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Prime Ministerial Leadership, the Public Service and Administrative Reform in Canada: Part 1 Prime Minister in providing leadership to the political 2 Richard Phidd party, the Cabinet and the Public Service. This study is specifically concerned with Public Service O.P. Dwivedi and administrative reform. 3 It adopts the position that the relationship between the Prime Minister and Abstract the Public Service has not been seriously examined. Doctors Phidd and Dwivedi present a detailed analysis The roles of the Prime Minister can be understood of Prime Ministerial Leadership, the Public Service and by distinguishing political, economic and financial Administrative Reform in Canada. The authors de- management roles which are delegated to special- ized organizations. 4 The arrival of management in scribe the history of the public service and administra- 5 tive reform in Canada. While the role of the respective government has led to the delegation of authority to prime ministers is central to their discussion, they care- a number of highly specialized ministers; for exam- ple, the Minister of Finance and the President of the fully describe legislation and institutional changes Treasury Board and the President of the Privy which impacted the public service as well. Detail is Council, among others. 6 given concerning the role of the Privy Council, Treas- ury Board, Civil Service Commission, and other agen- Public sector management requires that functionally cies, offices, task forces and commissions. Prime minis- specific responsibilities be delegated to other spe- terial initiatives are juxtaposed against environmental cialized agencies such as the Privy Council Office, challenges and government power blocks, suggesting a the Treasury Board Secretariat and the Public Ser- need to pay greater attention to how public sector or- vice Commission. The last mentioned agency is ganizations are managed. The authors go on to de- concerned with the application of the merit principle. scribe how contemporary public administration studies The creation of the Civil Service Commission repre- have pointed to the complexities involved in public sented an attempt to isolate selected issues from politics. 7 sector organizations. They further suggest that this requires more analysis of what happens within public J.H. Knott and G.J. Miller have observed that the sector organizations. They also call for greater study of characteristics of bureaucracy associated with twen- organizational development and change within the tieth century organizations were fundamentally dif- public sector. ferent from those of nineteenth century organiza- tions which were staffed, for the most part, by ama- The Phidd & Dwivedi article presented in this issue teurs who were likely to be thrown out of office at ends in the 1980’s with the administration of Prime the next election. They further note that the deci- Minister . Part two will cover “Prime sions made by amateurs were conditioned by per- Ministerial Leadership, the Public Service and Admin- sonalities and politics rather than by formal, written istrative Reform in Canada: Public Sector Reforms rules. They have provided reasons for the emer- from the 1980’s to 2000 and Beyond”. Part two will gence of the characteristics identified by the Webe- appear in the Summer 2007 issue of this review . rian model of bureaucracy. 8 In a paper presented to the Canadian Political Science Association meet- ings in 1975, the present authors outlined several of those characteristics and identi- 1.0 PRIME MINISTERIAL LEADERSHIP, PUBLIC fied some of the then emerging SERVICE AND ADMINISTRATIVE REFORMS trends in Canada. More re- This paper is concerned with the role of executive cently, O.P. Dwivedi has leadership in public sector management. 1 It is espe- www.csl.uoguelph.ca 226 | CSL Leadership Review

investigated selected contemporary issues in a ment. Consequently, by the 1970s, there were seri- 1993 paper entitled “Public Service Reforms in ous demands for downsizing the public sector. By Canada For The Twenty-First Century.” 9 the 1990s, this had led to the formation of smaller cabinets and to the consolidation of several depart- 1.1 From Bureaucracy to Management: Manag- ments and agencies within broad functional areas. 16 ing Change in a Democratic Environment Given these issues there is a need to carefully ex- The growth in democratic systems of government amine a variety of contentious issues in public sec- has led to greater public participation in political tor management. parties and with increased pressures to control a The growth in the public sector was accompanied 10 growing Public Service. Political parties are es- by institutional tensions between political leaders pecially concerned with controlling the Public Ser- and the Public Service. This issue is a rather com- vice. This has led to the passage of special legisla- plex one especially in democracies because bu- tion and to major reorganization of government, as reaucracy, as an organizational form, had emerged reflected in the rationalization of the central agen- as a source of control over “political machines.” 17 cies, and in the expansion of the Cabinet Commit- This issue has been extensively addressed by Eva 11 tee System between the 1960s and the 1980s. Etzioni-Halevy in Political Manipulation and in Bu- The expansion in the “administrative state” be- reaucracy and Democracy. 18 She, among others, tween 1900 and 1975 had led to significant expan- has outlined a number of hypotheses concerning 12 sion in the number of public employees. It also the reciprocal needs of the Public Service and politi- led to the creation of a variety of new departments cal leaders. (She has utilized a functional theory of and agencies representing new constituencies in elites). In order to gain a better perspective on this the economic, scientific and social spheres, among issue we must go back to the operations of the po- 13 others. The Government of passed sev- litical system in the previous century. eral reorganization acts between 1966 and 1982 which significantly changed the structure of govern- The creation of the Civil Service Commission in ment and affected the policy-making process. By 1908, and its organizational development into the 1960s demonstrates the concern with controlling way of illustration, there were the following: the 19 Department of Industry Act in 1963; the Depart- patronage. At the same time, the necessity to im- ment of Manpower and Immigration Act in 1966; pose political control over the bureaucracy is re- the 1968-69 Act which established Industry Trade flected in the organizational development of se- and Commerce, Regional Economic Expansion, lected central agencies, the Treasury Board Secre- Energy Mines and Resources, among others; Em- tariat and the Privy Council Office, given their con- ployment and Immigration in 1976; and the Gov- cern with management in government and with po- ernment Reorganization Act in 1983 which affected litical management respectively. External Affairs and Regional Industrial Expansion. In the Canadian setting these tensions are evident The 1973 oil shocks introduced major structural in the works of J.E. Hodgetts and J.R. Mallory, problems in the economies of the western industri- among others. 14 They discuss the development of alized countries. 14 In Canada, it led to major prob- professionalism in the modern Canadian Public Ser- lems in fiscal federalism. As a result, the 1975 fed- vice through the passage of important pieces of leg- eral budget sent signals to the provinces that there islation in 1908, 1919, 1961 and 1967, respectively. would be major reforms in the allocation of re- In effect, they discuss the evolution of industrial re- sources. In 1977, the federal government passed lations legislation in the Canadian Public Service. the Established Programmes Financing Act They address issues such as the rights of public (EPFA). 15 Between 1975 and 1994 the Govern- servants and the manner in which ment of Canada experienced persistent deficits. these rights were gained. We This development led to a search for new ways of must review the managing the public sector within a deficit environ- www.csl.uoguelph.ca 227 | CSL Leadership Review

issues and roles of the Treasury Board of Canada, the some major sociological analysts who have reviewed Privy Council Office, and the Public Service Commis- the evolution of western institutions. sion in personnel management in Canada, especially R. Bendix has written extensively on this subject in as they have evolved between the 1960s and the publications such as: Work and Authority in Govern- 1990s. The central decision-making systems which ment and Industry and National-Building and Citizen- evolved between the 1960s and the 1990s were influ- ship. 20 The issue of the treatment of the Public Service enced by several royal commissions, task forces and is a most complex one which is usually intensified in consultants’ reports. Within the framework outlined by periods of poor economic performance. Bureaucracy J.E. Hodgetts, I. Sharkansky, D. Keeling and others, bashing is a well known phenomenon. 21 One issue we can perceive of the political system as one re- Period / Year Legislation, Institution and Mandate 1882 Civil Service Act (required examinations by an examining board) 1908 Civil Service Commission under the Civil Service Act 1918 Civil Service Commission mandate altered 1945 Royal Commission on Administrative Classification 1961 Civil Service Act passed and it continued the independence of the CSC, classified the role of the CSC and non-merit areas and it conferred on the staff associations the right to be consulted on matters of remunerations and on conditions of work 1967 i. The Public Service Staff Relations Act ii. The Public Service Employment Act iii. The Financial Administration Act 1992 The Public Service Reform Act, 1993

Table 1: Selected Legislative and Institutional Changes sponding to numerous environmental demands be- which emerged during the period under review was the tween selected historical periods such as the follow- rights, responsibilities and obligations of public employ- ing: 1867-1908; 1908-1919; 1919-1935; 1935-1945; ees. 22 These issues are usually addressed by political 1945-1962; 1962-1973; 1973-1984; and 1984-1994. sociologists and by legal scholars. By way of illustra- Specific organizational and policy changes occurred tion, Reinhard Bendix was concerned particularly with within each of the periods enumerated. The creation the democratic extension of rights to public employees. of either specific institutions or the passage of impor- More generally, he was concerned with the issues re- tant public personnel legislation should be noted. lated to citizenship in the political system. 23 Because of The evolution of selected central agencies demon- concerns with the issue of sovereignty there is always a problem with respect to the manner in which the state strates the struggles which have taken place in the 24 development of the modern Canadian Public Service. deals with its employees. Such issues were exten- The developments are also revealed in the passage of sively debated in the evolution of collective bargaining selected pieces of Public Service Legislation in 1908, legislation and in the creation of spe- cialized agencies to deal with the 1918, 1961, 1967 and 1992 respectively. They are 25 also reflected in the reports of several royal commis- associated problems. sions and task forces. We must review the analysis of www.csl.uoguelph.ca 228 | CSL Leadership Review

vestigations, both of which proposed major reforms Several public administration scholars have pointed 30 to the manner in which senior managers in the pub- in the Public Service. The reform movements lic sector are affected by international and domestic which led to the establishment of these commis- environmental factors in formulating public poli- sions and task forces demonstrate the influence of cies. 26 They have suggested that public personnel important sectors of society on the operation of gov- systems are very complex and that they have been ernment. The various studies also demonstrate the influenced by a worldwide trend toward democrati- influence of new ideas on the design and operation cization. Public personnel administration is influ- of government. enced by a variety of factors, including: the defini- Political scientists and public administration scholars tion and development of the merit system; profes- must attempt to address the strategies adopted by sional and managerial considerations; staffing phi- political parties while in opposition and those em- losophy and planning; systems affecting entry and ployed when they form the government. The role of examination; selection and advancement; tenure opposition parties as change agents represent a and turnover; job analysis and work structure; the most interesting dimension to the politics of institu- design of personnel organizations; leadership; staff tional reform and the politics of bureaucracy which development and training; work; leave; collective needs to be examined in greater depth. 31 A recent bargaining and unionism and retirement. 27 publication by Knott and Miller, using historical insti

The Glassco Commission represented the first serious attempt to rationalize the overall system of the Government of Canada according to principles of modern management. Accordingly, it attempted to establish distinct and separate functional responsibilities for the Privy Council Office, the Depart- ment of Finance and the Treasury Board Secretariat.

The organization and reorganization of government tutional analysis, has attempted to throw some light became a major task for the Prime Minister and on this subject. Their study suggests that we must Cabinet between the 1960s and the 1990s. It in- distinguish the strategies used by political parties to tensified with the appointment and report of the gain power from those employed while in office. Royal Commission on the Organization of the Gov- This issue is most important if we are to understand ernment of Canada (Glassco). 28 It is important to the relationship between political parties and the note that the Conservative Party was responsible Public Service. The authors have further noted: for this investigation into the Public Service. The Glassco Commission represented the first serious The reason democratic countries such as attempt to rationalize the overall system of the the United States had not developed a sci- Government of Canada according to principles of ence of administration was the pervasive modern management. Accordingly, it attempted to intrusion of politics into all areas of govern- establish distinct and separate functional responsi- ment, including the administration of policy. bilities for the Privy Council Office, the Department The use of administrative science to imple- of Finance and the Treasury Board Secretariat. It ment democratic political objectives thus also attempted to establish distinct functional re- depends on a careful differentiation, or 29 separation, between politics and admini- sponsibilities for departments. The Conservative 32 Party was also responsible for the Nielsen Ministe- stration. rial Task Force on Program Review and PS 2000: The Renewal of the Public Service of Canada in-

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1.2 Scientific Management Scientific manage- Scholars have used this neo-institutional approach ment, education and professionalism characterized to explain the shift from the study of traditional insti- principles and norms which revolutionized public tutions, behaviourism, rational choice and ultimately administration in the early stages of the 20 th cen- to the study of particular institutions. They suggest tury. The endorsement of professional norms, that a shifting coalition of interests can lead to the autonomy and systems of accountability in areas choice of specific institutional arrangements. They such as medicine, education, law, social work, po- have used historical data to explain a series of ad- lice and the military, depicted a major transforma- ministrative reforms, including the Nixon, Carter tion of democratic societies, and the roles which and Regan reforms in the United States. 34 The ap- experts perform in that process. 33 As a result, po- proach has been used to explain the reform of litical parties have had to develop strategies for budgeting and personnel management systems. accommodating expertise in the management of 1.3 Prime Ministerial Initiatives The above- contemporary governments. This requires that we mentioned approach can be endorsed to explain examine the relationship between political parties strategies used by the chief executive to formulate and the Public Service. By way of illustration, the administrative reform. To this end, several prime involvement of the state in the realm of health and ministers have attempted to reshape the system of government in Canada: (1) The Pearson initiatives in the 1960s. The passage of the 1962 and 1967 legisla- tions. 35 (2) The Trudeau initiatives between the 1960s and the 1980s with respect to the ra- tionalization of the central agencies and the Cabinet Committee System; 36 and (3) The Mulroney initiatives in the 1980s The Rt. Hon. Pierre Elliott Trudeau and the 1990s to downsize the Public Ser- vice, the creation of the Task Force PS 2000 th 15 and the passage of the Public Service Re- 1968-1979, 1980-1984 form Act. 37 welfare was most interesting and may be captured There are a number of new institutional develop- in the following sequence: the creation of the De- ments which have emerged because of the ten- partment of Health in 1918 in response to the war sions between political parties and the Public Ser- situation; the creation of the Department of Health vice; by way of illustration, the Public Service Com- and Pensions in 1928 in response to the veterans mission, the Pay Research Board and the Public pensions challenge; and the creation of Health and Service Staff Relations Board were established to Welfare in 1944 with the addition of family allow- deal with special problems associated with indus- 38 ances. The Department functioned as a dual one trial relations in the public sector. The institutional between 1944 and 1976 when it was integrated relationships have been shaped by several environ- th under a single deputy minister; later in 1992, Prime mental forces which emerged during the 20 cen- Minister created a Department of tury. 39 Human Resources in which the Department of Health and Welfare was integrated. In 1993, Health was separated from Human Resources.

