^1 HoUinger Corp. pH8.5 JK 643 .C10n 1912 Copy 2 REPRINT OF REPORTS OF THE tOMMISSiON ON ECONOMY AND EFFICIENCY REGARDING OUTLINES OF ORGANIZATION OF THE GOVERNfflENT t WASHINGTON 1912 Note. The full report of the commission, including the Outline of Organization of the Government in detail, was published as House Document No. 458 (62d Cong., 2d sess., 2 vols.). The outline itself, for obvious reasons, is not included in the present reprint. 2 iY80 1519 ^. 'S REPORT, •T> November 27, 1911. The President: The Commission on Economy and Efficiency has the honor to sub- mit the following report on the organization of the Government of the United States as it existed July Ij 1911. This report has been prepared with two definite objects in view, (1) to secure and present the information that is essential for any detailed critical study of the manner in which the Government is organized, and (2) to furnish this information in such a way that it can be kept constantly revised to date, with little or no expense, and thus be at all times available to officers of the Government for use in the current administration of public affairs. INTRODUCTION. At the outset of its work the commission was impressed with the fact that the Congress, the President, and the administrative officers were attempting to discharge the duties with which they are in- trusted without sufficient knowledge regarding the instrumentali- ties through which these duties are to be performed. While it is true that officers of bureaus, divisions, etc., have information regard- ing the organization of their services, it is only in exceptional cases that such information has been compiled in a form to be readily available to others. Each service consequently has had to conduct its affairs without adequate knowledge regarding conditions elsewhere, and the higher administrative officers have been without the informa- tion so imperative to the exercise of real administrative control and direction. Desirable as it may be that special efforts should be put forth from time to time to better governmental conditions, improvement and reform that is really worth while and lasting can be secured only by the adoption and current use of devices that enable administrators, from day to day, to pass judgment upon the effectiveness of the machinery and methods by which they are managing the affairs in- trusted to them. In the same way that the commission is recommend- ing, through other reports, that the accounting S3^stem of the Gov- ernment be modified so that the information developed by the record- ing of financial transactions will be currently available for use by those in authority, it is also recommending, through the present re- port, the adoption of a plan b}^ which any officer of the Government will be able to know, at any time, exactly the manner in which the service in which he is interested is organized. With this informa- tion constantly at hand, each administrator will be in a position 4 ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. similar to that of the commander in chief of an army in the field. He will know each organization unit, whether it consists of a clerical service, a laboratory, workshop, a library, a w^arehouse, a station in the field, or other agency. He will be able to relate such unit to all other units, whether in his own or other services. He can determine where any piece of work can be done most effectively; whether the work of any particular unit is of sufficient importance to warrant the trouble and expense of its maintenance; the extent to which one unit can make use of the services of another, and thus avoid separate action with corresponding cost; and, generally, he can take all the steps necessary to avoid duplication of plant, or of personnel or work, or prevent overlapping or conflict of jurisdiction, and to secure effec- tive cooperation between all branches of his own and other services of the Government. It might appear that the points just stated are so obvious that their consideration at length is unnecessary. As a matter of fact, however, the commission found that this important phase of its un- dertaking was not at first fully appreciated by the departments and establishments when they furnished the information. They did not clearly see that the effort was being made to prepare a compilation that could be kept revised to date and currently used by them as a valuable aid or tool of administration. The commission therefore has felt that the value of this feature of its work should be emphasized. That the commission was justified in undertaking this work is apparent from the fact that nowhere else at the present time is the infomiation furnished by this report available. Important as it is to an intelligent consideration of the problems of administration, no attempt has been made heretofore to set forth in detail the manner in which the Government of the United States is organized for the execution of its multifarious duties. Descriptions have been written of the organization of the Government, so far as the distribution of constitutional powers among the three coordinate divisions — the legislative, the executive, and the judicial — and the assignment of duties to the executive departments and establishments are con- cerned. At no time, however, has the effort been made to carry this description far enough to exhibit in an adequate manner the organization of the several departments, establishments, bureaus, and services for the jjerformance of their work. As a result, administrative officials have been called upon to dis- charge their duties without that full knowledge of the machinery under their direction which it is imperative they should have in order to exercise effective administrative direction and control. They have not had full information as tO' the existing agencies, such as stations, laboratories, shops, divisions, etc., in their own services, much less what agencies existed in other services that might be used instead of creating similar agencies in their own services. Frequently Congress has been compelled to legislate without the complete data it should have if the most advantageous action is to be had. Finally, the people have been without that information necessary to accurate judgment regarding the manner in which their representatives, legislative and executive, are discharging their duties. It is to the lac-k of this information that must be attributed in part the present condition of affairs, where stations, shops, and ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. 5 other units are being maintained which perform no useful function, or none of sufficient importance to warrant the expense of their operation; where the most effective use is not being made of such services as should be maintained ; where cooperation and consequent economy between services is a matter of chance or personal effort on the part of individuals, and where different services, performing the same or closely allied functions, are being operated independently of each other, thus duplicating in an uneconomical and inefficient manner the work of each other. This could not be otherwise when the several services have no adequate means of laiowing what is being done by other services or what plant and equipment they possess. Under such circum- stances each is compelled to rely upon itself to build up its own or- ganization and to provide itself with its own facilities regardless of what may be in existence elsewhere. Not until adequate means are provided through which this information may be secured, and, once secured, may be kept constantly revised to date and made easily avail- able, is it possible to treat the Government of the United States as one great whole in which, so far as practicable, unnecessary motion is avoided, duplication of plant is eliminated, and parts are integrated into one harmonious and efficient administrative mechanism. It is to render possible the achievement of this end, or at least to lay the basis for such achievement, that the preparation of this report has been undertaken. In addition to performing this service the preparation of this re- port has given to the commission information that it was essential it should have in prosecuting its inquiries regarding governmental con- ditions. The present report thus constitutes the basis for the critical and constructive reports the commission has prepared or has in preparation regarding the organization of the Government as a whole and the organization and activities of individual services and particular problems of organization. PLAN OF REPORT. Although the idea of presenting a report on the organization of the Government is a simple one, the putting of this idea into execution involves the taking of a number of steps, each of which is necessary, if the compilation is to serve the full measure of its possible useful- ness. These steps consist of the preparation of the following • 1. Outlines of organization. 