Merit System Objectives and Realities by ALBERT H. ARONSON*

January 1, 1950, marked the completion of 10 years of State Board be specifically authorized to merit system operations under thepattern established in accord- require “the establishment and main- ance with the Social Security Act Amendments of 1939. A tenance of personnel standards on review of the period indicates notable progress in personnel a merit basis.“’ His message said: administration in the grant-in-aidprograms for welfare, health, and employment security and points up challenges for future Much of the success of the Social action. Security Act is due to the fact that all of the programs contained in this HE effective administration of grants-in-aid under the act. Similar act (with one necessary exception) are administered by the States them- the various grant-in-aid pro- requirements were extended to the selves, but coordinated and partially T grams for welfare, health, and various public health programs by reg- financed by the Federal Government. employment security has been recog- ulation under the Public Health Act This method has given us flexible ad- nized by the States and by the Con- and were included in the Hospital ministration, and has enabled us to gress to depend, in substantial Survey and Construction Act, put these programs into operation measure, on the quality of personnel The original Social Security Act of quickly. However, in some States in- administration in these programs. 1935 had provided that the required competent and politically dominated The merit system applying to the methods of administration in State personnel has been distinctly harm- programs is designed to promote em- plans were to exclude those relating to ful. Therefore, I recommend that ciency through a plan for selection the selection, tenure, and compensa- the States be required, as a condition for the receipt of Federal funds, to and development of the best available tion of personnel. At the time there establish and maintain a merit sys- staff, weeding out the incompetent were only nine States with general tem for the selection of personnel. and promoting the outstanding. It civil service systems, and several of Such a requirement would represent serves also as an instrument of demo- these were not functioning effectively. a protection to the States and citi- cratic government by affording citi- The Social Security Board encouraged zens thereof rather than an encroach- zens the opportunity for a career in the establishment of merit systems for ment by the Federal Government, the public service on the basis of their the grant-in-aid programs, with some since it would automatically promote qualifications and performance. degree of success, but could not re- efficiency and eliminate the necessity Effective personnel administration quire them. for minute Federal scrutiny of State operations. is not achieved by establishing an or- The Council of State Governments ganizational structure, but only recently stated, in its report to the The amendments to the Social Se- through the continuing and resource- Hoover Commission,’ “From 1935 to curity Act calling for a merit system ful day-to-day application of sound 1939 the social security programs of personnel administration were sup- principles and practical techniques. worked under no consistent system of ported by a great majority of the The functioning of a system over a personnel supervision and program State administrators responsible for period of years offers an opportunity difficulties consequently existed in a the direction of the grant-in-aid pro- to consider its achievements and de- number of States.” The Council also grams in the States, as well as by the ficiencies in terms of actual operation. stated, “Unsatisfactory experience Federal Social Security Board, and with unrestricted national and State by civic organizations. Merit System Amendments patronage in the period of large work In the debate on the enactment of relief appropriations during the de- the amendments, Senator LaFollette It is a decade since the establish- pression demonstrated in dramatic ment of the Nation-wide pattern of asked for a record vote “so that there fashion the need for placing per- could be no question that the Senate State merit systems and civil service sonnel, as far as possible, on a merit systems covering the employees in the fully realized the import of the basis.” various grant-in-aid programs in the amendments.” The vote was 72-2 A number of congressional pro- fields of public assistance, child health with Senators Bilbo of Mississippi and posals were made in 1938 and 1939 to and welfare services, employment se- Miller of Arkansas casting the neg- require that personnel in the State curity, and public health. On Jan- ative votes. agencies administering the public as- uary 1, 1940, amendments to the So- sistance and employment security Promulgation of Standards cial Security Act became effective, programs come under a merit system. requiring the establishment and main- After the enactment of the provi- In 1939, President Roosevelt recom- tenance of personnel standards on a sion and before its effective date, the mended that the Social Security merit basis in State agencies receiving Social Security Board consulted with 1 Report 0% Federal-State Relations to *Director, State Merit System Services, the Commission cm Organization of tie z Message . Transmitting a Report Office of Federal-State Relations, Federal Executive Branch of the Government (S. of the Committee on Economic Security Security Agency. Dot. 81, 81st Cong., 1st sess.). (H. Dot. 110, 76th Cong., 1st ses.~.).

