Chapter 13Chapter 13“The Bureaucracy”“The Bureaucracy”

Bureaucracy Bureaucracy (the real (the real meaning)meaning)

A large, complex organization A large, complex organization composed of appointed officials, composed of appointed officials, where authority is divided among where authority is divided among several managers and/or several managers and/or departments.departments.

Bureaucracies have come to be Bureaucracies have come to be associated with “waste, confusion, associated with “waste, confusion, red tape, and rigidity.” red tape, and rigidity.”

We blame many of our problems on We blame many of our problems on “the bureaucracy.” “the bureaucracy.” – Cause of the problems are a result of Cause of the problems are a result of

the actions of Congress, the courts, and the actions of Congress, the courts, and the President.the President.

Distinctiveness of the Distinctiveness of the American BureaucracyAmerican Bureaucracy

Bureaucratic government is a part of Bureaucratic government is a part of all modern societies. However, the US all modern societies. However, the US has three aspects of constitutional has three aspects of constitutional system and political traditions that system and political traditions that make it distinctive.make it distinctive. Constitutional system and Constitutional system and

traditions traditions – Supervision shared Supervision shared – A federalist structure shares A federalist structure shares

functions functions – Adversary culture leads to defense of Adversary culture leads to defense of

rights and lawsuitsrights and lawsuits

Scope of the GovernmentScope of the Government

The scope of the United States The scope of the United States government differs from most others. government differs from most others.

Little public ownership of industry in the United Little public ownership of industry in the United States States

High degree of regulation in the United States of High degree of regulation in the United States of private industriesprivate industries

Many European governments own Many European governments own companies that make automobiles and companies that make automobiles and tobacco. (Can we say – Auto bailout ??)tobacco. (Can we say – Auto bailout ??)– we are regulated more than other countries. we are regulated more than other countries.

We choose regulation over govt. ownership.We choose regulation over govt. ownership.

Growth of BureaucracyGrowth of Bureaucracy

– The early controversies The early controversies Senate consent to removal of Senate consent to removal of

officials is challenged by supporters officials is challenged by supporters of a strong president of a strong president

President is given sole removal President is given sole removal power but Congress funds and power but Congress funds and investigatesinvestigates

The Appointment of The Appointment of OfficialsOfficials

Even though the bureaucracy started really, really Even though the bureaucracy started really, really small, the question of appointment was still bitterly small, the question of appointment was still bitterly fought over.fought over.

– The appointment of officials The appointment of officials Officials affect how laws are interpreted, the Officials affect how laws are interpreted, the

tone of their administration, and their tone of their administration, and their effectiveness effectiveness

Use of patronage in the nineteenth and early Use of patronage in the nineteenth and early twentieth centuries to reward supporters twentieth centuries to reward supporters

Civil War a watershed in bureaucratic growth; Civil War a watershed in bureaucratic growth; showed the weakness of federal governmentshowed the weakness of federal government

Early Growth cont. . .Early Growth cont. . .

In time, the constitutional powers of In time, the constitutional powers of interstate commerce which had not interstate commerce which had not been really used, became an been really used, became an important source of controversy.important source of controversy.

A Service RoleA Service Role 1861-1901: shift in role from regulation to 1861-1901: shift in role from regulation to

service service

The The Interstate Commerce CommissionInterstate Commerce Commission (ICC), created in 1887- first major govt role (ICC), created in 1887- first major govt role in the economy, little powers. in the economy, little powers. – The commitment to The commitment to laissez-fairelaissez-faire (freely (freely

competitive economy) was held.competitive economy) was held.– The Constitution said nothing about giving The Constitution said nothing about giving

regulatory powers to bureaucrats. regulatory powers to bureaucrats. Gave those powers to Congress, but they couldn’t Gave those powers to Congress, but they couldn’t

regulate, it was too complex. regulate, it was too complex. As late as 1935, both Congress and Supreme Court As late as 1935, both Congress and Supreme Court

felt that regulatory agencies could not make rules on felt that regulatory agencies could not make rules on its own.its own.