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March and Olsen and Knott and Miller, 40 among oth- were opportunities to use government patronage to the ers, have all endorsed neo-institutionalism as a meth- advantage of the successful party machine. The odological framework for studying administrative re- abuse of political patronage was condemned by politi- form. They have all pointed to difficulties associated cal parties in opposition. Between the 1870s and the with the study of political science which emanated early 1900s there were serious debates over this is- from the endorsement of behaviouralism. They have sue. The development of scientific management prin- argued that it has led to the abandonment of the ciples led to a search for employment based on merit study of political institutions. They asserted that insti- and for efficient performance of tasks. Modern Public Service reform must be evaluated against these com- tutionalism was seen as “legalistic, historical and dry.” 44 The authors under review all emphasize the impor- peting political and administrative principles. In tance of studying the similarities in administrative re- 1908, the Government of Canada established the Civil Service Commission. In 1918, it embarked upon a forms across levels of government and within func- 45 tional areas. They have stressed the importance of system of position classifications. The expansion of

Periods Environmental Challenges (i) 1860’s-1908 -concern with patronage

(ii) 1908-1920’s -concern with training and merit

(iii) 1920’s-1940’s -classification systems affected by the depression ...new

(iv) 1940’s-1960’s -Keynesianism and the welfare state...active state

(v) 1960’-1970’s -growth and social expansion...new programs introduced

(vi) 1970’s-1980’s -fiscal shocks to the system...disrupted planning

(vii) 1980’s-1990’s -neo-conservatism...restraining government

(viii)1990’s-2000 -concern with / managing change in deficit environment

Table 2: Environmental Challenges studying the relationship between party machines and the Public Service between the 1920s and the 1960s the professional Public Service. Consequently, the led to major demands by public servants with respect to the rights of public employees to negotiate condi- institutional model has been most effectively applied 46 to the study of administrative reform. 41 Their study tions of work. These developments led to the pas- suggests that we should examine the origins, man- sage of the Civil Service Act, the Public Service Act, date and operations of our organizations before we the Public Service Employment Act and the Public contemplate reform. We should also endeavour to Service Staff Relations Act. ascertain the sources of administrative reform. 42 The developments in the design of the state and the Their work suggests that there are some consistent role which public officials perform in modern democ- patterns in the reform movements in the early 1900s, ratic states have revealed a number of issues related the 1930s, the 1960s, and the 1990s. to public sector administrative re- forms. Several prime ministers Patronage was a natural consequence of responsible have effected responses to selected 43 government. It was felt that the first fruits of power environmental demands. www.csl.uoguelph.ca 231 | CSL Leadership Review

Prime Minister Pearson instituted major reforms in introduced new concerns in the 1960s related to the Public Service legislation and in the formulation of rights, responsibilities and obligations of public em- economic and social policy in Canada during the ployees. The D’Avignon Task Force on Personnel 47 Management and the Merit Principle extensively dis- 1960s. The story of the effects of the Kingston 53 Conference and the revitalization of the Liberal cussed these issues in the late 1970s. The re- Party is well known. It provides a lesson as to how port identified the major contentious issues related political parties can effect change. The Liberal to industrial relations in the 1980s and beyond. The Task Force PS 2000: The Renewal of the Public Party had outlined a strategy for reform prior to 54 their election in 1963. 48 The Party leaders were Service of Canada took these issues in the 1990s. assisted by experienced and highly influential pub- The developments suggest that we should distin- lic servants. The Liberal party experience in the guish broader social and political demands coming from the society in general from the measures early 1960s suggests that political parties must 55 have a mission or a political agenda upon assum- adopted within the government to manage system. ing power. Prime Minister Trudeau’s rationalization The developments which emanate from the broader of the central agencies, his appointment of Michael society have led to a web of institutional arrange- Pitfield as Clerk of the Privy Council and the early ments to coordinate public personnel policies in the departure of the mandarins have been extensively 1990s and beyond.

The effects of the reports of the Royal Commission on Bilingualism and Bicultural- ism and the Royal Commission on the Status of Women are indicative of the influ- ence of broader societal forces on Public Service reforms. The significant expan- sion in the role of government as an employer introduced new concerns in the 1960s related to the rights, responsibilities and obligations of public employees.

49 discussed elsewhere. The turnover of senior Various initiatives to reform public bureaucracies deputy ministers between the 1970s and the 1980s 50 have led to several quests for technical efficiency, has been critically evaluated. The reforms the of experimentation with budget reforms and to a the 1960s and the 1970s represented an attempt to search for neutral competence with respect to per- manage the system with greater priority given to sonnel management reforms. 56 The most recent the input of politicians. The Trudeau years demon- analyses of both budgeting and personnel reforms strate the influence of personality and leadership have advocated the reassessment of several of the style on the Public Service. It also pointed to the above-mentioned norms and values which were es- significance of the background and professional poused in an earlier period. The analyses suggest experience of the Prime Minister on Public Service 51 that there are several issues and strategies involved reform. in any serious investigation of administrative re- 1.4 Royal Commissions & Other Reform form. 57 Our investigations to this point, suggest Initiatives The effects of the reports of the Royal that we must endeavour to distinguish between vari- Commission on Bilingualism and Biculturalism and ous dimensions of public sector institutional reforms. the Royal Commission on the Status of Women are indicative of the influence of broader societal forces on Public Service reforms. 52 The significant ex- pansion in the role of government as an employer

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The reform of the Public Service is a most complex to the roles of the Privy Council Office, the Treasury issue which cannot be isolated from problems in Board Secretariat and the Public Service Commis- society. There are major managerial challenges sion. 62 The Clerk of the Privy Council is now re- which are not necessarily solved by either reducing quired by law to present an annual report on the the size of the Cabinet or by consolidating depart- performance of the Public Service. 63 The Treasury ments and agencies. We must take into account Board Secretariat has adopted some new leader- the fact that we are concerned with administrative ship responsibilities, especially with respect to per- reforms within a democratic political environment. 58 sonnel. 64 It is important that scholars and practitio- To this end, greater emphasis must be placed on ners be cognizant of the fact that public personnel assessing problems of legitimacy and accountabil- management has proved to be a most difficult prob- ity. 59 It is from this perspective that our study sug- lem for the Public Service in the 20 th century. There gests that we should distinguish in a variety of are several reasons for the persistence of the prob- managerial roles within the public sector. These lems. First, there is the concern with patronage issues are currently reflected in a broad societal as which led to the establishment of an independent well as sectoral responses to the fiscal and expen- Commission in 1908. 65 Second, there is the need

There is the issue with respect to who is in charge of public personnel policies, especially with respect to the roles of the Privy Council Office, the Treasury Board Secretariat and the Public Service Commission...It is important that scholars and practitioners be cognizant of the fact that public personnel man- agement has proved to be a most difficult problem for the Public Service in the 20 th century.

diture policy changes instituted in recent years. 60 for political control of the higher Public Service The keen observer cannot avoid witnessing the which became most significant during the 1960s. 66 reversals in the size of the cabinet committee sys- We have pointed to the importance of isolating po- tem, the various problems with the integration of litical management roles from management within departments, the challenges of privatization and government and management of the economy. 67 the difficulties in instituting fiscal controls in a pe- This had led to the development of a specialized riod of major structural adjustments. More careful role for the Clerk of the Privy Council. Third, there scrutiny of the problems of public sector manage- is the concern with more efficient management of ment suggests that it is more than just a fiscal people throughout the Public Service. 68 The size agenda. There are several types of reforms occur- of government and the diversity of its employees ring which need to be distinguished and examined have led to unique problems. This had led to the critically: fiscal reforms, structural reforms, and expansion of the role of the Treasury Board Secre- program reforms. 61 The changes in the public sec- tariat with respect to the formulation of personnel tor during the past hundred years should alert us to policies. 69 There are special problems in govern- the fact that the role of the state has undergone ment relating to public personnel planning. 70 Fur- constant changes and adaptations and this makes ther, there are the specialized needs of departments administrative reform a major agenda of public sec- which require that deputy ministers be given the tor management in the 1990s and beyond. By way right to appoint the required personnel, given the of illustration, political science as a discipline must diversity of personnel needs within the public sec- give greater priority to the study of public personnel tor. 71 This fact suggests that we policies as an aspect of public policy. conduct case studies on the op- eration of departments. 72 How- There is the issue with respect to who is in charge of public personnel policies, especially with respect ever, there are potential dangers www.csl.uoguelph.ca 233 | CSL Leadership Review

with respect to fragmentation in the public sector. There are issues related to equal pay for equal Fifth, there is the contentious issue of training work, especially with respect to public versus private throughout the Public Service. 73 The Canadian sector employment. Public sector management re- Centre for Management Development (CCMD) has quires that wages and conditions of work be regu- embarked on some new leadership initiatives in the lated. However, the state is also expected to set training area. The establishment of CCMD has proper standards of industrial relations in relation to raised the issue of the levels, variety and types of those followed in the society and this phenomenon training required throughout the Public Service of has brought personnel and financial management policies to the forefront of public sector manage- Canada. The foregoing suggests that there are 81 several personnel systems throughout the Public ment in the 1990s. It is the responsibility of the Service which suggest that more specific studies political party to designate the role of the state in should be conducted in this area. The population society. The Public Service will then operate within in general is usually skeptical of elite training, espe- the parameters established by the political party in cially in societies where there is very little commit- power. ment to public goals and values. Public personnel There are special problems of legitimacy and ac- policies are most complex and they defy simplistic countability which are present in the public sector. 82 solutions. 74 One approach is to focus on the roles performed by Desmond Keeling, in a study entitled Management political parties, prime ministers, the cabinet minis- in Government , has utilized systems analysis to ters and deputy ministers in managing the public demonstrate some of the possible distinctions sector. This study suggests that we make a more which can be made with respect to organization concerted effort to isolate the variety of managerial and management within the public sector. 75 He responsibilities and the multiplicity of roles per- suggests that the public sector consists of the fol- formed in the public sector. It further suggests that lowing subsystems with distinct value systems: the we need to distinguish the various aspects of re- forms within the public sector. There are different managerial, the diplomatic, the judicial, and the ad- 83 ministrative. 76 These systems represent different types and levels of reforms. There are also sev- ways of thinking and behaving within the public eral strategies of reforms which must be examined sector. Both Keeling and Denhardt suggest that more carefully. This paper suggests that we de- the public sector is concerned with managing velop an agenda for research. change in a democratic environment. 77 The Chré- Given these concerns, political science as a disci- tien government has designated a minister with pline cannot ignore the challenges faced by public responsibility for the Public Service. 78 There are sector organizations as we approach 2000. We even suggestions of a new era of administrative- have paid a lot of attention to leaders during election federalism emerging in Canada. campaigns. 84 However, we have not paid enough Public officials have always performed important attention to the strategies which political leaders roles in federal systems of government. However, have adopted to manage the public sector while in they do so in a system based on competition be- office. This study suggests that we must pay tween political elites. 79 The fact that the parlia- greater attention to how public sector organizations mentary system of government operates at both are managed. Contemporary public administration the federal and provincial levels has meant that the studies have pointed to the complexities involved in issue of the relationship between political parties, public sector management. This requires more politicians and the Public Service permeates the analysis of what happens within public sector or- overall governmental system in Canada. Two re- ganizations. We need to study cent publications have alluded to these relation- organizational development and ships: Political Management In Canada and Tak- change within the public sector. It ing Power: Managing Government Transitions. 80 suggests that we examine the www.csl.uoguelph.ca

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organizational development of the major central agencies as well as strategic line departments. By gated. Public sector reorganizations are usually a way of illustration, we need to look at the realign- result of competition and conflict between divergent ment of the roles of the central agencies; the Privy interests and organizations. The same principles Council Office, the Treasury Board and the Public have been used by designers of government to ex- Service Commission. In this regard, we can effec- pand and reduce the number of government agencies tively distinguish political management roles per- between the 1960s and the 1990s. Consequently, we formed by the Privy Council Office from manage- must critically evaluate and compare the Lester Pear- ment within the government and management of the son and Kim Campbell reforms under the criteria set economy performed by the Treasury board Secre- out by scholars such as Peter Self and J.E. Hodgetts, tariat and the Department of Finance respectively. It among others. is most important to note that the instutional reforms The restructuring of government is usually in re- which occurred during the 1930s and the 1940s can sponse to competing pressures from the society and be effectively explained within the approach adopted the economy, among others. The decisions made by in this study. the Prime Minister and Cabinet reflect the chosen po- Between the 1940s and the 1960s, Keynesianism litical resolution to the conflict. These conflicts are and the endorsement of the welfare state combined fought at the political, managerial and technical levels to produce an alliance between the Public Service, of the organization. We should discuss these issues various societal interests and political parties. 85 when we debate public sector reform. Several Prime Consequently, the Public Service expanded with the Ministers have restructured their Cabinet, the Cabinet creation of new departments, boards, commissions Committee System, and have changed the depart- and regulatory agencies. These issues are usually mental arrangements to reflect new priorities. Below addressed by scholars concerned with the manage- we relate the changes to different leadership styles. 86 ment of economic and social policies. By way of il- Accordingly, we should critically evaluate the issues lustration, the principles of organization theories and concerns which led to the policy and administra- which influence the design of government have been tive reforms of the 1960s, 1970s, 1980s and 1990s. well known for quite some time. Peter Self, Adminis- trative Theories and Politics , had alerted us to the 2.0 PERSPECTIVES ON LEADERSHIP AND AD- criteria for allocating functions in government and MINISTRATIVE REFORM the competition which develops between goal orien- There are at least three important reasons for focus- tation and functional orientation. Self notes that ad- ing on the relationship between political leadership aptation to functional change follows three main and administrative reforms in this study. lines: First, there is the issue with respect to why chief ex- (a) A horizontal proliferation of depart- ecutives have been concerned with administrative ments and agencies at each principal level of reform. 87 A related issue impinges on the contribu- government, as a response to functional spe- tion of administrative sciences to our understanding cialization. At a later stage the agencies thus of administrative reforms. Some major contributors in created are often recombined into larger de- this area are Philip Selznick, Gerald Caiden, march partments for functional and managerial rea- and Olsen, Victor Thompson and Guy Peters, 88 sons; among others. The various contributors suggest that (b) A vertical shift of specialized func- leaders in the political arena must formulate policies tions from lower to higher levels of govern- in a manner congruent with the environment in which ment; and they are working. The approach suggests that the political parties scan the environment and develop (c) A creation of semi-detached agen- appropriate policies to meet the cies or boards to carry out particular tasks. societal challenges. 89 Political His analysis suggests that the link between political parties are major agents of and managerial pressures must be further investi- change. www.csl.uoguelph.ca 235 | CSL Leadership Review

