College | Political Science |
| SPS | What's
Fesler, James and Donald Kettl,
of the Administrative Process. 3/e, 2007
Note: the case studies
are new to 3e, with revisions to the chapters. Notes are from 3e,
2007, unless otherwise noted.
Revised 30 Apr. 2009 by Dr.
Introduction | Case 1: Speed Limits
What Government Does | Case 2: Flu Vaccine
03: Foundations of
Organization Theory | Case
3: National security coordination
04: Strategies and
Tactics for Administrative Reform | Case
4: FEMA Disaster Relief
Executive Branch | Case 5—9/11 Commission’s
call for a National Intelligence Director
06: Organization Problems | Case
6: Schwarzenegger's Performance Review
The Civil Service, 2e, 2005 | Case
7, Privatization of Virginia City’s trash collection
08: Managing Human Capital | Case
8: GAO, OPM and OMB's combined strategy on Human Capital
09: Decision Making | Case 9: Federal
Budgeting, 2e, 2005 | Case
10: PA's SEPTA system and politics of Budgeting NEW
11: Implementation | Case 11: Taser
Gun use by FL police
Regulation and the Courts | Case 12, Regulation:
Eliot Spitzer sues the EPA
13: Legislative Control of Administration
| Case 13: Legislative Oversight & Vioxx
| Case 14: Government Ethics
Chapter 1 Introduction to Fesler
Notes by Charles Walters, spring ‘07
1. What is an administrative
state?—A state where the government’s role has become pervasive and
encompassing of policy administration and implementation in many facets
of society (a multiplicity of administrative agencies, a larger number
of civil servants, and higher government spending=the expansion of government).
The bottom line for government (though many
claim there is not bottom line) is administrative responsibility
2. How does the US compare
to other OECD countries in size of government?—24/27 where we encompass
a little over 1/3 of our domestic GDP. Our government actually shrunk between
84 and 04 because of more reliance on citizens and private companies.
set of citizens who are viewed as inefficient, negative, impolite, and
unhelpful to citizens in need of services, or, too-efficient users/abusers
of power who decide matters without due process of law. Yet the Red Cross/Catholic
Church are still bureaucracies.
3. How large are US bureaus
compared to the private corporations in the Fortune 500?—Each of the
government’s four largest departments (Health and Human Services/SS Administration/Defense/and
the Treasury) spend more than the world’s biggest company—Wal-Mart (2004)
of course the government has about 300 million customers.
How can we define ``public''
and ``administration''?—according to Fesler, it is nigh impossible
to come up with a common definition—to have a standard definition appears
to be confining. However the crucial differences in distinguishing public
from private (or the mingling thereof) is: public sets out to do the public’s
business—administer law; character differences—public organizations have
different fundamental processes from private organizations (and work in
a different environment)
5. What is the distinction
between policy formation and execution?—Policy execution deals with
administration translating the print of statute books (law) into changed
behavior by members of society. Policy formation deals with providing lawmakers
being with information about issues, and therefore aiding in formation
of the policy. It also deals with administrators interpreting laws that
are already on the books, and making sense of sometimes difficult wording.
6. In what sense should
administration be responsible in a democracy? – the administrators
serve the government and must be sensitive to the legitimate roles of other
elements of government. They have a loyalty to the agencies and programs
entrusted to them. They are loyal to their professions’ standards and motivated
to win regard. All these build administrative responsibility.
7. How universal is public
administration?—Public administration is timeless but time-bound, universal
but cultural bound and varies from situation to situation, it is also complex
but intelligible by a simplified model or step by step combinations of
Alexis de Tocqueville—amazed
by Americans’ prejudices to the art of government and said that the art
of administration is a science that must be studied and improved by discoveries
and observations of successive generations
Woodrow Wilson: See Stillman
This case explores how useful our bureaucracy
is in implementation of policy.
In this case it is expressed how speed limits
are determined less by what the posted limit is than by how police officers
choose to enforce them.
Case 1: Speed Limits (From the
Front Lines of the Administrative State)
By Charles U Walters, Spring ‘07
Everyone knows the official maximum limit has
little meaning in reality.
The real speed limit is the speed at which the
driver can drive the fastest without getting pulled over or issued a citation.
If police officers stopped everyone going over
the speed limit then they would be so busy pulling over traffic that they
might not catch the super-speeders and drunk drivers.
Police officers use discretion to decide where
to effectively concentrate their energy: how to save the most lives, or
how to improve traffic flow, or how to increase governmental cash flow.
The case explains how we can raise the limit
to the 85th percentile (85 % drive lower than a certain speed and 15% drive
faster) which would allow police to focus more on the fewer and more dangerous
Or we can lower it to the 50th percentile which
will only cause more violations but not reduce accidents (according to
The FHA also found that most drivers regularly
exceed the speed limit—we know this.
Policymakers also focus on: Environment (lower
speed uses less gasoline), people’s preferences (chafing at high speeds
in many western states).
Al Zachos, 2005
people fear the arrival of the “administrative state.” Some fear the bureaucratization
of our lives.
other people argue for “businesslike” public administration and doubt that
public and private administration are, or should be, different in character.
main issue of public administration: the administrative responsibility
within the American Constitutional system.
An “Administrative State”
demand of government has increased, and that increase has led to a variety
of administrative agencies, a large number of civil servants, and swelling
idea of an “administrative state” describes the bigness of the governmental
bureaucracy in the current era. It also describes the huge amount
of discretion held by administrators.
The Bureaucracy Problem
comes from 14th century France., Balzac describes it as “a gigantic power
manipulated by dwarfs.”
has two modern meanings, that are contradictory
Bureaucracy refers to a set of civil servants that are inefficient, negative,
bored, impolite, and unhelpful to citizens
On the other hand it speaks of a body of all-too efficient excercisors,
arbitrarily abusing their discretion and power.
third definition is offered, a bit more to the favorable side, referring
to the formal, rational organization of relations among persons vested
with administrative authority, and the staffing of full time, qualified,
Bureaucracy and Size
our era, public administration is mostly large-scale administration.
The federal government’s total outlays are a third of the total sales of
the 500 largest selling companies.
complexity and variety of the administrative programs is another factor.
It is a possibility that a set of programs or agencies may have distinct,
identical, or overlapping groups of customers, and may have contradictory
scale and complexity of programs is greater even than private companies.
first define administration and then public. Scholars first define
administration as the cooperative human action that has a high degree of
public administration is almost always developed in the executive branch
to truly understand, one must compare public and private organizations.
versus Private Administration
most fundamental distinction between public and private organizations is
the rule of law. Public organizations exist to administer the law.
Private firms can generally take any action, or use any means of operation
that is not specifically prohibited.
Six main differences
Time perspective- Private sector organizations tend to be led by individuals
who devote their careers to organizations . . .public workers tend to be
headed by amateurs whose tenure is short
Measuring performance- The private sector has the market to test its performance,
on the other hand, most public organizations have no direct way of evaluating
Competing Standards- Efficiency is the ultimate private standard; however,
public administrators are expected to manage both efficiently and equitably.
Public scrutiny- Public administrators work under public scrutiny, whereas
private organizations receive very little public scrutiny.
Persuasion- In the private sector, managers manage very much by authority.
In the public sector administration depends far more on persuasion.