2. Charts of organization, 3. Maps of organization. 4. Classification of organization units by character. 5. Classification of organization units by geographical location„ 6. Organization index. 7. Geographical index. 8. Descriptive notes. OUTLINES OF ORGANIZATTON. The first is the outlines of organization. It is not only the most important, but is the basis for all the others. The purpose of these outlines is to exhibit the machinery of the entire Government — legis- lative, executive, and judicial — in such a way as to indicate not only 6 ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. every working unit into which the Government is organized for the performance of its functions, but also the relations of such units to each other as regards direct lines of administrative authority. By a unit of organization is meant not merely such a formal organ- ization as a bureau, a division, or a section, but all further subdivi- sions which comprise reasonably distinct groups of employees re- quired for the performance of special duties; all plant or operation units, such as quarters specially devoted to the performance of par- ticular kinds of work, vessels, warehouses, etc. Thus the plan con- templates, as one of its essential features, the indication of everything in the nature of a shop, laboratory, photographic gallery, blue-print room, depot, etc., and every point in the field at which a station is maintained or work is done by or under the direction of the Govern- ment. The effort is also made to show, in its proper place, each col- lateral agency of administration, such as a board, commission, or committee with reasonably permanent status, since these bodies con- stitute a part of the machinery through which the affairs of Govern- ment are being conducted. Every effort has been made to carry the outlines of organization down to these final units, for it is only by showing these final work- ing units that a real picture is obtained of the manner in which the Government is actually organized for the performance of its work. And it is only as information of this character is secured that it be- comes possible to determine the extent to which a number of units of the same character are in existence, or that several units perform the same function, and thus to ascertain whether duplication or over- lapping exists within the services of the same bureau or department, or within the Government as a whole. For many reasons this outline of organization should be carried to its logical conclusion^ viz, that of showing the individual employees constituting the working force of each final unit of organization, properly classified and indicating for each his or her service title, compensation, and duties. Owing to the great difficulties that are involved, no attempt has been made to push the present outline that far, except in the case of the District of Columbia. In the case of the latter the effort was made in order to show by a practical example the character of outline of organization that would result and the valu- able information that is thereby afforded. It has not been practi- cable up to the present time to do the same work for the other services. As is elsewhere pointed out, the work of securing the data for the outlines in their present detail has been one of great magnitude. One of the principal difficulties encountered has been that of making clear to the hundreds of services and persons collaborating in supplying the data exactly what was wanted. Services having no clearly de- fined scheme of organization, upon being called upon to report the manner in which they are organized, have shown a strong tendency to work out an organization on paper which would show a logical assignment of duties to divisions, although in fact no such divisions were in existence, or, if in existence, were not grouped in the manner shown. With the best of intentions, and with a clear idea of what was desired, it was still a difficult matter, in many cases, to determine what was a unit of organization. These difficulties would be multi- plied many fold if the attempt were made to treat the individual as ECONOMY AND EFFICIENCY IN THE GOVERNMENT SEEVICE. 7 the final unit, since so many cases exist where the same individual performs duties in more than one organization unit. These difficulties are by no means insuperable, as is demonstrated in the case of the District of Columbia. They can and should be overcome, and an outline of organization worked out that will show the place of each employee in the Government. It is evident, how- ever, that this can not be done until a definite decision is reached regarding the organization units, under which tlie individuals should be shown. Both as a matter of practical expediency^ and because otherwise the publication of the present outlines and report would be greatly delayed, it has not been deemed advisable, therefore, at the present time to push this work that far except the single case that has been mentioned. There is, however, no reason why the several services should not take up their outlines as here presented and carry them to this desirable conclusion, and it is the recommendation of the commission that this be done in all cases. Loose-leaf system. — Attention has been called to the fact that the main purpose of this compilation is to furnish information that can be currently used by administrators, in the same way as they cur- rently use data developed by a proper accounting and reporting sys- tem, as one of their tools of administration. If the outlines are to serve this purjoose, it is imperative they should be prepared in such a way that they can be kept constantly revised to date. This end is secured by adopting the device of the loose leaf in presenting the data. Instead of attempting to set out the outline of the Government of the United States as one continuous statement the principle is adopted of giving on one sheet only the main subdivisions of the organization unit to which the sheet refers, and of presenting the detailed outlines of organization of these subdivisions on supporting sheets. If a change in organization takes place, all that needs to be done is the rewriting of the particular sheet or sheets affected and the substitution of the new sheet or sheets for the old. The economy that can be realized is but a small part of the ad- vantages resulting from the use of this loose-leaf system. In the first place, it brings out, in a way that a continuous statement fails to do, the coordinate units of organization. Thus, for example, if one desires to determine what are the primary units — that is, the bureaus and services — covered by the Department of Commerce and Labor, it would be necessary for him, in case the outline of organiza- tion of that department is shown as a continuous statement, to run over a large number of pages in order to pick out those bureaus and. services that are of coordinate rank as indicated by the indentation and identification code numbers. The same operation would have to be followed by hun if he desired to determine the primary units into which one of the bureaus is divided. Under the loose-leaf sys- tem these coordinate units appear one below the other on the same