SUMMARY OF SPECIAL MEETING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700070002-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: August 9, 2000
• Sequence Number: 2
• Publication Date: August 9, 1971
• Content Type: SUMMARY

Approvd
Chairman
Bernard Rosen
Executive Director, CSC
Room 5518, Ext. 26111
Executive Vice-Chairman
Clinton Sinith
Room 1307. Ext. 26272
SUMMARY OF SPECIAL MEETING
August 9, 1971
0002-0
Secretariat
Room 7304 - 1900 E St., N.W.
Code 101, Ext. 26266 or
Area Code 202 - 632-6266
Mr. Rosen stated that the purpose of the meeting was to share ideas about ways
the personnel. community can assure effective achievement of the President's
goal to stop unwarranted grade escalation; as outlined in 0MB Bulletin No. 72-4,
dated August 5, 1971, to Heads of Executive Departments and Establishments.
Mr. Rosen introduced Charles Parker and David McAfee of the Office of Management
and Budget, and Raymond Jacobson, Director, Bureau of Policies and Standards,
U. S. Civil Service Commission.
There has been a, steady rise in the average grade level in the Executive Branch
of the Government over the years which averaged about one-tenth of a grade per
year. However, since 1968 the average grade level has risen at a much faster
rate, approximately two-tenths of a grade per year. There has been a decline in
number and percent of positions in GS-.l through 4, while at the same time there
has been. a-steady increase in number and percent of positions in grades GS-11
through 15. This upsurge occurred at the time the Federal service was arriving
at pay comparability.
The President's concern centers on the tremendous dollar cost of the grade creep
resulting not only from the rise in the average grade, but also in the cost of
the accompanying increased fringe. benefits.
The 0MB Bulletin states that there is "considerable evidence that many Federal
agencies have failed to exercise adequate controls over their, staffing patterns
...." The focus, however, is strictly a constructive one, with no particular
agencies, programs, or any single staff activity being blamed. The success of
this effort will result from the ingenuity and determination of Federal managers
to achieve a leaner.grade structure.
The measure of the President's concern and determination is indicated by what has
been done since Thursday, August 5.
-- OMB Bulletin 72-4 was discussed by the President at a Cabinet meeting
on August 5.
-- 0MB Director Schultz held a White House News Conference and met with
Under Secretaries on Friday, August 6 to discuss subject.
4 & /1 4 AW
UNITED STATES CIVIL SERVICE COMMISSION
OFFICE OF THE EXECUTIVE DIRECTOR
WASHINGTON, D.C. 20475
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-- Directors* of Personnel discussed subject in IAG meeting of August 9.
?- 0MB and CSC officials met with the Executive Officers Group on
Monday, August 9.
0MB Bulletin No. 72-4 prescribes very tight deadlines for agencies. Agency
plans are due September 15. Teamwork is essential between 0MB, agencies, and
the Commission, and between line managers, personnel people, management analysts
and budget people to assure achievement of the goals of the OMB Bulletin. 0MB
has not prescribed what courses of action agencies will include in their plans
in recognition that actions must be tailored to the particular circumstances of
each agency's programs. The Commission's role will be to provide maximum help
and support to agency personnel directors in Washington and to help achieve
understanding of the program by managers--:in -the field. The 0MB Bulletin includes
some suggested courses-of action foragency:-consideration.
The OMB Bulletin provides for a one-tenth roll back in the Government-wide
average grade by next June 30-and an additional one-tenth by June 30., 1973.
There is no standard average grade applicable to all agencies; each agency
has its own average grade. In those agencies where the average grade rose by
more than four-tenths of a grade since 1968, the agency will be required to
reduce the average grade by 0,.15 by June 30, 1972, and by another 0-.15 by June 30~,
1973. If, on the other hand, there has been less than a 0-.4 increase, agencies
will be requested to roll back the average grade by 0-.1 for each of the next two
fiscal years.