Second, the significant growth of the public sector, greater danger of deteriorating. analyzed elsewhere, and the concomitant need to Third, the study is important because a administra- staff the Public Service have led to tensions in the tive reform and the management of the public sec- interrelationship between prime ministers and bu- tor is increasingly being conducted in an executive reaucratic actors; especially those responsible for dominant parliamentary system of government. 93 90 staffing senior positions. The election of political Despite the recent constitutional reform initiatives parties with different ideologies has also led to con- (the 1982 Constitution Act), very few initiatives have cern with respect to change and adaptation of the been taken to control the executive branch. As Public Service, especially the senior Public Ser- Johnson and Cheffins remark. “Surely in the review vice, for their support of the political leaders in of- of Canada’s constitutional structure nothing calls 91 fice. These developments suggest that we relate out more for reform than the executive dominance what we know about prime ministers to the organi- of the system by the cabinet.” 94 In the Canadian zation and management of the Public Service. political system power has shifted inexorably in the David Zussman has suggested that the manner in direction of the cabinet and increasingly in recent which the executive branch manages the Public years to the first ministers, both at the federal and Service is determined by the following three con- provincial levels. We must be conscious of the role siderations: of role of the Prime Minister in ‘Parliamentary Re- form.’ 1. by the prime minister’s philosophy to- wards the Public Service; J.E. Hodgetts has identified some important factors which have contributed to executive dominance in 2. by the political party experience with the Canada. First, while it is clear that parliament must Public Service; and authorize the creation of a department, it is equally 3. by the size of the federal Public Service. clear that the executive determines when the de- partment will begin to function. Second, the execu- In recent years, the size of the Public Service has tive is granted broad powers to deal with organiza- been a major issue. The above mentioned consid- tional matters under a short stature entitled “The erations are most useful in assisting us in explain- Public Service Rearrangement and Transfer of Du- ing the strategies used by selected prime ministers ties Act.” The Act dates back to 1918 and 1925. to implement administrative reforms. Third, the day-to-day domination of organizational Nicole Morgan has formulated a number of hypho- matters stems from the simple fact that only the ex- theses with respect to the growth of the public sec- ecutive branch is interested in problems of tor between the 1940s and the 1980s. 92 The first “organization and methods” and “systems analysis.” hypothesis was that the Public Service had a con- More significantly, it is only the executive branch scious role to absorb surplus labour when the WW that is directly concerned with adapting the organi- II veterans returned home and after 1965 when the zation to respond to various environmental chal- first wave of the postwar baby-boom hit the labour lenges. 95 In recent years, a small group within the market. The second hypothesis was that growth Public Service has been concerned with such mat- was influenced by the mentality of the newcomers ters. 96 The Machinery of Government Branch – both groups entered the labour force with differ- within the Privy Council Office has performed an ent attitudes to the society. The third hypothesis important role in redesigning government. These was that the expansion which occurred produced factors suggest that we carefully examine the imbalances between the capital region and the rest changing relationships between the state, economy of the country and between the sexes. And the and society. fourth hypothesis was that by the 1990s there would be great confusion and despondency in the Public Service; in that the Public Service was in www.csl.uoguelph.ca 236 | CSL Leadership Review

2.1 From Patronage to Meritocracy, Prime Min- Let us briefly recap the manner in which public per- isterial Ambivalence and Personnel Policy Plan- sonnel issues have been dealt with. The first civil ning The evolution of public personnel policy in service Act was passed in 1868. 100 Jeffrey Simp- Canada has led to a fragmented system with no son’s Spoils of Power: The Politics of Patronage integrated approach to coordinating resources for and Discipline of Power has extensively reviewed the diverse components of training, personal and 97 the partisan dimensions of this issue. The matter of career development of federal public servants. merit quickly became an issue of concern. In 1896, The lack of integration is related to several compet- the Treasury Board was made a committee of the ing values and forces which have influenced public th 98 Privy Council primarily responsible for Finance. personnel policy during the 20 century. Succes- Revenue and Expenditures on Public Accounts. Its sive reform proposals in the public personnel area responsibilities were soon expanded to include mat- were not implemented until the 1960s and others ters related to appointments, compensation, and have persisted into the 1990s. working conditions for public servants. J.E. Hodgetts has identified five important institu- tional considerations which delayed the efforts of civil service reform prior to the 1960s. • First, there was the doctrine of sovereignty which prevented the state from negotiating with its employees; • Second, civil service was a predominantly hierarchical structure which inhibited the ap- propriate negotiation of issues; • Third, the efforts to eliminate patronage had led to a centralized structure for policing the merit system and a politically neutralized Sir bureaucracy which had closed-off access to 8th Prime Minister of Canada management; 1911-1920 • Fourth, the classification system which had emerged out of the popularity of Taylorism The beginnings of the discussion of the problem of was perceived as the prime instrument for civil service reform in Canada were in a committee preserving the merit system. Yet the same 101 of the House of Commons in 1877. An amend- system of classification had prevented public ment to the Civil Service Act 1882 required that can- employees from organizing themselves ap- didates for a large number of positions in propriately. Thus until the 1960s, organized pass qualifying examinations set by an examining civil servants spoke with many tongues; and board. The minister was still empowered to appoint • Fifth, confusion over the proper locus of the candidate of his own choice from an eligible list managerial authority had prevented n e g o - created by the examining board. In 1907, a Royal tiation between civil servants and manage- Commission concluded that the quality of the Public ment. The 1967 Act conferred upon the Service had actually declined in the twenty-five Treasury Board the undisputed position as years during which the system had operated. Sir the real employer and presented the various Robert Borden had made the quality and perform- civil service organizations with a focal point ance of the Public Service a major for negotiations which would influence nego- election issue. It was not surpris- tiations into the 1970s and beyond. 99 ing to see reforms instituted shortly thereafter. www.csl.uoguelph.ca 237 | CSL Leadership Review

At the turn of the 20 th century, early initiatives were A new Civil Service Act (1918) placed the entire taken by Sir Robert Borden to establish a profes- civil service under the Civil Service Commission, sional Public Service in Canada. Professor J.R. stripping the Treasury Board and departments of Mallory has observed: any formal power to control the selection, organiza- tion, renumeration, grading, or career development Of all the Prime Ministers of Canada, only of their staffs. Under the 1918 Act, the Civil Service Sir Robert Borden displayed any serious Commission operated under two principal interest in the cause of civil service re- branches. The Examination Branch dealt with re- form. In and out of office he was a tireless cruitment, examination and placement, and to an advocate of the introduction of methods extent with promotions. The Investigation and Or- and sound principles into the Public Ser- ganization Branch dealt with questions such as the vice. He found it an antiquated structure need for new positions and replacements, the clas- distinguished by no discernible operating sification for positions, rates of pay and procedural principles. He left it a service modeled on methods and organization. The passage of the scientific methods for the management of 1918 legislation commenced a jurisdictional battle government in a modern democracy. That between the Civil Service Commission, as it was the principles of organization sold to his then called, and the Treasury Board Secretariat. 104 government by high-powered American The classification system has created a fragmented consultants were based on theories of or- Public Service which contradicts the objective of ganization no longer accepted as valid, formulating a comprehensive personnel policy with and that the recommendations of the the appropriate flexibility required in a changing so- consultants were unsuited to the condi- ciety. It will be demonstrated later that the 1992 tions of the Public Service at the time are 102 Public Service Reform Act introduced measures to perhaps beside the point. correct this problem. There is the issue of the ne-

Of all the Prime Ministers of Canada, only Sir Robert Borden displayed any serious interest in the cause of civil service reform. In and out of office he was a tireless ad- vocate of the introduction of methods and sound principles into the Public Service.

A 1908 Act created a Civil Service Commission cessity of having a more flexible and adaptive pub- which was to set examinations for many posts in lic personnel system. the “inside” service (employees in the departments 2.2 The Strengthening of the Treasury Board in Ottawa) although similar reform in the “outside” Secretariat During the Depression service was to come much later. The Civil Service Commission was given independent tenure similar With the strong powers given to the Civil Service to that of the judiciary and recruitment by examina- Commission, the Treasury Board performed a lim- tion in future was to be based on competitive ex- ited role between 1908 and the 1930s. Under R.B. amination. In 1918, the Act was amended and it Bennett, the Treasury Board Secretariat adopted a reduced the tenure of the three commissioners to tightfisted approach to expenditure and personnel ten years. 103 management. The prime minister In 1918, sweeping administrative reforms patterned took responsibility for the after the American experience were implemented.

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Prime Ministers and the Major Influence on the Public Service & Administrative Reform

Selected Prime Minister Major Influence on Public Service Reform

i. Sir Robert Borden • Concerned with quality of the Civil Service. Merit System introduced

ii. William Lyon Mackenzie King • Increased the hiring of intellectuals in the Public Service. Established the Royal Commission on Administrative Classification (Gordon Commis- sion)

iii. R.B.Bennett • Fiscal conservative...stringent controls… balanced budget

iv. Louis St. Laurent • Gordon Commission on Canada’s Long Term Economic Prospects

v. John D. Diefenbaker • Critical of the Public Service...established Glassco Commission which emphasized management within government

vi. Lester B. Peerson • Introduced legislation to improve conditions of work , etc….Royal Commission on Bilingualism and Biculturalism, Status of Women vii. Pierre Elliott Trudeau • Political management improved the Cabinet Committee System...Official Language Act passed...Charter of Rights and Freedoms

viii. Brian Mulroney • Nielsen Task Force...neo-conservatism… down- sizing...deregulation...PS 2000 Task Force ix. Kim Campbell • Announced the downsizing of Cabinet and the reductions of government, including the creation or remanding of portfolios of Industry and Sci- ence, Human Resources and Labour, Agriculture and Agrifood, Natural Resources, Canadian Heri- tage, Government Services, and Public Security

x. Jean Chretien • Contributions to the Public Sector in Program Review and Getting Government Right ...over- sight of the creation of the Canada Customs and Revenue Agency, the Canadian Food Inspection Agency, and the Parks Canada Agency, and an- nouncement of the formation of the Task Force on Modernizing Human Resources Management in the Public Service

Table 3: Prime Ministers and their Major Influence on the Public Service and Administrative Reform

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Department of Finance and as a result, was re- purposes. sponsible for the activities of the Treasury Board. It The second innovation involved creating several was understandable that the role of the Board government Councils: the Economic Council of 105 would expand thereafter. Canada (1963), the Science Council of Canada New demands for cleaning up the federal govern- (1966), and the National Council of Welfare (1968). ment system of appointment led the Mackenzie They were the first permanent organizations dedi- King government to appoint a Royal Commission cated to public inquiry in Canada. The Economic on Administrative Classification (the Gordon Com- Council was to be a ‘central planning Council’ in- mission) which reported in 1946. 106 The Commis- tended to coordinate all the planning that goes on in sion found that there were not enough people of the Canadian economy. The Liberal party at the high caliber in the middle and senior levels of the time believed that there should be more coordina- Public Service. It also found that there were over- tion among industry, labour, and government in the lapping of duties and responsibilities between the formulation and implementation of economic policy Civil Service Commission and the Treasury Board. led by the federal government. Lester Pearson ob- served that the Economic Council “might be able to While there were no major changes in managerial avoid the proliferation of planning organizations.”108 philosophy of personnel between 1918 and 1946, it should be noted that political interference contin- The establishment of several external public en- ued in the civil service. Selected sections of the quiry agencies was consistent with two trends of civil service were still subject to political appoint- the early 1960s: increasing the distance of policy ment. inquiry from government, and housing that capacity in permanent institutions. In addition to the internal It is important to note that the Liberal and Conser- changes in government, the number of economic vative Parties both used Royal Commissions to and social policy research bodies external to the influence change in the public sector between the Government of Canada significantly increased 1940s and the 1960s. Walter Gordon led the Royal thereafter. They were considered bold initiatives in Commission on Administrative Classification in innovation at the time. 1946. He again led the Royal Commission on Can- ada’s Long Term Economic Prospects in 1957. A.D.P. Heeney was asked by Prime Minister St. The Diefenbaker government established the royal Laurent to be the head of the Civil Service Commis- commission on the organization of the Government sion. He reported to a Conservative government of Canada in the late 1950s. It is possible to iden- under Diefenbaker. Prime Minister Diefenbaker tify a few change agents who influence the organ- appointed a Royal Commission to investigate the izational development of the Canadian Public Ser- operation of the Public Service. The Diefenbaker vice. government passed a new Civil Service Act in 1961. 109 It clarified the jurisdictional influence of the In an earlier paper, R.W. Phidd pointed out that Treasury Board under the Finance Administration during the late 1950s and 1960s, the federal gov- Act. However, it carried forward the independent ernment became more actively involved in eco- role of the Civil Service Commission and reaffirmed nomic and social policy in Canada. 107 This period its responsibility for the merit system. The Civil was also noted for structural innovation within the Service Commission was given the exclusive right government, and for innovations in public inquiry. to classify positions. It will be demonstrated later The first innovation followed the election of a Con- that by the 1990s the classification system had servative government led by in grown very complex and had to be 1957. To counter the advice of suspect officials, he simplified. turned to royal commissions for policy guidance, which had previously been used for investigatory

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The Act clarified the role of the Civil Service Com- The Liberal government of Lester B. Pearson was mission in the non-merit areas and it gave staff as- committed to the introduction of collective bargain- sociations the right to be consulted on conditions of ing in the Public Service and he subsequently intro- employment. Industrial relations issues continued to duced legislation which led to the passage of the affect the Public Service during the 1960s and it was Public Service Staff Relations Act. 112 Thereafter, the one of the major issues in the election campaign in Treasury Board Secretariat acted as the govern- 1963. ment’s employer. 2.4 The 1967 Public Service Reforms Three pieces of legislation approved by parliament in 1967 culminated the evolution of public personnel reforms which had commenced in 1908 with the establish- ment of the Civil Service Commission. The three pieces of legislation were: 1. The Public Service Staff Relations Act, 1967; 2. The Public Service Employment Act, 1967; and 3.The Financial Administration Act, 1967. 113 The passage of these three pieces of legislation

The Rt. Hon. John Diefenbaker represented a relatively comprehensive reform of 13th Prime Minister of Canada public personnel policies in Canada which lasted into the 1990s. 1957-1963 2.5 The D’Avignon Task Force and the Lambert

Commission, 1979: Continued Criticisms of the 2.3 The Glassco Commission and Its Endorse- Public Personnel System The D’Avignon Task ment of Management The Glassco Commission Force on Personnel Management and the Merit Prin- outlined a framework for management with the ciple provided the first comprehensive review of per- delegation of authority to selected central agen- sonnel policies in the Public Service following the cies. 110 It suggested that the Privy Council Office 1967 legislation. 114 It reported during the short-lived under the Clerk of the Privy Council was to be re- Clark administration and recommended a compre- sponsible for general political direction. The De- hensive approach to the management of human re- partment of Finance would be responsible for eco- sources within the Government of Canada. It em- nomic policy. The Treasury Board Secretariat phasized the fact that personnel management can- would be responsible for personnel, administrative not be removed from the context of the overall man- procedures and financial management. Accord- agement of the Public Service. It recommended a ingly, the Secretariat was to be organized into the number of reforms encompassing the following ar- following branches; Program, Personnel and Ad- eas: merit, collective bargaining, an adaptable per- ministrative. 111 Between 1962 and 1967, a Bureau sonnel management system, equal opportunity from of Government Organization (BGO) was formed to various elements of society, political participation by implement the recommendations of the Glassco public employees, and the reallocation of roles and Commission. Accordingly, the recommendations responsibilities between the central were implemented by career public servants. In agencies to remove confusion and this regard, the influence officials such as George contradictions inherent in the then Davidson must be mentioned.

