CHAPTER 8
The Federal Bureaucracy
Learning Objectives
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
2
Describe the bureaucracy as part of the executive branch of government
organized hierarchically with standard operating procedures for doing business.
Assess the critical role that the bureaucracy plays in the implementation of
federal policy.
Define “delegated authority” and apply the conditions under which such
authority is granted.
Distinguish the oversight function of Congress over the bureaucracy.
Evaluate why Congress has provided some bureaucratic units with
administrative judicatory authority.
Describe how the federal bureaucracy has evolved over time, including
substantial growth spurts as a result of the New Deal and Great Society
programs and the Cold War.
Explain methods for attempting to control or reduce the size and scope of the
federal bureaucracy through privatization, devolution, deregulation, and
accountability.
Distinguish between the different types of agencies in the federal bureaucracy.
Describe the large scope of the federal workforce and the civil service rules
governing federal employment.
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What is Bureaucracy?
Characteristics of Effective
Bureaucracies:
Organized based on specialization,
expertise, and division of labor
Hierarchical—chain of command
“paper trail” of actions and decisions
Standard operating procedures
Hiring and promotion, merit based
3
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What is Bureaucracy?
Department of Health and Human Services
ABCD'S under each department
Agencies, Bureaus, Commission,
Division
4
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The Organization of the Federal Bureaucracy
5
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From www.firstgov.gov
The Organization of the Federal Bureaucracy
6
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What is Bureaucracy?
No mention of it in the
Constitution. Has evolved the past
239 years with additions.
Primarily under the Executive
Branch
7
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The Federal Workforce
2.8 million civilian personnel
25% work for the Postal Service
1.6 million U.S. military personnel
Largest employer in U.S.
Total number of federal employees has
8
actually declined over the past halfdecade
 A little misleading in that more
state/local and private contractors
90% outside of Washington
The Federal Workforce
Political Appointees and Career
Professionals
– About 8000 membes of the federal
workforce are presidential appointees,
some of whom must be confirmed by the
Senate. Cabinet Secretaries and highlevel officers
9
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The Federal Workforce
Political Appointees and Career
Professionals
– Senior Executive Service(SES)Senior
Executive Service -7500 career
professionals in the federal bureaucracy
who provide continuity in the operations of
the bureaucracy from one presidential
administration to the next
10
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The Federal Workforce
Majority of federal bureaucrcy
workforce is known as the civil
service. The Civil ServiceSupposed to be immune from
partisan political maneuvering. Not
always the case and at times
subterfuge (leaking to press)
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The Federal Workforce
President Jackson
• Spoils system-the post election practice of
rewarding loyal supporters of the winning
candidates and party with appointive public
offices
• Patronage-appointing people to government
positions in return for their partisan and or
political support
12
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The Federal Workforce
The Civil Service
– Pendleton Civil Service Reform
Act(1883) that created a merit system
for hiring many federal workers
protected them from being fired for
partisan reasons and set up the Civil
Service Commission to oversee the
hiring and firing process
• Merit system
13
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The Federal Workforce
The Civil Service
– Hatch Act of 1939 further insulated the civil
service from partisan politics by prohibiting
the dismissal of an employee for partisan
reasons and prohibiting federal workers
from running for office or actively
campaigning for a political candidate
– Ex. Hatch Act/Sebelius campaigning for
Obamacare; Cited the Hatch Act
14
The Federal Workforce
The Civil Service
– In 1990's revisions allowed individuals to
campaign and give money as long as not
done on the job. Run for nonpartisan
elections (city). Cannot run for partisan
election ( with a R or D behind the
candidates name)
15
The Federal Workforce
16
The Civil Service
– Civil Service Reform Act of 1978-Office
of Personnel Management and Merit
System Protection Board
– Hiring and protecting the rights of
federal employees,conducting hearings,
and regulating the way employees can
participate in politics. Also, to fire the
higher federal employees if not
perfoming to standard. Still union
blockages prevent a lot of firing.
What Does the Federal
Bureaucracy Do?
Policy Implementation-The process
of carrying out laws, and the
specific programs or services
outline in those laws
Begin by developing regulations-Rules or
17
other directive issued by government
agencies
New rules get input from the executive
branch, interest groups, media, and judicial
decisions
What Does the Federal
Bureaucracy Do?