&lletin, April 1950 3 State officials and formulated a state- of jobs and the establishment of equi- full employment and the low scale of ment of basic principles entitled table pay plans, promotions on the State salaries made recruitment dif- “Standards for a Merit System of basis of capacity and service, and se- ficult. There were also instances of Personnel Administration.” Similar curity of tenure based on efficient per- pressure for the retention of provi- standards were subsequently ex- formance, with separations for cause. sional employees appointed during tended to the other grant-in-aid the war, as opposed to real competi- programs. The standards state: Installation Problems tion between these employees and The period of installation presented persons not previously in the agency. The development of proper and effi- a number of problems, both legal and Although the situation varies from cient administration of the grant-in- administrative, in establishing a func- State to State, in general the States aid programs is a concern of both the tioning merit system organization. have reestablished their merit systems Federal and the State agencies coop- Some difficulties grew out of a lack on a sound continuing basis or made erating in the programs. Proper and of understanding of the philosophy substantial progress toward this ob- efficient administration requires clear and methods of merit system admin- jective. definition of functions, the employ- istration; others related to apprehen- ment of the most competent available Technical Services to States personnel, and the development of sion over the possible fate of incum- staff morale and individual efficiency. bent employees. A number of difficult administra- The “merit system” provisions of The standards provided that a State tive problems have arisen in the opera- Federal statutes relating to the grant- might elect that incumbent personnel tion of merit systems for the grant- in-aid programs are directed to the be given permanent status through in-aid agencies alone. One question achievement of these ends through open competition or through merely has been how to avoid expensive ad- the application of personnel stand- qualifying in the competitive exami- ministration, particularly in the ards on a merit basis . . . The Fed- nations. Almost uniformly, the States States with relatively small coverage. eral agencies are interested in the chose to use the examinations on a Another has been the lack of qualified development and continued improve- ment of State merit systems but ex- qualifying basis and to permit incum- personnel technicians. The Social ercise no aut,hority over the selection, bents to enter the examinations with- Security Board established a State tenure of office, or compensation of out regard to minimum qualifications Technical Advisory Service to give as- any individual employed in conform- of education and experience. Righty- sistance to the States on merit sys- ity with the provisions of such five to 90 percent of the incumbent tem administration. This organiza- systems. employees passed the examinations. tion and its successor, the Division of The replacement of the poorest lo-15 State Merit System Services within The standards call for the applica- percent by persons from the top of the Office of Federal-State Relations tion of the State civil service system new registers meant a major advance of the Federal Security Agency, have or the development of a State merit in the quality of personnel, without reviewed merit system organization system to serve the grant-in-aid pro- disruption of the continuing activities and operations and have advised on grams. In the interest of economy, of the agencies. Newspaper reaction rules, practices, and procedures. The efficiency, and public convenience, it to the installation of the merit system unit has prepared a Manual of Merit was recommended that such new in the States stressed the improve- System Administration and conducts merit systems be joint systems apply- ment in administration. a series of institutes on examination ing to all the grant-in-aid programs. and classification techniques. It has In a number of States, however, sep- Wartime Modifications and made available field consultation on arate systems for different agencies Postwar Problems the various phases of personnel ad- were set up, and in a few instances The period of installation of the ministration. they have not yet been united in a merit systems was barely completed The Federal merit system service joint merit system. when the national defense program also provides a central pool of objec- The standards are basic minimums and the commencement of hostilities tive examination materials on which for a merit system rather than a rec- required drastic changes in the sys- the States can draw. From 45 to 48 ommendation for an ideal system. If tems to adapt them to wartime con- States have called for these materials there is no consensus about what con- ditions. Qualifications had to be low- each year. The examination items stitutes good civil service practice, the ered for many types of jobs. In most are normally used, with appropriate provisions are left optional. The States a plan of war-duration ap- State adaptation where necessary, in States were to establish rules and pointments was established that per- 10 to 20 States before they are retired. regulations covering the essentials of mitted the selection of the best During the