changes and based upon statistical studies what other employers, both public and private, are paying. There are few jurisdictions where such proposals are made the budgetary authorities. these cases strict distinction

making

on

personnel people cooperate harmoniously

in

employees and laymen. The personnel agency prepares and adopts the classification plan, but the financial planning unit recommends salary scales for the various classes. The ideal situation exists when the finance and recommendations

pay matters. its

is

by

it

a

in

of

administering the greatest difficulties classification and com adoption'in pensation plan securing the first place and then maintain ing orderly change without letting individuals bring political pressure

One

all

it in

to

detail. Employees are usually very nervous when classifica compensation tion and matters are being studied and alterations are being possible considered. Imagination, gossip, and grapevine rumor magnify distort

which jeopardize job security. The result that highly just compensation plans are often sabotaged politically before they have chance operate. The proper way handle situation this kind for the is

of

a

or

provide that the city council legislature shall not deal with individual positions. The legislative body may properly set

of

basic law

to

to

to

a

is

forebodings

is

of

to

R.

H.

R.

H.

to

R.

H.

on

§º.

be

in

of

as

or

the salaries salary ranges for broad grades, services, with intermediate steps done the federal service, but the allocation individual positions these ranges should an administrative act. Prior the Classification Act

of

D.

a

on

R.*

625, 626, 1073, Committee the Civil Service, Hearings Salary Advancement Plan for Federal Employees, House 3306, Bills Proposing Printing Office, Washington, C., 77th Cong., 1st sess. (Government 1941), 126 pp.

H.

-

PERSONNEL

292

[Ch.

18

was dealing with thousands of cases of individuals who importuned Congressmen to improve their individual pay scales. The Act of 1923 left the matter of pay increases to departmental officers within a 1923,

Congress

single grade, requiring the approval of the Civil Service Commission when there was to be a change in grade. In other words, the allocation of indi viduals to classes and grades is an administrative matter in the federal service.

City charters should provide in the individuals is not a proper matter to

be dealt with by the city council. objecting are often found to provisions of this kind they would rather bring their pressure upon the political branch

Employee because

same manner that the pay affecting

groups

-

where they feel they can be more effective. In the installation of classification and compensation plans various ques tions arise relative to the treatment to be accorded to previously existing positions.

After they have

been allocated to the new classes,

there should

formal announcement of the change so that the new class title will appear on payrolls, accounts, and personnel records of various types. The allocation of positions under a new classification plan should not affect the tenure of those occupying the positions, even though they may not meet the minimum qualifications specified in the new class descriptions. The acknowledgment of such a principle will avoid a great deal of embarrass ment to the plan as a whole, and will tend to allay the fears of those who frown on any innovation touching their jobs. The same is true of the com pensation plan. An existing rate below the minimum for a class to which a position is allocated should be raised to that minimum. Where the existing be a

rate is at one of the rates of the class, it should not be changed at installa tion. If an existing rate falls between two of the rates for a class, it should be raised to the higher of the two. the existing rate is higher than the

If

for the class, the incumbent should be permitted to retain his former rate as a special consideration to him. These exceptions should last only while the existing incumbents hold office. The exceptions are made only to forestall excessive legislative lobbying and opposition to the plan. No duties classification can be so wisely devised that it will function automatically. A well-run personnel agency will be constantly alert to see harmony with changing conditions that classification administraquestion requests positions, tion. will for the establishment new

of to

of

is

be

fit

to

see that they are not mere political subterfuges secure greater rates pay for individuals whose duties would existing into classes. Unless such supervision provided, the classification plan may stretched and warped

common labor

will

be

of

specific individuals; men performing the tasks

to

no

to

of

to

suit the political convenience those who are opposed the merit prin ciple. Gradually several codes, with widely varying salaries for the same duties, will appear, quite often for other purpose than “take care of"

.

of

is in

It its

maximum

Ch.

CLASSIFICATION AND COMPENSATION

12]

293

carried as mechanics; mechanics will be carried as skilled artisans; and those doing merely clerical work will carry the title of accountants. Such a situation can only be avoided by giving a personnel agency the power and authority to exercise constant vigil and act in the interests of good

administration.

Some changes in the classification plan will frequently be deemed desir able. New positions must be created, and the nature of the duties of exist ing classes will be altered by uncontrollable circumstances. The introduction of functions not hitherto undertaken, often means the creation of new classes or the adjustment of old ones. It has been estimated that there is a

be

of

is

It

or

in

all

normal expectancy of 50 to 100 amendments peg year in a service of 5,000 positions.” In spite of utmost vigilance, it will usually be impossible for a personnel agency to be aware of the changes duties constantly taking place. advisable, therefore, that some provision machinery set up or

a

view toward achieving current maintenance the classification plan, plan inevitably that will become obsolete with resultant deleterious effects upon the entire personnel program. Periodic audits and resurveys are

with

through

In

in

of

the civil service are surveyed and reclassified process completed. On the federal level each until the entire analogous classification surveys have been conducted the classification

one-fifth

the positions

the use which the classification changing situations. some jurisdictions Thus, procedure. continuous Detroit

in

be

be

kept fairly attuned reclassification surveys may

plan can

of

techniques available,

a to

proved

by

is

year

division of the Civil Service Commission.” of

administration the compensation plan involves the being sure that the persons mechanical factor the payroll are actually Although yet completely solved, work. not there also the problem securing an adequate quantity and quality work. Salary and wage condi

of

of

is

at

of

on

The continued

in

be

These may reflected the budget estimates column, which gives details for personal services.

date.

scales

Adjustments will for specific classes.

the appropriate tabular As changing duties alter

in

in

to

be

currently reviewed and kept up existing pay made from time time to

have

be

to

tions must

the light

of

tion

in

be

old class limits, accompanying salary-variations must take place. Hence, given periodic review and reexamina the entire compensation plan must changing economic and social conditions.

Personnel Reports and Payrolls on

of

C.

of

of

Payroll padding has been one petty graft. the most prevalent forms One recalls the amusing case “L. Smith" who was carried the pay a

5,

of

Çiğı

pp. 3-12.

a

**

**

“Proposed Rules for Public Personnel Agency with Explanatory Comments,” Public Personnel Studies (June, 1928), Vol. VI, pp. 117, 123. Ismar Baruch, The Administration of Classification Plan Through Periodic Audits Service Assembly the United States and Canada, Chicago, 1936), Pamphlet No.

294

*

PERSONNEL

[Ch.

18

turned out to be a typewriter.” There personnel are a number of other abuses which could be reduced to a mini mum by the proper system. These include chronic tardiness, uncontrolled time-off, absence due to sickness, and general attendance. '

roll as

a typist, but who ultimately

In the past the customary payroll procedure provided that the payrolls, be made out by the employing departments, preferably

upon uniform blanks However, progressive opinion favors preparation of the payrolls centrally, usually by the comptroller's office. The central per sonnel agency should certify the payroll before payments are made in order to keep the latter in conformity with the classification and compensation plans. Frequent checking of the payroll by the central personnel agency will prevent abuses, although such a procedure will be of little value and will create unnecessary delays if performed in a perfunctory manner. The

centrally

prescribed.

data upon which the payrolls are based should be built up from attendance records maintained by persons specifically designated in each department for the task. The department head and finance officer of the department

will make frequent checks to

see that these attendance records are being

These same officers should be required to certify to the correctness of such reports before they are forwarded to the payroll authorities. It is customary to require that the persons whose names appear on the payroll have been legally employed. The accounting office should accurately kept.

check also to see that the positions on the roll have been authorized and the funds provided. A certification of the auditing agency acting as representa tive of the legislature may also be required. It is not necessary to have three agencies conduct a separate check. The personnel agency and comptroller's office may unite in supporting a clerk who pre pares and checks the payroll for both. The use of mechanical equipment each

of

these

constitutes a considerable saving in the preparation of both payrolls and checks. There really is little reason for paying other than by a check signed by a single responsible financial officer. The distribution of these checks goes preferably through department channels, followed from time to time by an auditing

officer's post-audit of the payment; the comptroller may deliver at random for purposes of internal check. The titles used in the class descriptions should be required in preparation

of payrolls. Deviation from standard official titles, while rather common practice, presents certain dangers. It may be conducive to an adjustment of salary rates according to payroll titles which have no fixed meaning, rather than to titles the meaning of which are defined. Such laxity may, deliberately or through inertia, result in thwarting the purposes of the clas sification and compensation plans. For accounting and control purposes it is thought well to designate the various classes by codes composed of letters

* Charles

millan

E. Merriam, Chicago: A More Intimate York, 1929), p. 29.

Co., New

View of Urban Politics (The Mac

CLASSIFICATION AND COMPENSATION

Ch. 18]

295

and numbers. Such combinations furnish convenient designations for ledger and report columns without writing out the entire title.” Each pay roll should carry the name of the employee as carried on the records, the first, with the names of each organization unit in alphabetical In addition.to the class title and (or) code, the payroll period, the

surname order.

rate of pay, and the total pay for the period should be set forth. The amount of time-off because of vacation, sick leave, special leave, or for other reasons should also be indicated. After the payroll is certified by the personnel officer charged with that duty, it should be forwarded to the comptroller. After satisfying himself that the positions have been author ized and that appropriations are available, this official should proceed to prepare the warrants which authorize the treasurer to pay.

One of the essential administrative reports is that which tells the story of employment. This is usually known as the monthly personnel report and is an accumulation of totals from statements made by departments to the central personnel agency. It should show such information as the number of employees added during the month, the net change in payroll totals, the monthly labor turnover, and such other facts as extent of absence, tardiness, and overtime. Such a report should be of value for showing trends, both for management purposes and for public information. It would undoubtedly aid in the determination of employment policy by the legisla tive body.

Vacation and Leave Regular vacations should be aided and encouraged by good personnel administration. Their advantages consist in the relief from nervous strain, refreshing the effect of a change in environment, not to speak of the rest many instances, vacations offer the opportunity for broaden involved. In ing contacts and self-improvement. To those critics of the public service who regard governmental workers as shirkers and drones it will doubtless come as a surprise to learn that federal employees have not generally taken vacations up to the full extent authorized by law; in some departments they have not utilized more than one-half of the possible time-off.” It has been suggested that a scheme of vacation time-off may be worked out and based on a scale of work hours per week. This approximates two weeks per year

for most services.

Scientific,

professional,

and educational workers are sometimes given longer vacations, possibly to compensate them for similar privileges accorded to their brethren in academic pursuits. ** For schematic outline suggested by Personnel Classification Board, see P. C. B. Form 18, Preliminary Class Specifications for the Field Service (Government Printing Office, Washington, D. C., 1930), pp. 21–46. Program of the Federal Service (Government Printing Feldman, A Personnel Office, Washington, D. C., 1931), 71st Cong., 3d sess., House Doc. No. 773, pp. 210–212.

No.

*H.

PERSONNEL

296

[Ch.

18

uniformity in handling sick leave. In the smaller governmental units it is frequently taken care of without any specific legal provisions, other than in those cases where workmen's com pensation applies by law. In those larger units where charter or ordinance makes specific provision, a definite number of days off each year for sick leave is often allowed. The difficulty in administering such an arrange ment lies in the propensity of a certain percentage of employees to regard it as a matter of right whether needed or not. When sick leave privileges are abused, they become an expense and a problem for administrators. Such situations occur frequently where there is a lack of effective positive con trols over sick leave or there are inadequate records. Many employees look There

seems to be very little

an

in

35

is

by

it.

in

upon sick leave as so much additional vacation and devise subterfuges to get This results unwholesome effect upon personnel generally and resented conscientious employees. The sick leave expenses one city an

an

he

of

of

per cent within six months after the adoption were reduced upwards adequate checking procedure. Whenever employee reported that

to

on

an

to

was sick, this fact was made known the city manager who would see city properly physician investigation made. that the was notified and The physician would report his findings the city manager the same

if

to

of

an

at

to of

If

day and any malingering employee was removed from the payroll. the employee was home, the report not, the the physician was final; employee was given opportunity prove that his illness was bona fide. savings largely unnecessary sick leaves The were due the reduction

trarily.”

In be

benefit

to

need and not

a

time

as

protection

of

leave

in

as a

is

excessive cases

of

the discovery

of

to

malingering. fact, only impor during half-year. equal six such instances were found the first Of tance perhaps the fact that the employees are now looking upon sick

and not

used

arbi is

in

be

on

of

a

to

to

of

a

to

in

any year can that the unused sick leave year total 500 hours for employees who have been under civil service continuously not exceed ten years, and up 1,000 total hours for those who have been under civil service con to

calendar year, provided accumulated from year

to

be

on

in

it

be

a

on

a

If

is

it

to

of

controlling sick leave suggested for the public service year without illness, his sick make cumulative. worker closes period might leave for that carried over into the next. Thus provided that each employee who has been the service for six months pay should allowed sick leave not exceed 90 working hours the The means

for more than ten years. This would mean several months pay for older workers who incur the misfortune critical and prolonged of

tinuously illness.

I,

R.

*

P. Everett, “Effecting Savings pp. 46–48. Review (July, 1940), Vol.

By Sick Leave

-

Investigation,” Public Personnel

Ch.

CLASSIFICATION AND COMPENSATION

18]

297

e

Retirement Systems

of

its

Workers and students in the personnel field usually agree that an old age retirement system is desirable.” Unless automatic retirement on ade quate pensions is provided, the various services become overloaded with aged employees whose efficiency has ebbed considerably. One large city had 50 laborers over 70 years of age in street cleaning department. Of age this number one had attained the 96 and another 94; and several had

to

a

or of

as

as

It

is

by

of on

If

in

the office wheel chairs.” the retirement payments are too small, many will waive the pension and stay long possible. the job Frequently this permitted special action the legislative body high administrative agency. seems desirable, however, that payments to

brought

be

of

of

to

of

of

entered the city service for the first time after reaching the age 70. legislation 1920, Prior the enactment the federal retirement the departments were burdened with older workers, some whom had

of

of

younger talent the service assured through the introduction into the public employ. universal social problem tremendous magni jurisdictions public aged. tude involved the care the will take care their own aged, they will have accomplished least two worthwhile at

If

of is

in

of

A

efficiency

of

be

of

in

be

adequate and that provision should exist should the basic law for the compulsory retirement eligible those who are for retirement. Thus, superannuated employees could equitably relieved and the continued

The efficiency

operations will have been incal dependency will have been

of

objectives.

to

to

financing

a

retirement plan. One special attention given the final

no of

There are two general ways budget pension payments with

is

a

of

administrative culably benefited, and the social problem solved on sizable sector.

obli

to

is

to

in

of

is

is

as

gations incurred. This procedure sometimes known the cash disburse ment plan. The other method the actuarial plan, wherein the future re tirement obligations are known and provided for the case each new subject recruit the service. The cash disbursement plan the same

of

at

as

weaknesses assessment life insurance. The charges are relatively light the beginning when the workers are young and few are retiring. As the average age the group increases more will reach the retirement age, fre

or

a

to

to

by

to

A

at

to

of

quently causing the burden payments exceed the taxpayer's ability requir willingness pay. little foresight would avoid this calamity ing the start greater payments with which build up reserve meet

**

**The national social security system Feldman,

op. cit., pp. 195–196.

does

not apply

of

to

of

on

in

on

future contingencies. This reserve drawing compound interest through the years would lighten appreciably the immediate burden the taxpayer. Pension plans are not often conceived, however, the scientific spirit. They are usually the result agitation part employee groups the public employees.

PERSONNEL

298

-

[Ch.

18

who have to overcome the disinclination of the legislature to raise taxes and the unwillingness of the taxpayer to pay. The employee organizations are under pressure to make initial showing of low cost. Anxious to secure a to pay retirement annuities, they accept what they can get. In cities, this frequently takes the form of a charter amendment authorizing a specific tax levy for the payment of pensions to firemen and policemen. An effective campaign to influence the voter is organized. Emotional appeals promise

are based upon the chivalry and bravery of the firemen and policemen who constantly risk their lives to protect helpless women and children. In states not having home rule the general incorporation law will be amended by the legislature in such a manner as to require cities, or certain cities, to levy a tax to pay pensions. Let us suppose that a five-mill general property tax is levied under such a law. Immediately several old-timers retire and a charge on current funds. Over a period of four or five years, so many policemen and firemen are killed in action that the charge for current payments to pensioners and descendants exceeds the receipts from the spe cial tax. Nothing is being laid up for future contingencies. Such an become

Pension Fund of Kansas City, Missouri, in 1930.” During 1929, income of the fund totaled $9,524.70 less than expense. A reserve amounting to $142,500 in 1923 had been reduced at the end of 1929 to $82,000. At that time a number of persons were eligible impasse existed in the Firemen's

to retire but could not do so because

the funds on hand were not even

sufficient to continue payments to existing pensioners. A proper reserve for those already receiving pensions would have amounted to $1,238,111, as against the actual fund of $82,000. Such are the pitfalls of unsound retirement systems; they can be avoided by starting at the very beginning on an actuarial basis.

An actuary is a person who forecasts future obligations on a scientific basis and figures out mathematically how much money will be needed at specified times to meet them. If a particular group of public employees is to retire at the age of 65, the actuary's task is to figure how much must be on hand to continue payments so long as each is likely to live. In setting the average amount needed to carry an annuity from age 65 to death, he must find the average life span after 65 for people in that branch of the public

with absolute accuracy, statistics are available which give a reasonable index to mortality, rates. Having calcu lated how long the average employee is likely to live past 65, his next task is to ascertain how large a sum will be needed, exhausting principal and interest, to pay the annuity during the average life span. He must leave plenty of leeway for an adverse mortality experience, because a small group service.

While

he cannot foretell this

may accidentally contain a large number of persons who live longer than

* Kansas

City Public Service Institute,

Kansas

City's Public Affairs (August

14, 1930).

CLASSIFICATION AND COMPENSATION

Ch. 18]

299

the expected average. Neither can too much credence be given to the longevity statistics of the population in general, for it is well known that annuitants live longer, due to the contentment engendered by financial

Having determined the amount necessary to purchase an annuity at age 65, the actuary can then foretell with accuracy the amount of equal annual payments which must be set aside. These funds are invested so that with compound interest the annuity purchase price will be available when needed. A well-conceived system of this nature will liquidate itself. By this is meant that if it were discontinued, the reserve on hand would be suffi cient to pay existing pension rights without further contributions either from taxation or employees. Obviously this explanation has been oversimplified. A great many com plications arise in the ordinary pension plan, from the necessity of arrang ing for disability payments and annuities to widows and minor dependents security.

of

employees. In other cases withdrawal rights create problems actuary. for the For these and other reasons, it is recommended that an actuary reexamine and revalue the plan periodically, probably every three or five years. This will facilitate adjustments to take care of those intangible deceased

expectancy factors which actuarial

science cannot control.

may be classified upon the basis of whether the from current salary, whether the employee and the government both contribute part, whether the government contributes all. consensus current opinion probably would favor the joint con a

a

is

of

be

por

reduced general principle, true

might

it

better

to

is

rule,

it

a

As

specific cases.

to

It

of

a

to

in

rather difficult permit those leaving the service withdraw the sums they have contributed plus interest. Such privilege will promote freedom movement. will also tend counteract

prove

but

to

may

both share

frequently argued, however, that this matter employees contribute, the do not their salaries the amount the government's contribution.

as a

This

be to

will tend

the government

by if

of

It

tion the burden. indifference, because

is

of

tributory plan wherein the employee and

be

A

of

or

all

Retirement schemes employee contributes

of

is

of

a

In is

so

in

of

pension the overburdening the service with mediocre persons search why security. That many favor the savings bank idea retirement plan employee's kept accumulation. such each individual account a

in

be

such and such amount. plus interest may

on

by

further informed that his own contributions

He

is

at

to

if

is

annuity

an

will purchase

of

tributions,

an

is

he

a

he is

as

savings bank. His contributions plus interest are added, periodically furnished with and statement. While no set retirement guaranteed, allowance told that he continues contribute the existing rate, his own accumulations, together with the government's con separately

with

to

a

is

to

a

it

no

is

is

leaving the service, but that the funds set aside drawn the government very salutary educational are retained. This procedure said have nothing; pension longer something effect. The for service

PERSONNEL

300

[Ch.

18

be obtained only by purchase at a price.

The employees soon learn why it is desirable to base a retirement plan on actuarial science. They display great interest in the rate of accumulation in their own individual accounts. Such a plan would avoid an unhappy situation which arose in one police department. There the contributions of the men alone exceeded the amount currently paid out in benefits. The amount added to reserve equalled the tax contribution. When real estate interests attacked the pension scheme in a tax reduction campaign, the members of the force were led by their own spokesmen to disavow the warnings of two separate actuarial studies. Each

of

these said that to maintain the current

to be raised instead of lowered.

payment rate taxes would have

Many of the men could not understand how

this could be when their own contributions were more than sufficient to pay current claims. If the pension account of each policeman had been segre gated, and he had been acquainted with the purchase price of annuities at various ages, such a contingency might have been avoided.

When existing pension systems fail to heed the warnings of actuaries, as in the case just mentioned, there will be a day of reckoning in the future. Any one, or a combination, of three or four things can happen. The govern ment can realize the error of its ways and clear up the actuarial deficit in the reserve by payments in addition to the normal over a period of years. The actuarial deficit is the difference between the amount now in the reserve and the amount that the reserve should now have from an actuarial stand point.

The reader must bear in mind that there can be an actuarial deficit even when millions of dollars exist in the reserve. What happens if this deficit is not taken care of 2 A time comes when the members of the service have a higher average age than when the plan was inaugurated. A steadily larger number become eligible for retirement. Eventually it becomes appar ent that existing reserves will soon be exhausted. Some are ready to retire

but cannot do so because the pension reserve is dry. In this event the gov ernment can maintain the existing retirement rates by appropriating from

taxpayers are the adjustment

as

of

be

public employees should be given free pensions when sured no such guaranty. The other alternative will

all

current revenues. In an old service this will create a burden full of political dynamite. A great many influential taxpayers will not understand, why

that existing an

to

be

so

reserves and appropriations can main revamped, tain them. The chances are that the whole system will then actuary's advice. with serious respect given retirement benefits

is

to

to

to

in

up

of

enjoy the benefits the plan, large payments the accrued liability existing their cases are inevitable. There

these older workers are make

If

of

by

it is

up

to

of

a

in

of

starting the most difficult problems met retirement plan caring for the older employees who are almost ready the manner retire. them, equitable pay No reserve has been built for and not them pensions out reserves now being contributed the younger men.

One

Ch.

CLASSIFICATION AND COMPENSATION

18]

301

are several ways of handling this situation. The government can start liquidating the deficit by a series of payments covering several years. Each year the entire reserve for the older employees retiring at that time can be

The governing, body may elect to budget the benefits as a part of current expense; or, as will rarely be the case, the deficit in the accounts of the old employees may be liquidated by paying one lump sum into the reserve. The older employees will also be required to contribute a higher percentage of their salaries than those who may look forward to longer service. Normally, the government's accrued liability will be taken care of by a series of approximately equal payments extending over a term of years. set aside.

Current Events Affecting Retirement.—The outstanding current de velopment with respect to the administration of retirement systems is the abnormally low interest rate. The average yield of the type of securities in which funds are invested varies from 134 to 2% per cent, as against 4% per cent in the 1920s. In layman's terms, it now takes $16,000 to buy a male annuity (more for women) of $100 per month beginning at age 65, whereas formerly it cost $10,000 to $12,000. This is not entirely the result of low interest, because the life span of annuitants has risen, which means that it would take more money to provide an annuity even if interest rates stayed constant. The normal contributions to retirement have tended to approximate 10 per cent of payroll, 5 by the employer and 5 by the em ployee. With the cost of annuities soaring, 10 per cent of payroll will not add up to a very large annuity in most instances, with the result that there is considerable employee dissatisfaction with monthly payments after retire ment as compared with pre-retirement

There are two ways of improving this situation and both of them involve putting more money jnto retirement. One requires raising the contribution to 15 per cent of payroll as against the current 10; the other involves abandonment of the actuarial reserve system and budgeting retirement payments out of current income just like salaries. Another current problem is the proposal to bring public employees under salaries.

the national social security system. At present each city, state or special district tends to have its own separate retirement fund. An employee who separates from the service can usually take his own contribution with inter est but must sacrifice the portion represented by employer payments.” Such a situation constitutes a barrier to desirable transfer, promotion and movement between jurisdictions because people are naturally reluctant to sacrifice retirement accumulations even though the salary at the new post

in

the national social security setup

no

Membership

all

may be somewhat higher.

A

**

would not hinder such movement because would belong, matter where located. However, public employees who have their own retirement systems federal

employee may not withdraw

his contributions

after five years.

PERSONNEL

302

[Ch.

18

do not want to come under social security, partly because the payments are often considerably less than they would receive from their own. They have in some cases lobbied actively against inclusion. SELECTED READINGs

o

BOOKS AND MONOGRAPHS

Army Service Forces.

Manual M202, Wage Administration for the Ungraded Civilian Jobs. (Government Printing Office, Washington, D. C., 1944), 35 pp. Baruch, Ismar (Ed.). Position-Classification in the Public Service. (Civil Service Assembly, Chicago, 1941), 404 pp. Cornell, William B. Organization and Management in Industry and Business. (The Ronald Press Co., New York, 1936), pp. 522–555. Glaser, Comstock. Administrative Procedure. (American Council on Public Affairs, Washington, D. C., 1941), pp. 99–111. Hayes, Laurence J. W. The Negro Federal Government Worker, A Study of His Classification Status. (Howard University, Graduate School, Washington, D. C., 1941),.156 pp. IHouse of Representatives, 77th Cong., 1st sess. Committee on the Civil Service. Hearings on H. R. 625, H. R. 626, H. R. 1073, H. R. 3306, Bills Proposing a Salary Advancement Plan for Federal Employees. (Government Printing Office, Wash ington, D. C., 1941), 126 pp. Leonard, J. M., and Mohaupt, Rosina. Cost-of-Living Salary Adjustment Plans for Municipal Employees. (Detroit Bureau of Governmental Research, 1944), Report

No.

168, 42 pp.

Magnusson, Leifur. Workmen's Compensation for Public Employees. (Public Ad ministration Service, Chicago, 1944), No. 88, 43 pp. PAS Staff. Merit Syetem Installation. (Public Administration Service, Chicago, 1941), No. 77, pp. 15–23. Scott, Edwin M. “Organization of a Personnel Reclassification Study,” Case Reports in Public Administration. (Public Administration Service, Chicago, 1942), No. 71, 6 pp.

Walters,

J.

-

F.

Personnel Relations.

(The Ronald Press Co., New York,

1945),

pp.

183–199.

PERIODICALS Baruch, Ismar. “Basic Aspects of Position-Classification.” (October, 1940), Vol. 1, pp. 1–17. Baruch, Ismar. “Surveying Prevailing Salary Rates.”

(Apr.

1942),

Vol.

3, pp. 86–99.

-

Public Personnel Review Public

Personnel

Review -

Robert I. “Developing Adequate Class Specifications.” Public Personnel Review (January, 1944), Vol. 5, pp. 27–31. Blix, Ovid B., and Gill, Norman N. “Milwaukee Local Governments Join in Salary Adjustment Plan.” National Municipal Review S(October, 1943), Vol. 32, pp

Birens,

482–485.

Fisher, John F.

-

-

“Job Evaluation Through Point Rating.” Public Personnel Review Vol. 5, pp. 19–26. Hendrickson, Roy F. “If I Could Remake the Classification System.” Personnel Administration (Washington, D. C., June, 1942), Vol. 4, No. 10, pp. 10–12. Staats, Elmer B., and Simpson, Robert C. “Attendance and Leave in the Public Service.” Public Personnel Review (July 1944), Vol. 5, pp. 146-155. (January,

1944),

CHAPTER

19

PLACEMENT AND EMPLOYEE EVALUATION Promotions Promotion means something more than an increase in compensation.

To

be sure, a salary increase usually accompanies promotion,

but one can pay without being promoted. This is the case where a worker is advanced from a lower to higher pay level within the same class. His duties have not been changed but his salary has been raised. If, on the receive higher

other hand, he had been moved to another class, presumably more difficult to fill, and with increased responsibilities, he would have been promoted. The change in duties is the essential characteristic bf the promotion process.

It

is assumed, of course, that progress to a more difficult class will involve an increase in compensation, but this feature is more incidental than dis tinctive. The essential factor being the change of duties, it quite naturally follows that a good promotion procedure must be based on an adequate classification plan. It will be practically impossible to build the public service on a career basis without an arrangement of the duties classifications in such a manner that the possibility for progress from a subordinate to a higher position is indicated. Promotion, then, is progress from a lower class to a higher class involving a corresponding change of duties. It is highly desirable that the promotion policy be well understood by those who man the service. Fairness in this respect will generate and maintain morale; superior personnel will be encouraged to remain in the service rather than to hasten to greener private pastures. This can be facilitated by having the paths of progress well marked from class to class, and by publicizing the standards and attainments expected for admission to successive posts. There are two basic standards of promotion. All others are variants of one or the other, or of both. The seniority standard would base promotion almost entirely on length of service. The other, which for lack of a better name might be termed the ability standard, seeks to find the most capable individual irrespective of length of service. Most students and administra tors would not base promotion entirely on seniority, although they would give it some consideration. The amount of weight given seniority would vary with the type of work. For some jobs the experience acquired by suc cessive performance adds to expertness. In others the skill produced by length of service has no relation to higher duties. Seniority promotion is more justifiable in the routine tasks of the lower classes. One who is suc 303

PERSONNEL

304

[Ch.

19

cessful at routine tasks may utterly lack the qualities needed for advanced work. A system of promotion by seniority will frequently result in raising to supervisory

and directing positions persons who have “crank” complexes. Frequently advancing years, unmellowed by the give and take of competi tive life, acquire an intolerance in nonessentials which dampens the initiative of subordinates. Seniority alone will tend to fill the higher places with in competents. It will discourage the ambitious and remove those incentives which develop personality, courage, self-reliance, and progressive outlook.

It will

foster self-satisfaction, a dead level of mediocre performance, and that general let-down which goes with security." Employee organizations are frequently found working for the recognition of seniority. This probably is because of the feeling that the great preponderance of routine workers would benefit. For choosing the higher officers, however, selection based on length of service is ordinarily unjustifiable. It should be given pre ponderant weight only in those branches providing rigorous selection at an

of incompetents and forced

to

abilities are desired and how best

secure them.

of

the basis to

is

it is

If

be

retirement before senility sets finally concluded that promotion should question the far from being solved. The next step

is on

in.

early age, coupled with effective elimination

ability,

determine what

This leads into an un to

to

be

or

to

be

If

be

on

Is

opinion,

of

speculation, and controversy. promotion competitive tests? so, who shall founded allowed take these promotions entirely department tests? Cannot selections for left heads? Why not judge progress through efficiency service ratings? charted realm

to

is

no

all

of

categorical answers, for These queries and many others do not admit perhaps single promotion procedure suitable for there occasions Probably promotional sufficiently important and environments. tests are merit prior attention. on

by

State and local civil service jurisdictions usually provide for promotion competitive examination. Promotion within the federal system, the other hand, has been based almost entirely upon administrative discretion.

of

by

a

in

to

The unclassified field service has left promotion entirely the departmental Washington change officials, whereas grade has necessitated requalifi by

is

of

by

to

as

of

cation the Civil Service Commission. There considerable difference opinion comparative competitive promotion the merits writ ten examinations versus promotion administrative discretion. Employee

of

attention

of

be

promoted. it

is

of

provides favor the competitive written test that great many people who ordinarily would not attract the their superiors. The substantial but inconspicuous producer a

One argument incentive for

to of

a

selecting those in

in

discretion an

of

public personnel technicians, tend considerable portion favor the competitive test method, whereas federal administrators tend any system which would deprive them rather apprehensive be

to to

groups, and

Ch.

PLACEMENT AND EMPLOYEE EVALUATION

19]

305

would have a chance alongside the personable chap who normally attracts the attention of superiors. Competitive examinations also serve to combat the excessive use of the rule of seniority. It is often very difficult

for administrative discretion to resist the claims of seniority, whereas the result of an independent examination may throw a true light upon com parative competence free from personal importunities. A system of com petitive examinations also facilitates the establishment of a career system. When the basis of competition is as broad as is possible, a maximum num ber of those in the service are given the opportunity to compete for higher

positions. If there is one thing which employees fear and resent more than anything else, it is favoritism on the part of superior officers. Promotional examinations conducted by a central personnel agency are going far in dispelling

apprehensions

of this nature.

The arguments in favor of administrative discretion and against Com petitive written tests are quite impressive. It is said that many persons who are very apt at passing written tests utterly lack the personal qualities

for supervisory

A

order of intellectual com petence may be associated with a negative or at least neutral personality. Furthermore, an advantage in written tests is often possessed by those

necessary

positions.

high

who are recently out of college or who are dealing, directly with formal subject matter. Many junior executives and intermediate supervisors are so busy with putting out the work that they get out of touch with the minu tiae of functional subject matter. They are, therefore, at somewhat of a disadvantage when they compete against their juniors, or even their book ishly inclined contemporaries, in a promotional examination. An appoint ing officer very frequently becomes piqued, somewhat justifiably, when forced to appoint a bookish person in whom he has less confidence than in a performer who has been groomed for the job. Two recent reports by commissions of inquiry placed much emphasis upon

the necessity

for establishing career services in government."

A

career service is one in which persons may enter at an early age and progress by successive stages through a life's work. Good personnel administration would see that individuals attained their own level of competence in accordance with their positions in the biological curve. Of a group of junior bookkeepers entering the service at 21, some would get no farther than junior accountants, a few would become senior accountants, a still smaller number would become supervising accountants, and an exceptional

few would ants.

_*

A

become division heads, assistant comptrollers,

and chief account good personnel system would certainly provide that each employee

1 President's Committee on Administrative Management, Report with Special Studies Printing Office, Washington, (Government D. C., 1937), pp. 130–133; Commission of Inquiry on Public Service Personnel, Better Government Personnel (McGraw-Hill Book Co., Inc., New York, 1935), pp. 27–30.

PERSONNEL

306

[Ch.

19

would have the utmost opportunity to demonstrate his competence to handle the next higher job. perplexing

policy questions arise relative to the adoption of a career service. In the first place, it is to be expected almost invariably that employee groups will be largely motivated by a guild spirit, insisting Certain

that progress from position to position be largely based upon seniority and the marking of time. Even where the employee groups approve of com petitive promotional

they

will try to limit the field to those

a particular

division-or to those who have served a certain amount of time in the next lower class. Thus, one must have been a policeman for seven years before taking a test for sergeant; and one must not jump is,

within

examinations,

be a

to

if

in

is

of

a

a

he

be

patrolman must sergeant before can lieuten type vigorous ant. This the restriction which incenses administrators they are who insist that they must have discretion such matters perform their duties successfully. classes, that

at a

or

a

in

is

of

developing administrators and higher super There also the problem visors those services where entrance comes almost entirely through single category recruited mediocre, level. Thus, the rather low,

using either type the country. There are objections recruiting exclusively. There are evidences that the Post Office Department recruiting young people from the could benefit considerably number

of

a

by

to

of

graduates

of

of

of

Post Office Department recruits almost entirely from the categories letter carrier and clerk. The State Department, on the other hand, recruits for the Foreign Service almost entirely from the intellectual cream the college

personnel

no

in

Junior Administrative Technician register and placing them

in of

in

it

be

a

of

is

question but what twenty and management planning work. There years they would form the core greatly rejuvenated management the postal system. On the other hand, would undoubtedly unwise

of a

establish

it

by

of

by

in

of

to

career administrative system which would shut off unschooled, native capacity scattered throughout the that great reservoir employees. rank and file There are those who see danger that type recruiting conducted the Foreign Service. They apprehend that

America

of

in

of

of

a

of in

may become dominated keeping class outlook and social snobbery not with the sentiments the nation. Years service abroad, out contact folkways life, might with the and mores American result official atti

be

or

*

not local, especially

regional and achieve promotion should national the higher technical and administrative positions.

in

The opportunity

to

-

so

a

of

in

by

to

tudes and actions contrary what most Americans would like. There are any service appointing those who would leaven the professional core goodly sprinkling outsiders, not encumbered with the ideological impedimenta which frequently remove the anointed few from the great unwashed laity.

Ch.

PLACEMENT AND EMPLOYEE EVALUATION

19]

307

If

an individual has made an outstanding record as a health officer in a city of 50,000 at $4,000 per year, it should be possible for him to look forward to service in a municipality of 100,000 at $6,000 per annum. Residence requirements for the higher posts are largely traceable to narrow provin cialism. It is frequently argued that an officer must have had long residence in the community in order to become familiar with “local conditions.” As a matter of fact, unfamiliarity with “local conditions” may constitute a positive advantage to an administrator. It may free him from entangling alliances which many a local man would like to avoid but cannot because of long association. Differences in local conditions are due, furthermore, to political situations and not to fundamental variations in administrative prob lems and procedure. The personal qualities and training that would produce

administrative leadership in Seattle would do the same in Baltimore, politics permitting. The manner of administering a fire department should not essentially differ between St. Louis and Kansas City. If professional careers in local government are to be fostered, promotion from city to city must be facilitated. This will require abolition of local residence rules coupled with abandonment of the provincial spirit. A similar change must be produced in the federal field. There the local offices of the field units are regarded almost as airtight cells, especially in such extensive branches as the Postal Service, the Customs Service, and the Internal Revenue

A

would throw open the path of advancement by permitting progression from a smaller local unit to a larger —from postmaster in Buffalo to postmaster in New York. Service.

proper

promotion

procedure

Placement By transfer is meant the crossing over of personnel from one organi zation unit to a position in the same class in another unit. Such transfer can be either planned or unplanned, and in practice the latter has usually prevailed in public personnel administration. Transfer from department department to has either been nonexistent or based upon isolated arrange ments made by employees desiring to change geographic locations. Person nel theory has long given lip service to the desirability of better placement procedure. Public personnel administration has until recently given prac tically no attention to planned placement subsequent to recruiting, other than through the formalized examination process. By placement is meant the case study of individuals to see that they are located where they can give the best account of themselves from the standpoint of environment, personality of the supervisors, aptitude for the particular operations per formed, and the social situation as respects getting along with immediate coworkers. It will be remembered that the celebrated Hawthorne studies laid particular

emphasis upon the importance of the social situation to the

PERSONNEL

308

[Ch.

19

work response.” Thus advanced personnel theory, seldom achieved in prac tice, would make the counseling and guidance of workers to see that they are properly placed an everyday aspect of personnel work. Perhaps practice will come more nearly into conformity with this ideal as the science and art of counseling and guidance become more highly developed.

A

very common abuse of the transfer privilege is the propensity of administrators and supervisors to seek the transfer of problem employees in order to rid themselves of the problem. Thus, if a bookkeeper is ad dicted to gossip or loquacity, spending a great deal of his time in keeping

do

to

or

cussions from the possibly influential

to

a

a

that this assumption too often furnishes the excuse for pass his problem the next. This practice has become jurisdictions some that supervisors are always apprehen on to

The difficulty

in

or

is

if

he

is

or

physical

those concerned.

always the possibility that the problem employee may cease placed under another supervisor, put new given and social environment, different work assignment.

problem

in to is

a

be

There

connections

of

to

it,

his listeners from their work and passing on exciting and idle rumors, such an individual tends to become a problem case. Other problem cases include periodic drunks, hypochondriacs who believe themselves always to be ill, those who are habitually tardy, and those who possess a persecution complex. Supervisors generally hesitate to deal directly with these situa tions for several reasons: first, because they have never been trained to it; second, they are naturally believe that they should do how disinclined incur the unpleasantness involved; third, they fear reper

on

agency itself could minimize the mere passing this nature are made only after

to

manner

as

such

the personnel

of

of

placement unit a

proper

supervise transfers problems and

in

A

ficiency.

in

or

an

is

it

to

be

to

of

so

one supervisor widespread employees that are sive transferred them because almost foregone conclusion that transferees will surely offer some difficulty de

to

transfers study by, and upon the advice of, trained counselors and placement experts.

positive

recruit

Interdepartmental

addition

to

of

in

This was

in

Placement Service special qualifications and talents for

punch card file which maintained individuals already employed the federal service. a

a

instrumentality

of

cedure which actually operated ment. There was inaugurated

an

it

an

in

of

the war emergency the early 1940's, the federal embargo upon federal employees' jumping their jobs improve their salaries. However, placement pro did adopt an as

merely

to

At the beginning government placed

see that

of to

N.

T.

J.

J.

F.

*

Roethlisberger and William Dickson, Management and University. Press, Cambridge, 1939), pp. 511–524; Whitehead, Society (Harvard University Press, Cambridge, 1937), 266 pp.

the

Worker (Harvard Free

Leadership

in a

in

of

of

the National Roster Scientific and Specialized Personnel maintained for government service. Previous skilled individuals both and outside emergency departments, including the Department this several federal

Ch.

PLACEMENT AND EMPLOYEE EVALUATION

19]

309

Agriculture, had experimented with a punch card placement file which listed the special skills or experiences of employees. Thus, if the Depart ment needed for a special purpose a civil engineer who also had training in economics, the cards would be run through the sorting machine in such a

-

as to segregate those cards combining these qualifications. In order to make sure that the right people are working in the right places, the United States Civil Service Commission has placed in its Examining Divi

manner

sion a number of “Review and Negotiations Officers.” Probably the fore most among their several duties is to expedite the placement of high-class executive material with an eye toward maintaining good relations between the Commission's staff and the line departments. Possessing very flexible authority, these officers are able to secure quick and effective placement, thus overcoming a great deal of the resistance to, and criticism of, the red tape and routine often directed toward civil service administration.

Layoffs The depression years immediately following 1929 saw what was for all purposes a new phenomenon in the American public service. During the two previous decades there had been a steady, and sometimes

practical

rapid, increase in personnel for most establishments.” Now came a time when governmental revenues began to shrink. The year 1930 and early months of 1931 were bridged without acute discomfort, but 1932 and 1933 brought such a shrinkage of income that drastic economies had to be under taken. Private industries could contract their forces with comparative ease,

all

but the discharge or layoff of public employees is a disagreeable task full imaginable of political potentialities. Pressure is brought to bear from a

of by

of

a

in

in

as

on

to

in

or

sources block layoffs this bureau that service. Eventually, after depression has worn for some months, drastic retrenchment becomes layoffs staring yet undesignated individuals inevitable. With some the face, the employees find themselves state nervous apprehension.

of

be

used

or

on

be

to

or in

to

criteria,

be

separated from the service may chosen means either singly combination. Some the more given weight are seniority, efficiency, war-veteran status, common pension eligibility, marital family status, place - original eligible list,

Those who are various

number

D.

L.

*

employees, and personnel workers. The difficulties administering service ratings are discussed elsewhere this

White, Trends

pp. 242–245.

in

encountered 1933),

the

confi

managers,

in

dence

in

of

a

of

it in

govern separations, few use practice. The reason for this lies lack device for scoring efficiency which possesses the widespread

to

While

one consideration in

efficiency

a

seniority. as

jurisdictions render lip service

to

of

is

of

appointing officer. and discretion important unquestionably The most factor

Public Administration (McGraw-Hill

Book Co., Inc., New York,

-

PERSONNEL

310

[Ch.

19

chapter. Seniority has the merit of being concrete and objective. Employee organizations seem to regard it with much favor. The reverse side of the picture, however, depicts the younger workers, often with higher efficiency ratings, being forced to lay off in favor of older workers.

Service Ratings Service ratings, sometimes referred to as efficiency ratings, are attempts to evaluate capability and performance on the job by a worker's superiors and supervisors. In the past they have constituted estimates based upon the subjective judgment of the person making the rating. For this reason they should not be confused with personnel records. The latter are only bookkeeping entries, usually filed in card index form, setting forth the employment history of each worker. These latter contain such data as age, employment record, education, physical examination, sick leave, vacation and promotions. While this information may be of value to the rating officer for purposes of reference, it constitutes mere routine records of facts not involving judgment. Every administrative agency will have to keep personnel records of some kind, but very few have absences,

salary, transfers,

had more than perfunctory experience with service ratings. The latter involve the exercise of judgment; they constitute a recorded statement of an administrator's estimate of a subordinate's worth.

There is probably no field offering

a greater clash between theory and

by

practice than grading the efficiency of workers. Theory says it would be splendid to rate employees according to performance and worth. Manage ment so avows, and workers agree in principle. No sooner is an attempt

to

as

is

its

impaired made than it is blocked, or effectiveness almost insu Theory says that employees should see themselves perable obstacles. management sees them. Permitting them view their own service ratings will furnish them with the basis for self-correction. When actual flesh

of

work-a After

and radio should

added

in

automobile

be

anxious see itself others see any population content with security and

a

it.

as

would seem that probably

to

It

is

be

an

is

a

Perhaps

meal ticket?

so

self-improvement.

day humanity may not major section all, not

of

inspiration

to

an of

a

and-blood workers see their own ratings making individual defects matter record, however, the reaction too often one resentment rather than

the

by

comparative efficiency.

In

be

the basis

of

on

of

United States. At any rate, experience has demonstrated that difficulties major proportion must surmounted those who would rate workers the public service the employees

form

can

filled out and filed perfunctorily.

its

Sometimes

all

innocuous

be

of

be

If

to

in

as

to a

If

they are disgruntled considerable extent their own employers. jurisdictions, ratings they many seriously can, over create such protest embarrass the personnel agency. the law still requires such ratings, spirit the the law can nullified without violating letter. An are

Ch.

3II

PLACEMENT AND EMPLOYEE EVALUATION

191

workers are given identically the

same rating, so

lightly do certain execu

tives regard the task. As a matter of fact, superior officers, even though they may believe in the rating principle, are frequently glad to shirk the Ratings which speak the truth may provoke the wrath and responsibility. recrimination of substandard but influential workers, and in other instances they may raise the cry of favoritism. As in the case of removal, discussed in the following chapter, an honest attempt at service ratings may “put the rater on the spot.” All of which makes this a legitimate question: “Do employees want to be rated effectively?” The difficulties involved in rating are not entirely due to the opposition of the workers. Indeed, the major share of the responsibility must fall upon the weakness of supervision.” Valid ratings will reveal the shortcom ings of supervisors because they will indicate how the supervisors have failed to train, counsel, and guide those under them. On the other hand,

invalid ratings reveal, in a uniformly high rating, scores which probably indicate that the supervisors have evaded their rating responsibilities and have avoided unpleasantness in personal relationships by giving high rat ings to those who do not deserve them. The tendency in this direction will be evaded in those situations where salary advances, promotional oppor

tunity, and order of layoff are determined, at least in part, by the scores achieved on successive ratings. There have been many efforts to solve the rating dilemma by devising new forms. While experimentation in this respect is to be encouraged, the

This

guide

a

of

on

at

newly developed Efficiency

personnel

Rating

in

Manual.

by

with the publication

1942

as a

early

in

by

A

of

its

fact should be squarely recognized that the fundamental difficulty with the rating problem lies elsewhere, namely, in administration. step toward the effective solution this situation, least the federal level, was taken the United States Civil Service Commission

of

In

is

determining

in

to

in

officers the executive the annual ratings the employees. addition outlining the means and procedures for carrying out and reporting efficiency ratings, the Manual suggests aids conducting the efficiency agencies

used

check list for insuring completeness, plan for conducting schedule for completing the annual rating program, meeting with rating officials, and plan for the discussion ratings

of

a

a

Among these are

a

a a

rating program.

to

to

to

of

of

periodic evalua with employees. Finally, the manual stresses the value employee performance officers, supervisors, tion executive and be

a

in

in

on be a

the employees themselves." To effective the public service, efficiency ratings must admin istered democratic basis situation wherein employee participation

32

ft.

II,

D.

.*

Albert H. Aronson, p.

*

“Service Rating Plans,” Public Personnel Review (October, 1941), 298 Efficiency Rating United States Civil Service Commission, Manual (Government Printing Office, Washington, C., 1942), pp.

Vol.

PERSONNEL

312

[Ch.

19

is solicited. For instance, it is well known that organized labor has tradi tionally opposed and resisted rating plans. The reasons given have been the fear of favoritism; the fear of preventing organizing or 'union activi ties; the feeling that a workman is either satisfactory or unsatisfactory; and that if he is the latter, he should be discharged. One of the most significant experiments in this connection has been the installation of a rating system among the skilled craft workers of the fertilizer works of the Tennessee

Valley Authority. This was accomplished by friendly cooperation between management and union representatives, and the forms used were suggested by the union representatives themselves.”

The point is that a service rating plan cannot be imposed from the top down or by the central personnel agency upon the line departments. It should be attempted only after exhaustive and painstaking conferences between the central personnel agency, the line executives and supervisors, and the representatives of employee groups. This should be supplemented by a supervisory training program which aims to bring the supervisors at all levels to an understanding of the desirability for rating and to impress upon them the importance of their part therein. The supervisory and worker staff should be approached through conferences and other means of training, and through imparting information with the idea of creating a state of mind which would regard rating as the hard but correct way of approaching personnel problems. The employees’ fear of arbitrary treat ment and of becoming the victims of favoritism can be at least partially dissipated by the inauguration of boards of appeal before which an em ployee can secure a hearing if aggrieved over the rating he has secured.

Most rating systems fall into three different categories which have been designated as (1) trait-rating systems, (2) substantiating-evidence reports, and (3) analytical check lists. The first category, namely, trait rating, is

It

consists of a list of relatively few job traits which the rater checks as to some degree of quality varying from unsatis factory to excellent. Frequently the items are weighted and added up into a numerical score, as is the case with the Standard Form 51 of the United by far the most common.

States Civil Service Commission, which is reproduced as Figure 22. In other instances it is scored by means of a graphic rating scale wherein the rater checks along a horizontal scale the degree to which certain traits exist.

A

check on the center of the scale is presumed to indicate average, while a check to the left of the middle less than average, and to the right above average, as indicated in Figure 21.

The most widely known service rating system of the substantiating-evi dence type is that used in the City of New York, sometimes known as the Coopera ° W. C. Lindsey and Howard M. Miller, The Program of Union-Management tion in the Tennessee Valley Authority Fertilizer Works, Wilson Dam, Alabama (Tennessee Valley Authority, 1938, mimeo.), p. 13.

Ch.

PLACEMENT AND EMPLOYEE EVALUATION

19]

GRAPHIC RATING SCALE

characteristics

FOR AT TITULES AND OTHER •*

NAMr. Last

MINIMUM

-

-

DATE

-

First

RATING

Year

Semester

Middle AVERACE

MAXIMUM. RATING

INDUSTRY Works sporadically Habitually neglects work Uscs time injudiciously t

o

Carefully budgets working time Works regularly cud on time Makes judicious use of time

t.

*

}

º

|

º

|

t

| 2

|

t

5

Accomplishes exact work Thinks discriminately Expresses ideas precisely

-

l

-

4.

ACCURACY Does inexact work Thinks indiscriminatcly Expresses idear incorrectly o

|

º

s

2

-

r

3

-

4.

5

INITIATIVE Lacks intellectual ruriosity Seldom starts anything new Easily succuubs to difficultics t

t 0.

Evidences intellectual curiosity Initiates undertakings Finds ways to overcome difficulties -

º

h

2

3

t

4.

5

RELIABILITY Neglects promises arid obligations Inclined not to admit error when wrong Is inclined to be unreliable l º

I

0.

Fulfills promises and obligations Admits error when shown to be wrong word and deed Is dependable I

t

2

3

in t

t

4

5

COOPERATION Participates in worthy group activities Subordinates self to group Seems in teamwork

Avoids worthy group activities Does not subordinate self to group Seems unhappy in teamwork r

|

|

i

l

th

r

-

! 3.

2

hºr,

-

5

4.

LEADERSHIP Prefers plans made by others Fails to secure support for his cause Lessens cnthusiasm of the group -

-

0

Plans for and directs others Usually wins support for his cause of the group Adds to the

****

-

1

2

PHYSICAL VITALITY

Avoids vigorous activities Exhibits little physical endurance Possesses physical weakness of personality t

|

.

I

0

t

4

3

5

Physically

|

|

2

3

active in vigorous activities Exhibits physical endurance Pessesses physical forcefulness of personality r

|

-

4

|

5

INSTRUCTIONS: Keeping the definition of the trait in mind, rate the student between “Minimum” and “Maximum” by placing a check (r) appropriately on the line. Try to locate the student according to his stunding relative to the average for his age.

PERSON

The check may be placed anywhere on the line.

RATING........................…. Figure

21.

SCHOOL---------—

Graphic Rating Scale

PERSONNEL

3I4

[Ch.

19

ºu. Perm

*-iApproval expires Mar.39.lºts.

REPORT OF EFFICIENCY RATING

Annentsraarivs-UNorricual ficial,

"fifth....

-based on performanceduring period from...----------------------(Nameofemployee)

...rº.

(

)

to

service, (Titleof position.' andgrade) Torºnization-Indiestbureau, division. …tion.unit.nºidstation)

on lines erlow -a-- EMPLoree

V

if adequate

if

weak

+ if outstanding

------

checº one 1. Study the instructions in the Rating Official's Guide, C. S. C. Form No. 3823A. especiallyimportant in the position. Administrative, 3. Inderline the elements which are 3. Rate only onelementspertinent to the position. supervi visory,or a. Do not rate on elementsin italics except for employeesin adminplanning supervisory,or planning administrative, supervisory, planning f bte and functions on elementsin italics. All others

Rº".

5...".

—

(1) Maintenanceof equipment,tools, instruments. (2) Mechanicalskill. (3) Skill in the application of techniques and procedures. (4) Presentability of work (appropriateness of arrangement and appearanceof work). (5) Attention to broad phasesof assignments. (6) Attention to pertinent detail. (7) Accuracy off operations. Accuracy (8) of final results. (9) Accuracy of judgments or decisions. Effectivenessin presenting ideas or facts. (11) Industry. ---(12) Rate of progress on or completion of assign ments. le work produced. (Is (I mark (13) --(Ys, or me," ) --(14) Ability to organize his work. Effectiveness in meeting and dealing with others. Cooperativeness. --(16)

-(10)

-

*...*:

: ...;

--------

(21) Effectivenessin planning broad programs. (ºf) Effectiveness in adapting the work program to oaderor related programs. (£3) Effectivenessin devising procedures. (£4) Effectivenessin laying out work and establish ing standards of performance for subordi rtates. (25) Effectivenessin directing, reviewing, and cheek ing thework of subordinates. (£6) Effectiveness in instructing, training, and developing subordinatesin the work (??) Effectivenessin promotinghigh working morale. (?8) Effectiveness in determining space, personnel, and equipmentneeds. ...... (29) Effectiveness in setting and obtaining adher enceto time limits and deadlines. ...... (30) Ability to makedecisions. ...... (31) Effectiveness in delegating clearly defined authority to act.

---

---

-(15)

--(17)

Initiative.

-

----(18) Resourcefulness.

-

starr arrºr orº-- ---Mirrºrs constor--> A — (A) (B)

--(19)

---

Dependability. (20) Physical fitnessfor the work.

------ (C) Adjective reting

standard Deviations mustbeexplained onreverse sideofthisferm

Plus marks on all underlined elements,and no minus marks Plus marks on at least half of the underlined elements,and no minus marks-------------------------... Check marks or better on a majority of underlined elements,and any by plus marks................................... minusmarks overcompensated Check marks or better on a majority of underlined elements,and minus by plus marks------------marks not overcompensated Minus marks on at least half of the underlinedelemen i Rated oy

reof ratingofficial)

Reviewed by Rating app

reof reviewing official) by

y rating

w.a.aewºn-starr was anaserrºrs re-2-117-2

Figure

22.

(Date)

adjective rating Excellent Very good

Ratin official-

.....---

-

Rºſs

Good

Fair

Unsatisfactory

ttitle)

(Date)

(Title)

(Date)

Report to employ

(adjective rating)

Service Rating Form Prescribed for General Federal Use by the U. S. Civil Service Commission

-

PLACEMENT AND EMPLOYEE EVALUATION

19]

is frankly recognized that practically em ployees are satisfactory performers. Experience the City New York shows that 90 per cent are rated. While the scoring the report place personnel agency, takes the central set that special

It

so

is

it

of up

so

to

in 80

in

system."

of of

Ordway-Laffan

315

all

Ch.

or

of

ence over many years has indicated that persons

of

or

of

is

of

a

of

to

be

perform

categories, and these are defined checked, then the report must one more these specific and concrete description what was actually upon merit the citation which the score either above below small number

or

grouped into

upon the form. accompanied

by If a

ance can

extraordinary

Scoring and Rating Device for Use with the Probst Service Report

23.

be

Figure

of

be

is

or

of

to

be

to

devoted only the small percentage those who will highly unsatisfactory satisfactory groups. fall into the and The essence outstanding the scheme that specific occasions occurrences satis Experi factory performance must substantiating cited with evidence. attention has

done par was based.

is

of

B.

J.

in

of

system The best known the analytic check list type the Probst, Probst, then Chief Examiner for the 1927, Service Report. Early

r

pp.

–1 -

to

to

;

in

º,ºns

of

of

*

C.

Laffan, “Approaches Samuel H. Ordway, Jr. and John the Measurement and Reward Effective Work Individual Government Employees,” Supplement the XXIV, Municipal Powell, (October, 1935), pp. National Review Vol. 555-601 Norman City,” (September, 1941), New York Personnel Administration Vol. -

PERSONNEL

316

,

.

City of St. Paul, inaugurated

[Ch.

.

19

unguided judgment.

pursuance

of

of

that accompany the exercise

In

to

all

a series of experiments which have con present. Cataloging tinued on into the the weaknesses of former rating systems, attention was directed toward their elimination. The new venture was characterized by studied attempts eliminate the intangible variables this

on

of

mark next each the items this page which you know from your own you are reasonably certain. this employee. Do not guess; check only if

or

X

Place knowledge will describe

to

DIRECTIONS:

fit

an

(se-seaswes-)

2

-

3.

Check Columns

Ch-ck Column

Active and strong Active but not strong Usually careless personal appearance Usually neat personal appearance Has pleasing voice and manner Very tactful dealing with the public Poor echnical training for the work Good technical training for the work Poor head work sudden emergencies Good head work sudden emergencies Often assigned otherim rtant positions" assigned Often fill higher position" Sometimes goes "tear" principal failings Drink one of

a

in in

to to

a

is

or

it

in

in

to

ofor

D.G G C.B D. D C G D. | | | |

D.R D D.D D. D.R D D D.

D.D G D.G D. D E G D.

or

of

R. E.

D

M.

A. R. K. S.

D D D

D D D

in

D D

or

in

a

D

*T-porary assignments

*Manias"withmreºptions”

Figure

24.

º: -º:

“

*:::::: -ith

spaces you may add such your own as you believe other items will further describe this employee.

D D D D D

at

º:

D.

In the following

y

*:

D.

Makes poor sales talk Makes good salestalk Always tries please Unusually gracioustoward customers Often not attentive customers Uses good English Sales volume among the best overcomingobjections Skilful Sales volumebelow average Voice tooloud, harsh, high pitched Keeps up fine display goods to

of

to

of

º:

#.

do

to

be

at

fº

Too easy-going Learns new work slowly Learns new work easily Understands instructions readily willing worker all times Takes unusual interest the work Might be more orderly Very orderly and systematic Often forgetful Often does carelesswork many mistakes accurate Hardly ever makes mistake Accurate but very deliberate highly expert own work Not dependable Usually reliable and dependable Always" reliable and dependable

Is

D.D. D. D | D.

in

or

|

D. D.D. D. B D.D. tº D.D.D. B

D

D.

ork always" up date amount of work Turns out unusually Steady worker most the time Always" busy work Does not accept responsibility Accepts responsibility Does not always obey orders willingly Visits too much with others Needs considerable supervision Works well without supervision Fineself-control; seldom neverloses temper Loses temper easily

A

D.D.D. D.

D.D.D. D.

D.D. tº D.D.D. B

D.

D.D.

D

D.D.

D.D.D. D. D.D. D.D. D. B

D. D. D. [] D.D. D.D. D. B

D. D. D. D. D.

of

is

or

on a

a

D

E. D. G D.

D.

D.D.D. B

D. D.

Blºº.

C D.

D. D.D. B Q E. D. D.R D.D.

ID

D.D.D D. D.D. B Q E. D. D.D D D D D

[] DJD

y

D. D D

Willing worker, but not leader lay out work Does not plan effectively Plans work well but lacks snap getting done planning and Unusual ability laying out work; good organizer Makes quick and accurate decisions Toolenientin maintaining discipline Maintains good discipline Lacks decision Exceptionally skilful handling

in

D

D

in

a

§::::::::::::::::

or

D

a

D

D ºnD D.D

D m.D

D D.D D D D

D D.D D

DD

D. D. m. Lasy [º] Slow moving d ick and active D. D. [...] D Minor physical defects D D Serious physical defects Indifferent: not interested D. D Talks too much outspoken Too blunt D. D. Too much self-importance D D D Good team worker [] D Not good team worker D D Resents criticism suggestions Antagonizes when dealing with others Might often be more considerate Usually pleasant and cheerful D Always" courteous disposition D. D. D. D Qften seemsdissatisfied complaining D Often grumbling D Uses poor judgment D D Might often use better judgment D D Generally uses goºd judgment Always" uses good judgment D. Does not do his (her) share work Generally looks for the easy work Must generally told what Q| Work often slightly behind

Probst Rating Form

19]

Ch.

PLACEMENT AND EMPLOYEE EVALUATION

the new rating scheme essayed become objective. listed positive and negative traits and asked the rater merely scores check quality attaching their presence. He was not indicate any degree specific individuals. was descriptive

to

He was merely

place

to

they existed

of

these traits

if in

as

to

or

to

of

It

to

objective,

317

a

device consisting

of

being placed

a

the form was scored

in

by

of

it

if

to

a

it

check mark after the trait the person being rated, ignore and not applicable. The rating form contained parallel per pendicular columns for the checks three raters, the first the immediate supervisor, then successively the next higher executives. When completed, slide rule

As the slide rule would pass back and forth the stencil would

and stencil.

in

be

by

of

reveal certain combinations checks upon the rating form. These would readings unfold slide rule which turn would translated formula into the ultimate scores. Any moderately intelligent clerk could readily as

A,

B,

a

E,

E–.

5

17

to

4

to to

per cent; and

E, 14

to

B,

to 24 7

to

17 to 5

to

per cent;

D,

49

57

to

to

cent;

C,

A

to

to

to

larger number them than the others, Experiments biological principle. accordance with the curve have amply proved that the biological curve applies the Probst ratings. Successive per cent; per runs have shown the score allotted a

allocating

in a

perfect distribution

C to

C-,

D,

C,

to

operate the device. The scores were devised on biological curve learn B+, basis, letter ratings running from high low follows: A-H, D–, C+, categories average, The three constitute the

per cent. SELECTED READINGs BOOKS AND MONOGRAPHS

&

D.

Army Services Forces. Civilian Personnel Officer's Placement Manual. (Govern ment Printing Office, Washington, D. C., 1945), No. M213, 98 pp. Making and Using Industrial Service Ratings. (Harper Halsey, George Bros., New York, 1944), 149 pp. Policy Holders Service Bureau. Employee Rating Methods. (Metropolitan Life Insurance Co., New York, undated, circa 1945), 48 pp. Tiffin, Joseph. Industrial Psychology. (Prentice-Hall, Inc., New York, 1942), pp. E.

J.

:

231–261.

Walters,

pp. 200–243.

Personnel

Relations.

(The Ronald Press Co., New York, 1945),

The Placement Interview. (Government Printing Office, C., 1945), Civilian Personnel Pamphlet No. 15, pp. 17

ington,

D.

War Department.

Wash

PERIODICALS

to

-

1,

4,

in

º, to

of

of

C.

2,

Aronson, Albert H. “Service Rating Plans.” Public Personnel Review (October, 1941), Vol. pp. 298–305. Ordway, Samuel H., Jr., and Laffan, John “Approaches the Measurement and Reward Effective Work Individual Government Employees.” Supplement the National Municipal Review (October, 1935), Vol. 24, pp. 555–601. Powell, Norman. “Service Rating New York City.” Personnel Administration (September, 1941), Vol. pp. 7–10. No.

CHAPTER

20

EMPLOYEE RELATIONS Problems of Morale “Morale,” like many other words in the English language, has numerous connotations but proves extremely difficult to define specifically. Morale might best be expressed as that tone or feeling which is exhibited in a mul Morale, if titude of ways by the entire personnel of an organization. checked daily, would hardly be recognized; the over-all view would be lost in the routine. However, infrequent checks made after long intervals of time might reveal, due to changed conditions, a gain or loss in morale. Notice of a change in morale of an organization only after long periods of time is probably due to the fact that morale, like health, is a general term used to describe a condition caused by innumerable factors and many complex relationships." F. J. Roethlisberger seems to suggest that as more research is carried on with worker morale, the word will be dropped in actual practice, just as the word “health” for working purposes has been dropped by the medical profession. In their work, doctors treat specific organic disturbances after a careful diagnosis in each particular case. The term “health” to a doctor, therefore, is a vague generality. Just as doctors realize that lack of health can seldom, if ever, be attributed to one simple cause, so should management experts realize that lack of morale cannot be attributed to a single factor.”

High morale is that certain something which is felt by members of an organization that makes them not only proud to identify themselves with

as

at

a

in

a to

is a

it

it.

Essentially, phenomenon the organization but also glad to work for group put associated with which the individual members are glad hand, working forth the maximum effort required for the tasks unit

and

a

to

the organization

spontaneous

work.

-

realization

of

depend upon

a

line officers and workers.

is

morale must ultimately

It

of

a

The existence the action and thought

loyalty

high state

of

of

is

most often accompanied and voluntary willingness

to by

of

its

while still retaining their own individualities. While the causes and charac presence probably teristics morale are undoubtedly highly intangible,

189

in

in

on

Chicago, 1942). Management and Morale (Harvard University -

1941),

ft.

F.

Service Assembly, Roethlisberger, p.J.

*

(Civil

R.

*

is

Employee Relations The authoritative work on the subject Committee the Clapp, chairman), Employee Relations Public Service (Gordon the Public Service

3.18

Press,

Cambridge,

Ch.

EMPLOYEE RELATIONS

20)

319

this fact that is causing public personnel administrators to advocate the establishment of personnel officers in the line departments, for in the past the administration of public personnel has been almost wholly a staff activity. The central personnel agency for the most part has been a central control and policing unit, often regarding the line officers with as much sus picion as it did the politicians and spoilsmen. There is little doubt that this type of central control of the personnel activities in the line departments is necessary, both in the interest of uniformity and for the purpose of pre venting abuses. However, difficulty arises when a central personnel agency, which is known as an unbending puritan, desires to secure departmental cooperation in establishing progressive personnel policies. The mental set of the central personnel people so often is that of policing and control that the personnel technicians are unable to establish a friendly association with officers and workers in the line departments. Many of the most fundamental personnel procedures must depend for success upon cooperation of line departments and employee groups. For instance, many a classification or compensation plan has failed to be adopted, or has become distorted in practice, because it did not have the whole hearted understanding and support of officers and employees. The same Indeed, training is the very program; progressive personnel yet essence of a a sustained training pro gram must depend upon the goodwill of the employee group. These obser vations are merely preliminary to the statement that the kind of morale can be said

of service ratings and training.

High morale will never achieved is a function of personnel administration. by type personnel be achieved that of administration which regards the

its

alpha and omega of personnel activities as appertaining solely to a central personnel agency. Indeed, an organization with high morale almost inevitably will be one in which every major subunit has own personnel by a

and voluntarily

spontaneously and participated everyone from the chief the messenger boy.

The Importance

of

to

in

program

by

by

to

training

a

be

by

in

officers and which good personnel practices are understood, and believed every line supervisor and employee. This can obtained only management problems, supported democratic approach sustained

in,

Supervision

so

of

of

In

of

in

The early leaders the public personnel field were concerned primarily question thwarting with the the spoilsman and keeping the civil service partisan politics. free from the baleful influence more recent years public sufficiently certain areas the service have been free from this

be

of

if

of

an

to

be

threat that attention could devoted the adoption and development Probably good personnel practices. assumption, not there had been always explicitly stated, that the threat the spoilsman could elim inated, good personnel practices would automatically result; but this assump

PERSONNEL

320

[Ch. 20

-

tion has not been borne out by experience. During the reform era depart ment heads and appointing officers were so frequently political appointees themselves that the central personnel agency often came to regard them as belonging to the enemy camp. Furthermore, as certain employee organiza tions put forward proposals which seemed to be inspired by selfish motives, the employees frequently were not trusted completely by those who con sidered themselves as purveyors of the true word. Now there is emerging a tendency on the part of many personnel admin a closer alliance with line supervisors and workers. being It is realized more and more that most of the failures in management are personnel failures—the failure of line supervisors to realize their per sonnel responsibilities and to deal with them effectively. The result has

istrators to establish

an ever-increasing

been

emphasis upon training in supervision.

It is common to regard a being person hierarchy as the lowest in the who has some authority over others. He is frequently referred to as a foreman, lead man, gang boss, supervising clerk, and by numerous other terms. However, What is supervision and who are supervisors?

supervisor

a study of the problems of supervision cannot be confined to activities of the person holding the lowest ranking position in the hierarchy but who over others; for frequently many of the super visory activities are exercised by persons holding higher ranking positions. This fact leads to the correct conclusion that there are several levels of nevertheless has authority

How does supervision differ from management or adminis tration? The answer is that it does not differ in the kind of operations, procedures, and subject matter conducted, but that it does differ rather in spirit and approach. The distinguishing characteristic of supervision is that it is worker-centered. supervision.

Management

in the past

has

not been

particularly

in the tool or instrumentality. Often interested

as a human being, but rather as a management has not treated workers with the same solicitude accorded valuable tools and equipment.” The orders have come down from the top; the workers were supposed to obey; and if they did not like the orders,

worker

they could leave.

This was the “hire-and-fire” philosophy of management dominated the employer-worker relationship throughout history.

it.

which has Indeed, our industrial system has become so impregnated with the sound ness of this philosophy that, until recently, management had assumed that productive efficiency could not be maintained without Civil service

jurisdictions

were

compared

unfavorably with industrial management restrictions upon hiring and firing. industry and the restrictions placed Act are tending

to

the National Labor Relations

place

310

ff.

on

Whiting Williams, What's

1921),

p.

*

-

upon employers

by

of

because civil service places certain However, increasing unionization

the Worker's Mind

(Chas.

Sci ibner's Sons, New York,

EMPLOYEE RELATIONS

Ch. 20)

321

upon industrial employers considerable limitations on their exercise of dis cretion in dealing with employees. The result is that management of the future must find methods of securing employee response by other means than the arbitrary threat of dismissal. There are those who are so schooled in the philosophy of authoritarian management that they never can envisage a work situation where management is deprived of unfettered discretion to deal with employees as it sees fit. On the other hand, there are those who look forward to a new day in which a humane and socially conscious man agement secures a voluntary and spontaneous worker response by the exer cise of enlightened leadership. In other words, people work because they have high morale and not because the punitive sanction of dismissal is hang ing constantly over their heads. In such a management situation supervision is all-important; and supervision is management become worker-centered through the decentralization of the maximum of personnel leadership and decisions to the lower line supervisors.

The new democratic approach to personnel problems through the line supervisors must be based upon an understanding of the sentiments, yearn ings, and aspirations of the workers, both as individuals and as members of social groups. There is some evidence to the effect that the hire-and-fire type of management often has misjudged entirely the true sentiments of

of

as a

of

its

workers. Management has spun fine theories about loyalty and esprit de corps and has assumed that own sentiments on these points have coin fact, the very opposite cided with those the workers, when, matter

The appeal of

worker groups.”

as

progres the worker, of

by

resisted today

to

sive management recognizing him

is

ciency engineering,

to

of

is

has been the actual situation. That the principal reason why the work simplification aspect management, scientific often referred effi

to

must

in

be

a

of

personnel administration To accomplish this large share upon operating officials, devolve the line and they will successful they develop strength among supervisors extent that can the lower respect.

to

of

to

by

is

by

of

by

a

in

as

is

the inner consciousness human being—an individual who desires respectable goad status the community and recognition his fellow men. Instead ing him into performance shouting and driving, the new approach leadership, training, example, and stimulate him work means

the

deal

Roethlisberger

Dickson, 581.

Management

be

so

and the Worker

train is is

be

to

of of

and William 1939),

University Press, Cambridge,

aside. Such

going sure, this classes. To any training program, but the point

J.

J.

F.

*

ing should not consist merely inevitable and essential aspect

set

it

will not permit imaginary emergencies

p.

that they

to

it

in

in It

be

It

be

ing with personnel problems, and situations. emphasized too strongly and too often that this ideal can cannot approached only through virile and sustained training. must virile management employees strongly the sense that both and believe one

that

(Harvard

PERSONNEL

322

[Ch. 20

the arranging for, and the announcement of, a schedule of classes will not make a training program. That kind of training which is a morale builder

is an integral part of daily management and supervision. An organization which possesses high morale is one in which this type of training exists. The following chapter is devoted entirely to the topic of training. One cannot overemphasize how indispensable the right type of training is to the building of good morale.

Employee Organizations Formerly legislatures and executives maintained a hostile attitude toward the unionization of the public services. Especially marked was this antago

in

its

nism in the federal administration where for many years employees were legally barred from dealing either with Congress or committees. Finally, 1912 legal barriers were removed and since that time employee organiza

is

the conclusion that governmental employees can expect very little unless they are organized. Executives and legisla keep tures are constantly under pressure from large taxpaying interests leads

of to

experience

to

Indeed,

in

to

of

in

as

be

tions have conducted powerful lobbies. There can little doubt that the directly pensions and pay substantial improvement such matters employee organizations twenty years." traceable the efforts the last

If

of

or

as

down expenditures. These same interests, organized chambers com merce, local improvement associations, taxpayers' associations, demand appropriations for various types ventures. the public employee does

be

permitted lature.

to

be

be

not make himself collectively vocal, low salary and poor working conditions will his lot. There can little question that public employees should organize and deal collectively with the executive and

legis

in

services have become increasingly unionized the last general employees, decade. There are three unions federal two which are associated with the rival A. L. and C.I.O. The National Federa

of

at

of

the time the first World jurisdictional dispute result 1931, whereupon the latter organized a

As

of

the

a

affiliate

was organized

L.

an

Employees

A. F. A. of F. L. of

of

War

Federal

of

tion

as

F. of

of

Governmental

of

in

its

F. L.

A. of

A. F.

of

its

the case

depart from fundamental principle craft unionism public employees where general unions have been organ to

has had

of

L.

in of

to

in

of

of

of

as

In an it

withdrew from the affiliate known the American Federation Government Employees. organized 1937 the C.I.O. the United Federal Workers America. The postal employees have their own unions, some which are affiliated with regular labor unions. Furthermore, the skilled crafts the jurisdictions. belong Indeed, their own craft unions most the

on

to

of

p.

5,

*

governing For examples how organized public employees bring pressture bear officials, see Fred Arnold, “Civil Service Sharpens Its Teeth,” The Litcrary Digest (May 1934), Vol. CXVII, 25.

Ch.

EMPLOYEE RELATIONS

201

ized upon the industrial principle. can Federation of State, County,

323

Thus, in 1936 it established the Ameri and Municipal Employees. The C.I.O.

also has industrial unions covering state and local employees.” Government employment consists, more largely than employment in industry, of workers belonging to the clerical, professional, scientific, and white collar classes. The social outlook of these people, irrespective of the size of their incomes, is ordinarily that of the employer group—bourgeois and nonmilitant. The result is that it has been less amenable to unionization. Hence, one sometimes finds groups of this kind organized into nonaffiliated employee associations. The affiliated groups tend to look down upon such units and to refer to them critically as company unions. However, it is not uncommon to find such organizations possessing a very respectable mem bership strength, employing a full-time secretariat, and exercising consider able influence upon personnel matters. The typical title for such an organization

is the

state, city,

or county employees' association.

The right of employees to organize and belong to unions is generally recognized today. The representatives of these organizations are in constant touch with administrative officials, civil service commissions, and the legis lature. Their opinions upon the entire gamut of personnel matters and policies are not only listened to but frequently sought after. However, there is strong public feeling to the effect that public employees may be in a different category than industrial workers in the matter of union activity.

There is

a very deeply ingrained

sentiment to the effect that the

public employee is working for the sovereign, and that there must be no restriction upon sovereignty. The opposition to unionism in the public service is based very largely upon the public's association of unionism with strikes. Because many of the public services are essential to the mainte nance of public safety and order, it is felt that public employees should never strike. Unionism and strikes are synonymous in the minds of a large section of the public, hence the clamor to suppress unionism in the public service. Realizing this, the national unions established a policy forbidding strikes and often included such a prohibition in the charters of local unions. However, the fact remains that many public employees' strikes have oc curred in the past, and will undoubtedly occur in the future. A typical example of a public employees’ labor disturbance was the Detroit Street

Railway strike of

1937.7

-

Those who would answer the argument that the danger of strikes makes unionization of public employees intolerable would base their contention on * Eldon L. Johnson, “General Unions in the Federal Service,” The Journal of Politics (February, 1940), Vol. II, pp. 23–56; Sterling D. Spero, “Employer and Employee in the Public Service,” Problems of the American Public Service, Monograph No. 9 (McGraw Hill Book Co., Inc., New York, 1935), 433 pp. * David Ziskind, One Thousand Strikes of Government Employees (Columbia Univer sity Press, New York, 1940), p. 118.

.

PERSONNEL

324

[Ch. 20

Bad personnel practice is usually the cause of strikes, and bad personnel practice usually results from that type of authori tarian management which refuses to listen to employee viewpoints. Most thoughtful individuals immediately will call to mind the hazard to good personnel practice.

if

policemen and firemen were to strike. Yet the most cele brated police force of the Anglo-Saxon world has experienced at least four century strikes in existence.* Then there was the Boston police strike 1919. The Boston police were receiving $1,100 per year and furnishing

of

of

its

public safety

to

of

their own uniforms, when craftsmen were earning $1.4 per day. The strik returning work, but their newly recruited ers were denied the privilege $1,400 per year, plus successors received uniforms. Undoubtedly, the gen to

of is

it

to

be

to

eral right strike should denied those who render services which are indispensable public safety. Yet hard censure them for using the weapon securing strike when all other means tolerable working condi

of

of

be

by

of

by

a

living wage have been exhausted. The public can avoid the providing adequate salaries and favorable conditions public strike employment. The employees have learned from experience that desirable results can achieved use their own organizations without striking. public Political pressure applied through the lobby and the mobilization tions and

be

by

to

initiative ordinances and charter amend

mentS.

*

•

the people by means

of

vote

-

of to

of

opinion through the use the initiative and referendum have proved effective weapons. The policemen's and firemen's organizations have used improve their conditions. They have secured minimum salaries them

the report will indicate that these conclusions are true, not about collective bargaining, but about the closed shop—a distinction closed-shop agreement would probably which many people fail make.

A

to

analysis

of

ever,

an

in

in

of

Municipal Law Officers, issued 1941, concludes that collective bar gaining contracts are not legally possible municipal employment. How

on to

in

in

of

to

be

preemploy the extent that public employment was restricted thinking membership.” ment union The error much the this subject lies the assumption that collective bargaining depends upon the closed illegal

mental units which have engaged

in

of

a

shop.” The Tennessee Valley Authority, the Inland Waterways Corpora tion, and the Government Printing Office are few the many govern collective bargaining. P.

of

to

S.

of

F.

of

9

*

J.

Moylan, Scotland Yard and the Metropolitan Police (G. Putnam's Sons, Ltd., London, 1929), pp. 41, 43–53. Municipalities Rhyne, Power Charles Enter into Labor Union Contracts—a Survey Municipal Law Officers, Wash Law and Experience (The National Institute p.

ington, D. C., 1941), 23. Employees “Government LIV, pp. 1360–1368. 19

,

of

A

in

of

of

the closed shop and collective bargaining constitute tre mendous intellectual stumbling blocks for many when thinking about the place report unionism the public service. the National Institute

The issues

and Unionism,”

Harvard Law Review

(June,

1941),

Vol.

EMPLOYEE RELATIONS

Ch. 20)

325

The Tennessee Valley Authority has had to confront and deal straight forwardly with the labor problem because it is engaged in direct production,

of which involves the employment of skilled and semiskilled labor, such as the generation and distribution of electric power and the production of fertilizer. Furthermore, it has constructed many of its great dams by its

by

own employees rather than letting the work out today de contract. The Tennessee Valley Authority's labor policy pendent upon two documents. One was statement 1935 the directors Policy. Employee Relationship and known the This was unilateral and signed agreement, but not the nature did recognize the right organize and affiliate they choose, designate representatives, and bargain collectively with the Authority. 1940 the Authority entered bargaining agreement into collective with fifteen unions representing employees

the trades and labor services.” on

TVA

of in

a

In

as

to

employees

of

it

a

in

of

as

a

in

by

is

to

force account, that

is,

much

of

by

be

by

in

on

be

or

A

great deal any con informal collective bargaining not based per public signed agreement tractual can carried the field accomplished permitting union sonnel administration. This can an

to

express' freely their views before the civil service commission providing open and hospitable door between the personnel administra leaders

of

of

be

by

of

on

tors, management, and line supervisors on the one side and union members and leaders the other. Many the commonly imagined evils union ism can avoided man-to-man contacts this kind. Indeed, progres

the interests

to

of of

tapped

in

be

management which can tion and economy.

of

an

is

to

coming sive and liberal management philosophy the conclusion that knowledge significance practical the workers have immense store both increased

produc

as

L.

of

F.

in

A.

of

Some municipalities are now signing agreements with unions represent ing the laboring employees their public works departments, recent ex amples occurring Baltimore and Philadelphia,” with unions

of

as

to

a

to

of

in

each instance. The Baltimore agreement recognizes the union the bargaining representative for employees the Department Public Works bargain with and the city agrees not similar union. Employees are not join the union and individuals can bargain for themselves required directly.

holiday pay, promotion, The document deals with such matters working day and week, sick leave, seniority, vacation, length military leave, and sets forth hourly rates for specific job categories.

of

layoff,

of

a

of

of

a

in

of

19

in

Bargaining **Tennessee Valley Authority, Collective Federal Regional Agency pp. Another example (Tennessee Valley Authority, Knoxville, 1941, mimeo.), union public agency took place June, 1941, when the Board Transporta negotiations with tion New York City entered into negotiations with representatives the Transport City Employees,” National Municipal Review (July, See “Strikes p. 437. News Bulletin the Public Administration Clearing House (Chicago, January 30, Agreement between Department 1945). Release No. Public Works the Mayor and City Council Baltimore and Municipal Chauffeurs, Helpers and Garage Employees Union (1944, mimeo.), pp. of

of

2; of

13

of

**

,

of

Wºº. §on.

PERSONNEL

326

[Ch. 20

Grievances are to be handled, in the first instance, through a shop commit teenan representing the union and a department representative for manage ment. The department agrees to deduct union dues for such employees as make formal request in writing, the union agreeing to reimburse the city

for the clerical cost. Employees may withdraw this request at any time without forfeiting employment rights or privileges. Management

cooperation with worker groups is not easy, which is the primary reason why it is so seldom tried. It means long drawn-out negotiations and conferences, and these time-consuming practices are frequently galling to the dynamic, driving type of executive. It also involves, at least in the beginning, negotiation upon a basis approaching probably

equality with people often of another social class, whose militancy seems to smack of truculence. It is extremely difficult to be democratic because democracy is the hard way even in the field of politics, but it is humanity's way and ultimately

the cosmic road to the highest human happiness and achievement. It has taken centuries to develop even the imperfect degree of political democracy enjoyed by the Anglo-Saxon world. Why should one expect that management democracy can be achieved without at least decades

of travail?

there was established for the civil service of Great Britain, machinery whereby administrative officers and employees might cooperate with one another and within certain limitations might try to settle over the

In

1919

conference table any differences arising between them. This machinery, patterned in many respects after similar organizations in British industry, is called the Whitley Council. The membership of the National Whitley

Council is divided equally between representatives of the government or administrative side and representatives of the workers or “staff” side. The official or government side always includes one representative from the Treasury and one from the Ministry of Labor. Other appointments to the official side are expected to include persons of standing, but such appointees need not necessarily be in the civil service. Since 1922 the official side has been represented by three members of Parliament, Permanent Secretaries of Departments, and other comparable officials. The workers' or “staff.” side is comprised of persons of standing appointed by the various associa tions of civil service workers as specified by the constitution of the National Whitley Council. Staff representatives need not be in the civil service, but in the past about half the staff membership has consisted of full-time asso ciation officers and the remainder have been civil servants.” The chairman ship is held by a representative of the official side and the vice chairmanship by the employee side. Before any decision can become final, both the official ** Herman Finer, The British Civil Service Unwin, Ltd., London, 1937), p. 156.

(The Fabian

Society -

and George

Allen &

Ch.

EMPLOYEE RELATIONS

20)

327

and staff sides must agree upon the proposal attested the chairman and the vice chairman.

by the signatures

In addition to the National Council, there are Departmental Councils

and district

All

for local situations.

committees

of

Whitley

are patterned

along the same lines as the National Council.

Authorities seem to agree that Whitleyism serves a useful purpose in spite of the fact that the government holds the dominant position. Since the establishment of Whitleyism, the government is able to deal with civil service employees in an organized manner rather than by frequent deputa tions of numerous workers' associations to the department head or minister. The government has been able to obtain valuable suggestions from the staff

For example, when plans were being made for the evacuation of government departments in World War II, the regarding

departmental operations.

staff was responsible for many valuable suggestions which were rendered in Whitley Council meetings.”

a

considered

if

indispensable

in

is

atmosphere be

attained. Such relationships are

to an

of

in

of

all

The workers, however, have gained something also. When it is known that matters such as vacations, promotions, and work assignments may come up for review in the Council, favoritism is most likely to be avoided by the line officer. Also line officers are not apt to take advantage of their authority merely for purposes of display, if they know such acts may be reviewed in the Council. The staff side is still overwhelmed by Treasury Whitley Councils dominance, but observations action reveal that goodwill and easiness approach between officers and staff men have been management-employee

democratic manner.

or

Removal

by

is

of

to

hearings and reinstatement entirely within the the Civil Service Commission. removal discretion the appointing officer. The only restriction placed upon him that must file written statement the charges. has even been claimed that non-civil service people frequently have more protection be recourse The power

certain protectors

in

backing

It

of

cause they have the political

of

a

is

he

of

opinion, gives the employee

no

to

by

be

broadly classified into Removals dismissals under civil service can two categories: the “open backdoor” and the “closed backdoor.” The “open popular backdoor” used the United States Civil Service, contrary

Congress.

a

of

as

as

Michigan, and municipali There are also certain state jurisdictions, such ties, such the City New York, which provide the “open backdoor.”” The “closed backdoor” exists where dismissed employee can appeal his of

22

in

L.

H.

*

J.

**

Robson, “Whitley Councils the British Public Service,” Journal Public pp. Administration (New Zealand, June, 1940), Vol. III, Litchfield, “The Open Back Door—A Case Study,” National Municipal Edward Review (February, 1941), Vol. XXX, pp. 85–89, 132.

PERSONNEL

328

|Ch.

20

to the civil service commission and demand a hearing, the commission frequently having the power to reinstate him with back pay.

case

Administrators and supervisors often have been irked under this proviso which requires them to defend a dismissal in a public hearing before a lay commission. The aggrieved employee frequently is represented by a re sourceful attorney. Furthermore, it frequently happens that the dismissing officer's side of the case is not adequately presented because there is no provision for a prosecuting attorney. Both when he is on the witness stand, and when testimony is being given by others, every possible effort is made to embarrass the appointing officer, even to the point of making him appear as the culprit in the case. Unfortunately, the lay civil service commissioners themselves sometimes aggravate the undesirable aspects of dismissal hear ings by assuming an attitude designed to place the commissioners in a favorable light with workers in general. This point should not be under emphasized in considering the problem of dismissal under civil service, because civil service commissioners find it extremely difficult to be firm when the frailties of human nature conflict with the best interests of man agement.

A

formal removal system with commission hearings inevitably tends to establish a sort of civil service jurisprudence in which the interest of abstract justice for the individual frequently leads to conclusions which defy management logic but at the same time ostensibly serve the interests of humaneness. This is very true in any system of jurisprudence. Thus, the harshness of the laws of England during the seventeenth and eighteenth centuries led to the technicalities century.

of criminal procedure in the nineteenth

One of the greatest evils of the “closed backdoor” results from impart ing a tone to personnel administration which is excessively litigious and contentious. Thus, there are certain civil service jurisdictions in the United States where the civil service commission is always being sued. In these situations employees seem to have more interest in their rights than in their responsibilities.

Successful public service never can be developed on such philosophy. a One of the most effective attacks upon this evil is the devel opment of a progressive and enlightened personnel system. Personnel administrators can go a long way toward discouraging excessive litigation by removing the cause for litigation through negotiations.

The litigious and contentious

of civil service removal hearings can be obviated greatly by more adequate preparation of the cases by the removing officers. This is one of the most effective services which can be offered by a departmental personnel officer. He should see to it that the aspects

very moment an employee promises to become a problem case an adequate record be made of what happens. Too often the removing officer is embar passed at a removal hearing because of the fact that he cannot substantiate

his points by documentary proof. He should appear

at a hearing

with the

Ch.

EMPLOYEE RELATIONS

20)

329

employee's personnel records arranged in such a manner that he can start from the very beginning with a history of the case and proceed to back up every point for which he contends with documentary evidence.” What

happens in cases reaching the dismissal stage is that provo cations and violations have been permitted to continue for a long time, fre quently for years, without the supervisor's mentioning it to the offender. so frequently

Supervisors are reluctant and diffident about telling people of their short comings, the natural tendency being to put up with it and say nothing until an exceptionally provoking incident touches off an explosion. Dismissals are accomplished in an atmosphere of heat, antagonism, and recrimination.

One of the

best antidotes

for dealing with problem personnel

cases

of

of

be

of

at a

by

followed, the great preponder this systematic procedure accomplished desirable dismissals can without ever going the

to

is

be

action taken.

of

so be

impressed with the necessity making the proper every step that future date they can sure their discipline cases having available documentary proof for every

If

records ground

They should

in at

about

it.

this nature is sustained supervisory training, in which supervisors are taught not only that it is their responsibility to start dealing with problem cases from the very beginning, but also the manner in which they are to go

ance hearing stage.

to

a

his best interests and elsewhere. Desirable atmosphere without an

-

organization holds that grievance machinery; use

to

The most progressive personnel philosophy with high morale will not have much occasion

be

it

will

of

in

be

it

at

constitutes an attempt his rehabilitation accomplished terminations can often this kind being stamped with the stigma dismissal.”

essential,

of

is

becomes

it

an

employee's services Where termination done with the employee's understanding that that

be

It

to

to

of to

in

be

a

a

in

be

Discipline cases will handled from the very first warnings atmosphere counseling approach. personnel calm and with will procedure preserve and build human which every effort will exerted haphazard values rather than leave them circumstance and fortune.

a

to

of

be

to

be

as

to

be

it

to is

in

however, the most advanced theorists this field would agree that well have such machinery available. Employees should trained look toward their immediate supervisor the one chiefly responsible for their extraordinary work and welfare. There should effort expended the relationship end that the maximum contact and should with this grievance machinery should try immediate supervisor; consequently,

fſ.

245

be

is

“Cross-Currents

Lewis Meriam, Public Personnel p.

9

17

1938),

Jr.,

Problems

Industrial Relations,”

Gas

(December,

(Brookings Institution, Washington, -

-

Wadsworth,

1941), pp. 19–24.

in

to

Y.

º

of

It

it

to

excessively easy for disaffected employees avoid making undermine. supervisor's responsibility. quite generally agreed, nevertheless, the that there are occasions when the relations between the supervisor and the employee can lead grievances which can those types treated only.

-

D.C.,

PERSONNEL

330

[Ch.

20

by short-circuiting the supervisor. Public agencies have formalized rela procedures tions and established for handling such grievances. Thus, the

United States Department of Labor has a special conciliation committee made up of representatives of both supervisory and nonsupervisory posi tions in the Department.” The Department of Agriculture provides for appeal through the supervisorial hierarchy up to the bureau chief. If this procedure is not successful, the matter will be referred to a grievance com mittee of three persons: one appointed by the bureau chief, one by the employee, and the third by these two. An appeal from this committee goes to the director of personnel for the department, and from him to the Secretary of Agriculture.” In practical operation many steps in the formal ized grievance procedure may be omitted or consolidated; however, it is highly important that the channels through which grievances are brought to the surface be kept open and readily accessible to employees.”

Counseling

II

World War witnessed the acceleration of employee counseling in both industry and government, primarily because so many people left their nor mal routines of living to crowd into congested production areas. Housing, rationing, and personal adjustment to new envi problems ronments constituted which many persons could not solve without help, so they clamored for management to aid them. If the latter did not do so, turnover and absenteeism increased so rapidly that management was

financing,

transportation,

of

of

In

of

its

forced to take cognizance of many problems hitherto considered outside sphere. The result was the establishment counseling units primarily handling these emergency matters. for the purpose some industries wholly aiding counseling inaugurated purpose such was almost for the

or

a

of

as a

will continue Congress—which

It

in

a

to

in

remains seen what extent depending upon the disposition

it

to

be as a

to

its

in

on

women workers who were entering factory employment for the first time. While counseling had existed federal agencies restricted ex perimental scale, the war saw expansion status almost universal Washington and acceptance personnel function, both the field. peacetime activity,

dealing effectively and courageously

is

as

as

it

a

a

move mistake because would supervisors necessity the the for with troublesome and unpleasant per

of

by

agement. Others would regard such relieving weaken line supervision

up

by

to

to

of

some say not too concept—and acceptance supervisors. the line There are some counseling enthusiasts who want set their units autonomous staff services, “weeping walls” isolated from day-to-day production man

friendly

v.

V.

,

wº

4,

of

of

of

of

**

*

to by

Labor, dated December Memorandum Officers and Employees the Department 22, 1933, and signed the Secretary Labor. Agriculture, Memorandum No. 753, dated May United States Department 1938. Glenn Gardiner, How To Handle Grievances (Elliott Service Company, New York,

EMPLOYEE RELATIONS

Ch. 20)

33I

sonnel problems. Moreover, supervisors would tend to become jealous and suspicious of independent counselors when employees were seen going to the counseling office without consulting the supervisors. Indeed, there have where counseling supervisorial opposition. been

cases

services have been discontinued

because

of

should undoubtedly remain as a permanent phase of person nel management, but the enthusiasts should exercise restraint in their move for autonomy. Certain people attracted to personnel work by a highly Counseling

developed sensitiveness to human sentiments tend to regard management and the management viewpoint as inimical to happiness on earth. These persons should realize that their usefulness in management situations will depend on their ability to become a part of a unified process of personnel management in which they have gained the confidence and cooperation of the line supervisors. Their main job should be to train, advise, and strengthen the line supervisors so that the latter can handle the maximum proportion of difficult personnel situations without reliance on the personnel office. Having attained the confidence of the line supervisors, the counselors

will have laid the groundwork for the security of their own jobs.” SELECTED READINGS BOOKS AND MONOGRAPHS

Army Service Forces.

Manual M216: Civilian Personnel Officers' Employee Rela (Government Printing Office, Washington, D. C., 1945), 42 pp. Baker, Helen. Employee Counseling. (Industrial Relations Section, Princeton Uni versity, Princeton, 1944), 64 pp. Committee on Employee Relations in the Public Service (Gordon Clapp, Chairman). Employee Relations in the Public Service. (Civil Service Assembly, Chicago, tions.

1942),

246 pp.

f

(Harper & Cooke, Morris L., and Murray, Philip. Organized Labor and Production. Bros., New York, 1940), 277 pp. Irwin, Chicago, Gardner, Burleigh B. Human Relations in Industry. (Richard D. 1945),

318 pp.

Gladden, E. N. Civil Service Staff Relationships. (William Hodge & Co., Ltd., London, 1943), 184 pp. Fatigue of Workers. National Research Council. (Reinhold Publishing Corp., New

York,

1941),

165 pp.

Nyman, Richmond C., and Smith, Elliot Dunlap. Union Management Cooperation in the “Stretch-Out.” (Yale University Press, New Haven, 1934), 210 pp. Pressman, Lee. Legal Memorandum in Support of Power of Municipalities to Enter Prepared for the State, County, and Municipal Work into Collective Agreements.

(CIO, New York, March 1942). Power of Municipalities to Enter into Labor Union Contracts—A Survey of Law and Experience. Report No. 76. (National Institute of Municipal Law Officers, Washington, D. C., August, 1941), 78 pp. Riegel, John W. Management, Labor and Technological Change. (University of Michigan Press, Ann Arbor, 1942), 187 pp. ers of America. Rhyne, Charles S.

*

Those desiring to read further about counseling may consult Paul S. Burnham, Counseling in Personnel Work 1940–1944, A Bibliography (Public Administration Service, Chicago, 1944), No. 89, 38 pp. 4.

PERSONNEL

332

[Ch. 20

Roethlisberger, F. J. Management and Morale. (Harvard University Press, Cam bridge, 1941), 194 pp. Rogers, Carl R. Counseling and Psychotherapy. (Houghton Mifflin Co., Boston, 1942), 450 pp.

Rowntree,

B. Seebohm. The Human Factor in Business. (Longmans, Green & Co., New York, 1938), 244 pp. Seidman, Joel. Union Rights and Union Duties. (Harcourt, Brace & Co., New York,

1943), 238 pp. (Brookings Institu Slichter, Sumner. Union Policies and Industrial Management. tion, Washington, D. C., 1941), 597 pp. Tennessee Valley Authority. Collective Bargaining in a Federal Regional Agency. Authority, Knoxville, 1941, mimeo.), 19 pp. (The

PERIODICALS Drake,

Charles A. “The Exit Interview as a Tool of Management.” Personnel. (American Management Assn., New York, May, 1942), Vol. 18, No. 6, pp. 345–350. Flaxer, Abram. “Collective Bargaining in the Civil Service.” Survey Midmonthly (April, 1942), Vol. 78, pp. 111–113. ' Gardner, Burleigh B. “Employee Counseling in Private Industry.” Public Personnel Review (January, 1945), Vol. 6, pp. 6–8. Irwin, James W. “Labor Relations in the Public Water Supply Field.” Journal of the American Water Works Association (December, 1943), Vol. 35, pp. 1565-1573. Johnson, Eldon L. “General Unions in the Federal Service.” The Journal of Politics (February, 1940), Vol. 2, pp. 23–56. Litchfield, Edward H. “The “Open Back Door”—A Case Study.” National Municipal Review (February, 1941), Vol. 30, pp. 85, 89, 132. Macmahon, Arthur W. “The Mexican Railways under Workers' Administration.” Public Administration Review (Autumn, 1941), Vol. 1, No. 5, pp. 458–471. Macmahon, Arthur W. “The New York City Transit System: Public Ownership, Civil Service, and Collective Bargaining.” Political Science Quarterly (June, 1941), Vol. 56, No. 2, pp. 161–198. McClure, Russell E., and Gunter, Elder. “An Experiment in Employer-Employee Relations.” Public Management (July, 1944), Vol. 26, pp. 194–197. Notes. “Government Employees and Unionism.” Harvard Law Review (June, 1941),

Vol.

