CHAPTER 15CHAPTER 15

The BureaucracyThe Bureaucracy

I.I. Distinctiveness of the Distinctiveness of the United States United States bureaucracybureaucracy

A.A. Bureaucracy: a large, complex organization composed of Bureaucracy: a large, complex organization composed of appointed officialsappointed officials

B.B. Although size and complexity can cause problems for Although size and complexity can cause problems for bureaucracies, the political context in which these organizations act bureaucracies, the political context in which these organizations act may be what creates problems.may be what creates problems.

C.C. Distinctiveness of the American bureaucracyDistinctiveness of the American bureaucracy 1.1. President and Congress share political authority over the President and Congress share political authority over the

bureaucracybureaucracy 2.2. Federal agencies share functions with related state and local Federal agencies share functions with related state and local

government agencies.government agencies. 3.3. Adversary culture leads to closer scrutiny and makes court Adversary culture leads to closer scrutiny and makes court

challenges more likelychallenges more likely D.D. Scope of bureaucracyScope of bureaucracy

1.1. Little public ownership of industry in the United StatesLittle public ownership of industry in the United States 2.2. High degree of regulation of private industries in the United High degree of regulation of private industries in the United

StatesStates

I.I. Distinctiveness of the Distinctiveness of the United States bureaucracy United States bureaucracy (cont.)(cont.) E.E. Proxy government: federally funded programs that Proxy government: federally funded programs that

are staffed and administered by state and local are staffed and administered by state and local governments and private groupsgovernments and private groups 1.1. Government by proxy affects large federal programs, Government by proxy affects large federal programs,

including Social Security and Medicare.including Social Security and Medicare. 2.2. Military support and emergency response programs also Military support and emergency response programs also

supplemented by federal partnerssupplemented by federal partners 3.3. Disadvantages of government by proxy:Disadvantages of government by proxy:

a)a) No accountability about how funds are usedNo accountability about how funds are used b)b) No incentive for Congress to increase oversightNo incentive for Congress to increase oversight

4.4. Advantages of government by proxy:Advantages of government by proxy: a)a) Increased flexibilityIncreased flexibility b)b) Greater utilization of skills found in private and Greater utilization of skills found in private and

nonprofit sectorsnonprofit sectors c)c) Defends constitutional principle of federalismDefends constitutional principle of federalism d) Many average citizens receive costly federal government d) Many average citizens receive costly federal government

services without ever directly interacting with civil servants.services without ever directly interacting with civil servants.

II.II. The growth of the The growth of the bureaucracybureaucracy

A.A. Constitution made little provision for administrative system, so Constitution made little provision for administrative system, so provides little guidanceprovides little guidance 1.1. Early debate in the Senate over whether the president should Early debate in the Senate over whether the president should

have sole removal power over cabinet appointments; president won that have sole removal power over cabinet appointments; president won that challengechallenge

2.2. Congress retained right to appropriate money, investigate Congress retained right to appropriate money, investigate the administration, and shape laws that the president would execute during his the administration, and shape laws that the president would execute during his administration.administration.

B.B. The appointment of officialsThe appointment of officials 1.1. Officials affect how laws are interpreted, the tone and Officials affect how laws are interpreted, the tone and

effectiveness of the administration, party strengtheffectiveness of the administration, party strength 2.2. Patronage in nineteenth and early twentieth centuries rewarded Patronage in nineteenth and early twentieth centuries rewarded

supporters, induced congressional support, built party organizationssupporters, induced congressional support, built party organizations 3.3. Civil War a watershed in bureaucratic growth; it showed the Civil War a watershed in bureaucratic growth; it showed the

administrative weakness of federal government and increased demands for administrative weakness of federal government and increased demands for civil service reformcivil service reform

4.4. Post–Civil War period saw industrialization and the emergence of Post–Civil War period saw industrialization and the emergence of a national economy; power of national government to regulate interstate a national economy; power of national government to regulate interstate commerce was necessary, even though it was controversialcommerce was necessary, even though it was controversial

II.II. The growth of the The growth of the bureaucracy (cont.)bureaucracy (cont.)