War GrowthWar Growth WWI, the Great Depression and World War II lead to a WWI, the Great Depression and World War II lead to a

role of government activism role of government activism – President President Woodrow WilsonWoodrow Wilson was given many was given many

regulatory powers from Congressregulatory powers from Congress– World War II - Heavy use of the federal income tax to finance World War II - Heavy use of the federal income tax to finance

activities. activities.

Federal agencies kept growing through all the Federal agencies kept growing through all the wars. wars.

The argument was keep the agencies The argument was keep the agencies around- “just in case” around- “just in case” – This caused agencies to find sometimes far-fetched This caused agencies to find sometimes far-fetched

excuses for additional funding. excuses for additional funding. – For example, the National Helium reserve was created for For example, the National Helium reserve was created for

military balloons and kept around through the Cold war as “a military balloons and kept around through the Cold war as “a valued asset in military planning.”valued asset in military planning.”

The Federal Bureaucracy The Federal Bureaucracy TodayToday

No President will admit it, but all of No President will admit it, but all of them have increased the them have increased the bureaucracy. bureaucracy. – For every 1 direct government worker- For every 1 direct government worker-

there may be as many as four people there may be as many as four people working indirectlyworking indirectly

– The power of the bureaucracy can be The power of the bureaucracy can be determined by the amount of determined by the amount of discretionary authoritydiscretionary authority (the ability to (the ability to act and make policies not spelled out by act and make policies not spelled out by the law) given to appointed officials. the law) given to appointed officials.

Three Main Areas of Govt. Three Main Areas of Govt. AuthorityAuthority

Paying subsidies to particular Paying subsidies to particular groups (farmers, schools, hospitals, groups (farmers, schools, hospitals, etc.).etc.).

Transferring money from the federal Transferring money from the federal to the state and local governments to the state and local governments (e.g. (e.g. grant-in-aidgrant-in-aid programs). programs).

Devising and enforcing regulations Devising and enforcing regulations for various sectors of society and for various sectors of society and the economy. (vague enough for the economy. (vague enough for anything!!)anything!!)

Administrative functions Administrative functions operate at all levels of operate at all levels of independence, some closely independence, some closely scrutinized, others barely scrutinized, others barely monitored. monitored.

Factors of Behavior of Factors of Behavior of OfficialsOfficials

How they are recruited and rewarded.How they are recruited and rewarded. Personal attributes (socio-economic Personal attributes (socio-economic

backgrounds, political party, etc.).backgrounds, political party, etc.). Job nature.Job nature. Constraints from outside forces (lobbies, Constraints from outside forces (lobbies,

journalists, Mafia, etc.).journalists, Mafia, etc.).

So you want to be a So you want to be a bureaucrat bureaucrat

The federal civil service system was The federal civil service system was designed to recruit workers based on designed to recruit workers based on merit, not patronage.merit, not patronage.

A system of A system of competitive servicecompetitive service has has arisen, where officials are only appointed arisen, where officials are only appointed after passing criteria set by the after passing criteria set by the Office of Office of Personnel ManagementPersonnel Management (OPM). (OPM).

Some agencies, like the FBI, have their Some agencies, like the FBI, have their own individual requirements own individual requirements

The kinds of workers are changing. The kinds of workers are changing. Blue-Blue-collarcollar is falling, is falling, white-collarwhite-collar is rising. is rising.

Other ways to get a jobOther ways to get a job There are generally three kinds:There are generally three kinds: Presidential appointments authorized by Presidential appointments authorized by

statue (e.g. ambassadors).statue (e.g. ambassadors). ““Schedule CSchedule C” jobs: “confidential or policy-” jobs: “confidential or policy-

determining character” below cabinet determining character” below cabinet posts (executive assistants, special aides, posts (executive assistants, special aides, etc.)etc.)

Noncareer Executive AssignmentsNoncareer Executive Assignments (NEA jobs) given to members deeply (NEA jobs) given to members deeply involved in promoting presidential involved in promoting presidential programs or participating in policy-programs or participating in policy-making.making.