54, pp. 1360–1368.

Symposium. “Labor Čnions and Collective Bargaining in Government Agencies.” Public Administration Review (Autumn, 1945), Vol. 4, pp. 373–379. Wadsworth, Guy W., Jr. “Cross-Currents in Industrial Relations.” Gas (December, 1941), pp. 19–24.

CHAPTER

21

IN-SERVICE TRAINING of training in political science writings have largely centered around the type of instruction which universities should offer to those who are preparing to become top administrators, such as the British administrative class. Such discussions have usually concluded that the British system 1 is a magnificent example to be emulated in this country and have deplored the lack of an administrative class with university train ing in the United States.” Because discussions along these lines, usually centered around the type of university training desirable, it was deemed advisable to treat this subject in Chapter 2 under the heading of “The Study of Public Administration.” Another objective in so doing was to avoid overshadowing the important subject of training with this fractional part of the subject. The present chapter is concerned entirely with the question of in-service training—the training of employees after they training employment. type have entered This defined “the process aiding employees gain effectiveness their present future work through the development appropriate habits thought and action, skills, or as

is

in

of

of " of

to

of

of

all

Definition.—Discussions

of

Each line

rank, ultimately responsible for the efficiency employees under his direction. Some training employees always takes place even though neither recognized nor admitted. Ob viously training which planned and coordinated throughout the entire

of

is

is

it

and training

is

regardless

major responsi

others.

of

supervisor,

of

a

of

is

Training management and should function bility any person charged with the supervision

be a

knowledge, and attitudes.”

quite varied. Training different job situations may often bring employees exactly new does not the same problems does the as

up

in

for training

be on

on

to

in

a

be

is

to

more effective than that which just happens take place. responsibility But careful balance between line and staff must main tained order avoid both the dangers arising from unorganized training the one hand and from removal from reality the other. The needs organization

in

333

2.

in

p.

in

1.

&

in.

I,

of

-

*

in

Harvey Walker, Training Public Employees Great Britain (McGraw-Hill Book Co., Inc.; New York, 1935), 213 pp. A. Lawrence Lowell, The Government of England (The Macmillan Co., New York, 1912), Vol. pp. 145–194; Robert Moses, The Civil Service Great Britain, Studies History, Economics, and Public Law (Columbia University, Longmans, Green Co., New York, 1914), Vol. LVII, No. *Committee on Employee Training the Public Service (Milton Hall, Chairman), Employee Training the Public Service (Civil Service Assembly, Chicago, 1941),

PERSONNEL

334

[Ch.

21

training of present personnel; and in the latter case the purposes may still be diverse. Thus, broadly speaking, any of the following may be present for solution: to increase the effectiveness of employees in their present position; to aid a career service approach by preparing employees for pro motion; to retrain present employees so as to obtain versatility and flexi bility; and to develop organization fitness and harmonious human relations.” The actual training program may consist of induction training, on-the job training, or developmental training, operating singly or in combinations with others within either a centralized or decentralized system. The train ing may consist of actual instruction in certain skills and procedures or in how best to teach others these things. The latter is often termed super visory training. Individual organizational and working conditions will govern the type best suited to any one agency. The same is true of the choice of the many methods available for training purposes—conference, lecture, discussion, simulated situation, demonstration, field trip, institute, correspondence course, supervised reading, apprenticeship, internship, super vised practice, and rotation of assignments. The one, or ones, finally used will depend upon the problem at hand and the materials available. Detailed discussion of problems of organization and methodology are beyond the scope of this chapter. For more complete analyses of the subject the reader is referred to the chapter bibliography which includes a selected list of the more valuable recent contributions to this field.

Depressives to Training

of by

of

is a

it,

It is not an easy matter to organize and operate a program of in-service training, for opposition and resistance thereto are met on all sides. Man agement will usually give lip service to the principle of training while often finding many reasons for failure to back it in operation. The driving hire-and-fire type of manager tends to regard labor as a commodity which should be ready for his purposes at the time of procurement. If at any time it fails to come up to his standards, that is not his fault; and he should molly have the unfettered right to dispose of for training form

as

of

or

it

a

to

time

by

are

of

imagined pressures production. They because real pressed they hard deadlines and overtime that can never take get training started. They fail realize that little time taken organize training would the very near future eliminate the back

installing to to so

to

in

to

the weaker members

of

management who have suc cumbed the virus social reform. Then there are those managers who training sincerely believe good economics, but who never get around coddling advocated

Employee

Training

in

Committee

on

*

-

an

go

in

now log and put them even with their production schedules. Frequently training programs are started and along without serious difficulty during era the Public Service,

op.

cit., pp. 10–16.

IN-SERVICE TRAINING

Ch. 21]

335

of prosperity but are abandoned -when a financial depression or other emer

positions

it is

persons

of

its

gency is encountered. Another very real management objection to training, seldom voiced for reasons which are apparent, is the unwillingness of management to be open and frank about internal affairs. The Caesar complex not rare among authority,

it

be

to

it by

of

to

be

or

as

to

from the management group

does not come

to

at

if

to

This

the case that when management desires necessary overcome least the latent opposition not difficult understand one will perceive to

is

frequently

is

it

the employees.

training

or

of

inaugurate training,

In

be

an is

group

protection. These may they may exist deeply ingrained formal organization. The result as

or no

in

employees develop social attitudes formally organized the labor union,

of

is

to

a

at

of

as

to

the aggregate distributed according the biological curve. The latter concept implies that least two-thirds humans are very small fraction definitely superior. around average, and that the employment security, longing, effort obtain which almost universal

in

humanity

-

training.

The resistance alone; indeed,

impart management. The prospect may harmless, supervisors lower lead the sabotaging abandon

is

this type

to of

ment

horrify top management

it

may

of so

have information possessed only ing such information, even though

to

to

in

A

of

a

it

of

to

of

in

with the result that becomes rather rationalize that certain information about the affairs the organiza training supervisory tion should remain secret. The conference method frequently breaks down when has direct encounter with management's stimulating and beneficial conference secretiveness. lower supervisors fruitful, point where, often comes the the discussion must easy

is

of

to

of

in

has been too long prevalent labor training the right man day for the principle his length service.

of

the great middle and lower group the biological curve, comprising approximately three-fourths the population, find mental thought actually effort difficult. Sustained and continuous concentration painful process large sections the people. Most people desire more

of

to

a

is

of

in

The persons

seniority

of

exchanged

for the job, regardless

of

the basis

a

be

circles

to

Promotion

of in

on

is

as a

to

of

a

of

sentiments worker group with superior that the member the group, who aims demonstrate his su periority competitively, regarded threat the security the mass.

surplus

accompanied

would skilled

con

is

of

tinuous sales campaign. must always combat the protection complex worker groups, the symbol which the rather universal deification

of of

because

a

be

training must

a

by

that

all

The net result

It is

threaten the balance workers.

and other training facilities supply and demand yielding

apprenticeships

of

expanding

by of it

to

to

to

in

monetary income, but they are unwilling make the sacrifice involved self-improvement and accept the responsibility which usually goes with increased compensation. Furthermore, labor unions frequently object

PERSONNEL

336

[Ch.

21

The tendency of worker groups is to hold their superior mem bers down to the dead level of mediocrity exemplified by the average mem bers. These difficulties should not dampen the ardor of those who believe in the training principle, for they should be advised in advance of the difficulties which they will encounter. Training can be sold to the workers, but only if top management believes so thoroughly in it that training will be protected in case of real or imagined emergencies which offer excuses for interruption. If training is something seniority.

which may be regarded as nice window dressing, but which can be side fracked or postponed upon any provocation, both the supervisorial staff and workers will soon sense that it is not highly regarded by top manage ment. As will be indicated below, a vital training program must capture the minds and hearts of the line workers; indeed, the most effective train ing will

be that which goes on between the supervisors and those whom they supervise. This does not mean that there will be no classes conducted at some central place, but it does mean that the training spirit must per meate every scale of the hierarchy. Wherever one encounters an organiza

tion which possesses tone, that organization is one in which the training spirit dominates every move made by every individual every minute of the day; yes, even those minutes commonly considered off duty.

One of the chief obstacles in the way of establishing a training program is the delusion that it costs money. The distinction must be made between a cost and an outlay. To start a training program it is often necessary to make an outlay or an expenditure, but it will be a case of spending money to save money. It has been estimated that an orderly program of training could save the City of New York $100,000 a day or $25,000,000 annually."

The skills, competence, and insight which are the products of effective training become the foes of waste, unproductive inertia, and bungling. The recognition of training as a service-wide personnel function in the federal government is a rather recent development. Indeed, during the 1930's the Comptroller General cast a skeptical eye on expenditures for training that had not been specifically authorized by Congress;" but the legality is now quite well established. An over-all training unit had been established in the Civil Service Commission prior to World War II, and that event saw what is probably the greatest emphasis on vocational training The government undertook not only to train the mil payrolls, but sent trainers into lions of new civilian workers directly on industry corps accelerate the development skilled factory workers of

a

to

of

its

ever witnessed.

to

of

L.

3d

in

°

19

in

*

J.

John Furia and Harold A. Winson, Spending Money Save Money: In-Service Training Training, Civil Service Commission, New York, New York City (Bureau June, 1940), pp. V. Murphy, “The Comptroller General and Training,” Personnel Administration (June, 1940), Vol. II, pp. 16–22; The Comptroller General, Schools and Training Courses sess., Senate Doc. No. 182 (Government Government Departments, 76th Cong., Print ing Office, Washington, D. C., 1940), 42 pp.

IN-SERVICE TRAINING its

Training and supervisors, through courses are discussed below. Many

337

Within Industry program whose “J”

of

Ch. 21]

the departmental personnel offices

federal personnel system

the recognition given

to

by

on

a

to

had established training units prior the war; but that event witnessed expansion may mushroom which have permanent salutary effects the training.

not training

is a

it is

or

whether

or

There sometimes arises the issue

by as a to

Organization for Training head

a

is

to

by

on

be

to

to

be

quarters function performed central staff whether line departmental supervisors function carried the officers and them selves. The correct answer would seem be that neither extreme satis

by

if

its

is

of

a

of

it

be

by

a

headquarters training unit actively sponsored There should top management with blessing; yet training will largely fail consists entirely central school run the headquarters training department. This does not mean that the latter should not provide classes and conferences, for that one its important functions; however, the factory.

by

be

in

is

on

philosophy should permeate the training groups that the vital and significant training function that carried the line departments their own supervisors. Indeed, supervisor officers and the immediate must the

on

of

on

a

each

is

is

in,

a

a

that training needing the other for top

The answer then

be

would seem only logical that the training officer should located part of, both the central and the departmental personnel units;

be a

It

line responsibility,

of

of

its

one side and the confidence highest objective. will not achieve both staff and effectiveness.

If

any more than formal shell. the central top management the genuine backing the training corps supervisors other, the the

be

to

is

if

training vital link training people cannot have

and however,

to

opposition this among some training principal officers. There seem be two reasons for this attitude. The first the universal desire all functional specialists answerable immediately the chief. claimed that training will have greater prestige and will easier sell both upward and downward the training officer one the principal members the chief's general staff. The public personnel administration, second reason that has been empha synonymous sized heretofore, the eyes the line operating depart They regard pedantic ments with control. often and arbitrary type subterfuge possible. Many control which avoided even training believe that favorable will retarded this psychological training seems handicap placed personnel hand, the unit. On the other be

to

of

as

of

if

by

it

in

if

in

program

of

in

so

is

genuine personnel activity,

it

a

regarded and the training government, the United States which has units both the Civil Service Commission and the departmental and bureau personnel be

to

logically

be

to

to

is

of

it

be by as a

in

is

is

is of

if

to

be

is

to

is

It of

to

one finds considerable

PERSONNEL

338

[Ch.

21

seems incumbent upon the personnel people themselves to over opposition come the to their handling of training by abandoning the control attitude toward the departments and assuming the service approach.*

offices."

It

The key to a training officer's success will be more often his ability to sell the training idea itself to the line supervisors; hence, he must be a salesman first, last, and always. For this reason it is often thought best to select an insider and train him to be a trainer rather than to bring in a vocational education expert from the outside. It is often quite desirable to have as one member of the staff a person whose training has been in vocational education and who has not had previous contact with the subject matter of the organization. Such a person with higher degrees from a university department of education, if he is personally adaptable, can be of great benefit in advising the rest of the staff on training methods, tech niques, and practices.

However, from the standpoint of selling training

to the rank and file of the organization as a whole, fewer obstacles will be met if members of the training staff are first schooled and experienced in the line subject matter and subsequently drilled in the principles and prac º tices of teaching.”

The intensive development of personnel administration has witnessed what usually happens when a body of knowledge starts to become technical and specialized; the specialists start to go their own way without regard to the others, creating a problem of coordination. The large personnel offices of the federal government usually have subdivisions devoted to placement, employee relations, training, and others. The three mentioned have certain elements in common, the most obvious being that each requires face-to-face dealing with the employee relative to his development and problems. Placement must necessarily consider his need for training in recommending where he is to work; employee relations counselors want to conduct induction training of new employees and the training people are certainly

concerned with both his placement and his orientation. Hence, one of the major problems in training is to coordinate not only staff training and line training, but those personnel activities which impinge on training.

College Level In-Service Training In

of metropolitan centers university classes are offered on an after-hours basis. Most American universities have gone in for some type of extension work which carries the university to adults off the campus, but several have inaugurated programs designed specifically for public a number

7 United States Civil Service Commission, The United States Civil Service Commission's Part in Federal Training (Government Printing Office, Washington, D. C., May 12, 1939), 19 pp.

f.

8 Committee on Employee Training in the Public Service, op. cit., p. 159 Training Program, Forest Service, United States Department 9 P. Keplinger, ture (Government Printing Office, Washington, D. C., 1940), p. 16.

of Agricul

Ch.

*

IN-SERVICE TRAINING

21]

339

employees. Some give after-hours courses, while others accept interns who are on leave from their public positions for full-time study. The graduate

a

to

a

to

school has not sought general accrediting for wholesale transfer credits other educational institutions, but has taken the stand that

its

of

in

is

in

many persons with very advanced academic training and scientific attainment, position stronger offer respects many curriculum certain than universities themselves. The

own staff

it

ture has upon

so

its

school of the Department of Agriculture is about to celebrate its twenty fifth anniversary. It offers classes on a university level to federal employees without direct cost to the government. Because the Department of Agricul

stu of in

of

of

in

be

to

by

dents working for degrees elsewhere should arrange their programs advance and have the approval the other institution that portion Agriculture.” completed the student's obligations the Department

and Apprenticeships.-There have been several experi internship apprenticeship various parts the nation with

ments period for recent college graduates university has been occasioned

or

in

of

an

Internships

Rochester

for

a

have the students live

at

to

it

of

in

be

by

in

public administration. Sometimes this policy that the degree should not awarded until the student had obtained some supervised experience the field. Thus, has been part the Syracuse University training program

period during which they would

or

to

of

an

of

of

In

Municipal Research. other instances internship program inaugurated largely the has been for the purpose creating public employment for the public adminis avenue entrance work for the Rochester Bureau

at

pick-and-shovel

jobs for to

calibre are not likely long private industry as

in

of

to

stenography, and they would have work interminable period. Men administrative apply for such routine jobs public the service

so

an or

to

as

of

positions for which tration graduate. There has been no category class persons with general administrative training could enter the service.” They possess some specific manipulative skills, such bookkeeping would have

in of

so

or

as

of

Southern

universities

-

of

in

a

by at

the one now carried

on

of

by

or

of

in

some staff agency, such the budget agency Angeles County personnel agency Los the the State California. Interesting experiments along these lines were the ones conducted the Albuquerque period years Office Indian Affairs over several and

“

supervised experience

a

to

is

to

willing recruit them for administrative positions commensurate with ability.” give these people year their The internships aim

collaboration

*

of

Agriculture Graduate The Comptroller General, op. cit.; United States Department Bulletin Courses (currently issued, variously paged). the federal civil service the recent examinations for the position Junior Pro of

of

Assistant

would appear

step toward remedying this situation. by Merit (McGraw-Hill Book Co., Inc.,

be a

fessional

to

In

**

School,

**

with the

Lucius Wilmerding, Government

New York,

at

of

of

**

in

1935), pp. 67–68. George W. Bemis, Internship Training for the Public Service Los Angeles County Research, University (Bureau Governmental California Los Angeles, December, 1939, mimeo.), 46 pp.

PERSONNEL

340

-

[Ch.

21

Tennesee Valley Authority.” Numerous city managers have taken appren tices into their offices to act as administrative assistants.”

The National Institute of Public Affairs brings to Washington each year some fifty recent college graduates selected competitively from hun dreds of applicants. The Institute maintains a suite of offices with a library, an educational director, and a counseling staff. The interns are assigned to unpaid service in some department of government where they will receive experience in line with their separate inclinations and capabilities. They assemble for a weekly lecture and conference, and many attend classes in public administration in local universities. While this service does not give them status as federal employees, the placement and professional achieve ment record of these trainees in the very short time the program has been

in existence is truly remarkable.”

-

Some resistance to internship programs comes from the fact that interns often achieve a preferred employment status accruing from their training and contacts. Those already in the service may tend to become jealous of the interns, regarding them as interlopers who have skipped the regular ladder of promotion to start on a higher rung than normal. One means of allaying these apprehensions is to establish in-service internship training such as that now conducted in Washington by the Civil Service Commission. The operating agencies nominate likely candidates already on the payroll

who compete for the internships under a rigorous system of selection. The agencies pay their salaries but receive no immediate service during the internships.

Supervisorial Training One of the most distinct trends in public administration in recent years is the attention being given to the upgrading of line supervisors. As has been indicated previously,

personnel administrators are coming more and they more to believe that must have the goodwill and understanding of these key individuals in order to secure the backing of the line organization for progressive personnel policies and practices. This trend is also based upon the belief that supervision has been on the whole quite deficient, especially as regards human relations. The result is that such units as the United States Civil Service Commission and the Department of Agriculture, along with many others, are placing increasing emphasis upon the training of supervisors. If a progressive training spirit is to be infused into the entire organization, the supervisors must be made to appreciate the value of training. ** Helen M. Harris, “TWA Experiments with Internship,” American Library Associa tion Bulletin (March, 1940), Vol. XXIV, pp. 163–169. ** Emil F. Jarz, “How City Managers Train Apprentices,” Public Management (May, 1939), Vol. XXI, pp. 134–137. R. J. Bellows, “An Appraisal of the Internship Program,” Personnel Administration (March, 1940), Vol. II, pp. 8–12.

*

IN-SERVICE TRAINING

Ch. 21]

34I

A great deal of emphasis is also being placed upon the function of the supervisor as a teacher. Many would go so far as to say that the essential training activity should be performed in the day-to-day and minute-to minute relationships between the supervisor and the workers in his group. For that reason it becomes a primary objective of many training programs to teach the supervisors how to teach.

The fundamental approach to supervisory training seems to be what is generically known as the conference method.” There are many types of conferences and many ways of conducting them. The conference method used in the training of supervisors and foremen usually consists of a small group,

preferably

not more than twenty

supervisors,

gathered around

a

U-shaped table, with a blackboard at one end. A leader, skilled in confer ence techniques, gets them to discuss a particular problem and writes the

items on the blackboard as they develop out of the conversation of the group. The objective of the conference is to draw forth the reactions and opinions of experienced supervisors in such a manner that the group will

profit from a synthesis of their ideas. The conference method has the advantage of exciting interest and stimulating attention. A good conference will be dynamic, charged with such intellectual challenge as to make time pass with never a lag. Experts in vocational education are very critical of the lecture as a method of teaching; they prefer the conference because it not only maintains interest but provides an intellectual spur to creative group thinking. However, the pure conference method is limited to subject matter possessed by members of the conference. Obviously it is of little

or no value when one is dealing with inexperienced groups. In supervisory training it is often necessary to bring in speakers, usually technical experts in a particular field, or higher executives in the organization. Here the pure, conference must give way for the time being to “telling” or lecturing.”

supervision.

of

C,

as

B,

to

A.

of

level

of of

corresponding

to a a

a

is

by

of

its

super The United States Civil Service Commission inaugurated training program largely upon hierarchy visorial the basis the con Appley.” According ferences recommended Lawrence this system “A, D,” each letter there series conferences designated Thus the supervisors

upon the

to

go

in a

so

a

of

of

to

go

series

of

conferences called the “A” conferences. They back their own various groups and hold series conferences called the “B” series. The conferees that group turn back their group and hold series “C” conferences, and on.” highest level hold

&

p. of

P.

a

A.

*

**

*º

&

Sons, Inc., New York, Frank Cushman, Foremanship and Supervision (John Wiley 1938), 286 pp. Sons, Inc., New York, 1940), Frank Cushman, Training Procedure (John Wiley pp. 138–139, 142–143. Lehman, “The Management Training Conference Plan.” For full account see W. Public Personnel Review (April, 1942), Vol. III, pp. 138–144. Appley, “Education for Employee Morale-Building, Proceedings Lawrence the First Personnel Institute (Ohio State University Press, Columbus, May 12, 1938), 37.

PERSONNEL

342

[Ch. 21

II

At the beginning of World War the country was faced with the necessity of developing thousands of new supervisors for both industry and government. Leaders in the field of industrial relations were called to Washington to confer on the creation of a training program which could be administered on a mass basis, resulting in the creation of a unit called Training Within Industry in the War Manpower Commission. Channing

R. Dooley of Standard Oil Company and Walter Dietz of Western Electric during the war and administered the project, the heart of which consisted of three ten-hour units known as the Company

stayed on in Washington

“J” courses. Controlled conferences and demonstrations constituted the method of instruction, followed uniformly throughout the country by spe cially schooled trainers who were sent into war production organizations to teach trainers who were to spread the leaven in their own departments. The first course was called Job Instructor Training which sought to develop teaching ability; the second, Job Methods Training, which dealt with work simplification; and the third, Job Relations Training, directed at the human factor in supervision. At the end of the war two others had been developed: Union Job Relations, the title of which is sufficiently descriptive; and Pro gram Development Institute, designed to furnish training people an analysis of production problems and stimulate the planning of training to meet plant needs.”

It

was intended that these “J” courses would be only elementary intro However, to be followed by continuous supervisory training. follow-up there was widespread complaint that such did not take place, that the trainees were not urged by management to put their new learning ductions

into practice. In the later months of the war TWI pursued measures designed to induce a better follow-up. The “J” courses undoubtedly had a salutary influence which should make a permanent mark in training history.

Types of Approach.-It cannot

be emphasized too strongly that the teaching relationship basic is between the supervisor and the workers whom he supervises. There are two fundamental aspects of this relationship: one

is the teaching of the work skills or subject matter; and the other, the handling of human relations. The latter is in many respects the most important because personal frictions, misunderstandings, and disaffections constitute a universal malady whether the organization be made up of clerks or university deans. Most supervisors would prefer to avoid difficult personal situations rather than deal with them effectively. Furthermore, the lines of authority are often so poorly defined that supervisors are not sure of their duties in this respect. There are those who say that success in dealing with human problems comes

*

as the result

of an innate aptitude

The bulletins and manuals outlining these courses were collected and issued under the title of Training Within Industry Materials (War Manpower Commission, Washington, D. C., September, 1945), separately paged.

º

Ch.

IN-SERVICE TRAINING

21]

343

which people either have or do not have. Those who feel this way deny the possibility of teaching supervisors how to handle their human problems.

However, there is much to

be said on the other side.

Many firms have

found that by using the conference method, in which specific cases are dis cussed, supervisors are able to learn a great deal about how to deal with difficult human situations. Even if their own capacities in this respect have not been altered, they have at least learned what is expected of them along these lines.

Industrial experience indicates that it is not possible to depend upon training by the supervisor alone. At various times there have been swings

of the pendulum from the extremes of the central school on

the one side training on-the-job by supervisor to the exclusive the at the other end of the swing. The best opinion today confirms the need for a well-rounded program combining both central instruction and teaching by the supervi

There are certain skills and blocks of subject matter which cut across line activities, and which can best be taught in central classes. These include most of the clerical and office operations and routines. Care should be taken to see that centrally conducted classes are well integrated with sors.”

supervisorial

instruction,

and that the supervisors regard them as a service rather than an infringement upon their prerogative.”

One of the most interesting ventures is the Institute for Training in Municipal Administration conducted by the International City Managers' Association. The offering consists of a series of correspondence courses in such subjects as personnel, finance, public works, police, fire, welfare, and municipal

administration. While the basic approach for the first few years was individual home study, there have been recently some experi ments with regional group meetings, where the subscribers to the courses meet in conference discussion. The Institute's courses have been used as the basis for police and fire in-service training.” \

The Zone School.-A widely used method of taking training to the field services of the federal government and to the smaller municipalities is the zone school. Instructors are sent to some central community and the trainees come in to that center to attend courses. The school may consist of a short course where the trainees stay for several weeks. The purpose

of the zone school is to bring additional training opportunities to those em ployed in regional areas or local communities where the trainees are too few to justify a special local training program. It should not in any way be

*

Cushman, Training Procedure, pp. 98–121; A. M. Simons and Henry Post Dutton, Production Managemen: (American Technical Society, Chicago, 1940), Chs. XIX, XX; Walter Dill Scott et al., Personnel Management (McGraw-Hill Book Co., Inc., New York, 1941), Chs. XXI-XXIII. Committee on Employee Training in the Public Service, op. cit., pp. 38–40. ** James S. Dean. “In-Service Training for Command Officers,” Public Management (August, 1940), Vol. XXII, pp. 238–240.

*

-

PERSONNEL

344

[Ch.

21

considered to supplant the on-the-job training given by local supervisors.” State leagues of Municipalities have held such schools in New York, ginia, and Michigan. The Federal Bureau of Investigation conducts zone

Vir

schools for municipal police departments. The schools of philosophy held for the higher officials of the field service of the Department of Agriculture in several parts of the country constitute another version of the zone school. The same is true of the Institute of Government held for one week each year by the University of Southern California.” In 1936 Congress passed the George-Deen Act which extended the visions of the Smith-Hughes Act to public service occupations.”

pro This

meant that federal grants-in-aid

to the states for vocational education were now extended to cover training for government employees. The grants are controlled administratively through the United States Office of Education and the various state boards of vocational education. The result is that the State Departments of Education have established within their Divisions of Vocational Education units specializing on public service occupations.” SELECTED READINGs BOOKS AND MONOGRAPHS

w

Appley, Lawrence A. The Human Element in Personnel Management. (Society of Personnel Administration, Washington, D. C., 1941), 34 pp. (Harper & Bros., New York, 1940). Beckman, R. O. How to Train Supervisors. 305 pp.

Bemis, George W. Internship Training for the Public Service in Los Angeles County. (Bureau of Governmental Research, University of California at Los Angeles, December, 1939, mimeo.), 46 pp. Paper Report Training British Command 6525. of the Committee on the of Civil Servants. (His Majesty's Stationery Office, London, 1944), 34 pp. Brookings Report to Byrd Committee. Investigation of Executive Agencies of the Government. 75th Cong., Senate. Report No. 1275 (Government Printing Office, Washington, D. C., 1937), pp. 709–816. Committee on Employee Training in the Public Service (Milton Hall, Chairman). Employee Training in the Public Service. (Civil Service Assembly, Chicago, 1941),

172 pp.

Comptroller

General, The. Schools and Training Courses in Government 76th Cong., 3d sess., Senate Doc. No. 182. (Government Printing Washington, D. C., 1940), 42 pp.

ments.

Depart Office,

230 pp.

Egger,

Rowland

Andrews,

Baumes, Harold

I.,

Cushman, Frank Foremanship and Supervision. (John Wiley & Sons, New York, Rev. ed., 1938), 286 pp. Cushman, Frank. Training Procedure. (John Wiley & Sons, Inc., New York, 1940), and

Uhl, Raymond.

Training

for

of

2,

of

B,

8,

of

§

C.

S.

U.

82

of

R.

*

**

20

in

1.

p.

in

* **

Cushman, Training Procedure, pp. 112–114. Training Police Command Officers,” Public Management (Sep “State Aids Cities tember, 1940), 277; Rowland Andrews Egger, Harold Baumes, and Raymond. Uhl, Training for Public Service Virginia (Bureau University Public Administration, Virginia, Charlottesville, 1937, mimeo.), Series No. 88 pp. 49 Stat. 1489; A. 15m (June 1936). Jerry Hawke, Training For The Public-Service Occupations, Office Education, United States Department the Interior (Government Printing Office, Washington, D.C., 1937), Vocational Education Bulletin No. 192, pp.

-

Ch.

IN-SERVICE TRAINING

21]

345

7 in

as

an

of

A.

J.,

19

of

to

in J.,

Public Service in Virginia. (Bureau of Public Administration, University of Virginia, 1937, mimeo.), Series B, No. 2, 88 pp. Furia, John and Winson, Harold A. Spending Money Save Money: In-Service Training, Civil Service Commission, New Training New York City. (Bureau York, June, 1940), pp. Furia, John Hoopingarner, Newman L., and Winson, Harold “The Use Training Administrative Tool by Top Management,” Case Reports Public pp. Administration. (Public Administration Service, Chicago, 1942), No. 76, Graham, George A. Education for Public Administration. (Public Administration Service, Chicago, 1941), pp. 258–295. Training for the Public Service Occupations. Office Education, Dept. C., the Interior. (Government Printing Office, Washington, Vocational Education Bulletin No. 192), 82 pp. Municipal Administration. Municipal Finance Administra Institute for Training Municipal Administration, Chicago, Rev. ed., tion. (Institute for Training

of

D.

of

R.

in

in

S.

U.

Hawke, Jerry

-

1941), 410 pp.

of

S.

in

of

in

55

in

59

in

71

of

in

1.

&

of

by

of

B.

26

D.

P.

U.

Training Program. Forest Service, Keplinger, Dept. Agriculture. C., 1940), pp. (Government Printing Office, Washington, Lambie, M. Training for Public Service. (Public Administration Service, Chi cago, 1935), No. 49, 49 pp. History, Economics, Moses, Robert. “The Civil Service Great Britain,” Studies Faculty and Public Law, Edited Political Science Columbia University. (Longmans, Green Co., New York, 1914), Vol. LVII, No. National Industrial Conference Board. Selecting, Training and Upgrading Super visors, Instructors, Production Workers. (Studies Personnel Policy, New York, 1941), No. 37, 72 pp. Company Problems. National Industrial Conference Board. Training Solutions pp. (Studies Personnel Policy, New York, 1940), No. 18, National Industrial Conference Board. Training White Collar Employees. (Studies pp. Personnel Policy, New York, 1941), No. 36, New York Civil Service Commission. Training New York's Employees. (Munic

D. A

to

D.

of

pp. ipal Civil Servise Commission, New York, 1940), Quartermaster General. Handbook for the Director Civilian Training. (War Department, Washington, C., 1943), 104 pp. Schweinitz, Karl de, and Larson, Neola. Training for Social Security: Report C., 1943), the Social Security Board. (Social Security Board, Washington, 49 pp.

No.

75,

8

al.

in

et

Scott, Walter Dill, Personnel Management. (McGraw-Hill Book Co., Inc., New York, 1941), 589 pp. Roy W. “An Induction Program for New Clerical Employees,” Case Stephens, Reports Public Administration. (Public Administration Service, Chicago, 1942), pp.

1939),

19

12,

E.

May

Walters,

J.

in

United States Civil Service Commission. The United States Civil Service Commis 'sion's Part Federal Training. (Government Printing Office, Washington, D.C., pp.

(The Ronald Press Co., New York,

Personnel Relations.

-

284–305.

1945),

pp.

by

D.

War Manpower Commission. Training Within Industry Materials. (Collected TWI Bulletins, Government Printing Office, Washington, C., 1945), separately paged. Wilmerding, Lucius. Government Merit. (McGraw-Hill Book Co., New York, 1935), pp. 67–68.

(March,

of

“An Appraisal the Internship Program.” Personnel Administration pp. 8–12. Vol. “In-Service Training for Command Officers.” Public Management

1940),

2,

J.

Bellows,

R.

PERIODICALS

S.

Dean, James (August, 1940), pp. 238–240.

PERSONNEL

346

[Ch.

21

“TVA Experiments with Internship.” American Iibrary Asso ciation Bulletin (March, 1940), Vol. 34, pp. 163–169. Jaffe, Louis L. “The Reform of Federal Administrative Procedure.” Public Admin istration Review, Vol. 2, pp. 141–158. Jarz, Emil F. “How City Managers Train Apprentices.” Public Management (May, Harris, Helen M.

1939),

Vol.

21, pp. 134–137.

Kellner, Clarence A. “Census Bureau Trains Its Staff.” National Municipal Review (February, 1940), pp. 111–115. Lehman, W. P. “The Management Training Conference Plan.” Public Personnel Review (April, 1942), Vol. 3, pp. 138–144. McGlothlin, W. J. “Union-Management Adminstration of Employee Training: the Experience of TVA.” Advanced Management (April, 1943), Vol. 8, pp. 38–44. Murphy, L. V. “The Comptroller General and Training.” Personnel Administration (June, 1940), Vol. 2, pp. 16–22. Olson, Emery E. “Training Programs for Government Employees.” Personnel Journal (February, 1937), Vol. 15, pp. 283–285. Reining, Henry, Jr., and Stromsem, Karl E. “An Approach to Public Service Train ing: Government Internship. Public Personnel Review (July, 1942), Vol. 3, pp. 190–199.

-

United States Department of Agriculture, rently issued, variously paged).

Graduate School.

Bulletin of Courses

(cur

PART FIVE FINANCE

CHAPTER

22

FINANCIAL ORGANIZATION The Finance Offices An understanding of the elements of financial administration must be based upon an over-all conception of the functions performed by the several financial officers. Hence, a discussion of financial organization should be prefaced by a brief description of the half-dozen fiscal officers commonly found in the United States. It should be borne in mind that these officials

all

may not be found by the specific name used here, although an attempt has been made to utilize the most common terminology; nevertheless, the func

to

it

of of

government. tions described are performed by someone on levels The accompanying table sets forth the activities the fiscal officers, combining brevity with sufficient detail. Suffice say here that the six

goods.

of

of

of

:

of

main financial functions consist (1) accounting, (2) treasury opera prop tions, (3) budget planning and investigation, (4) the assessment erty, (5) the independent audit, and (6) the procurement and warehousing

on

Financial Organization and Procedure is

levels philosophy

practically characteristic-of financial organization government disintegration. the United States extreme The

in

The distinguishing of

all

General Characteristics

of

of

of

a

is

do

in

an

of

of

to

with fiscal affairs, and this has resulted the securing adequate one against the other the hope

who have

of in

system

of up

any and setting

all

of

up

to

of

divide and rule seems have actuated the thinking those may responsible setting who have been for the institutions for the apparent deeply ingrained distrust administration finance. There

in

of

checks and balances. One the most notable results has been the popular election financial officers state and local government.

to to

of

in

of

in

is

is

is

to

by

Elective Officers.-State auditors, comptrollers, and treasurers are fre quently selected popular vote, often having stand for reelection every years; two and the same true similar officers the cities and counties. strongly opposed Professional opinion this manner selection. The opposition reason for this not difficult see when one realizes how ex tremely backward the elective officers have been adopting and installing modern accounting systems and procedures. 349

Because they have been

poli

1. 2.

3. 5. 6. 7.

Issues payment war rants for local govern ments. Issues covering (transfer) warrants for national government.

in

of

.

4. 25.

office.

Activities

the

Six

Sometimes combined with personnel.

with

accounting

tions departments. Sometimes combined

.

Figure

.}. to

warrants.

of

Pays

to

operations. recommenda

of

veys Makes

4. Fiscal

Officers

Make audit. Makes m

AUDITOR

post

tions based on findings post-audit.

recom

a d n e up

AGENT

Buys materials and supplies. Supervises depart mental purchasing. Approves specifica tions. Keeps general stores. Supervises depart mental stores. Salvages equipment.

PURCHAs.ING

-

in

(b) Deposits banks. Supervises departmen tal collections. Debt service: (a) Issues bonds. (b) Pays bonds. (c) Sinking funds. Estimates of revenue. Special assessment col lection.

all

1.

securi

3.

property, both personal and real, for tax purposes. 2., Prepares tax maps. Prepares tax rolls. tax Prepares Statements.

Evaluates

Assessor

s

funds:

of BUDGET

Budget planning. Preparation annual budget. Investigates and re ports executive and legislature on current matters involving rev enue and expenditure. Makes exhaustive sur

DIREctor

1.

2.

Custody (a) Invests ties.

Collects taxes. Collects miscellaneous revenues.

TREASURER

1.

(a) Installs systems. Budget control: (a) Pre-audit. Reports: (a) Revenues. (b) Expenditures. Administrative audit.

Keeps general accounts. Supervises departmen tal accounts.

CoMPTRoLLER

§

:

8.

f

3. 4. 5. 6. in

2.

of

FINANCIAL ORGANIZATION

Ch. 22]

351

ticians rather than professionals, they have not understood these systems and have frequently forestalled the employment of those who did in order to shield their own weaknesses. The popular assumption that election will produce honesty is hardly borne out by the facts, for the number of defal cations among elected officers is fully as high as among others. This is the result of their own ineptitude at installing and operating the internal checks which go with an acceptable accounting system. The follow partly

ing summary statement

sets

forth the chief reasons why it is inadvisable to

select fiscal officers by popular election. 1.

2. 3.

If

elective—

They are politicians rather than administrators. They lack professional qualifications. They contribute toward making an uncoordinated,

disintegrated

financial structure.

:

They They They They They

do not cooperate with other staff officers. are more apt to default. are hard to bring under a system of internal control. unfairly criticize other officials to keep themselves in office. are not policy-forming officers.

Poor Coordination.—The lack of coordination

disintegrated

among the various

structure leads to a This is especially true

financial

officers.

Very frequently the elected comptroller, or treasurer, has gone into office on a platform criticizing the administration and promising to clean up the city hall. This sort of .cam paign has an appeal to the American voter who has been led traditionally td distrust those who have charge of the expenditure of public moneys. There is no doubt that a certain amount of this attitude may be justified where there are one or more elective officers.

ELECTORATE

COLLECTOR

OF

COMPTROLLER

PERSONAL

TAx

COLLECTOR

Figure

TAXES

BOARD

OF FINANCE

26.

MAYOR

TREASURER

BOARD OF

BOARD

S|NKING FUND COMMISSIONERS

Disintegrated Financial

TAx

OF

COMMISSIONE

Structure

352

FINANCE

e

[Ch.

22

at times, but it has the disadvantage of acting as a bar to the type of man agement coordination which is essential to good administration. The elec regards tive officer himself as a critic of the administration with the result that his aloofness prevents the adoption of the internal checks now thought to be so necessary to well-articulated and competent accounting procedure.

The poor coordination of financial administration so characteristic of American practice is largely due to a confusion of thinking relative to the Popular thinking has de distinction between accounting and auditing. manded the democratic “watchdog,”

and this is to be highly commended.

He

fact,

hybrid who fails

fulfill ade

to

states.

a

in many cities and

is,

arose when it came to writing the functions of a “watchdog” into law, for the “watchdog” was too often given adminis trative control. This is very well exemplified in the person called auditor

in

However, confusion

of

of

management, the Since accounting function power authority accounting systems latter should have the and install accomplish purposes. Accounting should and internal checks necessary performed by independent management. The not someone who auditor,

of

it of

be

independent fiscal officer should

an is

be

to

its

to

a

is

systems and procedures.

to

he

or

of

quately the functions either accounting officer auditor. Because the already adequate accounting above, reasons mentioned fails install

to

to

is

and the function already performed the auditor check financial transactions see that they are accurate, legal, and honest. in

be

it

an

he is

of

of

be

to is

in

of

quite evident The confusion just referred the case the Comp greater troller General the United States. His status will considered detail below, but for purposes the present discussion should said

which would characterize him

as

of

he

has never set up the type

controlled accounting the chief

very widespread control and influence over the exercises daily expenditures governmental agencies. His manner operation known the “settlement and adjustment” approach rather than that

of is

of

as

of

a

he

officer, yet

doing

so

and expenditures. accounting system

In

to

or

he

to

independent fiscal officer theoretically responsible Congress. that Nevertheless, has been given has assumed powers over departmental expenditures and actually proceeds settle and adjust claims, obligations,

the independent audit." in

of

of

is

Contrast with British Treasury System.—This direct contrast with the organization the fiscal services the British National Govern is

of

of

of

ment where accounting and expenditure control are the responsibility strongly one the chief ministers the government. The principle

H.

Marquis, “The Conduct Lilienthal and Robert Business Enterprises Government,” Harvard Law Review (February, 1941), Vol. LIV, 577

ff.

p.

of

E.

David the Federal

*

by

a

of

recognized that accounting and expenditure control are functions man agement. While there does exist very effective auditing officer responsible

Ch.

22]

FINANCIAL ORGANIZATION

353

to the House of Commons, he does not in any way overstep the bounds of an auditing officer and assume powers of control. American students of government finance should become acquainted

with the status and functions of the British Treasury. The whole financial administration centers in this venerable institution which is one of the principal executive departments. The Treasury has a far-reaching control over the housekeeping activities of all of the administrative establishments. In budget making, the Chancellor of the Exchequer is assisted by the staff of the Treasury, which in reality is under his direction, in casting the

of the governmental departments and agencies into budgetary form. With the assistance of the Financial Secretary of the Treasury, he

estimates

defends the proposed budget on the floor of the House of Commons. In order to insure a balanced relationship between income and outgo in the proposed financial plan, the Chancellor of the Exchequer has the discretion

of revising the estimates, except when the revision obviously involves ques tions of general policy. In the event that questions of general policy are involved, he is usually required to discuss them with the Cabinet before proceeding to embody the changes in the budget document. A feature of Treasury supervision, which until very recently has been foreign to American experience, is the strict control of expenditure exer cised by this central fiscal agency. A British appropriation is not authority for a department to spend; it is pèrmission to spend, if necessary, with the permission of the Treasury.” The release of appropriations for depart mental expenditure is an executive matter because appropriations are made as grants to the Crown. The fact that appropriations are not made by Parliament to the spending agencies themselves gives the executive a real control over the rate of expenditure so as to meet anticipated revenue de ficiencies during the budgetary period. Thus, departmental expenditures are always made with the consent of the Treasury. In the great number of ordinary transactions this consent is presumed to be implied, but if there is any departure from customary policy or expenditure for new projects, the Treasury must be consulted.” When it comes to holding the executive to account on the budget, Parlia ment depends upon the Comptroller and Auditor General and the Public Accounts Committee. The Comptroller and Auditor General, who is inde pendent of the executive and responsible to the House of Commons, is the auditing and investigating agent, providing the House a means for check ing the financial

operations

of the executive.

Checking

the results

of

*In the English usage “authorization” and “voting” do not mean the same thing. Authorization of the estimated expenditures is performed by the House of Commons sitting as a Committee of Supply. This is done in mediately following the delivery of the budget speech by the Chancellor and several weeks before the expenditures are voted by the House in the form of an appropriation act. *\W. F. Willoughby, W. W. Willoughby, and S. M. Lindsay, The System of Financial Administration of Great Britain (D. Appleton & Co., Inc., New York, 1922), pp. 165–197.

FINANCE

354

[Ch. 22

expenditure

became the function of the House of Commons after 1861 following the institution of the Public Accounts Committee by Gladstone. The findings of the Comptroller and Auditor General's post-audit of the administrative departments and agencies are reported in detail to the Public Accounts Committee. This committee is appointed by the House at the beginning of each session to examine the findings of the Comptroller and,

if

necessary, to conduct hearings and examine accounting records.”

of

is its an

all

on

The Treasury prescribes accounting methods and systems, investigates gov practices, and in general has hands the pulse

administrative

of

It

by

a

of

in

finance counting

in

integrated department establishments. which are centralized budget formulation, budget control, ac control, treasury operations, and revenue administration. No Treasury. department can spend penny without the consent the Its con

ernmental business

in of

in

to

of

of

a

is

a

bureau,

with

administration

similar

in

Some students would establish role our federal government.

a

studied

an

be

the United States. Indeed, that type fiscal control integrated department emanates from finance the better type council-manager city rather close approach the British example.

well which of

it

is

of

of

as

to

of

approval even the examinations given the civil service commission, and such personnel functions classification and determina salary plans are directly under the Treasury. This brief description tion the British Treasury offered here because has features which might

trol extends

Integrated Financial Structure

by

is

of

of

The private consulting agencies which make surveys and formulate rec governmental units favor, almost ommendations for the reorganization largely’ unanimously, the integrated department finance." This view of

or

by on

of

to

in

of

in

gov government,” professionals concurred teachers the field research, agencies ernment and certain national and institutions devoted civic betterment. The unified department finance would contain bureaus

of

of

a

dictated

by

to

a

arrangement

is

said that such

an

is

officer.

It or

It

be

divisions charged with carrying the principal financial activities the government. single officer, either would headed director finance the comptroller, responsible directly the chief administrative sound practical on

of

E.

of

in

an

is

G.

C.

of

of 1,

of

of

is

p.

F.

in

be

in

°

It

C.

*

of

in

of

a

on

of

*

Much the information that went into the preparation the section the British comparative budgetary practices, see A. financial system came from recent source Buck, The Budget York, Today Co., 1934), Governments (The Macmillan New 394 pp. Rochester, New York, example integrated financial structure. The City City Manager Government Mosher, Frederick Rochester (Public Administration Service, Chicago, 1940), 77. danger should stated all fairness that some political scientists feel that there Reform,” extreme integration. W. Coker, “Dogmas Administration American Haines, “The Political Science Review (August, 1922), Vol. XVI, pp. 399–411; Academy General Structure Court Organization,” Annals the American Political and Social Science (May, 1933), Vol. CLXVII, pp. 5–8.

FINANCIAL ORGANIZATION

Ch. 22]

355

considerations and experience, not by doctrinaire theory. Executive author ity is strengthened; and there is a resulting tendency to eliminate red tape, prevent losses through bad management, and curtail extravagant expendi tures on the part of the operating departments. Cooperation of formerly independent units facilitates that degree of coordination essential to planned expenditure. Waste is thereby prevented by the maintenance of sound man agement methods on a uniform scale throughout each unit of the entire organization, thereby making municipal housekeeping a science." Coupled with this unification of fiscal operations should go the entrusting the public is fairly well health, school, and engineering the affairs of the

of their management to qualified experts. While accustomed to placing

CITY MANAGER | BOARD OF FINANCE (ADVISORY)

COMMISSIONER OF FINANCE

BUREAU

OF

AğNrs

confrol

Buſſau ||evgºav ||ASSESSMENT

Figure

27.

| TREASURY

||

-

BUREAU OF | | BUREAU of CONTRACTS The BUDGET AND AND

supplies ||PERSöNNEL

Integrated Financial Structure

units in the hands of professional

technicians, such has not been the case Prior to the depression years, certified public

withºfinancial

administration. accountants were rare in public offices. The fiscal affairs of governmental agencies were in the hands of persons with no special training or experience qualifying them for the task. Frequently they were downright amateurs

chosen for purely political reasons, while in other cases incumbents were presumed to be qualified because they had been shopkeepers, real estate agents, bankers, or were experienced in some other commercial activity.

Now it is coming to

be realized that more than mere mediocre success in callings modest business is essential to administer the financial affairs of a large city, county, or state. The administration of government finance is * Buck,

et al.,

Municipal Finance

(The Macmillan Co., New York, 1926), pp. 17–27.

[Ch.

22

body

of of

its

all

types

to

coming to be a science with a technique own, consisting procedures, systems, principles, and operations not familiar

of all a

-

FINANCE

356

-

as

be

is

successful business ventures. The result that only trained and experienced persons should auditors, treasurers, purchasing agents, and selected comptrollers.

of

to

whether integration

to

the financial single department under the chief executive will tend personnel. The counter proposition always advanced is

of

a

operations into secure this type

as

The question always arises

a of

political selection, and each financial officer, being interested

in

to

is

to

is

to

that such personnel would produce efficient administration irrespective integration. The answer this assertion that disintegration produces mediocrity; and popular election leads certain inertia which conducive

maintain

an

is,

a

is

in

in

of

ing his political fences, acts with that end mind. The integration operations financial not itself cure-all for this situation. While politi nevertheless, cal selection may still exist after integration, there in to

or

is

to

of

all

In of

or

A

to

to

recognize competence, largely due evitable tendency the fact that organization obstacles large portion coordination have been removed. inertia, above, the reasons for the stalemate referred removed. practically governmental units, irrespective the existence non

of

political motivations, individuals are present who are technically existence and professionally minded. They have seen, probably for years past, the

be

to

to

necessity for greater coordination. With the structural obstacles removed, they are able gradually and cautiously suggest and secure authority for taking the steps which they have known desirable.

a

to

of

to

of

is

also the further consideration that the government sometimes groups which actually desire comes into the hands make administrative improvements. Integration operation adopt financial enables them improved methods. During the last decade there has been decided advance

There

to

so

in

as

purchasing and accounting control. The advantages accru such fields ing are apparent that no incoming administration would dare abandon personali Frequently improvements specific them. these are identified with

is

of

in

an

to

popularly

these cases, removal

by

a

In

is

supposed have been built. incoming number administration would cause too much undesirable publicity, while other instances the increas ingly technical nature making those familiar financial administration

of

ties around whom the progress

to

any newly elected political executive. The slowly but surely forcing the recog science

that the advance technical competence

is

of

result

is

with operations indispensable

personnel,

spite

of

and eventually obtains—competent which politicians may muster.

in

of

It

an

is

in

of

financial officers. To what extent integration responsible financial for this? has furnished environment procedures. progress permits installation advanced Technical which the integration congenial mates; progress and are for technical insists upon—

nition

any opposition

FINANCIAL ORGANIZATION

Ch. 22]

357

of

in

all

in

a

It

be

of

of

of

be

be

of all

The authorities are fairly well agreed as to the main outlines of a munic ipal department of finance.” At the head should be the director of finance. In some cases the comptroller could be both the head of the bureau of accounts and director of finance. The four or five bureaus in the depart ment could be designated as: bureau of accounts; bureau of purchase and supply, or bureau of procurement; bureau of taxation; bureau of the treas ury; and bureau of the budget, or bureau of personnel, or even bureau of budget and personnel. The director of finance should be regarded as the chief financial officer of the city, to whom the council and executive should municipal fiscal matters. Under his look for advice and guidance on charge direct control would the heads the various bureaus rou operations. tine The comptroller would head the bureau accounts. This agency charged with keeping the general accounts would the city, with super vising departmental accounting systems, and especially with budgetary large share control operations. would necessarily have the prepara of

or

be

of

In

It

by

be

by

be

of

by

of to

as

a

It

of

tion all financial reports. would also maintain current audit municipal agencies and activities, furnish the administration and council with current information financial status, and compile data for the budget. The current check expenditures maintained the bureau independent post-audit. accounts should not confused with the This arranged for should the city council itself. should conducted

make

is

of

a

periodic check.” by

vate auditors

a

to

in

by

as

of

some agency absolutely independent the administrative branches. some states, such New York, Indiana, and Iowa, an audit cities pri many others the council engages made the state, while firm

of

by

of

of

of

of

be

of

of

the treasury, headed the treasurer, would collect, keep, and pay out the municipal funds only upon the authority the comptroller. taxation, under the assessor, would charged with the The bureau property, the taxing businesses, and the determination assessment the purchas purchasing, headed benefits and privileges. The bureau

The bureau

materials, supplies, the procurement equipment, and certain contractual services for branches the city gov printing. The ernment. This bureau should also have supervision over

or

all

of

all

of

of

ing agent, would have control

purchasing

agent should not enter into contracts place orders until the comptroller has certified that unencumbered appropriation balances are payment. available for their

pp. 17–27. -

survey reports Also -

readings -

at

of

is

al., Municipal Finance,

in

of *

See Buck chapter.

not prepared for the complete integration Long after the evils foregoing paragraphs. the loose finan

et

in

Public sentiment usually suggested

end

-

-

of

&

S.

C.

G.

*

(Harper Benson, Financial Control and Integration Bros., New York, 1934), pp. 50–55; Wylie Kilpatrick, State Supervision Local Finance (Public Adminis tration Service, Chicago, 1941), pp. 13–17.

FINANCE

358

[Ch.

22

cial organization are apparent, people fear that change might bring worse evils. Finally, however, it becomes evident that something has to be done; so, generally, the first step is the establishment of an independent budget and

(or) efficiency bureau. Nominally under the control of the executive

but independent of the other units administering finance, the budget bureau at first has only advisory powers. It prepares the annual budget for the chief executive, makes surveys of the operation of the various departments,

and reports on current matters affecting expenditure which have been re ferred to it for investigation. It has no coercive power, however; it can only recommend. These budget agencies come very near to exercising only pure staff functions. Examples are the federal Bureau of the Budget, the Bureau of Budget and Efficiency of the City of Los Angeles, and the Bureau of Efficiency of Los Angeles County. At first regarded with sus

to

control expenditure, was the case with the federal Bureau the Budget 1933. Perhaps the establishment the semi independent budget bureau merely one step leisurely movement toward general integration.

of

a

is

in

in

of

to

actual powers

is as a

to

In

of

all

picion, these bureaus have to prove their right to trust and esteem. Soon their services become so indispensable that financial questions are re tendency give budget agencies ferred them. times crisis there

a

on

of

is

to

some tendency among the states recommend and establish department, department finance, the former revenue distinct from the also constituting the state authority taxation. This department has

There

of

to

in

of

as

of

of

all is

of

to of

the collection taxes distinct from their custody. The objec give the director tive revenue responsibility for the administration reality are not incidental state tax and revenue measures which any regulatory functions the exercise the governmental body. This means that the director shall be vested with the administration of those charge

of

to

of

of

of

of

to

In

of

defray raising revenue revenue acts which are solely for the purpose public expenditure. this, example, department contrast for the licensing provisions finance would have charge the alcoholic liquor control act because the granting licenses and the collection license

is

in

in

This leaves

the treasurer

the

free

the huge administrative

of

custodian unburdened duties which go with the

nature.

the treasurer, usually

by

as

as

perform his task

as

to

of

The revenues collected are turned over department finance, soon collected.

regulatory to

any other function which

is

subordinate

to

is

in

of

on

to

of

regulating the alcoholic beverage industry. But, fees are incidental course, the department revenue could collect the excise tax alcoholic beverages, which many states, since that function usually done not

of

of

a

is

as

of

collection taxes. The treasury yet apparently, the not settled since there constituting are those who consider this agency division the depart revenue, rather than being integrally associated with the department ment and enforcement proper location

FINANCIAL ORGANIZATION

Ch. 22]

359

of finance. The reasoning behind the consolidation of tax functions and treasury functions is focused upon the factor of cash. The receipt of cash is both a treasury function and also a part of tax administration. Efficient and economical handling of tax collections suggests the desirability of having the collector serve as an agent of both the tax administration depart ment and the treasury department. This can best be brought about by placing the treasury in the revenue department and making provision for the inclusion

of

a comptroller

in the finance department.”

Because tax administration sometimes involves the making of rules and regulations and the hearing of appeals, the revenue department may be affiliated with the tax commission. The final report of the California Con

as

as

of

of

all

ference on Government and Taxation in 1941 proposed the establishment of a board of tax appeals in the Department of Revenue. This body would hear and determine appeals by taxpayers and other interested parties from assuming the equalization acts and decisions the director, well

of

of

a

of

in

of

Equalization. functions the present Board The board tax appeals would have other functions the event that the state assumed supervision property through over local assessments division local taxation.

of

of

to

of

in

or

in

be

to

in

It

be

prop would the responsibility the board order reassessments erty any counties which the division local taxation found assessment practices inequitable improper any respect.

The Departmental Finance Setup

a

in of

of

to

is

it

be

by

Because professional thought tends advocate the integration, finan organization, cial should no means concluded that such integration good deal must include complete centralization. There financial administration which must be decentralized and carried on the line

be

in

at

in

departments, both headquarters and the field. The budget estimates originate department, must the and the statistical and accounting systems necessary for this purpose must maintained there. Immediate accounting

for budgetary control has in

circumstances controversial,

by

be

is

to

of

be

to

to

and how much

largely decentralized. The question when decentralize financial operation one decided the Admitting particular problem may each situation. that the

of

be

a

to

of

become

the large federal departments the finance officer has tended recent years one the high ranking departmental personages,

in

In

tine.

an

of

be

no

organi dodging there seems the point that when size, zation achieves certain there must some decentralization accounting, bookkeeping, and statistical and reporting operations and rou

/

of in

of

31

of

of

to

1,

to

19

of

For further consideration the proposed organization for financial administration California, cf. California Conference on Government and Taxation, Interim Committee Twenty-five. Final Report the Governor and Legislature California (1941), 90 pp.; and Griffenhagen and Associates, State Organization for Financial Administration, Report Twenty-five No. the Interim Committee the California Conference on Govern pp. ment and Taxation (October, 1936),

w -

FINANCE

360

[Ch. 22

as

department

as

Budget and Finance.”

a

Office

In

was

of

its

sometimes quite close to the secretary. A recent study of budgetary admin istration in the Department of Agriculture demonstrated how important large

Agri

of

an

of

business and finance has

intimate

in

in

bureaus, where the person charge powerful place management. and

of is

culture, the various bureaus have their own business managers and units for financial operations. The same true the regional offices the

SELECTED READINGS

York,

1934),

394 pp.

E., and others.

A.

Buck,

Financial

Control

Today.

of

Governments

Municipal

(Harper

and Integration.

pp. 7–14.

The Budget

E.

A.

Buck,

1934),

in

York,

&

Benson, George

S.

C.

BOOKS AND MONOGRAPHS Bros., New

(The Macmillan

Co., New

(The Macmillan Co., New York, 1926),

Finance.

pp. 8–30.

F.

-

to

1940),

in

of

&

in

A.

31

of

of

to

1,

&

E.

(Harper Buck, A. Bros., New York, 1929), pp. 431–451. Public Budgeting. Griffenhagen and Associates. State Organization for Financial Administration. Report No. Twenty-five the Interim Committee the California Confer pp. ence on Government and Taxation (October, 1936), Hansen, H. State and Local Finance the National Economy. (W. W. Norton Co., New York, 1944), 310 pp. Herlands, William B., and Forbes, Russell. Administration Municipal Printing New York City. Report Honorable H. La Guardia (officially published, 212 pp.

of

Agri

1936),

L.

H.

58

in

B.

Lewis, Verne Budgetary Administration the United States Department pp. culture. (Public Administration Service, Chicago, 1941), Lutz, Public Finance. (D. Appleton-Century Co., Inc., New York, 928 pp.

&

S.

61

of

F.

on

28

to

of

A

National Municipal Leºgue. Model City Charter. (National Municipal League, New York, 5th ed., 1941), pp. 36–45. Navy Department—Bureau Supplies and Accounts. Selling the Navy. (Govern pp. ment Printing Office, Washington, D. C., 1940), Neff, A. Municipal Finance: With Emphasis Trends Since 1900. McGuin Publishing Co., Wichita, Kans., 1939), 330 pp. Nicholson, Joseph W. County Purchasing. Purchasing (The National Association Agents, New York, 1940), pp. Porter, Kirk H. State Administration. Co., New York, 1938), (F. Crofts 450 pp.

1,

B.

to

of

-

of

58

in

Lewis, Budgetary Administration Verne the United States Department pp. (Public Administration Service, Chicago, 1941),

culture

B.

**

11

on

of

in

of

of

D.

of

Seckler-Hudson, Catheryn. Budgeting: An Instrument Planning. (American Uni versity, Washington, C., 1944–45, mimeo.), six volumes. Short, Lloyd M., and Tiller, Carl W. The Minnesota Commission Administration (University and Finance, 1925–1939: An Administrative History. Minnesota Press, Minneapolis, April, 1942), Studies Administration No. 160 pp. Simons, A. M., and Dutton, Henry Post. Production Management. (American Tech nical Society, Chicago, 1940), 597 pp. State New York Department Public Works. Special Report the Legislature Regarding Waste Lyons Contract Bonds for State Building Projects. (J. Co., Albany, 1935), pp.

Agri

FINANCIAL ORGANIZATION

Ch. 22]

361

Tennessee Valley Authority. County Government and Administration in the Tennessee Valley States. (Government Printing Office, Washington, D. C., 1940), pp. 29–53. Bill, 1941. Hearings Before Treasury and Post Office Departments Appropriation the Subcommittee on the Committee on Appropriations, United States Senate. H. R. 8068, 76th Cong., 3d sess., 184 pp. (City Upson, Lent D. (Ed.). The Government of Cincinnati and Hamilton County. . Survey Committee, Cincinnati, 1924), pp. 57–188. Willoughby, W. F. The National Budget System. (Johns Hopkins Press, 1927), pp. 39–47.

Willoughby, W. F. 1927),

Principles

of Public

Administration.

(Johns Hopkins

Press,

pp. 52–80, 427–655.

Willoughby, W. F., Willoughby, W. W., and Lindsay, S. M. The System of Financial Administration of Great Britain. (D. Appleton & Co., Inc., New York, 1922), 361

pp.

PERIODICALS

“A City's Chief Financial Officer Should Be Appointed by the Man Comptroller (February, 1931), Vol. 3, No. 3. Pfiffner, John M. “The Los Angeles Bureau of Budget and Efficiency.” National Municipal Review (February, 1932), Vol. 21, No. 2, pp. 107–109. Sparlin, Estal E. “Printing Scandals Investigated.” National Municipal Review

Ludwig, C. C. ager.”

(April,

Upson,

1941),

Vol.

Lent D., and National Municipal 119–132.

30, pp. 204–210.

Rightor, Review

C. E. “Standards of Financial Administration.” (Supplement, February, 1928), Vol. 17, No. 2, pp.

-

CHAPTER

>

23

FEDERAL FINANCIAL ORGANIZATION It

to discuss the organization of the federal fiscal encountering, functions without head on, the controversy surrounding the powers of the General Accounting Office and Comptroller General. Three seems

impossible

four large defects of fiscal management pointed out by the Presi dent's Committee on Administrative Management had to do directly with this office. These defects, the first of which has now been -fairly well taken care of, are: of

the

(1) the inadequate staffing of the Bureau of the Budget; the vesting in the Office of the Comptroller General, which is not responsible to the President, of the settlement of claims, the final . . .

(2)

determination concerning the uses of appropriations, and the prescrib ing of administrative accounting systems; (3) the absence of a truly independent and prompt audit of the financial transactions of the Government, whereby the Congress may hold the Executive Branch strictly accountable; and (4) the failure to devise and install a mod ern system of accounts and records."

The Comptroller General The Budget and Accounting Act of 1921 established the General Ac Office headed by the Comptroller General. The office is filled

counting

through appointment by the President, with Senate approval, for a term of fifteen years, no incumbent to succeed himself. The position has always been surrounded by considerable controversy for several reasons. In the

first place it took over the functions performed by the six Auditors of the Treasury, who had for decades settled claims and accounts and exercised controls. Secondly, the first Comptroller General, Mr. McCarl, was a posi tive and aggressive person who developed the office along the lines of exer cising a great deal of control over the settlement of claims, and hence the allowance of expenditures made by the departments. Thirdly, American practice has always been confused in the distinction between accounting and auditing, and this confusion was undoubtedly permitted to enter the think ing of those responsible for the Budget and Accounting Act of 1921.

Whatever the

causes may be, the fact remains that the General

Report * President's Committee on Administrative Management, Printing Office, Washington, D. C., 1937), p. 15. (Government

•

362

with

Accounting

Special

Studies

FEDERAL FINANCIAL ORGANIZATION

Ch. 23]

363

its

Office exercises very real and widespread influence over the details of ex penditure, as will be indicated from the following discussion of functions. Comptroller countersigns by The General the warrants issued the Secre

in or

a to

a

he

do

to

of

by

of of

a

in

far-reaching responsibility settling officer has recovering debts due claims individuals against the United States and personal collecting the United States. He audits and settles the accounts

This

of

in

of

expenditures.

of all so

the Treasury.” He renders advance decisions relative the legality proposed expenditures, and these decisions now run into score volumes which are constantly consulted federal fiscal officers parts pre-audit so, the nation. When requested makes

of

tary

of

is

to

and disbursing officers. The Comptroller General has far-reaching investi gating and auditing powers. He prescribe forms, sys also authorized tems, and procedures for the accounting systems the several depart ments.”

to

an

an

In

be

by

is of

in

is of

as

in

jo

of

The critics the setup have almost unanimously taken the stand that the Comptroller General should not exercise current budgetary control author ity, but should confine himself independent post-audit, reporting Congress way much the same does the Comptroller and Auditor Gem Chapter 22. The eral Great Britain, whose functions are discussed point expenditure within the appropria made that the determination previously Congress tions set forth executive function, the respon sibility for which should placed squarely upon those responsible for carrying out administrative activities. other words, budgetary control be

management function which should not divorced being placed under independent agency.” The an

by

is a

and accounting from management

of

a

in

by

to

of

on

the Comptroller General go state that the concepts followed twenty years positive and that office for the last have not resulted integrated system budgetary accounting control. The provisions author

critics

to

in

of

by

to

by

?f

in

of

izing the installation fragmen accounting systems have resulted only tary improvement. From the beginning certain the line departments, notably those concerned with defense, refused abide the post-settle Comptroller successfully ment claims made the General and defended legal actions. The Comptroller General had depend upon themselves

no

as

of in

a

of

as

to

to

of

inaugurate suits the Department Justice recover the claims disal lowed, with the result that aggressive prosecution was not forthcoming constituting himself all instances. The McCarl attitude wielder

C.

*

a

of

F.

E.

*

of it in

he

the event that the

of

a

to

is

is

it

As far

in

2.

known, there possible writ suitable remedy other than manda Comptroller General should refuse countersign the warrants for disciplinary purposes. Although the past ten years has not exercised this power beyond highly critical situation. Cf., ibid., pp. occasional threats, actual use would produce 180–181. Bartelt, Accounting Procedures the United States Government (Public Ad ministration Service, Chicago, 1940), pp. 141-143. Harvey President's Committee on Administrative Management, op. cit., pp. 21–25. Mansfield, The Comptroller General (Yale University Press, New Haven, 1939), 303 pp.

mus

FINANCE

364

[Ch.

23

a “big stick” over the details of departmental expenditure left a bad im pression with many of the departments. What federal practice needs more than anything else is a well-integrated and constructive system of budg etary accounts. This can be achieved only by giving the authority to some agency which is in a position to secure the willing cooperation of the spend ing departments. It cannot come as an imposition from the outside by someone whose philosophy is actuated by the “cracking down” spirit."

There is not nearly

of the Comptroller General's office ago. Comptroller General Warren, the pres

as much criticism

today as was the case a decade ent incumbent, has fully understood the desirability for coordination of the General Accounting Office with the Treasury Department and the Bureau

of the Budget, and has pursued

to

in

by

it.

policy of consultation a conciliatory whenever circumstances required Thus the once potentially explosive relationship between the Tennessee Valley Authority and the General Ac counting Office has been replaced better understanding and cooperation. Furthermore, recent years interdepartmental committees have tended

pursuance

of

of

to

develop uniform reporting

in

of

of

an

reduce any standoffishness that may have existed between the three fiscal agencies; example being the committee representatives the Bureau Treasury Accounting Budget, Department the and General Office set up Executive

Orders 8512 and

to

Prior

1921

the Budget

the federal gévernment

executive budget. The collect departmental requests

had

of

a

of

to

to

of

the Treasury was authorized appropriations for and transmit them the Congress, but this was merely compilation budget. The Act estimates and not 1921 provided for Secretary

a a

Bureau

no

of

9084.6

its

a

be

it

of

in

of

the Budget, nominally the Treasury Department, but actually under direct presidential supervision. For the first fifteen years exist greatly understaffed, ence was with the result that its recommendations thorough investigation. could not based upon Bureau

It

it of

to

of

see that manpower

ceilings are observed. T.

of

and control the administration appropriations, and ments

duty supervise control power through the budget through quarterly apportion

to

been given some administrative

its

do

to

an

to

of

of

in

of

prestige, influence, and The Bureau the Budget was augmented staff during the decade the 1930's. was transferred from the Depart ment the Treasury the White House staff, and the Director developed intimate association with the President. The primary duties the Bureau have with budget planning and preparation. However, has

of

by

a

p.

F.

of

C

of

*

*

General, see Daniel Selko, The For more favorable view the Comptroller Federal Finance System (Brookings Institution, Washington, D. C., 1940), 606 pp. Budgeting: Catheryn Seckler-Hudson, See documents surrounding this question Planning and Management (American University, Washington, An Instrument D. 1944–45, mimeo.), Unit VI, especially testimony Bartelt, Mr. Edward 79.

all

FEDERAL FINANCIAL ORGANIZATION

Ch. 23]

In addition to collecting

365

is

in

a

is

There also Division engaged primarily administrative administrative

research and advice and counsel

of

Division the result the absorption Board into the Bureau the Budget." described the following chapter.

be

the former Central Statistical The budgeting function will

in

of

is

The Statistical Standards

methods.

of

of

the improvement

Administrative Management which on

legislation.

of

a

of

varieties fiscal information for the President, Legislative Reference Division which clears and coordi the Bureau has nates the executive's relations with Congress on pending and proposed

of

the Treasury

is a

huge administrative machine the treasury nature rather than being con

a

which are budgetary cerned with control. The revenue administration

of

of

the Treasury

of

The Department primary functions

of

The Department

the nation

of

A

as

of

in

in

is

the administration the circulation the United States. The Comptroller charged with matters having do with the national to

is

of

the Currency

sec

of

of

United States constitutes one the chief units Treasury large ond classification activities currency and money

this department.

in

of

is

in

concentrated the Treasury such units the Bureau Internal Revenue and the Bureau of Customs. The Office of the Treasurer of the

of

banking system. The Bureau paper money, while the Bureau

Engraving and Printing manufactures the

is

of of

to

of

In

it

as

is

of

of

the Mint coins the metal money. primarily concerned with the public The student administration Treasury Department relates administrative control over the other departments government. the other words, how the Department the Treasury concerned with the normal day-to-day financial operations the great spending departments? The Treasury units primarily concerned a

in

by

a

of

Commissioner Bookkeeping

Accounts

and Deposits

of

Office

of

a

at

of

be

to

in

this connection were regrouped and reorganized 1940 under the Fiscal Secretary, Service headed Fiscal Assistant career man under salary $10,000 per year.” The following existing units civil service were placed under the new Fiscal Service.

Division

Deposits

-

of

Division and Warrants Division of Disbursement

of Public Debt Loans and Currency D.

Division

of

of

Surety Bonds Section Office of the Commissioner

in

of

54

p.

7,

4,

*

19

of

a

at

of

D.

of

I,

of

of

a

*

Smith, For discussion the work done by the Bureau the Budget, see Harold pp. “The Bureau the Budget,” Public Administration Review (Winter, 1941), Vol. 106–115; Harold Smith, “The Role the Bureau the Budget Federal Administra tion,” An address given joint meeting the American Political Science Association pp. and the American Society for Public Administration, December 28, 1939, 1940), Vol. 2107; Federal Register (June Stat. 1231 (1940).

FINANCE

366

[Ch.

23

*

Register of the Treasury Division of Public Debt Accounts

and Audit

Division of Savings Bonds Division of Paper Custody Office of the Treasurer of the United States The new arrangement called for their grouping under four main units: Office of the Fiscal Assistant Secretary Office of the Treasurer of the United States Bureau of Accounts

-

-

Bureau of the Public Debt

Federal Accounting Control The Commissioner of Accounts wrote in

1940 that

is not in the Federal Government today a master set of which reflects all financial transactions of the Government. For the most part the accounts are kept in 175 different administra tive agencies, and . . . on various bases. The accounts in the admin istrative agencies are designed almost exclusively for the needs of the respective operating units. They are not correlated with the central financial accounts of the Treasury and, therefore, are not designed to control the financial affairs of the Government as a whole.” . . . there

accounts

It

was precisely this situation which led to the promulgation of Executive Order 8512, dated August 13, 1940, which contemplated the establishment under the Bureau of Accounts of a complete system of central accounts

for the entire government.”

Inasmuch as the installation of these central accounts is not complete, it seems appropriate to review briefly the status at the time of Executive Order 85.12, in 1940, as amended by Executive

Order 9084 in 1942. The Division of Bookkeeping and Warrants of the Treasury Department kept central accounts of receipts, appropriations, and expenditures. The accounts had to do only with warrants issued by the Secretary of the Treasury and countersigned by the Comptroller General. other accounts were kept by the Treasurer of the United States and the various disbursing offices. Budgetary control accounting was done in the departments themselves both in Washington and in the field offices. The Comptroller General also kept certain accounts needed for his function Certain

of approving warrants and auditing accounting of the federal government,

The appropriation control the details of which were done in the spending departments themselves, has not been unified and integrated. The Treasury Department did not have the authority to inaugurate and operate * Bartelt, Accounting ** Federal

Register

Procedures

(August

15,

claims.

of the United States Government, 1940), Vol. 5, p. 2849.

p. 49.

•

Ch. 23]

-

FEDERAL FINANCIAL ORGANIZATION

367

the federal government. The Budget and Accounting Act of 1921 might have been interpreted to devolve that responsibility upon the Comptroller General when it gave him the power to install uniform systems and procedures. However, as has been a unified

accounting

system throughout

control

indicated above, the motivation of that office had in the past been negative, characterized by the suspicion of the “watchdog,” rather than by positive and constructive leadership in fiscal affairs. The general result was that the federal government was in need of considerable improvement in the direction of arriving at a constructive and unified system which would give adequate control and an accurate over-all picture of current fiscal results. Executive Order 8512 was designed to remedy this need by coordinating federal accounting through a central system of summary accounts without centralizing the details of accounting. The objective is not to exercise cen

of

of

all

tral control over departmental fiscal administration, but rather to furnish the President and Congress with a true picture of fiscal operations through phases the application of double entry bookkeeping to the govern ment's financial transactions.”

Accounting Act

in

to

as

to

of

of

Congress became apprehensive lest the intent Execu upon duty tive Orders 8512 and 9084 was encroach the the Comp troller General install uniform accounting set forth the Budget and Committees

Executive Order 9084 required that cleared with the Comptroller General and certain wording was changed from “accounting” “reporting,” the objective being secure uniform information rather than detailed accounting control. joint study and installation project par The result was establishment Treasury Department, and Comp ticipated Budget, the Bureau the of

Hence,

1921.

a

exist desirable cooperation which the charge the General Accounting develop and install uniform accounting, and

is

seem

1921

to

coordinating to

birth

in

at

of its

Office

gradually

to

of

There would

resulting

in

troller General.

in

by

of

to

to

be

contemplated changes

is

of

of

the need the Bureau the Budget and Treasury Department for the type budgetary information which required for management control

purposes.”

of

1933 the direct payment and settlement

by

Prior

to

The Disbursing Function the financial

obliga

the Treasury the Division

Disbursements

in

up

of

ment

of

In

of

the United States were made the departments themselves through disbursing year their own officers. that there was set the Depart

tions

which assumed the

of

1,

in

on

to

of

a

of

in

F.

**

Bartelt, “Principles Involved System Edward Central Accounts for the 1942), United States Government,” National Assn. Cost Accountants Bulletin (March Appropriations, House Vol. XXIII, pp. 907–941; Hearings Before the Subcommittee Representatives, Treasury Department Appropriation Bill for 1943 (Government Printing Office, Washington, D. C., 1942), pp. 44–80. Seckler-Hudson, op. cit., **The documents relative this development are reproduced Unit VI, pp. 54–120.

the spending agencies, such

as

few

[Ch. 23

of

the War and Navy Departments. There are several officers who are located wherever the government

of

disbursing

hundred

except

-

of

for

functions

the military units

all

disbursing

a

FINANCE

368

of

to

a

an

the United States makes payments. Each disbursing officer secures his money by making requisition the Secretary the Treasury for

be

a

of by to

of

in

in

to

so

or

of

advance funds accordance with existing appropriations. These requisi lump tions cover sum advances sufficient take care business month approved advance. They must the Comptroller General before going the Treasury. The Secretary the Treasury then issues an

1933,

attempted

to

Disbursement

in

created the Division

of of

of

to

in

of

an

of

accountable warrant, this terminology resulting from the fact that the dis bursing officer must render account how the money was disbursed. The issuance the accountable warrant results charging the appropria transferring tions and the money the disbursing officer's checking account with the Treasurer the United States.” Executive Order 6166, which relieve the

to

of

liability for the propriety and legality expendi disbursement officers tures, placing such liability squarely upon the persons incurring the obliga tions. However, the Comptroller General has refused concur and has to

of

by by

so

do

to

to

of

of

to

of

to

continued hold the disbursing officers responsible for more than the mere custody pass funds. He has been able virtue his power upon requisitions for advances funds and his periodic audits.” Leg islation 1941 aimed liability quite directly locate on the some 9,000 departmental certifying officers, who certify vouchers the disbursing offi cers for payment, without specifically

relieving

disbursing

of

is

to

in

officers from liability. The Comptroller General authorized exercise discretion liability where circumstances justify.” relieving individuals

due and payable

to

the effect that money

a

he

statement

is

a

department

to

to

by

of

The disbursing officer pays out money upon the basis vouchers fur nished him the spending departments. When receives from

cer

agency and then sent

to

be

to

by

is

in

to

he

tain persons, makes out checks and sends them the payees, always satisfying himself that there money unspent appropriation the charged and that the departmental vouchers are authentic. His accounts are subsequently examined both the Treasury Department and spending the Comptroller General for audit and settlement.

Treasurer of the United States

of

of

**

pp. 121–139. Statutes

of

Large,

1941, Vol. 51, pp. 875-876.

p.

9.

the United States Government, this liability and responsibility see Mansfield,

of

Accounting Procedures excellent discussion at

For

an

** 13

Bartelt,

of

of

is

of

The Treasurer of the United States should not be confused with the Secretary merely the head the Treasury. The former one the bureaus the Treasury Department which exercises the actual custody op. cit.,

Ch.

FEDERAL FINANCIAL ORGANIZATION

23]

369

all

the funds and money. His accounts control the receipt and disbursement of public moneys, but these are actually deposited in several hundred banks over the United States. Disbursing officers draw their checks against accounts established for them on the books of the Treasurer.

Procurement

Division

bring about centralized pur chasing for the federal administration. The Executive Order 6166 that Treasury. year created the Procurement Division Department the the procurement, was charged with determining policies and methods warehousing, and distribution property, facilities, structure, improve 1933 there had been no attempt

of

It

in

of of

in

to

to

Prior

of

be

an

is

in

of

ments, machinery, equipment, stores, and supplies. While the establishment this Division has not resulted absolute centralization federal pur chasing, this end which may neither possible nor desirable. Con

of

of

of

of

in

of

establishing siderable constructive work has been done the direction supplies, better control and administering the general schedule ware housing, consolidation open market purchases, and disposition surplus

The Division conducts administrative research with view filing equipment, toward effecting economies such accessory services repairs, and truck services. purchases was effected by Exec The greatest degree centralization charged 1935, utive Order 7034 which the Division with the responsi bility for procurement emergency relief activities.” connection with pur the war emergency the 1940's was given special assignments chase for Lend-Lease, Strategic and Critical Materials, Defense Housing, Representatives Ap and Red Cross. his testimony before House propriations Subcommittee the Director Procurement listed the activi ties his permanent organization follows: of

to

of

of

as

of

purchase contracts for the use agencies which are known the general schedule Negotiation

all

as

of

government

supplies

of

in

supplies

activities.

a

standard items for the civilian agencies there.

1,

D.

on

of

of

*Annual Report the Secretary the Treasury the Finances Printing Office, Washington, C., Ended June 30, 1940 (Government Department Doc. No. 311 381 pp.

for Fiscal Year 1941), Treasury -

large list

of

stock

a

fund

its

The Procurement Division had maintained warehouses and stockpiles Washington from revolving inception. Congress had appropriated to

in

con

of

Related procurement

3. 2. 4.

The making definite quantity purchases; Washington and distribution warehousing The activities; federal Special purchase programs; and

5.

tracts;

to

1.

of

of

a

In

it

of

in

In

of

of

-

in

as

a

property.

FINANCE

-

370

However,

[Ch. 23

these same agencies continued to maintain their own warehouses

More recent development toward integration of procurement gradual is the consolidation of regional warehouses under the management * of the Procurement Division.

in the field.

SELECTED READINGS BOOKS AND MONOGRAPHS Bartelt,

E. F. Accounting Procedures of the United States Government. (Public Administration Service, Chicago, 1940), 155 pp. Brookings Report to Byrd Committee. Investigation of Erecutive Agencies of the Government. (Government Printing Office, Washington, D.C., 1937), 75th Cong., Senate Report No. 1275, pp. 65–174. Executive Order No. 8512. “Budgetary Administration and Financial Reporting.” 5 Federal Register, 2849–50 (August 15, 1940). Mansfield, Harvey C. The Comptroller General. (Yale University Press, New Haven, 1939), 303 pp. Selko, Daniel T. The Administration of Federal Finances. (Brookings Institution, Washington, D. C., 1937), 71 pp. Selko, Daniel T. The Federal Financial System. (Brookings Institution, Washing ton, D. C., 1940), 606 pp. Short, Lloyd M., and Tiller, Carl W. The Minnesota Commission of Administration (University of Minnesota Press, Minneapolis, 1942), and Finance, 1925–1939. 160 pp.

Smith, Harold D. “The Role of the Bureau of the Budget in Federal Administration,” (Address given at a joint meeting of the American Political Science Association and the Society for Public Administration, December 28, 1939), 19 pp. United States Senate, 75th Cong., 1st sess. Select Committee to Investigate the Executive Agencies of the Government, Report No. 1275. (Government Printing Office, Washington, D. C., 1937), pp. 65–174, 534.

PERIODICALS Marx, Fritz Morstein. “The Bureau of the Budget: Its Evolution and Present Role.” American Political Science Review (August and October, 1945), Vol. 39, pp. 653–684, 869–898.

Macmahon, Arthur W. “Congressional Oversight of Administration: the Power of the Purse.” Political Science Quarterly (June and September, 1943), Vol. 58, pp. 161–190, 380–414.

Smith,

Harold

(Winter,

D.

1941),

“The Bureau of Vol. 1, pp. 106–115.

the

Budget.”

Public

Administration

Review

CHAPTER

24

BUDGET PLANNING AND ENACTMENT What Is Budgeting? Budgeting as used in these pages embraces the whole fiscal process. The term “budget” is alleged to have originated from an old English word, meaning a leather pouch, and referring to the one from which the Chancel lor of the Exchequer took his papers when delivering the budget message before the House of Commons. Modern American usage seems pretty well agreed that budgeting consists of four phases: (1) budget planning by the administrative branch, (2) budget enactment by the legislative branch, (3) execution of the budget by the administrative branch, and (4) post-check, or audit by the legislative branch." These four phases of the budgetary proc ess will be treated in that order below, first attention being given to budget planning.

Public budgeting is a comparatively recent development in the United States. If an arbitrary date had to be set, one could probably say that every major development in the budgeting field had taken place since the initial work of the New York Bureau of Municipal Research in the first decade of the twentieth century.” The existing practice represents such great variety that a descriptive treatment would only be confusing. Consequently, it is advisable to select those principles which experience has dictated to be sound and from them expound the fundamentals

of good budget practice.

of Terminology.—The term “budget” refers to a plan of expenditure balanced by revenue and may be used in two senses. Some times it refers to the plan presented by the chief executive to the legislature, and sometimes it is the plan which has been enacted into law and is ready for execution. The “budget document” refers to the printed book, booklet, or pamphlet which contains the plan presented by the budget-making au thority to the appropriating body. The “budget message” is a general dis Clarification

1 W. F. Willoughby, Principles of Public Administration (Johns Hopkins Press, Balti more, 1927), pp. 429–434. * A. E. Buck, The Budget in Governments of Today (The Macmillan Co., New York, 1934), pp. 37–42. A. E. Buck, Public Budgeting (Harper & Bros., New York, 1929), pp. 10–24. Mr. Buck is a staff member of the National Institute of Public Administration, and has been acting in a consulting capacity for the federal Bureau of the Budget.

371

.

FINANCE

372

[Ch. 24

cussion by the chief executive, accompanying the budget plan as presented to the legislature, and it is usually the first part of the “budget document.” “Budgetary accounts” consist of those accounts which give the information over budgetary operations. They reflect accurately the current status of revenue, appropriations and encumbrances, telling the chief administrative officer whether a deficit or a surplus is necessary

to exercise control

“Budgetary control” is the influence exercised to keep budgetary operations within the plan laid down by the approved budget. This is the third phase of budgeting, wherein the chief administrative officer, through occurring.

budgetary accounting and internal checks, sees to it that the predetermined fiscal program is abided by.”

The Concept of the Executive Budget.—Correct budgetary practice devolves responsibility for the preparation of the budget plan and the execution of that plan, after approval by the legislature, squarely upon the head of the governmental unit or the chief administrative officer. This is known as the “executive budget.” Such practice is in line with the separa tion of powers between the administrative and legislative branches as laid down in the first chapter of this book, and it also coincides with modern theories of integration almost universally advocated by those who would improve managerial practice.

It

is the President, governor, or, mayor who is the one ordinarily held politically responsible for the results of fiscal operations. Furthermore, the needs of the various spending agencies have to be coordinated and judiciously scaled down so as to give the maximum benefit within the limited revenues available. If responsibility for this is not squarely pinned down on a single responsible official, chaos will result. This can be done while still preserving the democratic system of checks and balances, provided that the proposed executive budget be approved alteration as budgeting

its

by the legislature—that

body usually having unlimited power to make such discretion may impose. Furthermore, the fourth phase

utive branch

of

in

of

or

to

as

of

contemplates that the legislature will maintain continuous audit and inquiry how faithfully and well the administrative branch budgeting. has functioned during its third, control phase Placing responsibility for budget preparation and execution the exec the government does not take control away

from Congress.

6,

7.

*

Municipal Accounting ments (National Committee 11, pp.

of

In it

to

of

its

was able

from the host uncoordinated appropriation requests, that apply energies more effectively budgetary activities.

to

freeing

it

a

of

it

be

as a

the Bureau

of

the addition

of

the Budget staff arm the Presi dent many were misled into believing that such would the case. On the contrary, machinery provided was not until this was for giving Congress well-rounded view administrative and financial requirements, and for

With

Terminology for State, Municipal and Other Local Govern on Municipal Accounting, Chicago, 3d ed., 1941), Bulletin No.

BUDGET PLANNING AND ENACTMENT

373

its

Ch. 24]

was now in a far better position to exercise not only function, but also budgetary control function, because the new budgetary procedure provided ample and timely information regarding governmental agencies upon which the activities base future policy decisions.” to

of

its

its

fact, Congress

legislative

is

meant the degree which the various spending agencies come within the operations the

of

to

Budgetary Jurisdiction.—By budgetary jurisdiction

that moneys appropriated available annually without

for particular purposes shall

be

nullify the

influ

these

is,

is

of

of

of to

executive budget. There are several practices which serve results the executive budget. Among the most prevalent making permanent appropriations, that ences the practice

providing

automatically as

of

10

as no

in

In

of

as

further legislative action. At one time much two-thirds the expenditures the federal government came under permanent appropriations. some states the governor his budget can

In

of

on a

of

per cent exercise discretionary authority over more than the entire budgetary amount. Such huge items highway expenditures and subsidies permanent basis, for purposes social security and education are and thus removed from gubernatorial control.

to

to

in

In

of

to

of

a

by

local government permanent appropriations are usually accomplished portion particular departments, usually allocating the tax levy library, park, and recreation units. the past the sponsors these units clung tenaciously preserve have these tax levies order their inde

However, the shrinkage real estate values the drastically. 1930's reduced their tax base This loss real estate revenue departments under the general budget was partially made up the en by

in

by

of

in

in

pendent budgeting.

entirely dependent upon an inflexible

The multiplicity

revenue base. all a

is

at

no

tion wherein expenditures.

to

of

taxing bodies metropolitan areas creates situa jurisdiction budgetary authority public one has over Indeed, the usual situation have from least six to

not

in

be

be

to

is

of

of

creating other sources other taxes and revenue. There some evidence that the special levy departments are beginning realize they might general city budget they that better off under the where would actment

a

a

an

by a

in

a

of

a

a

115.

in

to

“Bureau

of

no

is

p.

Harold D. Smith,

1941), Vol.

I,

its

*

its

a

own budgetary power subject only the limitations authority central, coordinating budgetary There unified

units exercises own law.

mosquito abate addition state levy those states purposes. state Each these several

in

port district, ment district, and having general property tax for

park district, to

sewer district,

a

water district,

a

a a

district,

a

in

is a

dozen taxing bodies superimposed upon the metropolitan tax base, which typical situation urban real estate. Thus urban property owner county, city, receives tax bill with simultaneous levies school

the Budget,”

Public Administration Review (Winter,

empowered to harmonize the interests of revenue resources available."

[Ch.

24

of

all

FINANCE

374

the

within the limitations

by

an

of

to

of

is

in

budgetary jurisdiction Another defect the almost universal failure plan public works, buildings, and structures. Expenditure this nature emergency nature, financed has been almost always the creation

of

as

of

of

of

In

in

of

is

of

A

of

by

of

in

of

or

no

of

provision for depreciation for normal expansion facilities accordance with the growth the popu buildings usually has occurred, for the most lation. The construction part, long after they are needed, and determinations relative thereto have exigencies politics and local pride and “boost been largely influenced very auspicious development, pointing toward improvement erism.” along these lines, public the provision for the long-term budgeting City works the charter the New York. the City New York the director the budget, using the depart been practically

There has

debt.

of

to

the mayor his debt which the city may safely the six succeeding calendar years. The probable effect which such expenditures will have upon the expense budgets integral part each those years also this report. The a

guide, reports

of

an

is

of

of

of

mental estimates for capital projects recommendations regarding the amount incur for capital projects during each

of

to

as

so

In

as

to

of

of

mayor then submits the report the director the budget the City Planning Commission, together with his certificate the amount city during may safely capital projects debt the incur for the ensuing cal

Planning Commission

must

to

in

be

in to

endar year. this same report the mayor goes far indicate the capital projects which ought capital budget. included the The City

turn of

to

to

amount which shall not exceed the amount specified mayor's certificate, capital program for the five calendar the and years next succeeding such ensuing calendar year, both which shall published forthwith the City Record." seemed

as

be

of

Toward the end the first decade the capital budget provision working very much the framers had intended."

to

in

be

of

a

in

the aggregate

be

of to

a

to

to

of

estimate, the board the council, the director the comptroller capital budget and proposed budget the for all author adopted for the ensuing calendar year, izations recommended

submit

budget staff agency, often known

chief administrative the bureau

of

for Budget Planning.—The

as

officer the budget,

Merriam, Spencer

of

should have

a

Organization

f

Budget Planning

5.

1,

25

1,

of

p.

3,

of

of p.

a

at

* 7 *

of

E.

D. Parratt and Albert Lepawsky, The Government Region Chicago (University Chicago Press, Chicago, 1933), 193 pp. 1936, New York City Charter, adopted the Ceneral Election held November 25. picture budgetary dynamics connected with adoption For the 1945 capital :2; November 13, 21:5; December budget see New York Times, November 1944, 20:4; December 28, 21, col. Charles the Metropolitan

BUDGET PLANNING AND ENACTMENT

Ch. 24]

375

very intimately associated with his office. Such a unit should be well staffed with a wide variety of specialists, including managemeå experts, engineers, accountants,

During

researchers, and statisticians.

the

of budget

season

the chief of this unit should carry the load of responsibility for but the most crucial decisions, and for seeing that the routine budget preparation adequately. His relation carried the chief to

so on

is

of

a

of

be

to

he

be

officer should intimate that will constantly have access the latter's person for the important decisions which budget mak ing involves. Yet this chief part the budget planning unit cannot administrative

of

an

a

be

of

of

political advisors surrounding every chief execu that intimate group professional, with understanding tive. He must administrative techniques. and fiscal

to

of

of

of

a

a

of

of

in

to

of

In

a

is

of

fairly recent develop budget staff agencies The establishment ment, which has not even yet attained maximum possibilities. addition Budget, the President's Bureau the attached the White House staff, there are similar units the City New York, the State New York, the City County Angeles, Angeles. Los and the Los The idea very much wider adoption than full-time budgetary staff deserves is

of

of

to

in

or

by

to

of

budgets has been achieved date. Too much the preparation accomplished days the last weeks before the deadline harassed employees, temporarily transferred from elsewhere, working night and day under terrific pressure. Their work tends become merely that

This discussion

of

can

be a

the contrary,

it

is

staff agency not an expense; quite tive instrumentality for economy.

to

A

at

to

and such discretion

of

as is

exercised comes out hurried con arbitrary subject exigencies ferences where choices are made the those pressures which are dominant the time. Coordinated and well-planned competent budget fiscal programs cannot result from such procedures. compilation,

most

effec

in

in of is

of is

at

a

Óf

of

of

the activities the central budget bureau should not great budget planning overshadow the fact that deal done the departments themselves. This true normally the level the depart

an

Preliminary Steps.-The initial

at

of

be

in

is

ment head's office, for much such activity conducted the federal government on the bureau level and regional field offices. The depart budget planning will greater length below. mental phase discussed

of

to

as a

by

as

of

of

or

is

in

budget making usually step by announcement the chief administrator executive officer the financial policy the government for the coming fiscal year. The financial policy spend guide announced the executive officer serves officers

E.

A.

the Director

is

made the Secretary Budget the Bureau.

the revenue estimate

of

the Treasury and revised

by

the federal government

by

of

a

is

in

ing departments and agencies preparing estimates. preliminary estimate The next step revenues and expenditures.

of In

*

making

all

planning

376

-

FINANCE

-

[Ch.

24

to

of

be

“it

Buck feels that while it is probably better to underestimate revenues than to overestimate them, seems possible and desirable make estimates to

it

is

at

which will least within five per cent the actual receipts.”” After preliminary forecasts, these announcements and time call for depart mental estimates.

in

or

be

to

The budget agency sends the departments the estimate forms on which there will columns for (1) code numbers, (2) expenditure clas sifications, (3) the amount spent for the same item one two immedi

of

of

to

in

be

to

ately completed fiscal years, (4) the amount estimated spent the year, requested year current fiscal and (5) the amount for the which the proposal applies. The Estimates Division the Bureau the Budget,

to

be

assisted materially by the circular and the steps involved the proper prepa

in

on

In

a

fiscal year. The spending agency guide instructions which provide ration of the estimates.”

to is

to

a

to

in

of

1

on

July being concerned with budget preparation, sends out, each year, circular the departments and agencies outlining the manner which the estimates are submitted the Bureau for the ensuing

by

to

if

by

in

be

if

is

decentralized, the data past local government, the accounting experience will centralized, filled the departments; the comp troller, before being forwarded the departments. This means that the

of

a

it

if

its

its

spending agency can best furnish the information regarding past and cur keeps rent expenditures own accounts and pre-audits own expen ditures. Since the various departments and agencies have record the

in

is

to

a

In

in

of

it

of

customary, general, the present and previous years, perform their phase keeping with for them the estimates function accounting procedure. this, however, decentralized direct contrast to

expenditures

of

setting

expenditure

estimates which are reviewed conferences with the budget officials the spending agency. After ample time has been given for departmental consideration, requested the estimates the spending units are sent back the budget agency for review and revision. The number estimates that are required

of

to

of

as

by

of

the line officials

up

Weeks are devoted

in by

him should give close attention

the budget officer immediately under the proper framing the estimates.

in

the department

to or

The head

of

to

a

it

of

filling out the sec practice the British Treasury Department makes calling past expenditures sending tions for and current before the forms the spending agencies.”

in

of

to

is

is

the spending agencies not uniform. While the general practice among governments require only one set estimates, the federal practice T.

p.

in

of

D.

&

of

a E. -

A.

* *

Buck, Public Budgeting (Harper Bros., New York, 1929), 317. Selko, budget preparation, see Daniel recent account the various phases C., 1940), pp. 118– The Federal Financial System (Brookings Institution, Washington, 123 Young, The System National Finance (John Murray, London, 1924), pp. .E.Hilton

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378

FINANCE

[Ch. 24

the departments submit estimates twice.” The preliminary estimates are first studied by the budget examiner. It then becomes the task of the de partments to explain and defend their estimates in conference with the budget examiner. On the basis of the decisions and recommendations of the Bureau, the President determines the maximum that the spending agencies may request. When the President's decision has been made, the estimates are returned to the spending agencies with instruc tions to reframe them so as to stay within the designated maximum.” preliminary

Departmental Phases of Budget Planning.—The United States De of Agriculture will be taken as an example in discussing the departmental aspects of federal budget planning. Four distinct steps have been recognized: (1) preparation of bureau estimates in the various bureaus of the department; (2) preparation of department estimates on the basis of what the bureaus have requested; (3) consideration of departmental esti mates by the Bureau of the Budget and the President; and (4) considera tion and enactment by Congress. The bureaus begin to prepare their budget estimates on May 1 of each year, which is fourteen months before the opening and twenty-six months prior to the close of the fiscal year to which they apply. The bureau estimates are submitted to the department near the end of June, and the departmental requests go to the Bureau of the Budget by September 15 as required by the Budget and Accounting Act. The President's budget is submitted to Congress early in January, leaving that body approximately six months in which to consider the estimates and pass the appropriation bills before the beginning of the new fiscal year.” partment

Within the bureau, estimates usually originate in the divisions, after which they are reviewed, analyzed and submitted with recommendations by the bureau budget officer to the bureau chief. Revised bureau estimates are sent to the departmental officers. A great deal of effort and basic work in preparing the budget is done upon the bureau level, and a large propor

tion of the time of bureau officers is devoted to budget making during the period appropriate to that activity. When the bureau estimates reach the department, they are referred to the Office of Budget and Finance, where they are analyzed and summarized. The estimates are then reviewed by the department's budget committee, which prepares recommendations

for

**In England, although but one set of estimates is required, in reality this formal pro cedure is preceded by planning. Innumerable informal conversations between spend ing agencies and Treasury are the common practice all through the summer preceding the opening of the financial year on April 1. Cf. Buck, The Budget in Governments of Today, pp. 179–180. ** The preliminary steps, involved in budget preparation are discussed from other per spectives by Leonard D. White, Introduction to the Study of Public Administration (The Macmillan Co., New York, 1939), pp. 212–218; and H. L. Lutz, Public Finance (D. Apple ton-Century Co., Inc., New York, 1936), p. 872. 13 Verne B. Lewis, Budget Administration in the United States Department of Agricul ture (Public Administration Service, Chicago, 1941), pp. 14, 15; reprinted from John M. Public Administration and the United States Department of Gaus and Leon Wolcott, Agriculture (Public Administration Service. Chicago. 1940), pp. 416, 417.