C.C. A service roleA service role 1.1. 1861–1901: Role of new agencies was to serve, not regulate 1861–1901: Role of new agencies was to serve, not regulate

a)a) Constitutional values of limited government, states’ rights, and Constitutional values of limited government, states’ rights, and fragmented powerfragmented power

b)b) Laissez-faireLaissez-faire philosophy philosophy c)c) Supreme Court held that, under the Constitution, an executive agency Supreme Court held that, under the Constitution, an executive agency

could not make rules on its own; it could only apply standards enacted by Congress.could not make rules on its own; it could only apply standards enacted by Congress. 2.2. Wars led to reduced restrictions on administrators and an enduring increase Wars led to reduced restrictions on administrators and an enduring increase

in executive-branch personnel.in executive-branch personnel. D.D. A change in role: Role of agencies was to deal with economic and A change in role: Role of agencies was to deal with economic and

social problems social problems 1.1. Depression and World War II led to government activismDepression and World War II led to government activism 2.2. Supreme Court upheld laws that granted discretion to administrative Supreme Court upheld laws that granted discretion to administrative

agenciesagencies 3.3. Heavy use of income taxes supported war effort and a large bureaucracyHeavy use of income taxes supported war effort and a large bureaucracy 4.4. Public believes in continuing military preparedness and various social Public believes in continuing military preparedness and various social

programsprograms 5.5. 9/11 attacks could also affect bureaucracy as profoundly as World War II 9/11 attacks could also affect bureaucracy as profoundly as World War II

and the Depressionand the Depression a)a) New cabinet agency (Department of Homeland Security) was createdNew cabinet agency (Department of Homeland Security) was created b)b) Centralization of intelligence-gathering activities under single directorCentralization of intelligence-gathering activities under single director c) General Accounting Office issued a report which was critical of DHS for continuing c) General Accounting Office issued a report which was critical of DHS for continuing

management problems in controlling this diverse array of counterterrorism agencies.management problems in controlling this diverse array of counterterrorism agencies.

III.III. The federal The federal bureaucracy todaybureaucracy today

A.A. Direct and indirect growthDirect and indirect growth 1.1. Modest increase in number of government Modest increase in number of government

employeesemployees 2.2. Significant indirect increase in number of Significant indirect increase in number of

employees through use of private contractors and state employees through use of private contractors and state and local government employeesand local government employees

3.3. Other indicators of size:Other indicators of size: a)a) Federal spending as a percentage of the GDP Federal spending as a percentage of the GDP

has averaged around 20 percenthas averaged around 20 percent b)b) Number of pages in Number of pages in Federal Register Federal Register decreased decreased

in 1980s, but rose steeply in 1990s to bring it back up to mid-in 1980s, but rose steeply in 1990s to bring it back up to mid-1970s levels1970s levels

c)c) Number of federal civilian employees decreased Number of federal civilian employees decreased by about 10 percent between 1975 and 2005; drop seen across by about 10 percent between 1975 and 2005; drop seen across all agencies except Department of Justiceall agencies except Department of Justice

III.III. The federal The federal bureaucracy today (cont.) bureaucracy today (cont.) B.B. Growth in discretionary authority, the ability to Growth in discretionary authority, the ability to

choose courses of action and to make policies not set out choose courses of action and to make policies not set out in the statutory lawin the statutory law 1.1. Delegation of undefined authority by Congress greatly Delegation of undefined authority by Congress greatly

increasedincreased 2.2. Primary areas of delegation:Primary areas of delegation:

a)a) Paying subsidies to groups and organizationsPaying subsidies to groups and organizations b)b) Transferring money from national to state and local Transferring money from national to state and local

governments (grant-in-aid programs)governments (grant-in-aid programs) c)c) Devising and enforcing regulations, especially for Devising and enforcing regulations, especially for

the economythe economy C.C. Factors explaining the behavior of officialsFactors explaining the behavior of officials

1.1. Recruitment and reward systemsRecruitment and reward systems 2.2. Personal and political attributesPersonal and political attributes 3.3. Nature of workNature of work 4.4. Constraints imposed on agencies by various outside Constraints imposed on agencies by various outside

actorsactors

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.)

