Memorandum for the President

EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON 25, D.C. and MATIONAN SERVICE MEMORANDUM FOR THis PRESIDENT Subject: Program of Reorganization for the Second Session, 8lst Congress If a number of reorganization plans are to be ready for trans- mittal to the Congress in January or early February, it will be neces- sary to make tentative decisions during the next month on which ones to prepare. This memorandum is intended to provide some general background for that action. Acceptance of plans by First Session Generally the plans and legislation dealing with the reorganiza- tion of various agencies to improve their management met with Con- gressional acceptance. The greatest areas of controversy involved the shifting of certain programs from one agency to another or the failure to follow Hoover Commission recommendations in this respect. The contrast between these two types of actions will probably be more marked in the plans developed for use in 1950 than those transmitted in 1949. Plans designed to carry out "management" recommendations There are three recommendations with respect to the organization of the departments and agencies for improved management which could be dealt with by plan next year. They could be handled either on an individual agency basis or on an across the board basis. These actions are: 1. Transferring the authority of the subordinate units or officials of an agency to the head of the agency. This idea was accepted by the Congress this session in the legislation creating the General Services Administration and permitting rebrganization of the State Department and also in the reorganization plan on the Post Office. It was seriously questioned only in the reor- ganization plan on the Department of Welfare. 2. Creating the position of "administrative assistant secretary" in the major departments and agencies. The general idea of this post as advanced by the Hoover Commission is to have