course of 10 years, the merit system organization and policy. persons then available but did not Federal unit has sent out to States, In accordance with the standards, give them permanent tenure as ca- in response to specific requests, more such rules provide for the recruitment reer employees. This plan provided than 10,000 examinations (including and appointment of personnel for postwar competitive examinations in all more than 500,000 questions) through open competitive examina- that would be open to veterans. for several thousand classes of posi- tions, prohibition of discrimination After the war the problem of re- tions in the State agencies. This and certain limitations on political turning to normal merit system oper- service has been widely recognized by activity, the systematic classification ations was a difficult one. Relatively the States as valuable and as avoiding

4 Social Security the difficulty and expense of setting tially locally administered. As a re- Other factors not related to the per- up duplicative technical staffs in each sult, there is, of necessity, a variety of formance of the merit system staff of the States. organizational patterns and adminis- may, of course, adversely affect the The Federal Government has also, trative methods, reflecting variations operations of the system. Recruit- through grants to the States, financed in State administrative traditions and ment in a number of States has been to a major extent a unit in the Amer- in public attitudes and the prestige hampered, for example, by inadequate ican Public Health Association to value of public employment. There salary scales, residence restrictions, construct technical health tests not have been, however, notable examples certification by counties, and restric- prepared by the Federal merit system of joint merit systems that provided a tive conditions of work, such as the service itself. demonstration project on a high level possession of a car. Shortages of The State Technical Advisory Serv- of administration in a State with professional personnel in such fields ice and the merit system units later spoils traditions. Any precise ap- as public health have also prevented established in the Children’s Bureau, praisal of results would have to con- the merit systems from being of max- the Public Health Service, and the sist of at least 48 studies. However, imum service. United States Employment Service certain general conclusions are justi- were combined in the Federal Secu- fied by a review of the facts and of Evaluations of Merit System rity Agency in 1948 in a Division of analyses made by disinterested organ- Progress State Merit System Services. This izations and individual authorities in division works with the Bureau of the field of public administration. The Council of State Governments, Public Assistance and the Children’s in its report on Federal-State Rela- Bureau in the Social Security Admin- Merit System Supervisors and tions for the Hoover Commission, istration and with the Office of Voca- Councils evaluated the application of the merit tional Rehabilitation and the Public The State merit system heads, com- system to the grant-in-aid programs Health Service in their grant-in-aid monly called supervisors or directors, and concluded that, since the merit programs. It also works with the provide the administrative and tech- system amendments, “the national Bureau of Employment Security, for- nical leadership in the merit systems. emphasis on personnel supervision has merly in the Social Security Admin- In general, they have been staunch resulted in a generally high caliber of istration and now a part of the adherents of merit principles and administration.” The report com- Department of Labor. competent administrators in their ap- pares the Federal requirement of Since the transfer of that bureau plication. Their functions vary some- merit systems in certain programs to the Department of Labor, an in- what under State laws and rules. with the certification of minimum terdepartmental agreement has been They have uniformly been responsible standards of training and experience made for the joint use of the Division for recruitment, administering exami- in some of the older grant-in-aid of State Merit System Services for nations, certification, and other re- programs. It concludes : personnel consultation, review, and lated functions. Most of the systems assistance to States. The Federal not established as State-wide civil Certification is a means of establish- Advisory Council for the employment service systems carry only an advisory ing minimum standards; a competi- security program, representing the responsibility for classification and tive merit system aims at selecting general public, management, labor, compensation plans. The assigned the best person for a given job. The latter, therefore, has many theoreti- and veterans’ organizations, passed a functions have generally been effec- cal advantages over the former. But resolution at its meeting on December tively carried out, although small neither is foolproof. Merit systems, 16, 1949, commending the heads of staffs and budgets, inadequate top when operated by appointees without the two departments for their coop- State administrative support, and lack merit, accomplish little. eration in using a single service, with of public understanding have some- consequent economy and effectiveness times prevented the systems from National insistence upon State-wide