D.D. Recruitment and retentionRecruitment and retention 1.1. Competitive service: bureaucrats compete for jobs through OPMCompetitive service: bureaucrats compete for jobs through OPM

a)a) Appointment by merit based on written exam or through selection Appointment by merit based on written exam or through selection criteriacriteria

b)b) Competitive service system has become more decentralized, less Competitive service system has become more decentralized, less reliant on OPM referral.reliant on OPM referral.

(i)(i) OPM system is cumbersome and not geared to department needsOPM system is cumbersome and not geared to department needs (ii)(ii) Agencies need professionals who cannot be evaluated by examinationAgencies need professionals who cannot be evaluated by examination (iii)(iii) Agencies face pressure to diversify federal bureaucracy personnelAgencies face pressure to diversify federal bureaucracy personnel

2.2. Excepted service: bureaucrats appointed by agencies, typically in a Excepted service: bureaucrats appointed by agencies, typically in a nonpartisan fashionnonpartisan fashion

a)a) About 3 percent of excepted employees are appointed by the president About 3 percent of excepted employees are appointed by the president on grounds other than merit: on grounds other than merit:

(1)(1) Presidential appointments authorized by statutePresidential appointments authorized by statute (2)(2) “Schedule C” jobs that involve a “confidential or policy-determining “Schedule C” jobs that involve a “confidential or policy-determining

character”character” (3)(3) Noncareer executive assignments involved in advocacy or policy makingNoncareer executive assignments involved in advocacy or policy making b)b) Pendleton Act (1883) changed the basis of government jobs from Pendleton Act (1883) changed the basis of government jobs from

patronage to meritpatronage to merit c)c) Merit system protects president from pressure and protects patronage Merit system protects president from pressure and protects patronage

appointees from removal by new presidents.appointees from removal by new presidents.

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.)

3.3. The buddy systemThe buddy system a)a) Name-request job: filled by a person whom an agency has already Name-request job: filled by a person whom an agency has already

identified for middle- and upper-level jobsidentified for middle- and upper-level jobs b)b) Job description may be tailored to personJob description may be tailored to person c)c) Circumvents the usual search processCircumvents the usual search process d)d) Encourages issue networks based on shared policy viewsEncourages issue networks based on shared policy views

4.4. Firing a bureaucratFiring a bureaucrat a)a) Most bureaucrats cannot be easily fired, although there are informal Most bureaucrats cannot be easily fired, although there are informal

methods of discipline.methods of discipline. b)b) Senior Executive Service (SES) was established in 1978 to provide the Senior Executive Service (SES) was established in 1978 to provide the

president and cabinet with more control in personnel decisions but was not very president and cabinet with more control in personnel decisions but was not very effective.effective.

5.5. The agency’s point of viewThe agency’s point of view a)a) Agencies are dominated by lifetime bureaucrats who have worked for no Agencies are dominated by lifetime bureaucrats who have worked for no

other agency.other agency. b)b) Long-term service assures continuity and expertise.Long-term service assures continuity and expertise. c)c) Long-term service also gives subordinates power over new bosses: can Long-term service also gives subordinates power over new bosses: can

work behind their boss’s back through sabotage, withholding information, and so onwork behind their boss’s back through sabotage, withholding information, and so on

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.)

E.E. Personal attributesPersonal attributes 1.1. Includes social class, education, political beliefsIncludes social class, education, political beliefs 2.2. Beliefs about politics and government may differ from those of Beliefs about politics and government may differ from those of

the public, because political appointees and career bureaucrats are the public, because political appointees and career bureaucrats are unrepresentative of the average American and because they have a unrepresentative of the average American and because they have a supposed occupational self-interest. supposed occupational self-interest.