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existing structural framework. 115 tional interaction. Brian Chapman in The Profession of Government , has described the manner in which In an indirect way, the Mulroney government which these institutional relationships developed in Euro- followed in the 1980s was interested in investigat- pean countries during the late 1800s and the early ing alternative styles of management (the role of 1900s. 120 The uneasy relationship between the Macmillan from in the Prime Minis- prime minister and the Public Service has shaped 116 ter’s Office). The Lambert and D’Avignon re- the appointment process. Some of these issues ports were both critical of financial and personnel were alluded to in correspondence between management practices in the Government of Can- Mackenzie King and Arnold Heeney. 121 Conse- 117 ada. Consequently, the post-Lambert/D’Avignon quently, the appointment of, and the roles per- investigation ushered in new management strate- formed by, the Clerks of the Privy Council have be- gies and productivity initiatives such as the follow- come important in shaping the relationship between ing: the prime minister and the Public Service. As an • Focus on the Personnel Community; aside, it should be noted that there were some sig- nificant public servants who influenced the relation- •The Response to Lambert: Accountable ship between two groups, for example, O.J. Skelton, Management; Clifford Clark, Arnold Heeney, R.B. Bryce, R.G. Robertson and , among others. •The endorsement of D’Avignon’s System Approach of Management throughout the Canada provides an example of the role of the Pub- Public Service; lic Service in the operations of the political system. It also provides an illustrative example for newly de- •The endorsement of a Human Resources veloping states with respect to relatively stable insti- Management System: Multi-year Human tutional development. The relationship between po- Resources Plans (MYHRP); litical parties and the Public Service and the need •The Policy and Expenditure Management for complementary relationships between the politi- Systems (PEMS); cal and the Public Service elites. In this regard, we must examine the influence of se- •The establishment of the Task Force PS lected senior public servants on Canadian public 2000; sector management. Between 1957 and 1963, the •The passage of the Public Service Reform Diefenbaker years, and between 1984 and 1993, Act, 1992; and the Mulroney years, there have been selected ex- periences which have thrown some light on this re- • The endorsement of Wage Policy Initia- 118 lationship. It must be emphasized that administra- tives. tive reforms have been significantly influenced by 2.6 Toward 2000 and Beyond: The Public Ser- the public service itself. The strategy outlined by vice Reform Act, 1992 By the 1990s, the Prime Prime Minister Jean Chrétien is also most interest- Minister and Cabinet had responded to a political ing. Overall, the leadership changes effected in the and socio-economic environment fundamentally Privy Council Office, the Department of Finance and different from that of the early 1900s. PS 2000 and the Treasury Board Secretariat must be critically the ensuing legislative reforms are expected to cre- examined. ate a Public Service operating through technologi- The Public Service Reform Act, 1992, 122 has at- cal and cultural revolution which is consistent with 119 tempted to clarify some of the institutional relation- the needs of the next century. ships as they affect the perform- To this point, this study has demonstrated that the ance of selected officials and cer- relationship between prime ministers and the Pub- tain key organizations such as the lic Service has been shaped by historical institu- Privy Council Office, the Treasury www.csl.uoguelph.ca 242 | CSL Leadership Review

Board Secretariat, and the Public Service Commission. Several considerations and issues have influenced the Let’s review some of the most important issues which changes made in the Public Service Reform Act, includ- have emerged from the passage of the Public Service ing the following: Reform Act. It should be noted that there has been 1. the recommendations in the White Paper PS some democratization of public personnel management 2000: The Renewal of the Public Service of Canada, issues in recent years.

Clerks of the Privy Council and Secretaries to the Cabinet Clerks of the Privy Council: William Henry Lee (July 1, 1867-June 30, 1872) William Alfred Hinsworth (July 2, 1872-January 7, 1880) Joseph Oliver Cote (January 13, 1880-April 24, 1882) John Joseph McGee (May 20, 1882-May 5, 1907) Rodolphe Boudeau (May 6, 1907-August 14, 1923) Ernest J. Lennie (August 14, 1923-January 1, 1940)

Clerks of the Privy Council and Secretaries to the Cabinet A.D.P.Heeney (March 25, 1940-March 14, 1949) N.A.Robertson (March 15, 1949-May 31, 1952) J.W.Pickersgill (June 1, 1952-June 11, 1953) R.B.Bryce (January 1, 1954-June 30, 1963) R.B.Robertson (July 1, 1963-January 15, 1975) Peter Michael Pitfield (January 16, 1975-June 4, 1979) (June 5, 1979-March 10, 1980) Peter Michael Pitfield (March 11, 1980-December 9, 1982) Gordon F. Osbaldeston (December 10, 1982-August 11, 1985) Paul M. Tellier (August 12, 1985-June 30, 1992) Glen S. Shortcliffe (July 1, 1992-March 27, 1994) Jocelyn Bourgon (March 28, 1994-January 17, 1999) (January 18, 1999-May 12, 2002) (May 13, 2002-March 5, 2006) Kevin Lynch (March 6, 2006-present)

Figure 1: Clerks of the Privy Council and Secretaries to the Cabinet

While the Public Service Reform Act (Bill C-26), which tabled in December 1990, including the recommenda- amended the Public Service Employment Act, applies to tions of the task forces which preceded it; the entire Public Service, it is the Public Service Com- 2. consultations with the various departments mission which is most affected by the changes. 123 The and the unions which included the Treasury Board Secre- Act also amended the Public Service Staff Relations Act tariat and the Public Service Commission expertise in the which had established a system of collective bargaining personnel area; and and had provided for a system of grievance adjudication in the federal Public Service. The legislation had pro- 3. the cumulative knowledge vided the framework within which various rights and re- gained from all the recent court deci- sponsibilities of participants to collective bargaining were sions affecting staffing in the Public to be exercised. Serivce. 124

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Act, applies to the entire Public Service, the Public Service Commission would be the organization Deputy Ministers of Finance most affected by the changes. John Langton (May 12, 1870-July 31, 1878) The key elements to the PSRA are 125 : John Mortimer Courtney (August 1, 1878-Nov. 1, 1906) 1) confirmation of the PSC’s role in recruitment, Thomas C. Boville (Nov. 1, 1906-March 31, 1920) promotions, appeals, auditing and training; John C. Saunders (April 1, 1920-April 4, 1930) 2) reaffirmation of merit as the essential princi- William Clifford Clark (Oct. 24, 1932-Dec.27, 1952) ple on which must be based the selection of public servants. Kenneth W. Taylor (Jan. 1, 1953-June 30, 1964) The Act had to extend the principle to adjust to Robert B. Bryce (July 1, 1964-March 31, 1970) the present and future work context. For exam- Sol Simon Reisman (April 1, 1970-March 31, 1975) ple, a new concept, individual merit has been Thomas K. Shoyama (April 1, 1975-Jan. 31, 1979) added to relative merit to provide more flexibility and bring this principle in line with today’s reali- William C. Hood (Feb. 1, 1979-Sept. 1, 1979) ties. The assessment of candidates on the ba- Grant L. Reuber (Sept. 15, 1979-March 25, 1980) sis of standards of competence (individual Ian A. Stewart (March 26, 1980-Oct. 31, 1982) merit) rather than against the qualifications of other applicants for the same position (relative Marshall A. Cohen (Nov. 1, 1982-August 31, 1985) merit); strengthening of the merit principle by Stanley Hartt (Sept. 1, 1985-April 31, 1988) specific reference in the legislation to the PSC’s F.W.Corbet (May 1, 1988-July 31, 1992) authority to conduct audits and investigations David A. Dodge (Aug. 1, 1992-July 13, 1997) on any matter within its jurisdiction; Scott Clark (July 14, 1997-March 19, 2000) 3) specific legal authority to provide employ- ment equity programs aimed at improving the Kevin Lynch (March 20, 2000-Sept. 10, 2000) employment and career opportunities of mem- Ian Bennett (Nov. 1, 2004-June 12, 2006) bers of disadvantaged groups; Rob Wright (June 12, 2006-present) 4) improvements aimed at simplifying the staff- ing process, including those concerning trans- fers and eligibility lists. Figure 2: Deputy Ministers of Finance, 1870—present From a management perspective, the Act must have evolved to accommodate the flexibility managers need in their operations. New initia- Central to the thrusts of PS 2000 is the legislative tives, such as operating budgets and Special reforms that will define and enable the flexibility for operating Agencies, are more fluid structures of a ‘cultural revolution’ within the Public Service. The administration and need newly acquired au- existing Public Service Employment Act dated from thorities to deploy human resources faster ef- as far back as 1967. A quarter century later, it was fectively and with minimal cumbersome ac- no longer capable of ensuring the merit principle in countability to third parties. all staffing needs. An appropriate substitute to merit Deployment. In the amended Act, a deploy- has yet to be found and it remains the cornerstone ment is defined as the trans- of the new Act. fer of an employee from one Although the Public Service Reform Act (Bill C-26), position to another at the which amended the Public Service Employment same group and level, www.csl.uoguelph.ca 244 | CSL Leadership Review

Chairmen and Presidents of the The relationship between political parties and the Public Service is an issue of major importance in the Public Service Commission of Canada analysis of modern governments. Eva Etzioni- Halevy’s analysis of the issues is worthy of special Hon. William Roche 1917-1935 attention. She has published two fascinating books Charles Bland 1935-1955 on this subject: Political Manipulation and Adminis- trative Power: A Comparative Study and Bureauc- Stanley Nelson 1955-1957 racy and Democracy: A Political Dilemma. Douglas Arnold Heeney 1957-1959 Yates has also addressed this issue in the United Mr. Justice Samuel Hughes 1959-`963 States in his study entitled Bureaucratic Democracy. Robertson MacNeil 1963-1965 Administrative reform must be examined within the context of political parties, regimes, personalities John Carson 1965-1976 and prime ministerial styles. The prime minister Edgar Gallant 1976-1985 performs several roles as leader of the governing party, head of the state and leader of the Public Ser- 1985-1990 vice, notwithstanding the fact that he may delegate Robert J. Giroux 1990-1994 this role to a particular minister. The effective func- tioning of both political parties and the Public Ser- Ruth Hubbard 1994-1999 vice is a sine qua non to the Scott Serson 1999-2003

Maria Barrados 2003-present

Figure 3 Chairmen and President of the

Public Service Commission of Canada

or to an equivalent group and level approved

by the Commission – transfer meaning here separation from the position previously held. A deployment is not an appointment and does not result in a promotion;

5) fair and equitable treatment of public ser- vants, as shown by the fact that the probation- ary period would apply to an initial appoint- ment only, and the right of persons who are laid off to priority appointment. The Act must enable all parties concerned to strike a balance between more flexibility for managers Maria Barrados , current Chair & President, Public and guaranteeing that the rights of public servants Service Commission of Canada, delivering keynote are respected. Except in cases where it is a condi- address at CSL International Conference on tion of appointment, an employee cannot be de- Leadership in the Public Sector , May 2007 ployed without the individual’s consent. This is a major aspect of the deployment section of the Act which will surely have ramifications for years to come.

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healthy functioning of a modern democracy. 126 The Commissioners of Public Service of Canada since 1908 process has been affected by the inability of political Dr. Adam Shortt 1908-1917 parties to develop comprehensive policy strategies between elections. This study suggests that we ex- Lt.Col.Michel-Guy LaRochelle 1908-1926 amine carefully the strategies used by the Liberals Clarence Jameson 1917-1926 and the Conservatives between the following peri- Dr. Newton MacTavish 1926-1933 ods: 1957-1963, the Diefenbaker administration; 1963-1968 and 1979-1984, the Trudeau (Clark) ad- Joseph-Emile Tromblay 1926-1933 ministration; and 1984-1993, the Mulroney Adrien Potvin 1933-1942 (Campbell) administration. 127 Charles Bland 1933-1935 While scholars have isolated elements of prime min- James Stitt 1935-1945 isterial leadership style and the manner in which they achieved power, they have not examined the strate- Arthur Thivierge 1942-1947 gies used within the government to deal with the Stanley Nelson 1946-1955 Public Service. We suggest that scholars examine Alexandre Boudreau 1948-1957 more carefully the dimensions of prime ministerial leadership related to the formulation of political priori- Ruth Addison 1957-1968 Paul Pelletier 1957-1963 John Boucher 1963-1965 Sylvain Cloutier 1965-1967 Yves Labont 1968-1969 Charles Lussier 1970-1976 Irene Johnson 1971-1976 John Edwards 1976-1982 Anita Szlazak 1976-1982 Jennifer McQueen 1982-1985 Rt. Hon. Kim Cambell Treffle Lacombe 1983-1988 19th Prime Minister of Canada 1993 Pierre Lesaux 1986-1989 Gilbert Scott 1988-1994 ties, the appointment of senior officials in government Ginette Stewart 1990-2000 and the complex relationships which develop be- tween political and administrative actors in the exe- Mary Gusella 1995-1999 cution of these tasks. We must also examine the Michelle Chartrand 2000-2003 influence of each prime minister on the design and Nurjahan Mawani 2001-2003 organizational culture of the Prime Minister’s Office, the Privy Council Office, the Treasury Board Secre- Manon Vennat 2004-present tariat and the relationship between the Board’s Se- David Zussman 2004-present cretariat and the Public Service Commission. The role of prime ministerial leadership in public service reforms has become an issue of Figure 4: Public Service Commissioners since 1908 major concern as we approach 2000. There was a significant tran- sition in the relationship

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between the prime minister and the Public Service dur- Presidents of the Treasury Board & Secretaries of the ing the two periods between the 1930s and the Treasury Board Secretariat (1966-present) 1960s 128 and the 1960s and the 1990s. 129 Presidents of the Treasury Board 3.0 PRIME MINISTERIAL LEADERSHIP, CABINET Hon. 1966-1968 DECISION-MAKING & ADMINISTRATIVE REFORM Hon. Charles M. Drury 1968-1974 The Prime Minister and Cabinet, supported by the Hon. Jean Chretien 1974-1976 bureaucracy, departments, agencies, boards and Hon. Robert K. Andras 1976-1978 commissions are major instruments of organizational Hon. J. 1978-1979 change, adaptation and transformation in Canada. Hon. Sinclair M. Stevens 1979-1980 Here, the authors draw on diverse contributors such Hon. Donald J. Johnston 1980-1982 as Hodgetts, Mallory, Sharkansky, Deutsch, Kauf- Hon. Herbert E. Gray 1982-1984 man and Keeling, among others. 130 Hon. Robert Rene de Cotret 1984-1987 J.E. Hodgetts, among others, has characterized the Hon. Donald Mazankowski 1987-1988 Public Service as a subsystem of the Canadian politi- Hon. 1988-1988 cal system. In this regard, we can perceive the deci- Hon. Douglas G. Lewis 1988-1989 sion-making system in the following way: Hon. Robert Rene de Cotret 1989-1990 Hon. 1990-1993 Hon. James S. Edwards 1993-1993 Prime Minister