Oversight- Public administrators must also answer not only to their superiors,
but to legislators and the courts. Private organizations do not have
to worry about this
we separate public from private activities by the profit motive.
sum, public organizations are public because they administer the law and
because their very existence comes from the law. Public workers operate
in much a different environment from private workers. Finally, it
is the challenge of public service that distinguishes public from private
Fesler, Chap. 1 continued: Policy
Execution versus Policy Formation
By Felix Parker, PSC 306, 2005.
Execution means that lawmakers have enacted a law forbidding, directing,
or permitting members of the society to behave in specific ways. The task
of the public is to translate the print of statue books into changed behavior
by individual members of the society, to convert words into action.
is what translates these paper declarations of intent into reality altering
the behavior of citizens towards conformity with the statutory mandates
and delivering promised benefits.
Before the constitutionally empowered legislature and chief executive have
made their policy decisions. And many of the most important amendments
come from these “agencies”. An agency in a given program field is likely
to process much factual information about needs and trends in that particular
field, to have an expert staff for the analysis of such data, to have discovered
the defects that existed when tested by experience of trying to apply them
and to have a strong devoted to the programs objective and so to the fuller
A second stage of the policy formation process occurs after statues are
on the books often, and particularly in important and complex fields, the
statues are not clear enough for us to regard what happens afterwards as
execution in the narrow sense. At times the legislative process itself
is so stormy and full of crosscurrents that the statue passed incorporates
a number of contradictory policy guidelines, and the agency has to use
its own judgment in making sense out of the mishmash.
essence, then public administration includes the shaping of policy on the
way up, execution of policy after it has been made, and as a necessary
part of the execution –decision making about policy matters on the way
The Policy/ Administration Dichotomy
need to identify a distinctive field of study and probably more, from the
efforts to reform city governments in the late nineteenth and early twentieth
century, but to conceive of the permanent staff as in distinguish able
from politicians in motivation and behavior is to mold two sets of people
with very different roles in society.
of the large congressional staff closely monitor administrative actions
in agencies of interest to their superiors. The office of Management and
Budget acting for the president or under congressional instruction reviews
proposed regulations and information gathering proposals in addition to
reviewing budgetary requests and setting personal ceiling.
The Study of Public Administration
way to break down the “Study” of public administration is to claim that
administration and policy are separate spheres. Nicholas Henry id’s 1900
to 1926 as the period when the politics/ administration dichotomy. 1927
to 1937 when students affirmed the existence of clear principles of public
administration, 1938 to 1950 marked rejection of the politics/administration
dichotomy and loss of confidence in principles, along with reactions leading
to the next period. 1950 to 1970 years of reorientation to public
administration as political science; and overlapping and contradicting
that, a 1956 -1970 emphasis on management, often borrowing from business
management, together with the post 1970 reversion to a self –aware orientation
often lodged in distinct schools of public administration hospitable to
management methods but also sensitive to the public interest commitment
of administrators of governmental affairs.
Complexity and Simplicity
is both a top –down system of authority, conformity, and compliance. Also
a down –top system for the top of innovative ideas, proposed solutions
to problems claim on resources, and reports of the trouble sign in program
can be likened to a physical system such as a machine or it can be likened
to the system of a biological organism such as an animal or a living plant.
organization theorist do not agree on a single model, on any correct study
of Public Administration.
Fesler 2: What Government Does
By Charles Walters, spring ‘07
1. What are the functions of government?
We expect the government to keep the environment
clean, provide the elderly with adequate health care, research cures for
diseases, ensure national defense, prevent/manage disasters. Postal service,
social security, education, police/fire protection—many, many functions
that vary by level.
2. How are functions divided up in the US
3. What TOOLS does US government use to deliver
The division of functions in the government have
been described traditionally as a layered cake, then as a marbled cake
but, Fesler states, it is neither or any type of cake but rather different
levels of government concentrate on different kinds of services (almost
like a fence where the posts are the levels of government and the wire
is the interconnected parts—mine not Fesler).
Federal level: The largest programs at the federal
level are entitlement programs (Social Security, Medicare, etc). Defense,
federal grants to highway spending, foreign aid, federal prisons, AIDS
research (etc). Only 13.8% of budget goes to personnel in the Federal government,
State: Focus more on Welfare, higher education,
and highways. They play a large role in banking. Receive federal grants
and administer them. 30% of spending goes to local governments. They levy
taxes to support state programs but most of fiscal energy goes to federal
program management and local government aid. State spending patterns have
remained relatively constant
Local: Singularly devoted to providing goods
and services. Education accounted for 37% of spending in 2001 for local
governments. Fire and police services/ building roads, health programs/
hospitals/ welfare/ utilities/ etc, these are provided by the various styles
of local governments. They focus on direct delivery of services.
two types of tools that government uses to deliver
programs: Direct tools and Indirect tools. Direct tools include
police/fire protection, income support (Social Security). Direct tools
account for approximately only 28% of the government however (according
to Lester M. Salamon).
Indirect tools however, include the following
which take up 72% of spending:
Grants – occur between levels of government
to encourage other governments to do what they could not afford or choose
to do. (Education, medical support, transportation)
Contracts – paying nongovernmental organizations
on a quid pro quo basis ($ for goods/services). This contracting out of
the government has seen an increase due to the growing complexity of government.
Regulations – very important for quality
and safety, also to ensure accuracy in grocery scales—it takes very little
administrators to promulgate extensive rules
Tax expenditures – AKA tax loopholes and
tax breaks, these do cut back in the amount of money the government takes
in but they also give incentives to promote certain social and economic
Loan programs – the largest lender in
the country is the government. The lending is quite decentralized such
as loans for college students and home mortgages are administered by local
banks under the supervision of state and federal agencies.
Government by Proxy – using third parties
to produce services that are provided by the government, i.e. privatized
Case 2—Flu Vaccine Shortage
From the Front Lines of What Government Does
Charles U Walters Spring ‘07
Should government take over the vaccination program?
Flu Annual kills 36,000 people in the US.
What programs should the government be in charge
Shortages of the vaccine caused trouble, the
government restrictions were said to make the businesses unprofitable and
many of them went on to other adventures.
In 2004, Bill Wolfson raced to Camden, NJ to
get to a flu-shot from the Runnemede Senior Center. Had suffered seven
heart attacks and had three sisters to care for. He needed to make sure
he was healthy enough to get to the casinos during the winter. He figured
this made him a “high-risk” candidate for the vaccine.
There was a shortage of flu vaccine because:
An American company, Chiron had discovered that 4 ½ million doses
manufactured in Liverpool were contaminated with bacteria.
They then took the entire 46 million doses off
the market due to the fear of how far the bacteria had spread.
There was only one other company the US looked
to for vaccination—Aventis Pasteur.
In past years Americans over 55 could have gotten
the government to pay for the vaccinations.
John Kerry and G. W. Bush had debated on the
issue on the vaccines but they neither focused on the problem—the poor
condition of the nation’s public health system.
How had the nation become dependent on two companies
for its entire flu vaccine?
Fesler 3: Foundations of Organizational
Amanda Spiegel, 3e, Spring 2007
There are two general theories of public administration,
consisting of structural theory and systems theory.
I. Structural Theory
The structural theory focuses on the hierarchical
organization of an administration illustrated through Gulick’s classical
model and Weber’s bureaucratic model.