sheet, the subdivisions of each being carried on supporting sheets which are referred to by page numbers. This system, if rigidly adhered to, would require a separate sheet in each case where a subdivision of a unit is set up. This would require hundreds, if not thousands, of sheets in order to show the organization of a single department. It is not necessary, however, to carry this loose-leaf system to such an extreme. In many cases the 8 ECONOMY A^^D EFFICIEISrCY IN" THE GOVEENMENT SERVICE. organization in detail of a unit of organization can be given as a continuous statement, since the number of subordinate units shown is not so great as to prevent the eye from readily detecting the co- ordinate subdivisions. In preparing this report, the commission has consequently exercised its discretion in determining to what extent details should be carried on supporting sheets. The individual de- partments and services are not bound, however, by the decision of the commission in this respect. In maintaining their own outlines they should depart from the decision of the commission in so far as in their opinion seems wise. Another advantage of the loose-leaf system is that it makes it possible for the several services to take up the outline where it now leaves off and secure further details of organization, these additional details being entered upon supporting sheets inserted in their proper places. Finally, the use of loose leaves makes it possible, if it is de- sired to do so, to split up the outlines into parts and give to each service only those sheets which affect its organization. Scheme of classification of organization units. — The general scheme of classification that has been adopted is clearly shown by the outlines. There are a few features, however, upon which it is desirable specially to comment. The first feature is that the primary aim of the outlines is to show organization rather than functions. It might seem that little trouble would be encountered in doing this. Practically, however, many difficulties have been encountered in carrying out this aim. Strange as it may seem, many services or important branches of services have no well recognized scheme of organization units that extends below the primary units into which they are divided. Such services would report " classes of work " or functions as their organization units. This tendency Avas one generalh' encountered throughout the work, and the commission has had to use care in unraveling the complica- tions thus presented and in arriving at statements that represented actual organization conditions. Notwithstanding the efforts made it is certain that a satisfactory solution has not been arrived at in all cases. In one important respect, however, the matter of functions does find a place, or at least expression, in this scheme of organization. As organization is shown by successive subdivisions, there is a steady progress, from units representing divisions of service more or less arbitrarily established in order that supervision over certain work to be done may be vested in the hands of certain officials, to units representing particular duties to be performed, until the point is reached where organization units correspond very closely with func- tional units. This is quite generally true of final units, which fre- quently represent little more than an enumeration of the classes of work or classes of employees included in the next more comx^rehen- sive unit. In other words, the fact must be recognized that, as or- ganization is carried to a finer and finer degree, the units become, from a strictly organization standpoint, less and less definite, and m.ore and more descriptive of functions. A second feature is the principle upon which these organization units are classified. This principle is that of indicating the organi- zation units so as to show their relationship to each other as deter- mined by direct lines of administrative authority. By applying this ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. 9 principle the place of each unit in the entire scheme is shown in re- lation to the successive units through which the lines of authority extend both up and down, and the extent to which units are coordi- nate is brought out. T^yo consequences of following this principle should be noted. The first is that the fact that two units are coordinate in rank by no means indicates that they are of even approximately equal importance either as to size or as to character of work. For example, a unit having but a single employee, as a library, may appear side by side with large divisions, such as those of disbursement or supplies having a large personnel. The second is that the outlines can not show relationships between units except as determined by the main line of administrative au- thority. Thus, for example, the unit " chief clerk " or " division of appointments " will have direct functional relations with probably all_ the units of a service. The outlines, however, will indicate such unit only as it falls under some more comprehensive unit and show under it the working units for the performance of its work. The facts in regard to its functional activities or duties in respect to other units can be brought out only by the charts, as will be pointed out hereafter, or by means of the descriptive notes which should accom- pany and explain the outlines. Groujnng of organization units. — There are many cases where a number of units have to do with matters so closely related to each other that it is desirable to show them under some group designation even though there is actually no unit of organization corresponding to such designation. The most important example of this is found in the case of the divisions or sections of a department, bureau, or other service having to do with matters of general administration. For example, the Department of Commerce and Labor has as its primary units of organization not only such functional bureaus as the Bureau of Corporations, Bureau of Standards, Coast and Geodetic Survey, etc., but also certain business divisions, such as the Office of the Chief Clerk, Division of Appointments, Division of Publications, and Disbursing Clerk. The duties of these divisions relate to the work of the department as a whole instead of to work in a particular field. It was thought that a useful purpose would be served by mak- ing clear this distinction between units having duties in relation to the department as a whole and those having certain duties in relation to their own fields. This is done b}^ grouping the former with the office proper of the Secretary and Assistant Secretary (both of whom also have duties in respect to the whole department) under the gen- eral desii>'nation of " General administration." Of course it is possible to do this only so far as it can be done without doing violence to organization conditions as they actually exist. If one of the func- tional bureaus is given charge of the performance of certain duties, such as publication work or the handling of supplies, for not only itself but the other bureaus, a division handling such matters would have to be shown under that bureau in which it is actually located. Only in exceptional cases, however, is this condition of affairs found to exist. An interesting example of the adoption of this system of grouping related services, which has found expression in formal administrative 40699°— 12 2 10 ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. regulations, is to be seen in the Navy Department. There the large number of bureaus going to make up the general administration of the department, as distinct from the management of the fleet, naval stations, and ships under construction in private yards, are, with the exception of the offices of the Secretary, Assistant Secretary, Chief Clerk, and General Board, grouped in four classes known as Division of Operations of the Fleet, Division of Personnel, Division of Ma- terial, and Division of Inspection. These are mere group designa- tions since there are no organization units, properly speaking, cor- responding