Ch.

BUDGET PLANNING AND ENACTMENT

24]

379

the Secretary of Agriculture. Conferences between the committee and the Secretary result in setting tentative totals for each bureau or major activity.

This is followed by conferences between the committee and bureau officials in

distribution of expenditures within the totals which Usually the bureau chief is given considerable discretion in

an effort to secure a

have been set.

arriving at

these allocations. After the Secretary's decisions have been made, the final phases of getting the estimates ready for the Bureau of the Budget consist of cooperative action \between the Department's budget officer and the officials of the bureaus. The final departmental budget is

prepared by the Office of Budget and Finance, which transmits it to the Bureau of the Budget, accompanied by a letter from the Secretary dis cussing the pertinent points and factors involved.

The relationship

of departmental officials to budget making does not they cease when have transmitted their estimates to the Bureau of the Budget, and they continue to be active both before the Bureau of the Budget and before Congress. Representatives of the Bureau of the Budget hold numerous hearings and conferences with the departments, and the departmental officials who are familiar with the performance of particular functions appear before congressional appropriation committees in con siderable numbers. It is not at all uncommon for the bureau chief and his finance officers to appear before one of the subcommittees on appropria tions.

Action by the Bureau of the Budget.—Upon reaching the Bureau of the Budget, the departmental estimates are assigned to a staff member who has a rather intimate knowledge of the operations of the department whose requests are under consideration. ceeds to make a comprehensive whereupon,

Aided by analysis

a corps

of assistants,

he

pro

of the departmental requests;

he holds extended hearings

at which representatives of the department testify in detail. For some departments such hearings extend over a period of several weeks. At their conclusion the budget examiner prepares and submits revised figures for each item of the budget estimates, which are finally checked by a three-man board of review, headed by the Director of the Budget. All during the period when the final estimates are being prepared for submission to Congress, the Director of the Budget has a very intimate relation with the President, with whom he has frequent conferences. The chief executive must himself make all final decisions, and the document which finally goes to Congress represents his own will as to the amounts allocated.”

Neither the department officials nor the Bureau of the Budget may include items in the budget which have not been authorized by Congress. **

Club,

Harold D. Smith, Detroit, April 29,

Some

1940,

Budget mimeo.),

Problems pp. 6, 7.

(Speech

delivered

before

the Economic -

FINANCE

380

[Ch.

24

prevent the departments from inaugurate executive system during budget execution, which the third phase is

of

an

to

is

of

over-all control budgeting described above. supplemental and deficiency

to

enactment. The best way appropriations excess

of

spending

in

budget prior

in

to

be

it

of

Good budgetary practice requires that the expenditures which physically and humanly possible contemplate shall included the to

is

all

Federal practice makes a distinction between authorization by Congress and appropriation. Before an appropriation can be made, it must have by been authorized some specific act of Congress. In other words, the func tions or activities must have had congressional approval previously and separately from the appropriation of moneys for carrying it on. Hence, the budgetary authorities are limited to the consideration of those functions and activities which have had such authorization.”

Budgetary

Research.-It has already

mentioned that

been

budget

as

of a

of

sizable portion administrative research. subject matter for such research are almost large the federal government, the adminis

which touch almost every imaginable human effort.

The

on a

trative activities

as

an organization

of

in

staff agency should carry on The variety and ramifications limitless

Congress.” a

Budget and the President before going

to

of

be

in

be

pointed out that while estimates are not included the general budget, they must, nevertheless, submitted through the Bureau the

It

should probably

by

a

its

A

of

in

its

budget bureau's investigation will necessarily take fiscal aspect, with personnel will include accountants and specialists the result that fiscal operations. However, the over-all and broad aspects research must budget bureau should not be dominated by broad managerial outlook. is

an

of in

be

exclusively staffed accounting, engineering, and narrow specialists agency detailed operations. The primary purpose such the coordi nation and the allocation of limited resources to numerous activities com its of

bear. However, telling which can

in its

a

of

of

peting for their shares funds. The budget bureau cannot ignore the pressures political nature which some the spending units can bring

be

is

a

Planning the Revenue Side

techniques

in

the importance

of

with an appreciation tion.

of

of

of

of

at

to

of

so

be

it is

to

duty finger tips the pertinent data have resisting improper influences. This but one many reasons why the directing personnel budget staff should made up persons managerial outlook, broad social vision and wide combined modern

civiliza is of

*

-

-

…

as

as

be

p.

Selko, op. cit., 132. Ibid., pp. 128,129.

* **

to

do

if

as

as

is

of

of

the Budget.—The planning the budget provided the federal not well for the case with expenditures. The Budget and Accounting Act provides that large the available revenues not promise the proposed ex revenue aspects

BUDGET PLANNING AND ENACTMENT

Ch. 24]

381

shall make recommendations for additional reve nue. In performing this function the President relies upon the Treasury Department as well as his Bureau of the Budget, and in the former a Division of Research and Statistics and a Division of Tax Research have penditures, the President

The comparative rôle of the executive and Congress in the creation of revenue legislation is not very well defined. The point to remem been set up.

ber is that the expenditure side of the federal budget is planned under a very formalized procedure, whereas such is not so true when it comes to planning revenues.”

A

casual examination of state and local budgets reveals the same absence of planning of the revenue aspects of budgeting. The revenue phase of budgeting is not carefully considered, nor are the facts upon which esti mates are based set forth in the budget document. This is in direct con trast to European practice where greater emphasis is given to the revenues than to the expenditures.”

The Dynamics of the Pre-Deadline Period.—The few days or weeks

of

in

all

immediately prior to final printing of the budget document are a dynamic period of hectic activity. The members of the budget bureau are likely to be many hours on duty almost around the clock, putting overtime.

as

to

up

There are last minute conferences with the chief executive and with depart mental representatives. The adding and bookkeeping machines are con stantly busy, bringing trial balances see how the totals stand com pared with the estimated revenue. Numerous commitments have been made to

be

of

of

to

is,

of

or

to

of

contingent upon the showing the ultimate totals, and these have go press, ironed out and disposed of. When the estimates are ready the director and one two his aides get together for the preparation

to

the

lowing July

January.

This

to

is

in

of

Congress

1.

applies

transmitted

transmitted Con the budget which the expenditure program for the fiscal year commencing the fol -

the opening

to

at

gress

is it

to

press, whereupon and the budget document goes legislative body. The President's budget document

is

is

in

to

of

the budget message the chief executive. The tentative draft course, presented the chief himself, who undoubtedly makes alterations ready accordance with his own wishes. Finally, the printer's proof

It

of

it

of

is of to

102.

of

book information setting forth grows out the financial plan the government. the budgetary activi responsibility prepare the budget ties the executive branch whose for the ensuing fiscal year. The document consists statements relative a

is

essentially

of

The budget document

p.

The Budget Document

* 17

Ibid., pp. 123–126. Buck, Public Budgeting,

FINANCE

382

[Ch. 24

to revenues, expenditures, and appropriations of the government, past and prospective. The general character, purpose, and amount of government expenditures is explained; and, through the instrumentality of detailed data, the cost entailed in operating and maintaining given units of organi zation in performing the activities undertaken by the government are discussed. The appropriating body is thus enabled to act on the basis of a precise program, presumably carefully prepared by the executive branch and specifically recommended by the chief administrator.” Budget documents differ very widely in make-up and size. Probably the best guiding standards that exist are those proposed by A. E. Buck.” Two sizes seem to possess equal merits.

The letter size (about 9 by 12 inches) can be filed in the upright cabinet in general use; the book size (6 by 9 inches) fits very well in a bookshelf. The larger and unwieldy sizes in use in some states appear to be unnecessary. Regardless of the size in use, it is desirable to give more attention to the matter of setting up an attrac tive format. The number of charts normally found in the budget document suggest the desirability of utilizing established techniques of graphic presentation.

Governmental units in the United States have quite definitely adopted the single budget document. Mr. Buck recommends that this document be composed of three principal parts. The first section should contain the financial plan in a balanced statement or a brief one-page budget sum mary where the reader can get a bird's-eye view at a glance. This would be explained by a budget message and supported by general summary sched ules, tables, and charts from the totals of which the budget summary is The second part, comprising the bulkiest portion of the docu ment, should contain the detailed estimates, both of expenditures and of computed.

revenues, together with comparative figures, expenditure cost, and broad statements regarding the financial condition and operations of the govern ment. The third and last division is comprised of the budget bills—con taining the appropriation, revenue, and borrowing measures—for enacting the proposals into law.”

The national budget in this country contains no appropriation or revenue bills drafted by the President for inclusion in the budget document. The Appropriation and Ways and Means Committees of the lower house of Congress have immediate direction of the preparation of these bills. The President has gone no further in suggesting to Congress the form of the than including sectional drafts of the appropriation bills connection with the expenditure estimates of each department or agency. 19,

appropriations

County,

p.

132.

of

in

21 20

p.

of

of

Brookings Institution, The Government Survey Staff Montgomery Maryland (Brookings Institution, Washington, D. C., 1941), 250. Buck, Public Budgeting, pp. 363–367. Buck, Public Budgeting, pp. 56–57; Buck, The Budget Governments

in

Today

BUDGET PLANNING AND ENACTMENT

Ch. 24]

383

In

a

of

by

character refers

in

Classification

to

functions units.

a

all of

be

by

func

single

one department. Under such conditions the classification synonymous with classification organization would by

tion would

the expenditures for

in

be

unifunctionally organized; that

is,

a

in

of

be

all

Expenditures may be classified by function, by organization unit, by character, and by object. A classification by function is one which places single purpose. Examples under one heading the expenditures for works, and education. protection property, public would life and well-organized general, administration the departments would be,

the time element

expenditures.

to

in

an

is

of or

is

at a

a

or

is

be

of

the things

to

in

to

object consists Classification bought: personal services, supplies, and subdivided, and contractual services. Each major object classification budget-maker each subdivision has code number which tells the glance food, another item clothing, and accountant that one item so on.” used enumeration

future fiscal years.

of

by

be

or

as

in

It

the various items accordance with whether they relate obligations incurred previous years, such debt service, expenditures consumption resources, capital outlay for things for current from current segregates

in

Los Angeles:

Bureau (Organization Current Expense (Character)

Custodian

Unit

or

of

of

of

of

of

optional These several means classification are not separable practical use. The budget estimates should make use all them. Take example for the 1931–32 estimates the Custodian Bureau the City

Function)

Salaries and Wages (Object) Expense (Object)

In

of

Acquisition Property (Character) Equipment (Object) Land, Buildings, and Improvements

(Object)

all

to

as

it is

of

quite common for the budgets the United States the national, compre state, and local governmental units lack the feature known hensiveness. The budget does not possess the unity and completeness char

it

to

of

in

There

no

recurring expenditure.

is

after they existed

as a

a

in

is

It

in

of

budget which includes to

a

of

their proper relationships the applies. and the income the government which periodically large permanent not uncommon find additions and given budget, appearing" for the first time long definite appropriations

acteristic expenditures

question,

how

in

of

a

ever, but what the national budget approximates complete budget more government.” closely than the budget most other units

,

in

in

of

**

lic.

*

Buck, Public Budgeting, pp. 201–203. Consult model object classification Penetrating discussions budgetary comprehensiveness are presented Buck, Budgeting, pp. 37-40; Lutz, op. cit., pp. 876–878,

Pub

FINANCE

384

[Ch. 24

Relative to the time factor in budgeting, some difficulties are involved in adjusting the flow of revenues to the flow of expenditures. For exam ple, in a certain state the fiscal year begins July 1, but the first installment of the real estate tax does not come in until November. The result is that there is a “dry” period, since expenditures must go on in spite of the fact that there is no current revenue. There are several ways of dealing with this problem, some of which are obviously more desirable than others. The first and most obvious solution would be to have the revenue year conform

all

to the expenditure year. The second would be to build up savings, or reserve funds, which could be used during the taxless period and repaid after tax revenues began to flow in. A third one, which is very widely

of

of

is

of

of

is to

register warrants used in local governments over the United States, —a dangerous practice, indicative loose budget control. Almost invari question ably the issuance registered warrants some sort index to

of

is

of

in

of

of

registration able budgetary methods. Under the system warrants the payment governmental obligations presented check issued the treasurer that jurisdiction, who refuses payment. Thereupon, the payee to

of

or 6

5

as

at

of

of

as

of

in

be

be

requests that his warrant registered upon the books the treasurer, paid registration the order revenues are available. Usually registration per cent, interest starts upon the date the rate a

in

good short-term investments thus making such warrants sought after good reputation for meeting their obliga those jurisdictions which have

In

of

on

understanding

with the local vendors

current invoices until the time

for

the timing

the budget

is

to

Another question relative

to of

of

be

munities there has sometimes been expected that payment will not payment taxes has arrived.

an

of

of

a on

is

of

temporary financing tions. Another means short-term borrowing, frequently bank loans. The short-term notes the United States Treasury are good example type financing. this small rural com

when the

of

to

to

as

as

is of

passing the budget bills Temporary appropria year begins. months after the fiscal “votes account” are voted tide over the period before to

in

experienced

on

several weeks tions, known

particular difficulty

as or

England

no

to

in

In

of

in

1.

on

to

in

is

be

enacted,

or

shall whether prior after the beginning the expenditure year. Federal practice for Congress receive the January budget pass appropriation President's and the laws before July However, the fiscal year which starts some the states, and many local jurisdictions, the fiscal year expires much three six months prior the enactment the appropriation laws and ordinances. appropriations

1,

on

a

a

to

is a

in

However, such practice American local government carry-over from the days prior modern budgeting, when the only budget July Thus, levy. year may begin for was the tax fiscal certain city enactment.

no

is

1.

on

a

of

general property taxes call whereas the state laws which govern the levy levy September for tax There reason why, under these cir

BUDGET PLANNING AND ENACTMENT

Ch. 24]

385

cumstances, a well-devised budget plan could not have been presented prior to July 1, and an expenditure program based thereon passed by the legislature before that date. However, it is too often the practice for budget planning, preliminary to the beginning of the fiscal year, to become nominal and perfunctory, and for the real budget planning period to take place between the beginning of the fiscal year and the time of tax levy several weeks or months later.

Because of the uncertainties

involved

in

this situation, the tendency is for pressure interests to exert an influence much greater than would be the case with a budget formulated upon a scientific basis and enacted prior to the beginning of the expenditure -

year.”

Budget Enactment of the Budget Document.—Budget laws frequently pro vide that not later than a certain date the budget document will be trans mitted by the chief executive to the legislature. Thus the President's budget message, contained in the proposed budget, is among the first com munications which the President sends to Congress when it convenes in January of each year. This is the budget which applies to the fiscal year which commences the following July, thus giving Congress approximately Transmission

five and one-half months to consider the proposals. The budget message is usually not delivered in person. In Congress the budget proposals are referred to the appropriation committees in each house.

for Handling the Budget.—Prior to the enactment of it was the practice in both Congress and the state legislatures to have almost chaotic decentralization of the committees con sidering appropriations. It would not be uncommon to have a score or more of committees in a chamber, each with the power to introduce bills Organization

budgetary

legislation,

appropriating

itself. In

money without any coordinating agency except the house Congress today each house has a single Committee on Appropria

tions, and each of these committees is divided into a number of subcom mittees on the basis of the departments and functional activities of the government. In order to coordinate the efforts of these subcommittees, it is provided that all proposals shall ultimately clear through the entire Com mittee on Appropriations. The great pressure for appropriations gives rise to the necessity for some means of preventing the slipping through of appropriations in general legislation bills. In an effort to check this practice, Congress has adopted two rules which, although it is possible to evade them, do actually constitute a considerable moral force to maintain

* Frederick C. Mosher, City Chicago, 1940), pp. 78,

Service,

Manager 79.

Government

in Rochester

(Public Administration

-

386

FINANCE

[Ch.

24

intact the jurisdiction of the Committee on Appropriations. One is a rather blanket prohibition against considering any appropriation which has not been proposed by the Committee on Appropriations. Another is the quite generally

observed rule

which

of expenditures and

authorization

makes the distinction between the of money in pursuance

the appropriation

of that authorization. Such a rule serves to strengthen the coordinating activities of the Committee on Appropriations by restraining those com mittees which are considering general legislation from making appropria tions. It also permits the Committee on Appropriations to concentrate upon and integration

the task of fiscal coordination legislative policy.

from general

as distinct

its

A

so

to

of

a

to

its

a

in

tremendous increase in governmental activities, with concomitant expenditures, complex rise has created situation that the legislature finds itself unable act intelligently through traditional machinery for handling budgetary matters. The result has been proposals number

a

of

in

of

create both Congress and the state legislatures some means coordi nating legislative action both within each house and between the two houses, providing for the legislature professional and technical inves and also

a

on

It

of

of

a in

tigative service which the President now possesses his Budget Bureau. Congress have had For many years both houses Joint Committee composed Internal Revenue Taxation five members from each house permanent professional and technical staff. with has recently been

In

be

a

to

it

a

on

Appropriations similar Joint Committee established Congressional Budget Service. set up serve

be

proposed that

and that there

to

its

its Committee on Appropriations hire staff personnel, existing governmental agencies from civil service drawn from rotating and temporary basis.” legislative staff agency has been felt The need for some sort the states also. The occasion for this demand has arisen out of clash between large majority the governor and the legislature, those instances where a

in

a

in

of

on a

1943 the House authorized

of

a

of

It

of

is

in

an opposite political faith from the former. would system complete separation seem that under our American the execu rupture between the two may tive and the legislative branches, where the latter

a

vengeance and recrimination which may exist between governor and legislature, mayor and city council, will realize that one between a

a

or

a

of

if

its

in

of

lack

of

a

confidence the other's recommendations, the citizenry the state might fare better the legislature had own professional investigators. Anyone who has observed the heated animosity and spirit create

of

to

A

S.

a

is

4.

of

of

in

3,

in

of on

in

**

United States Senate, 76th Cong.; 3d sess., Committee on Expenditures the Execus 3715, Congressional Budget Service tive Departments, Hearing Bill Establish Printing Office, Washington, the Legislative Branch the Government (Government D. C., 1940), pp. The staff the Appropriations Committee and subcommittees Oversight discussed Arthur W. Macmahon, “Congressional Administration: The Power the Purse,” Political Science Quarterly (June, 1943), Vol. 58, pp. 161-190,

24]

Ch.

BUDGET PLANNING AND ENACTMENT

387

is

whom

has confidence.” to an

fiscal experts

it

its own staff

in

of

it its

in

its

of

of

the other. Furthermore, the budget staff the relationship with the legislature, executive might feel itself restrained especially when quite intimate. Under association with the executive quite appropriate these conditions would seem that the legislature possess

will not trust the experts

by

by

it

to

to

attempt been some experimentation with coordinate legislative budget, executive and activities on the the end that the legis necessary lature will not consider substitute an entirely new budget presented for that the executive. An interesting experiment along this

There has

in

is

line that presented the Maine Budget Act, which provides that the governor consult with both the governor-elect and an advisory committee preparing his budget proposals. The legislative from the legislature

of

by

by

of

a

of

leaders who consult with the governor are the heads the incoming appro priation committees and minority member from each, and these are charged with the responsibility leadership during consideration the legislature.” appropriations the

on

a

on in

of

by

it

to

is

as

is

it

Although not required the Constitution, the case with reve bills, long practice appropriation originate nue has been the for bills Representatives, where they are framed the House the Committee Appropriations. The Senate also has Appropriations. Committee in

of

by a

in on

is

each house

of

proposed expenditures the actual detailed consideration subcommittees, numbering eleven carried number

of

The bulk

a

in

sit

of

by

is

on

in

of

by

is

at

in

quasi the House and ten the Senate. These subcommittees judicial capacity hearings where the testimony offered almost exclu sively representatives spending departments support the their requests.” The coordination between the subcommittees carried

on

its

Appropriations.

the full

the Chairman considers appropriation

com of

the House

by

executive session

of

to

an

to

introduced

in

mittee, whereupon

the

in

is

the Whole

is

the Committee

of

any time. General debate

in

order

at

to

a

as

of

The House bills Committee the Whole. Such bills are highly privileged, and resolution resolve the House into the Committee of the Whole

Committee acting

a

be

ultimately presented

it is

The latter

is

to

to

in

of

a

of

on

of

conferences between the chairman the parent Commit Appropriations and the various chairmen tee subcommittees. After particular hearings upon appropriation bill, the these have been concluded members the subcommittee meet what are sometimes lengthy sessions granted determine the amount and draft the appropriation bill. almost entirely

usually

of

7.

A

p.

of

O.

28 27

of

p.

of 26

of

Victor Jones, Legislature and The Budget (Bureau Public Administration, Univer California, Berkeley, 1941, mimeo.), 13; Legislative Counsel, Legislative Budget Bureau for California (Sacramento, 1941, mimeo.), 27 pp. Biennial Report the Department Finance (Augusta, Maine, 1934), Wolcott, Public Administration and the United States John M. Gaus and Leon Agriculture (Public Administration Service, Chicago, 1940), pp. 422–423. Department

sity

FINANCE

388

[Ch.

24

limited by agreement, and the recommendations of the Committee of the Whole are usually passed by the House without change.”

An appropriation bill which has passed the House is transmitted immedi ately to the Senate where it is referred to the Senate's Committee on Ap propriations, and it is considered by one of the subcommittees by means of hearings which are usually brief, given over largely to the consideration of After consideration by the main committee the bill is reported

amendments.

to the Senate. Individual members of the Senate are not permitted to offer amendments which would increase the amount of an appropriation except

If

under limited, prescribed circumstances.”

bill in the

same

ence committee

the Senate has not passed the

form that it passed the House, it must be sent to a confer of the two houses. The members of this conference com

mittee are designated by the President

the Senate and Speaker of the charge House from the subcommittees which had of the bill in the houses. The conference is forbidden to change anything in a bill except where there is disagreement between the two houses. Furthermore, new matters

of

In reaching an agreement on an appropria

cannot be added in conference.

tion item the conferees are restricted to the range which shall go not lower than, nor higher than, the greatest amount passed by one or the other house.81

It is

customary in local government to provide for a public hearing on proposed budget before the city council or other governing body. These the scheduled hearings are designed to give taxpayers and citizens an opportu

nity to

if

its

be

they so desire. In practice they seldom accomplish the purpose contemplated.” Instead of being a general com munity forum where a genuine cross section of the citizenry discusses be heard and to protest

or

be

of

of

as a

or

as

is

It

no

community problems before elected representatives, there will either scattering special interests. one present the representatives just likely present asking not that those will for items which a

of

by

of

be

speech increase the budget instead for reductions. There may taxpayers' property groups. two the secretaries and owners' While

so

do

to

is

in

of

is

it

undoubtedly regrettable that the average citizen does not become inter public discussion budgetary policy, his failure ested does not mean that he uninformed and thus exercises no influence. But decisive

T.

Daniel

in

the

p. p.

32 31 39

D. C., 1940), Ibid., Ibid., Harold United

Selko, The 133-137.

pp.

138. 139.

Federal

Financial System

by

by

(Brookings Institution, Washington,

-

Stone, Don K. Price, and Kathryn H. Stone, City Manager States (Public Administration Service, Chicago, 1940), pp. 127,

A.

29

to

of

of

all

to a

is

in

open hear influence upon budget decisions exercised elsewhere than ings. Budget makers are subject thousand pressures, but these are original along exerted the line from the formulation the estimates the departments the ultimate signing the law the chief executive.

Government 128.

BUDGET PLANNING AND ENACTMENT

Ch. 24]

389

to

so

to.

The formal budget hearing is a mere formality, an outward exemplification of the American citizen's opportunity to criticize his officials if he cares The fact that he does not come out do does not mean that he ceases he

is

-

as

of

It

to

may mean merely that watch the public treasury. has found other doing so, just and more effective ways the case with every other lobbyist.

by Executive.—The

of

to

do

as

is

of

it

as

to

power

of

executive veto usually applies legislation. The the budget bill does other varieties possess power difference that the President does not the the item veto

Consideration

by

by

is

to

he

to

to

many governors and mayors. The item veto gives the chief executive pick out particular items objects and the power which veto them frequently handicapped without invalidating the entire bill. The President

of of

of

of

to

of

be

of

one once attached

to

the appropriation bill the Agriculture providing that none Department the money appropriated for the Farm Security Administration should used for paying the salary people under civil service. The effect was negate the application rider

is

appropriation

an

to

or

to

by

to

of

lack this power and the tendency for Congressmen who have special objectives appropriation bills attach riders include item totals differing from that desired the President. An example

of

in

he

to

desirable that the President should have the power veto items both disagrees. the rider variety and those which present totals with which

of

It

of

by

of

an

A

to

as

its

objective the extension the Ramspeck Act, which had the civil minority exempt positions. Congress can frequently secure service objective dilatory tactics. this kind the use seems highly

The Levying

former days the levying

the property tax passing the appropriations for the ensuing given date, usually after the beginning body would receive from the assessor

of

of

of

year. The procedure was that the fiscal year, the governing

be no a

on a

to

in

in

local government, where was substantially tantamount

of is

to

of

a

of

by

of

the Property Tax-The new budgetary procedures are frequently impeded crust traditional carry-over from the period prior particularly true adoption budget practices. This the modern

in

go

be

at

of

A

by

statement the total amount the assessment roll. There existed budget which was planned item general estimate would item. upon previous years, and arrived the basis what had been levied any extraordinary expenditures which might contemplated. Depart

in

at

of

be

no

any one time how centralized purchasing; and one knew city outstanding obligations. much the owed these That was not budg used

in

the term

is

etary control

as

on

accounting,

as

or

or

no

of

mental officers would ahead and spend without specific authorization presented the city council, and the bills would later the form de body approve disapprove mands. That would these demands and not, authorize payment the case might be. There was no centralized

those sections which follow immediately.

FINANCE

390

[Ch.

24

SELECTED READINGS BOOKS AND MONOGRAPHS Buck, A. E. Budgeting for Small Cities. (Municipal Administration Service, Pub lication No. 23, New York, 1931), 21 pp. Buck, A. E., and others. Municipal Finance. (The Macmillan Co., New York, 1926),

pp. 31–100.

Cahalan, Don. Public Opinion on the City's Budget Planning. (Civic Research Institute, Kansas City, Mo., 1943), 32 pp. Chatters, Carl H. Accounting Manual for Small Cities. (Municipal Finance Officers Assn. of the United States and Canada, Chicago, 1933), pp. 54–57. Crouch, Winston W., and McHenry, Dean E. California Government, Politics and (University of California Press, Berkeley, 1945), pp. 206—214. Administration. Heller, Robert. Strengthening the Congress. (National Planning Assn., Washington, D. C., 1945), 41 pp. Howard, Mayne S. Principles of Public Finance. (Commerce Clearing House, Inc., New York, 1940), 438 pp. Hunter, M. H., and Allen, H. K. Principles of Public Finance. (Harper & Bros., New York, 1940), pp. 535–586. Jones, Victor. Legislature and the Budget. (Bureau of Public Administration, Uni versity of California, Berkeley, 1941, mimeo.). Legislative Counsel. A Legislative Budget Bureau for California. (Sacramento, Calif., 1941, mimeo.). Lutz, H. L. Public Finance. (D. Appleton-Century Co., Inc., New York, 3d ed., 1936),

940 pp.

Merriam, of

the 193 pp.

Charles E., Parratt, Spencer D., and Lepawsky, Albert. The Government (University of Chicago Press, Chicago, 1933), Metropolitan Region.

National Municipal

York,

League.

Model City Charter.

5th ed., 1941),

pp. 15–24. The Role of the Governor

League, New * in the Enactment of Appropriations. (National

Municipal

John A. (University of Michigan Press, Ann Arbor, 1943), 197 pp. Porter, Kirk H. State Administration. (F. S. Crofts & Co., New York, Perkins,

1938),

450 pp.

White,

L. D. Trends in Public York, 1933), 365 pp.

Administration.

(McGraw-Hill

Book

Co.,

New

Wilmerding, Lucius, Jr. The Spending Power: A History of the Efforts of Congress to Control Expenditures. (Yale University Press, New Haven, 1943), 317 pp.

PERIODICALS Gill, Norman N. “Big City Budget Methods.” National Municipal Review (June, 1943), Vol. 32, pp. 291–296. Herring, E. Pendleton. & “The Politics of Fiscal Policy.” Yale Law Journal (March, 1938), Vol. 47, pp. 724–745. Holcombe, Arthur N. “Over-All Financial Planning through the Bureau of the Budget.” Public Administration Review (Spring, 1941), Vol. 1, pp. 225–230. Huzar, Elias. “Congress and the Army: Appropriations.” American Political Science Review (August, 1943), Vol. 37, pp. 661–676. Key, V. O., Jr. “The Lack of Budgetary Theory.” American Political Science

Review (December, 1940), Vol. 34, pp. 1137–1144. Macmahon, Arthur W. “Congressional Oversight of Administration: The Power of the Purse.” Political Science Quarterly (June–September, 1943), Vol. 58, pp. 161–190, 380–414.

Marx, Fritz Morstein. “The Bureau of the Budget: Its Evolution and Present Role.” The American Political Science Review (August and October, 1945), Vol. 39, pp. 653–684, 869–898.

Ch.

24]

BUDGET

PLANNING AND ENACTMENT

391

Pruefer, C. H. “Dual Responsibility Under a Single Head.” Public Administration Review (Winter, 1943), Vol. 3, pp. 59–60. Smith, Harold D. “The Budget as an Instrument of Legislative Control and Exec utive Management.” Public Administration Review (Summer, 1944), Vol. 4, pp. 181–189.

Walker, Robert A. Administration

“The Relation of Budgeting to Program Review (Spring, 1944), Vol. 4, pp. 89–96.

Planning.”

Public

CHAPTER

25

BUDGET EXECUTION AND POST-AUDIT The third-phase of budgeting, which is the expenditure phase, should be left entirely to the administrative branch for execution. The chief adminis trative officer is given the green signal to commence expenditure by the legislature when it passes the appropriation act. From there on he should be granted power and responsibility for seeing that the expenditure pro gram is carried out in accord with the wishes previously laid down by the legislature. The latter should permit him to go ahead with considerable flexibility, not tying down the administrative branch with extreme detail. If the type of budgetary control advocated in the following paragraphs is placed in effective operation, there will be no need for the legislature to pass long, detailed, segregated, and line-item appropriations. Adequate budgetary control cannot be secured without a good accounting system. The following discussion of the accounting principles involved is intended for lay consumption, avoiding the technical aspects of the subject.

Budgetary Control Accounting Every well-run governmental accounting installation will have an appro priation ledger the purpose of which will be to show constantly an up-to date picture of the relation of current expenditures to the amount appro priated. These appropriation accounts will be broken down by departments and subdivisions and the various appropriation items supplemented by such detail as the chief administrative officer may have designated. They will show the amount available for expenditure in each particular classification

or category, the amount expended to for the remainder of the fiscal period.

date,

and the amount still available

Accrual versus Cash Accounting.—Most

governmental

areas in the United States have accounting systems which take cognizance merely of cash receipts and cash disbursements. These are known as cash accounting

of

no

is

its

systems, which are defective in several respects. Where every department satisfactory way finding out how many does own buying, there

392

expenditure;

and there

is

central administrative control

of

no

There

is

to

of

to

If

departments are free buy without orders for goods are outstanding. regard appropriations, overexpenditure appropriations will result. never

Ch.

BUDGET EXECUTION AND POST-AUDIT

25]

393

a time when a consolidated statement of current assets and liabilities is obtainable. The same is true of revenues. Under a cash accounting system no attention is paid to how much revenue should be received; only that

It is such laxness in the past that has largely

actually coming in is shown.

been the cause of wholesale tax delinquencies in many cities. Without an accounting system in which revenues are accrued, it was no one's business aggressively to pursue collection.

so

all

Writers generally refer to the correct type of appropriation accounting as the accrual system. This is probably too broad a term, however, because the question of just how far the accrual method should be followed in gov Practically ernmental accounting is still a matter of controversy. are as

all

a

by

all

all

expenditure

of

on

of

income and revenue. appropriate ledgers. this revenue revenue collections these ledgers

of

An accurate estimate

of

of

of

purchase orders and authority for employment. encumbering The the appropriation accounts with incurred expenditure obligations.

A

pre-audit

.

as

on

The accrual The entry encumbrances just appropriations. periodic budget statement, The furnishing automatically least monthly, showing: compared appropriations. (a) Expenditures date

at

of

revenue.

corresponding

of

be

recorded,

city might

of

the double entry system debits and credits according a

credit

Thus,

is

or

an

is

asset

in

up

is to

which every time

expectations.

revenue.

of of

Complete control also demands the use This the well-known system

accounting.

expectations.

specific sources

to

as

Overruns and deficiencies Expenditure compared

to

compared

to

to

a

of

date

compared

in

Revenues

as as

Rate

as

(b) (c) (d) (e)

to

to

6.

as in

5. 4. 3.

2.

1.

it

to

be

agreed that there should accrual appropriation accounting, we shall system provide refer that name. Such should follows:

liability $10,000

a

to

to

of

by a

be it

by

an

as

of

on

of

it

it by

a

a

marked another place. assured gasoline tax subsidy from the state for given fiscal year, and would begin showing obligation due and the year one side the ledger not enter on the other column until had been paid the state the city. Transactions this kind would recorded series debit and always obligations, assets, credit entries which would reflect and money

of

of

a

it

of A

as

as

be

the immediate cash position. double entry system possible accounts; provides this kind makes the continuous control providing for the accuracy practical means discovering errors and well

of

collected,

Montgomery

County

Survey

tion Service, Chicago, 1940),

p.

1

of the records." Board, 332.

Montgomery

County

Survey (Public Administra -*

w

FINANCE

-

394

[Ch. 25

Good budgetary control requires the adoption of some sort of system for the classification of accounts, whether they be expenditure accounts or revenue accounts. Expenditure accounts may be classified under five head

all

ings, but it should be understood that these are not mutually exclusive, but used in combination. Thus, the statements of expenditures for a particular to

in

of

governmental unit might contain five the following combination. The five referred are: (1) function, (2) activity, (3) organization, (4) or

is a

It

or

as

of

A

pur function broad general objective public welfare. may include the operation organization units. An activity the first principal

character, and (5) object. pose such public safety

synonymous with classification unit may function where the particular organization unit unifunctional nature. Under the organ activity ization unit will come classification indicated. Classification by

as

a

by

is

in

be

organization

by

by

be

a

is

several different particular functional group. Thus under policing there breakdown under following might the activities: patrol, investigation, traffic, crime pre vention, and general administration and staff services. Classification

by

as

by

or

is to

be

of

or

to

character relates whether the expenditures represent current expenses, capital outlays, object represents the retirement debt. Classification things for which the money spent, such personal services, contrac services, supplies, charges. tual material and fixed These classifications at

the use

funds.

A

of

ing

is

Fund Accounting.—A distinguishing feature

of

the health department,

fund has been defined

as

in

to

automotive equipment

the case

governmental account

as

department may be.”

in

or

to

iar

be a

so

numerical decimal code that those famil glance with the classification will able the code number and tell immediately that the item refers administrative personnel the police

are frequently accompanied

an

in

or

on

carrying

or or

or

of

money

of

a

. .

other resources (gross net) set aside for attaining certain specific the activities objectives regulations, restrictions, special accordance with limi independent fiscal and accounting entity.” tations and constituting sum purpose

of in

of

as

is

expendable liquid resources.

It It

its

A

as a

be

any given time without cash

or

may exist

at

to

of

spoken

of

the “stationery fund.” Such usage not technically Funds, strictly speaking, aggregations correct. are resources and liabili ties set aside dealt with unit. fund has own accounting.

is

ery

as a

is

to

in

is of

governmental the least understood and most loosely used terms “fund,” for public money finance common practice any allocation Thus, segregation expenditure referred fund. the for station

One

on

&

H.

p.

3d

*

E.

*

Carl Chatters and Irving Tenner, Municipal and Governmental Accounting (Pren tice-Hall, Inc., New York, 1940), pp. 171-193. For model object classification see also (Harper York, Buck, Budgeting Bros., 1929), pp. A. Public New 201–203. Municipal Accounting Terminology Municipal Accounting, (National Committee Chicago, June, 1941), Bulletin No. 11, ed., 16.

395

of

it its

It

liabilities;

its

assets and

public field

in

or

for each fund against these assets, and reserves and surplus.*

show its assets, the liabilities

to

There will

merely

a

fund fund

accounted

accounts

which are

a is

of

A

as

in

of

to

contrast commercial accounting, where segregation governmental accounting assets, entity. independent separate group for an

is is

In

because, a a

of

producing

own balance sheet resources and also has own operating statement revenues and expenditures, and receipts and disbursements. also has own surplus deficit. Fund accounting receives more emphasis the

or

is,

however, capable

obligations, its

of

BUDGET EXECUTION AND POSTAUDIT

Ch. 25]

set up

claim

a

be

general fund and several special funds for any given expended for any purpose unit. The general fund may apply which the legislature wishes the unrestricted fund applicable general purposes, -as the name implies. Usually the major is

It

it.

to

to

to

be

governmental

part

to

for highway building and maintenance. The federal government has

a

or

is

of

governmental income allocated the general fund. The special funds, on the other hand, restrict certain revenues resources for specific expenditure purposes.” Thus, many states will earmark gasoline tax money

re

by a

is

a

of

possible, for large number few funds funds planning and budget procedure. The government's as

that there should complicates financial

as

be

It

of

a

A

serve fund for civil retirement purposes, part being derived from employee given county will have contributions. law library fund maintained charge generally thought one dollar for every legal action filed.

be

a

is

to

in

be

many places where they cannot will scattered mus low, periods compelling government tered meet when income thus the to borrow for some funds when consolidated balance sheet of all funds cash resources

to

all

as

or

a

to

very good cash position. Special funds devoted specific purposes, such millage levies for libraries parks, substantially amount permanent appropriations. These services are, for practical purposes,

would show

to

It

to

it

to

in

in

It

removed from effective budgeting. has been thought the past that necessary segregate independent was accounts into funds order see that appropriations were not diverted some purpose other than that intended. has been demonstrated conclusively, however, that legal restric an

a

of

is

as

body

to

governing

an

to

is on

of

to

accounts for his grocer, his landlord, his milkman, his tailor, and his insur just such ance; yet the special fund system operates assumption. The expenditure give the chief accounting best way secure control p.

Chatters and Tenner, op. cit., 19. Griffenhagen and Associates (Technical Staff), Report the Waterbury Charter Com mission, 1930, pp. 46–47. al., Municipal Finance (The Macmillan Co., New York, 1926), pp. 69–71. *A. Buck et

E.

of

* *

-

will not bar

a

from borrowing between funds, pay back. The special fund system agency failure forgetting expenditure control." An individual does not need separate checking

tions

t

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Ch.

BUDGET EXECUTION AND POST-AUDIT

25]

397

officer ample authority intended. tions."

to see that moneys are devoted to the purposes He can do this best if he is not hampered by special fund restric -

The National Committee on Municipal Accounting has recommended the following classification of funds: General fund Special revenue funds Bond funds

Sinking funds Working capital funds Special assessment funds Trust and agency funds

Utility funds

8

Pre-Audit services by the

authorizing

it.

the accountant proposed obli

an

he

he

Pre-audit is an examination of a requisition for goods or accounting officer before the obligation is incurred. Usually will have the authority to question only the legality of the gation and whether or not there is a lawful appropriation

to

is

on

an

a

to

be

the subsequent invoice.

This, however, occasions

a

be

readily seen that such system should prevent overexpendi budget resources properly administered. No administrative

of

if

ture

can

of

It

slightly different price no great difficulty.

to

of

it

to

no

to

the accounting officer, the sum entered encum If, require change. however, brance will correct and further the goes accountant receives the requisition before the purchasing agent, changed agree with the amount his encumbrance may have be

the purchase order

as

If

it

or

of

so

If

finds will enter encumbrance upon the appropriation ledgers covering the amount requisition, the and then validate the requisition purchase order before sent the vendor"or the purchasing agent. purchasing agent completes purchase negotiations before sending the

an

to

it.

to

an

is

be

permitted spend one cent without the certification service will the accounting office that there appropriation for that specified purpose, pay for with unencumbered balance sufficient

33.

in

p.

et

of of

D.

L.

Municipal Administration (The Century Co., New York, al., Municipal Finance, funds see Buck 70.

p.

*

p.

7

Upson, The Practice 1926), 131. For classification Chatters and Tenner, op. cit.,

some instances actually only pre-auditing applies to

of

obligation which has already been incurred, before incurring the obligation. This type

or

an

to

to

by

a

is

in

The term “pre-audit” used somewhat different sense when re ferring the advance decisions made the Comptroller General when spending agencies voluntarily request that officer's opinion prior paying

-

-

FINANCE

398

[Ch.

25

of payments, probably as low as 5 per cent. However, Comptroller the General has an influence over the course of expenditure vastly greater than this would indicate, because of his power to make the final settlement of claims against the United States. If he finds that a pay ment has been wrongfully made, he will demand that restitution be made

a small percentage

either by the departmental officer who incurred the obligation or by the disbursing officer. Sometimes officers thus held to account by the Comp troller General have to go to Congress to be absolved of their account ability for funds spent in good faith and without criminal intent. The result is that the Comptroller General is consulted in advance to clear up fiscal doubt, just as the law officer renders opinions designed to resolve legal doubt. Such advice is published periodically in volumes entitled Decisions of the Comptroller General, containing his replies to specific

Washington,

budgetary control some

that

decentralized basis. The carried on

by

considerably

in

departments, some

in

is

the actual pre-auditing done accounting day-to-day detailed for

accounting, is

on a its

globe wherever Uncle Sam's money may be spent.” Each federal subdivision has own appropriation

so

requests made by government officials. A complete set of these decisions, running into a score or more of volumes, is always present in the office of the finance officer in each administrative subdivision scattered all over the

the

the field.

be

to as

as

in

of

by

to

all

it

be

to

The elasticity necessary

the same procedure. be

grams constitute separate phases utilization the appropriation act

For their proper adopted lump in

be

secured under an integrated administration, however, the system programs. executive allotments and work Allotments and work pro or of

of

completed under until June, 1948. Obviously contingencies under such conditions. foresee adapt the budget plan changing conditions

to

it

be

but expenditure will not impossible would

its

a

months ahead the time when some Thus, given city will start planning

can

long eighteen takes place the expenditures are made. January, 1947; 1947–48 budget

the United States, budget planning

of

In

Work Programs and Allotments

to

or

be

ordinance should department sums for each subdivision. The utmost elasticity should permissible. The operating departments should understand definitely that they are not incur any expenditure until their work programs have been

After appropriations

have been passed, the chief administrative upon officer calls the head each spending agency furnish detailed plans expenditure. These plans cover definite periods the fiscal year—

of

of

to

of

approved.

*º,

-

),

p.

C.

p.

°

T.

Selko, The Federal Pºlancial System (Brookings Institution, Washington, Daniel Mansfield, The Comptroller General (Yale Univer D. C., 1940), pp. 435–438: Harvey sity Press, New Haven, 1939), 184 f.; The President's Committee on Administrative Report with Special Studies (Government Printing Office, Washington, D.C.,

BUDGET EXECUTION AND POST-AUDIT

Ch. 25]

399

months or quarters—and are known as the work programs for those peri ods, the series for the entire year being presented at the same time. When the chief administrative officer receives these work programs, he

If

changes are desirable, depart ment heads are called in for individual conferences, usually resulting in amicable agreements. When the chief administrative officer is satisfied

will subject them to a thorough scrutiny.

with a work program, he signs it and sends it to the chief accounting officer; and it is then that the work program becomes an executive allotment. The items contained therein are set up on the appropriation ledgers for purposes of accounting control, no department being permitted to incur an obliga tion unless it is contained in the allotment. The result is broad, elastic spending

authority

by lump sum appropriations, coupled with detailed, but elastic, administrative control of expenditure. At the end of each allotment period, the work programs for the remainder of the year are revised in the light of experience thus far. A health department, for may have been confronted with an unusual epidemic during quarter. the first To meet the situation it secured the permission of the allotment, but chief administrative officer to exceed the begin ning quarter department the second the health will asked revise work program for the remaining periods. this way can still remain by

during the first quarter.”

to

is

the first place, the most departments from spending

prevent

in

is to

The allotment system has several merits.

it

the deficit incurred

practicing the studied economy necessary

In

make

up

within the annual appropriation to

it

In

its

be

of

at

its

example,

to

to

as

of

of

to

in

of

as a

In

out

of

Often

there are no abnormal the general

turn back

the end the year. On the other hand, the savings allotment can subsequent quarters. cushion meet unexpected expense emergencies without tipping the budget will permit taking care place, balance. the second the allotment system will enable the

at

used

it

be

fund

to

a

If

on five per cent less than the appropriation.” emergencies, each department will have surplus

to

to

a

to

It

of

reliable administrative device require each excess available funds. considered good practice program up percentage appropriation saving, work set certain the saying: “We are trying which becomes equivalent run our department

to

officer

from filling vacancies for the remainder

to

as

the year; and

to

requested a

the departments may

be

of

existing allotments;

of

made

in

in

in

of

be

to

to so

in

in

shrinkage

to

take measures necessary meet unexpected department heads, explain the sit revenue. He can call the uation, and ask them keep the budget revise their work programs police may requested balance. The chief use some patrol cars purchasing new ones for which provision has been another year, lieu

chief administrative

refrain

vast variety

of

p.

of

in

J.

of

19

Berkeley (City Berkeley and Cham H. M. Rocca, Council-Manager Government Commerce, 1929), pp. 29–30; Budgetary Control,” City H. Jamison, “Methods Manager Yearbook (International City Managers' Assn., Chicago, 1931), 65. ber

FINANCE

400

of similar economies can

be made in time to avoid a deficit.

[Ch.

25

Too often, in

disintegrated

financial setups, decreasing revenues will result in pyramided deficits because individual departments are permitted to spend to the maxi mum with no automatic check. Governing bodies and financial officers are disinclined to incur the resentment inevitably connected with the curtail ment of spending. The resulting stalemate or inertia permits preventable deficits to take place simply because no single person or agency has the authority to take the necessary preventive steps. Under the allotment system, the responsibility for a balanced budget is placed directly on the chief administrative officer who, if alive to his trust, will be able to balance budgets under the most trying conditions.”

Large administrative

units, such as states or the nation, are not well adapted to central budgetary accounting control. Time and distance become such an important factor that sending proposed obligations to the central accounting office for the purpose of pre-audit would entail a great deal of

It is here that the work program and allotment idea spending come in. The units can keep budgetary accounts of their own, on which are accrued their various obligations as they occur. But their bureaucratic

delay.

ledgers must remain within the limits set by allotments determined by the central financial agency. These allotments have been arrived at by work programs furnished by the spending units themselves. The latter forward periodical reports of expenditure to the central financial agency which main tains certain ledger records in large outline. This system achieves central coordination of expenditure while permitting a certain desirable degree

of decentralized budget accounting.” The United States Bureau of the Budget has exercised budgetary control a system of quarterly allotments referred to as apportionments. The Bureau has required the spending agencies to set aside reserves for contingencies and for savings where changing conditions prevent expendi ture in accordance with original intent. While there seems to be some authority for this practice in laws passed by Congress, the main impetus springs from Executive Order No. 6166 of 1933 in which the President authorized the budget bureau to set up the scheme of apportionments. through

In

1942 members of Congress became restive and questioned the legality primarily because the Bureau had in several instances apportionments, of “frozen” into reserves appropriations in which individual Congressmen

were interested. The charge was made that the Bureau was thwarting the will of Congress in failing to permit expenditures which it had ordered.

On the other hand, the Bureau defended both the legality and desirability ** Buck, Public Budgeting, pp. 463-485; L. D. White, Introduction to the Study of Pub lic Administration (The Macmillan Co., New York, 1926), pp. 160–163. ** See R. A. Vandegrift, “The California State Budget,” Tar Digest (January, 1932), Vol. X, pp. 19, 23–24.

BUDGET EXECUTION AND POST-AUDIT

Ch. 25]

40I

of the procedure, pointing to hundreds of millions of dollars saved an nually.”

to

on

to

a

II

it

a

its

It can thus be seen that beginning with 1933 the federal Bureau of the Budget started pure staff agency transition from the point where now exercises considerable direct budgetary control over the spending agencies. During World War Congress issued direct mandate the of

is

by

to

to

as

to

of

personnel which the the Budget set limits the number yy agencies could employ, known “manpower ceilings.” The objective influence the departments observe good management practices re

Bureau

quiring them

of

of

be

on

to

of

operate with the number personnel which the Bureau adequate deems for the tasks which have been budgeted. Greater emphasis placed performance standards and the pro must the development graming budget projects.”

In

to is

be

to

as

In

grants Great Britain, appropriations are considered the Treas ury, whose consent must secured before any expenditure obligation incurred. the United States appropriations have been made direct as in

of

to

the spending services who have not been subject the administrative con any agency concerning expenditure policy. Such trol other matters American developments the state reorganization and the council

it

to

so

in

If

10

as

of

an

is

it

is

of

Treasury con manager movements have tended toward the British type trol.” Of course, this practice new our experience that has spread slowly. Nevertheless, indispensable phase almost administrative budget control. per cent, they did tax revenues should fall off

to

is

up

us

is

of

in

of

if

to

or

many cities during 1931, why should the mayor manager not require the departments forego certain expenditures necessary such action balance the budget? Such power the hands the chief administrative keystone budget strategy. officer the to

is

be

to

to

a

a

a

revenues.

believed that

a

failure

is

meet the

It

curtail expenditures

of

by

istrative

boomerang. otherwise the economy program may become nevertheless, strong admin considerable leeway within which officer, unhampered too many political considerations, can to

There

is,

exercised;

is

it

is

on

to

a

of

if

to

is

an

so

all to is

of

to

suppose that revenues have failed expectations. Let come police year, The chief asked use his old car until next even there appropriation for parks new one; the superintendent asked refrain from spending that $5,000 item for improving Prospect Park; departments are requested not fill vacancies until the next fiscal year; line—expenditure pruned stay within and down the the limit presumed that sound judgment will reduced revenues. Of course,

**

in

Catheryn Seckler The basic documents recording this controversy are reproduced Budgeting: An Instrument Planning and Management (American University, Washington, D. C., 1944, mimeo.), Vol. VI, pp. 122–163. Ibid., 165 An excellent discussion this contained D. White, Trends Public Admin istration (McGraw-Hill Book Co., Inc., New York, 1933), pp. 161–162. See also (Harper Benson, Financial Control and Integration Bros., New York, 1934), pp. 36-48.

of

S.

C.

G.

in

L.

&

in

is

of

fſ.

p.

1* **

Hudson,

FINANCE

[Ch.

25

officer should have this power where administration

is

402

chief administrative well integrated.

Lump Sum versus Segregated Appropriations.—The

controversy

as

to whether appropriations should be made in great detail or under a few major headings is perennial. It would seem that a good deal of the purely argumentative aspect of the problem could be avoided if the difference between a budget and an appropriation act or ordinance were recognized. Practically everyone agrees that the budget, being merely an informa tional advisory document, can be in as great detail as is desired. The controversy, therefore, is in regard to the form of appropriations, not the budget.

A

great deal of misunderstanding could also be avoided by realizing that charter organization and lines of administrative authority are quite different

its

from place to place. This has an important bearing upon the detail of appropriations. For instance, in a council-manager city where administra tion is well integrated, the council can control expenditure through

be

a

it is

is

is

to

of in

consequently unnecessary appropriate great detail. When, on the other hand, there finance, the no central department accounting elective, generally chief officer and weak administrative budgetary control exists, may that segregated appropriations are the

It

manager.

is

is

to

if

is

to

of

be

to

of

by

to

in

It

to

be

to

or

It

is

In

of

only possible means control. other words, the question not: “Are lump sum appropriations better than segregated?” rather: “Which are segregated appropriations?” better suited our conditions, lump sum referring by specific This can illustrated two cities. believed that Cincinnati lump sum appropriation fits the situation well, whereas Los Angeles has need for greater segregation. hinge upon the The most satisfactory answer this problem seems particular jurisdiction degree integration administrative achieved the under consideration. There has some coordination the fiscal opera tions; and up the administrative structure not set achieve this coordi it.

be

of

by a

by

is

It

to

nation during the third budgetary phase, then the legislature has do normally desirable that the coordination expenditure accom plished the administrative branch itself through lump sum appropria

responsible chief and allotments, supervised empowered budgetary administrative officer exercise control over the spending departments. However, when given city has weak administra a

a

to

tions, work programs,

in

In

an

as

to

is

it

so

In

to

a

of

no

tive organization with one empowered with flexible budgetary control, large number independent and elective officers, then the and with legislature has very little alternative other than appropriate consid trying doing erable detail. act the fiscal coordinator because

defensible

in

entity. the administration itself has not been provided with such other words, segregated appropriations are second best, but, nevertheless, are

particular circumstances.

Ch.

BUDGET EXECUTION AND POST-AUDIT

25]

403

to which appropriations are segregated by Congress differs considerably from unit to unit, with the result that generalization is difficult

The

degree

There are occasions where a particular unit has been for decades a center of political controversy and the object of personal solicitude on the part of members of Congress widely scattered both historically and geographically. Thus, the Indian Service is largely prevented from exer cising flexible budgetary control because it receives money from over tying appropriation very specific objec hundred different acts down

a

as it

to its

and hazardous.

in

of

a

of

to

in

tives. There are other federal units such the Forest Service which appropriations are quite generalized with the result that Washington parcels them out the regional offices and holds the regional foresters responsible great degree for the exercise discretion and flexibility the be a

as

to

or

It

of

to

very interesting expenditure the funds allotted them. would study segregated lump sum determine those forces which make for appropriations, the case may be, within the federal structure.

all

Centralization

versus Decentralization

of

installation their own budgetary accounts, and the same true those state agencies operating away from the capi tal; but the same large cities also true the various departments where even several departments with headquarters the same building will

of

In

in

to

as

is

is

of

federal field agencies have

an

in

to

of

to

be

a

large-scale organizations

is

It

of

in

operating over con budgetary siderable area the extent which control can decentral government ized. the practice on all levels maintain budgetary control accounting right down the operating unit itself. Thus, most

The question arises

to

to

is of

a

by

by

is

of

of

a

warrant issued the Secretary the Treasury and counter the Comptroller General. The issuing these warrants con accounts both the Treasury Department and those kept the

Comptroller General himself.

In

in

trolled

by by

the basis signed

of or

a a

have accounting control for their own purposes. the federal government disbursing officer requisitions lump sum money—enough last him lump deposited month so—in advance. This sum his account on

or

in

by

to

of

either case they are not accounts designed expenditures, large gen, control the detailed but are made up mainly Congress. eral items line with the appropriation acts passed procedure any budgetary control The discussed thus far does not involve

its

or

as

of

in

of

the spending departments themselves. The degree centralization budgetary departments decentralization control within the varies has been indicated above. The department, the appropriate subunit thereof, of

to

in

to

of

be

deal the detailed budgetary control accounting will done although the extent which officers the field are permitted

in

A

in

of

up

to

of

plan apportionment must present the Director the Budget, departmental budgetary controls whose approval permits the setting monthly apportionments great within the established this manner. the field,

incur obli

FINANCE

404

[Ch.

25

will vary in accordance with the controlling statutes and depart practices mental and traditions. Those bureaus which have a considerable degree of decentralization will also, by that very fact, tend to permit a maximum of budgetary decisions to be made in the field. In those cases gations

the really effective day-to-day budgetary accounting may be very close to operations, however remote in distance from Washington. In the Depart Agriculture very high degree ment of the bureaus have a of fiscal autonomy coupled with general control from the departmental Office of Finance.”

The system of work programs and allotments described above constitutes one of the most effective devices for maintaining broad general controls at headquarters, while at the same time delegating a maximum of budgetary discretion to the field. Thus, the field units make out their work programs by months or quarters and present them to headquarters. The latter main tains a set of accounts showing broad general totals in accordance with the appropriation

acts, and upon which are entered the allotments

based

on

headquarters' approval of the work programs submitted by the field units. The latter submit periodical reports of the results of operations within these allotments with the result that headquarters always has reasonably up-to-date information upon the status of financial operations. Headquar ters has traveling auditors constantly visiting the field offices, where they go over the accounts, and give advice. The detailed budgetary control accounting is done by the field units themselves without the necessity for the elaborate staffing which would be required and the delay which would ensue if this detailed control were done at headquarters.

by

a

to

as

a is an

of

by

it is of

daily statement which even possible secure budgetary the and fiscal status the unit viewed

of

of

ing,

In

all

Another reason for decentralizing budgetary accounting is to provide the operating units with the current information needed for effective admin istration. When the decentralized units operate under uniform classifica tion of accounts, it is possible to furnish this information not only for the individual units themselves but to collect and compile at headquarters the results of fiscal operations over the area. some cities and states, means modern communication and the utilization machine account exact picture

whole.

Cost Accounting of

has been more widely used

in

or

of

a

it

While

O.

pavement.

a

to

it

of

a

of

square yard

p.

Wolcott, John M. Gaus and fleon Public Administration and the United States Agriculture (Public Administration Service, Chicago, 1940), 436.

Department

of

**

pairing

a

It

as to

is

designed for administrative rather than fiscal control. Cost accounting attempts perform particular unit ascertain how much costs work, such collecting garbage, cleaning streets, ton mile re

Ch.

BUDGET EXECUTION AND POST-AUDIT

25]

405

is

in

in

its

the field of construction, operation, and maintenance of public works, there application is an ever-expanding opportunity for clerical and white especially true collar work. This those mechanized operations where

job analysis

executives and the personnel. work loads for individual While this consti departure from traditional cost accounting, has,

of

establishment

through

a

it

tutes somewhat nevertheless, accomplished

a

similar purpose

with

desirably

a

of

has approached the problem

of

in

of

in

of

a

is

an

readily available, example being punch card opera measurement unit tions. The most general use cost accounting local government has department public been the works.” The United States Forest Service

greater

emphasis upon the human factors involved.”

value

maintain

to

records

of

to

to

and fourth, physical properties

efficiently;

of

on

in

is to

in

to

at

Cost accounting has least four principal uses and purposes. The first preparing the budget; second, aid check construction costs hold line; third, operations being contractors determine whether are carried the costs and current

owned.”

Current Budgetary Reports

a

In

of

is on

a

The chief administrative officer should receive from the central account ing office periodical report budgetary operations. the status so

he

in

of

or

a

if

to

it

or

possible medium-sized city close the books daily and pro duce report for the city manager every morning, desires. Further more, the budgetary control ledgers should show instantaneously the con any appropriation dition revenue account case the chief adminis small

a

of

or

budgetary

a

it

to

in

hurry. Ordinarily, trative officer should request specific information summary one-page statement will probably suffice furnish him operations and results biweekly

even

This state

monthly.

be

be

to

by or

of

It

of

ment will reflect the current status both revenues and expenditures. will list the principal categories revenue with the amount expected for each, both for the year and date. The amounts actually collected over under the estimates will also shown. The expenditures will listed is

or

units, showing the amount available for expenditure for each, date, and how much each the total spent over under the budgetary to

organization

of

in of

of

to

p.

*::::

in

is

to

of

of

**

of

E.

of

in

*

17

C.

Municipal Public Works (Public Administration Stone, The Management Donald Service, Chicago, 1939), pp. 111–125. The Work Unit Federal Administration (Public Administration Service, Chicago, 1937), 46 pp., W. Loveridge, Job-Load Analysis and Planning Erecutive Work National Forest Administration (Government Printing Office, Washington, D. C., 1932), 236 pp. An illustration the use cost accounting determine efficiency found The University (University Tennessee Record, Local Government Accounting Tennessee Press, Knoxville, November, 1940), Vol. XVI, 17; for its use ascertain the cost fixed assets constructed see Chatters and Tenner, op. cit., pp. 272-288; also consult Walter O. Institutional Cost Accounting (Public Administration Service, Chicago, 1944). pp. 84–106.

FINANCE

406

[Ch.

25

allowance. City managers make quite general use of budgetary reports of this nature.”

Internal Checks

be

ineffective without its own version"of them.

such checks have

an

Several

of

example being the pre-audit proposals department accounts. head makes requisition which has already been verified may his own fiscal unit. many eight many different made out ten copies, going Upon places hierarchy. receiving copy, purchasing agent will the the fill the information necessary and send the accounting office,

to

as

It

a

by A

or

as

as

to

on

it

in

a

in

in

be

to

already been dealt with above, encumber the appropriation

of

in

all

A previous chapter stated that internal checks constitute one of the extremely vital and essential instrumentalities of coordination. While not nature, budgetary control would largely internal checks are fiscal

to

it

be

if

be

will

If

it

accrued upon the ledger sufficient funds are available. exhausted, the accounting office that particular account happens up until other arrangements are made. The purchasing agent will hold

where

will then negotiate the purchase and often

by

he

will inspect the goods after Payrolls are checked the Civil Service

at

they arrive Department.

in

by up

or

an

is

by

be

by

ad

is

is

checked another which not answerable example familiar the administrative audit,

per

as

is

A

one unit

by

ministratively

it.

by

Work done

to

a

by

by

their destination. Construction materials are tested outside laboratory Every the city's own testing bureau. fiscal operation set such manner that the work done one person must checked another.

a

be

of

receipts

time.

Assign other inspectors

or

5.

Compare daily and monthly calls and collections against those other collectors. per dollar

col

theirs

of

a

the ratio between calls and collections and check results -

weekly. K.

A.

*

Stone, Don Price, and Kathryn H. Stone, City Manager Government Harold the United States (Public Administration Service, Chicago, 1940), pp. 129–130.

in

Establish

to

his territory, and assign him occasion, on and check results. complaints and commendations. Build up personnel file

of

receipts.

Establish and maintain average mileage per call lected.

.

at a

pre-numbered

6.

:

Require daily turn-in

of

Issue him only one book Require daily reports.

of

branch city hall.

to

a

in of

of

of

to

traveling auditors. individuals commonly referred handling requires The cash the establishment internal checks prob ably more than any other operation. The following instances are examples placed upon the type internal checks which could license collector formed

BUDGET EXECUTION AND POST-AUDIT

Ch. 25]

407

Administrative Audit

It

is important to note that every good financial setup is subjected to types two of auditing: one the internal, or administrative audit, and the other the independent post-audit. They are both post-audits in the sense that they are conducted after the transactions have taken place. The admin istrative audit is conducted by a corps of auditors who are employed by the head accounting office. They circulate among the other units where they audit transactions very soon after they are completed, which explains why they are sometimes referred to as traveling auditors. They audit the accounts to see that the money due the government has been collected and make sure that it is in the treasury or properly accounted for. They check bank accounts, payment vouchers, receipts, and cash on hand. treasurer's

They ascertain, whether or not transactions have been properly recorded, and whether the entries on the books of account are in accord with facts.

It

is,

is frequently a considerable part of their duties to ascertain the defects in existing accounting procedure and to suggest and even to install stand therefore, very ardized forms and procedures. This internal auditing

in

an

,

•

or

it

to

is a

with current, administrative control accounting. check, permits the chief accounting officer cardinal internal for know whether not accounting operations throughout the entire organization are being conducted efficient manner.”

It

closely identified

Systems and Procedures Control

is

of

in

of

of

to

do

of

paper work, reporting, forms, and work flow immediately which not relate financial control. However, the problem reducing unnecessary paper work, consolidating and eliminating super papers usually fluous forms, and eliminating “bottlenecks” the flow

There are many aspects

of

of

is

of of

to

closely related accounting procedures. An earlier section the question problem management planning, one aspect this book dealt with the organization and procedure. While the formulation which the study

of

in

to

of

or

Bureau the Budget, under government paper work.

of

S.

U.

is

in

Chatters and Tenner, op. cit., pp. 24–25. One example the work being done the supervision J.ues Hard, secure the simplification ** **

good budget staff will constructive accounting. The a

Indeed,

of

cedural efforts conducted ably complement the other.

staff.”

the field way conflict with the systems and pro accounting office, but each should prefer the The management planning administrative

in

such units should

by

work

of

contain members who are adept

of

the budget

no in

tive research done

by

or

be

of

is

of

accounting systems undoubtedly the proper responsi and installation bility planning which can the accounting office, there are aspects properly more carried on with administrative research units directly under the chief administrative officer, connection with the administra

the

FINANCE

408

[Ch. 25

research people should be dominantly concerned with matters of organiza tion and operation, suggesting the need for approved accounting procedures rather than formulating

and installing them. The maximum of accounting control will not be achieved unless the problem is under constant scrutiny from each of these angles.

Post-Audit One elementary principle which has failed of recognition in national, state, and local governments is that the ordinary administrative features of accounting and fiscal supervision should be separated from the post-audit. The auditor should be entirely independent of the administration and re sponsible to the legislature. Properly the duties of the Auditor should be three. First, he should examine past transactions. The accounts and reports of all persons or agencies having the receipt, custody, or disbursement of public moneys should be examined to insure proper accountability, or fidelity. Sec ond, the transactions of public funds that have been expended, have been received,

or that should have been received, should be examined of legality. Third, the auditor should report the result of such examinations to the general assembly which is the branch of the government acting as a check upon the executive and administrative branches. The functions of a Comptroller, on the other hand, are the settlement of claims, either of or against the state, and, in respect to the question

of this, the keeping of the central accounts of the state and the prescribing of the subsidiary accounting systems in field offices and institutions. These involve purely administrative duties. The Comptroller will make an administrative pre-examination of all claims for the purpose of determining their expediency, propriety, and classi fication, as measures of administrative control and record.” as an incident

a

on

be

to

-

in

a

is

of

p.

of

the Organization the State Government North Carolina 320; on the general theme see Benson, D. C., 1930),

(Brookings Institution, Washington, op. cit., pp. 15–35.

be

by

is

Survey

of

on a

of

by

23

Report

as

emulation. The auditing officer, referred the Comptroller General, appointed and Auditor the Crown for life and can removed only the House Commons. There defect this procedure, how

of

worthy

offices who have spent the example this respect

in

of

someone independent the administrative money. The British national practice offers

an

by

is

an

is

be

its

This elementary principle of fiscal control is violated by combining the functions of comptroller and auditor in a single office, as in the govern ment of the United States and in many states and cities. This results in the auditing agency checking own accounts. Not until such confusion public eliminated will financial administration sound basis. quite general agreement that There annual audit should made

-

BUDGET EXECUTION AND POST-AUDIT

Ch. 25]

ever, in that the House seldom, report.

if

409

ever, has time to consider and debate the

It

is the preponderant opinion of students of public finance that the independent post-audit should be performed by an agency responsible to the legislature. The traditional confusion resulting from placing the ac counting and auditing functions in an elective officer has nullified the effect of the audit in American state and local government. Many cities, however, are getting good audits, either by a state agency as a requirement of law, or by private firms of accountants. The difficulty with the latter method is that city councils are not willing to pay the prevailing fees for time suffi cient to make the work effective.

This

of the country in a practice of asking auditors to bid on the local job. Frequently, the more professionally competent persons will refuse to enter this compe has resulted in some sections

tition and cities will get a second-rate audit by a second-rate auditor. More often a fairly competent worker will go into only the surface aspects of things, failing to be thorough because he cannot afford to be for the fee at which the contract was awarded. This encourages poor workmanship performed by the “scabs” of the profession. There is also the consideration that auditors of private accounts frequently do not understand govern mental accounting. SELECTED READINGS BOOKS AND MONOGRAPHS Accounting Publication No. 9. Municipal Budget Procedure and Budgetary Account ing. (Municipal Finance Officers' Assn., Chicago, 1942), pp. 1–100. Apportionments and Reports on Status of Appropriations. Budget-Treasury Regulation No. 1, Revised. (Bureau of the Budget and Treasury Department, Washington, D. C., June 1, 1942), 41 pp. Bartelt, E. F. Accounting Procedures of the United States Government. (Public Administration Service, Chicago, 1940), 155 pp. Benson, G. C. S. Financial Control and Integration. Harper & Bros., New York, 1934),

68 pp.

Carl H., and Tenner, Irving. Municipal and Governmental Accounting. (Prentice-Hall, Inc., New York, 1940), 794 pp. Harris, Walter O. Institutional Cost Accounting. (Public Administration Service, Chatters,

Chicago, 1944), 153 pp. Loveridge, Earl W. Job-Analysis and Planning of Erecutive Work in National For est Administration. (Government Printing Office, Washington, D. C., 1932), 236 pp.

MacEachern, Organization and Management. (Physicians Malcolm T. Hospital Record Co., Chicago, 1935), pp. 569–572. Mansfield, Harvey C. The Comptroller General. (Yale University Press, New Haven, 1939), pp. 23–73. Morey, Lloyd, and Diehl, Orval W. Municipal Accounting: Principles and Procedure. (John, Wiley & Sons, Inc., New York, 1942), 429 pp. Morey, Lloyd, and Hackett, Robert Philip. Fundamentals of Government Account ing. (John Wiley & Sons, Inc., New York, 1942), 448 pp. Municipal Finance Officers Association. Municipal Budget Procedure and Budgetary (Municipal Finance Officers Assn., Chicago, 1942), 100 pp. Accounting.

410

FINANCE

[Ch. 25

Municipal Accounting Statements, National Committee on Municipal Accounting. (National Committee on Municipal Accounting, Chicago, August, 1936), Bulletin No. 6, 156 pp. Parsons, William W. “Budgetary Control over Purchases Made Locally by Depart ments and Agencies,” Case Reports in Public Administration. (Public Administra tion Service, Chicago, 1941), Vol. 1, No. 34. Public Administration Service. The Work Unit in Federal Administration. (Public Administration Service, Chicago, 1937), 46 pp. Seckler-Hudson, Catheryn. Budgeting: An Instrument of Planning and Manage ment. (American University, Washington, D. C., 1944, mimeo.), Unit VI, 204 pp. Tenner, Irving. Cost Accounting and Work Measurement in the Federal Government. (Municipal Finance Officers' Assn., Chicago, 1943), 80 pp. (University of University of Tennessee Record. Local Government Accounting. Tennessee Press, Knoxville, November, 1940), Vol. XVI, 29 pp. Unsigned. Report, outlining recommended administrative and financial systems and procedures for the Department of Public Property, City of Springfield, Ill. (Pub lic Administration Service, Chicago, 1937), 243 pp. Washington Chapter, SAM. Financial Control System of the Tennessee Valley Au thority: A Case Study. (American University, Washington, D. C., 1944, mimeo.), variously paged. Young, E. Hilton. The System of National Finance. (John Murray, London, 1924), 319 pp.

PERIODICALS Gordon, Joel. “Operating Statistics as a Tool of Management.” Public Administra tion Review (Summer, 1944), Vol. 4, pp. 189–196. Pearson, Norman N. “The Budget Bureau : from Routine Business to General Staff.” Public Administration Review (Spring, 1943), Vol. 3, pp. 126–149. Sparlin, Estal E. “The Administration of Public Printing in the States.” The University of Missouri Studies: A Quarterly of Research (Columbia, Mo., 1937), Vol. 12, No. 4. Van Wagenen, Richard W. “Financial Control: A Case Study.” Public Administra

tion Review (Winter, 1942), Vol. 2, pp. 40–49. Wilkie, Horace W. “Legal Basis for the Execution of the Budget.” George Wash ington Law Review (April, 1943), Vol. 11, pp. 265–301. Willmott, John F. “Work Programs and Municipal Budgets.” Public Management (September, 1945), Vol. 27, pp. 264—267.

CHAPTER

26

PURCHASING AND PROCUREMENT Advantages of Centralized Purchasing

of

a

net saving 1

per less than everyone, except

by

at

is

It

of

15

on

things other than personnel. Such centralization results per cent, the average, an administrative cost spent." agreed practically cent the amount

of in

of

of

or

all

By centralized purchasing is meant the maintenance of a central office which procures for most the agencies the government the needed

of

of

it

is

of

is

It

politicians, that centralized purchasing desirable. lowers both overhead paper work reduced, and permits the and unit costs, the volume Through adoption specifications. procurement, standard this form

of

permits saving

of

and

discounts through prompt payment full-time purchasing staff improves

of

expenditures,

it

of

is

of

deliveries, storage secured centralized supervision over inspection stock, interdepartmental and distribution and transfers and sales sur plus stock. Centralized purchasing facilitates closer accounting control over there

a

he

at

he

or

on

the purchasing office, bureau, division usually called the purchasing agent. goes without saying that should chosen the basis his qualification for the work. He should appointed by the chief administrative officer, under civil service rules, and

be

of

be

on

It

he

is

charge

of

The person

in to

is he

by

at

by

of

idea said also aid the vendor because can save money soliciting buying many; and time business one office instead reducing orders and deliveries for the same sales total; and saves government accounts.” thus enabled reduce his paper work

is

purchasing

to to

of

invoices. The employment buying technique and tends eliminate graft and favoritism. The central

the

as

authorities considerations, well

a

of

a

to

is

due

accounting

“red tape” connected with centralized separated from the fact that the purchasing office the administrative structure. Various personal relative

in

the complaint to

purchasing

is

Much

of

a

in

be

is

be

secure during good behavior. Purchasing staff intimately tied up with the other financial func function which should tions, preferably occupying bureau central department finance. his tenure should

of

as

faulty charter organization, keep the purchasing agent from bringing about the type cooperation which would eliminate

4

p.

\

&

*

II

4.

p.

of

of

a

1

Russell Forbes, The Organication and Administration of Governmental Purchasing Purchasing Agents, New York, Rev. ed., 1941), pp. 38–39; Jos. Office (National Assn. (Milwaukee, 1937, mimeo.), W. Nicholson, Value Centralized Purchasing Bros., New York, 1929), Russell Forbes, Governmental Purchasing (Harper 19.

FINANCE

412

i

[Ch. 26

unnecessary paper work and delay. If the accounting authorities and the purchasing bureau were in the same department under a director of finance

with coordinating

to: (1)

power, the accounting routine could be simplified so as prevent delay through the cluttering of requisitions on desks of

departmental officers,

(2) departments could

be compelled to group

their

orders and raise the gross purchase per order, and (3) the number of orders could be reduced. In other words, departmental routine which, if excessive, tends to nullify the good effects of centralized purchasing, could be brought under control. Some progress is being made in the direction of centralization of chasing between jurisdictions through what is known as cooperative

It

chasing.

jurisdictions in

pur pur

area pool Some progress in this direction has been accomplished

comes about when several

a particular

their buying power. by the city, county, and school district in Cincinnati and Milwaukee. The League of Municipalities has done some purchasing for cities in some states,

in Michigan; and in some places the County Superintendent of Schools buys some few standard items for the school districts. Cooperative pur chasing is an extremely difficult move to bring about, for it is resisted by local merchants in various municipalities who would be deprived of busi ness by the pooling of orders and awarding them to some large vendor. Moreover, it is difficult to get the users in the several jurisdictions to agree as

it,

upon the standardization necessary to reap the rewards of large-scale buy ing. Another very real obstacle is the disinclination of the several purchas ing departments to yield a part of their authority to some other. They do

to

in

of

not say so because it would not be good taste to admit but they are very apprehensive that cooperative buying will reduce their own importance and possibly necessitate painful economies the purchasing offices the local jurisdictions. However, probably the main obstacle cooperative pur

by

at

to

nature and not imposed

Brief Summary

of

have been voluntary

of

the desire

in

these

is

keep the business local businessmen home. For very reasons, the successful programs for cooperative purchasing

chasing

statute.”

Purchasing Procedure

of

in

to

or or

to

go

If

a

it

or

an

If

goods, administrative unit wants some article makes out requisition. the items desired have been standardized, the requisition will state the standard specifications code description. The requisition will charge either the purchasing agent those the appropriation

be

to

is

to

to

If

a

to

pre-audit accounts for determine whether the spending agency's appro priations warrant the proposed encumbrance. the pre-audit made prior going purchasing agent, the the amount entered will often have in

5,

in

at

of

a

*

summary see Paul Beckett and Morriss Plotkin, Governmental Purchasing For the Los Angeles Metropolitan Area (University California Los Angeles, Studies Local Government, No. 1941), pp. 130–180.

Ch. 26]

PURCHASING AND PROCUREMENT

413

an estimate and the entry will have to be corrected subsequently. If the pre-audit is made after the purchasing agent has put in the exact amount, this will be obviated. If the goods desired are carried in the purchasing agent's storehouse, he will authorize delivery therefrom; however, if the goods must be obtained from an outside vendor, he will either make out a purchase order on an existing long-term contract or solicit bids. If the amount to be spent is above a certain amount, say, $500, the law usually requires

that the purchasing agent advertise for competitive sealed bids. If it is below this amount, the purchasing procedure and bidding may be quite informal. The legal instrumentality for consummating the purchase may be either a purchase order issued by the purchasing agent or a formal contract signed by both the purchasing agent and the vendor. When the goods are received, they should be inspected either by someone specifically charged with that duty by the using department or by representatives purchasing office. Those receiving the goods should make out a form

of the show

ing the items received in sufficient detail to permit the accounting office to compare it with the vendor's invoice. If everything is satisfactory, the accounting

office prepares a payment warrant, by the treasurer is negotiable at any bank.”

which when countersigned

Securing Competition One of the purchasing agent's principal responsibilities is to stimulate competition among vendors for the government's business. In this respect he may be in a very favorable position in comparison with many of his brother purchasing agents in industry who are continually hampered by the necessity to observe reciprocity with other firms which buy from their firms. The government purchasing agent who knows his business, and who operates under a good law which protects him from political influences, is in a splendid position to get bottom prices—and this end.

many actually do achieve

In order to secure competition the purchasing agent will frequently have to combat collusive bidding, not only the collusive bidding of corrupt con tractors, but that type which is fostered by the agreements of trade associa tions. During the period of the National Recovery Administration in 1933, and some time thereafter, public purchasing officers were continuously plagued with identical bids on a wide variety of equipment and supplies. The members of trade associations had agreed upon specifications and prices, and they were afraid to incur the discipline of their fellow members by underbidding. The purchasing agent can combat this sort of thing if he * Carl H. Chatters and Irving Tenner, Municipal and Governmental Accounting (Pren tice-Hall, Inc., New York, 1940), p. 247; William W. Parsons, “Budgetary Control Over Purchases Made Locally by Departments and Agencies,” Case Reports in Public Adminis tration (Public Administration Service, Chicago, 1941), Vol. I, No. 34.

FINANCE

4I4

[Ch. 26

he

all

The purchasing agent should publicize

the government's

requirements

in

in a

to

he

a

is

in

all

has been given sufficient flexibility by the law; for when confronted by identical bids he should have authority to ignore the bids and buy the cheaper than the bids. Further open market when such transaction more, reject should have the authority bids when feels that the bidding has not resulted good deal for the government.

fraternity feels that

in

of

to

of

bidding. While purchasing laws order solicit the widest possible field frequently require the advertising newspapers, the purchasing bids to

is

or

means

a

tion from vendors

of

by

to

it

in

on

is

It

are not commensurate with the expense. usual announce forthcoming purchases and the dates for submitting bids the bulletin boards the purchasing office. However, would seem that the most effective way stimulate competition direct solicita the returns

letter, postcard,

telephone.

Conse

in a

be

the competitive sealed bid, sealed envelopes such particular date advertised

in

is

of

public purchasing deposit wherein the vendors their written offers tampered with. At manner that they cannot

in

The distinctive feature

search -

a

a

of

Office even has staff trained librarians which aids the buyers ing for potential vendors.

in

of

of

quently, the purchasing office should have files containing the names and every possible bidder. The City addresses New York Purchasing

by

be a

is

is

so

in

of

advance, these envelopes are opened publicly the presence bidders publicly announced. Usually and salesmen, that the lowest and best bid required for purchase above such bidding certain sum, say, $500, and often the law requires that the contracts awarded the governing be

by

to

In

as

or

if of

board, such supervisors, although good the city council the board purchasing theory does not recommend this the purchasing agent can responsible. practice good purchasing held offices tend follow the

in

to

public record,

as

a

bids, open them publicly, and make the award matter large purchases where such procedure the case

by

In

of

law, formal bidding procedure even when not required order estab probity among vendors. lish good faith and other words, they ask for

or

in

to

in

of

is

of

in

of

required law. requirement public The the sealed bid and award the order contract, while designed promote fairness and honesty public purchas particular situations. Vendors are ing, does have certain disadvantages

of

to

a

be

quote their lowest prices when they know that the public record and their quotations made matter

competitors.

Furthermore,

even

though

there may

be

thus revealed

to to to

transaction

is

sometimes reluctant

at

or

on

or

to

of

as

some doubt the legality the practice under antitrust and unfair trade acts, the fact remains that certain trade associations tend price arrive agreements, whether tacitly explicitly expressed.

in

of

a

of

in

up to

In

by

or

is

It

require that bidders public purchases con surety, either struction contracts put the form token payment by surety bond. highways certified check the construction the quite customary

Ch.

-

PURCHASING AND PROCUREMENT

26]

State of New

415.

York and for central purchasing for the City of New York,

statistics have been kept which show that requirement of such surety is no protection to the state or city. The usual premium for a surety bond in highway construction projects is one per cent, which is added to the contract Experience in New York furnishing State shows that the of such a bond is no assurance that a proj ect will be completed, and that the bonding company fails to complete the work in about two-thirds of the cases where the contractor defaults. Weak contractors can secure such bonds just as easily as strong contractors. The price and thus paid for ultimately by the taxpayer.

cost to the state in those instances where no bond is required is much less than the cost of the premium when bonds are required." The requirement

has been discontinued by the Commissioner of Pur chasing of the City of New York after experience which indicated that any bidder, regardless of responsibility, could obtain such a bond. The prac prescribed form data per tice now is to require bidders submit

on a

to

on

to

their business and financial standing prepared and signed public certified accountant." purchase There was during the 1930's increasing tendency

by a

taining

to

all

of a performance bond

long

it

is

of

of

by

a

term agreements with maximum price, but giving the government the any reduction evidenced open market trends. Among the benefit advantages such procedure the fact that facilitates budgeting by as a

in

It

numerous small orders. constantly looking forward—to

thinking

in

procedure does requires the pur be

to

the fact that bidding

on

due

of

to

not need resorted chasing department

be to

in

procurement

be

delay to

and

in

is a

a

be

furnishing definite price structure which can counted upon maxi paper work mum during the budgetary period. There reduction also

future market trends and economic conditions rather than focusing attention upon the spot market. The vendors are benefited since they can plan their work load, because they know what business expect and when period purchasing the demand will come over time." This type during depression years buyers' flourished the 1930 when market pre vailed, but tended wane because the uncertainties the war market of

of

the early 1940's.

Control

of

the Purchasing Process

Standardization.—The course,

of

a

Of

is

adopted.

it

accomplished through

maximum possible amount buying should upon specifications items which standard have been impracticable and impossible from time and

be

in

to

of

a

a

of

to

terms

to

of

4.

p.

of

of

of

a

of

B.

on

* *

p.

11

*

of

State New York Department Public Works, Special Report the Legislature Lyon Co., Albany, Regarding Waste Contract Bonds for State Building Projects (J. 1935), pp. Purchasing Office, Forbes, The Organization and Administration Governmental 45. Annual Report the Purchasing and Stores Department the County Los Angeles, 1937–1938 (Los Angeles),

FINANCE

416

[Ch. 26

to standardize a myriad of small items normally in cluded in governmental purchasing; however, the range of items amenable to standardization is always increasing. The leadership exercised by the economy standpoint

of

to

is a

to

be

is

be

shortening certain monopoly brand thirty years; yet the county must buy shortening for

of

the hospital wants

he

at

pastry cook

a

nated.

for the process

to

People

a

to

is

arduous and fraught with difficulties. not like standardized any more than they like coordi Furthermore, standardization threat individualism. The

standardization; do

to

It

its

purchasing department in stimulating the adoption of standard specifications will constitute alertness and progressive in no small degree a measure of extremely easy drop into ness. mental state defeatism relative

through

interdepartmental

if

be

it

is

of

accomplished

an

it

to

of

be

a

has used for they dozen other institutions, and quantity buying would facilitated could all use the same product from the same source. achieving standardization are Because some the principal obstacles human and personal rather than technical, recommended that

which

standardization

of

if

a

be

a

in

a

in

at

agent shall

be

committee chairman. Standard specifications being accepted by arrived this manner stand much better chance agencies they preparing them; however, the because have had hand such standardization committee will successful only the purchasing

which the purchasing

a

it

if

to

agent has sufficient enthusiasm for the project provide sustained leader ship. Such goes committee will have accomplished great cash savings

be

of

of

products by monopolistic trade no further than preventing the purchase Very frequently commonly brands. such trade brands are composed purchased under the ordinary trade specifi known ingredients which can

of

by

in

of

at

10

per cent cations less than the monopoly brands. This has been especially true cleaning compounds and chemicals used the case

janitors. to

a

in

is

position develop not specifications already its own standard can benefit the work done by the federal government through the Federal Specifications Board and the Na tional Bureau of Standards.” Certain technical societies and trade associa

Goods

on

Inspection

by of

tions have developed standard specifications for such items supplies and fire hose.”

Delivery.—Purchasing

as

by

The small purchasing department which

water works

theory requires that and quality,

inspected

quantity

is

in

be

vendors should for but one left with the impression that practice this respect ordinarily quite theory. purchasing department falls short The will naturally spect the goods delivered warehouses under its own jurisdiction, but

goods handled

to

of

in

of

*

p.

*

of

C.

a a

Purchasing Office, Forbes, The Organization and Administration Governmental 42–43. Federal specifications can be obtained for small fee from the Government Printing Office, Washington, D. Purchasing Agents, New Jos. W. Nicholson, County Purchasing (National Assn. York, 1940), 59.

pp.

Ch.

PURCHASING AND PROCUREMENT

26]

417

inspection

of goods delivered to other departments is frequently outside the jurisdiction of the purchasing agent. Thus, in the City of New York this is the Comptroller's responsibility. A purchasing department which is sufficiently large to justify it should have an inspection division with a

be

of all

corps of traveling inspectors. If they find it impossible to inspect each and every delivery, they should develop a system of sample inspections departments will so that covered. The inspection division should have

of

of

the specifications and the orders which require inspection. Daily reports the inspectors should show whether goods are delivered when promised, whether deliveries comply with specifications, and whether the copies

their services are available

fee basis

Emergency

Furthermore, commercial

public works.

all

to

even the smaller metropolitan

on a in

in

the department testing laboratories now exist

of

ing projects

of

of

a

inspector recommends laboratory test.” Very few purchasing departments have technical testing laboratories their own, but many the larger governmental jurisdictions have laboratory testing facilities for engineer cities where

jurisdictions.

as

Russell amounts such

Forbes $25

a

as

by

emergency purchases

to

agency.

the central buying suggests limiting such purchases very small

of

post-examination to or

require

be

to

to

in

to

be

of

in

to

is

to

necessary permit the administrative Purchases.—It purchase items for emergency purposes without going through the units purchasing agency. The difficulty arises interpreting just what central constitutes an emergency. Without some form central control the tendency will for normal needs become emergency purchases subterfuge retain the purchasing authority the department. There seems no foolproof solution for this problem. Some governments

less.”

controls

to

it

of

In

is to

all

of

a

of

best

of

emergency purchasing authority avoid abuses requiring complete explanation are the full and and written justification the emergency purchase within twenty-four hours the time was require emergency purchases made. Another device clear through

The

of

to is

if

be

of

by

is

the purchasing office, except when that office closed.” case extreme urgency the clearance emergency purchases the central purchasing verbally telephone necessary. office can made over the The point

* ** 19

Ibid.,

p.

60. Forbes, Governmental Nicholson, op. cit.,

Purchasing, pp. 205–209. 36.

need

they are not engaged

large storage

in

private concerns because

p.

facilities

as

Storage and Warehousing.—Governments seldom

as

defeat the purposes

of

of

subterfuge

to

used

as is a

this loophole will central purchasing. chases,

be

of

an

be

given carte blanche authority that the using departments should not interpretation emergency. Unless make their own what constitutes given some control emergency pur the central purchasing department

production

FINANCE

418

of commodities for

sale.

[Ch. 26

They are, therefore,

not interested in keeping

great quantities

on hand to meet production schedules. Administrative units situated in or near cities which constitute ready markets need not store supplies to as great an extent as those situated at a distance from markets. It costs money to store goods. *

To the selling price plus transportation must be added the cost of handling the goods at least twice—when put in storage and when issued; clerical and labor costs of stores accounting; rent or interest on storeroom building and equipment; interest on stock investment for storage period; and depreciation of goods through obsolescence.”

This cost of storage should

be added to the purchase price

of

each

com

modity,

and compared with the prospective price for current deliveries. From this computation there can be reached a decision as to which items can be most economically stored and which procured through current de livery. The question of whether the articles will be currently available

in

The point is that the storage an

all

by

must, of course, enter into the determination. things used of the government not

in

of

be

is

end itself. Some items should stored and others should not. Price trends, availability for current delivery, and the cost storage are the chief considerations determining what should and should not be stored.

of

as

as

be

supplied periodically with inventories control agency should hand, well with statements items received and issued.

of

it is

Even though the individual departments store their own goods, desirable to have some sort of control over these activities. The central

stock on This tends

by

a

of

to

in

prevent loss and gives the purchasing office data necessary making purchases. reports budget future Such also constitute means control informing the budget agency how the departments are keeping within

at

their allotments for supplies. Some storekeepers find perpetual inventory systems convenient, both for furnishing data for these reports and for maintaining their own control. The purchasing division should have authority

keeping records and methods and over methods taking inventory. While central warehouses might very expen given instances, arguments largely certain the seem favor

in

sive keeping

be

in

times

to

of

be

of

least advisory

in

is is

is

in

is

It

a

of

central storehouse. claimed that costs are thereby reduced; cheaper secured; easier and deliveries are the total investment stock less; storage space provided for bulk purchases; and the delay inherent special purchases reduced. The territorial layout must inevitably have

*

Forbes,

Governmental

Purchasing,

250.

be in

is

p.

a

of

to

of

only some relation the number storehouses. Central storage found very governments. The central stores should small percentage closely associated with the purchasing agent, preferably under his control.

Ch.

PURCHASING AND PROCUREMENT

26]

Physical inventories year.”

of stock

419

hand should be taken at least once a

on

-

Storerooms supplying more than one organization unit should be oper ated on a revolving fund basis. The agency in charge of financial functions should have control of revolving funds. A revolving fund is established by making available to the storage agency a certain sum which represents a capital operating fund, from which supplies are purchased and paid for. When a department requisitions goods from stores, it must reimburse the revolving fund by a debit to its appropriations. Hence, each administrative unit is charged, for budget purposes, with every item it receives from stor The cost of storage should be added to the purchase price in making the charge to the requisitioning department. Sometimes this is obtained by

age.

adding a flat 5 or 10 per cent. This method of adding the cost of storage to the purchase price is preferred to a direct budget appropriation for the support of the stores unit, because then the cost of storage is reflected where

it belongs for accounting purposes. Salvage.—It

is generally agreed that the salvage of unused and un equipment serviceable and supplies should be a responsibility of the purchas ing department. However, the purchasing agent is frequently hampered in this respect by virtue of the fact that the law gives power to dispose of government property to some other official, or else it is not clear whether anyone has such authority. Hence, the purchasing law should be very ex

plicit in giving

agent the power, “To transfer to or be tween . . . departments and agencies, or to sell supplies, materials and equipment which are surplus, obsolete, or unused.””

Equipment

the purchasing

Control.-There

is a tendency for unused, obsolete, and surplus equipment to deteriorate or even disappear unless some systematic or

of

be

by

to

be

it

if,

or

is

if

it

of

a

is

of set

pos up. There ownership means of control is natural feeling session on the part the individual departments arising out the belief that, surrendered, possible regain unused equipment will not authorizing when, needed. Otherwise, economies can achieved of

as

be

its

at

a

of

it

to

to

permanent inventory equipment the purchasing department maintain authority present with the reallocate when not needed location. equipment such given The individual pieces desks and chairs can

of

Association

a

automobiles

of

National

pool

º

p.

p.

** **

Ibid., 269. From model county purchasing law proposed Agents: Nicholson, County Purchasing, 33.

a

of

maintained by

Often there

is

in

is

serviced, and repaired.

or

to

º

to

serial numbers facilitate accountability. The same principle applies automotive equipment although responsi bility placed public works more often the department central automotive bureau through which the trucks and automobiles are housed,

Purchasing

FINANCE

420

which public

will

[Ch. 26

be rented out to the departments at predetermined

rates. Some departments works have found it advisable to control their heavy equipment such as power shovels, tractors, and rollers in this manner.”

Service Control.-There

are certain types of service which can result in excessive cost unless some central unit is made responsible for their eco nomic operation. These include such items as mail, telephone, printing, stenography, and duplicating. Usually the purchasing authority to deal only with printing and duplicating.

department is given

Printing is often a very knotty problem because of the fact that it is so closely associated with the publishing business, and there is a certain type of publisher who has very strong political connections. One of the most difficult situations with which Russell Forbes had to deal, as Commissioner of Purchasing for the City of New York, was the corruption connected with the procurement of printing for that municipality. A study made for the mayor recommended that the city's printing be taken over by a government corporation, to be known as the New York City Printing Authority.” Other suggested means of control are for the government unit to maintain

a small force account plant to serve as a yardstick against purchasing costs. Such a plant could be authorized to bid upon government printing contracts.” The United

States Government maintains a very large printing establishment in Wash ington, D. C., known as the Government Printing Office, headed by the Superintendent of Documents. All government printing is required by

negotiate purchasing

printing directly.

It

permitted

of

should not

to

be

let

law to be performed by this plant in the absence of specific statutory authorization to the contrary. Whether printing is done entirely in a pub licly owned plant or out on contract, the various using departments

in

a

of

its

of

in

of

in

be

should centralized some spot, preferably the purchasing office. Duplicating mimeographing and multigraphing offers the form problem Departments own. have sometimes been accused excessive in

order

escape

unit will arouse the ire the using departments virtue includes certain amount of overhead in the unit cost

Estal 1941), Vol.

E.

**

Report

Honorable

Berkeley

pp. 204-210.

a

(Public Administration Service, in

Administration of Municipal Printing H. La Guardia (officially published, New York,

Sparlin, “Printing Scandals Investigated,”

XXX,

of

the clerk who runs small cost when compared that

Forbes,

F.

Herlands and Russell .

*7

Yºgº. William

56.

to

1940),

B. p.

*

Arthur Harris, City Manager Government

Chicago,

department with to

of

to

figure the time

showing

in

make

a

to

thus enabling

it

it,

On the other hand,

it

bills the departments. mimeographing machine may fail

for which

a

a

of the fact that

it

of

mimeographing

by A

to

to

or

budget

to

restrictions placed upon the printing printing. There are undoubtedly upon avoid central control sound reasons for permitting departments have their own mimeograph ing equipment under certain conditions and for certain purposes. central

mimeographing

National Municipal Review (April,

PURCHASING AND PROCUREMENT

Ch. 26]

42I

of the central unit. The centralization and decentralization of mimeograph

of a

to

it

a

of

to

its

ing is undoubtedly something which must be decided in the individual case. duplicating services The purchasing department will do well to sell the departments on voluntary basis quality, service, and cost.” Large organizations frequently find profitable establish central mailing room. This obviates the necessity for keeping supplies stamps to

in

in

the individual offices where they will almost inevitably come for some petty pilfering. The central mailing room should have the authority sam see that personal correspondence does not become

no

to

one

to

the most perplexing services hold within prone telephones economical bounds. Workers are use office for personal calls without realizing that calls are metered and charged for separately.

is

Telephone expense

of

a

to

ple audit outgoing mail public charge.

of

way

to

be

seems

it

to

a

In is

is to

no

to

In

by

to

control the abuse the telephone other than constant training and supervision. some instances has been found possible confine telephones inside calls, authorizing the switch board organization. honor calls outside the This drastic remedy which

There

would apprise those

the

a

it

to

give them up; however, there are conditions which call for the stenographic pool.

loathe

function

necessarily service which fits into the category Officers want to have their own secretaries and are

is

purchasing office, under consideration.

not usually considered

con

well.

of

While the stenographic pool

is

cerned when air mail and telegraph would answer just

a

program

as

training

A

under what circumstances.

in

to

to

as

to

be

any case there should extreme situations. long-distance certain definite rules relative and toll calls, with specific regulations put who should have the authority such calls and in

justified probably only

and circumstances

Federal Purchasing Setup

of

is

its of

activ

it

is

items included

such contracts are contained

general schedule

of

a

in

by

duties and equipment

in in

expanding sphere

of

in an

business under

which has been existence. One most negotiate indefinite-quantity contracts for supplies common use the various government branches. The

the decade

important

in

ity during

volume

of

ever-increasing

to

an

in

a

in

of

of

The Procurement Division the Treasury Department was established 6166, under Executive Order No. dated June 10, 1933, with the objective introducing purchasing for the some degree central supervision first time federal administration. While such central supervision far from being realized, the Procurement Division has, nevertheless, handled

sup

of

of

ff.

to

p.

in

of

a

*

duplicating and mimeographing For discussion federal departments see Brook Byrd Committee, Investigation ings Report Erecutive Agencics the Government, Printing Office, Washington, Senate Report No. 1275, 75th Cong., 1st sess. (Government D. C., 1937), 225

FINANCE

422

[Ch.