A problem with the structuring of governmental
power exists with establishing and maintaining legitimacy. Developing the
structure of public administration is based on legitimate power with principals
and agents, narrow defined specialization, internal specialized structure,
rules of the game, staff of experts, and outside definition of roles and
The classical model of organization (by Gulick)
focuses on efficiency and objective principles within organization through
clear jurisdiction of authority.
The bureaucratic model of organization (by
Weber) focuses on the legitimacy of the system of authority. Has the “pure”
models of authority with: traditional, charismatic, and rational-legal.
II. Systems Theory
The systems theory of organization generalizes
about all organizations. (Public, private, large, small, etc). They are
divided as closed systems or open systems. Closed systems focus on the
internal workings of an organization, while open systems focus on a system
and the interaction with the environment. The systems theory views an organization
as receiving resources to produce outputs, utilizing the feedback loop
III. Challenges to Both Structural and
The following challenges and approaches exist
among organizational theory: humanist, pluralist, third party, and formal.
The humanist view limits human creativity and states an approach that should
be responsive to the individual. The pluralist view is that the models
ignore the political system and its effects. The third-party view says
that government agencies rely on other levels of government and other organizations
to administer functions, and formal view relies on relationships among
the bureaucratic model.
These models of bureaucracy allow us to realize
the functions of bureaucracy. Challenges to this, such as the increase
in third party administration, the importance of societal and political
environment, as well as the effectiveness when focusing on the individual
allow us to view the adaptations of organizational theory.
Case 3: National Security Coordination
Amanda Spiegel, Spring 2007
Prior to 9/11, government intelligence agencies
lacked coordination of intelligence information due to “bureaucratic barriers”.
A general agreement of need of coordination
would protect the United States. The conflicts among agencies were overpowering
the main issue at hand--- national security.
The 9/11 Commission said that the US couldn’t
protect its citizens because of “failures of policy, management, capability,
and failure of imagination.”
The solution? Create a cabinet level director
above all security agencies to improve coordination. But the problem with
this is that each organization or intelligence agency has a distinctive
culture. Examples include the CIA as a circular style of organization vs.
the FBI as a linear organization. The different styles of each lead to
The issue is that post 9/11 there is a need
for intelligence coordination and cooperation for the sake of national
Ch. 4 “Strategies and Tactics for
Charles U Walters, Spring ‘07
Reform in America:
Nearly every politician has promised
devotion to some reform since America’s early days
The most innovative reform has occurred
in the private sector
Reforms tend to “bubble up” from the local
and state governments into the federal government rather than from up to
Confliction Theories: downsizing,
reengineering, and continuous improvement
—often contradicting universal principles
of delegation by expertise and democratic accountability through hierarchical
Downsizing—Taxpayer Bill of
Rights (TABOR), The Grace Commission (Private Sector Survey on Cost Control),
Balanced Budget and Emergency Deficit Control Act (Gramm-Rudman), Osborne
and Gaebler’s Reinventing Government—all examples of downsizing
All the World is a Stage:
Reengineering—starting from scratch
considering the three C’s— customers, competition, and change —redesign
processes using the latest technology searching for break through strategies,
not improvement upon quality—they try to do the job not 10% better but
10 times or 100 times better. (customer service movement, performance management)
Continuous Improvement — more gradual,
continuous bottom-up movement—total quality management—workers themselves
are the experts who improve the work, solve problems, serve customers.
Assessing the Reforms: See chart page
Downsizing seeks lower government expenditures
(forced by citizens) driven by assumption there is abundant waste, wish
to shrink government size through intervention hitting blunt targets—focuses
Reengineering seeks greater organizational
efficiency through radical change urging service to customers and harnessing
competition—focuses on process
Continuous improvement seeks responsiveness,
and is an ongoing process to improve products where workers are the key
using cooperation—focuses on interpersonal relations
Administrative reform is a fixture
of governments everywhere and there is no single set of ideas driving it.
Many nations rely on training and closer/better measurement
many ideas have had contradictory
ideas built into them and these plurality of ideas have been mixed and
matched together with little regard for the contradictions. What is responsible
for negative change and for positive change? The outputs are going to be
different in every system, the models need to lose their contradictions.
It is the politics of administration that matters most in administrative
reform. Many reforms have created more problems (downsizing—imbalances
in the workforce, etc). Therefore, public managers need to be ready to
accommodate conflicting demands. Also theorists need to realize that the
central ideas of public management have come from private managers. And
they also face reconciling the contradictions that political realities
impose upon the “neat” organizational theories.
Case 4: FEMA Disaster Relief
From the Front Lines of Administrative Reform
Charles U Walters Spring ‘07
In 1992 FEMA failed. Emergency water and food
supplies to hurricane victims in Florida were slow to arrive and emergency
shelter was worse.
James Lee Witt came in with the Clinton
administration and totally redid the agency.
The Federal government had promised aid but victims
had to wait in line for hours for help.
But in 2004 after a complete facelift of FEMA,
the results of the effort were completely different.
Before the storm arrived FEMA was on the ground
and had emergency supply trucks positioned.
Also housing inspectors were on the ground only
three days after the hurricane hit.
FEMA under went totally reconstruction after
its failure in ’92 in responding to hurricane relief.
Witt’s keystone—“customer service”—this
reconstruction cut processing aid applications from $59 to $14 and cut
waiting days from 30-45 to 5-10.
He flattened management to 2 levels, also he
formed the entire agency around a mission which focused on ensuring aid
more than providing aid—which worked through cooperation and partnerships
with state/local governments.
His vision even reached into the private sector
(i.e.—builders on the coastlines began installing hurricane tie-downs for
Administration is about people and politics.
Peoples’ personalities/qualities affect public decisions (because of the
give and take world in politics). Rufus Miles Law: “Where you stand
depends on where you sit.”
Chap. 5: EXECUTIVE BRANCH
Charles U Walters Spring ‘07
Components of the Executive Branch:
• Cabinet Departments – 80% of all
federal funding, they range in size from the Department of Defense to the
Department of Education
o The Inner Cabinet – State, Defense,
Treasury, and Justice Department Heads.
• Independent Agencies – includes the
Social Security Administration (accounts for most of spending), FCC, Federal
Reserve Board—these bodies were originally created by Congress to be insulated
from presidential control—they have broad discretionary powers over sectors
of our economy. Regulatory Commissions monitor features of transportation
and communications, banking, etc. There are service-based independent agencies
such as the Peace Corps, also some of these agencies are government corporations
such as the FDIC and the Corporation for Public Broadcasting, and the U.S.
o The Outer Cabinet – Labor, Agriculture,
Commerce, and all the others.
• Bureaus – principal organizations
of government (IRS, FHA, etc). Bureaus are needed to deal with safety,
public health, and transportation.
• Field Offices – creates a functional
system of field administration rather than an areal or prefectoral field
Congress creates all executive branches and
most of the outside agencies. The top executive often finds management
difficult due to: top elected officials rarely have a lively interest in
administration, often they are ineffective due to lack of experience and
short tenure, interdepartmental frictions, and top executives have time
constraints and often disinterest in administrative problems. Therefore
much of the work falls on aides and staff agencies. Franklin D. Roosevelt
agreed with the Brownlow Committee saying that it was humanly impossible
for the president to carry out all his duties. Roosevelt established the
The Office of Management and Budget is
the largest unit of the E.O. OMB duties include: legislative clearance,
review of legislation by Congress, review of agencies proposed regulations,
management review, and executive branch intelligence.