in State relations. achieving maximum effectiveness. merit systems for particular programs has undoubtedly improved the admin- The merit systems in the grant-in- The responsibility for administra- istration of those programs. Experi- tion has remained at all times with aid programs are under the policy ence with merit systems in grant pro- the State agencies, and Federal serv- direction of a public board, usually grams has also influenced a consider- ices have been optional, although uti- called a merit system council. The able number of States to extend these lized at one time or another by all 48 caliber of the merit system councils systems to other departments. In States. The review of the systems for in the various States has also been of addition, many State civil service conformity with minimum standards an almost uniformly high level. In agencies have been strengthened and has been conducted with a view to most States, distinguished civic lead- revitalized by the services rendered constructive suggestions rather than ers were selected, prominent in the them by the Division of Technical community and successful in their Service to States of the Social Security the application of sanctions. Administration. own fields of work. However, they Diversities in State Operations have not always been as vigorous and The quality of State administration The merit systems in the grant-in- effective as they might be in promot- and of the technical services rendered aid programs are State-administered; ing public support and understand- in a few instances, they are also par- ing. 30~. cit.

Bulletin, ‘4pril 1950 5 to the States has received recognition standards in the State and county basis for marginal appointments. On from others who have reviewed the government cannot be exaggerated. the establishment, of registers, these programs. Lewis Meriam, in his book, This provision may well be recognized marginal provisional appointees have Relief and Social Security,4 stated: over the perspective of the years as been reached for permanent, appoint- one of the two or three principal con- ment through local certification, and After merit system laws are passed and enforced, the technicians have a tributions of Franklin Roosevelt to a sometimes through induced declina- chance to do the constructive work better public service.” tions. The desire to prevent turn- required to bring well-qualified peo- The Civil Service Assembly of the over and avoid the training of new ple into the civil service . . . It was United States and Canada, at its 1949 employees has combined with factors little short of amazing that several annual conference, recognized the of personal acquaintance and political States, where conditions approached progress during the first decade in influence to reject the best, available a public scandal, should in a few the following resolution: persons in favor of those temporarily months become the field for great employed. There has not always been technical advances. It is also doubt- Whereas,’ a decade of merit system full realization of the cost to Ghe agen- ful whether any group of administra- administration in the Federal-State tive personnel has ever made greater grant-in-aid programs will be com- cies in terms of mediocre rather than contributions to merit system tech- pleted on January 1, 1950, superior performance, and of lack of niques than has the professional group future promotional material. This And whereas, this development has problem is of more than passing sig- concerned with welfare administra- been marked by notable progress in tion. the field of personnel administration nificance. Progress in any field of Professor Arthur Macmahon, of and by effective Federal-State coop- work is in part determined by the suc- Columbia University, writing in eration, cess of that field in the continuing 1941.5 stated: competition for persons of superior Therefore, be it resolved that the Civil intellectual capacity, of adjusted per- Service Assembly of the United States In recent years, the requirement of sonality, and of broad background to merit, recruitment and tenure for and Canada, in convention assembled, take cognizance of this occasion and assume, with adequate experience, State and local personnel engaged in positions of leadership in the field. the cooperative fields of social secu- extend felicitations to the jurisdic- rity (though att.ended by complica- tions involved and, in particular, to When tenure is provided, it, becomes tions due in part to the variable and the Federal Division of State Merit Increasingly important that a fair usually backward conditions in the System Services and the State Merit share of superior talent be recruited. civil service of State and IocaI units) System Councils, which have contrib- There are numerous other unsolved has been the outstanding development uted to the development and applica- problems that present a challenge to in the administration of Federal tion of sound personnel standards. administrative leadership. Most of grants-in-aid. Federal grants-in- the systems lack provisions for retire- aid, involving the administration of Achievements and DeJiciencies ment for superannuation or disability. billions of dollars in benefits, involves State salary scales are often inade- the expenditure of several hundred A major contribution has been million dollars for administration. made, in the States that have quate to attract the best persons. These are, in large