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CHAPTER 70

UNITED STATES BUREAU OF EFFICIENCY 1. Mission

The duties of the Bureau of Efficiency are to establish and maintain a system of efficiency ratings for the executive departments in the District of Columbia; to investigate the needs of the several executive departments and independent establishments with respect to personnel; to investigate duplication of statistical and other work and methods of business in the various branches of the government service; and to aid the Personnel Classification Board in the classification of positions in the departmental service. 2. History

The Bureau of Efficiency was evolved from the Division of Efficiency of the Civil Service Commission, which division was established in 19131 by an act granting $15,000 to the Civil Service Commission for establishing and maintaining a system of efficiency ratings and for investigating "the administrative needs of the service relating to personnel in the several executive departments and independent establishments in the District of Columbia.” The appropriation was increased, and was granted to the Division of Efficiency by name, with broadened authority of the division to include “the investigation of duplication of statistical and other work and methods of business in the various branches of the government service," and provided that the chief of the division should be appointed by the President, and should report to Congress through the President the nature and progress of the work undertaken by the division, and make a detailed statement of expenditures showing the persons employed, their duties, and the compensation paid to each: The Act approved February 28, 1916, changed the designation of the organization to “Bureau of Efficiency," and made it an independent establishment.

As a result of the bureau's recommendations, the subtreasuries were abolished, which resulted in a saving of nearly half a million dollars a year in administrative expenses, and according to Assistant Secretary Leffingwell, of the Treasury Department, in a saving of about $2,000,000 a year in interest on the Public Debt.5 It has installed a system of efficiency ratings for the employees in the Post Office Department. It has made actuarial valuations of the cost of the various pension plans which from time to time were proposed for retiring superannuated employees. It has installed an accounting system in the Indian Service. For about three years it co-operated with the Bureau of Internal Revenue in solving the immense problems which confronted that bureau in collecting the

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1 Act March 4, 1913 (37 Stat. 750 [Comp. St. § 3286]).
2 Act July 16, 1914 (38 Stat. 465).
3 Act March 4, 1915 (38 Stat. 1007, 1008 [Comp. St. $ 3286b]).
439 Stat. 15 (Comp. St. § 3286c).

5 Statement of the Chief of the Bureau of Efficiency before the Monday Lunch Club of the National Association of Manufacturers of the United States, Sept. 13, 1920.

income and excess profits and other taxes. It submitted reports to the Budget Committee of Congress on the accounting methods of the government, which had a material influence on budgetary legislation. It has made investigations of the methods of the Civil Service Commission, and of the statistical work of the government, and has submitted proposals to Congress for the reorganization of the executive branch of the government, needed to eliminate the duplications of work and overlappings of authority which characterize the activities of many of the executive departments. 3. Activities

The Bureau of Efficiency is guided by the following fundamental principles: (a) Co-operation, not coercion. (b) No publicity. (c) Advice, not supervision. (d) Laboratory tests, not academic treatises. (e) Team work. (f) Nonpartisanship.5

Upon these bases, the bureau solves large problems: First, those specifically assigned to it by Congress, either by statute or by resolution of either House, or more or less informally by various congressional committees or members; second, those pertaining to executive departments, bureaus, and independent executive establishments. Some of the congressional mandates are represented by the following tasks, which illustrate the character of the wide range of activities that engage the attention of the bureau:

(1) To establish and maintain a system of efficiency ratings for the employees of the various departments.6

(2) To investigate and report to Congress the general needs of the several executive departments and independent establishments with respect to personnel.?

(3) To investigate and report to Congress upon the duplication of statistical and other work, and upon general methods of business in the various branches of the government.?

(4) To prepare and submit to the Senate estimates of the cost of pensioning or retiring the civil employees of the government. 8

(5) To work out a system of bookkeeping and accounting for the Bureau of Indian Affairs.

(6) To submit recommendations for the improvement of the business methods of the Bureau of Pensions, 10

(7) To investigate the methods of transacting the public business in the Bureau of Internal Revenue. 10

(8) To investigate the accounting methods of the government as a whole.?

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5 Statement of the Chief of the Bureau of Efficiency before the Monday Lunch Club of the National Association of Manufacturers of the United States, Sept. 13, 1920.

6 Act Aug. 23, 1912 (37 Stat. 413, 414).
7 Act March 3, 1917 (39 Stat. 1080).
8 Senate Resolution of May 16, 1916.
9 Act May 18, 1916 (39 Stat. 159 [Comp. St. § 6789a]).
10 Act Sept. 8, 1916 (39 Stat. 801, 804).

(9) To investigate the work performed by the subtreasuries.? (10) To investigate the business methods of the Civil Service Commission."

(11) To ascertain the rates of pay of employees of state and municipal governments, and of commercial concerns, for purposes of comparison with rates of pay allowed by the government."

(12) To investigate the scope and character of statistics needed by the government, and methods of collecting, compiling, and presenting same.11

(13) To furnish auditing services for the United States Shipping Board Emergency Fleet Corporation 12 and Shipping Board.