3.3. Surveys of bureaucrats Surveys of bureaucrats a)a) Career bureaucrats more likely to hold liberal views, trust Career bureaucrats more likely to hold liberal views, trust

government, and vote for Democrats.government, and vote for Democrats. b)b) Political appointees usually reflect same political beliefs as Political appointees usually reflect same political beliefs as

president appointing them.president appointing them. c)c) Bureaucrats do not take extreme positions.Bureaucrats do not take extreme positions.

4.4. Correlation found between the type of agency and the attitudes of Correlation found between the type of agency and the attitudes of the employeesthe employees

a)a) Activist agency bureaucrats tend to be more liberal (FTC, Activist agency bureaucrats tend to be more liberal (FTC, EPA, FDA).EPA, FDA).

b)b) Traditional agency bureaucrats tend to be less liberal Traditional agency bureaucrats tend to be less liberal (Agriculture, Commerce, and Treasury).(Agriculture, Commerce, and Treasury).

c)c) Bureaucrats’ policy views reflect the type of work that they Bureaucrats’ policy views reflect the type of work that they do.do.

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.)

F.F. Do bureaucrats sabotage their political bosses?Do bureaucrats sabotage their political bosses? 1.1. Most bureaucrats try to carry out policies, even those they Most bureaucrats try to carry out policies, even those they

disagree with.disagree with. 2.2. But bureaucrats do have obstructive powers; Whistleblower But bureaucrats do have obstructive powers; Whistleblower

Protection Act (1989) enacted to protect bureaucrats from retaliation for Protection Act (1989) enacted to protect bureaucrats from retaliation for reporting waste, fraud, or abuse reporting waste, fraud, or abuse

3.3. Most civil servants have highly structured jobs that make their Most civil servants have highly structured jobs that make their personal attitudes irrelevant.personal attitudes irrelevant.

4.4. Professionals’ loosely structured roles may cause their work to be Professionals’ loosely structured roles may cause their work to be more influenced by personal attitudes.more influenced by personal attitudes.

a)a) Professional values help explain how power is used.Professional values help explain how power is used. b)b) Example: lawyers versus economists at the Federal Trade Example: lawyers versus economists at the Federal Trade

CommissionCommission G.G. Culture and careersCulture and careers

1.1. Each agency has its own culture, an informal understanding Each agency has its own culture, an informal understanding among employees about how they are supposed to act.among employees about how they are supposed to act.

2.2. Strong agency culture motivates employees but makes agencies Strong agency culture motivates employees but makes agencies resistant to change.resistant to change.

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.)

H.H. Constraints Constraints 1.1. Much greater on government agencies than on private Much greater on government agencies than on private

bureaucraciesbureaucracies 2.2. Hiring, firing, pay, and other procedures are established by law, Hiring, firing, pay, and other procedures are established by law,

not by the market.not by the market. a)a) General constraints:General constraints:

(i)(i) Administrative Procedure Act (1946)Administrative Procedure Act (1946) (ii)(ii) Freedom of Information Act (1966)Freedom of Information Act (1966) (iii)(iii) National Environmental Policy Act (1969)National Environmental Policy Act (1969) (iv)(iv) Privacy Act (1974)Privacy Act (1974) (v)(v) Open Meeting Law (1976)Open Meeting Law (1976) (vi)(vi) Several agencies are often assigned to a single policy.Several agencies are often assigned to a single policy.

b)b) Effects of constraints:Effects of constraints: (i)(i) Government moves slowly.Government moves slowly. (ii)(ii) Government sometimes acts inconsistently.Government sometimes acts inconsistently. (iii)(iii) Easier to block action than take actionEasier to block action than take action (iv)(iv) Reluctant decision making by lower-ranking employees.Reluctant decision making by lower-ranking employees. (v)(v) Red tapeRed tape

3.3. Constraints come from citizens: agencies try to respond to citizen Constraints come from citizens: agencies try to respond to citizen demands for openness, honesty, fairness, and so on.demands for openness, honesty, fairness, and so on.