26

plies which the departments are expected to use when procuring goods in the categories covered. The testimony of the Director of Procurement before a Senate committee in 1941, requesting restoration of appropria tions for a statistical unit, indicated that the Division is not doing the pur chasing for a considerable sector of departmental procurement and that it does not know what the departments are buying. It was to secure such information to be used in negotiating long-term contracts that it desired to set up a large statistical unit.” The Division does a good deal of servicing for the departments located in Washington; for instance, it has a warehouse where the departments may secure articles in common use, and such warehouses are being estab lished in the field. It maintains fuel and coal yards. It transfers, recondi

tions, and disposes of unused equipment; for example, during 1941 approx imately 25,000 typewriters were overhauled and adjusted. It runs a garage

of

a

as

of

all

which services automobiles in Washington. The Division of Procurement did the purchasing for the Work Projects Administration and the part National Youth Administration, the emergency relief program.

Thus,

Navy has

a

of

by

war materials

is

the great mass

of

in

of

do

to

It

It

of

to

in

of

its defense and war responsibilities has been the procurement spe remedy shortages critical and strategical materials under Congress. cial act has also been charged with the purchase indus products purchased goods trial under the Lend-Lease Act. has for refugee relief and turned them over the American Red Cross.” The War and Navy Departments and the defense agencies their own purchasing for the most part. They may, and do, utilize the long-term con Washington, but tracts the Procurement Division for materials used One

goods

purchased

each department

itself. is

in

the Division

of

of

more extensive discussion

of

competition.” For

a

in

by

a

a

of

Supplies and Accounts which Bureau effect Navy purchasing department centralized for the itself. Goods are bought upon specifications, and normal times the advertising bids and open the

Procure

ment see Chapter 23. SELECTED READINGs BOOKS AND MONOGRAPHS

in

of

at

in

of

F.

Accounting Procedures the United States Government. (Public Administration Service, Chicago, 1940), 155 pp. Beckett, Paul, and Plotkin, Morriss. Governmental Purchasing the Los Angeles (University Metropolitan Area. California Los Angeles, Studies Local Government, No. 5), pp. 130–180. E.

Bartelt,

of

in

**

D.

**

of

p.

D.

3d

R.

of

**

Treasury and Post Office Departments Appropriation Bill, 1941, Hearings before the 8068, 76th Subcommittee the Committee on Appropriations, United States Senate, H. Printing Office, Washington, Cong., C., 1940), sess. (Government 43. Printing Office, Wash Annual Report the Secretary the Treasury (Government ington, C., 1941), pp. 265–268. Symposium, “Administrative Problems Naval Procurement and Logistics,” Public Administration Review (Autumn, 1945), Vol. V, pp. 289–349.

PURCHASING AND PROCUREMENT

Ch. 26]

423

Brookings

*

Report to the Byrd Committee. Investigation of Erecutive Agencies of the Government. 75th Cong., Senate Report No. 1275 (Government Printing Office, Washington, D. C., 1937), pp. 225–256. Buck, A. E., and others. Municipal Finance. (The Macmillan Co., New York, 1926), pp. 266–286.

Forbes,

Russell.

Governmental

Purchasing.

(Harper & Bros., New York, 1929),

370 pp.

Forbes, Russell. The Organization and Administration of a Governmental Purchasing Office. (National Assn. of Purchasing Agents, New York, Rev. ed., 1941), 48 pp. (Municipal Administration Service, Forbes, Russell. Purchasing for Small Cities. Publication No. 25, New York, 1932), 18 pp. Glaser, Comstock. Administrative Procedure. (American Council of Public Affairs, Washington, D. C., 1941), pp. 84–97. Harris, Arthur. City-Manager Government in Berkeley. (Public Administration Service, Chicago, 1940), 70 pp. Harris, Walter O. Institutional Cost Accounting. (Public Administration Service, Chicago, 1944), pp. 38–50, 90–106. Harris, Walter O. “Recording Purchase Requisitions for Budgetary Control,” Case Reports in Public Administration. (Public Administration Service, Chicago, 1939), Vol. 1, No. 11, 5 pp. Herlands, William B. (Commissioner). Purchase of School Supplies in New York City. (Department of Investigation, New York, 1942), 207 pp. James, Herman G. The Protection of the Public Interests in Public Contracts (Public Administration Service, Chicago, 1946), 90 pp. Parsons, William W. “Budgetary Control over Purchases Made Locally by Depart ments and Agencies,” Case Reports in Public Administration. (Public Adminis tration Service, Chicago, 1940), Vol. 1, No. 34, 4 pp. Stone, Donald C. The Management of Municipal Public Works. (Public Adminis tration Service, Chicago, 1939), pp. 126, 149, 268–281. Unsigned. “Municipal Purchasing from Local Merchants,” Case Reports in Public Administration. (Public Administration Service, Chicago, 1941), Vol. I, No. 39. Willoughby, W. F. Principles of Public Administration. (Johns Hopkins Press, Balti more, 1927), pp. 381–425.

PERIODICALS Forbes, Russell. “Measuring the Efficiency of a Governmental Purchasing Depart ment.” Public Management (October, 1931), Vol. 13, No. 10, pp. 329–334. Hughes, J. W. “Centralized Control Over Municipal Stores.” Public Management (July, 1932), Vol. 14, No. 7, pp. 222–224. Millett, John D. “The Direction of Supply Activities in the War Department: An Survey.” Administrative American Political Science Review (April and June, 1944),

Vol.

Symposium.

38, pp. 249–265, 475–498.

“Administrative Problems in Naval Procurement and Logistics.” Administration Review (Autumn, 1945), Vol. 5, pp. 289—349.

Public

CHAPTER COLLECTION,

27

CUSTODY, AND OF RECEIPTS

DISBURSEMENT -

The Treasurer

The treasurer is the officer whose duty it is to collect, to have custody of, and to disburse the money of the government. His duties being largely routine and technical in nature, he should be appointive and subject to the administrative control of the governor, mayor, or manager. He might very well head a “bureau of the treasury” in the department of finance. State and city treasurers, however, are very largely elective. This should not be, the duties of a treasurer are not of a policy-determining nature. While there are no statistics to prove such a contention, observation sug gests that there are more cases of defalcation by elective than by appointive because

This is largely because the elective treasurer is not under the administrative control of the chief administrative officer. As a result peri treasurers.

odical checks are not made; administration

becomes

lax

because the elective

treasurer resists encroachment on his domain by the council or manager; and consequently those niceties of accounting practice which would soon reveal defalcation are not observed. Oakey lists six methods by which a treasurer may default. The conceal ment of the theft of cash receipts may be attempted by omitting the record. Cash receipts may be taken with the intention to return them and make the record at that time. Bond interest coupons may be presented a second time for payment by the treasurer himself before being cancelled. Another way to steal is through the “theft of unissued bonds, the forging thereon of the signature required to complete, and the hypothecation of the sale thereof.” Coupons may be stolen from bonds held in the treasury for safe keeping, and there may be collusion with brokers in order to effect overpay ment in settlements for bonds purchased.* There are many other ways of defalcating.

Custody of Funds Funds may

treasury, they may be deposited in banks, or certain special funds may be invested in specified secu *

Vol.

be retained in cash

Francis Oakey, “Standards No. 5, pp. 161,

XXXVIII,

in

the government

of Financial Administration,” American 163.

424

City (May, 1928),

COLLECTION, DISBURSEMENT OF RECEIPTS

Ch. 27]

425

all

rities retained in the custody of the treasurer. As an aftermath of the “wildcat” banking era, several states maintained the “independent treasury system” far into the twentieth century. Because of the fear of banks, the liquid resources of the government were kept in the form of cash in the treasury vaults.” Practically governmental areas today deposit their in

current liabilities, banks. These are placed accounts, one active for checking purposes and the other two types inactive. The inactive accounts far outnumber the active accounts because interest just

do savings accounts

for indi

of

of in

all of in of

of

of

In

at

to

the banking business since 1929 has tended governmen reverse the attitude banks the acceptance and handling high business activity the banks could lend tal deposits. the old days profitable rates interest the deposits they could get; however,

of

The changed condition

as

higher rate

of

they earn viduals.

a

in

of

to

surplus moneys, applicable

or

no

to

the last decade they have been unable invest profitably large portions their liquid assets, with the result that the surplus funds deposited by the treasurer now earn little interest—the normal rate being possibly

of

to

to

of

of

one-half one per cent. Furthermore, the banks frequently accept public deposits with some reluctance because the fairly general practice re quiring them deposit with the treasurer collateral sufficient cover the

in

is

of

of

on or

trying

of

of

to

insure absolute safety for government deposits: personal surety, the deposit collateral security bonds, and the furnishing cor porate surety bonds. By the first plan, supposedly responsible individuals

of

ways

favored

be

demand

a

bank depositors. money paid whether some sort assurance that their will the bank fails not. This one the reasons why governments receive general, three lower interest bank deposits than individuals. There are,

They require

position

as

of

the deposit. Governments usually

amount

to

in a

of

In

case

failure, their

of

well

the depository. those the public.

of

officers as

such bonds are signed assets are usually lost

as by

of

be

to

of

to

sign instruments purporting are asked make them responsible for loss government funds specified bank. Experience has demonstrated this obtaining security, usually because the least satisfactory means

to

of of

in

on

of

to

at

it

be

is

the one which gives the greatest assurance that public deposits will protected because requires the banks insure the public treasury by placing therein bonds and investments least equivalent the amount the deposit. The banks still own the bonds and receive the inter them, the difference being that they are est the vaults the govern

The second mode

6.

p.

in

State Funds (National Institute

is

of

L.

*

Faust, The Custody M. New York, 1925),

of

to

to

be

If

of

ment instead the bank. the bank should fail, this part its resources full, segregated pay the government deposits would while the depositors other would have take what was left. There some cost and Public Administration,

FINANCE

426

[Ch.

27

of

its

to

be

its

inconvenience in administering this type of surety because the collateral put up by the bank must be constantly audited and appraised to see that subjected market value covers the deposits, and the bank must the transferring expense trouble and own collateral back and forth from

sometimes referred

as

This

to

mium.

is

to

an

is

in

of

to

its own vaults the public treasury. insuring public deposits The third manner banks take out an insurance policy with insurance company, paying the appropriate pre the surety bond system; however,

it

to a

is

A

students sometimes confuse collateral bonds and surety bonds, with result ing confusion between the second and third systems. collateral bond an investment which bank owns and which has deposited with the it.

of

It

is

in

of

in

by of

an

be

is

A

as

guarantee the safety money deposited with treasurer collateral surety bond insurance policy which guarantees that the govern ment will reimbursed case loss. would seem that number two, namely, the deposit coming into collateral the bank the treasury,

to

of

to

in

to

be

more general use than the surety bond. This may due the fact that pay premiums days the banks are reluctant for bonds these when they accept public deposits. Furthermore, the collection even hesitate

in

long ago there was considerable authoritative sentiment favor depositories competitive bidding. bank on the basis The a

to

or

is

at

to

in

the possibility that weak bank might outbid get funds with which conceal embarrass On the other hand, the question often raised

in

this practice lay strong the bank order ment, least temporarily. in

danger

of

choosing

its

of

Not

so

an

-

to

a

of

govern surety bonds may involve delay and litigation. The deposits mental unit are insured under the Federal Deposit Insurance Act up the individual, but not beyond. $5,000 permitted

to

authority

of

a

to

the treasurer's

to

discretion and flexibility depositories.”

the soundest banks have not

bid, upon them; hence, authori large area favor under present conditions

deposits enough in

desired governmental tative opinion seems

of

that during the last decade some to

answer

is

to

be

of

be

is a

to

as

whether not every bank which member the Federal Reserve prima System and the National Banking System may not expected sound, government deposits. facie and therefore suitable bid for One

choose appropriate

Joseph

XIV,

F.

*

local commercial

Vol.

banks

an

by

is

officer upon through the United States cleared the presented there for payment and then through

Clark, “Protection Against Losses,”

pp. 9–15.

disbursing

is

authorized

of

check drawn

the Treasury

if

his account

in

ized depositories.

A

it

to

it

its

of

banking with the Fed The United States Government does most branches; however, necessary for the eral Reserve Banks and their government maintain accounts with the commercial banks throughout country, the with the result that has approximately three thousand author

Municipal Finance (February, 1942),

-

Ch.

27]

COLLECTION, DISBURSEMENT OF RECEIPTs

the Federal Reserve

Banking System, ultimately

reaching

427

the Treasury

where it is debited to the disbursing officer's deposit.* A very common past weakness in the treasury operations of state and local government is the maintenance of separate bank accounts by the departments which collect revenues. It has even been regarded as a normal

and acceptable practice for officials to place moneys, collected officially, in their own personal bank accounts and turn them over periodically to the treasurer. Departments should not be permitted to maintain separate bank accounts for themselves; they should deposit money collected in the urer's account daily, obtaining the proper receipt therefor."

treas

Collection of Revenues Accounting Control Over Collections.—The

accounting controls over variety the collection of revenues consist of a of internal checks established by the comptroller over both the treasurer and departmental collections and by the treasurer over both his own internal procedures and the collections made by other departments. In a preceding chapter which discussed the advantage of accrual accounting over cash accounting in budget control, it was indicated that revenue. should be accrued in the same manner as penditures. comptroller's

This would

ex

that the budgetary control accounts in the office would show the estimated amount of business licenses to be collected by the city. The periodical report to the city manager or mayor would show how actual collections correspond to the estimates and mean

of the rigor with which the business license ordi nance was enforced. The accrual of revenues has the advantage of placing on record the fact that there are certain sources of revenue from which par ticular amounts are reasonably to be expected. If they do not materialize, it may indicate dereliction or inactivity on the part of subordinate officials and such indication will become apparent before it is too late to retrieve the loss of revenues. The collection of the maximum revenues due the govern ment frequently requires aggressive action on the part of alert and fearless officials. Frequently a particular source of revenue may require the per formance of a ministeria] act on the part of a subordinate official such as the collection of rentals upon real estate owned by a city. Accrual account ing will tell whether or not such rentals are being paid. might be an indication

The accounting officer also maintains a current audit control over both the treasurer and the departments which collect revenues. The device used for this purpose is the administrative audit performed by his traveling audi tors who are constantly auditing every department where money is handled. They not only audit to discover the fidelity, legality, and adequacy of

col

. . *E. F. Bartelt, Accounting Procedures of the United States Government (Public Admin istration Service, Chicago, 1940), p. 62 f. * Montgomery County Survey Board, Montgomery County Survey, Dayton, Ohio (Public Service, Chicago, 1940), p. 339. Administration

a

FINANCE

428

[Ch.

27

lections, but they should have the power to install accounting systems, pro cedures, and internal checks which would assure the proper handling of funds from an accounting standpoint. If they do not have the power to compel the alteration of procedures, they should at least be authorized to advise and make recommendations.

C. H. Chatters and Irving Tenner lay down four rules to be followed accounting in for the proper handling of cash. It should be indicated (1) that receipts reach the treasury, (2) that disbursements are made only pursuant to legal authorization, (3) that both receipts and disbursements is

In

it

all

are accurately recorded, and (4) that cash on hand is accounted for." moneys collected are turned into the treasury, order to assure that desirable that no one but the treasurer have an official bank account.

money except upon warrants

signed

the

troller. The latter has pre-audited the proposed obligation before incurred,

comp it

pay out

treasurer

by

no

is

to

be

The second requirement, namely, that disbursement made only pur legal authorization, responsible for the requirement that the suant was

accurately recorded,

is

be

in

a

or

of

in

of

by

a

and had further internal check when the bill came due either payroll personnel, through the audit the case notice from the department concerned that the goods involved an invoice had been received. The third requirement, that both receipts and disbursements achieved through

proper accounting

records, both

of

is

in

be

the forms for original entry and permanent journal and ledger. All receipt serially numbered and forms should sets several carbon copies for particular elementary each' transaction. An internal check the proviso to

a

in

to

to

that the one who collects moneys should not have access the accounting pays money government go records. Gne who the should the cashier's window with statement that he has received either the mail or at receipt with serially The cashier makes out numbered forms and takes his data from the statement presented the

At

by

it

as

is

in

the receipt locked the machine where preserved for the auditor exactly will made out. Such internal checks serve minimize defalcations the handling cash.

of

least one copy

be

to

in

of

be

payer.

a

another separate window.

In

to

is

to

paid merely because they are due. will not aggressive necessary Positive and action enforce their collection. The alertness of the administrator and the earnest desire collect taxes when

Tax Collection.—Taxes

if

official psychology, the most important administrative

Chatters

and Irving Tenner, Municipal and Governmental 1940), 309.

tice-Hall, Inc., New York,

p.

“Carl

H.

...

intangible

of

in

in

of

it

to

due constitute intangible factors essential tax administration. the past has very frequently been the case that administrators have probably property taxes, especially during been lackadaisical the enforcement depressions the real estate market. However, one eliminates this

Accounting

device

(Pren

Ch.

will

27]

COLLECTION, DISBURSEMENT OF RECEIPTS

429

be, first, an adequate set

of tax accounting records, and, secondly, the internal checks concomitant therewith. The accounting records must show, in the first place, who should pay the taxes. In the case of real estate taxes this includes the maps in the assessor's office discussed below, the tax rolls, and the tax billing accounts maintained for each individual taxpayer. It is the assessor's job to know which property should be taxed, and it is the tax collector's job to see that each property owner pays; and each must have records to disclose what is due in this respect. The same principle goes on through sales taxes and income taxes. In the latten case the tax collector must develop some type of enforcement procedure which will discover those who should pay taxes, but who do not voluntarily report. This is the purpose of requiring employers to report to the income tax col lector the salaries paid to all employees. Both the state sales tax collector and the federal collector of internal revenue have corps of auditors who check the validity and accuracy of sales tax and income tax returns. Thus tax collection agencies develop ways and means of investigating and detecting tax evasion.

Over-All Tax Limit Laws.-It has

been a rather common assumption expenditure government that for local could be reduced automatically by limiting the levy on general property. To accomplish this objective, tax limitations have been placed in charters, statutes, and in state constitutions. In 1933 several states passed constitutional amendments imposing drastic

which would cut the revenues of local government by half or more. These provisions were usually passed in a frenzied and unreasoning spirit of protest against tax levies on real estate. At least half a century of limitations

with this type of tax limitation in a wide sampling of states shows rather conclusively that it will not bring a corresponding reduction in expenditure. In a large number of cases it has only served to increase the debt burden. Local governments have continued to spend in excess of limited revenue. They have not always done this wilfully, nor have they •been motivated by a spirit of irresponsible extravagance. The very people experience

demand a minimum standard of governmental services. The result is that local governing bodies find themselves unable to restrain administrative departments from spending in excess of reve who vote for tax limitations

nues. Annual deficits are carried over from year to year. Carried tempo rarily in the form of bank borrowings or registered warrants, a friendly suit permits them eventually to be turned into judgment bonds without notice. By failing to levy enough to take care of sinking fund obligations in their entirety, this practice can go on for years without increasing the tax levy for debt service to the protest point. Eventually, however, higher taxes must result. There is always a day of reckoning in

exciting

borrowing

for current expense. The authorities are overwhelmingly

of the

FINANCE

430

[Ch.

27

opinion that negative legal restrictions on the tax levy do not bring economy in government." They tend rather to increase debt. This does not mean that tax limitations constitute an absolute evil. There are undoubtedly many instances where a fair limit has acted as a moral deterrent. There is a certain minimum below which revenues must not fall to furnish desirable standards of service in any given governmental unit. If a tax limit is reasonably near that minimum, it may constitute a whole some guidepost to expenditure. If it is below that minimum, however, expenditures

will tend to exceed income in spite of legal provisions to the contrary. Ordinarily, relief will come through borrowing by means of sub terfuges of which the community may or may not be aware. In other instances special ad hoc districts with their own special tax levies will absorb functions formerly belonging to the city. Sometimes assessed valua tions will be increased; again, special concessions from the legislature will circumvent restrictions.

Debt Administration of principal and interest, of a total municipal indebtedness of $18,500,000,000, was in default. This situa tion is not especially new in American history. There was an epidemic of state defaults in the 1840's. A number of Southern states have refused to honor and pay obligations incurred just after the Civil War, and a com mittee of foreign bondholders is still trying to collect about $75,000,000 in principal owed by eight American states.” Inasmuch as a state cannot be 1933, $1,200,000,000

Several cities also defaulted booms and railroad-aid

estate

apparently

to

no legal way collect. bonds during the period 1840–1850. Real borrowing hastened further municipal de

is

own consent, there on

sued without

its

In the summer of

a

to

a

of

in

of

the 1870's and 1880's, while the panic 1893 brought few more. period high municipal solvency The era from 1900 1929 marks with comparatively few municipal defaults. faults

of

of

Probably the worst period default for bonds local governmental jurisdictions was the decade following the industrial depression beginning

of

in

P.

C.

of

of

of

of

in

of

p.

*

J.

in

S.

G.

B.

in

5,

F.

L.

in

of

C.

R.

*

Atkinson, The Effects Tar Limitations upon Local Finance Ohio (privately Cleveland, 1923), pp. 106–127; Spangler, Operation of Debt and Tar Rate Limits the State of New York, Special Report No. New York State Tax Commission Lyon Co., Albany, 1932); Klemmedson, (J. Tar Rate Limitations on General Property Tares (Colorado Experiment Station, Fort Collins, 1933); Clair Wilcox, Rate Limitation and the General Property Tar Ohio (Ohio State University, Columbus, 1922); Jensen, Property Taration Chicago Press, Chicago, the United States (University 1931), pp. 468–477; Glen Leet and R. M. Paige, Property Tar Limitation Laws (Public Administration Service No. 36, Chicago, 1934). Paul Studenski, Public Borrowing (National Municipal League, New York, 1930), Foreign Bondholders maintains an organization which issues annual 42. The Council reports and other information from Council House, No. 17, Moorgate, London. Two recent pamphlets circulated the United States are: Historical Survey the Debts the State Mississippi Repudiated Before the Civil War (1929); and The Federal Aspect of the Mississippi Repudiated Before the Civil War (1930). See also Debts of the State McGrane, Foreign Bondholders and Amcrican State Debts (The Macmillan Co., Reginald New York, 1935), 410 pp. printed,

Ch.

COLLECTION, DISBURSEMENT OF RECEIPTS

27]

431

in 1929. During this period over 3,000 units of local government were in default upon debt obligations at one time or another, and included among them were one-tenth of the cities above 30,000 in population—specifically Detroit, Cleveland, and Toledo.” Great progress was made in adjusting the debt structures and curing these defaults so that by 1941 the ratio of local government defaults was down to approximately one-third of the depres sion high point.” Safety Factors and Causes of Default.—Probably the outstanding cause of defaults in the bonds of local government is excessive real estate specu lation and exaggerated “boosterism,” often combined with an actual shrink age of the economic base. It is extremely significant that three-quarters of the cases under the Federal Municipal Bankruptcy Act between 1937 and 1940 should have come from the five states of Florida, Texas, Oklahoma,

California, and Arkansas. In the instances of Florida and California the story of overspeculation in urban real estate is well known, and the tragedy

of the Dust Bowl is unquestionably reflected in the local government units of Texas, Oklahoma,

and Arkansas. The collapse of a real estate boom catches debt service between two opposing forces. One group of taxpayers stops paying taxes on real estate and another clamors for the reduction of assessed

valuation to conform

to the decline in the market values

of real of

estate. In many instances the situation is aggravated by the pyramiding overlapping issues of special district and special assessment bonds.

A

large contributing factor to default in those areas where they were concentrated, such as Florida and southern California, was the excessive and irresponsible use of the special assessment device. A special assessment as

of

by

in

in

fit

is an obligation against real estate for the purpose of installing a special bene public works improvements, such pavement, sewers, light the form ing posts, street curbs, and gutters. These things are good and desirable themselves; indeed, every urban community should have them. Moreover, be

all

of

is

as

is

it

special assessments; often desirable that they should financed however, good things, evil results from abuse. Abuses the case with came from two principal sources: one was the subdivider real estate,

by

of

a

up

as

to

of

sell, such and the other consisted those who had public improvements pavement contractors and lighting post manufacturers. Real estate sub acreage for residential development dividers would often open tract

of

When the boom collapsed, many

*A. M. ...the -

P.

by

the lots had not been occupied, with the result that they went tax delinquent and the bonds defaulted. other instances the over onding was caused

In

even not mentioned.

of

or

minimized

of

In

special assessment and finance the streets, sewers, water, and lights lots, bonds. the sale the the existence these bonds would either be

Hillhouse, Municipal Bonds (Prentice-Hall, Inc., New York, 1936), pp. 22–25. Municipal Year Book, 1941 (International City Managers' Assn., Chicago, 1941),

FINANCE

432

[Ch. 27

pressure salesmanship on the part of paving contractors and the owners

of

pavement patents, the manufacturers of lighting standards and street light ing equipment, and political contractors who reaped a large profit from the construction of streets, sewers, and other improvements. Frequently such contractors took the bonds rather than cash in payment, with the result that they added an extra margin in their price to compensate them for any discount they might have to take in disposing of the bonds.

Another principal cause for the default of local government is lax and slipshod budgeting methods. The number of cities and counties in the United States which have practically never balanced their budgets in the strict and literal meaning of that term is appalling. They have gone on, year after year, increasing their floating debt while ostensibly showing their budget in technical balance. A favorite way of doing this is by the device of registering warrants. This is essentially what an individual would be doing if he wrote out thousands of dollars in checks when he had no money in the bank. When the payees were refused payment at the bank, they would bring the checks back to the original drawer who would say, “I’ll register them in my book and pay you out of the first money that comes in. In the meantime I will pay you 6 per cent interest on them.” Local govern ments have been able to get away with this because registered warrants have been regarded as excellent short-term investments and also for the reason that they are not popularly regarded as increasing the debt, but rather as temporary borrowing in anticipation of taxes. In fact, however, registered warrants often assumed such a huge proportion that they could not be paid out of current revenues but had to be retired by the issue of new debt. It cannot be emphasized too strongly how common it was to

to

is is,

finance local governments through deficit. This is strikingly illustrated by the interest in the so-called “cash basis” laws which were enacted by the states during the depression of the 1930's, the idea being to require cities to go on a cash basis, that live within their incomes. The re to

be

of

as a

of

of

markable aspect this situation that cash basis current municipal expenditure should have been regarded the abnormal ideal striven doing business. for rather than the normal way

as a

of

is

to

in

so

or by

to

of

appearing Another means balance the budget without actually doing borrowing sinking was from the funds and reserve funds, whether legally illegally, and then failing repay them. That one reason why sinking funds are disrepute administering such current method

reasonable

to

is

tive regularity, and which

all

a

a

in

with compara expect the future may bring.

meet those debt crises which the past has produced

it

to

tion

in

on

of

by

in

of of

of

governmental debt. The maintenance good budgetary control, balancing budget subterfuge, the fact rather than the curtailment forms normally day short-term borrowing: these things carried and day Out throughout the years will place municipality much stronger posi.

COLLECTION, DISBURSEMENT OF RECEIPTs

Ch. 27]

433

of local government is so de pendent upon real estate taxation that a sound program of debt service must inevitably take account of the condition of the real estate market. Prevention of Defaults.-The

financing

The leaders among the real estate brokers of the country are becoming aware of the hazards to their business offered by recurrent speculative booms and depressions. There is now developing a gradual trend toward the planning of land use and the control of such use by public agencies. Such control takes the form of the registration and approval of new sub the rehabilitation of blighted areas, and designing the layout of the land to control use through the master plan. The astounding shrinkage in the values of downtown real estate and the concurrent accel divisions,

zoning,

of

a

is

all

erated growth of suburban centers are phenomena which have sobered the speculator. The blight which affects the center of cities form economic erosion which destroys real estate values and gnaws away the tax

of

to

is

of

is a

It

largely respon sober realization this sorry situation which strengthen the powers sible for the current, rather general movement city planning departments. and the staffs base.

5

to

of

or

is

of

A

preventing excessive bonding the statutory debt city limitation wherein the state law the charter limits the outstanding general obligation bonds some percentage the assessed valuation, favorite method

25

to in

is

of

5.

per cent instead

the statutory debt limitation will avoiding this situation One way

be

5

5

of

by

a 10 5

sanitation district,

of

upon

a

if it

is be

is

per cent being fairly general. The difficulty with this device that fre quently bonding overlapping units government. can circumvented Thus, per cent limit upon the city and another per cent there upon the county, per cent upon the school district, and per cent more fact provide for

10

to

of to

debt issued,

a

formulation

bonds are pay-as-you-go

of

the

be

be

to

committee portions

use the various

be

be

of

In

a

in

as

in

to

is

a

be

be

of is

to of

to

plan, the bonds, how the debt retired, and attempted. Included the maximum debt which this policy will overlapping jurisdictions and experimentation the cooperative approach with fiscal planning and capital budgeting the City New York. public works and im There the City Planning Commission formulates

of

whether improvements are scheduling the maturity

taken

what types paid partially

coordinating

to

including decisions

as

policy,

the most important steps to

One

of

determine which units shall have the right the over-all limit.

of

That will require some sort

of is

per cent.

on

12

or of

of

an over-all debit limit which says that the combined debt all jurisdictions any local government for any particular land area shall not exceed

the physical planning program

an

to

tying

of

by

of

a

provement budget for passing the budget for the next six year period. ensuing fiscal year the Board Estimate can overrule the City Planning extraordinary majority. This Commission's recommendations only the budget program should have

FINANCE

434

[Ch.

27

the effect of convincing both the public and officials that public works are recurrent rather than extraordinary expenditures in the larger jurisdictions.

The sooner this fact is realized, the easier it will be to plan for financing a continuous program of public works rather than indulging in spasmodic and unplanned overbuilding in periods of boom psychology. Not the least beneficial results should be the more orderly development of urban areas as a result

of such planning.

It seems rather important that thinking on this subject be at least par tially directed away from the obsession that public improvements should be financed by bond issues. C. H. Chatters and A. M. Hillhouse suggest four means of financing public improvements: an all-loan policy; (2) a partial pay-as-you-go policy, some referred to as the tax-and-borrow plan; (3) a complete pay as-you-go policy; and (4) use of reserve funds.” . . .

(1)

times

The adoption of a pay-as-you-go policy should

be urged upon those units large enough expenditures which are to have some for public improvements each year. Those communities which need public works construction only once in several years can avoid debt by building up a reserve or savings fund through annual contributions until it reaches the point where con

struction is justified. In the old days when well-to-do holders of real estate could use their money to advantage in commercial transactions, and when interest rates were high there was some cogency to the argument that it was good business for them to have the city bonded rather than to pay the cost

of improvements out of their pockets in one lump sum through taxation. However, the difficulty of investing money at even a reasonable return under continued low interest rates largely vitiates this argument. One of the most potent considerations in favor of municipal bonding today has a social rather than individual motivation:

furnishing a medium ance,

annuities,

for the investments of the

savings

banks,

the desirability

masses

of in life insur

retirement systems, and educational endowments. The bond issues of local government have consti tuted the backbone of these cooperative and socialized institutions, and the trust

funds,

decline of the average yield to under 2 per cent has seriously embarrassed the management of such funds.”

The income from the bonds of local government has always been and is still exempt from the federal income tax. In recent years there have been several threats to remove this exemption and the possibility of its becom ing a reality seemed quite imminent during the early 1940's. Should this

*

Carl H. Chatters and Albert M. Hillhouse, Local Government Debt Administration (Prentice-Hall, Inc., New York, 1939), p. 375. ** The Bond Buyer's Inder, based on the bonds of twenty large cities, stood at 1.59 per 1944, and the trend for 1945 was still lower. cent in August-September, The Municipal Year Book, 1945, pp. 190–191.

Ch.

COLLECTION, DISBURSEMENT OF RECEIPTS

27]

435

eventuality take place, it seems reasonable to assume that the bonds of local governments would become less attractive as an investment for individuals and corporations subject to the income tax. The result might well be that municipalities would have to pay a much higher rate of interest in order to sell their bonds, in which case the more widespread adoption of pay-as you-go programs might be stimulated.

The Cure of Existing Defaults.-What is done when

a governmental

its

agency does not pay

is

be

so

debts? The United States and the states cannot be sued without their own consent; hence, recovery through the judicial proc sued, ess not ordinarily possible.” Municipalities can ordinarily

is

if

of

of

is

a

or

or

try

In

be

in

to

is

he

of a

is

If

it.

to

a

to

to

to

it

useless opposed

to

county debt where state, city, collect paying every Communities will resort possible subterfuge judgment outstanding, they avoid payment. judgment must will elect the officer on whom execution served with hiding during his entire term. the understanding that remain is is

clusively that public opinion

in

it.

of

to

it,

a

no

is to

to

if

it is

judgment against them; but judgment obtain no money satisfy temper people avail there the the opposed paying The history default the United States shows con possible

in

a

to

to

a

to

to

more than one instance, county officials have been elected with full knowl jail for failure edge that they would have serve their terms take the steps necessary pay way debt. The best for creditors secure settle

*

to

be

a

be

holders. This consent can obtained frequently but seldom from all of the creditors.

from 80

of

the bond 90 per cent

When the municipal officials are finally convinced that default

is

100 per cent

to

principal requires the consent

of

interest

or

of

in

an

of

it

is

through conciliatory negotiations.” Sometimes ment would wise grant concessions involving the scaling down principal. interest and The difficulty effecting such adjustment comes from the fact that scaling

inevita

A

in to

it is

is

it

forestall and avoid

a

bondholders' protective committee. This conclusion arises from the fact that such protective committees have often been spon

of

the organization

indicate that

to

of

agreement upon the basic facts. Experience seems everyone, including the bondholders, the interest

to

as

possible, and soon municipal the officials reach

as

to

be

munity's ability pay should inaugurated highly desirable that both the bondholders and

it

of

if

in

be

ble, they should perfectly frank about the matter and advise everybody concerned. The municipality will benefit the long run works close cooperation with bondholders and their representatives—investment houses, brokers, and other official agencies. factual survey the com

L.

C.

3.

E

S

42

14

S.

54

61

F.

et

A.

C.

**

v.

S.

v.

of

v.

of

v.

18

of

37, (1931); See City Atma Indiana Air Pump Co., Ga. App. 743, 157 City State er rel. Montgomery Fort Pierce, 106 Fla. 845, 143 So (.932) Lum Ryegate, berman's Trust Co. Town (2d) (C. A.) (1932) Principality of 313, Monaco State of Mississippi, 292 U. Ct. 745, 78 Ed. 1282 (1934). al., Municipal Debt Defaults: Their Preven See H. Chatters, M. Hillhouse, tion and Adjustment (Public Administration Service No. 33, Chicago, 1933), pp. 10–20.

FINANCE

-

436

[Ch. 27

sored by persons whose interest was the collection of service fees rather than the satisfactory solution of a knotty problem.”

The federal bankruptcy law was amended in 1934 to permit the bond holders of defaulting local governments to use the federal bankruptcy pro cedure to force the adjustment of the financial affairs of defaulting units. Legal objections were apparently resolved in the reenactment of 1937 which put a terminal date of June 30, 1942, upon the law's operations. In general it permitted a percentage of the creditors to petition a federal dis trict court for readjustment of the affairs of a municipality and authorized the court to give legal effect to any such readjustment under the circumstances.

it

feasible

deemed

-

Types of Bonds

There are many types and classifications of bonds, but that which is of

the

invested

in

a

of

sink

be

in

fund would

be

the sinking

current tax levies. The cash interest-bearing securities which could

is

to

up

be

to

of

turned into cash when needed theoretically sound, retire bonds. While this mode debt retirement practice turned out otherwise. Local governing bodies often failed levy taxes enough build the sinking fund the point where suffi to

to its to

on

be

be

ing fund into which

came due, there would established paid periodically out installments would

it

pay this huge sum when

to

In

at

to all

the most practical importance to the layman is based upon the time and manner in which the principal is to be paid. Formerly it was quite general practice to issue the bonds so that the principal of the entire issue would come due the same time. order have money hand with which

In

it it

a

in

be

meet

of

of of

commissioners with the result that the assets improvident investment. vanished because being paid off according was that instead

the sinking fund sometimes The inevitable consequence

to

of

of

in

to

be

hand

to

on

principal when due. financial hurry, badly needed and would prove convenient borrow from the sinking fund and never pay back. More over, there were instances where sinking funds were invested securities sinking fund local booster enterprises and even the personal schemes

cient money would crises when money would

schedule, bond issues had

of

in

of

of

of

be

to

years. for another term sinking system The abuse the fund has driven debt practice substituting serial bonds for term bonds. The use direction refunded

the

serial

as

of

A

in

of

a

practical discussion procedure For the adjustment Hillhouse, Local Government Debt Administration, pp. 300–350. **

in a to

at

of

of

a

of

take care certain amount debt retirement every year regular and recurrent phase budgeting. good deal has been said to

plan

a

of

or

in

of

an

having bonds simply means that instead entire issue come due on the periodic same day, the principal payments will come due installments Thus, year. intervals six months the local authorities will have

debts see Chatters

and

Ch.

27]

COLLECTION, DISBURSEMENT OF RECEIPTS

discussion as to whether or not it was fiscally advantageous for a

437

munic

ipality to issue serial or term bonds. The answer would seem to be that given the same rate of interest the fiscal results are substantially identical, but that if a large municipality has keen and clever sinking fund manage ment, it may be able to benefit thereby; however, authority seems to lean toward the dictum that the average unit of local government will be better off with serial bonds under a law which requires annual tax levies to meet principal payments when due. Another classification of bonds would

be based upon the security given to

the bondholder. General obligation bonds are those which are an obliga Special tion against the entire credit and taxing power of the municipality. assessment bonds, which have already been discussed, may be both general and special obligations. A general special assessment is an obligation, first, against a particular piece of property or district, and, secondly, against the entire municipality. A special assessment is an obligation against benefited property only and has no claim upon the general municipal credit. Another type of bond which has no claim upon the general municipal credit is the recently popular revenue bond. has witnessed the appearance of revenue bonds chiefly as a result of the federal attempt to stimulate public works construction during the depression. The Public Works Administration advanced money for the construction of municipal water and power projects—a portion

The last

decade

being a free grant, and the other portion requiring the issuing of bonds. It was soon found that many of the municipalities which would like to par ticipate in such a project were prevented from doing so by the fact that they were already bonded up to the legal limit. The federal authorities then encouraged the states to enact statutes authorizing municipalities to issue bonds outside the existing debt limit when it was apparent that their proceeds would be used to build enterprises whose revenues would be ade quate to carry the debt charges. Such bonds are usually regarded as being secured by the revenues of the enterprise rather than by the taxing power of the municipality. In recent years they have become more popular and

in many instances are used to expand municipal water and power enterprises which were originally built with general obligation bonds. There seems little 'doubt but what revenue bonds constitute a useful and worthy device in furnishing capital for publicly owned commercial enterprises; however, they offer certain dangers, chief among which is use as a subterfuge to evade debt restrictions in ventures of a questionable commercial status.”

The public debt of the United States is authorized by act of Congress which under present conditions places an over-all limit upon the amount of indebtedness which can be issued. The administration of the debt is

* Frederick

45 pp.

L. Bird, Revenue

Bonds

(The Haynes

Foundation,

Los Angeles,

1941),

FINANCE

438

[Ch.

27

of the Treasury which has a certain amount of flexibility in the authorization and sale of issues. In normal times the Treasury Department is constantly issuing short-term notes to finance the government between heavy tax-paying periods of the year; however, since

placed in the Department

reduced con siderably during the 1920's, has risen precipitously since 1933. It is admin istered by the Bureau of Public Debt under the Commissioner of the Public Debt as a part of the Fiscal Service of the Treasury Department. Appalling 1917 there has been a mounting public debt which, although

of previous American standards, it as

the standpoint

its

from

as this debt seems

to

in

its

in

as

of

be

great comparison burden will not public resources and national income was the debt Great Britain dur ing the nineteenth century, the most prosperous period history.” has been estimated that

SELECTED READINGs

Bird, Frederick

L.

BOOKS AND MONOGRAPHS Revenue

Bonds.

(The Haynes Foundation, Los Angeles,

1941),

45 pp.

S.

to

of

in

by

a

of

of

93

G.

of

C.

C.

A

of

in

on

a

to

to

of

of

L.

C.

D.

A

of

Brookings Institution. Montgomery County, Maryland: survey The Government C., 1941), 740 pp. staff report. (Washington, Chatters, Carl H., and Hillhouse, Albert M. Local Government Debt Administration. (Prentice-Hall, Inc., New York, 1939), 528 pp. H., and others. Chatters, Municipal Debt Defaults: Their Prevention and Adjust ment. (Public Administration Service No. 33, Chicago, 1933), 58 pp. Faust, M. The Custody State Funds. (National Institute Public Adminis tration, New York, 1925), 176 pp. Gulick Committee. Federal, State and Local Government Fiscal Relations: Letter response from the Acting Secretary the Treasury, transmitting Res. 160, Report submitted special committee desig the Secretary the Treasury study intergovernmental fiscal relations nated conduct the United States, 1943. (78th Cong, 1st sess., Senate Doc. No. 69), 595 pp. (Prentice-Hall, Hillhouse, Albert M. Municipal Bonds, Century Erperience. Inc., New York, 1936), 579 pp. McGrane, Reginald Foreign Bondholders and American State Debts. (The Mac millan Co., New York, 1935), 410 pp. Mansfield, Harvey Press, New The Comptroller General. (Yale University Haven, 1939), pp. 121–144. Moulton, Harold The New Philosophy Public Debt. (Brookings Institution, Washington, D. C., 1943), pp. Municipal Finance. (For up-to-the-minute information consult current issue The Municipal Year Book, International City Managers' Assn., Chicago.) National Municipal League. Model City Charter. (National Municipal League, New

1941),

U.

5th ed., 1941),

B.

York,

Ratchford,

pp. 25–35.

American State Debts.

(Duke University

Press, Durham, N. C.,

629 pp.

1926),

of

D.

L.

Twentieth Century Fund, Inc. Facing the Tar Problem. (Twentieth Century Fund, Inc., New York, 1937), 609 pp. Upson, Municipal Administration. Practice (The Century Co., New York, pp. 76–134.

17

Alvin Hansen and Guy Green, “The Federal Debt and the Future,” Harper's Magazine (April, 1942), Vol. CLXXXIV, pp. 489–500.

Ch.

27]

COLLECTION, DISBURSEMENT OF RECEIPTS

439

PERIODICALS Clark, Joseph F. “Protection Against Losses.” Municipal Finance (February, 1942), Vol. 14, pp. 9–15. Faust, M. L. “Public Funds in Closed Banks.” Municipal Finance (February, 1934), Vol. 6, No. 3, pp. 17–20. Hansen, Alvin, and Green, Guy. “The Federal Debt and the Future.” Harper's Magazine (April, 1942), Vol. 184, No. 1103, pp. 489–500.

“Municipal Municipal Finance Reports for the Citizen.” Finance (February, 1945), Vol. 17, pp. 4–25. Symposium. “New Sources of Municipal Revenue.” Municipal Finance (March, 1945), Vol. 17, pp. 2–36. Symposium. “Wartime Municipal Debt Administration.” Municipal Finance (No vember, 1944), Vol. 17, pp. 3–28.

..Symposium.

PART SIX ADMINISTRATIVE

LAW

CHAPTER

-

28

THE LEGAL BASIS OF ADMINISTRATION be regarded as a rather formidable and subject by students captivated by the dynamic and personnel aspects of management. In order to focus the subject for these lay stu dents—but not to pose an all-inclusive definition—it seems desirable to

Administrative Law tends to

uninteresting

emphasize the relation of legal controls to the exercise of administrative discretion in a democracy. The very basis of constitutional government is the idea of limited executive power, and hence a bureaucracy whose actions must be governed by law. Thus, the guiding motif of administrative law, the constant all-pervading concern, is the amount of discretion which the

an

is

it

all

law permits administrative officers and agencies to exercise. Having made this broad generalization in the interest of lay understanding, one must generalizations, over-simplification. hasten to caution that, like

ordinances,

defining the powers and duties administrative regulations The rules and made administrative agencies; by

The decisions and orders issued

by

3.

and resolutions agencies;

administrative

officers and

officers

or

statutes, charters,

of

1.

The constitutions,

2.

Administrative law includes:

agen

2,

3

1,

to

The judicial decisions relating

above.

In

4.

cies;

Problems Problems

of

to

by a

is

the following main cap explore the possibilities --

*

This

very well evidenced outline suggested committee the field of administrative law.

of

tions research

in an

of

ever they may be.

by

of

of

by

of

other words, the subject deals with the legal aspects the exercise agencies discretion administrative and officers whose functions cover the whole gamut administrative activities, whatever they are and where

public personnel

of fiscal administration

Law

of

of

in

in

Studies the legal conditions administrative discretion problem The administrative courts and administrative law Studies of American administrative courts administrative

regulations 443

ADMINISTRATIVE

444

Problems

LAW

[Ch. 28

of administrative examination

Studies in government contracts Claims against government Studies in remedies against administrative action Status and recognition of professional associations in public adminis

tration The legal rule governing

the actions

of plural-headed administrative -

bodies.” w

Control of Discretion large and growing body of rules and regulations made by administrative agents. A generation or so ago legal fundamentalists would have been prone to deny that administrative officers

Administrative law today includes

a

and agencies could make law themselves. As will be pointed out later in these chapters, the idea that administrators could make law seems to go contrary to our three-way separation of powers. Under the judicial inter pretation of that concept, only the legislature could make law. However, today we find that an expanding aggregate of administrative units is hand ing down an ever-increasing body of rules and regulations, binding upon private citizens as well as upon governmental officers themselves.” It is probably superfluous to attempt to define the sense in which the term discretion is used here. Briefly, it simply means the power or right, conferred by law, of an administrative officer to select between alternatives in deciding upon a course of action, or in issuing an order, a rule, or a regulation, and in accordance with his own dictates of judgment and con

At first sight it

may appear not to be a problem at all, for it would seem on the surface that a good manager in a public agency should have the authority to select the best course of action.* science.”

Anglo-American Concepts of the Limited Executive.—A glance back legal and today. It

king had

history

to of

it.

at the historical development of Anglo-Saxon constitutional political institutions throws light upon the problem of discretion must be remembered that originally it was no question. The Indeed, the entire discretion and there was no doubt about

as

in

in

its

in

of

is

Anglo-American constitutionalism based squarely upon the struggle king, prerogative limit the the still known Great Britain the royal prerogative. This prerogative has counterpart America the empha

Black,

Law Officers

XXXVI, *...* . . ."

A.

and

&

Law Dictionary (West Publishing Co., 906.

in

Henry

3d ed.,

p.

sec.

1933), pp. 587-588. Fairlie, “Law Departments John Michigan Law Review (April, 1938), Vol.

C.

to

1134,

2;

“Discretion,”

St. Paul,

p.

p.

3.

* *

9

1940),

*

S.

in

1

P.

Field, Research Oliver Administrative Law (Committee on Public Administration of the Social Science Research Council, New York, 1938), 48 pp. Hart, Co., New York, James An Introduction Administrative Law (F. Crofts

American

Government,”

THE LEGAL BASIS OF ADMINISTRATION

\

Ch. 28]

445

sis on an inherent executive power in the presidency. An inherent execu tive power was claimed to exist and was to a certain extent exercised by Presidents Theodore Roosevelt, Woodrow Wilson, and Franklin D. Roose

A

very eminent American scholar has recently claimed that Franklin D. Roosevelt's exercise of the executive power has gone so far as to knock the props out from under our most sacred constitutional concepts. He said velt."

that recent Supreme Court decisions nullify the separation of powers and dual federalism."

Anglo-Saxon countries have had

a thousand years

of political history,

the dominant theme of which has been the transfer of power from the abso lutism of the monarch to the reign of law, expressing itself through the will of popular legislative assemblies on the one hand, and through the con stituted

courts

of law on the other.

The barons who wrested

Magna

Charta from King John at Runnymede in 1215 demanded essentially the same things as were embodied in the Bill of Rights signed by William and Mary in

was to be called into session periodically, and no taxes were to be levied without consent. Arbitrary imprisonment was adjudged guilty abolished and no man should crime without Parliament

a

of

be

be

to

its

1689.

in

be

which we have come

include as

all

us

of

succeeding generations those safeguards within the concept “due process.”

to

of

of

by

to

in

of

to

of

a

of

jury the judgment his peers. Men were secure their homes arbitrary unjust king against dealing search and seizures. Officers the with his subjects were observe the privileges and immunities provided the regular procedure the law the land." Thus were secured for

a

to

of

is

It

necessary for realize that these things which we accept matter course today were innovations when men first advocated them. Public-spirited individuals risked their property, houses, careers, and lives to

achieve the civil liberties and the general freedom we English history need not go far back see important and prominent people thrown into London Tower, and there held without trial the wishes the king—even publicly beheaded without judicial process.” at

in

of

to

in

the struggle

enjoy today. One

of

C.

S.

57

L.

81

&&

A.

to

of

C.

of

S.

of

of

as

of to

L.

S. 51

*

*

S.

in

v.

v.

S.

to

if

in

of

a

in

In

*

majority opinion, stated that the President rendering 1936, Justice Sutherland, foreign relations; that the had powers his own, separate from Congress, the field power over foreign affairs antedated the Constitution and would exist independently not covered therein, dating back the time when they resided with the British Crown. United Wright Corp., 304, 255, States Curtiss 299 U. Ed. 216 (1936). In Colorado, the Supreme Court denied that the federal government had inherent Kansas sovereignty, against the states. This decision did addition the enumerated powers, Congress and not deal with the power the President, but with the powers the states. 46, 206 U. Ed. 956, 27 655 (1907). Corwin, The President, Office and Powers (New York University Press, Edward New York, 1940). England and America (J. Bartlett, Francis Bowen, Documents the Constitution Cambridge, 1854), pp. 1–19, 44–51. English Antiquities (printed for Longman, Brown, *James Eccleston, An Introduction Mumby, Elizabeth and Green, and Longmans, London, 1847), pp. 224–232, 329; Frank Mary Stuart (Constable Co., London, 1914), 407 pp.; Lytton Strachey, Elizabeth and Co., New York, 1928). Essex (Harcourt, Brace

ADMINISTRATIVE

446

LAW

[Ch.

28

or

ratified

In

three-fourths

by

a

be

which must

of

conventions

in

of

the Constitution, by

is by

latures

the case

or

even

in

is

to

to

of

all

Supremacy of the Law.—The prime characteristic of American con public offi stitutionalism is the supremacy of the law. This means that cials from the President down are subject rules law which definitely origin, supposed popular limit their action. This law have base the states.

the

legis

this respect

the

of

of

by

in

of

is

A

of

law; for even his executive power President controlled the rule simple picture representatives stems from the Constitution. one the people making the law the form the Constitution and statutes, of

of

in

specific cases duly constituted such being interpreted and applied law, independent courts those who administer the law and those who make it.

of

is

of

is

A

of

principal basis for maintaining the principle the supremacy law By concept procedural process. the American due this meant that

a

by

be

a

to

is

of

to

be

to a

of

to of

to a

in

be

used

by

an to

applying the law violating the American accused right right accusers, law has the confronted his the have counsel, jury speedy and fair hearing, the right judged the right peers. concept process applied his That the due criminal trial. to or

there are certain specified procedures particular citizen situation. Thus,

be

to

at a

in

by

in

to

it

to

of

is

of

Another principal basis the American constitutional system the judiciary. may something the This seem which we have had with us, and which we take for granted. However, was not always so. One need go back only 200 years period the Stuart see England, deliberately jeopardize his position Lord Coke, highest judge arriving judicial insisting that the king should not influence him independence

In

decision.”

of

of

of

opposition the American people over the decision of our courts.”

to

in

to

of

of

America today we have carried the idea the independence the judiciary farther than have the English. Indeed, some would say that our system provides for the supremacy the judiciary. Controversy surround ing the attempts enlarge the Supreme Court 1937 indicates the inherent the extension

executive influence

preserve the independence, integrity,

and dignity

in

is

a

court are designed the judiciary.

to

contempt

of

those persons who are

of

for punishing

in

in

to

In

preserve the independent judiciary, the Anglo-Saxon system order general, judge has set up certain safeguards.” Thus, not liable tort for any pronouncement from the bench. Furthermore, the provisions

Any

p.

of

of

T.

of

R.

E.

**

19

A.

°

of

Walter Hastings Lyon, Edward Coke, Oracle the Law (Houghton Mifflin Co., Boston, 1929), pp. 200–207. Knopf, New York, Robert Jackson, The Struggle for Judicial Supremacy (Alfred 1941), pp. 187–195. Discretion,” Yale Law See M. Cooper, “Administrative Justice and the Role Journal, Vol. XLVII, pp. 577–602; Leon David, The Tort Liability of Public Officers (Public Administration Service, Chicago), 280 pp.; John M. Gaus, Leonard D. White, and Dimock, The Frontiers Chicago Press, Marshall Public Administration (University Chicago, 1936), 45.

THE LEGAL BASIS OF ADMINISTRATION

Ch. 28] attempt

447

to influence the judge in arriving at his decision, other than that

legally extended in an open courtroom, outrages the American conscience. The foregoing is preliminary to the observation that American public administration is subject to the reign of law. This is emphasized by an explanation of the doctrine of ultra vires—which is summed up in the

scope of his legal powers. If authority given by law, he exceeds the to him he is acting ultra vires. Thus, a public official must be very sure of his powers before he takes a step or undertakes a particular action. The situation is further tempered by the

principle that no official may act outside the

to to or

to

to

deny him the right

is

he

of

in

of

is

In

ditions

of

do. This

do the things which not clearly empowered principal respects one the which the environment and con public administration differ from that private management. to

is,

tendency of the courts often to adopt a policy of strict construction—that hold the officer those powers which are specifically mentioned which are quite logically derived from those which are mentioned, and

a

in

to

is

is is

or

it

is

In

it

to

the latter case, the management assumes that has the power do thing until public administration, the first question told not to. asked whether not the official concerned has the power do that proposed. For this reason the law officer very important which

-

American public administration.

to be

the most

exercising

desirable

it

a

discretion. has taken what considers choice between alternatives. Individuals are

it

It

it

train controls,

is

at

is

of

problem because administrative discretion strikes the citizen's most sensitive spots—his freedom and his pocketbook. When the Interstate Commerce Commission orders the installation of automatic

The control

to

quarantines

By incon

dormitory.

of

be

so

to

by of

in

is

so,

of

to

by

a

In

of

it

of

contract and accomplish with city-owned public agencies All these officers and have exercised discre doing they have tion. They have made choice between alternatives. inevitably pleased some people going counter the desires others. the collection equipment.”

garbage

he

on

by

he

safeguards the health many. The public purchasing open the market when confronted identical low bids incurring the ire powerful doing may exercises discretion, but city manager vendors. The same true the who decides discontinue a

veniencing few agent who buys

when

of

discretion

a

exercising

he in

is

to

of

affected both adversely and favorably. Owners the railroad stock indi rectly have put up more capital purchase the automatic equipment, greater safety. The public health officer but the traveling public will ride

p.

P.

Taft, City Management: Charles New York, 1933), 242.

*

is

The term “discretion”

The Cincinnat: Erperiment (Farrar

no

manner.

&

irresponsible

by

in it is an

it

of

doing

public administration

by

of

primarily concerned with the exercise discretion administrative officers and agents. Under democratic gov ernment, desirable that those who exercise discretion be restrained from The law

means

Rinehart, -

LAW

or

exercise must

reasonable public officers

or

by

to

This applies

be

implies an absolute or arbitrary power. arbitrary. and not wanton, malicious,

[Ch. 28

as

Its

ADMINISTRATIVE

448

alternatives they are but the servants

free people.

a

ment on the choice

of

of

to

re

as

in

of

prescribed the discharge their official duties law reason Thus, constitutional government has placed ably implied therefrom. straints upon administrative officers the end that when exercising judg

The liberalism

one age constitutes the basis for the conservatism

of

of

Seventeenth-Century Radicalism Becomes Basis for Twentieth-Century Conservatism

of

by

only necessary

to

and Social Change.—It

is

Industrial Revolution

to

In

the Industrial Revolution and how

little side trip into the rise caused social change.”

make

a

to

necessary

it

will

be

came about,

it

so

to do

of

of by

a

of

as

another. Just the individualism Adam Smith was liberal reaction against the excessive control government under mercan business tilism, today we find the advocates the status quo using legal fundamentalism combat social change. order understand how this

recall the changed social conditions brought about the Industrial Revolution. The change produced had least two phases, one pertaining the degree control which governmental regulatory agencies to

of

at

here briefly

of

of

of

of

to

business, and the other having exercised over the conduct do with the production. Under the old system mercantilism, governmental mode agencies exercised considerable control over various aspects business, merchants and craftsmen placed doing business, particularly on

of of

many restrictions

on

particularly foreign trade. The guilds

to to

or

it

of

of

a

on

the free conduct city and community business within commerce from one city Indeed, system another. the whole mercantilism was one devoted restricting the free flow trade and directing into privileged channels.” or

of

in

a

is

of

why we say that the individualism Adam Smith and those who probably radi advocated the laissez-faire economic policies was liberal cal movement its time.

That

of

a

by

to

of

to

production, saw The other alteration, which pertained the means change from the handicraft, small-producer type economy the intro duction the kind permitted the factory system. Adam Smith's laissez

of

it

if

it,

is

of

a

at

faire economy and James Watt's steam engine came onto the scene about the same time. The steam engine produced chain events which today challenging the individualism Adam Smith, and probably seriously modifying inoperative. The factory system took pro not rendering

&

of

A.

F.

&

**

*

Dixon, Economics and Cultural Change (McGraw-Hill Book Co., Inc., See Russell New York, 1938), pp. 417–463. Harry Elmer Barnes, An Economic History the Western World (Harcourt, Brace Unwin, Co., New York, 1937), 790 pp.; Eli Heckscher, Mercantilism (G. Allen Ltd., London, 1935).

THE LEGAL BASIS OF ADMINISTRATION

Ch. 28]

449

duction out of the home and the small shop, and brought the workers together in the factory. This, in turn, induced the rise of the modern city and the twentieth-century urban era, with the result that almost three quarters of the people of any industrial nation live under urban conditions. This has created tremendous problems of health, housing, sanitation, morals, policing, welfare, and public works. Conditions of urban industrialism have come in conflict with legal orthodoxy. Social reform has demanded the legal evolution of institutions. Advocates of the status quo utilize the sym bols of our constitutional liberties as bulwarks against social change. The

following subsection will attempt to show how this

came about.

Inherent Conservatism of the Law.—The philosophy of the common law is inherently conservative. The great Anglo-Saxon constitutional products proletarian documents were not of revolt. Thus, it was the barons, the aristocrats, who wrung Magna Charta from King John at Runnymede. So it was the aristocracy that brought about the departure of the Stuarts and the signing of the Bill of Rights in 1689. The British Parliamentary reforms of 1832 and of 1911 were each capitulations of the upper classes to the exigencies of the times. It is also significant that the great names of the American Revolution were largely those of landed aristocrats. The framers of the American Constitution themselves were to a considerable extent men of property who framed a document which they thought pro vided safeguards and crosschecks against the excesses of democracy.”

of

on

is to

of

is

in

all

This fits with the Anglo-Saxon principle that that government pro governs least; that the primary purpose government best which life, liberty, and property, with emphasis property. The vide protection

Adam Smith's The Wealth Nations.” legal system very The American was slow

to

ance

adapt itself

to to

of

of

for social change. The very principles which are considered

the need

constitute

In

to to

of

or

it

to

to

of

Anglo-Saxon liberty were used oppose reform. the keystone each every legislation enacted, necessary and case where social was was provide some sort administrative agency officer administer and

1938).

(University

of

the Constitution

of

A.

* *

Hill,

of

of of

in

a

to

is

in

of

A.

to

any way altering the reign

Beard, An Economic Interpretation Charles (The Macmillan Co., New York, 1913), pp. 73–151. Lockmiller, Sir William Blackstone David

Chapel

a

social change without

be

it.

cepts

such officers

or

agencies had given cer discretionary power. The cry was raised that exercising tain amount this choice between alternatives, they were exercising legislative and judi cial power unconstitutionally. bring about gradual adjustment legal con The big problem

This meant that

enforce

the

law.

That

United States

North Carolina Press,

-

of

is

a

of

of

congenial matrix for the rise the common law provided the amply demonstrated by the fact that Blackstone, new capitalism. This the oracle the common law, wrote almost simultaneously with the appear genius

LAW

[Ch. 28

all

of

ADMINISTRATIVE

450

a at

to

a

of

must be preserved at costs. Social and economic changes the last years body legislation. hundred have necessitated tremendous social While our legal institutions first tended resist this development, there it.

of

to

in

of

an

of

is

of

is

of

gradual acceptance has nevertheless come about the need for The legal way saying this expansion police that there has been the power. The police power government legislate the power the interest the public welfare, the public safety, the public morals, and the

of

of

a

to

public health.” Under our dual federalism, this police power has always belonged the states. However, recent events have witnessed consider able expansion the federal government into the fieldwhat was for

in

to

a

of

by

of

as

merly known police power legislation. During the early days the New Deal, the Supreme Court put stop United States further developments this direction

the

hand

ing down decisions nullifying various New Deal laws. However, after the

Increased Administrative

Regulatory

Agencies.—Social

of

Discretion

reform has,

of

of

discretionary

officials.

The Cycle Swings The Rise

the expansion

ever-increasing

of

to

is

a

administrative

to

power

to of

it

of

has,

in

of

course, meant the approval substance discretion, possible administrative for not have body corresponding grant social legislation without

This

an of

in

a

in

of

to

of

1936, and under the pressure

of

of

expand the size the movement change the Supreme Court, there came the attitude the Court. February, substantially 1937, Since the trend has been the direction approving social legislation.” election

course,

or

up

in

of

to

or

to

necessitated structure and mechanics. The principal device has been agency the power regulate devolve upon some administrative officer private persons, corporations, agencies, some degree the activities

of

of

as

to

a

to

In

the law which protected the employer. An exam risk doctrine, whereby the employee entering

of

by

a

the expense and trouble

drawn-out court proceeding, certain technicalities ple was the assumption

going recover damages. addition long hiring lawyer, and going through would have the cards stacked against him

law

to

court

he

a

of of

to

sue his employer

in

an

to

of

individuals. An example this was the setting workmen's com pensation commissions, sometimes referred industrial accident com injured workman was required missions. Under the common law,

S.

Calif., 1941), pp. 39–79.

-

to

&

Ernst Freund, The Police Power (Callaghan Corwin, Constitutional Revolution, Edward

*

17

of

at

of

into the employment the employer accepted, his own risk and subse quent expense, the hazards personal injury incidental the employment. Another example was the contributory negligence rule, under which the Co., Chicago,

1904), 819 pp. Colleges, Claremont,

Ltd. (Claremont

THE LEGAL BASIS OF ADMINISTRATION

Ch. 28]

45I

employer could escape liability if he could prove that the negligence, to any degree, of the injured employee contributed toward his injury. Still another was the fellow-servant rule, which also absolved the employer if it could be shown that the injury was caused through the negligence of a

fellow servant. The net result was that in a very large number of industrial accidents the injured workman had practically no chance for recovery. Under the new workmen's compensation laws, the industrial accident com missions were empowered to see that the workmen were insured against the exigencies of injury arising out of and in the course of employment,

of responsibility. In other words, social conscience became operative to insure that industrial accidents should be regarded as the re sponsibility of society in general. Casualties were to be borne by society, and not by the individual worker himself. It was provided that minimum and maximum benefits should be paid to the worker in each particular case, irrespective

and the commission

was authorized

to make the decision in those cases to

protect themselves. The law protects those least able such cases, the commission was exercising discretionary power, prob ably both judicial and legislative nature.”

in

In

it.

brought before

in

of

that the

is

it is

to

to

so

These regulatory agencies are now familiar most Americans almost needless mention them. At the federal level, there Interstate Commerce Commission, the oldest the great regulatory pendent commissions, established 1887. Other federal regulatory

inde com

is

in

It

be

missions with independent status are the Federal Trade Commission, the Federal Power Commission, the Securities Exchange Commission, the National Labor Relations Board, and several others.” should not independent boards overlooked that not all regulatory power vested

of

have widespread some the most important administrative law cases coming before the Supreme Court recent years have involved Agriculture.” the powers the Secretary the Department Com merce one will find regulatory activities the Bureau Marine Inspection

the executive departments

Board. on

the Civil Aeronautics

all

and Navigation and

in

in

of

of

In

of

of

in

of

and commissions. Several regulatory powers. Indeed,

is

the

acci

L.

L.

82

80

58

S.

S.

L.

58

S. S.

S.

56

E.

of

S.

L.

U.

v.

S.

82

v.

*

1,

:

* *

F.

of

Dodd, Administration Compensation See Walter Workmen's (The Common Fund, New York, 1936), pp. 57, 635–636, 641–649, 807–811. regulatory For an excellent discussion the federal commissions see Robert Cush man, The Independent Regulatory Commissions (Oxford University Press, Inc., New York, 1941), 780 pp. Morgan 468, United States, 298 U. Ct. 906, Ed. 1288 (1936); 304 U. 23, 58 Ct. 773, Ed. 1129, 304 U. Ct. 999, Ed. 1135 (1938) Morgan, 307 183, United States Ct. 795, 83 Ed. 1211 (1939).

wealth

S.

º

->

of

regulation local government. Examples utility public commissions, state level are the state the state industrial

of

business upon the level

on

of

is

by

It

be

emphasized that not regulatory authority should found the federal level. Indeed, the original social legislation activities were exer private cised the states. Furthermore, there considerable regulation

ADMINISTRATIVE

452

LAW

[Ch.

28

com

dent commissions, the state banking commissioners and insurance missioners, and the licensing of professions and vocations.

Students of administrative law frequently overlook the fact that a con siderable degree of regulation of private business, property, and individual

activity is exercised by the municipal government. A conspicuous example is the administration of the building code. A person can no longer build as he chooses in most cities. He must get a permit and the structure is in

all

spected in accordance with the more or less rigid standards and specifica tions during the course of construction. A city health department regulates

to

of

by

to

of

types premises. and inspects the serving of food and the sanitation of department inspects private buildings they The fire see that conform safety standards established municipal ordinances. Certain types busi

of

of

in

of

of

by

as

ness, such pawnshops, are regulated through the licensing power, fre quently administered the police department. One the most common regulatory years forms restriction recent has been the control land a

of

a

of

complete cataloging use through zoning. Indeed, the incursion municipal government into the field regulation would require much account than we have space for here.

more voluminous

be

The question might well

asked why the new regulatory activities were

working out the administration

It

of

as

such new fields workmen's com public utilities, the regulators should have arriving their opinions. We have not yet crystallize action into definite field law.

of its

a

of

at

all

a

of

pensation and the regulation flexibility large amount experience achieved sufficient

to in of

in

in

of

not devolved upon the regular courts law. One reason was the feeling that precedent should not rule the new technical fields. was felt that

it

in

of

to of

of

to

in

be

may

a

it

ner, and

in

authority law has developed this man years that come the field administrative regula law, and administrative courts may actu tion will become settled field Equity. ally become courts law. That was what happened the case However, for the present, subject has been considered desirable not

One should remember that

a

is

to

In

of

circumstances.

other

that has gone before the English system case law. stare decisis does not apply the

that the decision

to

chief characteristic was indicated above, this principle a

of

That

of

As

represents the principle

is

shall rule.

similar sets

of

words,

it

what the court has said before

in

It

in

of

in

of

tribunals

of

principle the principle stare decisis. This making their the common law which governs Anglo-Saxon courts says judge upon decisions. effect that the should decide the basis administrative

common

law courts.

administrative

tribunals

of

at

do

this nature are the very basis for the rule

If

in

used

of

of

of

Written opinions decisis

is

to

of

administrative tribunals. The desire maintain flexibility one the reasons why many administrative tribunals not render long," arriving reasoned, written opinions describing their process decisions. decisions

stare

started

THE LEGAL BASIS OF ADMINISTRATION

Ch. 28]

453

rendering the same type of opinions, it is likely that eventually they would find themselves governed by such a mechanism of precedent. Another reason given for using administrative tribunals rather than courts of law in this new regulatory field is to avoid what some call the “red tape” of legal procedure. The proceedings before an administrative tribunal are very informal. While attorneys may be present, there is rela tively little quibbling over the competency of witnesses or the admissibility of evidence. Witnesses conduct themselves in a casual and conversational permitted to tell their story without the inter questions.” vention of Another reason for permitting administrative tribunals to supervise regulation in the place of courts of law was in order to bring to the final determination the services of both layman and technician. It was felt that the traditional training of the judge does not him make decisions the first instance such technical fields workmen's compensation, public utility regulation, and banking and insurance. The theory was that admin istrative commissions should provide for the intelligent and experienced lay

of

to

In

as

in

fit

manner, and are frequently

of

is

However, the feeling

engineers and accountants.

by

in

of

.

practice, man and businessman alongside the engineer and accountant. this theory has not always worked out, because political considerations have persons resulted mediocre qualifications being appointed instead

still strong that these *

in

A

be

to

an is

is

an

of

It

be a

to

is

of

be

a

judge

in

to

trative tribunal definitely

tribunal the fact that, generally speaking, the adminis expected quite not supposed neutral arbiter. aggressive exponent public the interest.” supposed merely court law arbiter between

an is

the administrative

A

of

of

be

be

lawyers, but that the view commissions should not manned entirely points laymen and subject-matter experts should represented. very important difference approach between the court law and

is

as

as

lis

a

In

legal parlance two parties who have joined issue. lawsuit known the inter partes—a controversy between two parties, the one who com plains, and the one who answers; the former being known the plaintiff

In a

he

if

otherwise.

real, physical,

and

Such tribunals are of

**

as

in

or

be

His interest must

In administrative tribunals the situation

a

or

is

he

to

of

be

the outcome.

is

in

to

a

if

in

of

a

mere curiosity material.

in

of

as

be

lawsuit, one the defendant. To one the parties legal interest, must have and such an interest defined law one being injured property. which involves the hazard one's person legal interest other words, one does not have has only the socially minded citizen's desire benefit his fellowmen, has and the latter

E.

Harold M. Stephens, Administrative Tribunals and the Rules Evidence (Harvard University Press, Cambridge, 1933), pp. 87–89. Pendleton Herring, Public Administration and the Public Interest (McGraw-Hill Book Co., Inc., New York, 1936), pp. 22–23.

*

'

ADMINISTRATIVE

454

LAW

[Ch. 28

commanded to be always on the lookout for the public interest, as opposed to the narrow interest of private persons. Furthermore, one need not have a legal interest to take part in the proceedings of an administrative tribunal. Any citizen who has something to offer can go before an administrative tribunal and be heard. If he has information which has some bearing on the public interest, then he has a right to be heard and to take part in the proceedings.

The Lawyer's Apprehension

of Expanding

Administrative

Dis

cretion.—Members of the bar have been, as a whole, quite apprehensive of the expansion of administrative discretion into the regulatory field. Leading members of bar and bench have frequently evidenced an emotional animus against the expansion of administrative discretion. This animus is suggested in the titles of such books as Lord Hewart's The New Despotism, and James M. Beck's Our Wonderland of Bureaucracy.” While economic conservatism was responsible for much of this outcry, there was neverthe less an underlying sincere and justifiable feeling that the movement toward expanded administrative power did offer a challenge to the supremacy of law and the constitutional legal safeguards of our liberties. There was also the consideration that some of the administrative tribu nals sought either to minimize or actually to dispense with the professional services of the lawyer. Thus, it is the practice of some workmen's compen sation commissions to advise the injured workman that he does not need the services of a lawyer. Frequently rather low statutory limits upon law yers' fees are provided in workmen's compensation laws. However, it is probable that the rise of administrative regulation has not reduced, but rather has increased the professional opportunities of the lawyers. Persons and organizations appearing before the more important administrative bunals are represented by counsel, and the lawyer specialist in various types

tri

of regulation is beginning to appear. While the legal profession

has become more reconciled to the rise of administrative regulation, the bar still seems apprehensive toward the devel opment as a whole. This is amply demonstrated by a report of the Com mittee on Administrative Law of the American Bar Association, which formed the basis for the Walter-Logan bill vetoed by President Franklin D. Roosevelt.” In 1944 the Association issued another report recommending the standardization of federal administrative procedures introduced in Congress to put them into effect.”

and bills were

24 James M. Beck, Our Wonderland of Bureaucracy (The Macmillan Co., New York, 1932); Lord Hewart, The New Despotism (Cosmopolitan Book Corp., New York 1929). ** See Report of the Special Committee on Administrative Law (American Bar Assn., Chicago, January, 1939). “Proposed Federal Administrative Procedure Act,” American Bar Association Journal (April, 1944), Vol. 30, pp. 226–230; Max Goldman, “The Administrative Procedure Bills— 1944), Vol." Unsound and Unworkable,” Lawyers Guild Revictv (September-October,

*

*. , pp.

1-14.

Ch.

THE LEGAL BASIS OF ADMINISTRATION

28]

The Legal Issue Involved in Administrative The Unrestricted

455

Regulation

Enterprise of the Nineteenth Cenury.—

Private

The expansion of administrative

discretion, especially into the regulatory field, runs head on against the political, economic, and social mores and doctrines of the past century. The character of that period was determined by an economic philosophy of laissez faire, which induced an extreme indi vidualism. The powers of government were to extend only to protection of person and property. Expansion of private enterprise was to be encour aged in every way.

political, and legal attitudes of the day expansion. stimulated unrestricted economic Administrative regulation represented a counter tendency, with different

It

Constitutional,

and indeed it is only natural, that there should have been tremendous resistance to the growth of administrative power. Such power was a challenge to the untrammeled freedom from motivation.

is not surprising,

governmental

interference which had been enjoyed by private enterprise 150 years of the capitalist age. It does not require much research to discover legal obstacles which could be placed in the way of the development of administrative discretion.”

during at least

Unlawful Delegation of Legislative and Judicial Power.—Adminis

or

all

trative regulation was challenged by the constitutional doctrine of the separation of powers, dear to Americans: that the legislature shall legis late, but shall not exercise any judicial executive powers; that the judicial but shall not exercise any executive

or

branch shall adjudicate

legislative

in

of

the separation

powers

pro

of

see that constitutional

American courts

pro

to

of

government and administrative branches visions are not contravened. The authority

of to

of

is

of

judicial American legal practice the doctrine legislative accordance with which the courts examine acts both

familiar aspect

review,

in

A

in

in

and legislative power, contravention vided for the Constitution.

of

an

or

legis powers; that the executive branch shall not exercise any judicial lative powers. The cry was soon raised that administrative tribunal, issuing orders and making rules and regulations, was exercising judicial

is

the doctrine

of

meant

by

what

is

This

is

is

it

to

of

declare successfully statutes and administrative acts unconstitutional has not been challenged. Indeed, has led the charge that the judicial branch government supreme above others. not merely one among equals but

judicial supremacy.”

of

of

to

D.

of

*

;

E.

of

;

E.

E.

D.

F.

*

Blachly and Miriam Oatman, Federal Regulatory Action and Control Frederick (Brookings Institution, Washington, C., 1940), pp. 108-131 Dimock, “Forms Marshall of Control Over Administrative Action,” Essays on the Law and Practice Governmental Administration, ed. by Charles G. Haines and Marshall Dimock (Johns Hopkins Press, Baltimore, 1935), pp. 287-321 White, Introduction Leonard the Study Public Administration (The Macmillan Co., New York, 1939), pp. 579–595. (University Haines, Supremacy Charles Grove The American Doctrine Judicial California Press, Berkeley, 1932), pp. 27–28.

--

ADMINISTRATIVE

456

LAw

[Ch.

28

quite evident that the action of regulatory agencies is “of a legisla tive and judicial nature.” Such agencies may issue regulations, and in doing so they act in a legislative capacity. Furthermore, they hand down deci

It is

sions and orders in controversies between parties, and in doing this they are operating judicially.

The exigencies of our complex industrial civilization demanded that administrative bodies exercise such powers. The problem was how to reconcile this necessity with our traditional constitutional doctrine. At least two justifications were found. The first was the subterfuge of calling such action quasi-legislative. This was to find a convenient device to satisfy sticklers for legal niceties and at the same time to recognize the essential nature of the action. -

through the imposition of requirements that adequate standards of delegation be set up in the basic law. Standards that are general or even nebulous in character have been recognized as sufficient. Nevertheless, the Supreme

Court still demands that some standard

be contained

in the law which dele

gates discretion of regulatory nature to an administrative tribunal. It is felt that a safeguard against the arbitrary use of discretion is to have Con gress provide in the law in the form of specified standards the guide to administrative

action.”

The Due Process Clauses.—Probably the chief constitutional obstacle to the delegation of legislative and judicial powers to administrative agencies has been the due process clauses of the Constitution. There are two of these, one contained in the Fifth Amendment, and applicable to federal officers and agencies, the other in the Fourteenth Amendment, and applica ble to the officers and agencies of the states. These clauses say in effect that no federal or state officer or agency shall deprive any person of life,

to to all

liberty, or property without due process of law. There are two aspects of due process, one of which may be called procedural, the other substantive. Procedural due process means that a person cannot be deprived of

in

in

of

of

the safeguards which Anglo-Saxon precedent has pro hearings before courts for the citizen law.” However, the

review, and many vided

of

safeguards embodied the law the land. As applied administrative proceedings, these safeguards are commonly thought embody the necessity for notice, fair hearing, the opportunity for judicial the procedural

R.

L.

L.

L.

board provisions

the

commission does applicable courts to

by

is

in

many administrative But note that law proceedings not act "judicially,” hence not bound all the procedural of law.

or

v.

S.

55

S.

S.

v. v.

S.

v.

29

See Dowling Lancashire Ins. Co., 92 Wis. 63, 65 N. W., 738 (1896); Panama Refining Co. Ryan, 293 U. 388, 55 Ct. 241, 79 Ed. 446 (1935); Schecter Poultry Corporation 495, United States, 295 U. Ct. 837, 79 Ed. 1570, 97 A. Inspection Bureau Whitman, 947 (1935); State er rel. Wisconsin 196 Wis. 472, 220 N. W. 929 (1928). 90

|

Another way in which constitutional justification for the delegation of legislative and judicial power to administrative tribunals was found, was

THE LEGAL BASIS OF ADMINISTRATION

Ch. 28]

457

procedural aspect of due process was not so important until recent years. The report of the Administrative Law Committee of the American Bar

Association and the Walter-Logan Bill evidence a new interest in proce dural due process as applied to administrative agencies. Prior to that time the attack had been through substantive due process.”

As was said above, those who are today apprehensive of the expansion of administrative

power are attacking it upon the ground of procedure. The Morgan cases questioned the procedure used in the Department of

Agriculture. The Walter-Logan Bill would establish a series of administra tive hearings and slow up the administrative process, thus insuring oppor

for extended consideration. It would furthermore provide for a complete new trial in one of the high appellate courts of the country. It may be that the change in essential attitude sustained by the United States tunity

Supreme Court in recent years presages the turning away from substantive due process as a challenge to an expanding administrative discretion. SELECTED READINGS BOOKS AND MONOGRAPHS

Allen, C. K. pp.

Bureaucracy

Triumphant.

(Oxford University

Press, London,

1931),

1–105.

Attorney

190,

of

the

United States.

Ct. 148, 7.8

L.

Virginia, 290 U.

S.

Railway Co.

Law

S.

of

J.

See Southern

(1923).

v.

*

P.

F.

Student's ed., 1893), pp. 1–24. Goodnow, The Principles the Administrative (G. Putnam's Sons, New York, 1905), pp. 1–27.

54

J.

F.

P.

&

of

F.

of

E.

of

E.

D.

E.

J.

of

8,

C.,

General's Committee. Administrative Procedure in Government Agencies. 1941), 77th Cong., 1st sess., (Government Printing Office, Washington, D. Senate Doc. No. 474 pp. Aumann, Francis Robert. The Changing American System: Some Selected Phases. (Ohio University Press, Columbus, 1940), 281 pp. Beck, Bureaucracy. M. Our Wonderland (The Macmillan Co., New York, 1932), pp. 165–178. Blachly, F., and Oatman, M. Federal Regulatory Action and Control. (Brook ings Institution, Washington, C., 1940), pp. 3–39. Carr, Sir Cecil Thomas. Concerning English Administrative Law. (Columbia Uni versity Press, New York, 1941), pp. 1–30. Crouch, Winston W., and McHenry, Dean California Government, Politics and (University Administration. California Press, Berkeley, 1945), pp. 261–273. Cushman, Robert The Independent Regulatory Commissions. (Oxford University Press, New York, 1941), pp. 3–18. Dickinson, John. Administrative Justice and the Supremacy Law. (Harvard Uni versity Press, Cambridge, 1927), pp. 3–38. Dodd, Walter Administration Workmen's Compensation. (The Commonwealth Fund, New York, 1936), pp. 1–26. Fainsod, Merle, and Gordon, Lincoln. Government and the American Economy. (W. Co., Inc., New York, 1941), pp. 221–654. W. Norton Frankfurter, Felix. The Public and Its Government. (Yale University Press, New Haven, 1930), pp. 36–80. Goodnow, Comparative Administrative Law. (G. Putnam's Sons, New York,

Ed. 260

•

LAW

ADMINISTRATIVE

458

f

[Ch. 28

(University Haines, Charles Grove. The American Doctrine of Judicial Supremacy. of California Press, Berkeley, 1932), Vol. I, 705 pp. Haines, Charles Grove. The Role of the Supreme Court in Government and Politics, (University of California Press, Berkeley, 1944), 679 pp. 1789–1835. Hart, James. An Introduction to Administrative Law. (F. S. Crofts & Co., New York,

1940),

Hayek, Friedrich 1944),

250 pp.

621

A.

pp.

The Road to Serfdom.

(University

Hewart of Bury, Lord. The New Despotism. York, 1929), pp. 1–16. Hunt, Edward Eyre (Ed.). The Power Industry Century Fund, New York, 1944), 261 pp. Pennock,

J.

Roland.

Administration

New York, 1941), 259 Port, F. J. Administrative 257–295.

Robson, W. A. 1928),

of Chicago Press, Chicago,

(Cosmopolitan and the Public

and the Rule of Law.

Book Interest.

Corp.,

New

(Twentieth

(Farrar & Rinehart, Inc.,

pp.

Law.

(Longmans, Green & Co., London, 1929), pp. 1–22, -

Justice and Administrative

Law.

(Macmillan

& Co., Ltd., London,

pp. 1–39.

Swisher, Carl Brent. American Constitutional Development. (Houghton Mifflin Co., Boston, 1943), 1079 pp. Unsigned. Administrative Adjudication in the State of New York. (Governor's Office, Albany, 1942), 368 pp.

PERIODICALS Aumann, F. R.

Vol. Dimock, M. E. 1933),

(“The Lawyer and His Troubles.” 235, No. 4, pp. 310–318.

North American Review (April, -

“The Development of American Administrative Law.” The Journal of Comparative Legislation and International Law (3d Series, February, 1933), Vol. 15, Part 1, pp. 35–46. Field, O. P. “The Study of Administrative Law: a Review and Proposal.” Iowa Law Review (January, 1933), Vol. 18, No. 2, pp. 233–240. Haines, C. G. “Effects of the Growth of Administrative Law Upon Traditional Anglo American Legal Theories and Practices.” American Political Science Review (October, 1932), Vol. 26, No. 5, pp. 875–894. Leys, Wayne A. R. “Ethics and Administrative Discretion.” Public Administration Review (Winter, 1943), Vol. 3, pp. 10–23. Oberst, Paul. “Parties Proceedings.” Michigan to Administrative Law Review (January, 1942), pp. 378–405.

CHAPTER

29

THE STRUCTURE AND PROCEDURE OF REGULATORY AGENCIES There is a tendency when speaking of regulatory agencies to limit one's initial observations to those large commissions at the federal level which are outside the structural organization of any executive department. This inclination,

although

somewhat

restrictive,

is understandable

when

one

considers such factors as the nationwide jurisdiction of such agencies, the volume of business they are called upon to determine, the national and local importance of such matters, and the publicity attached thereto. A listing of the regulatory agencies within the above category would include the Interstate Commerce Commission, the Federal Trade Commission, the

Federal Power Commission, the Securities

and Exchange

the Federal Commission,

Communications the

Board, the United States Maritime Commission,

Commission,

National Labor Relations and several others. The

acts creating these regulatory agencies have followed a general pattern in regard to their personnel provisions. Thus, membership in a commission is determined by presidential appointment with the advice and consent of the Senate, for overlapping terms ranging from five years, as is the situa tion in the Federal Power Commission and National Labor Relations Board, to fourteen years in the Federal Reserve Board." In most cases, the law pro vides that membership in a federal regulatory commission shall be drawn from more than one political party.

Regulatory commissions of a similar nature are often found at the state level, examples being the Industrial Accident Commissions, the Public Utility Commissions, and Boards of Equalization. While considerable regu latory power has been vested in local government officials, such power has not, in general, been lodged in the hands of independent commissions. Probably the zoning powers of the City Planning Commission and Zoning

Board of Appeal constitute the most apt examples. The federal commissions, referred to above, are commonly designated as “independent” agencies. Though this terminology may be somewhat ambiguous,

§

what is probably

meant

is that the commissions

are outside

*41 Stat. 1063, 16 U. S. C. A. § 792 (June 10, 1920), 49 Stat. 451, 29 U. S. C. A. (July 5, 1935); 38 Stat. 260, 12 U. S. C. A. § 241 (December 23, 1913).

153

459

ADMINISTRATIVE

460

LAW

[Ch. 29

as or

In

all

and independent of the organizational structure of the ten great executive congres departments, although they are not necessarily exempt from presidential years sional controls.” recent there has been some contro

in

to

by

In

a

of

in

by

to

regard

of

the status these independent commissions, particularly relationship their with the President. This issue was resolved some degree the Humphrey's Executor case. that instance, Humphrey, member the Federal Trade Commission, was appointed versy

to

a

in

to

President Hoover succeed himself office for term expiring Decem Later, Humphrey, 25, however, ber 1938. President Roosevelt wrote asking for the latter's resignation from the Commission and stating “that to

of

be

of

the Administration with respect the work effectively personnel my carried out most with

of

the aims and purposes

or

the Commission can own selection,” but disclaiming any reflection upon the Commissioner per sonally upon his services. Another letter followed, expressing the hope

I

be

is

of

by

interim, the appeal for allegedly accrued compensation was prosecuted his executor.

by

in

a

to

I

of

I

or

I

forthcoming

it

know, and stating: “You will, your my go along together realize that do not feel that mind and mind on either the policies the administering the Federal Trade Commis sion, and, frankly, think best for the people this country that resign, Presi should have full confidence.” When Humphrey refused Humphrey having dent Roosevelt removed him from office. died the that the resignation would

unsuccessfully

a

in

of of

or

be

The statute provided that any commissioner may removed the duty, President for inefficiency, neglect malfeasance office.” The postmaster court held inapplicable the doctrine the Myers case, wherein power

Myers

a

is

to

a

a

so

the causes named

in to

of

as

of

A

to

remove him from office. quasi-legislative Federal Trade Commissioner exercises and quasi judicial powers, distinguished from those postmaster, which are purely executive and administrative functions political nature. The President's power remove Federal Trade Commissioner limited contested the President's

the statute,

Humphrey's removal was illegal.” The

to

as

establishing the doctrine that the would seem remain President may remove officers the normal executive establishments; meaning whereas the current the Humphrey case would seem that Congress may establish the causes for which members bunals can be removed, and that removals are limited merated. found

A. 41. Executor

be

enu

to

of

of

Regulatory

Commissions

(Oxford

University

Ed.

Ct. 869, 79 160

(1926).

L.

S.

S.

Ct. 21,

L.

52, 47

602, 55 71

United States, 272 U.

States, 295 U. S.

United

S.

v.

§

E.

Myers

v.

*

1614 (1935).

C.

S.

15

*

* 3

U.

the causes

tri

the power the President remove Morgan much-publicized the Tennessee

Cushman, The Independent Robert Press, New York, 1941), pp. 666–667. Humphrey's

independent

v.

officers

in

administrative

is

Perhaps the clearest indication

to of

to

of

*

in

case

Ed.

1611,

REGULATORY AGENCIES

Ch. 29]

Valley Authority

of just

461

few years ago. In that instance the question was raised as to whether the President acted within the scope of his power in removing the plaintiff as director of the Tennessee Valley Authority. The removal had not been arbitrary, capricious, or summarily taken; it was done only after sufficient inquiry and for a stated cause. However, the President did not remove the plaintiff for any specific ground laid down in case

a

the statute. In other words, did the President have any power of removal beyond that laid down in the Tennessee Valley Authority Act? The District Court decided in favor of the President's action, stating that the powes of removal was not limited merely to violations of the Act but extended to causes other than those specifically stated in such Act. Thus, any attempted legislative limitation of the President's power to remove officers appointed by him should be made clear by express provision or clearest implication.

by to

its

is,

On appeal to the courts the plaintiff contended that the Tennessee Valley Authority exercises quasi-legislative powers, and the President there fore, without power remove members during the terms for which

or

quasi-legislative chiefly

quasi-judicial functions. of

The Tennessee Valley Authority

an

tive bodies mainly exercising

or

or

be

in

an

on

in

of

they were appointed, reason the decision the Humphrey case. The appeal was denied the grounds that the Tennessee Valley Authority does, fact, exercise predominantly executive administrative function and aligned cannot with the Federal Trade Commission other administra

in

be

or

is

of

predomi him regardless whether such officer quasi-judicial quasi-legislative the exercise func of

in

officer appointed nantly engaged

by

in

of

it

In

of

is

administrative arm the executive department and hence the rule the Humphrey case does not apply. fact, may adduced from the testimony the Morgan case that, legislative limitation, the President may remove an the absence

-

tions."

of

in

a

be

this are the administration the Grain Standards Agriculture; the Department

of

by

Act and the Packers and Stockyards Act

by

of

is

latory control Illustrative examples

of

regu urged too strongly that very large volume located the ten great executive departments themselves.

The point cannot

of

to

its

In

of

of by

of

in

of

the regulatory authority exercised the Bureau Marine Inspection and Navigation the Commerce Department over the building, inspection, and ships; operation and the administration the Fair Labor Standards Act Department power prevent the fraudulent use the Labor.

of

of

of

its

the mails the Post Office Department has plenary regulatory power, and the Bureau Internal Revenue, through enforcement the tax laws, makes decisions affecting the economic position individuals and corpo rations.

L.

S.

61 to

of

S.

of

to

*

v.

F.

Morgan Tennessee Valley Authority, 28 Fed. Supp. 732 (1939); 115 (2d) 991, 992 (1940); petition the Supreme Court for Writ Certiorari the United States Cir Appeals for the Sixth Circuit denied, 312 U. 701, cuit Court Ct. 806, 85 Ed. 1135 (March 17, 1941).

ADMINISTRATIVE

462

LAW

[Ch. 29

Another type of regulatory agency follows, at least in principle, the recommendations of the President's Committee on Administrative Manage ment discussed below. Probably the best example is presented by the posi .

but leaves departmental officers.

matters

of

Integration

routine management

to

pendently,

of

its

tion of the Civil Aeronautics Board and the Department of Commerce. quasi-legislative and quasi-judicial functions inde The Board performs the appropriate

Administrative Tribunals

as

by

so

seems advisable

quote portions

of

them that

it

criticized batim,

much controversy

regulatory agencies. These proposals occa many who and were misunderstood to

so

ing with organization aspects sioned

for deal

1937, carried certain recommendations

of

Management, published

in

of

Recommendations of the President's Committee on Administrative Management.—The report the President's Committee on Administrative

the report -

follows:

ver

be

be

be

If of

to

of

to

if

or

. .

.

The plan would put independent commissions into regular execu pro tive departments “suitable” departments now exist can vided. “Suitable” departments are those that have functions relevant those the commission, and that are neutral with respect the regulatory duties “promotional” the commission rather than or provided, com otherwise biased. suitable departments cannot be

or

an

in up

be

or

to

of

a

to

be

of

in

of

be

by

in

of

in

be

a

as

as as

be a

it

of

be

by

of

be

of

be

a

in

independent. missions should commission, being put into department, would The broken down into two sections. One these would the Judicial Section, which would “in” the department for purposes “administrative housekeeping,” but otherwise completely independent. Its members only incompetence would removable the President for mis conduct, and neither the Cabinet Secretary nor the President could review its decisions. This section would handle the judicial and quasi judicial aspects regulation. Alongside would set Admin Section, istrative which would bureau division the depart fully Secretary responsible ment and such the and the President. The bureau chief, well the staff, should be on career basis given under appropriate civil service rules. To this section would rule-making, administrative, policy-determining and, general, the the regulation. To assure internal flexibility, changes aspects the structural details of these sections and the division of duties between then? might made Executive order the President. Such orders, however, Executive like those authorized the Economy Act agencies 1933 for the reallocation administrative and functions, might congressional disallowance within made subject fixed tim3 (60 days).7 p.

on

7

President's Committee Administrative Management, Report (Government Printing Office, Washington, D. C., 1937), 229.

with Special

Studies

REGULATORY AGENCIES

Ch. 29]

463

of

its

The opponents of these proposals raised the objection that, by placing the judicial section of the regulatory agencies in an executive department, judicial work would come under the influence the President and de departure was also alleged that this would offer judges and the system from the traditional principle the independence Furthermore, constitutional checks and balances. was pointed out that

It

officers.

it

of

of

of

a

partmental

it

a

of

to

it

\

previous

chap

of

Control.” The Committee was admittedly scientific management which advocates the

numbers

in

increase

enlarge and federal administrative units the point where department heads could not have to

of

the tendency

to

at

to

what alarmed

in

body the executive subordinates small enough num facilitate conference and advice. Moreover, the Committee was some

reporting to

independent and

this proposal are discussed

by a of

by

of

“Span ters under the head influenced that principle ber

absolutely

in

the implications

ought

of

Some

of

of

and personal nature, whereas impartial.

be

be

by

be

In

to

be a

tendency

he

violate the principle that who accuses and not also the judge. other words, was felt that the regu latory process would political, partisan, influenced considerations there might prosecutes

of

in

of

to

ready access the President. The point was advanced very strongly that the people hold the President responsible for the acts taken by the govern ment the expanding fields social and economic legislation. The tend ency toward infinite expansion administrative units, each separate and

in

that

of of

a

of

on

It

of

expanding the number

of

fear

in of

of

no

that there need

be

is

His view

to

appropriate

which favors the limiting the number the effective span attention one person. seems point.” opinion mention the James M. Landis this

organization

to

administrative departments

”

of

It

in

to

of

independent from the others, raised obstacles the proper fulfillment presidential responsibility.” pointed previous discussion has been out under “Span Control” that various authorities dispute the concept

agencies,

fact, it

is

of

the effect

by

jame **

1938).

Ibid.,

a

11

.

M. Landis, The Administrative Process 28.

a

5.

Ibid., pp. 39–40. See supra, Ch. p.

* *

as

if

administrative agencies are severally administered persons who are known being identified with particular function

or by

He contends that

.

.

in

is

in

of

be

to

a

makes

is

it

.

. .

promotes expertness but, number not only that for much more effective public responsibility. Such challenged statement bound those who draw their concept management administrative from traditional organizational charts, which, like genealogical trees, stem symmetrical form from one great original source. But blueprint symmetry poor substitute for organization realism too,

(Yale University Press, New Haven,

ADMINISTRATIVE

464

activity,

greater

public

responsibility

LAW

results.

[Ch.

They are unhampered

29

by

the restraint and inertia which may result from their inclusion as a subunit in another executive department.”

Much of the criticism of the proposals by the President's Committee is based upon a misapprehension of the Committee's actual objectives. Some of the critics seem to imply that the Committee favored placing the judicial activities of the regulatory agencies under the immediate and direct control of departmental officers and the President. However, this was not their plan. A great deal of the work of a regulatory commission is of a purely routine and ministerial character, having to do with housekeeping activities; other duties which do not involve new decisions follow a more or less set tled procedure; still others pertain to the preparation of cases and the re search and investigation which goes into the presentation of matters to the commission. It was suggested that these could just as well be placed in the hierarchal structure of an existing department, but that the process of

arriv

ing at a judicial decision should not be subservient to the discretion or influ ence of departmental officials. In other words, it was urged that the judicial aspect of regulatory work would remain an independent function.

Distinction Between Administrative Adjudication Administrative Legislation *

and

is,

When public officials exercise regulatory power, they are acting in a manner which sometimes resembles the functioning of a judge, and some times that of a legislator. From this source springs the terminology of in

or

definition

or

judicial

and quasi-judicial, that functions which are legislative nature, apparently so, but not the conventional legalistic Any judicial action taken by strictly legislative the words.

or of in

or

quasi-legislative

of

a

to

or

is,

is a

be

in

of

an

commission might seem constitute violation the sepa powers clauses ration our federal and state constitutions. While there confusing “no-man's land” wherein the distinction may not too clear, the differentiation nevertheless, necessary, practicable, and advis official

an

as

to

or

is

is

a

on of

an

of

is

of

composed regulations, whereas able. Administrative legislation rules the end product administrative adjudication referred order. regulation The essential mark distinction between rule on the one hand, and order the other, that the former has general applicability, be

of

a

it

in

w

or

is

in

a

It

to

specific situation.” may while the latter applies said that admin prospective envisages the promulgation istrative legislation that regulation generally applicable rule the future, whereas administrative

-

p.

D.

E.

F.

F.

**

D.

E.

F.

F.

an

* **

Ibid., pp. 28–30. Blachly and M. Oatman, Administrative For excellent discussion see Legislation and Adjudication (Brookings Institution, Washington, C., 1934). Blachly and M. Oatman, Federal Regulatory Action and Control (Brookings Institution, Washington, C., 1940), 67.

.

REGULATORY AGENCIES

-

Ch. 29]

465

adjudication

is the present determination of rights, privileges, and duties as of a previous or present time or occurrence. Only in rare instances, as in declaratory relief or advisory opinions, do the ordinary courts adjudicate

The immediately following paragraphs give considerable

as to the future.

attention to the procedural aspects of administrative

adjudication.