to them. Classification of commiss-ions, hoards, and Government establish- ments. — Still another matter requiring a few words of explanation has to do with the decision reached by the commission in respect to the assignment of commissions, boards, and independent Government establishments, to their proper places in the scheme of outline of or- ganization. This is a matter that gave the commission a great deal of trouble, and it is not certain that in every case a decision has been reached that will be approved by all. The cases giving rise to the greatest difficulty were those of determining whether certain com- missions should be shown as subordinate units of Congress, or sub- ordinate units of the executive, or a particular department, and of determining whether certain services usually classed as " other Gov- ernment establishments" should be indicated under that head or under "legislative." Reference is had to the Government Printing Office, the Library of Congress, and the National Botanic Garden. It was finally decided that they should be shown as subordinate units of the legislative branch, since the line of administrative control and supervision seems to run directly from them to Congress. Problems of nomenclature. — Finally some reference should be made to the difficulties encountered growing out of the absolute lack of system that exists in respect to the naming of organization units. Such designations as " divisions," " sections," " offices/' " branches," and the like seem to be used almost interchangeably. In some cases subdivisions of a division are known as sections, while in other cases the section is the more comprehensive and the division the subordinate unit. In many cases units have not been given any well-recognized designation, and names for them have been provided for the first time for the purposes of this outline. The particular designation employed for a unit can not thus be relied upon as indicating either its status or importance. In handling this matter the commission has, with few exceptions, followed the scheme of nomenclature used by the different services in their reports to the commission. The most important instances in which the commission has used its discretion in respect to this matter are the dropping of the words " office of " and giving simply the name of the officer in charge, as, for example, " chief clerk " instead of " office of chief clerk," and in adopting a standard title for the immediate office of the head of a service. The designation employed is " Office proper of the Secretary" (or other officer as the case may be). This designation is intended to cover only the employees, such as private secretary, doorkeeper, and messenger, working directly for the officer designated. It logically constitutes the first unit under the designation " General administration." ECONOMY AND EFFICIENCY IN THE GOVEENMENT SERVICE. 11 In other cases it alone comprehends all that would come under such designation. The same confusion exists in respect to the titles that are employed to designate heads of administrative services. Among the titles most commonly employed to designate chief administrative officers are : " Chief of bureau," " commissioner," " director," " super- intendent," though special titles, such as " Forester," are by no means uncommon. The titles used in the outlines are those reported to the commission. In one important respect the com_mission has not at- tempted to be consistent: Although the outlines as a rule indicate units by office designations, in many cases use for this purpose is made of the title of an officer. To have done otherwise would have meant the coining of a name for the office or the prefixing of the words " office of." It was not thought that any gain in clearness would result from doing this. CHARTS or ORGANIZATION. The second step indicated as a desirable one to be taken in order to present full information regarding the organization of the Govern- ment is that of the preparation of charts of organization. The func- tion of the charts is to serve as an illustration of the outlines in order that the significant features of the outline may be more readily seen. It is not essential, indeed in many cases it is hardly desirable, that the charts should picture all the details shoAvn in the outlines; but, as far as they go, they should correspond rigidly to the outlines. As recommended in the case of the outlines, the charts should be constructed upon the loose-leaf system, main subdivisions being shown on one sheet and supporting details on accompanjnng sheets. In one important particidar the charts can be made to convey infor- mation that can not be shown by the outlines. By use of dotted lines interrelations between units of organization other than the relation of direct administrative authority can be indicated on the charts. In many cases this aids materially in making known the character of the organization as a piece of working mechanism. MAPS OF ORGANIZATION. The third feature of a complete plan to describe organization is the preparation of maps that will indicate all points at which any given service or department, or of the Government as a whole, is maintaining any station or other unit of organization, or is exercising any function. These maps can be made to serve one of the most use- ful purposes of the whole compilation. There is a tendency on the part of persons connected with the Government at Washington to look upon the work at Washington as constituting the real Govern- ment of the United States, In point of fact, a characteristic feature of the National Government is that it administers a service, the real working units of which are in great part scattered throughout the United States and, indeed, to a certain extent, throughout the world. The services at Washington, in the main, constitute merely the central office for the performance of the necessary clerical and other work required in exercising proper supervision and administrative control over the work being performed in the field. It is this fact which 12 ECONOMY AND EFFICIENCY IN THE GOVERNMENT SERVICE. makes the problem of administration of the National Government essentially different from and more difficult than the problem of ad- ministration of the government of municipalities. It is in the main- taining of stations and in the performing of work in the field that the great bulk of expenditures for the conduct of the National Gov- ernment is incurred. If there are unnecessary services or units of organization ; if effective use is not made of such units as should be maintained ; if there is duplication of services or plants ; and if waste or inefficiency exists through a failure to correlate the operations of different units or centralize the performance of particular kinds of work, it is probable these defects will be found in the field services rather than in the offices of general administration at Washington, which are under the immediate direction and control of the managing officers. For this reason it is imperative that any plan to set forth the organization of the Government should include as one of its essen- tial features means for making known the exact situation of affairs as to units of organization maintained in the field. The outlines of organization will indicate all such units. In order that their relations to each other may be readily seen, and the extent to which they are located at the most advantageous points can be considered, it is necessary that this location should be shown by maps. The use of maps, moreover, presents the advantage tliat field stations of different services can be shown in relation to each other, something which can not possibly be done by the outlines. Thus, in addition to preparing maps showing the field stations for each service individually, consolidated maps can be made for two or more related services, or for all services under the same department, or for all services of the Government. In these consolidated maps the differ- ent services can be distinguished from each other by the use of differ- ent symbols, such