JS 1228 -A15 B 221,190 1915 ADMINISTRATIVE REORGANIZATION AND CONSTRUCNVS WORK IN TOR GOVERNMJNT OR NE CITY OF NEW YORK 1014 4 HENRY BRLERE, Qocumekuormir PM 17, 2: ULHOROLLSL 1837 WOLLTETLLLLLLLLLLL istum . _ _ :ARTES TESI AU W SCIENTIA SENTIA MITIMINT VERITAS LIBRARY VERITAS OF THE VERSITY OF MICHICO mult TULLUMUTANTS ODIO0000OOOOTTOTITOLUOTOLT listic 'AUDIT DIE HULIININTELLIMUNITA Vinum An TINTITUTINUIUIUNIIHITUIHITURIT Nuutintamantul VIIHIVINITWINTIMITRinutter DALA 10 hun 31 G in P. QUAERIS PENINSULAMAMOENA VILA CIRCUMSPICES 1 SPICET INA WK ST@AYFAYOR AYAYAYAYAYAAAYYOZIYOYA Iniiinnnniiittiftiinimihin MS. TILMITTITAIP M .. 5 TIMINORITARUNG DALAM DIRITANSKALALAKALI LIPASTILL SALTALISEMALAMILY I NAT PINIILLUM MOLMUILLINATHIRUMUNTIHINTITUT INSI DIIRIDIUITIATIEIIIIIIIS OUILD000000 OYYYYYYYYYYYY 2000 THE GIFT OF CA t Eilins YYLIININ NINGUNITI h inh Limintimitetinin tutkintantülitidistin uvaililith JS 1228 .A15 1915 ADMINISTRATIVE REORGANIZATION AND CONSTRUCTIVE WORK IN THE GOVERNMENT OF THE CITY OF NEW YORK (City) Bureau of cetery chamillain 22 cora 1914 HENRY BRUÈRE, Chamberlain MAY, 1915 CONTENTS ..'' ......... ...................................... ............ ......... Letter of Transmittal ............ Reorganization of the Chamberlain's Office............ Reorganization of the Office of the Commissioners of Accounts..... Reorganization of the Board of Estimate and Apportionment........ General Survey of Departments..... Studies in the Department of Public Charities............................ Administrative Changes Effected in the Tenement House Department....... Futhering the Completion of the Departmental Accounting Reorganization.. Preparation of the 1915 Budget..................... Centralization of Administrative Services............................ Centralizing the Preparation of Payrolls. Centralizing the Purchasing Service for the Mayor's Departments....... Centralizing Building Inspection........ Centralizing Automobile Service...... Centralizing Telephone Service......... Coal Economies ........ School Studies ............ Lighting Bureau-Department of Water Supply, Gas and Electricity. Study of Municipal Employees' Pension Systems.. Welfare Program for City Employees....... Employees' Conference Committee ......... Educational Courses for Employees.......... Lunch Room for Women... Distribution of Space in the Municipal Building....... Publicity of City Facts. Municipal Reference Library........... Standardizing Departmental Reports........ Vacation and Absence Rules............ Study of County Government. ........ Program for Public Recreation....... Study of Park Privileges.... Program for City Legislation................. Study of Gary Plan and Vocational Education......... Study of East Side Evictions.......... Study of the Unemployment Problem....... New York City's Exhibit at the Panama-Pacific Exposition...... Charter Revision ..... Conclusion ......... ........... ... ... .... .............. ........................................... ................................ .................................. 33 chaps more Iministrative administrati Gero HON. JOHN PURROY MITCHEL, Mayor of the City of New York. Sir: This report relates to work done under my supervision in 1914, , assisting you in respect of various administrative problems in the city government. Perhaps more than three-quarters of my time has been devoted to these general administrative undertakings. It was the opportunity to assist in improving the administrative practices of the city government that was the occasion of my appoinment to the office of chamberlain. Your purpose has been to make the chamber- lain a general administrative assistant to the mayor, inasmuch as under proper organization the statutory duties of the chamberlain's office require comparatively little of the incumbent's time. I am making this report not so much to record completed under- takings as to advise you of the progress being made on the work that you have committed to me, and to emphasize some of the general ad- ministrative problems with which we are dealing. Above everything else, American city government needs con- structive and continuous attention to the program and method of administration. It is only recently that administration and service have taken the place of politics and spoils as the prinicpal concern of the average American municipality. New York is no exception in this regard though notable improvements have been made in re- cent years in the methods of government in New York City. The least progress, perhaps, has taken place in those general features of government which may be described not in terms of service such as health or educational activities, but in terms of management. In New York, general administrative responsibility has been vested in elective officers whose principal functions, heretofore, have been of a political character. These political duties, consisting of interpreting the public will and repre- senting the government in its relation to citizens, are of greatest importance, but they do not directly affect the economy and efficiency of administration. Brevity of terms in office, lack of professional assistance and defective charter organization have made it less the part of the mayor to plan and to organize the processes of city gov- ernment than is usually expected of the executive head of a great corporation. Traditionally, the mayor of the city of New York is held re- sponsible for the character of city government. Notoriously, he has been without contact with the details of city administration and with- out equipment to advise him of the current progress of