The National Security Council: established
in1947 to advise the president on integration of domestic, foreign and
military policies relating to national security. Over time the NSC has
become the focus of presidential foreign policy making
Office of Policy Development: never
had a strong role due to high turnover of directors. It spends much of
its time meeting day-to-day requests of the president and crises
E-government: Internet has rapidly
transformed government especially in filing taxes, it allows citizens to
be more in contact with government
Case 5—9/11 Commission’s call for
a National Intelligence Director
From the Front Lines of the Executive Branch
by Charles U Walters Spring ‘07
Secretary of Defense, Donald Rumsfield was giving
conflicting signals to members of Congress over proposed legislation to
create a national intelligence director and pull together the separate
branches of the nation’s intelligence.
The proposal was shot down under the assumption
that it was not good timing due to the war.
He openly seemed to be hesitant, but still supporting
of G.W. Bush’s position (in favor of the bill) but behind the scenes it
seems that he worked to kill the bill.
The 9/11 Commission had recommended the reform
and had called for a “unity of effort” in order to get structure better
and have more effective coordination of intelligence.
Rumsfield, Joint Chiefs of Staff, and Pentagon
Senior Officials did not encourage the plan as they had built their own
Neither intelligence group seems to want change
for fear of losing power or funding.
Seeing eye dogs and other programs of the state
were analyzed by the governor’s California Performance Review in order
to cut waste and inefficiency, and hopefully in the long run save money
and bring the bureaucracy to a controllable level
Case 6—Schwarzenegger’s Performance Review
From the Front Lines of Organizational
Charles U Walters Spring ‘07
the governor has done quite a lot of restructuring
on the bureaucracy, more than expected.
The Guide Dogs of the Desert (led by Katryn Webster)
was not wiped out but was moved to a new Department of Education and Workforce
Preparation (similar movements happened for over a hundred boards and agencies).
These agencies all had their own constituency
and they felt if they moved into an executive agency they would be watered
If Schwarzenegger backed down he would lose some
credibility because he had pledged to “blow up boxes” of bureaucracy.
He was not slacking on the job his performance
review offered 1200 recommendations which would produce $32 billion in
The moving of the agencies however, was not going
to save billions, but it would give Schwarzenegger a stronger hand in controlling
the state government apparatus on winning bigger policy battles later.
Fesler 7 “The Civil Service”
of employment values: judgment by merit, equal pay for equal work, due
process in disciplinary actions, and nondiscrimination
by sex or race.
-82% of Public employment is within state and local government, Federal
-Over half of public employees serve education and health and hospitals
-Over 60% of Federal Government serves national defense/international relations
and the postal service.
-Major reductions in spending correlate with eliminating or reducing government
programs, not just cutting back on employees
carrying out the programs.
-Managers include the legislative branch, chief executive, budget agency,
-Office of Personnel Management (OPM) is charged with executing, administering,
enforcing the civil service laws, rules and
-Merit Systems Protection Board and Federal Labor Relations Authority
-1978 Civil Service Reform Act gave strength to federal employees and their
needed to improve the employment structure
-A tension exists between OPM and Agency heads over authority delegation
-1989, National Commission on the Public Service (Volcker Commission) issued
major report arguing for decentralization
of federal departments and agencies
-Response came under Clinton with OPM director James King eliminating the
Personnel Manual, dumping SF-171 Resume form,
and delegating more responsibility to
agency heads for managing the personnel system.
-General Schedule Classification
and Pay System (GSC) - White Collar, 75%+ workers
-Federal Wage System-
Blue Collar, Pentagon, 16% works
main system, uses position description by series of evaluators in creating
-GSC quickly out of date, distorts organization by shifting personnel to
aren’t best suited for, change in composition
of workforce creates weakness
-Reforms- Decentralization or dropping from 15 GS grades to 5
-Recruitment and Appointment- OPM, examinations, the rule of three, delegation
agency, veterans’ preference, affirmative
action (goal of representative bureaucracy
corresponding to the make up of the total
population, labor force, and pool of applicants
-Federal government employs proportionately as many women and more members
minorities than does private industry
-Advancement after entry seems unaffected by race, but women lag behind
-College Education and sometimes Postgraduate school needed for advancement
-Examinations- PACE, 1974, then eliminated 1982, led to agency appointments
-Decentralization with central oversight has proved successful
-The Public service attracts through pay, promotional opportunities, and
work which are affected by the political
stance towards bureaucracy
-Administrative Careers with America (ACWA) examination- designed to achieve
PACE’s scope with non-discriminatory way,
used six OPM occupational-group exams
-Focused on lifelong careers, morale within, ability judged on the job,
-Civil Service Reform Act- due notice, opportunity to improve or responds,
-Alternative: encourage transfer or new employment with good recommendations
-Reductions in Force (RIF) - budget cut, personnel ceiling reduced, programs
terminated or reorganized
-Clinton tried cash incentives to get employees to leave federal employment,
backfired with the fed losing some of its
most qualified employees taking the offer
-Government’s capacity to attract and keep depends on salary and fringe
-Comparability with private sector pay is overridden by president’s clause
for alternative pay-adjustment plans
-Some say private industry will get the best, but others say the government
for the private sector’s leftovers with sectors
such as defense, foreign affairs, and economy
-The Volcker Commission recommended a pay system recognizing location and
costs, competition from the private sector,
and shortages in occupations
-Comparable Worth-Equal pays for jobs of comparable value
-Pay within Grade- Bonus, range of increase, strong incentives to be compassionate
Rights and Obligation
-Open competitive examinations, merit, and comparable pay within and with
sector, nondiscrimination by political party,
race, national origin, religion, sex, age, or physical
and Collective Bargaining
-Private sector model is what is sought by unions in public sector
-Private sector unions can bargain about pay, fringe benefits, promotion,
hours of work,
and working conditions.
-Public Employees do strike, but the government may respond negatively,
Reagan firing 11,000 air traffic controllers
-Congress, state legislatures, and city councils prescribe the classification,
and salary systems; vote appropriations;
and have the last word on general pay increases. They
are the bargainers, not those in executive
-Unions possess voting strength, lobbying skill, and collective bargaining
reinforce one another.
-Unions work for those already in positions not those applying
-Unions support promotion by seniority; this is opposed to minorities and
-Bargaining among the public sector is different from the private sector:
-Strikes on public services, who can represent management in bargaining?,
principle, and the democracy compared to
the bargaining through union management (doesn’t
take account of all affected interests)
-Federal Labor Relations Authority (FLRA) - administers the bargaining
between unions and the government.
-Main issues are work-week definition, temporary assignments, shift hours,
breaks, grievance and other procedures, safety,
employee counseling, technological
-Mandatory drug testing seen as infringing on 4th Amendment rights
-Political participation is limited because of the threat of partisan union
public employee’s rising proportion of the
electorate; unions might capitalize on public sector in
the rewarding of friends and punishing of
-The Hatch Act- 1939, Act to prevent employees of executive branch of Fed
taking part in political management or political
-Hatch Act Revision- 1993, reforms passed which allow most federal employees
take part in political campaigns, run for
office within political parties, and solicit contributions.