as circles, crosses, and stars, to indicate the stations of the different services. In the same way stations of a different character belonging to the same service can be distinguished. Use of maps in studying field sei'vices. — With this graphic descrip- tion of field conditions before him, it is evident that the head of a service or department is in a position to make a critical examination of the extent to which his service or services are organized in the most effective manner for the performance of their work in the field. The maps may_ show that one department is maintaining a number of stations pertaining to the different bureaus or services under its jurisdiction at the same points. The questions whether this cluiDlica- tion of stations is necessary and whether the stations maintained by one service can not be utilized by other services will naturally arise. There are many cases where it is necessary for a service to have a representative at a given point, though the amount of work to be done there may be such as to require but a small amount of simple Avork. In one case at least, the customs service, the practice is now followed of having field officers perform duties for other services. That other cases exist where the same economy can be realized can scarcely be questioned. Inquiry may also reveal the fact that the stations of different services maintained in the same city are located in several buildings in different parts of the city, and that economy and increasecl effi- ciency may be realized by having these stations' housed in the same building or at least in buildings located near each other. ECONOMY AND EFFICIENCY IN THE GOVERNMENT SERVICE. 13 In like manner, the information furnished by the maps regarding the location of field stations will lay the basis for a careful considera- tion of the problem of the most effective and economical administra- tion of the work of field inspection. At the present time inclepend- €nt inspection work is being done by the several services. It may happen that a number of inspectors, representing different bureaus in the same department, may leave Washington at the same time for the purpose of inspecting stations in the same city. It is very likely that the fuller knowledge regarding field conditions, such as will be furnished by the maps, will permit of the working out of means by which closer cooperation between services in respect to inspec- tion work can be secured, and the present enormous expense for travel may be materially reduced. The foregoing is by no means intended to exhaust the subject of the ways in which use may be made of the information regarding field stations that is furnished by the outlines and maps. Many other w^ays, such, for example, as their use in studying the problem of the purchase and distribution of stores, and of equipping and repairing vessels, will suggest themselves. Indeed there is not a problem of administration having to do with work in the field that can not be better handled with this information available for ready reference. CLASSIFICATION OP ORGANIZATION UNITS BY CHARACTER. The fourth feature mentioned, that of the classification of organ- ization units by character, has two purposes, that of giving to the administrator information regarding the organization units under his direction in the form needed for current use, and that of taking the first step in the analysis of the information furnished by the out- lines looking to a critical study of organization conditions with a view to determining what improvements, if any, can be made. Thus, for example, the outlines of organization of the Navy Department will show for each naval station the subordinate units, such as torpedo station, wireless telegraph station, hospital, dry dock, etc. The administrator, however, will want to know, not only the organ- ization of each naval station, but how many units of each kind he has and where they are located. To furnish him this information in readily available form, it is thus necessary to prepare lists of torpedo stations, dry docks, etc. The same is true of practically all classes of organization units. It also is evident that a classification of organization units by character reveals facts regarding organization that immediately sug- gest questions meriting careful investigation. For instance, such a classification will bring out for each service, for each department, and for the Government as a whole, just how many units of a given character, such as libraries, chemical laboratories, carpenter shops, etc., exist at Washington and the services to which they are attached. Absolutely essential as this information would seem to be for any intelligent consideration of the problem of administration, it has, up to the present time, never been available. Each service has known what units it had but was not informed, as a rule, regarding those possessed by other services. There thus existed a condition of affairs where the head of a department has not known hoAV many or wdiat carpenter shops, blue-print rooms, photostat rooms, etc., were in his 14 ECONOMY AND EFFICIElSrCY IN THE GOVEENMENT SERVICE. department at Washington. He may thus permit units to be created or to continue in existence in ignorance of the fact that there are already in existence similar units fully able to handle all work to be done. With lists of organization units classified, as recommended in this report, such a condition of affairs should no longer exist. What is of immediate importance, however, is the fact that a study of these lists will immediately raise questions concerning the extent to which exist- ing units represent unnecessary duplications of plant, of personnel, or of work. They make it possible to investigate the extent to which economy and increased efficiency can be obtained by centralizing to a greater extent work of a given character, by placing the facilities of one service at the disposition of other services, and by specializing in resj)ect to equipment and work to be done in the several units, etc. Indeed, the information thus furnished renders possible and prepares the way for an intelligent consideration of the problems of the over- lapping of functions, the duplication of plant and work, and mainte- nance of unnecessary equipment that constitute important features in respect to which the present organization of the Government is said to be defective. CLASSIFICATION OF ORGANIZATION UNITS BY GEOGRAPHICAL LOCATION. The desirability of, and the advantages to be gained by, a classifica- tion of organization units b}^ geographical location has already been considered in the discussion of the purposes served by the prepara- tion of maps. This classification and the maps constitute supporting documents. On the maps themselves it is not feasible to do more than indicate by symbols where stations or other units of organiza- tion are located. The classification of organization units by geo- graphical location will show for each city, town, or other point just what stations are being maintained there, and the services and de- partments to which they belong. By arranging the cities and towns alphabetically the information regarding any given city or town can be instantlj^ had. INDEXES. The purposes to be served by the two indexes proposed are evident^ While these indexes may not be necessary to the administrator who is familiar with his service, it is apparent that they will be of great value to persons outside the services. DESCRIPTIVE NOTES. The last of the elements of a comj^lete report designed to furnish full information regarding organization is that of descriptive notes. This is a feature which can be of little or of great importance, ac- cording as it may be decided to rest content with the information furnished by the other features, or to use the latter as a basis for securing full descriptive and critical data regarding not only organ- ization, but character of plant, equipment, duties performed, and methods of work followed throughout the organization. It will thus be possible for the head of any service, bureau, or department desir- ing to make a thorough study of conditions in his service, to call for a detailed report regarding each unit set up in the outline of organ- ECONOMY AND EFFICIENCY IN THE GOVEKNMENT SERVICE. 