their per- 282955 nIT formance or information to enable him to direct intelligently the course of government activities. Administrative responsibility has been departmentalized and hence responsibility for results and the method of accomplishing them has been delegated to heads of departments. This has been the case despite the fact that many of the problems of administration are not restricted to specific departments, but relate to all or to groups of them. Upon the solution of these problems, moreover, depends in. large degree the effectiveness of service and economy of operation. From your extensive experience in city affairs you have long appreciated this defect in the structure and method of the city gov- ernment. It was clear to you that so great an institution as the government of New York could not be efficiently managed under a plan of executive organization practically unchanged since colonial days. From my own daily contact of ten years with problems of municipal administration, and in particular with the government of this city, I have long believed that the lack of executive organiza- tion and equipment was the chief cause of ineffective city government in New York City, for no great enterprise can be efficiently conducted without an efficient co-ordinating head. For upbuilding an efficient government there was no more im- portant requirement, when you took office, than the development of genuine administrative leadership and effective control in the mayoralty. The structure of New York City's government and the distribu- tion of its functions and responsibilities do not make easy the working out of a plan of efficient central management. The mayor is bur- dened with a variety of tasks and responsibilities other than those relating intimately to the management of city business, and while he is expected to be the dominant and controlling influence in the admin- istration of the city, the mayor's office has heretofore been completely devoid of organization to accomplish this purpose. The single excep- tion is the office of the commissioners of accounts, which until now had been used almost exclusively for purposes of investigation, in- terrogation and chastisement, and not as a means of directive and constructive planning of administrative work. I have attempted in this first year, by utilizing the staff of the commissioners of accounts and such special temporary staffs as have been made available for particular pieces of work, to build up a method and program of administrative leadership. One of my early recommendations that a division of administration be established in the mayor's office, in substitution for the commissioners of accounts, could not be put into effect without the approval of the legislature, and this has been twice denied. There still re- mains, therefore, a lack of organic identification of the mayor's office with the work that has been performed under the program committed to me. Ultimately, such work as I have done should be carried on either by a city manager or a reconstructed office of mayor. No delusion is more persistent than the general superstition that an exec- utive can guide a great institution such as the city of New York merely by the force of personality and by the authority of official position. To plan intelligently and to guide wisely and constructively the program of service carried on by the city of New York require the same kind of facility for executive intelligence and control as is pro- vided the chief working officer of a comparably great private cor- poration. The departments of the city government are each great business institutions, and the means by which they carry on their services are in many respects similar. All must obtain and organize employees, all must purchase supplies, maintain equipment, plan methods of control over work, and many of the departments require the same technical and expert services, notably engineering service. A simple illustration of the similarity of business responsibility in the several departments is the fact that ten departments under your con- trol have buildings to maintain and are themselves responsible for the construction of new buildings for their own purposes. In one or two respects the wisdom and economy of centralizing such services has long been recognized, as in the selection of employees through a single civil service commission serving all departments. But there had never been provided for the city government any central means of business planning and organization apart from the supervision of accounting processes, which is the function of the comptroller. Accordingly, the first vigorous steps taken to introduce modern business methods in New York City's government were taken in the department of finance with regard to the financial and accounting reorganization of the city. In many respects the department of finance has served to stimulate to better practices other branches of the city government through budget-making and otherwise. But it to serve as the business and administrative aid to the departments charged with the management of the city's affairs. In a limited sense, I have attempted to supply this need. It must ultimately be supplied by a thoroughly well-organized agency of central admin- istration, in which should be brought together a number of the special divisions already organized for advisory service. This first year's work was very largely preparatory and much of it experimental, though many of the problems dealt with are prob- lems for which solutions have already been found in private manage- ment. No attempt has been made to organize