Hon. 1993-1996 Cabinet Hon. Marcel Masse 1996-1999 Cabinet Committees Hon. 1999-2003 Hon. 2003-2006 Ministers

Hon. John Baird 2006-2007 Departments: Hon. 2007-pres 1. Public Security and External Relations Secretaries of the Board Secretariat 2. Public Works, Transportation and Com- George F. Davidson 1966-1968 Simon Reisman 1968-1970 munications

Albert W. Johnson 1970-1973 3. Coordination and Services For The Pub- Gordon F. Osbaldeston 1973-1976 lic Organization Maurice LeClair 1976-1979 4. Conservation, Development and Promo- John L. Manion 1979-1986 tion of Physical Resources, and Gerald Veilleux 1986-1989 5. The Protection and Development of Hu- Ian Clark 1989-1994 man Resources. Robert Giroux 1994-1995

V. Peter Harder 1995-2000 Figure 6: Decision Making System Frank Claydon 2000-2002

Jim Judd 2002-2004 Wayne G. Wouters 2004-present

Figure 5: Presidents of the Treasury Board and Secre- taries of the Treasury Board Secretariat

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It is possible to perceive the above as political and As described by Ian Clark, then in the Privy Council managerial systems. At the apex of the system is Office, various prime ministers have adapted the the Prime Minister and Cabinet, assisted by cabinet decision-making system to meet several environ- committees, etc. 131 Within this system’s manage- mental challenges. The accompanying table illus- ment framework, Hodgetts defines a functional ty- trates the manner in which cabinet structures and pology for public sector organizations operating central agencies have been adapted by selected within the political system. We should endeavor to prime ministers to respond to the various environ- capture reform initiatives in at least five areas: mental challenges faced by the prime ministers. 1. Foreign Policy; During the 1960s-70s, a series of political and or- 2. Transportation; ganizational reforms led to the strengthening of the then emergent cabinet committee system initiated 3. Central Agencies; by Pearson in 1963-67; all designed to give politi- 4. Industry; cians greater control over policy formulation. The 5. Social Policy. ramifications of the proliferation and empowerment As described by Ian Clark, then in the Privy Council of central control agencies on vital decision-making Office, various prime ministers have adapted the processes such as budgeting has not been a decision-making system to meet several environ- smooth transition in organizational rationality. Can- mental challenges. The accompanying table illus- ada in the mid to late 1970s, presented a clear in- trates the manner in which cabinet structures and stance of a system whose budgetary process had central agencies have been adapted by selected become extremely fragmented. Since Confedera- prime ministers to respond to the various environ- tion in 1867, the Treasury Board committee of cabi- mental challenges faced by the prime ministers. net has been concerned with personnel and expen- diture matters. In the 1960s, the cabinet increas- Prime Minister ingly did its business through specialized policy committees. In the same period, the TBS emerged Cabinet as a department separate from the Finance Depart- Cabinet Committees ment. Ministers Increasingly, the Privy Council Office began to pre- sent independent advice to the prime minister and Departments cabinet committees rather than simply lending lo- 1. Public Security gistical support to the collective decision-making process. Paralysis arose in the executive- 2. Canadian Heritage bureaucratic arena, especially in connection with 3. Government Services questions which related to the budget. The Treas- ury Board found it difficult to impose discipline. As 4. National Revenue a recent offspring of Finance, it lacked standing. 5. Natural Resources Meanwhile, the Privy Council Office remained very much within the expansive mindset of the 1960s – 6. Industry and Science tending to give moral support to proliferating cabi- 7. Human Resources and Labour net committees as they continued to dream up ex- pensive government programs and regulations. 133 8. Health

Figure 7: Kim Campbell’s Eight Functional Areas (July 1993)

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Evolution of Cabinet Structures and Central Agencies

Prime Minister Ministry Cabinet and Central Agencies King 15-19 -Several committees during war...fewer after (1935-1945) - Records minutes and decisions of the War Committees from 1940 and of Cabinet from 1945 - Several Cabinet meetings weekly St. Laurent 20-21 - Committees generally tasked by Cabinet (1948-1957) - Several Cabinet meetings weekly - TB delegated significant powers through FAA (1951) Diefenbaker 17-23 - Infrequent meetings of committees (1957-1963) - Several Cabinet meetings weekly Pearson 23-25 - 9 Standing Committees (1968); issues generally to committee before (1963-1968) Cabinet - Cabinet meetings weekly - Priorities and Planning (1968) - TBS split from Finance ( 1966 ) with separate Minister Trudeau 27-33 - Fewer committees with more authority (1968-1979) - FRPO split from PCO (1975) - OCG split from TBS (1977) - MSED established (1979) Clark 30 - Inner Cabinet plus 12 committees (1979-1980) - PEMS established - MSSD set up ( proclamation 1980) Trudeau 32-37 - Priorities and Planning with authority to issue decisions (1980-1983) - PEMS elaborated - Ministry of State function in External - MBERD with FEDCs (1982) Turner 29 - Comminations, Labour Relations and Western Affairs Committees wound up -MSERD, MSSD and similar function within External wound up; FEDCs to DRIE - “mirror committees” wound up - Assessment Notes discontinued Mulroney 40 - Foreign and Defence Policy Committee wound up (1984-1988) - Communications Committee established - Envelopes consolidated - PEMS rules simplified - Expenditure Review Committee

Table 4 : Evolution of Cabinet Structures and Central Agencies

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Evolution of Cabinet Structures and Central Agencies

Prime Minister Ministry Cabinet and Central Agencies Mulroney 34 - PEMS abolished (1988-1993) - Expenditure Control Plan - PS2000 Secretariat established Campbell 23 - all “Minister of State” positions abolished (1993) - restoring full Cabinet as the forum for decision making - six Cabinet committees eliminated, including Priorities and Planning Committee Chretien 24 - only four Cabinet committees (1993) - FPRO reintegrated into PCO - Comptroller General merged into TBS - Minister and Secretariat of Public Service Renewal

KEY: Government Acronyms CSC: Civil Service Commission DRIE: Department of Regional Industrial Expansion FAA: Financial Administration Act FEDCs: Federal Economic Develoopment Coordinators FPRO: Federal-Provincial Relationship Office MSED: Ministry of State for Economic Development MSERD: Miinistry of State for Economic and Regional Development MSSD: Ministry of State for Social Development MYHRP: Multi-Year Human Resources Plans PCO: Privy Council Office PEMS: Policy and Expenditure Management System PSC: Public Service Commission PSEA : Public Service Employment Act PSRA : Public Service Reform Act PSSRA : Public Service Staff Relations Act PS2000: Task Force PS 2000

Table 4 (continued) : Evolution of Cabinet Structures and Central Agencies

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Council and changed the Deputy Minister of Fi- 4.0 GOVERNMENTAL TRANSITIONS, PUBLIC 140 SERVICE AND ADMINISTRATIVE REFORMS nance. The emergence of modern political parties at the 5.0 THE ENVIRONMENT OF THE PUBLIC SEC- turn of the century led to alliances and tensions TOR: BUSINESS-GOVERNMENT RELATIONS AS between political leaders and the Public Service. 134 AN ELEMENT OF CHANGE Between 1935 and 1957 Canada experienced 22 The beliefs and priorities of the Prime Minister are years of continuous Liberal governments. 135 Dur- equally important to the Liberal and Conservative ing this period the Public Service saw a significant parties’ respective ideologies and attitudes towards increase in the employment of intellectuals in the business. Canada is a large country with a highly Public Service. The senior public servants per- heterogeneous industrial structure; and a highly ad- formed important roles in the formulation of policy. versarial attitudinal relationship between business, The Diefenbaker Conservative government which trade unions and governments despite recent efforts followed between 1957 and 1963 was uncomfort- to improve that relationship. The uneasy relation- able with the Public Service which had served un- ship is exemplified by such investigations as the der the Liberals. 136 We are especially concerned Royal Commission on the Concentration of Corpo- with the transitions by the following Prime Minis- rate Power, the creation and mandate of the contro- ters: Diefenbaker, Pearson, Trudeau, and Mul- versial Foreign Investment Review Agency, and

Canada is a large country with a highly heterogeneous industrial structure; and a highly adversarial attitudinal relationship between business, trade unions and governments despite recent efforts to im- prove that relationship. roney. One consequence of this uneasiness was Trudeau’s Canadianization nationalist stance to- the establishment of the Glassco Commission. wards the business community in the 1970s. The Earlier, we have alluded to the use of royal com- fact that Canada had a ‘pro-business’ Conservative missions and task forces as instruments of change. Prime Minister over the last decade contributed to They constitute important linkages between the the perception by business leaders that business- roles of political parties and the public service in government relations had improved, especially the policy development. The Liberal party recruited foreign business community. Political style and several prominent public servants who assisted the rhetoric seem to have played a strong role in chang- party in the development of new policies. 137 The ing the perception of the state of business- transition led to another period of long Liberal gov- government relations. ernments under Pearson and Trudeau. 138 In 1979, the short-lived Clark government attempted some The increase in the complexity of the internal gov- significant reforms in the Public Service. Clark had ernment bureaucracy has presented new chal- made major changes in his appointment of the lenges for the externally located actors in the public Clerk of the Privy Council and in the appointment of policy system. Reference can be made to increas- the Deputy Ministers of Finance, Marcel Massé and ing use of private consulting firms, research insti- Grant Reuber, respectively. 139 The Trudeau gov- tutes, and ‘think-tanks.’ Prime Minister Mulroney ernment, which served between 1979 and 1984, had been heavily dependent on reinstated Michael Pitfield as Clerk of the Privy private sector consultation – Niel- sen Task Force (1984), external Operational Reviews of key www.csl.uoguelph.ca 251 | CSL Leadership Review

departments and central agencies. The two most accountability caused by practices of privatization, effective business associations can be identified deregulation, and downsizing. They suggest that: as being the Business Council on National Issues Responsibilities for planning, designing, (BCNI) and the Canadian Federation of Independ- financing and implementing public policies ent Business (CFIB). Even though the latter repre- are now dispersed among a number of sents so-called small business, its efforts have public, quasi-public, private, and what Moe contributed notably to improving business- (1987) calls ‘crypto-quasi-pseudo’ entities government relations overall in this country. living a precarious existence in the twilight Both business and government are developing on- zone between the public and private sec- going mechanisms for interaction . In the 1970s tors. 142 business responded to a variety of challenges by G.K. Wilson has effectively explained the manner in becoming more politically active. Recently, busi- which business was challenged by an expanded ness has utilized “consultants, lobbyists, trade as- state in the post WWII era. Business reorganized sociations, sector coalitions and other specialized to improve its influence on policy-making. As a re- experts” and interest group type tactics. Under the sult, business became a major source of public sec- Mulroney administration business was communi- tor reorganization. 143 cating better with government – albeit through third parties – and for the most part the conservative government was receptive to the information busi- 6.0 POLITICAL PARTIES, PRIME MINISTERS ness was communicating. 141 The influence of AND LEADERSHIP STYLES business on the policy-process has been referred to as ‘elite accommodation,’ a perception fuelled Selected prime ministers have effected changes to no less by waning labour organizations accusing the political system, which in part reflects their per- the conservative regime of wantonly passing ex- sonal leadership styles. 144 Prime ministerial gov- tensive pro-business policies over the last decade. ernment has further enhanced this approach. Prime ministerial power is linked to methods by Given the amicable relationship between govern- which political leaders are chosen. 145 A problem ment and business, a distinction must be made on emerges from the fact that the characteristics which relations regarding economic management policy lead to electoral success are not necessarily com- and sectoral appropriation policy under the Mul- patible with managing the public sector. This inevi- roney regime. In regard to the latter, questions of tably leads to analysis of the relationship between patronage, lobby practices, tender processes, and the prime minister and the Public Service. It is also contracting have led newly elected Jean Chrétien important to note that the expertise for effectively to set up a review of ethical conduct within the fed- performing management within government exists eral political system. within the Public Service. 146 Although it can be as- The resurgence of faith in market mechanisms and sisted and energized by external forces, these skills enthusiasm for “shrinking the state” in the tradition continue to reside within the public sector. 147 of Thatcherism, Reaganism and Mulroneyism, has Moreover, public sector values are not always com- been the most striking feature of economic policy patible with business values. 148 Accordingly, it is thinking in the 1980s and the 1990s. The subse- an objective of public sector management to mobi- quent privatization, deregulation, and downsizing lize a variety of constituencies with sometimes con- initiatives have brought the business sector more tradictory objectives. 149 intricately into the agenda-setting, policy choice, and policy implementation stages; especially im- plementation. Recently, analysts have written about the confusion of roles and erosion of public www.csl.uoguelph.ca 252 | CSL Leadership Review

If we reflect on the background and leadership The developments between the 1970s and the styles of selected prime ministers since the 1950s, 1980s reflected the input of financial management we can make the following observations briefly. ideology (the Office of the Auditor General) and the Diefenbaker had his power base in a populist swing influence of the banking community as reflected in in the electoral voting pattern in Canada. He did the report of the Royal Commission on Financial not display strong managerial talents while in of- Management and Accountability (Lambert). 156 The fice. However, he established the Royal Commis- Lambert Commission identified five fundamental sion on the Organization of the Government of flaws in the management system which reflected the Canada which ushered in a new era of manage- priority given to political management in contrast to ment within government. 150 Lester B. Pearson had financial management. Simultaneously, internal re- a Public Service, diplomatic and Canadian United port, the D’Avignon Task Force, criticized the gov- Church background which was most clearly re- ernment for the absence of any overall strategy for flected in his international aid activities after leaving managing people within the public sector. 157 office. His emphasis on foreign and social policy, It is interesting to note that Prime Minister Trudeau and his attempt to ensure ’s stronger in- addressed economic management issues very late volvement in policy development were reflected in

The developments between the 1970s and the 1980s reflected the input of financial management ideology (the Office of the Auditor General) and the influence of the banking community as reflected in the report of the Royal Commission on Financial Management and Accountabil-

in his leadership tenure. Trudeau steadfastly pro- the royal commissions which he established. 151 claims state mediation in a competitive market of- The role of Tom Kent during this period was most fers security and stability to offset the instability and significant. His appointment of the Clerk of the disruption of service inherent of market fluctua- Privy Council and Deputy Minister of Finance relied 158 tions. The economy, however, was a secondary on the mandarin tradition from which he came. concern to the emphasis placed on constitutional The cabinet committee system began under his reform. Notwithstanding, “Reorganization for Eco- leadership. Prime Minister Trudeau had a strong nomic Development” was released in 1982. 159 With background in constitutional law and was very the emergence of the deficit problem from 1975 for- much concerned with the Quebec problem. 152 He ward, there have been increasing pressures on gov- was not an organizational man in the bureaucratic ernment to reduce its involvement in the economy. sense of the term and the application of the rational This is reflected in the recent demand for downsiz- term to him should be carefully interpreted. He as- ing, privatization and deregulation. The internal de- sumed the office of Prime Minister at a time when bate concerning the structure of government which systems methodology was strongly endorsed. 153 occurred within the Trudeau administration was par- He counteracted the management in government tially reflected in the then new Structure of Govern- philosophy with political management reflected in ment announced by Prime Minister . 160 the roles of the Prime Minister’s Office and the This was reflected in the size of his cabinet and in Privy Council Office. 154 This was reflected in com- the elimination of Ministries of petition between the central agencies. There was State. The Turner changes antici- a debate on this issue with respect to the relative pated the reforms implemented by contributions of Michael Pitfield and the departing Kim Campbell later. deputy ministers in the 1970s. 155 www.csl.uoguelph.ca 253 | CSL Leadership Review