Review of objectives and costs by Office of
management and Budget (OMB)
Draft is circulated to affected
industries and groups with possible
hearings
Once an agency drafts a set of regulations
18
to implement a program, the regulations
are published in the Federal Register.
Register. This is accessible to elected
leaders, interest groups, corporations, the
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What Does the Federal
Bureaucracy Do?
Agencies will have an open period where
they accept comments on the proposed
rules and decide whether to redraft based
on the commentary they receive. Allow for
30-60 days for comments and hearings.
If agency refuses to redraft based on an
objection, the objector can ask Congress to
require the agency to modiy the regulation.
19
What Does the Federal
Bureaucracy Do?
The objector might also take the matter to
20
court on the basis that the agency was
acting outside of Congress's intentions in
the law.Congress can be asked to modify
the regulation.
After agencies come to a decision and
publishes the final regulation in the Federal
Register once again, the Congress has the
ability to overrule the agency through the
Congressional Review Act (more on this
with the overview by Congress)
Some laws are very vague and offer
21
agencies little guidance about
implementation. Other laws can be very
specific in directing the agency on how
to implement them. When laws are
vague, agencies are said to have
administrative discretion, which gives
them considerable freedom in deciding
how to implement the laws
Gives agencies latitude (EPA and
OSHA
Bureaucratic Legislation
Delegated congressional power-
Congress's transferring of its lawmaking
authority to the executive branch of
government (Especially when laws are
vague) allows for this administrative
discretion
Congress may cede lawmaking authority
to the bureaucracy, but it does not
relinquish all power
22
Often Congress does it when it lacks the
technical expertise and when “pass the
buck”.
Constitutional, Statutory, Administrative Law
 Administrative Law-A law that
23
relates to
the authority of administrative agencies
and the rules promulgated by those
agencies ( “Fed”, environmental and work
place laws)
1. Oversight of Bureaucracy by
president

Appoint department heads to executive
branch agencies

Changes the agency's annual budget
(only Congress can eliminate the entire
budget or the agency itself)

Ignore legislative initiatives in a
bureaucracy
24
The Executive Office of the
President
Help the president of the United States to
manage the rest of the federal
bureaucracy
Reports directly to the president
Managed by White House Chief of Staff
25
The Executive Office of the
President
Office of Management and Budget-Makes
sure monies are allocated, rules are
written to the satisfaction of the
president
Council on Economic Advisers
Council on Environmental Advisers
Communications Office
26
Oversight of the Bureaucracy
2. Congressional Oversight-exercise of
27
its authority to monitor the activities of
agencies and administrators
When not satisfied it can:
Reduce or eliminate an agency's budget
Refuse to confirm presidential
appointments to that agency. Don't
remove presidential appointees
Eliminate the agency
Investigate the agency/congressional
Oversight of the Bureaucracy
Congressional Review Act- can nullify
agency regulations by a joint resolution of
legislative disapproval. It also requires a
president's signature. So, if the president
is head of the bureaucracy and not in the
same party as the House or Senate there
may be difficulty in stopping the
bureaucratic regulations. Then others will
have to resort to the courts.
28
29
Congress (con't)
Investigate the agency (two methods)

Investigations into the agency: Regularly
scheduled or on an ad hoc basis(“fire-alarm
investigation)

House Armed Services Committee meets
with the Secretary of Defense and Joint
Chiefs of Staff to review pentagon
programs (regularly scheduled)

Fire-Alarm (Fast and Furious/IRS Lois
Lerner Gulf of Mexico oil spill)
Just like the OMB helps the president to coordinate
bureaucracy, the GAO and CBO help Congress
Two agencies under control of Congress(rather
than the president) is the Government
Accountability Office (GAO) and Congressional
Budget Office (CBO)
GAO- how much money is spent in the
bureaucracy and monitors how policies are
implemented. CBO usually makes independent
analysis of a budget request from an agency or
cost projections of future legislative programs.
30
So both GAO and CBO compile data on
federal programs and are staffed with
program review and accounting
professionals who comply with members'
and committees' request for information on
agency performance and cost/program
effectiveness
31
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3.Courts Affect the Bureaucracy



32
Rule on whether bureaucracies have acted
within the parameters of the law
Courts also oversee the bureaucracy.