along permanent lines a general department of administration. The chamberlain's office has no authority to exercise these functions, and it would not be feasible for it to do so. This, however, is what the government of New York needs, and the lack of an adequate and authoritative organization has naturally retarded the execution of constructive work. The present city government, pledged as it is to a business admin- istration, recognizes what taxpayers and citizens generally must come to recognize,—that an enlightened business administration cannot be achieved by any arbitrary exercise of superior judgment, virtue or intelligence, but can only be brought about in a general sense by the slow upbuilding of new habits and methods of carrying on city busi- ness, much of which still bears the impress of slovenly political practices. In this first year I have dealt with five general groups of prob- lems in addition to reorganizing and administering the chamberlain's office. The first group consists of detailed surveys of the existing or- ganization and methods of city government heretofore unrecorded and perpetuated from administration to administration in most part in the minds and habits of the permanent working staff of the city govern- ment. The object of these surveys was not only to obtain the facts for purposes of information, but to lay the basis for constructive re- organization and improvement of methods. The second group consists of studies of special departmental prob- lems as a means of assisting the mayor or the head of a department in carrying out reorganization plans and executing efficiently new programs established at the beginning of the administration. The studies of the tenement house department and the department of public charities problems, and the plan for reorganizing the board of estimate, are illustrations of work done under this heading. The third group of problems relates to the organization of central agencies to perform, under central control, services required by a number or all of the city departments. Examples of these are the organization of central bureaus for purchasing and payroll prepa- ration. The fourth group relates to the investigation of special matters and the performance of advisory services in respect of the preparation of the budget, requests for revenue bonds and to incidental depart- mental matters of various kinds in which I have acted as the agent of the mayor. The fifth group relates to general, social and community ques- tions such as municipal pensions, unemployment, recreation, and the preparation of the city's exhibit for the Panama-Pacific Exposition. Many of the tasks performed by me do not fall in any of these groups, but are of an advisory or confidential character in response to specific requests from you. Since, in reporting to you on the reorganization of my office I recommended merging the office of chamberlain with the department TO of finance, the impression has no doubt prevailed in some quarters that the office of Chamberlain does not provide adequate opportunities for service. I hope the following report will serve to remove such an impression in part, at least, should it exist. Respectfully submitted, HENRY BRUÈRE, Chamberlain. New York, May 15, 1915. ADMINISTRATIVE REORGANIZATION AND CONSTRUCTIVE WORK Reorganization of the Chamberlain's Office I have already reported to you in detail on the reorganization of the chamberlain's office, a matter which received my first attention.* In this work, as in all other administrative changes, I was greatly helped by the cordial co-operation of the department of finance under the comptroller's direction. This working together of the administra- tive departments with the department of finance illustrates the advan- tages of applying a business principle to municipal administration in- stead of the political principle of independent and mutually exclusive jurisdiction of departments under separate elective officers. Historically, the department of finance, having jurisdiction over financial matters, had developed into an investigative and corrective agency rather than as an advisory and co-operative agency. With the whole government committed to the adoption of business methods, the way was opened to establishing harmony of action between the finance department and the departments under the jurisdiction of the mayor, with mutual observance of a common business program. Reorganization of the Office of the Commissioners of Accounts From your own experience in the office of the commissioners of accounts, and in conformance with the policy adopted by Mayor Gay- nor, you determined to substitute a single commissioner for the dual headship of this office. During the first month of your administra- tion I made a survey of the office and submitted to you a report which was then published, recommending the establishment, in place of the office of commissioners of accounts, of a division of administration to be a part of the office of the mayor. The purpose of this recommen- dation was to make available to the mayor an agency for maintaining day by day contact with the great multitude of administrative matters committed to the departments under his jurisdiction and for which, in the last analysis, as chief executive of the city, he is responsible. It was sought to transform the office of the commissioners of ac- counts from merely an agency of investigation, bringing to light ir- regularities and mismanagement, into an instrument for preventing *See report "The Reorganization of the Office of Chamberlain," 1914. irregularities and for assisting in establishing proper