(14) To investigate the classification of government employees in the departmental service.13

The work done at the request of heads of departments and bureaus is fully as important as the tasks executed by direction of Congress.

The bureau has worked in the departments and independent establishments and has prepared and submitted many separate reports covering office methods, filing and indexing, labor-saving devices, cash accounting, property accounting, cost accounting, pay system, auditing methods, duplication of activities, organization, statistical, actuarial, employment methods, efficiency ratings, and work reports.

The Bureau of Efficiency is a small organization, fully presented in Chart 43, from which it will be seen that it is principally employed in making studies or investigations and in classifying the results thereof.

4. Organization

U. S. BUREAU OF EFFICIENCY

CHIEF

Secretary

Stenographer

Assistant

Chief

Chief Clerk and

Disbursing Officer
Accounts & Disburse-

ments
Care of Building
Messenger Service
Teleplione Service
Supplies

Librarian and File Clerk Library

Mail
Files

Clerks

Accountants

and
Investigators

Assistant
Investigators

Stenographlo

Section

Organization Chart 43

7 Act March 3, 1917 (39 Stat. 1080). 11 Act Nov. 4, 1919 (41 Stat. 343).

12 Act Aug. 24, 1921 (42 Stat. 192); Act June 12, 1922 (42 Stat. 618); Act Feb. 13, 1923 (42 Stat. 1242); Act June 7, 1924 (Pub. No. 214, 68th Cong., 43 Stat. 531). 13 Act March 4, 1923 (42 Stat. 1489).

5. Publications Issued by the United States Bureau of Efficiency

(a) Report of the United States Bureau of Efficiency for the period from March 25, 1913, to October 31, 1916.

(b) Accounting system for the United States Indian Service (supply exhausted).

(c) Work performed by the subtreasuries (supply exhausted).
(d) Foreign Trade Promotion Work.
(e) Service School for Federal Employees (supply exhausted).

(f) List of references on scientific management as the basis of efficiency, with special reference to the government service, compiled by H. H. B. Myer, Chief Bibliographer, Library of Congress.

(g) Report on the Statistical Work of the United States Government (supply exhausted).

(h) Guide to Original Sources for the Major Statistical Activities of the United States government (reprinted from the Report on the Statistical Work of the United States Government).

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1. Mission

Through an act of Congress approved by the President February 23, 1917 (now known as the Vocational Education Act or the Smith-Hughes Act), the United States has established the principle that the nation as a whole has a share of the responsibility for the vocational education of persons who have entered upon, or who are preparing to enter upon, a trade or industrial pursuit, the work of the farm or home, and for the preparation of teachers of such classes. At the same time the principle is established in this act that direct responsibility for carrying on the work of vocational education rests upon the states. This act does not provide for any direct organization or immediate direction of vocational education by the federal government or its agents, but does provide substantial financial assistance to the states for the promotion of vocational education. 2. History

Federal aid for vocational education was first provided for in 1862, by donating public lands to the several states and territories for the benefit of colleges to promote agriculture and mechanic arts. The next instance of such government aid was realized in 1887,3 making an annual appropriation, from the proceeds of public land sales, for the maintenance of agricultural experiment stations. This was followed by various other beneficial acts, all for vocational education of college grade. A demand for promotion of more elemental vocational training resulted in a Federal Commission on National Aid to Vocational Education. The creation of the Federal Board for Vocational Education 1 followed substantially the recommendations of said commission.

By the Act of June 27, 1918,6 the administration of rehabilitating disabled veterans was assigned to the board. Under that act a veteran could not be placed in training until he had been awarded compensation by the Bureau of War Risk. An amendment placed responsibility for determining the disabled veteran's eligibility upon the federal board. The House Committee on Education made an extended investigation of the rehabilitation of disabled soldiers and recommended 8 the combination of the Rehabilitation Division of the Federal Board with

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139 Stat. 929 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, 98 939014 a-939014 m). 2 Morrill Act July 2, 1862 (12 Stat. 503 [Comp. St. $S 4473(5), 4476, 8870]). 3 Hatch Bill March 2, 1887 (24 Stat. 440 [Comp. St. 8 8878 et seq.]). .

4 Second Morrill Act Aug. 30, 1890 (26 Stat. 417 [Comp. St. $$ 8871-8876]); Adams Act March 16, 1906 (34 Stat. 63); Act March 4, 1907 (34 Stat. 1256); Smith-Lewis Act May 8, 1914 (38 Stat. 372 [Comp. St. SS 8877a-8877h]).

5 Res. Jan. 20, 1914 (38 Stat. 767).
6 40 Stat. 617 (Comp. St. Ann. Supp. 1919, 88 307812a-307842i).
7 Act July 11, 1919 (41 Stat. 159 [Comp. St. Ann. Supp. 1923, $ 307812b]).
8 66th Cong. 2d. Sess., H. R. 1104, of June 4, 1920.

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