Procedure of Regulatory Bodies Current Emphasis on Problems of Procedure.—Criticism

of admin

istrative regulation has come largely from certain elements of the bar and conservative business groups. Until rather recently, their efforts were devoted principally to the nullification of legislation establishing regulatory bodies by having such legislation declared unconstitutional in the courts. However, the last decade seems to have established the inevitability of regulatory leg

be

regulation, which may

just another way

of

is

the “how”

of

“what”

to it.

islation to the point where the antagonists within the legal profession and business groups apparently have decided to live with it rather than try to destroy The result that their concern has been diverted from the saying

Regulation

Now Accepted

as

of

to

that they have started center their attention upon the procedural aspects regulatory process. the rather important procedure. Between recent events indicate the trend toward the study Special Com 1940, 1937 and the American Bar Association established be current

of

The report"

the Committee viewed laxness the administrative in

it

mittee Administrative Law. with alarm what considered

to

on

a

of

Inevitable.—Several

of

to

of

The supporters the House

to

President Roosevelt December 18, 1940. necessary the bill failed muster the two-thirds vote override the veto.

was vetoed

in

on

by

to

of

process and the alleged trend toward “administrative absolutism.” The general tenor these findings was similar the content the Walter Logan Bill,” which passed Congress by an overwhelming majority, but

of

the quality

of

of

it,

its

regulation

or of

the personnel which administered this Committee directed attention toward procedural problems and made both intensive and extensive surveys the administrative procedure

of

efficacy

or

on

in

of

There was published 1941 the final report the Attorney General's Committee Administrative Procedure." Disregarding the wisdom

those governmental agencies having regulatory powers and functions.

S.

of

R.

8

in

17 1°

a

of

of

to

**

Report and Draft of Bill by the Special Committee on Administrative Latv the Chicago Meeting Delegates and the Board the House Governors (American Bar Assn., Chicago, January, 1939), 43 pp. For discussion see Blachly and Oatman, Federal Regulatory Action and Control, pp. 183—230. 915, H. 4236, 76th Cong., 1st sess. Attorney General's Committee on Administrative Procedure, Administrative Procedure Printing Government Agencies, 77th Cong., 1st sess., Senate Doc. No. (Government Office, Washington, D. C., 1941).

-

ADMINISTRATIVE

466

LAW

[Ch. 29

Criticism of Regulatory Procedure—Combining Prosecutor, Judge, Jury in One Body or Person.—It is frequently charged that administra tive adjudication violates that principle of Anglo-Saxon civil liberty which says that one person shall not be both prosecutor and judge in the same action. This charge is based upon the fact that many regulatory agencies have the power to initiate actions themselves. In other words, they, or their agents, issue the complaint, serve the process, and present the evidence, oral and documentary, and arguments upon which the complaint is based during the subsequent hearing.

James M. Landis believes that these prosecuting regulatory activities of the bodies are more significant than those of ad judication.” This is contrary to the orthodox judicial practice, for a court of law

does not

ordinarily have

the power to reach out and make complaints

on its own initiative.

Our federal commissioners are not judges in the strict

sense, although

they at times act in a quasi-judicial capacity and exercise the power of a court in so far as an act of Congress has conferred authority or imposed the performance of a specific duty.” This is generally considered desirable, particularly in the technical fields of regulation where it is felt that the ordinary judge does not possess the training to make sound decisions in these matters. Furthermore, the regulatory commission is not a mere neu tral arbiter in matters coming before it but it is expected aggressive exponent of the public interest.

to act as an

The Question of Written Opinions.—There

has been some desire among most lawyers to have administrative orders appear in the form of written opinions. It is quite a natural desire for any lawyer to want to know the reasons underlying a commission's ruling which is adverse to his client's case. Conversely, when a favorable ruling is made, it would be comforting

to realize that one might predict, with comparative certainty,

similar treatment for the same reasons in a subsequent action of like nature.” The practice in this respect is not uniform. Some regulatory agencies issue written opinions very much in the form and style of those of appellate courts, while others furnish merely memorandum decisions, setting forth the action taken. It is probably a safe generalization to say that it is not nearly so common for administrative tribunals to issue written reports, stating how they arrived at their opinions, as the case with appel problem opinions, late courts. On the of written the Attorney General's

ii

Committee made the following findings and recommendations: ~

proposition the Committee believes that written opinions are highly desirable attributes of administrative decisions in . . .

As

p.

in

of

E.

of

** Landis, op. cit., pp. 109–110. 1° United States v. Jones, 230 Fed. 262, 264 (1916). precedent zoning cases before Zoning Boards On the undesirability the rule Zoning York, Appeal, see Bassett, Sage Foundation, 1936), M. (Russell New 127. 20.

of

a broad

w

REGULATORY AGENCIES

Ch. 29]

467

individual cases; and in fact many of the agencies do now prepare and publish opinions in much the manner of trial and appellate courts. The Committee does not recommend imposing upon the agencies the duty of formulating elaborate opinions in every case. The necessity of preparing such opinions in a multitude of simple or petty cases might well be an undue drain on the resources of an agency, leaving insuffi cient time for more complex and important matters. But insofar as feasible, the Committee recommends that opinion accompany deci sions.21

Powers of the Trial Examiner

It

would be physically impossible for administrative officers and com missions charged with regulatory responsibilities to hear each case them selves. The result is that hearings are usually presided over by officers or employees called examiners and referees. The decisions upon the cases. must eventually be made and the orders signed by the principals. Contro versy has arisen as to whether an officer should not give another opportunity for a hearing before himself when he signs an order solely upon the advice of a subordinate. This question came to an issue in the Arlidge” case in

England and the Morgan cases in the United States.” In the former it was decided that the Local Government Board could proceed to a decision on the basis of the trial examiner's report without granting Arlidge a new hearing before the Board itself. The Morgan

cases questioned the power

of the Secretary of Agriculture

to issue an order regulating stockyards, when he had not heard the evidence himself, acting on the basis of the report of a subordinate who had heard the evidence six or more months previously. The Supreme Court, in the

first Morgan

capitulated to the appellant's contention that the Secretary of Agriculture would have to hold hearings, and to have read personally signed the order. Such the transcript in those cases where rule would obviously place too great burden upon high department offi practice

is

a

cers, with the result that the rule

in

a

he

all

case, practically

now somewhat modified.

of

a

tentative order,

recommendations

as

of

to

examiner's intermediate report, sometimes referred and findings fact. These comprise the examiner's

as

of

by

of

in

It

the light some subsequent cases, particularly those involving the National Labor Relations Board, that the rights adversely furnishing parties protected copies affected have been them with the would seem,

of

be

in

so

to

of

finality for the final disposition the case, and are served advance exception and oral argument thereupon, that the affected party may Attorney General's Committee Administrative Procedure, op. cit., pp. 29–30. Arlidge, 1915 Law Reports 120, 111 Law Times Reports Government Board

L.

Ed.

1211

L.

1288 (1936); Ed. 1135

82

L.

80

Ed. Ct. 999,

83

S.

Ct. 906, 23, Ct. 795, 58

S. S.S.

U.56

S.

S.

U.

L.

82

v.

S.

1,

58 v.

*

Morgan 468, United States, 298 304 U. S. Ct. 773, Ed. 1129, 304 (1938); United States Morgan, 307 183,

58

U.

v.

on

*

#

90s" 1915).

(1939).

ADMINISTRATIVE

468

LAW

[Ch.

29

apprized of the basis for the final order as signed by the superior officer. Conversely, the affected party may draw up intermediate reports, findings, and orders which he may lay before the superior officer for consideration before the final order is given.” Another criticism commonly made by members of the bar is the great relaxation of formalized procedures in administrative hearings as com pared to courts of law. This is likewise true as to the applicable rules of evidence, which will be discussed subsequently. Before going farther into these questions of procedure it seems desirable to set forth the chronologi cal steps taken in a typical case handled by a regulatory agency.

The Regulatory Process: A Hypothetical Case The Complaint.—A

case before an administrative

tribunal may be

insti

tuted in one of three ways: the informal complaint, the formal complaint, or action initiated by the regulatory agency itself. An informal complaint can take the form of a postal card, letter, telephone call, and an informal personal appearance. An example of an informal complaint would be an action taken by a consumer of electric current who disputes the amount for which he is billed, and requests the public utility commission to make an investigation.

Another illustration would be where a union business agent endangered employee writes to the Industrial Accident Commission by or letter or postal card complaining that a named employer had violated safety

rules and regulations as previously promulgated by that body. A formal complaint, on the other hand, is one which is drawn up in much the same style and manner as the pleadings which have been used traditionally to begin actions in courts of law. Some regulatory acts require certain types of complaints to take on this formal aspect; for instance, it is fairly com mon practice to require the signatures of a minimum number of con sumers, say twenty-five, to a formal complaint to institute rate proceedings before state public utilities commissions.

It

is the third manner of initiating actions wherein administrative

pro

cedure differs from that of courts of law. Ordinarily, the latter do not have the inherent power to commence actions or issue complaints. It may be pointed out in this connection that some of the most significant actions taken by administrative bodies have been instituted upon their own initia tive. This is very frequently true in public utility rate proceedings. There will be some discussion below of the role of a regulatory agency as a pro ** National Labor Relations Board v. Mackay Radio & Telegraph Company, 304 U. S. 333, 58 S. Ct. 904, 82 L. Ed. 1381 (1937); National Labor Relations Board v. Cherry Cotton Mills, 98 F. (2d) 444 (1938). See National Labor Relations Board v. Biles Cole man Lumber Company, 98 F. (2d) 16 (1938); Cupples Company Manufacturers v. National Labor Relations Board, 103 F. (2d) 953 (1939); Inland Steel Company v. National Labor Board, 105 F. (2d) 246 (1939); National Labor Relations Board v. Botany Relations Worsted Mills, Inc., 106 F. (2d) 263 (1939).

Ch. 29]

REGULATORY AGENCIES

469

tector of business interests. An administrative tribunal is expected to be not only an arbiter between individuals, but it must also be a guardian of the public interest and take the appropriate action or actions in the protec tion thereof. It is in this capacity that the administrative tribunal is em powered to begin actions before itself.

Notice.—It is a fundamental principle of Anglo-Saxon law that parties who might be adversely affected in judicial proceedings are entitled to rea sonable advance notice of the charges or cause upon which action is to be based. While notice and hearing are a matter of right in the administrative process, they are given only to persons primarily interested, and are not necessary in the unusual case where notice to all would be impracticable or impossible. This has been interpreted by the courts to mean that notice is not required where the interested parties are so numerous that service on each party would be impracticable,

or where the parties are so few that they know, or should know, of the pending action.”

Hearing.—The hearing before an administrative

tribunal

corresponds

to the proceedings in open court before a judge. The chief difference be tween a court and administrative body in this respect is that usually a judge hears all of the evidence personally in a court of the first instance. There are, to be sure, certain exceptions to this rule, such as in equity cases may be appointed to take evidence outside where “Masters in Chancery”

”

the court room. Referees sometimes assist the judge in juvenile court prac tice, and this is being extended to civil cases in some advanced judisdictions. However, it is still overwhelmingly the rule that judges in courts of law must hear the evidence personally. Quite the reverse is true of the larger administrative regulatory agencies, where one finds a single tribunal having literally dozens of examiners or referees, whose sole duty it is to preside at hearings and, based upon the evidence adduced therein, formulate written findings of fact and conclusions

of law to

be signed by the department head

or commission in the manner described previously.” The first Morgan case created some consternation among the administrative agencies of the coun try, because the rule of law pronounced therein seemed to nullify the very purposes for which trial examiners were utilized.

* Re

Public Service Electric Co., New Jersey Board of Public Utility Commissioners, 1918 E. 898 (1918); Cleveland, Cincinnati, Chicago & St. Louis Ry. Co. v. Backus, 133 Ind. 513, 33 N. E. 421 (1893), affirmed in 154 U. S. 439, 14 S. Ct. 1122, 38 L. Ed. 1041 (1894); R. R. Tuttrup, “Necessity of Notice and Hearing in the Revocation of Occupational Licenses,” Wisconsin Law Review (1927), Vol. IV, p. 180; “Due Process Requirements of Notice and Hearing in Administrative Proceedings,” Columbia Law Review (1934), Vol. XXXIV, p. 332. The “Master in Chancery” was formerly an assistant to the judge or chancellor of a Chancery Court and performed various duties referred to him by the court. In modern prac tice, where the office still exists, the functions of a “Master” are usually performed by clerks, commissioners, auditors, and referees. See Kimberly v. Arms, 129 U. S. 512, 9 Ct. 32 L. Ed. 764 (1889); and Schuchardt v. People, 99 Ill. 501, 39 Am. Reports (1881).

P. U. R.

*

;

;

** See supra, Ch. 28, note 21.

*

-

LAW

ADMINISTRATIVE

470

[Ch.

29

The customary administrative practice is to have the testimony before trial examiners taken verbatim by a stenographer or stenotype operator and then transcribed and preserved so that it can be used if needed as a record, in further proceedings. The function of the trial examiner is purely ad visory to his superior officer or commission. His report may take at least two forms, or a combination of each. In some instances he may be per mitted to go no further than to summarize the evidence without making positive recommendations. In other cases he may be authorized or directed to offer recommendations in a form which, if approved, might constitute a final order when signed by the department head or commission. There is a considerable area wherein more informal procedure may be justified. An example is the experience of the Department of Agriculture in poultry license cases where investigators are sent into the field to inves tigate and negotiate. It is said to be likely “that a single competent investi gator, equipped with an alert sense of fairness and an ability to speak Yid dish, could accomplish more in the New York market than can an exam iner and an attorney at a hearing.”.” As a matter of fact, there is a great deal of regulatory action in a wide variety of activities which can be adjusted by negotiation and investigation by representatives in the field. This cedure has been followed for years by public utility commissions in

pro

han

be

a all

dling the several complaints which come to it relative to the inaccuracy of customers' meters. The usual procedure is for a utility engineer to try, as the first step, to get the customer and the company to come to an under standing as a result of their negotiations. If this should fail, a commission representative will go to the field and make actual tests of the working of the meter. In most instances there will result a satisfactory settlement without the issuing of an order or any authoritative action being taken. As a matter of law, regardless of the form of hearing, in cases where private rights are involved due process requires that: (1) hearing

adequate, (3) that the findings support the (2) that the hearing evidence, and (4) that the facts support the order made. but one these judicial review.” lacking, the aggrieved party elements entitled

of

to

a

is

be

If

of

be

granted,

in

by

the functions

of

or rules. The nature

of

in

by

rules

as

applied evidence administrative hearings creating agencies, are determined the statutes the the rules adopted them, and the judicial decisions appellate courts interpreting the statutes

Evidence.—The

administrative

tribunals

and the

L.

57

of

of

Department C., 1940), pp. 22–24. Louisville, Nashville Ry., 227 88,

Agricul. S.

33

S.

U.

D.

of

Administrative Procedure,

Washington,

-

on

of

by

Attorney General's Committee (mimeographed the Committee, Interstate Commerce Commission 185, Ed. 431 (1913).

ture

v.

* *

of

be

of

procedure and reasons for their creation are such that their methods operation should more flexible than those the courts law. Strict judicial rules application evidence would seriously interfere with the

Ct.

REGULATORY AGENCIES

Ch. 2 9

-

47

I

work of the commissions, and their effectiveness is greatly increased by a relaxation of the rigid rules of evidence. The conduct of the hearings before the commissions and boards, as well as the carrying on of their several functions without strictly applying the technical rules of evidence, saves money, time, and trouble, and is conducive to a better understanding of the facts. The commissioners are experts, and therefore are capable of ascer taining the relevant and important facts upon which to make an order without resorting to the rules which courts deem necessary to assure an honest, accurate, and unbiased presentation of information for judges and lay juries. The commissioners are more apt to be able to weigh the evi dence, however informally presented, than courts of law.” Some of the technical

rules of evidence which

the commissions

and

boards refuse to apply rigidly are the hearsay rule, the best evidence rule, the rules with reference to impeachment, the rule forbidding testimony of spouse against spouse, and the rule against the admission of one act of crime to prove another.” The right of cross-examination is denied when hearsay evidence is admitted.” The state commissions are even more liberal than the federal commissions with respect to relaxing the rules of evidence.

Furthermore, these administrative tribunals generally disregard the hear say rule, the best evidence rule, and the opinion rule.” It should be noted also that state administrative commissions give effect to presumption stat utes which shift the burden of proof and the burden of going forward with the evidence, use the probative value of circumstantial evidence, and take judicial notice of facts generally known and facts adduced in previous hear ings which do not impair the substantial rights of the parties.** for this subsection is taken largely from H. M. Stephens, Adminis of Evidence (Harvard University Press, Cambridge, 1933), Ch. VII, pp. 92–103. The opinions are those of the author. Spiller v. Atchison, Topcka & Santa Fe Ry. Co., 253 U. S. 117, 40 S. Ct. 466, 64 L. Ed. 810 (1920); U. S. v. Abilene & S. R. Co., 265 U. S. 274, 44 S. Ct. 565, 68 L. Ed. 1016 (1924); John Bene & Sons, Inc. v. Federal Trade Commission, 299 Fed. 468 (C. C. A. 2d, 1924); Er parte Mouratis, 21 F. (2d) 694 (D. C. Cal., 1927); Pennsylvania R. Co. v. U. S., 40 F. (2d) 921 (D. C. Pa., 1930); Cahan v. Carr, 47 F. (2d) 604 (C. C. A. 9th, 1931). It becomes fairly common practice to shift the burden of proof and the burden of going forward with the evidence in administrative cases in such a fashion as to accom plish better the desired ends of legislation since some facts of the case are peculiarly within Longshoremen’s and Harbor Workers' Compensation Act, the knowledge of the defendant. 33 U. S. C. A. § 920, 44 Stat. 1436 (March 4, 1927). It will be noted that some state Florida, Georgia, statutes require the administrative tribunals to apply the rules, of evidence: Maine, North Carolina. See the Virginia statute, Pa. Code Ann. (Michie, 1930), Sec. 37:23. ** See Chin Ah Yoke v. White, 244 Fed. 940, 157 C. C. A. 290 (C. C. A. 9th, 1917); Caranica v. Nagle, 23 F. (2d) 545 (C. C. A. 9th, 1928). 39 Lowell v. Comm. of Middleser County, 152 Mass. 372, 25 N. E. 469, second case (1890); Chicago & N. W. R. Co. v. Railroad Commission, 156 Wis. 47, 145 N. W. 974 (1914); Pacific Gas & Electric Co. v. I. A. C., 180 Cal. 497 181 Pac. 788 (1919); Sºhºl kill Ry. Co. v. Pub. Service Commission, 268 Pa, 430, 112 Atl. 5 1920); Continental Cas walty Co. v. I. A. C., 195 Cal. 533, 234 Pac. 317 (1925); Michigan Law Review (1926), *9 Factual

material

trative Tribunals and

the Rules

*

Vol. XXIV,

* New

p. 831.

Compensation Law, Thompson's Laws of New York, 1941 Joseph v. United Kimono Co., 194 App. Div. 568, 185 Cumulative Supplement, p. 1055 N. Y. Supp. 700 (1921); Del Vecchio v. Borvers, 296 U. S. 28, 56 S. Ct. 190, 80 L. Ed. 229 (1935); Carroll v. Knickerbocker Ice Co., 218 N. Y. 435. 113 N. F. 507 (1916); Perry v. I. A. C., 180 Cal. 497, 181 Pac. 788 (1919); Mountain Ice Co. v. Durkin, 6 N. J. Misc. 1111, 144 Atl. 6 (1928); Sparks v. Consolidated Indiana Coal Co., 195 Iowa

York Workmen's

f.;

ADMINISTRATIVE-LAW

472

[Ch. 29

addition to the oral testimony, voluntarily given by witnesses at the hearing, there are other ways of procuring and introducing competent evi dence which are usually provided for by statute. Lay and expert witnesses

In

who have personal knowledge of relevant and important facts or are able to give opinions which, based upon the facts, will help in the disposition of the case, but who refuse to attend, may be subpoenaed to make an appear

to

as

by

be

to

in

is

to

is

process

or of

session

or or

is, a

is

in at is

directed duced

issued whereby the party whom the writ compelled produce the specified books and records his pos the time the hearings.” These books and records may intro may serve evidence the basis for testimony the witnesses

That

tecum.

to

all

ance and testify before the hearing. This right to subpoena witnesses is usually accorded to parties litigant.” Coupled with the right subpoena right subpoena records, subpoena witnesses the books and called duces

to

subpoena witnesses Where no right exists the parties documents, some jurisdictions provide for the introduction depositions personal testimony, and affidavits lieu such form evidence being accorded its deserved weight.”

of

in

of

Administrative hearings differ from those

in

in

of

of

in

the experts.

it

* to

A

its

courts law another respect. require reports, vital commission can send out own exami ners, accountants, engineers, and investigators secure evidence, provided does not violate the search and seizure clause of the federal Constitu

a

to of

no

in

at

an

of

no

in

in

of

is

litigant

of

a

er

an

is

or

parte investigation.” Before court, only the parties not can introduce evidence. This one more indication the interest general being the public administrative adjudication. Instead purely private controversy, the effects society which have concern large, the government itself has interest administrative cases. The

tion

its

to

to

it

in

be

commission, representing the public interest, makes sure that stone will unearthing left unturned the facts. To this end sends out own experts find the truth where they can and listens their sworn testimony on the witness stand.40 of

48

in

of

38

L. L.

S.

80

S.

14

56

1,

S.

Fe

70

&

&

v.

E.

N.

v.

3,

Ill.

S.

U.

S.

46

v.

S.

v.

64 U.

a

is

er

**

v.

**

er

it

v.

U.

61

Y.

N.v.

of

* *

p.

of

v.

16

v.

v.

of

L.N.

F.

J.

334, 190 W. 593 (1922); City Elizabeth Board Public Utility Commissioners, 496, 123 Atl. 358 (1924); West Ohio Gas Co. 99 N. Public Utilitics Commission, Gelbach, 42 (2d) 899 (1928); Olympia. Water Works Wash. 482, Pac. 251 (1897); Frank A. Ross, “The Applicability Common Law Rules Evidence Pro ceedings. Before Workmen's Compensation Commissions,” Harvard Law Review (1923), XXXVI, Vol. 263. Brimson, 154 447, Interstate Commerce Commission Ct. 1125, Ed. Davies, 168 89, 1047 (1894); Matter N.E. 118 (1901). Jones Securities and Erchange Commission, 298 Ct. 654, Ed. “fishing expedition.” 1015_ (1936), provided not North, 271 40, Missouri rel. Hurwitz Ct. 384, L.Ed. 818 (1926); Brinkley Hassig, 130 Kan. 874, 289 Pac. (1930). United States Constitution, Amendment IV. Atchison, Topcka Ry. Co. State rel. Public Utility Commission Santa 115 Kan. 221 Pac. 259 (1923); Federal Trade Commission Claire Furnace Co., 285 Chicago, Rock Island Fed. 936 (1923); Farmers' Elevator Co. Pacific Ry. Co., 266 107. 841 (1915). Max Thelen, “Practice and Procedure before Administrative Tribunals,” California Law Review (March, 1928), Vol. XVI, 218; Kanneberg, “Practice before the Rail road Commission,” Reports the State Bar Association Wisconsin (1929), 122.

p.

A.

of

of

p.

*

567,

REGULATORY AGENCIES

Ch. 29]

473

The Rôle of Attorneys in Administrative Procedure.—While there is a wide field of informal proceeding where attorneys may not be needed, they do actually play an important part in procedure before administrative bodies. There has been some impatience on the part of critics of the legal profession, and those who feel rather deeply upon the social objectives of regulation, with the apparent desire of representatives of the bar to intro duce the element of contentiousness which characterizes procedure before

courts of law.” It was undoubtedly the objective of the Walter-Logan Bill and the report of the Special Committee of the American Bar Association to require administrative adjudication to take on more of the characteristics

familiar to lawyers in the normal judicial process. There is unquestionably a conflict of temperament and fundamental point of view between the cru sader for social objectives, who has been responsible for the enactment of much of the regulatory legislation, and certain groups of the bar. There are probably several grounds upon which attorneys would naturally look askance at administrative action. In the first place, it seems to outrage their sense of professional morals to concede that a layman should act as judge it is natural, if they have to make conces sions, to expect the layman acting as judge to conduct himself in somewhat the manner of a judge. In the third place, the lawyer can be forgiven for

in any

cause.

In

the second place,

being apprehensive

to his livelihood, whether this threat be or real. In the fourth place, the prosperous branch of the bar has been naturally and traditionally allied with those who believe they have the most to lose by administrative regulation. The result is that social and

of

a threat

imaginary

economic beliefs, social and cultural alliances, and fundamental tenets of legal training and practice have allied an influential proportion of that pro fession almost overwhelmingly on the side of economic conservatism. It is probably this conservative ideology, more than anything else, that has been responsible for such moves as the Walter-Logan Bill and the report of the Special Committee of the American Bar Association. procedure lawyers Administrative does command the services of to a very large extent, counsel being present at many hearings. While these hearings are not characterized ordinarily by the objections to evidence,

which are well known, even to the layman,

as applying to

judicial procedure,

the lawyer's presence does have a significant influence upon the course of these hearings. There is one respect, however, in which administrative practice may give an opportunity for an attorney of a different type from

the extrovert court room lawyer. Argument before administrative tribunals is less frequently oral. It is usually in the form of writing or briefs. there is to be a summing up of the evidence, this usually is done in the

If

41 Charles Grove Haines, “The Adaptation of Administrative Law and Procedure to (February, Constitutional Theories and Principles,” American Political Science Review 1940), Vol. XXXIV, No. 1, pp. 1, 10.

ADMINISTRATIVE

474

LAW

[Ch. 29

.

form of writing. This may offer more opportunity for the research type of office lawyer, who would be less at home in the court room. There seems to be ample evidence that administrative practice is becom ing an increasing source of livelihood for members of the legal profession. A former president of the American Bar Association recently declared that administrative tribunals are here to stay and their number and powers are more likely to increase than to diminish. He went on to say that they should spell opportunity to the legal profession.*

by

to

on

an

to

as

to

no

lis

The Public Is an Interested Party.—The distinguishing, if not the essential, feature of the judicial process is the inter partes. The judge has authority go searching for controversies which whet his judg brought ment. He must confine himself such cases are before him be

legal decision.

to

or a an

of

be

a

interest

in

This interest must vital and real, not perfunctory and academic. The action may not brought except right.” To this rule has been added the right for the infringement

parties having

interested party

is

anticipation

of

in

injunction,

Hence,

is

a

to

relief right.

be

a

at as

by

a

or

or

damage

an

threatened injury adversely one who may become adversely affected.” Other rules affecting party affected half-century Dicey ago laid down more than and somewhat modified present are: (1) the same person cannot both plaintiff and defendant seek declaratory

is

be

or

to

an

in

he

stands two separate and distinct positions, as, for example, bring individual and executor, individual and trustee); (2) the right assigned right, however, action cannot transferred (such now fully

if

(except

to

in

on

lis

of

º

of is

be

to

or

be

no

utilized); (3) person can sued who has infringed, infringe, upon the right respect not threatens which brought; infringes every person the action and (4) can sued who the right another.” The rapid growth administrative tribunals during the present century recognized and frequently

a

of

to

by

a

of

a

by

in

to

a

brand

of

justice which the inter partes plays lesser law, philosophy rôle. The old common actuated laissez faire and develop adjudication sufficiently economic individualism, failed form flexible meet the changed environment created the industrial revolu

has introduced

to

of

a

to

of

in

of

is

an

of

technology. The failure tion and growth the judicature “endow the general public with regard interest matters where forcible for the social good the first moment” led the recent expansion adminis trative tribunals.” 61

to

of

S. ft.

44 30

f.

79

Dicey, op. cit., Robson,

p.

v.

&

p.

A

A.

p.

J.

* ** ** D. ** *

Hogan, “Fresh Fields and Pastures Green,” Frank New Jersey Law Journal (1939), Vol. XI, 86. V. Dicey, Treatisc on the Rules for the Selection the Parties an Action Co., Jersey City, 1879), (F. Linn Artcr; Southern Surety Company W. (2d) 913 (1932).

E.

in

of

a

of

&

A.

Co., Ltd., London, Justice and Administrative Law (Macmillan 1928), pp. 71, 72. For broad and exhaustive discussion the concept the public interest administrative regulation, see Pendleton Herring, Public Administration and the Public Interest (McGraw-Hill Book Co., Inc., New York, 1936).

W.

Ch. 29

-

REGULATORY AGENCIES

475

SELECTED READINGS BOOKS AND MONOGRAPHS Legislative American Bar Association Special Committee on Administrative Law. Proposal on Federal Administrative Procedure. (American Bar Assn., Chicago, 1944), 41 pp.

Attorney

General's Committee. Administrative Procedure in Government Agencies. (Government Printing Office, Washington, D. C., 1941), Senate Doc. No. 8, 77th Cong., 1st sess., 474 pp. Benjamin, Robert M. Administrative Adjudication in the State of New York, Report

(Albany, 1942), 369 pp. to the Governor. Blachly, F. F., and Oatman, M. E. Administrative Legislation and Adjudication. (Brookings Institution, Washington, D. C., 1934), pp. 91–162. Blachly, F. F., and Oatman, M. E. Federal Regulatory Action and Control. (Brook ings Institution, Washington, D. C., 1940), pp. 40–55. Board of Investigation and Research. The Report on Practices and Procedures of Government Control. (Government Printing Office, Washington, D. C., 1944), 78th Cong., 2d sess., House Doc. No. 678, pp. 9–32. Carr, Sir Cecil Thomas. Concerning English Administrative Law. (Columbia Uni versity Press, New York, 1941), pp. 93–126. Comer, J. P. Legislative Functions of National Administrative Authorities. (Colum bia University Press, New York, 1927), 270 pp. Cushman, Robert E. The Independent Regulatory Commissions. (Oxford University Press, New York, 1941), pp. 666–741, 742–759. Dickinson, John. Administrative Justice and the Supremacy of Law. (Harvard University Press, Cambridge, 1927), pp. 3–75. Fesler, James W. The Independence of State Regulatory Agencies. (Public Ad ministration Service, Chicago, Pub. No. 85, 1942), 72 pp. Graham, George A., and Reining, Henry, Jr. Regulatory Administration. (John Wiley & Sons, Inc., New York, 1943), 247 pp. Hart, James. An Introduction to Administrative Law. (F. S. Crofts & Co., New York, 1940), pp. 258–370. Herring, E. Pendleton. Federal Commissioners. (Harvard University Press, Cam bridge, 1936), 151 pp. McGoldrick, J. D. Building Regulation in New York City. (The Commonwealth Fund, New York, 1944), 743 pp. -

PERIODICALS

“Proposed Federal Administrative American Bar Association. Procedure Act.” American Bar Association Journal (April, 1944), Vol. 30, pp. 226–230. Benson, George C. S. “Administrative Regulation Within Federal Departments.” Annals of the American Academy of Political and Social Science (May, 1942),

Vol.

221, pp. 64–71.

K. “The Problem of Reform of Administrative Procedure.” Federal Bar Journal (April, 1945), Vol. 6, pp. 264–290. Brown, Arthur L. “The Office of Administrative Hearings.” Cornell Law Quar terly (June, 1944), Vol. 29, pp. 461–488. Charlesworth, James C. “The Regulatory Agency: Detached Tribunal or Positive Administrator?" Annals of the American Academy of Political and Social Science (May, 1942), Vol. 221, pp. 17–20. Duane, Morris. “Mandatory Hearings in the Rule-Making Process.” Annals of the American Academy of Political and Social Science (May, 1942), Vol. 221, pp. Beutel, F.

115–121.

Freer,

R. E. “Federal Trade Commission Practice Journal (July, 1945), Vol. 6, pp. 387–398.

and

Procedure.”

Federal

Bar

ADMINISTRATIVE

476

LAW

[Ch.

29

Gaus, John M. “The Case for Integration of Administrative Agencies.” Annals of the American Academy of Political and Social Science (May, 1942), Vol. 221, pp. 33–39.

Goldman, Max. “The Administrative Procedure Bills—Again Unsound and Unwork Lawyers Guild Review (September-October, 1944), Vol. 4, pp. 1–14. able.” Hart, James. “Limits of Legislative Delegation.” Annals of the American Academy of Political and Social Science (May, 1942), Vol. 221, pp. 87–100. Hyneman, Charles S. “Administrative Adjudication: an Analysis.” Political Science Quarterly (September, 1936), Vol. LI, No. 3, pp. 383–417; (December, 1936), Vol. 51, No. 4, pp. 516–537. Pinney, Harvey. “The Case for Independence of Administrative Agencies.” Annals of the American Academy of Political and Social Science (May, 1942), pp. 40–48. Rohlfing, Charles C. “Regulation of Aviation: A Case Study in Reorganization.” Annals of the American Academy of Political and Social Science (May, 1942),

Vol.

221, pp. 56–63.

Simon, Herbert A. “Enforcement of Regulatory Ordinances.” Public Management (August, 1945), Vol. 27, pp. 226–230. Waite, J. B. “Freedom of the Press—Administrative Censorship—the “Esquire’ Deci sion.” Michigan Law Review (June, 1945), Vol. 43, pp. 1172–1180. Willis, John W. “The Literature of OPA: Administrative Techniques in Wartime.” Michigan Law Review (October, 1943), Vol. 42, pp. 235–256.

CHAPTER

30

JUDICIAL REVIEW OF ADMINISTRATIVE ACTION The Finality of Administrative

Decisions

the United States there is no legal limit upon the right of courts to review the decisions of administrative tribunals. Legislatures cannot insu late administration against judicial review by introducing into the statute

In

review. Our doctrine of constitutional limita tions is such that the judiciary can question every administrative act. Even if a state constitution attempted to set up an administrative commission clauses designed to thwart

whose acts were not subject to review by the state courts, judicial review could be accomplished in the federal courts under the due process clause of the Fourteenth Amendment. The sum and substance of the situation is that the courts may review to the extent they deem desirable; that there is no method whereby one may know whether they will or will not review in individual cases; and that administrative decisions are final to some unde fined extent, “and there seems to be a tendency at work to make them creasingly so.””

in

-

as

of

on

of

of

a

in in a

in

sion. Thus, determinations

venerable agency

the Interstate Commerce Commis recent session the Court consistently upheld administrative the tried and tested railroad areas,” but reversed Com regulation the new field trucks the ground

such

a

eye even

on

its

The United States Supreme Court is content to permit a large degree of administrative finality in old and tested fields where accepted principles, routines and techniqués of regulation prevail; but it will keep watchful

of

by

is

It

on

of

mission order inadequacy record and proof.” thought that the whole the courts, especially the federal judiciary, welcome the relief afforded the rapid growth administrative adjudi

have been required.

The courts have

been

unwilling, nevertheless,

to

in

of

cation the last few years. Without this aid the dockets the ordinary courts would have been so crowded that some other sort of relief would

relin

477

S. L.

L.

88

S.

S.

1,

S.

64

S.

64

S.

v.

U.

U. v.

U.

&

P.

O.

v.

* L.

*

p.

*

of

John Dickinson, Administrative Justice and the Supremacy Law (Harvard Univer sity Press, Cambridge, 1927), 38. Ry. S., 322 U. Chicago, St. M. Ct. 842, 88 Ed. 1093 (1944); Interstate Commerce Commission Jersey City, 322 U. 503, 64 Ct. 1129, 88 Ed. 1420 (1944). S., 321 Ed, 668 (1944), 194, Eastern Central Assn. Ct. 499,

LAW

ADMINISTRATIVE

478

[Ch. 30

quish their right to question administrative action.* The following para graphs will attempt briefly to consider the present status of judicial review of administrative action. cannot ordinarily resort to the courts until he has exhausted quite properly so, otherwise administrative remedies.” This have purposes delay deprive recourse the courts for mere would adminis to

of

is

a

by a

issue

a

of

an

to

the power

major

their

or

or

of

law

the provisions

Under

one

examine questions fact unless they also involve questions statutory authority.” constitutional the Johnson Act," federal district court denied injunction against state administrative order when

of

Courts are prone not questions

nature which

of

that summary to

of

trative processes virtues.

is

to

of

is

all

A complainant

public utility, (2) does not commerce, interfere with interstate and (3) has been made after reason plain, speedy, and efficient remedy may able notice and hearing, and where equity had law the courts such state.” This doctrine

(1) affects rates chargeable

to

to as

to of

a

of

tax errors, where there has been failure remedies, has tended expand the field admin to

administrative finality. istrative This due the prevailing judicial tendency refuse the right attack tax administrators through the courts for mere irregu judicial rem larities. There must actual showing fraud merit a

to

of

an

be

to

is

resort

of

in

judicial review

to

applied

or in

to at

be

a

such order

edy.”

Distinction Between Law and Fact As

a

whether

a

to

is

pronouncing judgment

as

tiates the entire hypothesis.

In

It

to

of

In

is

alleged, the appellate courts will grant that where confiscation trial findings fact, however, the rule prevails that there must novo.” support the decision. evidence sufficient this latter rule which

be de

to

by

a

to

of

general rule, courts attempt distinguish between questions law reviewing exceptions and fact the former and not the latter. The notable this rule are the rate-fixing cases wherein the Supreme Court has stated

vi

given

L.

S.

p.

S.

to 41

A. §

E.

C.

(1936).

56

S. S.

to

to

of

v.

1033

S.

v.

L.

L. Ed.

S.

of

E.

10

°

p.

p.

*

U. S.

F.

F.

*

p.

of

*

p. v.

V,

;

P.

*

Sharp, “Conclusive Decisions,” Administrative Indiana Law Journal (May, pp. 563, 575. 210, 29 Prentis Atlantic Coast Linc Co., 211 U. Ct. 67, 53 Ed. 150; Dickin son, op. cit., Sharp, “Conclusive Administrative Decisions,” loc. cit., 563; Raoul 50 Berger, “Exhaustion Remedies,” Yale Law Journal (April, 1939), Vol. Administrative XLVIII, 981. Blachly and M. Oatman, Federal Regulatory Action and Control (Brookings Institution, Washington, D. C., 1940), pp. 121–122. (May 14, 1934). 748 Stat. 775, 28 “The Johnson Act—A Return State Independence,” Illinois Law Review (1935), 215; “Limitation of. Lower Federal Courts' Jurisdiction Over Public Utility Vol. XXX, Rate Cases,” Yale Law Journal (1934), Vol. XLIV, 119. Blythe Stason, “Judicial Review Tax Errors—Effect Failure Resort Administrative Remedies,” Michigan Law Review (April, 1930), Vol. XXVIII, pp. 637–664. l’alley Borough, 287, Ohio Water Co. Ben Avon 253 U. 40 Ct. 527, 64 38, Ed. 908 (1920); St. Joseph Stock Yards Co. U. S., 298 U. Ct. 720, 80

H.

1930), Vol.

Ch.

JUDICIAL REVIEW

30]

479

set of facts constitutes evidence sufficient to support administrative findings, the court is establishing a precedent which will act as a guide in future cases. so doing it is formulating a given set of facts into a legal norm or measure of the sufficiency of evidence. Under such conditions, the distinc tion between questions of law and questions of fact breaks down. One is

In

forced to agree with John Dickinson that matters “of law grow downward into roots of fact, and matters of fact reach upward, without a break, into matters of

law.”

The distinction between fact and law will be no guide to the inquirer who is desirous of formulating a rule as to when a court will or will not review. This was amply illustrated by a fairly recent federal case involving

the Radio Commission. Time was taken from a station to which it was pre viously allotted and given to another. A federal court granted the original station full-time operation, thus permitting a certain amount of interfer ence.” Here questions of fact were inseparably tied up with considerations

of public interest and convenience. A similar situation was involved where a California court overruled the Industrial Accident Commission

in a hernia

case,” on the grounds that the findings of the Commission were not sup ported by the evidence. This class of case involves extremely technical matters of fact. The experience of the medical staff of the Commission in hernia cases led to conclusions based on facts which seemed to run counter conception of justice.”

One is again tempted to conclude ‘with Dickinson that “when the courts are unwilling to review, they are tempted to explain by the easy device of calling the question one of ‘fact'; and when otherwise disposed, they say that it is a question of ‘law.’”” to the court's

Jurisdictional Fact The decision in a recent United States Supreme Court case” presents the doctrine of “jurisdictional fact,” also referred to as basic or funda mental fact. A federal statute provides that the United States Employees’ Compensation

Commission shall have the authority to make compensation awards to certain persons coming under the statute. However, the relation of employer and employee, among other things, must exist before the Com 11 Dickinson, op cit., p. 55. **General Electric Co. v. Federal Radio Commission, 58 App. D. C. 386, 31 F. (2d) 630 (1929); Federal Radio Commission v. General Electric Co., 281 U. S. 464, 50 S. Ct. 389, 74 L. Ed. 969 (1930). Singer v. California Industrial Accident Commission, 105 Cal. App. 374, 287 Pac. 5 67 (1930). 14 W. H. Pillsbury, “Review of Decisions of Administrative Tribunals—Industrial Acci dent Commission,” California Law Review (March, 1931), Vol. XIX, pp. 282–287.

;"

** Dickinson,

op. cit., p. 55. v. Benson, 285 U.

S. 22, 52 S. Ct. 285, 76 L. Ed. 598 (1932); and see Pro Transportation Co. v. Railroad Commission, 176 Cal. 499, 169 Pac. 59 (1917), and People v. Lang Transportation Company, 217 Cal. 166, 17 Pac. (2d) 721 (1932); “Finality of Administrative Findings of Fact Since Crowell vs. Benson,” Virginia Law Review (January, 1933), Vol. XXIV, p. 478. 1°

ducers

Crowell

LAw

ADMINISTRATIVE

48o

[Ch.

30

mission shall have jurisdiction to make an award. Since the fact of the employer-employee relation is the one which determines the jurisdiction or power of the Commission to act in this type of case, it is referred to as a

jurisdictional fact, which presents

a question

of law.

In this case, the Commission decided that the relation of employer employee existed, and made an award of compensation to the injured employee. The employer appealed to the courts, and the Supreme Court

for to do so would

be to allow the Commission

to

lift itself by

its

held that the Commission had no authority to make an award unless the injured party actually was an employee. Since the fact was a jurisdic tional one, the Commission should not be permitted to decide it for itself, own

boot

of

in

to

of

a

in

of

of

be

it

by

of

in

deciding that

that the question

of

had jurisdiction. The majority the court held the existence the jurisdictional fact must deter law, spite mined evidence presented court the well-reasoned vigorous and dissent Justice Brandeis. The court decided contrary the straps

plicable federal statute. The practical result

to

in

to

be

of

in

Commission and held that the person seeking the award was not fact an employee, and prevented enforcement the award. This decision, how ever, should limited the facts presented the case and the ap

a

to

a

by

be

procedural safeguards, should consid fact made meat inspector relative a

a

formal hearing and protected ered differently from decision

of

by

A

of

by

of is

of

of

in a

de

or

of

jurisdictional fact permit the doctrine novo, law, trial court facts which otherwise would have been conclusively determined the administrative agency. decision the Interstate Commerce Commission, made after complete reexamination,

of

to

also tends

to

speed.

It

advantage

of

its

ity

of

is

a

be

its

food.

In

of

to

juris the former case, the doctrine application. Where dictional fact does not have the strong reasons for again case can tried on new evidence before another tribunal and thus delay the final settlement, the result deprive the administrative author summary destruction

make the administrative

The adequacy

of

Administrative Determinations hearing

to

of

of

sometimes determines course, tied up with the question whether the courts will review. This whether the hearing satisfies due process.” While the courts normally will refuse interfere with immigration orders for deportation, they will is,

the administrative

,

Conclusiveness

of

agency appear ineffectual.”

set aside orders based on any

arbitrary trial.

**

p.

p.

a

17

For discussion see Forrest Revere Black, “The “Jurisdictional Fact' Theory and 349; Cornell Administrative Finality,” Cornell Law Quarterly (April, 1937), Vol. XXII, Law Quarterly (June, 1937), Vol. XXII, 515. A. M. Tollefson, “Administrative Finality,” Michigan Law Review (May, 1931), Vol.

XXIX,

pp. 839, 844–845.

Ch. 30]

JUDICIAL REVIEW

481

Ultra vires acts constitute those administrative findings and orders which are in excess of power. The courts will review and hold null and void those acts of an administrative agency which are in excess of the powers con ferred by the statute creating it.” Probably the safest guide as to whether the courts will review is the na ture of the subject matter. In this respect it is necessary to distinguish between a legal right which is a privilege, and a legal right which is not so clearly a privilege. In the former category, the courts are reluctant to . review. These include cases where the complainant has sought some gra

tuity or benefit from the government, such as grants of public land. It is not easy to get the courts to reverse Post Office Department fraud orders, because the attitude is taken that the government is performing a business service to individuals on favorable terms. The courts also find themselves averse to reviewing cases involving a necessary function of government, such as the collection of revenue, draft cases, civil service, and cases

involv

ing military or naval regulations.” In cases involving the police power, or where individual freedom is restricted in the interest of society as a whole, the situation is different. Here is where the due process clause of the Fourteenth Amendment most fre quently enters to question or nullify the administrative acts of the states.

Our courts interpret due process to include matters of substantive law as well as procedure. It is under the guise of “due process” that the courts express disapproval

of new social and economic concepts by reading their own social and economic philosophy into a section of the Constitution origi nally designed to protect freed Negro slaves. That section of the Four teenth Amendment which states that no state shall “deprive any person of life, liberty, or property, without due process of law” has been interpreted as a bar to arbitrary government in general. Toward the end of the nine teenth century the Supreme Court of the United States began to use this clause to nullify administrative acts and legislation which seemed to them to be contrary to good social, economic, and political policy.” Consequently, 1° United States v. Pa. R. Co., 242 U. S. 208, 37 S. Ct. 95, 61 L. Ed. 251 (1916); United States v. Basic Products Co., 260 Fed. 472 (1919); Ward Baking Co. v. Federal Trade Commission, 264 Fed. 330 (1920); Spreckles Sugar Co. v. Industrial Accident Com mission, 186 Cal. 256, 199 Pac. 8 (1921); Great Western Power Co. v. Industrial Accident Commission, 191 Cal. 724, 218 Pac. 1009 (1923). Gratiot v. United States, 4 How. 80, 11 L. Ed. 884 (1846); Bartlett v. Kane, 16 How. 263, 14 L. Ed. 931 (1853); Cheatham v. United States, 92 U. S. 85, 23 L. Ed. 561 (1876); Er parte Reed, 100 U. S. 13, 25 L. Ed. 538 (1879); Hilton v. Merritt, 110 U. S. 97, 3 S. Ct. 548, 28 L. Ed. 830 (1884); Passavant v. United States, 148 U. S. 214, 13 S. Ct. 572, 37 L. Ed. 426 (1893). Myles Salt Co. v. Iberia Drainage District, 239 U. S. 478, 36 S. Ct. 204, 60 L. Ed. 392 (1916); Kansas City Railway v. Road Improvement District, 256 U. S. 658, 41 S. Ct. 604, 65 L. Ed. 1151 (1921); Bluefield Company v. Public Service Commission, 262 U. S. 679, 43 S. Ct. 675, 67 L. Ed. 1176 (1923); Banton v. Belt Line Railway, 268 U. S. 413, 45 S. Ct. 534, 69 L. Ed. 1020 (1925); Ohio Utilities Company v. Public Utilities Com mission, 267 U. S. 359, 45 S. Ct. 259, 69 L. Ed. 656 (1925). See Missouri Pacific Rail road v. Road District, 266 U. S. 187, 45 S. Ct. 31, 69 L. Ed. 237 (1924); Silberschein v. United States, 266 U. S. 221, 45 S. Ct. 69, 39 L. Ed. 256 (1924); Fort Smith Light and Traction Co. v. Bourland, 267 U. S. 330, 45 S. Ct. 249, 69 L. Ed. (1925).

*

*

LAw

ADMINISTRATIVE

482

[Ch. 30

judicial review under this clause has had an extremely widespread effect on administrative practice and findings.”

ministrative

its

There are several ways whereby an administrative action may get before a court for review. An aggrieved party may bring an action for damages. Sometimes, as in the case of the Interstate Commerce Commission, the ad agency must resort to the courts to enforce

The

orders.

so

to

bring administrative acts before the called extraordinary writs serve regular courts. These include certiorari, prohibition, mandamus, injunction, quo warranto, and habeas corpus. Then there are express statutory provi

allowing appeal from the Cali fornia Railroad Commission direct the state supreme court. Another opportunity for judicial review afforded where administrative agency permitted expense executing statute sue for the order after non-observance. The question the validity the order may raised an

be

of

of

of

to

by

a

such

suit.”

As

in its is

is

an

to

sions for appeal; for instance, the provision

judicial review

it

given case.

Dean Landis would administrative finality upon such

a

or in

court will review

of

accuracy how far

a

to

to of

indicated previously, under our system law the courts have within their power review administrative acts the extent that they deem desirable. There are no ironclad rules which will enable one to forecast with

to

in of

he

as

determine the basis competence and expertness. Thus, factors would leave questions involving strictly legal interpretation courts, the whereas matters tech nologies should rest with administrative authorities who are experts those

of

of

in

of

with

Difficulties have arisen the past because the courts have been digress from their true lines endeavor and cloak themselves expertness “in matters aura industrial health, utility engi

an to

fields. prone

of

to

In

to

of

to

of

”

neering, railroad management, even bread making.” The courts, accord ing Landis, should retreat from fields expertness which they have decide, no claim fitness and leave final determination the problems a

of

of

to

of

to

to

or

be

infringement

of

law, the principle the supremacy because the ordinary courts can always resorted when necessary arbitrary improper, illegal, correct administrative acts.” At the present is

exists, there

no

is

as

a

of

is

to

to

administrators.” actual practice, however, considerable permitted administrative officers and tribunals reach final deci fact, the range sions on matters coming before them. As matter probably expanding. As long administrative finality this situation

therein leeway

*

f.

p.

p.

**

:

23

p.

in

p.

of

in

a

22

of

The due process clause the Fifth Amendment has had similar application agencies, although much more limited practice. federal legislation and administrative See A. H. Feller, “Administrative Procedure and the Public Interest—The Results Due 308; Henry Process.” Washington University Law Quarterly (April, 1940), Vol. XXV, Wall Bikle, “Safeguarding Private Interest Administrative Procedure,” Washington Uni versity Laro Quarterly (April, 1940), Vol. XXV, 321. Dickinson, op. cit., Ch. III, pp. 39–75. Landis, James M. The Administrative Process (Yale University Press, New Haven, 1938), 155. Dickinson, op. cit., pp. 37–38, 71. Ibid., 142

f

JUDICIAL REVIEW

Ch. 30]

483

time there may be a feeling on the part of those who desire more social justice that reactionary judges have used review to thwart those adminis trative agencies designed to act as instruments of socialization. On the other hand, big business and corporation lawyers may place an abiding trust in the safety of their causes before the courts as opposed to administrative commissions.” The fact remains that the best solution will be an arrange whereby ment both private interests and social justice will be equally well served. It appears now that events are working toward that end. It would seem that judges educated in the principles of the common law may not be altogether impervious

to ideas of social change.”

Criminal Jurisdiction and Administrative

Adjudication

It

is the general rule that administrative agencies cannot exercise crimi nal jurisdiction. Ordinarily, due process of law involves the right of trial before a regularly constituted court of law before one may be deprived of liberty or property; and it has been decided that only courts of law and legislative bodies have the power to punish summarily for contempt.” Nevertheless, the immigration deportation procedure of the national government, although essentially criminal in nature, is carried on for the most part without the safeguards of judicial process. The administrative

officer acts in an administrative and judicial capacity. Sentence of depor tation is executed entirely by administrative process unless the defendant appeals to the courts.”

in which the question of contempt of an Most of the cases have arisen in instances where the defendant has refused to testify; and there have been some deci sions upholding the administrative exercise of the contempt power under these circumstances. However, there seems to be a general assumption that There are two

administrative

classes

of

cases

body may arise.

the contempt power is not inherent in administrative bodies because of our doctrine of separation of powers, decisions involving contempt being an inherent right of the judiciary. The second class of cases arises from investing boards with the power to punish contempt in aid of their admin istrative functions. An example would be giving a milk control board the power to fine and

(or) imprison

a dealer who refused to abide by an

27 Kenneth F. Burgess, “Recent Efforts to Immunize Commission Orders Against Judi cial Review,” Iowa Law Review (December, 1930), Vol. XVI, pp. 53–61 ; Maurice H. Merrill, “Judicial Review of Commission Order: Reply,” ibid., pp. 62–74. See Thomas Reed Powell's comment on the change of the intellectual complexion of the Supreme Court during 1930–1931. “State Utilities and the Supreme Court, 1922–1930," Michigan Law Review (May, 1931), Vol. XXIX, pp. 811, 838. ** Langenberg v. Decker, 131 Ind. 471, 31 N. E. 190, 16 L. R. A. 108 (1892); In re Sims, 54 Kan. 1, 37 Pac. 135, 21 L. R. A. 110 (1894); People car rol. MacDonald v. Deubischer, 34 App. Div. 577, 54 N. Y. Supp. 869 (1898); State er rel. Haughcy v. Ryan, 182 Mo. 349, 81 S. W. 433 (1904). W. C. Van Vleck, “Administrative Justice in the Enforcement of Quasi-Criminal Law,” George Washington Law Revicv (November, 1932), Vol. I, p. 18 f.

*

*

LAW

ADMINISTRATIVE

484

[Ch. 30

order issued against him after notice and hearing. Such statutes have usually been declared invalid, although cases are cited below upholding con stitutional provisions giving such power to the California Railroad Com exercise of the contempt power seems never to have arisen under federal statutes; but it may be inferred from the dicta in the Brimson case that it would not be sanctioned by the

The question of

mission.

the administrative

Supreme Court.”

in

a

of

by

is

to

as

its

The California Railroad Commission has the power to punish for con tempt anyone who fails to comply with orders the same manner and contempt punished the same extent courts record. After a

of

a

as a

as

proper hearing, the Commission found fact that the defendant was operating public con common carrier without having certificate

of

This administrative tribunal

of

of

of

to

of

on

jail

to

in

be

fine $500 and five days' imprisonment each contempt count, which there were two. After appealing Supreme the State Court and the United States District Court, which courts sustained the decision the Commission, the defend imprisonment.” ant paid the fines and served the sentence the defendant the county

punished

by

by a

of

of to

to

venience and necessity, and ordered defendant cease such operation. comply with the order, the defendant was adjudged guilty For refusing contempt the Railroad Commission. The Commission ordered that

a

a

on

so

in

of

by

its

to

it

its

is

legislative neither court law nor body, yet powers punish for contempt. The Commission exercised jurisdiction doing was affirmed exercised criminal and decision law, although the higher federal courts have not spoken courts the subject.

Unsigned,

displaced

or

will not

be

of

It

or

a

is

of of

1848 and 1870

discarded

“Power Administrative Agencies Commit for Contempt,” Columbia Vol. XXXV, pp. 578–591. Cases upholding contempt power for refusal contempt power for refusal testify, 585. Cases holding invalid use

to

to

of

91

survived the Revolutions Law Review,

gradual administrative courts the result go which back two three centuries. seems that the system administrative justice which

of

The French system development, the roots quite certain, therefore,

of

French Droit Administratif

to

In

5,

v.

15

C.

-

-

--

re

In

15

.

C.

R.

C.

37

of

v.

S.

14

p.

of

C.

of

R. v.

C.

of

H.

S.

v. is

in

of

p.

**

L. p.

p.

testify, notes, notes, 585. Citations holding that contempt power not inherent administrative bodies, Brimson, 154 447, note 37, 584. Interstate Commerce Commission U. Ct. 1125, 38 Ed. 1047 (1893). California, Statutes 1915, Ch. 91, 115, secs. Public Utilities Act the State 54, 81. Rice Transportation Company John Betts Transportation Company, 36 California Railroad Commission 840 (1931). Dec. No. 26334, Case No. 2994 (September 11, 1933); Rc John Betts for Writ Habeas Corpus, Crim. No. 3631, California Supreme Equity No. 2-6C, Court (January 12, 1933); John H. Betts Railroad Commission, District Court the United States, Central Division, California (September 1933). See Hodge Ball, 407 (1932); Re Ball on Habcas Corpus, Pac. (2d) 862 (1932); Re Ball on Habeas Corpus, 127 Cal. App. 433, Pac. (2d) 862 (1932); R. C. Victor, 220 Cal. 729, 32 Pac. (2d) Dec. No. 27099, Case No. 2939 (May 28, 1934); 608 (1934).

Ch.

JUDICIAL REVIEW

30]

485

and will probably survive the upheaval of the 1940's. The following descrip tion attempts to present in broad outline the situation as it existed up to

June, 1940.*

The Dual System of Courts-It is necessary to realize that France had two mutually independent systems of courts, one the ordinary judiciary

Any action at law had to come under the jurisdiction of one or the other. An independent Tribunal of Conflicts conflicting jurisdiction.” settled matters For example, suppose gendarme injured citizen. personal wrong, duty, were not related the officer was liable and trial was the ordinary courts; were fault it

if

by

in

of as

as

Dicey,

in

the administra The Tribunal Conflicts determined jurisdiction this implication all other cases. French writers have resented the which has probably represented the Anglo-American view, that

tive courts.

well

a to

a

the service, the government was liable and trial was

of

of

in

a

it

If

a

of

all

and the other the administrative.*

a

by

to

in an

French administrative courts were dominated the government and that represented give the droit administratif effort the government officer trying him privileged position his own court. Berthélemy declared to

”

of

is

in

judicial

classified

courts

in

as

be

administrative governmental dominance

to

of

all

land are not

of

Eng law, while the administrative determinations general agreement that the nature.” There Republic courts the Third were sufficiently free from

system at

a

of

being

in

to

that those who write this effect are “badly informed and extremely unjust.” English legal scholars are beginning change their ideas this respect. Lord Hewart points out that the droit administratif has the virtue

the English sense.

of

of

of

a

of

the administrative

issue was decided

by

abeyance until such time

as

held

in

a

a

of

Then there was

a

proceeding which alleged that the administrative officer was exceeding his legal powers, and asked for judicial court hearing before an annulment the resulting act. When encountered collateral administrative issue, said judicial proceeding was the armed forces.

type

a

a

of in

of

of

The type cases which came before administrative courts included tort liability and annulment administrative contracts and quasi-contracts. They also had variety considerable jurisdiction controversies. arising out the rank, salary, and pensions civil servants and members

2"

is

F.

Maurice Hauriou, Précis

de

Droit Administratif

et

Paris,

de

*

&

J.

as

as

A

33

source on this subject Stefan Riesenfeld, “The French System Model for American Law Boston University Law Review (January, 1938), Vol. XVIII, pp. 48–82; ibid. (April, 1938), pp. 400–432; ibid. (Novem ber, 1938), pp. 715–748. Port, Administrative Law (Longmans, Green Co., London, 1929), pp. 296– 299.

The best American

of Administrative Justice:

Droit Public (Recueil Sirey,

of

I,

in

º

is

A

37

p. ...

op

in

p.

ed.,

3d

36

1927), 948. France,” Journal Comparative Legislation H. Berthélemy, “The Conseil D'Etat Series, Vol. XII, Part pp. 23, 36. and International Law (February, 1930), Lord Hewart, The New Despotism (Cosmopolitan Book Corp., New York, 1929), Port, cit., 39. keen English commentary on the droit administratif contained pp. 296–326. 11th

LAW

ADMINISTRATIVE

486

court;

an administrative

guard public property

[Ch. 30

jurisdiction to safe

these latter courts also having

by punishment

in

to

at

its

for encroachment thereon.” major concepts having law, The droit administratif was case most of been developed the last half-century. We were accustomed look of

it

of

a

a

an

a

of

as

the Third Republic nation with rather loosely written con stitution, highly centralized, and with absence check on legislative State, the supreme admin and executive action. However, the Council juristic court, actually developed concepts which enabled istrative had

France

nullify acts

by

it

While

on

be

in

of

It

in

a

it

the government. could accomplish

of

to

could not declare statutes uncon nullifying an very similar purpose administrative ordinance which was legislative nature. did this under principle power the that the administrative act was excess and ipso questioned facto void. All administrative actions could the grounds stitutional,

major action before administrative

of

if

to

judicial review

power was once the

courts, but some more recent develop

jurisdiction.

abuse

of

ments vastly expanded the administrative action which questioned the misapplication acts subject

excess

of

nullify administrative acts

The first was an power, making discretionary

discretion

is

to

This power

in

of

be

nullified, that they were ultra vires; even the President's decrees might exception purely political dealings with the his with Parliament.

alleged.

Port gives

of

of

the following example: a

to

to

or

as

of

a

. . .

The Council State quashed decision the War Minister grain dealer from competing for contracts under the which excluded War Office because the grain dealer held political and religious opin ions which the Minister disapproved. Held, that the motives which they had determined the grain dealer's exclusion were improper, no relation either the contract the dealer's professional capacity.99

in

by

its or

in

of

it

A

so

or

its

of

the state for loss

it in

damage sustained individuals consequence agents and torts those the remedies which injured for obtaining reparations. liability for gave the individual property damage existed for some time, although absolute, was not dif

of

responsibility

be

to

it

of

fundamentally The feature droit administratif which distinguished acknowledging the from English and American law was found

of

In p.

*

of

System

Administrative Justice:

A

38 Riesenfeld, “The French loc. cit., pp. 406-432. Port, op. cit., 316.

of

a

in

public service. 1910 damages were allowed against the state when policeman, pursuing criminal, knocked down and broke the leg Model

a a a

it

an

on

fering with each service. Liability contracts has been long admitted. However, very recently was but that individual could recover money damages from the state for injuries resulting from faulty operation

for America?”

JUDICIAL REVIEW

Ch. 30]

bystander.”

.

487

In

the United States the only remedy an innocent bystander would have had in this instance would be a suit against the officer, with slight chance of recovery, even if a judgment were secured. This principle

of liability for personal damages has since been expanded by the Council of State, thus nullifying to a large extent the formerly universal principle which made the sovereign immune from suit.

During the closing days of the Third Republic, there was some indication that the judicial courts were gaining some ascendancy in those cases where

officers trespassed or impinged upon such cardinal civil lib erties as freedom of the press. Illustrative of this new legal concept was the celebrated L'action française case. In this instance, the Paris Prefect administrative

rightist newspaper, be suppressed during the political turmoil of February, 1934. In a decision, which admitted that the Prefect acted in good faith and with certain just provocation, it was nevertheless held that the courts had jurisdiction be

of Police ordered that L'action française,

a militant

cause the Prefect acted illegally by tending to violate a civil liberty. Thus the doctrine of administrative trespass, developed largely since 1920, seemed to say that the ordinary courts would be given jurisdiction over the admin

of

to

all

istrative courts in certain grave cases involving the violation of a civil liberty. The legal devices which facilitated the use of this doctrine were not at dissimilar the AAglo-American principles ultra vires and

of

in

administrative the Anglo-American scruples relative long the law are well safeguarded so

lie

as

a

a

as

of

of

of

of

to

of

the supremacy the law courts retain their present power review administrative acts. Indeed, many those friends social justice who have regarded the growth adapting slowly changing administrative agencies means to

maintaining

the development

of

fear

All

in

is

really very little There justice the United States.

Adjudication

Administrative to

The Future

of

procedural due process.”

social concepts

in

development

of

in

to

to

a

of

in

of

to a

new society will say that the real causes for anxiety the They tendency other direction. see the some courts overthrow positive menace administrative technical findings fact the orderly

law

the law.

in

they should have bulked large

is

it

in

of

a

in a

very definite place Judicial remedies have constitutional régime, good government. At most they are but they are not automatic insurers purely negative and belated nature, and easily understandable that the negative political

philosophy

in

p.

of

of

I,

of

*

Ibid., pp. 321–322. See also Trotaba, “Liability Damages Under French Administra Law,” Journal Comparative Legislation and International Law (February, 1930), Series, Vol. XII, Part pp. 44–57. Armin Uhler, “The Doctrine Administrative Trespass French Law: An Analogue Due Process,” Michigan Law Review (December, 1938), Vol. XXXVII, 209. **

3d

tive

under

ADMINISTRATIVE LAW

488

[Ch.

30

lying the eighteenth and early nineteenth century inception of our institu tions. Today we are beginning to realize that good government is not the product of laws alone. Judicial office, especially in the states, cannot rise much higher than the political system of nominations and elections from which it springs. Furthermore, the field of litigation today is just as highly technical as it is juridical. It is believed that the traditional type of judge

brings no special fitness to the solution of the technical questions of fact which arise under an industrial society.”

Administrative Are we developing Interstate

Commerce

John

sion,

a system

Courts in America

of administrative

Commission

Referring to the

courts?

and the State Public Service

Commis

Dickinson states that,

. . . More and more of these bodies are becoming assimilated to courts, employing truly judicial processes and hedged about with proper judicial safeguards. The same development may be expected

in

of

to

of

all

to take place in other administrative tribunals if they succeed in main taining themselves and winning a firm place in our governmental system. The result will be the formation of a great system of courts of specialized jurisdiction, each with its own rules and its own prac subject tice, but truly judicial in character and finethods, and general law matters the ultimate control the traditional courts.48

History

is

in

of

a

to

has successively demonstrated that administrative discretion known, crystallized body ascertainable, tends become into and con sistently applied law.” The traditional example found the develop as

of

in to

or

or

a

give other relief

to

so a

of

in

of

to to as

the letter

of

those cases where the law would fail render justice. king volume, the delegated this kind increased his chancellor. As time went on, the chancellor was unable handle all such matters, number assistants were added

the rigorous application Gradually, appeals this power personally

of

of

set aside the judgment

of

the king

to

of

in it

In

of

Anglo-American jurisprudence known Equity. that body purely administrative means relieving miscar the beginning was justice ordinary riage courts, the where the law remedy was inadequate. Litigants adversely affected would appeal the conscience

ment

in

of

as

In

time they acquired judicial status and their chamber became known the Chancery Bench. Chancery courts are today true courts which administer throughout the English-speaking world the equity, which had their origin rules administrative fiat.

for that specific purpose.

1928),

p.

65.

&

** **

A. p.

of

**

Bureaucracy,” John Dickinson, “Administrative Law and the Fear American Bar Association Journal (November, 1928), Vol. XIV, pp. 597, 599–601. Ibid, 602. Robson, Justice and Administrative Law (Macmillan Co., Ltd., London, W.

JUDICIAL REVIEW

Ch. 30]

A

489

practitioner

at the federal bar recently stated that it is “clear that jurisdiction are not sufficiently familiar with the general the courts of intricacies of government law and regulation and the antecedent history thereof to make their reviews entirely satisfactory to both the government

“

and the aggrieved plaintiff or defendant.” His proposed solution would be a specialized federal court sitting alternately as business demanded in each of the nine circuits of the existing Circuit Courts of Appeal and at

or by as

party

In

peals from federal commissions,

of

so

or

common-law

jurisdictions

is

in

administrative courts fancy. mere flight

far

of

from being

of

system a

a

of

of

an

all

of

determinations

of

administrative

is a

has interest. far are concerned, under the provisions this bill, the jurisdiction this court would supersede that United States appellate district and circuit courts. W. A. Robson also recommends administrative court for Great Britain.” The possibility the development

in

which the United States

a

receive, decide, and expedite ap administrative authorities, and tribunals,

for Administration

an

Appeals

to

Court

of

of

be

of

is

”

of

de

no

be

to

be

of

all

Washington. Jurisdiction would be comparable with that of the French Council of State and would include at least that authority which fed eral courts now have over administrative acts. Review would Supreme certiorari from the Court direct the administrative officer agency, and there would trial novo.” Another proposal like quality embodied within the “Administrative Court Bill” introduced Walter-Logan Bill, by Senator Logan, cosponsor the discussed above. Under the provisions this bill, there would created United States

SELECTED READINGs BOOKS AND MONOGRAPHS

F.

E.

8,

D.

in

Attorney General's Committee. Administrative Procedure Government Agencies. C., 1941), 77th Cong., 1st sess., (Government Printing Office, Washington, pp. 75–95. Senate Doc. No. Blachly, F., and Oatman, M. Federal Regulatory Action and Control. (Brook

of

&

to

S.

S.

of

in

2d

D.

of

on

D.

ings Institution, Washington, C., 1940), pp. 56–82. Investigation and Research. The Report Practices and Procedures C., 1944), Government Control. (Government Printing Office, Washington, sess., House Doc. No. 678, 262 pp. 78th Cong., Chamberlain, Joseph P., and others. The Judicial Function Federal Administrative Agencies. (The Commonwealth Fund, New York, 1942), 258 pp. Agricul Dept Graduate School. Lectures on Administrative Regulation. (U. ture, Washington, D. C., 1945), 76 pp. Hart, James. An Introduction Co., New Administrative Law. (F. Crofts York, 1940), pp. 153–175, 258–330.

Board

**

O. Roscoe McGuire, “Federal Administrative Law,” Virginia Law Review (April, Vol. XIII, 461. Ibid., pp. 475–476. See “A Bill Establish United States Court Administrative Expedite Justice and the Hearing and Determination Controversies with the United to

of

of

a

to

*

p.

1927),

p.

***

States, etc.,” Senate 5154, 70th Cong., 2d sess.; Senate 1835, 73d Cong., Senate 916, 76th Cong., 1st sess. (introduced January 24, 1939). Robson, op. cit., 309.

1st sess.

ADMINISTRATIVE

490 Landis, James

Uhler, Armin. 207 pp.

LAW

[Ch.

30

M.

The Administrative Process. (New Haven, Conn., 1938), pp. 6–46. (Callaghan & Co., Chicago, 1942), Review of Administrative Acts.

PERIODICALS Barnett, Vincent M., Jr. “Modern Constitutional Development: A Challenge to Ad ministration.” Public Administration Review (Spring, 1944), Vol. IV, pp. 159–164. “Legislative Considerations in Organizing Regulatory Agencies.” Stene, Edwin O. Annals of the American Academy of Political and Social Science (May, 1942),

Vol.

221, pp. 49–55.

*

Schwenk, Edmund H. “The Administrative Crime, Its Creation and Punishment by Michigan Law Review (August, 1943), Vol. 42, No. 1, Administrative Agencies.” pp. 51-86.

CHAPTER

31

THE RULE-MAKING PROCESS The Nature of the Rule-Making Power.—It is

-

of good admin

a tenet

istration that a legislative body should set forth the fundamental bases of legislation in broad, general principles, leaving it to the administrative branch to fill in the interstices and details as circumstances require. There are several reasons for this. In the first place, the legislature is not made up of specialists and technicians, who are sufficiently familiar with the

its

all of

is

of

if

In

do so. impossible

training and members were equipped the third place, the field administration during legislative process foresee the the

to

it

experience

dynamic;

is to

requiring attention, even

by

all

practice in specialized fields to deal adequately with the measures neces sary to carry a policy into effect. In the second place, it would be physi cally impossible for the legislature to give sufficient time to the matters

to

a

just where the legislature should stop

a

details into statute. James Hart's statement

Perhaps the most satisfactory the effect that,

writing generaliza in

to

say

sublegislation.

to

is

fullness tion

difficult

or

is

It

regulations, sometimes referred

as

to

administrative needs which are likely arise when statute becomes opera tive. These considerations indicate the need for administrative rules and

a

w

an

1

as

or

of

to

of

to

Modern legislation should seek steer clear course between the Scylla attempting anticipate every possible situation and the Charybdis expressing no policy more definite than some such empty “public interest, convenience, necessity.” formula rule

p.

*

on

It

or in

on

a

is

of

James Hart, “The Exercise Administrative Management, Report Washington, D. C., 1937), 316.

rule

the other

nature. regulation

of

a

administrative

their production might require order certain

Rule Making Power,” President's Committee on Printing Office, with Special Studies (Government in

whereas,

an

crude petroleum;

to

oil

a

specific and individual situation. Thus might require companies make daily reports to

applies

the legislature. The administrative order, procedure which essentially judicial a

is

the statute passed hand, the result

of by

It

of

is

in

or

a

which

be

in

regulation differs from administrative essentially legislative order should made clear. The former nature expands upon the terms and has general and continuing applicability.

The manner

491

ADMINISTRATIVE

492

LAW

[Ch. 31

petroleum company to refrain from putting down additional wells in a

par

ticular location.”

of

in

to

by

A

of

a

his

Distinctions are frequently made between different forms of administra tive legislation. Thus there are those which have general applicability, may which affect the citizen at large, such as income tax regulations. Others might affect only the employees of the government, such as the rule of a civil service commission establishing the procedure for service rating re ports. Some types of rules go into effect only when certain circumstances prevail, and are often referred to as contingent. The President of the United States has a wide rule-making power, part of which is inherent in executive capacity and therefore does not require basis Con gressional consent. large portion power this emanates from statutes passed Congress giving the Chief Executive considerable latitude carrying out the determine the administrative arrangements desirable legislative will.”

of be

to

legislation

of

of

of

negation

might seem the surface Anglo-Saxon principle the fundamental the supremacy powers. Lawmaking the American three-way separation administrative

of

a

The idea

of on

Procedure and Safeguards

existing

rules and regulations

the United States, examples Washington's administration. The change which not new

in

of

making

is of

of

the law and by the executive branch has always been much more typical the conti nental European countries than the Anglo-Saxon system. However, the

in

of

agencies exercise cer However, such authority must

seems almost indispensable that administrative

in

act, couched to

to

branch authority

in to

tive branch gives the administrative general terms, becomes necessary

Anglo-Saxon constitutional limi other words, since the legisla

In

reconciled with the traditional ideas tations establishing certain safeguards.

of

a

legislative nature.

be

tain limited powers

of

It

to

of

is

as

as

far back place noticeable, particularly has taken since then the greater volume sublegislation, due mainly the social and regulatory needs recent years.

in

an

be

it

establish certain checks assure arbitrary power that this will not exercised manner. The forms which these safeguards may take are discussed the following paragraphs.

Organization

E.

Oatman, C., 1940),

of

D.

F.

F.

*

Blachly and M. Institution, Washington, *Hart, “The Exercise

any combined volume where the

Federal 67.

p.

regulations were not published

in

no

of

is

and Coordination.—A recent inventory reports that 115 practically federal agencies possess the rule-making power. There activity, resulting central coordination this and until 1935 the rules and

Regulatory

inquir

Action and Control (Brookings

Rule-Making Power,” loc, cit., pp. 319–321.

THE RULE-MAKING PROCESS

Ch. 31]

of finding them. Under such conditions the assumption that the citizen is presumed to know the law becomes mere fiction and pretence. Executive Order No. 7298, issued February 18, 1936, requires that future executive orders cleared the manner discussed quantity and nature, below. The executive orders constitute, both con portion output legislation. siderable the total administrative This be assured

a

is

of

of

by

in

be

all

ing citizen could

493

to

to

in is

by

originate

the President

the administrative

be

be

to

it

of

signed

to a

an

to

in

due the fact that many executive orders have their source the line departments. Congress has often entrusted activity department which has delegated rule-making power, exercised under the direc many tion the President. The result that rules and regulations departments them

selves. by

be

in

adopted by one bureau, would result

some adverse effect upon another; for instance, Navajo lands, under the jurisdiction the Office

of

Indian Affairs, might" Lake Meade above Boulder Dam, under Reclamation and the National Park of

of

grazing

excessive

of

the more rapid silting

the jurisdiction

of

to

lead

of

of

of

if

of

as

as

occasions where certain policies,

on in be

an

of

of

in

of

ferent agencies

of

A

coordination arises virtue the fact that several dif the government may have interest and exercis ing some particular powers regarding the the same function. For stance, soil conservation concerns several bureaus the Department Agriculture well the Department the Interior. There might problem

the Bureau

Under Executive Order No.

7298,

referred

to

-

Service. above, all future execu

The

President's

the Bureau on

in

to

the first instance start their ordinary rounds.”

them

Committee

of

by

of

be

of

tive orders must clear through the Bureau the Budget, the Attorney General, and the National Archives. They must, course, reviewed signed ultimately President, and the but the White House will refer the Budget, where they will

Administrative Management

recom

the plan was suggested

avoid delay

by

coordination,

to

to

of

in

of

be

applied mended that some sort similar coordinating procedure regulations affecting the public which are not included executive orders. Recognizing that the preponderant number these rules would not require accomplishing

of by

in

be

be

to

of

It

at

their brought the start. was recommended that this about giving the Bureau determine, the Budget the power the name the President, those proposed regulations which would cleared through separation

to

whose duties would

be

forestall

of

a

It

other governmental agencies before finally being promulgated. was fur suggested group ther that the Bureau maintain small liaison officers possible conflict arising from future in

by

ft.

p.

of

D.

is

p.

“Ibid., Catheryn Seckler 349. Procedure described Fritz Morstein Marx Planning and Management (American University, Hudson, Budgeting: An Instrument Washington, C., 1945), mimeo. Unit IV, 186

ADMINISTRATIVE

A94

LAW

[Ch.

31

rules and regulations. They would be “trouble-shooters” who would main tain constant contact with those departments whose policies might bring about conflict, and they would iron out anticipated conflicts before they came to an issue in the form of proposed rules and regulations.” the regularization of the rule-making process at the departmental level. Departmental rules should go to the departmental solicitor to be checked for legality, and should flow through

The Committee also

advocated

the bureaus whose activities might be affected. There should be experts to check on such matters as draftsmanship, systematic numbering, uniform nomenclature, conformity

with Federal Register requirements, and other department Each would have a central clearance officer to see

procedures.

that all these matters were attended to. The President should be empow ered to issue regulations designed to bring about uniformity among the de partments as to their rule-making procedure."

Standards

of Delegation.—When

Congress

delegates

discretionary

power of a legislative nature to an administrative authority or agency, it must at least lay down certain standards to control the exercise of such discretion or violate the separation of powers clause of the federal Consti tution. This general rule is one of those aspirations of the law to which lip service is frequently rendered but which is not easy to apply in specific situations." In practice it is difficult to set forth standards which are very concrete, with the result that they often take the form of a broad declara tion of policy, such as the standard of “public interest, convenience, or necessity.” The requirements of the courts in this respect have been marized by Hart when he says that,

sum

. . . the prerequisites of a valid delegation seem to be that Congress must itself have the power to regulate; must define the subject to be regulated; must declare a policy with respect to that subject and set

or criterion for executive action; must require a find ing, at least in contingent legislation; and must delegate rule-making powers to public officials and not to private persons.” up a standard

Two methods and theories of delegating legislative authority to an

° *

legislative authority, fixes

by

legislature, in delegating some of

its

administrative official or agency have been sanctioned by the United States Supreme Court. For convenience and distinction, these have been desig nated “primary standard” and “contingent effect.” Under the former, the statute

Hart, loc. cit., pp. 351–352.

v.

v.

L.

79

L. S.

79 55

L.

S.

55

S.

S.

S.

U.

v.

S.

*

of

p.

of

in

of

7

E.

p.

Ibid., 317. Dimock, “The Rôle Discretion,” Gaus, White, and Dimock, The Marshall Chicago Press, Chicago, 1936), pp. 53–54. Frontiers of Public Administration (University Hart, “The Exercise 343, citing Panama the Rule-Making Power,” loc. cit., Refining Co. Ryan, 293 U. 388, Ct. 241, Ed. 446 (1935); Schechter S., 295 U. 495, Ct. 837, Ed. 1570 (1935); Carter Carter Coal Co., 238, 56 298 U. Ct. 855, 80 Ed. 1160 (1936).

Ch.31]

THE RULE-MAKING PROCESS

.

495

or standards within which an action taken by the official or commission must be confined. An illustration of the “primary standard” theory is found in the celebrated case of A. L. A. Schechter Poultry Cor poratian v. United States.” In that instance, under section 3 of the National Industrial Recovery Act of 1933,” the President was authorized to approve “codes of fair competition.” As a condition of his approval, he could “im pose such conditions (including the requirements for the making of reports and keeping of accounts) for the protection of consumers, competitors, em ployees, . . .” Furthermore, where such a code had not been approved, the boundaries

the President could prescribe one, either on his own motion or on a com plaint. Violation of the code was made a misdemeanor. The defendants, after being indicted for violation of the “Live Poultry Code,” contended that the Code was unconstitutional, in that no standard was set by Congress to control the power of code-making given the President. Among other things, the Supreme Court held that “fair competition” was not a sufficient

standard by which to control the President. Congress cannot delegate legis lative power to the President to exercise an unfettered discretion to make whatever laws he thinks may be needed or advisable for the rehabilitation and expansion of trade or industry.”

an

by

a

is,

Under the latter theory of “contingent effect,” the authority to determine the state of facts upon which the operation of an existing statute is to be invoked is delegated to the administrative official or commission; that Congress may define the circumstances under which contingent statute

May 28,

1934

Joint Resolution

Congress

on v.

to

United States

of

a

provided:

the case

of

the Neutrality Act.

Erport Corporation,”

In

of

under the provisions

Curtiss-Wright

to

to

he

as

so

as of

of

of

be

brought into operation Examples administrative authority. adjust delegation are the empowering this type the President equalize and protect domestic tariff rates conditions change, manufacturers, and the power which enjoyed declare an embargo shall

engaged

of

to

in

if

of

the President finds that the prohibition the sale arms and munitions of war the United States those countries now

That

to

in

it

to

be he

as

of

as

he

as

of

those countries, and

if

of

the

peace between

Chaco

may

contribute the after con sultation with the governments other American Republics and with may their coöperation, well that such other governments deem necessary, makes proclamation that effect, shall un in

armed conflict

reestablishment

S.

L.

of

1;

p.

L.

B.

S.

55

§

81

in

S.

A

57

S. p.

**

79

L.

**

v.

A.

S.

C.

S.

55

15

S.

°

495, 295 U. Ct. 837, 79 Ed. 1570 (1935). 1948 Stat. 195, U. 703 (June 16, 1933). Ryan, 293 U. 388, See also Panama Refining Co. Ct. 241, Ed. 446 (1935); Reuben Oppenheimer, “The Supreme Court and Administrative Law,” Columbia XXXVII, (January, 1937), Sidney Jacoby, “Delegation Law Review Vol. Powers Study Comparative Law,” Columbia Law Review (June, 1936), and Judicial Review: Vol. XXXVI, 871. 304, 299 U. Ct. 216, Ed. 255 (1936).

LAW

ADMINISTRATIVE

496

[Ch.

31

under such limitations and exceptions as the prescribes, any President arms or munitions of war in any place in the United States to the countries now engaged in that armed con flict, or to any person, company, or association acting in the interest of either country, until otherwise ordered by the President or by Congress.

lawful

to sell, except

During trial for the violation of the Resolution, the defendant contended that the delegation of power was unconstitutional. In reply to this argu ment, the court stated that:

In view of

and of the power peculiar Congressional legislation which is to regard, to the President in this pe made effective in the international field must often accord to him the delicacy

of foreign relations

a degree of discretion and freedom which would not be admissible were domestic affairs alone involved.”

Prenatal Consultation.—A very important safeguard is to provide for various means of consultation between the promulgating authorities before administrative rules become law. Hart lists five modes or vehicles by which to bring about cooperation of this kind. The first is through the use of advisory committees; very widely used in regulating the grazing lands of the

West.” Secondly, some agencies serve notice upon the parties affected

and hold a formal hearing before issuing rules and regulations. While hearings of a judicial nature are not specifically required in the making of rules and regulations, the device of notice and hearing is often used for the purpose of securing information and promoting public acceptance in advance.” Thus it is the practice of industrial accident commissions to notify the members of the industries affected, labor leaders, and welfare groups relative to proposed rules having to do with industrial working con ditions, safety, and hygiene. A third means of prenatal consultation is the publication of draft regu lations. For example, one such publication issued by a State Industrial

all

Accident Commission, and labeled “Proposed Petroleum Safety Orders for Drilling and Production,” ran some 75 mimeographed pages.” Public

turers' distributors.

At

these

to

by

hearings were held over the state upon these draft regulations. News paper notices were supplemented professional announcements mailed organizations, unions, manufacturers, and industrial labor and manufac hearings each provision was read, and the As proposals for amend

op. cit.,

L.

Ed.

ft.

85.

Industrial Accident Commission the State Orders for Drilling and Production (1940, mimeo.).

California, Proposed Petroleum Safety *

and Oatman,

of

* **

Blachly

79

of

National -Administrative Authorities (Columbia

198

power, see annotation

in

of

Functions

University Press, New York, 1927),

p.

Legislative

legislative

p.

Comer,

delegation

of

J.

P.

On permissible limits

14

47."

of

pertinent discussions stenographically transcribed.

THE RULE-MAKING PROCESS

Ch. 31]

497

ment were offered, they were discussed and voted upon; they then became the amended tentative proposals. When discussion indicated the need for further study, the Commission's representative presiding appointed a com mittee to investigate and report. The draft regulations thus amended were presented to the Industrial Accident Commission, along with the recom mendations of its executive officer. -

it;

. The fourth mode of consultation consists of informal conferences with the groups affected. While there is some danger that this practice fnight result in undue intimacy between officials and those who have axes to

if

in

properly fact, seems to be no way of preventing and utilized, such procedure positively desirable.” consultation, “Progression from Hart labeled his fifth, and final mode of

is

grind, there

Mandatory Standards.” For instance, regulatory agency particular doing feels that the standard business field should

be

a

in

of

a

if

to

Voluntary

it

it

Congress

in

made binding

by

in

a

to

be

be

be

to

in

certain respects, could develop and publicize what considered standards, urge voluntary adoption. desirable and their The expecta tion would that ultimately there would demand make the permis mandatory. up sive standards Thus standards set for rosin 1915 were raised

1923.”

Postnatal Publication.—It has always

to

in a

of

in

to

publish the legislatures volumes, each volume usually includ statute laws enacted ing all particular legislative session. From time the laws enacted by

been the practice

of

all

it

a

as

of

a

in

a

or

time these laws are codified, meaning that they are consolidated systemati cally into single volume, volumes, containing set the then existing statute law form known code. While has been the

In

a

it

to

publish administrative rules and regula British practice for many years provision was made for our own tions.” was not until 1935 that such a

in

there are published presidential

proclamations,

it

Monday, and days following legal holidays.

daily, except Sunday,

In

is

Archives.

of

up

that year there was enacted Federal Register Register set Division the Federal the National This Division publishes the Federal Register, which issued a

federal government.

Act,” which

executive orders, and any

is

or

A or

of

order, regulation, rule, certificate, code fair competition, license, notice, document, general applicability similar which has and regulatory effect. regulation rule not valid against persons without actual notice until to

-

§§

A.

C.

S.

U.

57. Stat. 500,

44

*49

p.

Ibid.,

*

50

on

of

* **

of

Hart, “The Exercise the Rule-Making Power,” loc. cit., pp. 341–342. safeguards, see Sir Cecil Thomas Carr, For an interesting British point view English Administrative Law (Columbia University Press, New York, 1941),

ºffino ft. p.

is be

in

of

by

filed with the Federal Register Division, and made available for public inspection. The contents the Federal Register are required law judicially noticed, which means layman's language that the court

301–305

(July

26, 1935).

ADMINISTRATIVE

498

LAW

[Ch.

31

authorized to take notice of their existence even when they have not been cited or pleaded in court proceedings.

The law provides that the rules and regulations published in the Federal Register shall be codified into a Code of Federal Regulations. The statute provides for recodification every five years, the first code consisting of those rules and regulations in effect on June 30, 1938, ultimately embracing 15 volumes. Annual supplements were to contain material published in the Federal Register during the interim between codifications. Owing to the vast amount of ephemeral material having to do with the war, Congress passed a law dispensing with the recodification due in 1943, substituting a multi-volumed

supplement therefor.

Laying Before the Legislature.-Attempts have

been made to estab legislation by requiring lish a cross check on administrative in the author izing statute that rules and regulations made in pursuance thereof shall be

laid before the legislature for a given period, usually 60 days, as was the case with the recent federal reorganization acts. The regulations will become effective only after they have lain before Congress for the designated period, and if Congress has not voted adversely on them during the interim. In the case of some of the major transfers of administrative agencies in 1939 and 1940, resolutions were enacted in both houses, approving the Presi dent's action, although this was probably not required. The procedure which is common in England provides that regulations shall become effective at

of

it.

is

Modification

of

buried

questioned, because the draft rules and regulations become papers coming before the House.”

the great volume

of

in

a

safeguard

as

once, but that if either House presents an adverse address, His Majesty may by an Order in Council annul the document, without prejudicing the validity of anything done under The effectiveness this procedure

Statute by Administrative

Action

or

in

to

of

is

of

to

of

it

of

things On the face seems that giving administrative officers the modify statutory law outrages the Anglo-Saxon tradition the rule law. However, this very thing done both the United States and England without destroying the bastions the Constitution fundamental laws. Thus, the New York State Industrial Commission has the power

power

p.

the Study

be

of

of

a

of

p.

**

•

op. cit., 58. Leonard D. White, Introduction millan Co., New York, 1939), 525.

to

**Carr,

a

in

by

to

of

to

as

is

to

in it

or

operates

“if

practical there shall carrying out any provision” those statutory category, laws.” The power sometimes conferred extend Flexibility adding subject quarantine. such the number diseases judicial procedure was secured enacting rules, but giving code

alter the basic statutes under which unnecessary hardship difficulties

Public Administration (The Mac

THE RULE-MAKING PROCESS

Ch. 31]

499

its

the courts the power to alter such rules when the need arose.” Administra tive agencies have also been granted the power to say when a law enacted by the legislature shall go into effect. Also familiar in America is the contingent rule-making power, as evidenced by the so-called flexible tariff.

of

of

at

to

Under this arrangement the administrative body had discretion confined production abroad bal fact finding; namely, the point which cost

have made extensive

is

clause,” which

use the so-called “Henry big and comprehensive acts.

of

seem

sometimes inserted

VIII This

in

British

to

of

at

production anced cost home. The Federal Tariff Commission could alter the statutory rates, contingent upon the finding such facts. The

of

to

all

in

In

in

in or

an

a

fit

to

to of

in

is

it

to a

of

to

help the draftsman who has was devised law into literally scores may century other acts which have existed for more. Such event autonomy altering 1920, and took place the granting Ireland the basic statutes applying Burma and India 1935. such situations impossible for the legislative draftsman foresee the ramifica

in

of

is

in

an

be

by

of

tions and impacts the new law upon the network statutes already Consequently, provides existence. the new statute that the necessary adap Council, which tations may made Order the British equiva lent of our executive order.”

by

or

by to

of

a

by

of

the President. reorganization

it

In

years has been customary for number reorganization executive order action Congress the Under specific statutory authority delegated orders 1939 and 1940 resulted from such power contained

the United States accomplish administrative

in

in

to

the Forest Service. The resulting reorganization plans did set administrative agencies and transfer them existing bureaus

up

as

to

a

in

Congress.” While the statute enacted after being hotly contested President was given broad powers shuffle the bureaus, the statute specifi cally excluded certain agencies such the General Accounting Office and new

other

on

departments.”

It

by

be a

be

of

to

The President's Committee Administrative Management deplored the extent which Congress had written into the statutes details affecting the over-all management the executive departments. was felt that the opera given directing power departmental President should broad over to

to

on

to

it

tions, and that empowering him should facilitated make rules regulations governing management. and internal The Committee went recommend that the original broad grant should extend him authority to

to

enact uniform administrative regulations which would supersede con flicting statutory details. The President would not have the right alter

f.

44

p.

24

* * *

Carr, op. cit., pp. 41, 42. Ibid., Reorganization 1939, Act

A.

§§

U.

S.

3,

C.

5

S.

U.

7,

1,

§

C.

53

in

53

2,

3,

4

I,

of

Stat. 561–565, 133–133r (April Congress gave the President similar powers 1945. Reorganization Plan Fed. Reg. 2727, Stat. 1423, A. 133t (April 25, 1939), Part secs. 301 (a) and 302(a)(b), Part secs. 201 and 204, effective July 1939. Public Resolution No. 20, 76th Cong., 1st sess. (June 1939). 1939).

ADMINISTRATIVE

500

LAW

[Ch.

31

statutes affecting the rights of citizens in general, but merely to round out, shape up, and make more efficient the routines and procedures of internal management. SELECTED READINGS BOOKS AND MONOGRAPHS Attorney

General's Committee. Administrative Procedure in Government Agencies. (Government Printing Office, Washington, D. C., 1941), 77th Cong., 1st sess., Senate Doc. No. 8, pp. 99–121. Blachly, F. F., and Oatman, M. E. Administrative Legislation and Adjudication. (Brookings Institution, Washington, D. C., 1934), pp. 19–90. Carr, C. T. Delegated Legislation. (Cambridge University Press, London, 1921), pp. 1–56.

Chen, Chih-Mai. Parliamentary Opinion of Delegated Legislation. (Columbia Uni versity Press, New York, 1933), 149 pp. Report Presented by the Lord High Chancellor to Committee on Minister's Powers. Parliament by Command of His Majesty. (Command Paper 4060, H. M. Station ery Office, London, 1932). Hart, James. An Introduction to Administrative Law. (F. S. Crofts & Co., New .

York, 1940), pp. 153–175. Hart, James. “The Exercise of Rule-Making Power,” in President's Committee on Administrative Management, Report with Special Studies. (Government Printing Office, Washington,

Hart, James. more,

D. C., 1937), pp. 313–355. The Ordinance Power of the President.

(Johns Hopkins Press, Balti

1925).

Edwin O. Filing and Publication of Administrative Regulations. (Kansas Legislative Council, Pub. No. 20, 1943, mimeo.), 34 pp. Walker, Harvey. Law Making in the United States. (The Ronald Press Co., New Stene,

York,

1934),

pp. 451–473.

PERIODICALS Bulman, John Shea, and Leggett, Leslie A. “Federal Legislation, Responsibility in Rule-Making.” The Georgetown Law Journal (March, 1944), Vol. 32, pp. 265–283. Gaus, John M. “Report of the British Committee on Minister's Powers.” American Political Science Review (December, 1932), Vol. XXVI, No. 6, pp. 1142–1147. Ruddy, J. C., and Simmons, B. S. “The Federal Register, Forum of the Government and the People.” The Georgetown Law Journal (March, 1944), Vol. 32, pp. 248– 263.

Witte, Edwin E.

“Administrative Agencies and Statute Law Making.” ministration Review (Spring, 1942), Vol. 2, pp. 116–125.

Public

Ad

CHAPTER

32

THE LAW OFFICE AS A STAFF AGENCY His Place in Policy.—The American

its

The Lawyer's Relation to Line Officials legal system with

underlying

of

an

up

of

on

of

to

judicial review makes every administrative action vulnerable fact proce questioning constitutionality. the ground The doctrines legal hazards which the admin dural due process and ultra vires also set

The result that the lawyer has become omni present and inescapable pillar administrative counsel and decision. the an

If

of

is

istrator cannot ignore.

or

a

of

at

as

Civil Service

a

Because

the heart

the following words Improvement, familiarly

This was very aptly stated

Committee

staff officer.

found

in

is

he

is

above frequently

the Reed Report: by

known

President's

referred involved,

by

the

as

by

on

the legal implications policy. deliberations

on

of

The governmental lawyer

to

-

he

up

attorney among his immediate administrator does not have invariably advisors, going step can secure such counsel two the hierarchy. by

public

of

in

of

We have been forcibly impressed the pervasive role played the lawyer the administration the American Government. Every branch the Federal Government proceeds under specific statutory

of be

be

in

of

a

differences p.

as

D.

of

to

*

Report President's Committee on Civil Service Improvement, (Government Office, Washington, C., 1941), 77th Cong., 1st sess., House Doc. No. 118, after referred Reed Committee Report. 501

of

open

to

other public officers

is

Administrative Relationships.-The proper relationship

the governmental lawyer

to

of

or

of

Questions

of

of

of is

of

in

be

be

be

or

a

of

is

to

authority, and every statute and every executive action subject the limitations the Constitution. There inevitably arise swarm legal problems around every officer charged with administrative re regu sponsibility. Legislation must construed; proposed acts drafted; hearings held; legal opinions lations must must must prepared; litigation must conducted. The lawyer, contrast with inevitably the ordinary professional employee the Government, policy-making process necessity thrown into the heart the and important, controlling, major has an and often voice the issues agency. The personnel problems his department the attorneys are for this reason made unusually difficult."

Printing 31,

here.

opinion.

LAW

ADMINISTRATIVE

502

City attorneys and

[Ch. 32

the attorney

general of the states are often Such persons usually maintain an

chosen politically at popular elections. attitude of independence from any other governmental agency. The advo cates of popular election contend that the attorney should conduct himself

in a purely objective and impersonal manner in his relationship with gov ernors, legislators, city councils, administrative commissions, and depart

They declare that a city attorney cannot achieve this objec tivity if he is beholden to a city council, mayor, or city manager for appoint ment. One Attorney General of the United States even claimed that his position was quasi-judicial in nature when rendering official opinions. In addition to being an advocate for his governmental client, he has an obliga tion also to protect the rights of private citizens.” Another way of putting it would be to say that the city attorney or attorney general is a “watch-dog” ment heads.

who supports

the cause of popular

government

by endeavoring

to keep

officials within the limits of their legal powers. There are those who would place much less emphasis upon the “watch-dog" aspects of the public attorney. American lawyers are educated in the common law, administrative

is

of

so

in

of

of

It

in

to

government and public officials general. seeks control through charged presumption suspicion. them external checks with the As was indicated the opening chapters this book, governmental admin

of

picious

an

of

in

its

major development which achieved era extreme individualism. philosophy The result that the the common law has been highly sus

of

or

be

in

large istrative organization has become scale that effective and honest operation can only through achieved coordination and scientific manage dispensing with any ment. Without belittling the external checks

checks

of

it

to

impose upon public offi which our wise forefathers found advisable cers, the day has nevertheless come when additional steps seem necessary. Competence and honest administration must depend upon the internal management.

in

an

to

as

it

of

of

be

The new public management must armed with resourcefulness, ini tiative, and flexibility. This does not require departure from the rule law nor does necessitate subordination the lawyer's place adminis contrary, attorney, acting tration. Quite the the intimate staff as

at

of

of by

a

to

management, can become much more effective instrumentality holding for the rule law than himself arms length the puritanic large-scale organization are incompetence and watchman. The dangers

advisor

p.