The basic objective in implementing OMB Bulletin No. 72-4 is to halt and reverse
unwarranted annual increases in average grade levels. This means going behind
the increases to get at the real causes of grade escalation. A leanerrade
s-'ru- ct '~cP sTyou k~e ac i e""Iiz ways `t?ha c(a? not cuitail vital programs or
services, damage the morale or productivity of employees, or diminish efforts
to assure equal employment opportunities for minorities, women, veterans, and
others.
The key individuals in this effort are the managers of Government programs. The
rise in average grades is in considerable part the result of day-to-day decisions
in operating programs. Essentially it involves how managers organize and how they
assign work to people. Therefore, the emphasis will be on helping managers
intensify their efforts in more effective position management. This involves
the following:
-- Providing managers with better information on the grade-level
consequences of their management decisions.
-- Changing the expectation, wherever it exists, that grades in any
dynamic program or occupation must keep going up.
-- Providing managers with the information they need to respond
appropriately to natural pressures for higher grades.
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3.
Some possible CSC supportive actions with short-term impact are:
-- CSC can assist agencies by providing data and analysis on, grade-level
trends, and advice on opportunities to restructure jobs.
CSC can hold requests now pending for certification from high-level
registers until agencies review the need to fill jobs at high levels.
This will be done by CSC in response to specific agency requests for
such action.
Closer consultation on pending and future mass upgrading proposals
submitted to CSC under FPM Letter 511-6 in light of new OMJB Bulletin.
-- CSC can hold "one-shot workshops" for managers in the field and
Washington to focus attention on the problem, share thoughts on
possible solutions, etc.
-- CSC can advise agencies in their review of ongoing RIY's to help
assure appropriate?reductions at all levels.
Some possible CSC supportive actions with to c er-range impact are:
-- CSC will serve as clearinghouse to share agency information and
ideas on:
o Effective position management
o Other actions that help reduce grade average
-- On requests for certification, Area Offices can advise agencies where
supply of candidates looks as good or better at lower levels.
CSC will have Regional Office staff available for consultation on
staffing plans with special emphasis on grade structure.
-- More emphasis on helpful advice in areas of position management and
organization of work in:
o Regularly scheduled evaluations of personnel management
o Special reviews
o Planned visits
o CSC participation and agency-led reviews at their request.
CSC can reserve vacant quota jobs in grades GS-16, 17, and 18
for the agency when it decides to defer filling them in furthering
objectives of OM33 Bulletin 72-4.
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Training programs for managers
o CSC will give more emphasis in its interagency training programs
on position management, organization of work, and related subjects.
CSC will make training materials available to agencies that want
to do likewise.
The following questions were raised during the general discussion that followed:
Q. What effect will this new program have on agency contracting activities?
A. This is a separate area for consideration, but agencies should not use
contracting-out merely to lower the average grade.
Q. What is the relationship between this program and the proposals of the
Job Evaluation and Pay Review Task Force; will it delay legislative
proposals?
A. No. Legislative proposals are expected to be submitted by the beginning
of 1972, as required by law.
Q. Will this cause a reconsideration of the Commission's proposal with
respect to changes in GS-5 and 7 entrance ,levels for college gradut.tes?
A. The final decision on this proposal, due to be made shortly, will take
into account a wide variety of comments and considerations, including
the OMB Bulletin.
Q. To what extent have the unions been involved at this point?
A. There have been no discussions with unions on a national basis because
each agency will develop its own plans to achieve the goal in light of
its special circumstances. The need for discussion with unions will
have to be determined by each agency according to its own situation and
the particular relationships it has with its unions.
In submitting the plans required by this Bulletin, each agency should inform
the Office of Management and Budget of the implications of the plans in terms
of any problems that are expected in implementing the plan and how the agency
plans to deal with such problems.
It was emphasized that:
1) There is no Government--wide freeze on promotions. Of course,
individual departments or bureaus are not prohibited from using
temporarily "promotion freezes" or other restraints while they
develop their individual plans.
2) There is no intent to use reduction-in-force or demotions as
techniques to achieve the goals in the OMB Bulletin.
The Group agreed that an IAG Committee should be established to consider all
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