The list of organizational reforms presented above areas such as foreign, transportation, public sector are concerned with changes in the economic man- management, industrial development and the health agement realm primarily. However, the framework and social policy fields. It is further suggested that outlined in this paper suggests that we conduct these issues be examined from a longitudinal per- case studies within the five functional areas enu- spective with special emphasis placed on change merated earlier. It was suggested that the ap- and adaptation. In this regard, the framework has proach blend policy and administrative perspec- identified governmental reorganization as a means tives. In accordance with the general framework of capturing such change and adaptation. We have presented, case studies in public administration demonstrated how Prime Minister Kim Campbell’s and public policy studies can be conducted which reforms, which implemented elements of the de- are illustrative of the manner in which the Canadian Cotret report, can be analyzed within this frame- political system handles policy issues. The paper work. We have drawn on the work of comparative suggests that we focus on departments, crown cor- scholars such as Gerald Caiden and Guy Peters, porations and agencies within the following major among others. The approach can be used to ap- praise Canadian policy-making within a comparative

The Mulroney government was noted for its emphasis on downsizing, privatization and deregulation. Since the late 1970s there has been a trend to promote economic development and to achieve efficiency in the marketplace policy fields: perspective. It is suggested that more detailed analyses of selected departmental policy-making 1. External Affairs, Canada; will further demonstrate the utility of the approach. 2. ; The Mulroney government was noted for its empha- 3. Treasury Board Secretariat, Canada; sis on downsizing, privatization and deregulation. Since the late 1970s there has been a trend to pro- 4. Industry, Science and Technology, mote economic development and to achieve effi- Canada; and ciency in the marketplace as reflected in publica- tions such as Economic Development for Canada in 5. Health and Welfare, Canada. the 1980s, Reorganization for Economic Develop- Couched in terms of policy issues we are con- ment (1982), Agenda for Economic Renewal (1984) cerned with exploring the formulation and imple- and The Prosperity Initiatives (1988). The latter two mentation of foreign and trade, transportation, pub- outlined the Conservative Agenda under the stew- lic sector management, industrial and science, ardship of Prime Minister Brian Mulroney. health, welfare and social policies. The framework suggests that a comprehensive approach can im- prove our understanding of the relationship be- tween policy and administrative studies. The paper has presented a broad integrative framework within which specific policy studies may be conducted. However, the specific studies are chosen to pro- vide varied insights to the operations of the policy and administrative systems which are depicted by

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Major Organizational Initiatives in Canadian Economic Management

Department or Agency Policy Concerns

Bank of Canada (esp. since 1976) Monetary Policy

*Finance (FAA 1951, 1966, 1969) *Financial Management Economic Management (1975-78, AIB) Incomes (Policy)

*Treasury Board 1966, 1969, 1976, 1979 *Financial Management Management of Public Services

Industry 1963, (1969) Industrial Policies

Manpower & Immigration 1966 Manpower Policies

Labour (esp. since 1966) Industrial Relations

Registrar General 1966 Consumer and Corporate Affairs Competition Policies

Regional Economic Expansion 1969 Regional Development (Spatial)

Industry, Trade and Commerce 1969 Industrial and Trade Policies

Energy, Mines and Resources 1969, 1973, 1988 (NEP, 1980 Budget) Energy (Natural Resources)

Ministries of State 1971. **1977 Science and Technology Small business **International Trade

Employment and Immigration 1976 Employment Policies

Agriculture 1977 (changed in 1959) Agriculture and Food

Table 5: Economic Management Reforms: 1960s—1990s

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Major Organizational Initiatives in Canadian Economic Management (continued)

Department or Agency Policy Concerns

Board of Economic Development Ministers 1978 **Economic Development

**Ministry of State for Economic Development (MSED) 1979 *Economic Development

**Ministry of State for Social Development 1979 **Social Policy (Human Resources)

Finance, MSED November 1981 Budget Economic Development for Canada in the 1980s

Prime Minister’s Office, January 12, 1982 Reorganization for Economic Development (Affected IT&C, DREE, MSED and DEA- legislation pending)

Government Organization Act 1983 i. Industrial Development (DRIE, DEA and MSERD) ii. Regional Development iii. Trade, Export Promotion and Foreign Economic Policy

Agenda for Economic Renewal 1984 Markets, Privatization

Government Organization Bill 1988 Industry, Science and Technology Department (Proposed)

Industry, Science and Technology Act 1990 Integrated Science and Industrial Policy

Proposed Government Reorganization Act Deficit Management and Downsizing of the 1993-1994 Cabinet and Departments

Table 5 (continued): Economic Management Reforms: 1960s—1990s

* Auditor General and the Comptroller General reorganizations should be seen within this policy sphere. (The Lambert Commission recommendations also impinge on these changes – Financial Management). **Selected Ministries of State in the economic policy sphere. The chronology reflects changes which occurred in the “political climate” or, more generally in the socio-economic environment. Changes in economic and management philosophies are reflected in the reforms – changes in agency philosophies.

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To this end, the Mulroney regime had the neo- making, especially in the role of the Minister and conservative experience of Thatcherism and Department of Finance. His first Deputy Minister of Reaganism to borrow from. The conservatives Finance, Stanley Hartt was from outside the Public knew coming into power in 1984 that public organi- Service. He was very close to the Prime Minister as zations were still popular among , so his subsequent appointment indicated. they did not advocate a more aggressive The role of the Department of Finance in the Mul- ‘Thatcherite’ withering of the state. To substantiate roney administration is most clearly illustrated in the popular ideology, Crown corporations were particu- tenure of Michael Wilson as Minister of Finance. He larly castigated for perpetually reporting operational was the longest serving Minister of Finance since losses with subsequent subsidies that were exacer- World War II. More generally, the roles of the bating annual fiscal deficit problems. Accordingly, guardians, relative to the spenders, were signifi- successive scathing annual reports by several cantly strengthened between 1984 and 1993. By Auditor Generals (1976-1984), the introduction of the end of the Mulroney administration, the Prime the policy paper An Agenda For Economic Re- Minister and the Minister of Finance were clearly in newal (1984), the private/public Nielsen Task Force control of fiscal policy-making relative to the 1960s on Program Review (1984) and a major report from and the 1970s. 161 the Economic Council of Canada (ECC) entitled Minding the Public’s Business (1986), all espoused While expenditure management was significantly a reduced role for the state. The reports mani- centralized, there were a number of decentralizing fested a myriad of neo-conservative responses of initiatives; Increased Ministerial Authority and Ac- which the following are illustrative: (a) the 1986 countability (IMAA) and the system of Operating adoption of the Regulatory Reform Strategy; (b) a Budgets. Patrick Grady and R.W. Phidd have re- cabinet committee an Office of Privatization and viewed the institutional evolution of budgeting be- Regulatory Affairs (OPRA) , and even a short lived tween the 1960s and the 1990s and have pointed out the centralization-decentralization oscillations Minister of State for Privatization was created; (c) 162 subsequently, it deregulated several areas of the during the period reviewed. economy, including the oil, gas, transportation (air With respect to management within government, and rail), and telecommunications sectors; (d) it the Mulroney administration significantly reduced expanded regulation in the all-encompassing envi- the size of the Public Service. 163 He had estab- ronmental realm, especially with the 1990 Green lished the Nielsen Task Force which reviewed the Plan; and (e) it endorsed the 1990 Expenditure program. It included private sector participation.164 Control Plan . From this perspective, we are con- He established the Department of Industry and Sci- cerned with the role of political parties in effecting ence. He negotiated the North American Free change in the economic, political, and general Trade Agreement (NAFTA) by creating a group out- management realms of the public sector. side the regular bureaucracy. Ironically, the chief negotiators were former bureaucrats, Simon Reis- Mulroney’s focus on political management was re- 165 flected in the use of political appointments within man and Gordon Ritchie. departments at the centre of government. The In 1993, Prime Minister Kim Campbell significantly Mulroney government, 1984-1988 and 1989-1993, reduced the size of the Cabinet and the number of made some strategic appointments to the Privy departments. It should be noted that an internal Council Office and the Department of Finance. In task force consisting of important former public ser- addition, it instituted the use of Chiefs of Staff. In vants such as , Gaetan Lussier 1989, Prime Minister Mulroney launched PS 2000 and John Carson were involved in with the objective of reinvigorating the Public Ser- designing the strategy. vice. There is evidence to suggest that the private sector was more heavily involved in decision-

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Gaetan Lussier had previously been involved with efforts to reorganize Agriculture Canada and the Canada Employment and Immigration Commis- sion. It should be noted that the issues surround- ing this massive reorganization had been raised over twenty years earlier in the United Kingdom by Sir Richard Clark, New Trends in Government . The problems associated with governmental change have led Professor Donald J. Savoie to compile some recent experiences in Taking Power: Managing Government Transitions .166 The Chrétien government, which assumed office in 1993, has expressed concern with the relationship between the Public Service and politicians and to this end, appointed a veteran public servant politi- cian to assist in the development of an improved relationship. 167 Marcel Massé, a former public ser- vant who contested the elections, is now the minis- ter in charge of effecting changes in the Public Ser- vice. 168 The relationship between politicians and public servants has been a concern to for some time and he has recently expanded on these issues in Which Reminds Me: A Mem- oir .169

Editor’s Note: Part two (of two) of Prime Ministerial Leadership, the Public Service and Administrative Reform in Canada: Public Sector Reforms from the 1980’s to 2000 and Beyond will appear in the Summer 2007 issue of the CSL Leadership Review.

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7.0 ENDNOTES La Documentation Francoise, 1988). C. Campbell and G.B. Peters, eds., Organizing Governance, 1. See Leslie A. Pal and David Taras, Prime Minis- Governing Organizations (Pittsburg, PA: University ters and Premiers: Political Lead-ership and Public of Pittsburg Press,1988). R.A. Chapman, “Core Policy in Canada. : Prentice-Hall, 1988. Public Sector Reform in New Zealand and the For a more contemporary discussion of the Cana- United Kingdom,” Public Money and Management dian context see Maureen Mancuso, Richard Price (Spring, 1989), pp. 44-49. G. Davis, et al., (eds.), and Ronald Wagenberg (eds.), Leaders and Lead- Corporate Management in Australian Government: erships in Canada, Oxford University Press, 1994. Reconciling Accountability and Efficiency 2. Andrew B. Goller and Daniel Saleé, (eds.). Can- (Melbourne, Australia: Macmillan, 1989). R. Den- ada Under Mulroney: An End of Term Report. Mon- hardt and E. Jennings, (eds.), The Revitalization of tréal: Véhicule Press, 1988 (1990). the Public Service (Dept. of Public Administration, 3. G. Caiden, Administrative Reform Comes of University of Missouri, Columbia, Mo., 1987); and A. Age. Berlin: Walter de Gruyter and Co. 1991; and Dunsire and C. Hood, Cutback Management in Pub- Caiden et al. Strategies for Administrative Reform lic Bureaucracies (Cambridge: University of Cam- (Toronto: Lexington Books, D.C. Heath, 1982). bridge Press, 1989). See also, the works of Guy Peters such as The 4. O.P. Dwivedi and K. Henderson, Public Admini- Politics of Bureaucracy, 3rd ed. (New York: Long- stration in a World Perspective (Iowa: Iowa State man, 1989) and his journal article “The Policy Proc- University Press, 1990). ess: An Institutional Perspective,” Canadian Public 5. See D. Keeling, Management in Government Administration , Vol. 35, No. 2 (Summer, 1992), pp. (London: George Allen and Unwin, 1972) and Timo- 160-180. P. Szanton, Federal Reorganization: thy Plumptre, Beyond The Bottom Line: Manage- What Have We Learned? (New York: Chatham ment in Government , Halifax: Institute for Research House, 1981); and J.H. Knott and G.J. Miller, Re- on Public Policy, 1988. forming Bureaucracy: The Politics of Institutional Choice (Englewood Cliffs, New Jersey: Prentice 6. Canada. Government of Canada Report of the Hall, 1987); and Victor Thompson Bureaucracy and Royal Commission on Government Organization Innovation (University of Alabama Press, 1969). (the Glassco Commission), (Ottawa:The Queen’s See Philip Selznick, TVA and the Grass Roots Printer, 1962, 1963). (Berkeley: UCLA Press, 1949), The Organizational 7. Knott and Miller, op cit . Weapon: A Study of Bolshevik Strategy and Tac- tics (New York: Harper and Row, 1957), Law, Soci- 8. Ibid. ety and Industrial Justice (New York: Russell Sage, 9. R.W. Phidd and O.P. Dwivedi, Bureaucracy, Poli- 1970). J.G. March and J.P. Olsen, Rediscovering tics and Public Policy-Making In Canada: An Ap- Institutions: The Organizational Basis of Politics praisal. A paper presented to the annual Confer- (New York: The Free Press, 1989; James Thomp- ence of the Canadian Political Science Association, son, Organizations in Action (McGraw-Hill, 1967). Laval University, Quebec City, June 1975. Also see, Peter Self, Administrative Theories and Politics ; O.P. Dwivedi “Public Service Reforms in Canada Florence Heffron, Organization Theory and Public For The Twenty-First Century” in Indian Journal of Organizations: The Political Connection (Toronto: Public Administration , Vol. 29, No. 1, Jan-March Prentice Hall, 1989). A.F. Leemans, The Manage- 1993, pp. 46-66. ment of Change in Government (The Hague: Mar- tinus Nijhoff, 1976). James W. Fesler and Donald 10. See Richard Bird, The Growth of Public Employ- F. Kettl, The Politics of the Administrative Process ment in Canada (Halifax: IRPP, (New York: Walter de Gruyter, 1991). M. Crozier, 1979); also David Foot, Public How to Reform the State?: Three Countries, Three Employment in Canada: Statisti- Strategies; Sweden, Japan, United States (Paris: cal Series (Halifax: IRPP, 1979);