Reasons whyReasons why Change started with the Change started with the 1883 1883

Pendleton ActPendleton Act, moved from the , moved from the spoils system to the merit system. spoils system to the merit system. The Pendleton Act was made easier The Pendleton Act was made easier to pass because of examples such to pass because of examples such as:as:

Public outrage over abuses of the Public outrage over abuses of the spoils system, spoils system,

Waves of hiring and firing every time Waves of hiring and firing every time a new president came into office a new president came into office

The Buddy SystemThe Buddy System Another way to circumvent the merit Another way to circumvent the merit

system is by the system is by the name-request jobname-request job. . – An agency that has already identified a person An agency that has already identified a person

for a position submits a form describing a job for a position submits a form describing a job to the OPM. to the OPM.

– On the same form is the name of the person On the same form is the name of the person who they want for the job. who they want for the job.

– They can even make the job description so They can even make the job description so specific so that only that person qualifies for it. specific so that only that person qualifies for it.

– However, it does not necessarily produce poor employees. It is often However, it does not necessarily produce poor employees. It is often used to hire people who possess special knowledge for a specific used to hire people who possess special knowledge for a specific committee who don’t need to know all the other stuff to pass the civil committee who don’t need to know all the other stuff to pass the civil service tests.service tests.

Firing a BureaucratFiring a Bureaucrat Most bureaucrats cannot be fired Most bureaucrats cannot be fired

– However, people that don’t like it find ways around it: denying However, people that don’t like it find ways around it: denying promotion, giving them bad jobs, meaningless work, etc.promotion, giving them bad jobs, meaningless work, etc.

Exception: Senior Executive Service Exception: Senior Executive Service (SES) (SES) – top-ranking managers that could be easily switched around or top-ranking managers that could be easily switched around or

fired. fired.

SES managers receive cash bonuses for SES managers receive cash bonuses for good performance good performance – Very few SES members have been fired or Very few SES members have been fired or

even transferredeven transferred

The Agency’s Point of The Agency’s Point of ViewView

Agencies are dominated by lifetime Agencies are dominated by lifetime bureaucrats who have worked for no bureaucrats who have worked for no other agency other agency

System assures continuity and System assures continuity and expertise expertise

But also gives subordinates power But also gives subordinates power over new bosses: can work behind over new bosses: can work behind boss's back through sabotage, boss's back through sabotage, delaying, and so ondelaying, and so on

Personal AttributesPersonal Attributes Allegations of critics Allegations of critics

– Higher civil servants are elitists Higher civil servants are elitists – Political appointees and career Political appointees and career

bureaucrats think about government bureaucrats think about government and politics differently than public at and politics differently than public at largelarge

Correlation between type of agency Correlation between type of agency and attitudes of employees: activist and attitudes of employees: activist versus traditional versus traditional

Professional values of officialsProfessional values of officials

Do Bureaucrats Sabotage Their Do Bureaucrats Sabotage Their Political Bosses?Political Bosses?

Not reallyNot really– Voting is highly personal, because Voting is highly personal, because

you have the freedom to do it. you have the freedom to do it.

– Highly structured roles, such as Highly structured roles, such as bureaucratic jobs are usually are bureaucratic jobs are usually are performed more separate from performed more separate from personal attitudes and usually with personal attitudes and usually with little sabotage.little sabotage.

If so, such sabotage hurts conservatives more If so, such sabotage hurts conservatives more than liberals; bureaucrats tend to be liberal than liberals; bureaucrats tend to be liberal

But loyalty to bosses runs strong--despite the But loyalty to bosses runs strong--despite the power of bureaucrats to obstruct or complain power of bureaucrats to obstruct or complain

– Whistleblower Protection Act (1989) created Office of Whistleblower Protection Act (1989) created Office of Special Counsel Special Counsel

– "Cooperation is the nature of a bureaucrat's job""Cooperation is the nature of a bureaucrat's job" Most civil servants: highly structured roles make Most civil servants: highly structured roles make

them relatively immune to personal attitudes them relatively immune to personal attitudes Professionals such as lawyers and economists in Professionals such as lawyers and economists in

the FTC: loosely structured roles may be much the FTC: loosely structured roles may be much influenced by personal attitudes, professional influenced by personal attitudes, professional values help explain how power is usedvalues help explain how power is used

Culture and CareersCulture and Careers The The cultureculture of an agency is formed by the of an agency is formed by the

implicit, unspoken understandings among fellow implicit, unspoken understandings among fellow employees considering proper conduct.employees considering proper conduct.