There was continued prohibition on running
for elective political office, or perform political acts
on the job or even display partisanship on
-3 court cases covering dismissals, appointments, promotions, and transfers,
outlawing the patronage system at all levels
of government with the exception of high-level
policymaking positions: Elrod v. Burns (1976),
Branti v Finkel (1980), Rutan v Republican
Party of Illinois (1990)
civil service system, the collective bargaining system, and the political
system come from
different premises, embody different values,
and are on a collision course with conflicts
occurring within the different organizations
of the federal government.
Fesler Case 7, “The Privatization of a
Virginia City’s trash collection service”
By: Brady Lamborne, spring 2007
In 1995 the city council told the public works
director to get bids from private companies for collecting trash
in the city’s “Western Branch” the area collected on Mondays. The public
works responded with a “managed competition.”
The city’s solid waste division found a way
to change its waste collection process: instead of using two different
trucks, stuffed by two different crews, to collect overflow garbage and
yard waste, it could use a single truck with a single crew and with
its capacity split between two loads. Had it not been for competition,
officials might not have devised this plan.
The public sector out- competed the
Public industry can be cheaper and cost
– effective than private industry and the public should be able to
bid on services that the private industry bids on.
The problem with government efficiency isn’t
government itself – or the people who work for it. Rather, it is the set
of restrictions that limit their flexibility and the lack of incentives
to improve their productivity.
Create a strong incentive such as the
loss of jobs and city workers can produce remarkable efficiencies.
Level the playing field, and they can even
win out over the private sector and be the best way of operating a service
for the public sector instead of getting somebody else to do it in the
The bidding out of city jobs to private businesses
is not always the best way to go because the public sector can be cheaper
and cost effective in the jobs that are being bid on.
Case 8: Human Capital
Charles U Walters, Spring ‘07
In 2003 The Office of Personnel Management (OPM),
the OMB and the General Accounting Office (GAO) joined forces to advance
a joint strategy for human capital through the federal government.
OPM wanted to pursue for it was the core of the
Their official executive summary involved:
OMB because it was essential to Bush’s management
GAO because Comptroller David Walker felt it
necessary in his strategy to improve the federal government’s performance.
--Each one of these factors in the summary contains
critical factors that the group believed should be met in order to obtain
success. (If I listed them I would have listed the entire case study for
it is short and outlined already as its own autonomous chapter)
Strategic Alignment—agency human capital
aligned with goals/mission/objectives integrated throughout agency’s business
Workforce Planning & Development—up
to date, de-layered, citizen centered, competitive.
Leadership and Knowledge Management—manage
people, ensure leadership, sustain learning environment the drive continuous
Results-Oriented Culture—effectively differentiates
between high and low performance, and links performance to desired results/goals
Talent—closed most mission-critical skills,
knowledge, and competency gaps, deficiencies and made meaningful performance
to closing all.
Accountability—decisions are driven by
data-driven results-oriented planning and accountability.
Federal Reserve Board chairman Alan Greenspan
perhaps one of the most powerful men in the world due to the fact that
he controls the numbers of one of the most powerful institutions in the
world. He received a lot of criticism that he misses the chance to
steer the economy back on tract after its recession in 2001.
Greenspan receives his authority through his
leadership of the Federal Reserve, and the Fed’s power comes from its management
of the nation’s money supply and its influence over the world’s economies.
Greenspan’s decisions have a global.
The Fed is a highly complex organization independent
of the executive, judicial, and legislative branches of government.
Greenspan presides over a board with seven members who work in Washington.
They have unusual political independence partly due to the fact that they
do not face voters and they have the second longest terms in the federal
government,14 yrs, (second to the Comptroller General at the GAO 15 yrs).
There are twelve Federal Reserve Banks around the country, out of these
twelve five rotating presidents join the seven members of the board to
include the Federal Open Market Committee (sets the nation’s monetary policy).
The Fed does not set the interest rates or precisely maneuver the economy,
but it utilizes its power and positions the rates that banks can borrow
from the Federal Reserve and its capability to mold the supply of money
As the federal budget has grown, the Fed has
seemed to be the only organization that can steer the economy back on track.
Ever since the 1930’s, the Federal officials
have tried to foresee the direction of the economy so that they can regulate
the monetary policy. If the economy looked as of were going to slow
down the Fed would make money easy (present a larger supply of money, this
in return reduced the interest rates, made it cheaper to take out loans
and accelerated the economy). If the economy appeared as if were
gaining too much speed, the Fed would make money tighter (harder to access)
as a way of slowing down the sudden increase before prices had a chance
to increase. Critics often reason that the Fed guesses about the
economy were incorrect. They either acted too late or overreacted,
hence making things worst.
Under Greenspan, the Fed had difficulty manipulating
the economy because of the financial markets (analyst in these markets
were trying to outguess the Fed and often did). In the early 1990’s
Greenspan and his colleagues channeled their energy towards a model of
“Rational Expectations”: trying to influence the economy’s behavior not
only by affecting the money supply but also by aiming to shape expectations
about the money supply. They found remarkable leverage over the markets
by sending subtle signals about what they were likely to do.
They would only signal their direction of movement
and executed the plan in small steps. (2001 rate changed 11 times from
6.5 to 1.75). These incremental moves gave the Fed three advantages:
1 it could maintain maneuvering room to adjust it policies along the way,
2 It avoided giving signals to the markets, thus giving the Fed more flexibility,
and 3 It kept the markets wondering what the Fed’s next move would be.
Case 9: Federal Reserve Board
From the Front Lines of Decision Making
Rachel Nixon, Spring 2007
Basic Parts of the budgetary process: Budget making, budget appropriation,
and budget execution.
Budget impacts the economy, and the economy increasingly has a role in
shaping the budget
-The budget can be used to steer the economy to boost employment, cut inflation,
improve the nation's balance of trade abroad, and keep the value of the
-President Reagan: "supply side" economics- government could increase both
its revenues and the economy's growth by cutting taxes, the lower the level
of taxes, the more money companies could invest and consumers could spend.
-The larger the deficit, the more the federal budget must pay in interest.
is a correlation between economic growth and the reduction in expenditures.
-ex. Unemployment and welfare
making depends on economic growth estimates involving unemployment, inflation,
and interest rates as major factors to consider.
federal budget reveals the government's relationship with the rest of the
economy and of political officials' attempts to influence economic performance.
-Congress was the central force in budgeting with the power to coin money,
levy taxes, and appropriate money.
-Rise of Presidential Power came with the passage of the 1921 Budget and
Accounting Act. This gave the president the authority to produce his own
budget, dividing control into: budget preparation and execution in the
executive branch; budget appropriation and post-audit in the legislative
branch; and shared executive-legislative authority over budget control.
-Budgeting: Top-Down- set broad targets for overall spending and revenues,
create ceilings for spending.
-Budgeting: Bottom-Up- Incrementalism, relatively small increases over
the existing base (old budget) that reflect the agency's share of changes
in the budgetary pie.
-Negatives: No clear meaning of base, changes to budget are not always
made in small increments, the real focus of budgetary politics is not changes
in agencies' budgets but changes in their programs' budget.
-Attempts to reform Incrementalism
-Nixon: "management by objectives" (MBO)
-Carter: zero-base budgeting (ZZB)
-"Uncontrollables"- mandatory spending, more than half the budget
Appropriation- congress determines how revenues shall be obtained.