EPA/Businesses injunction to stop action
until heard in court.
Usually the procedure wasn't followed for
comments prior to the publication in the
federal register. So force the bureaucracy to
respect rights of individuals through hearings
Courts (con't)



33
Rule on the constitutionality of
challenged rules and regulations
They have to wait until the case comes
to them.
They do not initiate policies to alter the
bureaucracy's activities
Bureaucratic Adjudication
Sometimes, there is a stop before it gets to
the federal courts. There are courts withing
the bureaucracy which may mediate disputes.
A quasi-judicial process in which a
bureaucratic agency settles disputes
between two parties. Occurs mostly in
bureaucratic court system
34
Some examples of bureaucratic
adjudication:
Ex. Determining the rights and dutieswhether an individual is eligible to receive
Social Security payments/whether a
company has violated an air pollution rule
Ex.EEOC- Federal law. Preventing
discrimination/corrective action
35
36
Bureaucratic Adjudication
Any court decision may be appealed to
the federal court system because the
power of adjudication ultimately rests in
the hands of the judicial branch.
In reality, many federal courts routinely
uphold cases appeal from administrative
courts unless they didn't follow the
Administrative Procedure Act or went
beyond the law (EPA finds itself being
overruled by Supreme Court)
37
4. Interest Group Affect Bureaucracy
Ask Congressional people to hold hearings
and testify at hearings for rulings that are
perceived so onerous.
Communicate with Bureaucratic agencies
through the rule making process. Ask
Congressional representatives to notify
bureaucratice agenicies that does not seem
receptive
Amicus test cases with legal groups
Give money to candidates
Two main administrations
Iron Triangle- Cozy three sided
network.
Issue Networks: more groups, fluid,
and not one group predominates
38
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The Federal Workforce
Iron Triangle- refers to the relatively stable
relationships among agencies, interest
groups, and congressional committees
Few interest groups, 1-2 congressmen, and
usually one agency
Usually seen more in the 50's, 60's
More cooperation but still illustrates the
competition that exist with different
government agencies
Are not as powerful as they once were
39
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Issue Networks
Fluid
Many senators, more than 2-3
committees, many interest groups and
varied interest groups (consumers,
environmental)
President, media, think tanks as well
Not one group dominates
More conflict than consensus
40
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The Federal Workforce
Policy Coordinating Committees-
(PCCs) were developed to handle largescale problems such as terrorist
financing and space shuttle disasters.
41
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The Development of the Federal
Bureaucracy
Washington's Presidency
Departments
Department of State-Thomas Jefferson
Department of Treasury-Hamilton
Department of War-Knox
Post Office (under the Treasury
Department)
42
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The Development of the Federal
Bureaucracy
Now have15 Cabinet Departments
The latest one added was
Homeland Security
All these Departments heads are
addressed as Secretary except the
Department of Justice ( Attorney
General)
43
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The Development of the
Federal Bureaucracy
Bureaucracy Expansion
44
Mid-1800s: Department of the Interioradded new territories
Civil War-led to the growth in the size of
the bureaucracy
1862: Agriculture policies in the Lincoln
administration started to address the
farming/farm product commercialization.
Very important to feed the troops.
Became a Cabinet Department 20 years
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later.
The Development of the
Federal Bureaucracy
Bureaucracy Expansion
– Pensions Office in 1866 to pay benefits
to thousands of Union Veterans
– 1870: Department of Justice was a
Cabinet department. Due from the
attorney general in the post-Civil War
era Reconstruction
45
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The Development of the
Federal Bureaucracy
Bureaucracy Expansion
46
1884: Bureau of Labor-with growth of the
industrial economy
1887/1888: Interstate Commerce
Commission-First Independent regulatory
commission. Exorbitance rates by the
railroad companies for hauling freight.-With
the industrialization, help regulate interstate
and foreign trade
Early 1900s: Cabinet status-To reflect the
growing role they played in the federal
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government (Department of Commerce)
The Development of the
Federal Bureaucracy
Bureaucracy Expansion
47
1900's- Teddy Roosevelt. Monopolies.
Long hours and employer/employee
relationships, unions.