Jobs that are career enhancing are part of the Jobs that are career enhancing are part of the culture. Jobs that are culture. Jobs that are Not Career EnhancingNot Career Enhancing (NCE) are not part of it.(NCE) are not part of it.

Strong agency culture motivates Strong agency culture motivates employees but makes agencies employees but makes agencies resistant to changeresistant to change

– Basically- not going to volunteer for something if it Basically- not going to volunteer for something if it doesn’t help me in the long run, doesn’t help me in the long run,

ConstraintsConstraints

Biggest difference between a government Biggest difference between a government agency and a business: hiring, firing, pay, agency and a business: hiring, firing, pay, procedures, and so forth procedures, and so forth

General constraints General constraints – Administrative Procedure Act (1946) Administrative Procedure Act (1946) – Freedom of Information Act (1966) Freedom of Information Act (1966) – National Environmental Policy Act (1969) National Environmental Policy Act (1969) – Privacy Act (1974) Privacy Act (1974) – Open Meeting Law (1976) Open Meeting Law (1976) – Assignment of single jobs to several agenciesAssignment of single jobs to several agencies

One of the biggest constraints is that One of the biggest constraints is that Congress never gives a single job to a Congress never gives a single job to a single agency. Thus:single agency. Thus:

Action is slow.Action is slow. Action is inconsistent.Action is inconsistent. Action is blocked rather than taken.Action is blocked rather than taken. Lower-level employees hesitate to make Lower-level employees hesitate to make

decisions.decisions. Citizens complain of red tape.Citizens complain of red tape. That means the great big government is That means the great big government is

just a tad bit clumsy.just a tad bit clumsy.

Why So Many Why So Many Constraints?Constraints?

Who put in the constraints? Who put in the constraints? Apparently, we did. We, the people.Apparently, we did. We, the people.

We want a big bit of everything. If We want a big bit of everything. If we wanted less red tape, then we we wanted less red tape, then we would have to ask Congress to repeal would have to ask Congress to repeal some of the constraints.some of the constraints.

But politics actually encourages us to But politics actually encourages us to expect everything (efficiency, expect everything (efficiency, fairness, help for minorities, gender fairness, help for minorities, gender equality, etc.) all at once.equality, etc.) all at once.

Agency AlliesAgency Allies Agencies often seek alliances with Agencies often seek alliances with

congressional committees or interest congressional committees or interest groups: "iron triangle" groups: "iron triangle"

Far less common today; politics has Far less common today; politics has become too complicated become too complicated

– More interest groups, more congressional More interest groups, more congressional subcommittees, and easier access for individuals subcommittees, and easier access for individuals

– Far more competing forces than ever given Far more competing forces than ever given access by courtsaccess by courts

"Issue networks": groups that regularly "Issue networks": groups that regularly debate government policy on certain issues debate government policy on certain issues

– Contentious and partisan Contentious and partisan – New president often recruits from networksNew president often recruits from networks

Congressional Congressional OversightOversight

Forms of congressional supervision Forms of congressional supervision – Approval necessary for creation Approval necessary for creation – Statutes influence agency behavior (sometimes precisely) Statutes influence agency behavior (sometimes precisely) – Authorization of money, either permanent or fixed number Authorization of money, either permanent or fixed number

of years of years – Appropriation of money allows spendingAppropriation of money allows spending

Interest groups important to Congress are almost Interest groups important to Congress are almost automatically important to agencies.automatically important to agencies.

This is because Congress has so much power to This is because Congress has so much power to “supervise”:“supervise”:– No agency may exist without congressional approval.No agency may exist without congressional approval.– No money is spent unless with congressional authorization.No money is spent unless with congressional authorization.– Authorized funds must also be appropriated by Congress Authorized funds must also be appropriated by Congress

before spent.before spent.