15 ization that will give him all the facts needed to determine whether the separate existence of such unit is necessary, whether such unit is performing the work that it should, and is doing it in the proper way; and what are its needs as regards plant and equipment, person- nel, etc. If such descriptive notes are prepared and separate sheets are used for presenting the information obtained regarding the several units, these notes will constitute all the descriptive matter regarding units of organization that is needed to show the organiza- tion as a working machine. These notes, moreover, can give informa- tion regarding relations between units and regarding special condi- tions that it is impracticable to bring out either on the outlines or on the charts or maps. Especially should the effort be made, through these notes, to de- velop all possible information regarding the necessity for each sta- tion or post being maintained in the field. It is proi3ably true that improvement can be made in almost all of the field services of the Government. Investigation can not fail to reveal cases where sta- tions may with advantage be either discontinued, consolidated with other stations, or relocated at more convenient points. In some cases they have been established to meet a real need that existed at the time of their creation, which need, however, may have since passed away on account of changes having taken place in the service, the opening up of new means of communication, the development of new centers of population and industry, etc. In other cases stations have been established without adequate inquiry having been made regarding their necessity, or were established in response to solicitations or representations made to the services by local authorities or other persons. Careful study of the conditions in respect to each station will bring to light not only cases of this character but others where certain classes of work are being performed which can better be per- formed at other stations or at Washington. If any service decides to secure such descriptive information re- garding the various units composing it, the character of the data that will be desired will, of course, vary according to the character of the unit and service involved. The following draft of a schedule of in- quiry, for use in securing information regarding stations being main- tained in the field, is, however, suggested as indicating, at least, the general character that might be given to such an inquiry : SUGGESTED SCHEDULE OF INQUIRY REGARDING FIELD STATIONS. 1. Name of station. 2. Location. 3. Organization symbol or identification number. 4. Whether established by law, executive, or administrative order. 5. If established by law, reference to statute. 6. If established by formal executive or administrative order, reference to such order, and, if possible, copy of order. 7. General description of work of the station and detailed list of duties per- formed. 8. Description of quarters, plant, and equipment. 9. State whether quarters and plant are owned by Government or rented. 10. If owned, give estimated value of: (1) ground; (2) structures; and (3) equipment. 11. If rented, give annual rental paid and general terms of leases. 12. Total expenditures by or on account of station during fiscal year ending June 30, 1911, itemized in accordance with approved: forms of stating expendi- tures showing the distinction between expenses, capital outlays, etc. 16 ECONOMY AND EFFICIENCY IN THE GOVERNMENT SERVICE, 13. List of all persons employed, classified according to subordinate units of or- ganization, classes of work and such other subdivisions as will indicate in detail the organization and character of the working force. The following information should be given for each employee : (1) Name. (2) Official or service title. (3) By what officer appointed. (4) Manner of selection (by civil service examination, on recommenda- tion of what officer, etc.). (5) Term of office or contract of employment (by the year, month, day, temporary, etc. ) . (6) Rate of compensation. (7) General nature of duties. 14. Recommendation of head of the station regarding what action, in his opin- ion, should be taken that will lead to increased efficiency and economy m the maintenance and operation of the station. 15. Comments and recommendations of the head of the service and other su- perior administrative officers. ODTLJNES OF ORGANIZATION AS A BASIS FOR ESTIMATES OF APPROPRIA- TIONS, CONTROLLING ACCOUNTS, AND OTHER ADMINISTRATIVE OPERA- TIONS. In the foregoing there have been indicated many ways in which the outlines of organization with the supporting charts, maps, classifica- tions, etc., can be of great value, both in the da3^-to-day work of administering public affairs, and in furnishing the basis for critical studies of existing conditions with a view to effecting improvements. There remain certain other ways, however, which have not been men- tioned, or which have been touched upon only incidentally, in which these outlines can be employed with advantage. Probably the most important of these is that they can be made the basis for the preparation of estimates of expenditures, the mak- ing of appropriations, and the allotment of appropriations, the estab- lishment of accounts, and the operation of cost-keeping records, where it is desired to maintain records of that character. Thus the head of an administrative service in determining what money will, in his opinion, be required to run his service for the ensuing year, can call for definite statements regarding the financial requirements of each organization unit shown in the outline of organization of his service. These when compiled will furnish supporting details for the total sum requested by him for his service. Not only will he thus be in a position where he can determine more accurately what are his financial needs in comparison with current and past expenditures, but Congress, in passing upon such estimates, will be able readily to de- termine the items going to make up the total requested. In most cases it will not be desirable, and Congress will not wish, to appropriate money with the same itemization as is shown by the estimates. When this is not done, the administrative head can take UJ3 the appropriations as fixed by Congress and allot them to the organization units in accordance with the estimates submitted by him for their support. Following this will come the system of accounts which will furnish a record of expenditures according to such appro- l^riation and allotment heads. There will thus be furnished the basis for a complete and logical system of detail and controlling account for all subordinate units. This does not mean that separate accounts will have to be kept for each minor unit of organization, since these in many cases represent merely working divisions, sections, or classes of employees. It will only be necessary for the accounts to distin- guish organization units as far as any useful purpose is served. d ECONOMY AND EPFICIEISrCY IN THE GOVEKNMENT SERVICE. 