part, for personal achieved effective merit system opera- The universal probIem of the tenacity services. The efficient and economi- tions, by the administrators of both of marginal employees and the lack cal administration of the grants is af- the operating programs and the merit of administrative courage in rating fected by the caliber of personnel, and systems, by employees and employee them and in exercising the power of certainIy the return for administra- organizations, and by professional or- removal has not been solved. Nor tive costs is dependent upon the qual- ganizations that have been concerned has the dilemma as to the recognition ity of such personnel. with the standards of service to the to be given to in-service performance Professor Leonard D. White, former public in the programs. In these as against superior outside talent member of the U. S. Civil Service States, cooperative efforts have been been resolved. There is need for the Commission, in an article on “Frank- noteworthy in general and specialized development of adequate techniques lin Roosevelt and the Public Service,” recruitment, in planning examination for measuring personal attributes to written in 1945: concluded: “The im- programs to meet anticipated needs, supplement those for measuring portance of this amendment to the in consultation on the examination knowledges, skills, and mental steady improvement of personnel process, and in speedy use of regis- abilities. 4 Brooklngs Instit.ution, 1946. ters to obtain the best eligibles. More importantly, not enough has G“Taking Stock of Federalism in the On the other hand, in some States been done to enlist, active public sup- United States,” Canadian Journal of Eco- the selection of permanent staff has port of the merit principle. With nomics and Political Science, May 1941. been made too largely from the ranks such support, administrators can suc- For further comment see also Joseoh P. Harris, “The Future of Federal Grants-in- of provisional employees. The caIiber cessfully withstand the recurring Aid,” and George C. S. Benson, “Federal- of provisional employees has often pressures to which they are subjected State Personnel Relations,” Annals of the been lower than that of a random for appointment and retention of in- American Academy of Political Science, sample of the applicants and seri- competent, personnel. Public under- January 1940; and George C. S. Benson, The New Centralization, Farrar and Rine- ously lower than that of the better standing of the operations of the hart, 1941, pp. 85-86. candidates. Staff shortages and merit system may also contribute to B Public Personnel Review, July 1946. emergency needs have been made the Continued on page 29)

So&l Security MERIT SYSTEMS management, as well as a vigorous provide program leadership, stano- (Continued from page 6) and effective merit system that gives ards of performance, dynamic super- -the prestige of the public service and speedy and realistic service to the pro- vision, and training and employment influence some of the best-qualified grams to which it relates. conditions that reflect progressive young men and women in each college There has been realistic recognition practices in the human relations as- generation to seek careers in the serv- in the States that a merit system is pects of management. ice. Effective application and support not a panacea for management ills The evolution of personnel prac- .of the merit principle can help man- or an answer to the absolute short- tices in the State agencies administer- agement in both personnel and pro- ages of technical personnel in special- ing the grant-in-aid programs is an gram operations in developing staff ized fields, such as psychiatry. At encouraging indication of administra- morale and efficiency. the same time, there is a healthy tive leadership in the State agencies. Personnel administration is a realization that an effectively oper- At the same time, the review of prog- means for accomplishing the purposes ating merit system can contribute, ress should not obscure the challenge of an organization through its em- not only in a negative fashion by ex- presented by the unsolved problems. ployees. To do this, it must not only cluding the unqualified, but positively Looking back over a decade of merit select persons of capacity and relate by helping build a career system. system administration in the grant- their tenure to performance, but it Such a system is founded upon com- in-aid programs, one can certainly must recognize the individual’s desire petitive examinations, geared to re- conclude that the advances have been to use his highest skills, to develop cruitment of persons of the capacity notable. What is needed now is a re- his potentialities, and to gain recog- to assume increasing responsibility, appraisal by each State of its opera- nition for his contribution to the or- upon equal pay for equal work, and tions in the light of the decade of ex- ganization. It must seek to establish upon tenure and advancement for the perience, and a practical approach- a physical and psychological environ- competent and for the competent on the basis of constantly reviewed ment that promotes efficiency. only. Departmental management plans-toward the objectives of effi- This process involves a continuing must assume its full responsibilities cient staff selection and management program of progressive departmental within the system. It must further on a merit basis.