.*

John A. Fairlie, “Law Departments and Law Officers Michigan Law Review (April, 1938), Vol. XXXVI, 913.

of

management. They will in

the philosophy and devices

of

in

attorneys schooled

a

of

be to an a

inefficiency, and these exist much greater extent than corruption and dishonesty. The result will increasing need for maintaining the inter generation public nal checks scientific management and for rearing

American

Governments,”

THE LAW OFFICE AS A STAFF AGENCY

Ch. 32]

503

of professional

competence combined with social understanding, harmonizing management objectives with the law when that is possible. There seems little danger that intimacy between operating officials and the legal staff will jeopardize the effectiveness of the latter.” be men

of

an

legal business integrated department city attorney. The decentralizing

attorney general

or

in

centralizing

an

as

or

in

ments favor office, such

of

of

of

all

. There is a constant struggle between integration and decentralization of legal activities in organizations considerable size. The interests management efficiency present very logical argu over-all and the dictates

of

of

in

of

is a

to

work are similar

on

at

those affecting other activities. There part operating agencies that they must have their the the own lawyers who have become specialized functional aspects through intimate association with the business the line departments. The tendency forces feeling

a

a

on

of

by

It

is

to

expand universal, thus becoming self-contained administrative units and gaining prestige from increased size. also frequently happens that agencies manned great enthusiasts with zeal for cause are impatient

in

of

of

of

in

of

to

be

lukewarmness, and even lack sympathy, what they believe part legal the the central office. Such was often the case the relations Department between the United States Justice and the new emergency agencies the early days the New Deal.” Instances also exist where

be

regarded

departmental

or

as

Should they

be

responsible.

to

is

administratively

in

be

in

is

It

of

in

the line departments do not have confidence the ability and professional competence the lawyers the central legal office. generally agreed that some lawyers must stationed the line departments. The principal question whom these lawyers should

to

to

no of

to

be

as

be

to

employees, who are responsible departmental management, should they looked upon units the central legal office detailed the depart easy and clear-cut answer ments? There seems this quandary.

of

in

as

Chicago and Los Angeles have consolidated and unified law Certain attorneys work the line departments, but they really are integral parts the central law department assigned elsewhere for matters of convenience."

Such cities departments.

of

of to

of

in

the federal setup have placed the departmental responsibility the department head, instead

in

Recent developments

The establishment

the Department

of

federal legal functions.

of

of

a

to

as

to

of

solicitors direct line Department the Justice some them formerly were. There has bring about the integration been constant struggle for many decades

Justice on

&

in

p.

*

in

Bros., Fritz Morstein Marx, Public Management the New Democracy (Harper New York, 1940), 230. On this point see James Hart, President's Committee Printing Office, Administrative Management, Report with Special Studics (Government

p.

&

*

6,

f.

of

*

p.

Washington, D. C., 1937), 336. Legal Functions,” American Carl Brent Swisher, “Federal Organization Political pp. 973, 979 Science Review (December, 1939), Vol. XXXIII, No. Barnet Hodes, Law and the Modern City (The Reilly Lee Co., Chicago, 1937), 84.

LAW

[Ch. 32

all

ADMINISTRATIVE

504

of

legal business the lands the Attorney General. This intention was frustrated, first, the failure Congress provide housing space which would bring the previously by

to

of

by

in

1870 was intended to integrate

in

of

by

to

of

on

decentralized attorneys together the same premises; secondly, the objections the departments which wanted retain their own attorneys making such desires effective; and thirdly, and which found ways

of

of

A up

of a

to

of

the failure the legislative body amend the old statutes giving the departmental attorneys their powers. After 1870 there also followed departmental law officers independent series enactments setting working Department arrangement has been achieved, the Justice."

of

of

of

of

however, under Executive Order No. 6166 June 10, 1933, whereby the Department charge litigation Justice has and supervision United be

all

of

However,

the attorneys

in

do

have some part before the inferior courts, although even there the Department tends retain the dominant influence.”

of

it

represented before that Department. line departments and operating agencies

the

litigation

Justice

to

of

by

be

In

of

to

States Attorneys and Marshals." The practice seems that the Depart complete appearances ment Justice has control before the Supreme fact, that august body even demands that government cases Court.

Activities of the Public Law Office

a

agement. Such

in

is

of

of

be

Criminal Activities.—The criminal prosecution and investigative activ public attorneys will passed over with ities mere mention. This dis public man cussion concerned primarily with the rôle the attorney need not carry the implication

The Lawyer

as

to

in

to

to

it to is

as a

It

of

is

criminal

of

a

of

in

that his efforts quite law are not important, for the contrary just happens that the immediate aims decidedly the case. chapter this management, with the result have do with the lawyer staff aide give only passing notice that desirable his duties the field criminal law. the field

statement

Management Staff Aide.—A universal and highly

to

or

be

to

the government attorney

is

render opinions interpreting the law for administrators. These opinions may formal and opinions written informal and oral. The written tend take the form

of

important responsibility

of

in be

officers are bound

The question arises whether not departmental follow these opinions. The answer would seem to

states.

or

the

to

many

of

of

is of

in

of

legal briefs, and well-managed offices are issued serially and indexed ready for reference. The most important opinions the Attorney General the United States are published, and the same true that officer

of

*

7

ft.

of

*

Virginia Law Review Sewall Key, “The Legal Work the Federal Government,” (December, 1938), Vol. XXV, pp. 165, 180 Ibid., pp. 197–198. Swisher, “Federal Organization Legal Functions,” op. cit., pp. 995–1000.

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39 Tv`dan

ALID

Ch. 32]

THE LAW OFFICE AS A STAFF AGENCY 505

*c ºd

ADMINISTRATIVE LAW

506

[Ch. 32

do pursue that course of action. While there are some court decisions which imply that the Attorney General's opinions are binding upon departmental action, the true state of affairs is that officials are free to disregard such opinions;

a

of

of

is

govern

subjects.

a

to is

of

of

In

of

of

to

Federal attorneys handle anti-trust cases, tax cases, criminal prosecu tions, claims against the United States, matters having do with acquisi public lands, and cases concerning administration tion the customs. principle liability municipalities, recognized, the where the tort

of

a

of

of

to

be

he

represent and protect the city's that the one interests the periodic sessions the state legislature. One who attends undoubtedly these sessions will meet the lawyers the League Munici necessitates

in

tically

to

of

in

be

given settling, com the city attorney's time must promising, and defending claims tort against the city. By the very nature position his the city attorney tends become lobbyist and legislative representative. His familiarity with the law prac large percentage

Furthermore,

as

as

in

on

or

of

number

of

a

cities and their group interests, well staff members from the law offices the larger cities and counties, who during the entire session either stay are intermittent attendance. palities, representing

as

in

of

in

the last decade there have been more direct contacts be city tween the and federal agencies. These took place first the realm relief, such the W.P.A. and the P.W.A., but later one discerned the

of

of

formative and final rôle the drafting regulations concerning rules and admin

in

The lawyer also assumes both

a in

an

by

in

of

same development the field defense. Because the exacting legal requirements imposed the federal government, the attorneys for local important units assumed rôle the contacts with the federal agencies.

to

as

in

due care were not t

Departments,”

President's

of

p.

916.

Witte, “The Preparation in

sº,

tive

op. cit.,

E.

Fairlie, Edwin

19

•

taken."

to

is

which might create legal liabilities and invite litigation

if of

a

a

of

of

of of

to

be

of

both statutes and administrative istrative activities. His knowledge the law again necessitates that the proposed bills such form and phraseology offer the utmost legal resistance attack." approve the legal Not the least the responsibilities the lawyer legality variety form and wide documents. These include deeds, letters, franchises, contracts, bond issues, and host forms and papers

Committee

Proposed Legislative Measures by Administra on Administrative Management, op. cit., pp.

in

in

of

the duties the lawyer Public Administration see Philip M. Glick, “The Role Management,” Advanced Management (April, May, June, 1940), Vol. V, the Lawyer pp. 68–71, 85.

of

-

they are assuming considerable risk.” but when they do Litigation naturally one the most important activities attorneys. great variety mental The cases handled cover

of

so,

that it is wise for them to do so, and that they almost invariably

THE LAW OFFICE AS A STAFF AGENCY

Ch. 32]

507

Attorneys in the Federal Government There were 5,368 legal positions in the federal service in 1939, and of these less than one-fourth were in the Department of Justice, which had 1,271. The agencies employing the next largest numbers were the Veterans' Administration, 611; Treasury Department, 433; Securities and Exchange Commission, 310; and Interstate Commerce Commission, 306. Practically every

federal

agency

with independent

-

attorneys.”

status

employed

one or more

Activities of the Department of Justice.—The Department of Justice into divisions and bureaus largely on a functional basis. The Solicitor General, under the Attorney General, has charge of litigation in the Supreme Court and also authorizes appeals in other courts. Legal is divided

its

by

all

matters are allocated functionally to divisions of anti-trust, taxation, claims, lands, and customs. The criminal division has jurisdiction, with few excep tions, over federal criminal cases. The War Risk Litigation Bureau

Activities

of

Departmental

a

is

to of

is

as

Labor

in

ment from the Department

of

of

of

of

in

of

represents the United States the type actions indicated title. Investigation The well-publicized Federal Bureau (F.B.I.) also Justice, Department unit the the Bureau Prisons. The Immi gration and Naturalization Service was transferred the Justice Depart 1940.”

Lawyers.-The

executive departments the respective depart

in

is

of

the duties

the

on

Justice. Thus, some Agriculture are

of

the Department the Department

of

charge

of

as

of

a

to

have departmental solicitors who are responsible ment heads. Under present arrangements these offices handle wide variety legal business other than litigation, which, has been indicated, to

of

of

in

is

to

laws through Congress. There also wide legal work having procedural aspects with the adminis

of

a

is

variety

Department's

do

the

to

lowing

of

of

of

he

reviews all correspondence and other documents involving Secretary legal questions. He advises state and local authori the legislation responsible for fol ties interest the Department, and on

understanding,

to

In

of on

in

of

of

questions Solicitor consult involving interpretation statutes, executive orders and regulations. He drafting part departmental takes rules and regulations. He may consult with the Comptroller General and his own departmental finance officers participating fiscal matters. addition the drafting memoranda

Recd Committee Report,

p.

** **

trative adjudication.” 29.

of

**

of

of

Annual Report the Attorney General the United States for the Fiscal Year 1940 (Government Printing Office, Washington, D. C., 1940), 261 pp. John M. Gaus and Leon O. Wolcott, Public Administration and the United States Agriculture (Public Administration Service, Chicago, 1940), pp. 350–359. Department

ADMINISTRATIVE

508

LAW

[Ch. 32.

Selection of Federal Lawyers.-Only

936 of the more than 5,000 employed by the federal government in 1939 were under civil service, and none of these was in the Department of Justice. One of the principal assignments of the Reed Committee was to tackle the problem of lawyers

applying the merit system to federal attorneys. Failing to agree on one plan, the Committee came in with two alternative proposals known as Plan A and Plan B. The former received the support of the lawyers on the Committee, and the latter that of the laymen, with Justice Murphy sum marizing his views independently. Plan A opposed the utilization of the traditional form of civil service selection in choosing lawyers. The chief criticism was directed toward written competitive examinations, and com pulsory selection from the top of the list according to the rule of three. It was claimed that written examinations were inapplicable because law school graduates had survived many hours of written examination in addition to the bar examination. Furthermore, many agencies desired qualities of a personal nature and functional specialization, which could not be measured by written examination. The result was that Plan A recommended a sys tem of selective certification whereby individuals could be chosen irre

of any ranking on an eligible list.

spective

The recruiting process was to consist of recruitment of

recent law graduates directly college campuses. school from Candidates would be subjected to a preliminary sifting process which would consist of easily scored short-answer tests, probably of the legal aptitude variety. Final

competition would be confined to those who passed this preliminary sifting and to those who had failed this hurdle but could yet submit evidence of standing in the first 10 per cent of their law school classes. Then there would be an evaluation of each candidate's record, including not only his law school record, but also his college and secondary school records, together with other pertinent data regarding experience. This would be followed by an oral interview conducted by regional committees consisting of federal judges, government lawyers, members of law school faculties, and private practitioners. This would result in a register of approximately 500 names, of which 250 or 300 would probably secure appointment.

It was recommended that this register certifying according to

be unranked.

If

a ranked register,

of three, were used, the following situation or more of agencies were competing for the 200

the rule

its

all

would result. If a score lawyers at the top of the list, 300 or 400 might be certified, with the result that a unit which had been a trifle late in making the request might get

with

unranked register.

Plan

sought

to

appointed.

A

be

of

or

be

the three would an

of

of

of

certification from the middle bottom. Competent persons near three, would the top the list, who had been certified under the rule tied up while their names were being considered, even though only one avoid this situation

THE LAW OFFICE AS A STAFF AGENCY

Ch. 32]

509

The nonlawyer

members of the Committee objected to the unranked register and also found no reason for departing from the customary civil service examination procedure. It was intimated that there are tried and valid methods of testing which are practicable in recruiting for the begin

ning legal positions. “A written examination is feasible to test mental ability and knowledge of the law; an oral examination, supplemented by letters from law professors, deans, and others will throw light upon quali ties of character and personality.”” The controversy over the selection of lawyers in the federal setup was finally settled on April 23, 1941, when the President issued an executive order" which adopted Plan A of the Reed Committee Report. Thereafter legal positions were to be filled from an annual unranked register promul

gated by a Board of Legal Examiners in the United States Civil Service Commission. In addition to the Solicitor General of the United States and the Principal Legal Examiner of the Civil Service Commission, the Board is composed of representatives from the legal and law-teaching professions

of top law officers already in the government employ. The Board has the power to approve the establishment of regional and local boards of review by the Civil Service Commission for the recruitment of federal

and

lawyers in those areas. The effect of the executive order has been nullified in practice by riders to annual appropriation bills barring the Civil Service Commission from spending money for such a purpose.

A Law

of Public Management

passing reference has already been made to the necessity for develop ing a legal philosophy which is sympathetic toward the needs of manage ment. The philosophical outlook of lawyers is essentially conservative and

A

or

or

have ethical moral implications. professions upon precepts having moral and Persons and reared code respect and revere them ethical implications quite naturally learn the to

of

point

questioning change.

to

of

to

Its rules are presumed

a

doggler.”

or

all

cautious, a perfectly normal situation when viewed with an understanding of the nature of law itself. Law is a set of rules, norms, and standards designed to apply to alike, either baron beggar, banker “boon

The one who initiates such change

is

of

up

to

as

in

of

up a

viewed way doing things. He sets hazard the established Anglo-American government, The traditions until the 1930's, were predominantly individualistic philosophy practice: basic and That govern being ment was best which governed least. Public officers were viewed

with suspicion.

p.

to

**

Reed Committee Report, 52. Executive Order No. 8743 (April 23, 1941).

it

in

the least competent persons the community, and was not unpopular question their integrity. The social legislation which caused the rapid

.

ADMINISTRATIVE

510

LAW

[Ch. 32

its

expansion of administrative personnel and activity in recent years was enacted grudgingly and frequently was administered in such a manner as objectives." to frustrate

socially

these that one

of

to

of is

a

It

of

of

in

groups

of

on of a

in

is

of

is in

also recognized that there are minority lawyers among the members minded the bar. appeals calling for the development concept

It

society.

of

a

in

is

It

such milieu and environment that the present-day govern lawyer mental has been conditioned. This said full recognition the fact that the last decade has seen many progressive law schools take laud study able steps the direction basic legal education based

the law

public

management.

of of

a

not.

is

of

to

inescapable.

in

agencies

administrative the future

of

public This makes large-scale organization biggest development The task the harmonize democratic practices, civil liberties, and the

it

whether one likes

or

of

is

of

of

of

be

public management would recognition based upon the facts modern society. The core these facts the inevitability urbanism, the factory system, the division labor, and the machine age,

The law

of

is

upon this

is

be

harmonized, and others who say that they must and will hypothesis succeeding latter that the discussion founded.

it

to

is

it

be

of

large-scale organization freedom the individual with the necessities and operation. There will those who will say that these are antithetical; impossible that harmonize such divergent tendencies. There are

be

a

of

as

so

of

out the principles scientific management. The significant change will philosophy one fundamental and outlook. Instead view ing the responsible public administrator with suspicion, and instead regarding him inferior person doubtful integrity and competence, the public charge him will somewhat follows:

of

as

be

to an

as

of

of

of

be

of

of

growing

a

be

by

of

systems

in

external checks should retained far they operate toward the establishment responsibility, confidence, and integrity, but they should augmented system internal checks dence.

The old

of

to

public

in

authority

concept

of

law should aim establish managerial spirit with compensating responsibility trust and confi

The new

D.

F.

See Roosevelt's reasons for removing mission. Discussed on page 518 this text. 17

of to on

as

be

a

worthy manner, you will not sub However, the community

annoyances and interferences.

Humphries -

petty

in

as

at

us

jected

to

plishing your major objectives

all

of

choosing the means accomplishing your task but we have set fully informed up intelligence units which are keeping times you doing. long you what are You can rest assured that are accom in

leeway

a

a

is

in

extremely important and your position Your job the community enjoys merited prestige. We have given you the power and facilities highly necessary community job. We are giving you great deal do

from

Federal

Trade Com

THE LAW OFFICE AS A STAFF AGENCY

Ch. 32]

5II

jointly holds you administratively responsible, and dereliction on your part will be dealt with justly, but certainly. The law of public management must deal constantly with paradoxes, and one of the foremost of these is striking the proper balance between the flexible discretion needed by management and the certainty of rules called for by the law. The law of public management should deal with the general over-all subjects of public administration as exemplified by the subject headings in this book. These include organization, personnel, finance, and the relations of the administrative branch to the citizen. In each of these fields there already exists a mass of decisions having both a statutory and common law basis. The objection has been made that, while there may be a large volume of cases involving subjects of administrative organization and rela tionships, they do not involve any questions of common law. It is said that they are made up of statutory interpretations involving separate issues on a variety of statutes differing one from the other. While this situation is undoubtedly largely true, it should be no argument against an attempt to bring order into both the statutory and case law by means of observing a sound philosophy of public management. The common law has always developed in that way. In the last analysis our American law is largely judge made, and judges are generally lawyers. The fundamental philosophy and attitudes of the lawyers who draft the statutes, write the briefs, make the arguments, and prepare the judicial decisions must certainly have a decisive effect in formulating a legal pattern congenial to a workable law of public management.

In defining

of the law of public management the first subject to present itself is that of administrative organization. A prelim inary examination of the legal digests indicates a number of cases dealing with the interpretation of the state reorganization statutes referred to in an earlier chapter of this book. There is a wide range of subjects affect ing internal management which have only a minor or secondary effect on private citizens. An example is the case of the city manager who exercises discretionary

the boundaries

authority

to have downtown garbage removal performed by the city itself rather than by several private contractors. To be sure, the interests of the contractors were adversely affected, but there were other paramount considerations involving the public health, economy to the tax payer, and public convenience.

Probably

prolific field in the law of public management would be personnel, for the digests are bursting with a great volume of cases dealing with civil service law.” A great deal of new and creative thought should be addressed by legal scholars to the entire question of public em

* Oliver

the most

P. Field, Civil Service Law (University of Minnesota Press, Minneapolis,

1939),

w

LAW

ADMINISTRATIVE

512

[Ch. 32

For instance, it is fairly common to pronounce as

ployment.

a legal precept

is

major

the

so

of

one

to

of

the attainment that management flexibility which seems operation. effective Democratic public administration must find procedure personnel disciplinary cases which will render substantial in

to

barriers necessary a

trial procedure.

It

dures the contentious situation

is of

is

of

in

great danger

the feeling among many persons that there introducing into disciplinary phases personnel proce

It

practice.

in

negation

de

its

that there is no property right to public office, yet there are flags in the wind to indicate that both statutory enactment and judicial decision may be whittling away at the foundations of this principle, resulting in facto

the individual without impairing sound management. Obviously the field financial administration, there also exists fruitful field for legal inquiry. Anyone familiar with the federal scene

a

in

of

to

justice

by

as

of

to

of

knows that those representing the professional management viewpoint are almost unanimously opposed both the theory and the practice the Comptroller General, incumbency office established the McCarl

of

to

of

to

of

on

a

of

of

opinion between that There has been constant difference Department involving interpretation office and the Justice matters the law, and the Attorney General has won when the issue has gone trial. Congress any The fact remains that has refused make modifications the situation. that office.

the last twenty years have occa good many resorts sioned courts for interpretation. These involve questions segregation appropriations, the degree such the which to to

as

of

a

to

of

The newer budgetary procedures

or

of

of

or

the ground

A

illegality

to

he

Does have the power the proposed expenditure,

of

the accounting officer.

of

on

withhold approval

unappropriated

in

allotted

ernor has been held involves the pre-audit

balance.” The emergency the director finance with the approval the gov very important legal issue invalid Illinois.” by

fund

the emergency fund,

by

tion

be

to of

to

the legislature can make lump sum grants, and leave segregation admin agencies.” Legal istrative controversies also arise relative the administra

or

30

69

R.

v.

v.

v.

L.

E.

v.

E.

v.

E. v.

E.

er

v.

v.

v.

**

v.

v.

**

v.

v.

of

of

L.

78

S.

v. v.

S.

McCarl, 291 U. 442, 54 Ct. 465, Ed. 901 (1934). Richards, 69 Cal. App. 533, 232 Pac. 480 (1924); State car rel. Board Nielson Regents Zimmerman, 183 Wis. 132, 197 N. W. 823 (1924); Heron Normal Schools Riley, 220 Cal. 340, Riley, 209 Cal. 507, 516, 289 Pac. 160 (1930); Vandegrift Pac. (2d) 516 (1934). Peabody Russel, 302 Ill. 111, 134 N. 150, 152, 20 A. 972 (1922); Heron Riley, 209 Cal. 507, 516, 289 Pac. 160 (1930); Neilson Richards, Cal. App. 533, 232 Pac. 480 (1924). Babcock, 175 Minn. 103, 222 N. W. 285 (1928); State Chase, 175 Minn. State 259, 220 N. W. 951 (1928); State Chase, 165 Minn. 268, 206 N. W. 396 (1925); State Herrick, 107 Ohio St. 611, 140 N. Baker, 112 Ohio St. 356, 147 314 (1923); State Guthery, 125 Ohio St. 603, 183 N. N. 501 (1925); State rel. Miller 781 (1932); Lewis, Aud. Gen., 282 Pa. 306, 127 Atl. 828 (1925). Commonwealth car rel. 20 19

Miguel

to

to

in

to

he

is

stating merely whether confined not sufficient unencumbered funds are available?” The reorganization acts have resulted actions question governor's power require quarterly which the allotments and

THE LAW OFFICE AS A STAFF AGENCY

Ch. 32]

513

force prorated economies on spending departments.” One state attempted to meet the depression deficit in 1933 by empowering the governor to com bine, merge, and consolidate departments; abolish services which he might deem useless and unnecessary, and dismiss personnel; and this statute was challenged in the courts.” Reorganization acts, seeking to integrate finan cial control, have sometimes been challenged by the administrative depart ments which have administered their own special revenue funds.” have been advanced merely to indicate some general broad areas in which a mass of legal decisions and precedents already exists. Some will object to the thesis that the approach to a unified law of public management should be through the study of cases and judicial interpreta These illustrations

proper attack is to study the statutes. There is no intention here to minimize the importance of the statutory fabric sup porting the major process of administration; however, statutes are drafted tion.

They will say that

the

and enacted by legislatures in which lawyers make up two thirds of the membership. They are administered by officers who are influenced by the omnipresent legal advisors. They are tested in the courts, by lawyers

by the atmosphere of contentiousness in which the lawyer is so much at home. They are interpreted by judges who are lawyers. The fundamental schooling of those who influence these statutes is the familiar law school case book. In other words, the way to get at a workable legal surrounded

approach to public management is to get at the lawyers. What more logical approach to this objective is there than the attempt to rationalize a progres sive common law of public management? SELECTED READINGs BOOKS AND MONOGRAPHS Hodes, Barnet.

Law and

107 pp.

Reed, Thomas

York,

1941),

H.

the Modern

Municipal

City.

Management.

(The Reilly & Lee Co., Chicago, 1937), (McGraw-Hill

Book

Co.,

Inc.,

New

pp. 288–302.

Siebenschuh, Robert. Law Department.

The Administration of Municipal Legal Services: The Chicago (Public Administration Service, Chicago, 1942), 58 pp.

PERIODICALS Duke University School of Law. “Government Tort Liability.” Law and Contem porary Problems (Spring, 1942), Vol. 9, No. 2, entire issue, pp. 179–370. v. Hard, 229 Ala. 2, 155 So. 590 (1934). ** Acts of the Legislature of West Virginia, Regular Session, 1933, Ch. I, pp. 1–3; LePage v. Bailey, 114 W. Va. 24, 170 S. E. 457 (1933). Railroad Commission v. Riley, 192 Cal. 54, 218 Pac. 415 (1923); Board of Osteo pathic Eraminers v. Riley, 192 Cal. 158, 218 Pac. 1018 (1923); Jamme v. Riley, 192 Cal. 125, 218 Pac. 578 (1923); Keiser v. State Board of Control, 192 Cal. 129, 218 Pac. 1016 (1923); Western Shore Lumber Co. v. Riley, 192 Cal. 144, 218 Pac. 761 (1923); Riley v. Forbes, 193 Cal. 740, 748–749, 227 Pac. 768 (1924); Riley v. Thompson, 193 Cal. 773, 779, 227 Pac. 772 (1924). 23 Abramson

*

514 Fuchs, Ralph F.

ADMINISTRATIVE

LAW

[Ch. 32

“The Federal Civil Service for Lawyers.” Public Personnel Review (July, 1944), Vol. 5, pp. 168–176. Marx, Fritz Morstein. “The Lawyer's Role in Public Administration.” Yale Law Journal (April, 1946), Vol. 55, pp. 498–526. "Rowell, Ira. “Practice before the Railroad Commission.” Journal of the State Bar of California (September-October, 1943), Vol. 18, pp. 364–379. Weihofen, Henry. “The Civil Service Program for Government Lawyers.” Lawyers Guild Review (January–February, 1943), Vol. 3, pp. 1–5.

CHAPTER

33

OFFICERS AND REMEDIES American public law distinguishes between an officer and an employee. While this distinction may seem to be at times rather farfetched, the fact remains that it is very important in practice. For on it may depend whether a widow receives workmen's compensation for her husband's death; " whether a city manager must be a resident when chosen; * or whether consulting

engineers must pay a federal income tax on fees received from state or local governments.”

Who Is

Public Officer?

a

City

an

latter being

is

a

of In

an

is

to

engineer—the

of

office

of

in

a

on

it.

What, then, are the requisites, qualifications, attributes, or properties which distinguish an office from an employment? It is not possible to make such a distinction with great preciseness. The most common attribute of an officer would seem to be that to him is delegated responsibility for the exercise of some portion of the sovereign power.” Thus, one whose duty it is to regulate traffic upon public streets is exercising a part of the sov ereign power, and hence is an officer." The term “office” ordinarily, but not invariably, embraces the idea of tenure, duration, emolument, and duties fixed by law." Sometimes the exaction of a public oath of office and an official bond are referred to as distinguishing features of a public office." Thus, one who An office exists independently of the person in hired contractual basis not officer. this category fall con sulting engineers,” regularly constituted contrast the occupant officer.” E.

v.

L.

L.

p. of

1

J.

P.

v.

515

S. v.

of

&

L.

70

S.

S.

46

F.

S.

Y.

N.

v.

of

v.

70

S.

S.

S.

A. 46

U.

U.

v.

of

v.

of

v.

of

* *

70

S.

v. 4

v.

5;A

on

v.

ofS.

S.

of

v.

v.

* * *

v.

p.

R.

F.

* * * *

Pekin Industrial Commission, 341 Ill. 312, 173 N. 339 (1930). Health, 141 Ark. 114, 216 McClendon Board W. 289 (1919). Mitchell, 269 U. 514, 46 Metcalf and Eddy Ct. 172, Ed. 384 (1926). Mechem, Co., Treatise the Law Public Offices and Officers (Callaghan McNutt, Lerington Chicago, 1890), Wetzel Fed. Supp. 233 (1933); City Thompson, 250 Ky. 96 (1933); Kosek Wilkes-Barre Twp. School Dist., 110 Pa. 295, 168 Atl. 518 (1933), 170 Atl. 279 (1934). Shields, 190 Cal. 661, 214 Pac. 45 (1923). Logan Mitchell, 269 514, 520, Metcalf and Eddy Ct. 172, Ed. 384 (1926). 166, 169 (1924); McClendon Bowden Cumberland County, 123 Me. 359, 123 City Board Health Hot Springs, 141 Ark. 114, 216 W. 289, 290 (1919). Mitchell, 269 514, 520, Metcalf and Eddy Ct. 172, Ed. 384 (1926); Lynwood, 114 Cal. App. 509, 300 Pac. 50, Pacific Finance Corp. Pac. (2d) 520 (1931); People Watson, 245 Goodnow, Principles 557 (1930); the Administra tive Law the United States (G. Putnam's Sons, New York, 1905), 223. Pool, 187 Cal. 181, 201 Pac. 220 (1921). Coulter

ADMINISTRATIVE

516

LAW

[Ch.

33

The federal courts have been held to a rather precise concept of the term “officer” by virtue of the wording of Article 2, section 2, of the Constitu tion, which says that the President

shall appoint certain specific officers “and all other Officers of the United States, whose appointments are not herein otherwise provided for, and which shall be established by Law: but the Congress may by Law vest the Appointment of such inferior Officers, as they think proper, in the President alone, in the Courts of Law, or in the Heads of Departments.”” Thus, a federal officer, in the strict consti tional sense, had to be appointed by one of the three agencies named. It has been found necessary, however, to give the term “officer” an enlarged meaning, especially when certain law-enforcement agents could not trace their appointment to any of these three sources. Thus the courts, while hesitant to recognize them as officers “in a constitutional sense,” have in practical effect permitted the term to apply to some who would not techni

de

A

is

in

of

bent performing the duties the office. position usurper, for intruder

de

he

is

de

de

is

office

the office

A

title

to

right

or

no is

one whose title

offi

jure and jure officer facto officers. valid, while facto officer one who has holds, even though the physical incum

he

to

The law recognizes both

a de by a

or

by

of

fit

categories,” notably law-enforcement into the original trio department head. cers not appointed the President cally

by

is

de

of

a

of

an

of

to

a

he

or

or

or

of

as

an

facto officer not the same has come into possession some appointment.” Examples claim color election facto officer are: one who was appointed take the place officer under civil super service who was illegally removed and later restored; board

or

of

a

of

an

county elected under unconstitutional act; one who per policeman even though his appointment was irregular.” formed the duties

visors

be

to

he is de

it is

of

be

so

as

or

a

de

bad, his acts are Even though facto officer's title office may public parties valid far the third are affected. The reasonableness this rule will realized when understood that the facto officer

to

of

on

to

as

to

in

good faith with the understanding that acting prop assumes office erly and according law. At the same time, the public and third parties carry regard have learned him the one duly and legally constituted the functions and duties that particular office. Confusion would

is

a

a

contract between

in

accordance with law. Thus, school board and teacher valid even though one

result from impeaching his acts performed

L.

v. v.

L.

L. 31

31

S.

S. 8

8

S.

S.

E.

v.

v.

of

v.

E.

&

of

jº

S.

of 9, 2, v.

S.

#."

S.

Germaine,

S.

v.

States

v.

**

**

S.

11

v.

10

508, 510, 25 99 U. Ed. 482 (1878); United States Ct. 595, L. Ed. 534 (1887). 309, Ct. 507, Ed. 465 (1887); Steele United Soper, States, No. 505, 507, 45 267 U. Ct. 417, 69 Ed. 761 (1925); Maryland 270 U. 46 Ct. 186, 70 L. Ed. 449 (1926). City 413, 414 (1932). Macomb Industrial Commission, 348 Ill. 611, 181 N. Municipal Corporations (Callaghan Eugene McQuillin, The Law Co., 2d ed., revised by William Q. DeFuniak, 1939), Vol. II, sec. 500. People Schmidt, 281 Ill., 21.1. 117 N. People, 122 Ill. 420, 1037 (1917); Leach (1887); City Macomb Industrial Commission, 348 Ill, 611, 181 N. E. 41 1932).

United

Smith, 124 U. 525, 532, Hendee, 124 U. U. S.

OFFICERS AND REMEDIES

Ch. 33]

517

member of the board was a de facto officer.” The public and third parties may deal with a public officer without making special inquiry into the

validity of his title, and in doing so they will be fully protected as to trans actions within the scope and authority of such an officer.” A common-law principle which has been carried over into modern American public law is that the same person cannot hold two incompatible Offices are incompatible when their respective functions are inconsistent or conflicting, and when their performance by a single person would result in such great contrariety and antagonism as to interfere with the faithful and impartial performance of the duties of offices at the same time.

each. In other words, they are incapable of existing or being exercised together by the same person at the same time. The mere physical inability of a single individual to perform the functions of more than one office does Examples of offices which have been de not constitute incompatibility. clared incompatible are: member and clerk of board of education; justice of the peace and constable; justice of the peace and sheriff; representative

in the legislature and governor; city marshal and councilman; and police magistrate and town clerk.” The decisions of the courts in each jurisdic tion will constitute the most reliable guide as to whether specific offices are incompatible.

is

an

as

-

its

or

elected.”

an

If

pointed

or

he

to it,

The acceptance of an office which is incompatible with that previously held results in the vacation of the first office. This is true even though the second office is inferior to the first. If an officer accepts an incompatible office and fails to establish title to when election declared void, cannot regain the former office which another person has been ap to

of

of

of

Illinois city until an such, for the office

as

an

a

is

policeman not “officer” adopted creating the office policeman a

in

be

its

an

For instance,

be

it

to

to of

of

is a

powers, office new one, unknown the common law, duties, functions, and the scope authority must set down some express enactment law, which should speak with sufficient clarity and interpreted with certainty. fullness enable reasonable degree

be

to

specify is

by

it

is

such offices are created name only, without performed, presumed that the office be

ing the functions

to

centuries ago.

If

at

as

at

of

is

ordinance policeman was unknown common law.” Certain present-day offices, sheriff, coroner, such and constable, existed common law several

S.

de

1, v.

E.

N.

43

S.

1,

v.

v.

J.

v.

*

to

of

43

S.

2.

cl. Stockdell, 252 Ky. Mechem, op. cit., sec. 420; Barkley 66, W. (2d) Kenworthy, Tonkin 112 N. Law 274, 170 Atl. 233 (1934). Murphy Industrial Commission, 355 Ill. 419, 189 302 (1934). **

sec.

6,

1,

v.

*

in

is

A

of

v.

** 14

Eaker Common School District, 62 W. (2d) 778 (Mo. App. 1933). McQuillin, op. cit., sec. 500. thorough review the law regarding facto officers Joseph Jarrett, “De Facto Officers: The Validity contained their Rights Com pensation,” Southern California Law Review (March, 1936), Vol. IX, pp. 189–239. McQuillin, op. cit., sec. 469; People Bott, 261 Ill. App. 261 (1931); Barkley stockdell, 252 Ky. 66 W. (2d) (1933). See also United States- Constitution Art. (1933);

ADMINISTRATIVE

518

LAW

[Ch.

33

conducted as at common law. If the legislature has designated powers, func tions, and limitations differing from those at common law, the legislative mandate prevails.”

The Removal of Public Officers The general rule is that where appointment is for a specified term or during good behavior, removal must be accompanied by notice and hearing. The same is true where the law specifies that removal can take place only

for cause. A wide degree of latitude is permitted as to the nature of the hearing required. Unless there is a provision to the contrary, an officer who has been elected by popular vote for a definite term can be removed only by impeachment or by a judgment rendered by a court of law.” In American law there is no such thing as a property right to office, such as was recognized in the common law several hundred years back. An office is not a grant, a contract, or vested interest. Therefore, in the absence of federal, state, or munic constitutional limitations, a legislature—whether

ipal—has the right to change and modify

the conditions and duties attaching violating provisions to offices without those of the Constitution which forbid impairing the obligation of contracts, or without running counter to due process of law as it pe; tains to property. The theory of the law is that offices are created for the public good rather than as personal emoluments,

and it is to the public interest to allow the legislature to modify their duties, salaries and conduct when from time to time it is deemed necessary.”

Removal by the President.—The general rule relative to removals by the President is that the power to appoint a public officer carries with it the power to remove, provided there are no specific provisions of law to the contrary. It seemed pretty well settled under the Myers case that the President

of

possessed

the power

to remove without the advice and consent with the Senate's approval. Presi

the Senate those whom he appointed

dent Woodrow Wilson removed Myers, a postmaster, before the expiration of the latter's term of office. Myers died subsequent to removal, but his heirs sued to recover his salary from the date of the removal until the expiration

of the term, claiming that the Senate's approval was necessary

19 Mechem, op. cit., sec. 502. 29 McQuillin, op. cit., secs. 574–576; Mechem, op. cit., sec. 445; Tonkin v. Kenworthy, 112 N. J. Law 274, 170 Atl. 233 (1934); Er parte Hennen, 13 Pet. 230, 259, 260, 10 L. Ed. 138 (1839); Blake v. U. S., 103 U. S. 227, 231, 26 L. Ed. 462 (1881); U. S. v. Allred, 155 U. S. 591, 15 S. Ct. 231, 39 L. Ed. 273 (1895); Kwim v. U. S., 177 U. S. 290, 293, 294, 20 S. Ct. 574, 44 L. Ed. 774 (1900); Reagan v. U. S., 182 U. S. 419, 426, 21 S. Ct. 842, 45 L. Ed. 1162 (1901); Shurtleff v. U. S., 189 U. S. 311, 316, 23 S. Ct. 535, 47 L. Ed. 828 (1902); Burnap v. U. S., 252 U. S. 512, 40 S. Ct. 374, 64 L. Ed. 692 (1920); Delorey v. Board of Public Works, 110 Cal. App. 362, 294 Pac. 479 (1930). 21 Conner v. Mayor of New York, 1 Seld, (5 N. Y.) 285 (1851); Donahue v. County of Will, 100 Ill. 94 (1881); Attorney General v. Jochim, 99 Mich. 358, 58 N. W. 611, 23 L. R. A. 279 (1894); Wilson v. City of New York, 31 Misc. Rep., 65 N. Y. Supp. 328 (1900); Robinson, 130 Cal. App. 664, list of authorities at 666–667, 20 Pac. (2d) 369, 370 (1933).

º

519

OFFICERS AND REMEDIES

of

of D.

he

officer whose appointment required Senate confir Court, Supreme however, sustained the President.” When mation. The requested the resigna President Franklin Roosevelt came into office

of

for the removal

an

Ch. 33]

in

to

a

of

tion member the Federal Trade Commission by the name Humphrey. Upon the latter's refusal resign office, the President promptly sympathy with the eco removed him, stating that Humphrey was not of

nomic and social ideologies which the President thought should motivate the activities the Commission. The statute creating the Federal Trade

or

of

for removal only for specific

The main

causes.

by

had provided

Commission

to

it

a

as

question statute, place restric law was whether not Congress could, upon power applied specific offices. tions the President's removal The court held that the President could remove Federal Trade Commis

in

a

of

in

of

*

in

sioner only for the causes set forth the statute. But the more recent Morgan case the court upheld the action removing the chief executive Valley Authority activity director the Tennessee for contuminous and

to

net result seems

be

The

to

authority.

a

to

It

at

by

of

to to

that the power the President remove administrative officers has been expanded just beyond include cause those specifically expressed statute.* popular misconcep seems desirable this point again contradict general resistance

to

to

A

as

is

to

of

the removal officers and employees holding civil service The federal civil service law provides for what known among personnel people “open employee the backdoor.” federal does appeal not have the right the Civil Service Commission for review and tion relative appointments.

The Liability

of

to

to

or

he

reinstatement after dismissal except when can establish political, reli gious, racial discrimination. Recent legislation has given veterans the right appeal the Commission under certain conditions.

Public Entities and Officers

no

in

of

do

of

of

The King Can Do No Wrong—The over-all principle governing the suability governmental entities and officers springs from the time immunity honored the sovereign, the principle that the King can wrong. This means that the acts the sovereign, performed his sov

(

is

It

as

(1926).

L.

160

Ct. 869,

79

Ed. S.

55 L.

71

Ct. 21, 602, S.

S.

295

U.

v.

fºrcy.

S.

52, United States, 272 Erecutor United States,

47

U.

*

Myers

23

1614

state.” v.

the

Ed. 1611,

-

for

a

is

in

to

as

as in

be

ereign capacity, cannot questioned upon this basis the courts. that the federal government, well the states, escape liability from Furthermore, sovereign's immunity suit. the extends even the munici pality, when that agency acting governmental capacity, the agent

S.

61

S.

U.

to

of

28

to

of

2"

*

992

v.

**

Morgan Tennessee Valley Authority, Fed. Supp. 732 (1939); 115 Fed. (2d) (1940); petition the Supreme Court for Writ Certiorari the United Appeals for the Sixth Circuit denied, 312 701, States Circuit Court Ct. 806, 85 L. Ed. 1135 (1941). George.A., Warp, Can the King' Do No Wrong National Municipal Review (June, 1942), Vol. XXXI, pp. 311-315, 320.

991,

ADMINISTRATIVE

520

LAW

[Ch.

33

The Suability of the United States.—Congress has

enacted statutes permit types which the United States to be sued for several of claims. These statutes take particular pains to exclude those types of claims “sound

ing in tort.” A tort is a legal wrong in the nature of a personal or property injury independent of contract suffered by an individual, such as an injury caused by an automobile driven by a government employee. A suit for

such tort liability is acknowledged by law only in case of maritime and admiralty tort. Before proceeding to a discussion of a contemporary movement to recognize general tort liability, some attempt will be made to outline the main statutes permitting the government to be sued on other -

types of claims.

all

of

The Court of Claims is a statutory court set up with a specified, limited jurisdiction. It does not possess a general jurisdiction to hear classes

committees receive thousands

of

claims each session, but only

a

of

of

by

is

It

be

said, parenthetically, claims arising against the government. should jurisdiction general against that the for claims the United States exer Congress. These cised the Claims Committees the two houses very small

by

by a

of

of

in

or

by

number are ever allowed. Many such claims have been considered previously department head,” and investigated the Comptroller General,” and some cases the District Court takes the evidence for claims pending before congressional committees. The jurisdiction the Court Claims in

as

In

is

also enjoyed the United States District Court cases not involving general, the suits are concerned with contracts and more than $10,000. business situations arising from governmental operations. The Tax Court a

United States functions to

of

statutory court dealing with claims pertaining income tax and other internal revenue matters, and the Court of Customs deals with customs cases. the

to

to

to

in

to

no

is of a

In

considerable contract jurisdiction extended federal courts, there statutory privilege still sue the United States tort. Exceptions are the admiralty and maritime jurisdictions, referred above, and the power given the Postmaster General settle claims involving spite

personal injury

by

be

to

a

of

a

to

or

property damage not exceeding $500. To meet this latter budget less than $50,000, item the Post Office has needed fact which costly.” may indicate recognition liability tort not too

in

to

of

In

of

by

to

of

In

the Army, Navy, and Marine Corps claims commissions determine and pay certain claims arising out foreign countries. damages caused the armed forces 1945 the Secretary War was authorized settle and pay claims up 1943 Congress authorized the establishment

§

A.

C.

C.

S.

S.

31

§

p.

D.

on

of

$º.

of

* 27

31

2645 Stat. 413, U. 236 (April 10, 1928). 42 Stat. 1066, U. A. 215 (December 28, 1922). Representatives, 77th Cong., 1st sess., Hearings before the Subcommittee House the Committee on Appropriations, the Post Office Department Appropriation Bill Printing Office, Washington, C., 1942), 466. The appropriation for 1946 ,000, was

Ch.

OFFICERS AND REMEDIES

33]

52I

to $500 in times of peace and $1,000 in times of war for injuries to person or property caused by either military personnel or civilian employees of the

War Department.”

Liability of the States.—The immunity of the states from suit is based upon the Eleventh Amendment to the Constitution of the United States, which was enacted immediately after the Supreme Court had established such liability in the case of Chisholm v. Georgia.” In that instance, Chis holm, an executor of a British creditor, brought suit against the State of Georgia for an alleged illegal confiscation of property during the Revolu

tionary War. Notice was sent by the Supreme Court of the United States to the defendant state requesting the latter to appear and answer to the charges. Ignoring the notice, the defendant contended that the federal courts have no jurisdiction over suits against a “sovereign” state. The new Constitution was then construed as giving the Supreme Court juris

of

of

by

of

its

diction in this case and judgment by default was accordingly awarded the plaintiff. The decision aroused so much controversy and antagonism that an amendment to the Constitution was almost immediately proposed and ratified by the states, safeguarding the state against similar actions there after “by Citizens of another State, or by Citizens or Subjects of any For eign State” or by own citizens. Tens millions dollars worth

in

of

be

to

-

member state

sued, but such

implied from

author

substantive right

a

be

a

in

no

to

a

sue

in

by

be

the Supreme Court.” own voluntary.consent

uncertain terms, and

procedure.” While there undoubt liability statutory increase the the states enact probably accurate say that the broad liability admitted the

New York,

unique.

of

up some sort

described below,

is

to

by

to

of

by

is

administrative

as

state

is

ment,

of it

edly

the states foreign sovereign

expressly given and cannot

established tendency

a

be

to

ity must

its

the Federal Union state may give

A

of

of

sion reemphasized the immunity specifically denied the right

of

of

of

a

in

a

attempt collect on these obligations means test foreign sovereign power case wherein the would sue the state the United States Supreme Court, the Principality Monaco constituting Mississippi the defendant. The resulting deci the plaintiff and the State

of to

1934, there was

by

an

a

to

of

Southern states, held

in

of

European investors, have been default approach for decades. Numerous devices and avenues have been uti bring settlement, usually lized about but without result. Finally, bonds

Several states have set by

of

§§

Pacific

Oil Co., 87

(2d)

972 (1937).

L.

Ct. 745,

78

t

S.

54

U. S.

1

of

v.

Sunset

L.

to

2

Cattle Co.

F.

Berryessa

v.

Principality (1934).

**

1282

224; (1943), 223b (1945). 224d Georgia, Dall. 419, Ed. 440 (1793). Mississippi, 292 313, Monaco State

A.

of

S.

* *o

2931 Chisholm

v. C.

U.

claims, but the actual formal procedure for hearing usually subsequent appropriation settlement must await the legislature. Many state legislatures have been deluged with private claims bills intro

Ed.

ADMINISTRATIVE

522

LAW

[Ch. 33

duced by members at the behest of their constituents. It is partially as a defense against that practice that some states have set up claims boards consisting of constitutional officers such as comptroller, auditor, and treas urer, ex officio.

-

It

would seem that the State of New York is the only one to have developed a Court of Claims, functioning in a judicial capacity. It is

fully

com

posed of three judges, appointed by the governor for terms of nine years, with annual salaries of $10,000. A provision for additional judges as- needed has been utilized.”

The jurisdiction of the New York Court of Claims is very broad.

In

to the typical business and fiscal claims, the legislature recog nized a very general and far-reaching tort liability in 1929.” The follow ing types of cases are enumerated for purposes of illustration and should not be considered as exhaustive. Going casually through the digests one

addition

notes a claim for damages sustained through collision with unlighted machinery owned by the state and parked on a shoulder of the road.” An inmate prison laborer asked for damages for injuries to his fingers from unguarded machinery.” Another party sought to recover damages result ing from an automobile skidding on a defective highway.” The Court of Claims was asked to determine the title and value of land to be taken for

park purposes.” The activities of other state jurisdictions in the direction of a separate claims commission or court to hear and settle the claims of individuals and corporations are worthy of consideration. In the State of Michigan, for instance, there has been a movement to establish a Court of Claims patterned after the New York model, while at the time of this writing, Nebraska seems to have devoted considerable attention and re search to the problem.” The liability of municipal corporations, discussed below, recognizes a distinction between the corporation acting in a governmental capacity, and in a proprietary capacity. The general rulé is that the corporation is immune from suit in the former but not in the latter capacity. The general assumption has been that this distinction has not applied to the states, but a recent decision has established state liability for a proprietary activity

º

under the Federal

* New

York

in New York IV, p. 13.

10.

State

Employers' Liability Act to the Belt Line Raiſway of Constitutional

Convention Committee, State and Local Government Convention Committee, Albany, 1938), Vol.

(New York State Constitutional

1929, Ch. 467, revised by Laws of 1939, Ch. 860, as amended by Laws

of

** Smith v. State, 146 Misc. 336, 262 N. Y. S. 154, affirmed 240 App. Div. 752, 295 N. Y. S. 981 (1933). 3° Scalia v. State, 147 Misc. 622, 264 N. Y. S. 327 (1933). *7 Killoran v. State, 155 Misc. 26, 278 N. Y. S. 659 (1935). Raquette Falls Land Co. v. State, 156 Misc. 227, 281 N. Y. S. 476, affirmed 247 App. Div. 837, 286 S. 606 (1935). See The Nebraska Legislative Council, Report No. 17, Settlement of Claims Against Department, Nebraska Legislative Council, Lincoln, August, 1941), State (Research

|

*

*

PP.

Nº.

Ch.

OFFICERS AND REMEDIES

33]

523

its

as

in

of

its

San Francisco. This entity, operated by the State of California, owns no own, but merely hauls the cars cars of the various carriers over own tracks between the railroad terminals and the docks. The state was held liable for injured workmen when performing such activities, the municipalities.” same manner

of

Municipalities.—The liability

municipal

corporations

so-called govern These include those governmental

of

has long been recognized for certain classes

In

of

Liability

cases.

In

to

it is

it

of

of

as a

is

no

liability. mental functions there operations which the city conducts local arm the state. thus administering state functions, partakes the state's sovereignty the liability. extent that immune from damage Governmental functions

or

in

engaged private capital. These will include are can generation electricity, the and distribution the operation street rail way, water supply. Of course, controversy frequently arises given function governmental corporate, whether the case

of of to

as

a in

or

a

is

or

or

as

a

of

of

in

be

commonly

by

or

is

in

is

in

as

of

police, fire, and education. include primary operations the city such On the other hand, liability well established those cases where the city engaged enterprises which are commercial nature, which

Hence, there will number way activities classified one some courts and the opposite others.” present tendency undoubtedly extending The the direction munic ipal liability. California statute recently created such liability cases be

garbage disposal.

A

in

is

in

of

by

by

sewer operation

motor vehicles injure citizens. The Supreme Court injury judgment against city for citizen result

ing from operation

a

to

an

a

a

Florida affirmed

of

municipal

where

a

of

its

in

of

of

on

of

fire department. The rea soning was based the concept that the adoption the council-manager government city predominantly corporate nature, form makes the governmental its ministerial and commercial operations overshadowing the motor apparatus

functions.” to

to

or

to

is

It

injury.”

to

of

very difficult

to an

careless and negligent action, but without malicious evil unlawful action with willful intent

intent; malfeasance, consisting cause

is

of

to

of

a

embodying

is a

of

customary classify the acts Personal Liability Officers.--It which may lead the liability officers into three categories: nonfeasance, act; misfeasance, consisting failure act when there clear duty

lay down any far-reaching

gov

rules

.

in

is

of

of

2,

4,

1,

3,

of

of

v.

p.

L.

** **

v.

S.

U.

L.

L. 80

C.

57

S. S.

56

in

in

4,

L.

in

**

of

R.

L. S. S.

T.

v.

v.

Y. &

S.

40

California, 297 U. 175, U. Ct. 421, Ed. 567 (1936); Co., 226 U. 286, 33 Union Stock Ct. 83, Ed. 226 (1912); Belt Ry. of Chicago U. S., 168 Fed. 542, 22 A. (N. S.) 582 (C. A. 7th Cir., 1909). liability governmental agencies An excellent discussion the background con California,” Southern California Law tained T. David, “Municipal Liability Tort pp. 269–300. The same author continues the discus Review (May, 1933), Vol. VI, No. pp. pp. 48–89; (January, 1934), No. sion ibid. (November, 1933), Vol. VII, No. 214–227; (March, 1934), No. (May, 1934), No. pp. 372–467. pp. 295–324; City Tallahassee, 84 Fla. 634, 94 So. 697 (1922). Kaufman T. David, The Tort Liability Public Officers (Public Administration Service, Chicago, 1940), 28.

ADMINISTRATIVE

524

LAW

[Ch. 33

erning the liability of public officers. The generalizations attempted below should be regarded as weather vanes or trends subject to many exceptions in their application in the forty-nine judicial jurisdictions in the continental

United States. The law first makes a distinction between discretionary and ministerial duties, and the rule is that liability does not exist while performing a high discretionary act but may exist for the performance of a ministerial duty. Therefore, high officers dealing with important policy matters are practically never held liable whether they be members of the legislative, judicial, or executive branches. The fact that members of city councils are sometimes held liable is due to the fact that these bodies exercise a great many admin istrative activities which are essentially ministerial in nature.* The question of the liability of both executive and judicial officers was tested in two important federal cases in 1939. At attorney, disbarred

District Court of the District of but failed of recovery.** In the other case the officers of a closed bank sought to recover from the Comptroller of the Currency for his alleged misuse of discretion in approv ing the sale of the bank's assets, but without avail.” This latter case is really a series of cases, in which the plaintiff evidenced extreme persistence. through

Columbia,

action of the judges sued

these

of

individuals

the

for

damages,

The opinions in each of these cases were handed down by the Court of Appeals of the District of Columbia, and the Supreme Court refused a hearing with the familiar negative gesture of certiorari denied. Hence, the principles in the decision can probably be considered as though pro nounced by the highest court itself. The court emphasized the fact that it has long been recognized that the public interest requires the protection of officials in the performance of their official acts. Hence, a public officer is not liable for an action if he falls into error in the performance of a discre tionary act, or one which is not merely ministerial. The purpose of this rule is secondarily for the protection of the officers, and primarily to insure

That is why judges and other public officials are not subject to harassment by retaliatory suits for injuries alleged to result from the performance of official duties. In 1944 the Supreme Court denied the right to recover taxes illegally paid by suit against the tax officers or departments of the states. The Eleventh Amendment cannot be circumvented in this manner.” a fearless administration

of

the law.

** Orme W. Phelps, “Personal Liability of Councilmen for Official Acts,” Public Man agement (March, 1941), Vol. XXIII, pp. 75–80. ** Booth v. Fletcher, 69 App. (D. C.) 351, 101 F. (2d) 676, certiorari denied, 307 U. S. 628, 59 S. Ct. 835, 83 L. Ed. 1511 (1939); Fletcher v. Wheat, 69 App. (D. C.) 259, 100 F. (2d) 432, certiorari denied, 307 U. S. 621, 59 S. Ct. 794, 83 L. Ed. 1500 (1939). Cooper v. O'Connor, 70 App. (D. C.) 238, 105 F. (2d) 761 (1939); Cooper v. O'Connor, 107 F. (2d) 207 (1939), A. D. C. (1939); certiorari denied, 308 U. S. 615, 60 S. Ct. 263, 84 L. Ed. 514 (1939). 47 Ford Motor Co. v. Department of Treasury of Indiana, 323 U. S. 459, 65 S. Ct. 347, 89 L. Ed. 372 (1944); Great Northcra Ins. Co. v. Read, 322 U. S. 47, 64 S. Ct. 873, 88

*

L. Ed.

1121

(1944).

§ Ch.

OFFICERS AND REMEDIES

33]

525

The citizen is not without relief against federal officers. In the begin ning it was not possible to sue federal officers in federal courts because the common-law procedures were not available, except to the extent that they had been embodied in federal statutes and the Constitution. The result was that the common-law remedies did not automatically apply. This re sulted, in the early years of the Constitution, in no formally. recognized mode of action against customs officers. The remedy which was evolved

provided for a suit against the officer in the state courts, using the action of trover or assumpsit. The defendant would then set up a defense of federal jurisdiction and the case would be transferred to the federal courts, the government indemnffying the officer for the amount of the judgment.

A

-

employing his subordinates

is

not negligent

in

public officer who

is

A

all

statutory method of review has now been substituted for actions against the collector of the customs. The old form of action still applies to internal revenue and postal cases. The point is that actions against these federal officers are merely formalities for holding the government to account, for judgments.” it reimburses not

or

suits against officers depends quite naturally execute judgment,

in

being able

to

prospect

of

The number

of of

to

tion this rule exists, however, when the superior directs, encourages, personally cooperates therein.” ratifies the acts the subordinates

or

of

a

of

be

to

be

to

to

ordinarily responsible for their acts. The master and servant rule does not ordinarily apply the relationship between public officials and their depu ties or other immediate subordinates. Both the individual officer and his respon subordinates are thought “servants the law,” each having sibility which may some degree independent the other. An excep

upon the

other words, upon whether

in

do

he

levied.

Garnishment

laws and

of

a

at

a

of is

is

be

it

collect from the salaries such persons individuals. The result that suits tend directed those who unquestionably tendency toward must post official bond.” There to

to

its

so

of

of

recognition recognize its the responsibility the government itself own liability for the negligent act officers which cause injuries liability individuals. This has become extensive that many local govern

19

p.

L.

F.

72

C.

D.

v. 63

of

v.

D.

of

L.

9

C.

S.

D.

C.

S.

*9 S.

i

v.

v.

V

C.

F.

of

;

v.

v.

R.

L.

3

v.

of

E.

49

*

Freund, Administrative Powers Over Persons and Property (University Chicago Press, Chicago, 1928), pp. 242-244. Johnson, 225 N. Y. 39, 121 Rodge, 214 Fed. 283 (1914); Dowler United States N. E. 487, A. 146 (1918) Corliss Van Ducer, 132 Ore. 265, 285 Pac. 253 (1930); Freund, op. cit., pp. 252–253; Fidelity and Casualty Co. Brightman, New York Broderick, 146 Misc. Rep. 848, 53 (2d) 161, 165–166 (C. A. 8th, 1931); catch Wheeler, 130 Cal. App. 475, 262 N. Y. Supp. 295 (1932); Wolfsen Pac. (2d) 1004 (1933); see Standard Nut Margarine Company Mills, Andrcw Mcllon and Ogden App. (Supreme Court, 339, (N. S.) C.) (2d) 557, 293 605, 55 U. Ct. 124, 79 Ed. 113 (1934). David, The Tort Liability Public Officers, 87.

,

a

resources against which judgment can other exemptions usually make difficult

to to be

is

as

if

the plaintiff can get his money wins the suit. Most public officers and employees, general, the case with salaried workers not possess

©

-

ADMINISTRATIVE

526

mental

protect

bodies

by

themselves

LAW

[Ch.

insurance,

especially

automobile -

liability.

Extraordinary

33

Remedies

It is necessary

and desirable that there be some means of control over the administration in the carrying on of governmental functions, so that effi ciency be maintained and private rights of individuals be protected. The administrative law encompasses three methods of control: the administra tive, the legislative, and the judicial. Ordinary judicial machinery is

in or

of

administrative action provide extraordinary legal reme

em

to

in

in

of

provide judicial con-

governmental

the individual

.

of

The purpose these extraordinary remedies trol over the administration the exercise and furnish the means and manner which

to

effective. its is

the judicial control

be

these cases, then, special remedies must

be

to

of

of

to

the finality

necessary is to

ployed

if

In it

certain proceedings makes dies against such action.

the control the application

by

of

ordinary remedies and criminal law. Further, the rule use

the courts law by the the ordinary private

of of of

are not subject

as

the administration

to a

in

its

employed in providing a judicial control over administrative action. The ordinary rules of the private and criminal law are applied to the administra large number tion and officers. However, cases the activities

functions,

citizen can

to

of

by

private suit

or

modify

the

In

of

a

of

be

even

by

or

or

common law remedy; provision whatever may provided legislation. These extraordinary part system remedies are the common-law remedies. some juris dictions these writs have been abolished, and statutory orders have been legal remedies are certiorari, substituted for them. The extraordinary exclude

recognize,

no

it

a

or

of

a

of

of

of

statute, administrative tribunals are created although the common law and equity have provided large part the against illegal powers. remedies the nonexercise use those The statute remedy; may expressly creating the administrative power may provide

Most

the powers

provided

by a

of

adequate remedy law courts, and where against the offending administrative officer.

is

no

of

or

in

by

protect his personal and property rights from illegal and oppressive inter pro ference the government action. These peculiar writs are used illegal orders tect the rights the individual against the erroneous administrative agencies which may enforce their decrees without the sanction

writ,

is as in

business character.

A

letter

by

formal

a

means

of

breve,

is a a

Latin,

as

to

mandamus, injunction, habeas corpus, quo warranto, and prohibition. These prerogative writs. The word “writ,” remedies are also referred

law.

or

a

court

of

a

in

appear

of

of

compelling him

to

or

erty,

of

authority hereinafter formal writing issued law and employed for the purpose acquiring jurisdiction person his prop used,

OFFICERS AND REMEDIES

Ch. 33]

527

Quo Warranto and Prohibition.—The common-law writ of quo war ranto and the information in the nature of a quo warranto are civil actions. Quo warranto is used to test the title to public offices. It may be employed

its

by one claiming public office to try his title against a rival claimant.” As a corporation is a creature of the state, the state possesses the right through the medium of the writ of quo warranto to prevent the unlawful exercise a

of

an

a

is

A

municipal corporation person within the chartered powers.” meaning statute providing for action against any person who usurps

of

it,

or

or is to a to

be

of

taxpayer

In

to

an

at

of

is

that the information must filed with the attorney general. the court the instance the The interest always sufficient file, but individuals must establish

of

of

the state interest, that

be

The general practice

permission

is

general.

of

is

in

to

as

in

be

a

to

it

be

"

a

or

of

or

unlawfully holds exercises franchise within the state.” By means quo warranto, can ascertained who has legal title public office. One who claims such title may proceed establish usurper possession may dislodged. Quo warranto cannot used employments distinguished from offices. The action test the right civil, not criminal, but conducted the name the state the attorney

usually being sufficient.

a

of

of

to

to

he

is to

determine the right

of

or

citizen

by

at

of

to

it

a

suit sheriff, the defendant the office alleged which had usurped, and establish the right the plaintiff plaintiff quo that office the writ warranto was used. The and defend ant were candidates for the office of sheriff an election. The canvass of brought

by

by

of

a

of

to

of

of

a

of

a

in

the canvass

tie

in

the missing return. The votes shown this list were counted for the candidates respectively, and was thus produced. On the face the returns made the supervisors, majority list, exclusive this there was one for the plaintiff. As result the canvass, the board declared there was no choice candidate used

place

of

The tally-list was

as

of

by

of

of of

supervisors, and when that body the returns was made the board met, the returns from one precinct the county had not been received. tally-list, voters, The duplicate list and list attached thereto kept and inspector precinct required law, were sent for. retained the the

a

the use

of

vote

by

create

tie

power

a

had

to

supervisors

no

of

of

is

a

on

special election. At this election the the following day ordered defendant was elected and qualified, which the usurpation complained of. supervisors calling The court decided that the order the board special election, and the election held under the order, were void. The

and

the duplicate

31

v.

A.

R.

L.

v.

31

51 v.

E.

N.

7

v.

77

v.

58

v.

of

v.

C.

of

75

24

of

v.

v.

28

92

of

v.

*

v.

**

Y.

N.

v.

*

Brooklyn, 120 Stewart, 536, 787 (1886); People (1901); Peterson Morse, 48 Cal. App. 428, 192 Pac. (1920); Hannett, Elliott Van Delinder, Cal. App. 716, 247 Pac. 523 (1926); Asplund Smith, N. M. 641, 240 Pac. 1074, 573 (1926); Tadlock Pac. (2d) 708 (N. M.) (1934). District, (1909); People Drainage People 373, Sacramento 155 Cal. 103 Pac. 207 Merchants Protective Corp., 189 Cal. 531, 209 Pac. 363 (1922). City Linden, People Oakland, Cal. 611, Pac. 807 (1891); People Town City Westmoreland, 107 Cal. 94, 40 Pac. 115 (1895); People A. D. 779, 27 Pac. City Whittier, 133 Cal. App. 316, (2d) 394 (1933); People Pac. (2d) 219 (1933). Fitzsimmons

132 Cal. 283, 64 Pac. 285

ADMINISTRATIVE

528

LAW

[Ch. 33

of

of

of

as

the votes upon the face

action

elec

such special

of

is

to

tion who did not have the majority subject made the supervisors,

the result

an

One who was declared elected to

and void.

so

tie

tally-list in place of missing regular returns. A special election for the declared, was without authority office of sheriff, based upon a vote the

quo warranto for

returns

usurpa to

It

writ issued

a

to is

an

superior court prevent the latter from exceeding its jurisdiction.

Prohibition inferior court

extraordinary

by

tion of the office.*

an

may

in

it

a

or

no

it

its

a

in

deny the court jurisdiction matter over which has control may prevent the court from going beyond legitimate powers matter

it

their nature, jurisdictions quasi-judicial func or

judicial

a

re

to

to

an

to

a

to

of

physician furnished

an Industrial Commission pay money award insurance carrier injured employee, them, them, either

or

by or

employer

its

a

of

what constitutes the exercise suit involving the power

or

of

quasi-judicial

of

or

of

judicial

acts

in

to

is

the

jurisdiction under the

that the Commission did not have terms the state Workmen's Compensation Act and seemed prohibition may issue the principle that writ restrain judicial body from attempting judicial powers beyond

reaffirm

quasi

or

a

to

its

go

to

a

of

to

of

court decided

to

as

quire

In to

differ tions.”

an

performance

is

of

it

in

prohibition has only occasionally which has jurisdiction.” The writ been employed against administrative tribunals. While stated that judicial prohibition only used restrain the exercise functions the

usurp

its its

be

to a

of

restrain the state banking board from unauthorized v.

v.

v.

v.

City

Y.

144 Va. 240, 132

E.

Commission

Virginia,

S.

Industrial

of

* 58 ;”

(1932). Bce Hive Mining Co. 177 (1926).

v.

v.

E.

S.

v.

v.

E.

v.

S.

v.

;

E.

77 v.

*

P.

19

v.

v.

5

v.

v.

Y

v.

v.

**

v.

E.

v.

E.

v.

95

E.

E.

67

v.

Stewart,

pro

132 Cal. 283, 64 Pac. 285 (1901). See People Yonkers Police Hotz, 78, 174 N. Y. 450, N. Am. St. Rep. 596 (1903); People 327 Ill. 433, 158 N. 743 (1927); Smith State car rel. Canary, 188 N. 576 (Ind.) (1934); Greening car rel. Rowe Barnes, 355 Ill. 99, 188 N. 805 (1934). McKamy Bakersfield, 26 Cal. App. 315, 146 Pac. 910 (1910); Baines Zemansky, 176 Cal. 369, 168 Pac. 565 (1917); Van Hooscar Railroad Commission, 189 Cal. 228, 207 Richmond, 131 Misc. 588, 228 N. Supp. 172 (1928); Western Pac. 903 (1922); Burke Pipe and Steel Co. Industrial Accident Commission, 119 Cal. App. 19, Pac. (2d) 920 (1931); Dunn Justice's Court, 136 Cal. App. 269, 28 Pac. (2d) 690 (1934); State Medler, N. M. 252, 142 376 (1914). Milliken, La Croir Fairfield County Commission cris, 49 Conn. 591 (1882); People Fuller, 172 Mich. 289, 137 N. W. Triangle Land Co. 35, 185 N. Y. N. 872 (1906) 683 (1912); Jamieson State Board of Medical Evan incrg, 35 Okla. 685, 130 Pac. 923 (1913); Beavers Hinkle, Armistcad, 156 Ga. 833, 120 526 (1923). But see State 130 Wash. 419, 227 Pac. 861 (1924); Bee Hive Mining Co. Industrial Commission, 144 Roosevelt, 144 Misc. 687, 259 N. Supp. 355 Va. 240, 132 177 (1926); Donnelly

**

People Commissioners,

to

priate remedy

a

of

an

in to

be

in

of

a

of

in

to

a

A

unauthorized judicial powers.” similar decision was upheld where juris attempted Public Service Commission act matters exceeding juris diction.” And where state board medical examiners exceeded requirements law, prohibition diction not accordance with the essential was held the proper remedy.” The proceeding under state law for prohibition order the nature writ was found the appro

v.

S.

v.

v.

of

Maltbie, 287 N. Y. 104, 158 Misc. 439 (1936). New York Rowlett, 125 Fla. 562. 170 So. 311 (1936); see also State er State car rel. Sbordy Rowlett, 125 Fla. 577, 170 So. 317 (1936). rel. Riley

Ch.

OFFICERS AND REMEDIES

33]

529

ceedings for the removal of a bank official.” Finally, a writ of prohibition was obtained to prevent a board of election commissioners from printing on an official ballot the name of a candidate for state senator.”

writs of certiorari, injunction, and mandamus are the generally most used administrative law remedies. The writ of certiorari is also referred to as the writ of review. The writ of certiorari, or review, its

Certiorari.-The

or

it

it,

in

of

of

all

to

or

as

an

a

functions from a procedural standpoint as name indicates. When superior court, one, contrasted with inferior issues the writ, directs certify prepare and for the inferior court administrative tribunal ward the entire record the proceedings, including the evidence presented the inferior tribunal, for purposes review. The reviewing superior

to

it is

to

or

is

of

a

an

to

to

by a

a

it

is

It

a

or of

if

in

its

court will then examine the evidence and proceedings which are before and determine whether the administrative agency has rendered decision law, so, or order accordance with the and has not done annul the Thus, judicial decision. the writ affords means control over the actions of the administrative commission, board, officer and corrects administra generally stated that tive error and illegality. writ certiorari judicial body writ issued inferior tribunal officer exercising judicial functions, ordering the one “certify” whom directed of

though these administrative

of

law.”

by

authorities are not courts

of

of

it

by

of

be

is to

of

a

of

transcript the issuing superior court the proceedings and the record purposes issuing the inferior tribunal which reviewed. For the the writ, has been repeatedly determined courts law that functions certain commissions, boards, and officers are “judicial functions,” al

be

to

or

an

is

is

It

statute (in some states the writs have been abol statutory ished and orders substituted) that the writ issued only when inferior tribunal, board, officer exercising judicial functions has usually provided

is

no

be a

tribunal The writ

remedy available.

of to of

ordinary

manner not right

or

a

to

(3) there must

no

court, and

be

a

appeal

(1) the administrative tribunal must have acted designated power and authority, (2) there must higher administrative the complaining party

in

of

in

within

by its

be issued:

or

of

exceeded the jurisdiction such tribunal, board, officer and there no appeal, nor judgment any plain, speedy, adequate the the court and remedy. Thus, three concurring requisites are essential before the writ will

30

v.

of

v.

of N.

in

E.

S.

v.

v.

v.

E.

Y.

v.

v.

of

v.

Y.

v.

of v.

E.

53

cr

S. 29

S.

9

19

v.

v.

v.

Y.

** * N.

White, Requa N. Y. (2d) 863, 170 Misc. (1939). Remmers, 325 Mo. 1175, State er rel. Bates W. (2d) 609 (1930). Wash, 312, Bishop, Hoffman, Lewis Pac. 165 (1898); People rel. Smith 462, 60 N. Supervisors, 166 187 (1901); Imperial Water Co. Board 162 Cal. 14, 120 Pac. 780 (1912); State car rel. Jacobson Commissioners, 47 Mont. 531, Board McDermott, 169 App. Div. 755, 155 N. 134 Pac. 291 (1913); People er rel. Browdy Supp. 323 (1915); Suckow Board Medical Eraminers, 182 Cal. 247, 187 Pac. 965 (1920); People er rel. Dawley Wilson, 232 N. Y. 12, 133 N. 45, rearg. denied 232 540, 134 N. Commissioners, N. 563 (1921); State er rel. Sisney Board 27 Short, 199 Iowa 147, 201 N. M. 228, 199 Pac. 359 (1921); Ebert W. 793 (1925); Caldwell, 310 Mo. 397, 276 Cogs State ear rel. Davidson W. 631 (1925); Norman well, 82 Cal. App. 159, 255 Pac. 251 (1927).

LAW

ADMINISTRATIVE

530

[Ch.

33

certiorari, then, lies to an administrative agency exercising judicial power, commanding it to certify the record of a given case to a superior court for Judicial review under a writ of certiorari is confined to the record The inquiry is devoted entirely to ascertaining whether the decision is supported by the record. If it is not, the proceeding and judgment are quashed. review.

the hearing below, no new evidence being introduced.

in

A

in

a

to

an

by

of

of

all

its

its

writ of certiorari was sought to review the action of the Industrial findings and award against the peti Accident Commission in making tioners and discharging the defendant company and insurance carrier liability. The petitioners are the widow and son from salesman injured employ company, fatally the the defendant who was when struck automobile. The petitioners are seeking recover compensation under the Workmen's Compensation Act. From the testimony presented of on

the employer the night before.

ing across the street

was struck

he

a

at

he

In

went across the his equipment. return automobile, receiving injuries from part

of

case, which was

a

brief

an

leave his

Before proceeding by

street

he

to

to

he

at a

he

by

In

to

he

to

of

at

the hearing, the Commission found that the deceased salesman had re ported for work proceed the day was killed and had been directed another plant the defendant employer. accordance with custom approved employer, stopped the restaurant for coffee. Then go for his overcoat which announced his intention had left the office

which he died.

its

in

of

The Commission found that the evidence did not establish that the de ceased was performing services arising out and occurring the course of

at

as

a

to

at

of

the accident, and issued order denying certiorari, On writ the state supreme presented court reviewed and examined the proceedings and evidence hearing the before the Commission. The court decided that under the

of

his employment the time compensation petitioners. the

to

in

of

to

a

in

he

of

be

it

certiorari

board which resulted

the

the petition for filed the superior court which was prayed that the proceedings before the the order for the revocation his license, re

Thereafter in

a

writ

of

state was revoked.

in

license

proceeding instituted before the Board Medical Examiners, (plaintiff) practice medicine and surgery the appellant

of

a

In

of

in

of

of

of

circumstances and facts this case the injuries deceased were received employment they compensable. the course and are The court annulled the order the Commission denying compensation the petitioners.”

*

of

a

of

a

of

of

viewed and the order annulled. The appellant contended that one the members the board was prejudiced against him and since the vote legal order revocation, qualified that member was necessary for

v.

v. 28

N.

E.E.

et

v.

et

al., Petitioners Leffert Industrial Accident Commission, Hormel and Company al., Respondents, 219 Cal. 710, Pac. (2d), 911 (1934). See People Public Service Commission, 195, N.Y. 157, 88 N. 261 (1909); Metropolitan Life Insurance Company Conway, 252 N. Y. 449, 169 642 (1930).

OFFICERS AND REMEDIES

Ch. 33]

53I

quorum was not present, and the board was without jurisdiction to act. He further contended that none of the evidence received by the board on the hearing of the charges against him was properly admissible.

On a writ of certiorari, the court reviewed and examined the proceed ings and evidence as presented before the board at the hearing which resulted in the revocation of his license. The court concluded that a mem

of the board who is biased or prejudiced,

on

by

of

of

appeared that none the evidence received the board properly charges against appellant the the was admissible. Therefore, the court concluded, the board was without jurisdiction make

in its

to

of

it

the board, the hearing

of

an

a

as

in

sit

of

as evidenced by his activities during preceding hearing, in the matter or the is not for such reason dis qualified to such matter member the board. The court further decided that from examination the record the proceedings before

ber

appellant

to

have the state courts, and beginning that the latter may limit be

there are some recent indications

its

frequently

as

decisions nearly

administrative

as

a

of

to

practice medicine and surgery revoking the state. The order the board the license was annulled.* The federal courts have not used certiorari as means of review of

of

order revoking the license

an

by

a

complete review

of

nonexercise

powers

administrative

or

the exercise

certiorari

a

the writ

of

of

or of

Mandamus.-By means judicial body

of

use.95

of

is

of

of

is

if

is

be

if

lie

is

or

a

is

complete review tribunal effected. Where reexamination admin unnecessary desired, istrative action not the writ mandamus usually employed. Certiorari will the act an administrative tribunal “judicial,” and mandamus may used the act “administrative.”

to

is

of

a

left

to

no is

which nothing

A

or

an

respect

to

a

one

in

terial duty

is

as

of

in

of

of

certiorari and mandamus are mutually exclusive. The writs are issued the discretion the court. The writ mandamus used purely ministerial duty which the law espe compel the performance cially enjoins duty resulting from office, trust, station. minis The remedies

discretion. Ministerial

by

a

to

he is

do

to

an

is to

of

in

of

in

judgment relative nature and involve selec reaching conclusions importance. The func tion between alternatives compel something required tion the writ officer which functions are routine

Pac.

119

t et

of

a

-

Equalization, Equalization,

55

State Board

6 6

California

al. al., 93 Cal. App.- 65, 268 Pac.

fof

Company

(1936).

Medical Examiners Exami v.

(2d)

of of

a

to

If

*Standard Oil

Board of

pp Appellant

v.

*

59

Dyment, 1073 (1928).

to

be to

a

be

to

is

to

is

of

by a

is

,”

. . .

to

er

law do. Although mandamus cases are usually entitled “People rel. (by the relation of) individual, private the action and the official duty involved one owed that person. The purpose mandamus legal right but not establish enforce one already established. The duty sought enforced must ministerial only, and not within the respond defendant's discretion. defendant refuses writ man

Cal. (2d) 557,

ADMINISTRATIVE

532

LAW

[Ch. 33

damus, he may be compelled to obey by contempt proceedings, and he is generally liable in damages to the injured party. In a proceeding in mandamus, it was sought to compel the secretary of state to accept

for filing

of amendment to articles of incorpora As originally incorporated the corpora

a certificate

tion of the petitioner corporation.

tion had seven directors. Thereafter and in compliance with the statute, the corporation filed with the secretary of state a certificate purporting to increase the number of directors to nine. The secretary of state refused to accept the certificate of amendment for filing. The company petitioned the court for a writ of mandamus to compel the acceptance of the certificate for filing. The court granted the petition for a writ of mandamus and de cided that the duty to file amended articles of incorporation is one which the company can compel the secretary of state to perform by means of a writ of mandamus."

A writ of

mandamus was sought to compel the civil service commis the answers to certain questions in an examination and the petitioner's rating. The plaintiff, or petitioner, and other

sioners to change to advance

members of the police department were examined for the purpose of estab lishing a list of persons eligible for appointment to the position of captain of police. A “key” for rating the answers was prepared by examiners ap

key. The commission changed one the answers contention, change tioner's but declined make

in

by

the answers

as

three questions

of to

to

petitioner objected

it.

to

all

pointed by the civil service commission, and after the examination was participants therein were invited inspect held After such inspection, fixed

the rating

accordance with

peti

in

to

on

a

of

the commission.

leave examinations

the hands

of

the action

in

to

courts

is

injury from

legal

the part

of

The

tendency

on

tioner had suffered

no

of

to

of

change the members petitioner's position eligible and alter the list. The court examined the questions and answers and concluded that there was sufficient basis for the decision the commission, and that the peti

mandate complained answers

compel the commission and

its

to

to

of

to

of

writ

of

on

a

to

the other two answers. Petitioner was placed number twelve the list those eligible for appoint captain. The petitioner then applied ment the position the court for

to to

mandamus will not change the answers the questions

lie

the commission relative to

-

missioners

to is

in

of

are binding, and the decision question final. Therefore,

of

made within the provisions

to

Rules

or

the commission.

so

vested

in

by

of

of

of

to

boards whom they have been entrusted. The general control examinations, including the making civil service rules considered advisable the commissioners for conducting such examinations, was members

the law

the examination

compel

the

advance

the

com

peti

of

of

1

C.

C.

S.

1

v.

J

v.

24

v.

66

Jordan, Secretary State, 218 Cal. Pratt-Low Preserving Company, Petitioner 577, Pac. (2d) 457 (1933). See Tate North Pacific College, 70 Ore. 160, 140 Pac. Ickes, (Supreme Court, D. 743 (1914); Warren D. (N. S.) C.) (1934).

OFFICERS AND REMEDIES

Ch. 33]

533

or

is

of

injunction

equity enjoining

order

prohibitive writ issued

an

of

by a

Injunction.—A writ

an

or

is

of

lie to

give the proper place on tioner's rating. However, mandamus would established, for the list the eligible list after the result the examination definitely follows the markings grades given those examined."

of

is a

It

of

in a

as

or

court administrative tribunal officer from taking action. The remedy functions negative manner contrasted positive general principle with the characteristics mandamus.

of

a

by

to

or

of

of

at

of of

is

equity jurisdiction that equity will not grant relief where there plain, speedy, and adequate remedy Supreme law. The Court the District injunction restraining heads Columbia can issue writs federal depart personal property rights ments who illegally cause damage the to

It

to

to

he

or

the defects within ten days.

If

in

of

or

or

a

an

In

of

in

of

its

of

by

of

of

Congress upon individual citizen. This power has not been conferred belongs Supreme the United States district courts. the Court the District Columbia reason common-law and equity powers, and because these administrative officials are the District Columbia within the jurisdiction the court. injunction case involving city ordinance providing that whenever apparatus defective, the city electrician should find any electrical wiring endangered property, work installed which life should notify the writing repair owner the premises cease using electric current and the property owner did not comply, the

serv

to

be

to

of

electric current was discontinued. The city electrician examined plaintiff's premises the and determined that the electric wiring therein was repair the alleged defective. The plaintiff claimed otherwise and refused ice

an

to

of

defects, whereupon the city proceeded have plaintiff's supply electric injunction restraining the current discontinued. The plaintiff sought

in

it

in

so

as

in

in

in

city from enforcing the ordinance against him, claiming that the wiring proper condition and that the ordinance was void. his house was plaintiff's house was proper The trial court found that the wiring condition, and that the ordinance was void far conferred arbi

the fact that the city electrician was permitted,

as

in

lie

was found

to

of

to

trary power upon the city electrician determine whether the electric wiring was proper. The arbitrary, oppressive, and illegal exercise power the

au

in

or

he

he

he

by

in

to

of

pass his judgment and make his deter thorized agent the city council, passing his judgment and making mination upon the question. Further, limiting inadequately specifications his determination was controlled his power. The specifications did not particularize what must find before

to

of

a

in

or

to

11

57

E.

N.

Y.

N.

v.

v.

S.

69

33

114

of

17

McKevitt, 128 Cal. App. 458, Pac. (2d) 789 (1932). See Northington Ky., 72, W. 1076' (1902); Raaf Board Medical Eraminers, (1906); Leone Brewer, 259 386, 182 Pac. (1932). v.

Mitchell

Sublette, Idaho 707,

84

**

v.

to

or

as

to

could declare that the electrical appliances were dangerous life property. The determinations given instance they whether not property were left were dangerous life the exercise his discre

ADMINISTRATIVE

534

LAW

[Ch.

33

tion. The court concluded that the plaintiff was within his rights in resort ing to the court for a determination of this question, and the court found that in this particular instance the power of the city electrician was unjustly

The injunction was granted, and the plaintiff was relieved from the necessity of complying with the directions of the city electrician relative to necessary changes and repairs.”

and oppressively used.

Habeas Corpus.-The extraordinary legal remedy of habeas corpus is used for the purpose of testing the legality of the detention of a person. Since the power to commit is considered judicial, one who is detained by authorities may have the matter of his detention brought before a court of law where the legality of the detention is reviewed. The chief object of the writ is to secure the liberation of one who has been

administrative

imprisoned without legal cause.

Habeas corpus is available in the federal district courts as well as in the state courts. It has gained special promi nence as a remedy in cases before the United States Department of Labor involving the detention and deportation of aliens. The writ can be granted by inferior as well as appellate courts, and it is more easily obtainable than certiorari and mandamus.

In a habeas corpus case, a city council adopted two ordinances imposing penalty upon anyone who solicited contributions for charitable purposes a without a permit from the Municipal Charities Commission, and also pro hibiting the sale of any goods donated to charity without first obtaining a similar permit from the Commission. The Commission was empowered to issue permits in those cases where it determined that the object of the solici

tation was worthy and meritorious. No other standard of character or fit ness was provided by the ordinances to guide the Commission in giving or withholding permits.

The petitioner, an officer of the Salvation Army, was arrested under two criminal complaints charging violation of these ordinances. He applied for a writ of habeas corpus for his release. The court decided that a munic ipal ordinance, to the extent that it gave a Commission established by the city the absolute and arbitrary power to forbid any person from soliciting for private charity, regardless of his personal character, worth, or fitness, or from selling goods donated to such charity, was unconstitutional and void. This constituted an attempt to use the police power in an arbitrary, unreasonable, and oppressive manner. The city council empowered the Commission to do acts which the council itself, the source of power, could not legally do. Since the petitioner was arrested under void ordinances

*

v.

87

18

v.

v.

21

L.

70

v.

S.

S.

E.

v.

Y.

tº.

Gaylord v. City of Pasadena, 175 Cal. 433, 166 Pac. 348 (1917). See Cubbins Mississippi River Commission, 204 Fed. 299 (Dist. Ct. Ark.) (1913); City of New York (1921); Bell Telephone Co. McAnemy, 115 Misc. 433, 190 N. Supp. Commerce Commission, 306 Ill. 109, 137 N. 449 (1922); Smith Illinois Bell Telephone Co., 270 (1926); Klimm, 587, 46 U. Ct. 408, Ed. 747 Eaton 217 Cal. 362, Pac. (2d) 678 (1933); Rehfeld San Francisco, 218 Cal. 83, Pac. (20) 419 (1933).

OFFICERS AND REMEDIES

Ch. 33]

535

which were of no legal effect, he was illegally detained and habeas corpus was granted to release him from custody.”

Declaratory Relief.-Declaratory

is

to

is

or

in

as a

an

he

in

It

of its

relief has been an expanding feature availability of American jurisprudence in recent years, although not yet universal. parties actions, has been the custom under the law party discussed earlier section, that one could appear court injury only after Declaratory damage. had suffered some relief

party may

to

of

of

one, where

go

law:

in

of

in

in

a

or

system whereby one who senses anticipates injury may appeal the rights courts advance and learn the law and his the matter. There declaratory relief are two possible aspects the field administrative in

to a

an

some federal agencies

to

has been the practice

in

It

he

of

an

a

court law and receive advance how administrative act might affect him; and the other, might request such relief from where administrative agency acting quasi-judicially. interpretation

render advance

advis

to

of

it or

a

in in

be

to

to

to

in

binding the law, they not entirely eliminate have preceding effect comparable the extraordinary legal remedies discussed paragraphs. The answer problem providing this would seem

of

uncertainty

do

by

to

of

ory rulings determining what course those desirous action fol low, but these establishments have not been bound opinions they the have given. Although such advance rulings may reduce somewhat the element

by the Federal Revenue.79

Power Commission

and the Federal

of

to

administrative agencies with statutory authority render binding declara tory rulings. Some progress along these lines has already been recorded Bureau

Internal

-

a

to

it

of

is

of

be

in

It

declaratory ruling that the device not well adapted for activity involving use those fields constant flux and change. Were ruling might develop available here, unpredictable situations subsequent may

embarrassment for administrative agencies who were obliged meet the problems and yet could not adequately because partic they were bound ruling. possibility the This would seem ularly field such labor relations. On the other hand, there are certain a

be

as

to

by

to

a

in

of

in

activity, almost unchangeable nature, wherein the declaratory rulings would go far dispelling present uncertainties. Administrative to in

spheres

so

cause

do

which would

a

to

to

be

as a

of

be

by

be

agencies should free decline giving ruling, otherwise the public inter jeopardized est might individuals seeking use the advance opinion only keeping means “within the law” and attain selfish and detri mental ends. Thus sufficient reason must shown before the administra

p.

8,

S.

S.

in

S.

v.

L.

v.

re

S.

In

o°

Dart, 172 Cal. 47, 155 Pac. 63 (1916). See Bilokumsky Tod, 263 U. Eby, 264 U. 32, 44 Ct. 54, 68 Ed. 221 (1923); Mahler Ct. 283, 68 L. Ed. 549 (1924). Procedure, Administrative 70 Committee on Administrative Procedure Government Agencies (Government Printing Office, Washington, D. C., 1941), 77th Cong., 1st sess., Senate Doc. No. 32. 149, 44

536

ADMINISTRATIVE LAW

[Ch. 33

tive body will give a declaratory ruling. As a final consideration, imme diate judicial review in the ordinary courts of law should be available to an individual from a declaratory ruling which he believes unfair to his cause and thus test the validity

having to refrain

of the ruling and protect

from action or suffer

a

the person

from

possible imposed penalty as the

alternative.71

SELECTED READINGS BOOKS AND MONOGRAPHS David, Leon Thomas. The Tort Liability of Public Officers. (Public Administration Service, Chicago, No. Sp. 16, 1940), 93 pp. Freund, Ernst. Administrative Powers over Persons and Property. (University of Chicago Press, Chicago, 1928), pp. 227, 242-255, 301. Goodnow, F. J. The Principles of the Administrative Law of the United States. (G. P. Putnam's Sons, New York, 1905), pp. 119–161, 222–315, 418–441. Hart, James. An Introduction to Administrative Law. (F. S. Crofts & Co., New

York, 1940), pp. 19–64. McQuillin, E. The Law of Municipal Corporations. (Callaghan & Co., Chicago, 2d ed., 1928), Vol. II, Secs. 469, 500, 574–576. (Callaghan & Mechem, F. R. A Treatise on the Law of Public Offices and Officers. Co., Chicago, 1890), 751 pp.

PERIODICALS Aumann, F. R. “Changing Relationship of the Judicial and Executive Branches.” Kentucky Law Journal (January, 1934), Vol. 22, pp. 246–259. David, L. T. “Municipal Liability in Tort in California.” Southern California Law Review (May, 1933), Vol. 6, No. 4, pp. 269–300; (November, 1933), Vol. 7, No. 1, pp. 48–89; (January, 1934), No. 2, pp. 214–227; (March, 1934), No. 3, pp. 295–324; (May, 1934), No. 4, pp. 372–467. Goodnow, F. J. “The Writ of Certiorari.” Political Science Quarterly (September, 1891), Vol. 6, No. 3, pp. 493–536. Pine, D. A. “Judicial Control of the Executive-by Mandamus and Injunction.” The Georgetown Law Journal (January, 1925), Vol. 13, No. 2, pp. 73–88. Stoner, G. “Recovery of Salary by a De Facto Officer.” Michigan Law Review (January–February, 1912), Vol. 10, No. 3, pp. 178–186; No. 4, pp. 291–299. 71 Ibid., pp. 30–33.

PART SEVEN PUBLIC RELATIONS

CHAPTER

ADMINISTRATION

34

AND THE PUBLIC INTEREST

External Controls.-The subject matter of this chapter deals with the ways and means by which citizens in a democracy may keep administration subject to the popular will, preventing it from becoming arbitrary and irre

sponsible, and further, mellowing it with the layman's viewpoint.” This latter factor, mellowing with the layman's viewpoint, is one of the domi nant characteristics of Anglo-American democracy. Professional and scien tific workers in administrative posts tend to become impatient of lay criti cism and cry out indignantly against irritating lay controls. This does not alter the fact, however, that such lay surveillance of the professional ad ministrator is the keystone of constitutional liberties and freedom as known in Anglo-Saxon countries. The principle is sometimes stated to the effect that “the experts should be on tap but not on top.”

Officially Constituted Controls Legal Controls.-The immediately preceding chapters have emphasized

is subject to the rule of law in Anglo-Saxon While these controls constitute an ever-present threat to the

the fact that administration countries.

wrongdoer, they are nevertheless negative in nature and should be sup plemented by more positive, constructive, and continuous participation of the citizen in the administrative process. Legal measures are usually directed at the correction of an abuse, and action is brought by one who has that type of personal grievance which constitutes a legal interest suffi cient to make him a party to a case at law. Such a person's object may by chance coincide with the public interest; but the intricacy of modern gov ernmental organization

requires that the public interest be represented by more than the chance litigant. This chapter is primarily concerned with these other devices for keeping the administrator attuned to the popular pulse, will, and interest.

Legislative

Audit.—The British offer an example in the legislative

audit which is a post-check by an officer entirely independent of administra tion and answerable only to the legislature. The Comptroller and Auditor General is appointed by the Crown for life, is removable only by a vote of * E. Pendleton Herring, Public Administration Book Co., Inc., New York, 1936), pp. 20–21.

539

and the Public Interest *

(McGraw-Hill

PUBLIC RELATIONS

540

[Ch. 34

its

both houses of Parliament, and his salary is considered to be a permanent charge upon the Treasury. He is now regarded as a servant of the House of Commons alone, and he audits expenditures and revenues for the pur pose of informing that body as to how the administrative services have previously expressed wishes. These audits seek not carried into effect ascertain fiscal fidelity; they are increasingly concerned with the operations or, nature other words, “efficiency.”” fidelity audit, but the United States many cities and counties have principle legislative the audit has not attained the same significance here Great Britain. For instance, many cities have no audit other than

an

by

for

or

own accounts. The idea agency independent

the city and, hence, audits his efficiency audit the more complete operation

of

of

the comptroller who keeps the books

preferably responsible

administration,

to

by as in

of

a

In

in

of

to

only

the

in do

yet not sufficiently well devel to

which the auditor may base his judgment

as

on

to

as

a

on

secondly, standards and measurements are oped

at

in

legislature, should take deeper root. Two obstacles stand the way present: first, commercial accountants, who much governmental audit ing public administration, and, fee basis, are not adequately trained

is

of

distinguished member the Treasury, the whereas

of

only

a

usually

former Financial Secretary the actual Financial Secretary the Treasury of the Committee.* a

opposition, often

is of

the audit report, the chairman

a

assure that the party

in a of

each session

Commons for receiv

and Auditor-General. appointed. Public Accounts Committee power will not gloss over adverse aspects

is

order

of

the beginning

to

At of In

is

legislative audit the provision made the House ing and considering the report the Comptroller

of

by

of

of

In

offer criteria the operation. However, these are not insuperable hurdles. effectiveness fact, indications point toward their imminent conquest. One significant, and undoubtedly indispensable, feature the British

private member

its

a

purely

to

control powers and turned into Auditor General, reporting direct be

of

be

deprived this office auditing office with the title

of

its

on

in

on

in

by

in

of

prin The idea the legislative post-audit has long been advocated ciple administration, practice American theorists but has been spotty and infrequent.” The controversy surrounding the American Comptroller General has already been discussed previous chapters financial administration. Management The President's Committee Administrative advocated that Con

-

of

S.

C.

on

of

D.

Wºon.

in

E.

*

&

a

G.

&

*

of

On this aspect the British audit see John W. Hills, The Finance Government Co., London, 1925), pp. 101–102. The title “Comptroller and Auditor single officer, not two separate individuals. Benson, Financial General" designates Bros., New York, 1934), pp. 11–13. Control and Integration (Harper Hills, op. cit., pp. 123–125. Buck, "Financial Control and Accountability,” *A. President's Committee Printing Office, Management, Report with Special Studies (Government Administrative Principles C., 1937), pp. 159–165; Willoughby, Public Administration, P.

(Philip. Allan

Ch. 34]

ADMINISTRATION

AND THE PUBLIC INTEREST

541.

gress." However, it seems to be the temper of Congress, backed with con siderable vocal support from American public opinion, that the Comptroller General shall continue to exercise control powers. His critics maintain that he does not conduct a true audit in the sense of one who acts as an auditor

for legislative control of administrative

operations in general." There is some estimable opinion, chiefly represented by the reports from the Brook ings Institution for the Byrd Committee, upholding the present status of the Comptroller General's office." A discussion of auditing on the state and local level has already been included in the chapters on financial administration. Suffice it to say here that usually there is no periodic audit by professional persons responsible to the legislature in the state. Such auditing as is done is carried on by an independent, elective officer whose work very frequently fails to measure up to professional standards. On the municipal and local level it is a fairly common practice for the city councils in the smaller jurisdictions to engage firms of auditors for the purpose.

Legislative Criticism.—European

parliamentary governments have bringing ways currently devised and means of the administration to account legislature through instrumentality on the floor of the the of the question

In the British House of Commons notice of the question to ask a is given in advance, and the question itself is

hour and interpellation.

intention printed in the “Orders of the Day.” A certain amount of time is set aside at the beginning of each day's business, during which the Ministers read written replies to the questions as printed. In France the procedure is sub

stantially similar, except that the answer is followed by a debate and vote which, if adverse to the minister, results in the fall of the ministry. W. B. Munro has the following comment on the value of the British question

hour

as an agency

for controlling administration:

It is

an effective check upon those bureaucratic tendencies which are bound to appear in every government. It keeps the experts responsive to a body of laymen. Ministers sometimes get irritated at

of questions: their subordinates (who have to prepare the answers) blaspheme at the members who frame them; but the private citizen has no reason to complain. The question hour in the House of Commons is probably worth that costs the British taxpayer. As palladium worthy his rights and liberties ranked with jury corpus.” trial and the writ habeas be

to

it is

of

by

a

of

it

all

the flood

-

of

T.

in

C.

Hºuſe -

,

*

D.

° *

Buck, op. cit., pp. 162–165. Harvey Mansfield, “The General Accounting Office,” President's Committee on Printing Office, Administrative Management, Report with Special Studies (Government Washington, C., 1937), pp. 173–202. Selko, The Federal Financial System (Brookings Institution, Washing See Daniel ton, D. C., 1940), pp. 527–553. Europe (The Macmillan Co., New York, Rev. ed., The Governments 1930%P.

-

PUBLIC RELATIONS

542

Our belief in the desirability of

[Ch.

34

formal separation between the legis

a

to

a

In

the

lature and executive has prevented a direct day-by-day contact between these branches. It has not been the custom for administrative officers to partici fact, pate in legislative debate or address certain cool chambers. ness has frequently greeted presidents and governors who have sought

in

it

possible for executive make debate and defend themselves

of

on

to

various proposals have been advanced participate and administrative officers legislature.” the floor the

to

to

of

is

of

by

to

in

person formal messages joint sessions. Hence executive com: deliver usually munications have been transmitted means other than word mouth. Many students have felt that this “stand-offishness" unnatural, stilted, and detrimental government. Thus, the effective operation

in

of

its

in

of

by

is

in

as

its

of

in

to

of

integration were not blind The early advocates the dangers placing administrative power the hands one man. To retain advan tages without shortcomings they visioned the legislature close touch with administration. This attitude most aptly stated the reports pre pared Municipal Research for the State Con the New York Bureau

of

of

is

it

stitutional Convention 1915.” There was said that the only argument against closer connection between the legislature and administration the separation powers theory. The British have developed responsibility

power.

an

to

to

of

to

the executive the legislature for the same reason that we made the legis independent lature the executive, namely, secure government respon popular control rather than arbitrary and irresponsible royal sible

philo the natural way while we embalmed Many students feel that the resulting our Constitution. artificiality responsible for much our governmental difficulty.” The powers British apply the theory the separation their governmental organization more logically than we do. While executive, legislative, and

judicial powers are placed

to

of

of

is

of

in

a

The British followed

sophical error

This

what

W.