-"rule of anticipated reactions"
monument ploy"- proposed cuts in strongly supported programs
-Appropriations process: Authorizations and appropriations
-Congressional Budget Act of 1974: more time to work on budget, president's
"current services" budget projection.
-3 Part legislative process>
-Setting the totals: Preparation of legislative budget, (CBO) Congressional
-Authorizing programs: subject-area committees
-Appropriating money: recommendation of budget authority to be enacted
-Shrinking Power for Authorizers and Appropriators
-rise of budget committees and intractable budget deficits
-Gramm-Rudman-Holling and its Successors
-"Balanced Budget and Emergency Deficit Control Act of 1985"
-Enforcement provision ruled unconstitutional by Supreme Court in 1986,
and then Congress revised in 1987 to extend deadlines and limit cuts.
-Negatives of plan, led to agencies to: spend the money faster, slow down
spending, don't count spending by moving it off budget, count the same
savings over and over, engage in wishful thinking.
-1990, Budget Enforcement Act- separated mandatory from discretionary spending.
Caps set for each category of discretionary spending: "pay-as-you-go rule"
the Budget Process
-Create a biennial Budget
-Create a capital Budget: the cost of programs should be paid by those
who benefit from them.
-Give the president a line item veto: assumes the deficit problem stems
from congressional spending in excess of the president's requests.
-Enact a balanced-budget constitutional amendment
vs. Substance: All the above proposals are procedural fixes for the budget's
Tactics for Increasing Spending
-Trust funds and Lending through off-budget entities
-Legislative Controls on Execution
-Impoundment: 1974, Impoundment Control Act- Rescind or defer budget authority
goes before Congress
-Money trail, executive can control direction and pace of governmental
activity, reporting and evaluating an agency's performance
-Management control systems built on accounts
-Overall trend towards performance management
-1993, Government Performance and Results Act: decade-long management improvement
effort to develop annual strategic plans, prepare annual performance plans,
and report annually on actual performance
is the arena that most fundamentally shapes public policy decisions because
policy makers provide the resources needed to bring programs to life.
Southeast Pennsylvania Transportation Authority
(SEPTA) motto: We’re getting there
Case: Funding PA’s SEPTA system
By Cole Muzio, Spring 2009
Motto illustrative of glaring fact: They
weren’t there yet and they got a long way to go
Overcrowded buses left commuters waiting
at stops, delays on trolley, rising fares, and poor service resulted in
upset patrons. Philadelphia had one of best mass transit systems, however
budget problems led to increased prices and decreased services.
In November the budget woes developed into
statewide crisis as SEPTA organized riders, managers, and union members
to go to Harrisburg (capital) to lobby for state aid. However, the issue
of SEPTA’s budget was a recurring issue (some felt that SEPTA made this
a strategy to get funding: “SEPTA creates these budgets to create
a crisis”). This time, though, PA Public Transit Association head insisted
this crisis was real and effect to statewide economy would be devastating
if SEPTA collapsed.
SEPTA argues that the problem is with how
they are funded and that they need a predictable flow of revenue from a
dedicated funding stream (a revenue source from which proceeds would flow
automatically to SEPTA). They suggested higher gas tax. Suggestion unpopular
with GOP controlled legislature (Philadelphia, where this aid would be
going, being Democratic anyway thus not giving them electoral incentive
to warrant raising taxes.
Fesler 12: Regulation and the Courts
Charles U Walters, Spring ‘07 (another is
How much regulation is needed, and to
what extent does it prod into our private lives and our private freedoms?
Regulation =core of most government policy
and is used to change behavior of groups and individuals mostly when the
unchecked behavior could harm others. A second objective is to control
how government agencies and their employees go about tasks.
Mother Teresa outfits were unable to build homeless
shelters because of New York codes that required elevators in new multi-story
buildings. So they didn’t build the buildings.
Kinds of Regulations:
Three features after these tasks are essential:
source of regulatory authority (legislation
that gives administrative discretion to agencies),
amount of resources (what Congress and
the president make available), and
regulatory procedure (interplay between
responsibility for regulating private behavior and the rules Congress/Pres./Courts
establish to govern behavior of agencies).
Partial Preemption—federal and state governments
economic regulation—tries to prevent monopolies
and unfair methods of competition (antitrust laws) (capture phenomenon)
social regulation—focuses on quality of life,
protecting environment, safety/quality of consumer products, prohibit discrimination.
Defense of this power of intervention is based on externalities which if
left untended could spillover into other problems
State and Local Regulations:
State and local governments’ regulating come
in two forms, their own autonomous regulation without federal involvement
and administrating the national regulatory programs.
regulatory agencies being vested in by the state
to exercise control and promulgate regulations.
APA- Administrative Procedure Act of 1946
What we do not know can hurt us, we need specialists
in the field but we also don’t need them to upset powerful clientele by
extreme innovation. Cost-benefit analysis and risk assessment is vital.
Courts Regulate the Regulators
Fair procedures are required before taking a
depriving action of a “person” (which oftentimes is a corporation) unless
it is not a procedural provision but a substantive where deprivation of
property or a fair return must in itself be “reasonable” in the eyes of
the court. Congress makes rules based on the APA or by establishing and
agency. These approaches have led to administrative rulemaking and adjudication
(administrative law judges within agencies hear cases)
Presidential Regulation of Regulators
Courts are accessed by: Class action lawsuits
(private suit for $ damages), Private Attorneys General (individuals or
groups filing suit not for $ but to urge a Gov. group to cease some action),
Tort actions-liability of Gov. and officials (civil suit seeking monetary
damages for harm allegedly done to plaintiff by defendant)
Systems: judicial and administrative
systems (courts are passive -wait for cases therefore not making discernable
connections), most other agencies are active where they are constantly
growing, making agendas, realizing connections and linking efforts.
Values: the regulatory administration
revolves around; procedural fairness, substantive correctness of decisions,
and achievement of public policy goals.
Presidents have been working hard for greater
control over government regulation, especially since Regan (The OMB). Agencies
are a part of the executive branch and the president normally feels that
they are accountable to him.
Case 12: Regulation; Eliot Spitzer
and the Clean Air Act
“Regulation of behavior of private individuals
and corporations to protect others from harm is central responsibility
Administrative discretion in regulatory
agencies is large, and discretion often is abused, opportunities for abuse
must be limited by officials
Effective and ineffective regulation is
on public opinion, time, elections and judges
Discretion is only tolerable when not misused
by Charles U Walters Spring ‘07
New York Attorney General Eliot Spitzer planned
to sue the EPA for failing to enforce the nation’s pollution laws.
Activists convinced Congress through encouraging
Earth Day and other environmental campaigns for tougher air pollution regulations.
Believed that the Bush administration was putting
oil, gas, and coal companies above clean air
Several states joined his side.
If states refused to meet the Clean Air Act’s
(1970) standards (strict) then the federal government could freeze highway
funds and the EPA could give it its own plan.
New England argued that their dirty air came
from states further west and they should have the tough penalties placed
Case 12: Regulation; Eliot Spitzer
and the Clean Air Act
Factories fought it for they said it would put
thousands out of work to put new technology such as scrubbers on their
smoke stacks and that it would be disastrous to cut power at once to put
the new equipment on. Congress so devised a compromise where a new factory;
or one under work should put the new scrubbers on since power was going
to be off anyway.