17 Finall}^, the outlines of organization can be made the basis for a scheme of administrative reports, for a general filing system, or any other class of administrative work where it is desired to have data or documents systematically compiled or classified. The use of the symbols representing organization units upon requisitions, purchase orders, vouchers, and other expenditure documents has already been fully discussed in the circular of the commission relative to account- ing and reporting. CONCLUSION. In conclusion the commission desires again to emphasize the fact that much of the value of the present report will be lost unless the outlines of organization are adopted as the basis for a system that will furnish a record of the manner in which the Government is organized, in such a way that the information will be available at all times, not only to the services themselves, but to all persons interested in the conduct of Government affairs. To attain this end three things are necessary. In the first place, each department, bureau, and service should at once take its part of the outline and so extend it as to show the number of employees, according to their service titles and rate of compensation, falling under each organization unit. It should do what the commission has done in that part of the outline pertaining to the District of Columbia. Here, as has been pointed out, the commission has carried the outline to its logical conclusion by indi- cating the number, title, and compensation of all employees working under each organization unit. The following copy of the sheet of the outline pertaining to the home for the aged poor shows the character of the information that will thus be rendered available regarding each administrative subdivision, and each institution, con- stituting a part of the government of the District of Columbia. Num- ber. Salary. Refer- ence page. 1. Board of Commissioners. 2. Commissioner. 20. Home for the Aqed and Infirm. 1. Superintendent 2. Medical department 1. Physician , 2. Nurse , 3. Housekeeping 1. Matron 2. Cook 3. Baker 4. Male attendants 6. Cook 6. Female attendants 7. Seamstress 8. Cook 9. Servants 4. Garden, farm-, and stables 1. Farmer 2. Farm hands 3. Dairyman 4. Hostler and driver 5. Care of building 1. Engineer 2. Engineer 3. Engineer 4. Engineers 6. Miscellaneous 1. Clerk 2. Blacksmith and wrood worker., 3. Laundryman 4. Tailor $1,200 480 360 600 600 540 360 300 300 240 180 144 540 360 360 240 900 720 480 300 900 540 540 300 18 ECONOMY AND EFFICIENCY IN THE GOVERNMENT SERVICE. It is hardly necessary to point out how vahiable, indeed how indis- pensable, is information in this form, not only to the person m im- mediate charge, but particularlv to superior administrative officials and to Congress, if adequate consideration is to be given to the prob- lems presented in the administration of the service, m the framing of estimates, in the making of appropriations, and in the enactment of legislation for the conduct of the several divisions and institutions which go to make up the organization of any general service. In the second place, the policy must be adopted of keeping the out- lines constantly revised to date. It was with a view to this that the outlines have been prepared on the loose-leaf plan. As changes take place in personnel or organization, it is a matter of but a few minutes work to prepare the new sheets to show the changed conditions. These sheets can be made in duplicate, triplicate, or in still greater number, so that copies may be forwarded to the central office of the bureau and department affected and thus enable these offices to keep their records constantly representing actual conditions. The old sheets that are supplanted can be retained, if it is deemed desirable, for record purposes, and on them can be entered the date of the change and such other notations as may be thought of value as indi- cating the reasons for, or conditions under which, the changes were made. It is not necessary in all cases that changes should be reported daily as they occur to the central offices of the bureau and depart- ment. In many cases every purpose will be served if the sheets show- ing changes are forwarded to such offices once a month. Finally, the system should provide that there be maintained in the Executive Office of the President, in the office of the Civil Service Commission, and in such other offices as it may be deemed desirable to designate, a complete set of the outline of organization for the en- tire Government, and to such offices should be forwarded monthly a copy of each sheet which has been changed during the preceding month. The result of this provision will be that each subdivision oi the Government will have at all times a sheet or sheets showing its organization and assignment to duty of the personnel; each bureau and each department a record showing the organization and per- sonnel of all divisions and institutions over which it exercises juris- diction ; and the Office of the President and other designated central offices a complete record of the organization of the Government as a whole. Information will thus be available at all times regarding the organization of any particular service or of a subdivision of a service or of the Government as a whole, and as to the number of persons, with their service titles and compensation, that are employed in any such service or division. Respectfully submitted. F. A. Cleveland, Chahvnan, W. F. AViLLOUGHBY, W. W. Warwick, F. J. GOODNOW, H. S. Chase, M. O. Chance, C OTnmissioners. Secretary, USE OF OUTLINE OF ORGANIZATION OF THE GOVERNMENT. March 20, 1912. The President : On November 27, 1911, the commission submitted a report on the organization of the Government as it existed July 1, 1911. This report was transmitted to Congress with the President's message of January 17, 1912, and was published with the message in House Document No. 458. The organization of the Government is shown in great detail in the report by means of an outline. This outline was constructed on the loose-leaf principle so as to permit of its being currently revised as changes in organization take place. In submitting the outline the commission, in its report, stated: This report has been prepared with two definite objects in view — (1) to secure and present the information that is essential for any detailed critical study of the manner in which the Government is organized, and (2) to furnish this information in such a way that it can be kept constantly revised to date with little or no expens'e and thus be at all times available to officers of the Government for use in the current administration of affairs. Following this the commission pointed out in some detail the various ways in which a current record of organization conditions of this character could be made to serve a valuable purpose in the practical administration of public affairs. It concluded its report with the following paragraphs: In conclusion, the commission desires again to emphasize the fact that much of the value of the present report will be lost unless the outlines of organiza- tion are adopted as the basis for a system that will furnish a record of the manner in which the Government is organized, in such a way that the informa- tion will be available at all times, not only to the services themselves but to all persons interested in the conduct of Government affairs. To attain this end three things are necessary. In the first place, each department, bureau, and service should at once take its part of the outline and so extend it as to show the number of employees, according to their service titles and rate of compensation, falling under each organization unit. It should do what the commission has done in that part of the outline pertaining to the District of Columbia. Here, as has been pointed out, the commission has carried the outline to its logical conclusion by indicat- ing the number, title, and compensation of all employees working under each organization unit. The following copy of the sheet of the outline pertaining to the Home for the Aged and Infirm shows the character of the information that will thus be rendered available regarding each administrative subdivision and each institution constituting a part of the government of the District of Columbia. 1. Board of Commissioners. 2. Commissioner. 20. Home tor the Aged and Infirm 1. Superintendent 2. Medical department— 1. Physician 2. Nurse 3. Housekeeping — 1. Matron 2. Cook 3. Baker 4. Male attendants 5. Cook 6. Female attendants SI, 200 480 360 600 600 540 300 300 300 Reference page. 19 20 EEPOETS OP THE COMMISSION ON ECONOMY AND EFFICIENCY. I. Board of Commissioners— Continued. 2. Commissioner— Continued. 20. Home for the Aged and /n/irm— Continued. 3. Housekeeping— Continued. 