methods of man- agement. In other words, in addition to continuing the office as the "mayor's eye" we undertook to make it an instrument in his hands for rebuilding the structure and reordering the practices of the depart- ments responsible to him. The personnel of the office was changed in part, and men with special qualifications for administrative investiga- tion and constructive work were appointed in place of incumbents unfitted for work of this character. The legislature refused to pass the bill creating a division of ad- ministration. You accordingly appointed, on June 8, 1914, a commis- sioner who has since then been in charge of the office, and who has generously made members of his staff available to me, as required. est volume of work in its history. It submitted 193 reports to the mayor, and 217 reports to the chamberlain on specific studies or investigations made at his request. Reorganization of the Board of Estimate and Apportionment During Mayor Gaynor's administration, the board of estimate and apportionment for the first time undertook to exercise adequately its powers of appropriation. Theretofore, in all financial matters, the board acted almost exclusively on the recommendation of the comp- troller. The first fusion board of estimate, which took office in 1910, established a committee of its members on the budget and instituted several inquiries into the administrative problems of the city gov- ernment in order to secure information for intelligent appropriation. To control the vast appropriations for supplies,* the board prescribed as a condition to every expenditure that the purchase of supplies should be made under standard specifications, as such spec- ifications were formulated and promulgated by the board. Similarly, to provide the basis for intelligent fixation of salaries, which is pre- eminently a function of the board of estimate, there was instituted an inquiry into the salaries and wages paid by the city government and the character of work done by employees, with a view to providing a standard plan of compensation. Another considerable item of expenditure over which the board began to assume some control during the first fusion administration was that for public improvements payable out of corporate stock. It was the first board to establish a corporate stock budget in which * About $15,000,000 in 1914. † These undertakings were instituted by the board in 1910 pursuant to recom- mendations made by the Bureau of Municipal Research, of which I was then director. During the four years of the so-called fusion board's work, it had been my privilege to keep in close touch with this work and to be advised of its were brought together the various corporate stock authorizations. During 1911 the practice was instituted of authorizing corporate stock with the proviso that plans, specifications and estimates of cost must be approved by the board of estimate before bids were advertised for, in order that the board might check requests for authorizations in the light of actual proposals to expend them. In all of these matters you, the comptroller, and the president of the board of aldermen had taken an active part. At the beginning of 1914, at your request, I submitted to you a plan for the establishment of agencies under the jurisdiction of the board of estimate to continue this work in a systematic man- ner. My recommendations were submitted by you to the committee on organization of the board consisting of the mayor, the comptroller, and the president of the board of aldermen, and after review were recommended by them to the board as a whole and were subsequently adopted. They entailed the continuance of the three old bureaus of the board (records and minutes, public improvements, and fran- chises), the establishment of new bureaus of contract supervision, and of standards, and a plan for the permanent organization of the board into standing committees to have charge of the principal rou- tine and special work committed to it. A committee on city plan was included among the standing com- mittees of the board to systematize the authorizations of public im- provements which constitute a large part of the board's work, and to correlate them to a definite plan for the development of the city. To make more efficient the relationship of the board of estimate and apportionment to the board of education, and to utilize the results of the school inquiry conducted in 1913, a standing committee on education was provided. . Similarly, a committee on social welfare was organized to continue the work of the health and hospital inquiry committee and to deal with questions relating to the social welfare departments coming before the board of estimate and apportionment. The bureau of standards, during the past year, has pushed for- ward the work of salary standardization, and the results of its in- vestigations were applied in the 1915 budget to several depart- ments under your jurisdiction. The bureau of contract supervision has been of notable service in regulating expenditures under con- tracts and in the preparation of the 1915 budget. This committee reorganization, by which sixteen standing com- mittees were substituted for the approximately fifty major com- mittees, and innumerable sub-committees on routine matters, ap- pointed from 1910 to 1913, inclusive, has resulted in the simplifica- tion and consequently in the more orderly performance of the board's work, and has made the members a virtual board of directors of the municipal corporation. 7 NY DEPARTMENT OF HEALTH. Promoting Public Health. 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