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Employment in Canada: Statistical Series (Halifax: ment, 2nd edition (Toronto: Gage, 1984), 1st edition IRPP, 1979). Nicole Morgan, Implosion: An Analysis (Macmillan, 1971). of the Growth of the Federal Public Service, 1945- 15. 1973, 1974, 1975 Budget Speeches, Depart- 1985 (: IRPP, 1986). For a provincial per- ment of Finance, Ottawa: SSC. spective see J.E. Hodgetts and O.P. Dwivedi, Provin- cial Governments as Employers: A Survey of Public 16. Refer to Kim Campbell, The Restructuring of Personnel Administration in Canada’s Provinces Government notes for a statement, Ottawa: PMO, (Montreal: McGill Queen’s Press, 1974). June 25, 1993. 11. T. Hockin (ed.), The Apex of Power: The Prime 17. Knott and Miller, op cit. Minister and Political Leadership in Canada 18. Eva Etzioni-Halevy, Bureaucracy and Democ- (Scarborough: Prentice-Hall of Canada Ltd., 1971). racy: A Political Dilemma (London: Routledge and See also C. Campbell and George J. Szablowski. Kegan Paul, 1983) and Political Manipulation and The Superbureaucrats: Structure and Behaviour in Administrative Power (London: Routledge & Degan Central Agencies , 1979. Paul, 1979). 12. Some of these issues were dealt with in a book 19.J.R. Mallory, The Structure of Canadian Govern- edited by Professor O.P. Dwivedi, The Administrative ment (Toronto: Macmillan and Co., 1971). For his- State in Canada: Essays in Honour of Professor J.E. torical treatment of the Canadian Public Service, the Hodgetts (Toronto: Press, following references are useful: a) Taylor Cole, Ca- 1982). The relationship between politicians and ad- nadian Bureaucracy: A Study of Canadian Civil Ser- ministrators can be further analyzed by reference to vants 1939-1947 (Durham N.C.: Duke University the following sources: a) E. Redford, Democracy in Press, 1949). b) Taylor Cole, The Canadian Bu- the Administrative State (New York: Oxford Press, reaucracy and Federalism 1947-1965 (Denver: Uni- 1969). b) D. Waldo, The Administrative State: A versity of Denver, 1966). c) M. Dawson, The Civil Study of the Political Theory of American Public Ad- Service of Canada (London, 1929). d) V.S. Wilson, ministration . 2nd Edition (New York: Holmes & Meir, Canadian Public Policy and Administration: Theory 1984). c) E. Etzioni-Halevy, Bureaucracy and De- and Environment (Canada: McGraw-Hill, 1980). e) mocracy (London: Routledge and Kegan Paul, 1983). Sharon L. Sutherland and G.B. Doern, Bureaucracy d) D. Yates, Bureaucratic Democracy (Chicago: Uni- in Canada: Control and Reform (Toronto: University versity of Chicago Press, 1961). e) Morestein Marx, of Toronto Press, 1985). f) Doug Owram, The Gov- The Administrative State: An Introduction to Bu- ernment Generation: Canadian Intellectuals and the reaucracy (Chicago: University of Chicago Press, State, 1900-1945 ( Toronto: University of Toronto 1961). Press, 1986). g) J.L. Granastein, The Ottawa Men: The tensions between politicians and experts are af- The Civil Service Mandarins 1935-1957 (Toronto: fected by the close relationship which exists between Oxford University Press, 1982). politics and policy-making, albeit agricultural, foreign 20. R. Bendix, Work and Authority in Industry: Ide- or fiscal policy. This dimension will be examined at ologies of Management in the Course of Industriali- greater length if we look at the various departments zation (New York: Harper Row, 1963) and Nation- of governments and the roles which they perform in Building and Citizenship; Studies of Our Changing public sector management. Social Order (New York: Wiley, 1964). 13. Audrey Doerr, The Machinery of Government in 21. David Zussman, Chapter 8, “Walking the Tight- Canada (Toronto: Methuen Publications, 1982). rope: The Mulroney Government and the Public 14. See A. Doerr, Machinery of Government in Can- Service,” in Michael J. Prince, ed. ada , J.E. Hodgetts, The Canadian Public Service (Toronto: University of Toronto Press, 1973), and J.R. Mallory, The Structure of Canadian Govern- www.csl.uoguelph.ca 260 | CSL Leadership Review

How Ottawa Spends: 1986-1987. Tracking the Tories reaucracy: The Politics of Institutional Choice (Toronto: Methuen, 1986). (Englewood Cliffs, N.J.: Prentice Hall, 1987); J.E. Hodgetts, The Canadian Public Service (Toronto: 22. Saul Frankel, Staff Relations in the Civil Service: University of Toronto Press, 1973); The Biography The Canadian Experience , Montreal: McGill Univer- of an Institution (Montreal: McGill-Queen’s Univer- sity Press, 1962. sity Press, 1972); J.R. Mallory, The Structure of Ca- 23. R. Bendix, op cit . nadian Government ; Ira Sharkansky, Public Admini- stration: Policy-Making in Government Agencies 24. F. Nigro, Management-Employee Relations in the (Chicago: Markham, 1972); Karl Deutsch, National- Public Service. Chicago: Public Personnel Associa- ism and Social Communication (Cambridge, Mass.: tion, 1969. See also the chapter on “Collective Bar- MIT Press, 1953), The Nerves of Government (New gaining” by J.E. Hodgetts and O.P. Dwivedi in their York: Free Press, 1967); Herbert Kaufman, Are book, Provincial Governments as Employers . Government Organizations Immortal? (Washington, 25. Saul Frankel, op cit . See also Jacob Finkelman D.C.: Brookings Institute, 1976, The Limits of Or- and Shirley B. Goldenberg, Collective Bargaining in ganizational Change (University of Alabama Press, the Public Service: The Federal Experience in Can- 1971, Time, Chance, and Organizations: Natural ada , Vol. I and II, IRPP 1983. See also numerous Selection in a Perilous Environment (New Jersey: publications from Queen’s University. Industrial Rela- Chatham House, 1985); Desmond Keeling, Man- tions Centre Current Issues Series. For example, agement in Government (London: George Allen and Mr. Justice George W. Adams gave Unwin, 1972); Florence Heffron, Organization The- a paper “Private and public sector collective bargain- ory and Public Organizations: The Political Connec- ing environments: Exploring Labour Management tion (Toronto: Prentice Hall, 1989; Amitai Etzioni, Relations” at a recent symposium presented by the The Active Society (New York: Free Press, 1968); Canadian Centre for Management Development and W. Richard Scott, Organizations: Rational, Natural Labour Canada. and Open Systems (New Jersey: Prentice Hall, 1992); F.E. Kast, et al., Organization and Manage- 26. Glen Stahl, Public Personnel Administration . (8th ment: A Systems and Contingency Approach (New ed. New York: Harper and Row, 1983). Jersey: Prentice Hall, 1985); D. Katz and L. Kahn, 27. Ibid., and Robert Lee Public Personnel Systems The Social Psychology of Organizations (New York: (Baltimore: University Park Press, 1979). John Wiley & Sons, 1978); Charles Perrow, Com- plex Organizations: A Critical Essay , third edition 28. Canada, Report of the Royal Commission on (New York: Random House, 1986); G. Caiden, Government Organization (Glassco) (Ottawa: Strategies for Administrative Reform and Adminis- Queen’s Printer, 1962). trative Reform Comes of Age ; Guy Peters, The Poli- 29. Ibid. tics of Bureaucracy ; A.F. Leemans, The Manage- ment of Change in Government (The Hague: Mar- 30. Canada, Task Force PS2000: A Renewal of the tinus Nijhoff, 1976); James W. Fesler and Donald F. Public Service (1990). See also Privy Council Office. Kettl, The Politics of the Administrative Process Annual Report of the Clerk of the Privy Council and (New York: Walter de Gruyter, 1991); M. Crozier, Secretary to the Cabinet on the Public Service of How to Reform the State?: Three Countries, Three Canada , Minister of Supply and Services Canada, Strategies; Sweden, Japan, United States (Paris: La 1992-selected years. Documentation Francoise, 1988); C. Campbell and 31. Eva Etzioni-Halevy, Bureaucracy and Democ- G.B. Peters, eds., Organizing Governance, Govern- racy: The Role of Opposition Parties. ing Organizations (Pittsburg, PA: University of Pitts- burg, PA: University of Pittsburg 32. We would like to suggest that a theory of admin- Press, 1988); R.A. Chapman, istrative reform can be built on the following contribu- “Core Public Sector Reform in tors’ work: J.H. Knott and G.J. Miller, Reforming Bu- www.csl.uoguelph.ca 261 | CSL Leadership Review

New Zealand and the United Kingdom,” Public 37. Daniel Saleé, et al., op cit . Money and Management (Spring 1989), pp. 44-49; 38. Saul Frankel, op cit ., K. Kernaghan (ed.) Public G. Davis, et al., (eds.), Corporate Management in Administration in Canada: Selected Readings, 4th Australian Government: Reconciling Accountability Edition (Toronto: Methuen Publications, 1982). and Efficiency (Melbourne, Australia: Macmillan, 1989); R. Denhardt and E. Jennings, (eds.), The Re- 39. J.E. Hodgetts, op cit ., J.R. Mallory op cit ., Paul vitalization of the Public Service (Dept. of Public Ad- Fox (ed.) Politics: Canada (7th edition) 1991. ministration, University of Missouri, Columbia, Mo., 40. Op cit . 1987); and A. Dunsire and C. Hood, Cutback Man- agement in Public Bureaucracies (Cambridge: Uni- 41. Knott and Miller, op cit . versity of Cambridge Press, 1989); among others. 42. G. Caiden, op cit. As an aid to understanding the policy-making proc- 43. J.R. Mallory, op cit . ess, we have adopted (and adapted) the “systems 44. Knott and Miller, op cit . analysis” construct of David Easton and of elabora- tions by such others as Daniel Katz, Robert L. Kahn 45. J.R. Mallory, op cit ., J.E. Hodgetts, op cit . and Ira Sharkanksy. In Easton’s conceptual frame- 46. J.E. Hodgetts, op cit . work, the political system, like all social systems, is characterized by “boundaries.” The system receives 47.Tom Kent, A Public Purpose: An Experience of “inputs” from the environment in the form of demands Liberal Opposition and Canadian Government , and support. These are then subjected to the conver- Kingston: McGill-Queen’s University Press, 1988; sion process” — the dynamic “withinputs” of political see also Tom Axworthy, Towards A Just Society: leaders and the bureaucracy. The results are the The Trudeau Years , Toronto: Viking, 1990. “outputs” of policy in the form of legislation, regula- 48. Tom Kent, Ibid . tions, and taxes, and in the strategies developed to implement the program. These outputs of policies 49.Christina McCall-Newman, Grits: An Intimate and strategies have effects on the environment that Portrait of the Liberal Party , Toronto: MacMillan of are characterized as “outcomes.” Information about Canada, 1982. these is returned to the political system as further 50. A. Doerr, op cit . inputs in the form of “feedback,” enabling the system to make new adjustments in the policy or strategy to 51.Refer to the multitude of memoirs, autobiogra- improve the quality of the outcomes. It is a continu- phies, and biographies of selected Prime Ministers: ous, cyclical process with the system responding to Lester Bowles Pearson, Mike (Toronto: University of the stress that is both imposed upon it from without Toronto Press, 1972-75); Pierre E. Trudeau, Mem- and generated from within. oirs , 1994; Radwanski, Trudeau (New York: Taplin- ger Pub. Co. 1978), Andrew Goller and Daniel The political system differs from all other systems in Saleé, (eds,) Canada Under Mulroney: An End of that it is, as Easton says, “predominantly oriented Term Report . Montréal: Véhicule Press, 1988 toward the authoritative allocation of values in a soci- (1990); among others. See G.B. Doern and R.W. ety.” It is the only system having a monopoly of the Phidd, Canadian Public Policy: Ideas, Structure, legitimate use of coercion. Process (Toronto: Nelson, 1992). See their analysis 33. Ibid . of the influence of the various prime ministers on public policy. 34. Ibid., March and Olsen, op cit . 52.See Canada. Report of the 35. J.E. Hodgetts, op cit . Canada Royal Commission on 36. T. Hockin, op cit , Colin Campbell, op cit .

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Bilingualism and Biculturalism . Ottawa: Queen’s Printer, 1963; and Canada. Report of the Royal 66. T.A. Hockin, op cit ., C. Campbell, op cit . Commission on the Status of Women . Ottawa: SSC, 67. O.P. Dwivedi and Henderson, op cit. 1970. 68. D’Avignon Commission (1979), op cit . 53. Canada. Special Committee on the Review of Personnel Management and the Merit Principle, The 69. See Canada. Human Resources Development D’Avignon Report , Special Committee, 1979. Council. Impediments to Good Human Resources Management in the Public Service , Treasury Board 54. PS 2000 report, op cit . of Canada, 1991; and Priorities , 1993. 55. G. Caiden, op cit . 70. Robert Lee (1979), op cit . 56. Knott and Miller, op cit . 71. Osbaldeston, Gordon F., Keeping Deputy Minis- 57. Knott and Miller; March and Olsen; G. Caiden, op ters Accountable ; McGraw Hill Ryerson, Toronto, cit . For a more Canadian context refer to Johnson, 1989. A.W., Reflections on Administrative Reform in the 72. G. Osbaldeston, Organizing to Govern , Toronto: Government of Canada 1962-1991 , Office of the McGraw Hill Ryerson, 1992. Auditor General of Canada, 1992. 73. John Hunter, Canadian Centre For Management 58. R. Denhardt, Theories of Public Organization . Development (CCMD): The Early Years , Toronto: Monterey, Calif.: Brooks/Cole Pub., 1984; Peter Self, CCMD, June 1993. Administrative Theories and Politics London: George Allen and Unwin, 1972. 74. G. Stahl, op cit. and A. Lee, op cit. 59. Knott and Miller, op cit . pp. 254-274. See also 75. D. Keeling, Management in Government, op cit. J.G. Jabba and O.P. Dwivedi, Public Service Ac- 76. Ibid. countability: A Comparative Perspective (Hartford, 77. Ibid. See Chapter 4, “A Systems Approach to Conn.: Kumarian Press, 1987). the Public Service; also Denhardt (1993), op cit. 60. Harvey J. Perry, A Fiscal History of Canada: The 78. See Marcel Massé, “Partners in the Manage- Postwar Years , Toronto: Canadian Tax Foundation, ment of Government: The Changing Roles of Gov- 1989. ernment and the Public Service,” The John L. Man- 61. G. Caiden, op cit . ion Lecture 1993 Optimum , Vol. 24-1). Here, Massé suggests top officials in the Public Service must be- 62. D’Avignon (1979), op cit ., PS 2000 (1990), op cit . come “less administrators and implementors of pro- 63. Canada, Public Service Reform Act (1992). grams and activities, and more knowledge-based advisors to help determine and explain the parame- 64. See A.W. Johnson, “The Treasury Board of Can- ters within which solutions must be found.” ada and the Machinery of Government in the 1970s,” Canadian Journal of Political Science Vol. IV, No. 3. 79. Peter J. Meekinson, Canadian Federalism: Myth For a documentative account of the roles and re- or Reality (2nd Ed.), Toronto: Methuen, 1971. sponsibilities of TBS, see Canada. Treasury Board, 80. See A. Blakeney and S. Borins, Political Man- The Role of the Treasury Board Secretariat and the agement In Canada (1992). Donald J. Savoie, ed., Office of the Comptroller General , Treasury Board of Taking Power: Managing Government Transitions Canada, 1987, 1992, and Canada. Treasury Board- (IPAC, 1993). The latter presents several case stud- Personnel Policy Branch. Roles and Responsibilities ies of governmental transfers in Canada. Readers of the Treasury Board and Public Service Commis- should also consult Mitchell Sharp, sion in Personnel Management , Treasury Board of Canada, 1982-1992 (selected years). 65. J.R. Mallory, op cit . www.csl.uoguelph.ca 263 | CSL Leadership Review