Commerce and Labor
1913 Wilson
Separated the Commerce and Labor
Department; I6th Amendment (income
tax) IRS and Federal Trade
Commission-To protect small business
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from unfair competition (big business)
The Development of the
Federal Bureaucracy
Massive Growth of Bureaucracy
– FDR’s New Deal (1930's)-In reaction to
the Great Depression(Security and
Exchange Commission SEC) to regulate
bonds and programs to provide jobs for
the large number of unemployed
48
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CORBIS
Many of the federal bureaucracy’s “alphabet soup” agencies were
created as New Deal programs during the administration of President
Franklin Delano Roosevelt. Pictured above are workers at one such
agency, the Tennessee Valley Authority, seen here assembling a new
power generator at the Cherokee Dam on the Holston River in east
Tennessee.
49
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The Development of the
Federal Bureaucracy
Massive Growth of Bureaucracy
50
– After World War II (1945)-The size of the
federal government grew dramatically.
Tax rates to support war never again fell to
prewar levels. With the new monies,
veteran's demands (Department of
Veterans Affairs)for bigger government
were addressed through the GI bills to help
with education and housing. Now
government programs for middle class and
not just lower income levels.
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The Development of the
Federal Bureaucracy
Massive Growth of Bureaucracy
– Also, had to consider the extra monies
for the Cold War (1945-1991) and the
increased budget for the Defense Dept.
– Johnson's Great Society
Program(1960)-laws aimed at at social
and economic improvements. EEOC
Department of Housing and Urban
Development (HUD), Job Development,
Medicare/Medicaid
51
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The Development of the
Federal Bureaucracy
Massive Growth of Bureaucracy
– Carter (1970's)- Energy crisis, long gas
lines. Energy Department and
Education Department (Federal
monies to local schools for disabilities).
Big advocate deregulation and more
competition ( eliminated the Civil
aeronautics Board (CAB) and the
Interstate Commerce Commission (now
Department of Commerce)
52
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Getting Control of the Growing
Bureaucracy
Privatization-The process of replacing
government provided services with
services provide by the private sector
Decrease number of federal employees
Replace government provided services with
private sector
Cost lower than those provide by state agencies
Less red tape and fewer civil service restrictions
53
More flexibility to compete and adapt to
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changing circumstances
Getting Control of the Growing
Bureaucracy
Deregulation-The elimination of
government oversight and government
regulation of certain activities-1970's
Trucking, Railroad industries, longdistance telephone, air flights
54
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Getting Control of the Growing
Bureaucracy
“Reinventing Government”-Clinton,
customer satisfaction, freedom of information
for access, government establish a plan and
achieving those goals
55
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Getting Control of the Growing
Bureaucracy
Devolution- Clinton as president but a
Republican Congress; Newt Gingrich. The
transfer of power and responsibilities for
certain regulatory program from the federal
government back to the states. Unlike
earlier programs this was an attempt to shrink
the size of government Good example:
Welfare Reform in the 1996
56
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Getting Control of the Growing
Bureaucracy
Clinton had the benefit of the disintegration of
the U.S.S.R; less monies needed for defense
associated with the Cold War
Between 1990 and 2000, the number of
civilian employees in the federal government
declined by about 500,000 and the
percentage of the GDP accounted for by
federal spending dropped from 21.9 to 18.2
percent
57
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Getting Control of the Growing
Bureaucracy
58
Nevertheless, federal spending on
bureaucracy continues to increase annually at
a pace that exceeds inflation. Defense
spending on terrorism (9/11) and the war in
Iraq/No Child Left Behind, Department of
Homeland Security
Obama ($825 billion ) for economic stimulus,
a health care reform package, increased
regulation on the financial services industry,
has increased the size and scope of
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government
Changes in Numbers of Federal Workers,
Civilian and Military
59
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The Organization of the
Federal Bureaucracy
1.Cabinet Departments
Executive branch administrative
organizations-Those federal agencies
that qualify as the major administrative
organizations of the executive branch
with responsibility for a broad area of
government operations
A permanent national interest
Headed by secretary
60
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The Organization of the
Federal Bureaucracy
61
Cabinet Departments (con't)
– Broad Authority
– Report to president
– Generally shares the same views as the
president on policy matter and often is a
loyal political supporter
– Dual roles and sometimes in conflict
with president
– Department of Justice-attorney general
to prosecute those who are in conflict
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The Organization of the
Federal Bureaucracy
62
Cabinet Departments
– Inner Cabinet-Used to describe the
secretaries of the most important
departments in the cabinet
– State, Defense, Treasury and Justice
– Table 8.2 The Cabinet Departments
Head of cabinet departments advises and
reports directly to the president, only the
Congress has the authority to create a new
department or eliminate an existing one.
