Chapter 11

1. Chapter 11 The Bureaucracy

2. What is a Bureaucracy? • A large organization structured hierarchically to carry out specific functions • Private bureaucracies exist within organizations like corporations • Have a single set of leaders; serve shareholders; driven by profit motive • Public bureaucracies exist within organizations like governments • Typically have multiple sets of leaders (Congress, president, etc.); serve citizens; driven by needs of citizens • Federal bureaucracy grounded in Article II, Sections 2 and 3 • Why bureaucracy? Increasing complexity of society, economy; increasing demands for government responsiveness; Congress does not have time or expertise to oversee administration of all of its statutes; delegates to specialized agencies

3. Models of Bureaucracy • Weberian model = bureaucracy a response to increasing social complexity and demands • Hierarchical • Formal procedures • Power flows from top down • Advancement on merit • Bureaucrats are specialists, professionals • Decisions made based on logical reasoning and data analysis • Acquisitive model = top-level bureaucrats seek greater funding, staffs, and privileges to increase their power • Monopolistic model = bureaucracies are inefficient and costly; lack competition

4. © 2004 Wadsworth Publishing / Thomson Learning™ Fed, State, Local employmentFigure 11-1

6. © 2004 Wadsworth Publishing / Thomson Learning™ Fed agencies and civilian employees

7. Organization of the Federal Government • Cabinet Departments (15 departments of executive branch, aka executive departments) • Independent Executive Agencies (not part of cabinet department); report directly to president • CIA, GSA, NSF, SBA, NASA, EPA • Independent Regulatory Agencies (outside major executive departments, which makes rules, regulations to protect public interest) • Fed, FTC, SEC, FCC, NLRB, EEOC, FEC, NRC • Government Corporations (quasi-business enterprise) • TVA, FDIC, Ex-Im Bank, Amtrak, Postal Service

10. © 2004 Wadsworth Publishing / Thomson Learning™ Independent Executive Agencies

11. Independent Regulatory Agencies • Have legislative, executive, and judicial functions (make rules/laws, enforces them, and adjudicate disputes) • Members (cannot all be from same party) appointed by the president and approved by the Senate • Can only be removed by the president for just cause • Agency capture = direct or indirect control over agency by industry being regulated resulting in less competition, higher prices, and less consumer choice

12. © 2004 Wadsworth Publishing / Thomson Learning™ Independent Regulatory Agencies

13. © 2004 Wadsworth Publishing / Thomson Learning™ Government Corporations

14. Staffing the Bureaucracy • Two categories of bureaucrats = political appointees and civil servants • Political appointees (patronage) • “Aristocracy” of the federal government • Often just figureheads • Civil Service (permanent) • Difficult to dismiss • Typically less than .1% per year fired for incompetence

15. History of the Federal Civil Service • Jeffersonian “natural aristocracy” • Jacksonian Spoils system • Civil Service Reform Act of 1883 • Professional/Merit system (appointments based on competitive exams) (now covers up to 90% of bureaucracy) • Civil Service Commission • Hatch Act of 1939 • Prohibited federal employees from participating in campaigns (amended by Federal Employees Political Activities Act of 1993) • Civil Service Reform Act of 1978 • Office of Personnel Management (OPM) • Merit Systems Protection Board (MSPB)

16. Modern Bureaucratic Reform • Sunshine laws (1976) – requires multihead federal agencies to conduct business in public session • Sunset laws – programs be reviewed and terminated if not effective • Privatization – government services replaced by private sector (e.g., prisons, schools, social security (?)) • Incentives – maximizing efficiency and productivity for improved performance (e.g., Government Performance and Results Act (1997); “performance-based budgeting”) • Root of problem – decision-making process; public officials; challenges • e-government – improved efficiency and lowered costs • Helping whistle blowers – someone who blows the whistle on inefficiency or illegal action

17. Bureaucrats as Politicians and Policymakers • Enabling legislation – Congressional statute creating an agency, purpose, composition, functions, and powers grants agency discretion in carrying out and interpreting laws • Rules, regulations published in Federal Register, with a 60-day wait before implementation • Negotiated rulemaking (1990) – allows those affected by new rule, regulation to participate in rule-drafting process • Iron triangles – three-way alliance between legislators, bureaucrats, and interest groups to preserve, make policies that benefit their respective interests • Issue networks – group of individuals or organizations (legislators, staff, interest groups, bureaucrats, media, scholars, etc.) that supports a particular policy position

18. Congressional Control of the Bureaucracy • Power of the purse • Authorizing funds • Appropriating funds • Congressional investigations, hearings, and review (oversight) • General Accounting Office • Congressional Budget Office • Congressional Review Act (1996) – special procedure used to express Congressional disapproval of particular agencies actions

19. Discussion questions • Which model of bureaucracy is most persuasive (Weberian, acquisitive, monopolistic)? • What can be done to increase the efficiency and accountability of the bureaucracy? • Is agency capture a problem? • What can be done to decrease the negative effects of iron triangles and issue networks?

20. Hot Links to Selected Internet Resources: • Book’s Companion Site: http://politicalscience.wadsworth.com/schmidtbrief2004 • Wadsworth’s Companion Site: http://politicalscience.wadsworth.com • First Gov: http://www.firstgov.gov • The Federal Web Locator: http://www.infoctr.edu/fwl