F.

that body.

is

member

of

a

this officer

be

a

of

as

of

in

in

the same hands, they act different capacities exercising when the several distinct powers.” Thus, the House Lords sits alone court when hearing judicial appeals. The House Commons refrains from invading the Minister's administrative domain even though

Willoughby

of

of

5,

V,

to

in

be

of

& p.

of

of

A.

of

of

by

to

F.

**

of

in

º

*

to

of

C.

&

° E.

Pendleton Herring, Presidential Leadership (Farrar Rinehardt, New York, 1940), Ch. IV; Charles McCarthy, The Wisconsin Idea (The Macmillan Co., New York, 1912), pp. 181–182; Frederick Howe, “The Constitution and Public Opinion,” Proceedings the Academy pp. Political Science (1914–1915), Vol. 16. The Model State Con stitution prepared the Committee on State Government the National Municipal League provides that the governor and heads state administrative departments shall entitled seats the legislature, with the right discussion, but introduce bills and take part without vote. The Constitution and Government the State New York: An Appraisal (Bureau Municipal Research, Albany, 1915), pp. 74–79. See Charles Beard, American Govern ment and Politics (The Macmillan Co., New York, 6th ed., 1931), 620. Co., New York, 1924), Jones Ford, Representative Government (Henry Holt pp. 176–198. Willoughby, An Introduction W. the Study The Government Modern States (The Century Co., New York, 1919), pp. 236–237.

AND THE PUBLIC INTEREST

ADMINISTRATION

Ch. 34]

543

per

refers to as a separation of powers organically and union of powers sonally.”

Representative Estes Kefauver of Tennessee has introduced and cham pioned a resolution establishing a question period wherein cabinet members would appear periodically before the House of Representatives.”

The closest scrutiny which Congress exercises over administrative

activ

ity undoubtedly

comes through the congressional committee system. The seniority system for appointing committee chairmen, combined with the long-continued service of certain members of Congress, operates toward

be

of

by

its

making some members of that body experts in the subject matter over which the committee has jurisdiction. Thus, one of the most authoritative books upon the post office was written by a member of Congress.” A read ing of the hearings before the subcommittees on appropriations invariably reveals among the chief testifiers, in addition to the bureau chief, the bureau finance officer and probably a division chief or two.” The bureau's appro priations, and consequently strongly influ future development, may

a

of

is

it

operations.” Thus,

in

a

in

its

a

impede be

to

constantly tries tee system seems

to

a

to

in

of In

to

of

Congress most enced the relationships the chiefs the members closely interested fact, that particular activity. not uncommon for Congress who bureau encounter nemesis the form member Congress the commit

partial substitute for the question hour.

-

Legislative Investigations.—

I

exposures

an

is

federal history,

departments,

for administration, but

the heads

by

the heads

the

legis

of

. .

of

by

the greatest

of

corruption and inefficiency,

have been brought about not the government responsible lature. .18

in

of

It

in

.

.

of .

think we should study more closely than we have done the place the legislative inquiry administrative control. interest ing thing that the great exposures administrative incompetence and

is

*

Ibid.,

p.

as a

of

is

by

is

It

of

revealing official incompetence and the most potent means widely utilized the legislative investigating committee. Congress legislatures, both the federal and the state and there little legislative investigation acts doubt but what the threat constant

One

malfeasance

a

of

powers does not operate against 237. For view that the separation cooperation with Congress see James M. Beck, Our Wonderland Bureacracy (The Macmillan Co., New York, 1932), Ch. Congressional Record, 78th Cong., 1st sess. (November 26, 1943), pp. 101.39. Clyde Kelly, United States Postal Policy (D. Appleton Co., New York, 1931), pp.

I.

of

presidential

&

**

sº

6,

p.

in

in

p.

1,

of

A.

in

*

p.

**

º

2,

on

2f

of

on

Appropriations: House **See Hearings before the Subcommittee the Committee Representatives, 77th Cong., 1st sess., the Post Office Department Appropriation Bill for 1942 (Government Printing Office, Washington, D. C., 1941). Congressional Record, Vol. LXXXV, Part 867 (1939); Vol. LXXXIV, Part 5996 (1939); Vol. LXXXIII. Part 746 (1938). Beard, “The Role Government,” symposium, The Charles Administration 1937), Unit Federal Administration (Public Administration Service, Chicago,

PUBLIC RELATIONS

544

[Ch. 34

*

warning to the potential wrongdoer as well as a stimulus to improved per formance for those with good intentions. One can take any period in our national history and select congressional investigating committees which are widely publicized and whose inquisitions pry into the affairs of official life, as well as into the activities of private persons and corporations. As this is written, one remembers the House investigation of the National

Valley Authority.” Each of spectre raised the red of radicalism in the minds of large sections of the population. This apprehension was reflected in Congress and resulted in these two investigations, the hearings of which Labor Relations Board” and of

the Tennessee

these New Deal agencies

of

labor. The explosive potentialities this information have thus scanty reporting far been checked hostile press, but there no doubt that the attacks the National Labor Relations Act presented the Smith Committee were effectively nullified the steady stream evidence to is

a

of

an

La Follette Committee indicating

be considerable evidence

the effect that

Presi on

seem

to

There would

cross-purposes. to

actually operating

at

of

timized example

that labor was being vic powerful practices employers. interesting harsh This two committees, ostensibly investigating separate fields, but the

is

adduced

of

by by

by

on

in

by

of

ticularly

of

to

of

a

its

were published in numerous volumes. Contemporaneously, the Senate sponsored the La Follette Civil Liberties Committee.” This committee in voluminous hearings and reports uncovered tremendous amount significant material relating rights minorities, par the violations

of

pages

great deal

subversive and radical activities.”

the nation's press

publicity was the Dies investigations While its

Committee

front

of

made the

house committee which secured on

A

for the Pearl Harbor disaster, for several weeks.

a

a

of

up to

to

dent Truman's rise national prominence started through his work committee, bearing the Senate his name, which investigated the agencies conducting World War II.” Immediately after hostilities ceased for that joint committee conflict, both houses, set establish responsibility

2,

9,

3,

3,

p.

&

p.

7,

in

B.

R.

L.

of

6,

**

R.

** **

2d

T.

in of

56

4,

of

of

L.

*

S.

3d

**

to

Investigate the National Labor 76th Cong., House Res. 258. See Special Committee sess., House Rep. No. 3109 (1914); W. Gellhorn Relations Board, Report, 76th Cong., Linfield, “Politics and Labor Relations; An Appraisal and Criticisms N. Procedure,” Columbia Law Review (March, 1939), Vol. XXXIX, pp. 339–395; “Congress Investigates the National Labor Relations Board,” Congressional Digest (March, 1940), Vol. XIX, pp. 67–96. 1938; Joint Committee on the Investigation 52 Stat. 154, April the Tennessee Valley Authority, Report, 76th Cong., 1st sess., Senate Doc. No. (1939); Annual Report the Tennessee Valley Authority, 1940, pp. 1–37; 1941, pp. 1-40; V. Weybright, “Issues the V. A. Inquiry,” Survey Graphic (May, 1938), Vol. XXVII, pp. 268–270. Senate Res. 266, 74th Cong., sess. (June 1936). Wesley McCune and ſohn Beal, “The Job that Made Truman President,” Harper's Magazine (June, 1945), Vol. 190, pp. 616–621. House Res. 282, 75th Cong., 1st sess. (May 26, 1938); House Report No. 76th Cong., 1st sess. (January 1939); House Res. 26 and House Res. 81, 76th Cong., 1st sess. (February 1939); Congressional Record (1938), Vol. LXXXIII, 1939 and February 8392, Vol. LXXXIII, Part Part 11, pp. 2311-2312; Martin Dies, The Trojan Horse Co., New York, 1940), America (Dodd, Mead 366.

ADMINISTRATION

Ch. 34]

AND THE PUBLIC INTEREST

545

were not aimed exclusively at official personages, it nevertheless found occasion to accuse persons on government payrolls of belonging to sub versive groups. A specific instance was the accusation that Leon Henderson his colleagues in the Office

and

*

Supply

of Price Administration and Civilian were either members of the Communist Party or fellow trav -

elers.25

investigations

may be conducted for a variety of purposes, but the most common type is the supervisory inquiry, which may have as objective either restraining aiding administration.” Inquiries this

of

A

of

51 as

or

of

45

to

4,

or

of

of

standing commit the legislature through one study tees, committee especially constituted for that purpose. Congresses, 1936, the first two New Deal from March 1933 the end showed that there were 165 congressional investigations, which had objective checking, surveillance, administration, their the while by a

type are conducted

its

by

of

or

its

Legislative

a

to

period during which there was aid administration. This was harmony much more between the President and Congress, and conse quently, less incentive for inquisition than had been the case during many sought

previous sessions.” by

of

The achievements the great congressional investigating why should indicate similar agencies are widely employed

committees

legisla

state

to

of

so

of a

Governor Franklin

of

to

it

at

Walker

Mayor that led the removal Roosevelt, was conducted the direction

municipal corruption

D.

by

tional evidence

of in

as

in

tures. Here the investigations are conducted not only relation state administration, but also supervising local government. The means Seabury probe the City New York, which uncovered much sensa

of

a

“”

by of

of

of

a

of

special joint legislative committee the state legislature.” The com mittee's recommendations for reorganization the government the City incorporated charter, New York were into reform which was adopted

was achieved within one

of

citizen control, administrative housecleaning America's largest governmental units.

of

La

of

an

E.

by a

H.

by

a

at

The voters the same time put into office new Mayor administration headed Fiorello Guardia and District Attorney Thomas Dewey. Thus, combination several types an

aroused public.

of

of

2.

a

in

to

of

;

to

as

of

* *

*7

in

A.

4.

3.

1.

p.

of

p.

* **

8,

of

**

into two separate agencies: the Office Price Administration and the Civilian Supply. 1941), Time (September 58. Congressional Investigative Powcr (Colum M. Nelson McGeary, The Developments University York, Press, 1940), bia New 34. This work offers fourfold classification Legislating; investigations: Investigations Supervisory Assist Congress Investi gations; Informing Investigations; Ibid., Ch. II. See also Membership Investigations. Laird Bell, “Probes,” Atlantic Monthly (June, 1937), Vol. CLX, pp. 23–31 M. Davies, Government,” Forum (May, 1937), Vol. XCVII, pp. 310–315. “Brains During Franklin D. Roosevelt’s Investigations M. Nelson McGeary, “Congressional First Term,” American Political Science Review (August, 1937), Vol. XXXI, pp. 680–694. Known the Hofstadter Committee, after its Chairman, State Senator Samuel H. Hofstadter. Report Investigate the Affairs the Joint Legislative Committee the City of New York, New York Legislative Document (1933), No. 54. Since divided

Office

PUBLIC RELATIONS all

546

[Ch. 34

*

state investigating

in

it is

to

is

of

committees achieve such spectacular results, frequently importance. Consequently but their work unfortunate disparagingly that these committees are sometimes referred the press

Not

of

by

all

a to

in

is

it

of

of

the suspicion that powerful members the legislature get them solely selves made chairmen such committees for publicity and patron regard traveling age. Indeed, the disposition some quarters because

to

is

have

desir

be

In

is

of

of

well informed on matters coming their work, and on-the-spot observation often insignifi government. fact, from the seat the

of

scrutiny

the legislature

by

superior

to

able that members within the purview

it

is

as

“junketing,” congressmen and state legislators term intended derogatory implications. This highly often unwarranted, for

by

a

with

in

of

legislatures for such purposes, comparison the amount spent the billions which go into appropriations, constitutes such contrast

cance

to

con

de of

a

to

is

the legislators

it

apprehension

the legislature the administrative administrators, just cause as

frequently vexing

to of

a

the relation

is

partments

of

The problem

travel and

of

on

requiring legislators that benefit could very well result regular schedule.” duct inquiries the basis

by

of

of

in

of

is a

to

from whom authority and appropriations must flow. The following statement the problem made one who many years dealing, capacity administrator, has had the with both state legislatures and Congress: the legislature can the administrative its

of

of

be

Some dignified and orderly method whereby kept continuously appraised the activities is

in

agency and the administrative agency can make known needs and its recommendations for changes the law essential. Printed re ports and appearances before committees are not satisfactory. Reports

in

to

a

be

would

per

be

the various administrative agencies attached might prove the solution.* to

representatives manently

of

of

to as

as

is

is

is

as a

of

is

to

in

of

are not read and appearances before committees are often resented. interpellation adopted The device Wisconsin 1913 whereby an legislative appear assembly administrative head asked before sitting inadequate and susceptible committee the whole during abuse. What needed continuous contact between well legislative sessions. Standing committees the legislature which

of

as

as

in

of

a

of

Legislative Councils.-The steady expansion govern the scope mental operations has created need for some machinery whereby both Congress and the state legislatures may keep touch with the course during the sessions. Effective supervision administration between well of

F.

p.

of

of

I.

31

C.

30

Bell, “Probes,” loc. cit., 26; W. Willoughby, Principles Legislative Organi (Brookings Institution, Washington, D. C., 1934), pp. 586–587; cation and Administration Winslow, State Legislative Committees (Johns Hopkins Press, Baltimore, 1931), pp. 33–34, 48. (University Arthur Joseph Altmeyer, The Industrial Commission Wisconsin Wisconsin, Madison, 1932), pp. 322-323.

AND THE PUBLIC INTEREST

ADMINISTRATION

Ch. 34]

547

must be based on adequate information, and increasingly there is need for central, continuing research to implement the largely uncoordinated work of the various legislative committees. A partial solution of this problem

in

a

in

its

of

is

in

in

its

is offered by the legislative councils set up in a number of states. The principal task of the legislative council is to facilitate the organized performance of duties by the legislature on a year-round basis of research and planning. The legislative council is made up for the most part of key members of the legislature and is supplied with a staff agency fully equipped for investigation and research to assist in carrying out the council's activi ties. This concept of a legislative council is comparatively new, but begin ning with adoption 1933, the legislative Kansas and Colorado indicating rapid ac states, council some form now found eleven ceptance its value.

as

of in all

a

Administrative Agencies.—The growth

ad

of

to

expanded personnel and greater budgets, has led substantial increase the pressure activities administrative growth interdepartmental competition officials. Not only has there been for budgetary allotments and other benefits, but this type strife has been

of

Albany has for years been represented Counsel.” When matters vital importance

to

of

variety

of

a

on

testify

legisla

in

is

large

as

city

as

New York also interested affairs recent years Mayor La Guardia and the executive heads

In a

of at

The mayor Washington.

of

in a

with the mayor's visits, thus enabling him tion short time.

to

to

is

of

of

or

action

to

supplemented

on

the part the mayor, either through communications sent committee chairmen, on the basis personal appearances. So important this sort contact that the legisla tors usually cooperate by arranging special committee sessions coincide is

lobbyist

by

of

its

of

at

York

Thus the City New Assistant Corporation the city come up, the work

of

favor-seeking.

its

intergovernmental

by

complicated

by

of

a

to a

ministrative

in

services, leading

of

Pressure Activities

of

of

of

high-grade personnel and the application legislators.” many prominent the more

of

by

and research functions, exemplified the use

its

to

in of

to

While each state has utilized variations thought most appropriate particular needs, common features the legislative councils states advisory tasks, the wide use are the desire aid the legislature

*

representatives

the United States Conference

of

on a

of

as

ties, but

of

-

of

at

variety other large cities have testified the nation's capital municipal concern, including federal relief and housing pro matters grams. Not only have these officials been speaking for their own communi

Mayors they H.

F.

&

in

ºle

C.

a

of

legislative councils consult W. Brooke Graves, American State discussion Guild, Co., Boston, Rev. ed., 1941), pp. 329–336; (D. Heath “Legislative Councils,” Law Library Journal (November, 1943), Vol. 36, pp. 169–190. Zeller, Pressure Politics New York (Prentice-Hall, Inc., New York, 1937), Il. p. -

For

Government

PUBLIC RELATIONS

548

[Ch. 34

have been interceding for many other municipalities. As direct federal municipal relations continue to expand, more of this kind of administrative lobbying may be expected.” the intragovernmental levels, the “department bills” which appear Congress before and the various state legislatures are often extremely impor tant measures, and they are becoming more numerous. Edwin E. Witte, who prepared a discussion of this development for the President's Commit

On

tee on Administrative Management, pointed out that of a total of 429 public acts, exclusive of appropriation acts, in the first session of the Seventy-fourth Congress (1935), 270 referred to the organization or

functioning Congress

of administrative

departments.

In the

second

session of that

there were 156 acts of this character. “There is little doubt,” this writer commented, “that the great majority of these acts origi nated, directly or indirectly, in the departments concerned. Many other bills (1936)

promoted by departments did not become law, and departments expressed opinions upon and engaged in other legislative activities in relation to many bills they did not initiate.””

A

department bill may develop spontaneously, and it is only reasonable that administrative experience should give rise to proposals for improve ments in the laws. But at times the private interests affected by administra tive services or regulations may propose changes in policy which will be given administrative sponsorship. Thus, increasingly the activities of private lobbyists are becoming concerned with administrative agencies as well as with the legislature. A more obvious danger associated with department bills is the possibility that they may be framed in a spirit of what has been termed “administrative imperialism,” importance of the department.

in

an effort to increase the power and

states that the influence of departments in statute lawmaking chiefly stems from the large place of administration in government, and also from the superior special and technical knowledge which administrators

Witte

possess.”

It

is also true that a great part of the success of administrative activity in relation to the legislative process is related to the political and legislative leadership exercised by the chief executive. If, for example, a a

its

department bill is unacceptably amended by the legislature, or if the legisla department disapproves, the ture passes a measure of own which S.

by

on

of

E.

E.

p.

p.

in

*

*

I,

to

D.

87

of

to

of

in

of

of

**

of

federal-municipal Short, “Municipalities On the growth relations see Raymond Academy and the Federal Government,” Annals the American Political and Social Science (January, 1940), Vol. CCVII, pp. 44–53; Our Cities: Their Role the National Economy, Report the Urbanism Committee the National Resources Committee (Gov Printing Office, Washington, C., 1937), pp.; Supplementary Report ernment the Printing Office, Urbanism Committee the National Resources Committee (Government Washington, D. C., 1938), Vol. pp. 303 Witte, “The Preparation Proposed Legislative Measures Edwin Administra Management, Report with tive Departments,” President's Committee Administrative Special Studies, 361. Witte, “Administrative Agencies and Statute Lawmaking,” Public Adminis. Edwin tration Review (February, 1942), Vol. II, 121.

Ch. 34]

ADMINISTRATION

AND THE PUBLIC INTEREST

549

administrative agency will urge that the objectionable law be vetoed. This, as well as the management responsibilities of the President and the several state governors, suggests the desirability of bringing the legislative activities

of administrators

under executive scrutiny. In many states the governors systems have established of central clearance of department bills, and in recent years steps have been taken in this direction in the federal adminis tration, through the creation of a Division of Legislative Reference in the

Bureau of the Budget.

-

Hundreds of organizations maintain permanent secretariats at Washing ton and at many state capitals, for the purpose of influencing legislatures and guiding administrative activities. Among these groups are an increasing of public officials and employees. The public service lobbyists operate in the pressure arena in the same way as do other pressure agents, and they insist that they are entitled to the same rights as other citizens possess in seeking to influence legislation. Nevertheless, there are certain problems associated with lobbying by persons in public employ ment which require careful consideration. Scant attention need be paid to the alarmists who see in the growth of number

of organizations

employee pressure a movement toward a single bureaucratic super-lobby which will some day snatch the reins of government from the hands of the people. The variety of jurisdictions and functions involved in the public service makes it unlikely that there is real danger of the development of a public counterpart of industrial unionism. But administrative organizations have sufficient membership and energy to play decisive roles in certain pres sure situations—organized teachers, for example.

In general, employee lobbying has been concerned chiefly with the estab lishment of better standards of personnel administration, including such matters as tenure and other conditions of employment, and pensions. These groups are aware that they may easily incur public hostility by making excessive demands or by venturing into pressure conflicts too remote from

their own functional areas. The principal guarantee that these pressure groups will continue to operate with restraint is the check of a public opinion which could quickly be mobilized against any civil service lobby transgressing the bounds of civic propriety.

Advisory Committees.—Advisory

committees have been dealt with in chapter commissions, the on boards and with the result that only their functions as agencies of citizen control will be dealt with here. It should suffice, therefore, merely to recall that two of the primary purposes of such bodies have to do with the salutary effect which citizen cooperation on a functional basis may have upon administration. This is motivated, in the first place, by the desire of administration to stimulate and solicit the active interest of important citizens. There is also a second objective when techni

.

PUBLIC RELATIONS

550

[Ch. 34

cal specialists are chosen to consult and advise with administrative units. It is also an all-important objective of these committees to provide against the excesses of the bureaucrat by laying the restraining hand of the citizen upon him. Experience in both England and the United States would seem to indicate that the advisory committee can be an important influence for good in these as well as in other respects. A British enthusiast, Sir Arthur Salter, goes so far as to assert that “The proper use of advisory bodies is the right answer of representative democracy to the challenge of the Cor porative State.”

"

Officially Sponsored Commissions of Laymen.—It has been a fairly consistent practice for the President of the United States to appoint com missions of citizens to inquire into some particular subject and report thereon. A celebrated example of a decade ago was the so-called Wicker sham Commission dealing with the entire question of law enforcement and

A

more recent example is the President's Committee charged with inquiring into public education.” Another was the group which, under the chairmanship of Clarence A. Dykstra, prepared the report on urbanism observance.*

for the National Resources Committee.” Numerous other examples could be cited. In each case there was a general report, supplemented by a number of specialized technical studies by experts commissioned for that purpose. The British form of extra-governmental investigation is the Royal Com mission. In addition to Royal Commissions there are departmental com mittees. There is little difference between them as to method of procedure. The former is appointed by the Crown, while the latter is appointed by a minister or department. Of considerably less importance in laying the groundwork for legislation are select committees which are appointed on the motion of either House, and joint committees which are appointed by the combined Houses. The Royal Commission comes into existence when sufficient opinion is aroused to warrant an impartial investigation. Composed of representatives of interested groups, specialists in the field under obser laymen, the Royal Commission proceeds to take evidence under a more or less settled quasi-judicial form of procedure. Both the minutes and final report with conclusions are officially published. It is vation, and prominent

*

R. V. Vernon and N. Mansergh (Eds.), Advisory Bodies: A Study of Their Uses in Relation to Central Government, 1919–1939 (George Allen & Unwin, London, 1940), 520 pp. See also Leo M. Drachsler, Advisory Bodics and Public Housing in New York City (Department of Investigation, New York City, undated), 44 pp.; Herring, Public Adminis tration and the Public Interest, pp. 350–351; John A. Perkins, “Permanent Advisory Com mittees to the British Government Departments,” American Political Science Review (Feb ruary, 1940), Vol. XXXIV, No. 1, pp. 85–96. *45 Stat. 1613 (March 4, 1929); see Reports of the National Commission on Law Observance and Enforcement (Government Printing Office, Washington, D. C., 1931). Lloyd E. Blauch and J. Orin Powers, Public Education in the District of Columbia, prepared for the Advisory Committee on Education (Government Printing Office, Washing ton, D. C., 1938). ** Our Cities: Their Role in the National Economy, Report of the Urbanism Committee National Resources Committee (Government Printing Office, Washington, D. C.,

*

%

§.

ch.34]

AND THE PUBLIC INTEREST

ADMINISTRATION

551

agreed that British political and social progress during the last century has been very largely the result of the findings of these Commissions.”

Permanent Official Investigating

development

Bodies.—The

of the However, organization research will be treated below. here under the category of official agencies, it seems important to discuss a sort of by-product of the research movement which took the form of setting up an official continuing commission, or agency, whose purpose and func

citizen-supported

tions were almost entirely investigative.” A foremost example is the Boston Finance Commission, the members of which are appointed by the Governor of Massachusetts, but the duties of which are to investigate the City of Boston. Because of the fact that Massachusetts has frequently been a two party state, with the government in the hands of a governor with a political faith different from that of the Mayor of Boston, the commission's activities

by

a

or

to

citizen control

because

they are usually set management control

of

as

up

agencies

of

regarded

as

be

with the mishandling

do, own employees, which may, do, for the most part, criminal nature. These have money and property. However, these units cannot

of

of

charges

of

result

in

with handling the malefactions

its

have been charged with stemming from political motivation.” department which has reached a considerable size . Every governmental has found it necessary to establish an investigation unit charged principally

of

in

of

a

Mayor. Some

its

operates directly under the Commissioner

of

Investigation

appointed

of

of

Investigation

by

Department

of

to

up

is

the administration itself instrumentalities supervision. Nevertheless, and there unit this type the City New York which has operated rather militantly under Mayor La Guardia previous corruption and inefficiency. Thus the clean the remnants

more recent activities include investigations the sheriff's office, police brutality recent strikes, license-fixing, the bail-bond racket, relief chiselers, the job-fixing ring, tax dodgers, embezzlements and election administration.*

*H.

in

of

the

&

of

of

in

of

of

of

of

of

A

:

**

of

**

F.

of

of

of

of

of

**

of

of

p.

to

of

in

of

H. F.

of

of

F.

II,

of

Finer, The Theory and Practice Co., Ltd., Modern Government (Methuen London, 1932), Vol. Inquiry,” pp. 754–760; Gosnell, “British Royal Commissions Political Science Quarterly (March, 1934), Vol. XLIX, pp. 84–118; Felix Frankfurter, The Public and Its Government (Yale University Press, New Haven, 1930), pp. 162–163. Willoughby, “Role Commissions,” Report See W. the National Resources Com Printing Office, mittee, The Relation the Federal Government Research (Government Washington, D.C., January, 1939), Inquiry 150; Fritz Morstein Marx, “Commissions in American Political Science Review (December, 1936), Vol. XXX, pp. 1134– Germany." 1143. See Reports the Finance Commission the City Boston (City Boston Print ing Dept., 1941), 226 pp.; Budget Facts and Financial Statistics County Multnomah (Portland, Ore., 1941), 88 pp.; Financial Report the Toledo City Journal (Committee Publicity and Efficiency, Toledo), annual reports. Harper's Magazine (March, Joseph Dinneen, “The Kingfish Massachusetts,” 1936), Vol. CLXXII, pp. 401–405; Ray Kierman, Massachusetts,” “Jim Curley, Boss American Mercury (February, 1936), Vol. XXXVII, pp. 137–151. Study Harold Seidman, Investigating Municipal Administration the New York City Department Investigation (Institute Public Administration, New York, 1941); City Government Paul Blanshard, Investigating the La Guardia Administration with Reports Investigation the Activities of the Department and Accounts (published by Author, New York, 1937), 178 pp.

PUBLIC RELATIONS

552

[Ch.

34

Interdepartmental Inquiries.—In recent years there

has been a tendency to establish some interdepartmental committees composed of officials. Fre quently they coordinate the activities which tend to overlap and comple ment one another, where several departments administer independent activi ties having a common background and objective. One of the leading

examples along this line was the Interdepartmental Committee on Health and Welfare headed by Josephine Roche, when she was Assistant Secretary

of

Treasury.”

the

of

in

of

to

set

up in

An example of an inquiry with a rather unorthodox membership was provided by the Temporary National Economic Committee," 1938 investigate the concentration economic power the United States. This group was composed three Senators, three Representatives, and one

of

a

of

expert each from the Treasury, Justice, Labor, and Commerce Departments, the Securities and Exchange Commission, and the Federal Trade Commis sion. The hearings and monographs this committee provide wealth

this committee may well prove

useful device

in

of

membership

a

it

information concerning the American economy. And while was not con cerned primarily with administration, the joint administrative-legislative future

inquiries.

or

is

of

of

Prosecuting Agencies.—The prosecuting attorney and the grand jury constitute well-known instrumentalities for staying the hand the public principal why malefactor. This one the reasons the district attorney,

of

all

to

it

it

if

or

a

in

of

to

of

is

of

almost universally one the elective county officers. importance organized varieties, the Because its vice and crime quagmire political office district attorney has too often been sunk corruption; openly corrupt, officially not has been oblivious

of

state's attorney,

of of

to

as a

of

However, the fact remains that the possibility potential wrongdoers, and criminal prosecution hangs over the heads strong moral force keep officialdom within the paths thus acts

of

questionable happenings.”

righteousness. Every

a

as

-

example

of E.

offered

an

on

a

so

crusading, reformer type often there arises far-reaching clean-up campaign.” For district attorney who carries Dewey, some years Thomas District Attorney for New York County, this variety.

º

its

of

by

motivation given

it

in

its

in

The grand jury probably needs only passing mention this connection, pursuance very largely upon the depends for zeal the duties the district attorney. However,

there are examples

y

sº

P.

in

&

3d

D.

pp.

Philip

S.

*

1929,

G.

*

Smillie, Public Health Administration W. the United States (The Macmillan New York, 1940), pp. 511–512; United States Government Manual (Government Printing Office, Washington, C., September, 1941), pp. 375–376. Pub. Res. 113, 75th Cong., sess. (June 16, 1938). Moley, Politics and Criminal Prosecution (Minton, Balch Co., New York, Co.,

Van Cise, Fighting

the

Underworld

-

(Houghton

Mifflin Co., Boston, 1936),

AND THE PUBLIC INTEREST

ADMINISTRATION

Ch. 34]

553

where grand juries under aggressive lay leadership have had a wholesome influence in cleaning up civic sore spots. In some states the grand jury is empowered to investigate administrative activities even when there is no

of

all

record of a crime having been committed. In California the grand jury conducts regular audits of the books of officials local government.

Voluntary Citizen Associations and Movements The Governmental Research Movement.—The governmental research of

the inevitable result the citizen's dis attempts municipal government. reform at

as

spoken

of

be

movement might

*

or

by

in

of

it

of

of in

satisfaction with half-hearted Municipal Research Indeed, was the birth the New York Bureau 1905 that initiated the development the hundred more citizen supported, investigative, and forward-looking research agencies that we

its

of

an

of by

in

an

have today. Fostered, both financially and spiritually, alert group, the vigorous embryonic stages, but New York Bureau met with criticism its acknowledgment and appreciation this was later remedied

to of

It

by

adminis

the better

city,

the services

per

3.

by

doing business

the local governments. public expenditures and more efficient To recommend economies conducting our public offices. methods

4.

in

parish, school, and district governments. To suggest and promote measures for improving

of

1.

To study the management and methods

2.

*

as

of

better government based upon sound principles

tration. One group has very ably stated the general objectives research agencies today follows:

of

of

pressing need

a

to

in

in

good government. the interests was not long, therefore, until the Bureau was making administrative surveys and investigations all over the nation answer numerous requests.” Thus the growth the awakening research movement has been characterized civic the

activities

To give the citizens facts about governmental activities, costs, suc public enterprises, thereby producing

a

cesses, and failures

of

of

in

formed

re

sponsible and informed public opinion.

of

of

eral examples philanthropic

Inquiry.—There have been sev Inquiry sponsored Commissions of

Privately Sponsored Commissions

of

on

by

to

on

of

by

in

the United States foundations. Such was the case the Commission Inquiry Public Service Personnel already referred above. This, and contemporaneous affairs, another one international headed President of

as

* * **

Now affiliated with Columbia University the Institute Public Administration. John M. Pfiffner, Municipal Administration (The Ronald Press Co., New York,

a

of

of

of

of

on

a

in

1940), pp. 64–65. Stated Bulletin the Bureau Governmental Research New Orleans (December, 1934); objectives see Civic Research Institute, Begin the general question ning New Era (Kansas City, Mo., 1935), pp. 14–17.

PUBLIC RELATIONS

554

[Ch. 34

Coffman of the University of Minnesota, were sponsored by foundations.” Another example might be the studies financed by the Russell Sage Founda tion which resulted in the New York Regional Plan.” The movement which resulted in the establishment of the city manager charter, and ultimate reform in Cincinnati's municipal government in 1926, was preceded by an inquiry financed by public-spirited local citizens, and known as the Upson

Report.* The technical specialists who worked on this report are still prominent in the stardom of public administration, such as Lent D. Upson, Thomas H. Reed, C. E. Rightor, and others.”

An interesting combination of official and nonofficial elements entered into the Regents' Inquiry into the Character and Cost of Public Education in the State of New York. The funds were supplied by the General Educa tion Board, a Rockefeller agency, and the work was in charge of a special committee composed of three regular Regents with a layman in the person

of Owen D. Young, widely known industrialist. The research was under the direction of Luther Gulick, who was assisted by a number of specialists. A , brief general report, designed for popular consumption, was supplemented by several volumes of special studies.”

by

Other Civic Organizations.—Every American community has some type of civic organization which offers a forum for the discussion of prob lems of local government and administration. These organizations differ from the bureaus of municipal research in that their activities consist dominantly of discussion, as distinct from professional research. They vary a

as

a

in

to

of

all

slightly the way from domination the liberal reformer type, with left-winged tinge, taxpayer's association, with the conservative variety strong emotional animus against government operations general. Some times, they will have clubrooms with facilities for recreation, was often a

of

as

to of

commerce frequently governmental affairs. their proclivity for the estab quip the effect that when

a

of

One characteristic the American people voluntary organizations. There lishment

is is

of

in

tion the state government. The large chambers have staff members who devote their entire time

to

as

at

In

a

generation ago than the case with the city club which was more familiar present. very pro San Francisco the Commonwealth Club has had upon the course found influence upon local matters well administra

on

of

in

of

*

to

up

in

of

of

E.

D.

in

**

*

of

of

*

of

of

of

of

*

Inquiry Better Government Personnel, Report the Commission Public Service Personnel (Whittlesey House, McGraw-Hill Book Co., Inc., New York, 1935); International Inquiry into National Policy Economic Relations. Report the Commission Interna tional Economic Relations (University Minnesota Press, Minneapolis, 1934). Regional Survey New York and Its Environs (Regional Plan New York and Its Environs, New York, 1929), Vols. I–VIII; Regional Plan (Regional Plan New York and Its Environs, New York, 1929), Vols. I–II, plus maps. Upson, The Government Lent Cincinnati and Hamilton County (City Survey Committee, Cincinnati, 1924). Mosher, one public affairs The late W. the specialists, was also active the time of his death 1945. Luther Gulick (Ed.), Education for American Life (McGraw-Hill Book Co., Inc., New York, 1938).

ADMINISTRATION

Ch. 34]

AND THE PUBLIC INTEREST

555

three Americans get together, one is designated as president, another as secretary, and another as treasurer. The wide variety of citizen organizations having some part of their activities devoted to checking on government

all

makes any further attempt at classification questionable. . This multiplicity of citizen organizations has caused the National Munici pal League to inaugurate a movement to establish in each city a community council which would be a federation of

such organizations.”

city council would not

wholeheartedly

to

would

be

it

assurance that

the framers. Sometimes the first sympathy with its aims, was as

accordance with the spirit

of

charter was

no

of of

manager type

in

operated

be

in of

adoption

a

or

is

of

to

Citizen Organizations Defend City Manager Charters.-A chief weakness civic reform movements that they have been organized cope with an existing abuse scandalous situation and have disintegrated immediately after the reform objectives have been attained. Experience government soon indicated that the mere with the city manager form

City.” More often, the members

so

of

a

a

or

of

to

in

of

the movement, for persons

of

Kansas

be

in

the original council high type, who would friends fre America, were often elected quently avoid public office the first city councils under the new charter. However, after the lapse term two the case

a

to

the onerous duties and cumulative indignities heaped upon them would cause relinquish their seats. The result was that persons with those individuals lower civic standard would gradually replace them. Under such conditions

a

in

of

backsliding by setting antidote for this variety up continuing organization defend the city manager charter politically. per continuing organization with The Cincinnati Charter Committee keep the prin manent executive officer and staff. Its primary purpose a

of

to is to

a

is

a

to

Cincinnati developed

an

the charter would the old aldermanic form.

the council, and fact, there was

of

a

flexible tool that, distorted so

of

reversion

be

the spirit

to

the titular manager would often become

it

to

by

to

men friendly

to

city manager government before the people, and see that council Every purpose that are elected office. two years enters the councilmanic election campaign, utilizing all the honorable devices familiar American electioneering: speakers, radio, newspapers, house-to ciples

of It

by

is

as

It

in

of

voluntary service house campaigns, and many other types individuals. organizes the voting precincts and other electoral subdivisions much the same manner done the old-line political parties. has been on is

it

is

a

majority councilmen, the whole very successful, usually having elected question mainly responsible and there little that for the whole

in

of

of

*

of

P.

of

S.

*7

Howard Evans, “Citizen Action Through Community Councils,” Public Manage Jones, “Citizen Groups, Tool Democracy,” ment (February, 1941), pp. 44–45; Howard Academy Annals the American Political and Social Science (September, 1938), Vol. CIC, pp. 176–182. Council-Manager Government Seven Years Kansas City (Civic Research Insti tute, Kansas City, October, 1933).

PUBLIC RELATIONS

556 some

reputation

[Ch. 34

for good municipal government

by Cincinnati

possessed

since 1926.5°

Private Pressure Groups.-There

can be no true understanding

of the administrative process without a realization of the tremendous influence which private interest groups exert upon various public agencies. It has been made clear in earlier discussion that the growth of administration has necessitated an increase in the ordinance powers of public officers. Thus, more than ever before, the administrator possesses discretion which may vitally affect the practical operation of a basic policy adopted by the legis lature. Private agencies are well aware of this, and they are in constant touch with administration,

either in search of special favors, or seeking to obtain a more strict and effective application of the law. Such pressure on the administration is conducted through the use of the standard techniques of persuasion, cajolery, and intimidation which are employed to influence the legislature. Administrators in career positions are theoretically not as readily influenced by the political pressure which may be brought to bear on elective officials by groups with large voting strength,

by

of

their superior officers, and especially are they public opinion focused upon them pressure propaganda. recognized that pressure activity relating administration

the attitudes

to

A

its

if

sanitary code may become valueless ment prove susceptible bribes offered

or a

building code inspectors charged with enforce

some situations. by

plain corruption

in

to

It

must also may degenerate

to

be

sensitive responsive

to

to

all

money for campaign donations, and friendly contacts with powerful party leaders. Nevertheless, the broadest administrative discretion generally rests with officials in politically vulnerable positions, or with persons ambitious to obtain such high offices in the future. And on levels administrators are

contractors

and restaurant

OWners.

by

to

of

to

of

is

It

cry customary, course, for many citizens and pressure groups governmental activities and out against the expansion condemn a

he

to

he

to

it is

it,

of

in

as

bureaucracy general, though administrative agencies appeared mysterious process spontaneous creation. Yet, although does not admit the fact remains that when the citizen's interest foster to

in

its

secretary. American Hoover was conservative and individualistic; yet the Department administrative affiliates the states constitute some

of of

in

farmers tend

Agriculture and

its be

Commerce when Herbert to

of

in

of

ment

of

a

to

of

particular administrative activity, will heartily sub Thus, response business, one scribe the movement. the demands the most remarkable expansions took place the United States Depart

the expansion

9.

&

in

P.

*

Citizen Organization for Political Activity: The Cincinnati Plan (National Municipal Taft, City Management: The Cincinnati Erperiment League, New York, 1941); Charles Rinehart, Inc., New York, 1933); Arthur Harris, City Manager Government (Farrar Berkeley (Public Administration Service, Chicago, 1940), 25.

34]

Ch.

AND THE PUBLIC INTEREST

ADMINISTRATION

557

in

of

of

is

It

in

the most extensive and best-developed administrative machinery exist ence. well known that municipal business-licensing ordinances have usually come into existence because the pressure the stronger units to

pressure groups are busy fostering bureaucracy

of

Popular Control

the concrete.”

in

of

in

it

In

a

to

business who want establish ethical standards and eliminate the shyster. short, impossible escape the conclusion that while the Ameri seems can cries out against bureaucracy the abstract, the “organized appetites”

Administration

Policy.—There little ques profound popular tion that control the executive can have influence upon the course administration. There are the national level many examples where change the presidency has entirely altered the particular activity. attitude toward notable example was the appoint

John Collier

of

of

a

A

a

in

of

on a

of

is

Elective Executives and Administrative

of

D.

of of

by

of

on

to

of

in

Commissioner

of

entire policy

as

1933, when the Indian Affairs trying changed the Indian Service was from one assimilate the Indian into the white man's civilization and culture toward preserving his own culture one his tribal lands. Another was the attempt, posthumously negated the Supreme Court, President Franklin changed ideological complexion Roosevelt which the the Federal Trade through resignation Commission the forced Commissioner Humphrey."

ment

The President apparently desired aggressive action be

to

profoundly Theodore Roosevelt

the presidency

President

has

a

in

of to

the preservation and expansion

of

a

gave the original impetus forests the last quarter

The Recall.—In

in

given where change bureau activities. Thus,

be

examples could affected federal

as

of

he

in

of

in

prosecuting those coming purview abuses trade and commerce under the the Federal only lukewarm toward Trade Commission, and believed Humphrey the objectives the act Roosevelt understood them. Numerous other

century.”

the national

L.

of

a

as

in

a

was illustrated

by

departments,

as

upon the administrative

It

of

is

of

a

is

1938.

It

of in

reasonably accurate observation that the recall, administration, device citizen control most prevalent the ex treme western part the United States. can have substantial effect

a

Angeles

of

of

to

of of

of

the states and cities, the governors, mayors, and other officers are subject recall. The most recent example the mayor large city recall the was that Frank Shaw Los some

the fact that

55

S.

in

U.

I,

of

in

of

II,

v.

in

L.

S.

* **

p.

Herring, Public Administration and the Public Interest, 15. 602, The Court held this removal invalid Rathbun United States, 295 869, Ct. 79 Ed. 1611 (1935). Harold Howland, “Theodore Roosevelt and His Times,” Great Leaders Business pp. 130–149; see Special and Politics (Yale University Press, New Haven, 1921), Part Message Report the President the Natural Conservation Commission (Government Printing Office, Washington, D. C., February, 1909), Vol. pp. 1–9.

PUBLIC RELATIONS

558

[Ch. 34

the Shaw recall in Los Angeles brought about, directly or indirectly, ough reorganizations of the police, fire, and civil service departments.”

thor

Administrative Referenda and Polls.-A heartening aspect of the problem of maintaining effective control over administration is the readiness of administrators themselves to rely upon citizen opinion. In furthering this relationship, the traditional democratic device of the referendum, and the newer technique of opinion sampling, have both been applied to good advan tage by federal administrative agencies in recent years.

First of the

to employ these devices on a large scale was the Department of Agriculture. Since 1933 the producers of a wide variety of agricultural commodities have by referendum determined whether to invoke agencies

federal regulation and assistance in five fields: (1) tobacco inspection, (2) marketing agreements, (3) soil conservation, (4) production control, and (5) marketing quotas.” It is true that these votes were conducted in

accordance with statutory requirements, but it is also evident that this pro cedure was embodied in the law with the approval of the Department of

Agriculture. The rôle of the Department of Agriculture in these referenda has not been that of impartial canvasser of farmer opinion. Department activities have been openly directed towards obtaining a favorable vote for the pro grams outlined in the statutes. However, this campaigning has not gone so far as to nullify the control element embodied in the voting process. For example, marketing quotas were adopted by tobacco farmers failed to receive the necessary two-thirds majority for 1939.

for

1938, but

Moreover, to

qualify for voting, it is only necessary to be 21 years of age and a producer of the particular commodity involved, with the further restriction that ordinarily only one adult member of a family can vote. Despite this latter qualification, the agricultural referenda in the Southern states have extended voting rights to people who never previously marked a ballot. Particularly striking is the situation in Mississippi, where the cotton referendum vote in 1934, and again in 1938, exceeded the total presidential vote of the state

for

1932, 1936, or 1940.65

The Department of Agriculture opinion poll.

If

has also used the sampling method

of

properly conducted, a poll is highly accurate in its deter opinion. mination of It is extremely flexible, making it possible to determine the opinions of many kinds of groups on a wide variety of issues. It does not arouse as much comment or publicity as is the case with regular voting, 69 A standard work on the recall is Frederick L. Bird and Francis M. Ryan, The Recall of Public Officers (The Macmillan Co., New York, 1930). , Referendum,” 64 L. V. Howard, “The Agricultural Public Administration Review (February, 1942), Vol. II, p. 9; Renis Likert, “Democracy in Agriculture—Why and How 7" U. S. Department of Agriculture, 1940 Yearbook of Agriculture (Washington, D. C., 1940),

p.999. ** Howard,

op. cit., p. 23.

ADMINISTRATION

Ch.34]

AND THE PUBLIC INTEREST

559

so certain opinions may be elicited by polls without stirring up undue contro versy. Administration is simple, since only a few members of a group need be contacted and no provision is necessary for mobilizing and handling a mass turn-out of voters.

Finally, polls are relatively inexpensive.”

It is

the value of this device, Secretary of Agriculture Wallace, later Vice-President of the United States, joined with a colleague in stating: significant

that after experiencing

In fact, relevance

the type of information to the democratic conduct

provided by polls has so much

of administrative affairs systematic collection of citizens' views as

may predict the accepted function in public administration.”

that one a future

Standards for Judging Achievement and Performance.—One of the chief difficulties of citizen control of administration is to know when one

This problem would be greatly simplified if activity had a set of standards setting forth at least a mini mum achievement to be expected. There are many difficulties in the way of attaining this desirable end. Many governmental services are intangible in is getting good administration. each principal

their nature due to the fact that they are services rather than physical products. It is a fairly easy job to determine whether castings from the foundry are of good quality and if the cost of producing them is reasonable. When it comes to policing a city, or administering public welfare, the prob lem of standards is multiplied a thousand times. However, the field of public administration has not neglected the problem of standards, as was indicated in Chapter 14 above. SELECTED READINGs BOOKS AND MONOGRAPHS Altmeyer, 1932),

Benson, G. C. S. 1934),

Joseph.

Arthur

pp. 322–323.

Financial

The

Industrial

Commission

Control and Integration.

of Wisconsin.

(Madison,

(Harper & Bros., New York,

pp. 11–13.

-

Officers. (The Mac millan Blanshard, Paul. Investigating City Government in the La Guardia Administration, with Reports of the Activities of the Department of Investigation and Accounts. (Published by Author, New York, 1937), 178 pp. Buck, A. E. Modernizing Our State Legislatures. (The American Academy of Political and Social Science, Philadelphia, Pa., 1936), 45 pp. Committee Report. Citizen Organication for Political Activity: The Cincinnati Plan. (National Municipal League, New York, 1941), 47 pp.

Bird, Frederick L.,

and Ryan, Francis M. The Recall of Public Co., New York, 1930), 403 pp.

*

On the public opinion poll generally, see the symposium “The Public Opinion Poll, Dr. Jekyll or Mr. Hyde P” in Public Opinion Quarterly (June, 1940), Vol. IV, pp. 212– 284; George H. Gallup and Saul F. Rae, The Pulse of Democracy: The Public Opinion Poll and How It Works (Simon & Schuster, New York, 1940). ** Henry A. Wallace and James L. McCamy, “Straw Polls and Public Administration,” Public Opinion Quarterly (June, 1940), Vol. IV, p. 223.

PUBLIC RELATIONS

560 The Trojan

Dies, Martin. 1940),

366 pp.

Ford, Henry

J.

Horse in America.

Representative

pp. 176–198.

Government.

(Dodd,

[Ch. Mead & Co., New

34

York,

(Henry Holt & Co., New York, 1924),

Gill, Norman N.

Municipal Research Bureaus: A Study of the Nation's Leading Citizen-Supported Agencies. (American Council on Public Affairs, Washington, D. C., 1944), 178 pp. Herring, E. Pendleton. Group Representation Before Congress. (Johns Hopkins Press, Baltimore, 1929), pp. 210–216. Leiserson, Avery. Administrative Regulation: A Study in Representation of Inter (University of Chicago Press, Chicago, 1942), 292 pp. ests. McCarthy, Charles. The Wisconsin Idea. (The Macmillan Co., New York, 1912), pp. 181–182.

McGeary, M. Nelson. The Developments of Congressional Investigative Power. (Columbia University Press, New York, 1940), 172 pp. Mansfield, Harvey C. “The General Accounting Office,” in President's Committee on Administrative Management, Report with Special Studies. (Government Printing Office, Washington, D. C., 1937), pp. 173–202. (Minton, Balch & Co., 1929), Moley, Raymond. Politics and Criminal Prosecution. 241

pp.

Taft, Charles P.

City Management: The Cincinnati Erperiment. (Farrar & Rine hart, Inc., New York, 1933), 273 pp. (Houghton Mifflin Co., Boston, 1936), Van Cise, Philip S. Fighting the Underworld. 369 pp.

Winslow, C. I. State Legislative Committees: A Study in Procedure. kins Press, Baltimore, 1931), 158 pp. Upson, Lent D. The Government of Cincinnati and Hamilton County. Committee,

1934),

(Johns Hop (City Survey

535 pp.

PERIODICALS Bell, Laird. “Probes.” Atlantic Monthly (June, 1937), Vol. CLX, pp. 23–31. Bone, Hugh A. “Maryland's Legislative Council in Action.” National Municipal Review (March, 1942), Vol. 31, pp. 146–153. Campbell, Persia. “Volunteers in Public Administration: A Case Study.” Public Administration Review (Spring, 1944), Vol. 4, pp. 108–112. Ehrmann, H. W. “The Duty of Disclosure in Parliamentary Investigation; a Com parative Study.” University of Chicago Law Review (December, 1943-February, 1944),

Vol.

11, pp. 1–25, 117–153.

-

Evans, S. Howard. “Citizen Action Through Community Councils.” Public agement (International City Managers' Assn., Chicago, February, 1941),

Man Vol.

23, pp. 44–45.

Gosnell, H. F. “British Royal Commissions of Inquiry.” Political Science Quarterly (March, 1934), Vol. 49, pp. 84–118. Howard, L. V. “The Agricultural Referendum.” Public Administration Review

(Winter,

1942),

Vol.

2, pp. 9–26.

Jones, Howard P. “Citizen Groups, Tool of Democracy.” Annals of the American Academy of Political and Social Science (September, 1938), Vol. 199, pp. 176–182. Kansas Government Journal. “Better Laws through Research.” National Municipal Review (December, 1945), Vol. 34, pp. 544–546. McGeary, M. Nelson. “Congressional Investigations during Franklin D. Roosevelt's First Term.” American Political Science Review (August, 1937), Vol. 31, pp. 680–694.

MacMahon, Arthur W. “Congressional Oversight the Purse.” Political Science Quarterly (June, Marx, Fritz Morstein. “Commissions of Inquiry Science Review (December, 1936), Vol. 30, pp.

of Administration:

the Power

of

1943), pp. 161–190.

in Germany.” 1134–1143.

American

Political

Ch. 34]

ADMINISTRATION

AND THE PUBLIC INTEREST

561

Perkins, John A. “Foreign Government and Politics.” American Political Science Review (February, 1940), Vol. 34, pp. 85–96. , Scott, K. J. “Advisory Committees in the New Zealand Public Service.” Journal of Public Administration (Institute of Public Administration, Department of Inter nal Affairs, Wellington, New Zealand, March, 1942), pp. 24–31. Stewart, Frank M. “Milestones of the First-Fifty Years.” National Municipal Re view (November, 1944), Vol. 33, pp. 520–530.

CHAPTER

35

ADMINISTRATIVE PUBLIC RELATIONS discusses public administration, the first thing that comes into his mind is the public official—and to the average citizen this means a political officer. He is prone to believe that anyone who works for the government is bound to be either a politician or a political worker, and

When

the citizen

If the distinction between politics anything and administration is to mean in practice, administration must receive a certain amount of wholesome publicity divorced from the political in

hence a self-seeker

the baser sense.

fortunes of those in power. The administrative branches should be so organized and operated that they would carry on regardless of what political faction might be in power. There is a vast amount of information about administration,

as distinct from politics which many citizens would like to group know. One of farmers might want to be kept advised of the progress that government entomologists are making against the corn borer, whereas a metropolitan dweller might desire the public

library to notify him of rare to

an

intelligible and the farmers through library should bibliographical public readable medium. The facilities specialists most certainly made available wide variety cultural pursuits. and scientific

of

a

its

a

in

to

be

of

should

to

presented

be

findings

be

If

is

it

by

of

its

information, nonpolitical and un notice. This type vicissitudes, presented affected electoral should the citizen for what government entomologists are competent scientists, their worth. books coming to

to

be

it

In

The administrative branch should place itself before the public with constantly striving best foot forward. other words, should ascer be

by

of

if

to

its

procedures and then correct those pro tain what the public thinks about popular convenience, cedures suit this can done without violating the tenets science and technology. Thus, administration should resist be

by

being stampeded unreasoning popular passion into ignoring the lessons taught scientific progress. Flood contaminated waters should dosed

by

a

of

be

of

a

if

of

germs. But there with chlorine even the taste offends those not fearful legion are contacts which nonpolitical administrators make with the public and which could goodwill turned into prolific sources little to

required 562

the gradual growth

of

What

is

governmental agency.

is a

be

accomplished with restraint and good attention and study. This could Hollywood publicity office every major taste, and without attaching friendly,

ADMINISTRATIVE

Ch. 35]

PUBLIC RELATIONS

563

confidence between lay citizens and the bureaus. Such a cordial liaison, entirely divorced from politics, is sometimes referred to as public relations. mutual

What Is Public Relations?

its

Past discussions of public relations have emphasized publicity and report ing, giving negligible attention to the myriad daily human contacts which

of

to

is

of

of

of

very lifeblood. The objective public relations improve constitute understanding people the between the and those who administer the serv government. While the issuing press releases and the writing ices be

of

to

of

reports constitute important phases public relations activity, effec the circumstances, conditions, associations, and factors which influence the public's opinion administration."

of

tive the latter must embrace all

in

at

in

is

by

of

up

to

be

given Most significance must those little casual circumstances work-a-day public attitudes toward which fill life. The barometer telephone conversations, counter contacts, administration influenced furnishing and tidiness greetings reception desk, the taste mainte

of

by

of

premises, the dress and demeanor employees, and that intangible,” real, exemplified but nevertheless tone the organization which possesses

nance

high morale.

of

of

a

say that the

º

to

goes on

it

to

in

a

so

it as on is as to

of

to

Public relations must take cognizance of, and make some effort con may seem paradoxical, this form to, the sentiments the people. While statement not conflict with the necessity for creative and imaginative leaders occasion lead public opinion. One leading writer even goes emphasize public relations, far the broad social implications defining “those aspects our personal and corporate behavior which purely private and personal significance.” He have social rather than

is

an

life history

of

of

of

It

of

a

of

in on

be

to

of be

a

of

of

be a

. . .

public-relations policy enlightened for and always thorough understanding must the forces that make those rela tions what they are, careful analysis the social implications specific practices. advice, Public-relations worth anything, must grounded comprehensive knowledge the past, trends and relationships the field social change. must begin with the life history the person and the corporation, and more than that with the basis

the American

people:

social background.”

their economic,

political,

and

*

16.

&

(by permission).

to

1940),

Ibid.,

p. 2 L.

York,

p.

*

*

Elton D. Woolpert, Municipal Public Relations (International City Managers' Assn., Chicago, 1940), pp. 1–2. Childs, An Introduction Sons, New Harwood Public Opinion (John Wiley

PUBLIC RELATIONS

564

[Ch. 35

Even at the risk of repetition the point cannot be made too strongly that “Good public relations are essentially good personal relations.” “ It is not an activity indulged in by the slicker who utilizes deception, devious methods, and subterfuge. It does not consist of putting up a disarmingly wholesome front while at the same time utilizing questionable methods of influence behind the scenes. In other words, public relations is not lobby ing in the more disreputable implication of that word. The best public relations must be characterized by a friendly approach based upon good taste and courtesy. By good taste is meant not rigid conformance to the rules laid down in books of etiquette or required by imaginary polite society, but rather that inherent consideration which one human being has for another and which one senses and feels when men of goodwill meet each other in whatever part of the world and whatever walk of life.

to

its

A public relations program should be adapted to the fact that it is not directed toward a single generalized public, but must be concerned with many publics, as was so aptly pointed out by the Civil Service Assembly Committee on Public Relations of Public Personnel Agencies." Thus a relationship central personnel agency is concerned with the administra its

in

to

be

It

its

in

tive heads own jurisdiction. should also sensitive contacts professional associations, colleagues, personnel with and administrators

to

of

to

it

or in

a

of

be

an

judging public relations important factor other jurisdictions; indeed, should the professional standing unit the reputation which enjoys among those doing similar work elsewhere. The Committee went point out the importance legislative relationships and necessity on

is

it

in

so

of

of

keep the members the legislative body continuously informed about accomplishments, problems and goals. To attain the goals positive recruitment, heavily emphasized personnel philosophy, recent

of

of

on

as

to

it

be

to

at

of

create favorable impressions the source recruitment. To keep good achieve these ends would well the side those who publicity, such control the avenues the newspapers and radio broad necessary

Even the miscellaneous category designated the general public citizenry divided into the rank and file the and pressure groups, public relations. The report the latter presenting formidable problem pro-civil groups divides them into the service and the anti-civil service a

in

of

be

may

as

casting.

in

a

leaves the premises where

he is a

no responsibilities after

he

a

of

by

a

of

it

be

being single public acting will seen that instead unison, there are many publics motivated thousand divergent and counteracting cross-currents attitudes and opinions. There are those who contend that public employee free agent with so

groups,

works, but from

ff.

p.

11

of

E.

*

of

p.

p.

C.

of

G.

*

Burke, “Public Relations, Publicity, and Research,” Education (November, Arvid Municipal Public Works 1940), Vol. LXI, 133; Donald Stone, The Management (Public Administration Service, Chicago, 1939), 283. Mosher, Committee on Public Relations Public Personnel Agencies (William Chairman), Public Relations Public Personnel Agencies (Civil Service Assembly, Chi cago, 1941),

Ch. 35]

ADMINISTRATIVE

PUBLIC RELATIONS

565

a public relations standpoint a public worker is on duty twenty-four hours per day. His private life is not his own in the same sense as is the case with many others. We do not have to look very far to see familiar instances where the public demanded certain standards of personal conduct from high officials with civil service status; the standards demanded in these cases being higher than many successful businesses

look for from their own executives. If the public employee must drink, and if his domestic relations are not happy, he owes the service an obligation to avoid scandal. There are ways to do things without unnecessarily soliciting the attention of those who disapprove. To say this is not to counsel hypocrisy and subterfuge, but simply to point out that it is the better part of discretion to avoid the washing of a questionable type of linen in public. Large numbers of influ ential people do not approve of the new freedom as to liquor and domestic relations.

Because there is a widespread impression, however incorrect, that the public business is conducted in an atmosphere of Craft and corruption, it becomes incumbent upon the individual employee to see that his conduct

will tend to dispel popular misconception in this respect. One way of doing this is to follow a policy of meticulous behavior with respect to the accept ance of gratuities. It may seem innocent enough to accept boxes of cigars, theatre passes, or bottles of liquor, but such offerings usually carry an implication of reciprocity. A certain official was once tendered an expensive dressing robe for Christmas, but returned it with a courteous note contain ing thanks and an explanation of why it could not be accepted. The donor apologized, expressing relief and gratification, having acted contrary to his own conscience in the belief that it was expected. Irrespective of his motives, the donor in this case surely must have had his respect for the probity of public service increased manifold. Persons on the payrolls of public agencies have many contacts with citizens when not under supervision or when not on duty. There is a variety

of social intercourse in lodges, bridge parties, church gatherings, clubs,

lunches, dinners, conferences, and conventions. The off-duty associations are so infinite as to defy enumeration. Under each and all of these circum stances the individual civil servant is indelibly stamped as representing the quality, competence, and stature of public employees as a group. essential component of a goo? public relations program is the partici pation of officers and employees in social and professional group activities. Thus, a city department head in a municipality may belong to a luncheon

An

club, a chamber of commerce, a country club, a downtown social club. lodges, and possibly veterans' organizations. This does not mean that an administrator should be a joiner, a gladhander, and backslapper, for he will probably be better off in the long run if he practices a certain reserve in his associations;

but it is good for him to lay up a nest egg of goodwili

PUBLIC RELATIONS

566

[Ch. 35

against a day of adversity, and to stimulate popular confidence by establish ing over the years a reputation for being a good manager and possessing technical competence and probity. Successful administrators often use their community contacts to build community sentiment in favor of ade quate budgetary support. It must be emphasized that public relations is not to be regarded as a palette of colorful devices with which to camouflage the shortcomings of an organization. As one writer has said, “Public relations is not an ambu lance parked at the bottom of a precipice. Rather, it is a fence built at the The preventive function thus referred to requires candid self

top.”"

followed by a straight brought forward elimination of the weaknesses thus to light. The elabo rate use of deceit is no substitute for a year-round program of harmonizing

analysis and the honest solicitation

and the public on a mutual give-and

the activities of the administration take basis."

Depressives

of criticism,

to Good Public Relations

Low Prestige of Public Employment.—William

“

it

at

of

as

judgment

statement

its

for the

of

Bennett Munro is that, striking an average, “it would probably be within bounds to say that the American city does not get more than sixty cents on the dollar for payroll expenditure.” Without vouching validity estimate, accept for the this one can least the mature

authority

to

is

it

of

of

a

of

of

a

it

as to a

ascertaining what the man noted scholar. When comes public employment career, possible on the street thinks public opinion. Most students public obtain small cross-section questionnaire administration are familiar with White's studies how the

or

working for

private firm employer.” public administration have

a

compared

to

a

as

in

to

as a

public regards public employees and public employment career. The responded questionnaires Americans who these the late 1920's and early 1930's had decidedly adverse attitude toward public employment to

a

to

by

of

by

of

great deal over virtue their social orientation. America has enthroned the business man, the financier, and the industrialist, and one's strength and prestige has been judged almost entirely one's ability survive and

The public relations

come

to

as

in

emerge above the common level the economic struggle. The business community has always tended regard the government being its natural

of

p.

—

in

to

p.

of

L.

of

p.

L.

9

*

B.

I,

7

E.

p.

°

Steward Harral, “Winning Community Confidence Through Public Relations,” Educa tion (November, 1940), Vol. LXI, 168. William Mosher and Stuart Van Dyke, “Public Relations for Personnel Agencies,” Public Personnel Review (October, 1940), Vol. 19. Munro, Municipal Government and Administration W. (The Macmillan Co., New York, 1925), Vol. II, 27. Chicago (University of D. White, The Prestige Value Public Employment Chicago Press, Chicago, 1929), 37; D. White, Further Contributions the Prestige Chicago Press, Chicago, 1932), pp. 18, 24, 36, Value Public Employment (University 41–47, 48–54, 59–64, 65–67.

ADMINISTRATIVE

35]

PUBLIC RELATIONS

567

its

Ch.

a

fell into the security and peaceful refuge

so

for survival and

of

a

to

as

enemy, and has looked upon expansion with apprehension. Those who government regarded work for the are the weaklings who were either too timid venture business career or who lacked the stamina essential

govern

ment job. be

an

it

is

so an

of

of

is

it

While seldom stated publicly, and probably would not admitted by those concerned, the fact remains that those employed are subcon ciously aware employee groups their inferior social status. Leaders average public suffering have said that the service worker from inferi ority complex. Of course, all people have inferiority complexes, may is

to

of

is

position

Lack

of

ice

to a

a

of

in

to

in

indication this respect.

It

be

that the public worker much different from anyone public relations else devise and execute the task ways and means upon employee morale counteract the corrosive effect civilization where supremacy the business man relegates public serv

not

lower prestige.

Pomp and Ceremony.—A

of

an

of

distinguishing circumstance pomp and ceremony, attitude diplomats abroad who insisted Europe upon being introduced simple American the sovereigns dress rather than the prescribed regalia. The creed the common man exemplified equalitarian philosophies the Jefferson and Jackson

of in

of

in

as

in

to

of

by

of

American democracy has been the lack characterized our nineteenth-century

In

in

and the populist movements has always conditioned American political opinion. the long run the frontier spirit and the rough-and-ready social mannerisms of the West characterized the American of the nineteenth cen

of

tury and extended well into the twentieth.

The leaders America were hardheaded men; and the founders the great fortunes were lowly origin. The republic prohibited the conferring individuals

of

of

of

practical,

is

in

of

of

of

nobility, and even today the acceptance orders decorations from eign governments frowned upon some circles. During times longed peace, military distinctions have not only vanished, but have

for

pro

suf

civilian clothes.

its

of

of

In

a

in

it

of

an

of

is

be

by

at

to be

is

the simplest

the American democracy from pomp and ceremony perhaps genuine strength, but decried and element deficiency public relations not least partially responsible for

This aloofness not may

Commander-in-Chief

in

States reviews the armed forces

as

by

is

as

to

in

of

by

a

to

as

point where military services were neglected, was evidenced the intense pacifism both the American and British people ceremony has been the two decades prior 1939. Indeed, severely simple evidenced the fact that the President the United fered negative prestige

royal, the glamour

of

ical, feudal,

or

of

of

of

Europe. monarchy suffered the older governments the days aristocracy, government premises prestige and carried with them the the sovereign and ruling classes. Whether the governing authority was canon aristocracy,

palaces, estates,

wealth,

-

PUBLIC RELATIONS

568

[Ch.

35

As our society

on

by

in

no

it.

Today under democ and the pageantry of militarism were attached to racy longer exists. City halls and courthouses America this situation generally are avoided Americans.”

of

is

a

of

to

on

a

to

in

as

in

as

of

it

becomes more mature, will undoubtedly take more polished and more the characteristics old civilizations. Public adminis already attracting the abler elements tration career the country's youth ever-increasing numbers. Influential citizens are becoming more proportion they have civic-conscious devote smaller portion their time the bare economic struggle. Public service will take more

branch, and with

royal courts, there will

be

the outward evidences

the pomp and ceremony

govern

of

of

the administrative

of

of

a

go

in

up or

prestige, whether the political dressing and toning this will

Instead developed simple and democratic rituals which will appeal the emotions of all Americans whatever be their station and economic status. When that to

ment.

a

or

In

of

to

a

so

is

to

do

to

to

of

public premises entirely the people not come their own pay taxes, free will. Those who come secure licenses, fake out building permits undoubtedly with certain degree irritation. police courts, jails, and other penal agencies there those who come

of

portion

do

so

day comes, administrative public relations will find itself well fortified. pro large Public relations suffer also from the disadvantage that

The parks around to to

of

of

an

unquestionably kindled attitude awe and fear. public buildings, the steps, corridors, and lobbies tend people come places for idle men. Large numbers

become

loitering

public buildings

of

or

so

in

of

only consequence some misfortune resulting from bereavement, many people enter upon traffic accidents, and lawsuits. This fact, that public premises reluctantly involuntarily, makes the job public rela

It

to

a

or

department store. theatre, hotel, tions infinitely more difficult than for place statutory and charter restrictions upon has been quite general public funds for public relations and publicity. Thus, for many years the country's greatest municipal electric utility was prohibited law from spending money for advertising and publicity, with the result by

of

the spending

be

to

is

it

Secondly,

of

of

an

by

to

had

to

it

subterfuge for such purposes. There are several resort thought reasons for this parsimony, the first being that some expenditure taxpayers' uneconomical the hard-earned contributions.

that

account Rogers Woodruff, Vol. XX, pp. 588–592. Clinton

an

publicity

be

to

con

unethical variety, using question

the symbolism and pageantry British local government, see “British Mayors,” National Municipal Review (October, 1931),

of

of

*

For

an

nected with high-powered

the feeling that public relations

of

Thirdly, there prevails somewhat

is

in

to

to

of

to

of

is

it

another manifestation the American business commu government and resistance administrative expansion. publicity and public relations are The instrumentalities denied society desired those whom the dominant forces muzzle and throttle.

nity's mistrust

Ch.

35]

ADMINISTRATIVE

PUBLIC RELATIONS

539

of propaganda to secure popular support for unsound causes. fourth, The and often the most potent opposition to government public relations, is the deep-seated feeling that somehow or other such activity cannot be separated from the political administration or machine then in power. Whatever may be the truth or justice of these considerations, there is no escaping the fact that they constitute strong obstacles to the develop ment of administrative public relations. Administrative public relations suffer by virtue of being confused in the public mind with the political fortunes of those holding elective office, and therefore should be divorced entirely from any effort to reelect the incum able tricks

bent political

compels one to admit that this is an ideal goal to be striven for rather than a that can be accomplished; nevertheless, here is one more very concrete example of the necessity to apply good administrative theory to practical situations. The distinction between pol officers.

itics and administration,

Realism

propounded

at length in the first chapter of this

book, requires that administrative public relations be divorced from poli tics. That is fundamentally why C. E. Ridley in his standards for public reporting advises the omission of photographs of officials.” That is why a permanent administrative

official should never participate in a campaign

for the election of someone running for

office.

It is the fundamental reason

behind the laws prohibiting political activity on the part of those holding civil service positions. One of the greatest depressives to public relations is the widespread feeling that civil service results in excessive security, indolence, lack of initiative, and a general letdown in effort.

There are two angles to this situation. In the first place, governmental may continue to exist in spite of defective public relations, whereas the elementary urge of self-preservation forces private businesses to be alert to public reactions. Those who are friends of civil service Inust be especially alert to see that job security does not permit letdown in this agencies

respect. One splendid executive claims that he is considerably hampered in developing proper public relations because of civil service. While this may be an exaggerated statement, a genuine merit system must demand that employees be responsive in this respect. Secondly, even though gov ernmental agencies strain every effort to please the public, a large part of the people will regard government as a sinister, coercive force, depriving them of freedom. The derogatory use of such words as “regimentation” and “bureaucratic” characterizes these attitudes.

Administrative officers complain very frequently that the civil service laws and regulations deprive them of needed flexibility in dealing with personnel. It is not uncommon to hear one fret at his inability to take ** Clarence E. Ridley and Herbert A. Simon, Specifications Report (International City Managers' Assn., Chicago, 1939).

for the Annual Municipal

PUBLIC RELATIONS

35

on

proper disciplinary

[Ch.

of

all

570

strong natural pull toward the maintenance the employee mass being much more interested rity for than the opportunity for few

is a

to

of

dead level

mediocrity,

of

to

as

of of in a In

to

of

action and blame his difficulties civil service. emphasize security seniority aspects tend the and their employment and resist emotionally the giving any authority managers judge one being better than the other. other words, there Employees

in

of

part

in

feel that they have

of

in

is a

to

a

in

lower supervisors are

a

to

a

in

all

the maintenance secu rise above the average. gloomy and Even though these conclusions may have been stated defeatist spirit, there are, nevertheless, managerial remedies and counter moves available. The chief among these sustained type institutional training advocated previous chapter—one which the workers and Leadership

of

to

genuine effort has been made solicit the indigenous leadership the employees themselves through their own groups. The following para graphs describe some establishing the methods which may used

in

of

be

a

tion,

In

on

in

affairs.

a

the conduct this respect must come from both above and below. Almost uniformly those offices which have good public contact atmosphere are headed by persons who are sensitive this point. addi

institutional

made

-

and conducting public relations training.

Training for Public Relations Training

an

a

to

be

for public relations should permeate the entire organization confined few persons with extrovert characteristics who organiza special aptitude along these lines. All persons have in

seem

to

and not

in

no

it

confined

in In

is

the public relations program. becoming solid and substantial.

of if

public contact aptitudes; but these few, will fall short

order

to to

be

of it

is

do

to

be

tion can trained meet their public relations responsibilities better than they would denying that any par without training. There persons there will relatively few who have marked ticular group

of

a

it

is

is

in

is

a

it

be

it

to

of

is

positions secure rank-and-file cooperation, the first essential for those leadership expected. Almost invariably when let known that graciously caller received the outer office, but reflection the

in

of

by

in

is

of

of

demeanor and desires the chief the inner sanctum. The first technique public relations training the tone set the example those authority.

Long, “Public Relations 1937), Vol. pp. 5–22.

I,

E.

Norton terly (October,

Policies

to

its

by

a

both management and employees transportation. Almost overnight of

engendered

newer methods **

of

state

of in

to

of

of

is

of

A

of

employee relations notable example the effectiveness the Bell Telephone System, where management has gone out way secure goodwill allegiance recently the and the workers.” More the railroads have developed public relations programs counteract the defeatist mental the competition

training approach

the Bell System,” Public Opinion

Quar

****

ADMINISTRATIVE

Ch. 35] transformed

PUBLIC RELATIONS

57I

their attitudes into an outlook of aggressive salesmanship and

service.” it may seem, often employees have not been given to desirability understand the of extending themselves in personal contacts. At times employees are subject to great provocation, many citizens even using disrespectful language when addressing them. Workers must be Incredible

as

impressed with the fact that these rebuffs are to be taken in stride, and that it is much more effective to meet an epithet with a smile rather than to retort in kind. Many of the newer agencies of the government, such as a department of public health, must rely upon public cooperation to be effec tive. In a certain great city the employees are told that they are the direct representatives of the commissioner of public health and should conduct themselves in such a manner as to command the respect due that high office. If employees of the department of health rub people the wrong way, the clients will not come back, for these are the cooperative contacts with out which the health program cannot go on. The rank and file of employees cannot be expected to enter enthusiastically into a public relations program if they have not been taken into the confidence of management and armed with the essential institutional facts. Even the humblest of workers should be kept informed about what, in general, is going on; and this ordinarily can be accomplished without disclosing state secrets.” Tools and techniques to obtain this end include the employees' handbook, the house organ or magazine, and the supervisorial

conference. The most effective method of teaching employees how to make public contacts is the supervisorial conference held on the lower supervisorial level, with the supervisors going back and imparting what they have learned

to their own worker groups. The conference method is desirable because it maintains the interest of the trainees and because it permits indirect or vicarious criticism. By the latter is meant that through the discussion of

cases in which poor public relations conduct is criticized and better per formance suggested employees are advised of their own shortcomings without making it personal. Supervisorial conferences can take up such

matters as answering the telephone, dress and personal appearance, deal ing with a disgruntled person at the counter, how to adjust complaints, the

writing of pleasing letters, and many others.”

A

public relations training program should

be sold to the employees on

the basis that it is to their selfish interest to have their organization enjoy a good public reputation. An organization which is generally thought to be ** Thomas W. Parry, Jr., “Public Relations for a Railroad,” Public Opinion Quarterly (January, 1939), Vol. III, pp. 154–161. (January, ** A. P. Ryan, “Intelligence and Public Relations,” Public Administration 1936), Vol. XIV, pp. 59, 63. 15 Note methods used to train census enumerators for contacting citizens during the 1940 census. Charles A. Thompson, Public Opinion Quarterly (June, 1940), Vol. IV, pp.

311–318.

º

-

PUBLIC RELATIONS

572

[Ch.

35

progressive, vital, and energetic will tend to have more good jobs to which competent persons may aspire for promotion, and association with such a unit will always look good upon one's employment record. Furthermore,

from the standpoint of

the individual,

people get along in the world by attracting the attention of important personages. There are various ways of attracting such attention, but one of the most important is one's outward conduct and demeanor while meeting other people. Superior public rela tions performance is indicative of character, good breeding, self-control, judgment, and general competence. It will attract the attention of superiors if practiced sincerely and constantly.

Internal Checks and Management Controls The principle of internal checks can

be utilized

both to control public

relations and to sound out, or ascertain, public attitudes and sentiments toward the conduct of administration. A phase of public relations almost entirely amenable to internal check is the handling of complaints. It is probably

a natural reaction for most people to resent complaints, for humans generally do not like to be criticized. It is open for the adminis trator either to minimize the importance of complaints, or to recognize the inevitable and deal with the problem realistically and boldly. It goes with out question that the latter is the correct procedure. E. D. Woolpert divides procedure into four principal stages: (1) receiving the assignment (2) of responsibility for investigation and correc follow-up of complaints, and (4) notification correction.”

(3)

of

tion,

a an

complaint,

all

good complaint

or by

of

in

to

to

a

is

It

be

Employees should even-tempered and trained receive complaints courteous manner. desirable practice make written record trivial—many complaints excepting having special forms for all the most to

fit

some central office

a

or

assigned

to

for which should Dallas, Texas, has seen

be

responsibility

is

of

to

to

forming this purpose. The written record helps fix responsibility upon appropriate agency basis which refer the matter the officer for investigation. The third phase complaint procedure the follow-up, the person.

been taken

to

of

be

or

a

to

set up central complaint bureau.” When complaint investigated the has been and some action recommendation has been forthcoming, the person who made the complaint should notified advantage formally apprising thereof. This has the the citizen that his complaint was given substantial attention, and that remedial action has

correct the condition about which there was complaint.”

p.

of

in

9,

6,

D.

at

in a

18

p.

*7 10

Woolpert, op. cit., 21. Ayres Compton, “A New Public Relations Field—the Complaint Bureau,” American City (March, 1941), pp. 50–52, forms. Morris Llewellyn Cooke, Notes on Governmental and Industrial Administration Democracy, An address delivered the Commencement Exercises The American Uni versity, Washington, C., June pp. 1938 (mimeo.), 10. See also Donald Stone, op. cit., pp. 24.8—249. John A. Vieg, City Manager Government Ames (Public Adminis tration Service, Chicago, 1940), 19.

ADMINISTRATIVE

Ch. 35]

PUBLIC RELATIONS

573

Another type of check is that of service sampling, consisting of various methods of testing the quality of public relations. Thus, one city sends out postcard ballots to ascertain what citizens think about various aspects of municipal administration.” There has been some experimentation with the attitude study, using the technique popularized by the public opinion polls. A schedule of questions is posed by trained interviewers, to secure the reaction of individuals chosen upon the basis of a sample designed to reproduce an exact cross-section of the population whose opinion is sought.

This type of attitude survey is widely

used

in marketing research and can

of public relations.” One of the most fruitful sources of useful information upon the status of public relations is the knowledge thereof possessed by the employee group itself. The trouble is that this is so often the last place where management will go to secure information. Moreover, employees are often very reluc be a valuable tool

tant to tell the truth about what they know, because they sense that adverse information will be unwelcome and that employees voicing it will be stamped as disloyal faultfinders. One of the best ways to overcome this develop supervisorial obstacle is to the conferences in such a manner that employees will feel free to speak without fear of reprisals. It is often said that one reason why supervisorial conferences do not materialize in prac

to

exceedingly useful information relative the deficiency relations and suggestions for improvement.

of

supervisorial wealth

of

it

ment is willing to have the democratic spirit permeate conferences, the chances are that can receive therefrom

a

its

tice to the extent advocated by management theory is that the authoritarian mental grooves of top management will not permit the discussion of vital company matters by persons on the lower levels. Wherever top manage

the unit's public

SELECTED READINGs

168

Paul

Big Democracy.

(Alfred

A.

Appleby,

H.

BOOKS AND MONOGRAPHS Knopf,

New York, 1945), pp. 128–

L.

in

L.

Bernays, Edward Bernays (Ed.), Careers for “Public Relations,” Edward Men. (Garden City Publishing Co., Inc., New York, 1939), 431 pp. Cahalan, Don. Public Opinion the City's Budget Planning. (Civic Research stitute, Kansas City, Mo., 1943), pp. Jones, John Price, and Church, David M. At the Bar Public Opinion—A Brief for Public Relations. (Inter-River Press, New York, 1939), 181 pp. Lee, Ivy, and Ross, Industry. Public Relations (American Management Assn., New York, 1937), General Management Series No. 132, pp. in

14

J.

º

T.

of

32

on

In

**

(May, 1939), pp. 138–140. Agriculture Note methods used by the United States Department ascertain Henry popular opinion toward its programs. McCamy, “Straw Wallace and James Public Administration,” Public Opinion Quarterly (June, 1940), Vol. IV, pp.

Stuart M. Weaver, “Public Opinion by Post Card,” Public Management

XXI,

to

L.

A.

of

*

Vol.

PUBLIC RELATIONS

574 Levy, Harold 1943),

Study in Public

P.

pp.

163

Relations.

(Russell

[Ch.

35

Sage Foundation, New York,

Macmahon, Arthur W., Millett, John D., and Ogden, Gladys. The Administration of Federal Work Relief. (Public Administration Service, Chicago, 1941), pp. 269– 300.

Mosher,

William E. (Chairman). Public Relations of Public Personnel Agencies. (Civil Service Assembly, Chicago, 1941), 259 pp. Rautzahn, M. S. How to Plan a Public Relations Program. (Social Work Pub licity Council, 1939), 20 pp. Schmeckebier, Laurence F. Government Publications and Their Use. (Brookings Institution, Washington, D. C., 1939), 479 pp. City Managers' Woolpert, Elton D. Municipal Public Relations. (International Assn., Chicago, 1940), 50 pp.

PERIODICALS

1936),

Vol.

Vol.

in

a

pp. 507–515.

“Intelligence and Public

P.

A.

1939),

3,

(July,

Ryan,

in

C.

of

C.

J.

in

8,

in

of

G.

7

to

E.

5,

in

8,

8,

lic

Baldwin, William H., and Mayer, Raymond C. “On Buying Public Relations.” Pub Opinion Quarterly (Summer, 1944), Vol. pp. 226–231. Belden, Clark. “Wartime Public Relations—A Survey.” Public Opinion Quarterly (Spring, 1944), Vol. pp. 94–99. Bowles, Chester. “OPA Volunteers: Big Democracy Action.” Public Adminis pp. 350–359. tration Review (Autumn, 1945), Vol. Dimock, Marshall “Selling Public Enterprise the Public.” - Reprinted from pp. National Municipal Review (December, 1934), Vol. 23, Hitchner, Dell “The Failure the League: Lesson Public Relations.” Public Opinion Quarterly (Spring, 1944), Vol. pp. 61–71. “Training Employees Kinsey, Don Public Relations.” Public Management (June, 1938), Vol. 20, pp. 171–174. Murray, Industry.” H. “The Development Sound Public Relations Program Advanced Management (July–September, 1940), Vol. V, pp. 98–103. Roat, Evelyn “Current Trends Public Relations.” Public Opinion Quarterly Relations.”

Public

Administration

(January,

14, pp. 59–65.

by

R.

Shaw, Ralph “Must We Love Our Public Relations?” American Library Asso ciation Bulletin (April, 1940), Vol. 34, pp. 241–244, 302. Weaver, Stuart M. “Public Opinion Post Card.” Public Management (May,

Vol.

(March,

21, pp. 138–140.

Elton

D.

1939),

Woolpert,

“Municipal

Public

Relations.”

Public

Opinion

Quarterly

4,

pp. 164–167. Vol. Woolpert, Reporting Elton D. “Municipal (June, 1940), Vol. 22, pp. 173–176. 1940),

and

Publicity.”

Public

Management

CHAPTER

36

DAY-TO-DAY NORMAL CONTACTS BETWEEN EMPLOYEE AND CITIZEN Courtesy.—It

may seem rather unnecessary even to suggest that public employees should practice common courtesy in every possible contact with the citizen, yet the complaint on the part of the latter against the former is so widespread as to suggest some basis in reality. One of the negative connotations of the word “bureaucracy” symbolizes bluntness, curtness, and outright rudeness. The bureaucrat is supposed to be one who, feel ing secure in his position, is conscious of no necessity to make himself agreeable to others. There are undoubtedly many persons on public pay rolls who exaggerate unduly the citizen's acknowledged duty to obey the law and conform to official mandate. They would apply the techniques of even

the drill sergeant (which are splendid in their place) to the citizen's official contacts in a democracy. They hide their own deficiencies behind the sanc tions of the law and the majesty of sovereignty. Such individuals, how

lie

ever, cannot take the whole blame for the allegedly poor relations of gov ernment, because the causes go very much deeper. As was indicated in the previous chapter, while management is not entirely responsible for the sit

A of

in

of

uation, the remedies do, in fact, very largely with management. management improving administrative public The responsibility relations must take the form continuous training based upon job analy

in

of

of

of

in

is

to

of

great deal employees sis and definition duties. the failure public they their contacts due the fact that have never been told what their responsibilities are this connection. That type conference train

of

by

and common patterns human something way which certain way, officially ordained, why not the do

it in

a

a

the public wants

of

based upon the folkways

it is is to its at do all

be

is

behavior.

If

ments should

if

be

in

be

on

ing which impresses the lower supervisors the necessity for friendly con tacts with citizens will inevitably reflected the rank and file Courtesy and friendliness will employees. reflected automatically the training approach motivated the principle that administrative arrange

5.5

by

a

to

A

in

to

on

to

in

is

if

is

different from that which manner the people want feasible? Thus, certain university campus paths said have laid out sidewalks the worn students building. their natural passage from building certain large American city has been conspicuously successful getting pedestrians conform

PUBLIC RELATIONS

576

[Ch. 36

to

at

set

to traffic signals at intersections because the traffic engineer conducted experiments to see how long an interval people would wait before becoming impatient. Thus, the “go” signals were intervals conform with the time which pedestrians would wait the sidewalk before violat ing the traffic regulations. The layout offices should follow the principle Indeed, the most convenience the citizen. administrative public rela greatly facilitated charge would base their plans tions would those in

if

be

to

of

of

at

of

length

in

or

to

In is

it

to

of

be

all

to

If

be

to

be

upon how people may expected behave either individually the administrative arrangements can made conform such behavior, will benefit; but there may times when the sad and stern duty officialdom resist the behavior pattern. other words,

mass.

cannot always dispense sweetness, for becomes necessary times become repressive. That what makes the public relations police department perhaps the the most difficult all. There are numerous instances where governmental contact with the

of

it

printed forms. the use such forms are austerely phrased, omitting even the administrative instructions

open letter which appeared

is

a

of

business letter. The resentment sometimes

the curt directions embodied

ingly expressed

an

ated

by

by

too frequently stereotyped courtesies

cre

amus

of

All

of

based upon correspondence involving

in

citizen

is

of

is

to

at

administration

in

in

I

a

to

I

year before the European war broke out, had take short English port, up France. While we were tied an watched

an American lady going through the English customs.

A

to

trip

at

A

.

.

.

as

one our business publications, entitled “Say Please, Mr. Tax Collector" Addressing the Tax part: Collector “T. C.,” this anonymous writer said,

handsome,

'

C.

of

so

It

!

it

1

p.

Please,

is

So get

be

remember that one can firm and yet courtesy which commands respect. Cour is

to

"

suspected criminal.

of

The most important thing courteous, exercising that type “Say 78.

a

if

being and less like C.—say “please.”

a

human

yourself,

T.

wise

to

more like

a

a

it

is

-

in

it

to

a

of

to

T.

to

he

uniformed customs official aided her with her declaration. “I’m just explained, while the lady here assist His Majesty's guests,” just course, thrilled. Of we all know this was the old blarney, gold flashing guy smile, For all his braid and that was there see that His Majesty got his uttermost farthing out Yankee tourist. But put that way how much nicer was have reminded me our very own American customs men New York City—it was different. The French were the same way. They taxed you every time you turned around; but their printed forms were just reeking with “s'il Paying taxes pleasure. vous plaits” and “woulez-vous.” never But becomes darned sight more bearable the taxpayer treated

Mr. Tax Collector"

Nation's Business

(March, 1940), Vol.

XXVIII,

DAY-To-DAY NORMAL CONTACTs

Ch. 36]

577

tesy does not consist of being weak and apologetic, easy or a good fellow ; indeed, the most damaging type of demeanor is exemplified by the employee who explains the existence of a regulation apologetically, indicating that

in

to

as

as

together.

my personal experience

as

In

indicates that firmness and courtesy may

the organization experienced police administrator

well

go

morale of the individual who exercises general. The following quotation from

an it,

he has low regard for it and would rule otherwise were it in his power to do so. This is a form of administrative disloyalty highly corrosive to the

a

a

a

to

a

is

of

I

in

in

in

I

in

as

I

have known officers that were stern temperament and training could make and severe and determined them—yet they were courteous. high places. found them My experience has brought me also contact with police officers effrontery, superiority expressed egotism who and their human con tacts. did not find them the high places. police uniform for There no provision on the shoulder balancing chip. Donning that uniform does not set the wearer apart herd the rest of the race of men about like circus worker with “bull hook” handles his elephants.”

friendly spirit; yet

in

meet citizens

a

trained

in

Workers should

to

be

The Caller at the Public Office

of

a

is

if

good-natured. Firmness and friendliness this firmness antithetical; yet situations which call for firm dealing tend

to

not

need

be

purpose better

is

of

be

by

many situations this friendliness must balanced reserve which per mits firm dealing. One the most apt illustrations that the traffic officer who must meet the public with firmness and yet will accomplish his

make friendly demeanor difficult.

“Shunting

of

in

of

to

he

to

he

or

is

to

to

from Pillar Post.”—One the most perplexing situ finding ations deal with the case the citizen who has difficulty another, each the office information seeks. He goes from one place person failing give him precise information, but suggesting that might when situations

of

is

to

particular location. very aggravating the citizen merely this kind arise from indirection and the desire

It

a

at

get satisfaction

Olander,

to

remedied

Police Courtesy

a

to

of

be

administrative action, through the procedural reforms. and the institution For the property owner who desires secure build

can

(privately printed, Lansing, Mich., 1937),

p.

Oscar

G.

instance, take the case

by

to

organization

of

work. These

of

of

study

to

by

is a

be

it

is of

flow

*

In

an

by

be

a

of to

irritating interruption. relieved from other words, getting rid passing along problem citizen him difficult deal with admin training istratively, for only long-term can remedied and stimulation public relations morale. However, there are instances where the citizen post” owing poor organization and the faulty “shunted from pillar

10.

PUBLIC RELATIONS

578

[Ch.

36

ing permit and discovers that he must get clearances from the city planning commission, the zoning authority, the building commissioner, the city engi neer, the fire department, and the health department. Some cities have been enough to establish a central desk where a clerk specifically trained in and assigned to that work can see that the proper forms are departments, thus requiring the citizen filled out to meet the needs of make but one call central spot.” The Bell Telephone System has variety integrated established contacts that customers may deal with another.” “shunting

a

at

matters, including complaints,

one office

to

of

so

at a

to

all

thoughtful

central stations without being sent from

from pillar

to

is

to

in

on

to

a

in

large-scale human relations, and satisfactory solution are probably by

to

as

as

technical problem well one organization the technical obstacles insuperable. Much can done

in

is

of

as

as

he

is

It

to to

to

of

post” personal not confined premises telephone contact the but exists connection with calls also. often extremely irritating for one who calls from the outside have speak, state his business, possibly his name, and with whom desires many telephone responses. admittedly three relays This

The evil

and

to

for the the

-

if

to

to

to

is in

it

at

a

to

be

friendly minimize irritations cooperative responses. For instance, when party from outside calls someone another station, order offer transfer the call other station; the call originates inside the organization, volunteer number of the station.

is

no

or

is

no

a

of

do

is

be

another frequent situation which should watched. Citizens wandering inadvertently places have habit into where they not belong. Where committed, the employee harm done offense

There

he

should avoid seeming annoyed. Especially should refrain from appear ing imply his demeanor: “What the are you doing here?” pleasant inquiry stead, the citizen should met with smile and looking for. what -

to

as

a

a

is

he

be

to

by

In

The Public Counter.—There

a

a

is

of

placing them was disposed qualifications necessary that the

vexing situation desks, largely the theory on

even though they were not needed.

A

of

by

a

taken care

by

be

to

in

feeling quite prevalent has been the job help. place cheap counter contact for Too often such positions have been filled problem cases, who for various reasons had past that

A.

by

of

is

as a

be

at

information were general and could met most anyone with satisfactory appearance. Frequently this has been regarded post for pensioners. The trouble that such individuals frequently reflecting the institutional attitude, have petulant dispositions. Instead

-

,

in

11

%;"|

".

in

*

E.

K.

p.

3

Stone, City Manager Government Service, Harold Dallas (Public Administration Chicago, 1939), 36. Large Marshall, Hyde, “Bureaucracy Dimock and Howard and Trusteeship Temporary Corporations,” National Economic Committee, Investigation of Concentration Power, Monograph No. (Government Printing Office, Washington, D. C., P.

Ch. 36]

DAY-TO-DAY NORMAL CONTACTS

579

as desired, the

ills of later life may dispose them to reveal indirectly and subtly the gossip of discontent which circulates even in the best-managed organizations. The person at the counter must be able to stand up under an endless bar rage of foolish questions. While these queries may seem foolish to the specialist, they are nevertheless very sensible and real from the standpoint of the one who asks. Sound public relations demands that they be treated sympathetically and with understanding by persons possessing even temper. Many people can affect a pleasant smile during the early stages of a job; but only a few can stand up to a barrage of foolish questions week in- and week out. People who become very familiar with a given range of duties, an organi zation, or administrative setup tend to take their fund of information for granted. It becomes a part of them, their second nature; and they expect others to know it also, with the result that they may become impatient with those who do not comprehend readily. This often leads to fretting at the stupidity of folks in general. As a matter of fact, it is not stupidity which makes people act in an unsophisticated manner in a strange situation, but probably more often bewilderment and unfamiliarity. Those dealing with public possess patience, taking nothing for the should therefore infinite granted as regards what the other fellow knows, explaining the why and wherefore of things with the utmost clarity and simplicity. Everyone has experienced the forbidding aspects of a strange environment, for they are the raw materials of homesickness. Counter contacts should be handled in such a manner as to dispel the apprehensions and irritations of sensitive persons who do not “know the ropes.” What should be the attitude of the employee on duty who receives per abuse from a citizen? The point here is not whether the individual deserved a tongue-lashing. As a representative of the public service, he should avoid indignant retort and altercation. Most people are decent, and will meet kindness with kindness. The employee should cultivate a response

sonal

which carries the impression of being unperturbed and not offended. If this is successfully carried through, the critic will generally become ashamed of his indiscretion and cool his temper. In those cases where this is not so, nothing is to be gained by replying in kind. There are instances where righteous indignation may be justifiably voiced, but they are rare and should be chosen with great discernment. The way to handle a “hot-head” is not by being one yourself. Personal strength and dignity are oftener evidenced by overlooking purported insults than by heated retorts. It takes a large calibre person to hold his temper and counsel in the face of provocation, but the greatest goodwill usually results from doing so.

It is for

coming to be realized that there should be some kind of relief the person who has to take the constant barrage of public bad temper

PUBLIC RELATIONS

580

in the hot contact

It

spots.

[Ch. 36

takes an extraordinarily

balanced temper and

good disposition to remain unaffected by the constant attrition of counter contacts at those places where the public is likely to appear in irritated mood. One device to meet this situation is to provide for “argument

relief,” possibly having

in superior authority available when a hot argument starts. Another method would be to provide for rotation of duties so that the same workers would not have to be at the counter at all times, someone

One who is especially vulnerable to public contact fatigue is the traffic policeman who must constantly meet people who are highly irritated at meeting him. The remarkable thing is not that traffic officers sometimes display petulance and anger, but that they should, in general, maintain decent

demeanor;

for their provocation is so great as almost to induce a of irritation against motorists in general. The maintenance of courtesy under such trying circumstances offers a Hercu

constant state of a high level lean challenge to management which can be met only through supervision and morale generated through constant training.

The Receptionist.—The entire tone of

effective

an office can be set by the

de

portment of a receptionist, who in turn usually reflects the public relations attitude of the chief. In most offices the receptionist is a woman whose chief duties are secretarial and stenographic, and in some instances she must also handle a small telephone switchboard. She should be a person of charming and pleasant disposition, with a cultured voice and diction, Perhaps the duty calling for the most and acceptable in appearance. adroitness on the part of the receptionist is the handling of appointments for busy executives whose time is already burdened. The public administra tor cannot bluntly refuse appointments to inconsequential persons without in

it

to

he

in

of

do

very great deal accomplish this goal deal the end that each will feel that has had fair treatment. One writer cites three types “social deficiency” commonly found among workers school administrative offices: the secretary who to a

the receptionist, could ing skillfully with callers

by

is

of

so

be

resentment somewhere along the line. He must, nevertheless, apportioned husband his too limited time that will the interest usually maximum accomplishment. The appointment secretary, who all

courting

to

short temper, the secretary who receives people according life, and the secretary who interruption." their stations resentful These shortcomings are found other administrative offices well. appointment secretary has been said certain President the of

159.

It

of

an

to

as

“Secretaries

Are School Interpreters,” -

Lee M. Thurston,

LXI.

p.

*

Vol.

he

appointment seeker with such leave the caller with the impression that the secre tary was more disappointed personally than the caller himself.

United States that personal sympathy

could turn away

a

to

a

of

in

as

is

in

a

indulges

Education

(November,

1940),

DAY-TO-DAY NORMAL CONTACTS

Ch. 36]

581

The proper handling of callers at a public office is not entirely a matter of the selection and training of personnel, especially in those situations where large masses of people must be dealt with, such as a public employ ment office. Thus, congestion in a local office was relieved by creating the position of traffic manager and making him responsible for maintaining an uninterrupted flow of applicants to interviewers. In addition to being given supervision of waiting rooms and the receptionist, he was authorized to transfer people to a section which was not busy from a section where many persons were awaiting an interview. This reform, together with installation of counters where applicants could go directly to an interviewer to file their claims for benefits, resulted in practically doubling the appli cations handled and reducing the average waiting time from 47 minutes to six minutes.”

The Information Desk.-Every large public building should have in the

hall, near the main entrance, an information booth or desk at which should be stationed a person, or persons, having encyclopedic knowledge of both premises and organization. The personnel in charge should be selected upon the basis of their fitness for this task rather than upon their being deserving persons. Their conduct should be characterized by informal friendliness rather than official aloofness, and it might be desirable for them to wear civilian dress rather than the custodial uniform. The latter has a very definite place, but when accompanied by the policeman's badge of authority certain psychological barriers to citizen approach may be erected. There is no particular objection to having the information booth adminis

of the custodial bureau for the building. Indeed, the cus-, todial staff should be chosen and trained with the end in view not only of physical maintenance, but also of being agreeable to the occupants of, and visitors to, the building. Legislative bodies and city councils have occasionally objected to the establishment of information offices and booths. Thus, when a mayor of tratively

a part

one of the larger cities in the United States desired to set up an information bureau in the main rotunda of the city hall, the city council blocked the move. Of very recent memory is the opposition of certain members of

Congress to the erection of a temporary building in the heart of Washing ton for use of the Office of Government Reports. It was soon felt during the war emergency of the early 1940's that there was need for some central clearing-house of information where business men and other citizens visit

ing Washington upon defense and war matters could have their questions

answered and be directed to the proper governmental establishment. Con gress refused to appropriate money for such a building, and the President

A.

p.