Important check over the president
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Andrew Harrer/Bloomberg/Getty Images
President Obama has appointed a number of Hispanic Americans to
leadership positions in the federal bureaucracy. In 2014, he appointed
San Antonio Mayor Julian Castro (pictured above) as Secretary of
Housing and Urban Development. That same year, Hispanic American
Thomas Perez was appointed as Labor Secretary, Maria ContrerasSweet as Head of the Small Business Administration, and Katherine
Archuleta as the director of the Office of Personnel Management. This
marked the first time that four Latinos occupied cabinet-rank positions.
63
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The Organization of the
Federal Bureaucracy
The Department of Homeland
Security
Border and transportation
security(Immigration and Naturalization
Service)
Emergency preparedness and
response(FEMA)
Science and technology
64
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The Organization of the
Federal Bureaucracy
2. Independent Executive
Agencies. Governmental units that
closely resemble a Cabinet
department but have narrower areas
of responsibility and perform services
rather than regulatory functions
Exist apart from the executive
departments for practical or symbolic
reasons.
65
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The Organization of the
Federal Bureaucracy
Appointed and report to president
Can be removed by president
Narrower focus-NASA focuses on the
U.S. Space program/Small Business
Administration concentrates on low-cost
loans and support
66
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The Organization of the
Federal Bureaucracy
Department of Interior could have had
the EPA under this Cabinet level. Instead
EPA is an independent agency in 1970
to administer federal programs aimed at
controlling pollution and protecting the
nation's environment
67
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The Organization of the
Federal Bureaucracy
68
3.Regulatory Agencies-A
government body responsible for the
control and supervision of a specified
activity or area of public interest
Economic rules and regulations
Nonpartisan
Not under direct presidential control.
President cannot remove. To maintain
objectivity
Example: OSHA -workplace safety
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The Organization of the
Federal Bureaucracy
Regulatory Agencies (con't)Rulemaking - a quasi-legislative process
that results in regulations that have
the characteristics of a legislative act.
Regulations -are the rules that govern that
can affect individual's income. Often
litigated in Courts.
69
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Regulatory AgenciesOlder agencies (Securities and
Exchange SEC) Bonds. Doesn't cross
industry line
Not as much political pressure
Newer regulatory boards are more
70
political and experience more political
pressure
Cross industry lines
Are more concerned with public health and
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safety (OSHA) (consumer protection)
The Organization of the
Federal Bureaucracy
Regulatory Agencies-
Older Agencies
Federal Trade Commission (FTC)Federal
71
Communication Commission (FCC)
Securities and Exchange Commission (SEC)
(1930's)
Newer Agencies (1960's)
Equal Employment Opportunity Commission
(EEOC)(1960's)
OSHA- workplace safety
Consumer
Product
Safety
Copyright
© 2016 Cengage
Learning. All rights
reserved. Commission (CPSC)
(1960's)
The Organization of the
Federal Bureaucracy
Regulatory Agencies-
EPA (1960's) seems like a regulatory
agency but it is actually an independent
executive agency. One of the newer
agencies because it crossed industry lines
and addressed health and safety but still
classified as an independent executive
agency because the president can remove
the department head.
72
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73
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J. M. Eddins, Jr. /MCT/Alamy
The Federal Reserve,
chaired by Janet
Yellen since February
2014, is a regulatory
agency that sets
monetary policy.
The Organization of the
Federal Bureaucracy
74
4.Government Corporations
Run like private companies
Depend on revenue primarily from
citizens to provide their services
Serve a public purpose
Post Office (One year lost $16 Billion.
Had to reorganize and cut back. Even
now, still lost $1 Billion)
Amtrack- Question whether it should be
subsidized
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Post Office Blues
Click picture to view video
75
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Video Discussion Questions
What qualities make the U.S.
Postal Service a bureaucracy?
2. Could postal services be
completely privatized at a low
cost to consumers?
3. How many days a week should
mail be delivered? Would fewer
delivery days affect you?
1.
76
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