curity developments in the various

Recent Pzlblz’cations in the Field countries.“The Federal Social Security Pro- grams.” Monthly Labor Review, of Social Securitly* Washington, Vol. 70, Jan. 1950, pp. 1-13. 40 cents. Social Security Administration tion Throughout the World. (Divi- Old-age and survivors insurance sion of Research and Statistics, and unemployment insurance are dis- Annual Report of the Social Security Bureau Report No. 16.1 Washing- cussed in this article, the first of a Administration, 1949. (Also in- ton : U. S. Govt. Print. Off., 1949. series on social security. cluded in the Annual Report of the 1’76 pp. 75 cents. MERIAM, LEWIS; SCHLOTTERBECK,KARL; Federal Security Agency.) Wash- Major provisions relating to old- and MARONEY, MILDRED. The Cost ington: U. S. Govt. Print. Off., age, invalidity, and survivors insur- and Financing of Social Security. 1950. 214 pp. 45 cents. ance and pension (or assistance) Washington: The Brookinas In- Outlines the operations during the programs, health and maternity in- stitution, 1950. 193 pp. $3. fiscal year 1948-49 of all programs surance, workmen’s compensation, SIMONS, SAVILLA M. “Action of Social under the Social Security Act and unemployment insurance, and family makes specific recommendations- Significance Taken by United Na- allowance programs. Notes signifi- tions Economic and Social Council, both for strengthening existing pro- cant legislative developments during grams and for providing a compre- Summer Session, 1949.” Social the past 10 years, and gives biblio- Service Review, Chicago, Vol. 23, hensive social security system. The graphic references. recommendations were summarized in Dec. 1949, pp. 423-434. $1.75. S&IITH, ANNA KALET. Juvenile Court U. S. CONGRESS. HOUSE. COMMITTEE the January-February issue of the Laws in Foreign Countries. (Chil- Bulletin. ON WAYS AND MEANS. Extension of dren’s Bureau Publication No. 328.) Social Security to Puerto Rico and FARMAN, CARL H., and HALE, VERONICA Washington : U. S. Govt. Print. MARREN. Social Security Legisla- the Virgin Islands. Report to the Off., 1949. 67 pp. 20 cents. Committee on Ways and Means by *Prepared in the Library, Federal Secu- the Subcommittee on Extension of ity Agency. The inclusion of prices of General Social Security to Puerto Rico and publications in this list is intended as a the Virgin Islands. Washington: service to the reader, but orders must be “Co-operation and Social Security.” U. S. Govt. Print. Off., 1950. 26 pp. directed to publishers or booksellers and International Labour Review, Ge- not to the Social Security Administration neva, Vol. 60, Nov. 1949, pp. 496- Retirement and Old Age or the Federal Security Agency. Federal 512, Dec. 1949, pp. 625-648. 50 publications for which prices are listed BRUNDAGE, P E R c I v A L F. “Pension should be ordered from the Superintend- cents. ent of Documents, U. S. Government Discusses the relation between the Plans From an Accountant’s Point Printing Omce, Washington 25, D. C. cooperative movement and social se- (Continued on page 24)

Bulletin, April 1950 19