III.III. The federal The federal bureaucracy today (cont.)bureaucracy today (cont.) I.I. Agency alliesAgency allies

1.1. Agencies often seek alliances with congressional committees Agencies often seek alliances with congressional committees and interest groups.and interest groups. a)a) Iron triangle: a tight, mutually advantageous allianceIron triangle: a tight, mutually advantageous alliance b)b) Can be politically powerful (for example, Small Can be politically powerful (for example, Small

Business Administration)Business Administration) 2.2. Far less common today; politics has become too complicatedFar less common today; politics has become too complicated

a)a) More interest groups, more congressional More interest groups, more congressional subcommittees, more competing forcessubcommittees, more competing forces

b)b) Courts have also granted more accessCourts have also granted more access 3.3. Issue networks: groups that regularly debate government Issue networks: groups that regularly debate government

policy on certain issuespolicy on certain issues a)a) Contentious—split along partisan, ideological, Contentious—split along partisan, ideological,

economic lineseconomic lines b)b) New presidents often recruit from networks.New presidents often recruit from networks.

IV.IV.Congressional Congressional oversightoversight

A.A. Forms of congressional supervisionForms of congressional supervision 1.1. Congress creates agencies; statutory design can influence agency behavior.Congress creates agencies; statutory design can influence agency behavior. 2.2. Congress authorizes funds for programs.Congress authorizes funds for programs. 3.3. Congressional appropriations provide funds for agencies to spend on their Congressional appropriations provide funds for agencies to spend on their

programs.programs. B.B. The Appropriations Committee and legislative committeesThe Appropriations Committee and legislative committees

1.1. Appropriations Committee may be the most powerful of all the congressional Appropriations Committee may be the most powerful of all the congressional committees.committees.

a)a) Most expenditure recommendations are approved by HouseMost expenditure recommendations are approved by House b)b) Tends to recommend an amount lower than the agency requestedTends to recommend an amount lower than the agency requested c)c) Has power to influence an agency’s policies by “marking up” an Has power to influence an agency’s policies by “marking up” an

agency’s budgetagency’s budget d)d) But becoming less powerful: But becoming less powerful:

(i)(i) Trust funds operate outside the regular government budget and are not Trust funds operate outside the regular government budget and are not controlled by the appropriations committees.controlled by the appropriations committees.

(ii)(ii) Annual authorizations allow the legislative committees greater oversight.Annual authorizations allow the legislative committees greater oversight. (iii)(iii) Budget deficits have necessitated cuts.Budget deficits have necessitated cuts.

2.2. Informal congressional controls over agenciesInformal congressional controls over agencies a)a) Individual members of Congress can seek privileges for constituents.Individual members of Congress can seek privileges for constituents. b)b) Congressional committees may seek committee clearance, which is Congressional committees may seek committee clearance, which is

the right to pass on certain agency decisions.the right to pass on certain agency decisions.

IV.IV.Congressional Congressional oversight (cont.)oversight (cont.) C.C. The legislative vetoThe legislative veto

1.1. Definition: a requirement that an executive Definition: a requirement that an executive decision must lie before Congress for a specified period decision must lie before Congress for a specified period before it takes effectbefore it takes effect

2.2. Declared unconstitutional by Supreme Court in Declared unconstitutional by Supreme Court in ChadhaChadha (1983) (1983)

3.3. Debate about the legislative veto continuesDebate about the legislative veto continues D.D. Congressional investigationsCongressional investigations

1.1. Power inferred from the congressional power to Power inferred from the congressional power to legislatelegislate

2.2. Means for checking agency discretion and also Means for checking agency discretion and also for authorizing agency actions independent of for authorizing agency actions independent of presidential preferencespresidential preferences