Which Reminds Me: A Memoir (1994) and Colin bama Press, 1969); A.F. Leemans, The Manage- Campbell, “Political Executives and Their Officials” in ment of Change in Government (The Hague: Mar- Political Science: State of the Discipline , Finifter, tinus Nijhoff, 1976); James W. Fesler and Donald F. Ada, W. (ed.), The American Political Science Asso- Kettle, The Politics of the Administrative Process ciation, Washington, 1993. (New York: Walter de Gruyter, 1991); M. Crozier, How to Reform the State?: Three Countries, Three 81.Public Service 2000 Task Forces. Strategies; Sweden, Japan, United States (Paris: La 82. March and Olsen, op cit ; Knott and Miller, op cit . Documentation Francoise, 1988); C. Campbell and 83. G. Caiden, op cit ., Peter Szanton, op cit . G.B. Peters, eds., Organizing Governance, Govern- ing Organizations (Pittsburg, PA: University of Pitts- 84. Ibid. burg Press, 1988); R.A. Chapman, “Core Public 85. See S.F. Kaliske (ed.) Canadian Economic Policy Sector Reform in New Zealand and the United King- Since the War (Montreal: Canadian Trade Commit- dom,” Public Money and Management (Spring, tee, 1966). For a more general theoretical discus- 1989), pp. 44-49; G. Davis, et al., eds., Corporate sion, see Guy Peters Comparing Public Bureaucracy Management in Australian Government: Reconciling (University of Alabama Press, 1988), and H. Kauf- Accountability and Efficiency (Melbourne, Australia: man, Time, Change and Organizations: Natural Se- Macmillan, 1989). R. Denhardt and E. Jennings, lections in a Perilous Environment , (2nd ed., Chat- eds., The Revitalization of the Public Service (Dept. ham, NJ: Chatham House, 1991). of Public Administration, University of Missouri, Co- lumbia, Mo., 1987); and A. Dunsire and C. Hood, 86. Doug Owram, The Government Generation: Ca- Cutback Management in Public Bureaucracies nadian Intellectuals and the State, 1900-1945 (Cambridge: University of Cambridge Press, 1989). (Toronto: University of Toronto Press, 1986). See also Eva Etzioni-Halevy, Bureaucracy and Democ- 89. See especially Amitai Etzioni, The Active Soci- racy . Peter Self, Administrative Theories and Politics ; ety: A Theory of Societal and Political Processes Sir Richard Clarke, New Trends in Government , (1968). 1971; J.E. Hodgetts, The Canadian Public Service 90. Brian Chapman, The Profession of Government: (1973). The Public Service in Europe . London: Allen-Unwin, 87. Francis Rourke, Bureaucracy, Politics, and Public 1963. See also O.P. Dwivedi, (ed.) The Administra- Policy (Boston: Little Brown, 1984) . tive State in Canada (1982). 88. See Philip Selznick, TVA and the Grass Roots 91. Ibid . Dwivedi. (Berkeley: UCLA Press, 1949), The Organizational 92. Nicole Morgan, op cit . Weapon: A Study of Bolshevik Strategy and Tactics (New York: Harper and Row, 1957), Law, Society 93. J.E. Hodgetts (1973), op cit , pp. 59-69; J.R. Mal- and Industrial Justice (New York: Russell Sage, lory, op cit . 1970), Leadership in Administration (New York: 94. Johnson and Cheffins, The Revised Constitu- Harper and Row, 1957); G. Caiden, Strategies for tion: Politics As Law (1986), p. 88. Administrative Reform (Toronto: Lexington Books, 1982), Administrative Reform Comes of Age (Berlin: 95. J.E. Hodgetts (1973), op cit ., pp. 59-69. Walter de Gruyter and Co., 1991); J.G. March and 96. Ibid ., pp. 19-20. J.P. Olsen, Rediscovering Institutions: The Organiza- tional Basis of Politics (New York: The Free Press, 97. D’Avignon Commission (1979), op cit . 1989; James Thompson, Organizations in Action (McGraw-Hill, 1967); Guy Peters, The Politics of Bu- reaucracy (New York: Longman, 1989; V.A. Thomp- son, Bureaucracy and Innovation (University of Ala-

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lic Service in Canada and follow-up reports, Paul 98 . G. Stahl, R. Lee , op cit. M. Tellier, Public Service 2000: A Report on Pro- 99. J.E. Hodgetts, op cit . See also Jeffrey Simpson, gress. Spoils of Power: The Politics of Patronage and Dis- 120. B. Chapman, op cit . cipline of Power (Toronto: Harper Collins, 1988). 121. J.E. Hodgetts, Biography of An Institution: 100. J.R. Mallory, op cit . The Civil Service Commission of Canada, 1908- 101. Ibid. 1967 . Montreal: McGill-Queen’s Press, 1972. 102.Mallory, pp. 152-153. 122.Public Service Reform Act (1992). 103. Ibid. 123.Ibid. 104. J.E. Hodgetts, op cit . 124.Of particular note was the January 1992 fed- eral court decision decreeing legislative reform 105.R.E. Bryce, Maturing in Hard Times: Canada’s was necessary to fulfill the rights of individuals in Department of Finance Through the Great Depres- staff transfer practices. See Gene Swimmer, “Staff sion , Kingston: McGill-Queen’s University Press, Relations Under the Conservative Government: 1986. The Singers Change But The Song Remains The 106. J.R. Mallory, J.E. Hodgetts, et al. Same,” in How Ottawa Spends 1992-93, , 1993. 107. R.W. Phidd, “Public Sector Reforms in Can- ada: The 1960s to the 1980s,” a paper prepared for 125. Canada, Public Service Commission, Corpo- the Organization Policy and Development Confer- rate Plan 1992-97, PSC of Canada, 1992., p. ence, University of Louisville, Louisville, Kentucky, 4. April 11th to 13th, 1984. 126. Eva Etzioni-Halevy (1979), op cit . 108. Mitchell Sharp, Which Reminds Me...A Mem- 127. Daniel Salée, et al., Canada Under Mulroney oir . Toronto: University of Toronto Press, 1994, p. (1988). 114. 128.J.E. Hodgetts (1973), op cit . 109. Ibid. 129. K. Kernaghan and D. Siegel, Public Admini- 110. Glassco Commission, op cit . stration: A Text (1991). 111. J.R. Mallory, op cit . J.E. Hodgetts, op cit . 130. J.E. Hodgetts, The Canadian Public Service 112. Ibid. (Toronto: University of Toronto Press, 1973), The Biography of an Institution (Montreal: McGill- 113. Ibid. Queen’s University Press, 1972); J.R. Mallory, The 114. D’Avignon Task Force Report (1979), op cit . Structure of Canadian Government ; Ira Shar- kanksy, Public Administration: Policy-Making in 115. Ibid., pp. 6-10. Government Agencies (Chicago: Markham, 1972); 116. Charles J. McMillan, The Japanese Industrial Karl Deutsch, Nationalism and Social Communica- System , 2nd Edition. Berlin: W. de Gruyter, 1985. tion (Cambridge, Mass.: MIT Press, 1953), The Nerves of Government (New York: Free Press, 117. D’Avignon Task Force and Lambert Royal 1967); Herbert Kaufman, Are Government Organi- Commission (1979). zations Immortal? (Washington, 118. See Budget Speeches 1982, 1991, 1994. D.C.: Brookings Institute, 1976, 119. Public Service 2000: The Renewal of the Pub-

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The Limits of Organizational Change (University of 135. R. Whittaker, The Government Party: Orga- Alabama Press, 1971, Time, Chance, and Organi- nizing and Financing the , zations: Natural Selection in a Perilous Environ- 1930-1958 (Toronto, 1977). ment (New Jersey: Chatham House, 1985); Des- 136. Peter C. Newman, Renegade in Power: The mond Keeling, Management in Government Diefenbaker Years (1973). (London: George Allen and Unwin, 1972); Florence Heffron, Organization Theory and Public Organiza- 137. M. Sharp, Which Reminds Me...A Memoir tions: The Political Connection (Toronto: Prentice (1994). Hall, 1989); G. Caiden, Strategies for Administrative 138. Ibid . Reform and Administrative Reform Comes of Age ; 139. Christina McCall Newman, op cit . Guy Peters, The Politics of Bureaucracy ; A.F. Lee- mans, The Management of Change in Government 140. Ibid . (The Hague: Martinus Nijhoff, 1976); James W. 141. D. Wayne Taylor, “An Interpretive under- Fesler and Donald F. Kettl, The Politics of the Ad- standing of the improvement of business– ministrative Process (New York: Walter de Gruyter, government relations, “Canadian Public Admini- 1991); M. Crozier, How to Reform the State?: Three stration 35, No. 2 (Summer 1992), p. 255. Taylor Countries, Three Strategies: Sweden, Japan, reviews survey results of senior management and United States (Paris: La Documentation Francoise, executives in both the public and private sector in 1988); C. Campbell and G.B. Peters, eds., Organiz- 1984 and 1988 respectively. See also, D. Wayne ing Governance, Governing Organizations Taylor, Business and Government Relations: Part- (Pittsburg, PA: University of Pittsburg Press, 1988); ners in the 1990s (Toronto: Gage Educational R.A. Chapman, “Core Public Sector Reform in New Publishing, 1991). Zealand and the United Kingdom,” Public Money and Management (Spring, 1989), pp. 44-49; G. 142.Gummer, Burton, “Managing in the Public Davis, et al., eds., Corporate Management in Aus- Sector: Privatization, Policy Deadlock, and the tralian Government: Reconciling Accountability and Erosion of Public Accountability,” Administration in Efficiency (Melbourne, Australia: Macmillan, 1989); Social Work , April 1988. R. Denhardt and E. Jennings, eds., The Revitaliza- 143. Graham K. Wilson. Business and Politics: A tion of the Public Service (Dept. of Public Admini- Comparative Introduction (2nd Edition), Chatham stration, University of Missouri, Columbia, Mo., NJ: Chatham House Publishers, 1990. 1987); and A. Dunsire and C. Hood, Cutback Man- agement in Public Bureaucracies (Cambridge: Uni- 144.Audrey Doerr, op cit . versity of Cambridge Press, 1989); among others. 145. Ibid . 131. C. Campbell, et al. (1979), op cit .; Tom 146. Francis Rourke, op cit . Hockin, o p cit. 147. Nielsen Task Force on Program Review 132. Adapted from Ian Clark. “Recent Changes in (1984) and PS 2000 Task Force (1990). the Cabinet Decision-Making System in Ottawa,” in Canadian Public Administration . Vol. 28, No. 2, 148. H.F. Gortner, Organization Theory: A Public 1985, pp. 188-9. Perspective (Chicago: Dorsey Press, 1987); Robert B. Denhardt, The Pursuit of Significance: 133. Richard French, How Ottawa Decides: Plan- Strategies For Managerial Success in Public Or- ning and Industrial Policy Making, 1968-1980 . Ot- ganizations (Belmont, Calif.: tawa: Canadian Institute For Economic Policy, Wadesworth Pub. Co., 1993); 1980.

134. J.R. Mallory, op cit .

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Florence Heffron, Organization Theory and Public icy: Ideas, Structure, Process (Toronto: Nelson Organizations: The Political Connection (Toronto: Canada, 1992). Prentice Hall, 1989); and Peter Self, Administrative 166. Donald Savoie (1993), op cit . Theories and Politics and Government by the Mar- ket?: The Politics of Public Choice. 167. Mitchell Sharp (1994), op cit . 149. Francis Rourke, op cit . 168. See Marcel Massé (1993), op cit . 150. Peter C. Newman, op cit . 169. M. Sharp (1994), op cit . 151. John Munro, Mike: The Memoirs of the Right Honourable Lester B. Pearson , Toronto: U of T Authors: Press, 1972-75, among others. Richard Phidd: Dr. Richard Phidd is the former 152. Tom Axworthy, Towards A Just Society: The Chair of the Leadership Challenge Confer- Trudeau Years (1990) and P.E. Trudeau, Memoirs ence. A veteran Professor of Political Science (1993). at the University of Guelph, he has written 153. See Ida Russakoff Hoos, Systems Analysis in widely on the many aspects of public admini- Public Policy: A Critical Review (1969, 1972). stration and the politics of management. His current research interests include economic 154. See Allan Blakeney, et al. (1992), op cit. and policy-making and management in Canada, H.T. Wilson Political Management: Redefining The including the study of public and private sector Public Sphere Berlin: W. de Gruyter, 1985. relations. A much sought after expert in public 155. Christina McCall Newman, op cit .; among oth- administration, he is a consultant to govern- ers. ments on several continents. Dr. Phidd is an 156. Auditor General of Canada. Annual report Associate of the Centre for Studies in Leader- (1976); also Lambert Commission Report (1979). ship . 157. See D’Avignon, op cit ., T. Plumptre (1988), op cit . O.P.Dwivedi : Dr . O.P. Dwivedi is Professor Emeri- 158. Pierre E. Trudeau, Memoirs 1993. tus – Political Science, at the University of Guelph. He has authored over 100 books and 159. Canada. Prime Minister's Office Reorganization journal articles. His area of research includes for Economic Development: Regional Industrial Ex- such subjects as environmental policy and law, pansion Ottawa: SSC (1982). development administration, administrative cul- 160. Prime Minister’s Office. News Release, ture, corruption and public service ethics; and “Structure of Government” (1983). his geographic area of research spans coun- tries such as Canada, USA, Papua New 161. R.W. Phidd and P. Grady, The Evolution of Fed- Guinea, India, Mauritius, and various develop- eral Expenditure Management: Toward Improved ing nations. In 2000, the , De- Efficiency and Effectiveness, Queen’s University partment of Economic and Social Affairs, New School of Policy Analysis (1993). York, appointed him a member of its Group of 162.P. Grady and R.W. Phidd, (1993), op cit . Experts on Globalization and the State for two years. He was awarded The 163. D. Savoie, The Politics of Public Spending and is listed in the Canadian Who’s Who. Dr. (1990). Dwivedi is an Associate of 164. Ibid . the Centre for Studies in G.B. Doern and R.W. Phidd, Canadian Public Pol- Leadership.

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