7. Seamstress 8. Cook 9. Servants 4. Garden, farm, and stables — 1. Farmer 2. Farm liands 3. Dairyman 4. Hostler and driver 6. Care of building — 1 . Engineer 2. Engineer 3. Engineer 4. Engineers 6. Miscellaneous — 1. Clerk 2. Blacksmith and woodworker 3. Laundrjrman 4. Tailor It is hardly necessary to point out how valuable, indeed how indispensable, is information in this form, not only to the person in immediate charge, but particularly to superior administrative officials and to Congress, if adequate consideration is to be given to the problems presented in the administration of the service, in the framing of estimates, in the making of appropriations, and in the enactment of legislation for the conduct of the several divisions and institu- tions which go to make up the organization of any general service. In the second place, the policy must be adopted of keeping the outlines con- stantly revised to date. It was with a view to this that the outlines have been prepared on the loose-leaf plan. As changes take place in personnel or organi- zation it is a matter of but a few minutes' work to prepare the new sheets to show the changed conditions. These sheets can be made in duplicate, tripli- cate, or in still greater number, so that copies may be forv/arded to the central office of the bureau and department affected and thus enable these offices to keep their records constantly representing actual conditions. The old sheets that are supplanted can be retained, if it is deemed desirable, for record pur- poses, and on them can be entered the date of the change and such other nota- tions as may be thought of value as indicating the reasons for, or conditions under which, the changes were made. It is not necessary in all cases that changes should be reported daily as they occur to the central offices of the bu- reau and department. In many cases every purpose will be ser\'ed if the sheets showing changes are forwarded to such offices once a month. Finally, the system should provide that there be maintained in the Executive Office of the President, in the office of the Civil Service Commission, and in such other offices as it may be deemed desirable to designate, a complete set of the outline of organization for the entire Government, and to such offices should be forwarded monthly a copy of each sheet which has been changed during the preceding month. The result of this provision will be that each subdivision of the Government will have at all times a sheet or sheets showing its organization and assignment to duty of the personnel, each bureau and each department a record showing the organization and personnel of all divisions and institutions over which it exercises jurisdiction, and the office of the President and other designated central offices a complete record of the organization of the Govern- ment as a whole. Information will thus be available at all times regarding the organization of any particular service, or of a subdivision of a service, or of the Government as a whole, and as to the number of persons, with their service titles and compensation, that are employed in any such service or division. In order that these ends may be obtained it is necessary that specific action should be taken looking to the inauguration and operation of the system therein proposed. To this end the commission recom- mends : 1. That the scheme of presentation of information concerning the manner in which the Government is organized, employed in the re- port of the commission on the organization of the Government as it REPOKTS OF THE COMMISSIOIT ON ECONOMY AND EFFICIENCY. 21 existed July 1, 1911, be adopted as the means for maintaining a cur- rent record of the Government organization. 2. That each department, establishment, bureau, service, and branch of the Government revise and extend its outline of organization, as given in the report of the commission, so as to show under each or- ganization unit the number of persons therein employed, classified according to their service title and compensation, in the same man- ner as has been done in the report of the commission in the case of the government of the District of Columbia. This revision should show conditions as they exist April 1, 1912. 3. That a copy of this revised and extended outline be transmitted to the Commission on Economy and Efficiency as rapidly as prepared, and that it be the duty of said commission to render all aid in its power in securing the inauguration of this system of maintaining a complete record of organization conditions. 4. That each subordinate unit, such as a division, field station, etc., keep the outline of its organization and personnel currently revised to date, so far as it is practicable to do so. 5. That immediately after July 1 and January 1 of each year each subordinate unit of organization transmit to the head of the superior unit of organization of which it is a part one or more copies of all sheets that have been revised during the preceding six months to the end that such superior organization unit, by substitut- ing such revised sheets for the old sheets, may have revised at least semiannually its record of the organization of the subordinate units over which it exercises jurisdiction. In accordance with the fore- going a complete revision of the outlines of organization of the Government will be had at least twice a year. Each department, establishment, bureau, etc., can provide for a revision of its outline monthly or at even more frequent intervals, if it is found desirable. 6. That not later than August 1 of each year each executive depart- ment, establishment, board, commission, or other branch of the execu- tive service, transmit to the Civil Service Commission two complete sets of the sheets showing its organization as it existed on July 1 preceding. 7. That the Civil Service Commission cause to be assembled in proper order, according to the scheme of classification of the Govern- ment employed in the report of the commission, the sheets so received and transmit one copy of such compilation to the President, retain- ing the other copy for its own files. 8. That in maintaining this record of organization and personne) use be made of sheets of white writing paper 8 by 10^ inches, weigh- ing approximately 4 pounds per ream of 500 sheets of that size. The sheets to be sent to the Civil Service Commission and to the Commis- sion on Economy and Efficiency should not have holes for binding punched in them. Respectfully submitted. F. A. Cleveland, Chairman. W. F. WiLLOUGIIBY. W. W. Warwick. Frank J. Goodnow. M. O. Chance, Secretary. COPY OF LETTER SENT TO HEADS OF DEPARTMENTS AND INDE- PENDENT ESTABLISHMENTS OF THE GOVERNMENT. My Dear Mr. Secretary: I am transmitting herewith (a) a copy of House Document No. 458, Sixty-second Congress, second session, containing my message to Congress of January 17, 1912, and the re- port of the Commission on Economy and Efficiency on the organization of the Government as it existed July 1, 1911; and (b) a supple- mental report by the commission, recommending that certain steps be taken for the purpose of providing that the outline of organiza- tion of the Government prepared by it be made the basis of a system by which full and detailed information will at all times be available regarding the manner in which the Government is organized for conducting its work. These recommendations have my full approval, and it is my desire that the departments and establishments immediately enter upon the work of carrying them into execution. It is probable that some difficulties will be encountered in putting this comprehensive plan into effect. It is of the utmost importance that the work be done along uniform lines by all the departments and establishments. This can be secured only by joint action. To this end will you please designate a representative of your depart- ment who, with similar representatives of other departments and establishments, will confer with the Commission on Economy and Efficiency in respect to the prosecution of the work. I have asked the commission to render all aid in its power in carrying out this undertaking. Sincerely, yours, Wm. H. Taft. The White House, March 28^ 1912. 23 LIBRftRY OF CONGRESS 012 053 291 1 A