V.V. Bureaucratic Bureaucratic “pathologies”“pathologies”

A.A. Five major complaints about the bureaucracy:Five major complaints about the bureaucracy: 1.1. Red tape—complex and sometimes conflicting rules (see the “Politically Red tape—complex and sometimes conflicting rules (see the “Politically

Speaking” box “Red Tape”)Speaking” box “Red Tape”) 2.2. Conflict—agencies work at cross purposesConflict—agencies work at cross purposes 3.3. Duplication—two or more agencies seem to do the same thingDuplication—two or more agencies seem to do the same thing 4.4. Imperialism—tendency of agencies to grow, irrespective of programs’ Imperialism—tendency of agencies to grow, irrespective of programs’

benefits and costsbenefits and costs 5.5. Waste—spending more than is necessary to buy some product or serviceWaste—spending more than is necessary to buy some product or service

B.B. Each complaint has logical origins in the constitutional order and Each complaint has logical origins in the constitutional order and policy-making process.policy-making process.

C.C. Also, some exaggerations and unusual circumstances generate Also, some exaggerations and unusual circumstances generate difficulties.difficulties.

Wide majorities have somewhat favorable impressions of diverse federal Wide majorities have somewhat favorable impressions of diverse federal government agencies.government agencies. 1. For decades, surveys have found that despite complaints about “the 1. For decades, surveys have found that despite complaints about “the

bureaucracy,” most Americans have judged each federal agency to be fair and bureaucracy,” most Americans have judged each federal agency to be fair and useful.useful.

2. Explains why government agencies are rarely reduced in size or budget. Any 2. Explains why government agencies are rarely reduced in size or budget. Any given agency, even the much criticized FEMA in the wake of its failed response to given agency, even the much criticized FEMA in the wake of its failed response to Hurricanes Katrina and Rita, still has many supporters.Hurricanes Katrina and Rita, still has many supporters.

VI.VI.Reforming the Reforming the BureaucracyBureaucracy A.A. Numerous attempts to make the bureaucracy work Numerous attempts to make the bureaucracy work

better for less moneybetter for less money 1.1. Eleven reform attempts in the 1900sEleven reform attempts in the 1900s 2.2. Prior reforms stressed increasing centralized control on Prior reforms stressed increasing centralized control on

behalf of efficiency, accountability, and consistency.behalf of efficiency, accountability, and consistency. 3.3. National Performance Review (NPR) in 1993 designed to National Performance Review (NPR) in 1993 designed to

reinvent government, calling for a new kind of organizational reinvent government, calling for a new kind of organizational cultureculture a)a) Less centralized managementLess centralized management b)b) More employee initiativesMore employee initiatives c)c) Fewer detailed rules, more customer satisfactionFewer detailed rules, more customer satisfaction

4. President George W. Bush built on to the Government 4. President George W. Bush built on to the Government Performance Results Act using the Performance Assessment Performance Results Act using the Performance Assessment Activity Tool (PART), whose goal was to link management reform Activity Tool (PART), whose goal was to link management reform to the budget process.to the budget process.

VI.VI.Reforming the Reforming the Bureaucracy (cont.)Bureaucracy (cont.)

B.B. Bureaucratic reform is always difficult to Bureaucratic reform is always difficult to accomplish.accomplish. 1.1. Most rules and red tape are due to struggles Most rules and red tape are due to struggles

between president and Congress or to agencies’ efforts between president and Congress or to agencies’ efforts to avoid alienating influential voters.to avoid alienating influential voters.

2.2. Periods of divided government worsen matters, Periods of divided government worsen matters, especially in implementing policy.especially in implementing policy. a)a) Presidents of one party seek to increase Presidents of one party seek to increase

political control (executive micromanagement).political control (executive micromanagement). b)b) Congresses of another party respond by Congresses of another party respond by

increasing investigations and rules (legislative increasing investigations and rules (legislative micromanagement).micromanagement).