Authorization legislationAuthorization legislation states states the maximum amount of money an the maximum amount of money an agency can spend on a given agency can spend on a given program.program.

After that, the After that, the appropriationappropriation says says how much may actually be spent at how much may actually be spent at that time, and is usually less than the that time, and is usually less than the sum stated by the authorization sum stated by the authorization legislation.legislation.

The Appropriations Committee and The Appropriations Committee and Legislative CommitteesLegislative Committees

Appropriations Committee most powerful Appropriations Committee most powerful – Most expenditure recommendations are approved by Most expenditure recommendations are approved by

House House – Has power to lower agency's expenditure request Has power to lower agency's expenditure request – Has power to influence an agency's policies by marking up Has power to influence an agency's policies by marking up

an agency's budget an agency's budget – But becoming less powerful because of But becoming less powerful because of

Trust funds: Social Security Trust funds: Social Security Annual authorizations Annual authorizations Meeting target spending limitsMeeting target spending limits

Committee clearanceCommittee clearance means certain committees means certain committees may obtain the right to pass on certain agency may obtain the right to pass on certain agency decisions. decisions.

Legislative committees are Legislative committees are important when important when

– A law is first passed A law is first passed – An agency is first created An agency is first created – An agency is subject to annual An agency is subject to annual

authorizationauthorization

The Legislative VetoThe Legislative Veto The The legislative vetolegislative veto required that executive decisions required that executive decisions

lay before Congress for a specified period before taking lay before Congress for a specified period before taking effect. During that time, Congress could veto the effect. During that time, Congress could veto the decision if a one-house or two-house were achieved. decision if a one-house or two-house were achieved. Unlike laws, the president didn’t have to sign this Unlike laws, the president didn’t have to sign this resolution.resolution.

– Declared unconstitutional by Supreme Court Declared unconstitutional by Supreme Court in in Chadha Chadha (1983) (1983)

– Weakens traditional legislative oversight but Weakens traditional legislative oversight but Congress continues creating such vetoesCongress continues creating such vetoes

– Yet there are still a number of laws passed after the Supreme Yet there are still a number of laws passed after the Supreme Court decision that contain legislative vetoes, probably done Court decision that contain legislative vetoes, probably done through congressional influence.through congressional influence.

Congressional InvestigationCongressional Investigation::

Congress can’t investigate personal Congress can’t investigate personal actions, and can’t take away your rights actions, and can’t take away your rights but Congress can: but Congress can:

Power inferred from power to legislate Power inferred from power to legislate Means for checking agency discretion Means for checking agency discretion Means for limiting presidential controlMeans for limiting presidential control

Bureaucratic Bureaucratic “Pathologies”“Pathologies”

There are five major (or frequently There are five major (or frequently mentioned) problems with bureaucracies:mentioned) problems with bureaucracies:

Red tapeRed tape: complex rules and procedures : complex rules and procedures that must be followed to get something that must be followed to get something done.done.

ConflictConflict: agencies seem to be working : agencies seem to be working against other agencies.against other agencies.

DuplicationDuplication: two or more agencies seem : two or more agencies seem to be doing the same thing.to be doing the same thing.

ImperialismImperialism: when agencies grow : when agencies grow without regard to benefit or cost.without regard to benefit or cost.

WasteWaste: spending more than is necessary.: spending more than is necessary.

However, there are a few However, there are a few excuses:excuses:

Red tape: We need a way of making sure one part Red tape: We need a way of making sure one part of the government doesn’t operate out of step with of the government doesn’t operate out of step with another.another.

Conflict and duplication: Congress often wants to Conflict and duplication: Congress often wants to achieve many different, partially inconsistent goals. achieve many different, partially inconsistent goals.

Imperialism: When Congress is unsure of what the Imperialism: When Congress is unsure of what the agencies are supposed to do, the agencies take the agencies are supposed to do, the agencies take the broadest meaning and use the largest view of its broadest meaning and use the largest view of its powers. powers.