The issue of routine maintenance came up and
the EPA realized it would be impossible to impose such a standard. Bush
broadened the use of routine maintenance and judges of the US Circuit Court
of Appeals held back the passing of expounding “routine maintenance.”
notes by Cole Muzio, Spring 2009
NY AG Eliot Spitzer plans to attack Bush administration
by suing the EPA (Environmental Protection Agency) for failing to enforce
the nation’s air pollution laws
Congress’ compromise: New factories and remodeled
factories must have the best anti-pollution technology
“The Bush administration is attacking the Clean
Air Act… The Bush administration is again putting the financial interests
of the oil, gas, and coal companies above the public’s right to breathe
Allies in MA attorney general Thomas Reilly (MA
joined the suit,) and American Lung Association which though felt that
dirty air threatened many Americans
Eventually joined by CT, ME, MD, NH, NM, NJ,
PA, RI, VT, and WI. Also receives support from legal offices in New York,
Washington D.C., San Francisco, and New Haven
States see EPA standards as unfair because they
say much pollution in their state caused by other states
Stemming from environmental awareness of Clean
Air Act 1970, Earth Day, and other environmental campaigns of the 1960s
Coal producers and power producers argue about
the negative implications if forced to burn clean coal or install “scrubbers”
Chapter 12: Regulation and the Courts
Companies find loophole in exemptions for “routine
maintenance”. EPA says enforcement of any higher standard would be ridiculous
Companies then used this to their advantage and
pressed GW Bush for even further expansion of what classified as “routine
maintenance”. Bush administration responds by increasing what companies
can do before having to install the new anti- pollution equipment
December 2003 3 judge panel of US Circuit Court
of Appeals issued order blocking this from going into effect until case
was heard on appeal (agreeing with the states)
Sierra R. Turner, Spring 2005
regulate the behavior of individuals and organizations. The primary objective
is to change the way that private individuals and corporations behave
when pursuit of their self interest is likely to harm others- consumers,
competitors, suppliers, distributors, workers, and members of future generations.
A secondary, but vitally important, objective is to regulate how government
agencies and their employees go about their administrative tasks, particularly
those that involve regulation of private behavior.
to achieve these two objectives, three features are central:
The regulation of the behavior of private individuals
and corporations to protect others from harm is a central responsibility
The source of regulatory authority, namely, legislation
that vests administrative discretion in agencies and specifies the limits
of such discretion and the conditions governing how it shall be exercised.
The resources that Congress and the president
make available to the agencies for performance of their regulatory responsibilities.
(Keep in mind that these two objectives are
not are often not in harmony.)
The interplay between, on the other hand, responsibility
for regulating private behavior and, on the other hand, the rules that
Congress, the president, and the courts establish for regulating agencies’
and employees’ behavior.
of regulation of private behavior is very wide. At one extreme are speed
limits and stoplights, at the other extremes, restriction of entry into
a business or profession and regulation of prices and wages. Regulation
is as old as wide. The Constitution in 1789 gave Congress the power "to
promote the progress of science and useful arts by securing for limited
times to authors and inventors the exclusive right to their respective
writings and discoveries."
agencies vary in the kinds of regulation they administer. They operate
under both vague and highly specific statutory mandates.
regulation is conventionally defined as composed of economic regulation
and social regulation.
Economic regulation and social regulation are
not two sides of a single coin. In the political world, at least, they
are two distinct coins. Otherwise, it would be hard to explain what happened
in the late 1970s and in the 1980s. Economic deregulation occurred while
social regulation expanded.
The expansion of economic regulation began
in the states; in the federal government it dates from 1887 when the Interstate
Commerce Commission was established to regulate the railroads.
Social regulation, though appearing early
in this century (as with child labor and food and drug regulation), grew
enormously in the 1960s and 1970s. It focuses on the quality of life through
such activities as protection of the environment, protection of workers
health and safety, assurance of the safety and quality of consumer products,
and prohibition of discrimination on grounds of race, color, sex, age,
regulation and social regulation sharply differ in the content of legislative
mandates. At both national and state levels, the economic regulation statutes
have vested broad discretion in regulatory agencies.
regulate the regulatory system in many ways. Often this occurs through
appeals from agency rules and specific decisions. Sometimes it is through
suits filed against agencies to require them to issue rules mandated or
implied in statutes. Sometimes an agency sues a company seeking to punish
noncompliance with a rule or order and to get a court order requiring compliance.
between effective and ineffective regulation shifts from time to time,
largely reflecting public opinion, elections, and appointments and attitudes
of administrators and judges.
seek to control regulatory agencies, insisting that they are part of
the executive branch and as such must be accountable to the president.
Otherwise, goes the argument, their policymaking, via rules and regulations
under broad delegations from Congress, would flout the democratic system
of our government. The argument rests on three concepts: the need for coordination
lest agencies contradict or duplicate one another; the need for consistency
with the president’s policy agenda; and the need for the economy and efficiency,
responsibilities of the president as chief administrator.
The Nixon, Ford, Carter, Bush, and Clinton
administrations all established processes for central review of agencies’
proposed significant regulations and required agencies to prepare analyses
of their impact.
The Reagan administration went much further.
Its executive orders, effective until changed, require, first, that agencies
prepare and submit to the OMB for review a cost-benefit analysis on each
proposed major rule, and to the extent permitted by law, not act unless
benefits exceed costs to society, net benefits are at a maximum, and among
the alternative approaches the one with the least net cost to society is
chosen. This system provoked much friction….
Case 13: Legislative Oversight &
By Charles U. Walters, spring 2007
39 year old, trim athletic Janet Huggins died
of a heart attack (2004). Her doctor had prescribed Vioxx as a painkiller
to her developing rheumatoid arthritis. Before her funeral even, Merck
(giant pharmaceutical company—maker of Vioxx) announced it was withdrawing
Vioxx from the market. Those taking the drug were found to have twice the
risks of suffering heart attacks or strokes.
Jamie Gregg, a construction worker also suffered
a heart attack and now is unresponsive except for he his able to move his
head and utter vague syllables. He was 32 and had been taking Vioxx for
4 years for back pain. His wife learned of the recall and filed a suit
For Merck the case proved devastating—it had
spent hundreds of millions on research and on developing the drug and hundreds
of millions also in advertising.
The drug did provide effective pain relief with
far less chance of intestinal problems like aspiring. It was a boom and
brought Merck $2.5 billion and many with painful problems relief.
The company estimated that the lawsuits and the
recall of the drug would cost it between 12-18 billion dollars.
Critics asked why the FDA hadn’t picked up on
it earlier and forced Merck to take it off the market—one doctor had been
warning for 3 years about the risk the drug caused. Representative Tom
Davis (R-VA) wrote to Merck asking for their research on the drug. Particularly
he asked about charges that had been made against the drug publicly in
2004. The FDA and Merck were investigated as to why action was not taken
During the ‘80s the FDA received harsh criticism
on the long and tortuous approval process that new drugs had to go through.
The 1950s issue with Thalidomide had scared them (a drug thought to be
safe given to pregnant women for nausea--caused children to have severe
birth defects such as lack of limbs.) The agency tightened its restrictions
on drug approval and received harsh criticism.
The higher the research and development costs
the more expensive drugs become and the longer it takes to get new ones
on the market. Sick patients want cures, but no one wants another Thalidomide
or another Vioxx.