XVIII,

7.

18, 1938), Vol.

in Public Administration (Public Administration Service, Chicago, 1939), Murphy, “How Business Receives Its Callers,” Barron's (April 2.;

13, p.

J.

• Case Reports

Vol. I, No.

PUBLIC RELATIONS

582

[Ch. 36

authorized its construction by transferring administratively some emergency funds at his disposal. The ire of Congress was such that Lowell Mellett, Director of the Office of Government Reports, was called rather severely Legislative antagonism to account before a congressional committee." toward information

booths and desks under the control of the executive is

attributable to the political rivalry between the President and Congress, and between the mayor and the council. It is said that members of Con gress believe that they secure political advantage by disseminating infor mation about Washington through their own offices and that they do not want this advantage to be transferred

from

them to the

White House.

The Hazard of Inadvertence.—One of the chief hazards to good public contacts is offered by technically trained and competent persons who are doing a fine job in accomplishing the task at hand; yet their very absorption in what they do frequently produces unawareness of the human situations which have a bearing upon the accomplishment of a good technical job. Thus, in a study of public health nursing conducted by the United States Public Health Service, it was found that in 10 per cent of the cases clients resisted the nurse's suggestion to go to the public health clinic because of allegedly indifferent and discourteous treatment received upon previous visits to the clinic.” The skilled worker and the technician may become so

a

to

it.

preoccupied with getting out the work that they become short and abrupt in their dealing with outsiders without realizing There are also instances produces where excessive work load nervous strain inimical the smooth human

to

of

of

relations. The remedying this situation goes back supervisorial the conference with its emphasis upon human relations both between supervisor and worker, and the worker and the public. People need have called their attention that their contacts with fellow workers and with outsiders require constant effort and atten est

in

discussion

the training

to

this problem

is

get

at

the best way

to

tion; and

it

to

training and

through friendly and open

conference.

It

to

is

at

be

of

in

in

of

likely the Telephone.—Absorption the task hand result abruptness over the telephone, instead response the courteous in variably called for. should realized that large-scale public organiza

Use

is

º

to

a

a

be a

a

a

to

of

large number tion presents formidable labyrinth sensitive souls on telephone call into this labyrinth may the outside, and that venture fraught with misgiving. An abrupt manner when answering telephone, intended, will tend even though no offense confirm the outsider's worst

*

on

of

13

of

on

of

to

7

of

Representatives, Committee House Public Buildings and Grounds, “A Joint Money for the Acquisition, Construction, and Equipment Resolution Prohibit the Use Any Building for the Office Government Reports Without Congressional Authorization,” H. Res. 290, March and 16, 1942 (Government Printing Office, Washing ton, D. C.). Mayhew Derryberry, “Administrative Procedures that Interfere with Effective Public Health Nursing,” Health Officer (May, 1939), Vol. IV, pp. 18–23.

DAY-TO-DAY NORMAL CONTACTS

Ch. 36]

583

relative to the sinister aspects of public agencies. Reference already has been made above to the evils of transferring an outside call from one person to another. One large public health department met this situation somewhat successfully by training key people to go out of their foreboding

way to secure the information desired without referring the call to another. It seems quite general practice in well-managed units to refrain from

the telephone with the customary “hello,” responding simply with the name of the office and the person speaking; for instance, “Police Records Bureau, Captain Brown speaking.” It is well to avoid too stereo answering

typed response. Telephone responses which incite to resentment and which imply a challenge, however unintended, should of course be avoided; an example of this is the reply “yes” with a questioning inflection approach

ing the vernacular “yeah?” The proper approach to the telephone situation is undoubtedly training and example. Training conferences can discuss proper conduct over the telephone in terms of cases without reprimanding individuals. In those type counseling instances where this of vicarious furnishes no remedy, individual counseling must follow; and if that produces no solution, the alternatives are either dismissal or transfer to a post where it is not neces sary to answer the telephone. The Department of Agriculture has issued a training circular on the subject.

Coordination of Field Contacts There is a point beyond which citizens become irritated at the volume of governmental contacts and calls. This point is demonstrated by two situations which arose in connection with federal activities during the 1930's. In its effort to stimulate employment for white-collar workers, the Work Projects Administration approved a considerable number of research projects which required interviewers to call upon business firms for information. The result was that they were required by the very nature of their studies to secure data from sources which had for many years furnished data regularly to older units such as the Bureau of Labor Statistics and the Bureau of the Census. The inconveniences and irritations caused by the multiplication of requests aroused protests which became so vociferous as to cause the President to issue what has been called “the no canvass order,” prohibiting work relief interviewers from soliciting infor mation direct from citizens by personal canvass. Another situation arose in the early days of the Soil Conservation Service, which found farmers becoming annoyed at numerous calls made by too many specialists out

of

the same office. Some success in minimizing these irritations was accom plished through the device of a contact coordinator. Before a specialist could contact a farmer directly, he had to clear through the coordinator; and

if

someone else was scheduled to see this person at approximately

the

.

PUBLIC RELATIONS

584

[Ch. 36

same time, an attempt was made to combine the calls. Sometimes it was even found desirable to have the coordinator himself make the contacts on

behalf of, or in lieu of, several of his colleagues who had business with particular farmers.

Factors in Public Relations Letter-Writing.—Organizations which carry on an extensive corre spondence with citizens have found it necessary to inaugurate supervision and training which will improve the quality and lower the cost of letter writing.

For instance, it has been estimated that it costs 75 cents to write typical the letter whether in government or business, and that training will reduce the volume of words by 35 per cent and at the same time enhance the quality of a letter. Leadership in this respect has been exercised by the Farm Credit Administration, which very early found itself conducting a tremendous load of correspondence direct with farmers upon, subjects its

relating to farm mortgages and loans which involved technical and legal implications. promising young The organization developed one of

of

to

to

a

correspondence and Hall the training officer.” There was visa unit charged with reading all

also created the executive offices outgoing correspondence see that

its

coordinator

F.

in of by

a

it is

a

in

to

specialist correspondence and made him coordinator executives into supervise correspondence for the entire organization. At the same time training program, and there was inaugurated out this project that Grady the manual James and Milton Hall came. Grady was the

of

a

by

specialist

in

this correspondence

in

a

a

which are not large enough maintain giving place field can accomplish similar purpose the regular training program.” to

Organizations

to

a

is

in

of

a

to

its

contents conformed established policy, and that style and format conformed good practice. One supervisor and the large west coast branch-banking institutions maintains specialist teacher who the field letter writing and correspondence.

Appearance.—Various large-scale organizations have found

it

to

in

to

of

to

to

it is

to

advisable establish standard policies and regulations relative dress and personal appearance. Thus, often the practice for large-scale retail organizations require male salespeople wear dark suits and women dress black refraining jewelry white, display and from the excessive and cosmetics. to or

a

at

to

be be

by

visors would prefer

is

of

personal tidiness personnel problem which most super avoid, but which must met one time another those who supervise people. There will those who seek excuse

The matter

F.

*

and Milton Hall, Writing Effective Government Letters (Employee Washington, D. C., 1939), 109 pp. Grady and Milton Hall, “When Government Writes James Its Citizens,” Public Opinion Quartcrly (July, 1939), Vol. III, pp. 463-468. See series three articles on (July, 1936), Vol. XIV: by “Correspondence with the Public,” Public Administration Ashton Davies, pp. 268–275; by M. Kliman, pp. 276–290; by W. D. Sharp, pp. 291–300. James

Grady

in

of

to

F.

19

Training Publications,

DAY-TO-DAY NORMAL CONTACTS

Ch. 36]

585

laxity on the basis of the dirtiness of the work performed,

but it seems great argument; inadvisable to make too concessions to this witness the effort made by the great gasoline stations which dress men working in grease in white uniforms. The National Park Service and the United States Forest Service offer examples of how men working close to the soil

of

to

of

of

an

the result institutional spirit and training program which emphasizes the importance public relations. park rangers emphasizes Mention the and forest the degree which buildings the service workers should wear uniforms. The custodial staff

of

friendly manner. This is

all

can maintain a high degree of sartorial freshness and well-tailored appear ance. The uniformed rangers not only present a spick-and-span presence, but are quite uniformly ready to respond to questions and inquiries in a

or

to

It

to

be

uniformed, those charged with safety and law en should undoubtedly require forcement being dressed resemble policemen. seems well of

a

its

places

meter-readers

and

a

country's largest municipally owned utilities service-men in distinctive uniform.”

of

be at

be

to

to

coverall, those doing actual cleaning work wear uniform type working clothes, changed and laundered regular intervals. Un doubtedly elevator operators and starters should uniformed. One the

nearest

an

to

most visited should

Quarters and Equipment.—Those be

of

Appearance

the entrance,

offices which are example being the appli

go

all

is

in

of

In

modern streamlining design has entered the field office management and layout several ways. the first place, the progressive tendency toward the open office layout—sometimes documents.

The simplicity

of

it

of of

to

be

of

of

cation counter the Civil Service Commission. Such an arrangement not only serves the convenience the public, but reduces the strain upon building elevators and maintenance. Inside the offices consideration should given unsightly objects—the litter papers and the elimination

where people call

so

in

modern office layout has the cashier window type the at

absence

public relations factor

barricades large numbers.

of

with the

second

of

The

of

do

to

triousness.

of

an

to

in is a

in

a

by

to

as

called loft layout—as against private offices. Some concerns even far large open office separated from other locate important executives railing. This thought provide better supervision workers only giving the public impression and has public relations value indus

in

of

is

A

of

so

or

a

a

to

in

Even some the newer bank furnishings have abandoned the wire cage the ceiling, leaving only low barrier, foot above counter height, between the tellers and the emphasis customers. third point the furnishing the office counters

of

City

Los Angeles.

no

is

Water and Power,

of

Department

of

**

by

is

to

a

be

kept out sight. Modern manner that papers and equipment can filing and cabinet equipment designed facilitate this, and when aug good office management and supervision there mented reason why such

PUBLIC RELATIONS

586

[Ch. 36

papers, documents, and paraphernalia have to form an unsightly litter. Clerical personnel should be trained in the art of keeping unused papers out of sight, and there should be no exception to the requirement that the tops of desks be bare at the end of the day's work, thus forcing the daily 3. routine of tidying up.

Particular attention should be given to the question of signs. A large public building should have someone on the custodial staff who is able to see that sign changes are made in a professional manner. There should be some control of temporary signs done in pencil or ink by an amateur.

It

is particularly shocking to one's sense of propriety to see a beautiful new wall or expensive door marred by a paper sign slapped on by Scotch tape.

In the interest of public relations Scotch

tape should be permanently

barred from the possession of office workers, and especially should these be restrained from sticking on the walls cartoons, slogans, and calendars which seem appropriate to them at the moment. workers

The Public Employee's Off-Duty Contacts With Citizens One cannot move around among informal social groups in one's com munity without meeting the anti-governmental bias possessed by conserva tive and business groups generally. Many respectable and well-intentioned people regard all public administration as inefficient and colored with a sumption of corruptness.

pre

When a public employee has such attitudes thrown up to him during ff-duty social contacts, what should he do? The best advice would seem to be that he should not indulge in an argument. There is an old adage that arguments generate much heat and little light. Frequently it will be the best policy for the employee not to say anything at all. In any case, he should be very sure of his facts. Every worker should be trained in what may be termed institutional facts. These have to do with the general purposes, powers, functions, duties, and policies of the agency for which he works.

Dealing With Special Interests and Pressure Groups Public administrators are frequently

of community cross could, but which it is impossible

at the vortex

currents which they would avoid if they always to side-step. Decisions must be made and action must be taken on controversial issues affecting such pressure groups as labor unions, politi cal parties, chambers of commerce, merchants and manufacturers' associa tions, and even organized recipients of relief. The administrator should pursue a policy of absolute impartiality up to the point where it becomes necessary for him to take action one way or another or to recommend a policy to his superiors. When action or recommendation

it becomes necessary to do the latter, his upon his ability to demonstrate should be based

DAY-TO-DAY NORMAL CONTACTS

Ch. 36]

587

a complete grasp of the facts involved in the situation. If over the years he has acquired a reputation as a fair dealer and square shooter and if the public relations of his organization have commanded the respect of the community, he should be able to proceed to a decision unpopular with

powerful groups and still maintain their fundamental respect. In other words, good public relations help to smooth the unpleasant path which con fronts the administrator whose duty it is upon occasion to say “no.” Good public relations are based upon respect for strength rather than upon the weakness of vacillation. People do not resent being told “no” nearly so much as the manner in which it is said. The report of the Civil Service Assembly suggested that public

per

sonnel administration could probably do a great deal to offset the adverse effects of official party machines upon the merit system. Thus, the good

civil service administrator would see that his relations with party chiefs, political executives, and legislatures are not neglected. Casual observation indicates that in those jurisdictions which have maintained at least reason able success in civil service administration over two or three decades, the personnel director has had gifts which enabled him to deal effectively with mayors, governors, and legislators.

One of the most remarkable of

these

individuals has for two decades been able to maintain a rather high level of technical achievement in a political atmosphere with none too savory a national reputation. The moral is not that personnel directors should make themselves ghost writers for miscellaneous politicians, but rather that it will not hurt administrators to cultivate the art of getting along with elective officers and politicians

without compromising

themselves.”

SELECTED READINGS BOOKS AND MONOGRAPHIS Batchelor, Bronson. 252 pp.

Profitable Public Relations.

(Harper

& Bros., New

York,

1938),

Committee on Public Relations of Public Personnel Agencies (William E. Mosher, Chairman). Public Relations of Public Personnel Agencies. (Civil Service As sembly, Chicago, 1941), 259 pp. Devine, John E. Films as an Aid in Training Public Employees. (Committee on Public Administration of the Social Science Research Council, New York, 1937), 114

pp.

Writing Effective Government Letters. (Em Grady, James F., and Hall, Milton. ployee Training Publications, Washington, D. C., 1939), 109 pp. Harlow, Rex F. The Daily Newspaper and Higher Education. (Stanford Univer sity Press, Stanford, Calif., 1938), 44 pp. Ilg, A. Public Relations for Banks. (Harper & Bros., New York, 1937),

º

235 pp.

** Committee on Public Relations of Public Personnel Agencies (William E. Mosher, Chairman), Public Relations of Public Personnel Agencies (Civil Service Assembly, Chi cago, 1941), pp. 41-55; Harold A. Stone, City Manager Government in Janesville (Public Administration Service, Chicago, 1939), p. 18.

PUBLIC RELATIONS

588

McCamy,

James

1929), 275 pp.

Mayer,

L.

Government Publicity.

Raymond C.

209 pp.

Rosten,

Leo

C.

The

How

to Do Publicity.

Washington

[Ch. 36

(University of Chicago Press, Chicago, (Harper & Bros., New York, 1937),

Correspondents.

(Harcourt, Brace, New York,

1937), 436 app.

Upson, Lent D. A Letter from a Dean of Public Administration to His Graduates about Being an Erecutive. (Published by Author, Detroit, 1941), 10 pp. Upson, Lent D. A Letter from a Dean of Public Administration to His Graduates about the Tools of Administration. (Published by Author, Detroit, 1941), 12 pp. Vernon, R. V., and Mansergh, N. Advisory Bodies: A Study of Their Uses in Rela tion to Central Government. (Allen & Unwin, London, 1940), 520 pp. Wright, Milton. Public Relations for Business. (McGraw-Hill Book Co., Inc., New York, 1939), 346 pp.

PERIODICALS Baird, Thomas. “Films and the Public Services in Great Britain.” Public Opinion Quarterly (January, 1938), Vol. 2, pp. 96–99. Beyle, Herman C., and Parratt, Spencer D. “Public Attitudes and Government Effi ciency.” Annals of the American Academy of Political and Social Science (Sep tember, 1938), Vol. 199, pp. 26–32. Dale, Edgar. “Motion Picture Industry and Public Relations.” Public Opinion Quarterly (April, 1939), Vol. 3, pp. 251–262. (July, Davies, Ashton. “Correspondence with the Public.” Public Administration 1936),

Vol.

14,

pp. 268–275.

Dimock, M. E. “Selling Public Enterprise to the Public.” National Municipal Re view (December, 1934), Vol. 23, No. 12, pp. 660–666. Grady, James F., and Hall, Milton. “When Government Writes to Its Citizens.” Public Opinion Quarterly (July, 1939), Vol. 3, pp. 463–468. Griswold, Glenn. “The McGraw-Hill Public Relations Forums.” Public Opinion Quarterly (October, 1939), Vol. 3, pp. 704–709. Hill, L. “Advertising Local Government in England.” Public Opinion Quarterly

(April, 1937), Vol. 1, pp. 62–72. M. “Correspondence with the Public.” Public Administration (July, 1936), Vol. 14, pp. 276–290. Long, Norton E. “Public Relations Policies of the Bell System.” Public Opinion Quarterly (October, 1937), Vol. 1, pp. 5–22. Murphy, J. A. “How Business Receives Its Callers.” Barron's (April 18, 1938), Vol. 18, p. 7. Parry, Thomas W., Jr. “Public Relations for a Railroad.” Public Opinion Quar terly (January, 1939), Vol. 3, pp. 154–161. (July, Sharp, W. D. “Correspondence with the Public.” Public Administration 1936), Vol. 14, pp. 291–300. Unsigned. “The Public Is Not Damned.” Fortune (March, 1939), Vol. 19, pp. Kliman,

83–88,

Wengert,

109–114.

E.

S.

“TVA

Enlists

Local

Cooperation.”

Public

Opinion

Quarterly

5,

lic

(April, 1937), Vol. 1, pp. 97–101. Williams, Margaret Hicks. “The President's' Office of Government Reports.” Opinion Quarterly (Winter, 1941), Vol. pp. 548–562.

Pub

CHAPTER

37.

PUBLICITY AND REPORTS Organizing for Publicity What Is Included.—Government publicity, whether on the federal, state, or local level, has been carried on largely through the printed word, and undoubtedly the most sought-after medium is free newspaper space. The printed word takes myriad forms, varying from the annual report to the vest-pocket folder distributed with the garbage disposal bills. While the printed word still forms the most important vehicle for publicity, it is being supplemented increasingly by such newer avenues of approach as the radio and motion picture; and the age-old spoken word or public address should not be ruled out.

Publicity Agents.-In most small organizations publicity is handled

rather casually by the officials in charge without centralizing of responsi bility or channelizing the flow of information. As the organization gets larger, there arises a tendency to make a single individual or unit respon sible for publicity and reporting; and it is at this point that the ire of Congress and of newspaper men has been aroused. Congressional aversion to publicity men came into the limelight in 1913 when there was debate on the floor of the House evidencing heated opposition to a civil service exami nation for publicity expert in the Office of Public Roads. The debate did not reveal any very concrete or definite reasons for objecting to the em ployment of such persons, but undoubtedly the individualism of that day, which opposed the expansion of governmental activities and expenditures, was largely responsible. There is the further consideration that the mem bers of Congress may have been expressing their apprehension of presi dential influence and the possibility that departmental publicity might be used to their personal political disadvantage. The employment of pub

licity experts was prevented by law under a statute enacted in 1913 and presumably still in force." In spite of these restrictions, publicity personnel have been employed under the designations of statisticians, editors, directors of information, and other similar designations.” Nevertheless, the restric

ff.

1 38 Stat. 212, 5 U. S. C. A. § 54 (October 22, 1913). * Senate, 74th Cong., 1st sess., Select Committee to Investigate the Executive Agencies of the Government, Preliminary Report No. 1275 (Government Printing Office, Washington, D. C., 1935), p. 531

589

PUBLIC RELATIONS

590

[Ch.

37

tions placed by Congress upon this type or work make a federal publicity man constantly apprehensive lest he arouse the ire of the men on Capitol Hill.” Newspaper men have a chronic and innate aversion to publicity whether the latter represent the government or private interests. Reporters want to contact the sources of news directly and ferret out their

agents

is,

own stories. They show reluctance to handouts and “canned” releases and look upon publicity agents as representing a form of censorship. There

and protection arising from the feeling that government press news articles and items are prepared agents, the need for the reporter's services might lessened.

of

furthermore,

self-interest

he

of

Those representing the business point view press agent on the grounds that attempting

be to of

if

by

an element

newspapers resent the

a

to

of

be

is

obtain free space for publicized through paid advertising, what should and thereby constitutes newspapers. The constant threat the revenues and financial stability

governmental expenditure for publicity purposes often takes unfair, inaccurate, and even the form ridicule and criticism which venal. Thus there long existed the legend, which gave rise much merri ment, that one pamphlet the government departments had published a

of

to

is

of to

opposition

a

of

of

Life Bull Frog.” The facts truly scientific document with much more

entitled “Love

the case are that this a

of

of to

a

a

in

a

was sedate title and with quite definite economic and commercial significance.” Newspaper men do not like publicity men, and the latter are said have representatives constant inferiority complex the presence the Newspaper

people distrust propaganda and regard with suspicion everyone who makes good effort break into the public print. reporter likes prides upon “smell out” his own stories and himself his to

A

to

an

press.

a

it

to

of

appraise the characteristics good “nose for news” and his ability news story. While many persons with newspaper experience have occupied successfully government publicity posts, has been said that they are dis qualified for these posts for the very reasons

above; namely, the

stated

of

to

of

performance duties which their professional experience and conditioning has taught them condemn and distrust.” public administration frequently criticize Both officials and students

to

of

to is

a

because

in

when he

And

but sensational news and ignoring significant fundamentals. political reporter critical the administrator feels wronged position reply effectively. One not the answers

is a

insignificant

be

up

is

of

newspapers for not publishing administrative information which they playing lieve the public should have. The press accused sometimes

in

of

I,

V,

E.

of

of

V,

E.

*

T.

*

*

of

McMillan, “Government Publicity and the Impact War,” Public Opinion 1941), Vol. pp. 383-398. Harding, “Informational Techniques Agriculture,” the Department (January, 1937), Vol. Quarterly pp. 83–96; Hal Hazelrigg, “Has the City Lost Its Voice?” Public Opinion Quarterly (July, 1938), Vol. II, pp. 457-465. McMillan, “Government Publicity and the Impact War,” Public Opinion George (Fall, 1941), Vol. Quarterly pp. 381, 392: “Who's Who Government Publicity,” Public Opinion Quarterly (March, 1940), Vol. V, pp. 168–170. George Quarterly (Fall, Swann Public Opinion

PUBLICITY AND REPORTS

Ch. 37]

591

this situation is undoubtedly the development of satisfactory press rela tions, a subject discussed at greater length below. The newspapers have been mentioned here briefly only for the purpose of introducing their rela tionship to publicity agents and governmental publicity in general. Perhaps one should not leave this subject without at least mentioning in passing that omnipresent, but illusive and anonymous gentleman known in the vernacular as a ghost writer. There may be moral and ethical ques tions involved in using, in the preparation of speeches, the services of persons other than those who deliver them. Be that as it may, the fact remains that most important and busy executives, whether in government

or business, utilize the services of ghost writers to

a greater

or lesser extent. These persons may be carried upon the payroll in a variety of capacities. It has already been mentioned that a state civil service director writes speeches for politicians of both political parties. A certain very widely publicized federal bureau chief has his speeches written by the chief of his research division.

Federal Organization for Publicity

by

the Budget, those directly concerned the State Department."

of

ice were transferred

to

of

its

on

Office of War Information.—The Office of War Information is chiefly of interest to students of peacetime administration because it became the lodging place of the Office of Government Reports as the result of Execu tive Order No. 9182 of June 13, 1942. Shortly after the cessation of hos tilities at the end of World War II, the Office of War Information was abolished. Those of activities which had previously been carried the Office Government Reports and the United States Information Serv the Bureau

in

It

of

so

in

of

as a

to

with international relations went The United States Information Service acted central clearing-house Washington for inquiries concerning all branches the government. many visitors was inaugurated the early days the New Deal when or it

of

by In

to

representing local governments and business interests were coming ington. the prewar year 1939 handled 100,000 inquiries

Wash which

to

In

personal call.

a

it

of

of

is

to

is

in

pub addition lishing the United States Government Manual, which the official directory country over, and familiar officials and students the had reference government documents and important signifi service consisting files cant data about the administrative establishments." came

mail, telephone, telegraph,

Public

in

on

of

7.

p.

p.

V,

1,

1945), Vol. 10, pp. 11223, 11225. Federal Register (September Margaret Hicks Williams, “The President's Office Government Reports,” Opinion Quarterly (Winter, 1941), Vol. 556; Committee Expenditures Executive Departments, Hearings on H. R. 3368, 7 9

of

a

as

of

of

in

a

of

in

It

of

was this branch the Office Government Reports which came congressional under attack the winter 1941–1942 result the temporary building erection downtown Washington. The repre

the

PUBLIC RELATIONS

592

[Ch. 37

sentatives of business and local government who came to Washington relative to defense and war matters often found themselves confused and bewildered because they did not know where to go. It was even reported that some well-intentioned individuals were victimized, paying substantial fees to persons who represented themselves as having an entrée to the seat of power, whereas the service rendered was often no more than information which was a matter of public record and could have been obtained by any citizen through inquiry at the proper place.

Federal Publicity Offices.—The Brookings Report to the Byrd Com mittee stated that on October 1, 1936, there were 146 persons engaged wholly on publicity work, and 124 were devoting a part of their time to

L. McCamy indicated in his study that by far the greater propor

it.” James

tion of these persons seemed to be employed by the new recovery agencies inaugurated by the New Deal.” The duties of the publicity representatives in the old agencies tended to be of an educational and informative nature,

while those of the newer type took on more of the aspects of crusade and propaganda. According to Lasswell's classification, the former could be stamped as symbol handlers, whereas the latter came more nearly to being symbol manipulators.” been a feeling to the effect that perhaps

From time to time there has

federal news releases had reached the proportion where something should be done about them, perhaps even to the extent of some type of centraliza tion. However, there has been an increasing realization that administrative publicity is not only desirable but necessary in a democracy. The Brookings

Report recommends against prohibiting the issuing of mimeographed re leases and also frowns upon centralizing the issuance of material for the press. It goes on to conclude that the most feasible method of controlling government publicity is through the exercise of discretion by responsible officers through such means as the budget.” Another writer of this same as

to

to

recommended that there should be some central and responsible general direction and respon unit to check on information agencies sibility with regard governmental policy. This writer presumed that the

all

period

to a

a

to

of

to

be

Senate, 75th Cong., 1st sess, Select Committee Investigate the Executive Agencies Report No. 1275 (Government Printing Office, Washington, D. C., 1937),

the Government,

#

Ibid.,

p.

** 10

*James

Government

Mecany,

168.

Publicity

(University

of

to

*

of

w

It

of it

in

a

be

censorship would

of

of

raised, but hastened declare that the objec quite contrary. being tives such unit would the Instead control agency, would act liaison capacity and direct citizens proper sources information.” would seem that the subsequent activi charge

Chicago

Press,

Chicago,

I,

**

of

to

p.

Investigate the Executive Agencies Select Committee the Government, Report No. 1275, 538. Arch A. Mercy, “Modernizing Federal Publicity,” Public Opinion Quarterly (July, 1937), Vol. pp. 87–94.

PUBLICITY AND REPORTS

Ch. 37]

593

ties of the Office of Government Reports may have been in the direction of accomplishing precisely this end. An interesting type of unit is that represented by the Office of Infor mation of the Department of Agriculture. While it does some publicity work of the variety discussed above, it is for the most part engaged in gathering, writing, and publishing

activi

about departmental

information

-

ties.** -

Publicity Media

Press Relations: Old Newspaper Attitudes.—The publishing of daily newspapers has for decades amounted to a big business, with the inevitable result that newspapers have tended to reflect the social and economic atti tudes of the business community. This attitude can be epitomized in the feeling of the average businessman that anything done by government must be done inefficiently as compared with business standards, and that to

is

all

up

there is a presumption of corruption in at least a considerable fraction of governmental ventures; which adds the laissez-faire dictum that government governs that best which least.

a

of

as

by

Municipal reformers and crusaders for social change have upon occasion found themselves opposed the local daily press was the case with Mayor Damiel W. Hoan, Mayor quarter century, who Milwaukee for said: so

I I

to

is of

to

to

these newspapers task. one can think of.14

I

in

I

please the editors the daily press policy, generally ignore them. speaking, have found the best get the greatest response my municipal campaigns when take have never been able

The papers have called me every name any

a

in

be

D.

of

to

of

of

be a

opposition

of

is

to

ample evidence substantiate the viewpoint that the editorial daily press handicap politically, and may the not certain political advantage. Witness the overwhelming oppo instances might sition the newspapers the country the candidacy Franklin

There

to

an

of

In

a

is

to

Roosevelt. However, we must return our distinction between politics good press and administration and insist that desirable from the stand point administrative public relations. effort attain this end one by

will almost inevitably encounter certain negative attitudes and concepts

in

to

of

a

of

held old-time newspaper men, number whom are still active. Newspaper men tend political reflect the and social attitudes their employers, which the past have been predominantly negative toward to

of

go

to

no

However, there

is

denying that reporters covering the city hall and state house have not had out their way discover that

government.

**

of

of

*

Harding, “Informational Techniques Agriculture,” loc. cit. the Department Daniel W. Hoan, “A Mayor Counsels with Managers,” Public Management (Novem ber, 1934), Vol. XVI, pp. 346–353.

PUBLIC RELATIONS

º

594

[Ch.

37

type of corruption which for decades has made the liberal reformers heart sick.” The romance of the newspaper business is largely conjured from the campaigning type of editor, burning with civic virtue, who uncovers the machinations of the scoundrels in the city hall and sends them to their

just

Several Scripps-Howard editors have assumed this rôle with apparent success in the very recent past.” A celebrated example of a generation ago was Fremont Older of San Francisco, who was actually deserts.

kidnapped, but whose fearless editorializing ultimately resulted in sending boss Abe Ruef to the penitentiary.” It would be wrong to regard the crusading type of editor as being characteristic of the daily press, for by and large the daily press is a big business only secondarily interested in civic reform. However, its business sense is sufficiently keen to make it desire to

on

a

to

prevent well-rounded activity getting daily press administrative from into the the profession's preoccupation with spot news having dramatic appeal and superficial, human interest.” Thus has been said that “the press gives overdramatized, even flippant picture public affairs result worship emotion-charged news values.”.” Most great newspaper the catering sensationalism, salaciousness, and fortunes were built up

is

its

of

of

to

on

of

as a

of

a

it

picture

does more than anything else

the whole fairly

of

What probably

and the reporting will

be

large body of readers want objective.

it,

publish the news which the greatest number of people want, and which will, therefore, sell newspapers and thereby increase advertising revenues. It will print the activities of public administration if it is convinced that a

order

to

readers.

In

a

of

of

of of

humanity. The news stories which depict the foibles and weaknesses development the humorous cartoon and the inflation the sports page perhaps large portion newspaper have set the interest barometer for get into the daily press, items affecting public adminis to

as

a

in

be

prepared compete for space with tration must such manner things spontaneous these other which attract immediate and reader atten tion. in

as

as

of

of

to

In of

to

Perhaps one should hasten exonerate the cynical reporter the light professional approach public the recent technical and administration. spite the contention that those who have done the daily work corrupt and inefficient administration have not been the picture often * &

8.

of

;

p.

of

E.

10

&

of

15

of

(McClure, Phillips Joseph Lincoln Steffens, The Shame Co., New the Citics York, 1904), 306 pp.; Joseph Lincoln Steffens, The Autobiography Lincoln Steffens (Harcourt, Brace Co., New York, 1931), 884 pp. Editor and Publisher (May 24, 1941), Vol. LXX, pp. 21, 23. Cited by Frederic Merwin, “The Reporting Public Affairs,” Annals the American Academy of Political 125, note and Social Science (January, 1942), Vol. 219, Fremont Older, My Own Story (The Call Publishing Co., Rev. ed., San Francisco, 1926).

C.

of

of

p.

of

E.

19

&

18

of

Rosten, The Washington Corre On the reporter's concept news consult Leo spondents (Harcourt, Brace Co., New York, 1937), pp. 255–270. Merwin, “The Reporting Frederic Public Affairs,” Annals the American Academy Political and Social Science (January, 1942), Vol. 219, 124.

-

PUBLICITY AND REPORTS

Ch. 37]

595

painted, the fact remains that the efficiency movement in public adminis tration is hardly more than three decades old, and it has only been recently that the public service, whether on the federal, state, or local level, has attracted the most competent persons of the nation in considerable numbers. Government is becoming such a vital factor in our economic and social fabric that a large proportion of the significant happenings of civilization

development

and not excessively

it.

take place in the setting of its administrative ramifications. There is some evidence that a new type of reporter is appearing who is conscious of this

After everything

is

said and done, that which constitutes news must depend some degree upon what editors and reporters believe constitutes that commodity. There

in

to

be

teeming considerable reason believe that public administration may with human interest stories centered elsewhere than the criminal courts and coroner's office. state and local govern pauses along the way and the scandals, and which the

to

air

the dramas,

in

the inefficiencies,

it

to

a

Is

.

.

.

great, vital news story report because ment which the press fails there not

New Type

of

a

is

if

is in

of

in

of

administration overlooks its public reporting because bureau fear, imagination? selfishness, ineptitude, cratic and lack The democracy answer the affirmative workable way life.”

to

at

to

of

in

A

Reporting.—Observers have not failed mention the confronting report altered circumstances those who for the nation's news Washington.” Prior papers the New Deal, reporting was least 90

of

It

of

per cent political spot news the dramatic, personal variety where one officer attacked another. would seem that the avalanche of economic and

to

of

or

in

social legislation which began 1933 found many the correspondents unprepared from the standpoint either background psychological adjustment cooperate effectively understand and with the new develop new explanatory expert, but not an

a

for be

is

of

Washington news calling ments. Reporting approach which demands that the correspondent

of

be

be to

of

be

by

to

penetrate underlying trends and create rather one who has the ability grasped an explanatory synthesis which can the bulk readers. The upon reporting government more such individuals found the staffs

if

the economic and social developments that are taking place. That this can done illustrated the newspaper space secured majority great papers owned persons Franklin Roosevelt that

by

of

by

by

in is

rather violently opposed

to

D.

be

to

opposed

of

of

of

a

to

it

news, the easier will for administrative press relations. They will get great tend deal the happenings the social service state into the columns their newspapers, even their employers are ideologically

his political interests.

The Washington corre

of

p.

;

of

**

*

Merwin, “The Reporting Public Affairs,” loc. cit. Richard Wilson, “Reporting the Washington News,” Annals the American Acadcmy of Political and Social Science (January, 1942), Vol. 219, pp. 127-131 Rosten, op. cit., 265.

.

is

to

averse to

-

596

PUBLIC RELATIONS

[Ch. 37

spondents liked Roosevelt personally, and, despite the fact that there was a subsequent reaction among them against this feeling,” it has been said that his press conference was still, during the early 1940's, scarcely less important as a popular forum than the Senate of the United States.” The point is that news affecting administration can be got into the press in spite of the owners' antagonistic attitudes if administration can command the understanding, respect, news at the source.

and confidence of the men

who report the

Cultivating the Goodwill of the

Press.-It would seem that one of the important approaches problem most to the of good press relations is for the official to be friendly, courteous, and direct in his contacts with report ers. He should lay down a systematic program for maintaining press rela tions and should make an especial effort to acquaint both the reporters and editors with institutional policies and background information through the medium of conferences and personal contacts. Instead of becoming irri tated at news leaks and unfavorable stories, the officer should humor the reporter's appetite for dramatic and human interest items.

The official in local government should probably

use prepared releases to a minimum extent; a more satisfactory alternative would be to develop

his own “nose for news” so as to help the newspaper men to look for interesting copy. On the state and federal level the coverage desired is so much wider geographically that prepared press releases may be desirable. In local government it is thought wise to try to distribute the news breaks as evenly as possible between morning and evening papers, preserving meticulous impartiality in the treatment of competitive reporters. It is desirable to be strictly honest, impartial, and courteous with representatives

If working relationships can be built upon this basis, the deserving, if will find the press sympathetic and cooperative in those administrative crises which are so likely to be aggravated by prema ture and incomplete publicity.” of

the press.

official,

Friendly relations with representatives of the press will be helpful on those occasions where it is undesirable to have a story break prematurely or where the facts are such that they can be embarrassing to those in charge. In the case of a reporter desiring information upon an item where prema ture publicity is undesirable, it has been suggested that the best procedure is to tell him the story and suggest why publication is undesirable at that time, going on to assure him that he will be given an even break for the news when the proper time comes.” cit., p. * Rosten, * Merwin, loc. cit., Hazelrigg, “Newspaper op.

253. p. 131.

It

is not good practice to go very far

** Hal Man Looks at City Hall,” Public Management (March, 1938), pp. 67–70; Alden B. Mills, Hospital Public Relations (Physicians Record Co., Chi cago, 1939), p. 196 f. ** Hazelrigg, “A Newspaper Man Looks at City Hall,” loc. cit., p. 69.

PUBLICITY AND REPORTS

Ch. 37] ºtſ:

ſº

::

º ;

º * *

egº:

ſº

597

in requesting newspaper men to refrain from reporting items unfavorable to the administration. It seems better to explain accurately and faithfully just what has happened, with an explanation of why it is believed contrary to public policy to give it unfavorable publicity, but at the same time assur ing the reporters that the matter of publication is left to their judgment. Particularly delicate situations arise in relation to hospitals where the presence of important personages as patients constitutes news. An interest ing development along this line has taken place in Cleveland where a Code

for Giving Information to the Press has

been agreed upon and followed

by the Cleveland Hospital Council, The Cleveland Academy of Medicine, and the press of that city.”

Public Speaking.—There is little doubt that public speaking is a valu able tool of public relations and publicity. It involves certain questions of inattention to which may bring misunderstanding and grief. The principal matter of concern is determining who shall speak for an organization and what, if any, limitations are to be placed upon administrative

policy,

what they say.

This is

safe course.

restrictions are to be placed on who is to speak, the

If

a situation where it is difficult to steer a middle and

organi

zation will become vulnerable to the accusation that censorship and un democratic management exist. On the other hand, if any officer or employee is permitted to make unrestricted public statements, embarrassment may result both to the unit as a whole and the individual himself. Perhaps the embarrassment to the speaker himself if he makes inaccurate and irrespon sible statements is sufficient control for most administrative units in normal times, for, after all, the bureaucrat is more often accused

of timidity than

VentureSOmeness.

It

is sometimes the function of public relations offices to conduct a speakers' appointment bureau which will keep records of the successful speakers in the organization and of the topics upon which they are fitted

Public speaking is sometimes included among the courses of in training programs. Considerable success has been achieved locally service through the organization of speakers' clubs, sometimes referred to as toastmasters' clubs, where those with kindred interests meet under con to talk.

genial social conditions to practice upon each other the art of both presiding and speaking.” It has already been mentioned that the ghost writer is a fairly well

T

accepted institution in large-scale organizations, whether public or private. One does not hear very much about him except in a secretive and furtive *9tt of way, for if it were otherwise he would not be a ghost writer. The

jº

P**Paration of

:

speeches

by others than those

Mills, op. cit., p. 204. Code reproduced at p. 333. §mery E. Olson, The Speakers Club of Los Angeles

phlet “t No. 4,

July,

1936).

who deliver them can be

(Civil Service Assembly,

Pam

PUBLIC RELATIONS

598

[Ch.

37

defended upon purely technical grounds, meaning that the speeches will be better prepared, better delivered, and more representative of the spirit and policies of the organization if written by specialists. It is quite pos sible for those who are near to, and familiar with, the style of particular executives to simulate their thought, expressions, and mannerisms quite

faithfully.”

Public Exhibits and Open House.—Visitors to the two World Fairs in New York and San Francisco in the 1930's will remember the rather novel and attractive exhibits prepared by the federal government. Similar exhibits by various departments of state and local governments are often encountered at state and county fairs. The remarkable developments made in the field of graphic presentation in recent years offer tremendous possi bilities in the popularization of data ordinarily regarded as lacking in human interest. Similar exhibits are being encountered more and more in the halls and rotundas of public buildings. Thus, one may find a demon stration of the farm handicrafts of the great Southwest in the rotunda of

the main Agriculture building in Washington, and Indian exhibits in the halls of the new Interior building. A more recent type of presentation in the arid West is a topographical map of water systems and aqueducts constituting a replica built to scale with the exception that the elevation contours are slightly exaggerated. Many cities have experimented with the open house type of exhibit, wherein a certain day or time period is set aside for citizens to visit the city hall or other public building which has been prepared with appropriate exhibits. The City of Berkeley seems to have achieved extraordinary suc cess with this device as is evidenced by its continuity, for it has become an annual event attended

by upward of 10,000 persons.”

Other cities have

tried the exhibit once or twice and then failed to stage it again.

The reason that the municipal exhibit does not seem to work out as an annual proposi tion is that it costs from $1,500 to $2,500—an amount which is not always easy to secure. Furthermore, it comes into existence to meet some specific public need and under zealous leadership. When another year comes around and both of these are lacking, the municipal exhibit fails to appear. Or a new political control of the city hall may decide against such a venture as being politically inopportune. None of these considerations,

current

however, is an indictment of the exhibit as a means of reporting.

Paid Advertising.—Paid

advertising in newspapers by the government very largely has been limited to legal notices, and in the large cities such advertising has been more or less confined to specialized legal papers with 28

Milton Wright, Public Relations

29

Arthur Harris, City Manager Government in Berkeley (Public Administration -

New York, 1939), p. 167. Chicago, 1940), p. 45.

(Whittlesey

House,

McGraw-Hill

Book

Co.,

Inc.,

Service,

PUBLICITY

Ch. 37]

AND REPORTS

590

a small circulation to judges, other officials, and attorneys. These legal notices are usually framed in technical, legal terminology, and publication is required in pursuance of some provision of law. It is a lucrative source

of revenue to the smaller community newspapers and to the specialized legal journals, but rarely constitutes an appreciable item for the large metropolitan dailies. In one great metropolitan area the community newspapers have made a strong bid to take at least a portion of legal away from the legal daily journals.” Some newspaper men transforming toyed great have with the idea of a deal of legal advertising into a display type of format. In some instances officials are known to re advertising

gard statutory

requirements

that administrative

activities

be given

legal

notice in newspapers as of little or no administrative usefulness. Thus, public purchasing agents have tended to believe that advertising for bids in newspapers is among the least effective of publicity media in attracting widespread participation

of vendors.” in newspapers and magazines on the part of public administration was practically nonexistent until the war emergency of the 1940's. In the United States it has been considered contrary to pub policy and purchase some cases actually illegal for public agencies However, display advertising. interesting contemporary development to

an

in

lic

Paid display advertising

of In all

to

of

in

of

in

has been, first Great Britain and then the United States, the purchase newspaper space for display advertising relative the conduct the war. Great Britain government-paid advertising jumped from 0.2 per

of

in

of

to

to

in

In

its

of

as

savings, and eat, appeals what foods becoming the biggest advertiser recruitment the armed forces. government negotiated through the existing and normal Great Britain the advertising agencies and was alloted space, along with other advertisers, matters

rationing, advice

on

in

16.7

to

British newspaper advertising the first quarter 1940 per cent the third quarter 1941. This advertising dealt with such

cent

by

a

began

the army air corps

appear

in

advertising

of

the spring that year government-paid daily newspapers American with - call

to

In

in

a

It

in

purely democratic method.” was estimated that the British govern ment would spend $10,000,000 on newspaper display advertising 1942.**

for pilot

by

trainees.

of A

of

a

in

is

6,

&

Is

* *

to

is

as

**

of

of

*

C.

Margaret King, The Los Angeles Newspaper Service Bureau, Incorporated; Publication Rates for Public Notice (unpublished Master's thesis, University Southern California, Los Angeles, 1941), 136 pp. paid legal advertising This whole field need serious study and investigation and most highly recommended the subject for doctoral dissertation for one who wishes combine political science and journalism. What Life Like—With the Enemy Less than Twenty Minutes Away? (Lord Thomas, New York, 1941). Cecil Chisholm, “f 2,000,000 Will Be Spent by Britain for War Advertising This Year,” Printer's Ink (March 1942), pp. 13–14, 70–71.

Study -

in

as

inasmuch

of

public license, and stations hold their franchises possession the broadcasting channels are limited, those

Radio.—Radio

PUBLIC RELATIONS

600

e

[Ch.

37

are in a business quite definitely affected with the public interest. Station managers feel a certain obligation to carry programs which are

them

educational in nature, and they find it rather difficult to fulfill this obliga tion and at the same time retain an audience. This means that any programs which are educational in nature should give extraordinary attention to the matter of attracting and holding the interest of listeners. Certain depart ments of the federal government have conducted radio programs with some success. Experimentation has been carried on in the preparation of radio scripts which are sent out locally for broadcasting, and with the preparation of actual transcriptions of programs which are sent to local broadcasting stations,” an example being the Office of Education's federal radio project. A number of municipalities also use the radio quite regu

larly.”

venture in broadcasting will have to work out its own peculiar mode of operation, there are certain general considerations which constitute helpful guides. A radio program should be entertaining, as well

While

each

as educational or informative. There seem to be advantages in a series of programs broadcast at the same hour over the same station, preferably

8:00 to 10:00 in the evening. The preparation and direction of these programs should be assigned to a single official who has aptitude, and between

ample time at his disposal. Speakers or participants should be chosen on the basis of their qualifications rather than upon their position in the hier archy, although exceptions can be made from time to time in the case of a very prominent official who may not be particularly competent at speaking. The script should be prepared or edited by professionally qualified script writers, although the preparation of the material in the tentative draft can be prepared in preliminary

form by some other person who is a subject matter specialist. When serious material constitutes the body of the pro gram, it is desirable to devise some beginning paragraph or starting se quence which is lively and challenges the attention. The forum or round extension type of program seems to retain the interest of listeners better than the prepared speech or dialogue, especially if there is developed an element of contentiousness with quick extemporaneous responses. Radio table

programs should be advertised through other media, such as the radio log of local newspapers and notices in public places.” The presentation should avoid the use of statistics except in a very generalized way, for listeners do not retain figures, becoming confused at a considerable list of mathe matical comparisons.”

* See

McCamy, op. cit., p. 54. Rowlands, “Reporting Municipal Activities by Radio,” Public Management pp. 102–109. Ibid., pp. 105–107. *7 Jan van Loon, “Radio and Better City Government,” Public Opinion Quarterly (January, 1938), Vol. II, pp. 100–104.

* David D. (April, 1941), *

PUBLICITY AND REPORTS

Ch. 37]

6or

Motion Pictures.—Those in charge of administrative public relations have experimented quite extensively with the production and exhibition of motion pictures. This is particularly true of American municipalities which report a variety of experience along these lines.” There also has been some experimenting with motion pictures on the part of the federal government, where the maximum artistic success has been achieved with the great documentary films such as The River, The City, and The Plow that Broke the Plains. It would seem that while some of the municipal

a

of

of

a

89

catalog.”

of

up

as

its

films are fairly good, most of them can be classified as mediocre. In the words of one critic, they “present the city as a not very interesting place government being made people cut out and lot

is

is a

of

to

of

is

it

of

of

motion pictures for purposes public administrative relations that unless they are well done better good motion pictures not make the venture, and the making combination creative artistry, showmanship, and professional photog

The difficulty with the preparation

to

a

be

is

to

of

a

to

is

If

the making

of

portraying administrative activi film devoted part-time ties and results made the task someone whose duties and experience are foreign likely motion picture work, the result raphy.

of

to be a

it

in

be

fairly well photographed; but the people will un stiff, stilted, and wooden, and the scenes commonplace rather

may happen

doubtedly

be

it

It

it

be a

very logical and matter-of-fact presentation, but sparkling, will not dramatic production that will command spontaneous audience interest. probably will logical and faithful cataloging factual materials, and

estimated 35

is

It

the cost.

produce

a

of films

required

to

$3,000 would

be

the chief obstacles to the use

outlay

of

that

an

One of

is

than challenging. 15-minute,

mm.

actors.

The great federal documentary films were produced

by a

to

it is

is

If

silent film with sound added later.” This cost would include commercial photography and processing but not professional actors. dramatization expected, provide for both professional script writers and well

profes

It

in

be

to

so

in

a

in

genius perceiving and portraying the great director who was implications social involved soil erosion and farm security. This was realistically, artistically, done and dramatically that these films were able shown widely commercial theatres purely upon their merits. has sional

all

of

a

special unit which been suggested that the federal government establish films, whatever the department would supervise the technical aspects to

in

of

G.

p.

p.

of

E.

of

40

p.

39

38

Rowlands, “Use Reporting Citizens,” Public Management David Movies (March, 1941), Vol. XXIII, pp. 67–71. Letter by John Devine on Improving Municipal Movies, Public Management (May, 1941), Vol. XXIII, 156 Mosher, Committee on Public Relations Public Personnel Agencies (William Chairman), Public Relations Public Personnel Agencies (Civil Service Assembly, Chi cago, 1941), 147; Mills, op. cit., 210.

PUBLIC RELATIONS

602

[Ch. 37

its

in which they may originate. This specialized film unit would be in the hands of professional producers and technicians, some of whom could be on loan or on leave from Hollywood. It is thought that such a unit would

as

a

of

artistic, technical, and creative impression upon governmental film-making and possibly add showmanship, and that desirable touch “good theatre.” which professionals designate leave

The Annual Report quite

to

of

to in

of

a

of

a

is

definite place for the formal annual report which con stewardship on the part stitutes written record administration democracy. the citizen stockholders the Those immediate charge of

There

a

it

by

is

to

at

of

private corporations are accustomed report render such commonly directed the stockholders. From the criticism which those reports prepared governmental officers and agencies, sometimes seems to

in

of

to

the objectives

style, be

or

on

reporting. Should an annual design, and format an effort reach merely complete, clear, and accurate record available those who may care consult and

is it in as

large public

is of

be

is

that there confusion report popularized

a

the affairs

of

as

it

to

to

a

should stewardship which officially file for reference and proof should anyone question the integrity and efficiency performance? Some annual reports, such in

to

of

municipal water departments, contain scientific and engineering general but somewhat complicated interest the profession to

data

of

those

annual reports have often seemed assume that produced such manner command the popular picture magazine. same circulation and reader interest does reappraisal One wonders whether there not need for the objectives to

as

of

a

is

a

as

a

in

be

to

of

the layman. Critics they could and should

in

a

to a

the annual reports

44 cities certainly indicates that city While the study included

of

of

recent study

do

A

to

a

of

as

of

an annual report, and whether the results would not indicate its true purpose rendering stewardship style limited audience but easy lay understanding. and form conducive a

of

as

they not achieve widespread publicity. large Cincinnati, the median size was 16,000.

as

all

25

the city

to

libraries, universities, and other city upon officials. The median these reports was $300, costing per copy large 44 cents the cities and cents per copy the small.” city manager government Stone, Price, and Stone indicated The study

of

per cent going out

as a

of

as

The median number printed was 1,000, constituting one for each 28.2 the population and one for every 8.5 voters. However, these figures give too favorable picture because not many copies printed were distributed locally, copies

C.

*

Clark, W. (April, 1939), Vol.

pp. 292-298.

in

Museum

Pieces,”

spite

of

an

a

“Municipal Reports

II,

or

by

made

of

city ever saw annual report the International City Managers' Association

that few people

to in

of

by

in

31

amount spent

the efforts improve reporting.

Public Opinion

Quarterly

PUBLICITY AND REPORTS

Ch. 37]

603

Many managers stated that one-half or more of their reports were sent outside the city to libraries and to students of government.” The defects of annual reporting were first called to the attention of students in a systematic manner by Herman C. Beyle's study of the report ing situation in Chicago. It was found that over half of the local govern ment authorities were not reporting to the public in any form,” and that such reports as did emerge came with extreme irregularity.” They con sisted of puzzling and monotonous arrays of uninterpreted statistical tables;

judgment

was not exercised in the distribution of space to the various classes of material; and the reports came out much too late to attain much publicity value.” The substance of the reports possessed low informative value, consisting largely of inconsequential minutiae, such as the pounds of spinach raised on the municipal farm. There was marked neglect of what might be considered standard or important matters, and even on the transaction covered the information offered was not really be fair to condemn a nation on the basis of find ings in a single city, it is obvious that the individual defects referred to are quite prevalent either singly or in combination.

vital.” While it may not

A

after Beyle's study was published, Public Management com editorially upon the crop of municipal public reports for 1937. mented Under the title of “Seven More Sins” it found that there were many cate First, attention was gories of complaint against the reporting picture. given to the silence of so many cities. The eighty reports considered emanated from only about 5 per cent of the municipalities. The second item had to do with uninterpreted statistics, and it was pointed out that mere tables of figures are not easily understood by the lay citizen. A third decade

advised strongly against a discerned tendency to use graphs and statistical presentation upon which a false interpretation could be placed. Fourthly, there was a warning that statistics are superfluous, especially

criticism

those which cannot be related to some measure of accomplishment. A fifth defect related to poor makeup, faulty arrangement, lack of illustrations, and lack of discrimination in the choice of format, type, and printing. Sixth, it was felt that a general municipal annual report should not be statement of interest only bond houses. Lastly, the report should be an integrated picture, creating a synthesis of municipal operations and not a mere collection of departmental reports.” constituted predominantly

of

a lengthy financial

to accountants and municipal

in

** Harold A. Stone, Don K. Price, and Kathryn H. Stone, City Manager Government United States (Public Administration Service, Chicago, 1940), p. 161. ** Herman C. Beyle, Government Reporting in Chicago (University of Chicago Press,

the

Chicago, 1928), pp. 52–54. ** Ibid., pp. 64–65. ** Ibid., p. 66. Ibid., pp. 89, 101, 110. “Seven More Sins,” Public Management

* *

(February, 1938), Vol. XX,

p. 33.

PUBLIC RELATIONS

604

[Ch. 37

some evidence to show that the reports which private

There is

make to stockholders merit some of the same type directed at the annual reports of governmental agencies. tions

. . .

corpora

of criticism

The typical annual report consists of a consolidated balance income and surplus account, a brief and usually

sheet, a consolidated

utterly uninformative statement from the president, an auditor's cer tification to the financial statement, and a list of the officers and directors . . .48

Miriam Roher's study of reporting in Palo Alto, California, is interest ing both from the standpoint of results and methodology. The opinion poll procedure was applied to a scientifically

sample, representing a

selected

cross section of the population, immediately following three different types of reporting. Polling was by personal interview, using an identical ques tionnaire for each of the three surveys made six months apart. The first followed a dissemination of the annual report; the second, a series of box display articles on the front page of the local daily newspaper; and the

third,

Palo Alto is a university city with a popula family income above average, good government and a high

a one-day open house.

tion of 16,800, standard of public administration,

all

and perhaps a high average intelligence population. of the The results of the survey showed that the advertisement like newspaper series was most effective, a municipal report considerably

in

of

of

thumbing many pages by

textual material

or

be

of

to

on

go

to

came

is to

principles which three general conclusions relative must underlie successful municipal reporting. The first that voters will municipal voluntarily, “they not seek out information but have hit reading the head with it.” Second, people will not the effort

Miss Roher

to

•

of

It

in

teaching less effective, and a municipal open house hardly useful at citizens facts about the city government. was also apparent that none types reporting very teaching the citizen these three was effective the facts about municipal finance, especially taxing and the municipal debt.

governmental subject matter;

pictorial

or

a

attracted

is

central facts. Third,

of

5

a

of

be

graphic display which the most expensive medium per not necessarily the most effective because the newspaper series cost report.” outlay cent the for the

their attention must synthesis creates

E.

to

of

be

to

to

Popularize.—The last decade has witnessed wide Recent Attempts spread efforts municipal reports more popular and more interesting. make Ridley, Probably chief credit for results should given Clarence City Secretary Managers' Association, Executive the International who

a

of

to

49

-

p.

48

Hartwell, “Telling the Stockholder,” (March, Dickson Public Opinion Quarterly 1940), Vol. IV, 38. Miriam Roher, “How Good Are Reports Citizens?” Western City (August, 1941), Citizen,” National Municipal Review (April, pp. 17–19, 27; Miriam Roher, “Education 1941), Vol. XXX, pp. 192–198.

PUBLICITY AND REPORTS

Ch. 37]

605

has developed standards and criteria for the preparation and judging of such reports and who for several years acted as the judge for a national contest, the results of which were published annually in the National

Municipal Review.” The new dispensation in municipal reporting resulted in the diminution of solid textual pages and statistical tabulations and an increase of illustrations, charts, and graphs. Cities vied with each other to achieve individuality and novelty in typography, format, slickness of paper, and design. There was a flurry of photographs or isograms when these were so popular around 1935 to 1940, and experiments in cartography were the order of the day.” While Ridley's contest has been discontinued, there has resulted from his work a valuable guide and manual preparation of annual municipal reports.”

for the

Another interesting contest was that conducted by the Vermont Cham ber of Commerce to secure better annual reports from the local governments in that state and New England. This effort went even further and stimu lated better public reporting upon the part of the State of Vermont and even had some influence upon other states.” The inspirational genius of this campaign was James P. Taylor, Secretary of the Vermont Chamber of Commerce, who stated his prescription for good public reporting very succinctly in the following extract from an address to the New England º Tax Officials Association.

I

suggest that before any Tax: a temporary expedient may reports chaperones Official the of the rest of the official family, he put through himself and the others the following course of treatment, lest

As

he be dubbed by the public the tar-snatcher finances and turns them over to blind affairs:

misty

who snatches

Rudolf Modley,

p. Clarence

sº

170

How

be

as

in

follow

Municipal Reports,” National Municipal “Annual Appraisal Vol. XXV, pp. 26–29; ibid. (January, 1937), Vol. XXVI, pp. Use Pictorial Statistics

(Harper

&

51

31–35.

Ridley, 1936),

men to ready

of

Clarence

Revicw (January,

to

E.

50

Then get civic-spirited publicity or advertising Editorial Consultants, and the brother officials will

to sit

Glance through the advertising in The Saturday Evening Post; Note the publicity pages of Fortune; See what is done with type and color in Direct Advertising; Study three New Englanders; three Showmen New Englanders: Ethan Allen, who made news wherever he went; “Jubilee Jim,” Jim Fiske, “The Playboy of the Tinsel Age”; Phineas Taylor Barnum, who held the degree M.H.M., Master of the Human Mind, Summa cum Laude.

Bros.,

New

York, 1937), of

;

A

to

59

A.

E.

Ridley and Herbert Simon, Specifications for the Annual Municipal Report (International City Managers' Assn., Chicago, 1939, mimeo.), po, Checklist Suggested Items for the Annual Municipal Report, Supplement “Specifications for the Annual Municipal Report” (The International City Managers' Assn., Chicago, 1940, mimeo.),

Roads

Taylor, “Twenty Specifications James (October, 1939), Vol. IX, pp. 29–32. P.

39

18 pp.

for Modernized

Annual Reports,”

Better

PUBLIC RELATIONS

606 the ordained custom,

and obey the behest

of

[Ch. 37 the fathers by

writing

reports.”

Reporting Financial Operations.—Miss Roher's survey, reported above, indicated that the residents of municipalities were profoundly igno rant of financial condition, status, and operations of their municipality. Finance is one of the phases of public administration upon which it is ex ceedingly difficult to arouse the emotions except when particularly odious incidents cause a negative reaction of revulsion and disgust. Just as arith metic is the particular aversion of elementary pupils, as algebra is the béte noire of high school students, and as accounting and statistics result in similar reaction from college students, so does the man in the street pass over the implications

of public finance.

They are regarded as complex

and requiring mental effort which the ordinary citizen gives to public reports very grudgingly or not at all; hence the reporting of financial affairs must be tremendously simplified, and the only way to produce such simpli fication is by a good accounting system. It is a pleasure to report that progress laudable has been made in that direction both in the federal gov ernment and municipal government.

The first and essential principle of a financial report is that it must reflect all of the financial transactions. Strange as it may seem, govern mental accounting to date has largely failed in this respect because of the fact that most governmental jurisdictions could not present an integrated and consolidated fiscal statement based upon accrual accounting. In Chapter 25 the elementary characteristics of accrual accounting were set forth. Emphasis was placed upon the point that accrual accounting provides for the recording of bills incurred but not paid and of revenues due but not received, as against cash accounting which provides merely for recording the cash handled whether

it

be revenues or expenditures.

The government

of the United States has never been able to provide a consolidated balance sheet of the financial operations of the United States on the accrual basis— one which would reflect accurately the assets as against the debts, showing

Uncle Sam

as an integrated person owning

millions of dollars’ worth of equipment in Tennessee and at Grand Coulee. By Executive Order, August 13, 1940, the President authorized the Secretary of the Treasury to establish a system of central accounting, the inauguration electrical generating

its

of which will produce such a statement by depicting the far-flung financial operations of the government on an accrual basis. When it is in operation the citizen will be able, for the first time, to view his government fiscally as a going concern with reference to multifarious and far-flung financial

p.

2.

of

:

of

I.

R.

P.

**

Taylor, The Apologics James the Present Day Publican Modernized Public Reports, Remarks Before the Annual Conference the New England Tax Officials Asso ciation, September 20, 1935, Providence, (The Lane Press, Inc., Burlington, Vt.),

PUBLICITY AND REPORTS

Ch. 37]

607

assets, liabilities, and operations.” This develop ment was discussed in more detail in Chapter 23. On the municipal level the stimulus to municipal accounting has come largely from the work of

obligations, implications,

Municipal Accounting and the Municipal Many splendid publications have emanated Finance Officers' Association. from the National Committee and the Municipal Finance Officers Associa National Committee

the

on

tion.90

The National Committee on Municipal Reporting has suggested the following nine questions that the citizen will be likely to ask about the financial transactions of his city: 1.

is

is

to

be

the develop

as

who adequate publicity

to be

for additional tax burdens. There should

is

at

ment responsible

present seems inform the public to

the most important demands mediums which will accurately

or

of

One

of

.

.

.

its

is

of

its

.

Who runs the finances of the municipality? What part is played by the taxpayer in the process? money? Where does the municipality get capacity What the economic the municipality? Where does the money go? money? What services does the municipality get for What the present financial condition? Was the money spent honestly and efficiently? What the future financial program?

of

to

of

the share increase decrease attributable each the over lapping taxing areas: general city, school district, county, state, and others. given

in

in

to

advisable

"

the taxpayers.”

show, graphically

the people otherwise, and the

to

the tax base—the ability

of

to

it

to

to

is

interest

explain

to

It

The next matter pay taxes. will

of

the officials' failure be

increases,

or

of

a

on

they

of

desire, but they should know the truth that will restrain them from venting unjustified wrath innocent officials. More city “than one administration has been defeated (and few reelected) distinguish responsibility for tax because either the public's failure

these

if

things

increase local tax rates recent pension schemes for employees by objection the people's voting for

so

is

no

increased levies. For instance, many years has resulted from the voting the people themselves. There

an

by

of

he

The citizen should know how much the tax burden has voluntarily assumed himself and over which the officials have no control. Such would popular vote and referenda authorizing include bond issues approved

to

of

of

p.

on

*”

* I, *

Nationa, Association

of

Cost Accountants Bulletin (March, 1942), Vol. XXIII, No. 13, pp. 907–941. accounting required produce good municipal From the standpoint the type reporting see Accounting Publication, Municipal Budget Procedure and Budgetary Account ing (Municipal Finance Officers Assn., Chicago, 1942), 100 pp. Municipal Reporting, Public Reporting (Municipal Adminis National Committee tration Service No. 19, New York, 1931), 63.

Sec.

PUBLIC RELATIONS

608

[Ch. 37

valuation of real estate, tangible personal property, and intangible personal property. These data should be presented over a period of years long enough to show trends. Available comparative statistics of tax bur assessed

dens, while not 100 per cent valid, can be shown with interpretative remarks. Examples are the per capita cost of city government published annually by the Federal Bureau of the Census, and the tables of tax rates and bonded indebtedness published annually in the National Municipal

A fairly

Review.

valid comparison can sometimes be obtained by adjusting

valuation of several cities in the same class to a 100 per cent through ascertaining the percentage of assessed value to true value. basis A really accurate judgment of ability to pay cannot be secured, however, the assessed

until personal income data are more widely available.”

The Preparation of the Annual Report.—It cannot

of

it.

be to be

be emphasized too strongly that the preparation of the annual report is a year-round job from the standpoint of collecting the data which go into These data must secured from the operating records the department, made from hour

It

annual report.

The reporting

be

from those records which would have

to

forthcoming

made

in

an

administrative operations should not fetish and end sufficient information relative to administrative achievement

of

be an a

prepare

to

of

or

information with which

to

a

to

to

day for management control purposes. hour and day should not necessary separate parallel system reporting merely get set up itself,

for

should

be

for manage

by

a

a

is

to

of

ment control purposes even though there were no need for them for public reporting. The type data referred illustrated the reports which city manager might require from his department heads. Thus, certain

of

monthly report from each his departments. The Department one from the Finance shows how well revenues are being collected, the position each budget item, and the relation cash Daily payable. reports accounts written are received from the street super

to

of

of

of

a

city manager requires

to of

a at

of

to

of

projects, and the number intendent relative the number men each; police department manager work on and the furnishes the with operations. This particular manager regards consolidated daily report

in

to

to

a

to as

disciplinary the departmental reports him nature because the very department head has report fact that the manager makes him strive report worthwhile achievements.”

of

on

in

in

be

A

of

be a

steady, methodi series administrative reports should matter cal, and periodical accumulation. They should original records based each division and department arranged such uniformity and progres

Stone, Price,

of

already harassed line onerous extra task imposed upon Stone, op. cit.,

p.

67.

an

be

all

* 58

Ibid.,

p.

not

need

a

be

will automatically carried forward into con solidated statement for units. The preparation these original records sion that accumulation

138.

PUBLICITY AND REPORTS

Ch. 37]

609

They should consist of the day-by-day record of operations that would have to be made out in any case. Examples are offered by the policeman's report on the investigation of a crime, a timekeeper's record of work on a street repair gang, a mileage and tonnage report from a gar bage truck, a record of a completed purchase, and a payroll. There are countless others, which are kept standard forms, centrally accumu original lated and consolidated. The documents remain the lower in

on

all of

operators.

given council-manager

is

city will

be

a

in

a

of

of

the hierarchical order, but the consolidated results are recorded on uniform report forms and forwarded toward the apex.” Perhaps actually carried into practice realistic statement how this stratum

At Lynchburg,

more illustrative.

compiled

by

of

Virginia, monthly reports are the heads

bureaus

departments.

and

The various draft

keep their records on standard forms from which they

bureaus

so a

of

in

of

to

in

to

monthly reports turn, compile the departmental directors, who, reports departments the for the and forward them the City Man ager's office for checking and revision. The monthly reports form chronological record various city activities sufficient detail

of

of

to

by

of

to

of

in a

that subsequently they furnish an authoritative reference work all administrative action. Each month the reports are mimeographed copies bound for ready access limited number the city officials. steadily growing The number volumes the administrative record adequate maps, kept up date, revealing the are supplemented character and location all physical properties and utility plants, separate maps being maintained for each system.”

to

is

it

sets standards see how

vital

Chicago

Press,

to

be

in

of

a

of

plan While such administrative reporting undoubtedly far advance the prevailing average, difficult information can distributed the public without it.” SELECTED READINGs

Reporting

Chicago.

(University

of

Beyle, H. Governmental Chicago, 1928), 303 pp.

in

C.

BOOKS AND MONOGRAPHS

of

of

E.

Mosher, Committee on Public Relations Public Personnel Agencies (William Chairman). Public Relations Public Personnel Agencies. (Civil Service sembly, Chicago, 1941), 259 pp.

As

F.

in

is

C.

of

*

of

Willoughby, Principles An excellent discussion this principle contained W. Public Administration (Johns Hopkins Press, Baltimore, 1927), pp. 609–620. Donald Stone, The Management of Municipal Public Works (Public Administration Service, Chi

in

of

A

a

in

in

E.

in

of

8.

to

of

**

p.

ff.

p.

cago, 1939), 57 National Committee on Municipal Reporting, Public Reporting, op. cit., desiring special directions on the preparing Those annual reports are urged consult the writings Clarence Ridley and his several associates over the years. The accumulated results of these studies are set forth concise manual form the mimeo graphed pamphlets by Clarence Ridley and Herbert A. Simon, entitled Specifications for City Managers' Association the Annual Municipal Report, published by the International Chicago year later by Suggested Items for the Annual 1939, followed Checklist Municipal Report.

PUBLIC RELATIONS

610

[Ch. 37

Presentation of Crime in Newspapers: A Study of Methods in Newspaper (University of Minnesota Press, Minneapolis, 1933). Kilpatrick, W. Reporting Municipal Government. (Municipal Administration Serv ice, New York, Pub. No. 9, 1928), 77 pp. McCamy, James L. Government Publicity. (University of Chicago Press, Chicago,

Harris, F.

Research.

1939), 275 pp.

(University Merritt, LeRoy Charles. The United States Government as Publisher. of Chicago Press, Chicago), 179 pp. Mills, Alden B. Hospital Public Relations. (Physicians' Record Co., Chicago, 1939), 361

pp.

(Municipal Admin National Committee on Municipal Reporting. Public Reporting. istration Service, New York, Pub. No. 19, 1931), 158 pp. Olson, Emery E. The Speakers Club of Los Angeles (Civil Service Assembly, Pamphlet No. 4, July, 1936). Princeton University School of Public and International Affairs. Conference on the Press (April, 23–25, 1931). (The Printing Corp. of Am., Washington, D. C., 1931),

pp. 61–93.

Ridley, Clarence E., and Simon, Herbert A. Specifications for the Annual Municipal Report. (International City Managers' Assn., Chicago, 1939, mimeo.), 59 pp. (Harcourt, Brace & Co., New Rosten, Leo C. The Washington Correspondents.

York,

1937), 436 pp.

Taft, C. P. City Management: The Cincinnati Erperiment. (Farrar & Rinehart, Inc., New York, 1933), pp. 31–93. Taylor, James P. The Apologies of the Present-Day Publican: Modernized Public Reports, Remarks before the Annual Conference of the New England Tax Officials Association, September 20, 1935, Providence, R. I. (The Lane Press, Inc., Bur lington, Vt.), 8 pp. w

PERIODICALS Gordon W., and Faden, Janet M. “Psychology of Newspapers: Five Tenta Laws.” Public Opinion Quarterly (December, 1940), Vol. 4, pp. 687–703. Barton, J. T. “Municipal Public Reporting in Texas.” University of Teras Bulletin (Austin, 1936), 98 pp. Brattin, Barbara L. “Exhibits as a Medium for Public Reporting and Positive Re cruiting.” Public Personnel Review (April, 1942), Vol. 3, pp. 120–124. Clark, W. C. “Municipal Reports or Museum Pieces.” Public Opinion Quarterly Allport, tive

(April, 1939), Vol. 2, pp. 292–298. Gill, Norman N. “The Librarian Should Edit the Local Government's Annual Re port.” Library Journal (November 15, 1945), Vol. 70, pp. 1065–1068. Graves, W. Brooke. “Public Reporting in the American States.” Public Opinion Quarterly (April, 1938), Vol. 2, pp. 211–228. Harding, T. Swann. “Informational Techniques of the Department of Agriculture.” Public Opinion Quarterly (January, 1937), Vol. 1, pp. 83–96. Hartwell, Dickson. “Telling the Stockholder.” Public Opinion Quarterly (March, 1940), Vol. 4, pp. 35–47. Hazelrigg, Hal. “A Newspaper Man Looks at City Hall.” Public Management (March, 1938), Vol. 20, pp. 67–70. Hazelrigg, Hal. “Has the City Lost Its Voice?” Public Opinion Quarterly (July, 1938), Vol. 2, pp. 457-465. Loon, Jan von. “Radio and Better City Government.” Public Opinion Quarterly (January, 1938), Vol. 2, pp. 100–104. McMillan, George E. “Government Publicity and the Impact of War.” Public Opin ion Quarterly (Fall, 1941), Vol. 5, pp. 383–398. Mercey, Arch A. “Modernizing Federal Publicity.” Public Opinion Quarterly (July, 1937),

Vol.

1, pp. 87–94.

PUBLICITY AND REPORTS

Ch. 37]

611

Merwin, Frederic E. “The Reporting of Public Affairs.” Annals of Academy of Political and Social Science (January, 1942), Vol.

the American 219, pp. 120–

126.

Mosher, William E., and Van Dyke, Stuart. “Public Relations for Personnel Agen cies.” Public Personnel Review (October, 1940), Vol. 1, pp. 30–35. Roher, Miriam. “How Good Are Reports to Citizens.” Western City (August, 1941),

pp. 17–19, 27.

Rowlands, ment

Rowlands,

1938),

Trenholm, tober,

1941), 161,

Lee. 1938),

Wilson, Richard. Academy

Municipal

Activities

by

Radio.”

“Use of Movies in Reporting to Citizens.”

Vol.

Lawrence.

Vol.

“Reporting

Public

Manage

1941), pp. 102–109.

David G.

(March, Sullivan,

D.

David

(April,

-

23, pp. 67–71.

by

“Government

Mimeograph.”

Public Management

Monthly

Atlantic

-

(March,

pp. 306–315.

“Press-Agents

Vol.

Irritate

2, pp. 671–677.

“Reporting

of Political and

the

the Press.”

Washington

Social

Science

Public

News.” (January,

Opinion Quarterly Annals

1942),

of the American

Vol.

219,

pp.

131.

Wooddy, C. H. “Press Relations in City Management.” gust, 1931), Vol. 13, No. 8, pp. 260–263.

Public

(Oc

Management

127–

(Au

INDEX Accounting and reporting, unified, move ments toward in United States, 367 Accounting, budgetary, 392 Accounting control, federal, 366 Accounting, cost, 404 Accounting, decentralization of, 403 Accounts, classification of, 394 Accrual versus cash accounting, 392 Actuarial plan, 297 298

72

Administrative Administrative Administrative Administrative cities, 137

management

defined,

28

planning, 204 regions, or areas, 146 supervision of states over

Administrative of, 17

technician, junior,

Administrative

tribunals,

duties

integration

of,

462

ft.

549

Agriculture, Department of: budget plan ning in, 378; coordinating committees in, 187; graduate school, 339; organization chart depicting functional supervision of bureaus, 95; personnel organization in, 255; planning in, 198; study of Chicago offices,

162

Bank deposits, guarantee of, 425 Bankruptcy Act, Municipal, 431 Banks, deposit of public funds in, 425 Beard, Charles A., 216; on administration

145

Agriculture, Secretary officer, 451

of,

as

regulatory

science,

Bell Telephone System, public relations of, 570

Berkeley, open house, 598 Beyle, Herman C.: study reporting, 603 Bids, competitive sealed, 413, 414 rights, 445 Bill Bi-partisan boards, 103 Board administration, defects of, 104 Board business, planning 109 of,

-

paid, 598

Automatic coordination, 48 Auxiliary staff, 88

as a

Advertising,

Advisory boards, 100 Advisory committees,

118

Authority of administrative officers,

of

change,

Administrative courts, 488 Administrative, distinguished from execu tive, 27 Administrative law, content of, 443 Administrative legislation, 491

402

Aptitude tests, 271 Assembled tests, 268 Attorney General's Committee on Admin istrative Procedure, 465 Attorneys: in federal government, 507; rôle of, in administrative procedure, 473 Audit: administrative, 407; legislative, 539; post, 408 “Authority,” as government corporation,

7

defined,

Adjudication distinguished from legisla .tion, 464 Administration of field services, 144 Administration, relation to policy, 24 responsible for failure of Administration past civilizations, 21 Administrative ability, 9 Administrative assistants, 87; for Presi dent, 96 Administrative boards, criticism of, 104 Administrative code, 164 continuity and political Administrative

of

Actuary

Agriculture, Secretary's general staff, 87 Allotments, budgetary, 398 Altmeyer, A. J., 546 American administrative class, 14 American Bar Association, Committee on Administrative Law, 454 Anglo-Saxon constitutional safeguards to liberty, 444–446 Annual report, preparation of, 608 Appearance of quarters and equipment, 585 Appleby, Paul H. : on philosophy as in gredient of administration, 10–11 Appley, Lawrence A.: training confer ences, 341; training method, 185 Apportionment of Civil Service appoint ments among the states, 258–260 Apportionments, federal budgetary, 400 Appropriation ledger, 396 Appropriations: congressional committees on, 385; lump sum versus segregated,

613

INDEX

ments, 378–379

Budget: terminology, 371 ; timing, 384 Budgetary accounting, 392 Budgetary control, decentralization of, 403 Budgetary jurisdiction, 373 Budgetary reports, 495 Budgeting, four phases, 371 Bureau of the Budget, United States, con trol powers, 401 Bureaucracy, 35 Bureaucracy, invidious connotation, 30 Business manager, in federal departmeiºs, 93

1923, 256 Classification Act expenditures, 383 Classification Classification plan, 283; adoption and ad ministration of, 291–293 positions, 283 Classification Classification system, federal, 256 Closed versus open back door, 328 Collective bargaining, 325 Command, unity of, organization, Commission form inquiry, 550 Commissions Committees: advisory, 549; coordinating, 186; interdepartmental, 186–188 Common law, conservatism of, 449 Club San Francisco,

of

61

of

68

Capital budget, 374 Career service, 306 Cash, control of, 406

to,

Brookings Institution, report on federal re organization, 54 Buck, A. E., 371 m.; 375–376 Budget and Accounting Act of 1921, 53 Budget, Bureau of the, 364 Budget document, 381–382 Budget enactment, 385 Budget estimate form, 377 Budget planning, 371; in federal depart

243–244

of

permanent

service,

City Managers' Association, International, training program, 343 City planning, 200 Civic organizations, 554 Civil liberties, relation to growth of public administration, 34 Civil Service Assembly, report on public relations, 564 Civil service: attitude of city managers toward, 243–244; positions, exempted 235; financial support of, 236; opposition of professional groups 238 Civil Service Commission, United States, 248; field organization, 252; President's relation to, 261 Civil service commissions, dissatisfaction with, 238–240 Civilization, rôle public administration in, 30 Claims, tort, against the United States, 520 Class descriptions, 285 º

353

in

Chain of command, 68 Charts, organization, 165–167 Chatters, C. H., and Hillhouse, A. M.: on financing public works, 434 Chatters, C. H., and Tenner, Irving : on control of cash, 428 Checks, internal, 178, 406 Chicago law department, 505

cºwath

of

controls, 171–172 Central housekeeping Centralization, 129; distinguished from tegration, 130 Centralized purchasing, 411 Ceremony, public relations aspects of, 567 Certiorari, 529

Communication between headquarters and field, 157–158 Compensation plan, 287 Competition public purchasing, 413 Complaint, administrative tribunals, 468 Comptroller General, 53, 362 Conclusiveness administrative deter minations, 480 Conference method, 183 ff., 341 of

British legislative audit, 540 British Ministers, relation to civil service, 92 British Treasury, 352

government, comparison manager with private corporations, 37–38 City managers, attitude of toward civil

of

75

555

City

in

in departments,

563

Cincinnati Charter Committee, 555 City manager as administrator, 23 City manager, charters, citizen defense of,

in

reaus

British administrative class, 13 British Comptroller and Auditor General,

Chief administrative officer, 69 Childs, Harwood L.: on public relations,

of

100; bi-partisan, 103; clamor for, 110; er officio, 102; justi fiable use of, 107 ff.; relation of secre tary to chief administrative officer, 109 Boards and commissions, 99 Bond defaults, prevention of, 433 Bonds: revenue, 117; types of, 436 Boston Finance Commission, 551 Brecht, Arnold: ideas on arranging bu

of

Boards: advisory,

4

614

INDEX

of of,

74

of 92

on

in

of

V. :

A.

74

of

Democracy: definition 31; growth political, 31; influence public adminis tration on, 30 Departmental officers, Departments, number Deposit public funds banks, 427 Dewey, Thomas E., 522 Dicey, parties, 474

on

4;

officer,

70

of

Disbursing function, federal, 367 Discretion, control of, 444 Droit administratif, 484 Due process clause Fourteenth Amend ment, 481

Due process clauses, 456 Dykstra, Clarence A., 550 Economic planning, 195 Editors, newspaper, 594 Educational requirements for civil service appointments, 237 Efficiency rating, 310; federal Form 51, 314

-

of,

Elective finance officers, 349 Eligibles, certification 279 “Empire builders,” 47 Employee: organizations, 322; 318 (See also “Personnel”) Equipment control, 419 Esprit corps, 182

relations,

Evidence before administrative

tribunals,

470

Examiner, trial, 467 Executive budget, 372 Executive distinguished from administra tive, 27 Executive, limited, 444 Exempt positions, 235 Exhibits, 598 Fact and law, 478 Farm Credit Administration, 121; decen 148; letter writing, train tralization ing 584 Fayol, Henri: defines “control,” 173 52

Federal administrative organization, Federal classification system, 256 Federal financial organization, 362 Federal personnel system, 248 Federal purchasing set-up, 421 Federal Register, 497 cities, 135 Federal relation Federal-state relationships, 130–132 Federal supervision state and local ad ministration, 132 Federalism, defined, 131 Fesler, James W., 157; federal adminis trative regions, 146 on

148

Delegation of legislative and judicial power, 455 Delegation, relation of, to span of control,

Dimock, Marshall E.: compares public ad ministration with industrial management, 36; defines administration, on govern ment corporations, 125 Director Finance as chief administrative

f. of

433

Decentralization: of action papers, 158; of field services, 147 Declaratory relief, 535 Default of debts, 430 De jure and de facto officers, 516 Delegation of authority, 96; to the field,

administrative courts,

in,

Debt: administration, 430; limitation laws,

John:

to

189

Corporate concept, 114 Corporation Control Act of 1945, 123 Corporations, government, 113 Cost accounting, 404 Cost records, 215 Cost-of-living wage adjustments, 289 Council of Personnel Administration, 253 Council-manager organization, 61 Counseling, 330 Counter contacts, 578 County organization, 60 Courtesy, as factor in public relations, 575 Crime statistics, 218 Criminal jurisdiction, 483 Curve, normal probability, 269

488

of

Congressional check on administrative leg islation, 498 Congressional investigations, 544 Congressional opposition to administrative publicity, 589 Consultative approach, 283 Contests between cities, 223 Control activities, 173 Control units in armed services, 174 Coordinating committees, 186 Coordinating councils, 47–48 Coordinating devices: authoritative, 170; voluntary, 181 Coordination, 47; of field services, 156; of rule-making, 493; officer, 185; through planning, 201; through research and planning, 189; through standardization,

Dickinson,

de

of appropriations by,

385–388

in,

Congress, enactment

615

INDEX

clause, 481

of

of

18

71

76

of

on

of

as

a

of

of

-

10

General staff, 87 Generalist versus specialist, 20 Generalizing mind, George, Henry, 33 Gobbledygook, 27 Gosplan, 196 Government corporation: advantages of, 121; formation of, 1.19; future of, 125; 119–120; man internal organization agement autonomy in, 122–123 Government corporations, 113; audit of, 124; history of, 115; types of, 116 Government Reports, Office of, 581

:

Incompatible offices, 517 “Independent” agencies, 459 Indiana Plan, state supervision 141

Industrial

-

revolution, 448

of

departments,

93

Hawthorne Western Electric studies, 307 Health, public, standards, 220 Hearing, 469 Hearing officer, 467 Herring, Pendleton, 453, 539, 542 Hierarchy, 68 M., 434 Hillhouse, Hiscock, Ira V., 222 Hoan, Daniel W., 593 Holding corporation, 120 Home rule, municipal, 136–137 Hoover, Herbert, 556 Housekeeping, central supervision of, 170 per Hubbard, Henry lists essentials sonnel program, 233–234 Humphrey case, 460; removal case, 519 Huxley, Julian: organi importance zation, 46 :

on

in

oral interview,

277

10

federal

item analysis, 276–

F.

in

145;

Gaus, John M., 85, 87,88; generalizing mind, General Accounting Office, 362 General Administration, Bureau of, 171 General administration distinguished from functional subject matter, 9–10 General managers

456, 494

Hatch Act, 251 Hawthorne, W. 277; on objectivity

J.

mand, 68–69

Functional supervision, 89–91 Functional supervisors, 154 Functionalism, 78; field services, problems of, 153 Fund accounting, 394 Funds, custody of, 424

Habeas corpus, 534 Hall, Milton, 584 Harding administration, political removals in, 249 Hart, James W.: on administrative legis lation, 491; on standards delegation,

on

of

35

J.,

French administrative law, 484 Friedrich, Carl and Cole, Taylor: on bureaucracy, characteristics Functional isolation, 182 Functional organization chart, 165 Functional specialists versus chain com

-

72

of

process

of

due

on

of

Amendment,

of

on

on

on

of

of

169

Fourteenth

5;

477

E.

decisions,

Finance, Department 354–358 Finance officers, activities of, 350 Financial organization, 349 Financial structure, integrated, 354 Fire standards, 222 First-line supervisor, 190 Flemming, Arthur, 239 Follett, Mary P.: conference method, functionalism, 80; 183; “Illusion Final Authority,” 90 Forest Service: functional supervision in, 89; use diary, 213; use manuals,

as

of,

Finality of administrative

Governmental research movement, 553 Grady, James F., 589 Graham, George: report on education, Graicunas, V. A., 72 Grants-in-aid, 132 Graphic rating scale, 313 Graves, W. Brooke, 216, 547 Grievances, 329–330 Griffenhagen and Associates recommend state administration, Griffith, S., 217 Grouping an organization process, government, apprehension to Growth ward, 30 Gulick, Luther, 15, 72, 88, 544; defines ad ministration, defines POSDCORB, 19; on administration science, 6; on administrative regions, 146;"on grouping for organization, 76; on organization control, span field services, 152; of

contacts, coordination of, in public relations, 583 Field, Oliver P., 444 Field services, 144; control of 157; co ordination of, 156; unitary versus mul tiple control, 149

Field

A.

616

cities,

INDEX Informal organization, 81 Information, control through, 172 Information desk, 581 Information Service, United States, 591 Inherent executive power, 444–445 Injunction, 533 Inspection: and investigation, 177; of field stations, 159; of goods purchased, 416

Institute for Training in Municipal Ad ministration, 343 Institutional spirit, 182 Integration, 65–66; distinguished from cen tralization, 130; opposed by functional groups, 67 Integrationist school, 65 Intelligence: quotient, 271; tests, 271 Intern programs, 16 Internal checks, 178, 406; in public rela tions, 572 Internship, 339 Interview, oral, 277 Investigation: as a control device, 177; of administrative dereliction, 159 Investigations, legislative, 543 Invisible government, 66 Item analysis, 277

Item

veto, 389

Job analysis and description, 167 Judicial review, 477 Junior administrative technician Jurisdictional fact, 479

test, 16

Justice, Department of, United States, 503– 504

Kansas City, 555 Kefauver, Representative Estes: on attend ance of administrative heads in Con gress, 543

Labor, common, tests for, 273 Labor unions, 322 Landis, James M., 466, 482;

ideas

of, on

span of control, 74, 463 Laissez faire, 30 Law: and fact, 478; and order, rule of, 170; of public management, 509

Law office as a staff agency, 501 Laws, hierarchy of, governing administra tion, 163

.

Lawyer as management Lawyers: departmental,

staff aide, 504 507;

507

Layoff,

309

Leagues of municipalities, 140 Leave of absence, 295

selection

of,

617

Legal activities, 503 Legislative audit, 539 Legislative: councils, 546; criticism, 541; investigation, 543 Letter writing, 584 Levels of administration, 129 Liability: of public entities and officers, 519; of the states to be sued, 521 Liaison, 48, 186 Liaison Office for Personnel Management, 259

Liberals, attitude of, toward administra tion, 33 Liberty and administration, 33 Liberty League, 33 Lilienthal, David E.: “grass roots” concept of administration, 148 Line supervisor, relation to functional spe cialists, 156 Littauer School, 16 Lump sum versus segregated appropria tions, 402 Macmahon, Arthur W.: on emergence of general manager, 93 McCamy, James L., 592 McDiarmid, John, 113, 116 Madariaga, 32 Management: defined, 28; planning, 205 Mandamus, 531 Manuals, 168 . Mayo, Elton, 81 Measurement of clerical work, 212 Mercantilism, 448 Meriam, Lewis: on federal departmentali zation, 74; on types of personnel admin istration, 245; on university training, 15–16 status of, 229; de nials of, 234 Merriam, Charles E. : definition of democ racy, 31; on planning, 197 Millett, John D., 93 Model Laws, 216 Morale, 318 Morgan cases, citations to, 451 n. Morgan, T.V.A. removal case, cited 461 n. Morgenthau, Henry, Jr.: decentralized Farm Credit Administration, 148 Mosher, William E., 15 Motion pictures, 601 Municipal corporations, 116–117; liability of, 523 Municipal research bureaus, 553 Munro, W. B.: 66, 541, 566; criteria of good city government, 215

Merit System: current

Myers

case, 460, 519

INDEX Personnel, Personnel Personnel Personnel

federal system, 248 officers,

departmental,

or

of

91

of

21

of

of

19

POSDCORB,

of

on

Position classification, 283 Post-audit, 408 Pre-audit, 397 President's Committee on Administrative Management, 54; integration ad ministrative tribunals, 462; recommends abolition Civil Service Commission, 239; recommendations on independent agencies,

100

to

President's executive office, 87 President's relation Civil Service mission, 261 Press, cultivating good will of, 596 Press relations, 593 Pressure activities cies, 547

of

“Office” versus “employment,” 515 Officers, public, 515 Older, Fremont, 594 Olson, Emery E., 597 Open house, 598 Opinion polls, use of by Department of Agriculture, 558 Opinions, written, 466 Oral interview, 277; New York court de , cisions on, 278 Organization, 45; chart, skeleton, 95; charts, 165; control, 164; evolution of, 49; influenced by democratic movements, 50; of personnel departments, 238; prin ciples of, 65; sociology of, 81; subunits, 75; types of, 56 f. Overhead organization, 91

10–11

Physical planning, 200 Placement, 303, 307 Planning, 195 Police courtesy, 577 Policy, relation civil servants to, 25–26 Political and administrative functions, dis tinction between, 24 Political and permanent staff, fusion of, Political control civil service, 237 Politics and administration, Popular control administration, 557

of

217

National Resources Planning Board, 202 Nature of administration, 9 News values, 590 Newspaper reporting of administrative events, 593 ff. Newspaper man's attitude toward public ity agents, 590 New York Bureau of Municipal Research, 553; Training School, 15 New York City, capital budget, 374 New York City Department of Investiga tion, 178, 551 New York City, legislative investigation of, 545 New York Court of Claims, 522 New York Regents' Inquiry, 554 No-executive organization, 59 Notice, 469

254

organization chart, 166 organization: commission type, 240–241; director and commission type, 241; operating departments, line 244; single-headed type, 243 Personnel program, 229; essentials of, 233 Philosophy ingredient administration, as

National Board of Fire Underwriters, rat ing schedule, 222 National Civil Service Reform League, 229 National Institute of Public Affairs, 267 National Municipal League, 50 National Municipal League's Model City Charter, personnel provisions, 244 National Municipal League's Model Laws,

in

618

Com

administrative agen

Personnel eras, 231–232

Public

in

3

4;

of,

of

health

14

7

of

of of

as a

Parties at interest, 455,474 Pattern solutions, 8 Pay rolls, 293 Pendleton Act, 248 Pensions, 297 Personnel: compensation, 287; evaluation, 303; recruiting, 265; relations, 318, 575; training, 333, 57.1 Personnel department, financial support 239; organization of, 238

Pressure groups, 556 Prestige career, civil service Prestige public employment, 566 Principles administration, Printing, control of, 420 Probation period, 280 Probst rating form, 316 regulatory bodies, 465 Procedure Process chart, 175 Procurement division, 369; federal, 422 Prohibition, writ of, 528 Promotion, 303 Prosecuting attorney, 552 Provisional appointments, 235 Psychologists first World War, 231 Public administration: content of, 19; defi nition of, the study of, 13; recent expansion of, standards,

220

INDEX

administration and the, 539 before administrative bod

ies, 474 management management, 36

Public

compared

to private

Public relations: distinguished from poli

tics, 563; internal checks in, 572; re strictions on spending tax money for, 567; social implications of, 563; training for, 571 Public speaking, 597 Public works measurement, 214 Publicity, 589 Publicity agents, 589 Purchase requisition, 412 Purchases, emergency, 417 Purchasing: centralized, 411; cooperative, 412; set-up, federal, 421 hour

in

House

of Commons,

Service

evidence, 471 Rules Russian planning, 196

301

Revenue bonds,

117, 437

º

F. :

67

-

offi

'

38

6

de

Sealed

bids, 413, 414

of

14

Selective certification, 279 Selfridge, H. Gordon, Service ratings, 310 Sick leave, 296 Simon, Herbert A., 218, 569 Sinking funds, 432 Smith, Adam, 30, 448 Social implications scientific manage ment, 40 14

of

Social planning, 195 Social prestige civil service, Sociology organization, Soil Conservation Service, coordination 81

185–186

to

as

Span control, 72; related admin istrative tribunals, 463 Special districts corporations, 117 Spoilsman, 234 Staff and line, 84 as

173

Requisition for purchase, 412 Research, 195 Research, citizen, 553 Retirement, 297; current events affecting,

Safeguard rule-making power, 492 Salary and wage administration, 287 Salvage, 419 San Francisco's chief administrative cer, 70 Scalar principle, Schmeckebier, Laurence federal partmentalization, 74 administration, Science Scientific management, Scoring tests, 275 Scripps-Howard editors, 594 of

Radio, 599 Ramspeck Act: cited, 262; executive order under, 256 Rating, 310 Rating scales, 217 Recall of officers, 555 Receptionist, 580 Recruiting, 265 Recruitment of lawyers, 507 Reed Committee, 508–309; on importance of lawyers, 501 Reed, Thomas H., 554 Referee, 467 Referenda, administrative, 558 Regional planning, 203 Regulatory agencies: rise of, 450; struc ture and procedure of, 459 Removal: of federal commissioners, 460– 461; of officers, 518; of officers by Presi dent, 518; under civil service, 327 Reorganization Act of 1945, 55 Report, annual, 602 Reporters, newspaper, 595 Reporting, experimental study of, 604 Reports, budgetary, 495; as control de

of

Quo warranto, 527

vices,

Civil

of

541

54–55

Roosevelt, Theodore: as Commissioner, 250 Royal Commissions, 550 Rule making, 491

of

Question

of

interest,

in,

interest,

of

Public Public

Revenue department, 358 Revenues, accounting control over, 427 Review of administrative decisions, 482 Ridley, Clarence E., 15, 509, 604; on fire standards, 223 Ridley, Clarence E., and Nolting, Orin F. : field organization for cities, 146, 153 Ridley, Clarence E., and Simon, Herbert A. : study of standards, 218 Rightor, C. E., 554 Robson, W. A., 489 Roethlisberger, F. Roher, Miriam: experimental study public reporting, 604 Roosevelt, Franklin D., 445; and removal power, 519; relations with newspaper reporters, 595; reorganization orders,

J.,

433–

434

81

Public improvements, financing of,

619

INDEX

620

Staff, confusion surrounding term, 85 Staff work, nature of, 86 Standardization as tool of coordination, 189

Standardization of purchases, 415 Standardized tests, 271 Standards and measurements, 210 Standards of delegation, 456, 494 Stare decisis, 452 State liability to suit, 521 State administrative supervision, taken, 139 State department

form

of municipal affairs, 140 to local government,

State reorganization movements, 51–52 State supervision of local administration, 136 ft. Steffens, Lincoln, 66

Stewart, Frank M., 229 Stone, Harold A., et al.: comparison of city manager form with private corpo rations, 37–38 Stone, Price, and Stone: on annual re ports, 602; study of manager cities, 23 Storage and warehousing, 417 Strikes of government employees, 323–324 Strong-executive organization, 58 Suability of the United States, 520 Supervision, 319; as means of coordina tion, 190; functional, 154; of bureaus in departments,

94

Supervisors, training of, 340 Surety on bids, 415 Supremacy of the law, 446 Systems and procedures control, 407

Taft Efficiency

and Economy Commission,

52

Tax collection, Tax limit laws,

428 429

Taylor, James P., 605 Taylor, Frederick W., 38, 75; functional foremen, 78; functionalism, chart of, 79; on motion economy, partment, 204

210;

planning

Technology, administrative, 3 Telephone, use of, in public

de

relations,

582

Temporary appointments, 235 Temporary National Economic Commit tee, study

of bureaucracy,

35

Valley Authority: and labor Tennessee unions, 325; decentralization in, 148– 149; planning by, 203 Terminology, 26 Testing, 268

administration of, 280;

for labor

positions, 272; free answer versus short answer, 268–269; item analysis of, 277;

scoring, 275; validity and reliability of, validity of, 270 Thurstone's study of administrative apti tude, 274 n Time and motion study, 39 Time study, 213 Tort liability, 520 Training: by Zone School, 343; in-service, 333; the general administrator, 13 Training Within Industry, “J” courses, 275;

State grants-in-aid 138

federal

Tests:

342

Transfer, 307 Treasurer, 424 Treasurer of the United States, 368 Treasury, United States Department

of,

365

Truman, David B : study of Department of Agriculture field services, 145

Ultra vires

acts, 481

Unions, labor, 322 University training, 15 Upson, Lent D., 15, 70, 554 Upson, Cincinnati Report, 554 Vacation, 295 Validity and reliability defined, 276 Validity of tests, 275 Veterans' preference, 266 Veto of appropriations, 389 Walker, Harvey, 70 Walker, Mabel L., 217 Walter-Logan Bill, 454 War, effect on federal organization, 55 Warehousing, 418 Weak-executive organization, 56–57 Western Electric experiment, 81 White House Office, 87 White, Leonard D.: as Civil Service Com missioner, 239; on “auxiliary” activities, 88; on government corporations, 124; on prestige of public employment, 566 Whitley Councils, 326 Willoughby, W. F., 106, 543; classification of field services, 149–150; distinguishes between executive and administrative, 5; on housekeeping or institutional activi ties, 88

Wilson, Woodrow : essay on administra tion, 53 Witte, Edwin E., 548 Wolcott, Leon O., 85 Woolpert, E. D., 572

INDEX Work distribution chart,

Work

measurement,

Written opinions by administrative tribu

176

nals, 466

212

Work programs and allotments, Work simplification, 174 Work units, 214

621

398

Written procedures, 168 Wyoming, state administrator mended for, 71

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