Waste: Waste is existent. There is little incentive to Waste: Waste is existent. There is little incentive to lower costs, for there is no personal reward as there lower costs, for there is no personal reward as there is in private businesses. Also, the government has is in private businesses. Also, the government has red tape to go through that private firms don’t.red tape to go through that private firms don’t.– (They’re not spending their money, they’re spending yours, (They’re not spending their money, they’re spending yours,

why save it??) why save it??)

Reforming the bureaucracyReforming the bureaucracy

Numerous attempts to make Numerous attempts to make bureaucracy work better for less money bureaucracy work better for less money Eleven attempts to reform in 20Eleven attempts to reform in 20thth century century National Performance Review (NPR) in 1993 National Performance Review (NPR) in 1993

designed to reinvent government designed to reinvent government – Differs from previous reforms that sought to increase Differs from previous reforms that sought to increase

presidential control presidential control – Emphasizes customer satisfaction by bringing Emphasizes customer satisfaction by bringing

citizens in contact with agenciescitizens in contact with agencies NPR calls for innovation and quality consciousness NPR calls for innovation and quality consciousness

by by – Less-centralized management Less-centralized management – More employee initiatives More employee initiatives – Customer satisfactionCustomer satisfaction

Problems with ReformProblems with Reform

Most rules and red tape result from the Most rules and red tape result from the struggle between the president and struggle between the president and Congress. Congress.

This struggle makes bureaucrats nervous This struggle makes bureaucrats nervous about irritating either about irritating either

Periods of divided government exacerbate Periods of divided government exacerbate matters, especially in implementing policy. matters, especially in implementing policy.

– Republican presidents seek to increase political Republican presidents seek to increase political control (executive micromanagement) control (executive micromanagement)

– Democratic Congresses respond by increasing Democratic Congresses respond by increasing investigations and rules (legislative investigations and rules (legislative micromanagement)micromanagement)

Federal DepartmentsFederal Departments

Department of State Department of State -  -  Department of the Treasury Department of the Treasury - - Department of Defense Department of Defense - - Department of Justice Department of Justice - - Department of the Interior - Department of the Interior -   Department of Agriculture Department of Agriculture -  -  Department of Commerce- Department of Commerce- Department of Labor - Department of Labor -   Department of Health and Human Services Department of Health and Human Services – –

Department of Housing and Urban Development - Department of Housing and Urban Development - Department of Transportation - Department of Transportation -   Department of Energy Department of Energy -   -  Department of Education - Department of Education -   Department of Veterans Affairs - Department of Veterans Affairs -

Department of Homeland Security -Department of Homeland Security -

The following positions have the status The following positions have the status of Cabinet-rank:of Cabinet-rank:

  White House Chief of Staff -White House Chief of Staff -

Environmental Protection Agency- Environmental Protection Agency- Office of Management & Budget - Office of Management & Budget - United States Trade Representative - United States Trade Representative - United States Ambassador to the United Nations- United States Ambassador to the United Nations- Council of Economic Advisers -Council of Economic Advisers -

Independent Agencies and Independent Agencies and Government CorporationsGovernment Corporations

Created by Congress to deal with Created by Congress to deal with areas outside of the scope of normal areas outside of the scope of normal legislation, the agencies and legislation, the agencies and corporations take care of much of the corporations take care of much of the day-to-day business of government.day-to-day business of government.

Amtrak Amtrak Central Intelligence Agency (CIA) Central Intelligence Agency (CIA) Commission on Civil Rights Commission on Civil Rights Federal Communications Commission (FCC) Federal Communications Commission (FCC) Federal Deposit Insurance Corporation (FDIC) Federal Deposit Insurance Corporation (FDIC) Federal Emergency Management Agency (FEMA) Federal Emergency Management Agency (FEMA) Federal Reserve System Federal Reserve System Federal Trade Commission (FTC) Federal Trade Commission (FTC) (NASA) (NASA) National Endowment for the Arts National Endowment for the Arts Nuclear Regulatory Commission (NRC) Nuclear Regulatory Commission (NRC) Peace Corps Peace Corps Securities and Exchange Commission (SEC) Securities and Exchange Commission (SEC) Selective Service System Selective Service System Social Security Administration (SSA) Social Security Administration (SSA) United States Postal Service (USPS) United States Postal Service (USPS)