Chapter 14 Conclusion
Charles U Walters, Spring ‘07
Bureaucratic Responsibility has two elements:
Accountability and Ethical Behavior
Bureaucratic Accountability is expected to
follow the law and the constitution and be subordinate to sources of political
• Theoretical Approaches:
o 1st approach: bureaucratic authority=
• Complications: multiple controllers
operating simultaneous rather than a straightforward relationship between
a principal and an agent.
o 2nd approach: democracy and efficiency
are conflicting values (accountable officials and efficiency in administering
the law seem to be incompatible)
o 3rd approach: democracy is viewed as a
process of exchange between sides/groups
o theoretical features—representativeness
of the people making up the bureaucracy and the fragmentation of the bureaucracy
(which make it hard to threaten the democratic balance) seem to counteract
the accountability problem
• Accountability Systems: control
of administrators can be positive or negative and the principal focus of
it is to discover errors that need correction. Systems of Control have
o voluntary compliance—foundation
of control, people voluntarily complying with restrictions on behavior
An Agency needs good internal and external controls,
if internal are weak then an external crackdown often occurs.
o standard setting—crafting of rules to guide
administrative action, what administrators are supposed and what behavior
o monitoring—check if standards are met,
review actions completed oftentimes, should they be used to identify/prevent/
or correct all possible errors?
o sanctions—consequences that must be imposed
if an overseer finds problems or else where is credibility? Mission cannot
be disrupted but it must be taken serious.
Who is going to watch the watchers? Who will
keep the balance of external and internal controls right?—independence
and redundancy seem to be the answers in America. Redundancy is the multiplying
of control agencies and overlapping their functions—where one agency is
most likely to see a problem if one arises.
What should we seek to control?
Fiscal Accountability—money going to
only the programs it is supposed to
Process Accountability—how agencies
perform their tasks
Program Accountability—is a public
program achieving its purpose as defined in law?
Who controls whom?—people ultimately in control,
whistleblowers (may be a motivation to expose wrong or a malicious attempt
Solutions—when hierarchy system becomes
weak, administrators can: use best judgment to discover intent of policy,
rely on their professional judgment, and consult with controllers
Calvin Mackenzie wrote how the public
sector requires much higher ethical standards than the private sector
1989 Ethics Reform Act (requirements
of presidential appointees) requires that each person submit income from
preceding calendar year, very detailed description of almost all fiscal
and property activity must be submitted with public and news media having
Overall public officials are scrutinized
very carefully and criticized regularly. So many restrictions on candidates
seem to paint a negative picture on human nature. Precautions are very
detailed and burdensome.
Public Service is determined by the
individuals recruited and retained in the public service. Public service
is one of the most important societal jobs and incentive is needed to allow
ablest citizens to join in and to delight in public service.
Pentagon “rooting” for Boeing in its competition
against European Airbus which was racing to capture the dominant share
of the world aircraft market
Kettl and Fesler, 3/e, Case 14, Problems
with Contracting at the Pentagon
By D. Coleman Muzio, spring 2009 (others
2003 Airbus delivers more planes than Boeing
for first time (four years earlier Boeing had 67% of the market)
Boeing complains of unfair competition as
Airbus receiving aid from European governments. Boeing finds ally in Senator
Sam Brownback (R-KS) (eager to protect the jobs of Boeing workers in his
home state and promising for congressional help in leveling the playing
Boeing gets deal with Air Force (which will
lease 100 of model 767 jetliners to be fitted for use as tankers for aerial
refueling on long distance missions) that helps prop its sagging sales.
While this solution was beneficial to Boeing, some were suspicious of the
Senator John McCain led the fight to discover
whether undue political pressure had led the Air Force to buy something
it didn’t need, at great expense, that was possibly not on par with the
competition. McCain discovered embarrassing emails and concluded that the
Air Force had NOT been impartial in its contract and put all of it into
the Congressional record.
McCain charges that the deal was a waste of
taxpayer dollars. Darleen Druyan who had already violated ethics parlayed
the deal into a job at Boeing and also had given major deals and insider
information to the company.
Secretary James G. Roche resigns due to political
pressure (as does assistant Marvin Sambur). A few days later deputy secretary
of defense Paul D. Wolfowitz announced there would be a full competition
for the contract and the lease with Boeing would not be an option.
Case 14: From the Front Lines of Government
Charles U Walters Spring ‘07
Fesler Case 14: Unethical Contracting
Secretary James G. Roche of the Air Force had
communicated with a defense contractor who favored Boeing’s efforts
to convince the Air Force to lease 100 of its 767 planes that would
be fitted for refueling purposes. Boeing was currently struggling
with Airbus in competition.
Senator Sam Brownback promised help to Boeing
because Airbus had major operations in France and Germany and began producing
more than Boeing. Boeing saw the deal with the Air Force to update its
tankers as a way out of a sales slump.
The Air Force promised impartial competition
between Boeing and Airbus (only other builder than Boeing capable of building
the plane they needed).
John McCain felt that pressure to help Boeing
was too much and might lead to buying a tanker we didn’t need, might not
perform as well as the competitions, and cost billions more than necessary.
Congress performed investigation which lead to
e-mail correspondence between Boeing and Air Force top officials which
proved an impartial competition was not intended.
The lease deal with Boeing would cost the US
much more in the long run McCain found out. It looked better in the short
term because the payments would have been less, but would have rounded
out as much more.
One official was jailed (Darleen Druyun 2nd in
of procurement for AF) she had supported higher price than needed with
Boeing, she had negotiated a new job to begin with Boeing after she left
the federal government, received 9 months in prison, 5 months house arrest
and 5000 dollar fine.
Roche resigned and the AF said that leasing the
tankers from Boeing would not be an option.
by Brandon Shrout, Spring 2007
-An email was sent from Secretary James G. Roche
of the Air Force to Raytheon executive William Swanson that said, “Go Boeing”,
“The fools in Paris and Berlin never did their homework”.
-In 2003, for the first time Airbus delivered
more planes globally than Boeing.
-Boeing complained that they were facing unfair
competition. To battle this Boeing made a deal with the Air Force
to lease their 767 aircrafts as tankers to replace the older KC-135 model.
-The Air Force promised to conduct an impartial
competition between the two companies.
-Some members of Congress, including Sen. John
McCain felt that the Air Force was being led by Boeing to make an unnecessary
deal that would cost taxpayers billions.
-When Sen. McCain found the emails he stated,
“This appears to be a case of either a systematic failure in procurement
oversight, willful blindness or rank corruption” adding “Either way, accountability
among Air Force leadership is over”.
-One official who was jailed in the case was
Darleen Druyun. She was one of the most powerful women in the Pentagon.
In exchange for favoring Boeing in the deal she had acquired a position
with them after leaving the federal government. She received a nine-month
sentence, seven-month in home detention, a $5,000 fine, and 150 hours of
community service. In her plea agreement she confessed to giving
Boeing information about their competitors, favoring Boeing on a $4 billion
avionics contract, a $100 million NATO contract in 2002, and had pushed
for a $412 million settlement with Boeing on a contract dispute between
the company and the government in 2002.
-In November 2004, Secretary Roche and his top
acquisitions executive Assistant Secretary Marvin Sambur, announced that
they would resign from the Air Force at the end of the year.
-After this deputy secretary of defense, Paul
D. Wolfowitz announced that there would be a full competition for the Air
Force contract. Leasing them from Boeing would not be an option.