ally related to the reductions in planned military strengths and the continued revision of methods and procedures to attain the maximum utilization of manpower resources.

Effective November 1, 1956, the Office of the Assistant Chief of Staff for Reserve Components was established and concurrently certain related functions of the Office of the Deputy Chief of Staff for Military Operations, the Office of the Deputy Chief of Staff for Personnel, and the Office of the Special Assistant to the Chief of Staff for Reserve Components, Office of the Chief of Staff, were transferred to that Office.

DEPARTMENT OF THE NAVY

The Assistant Secretary of the Navy reported that although there was a nominal increase of 115 as shown in departmental employment, essentially to strengthen departmental administration in vital areas, the net reduction in employment for the Department of the Navy as a whole totaled 8,803 during the year.

The Department also reported the following details as to changes in organization and civilian personnel:

Executive Office of the Secretary

During the period from January 1 to December 31, 1956, the Office of Legislative Liaison, formerly under the Office of the Judge Advocate General, was established as an independent office.

An Assistant Chief for Performance was added in the Bureau of Naval Personnel and a Special Missile Weapon System Office in the Bureau of Ordnance. The Planning and Progress Division, Naval Ordnance Establishment Division, Material Division, and Research and Development Division were redesignated as Assistant Chief for Planning, Assistant Chief for Naval Ordnance Establishments, Assistant Chief for Material, and Assistant Chief for Research, respectively.

Office of the Chief of Naval Operations

During this period the Progress Analysis Group, General Planning Group, Long Range Objectives Group, and the Naval Inspector General were combined and redesignated as Staff Offices; and the ACNO (Naval Reserve), DCNO (Personnel), DCNO (Fleet Operations and Readiness), and Naval Communications Division were combined and redesignated as DCNO (Personnel and Naval Reserve) and DCNO (Fleet Operations and Readiness).

Bureau of Supplies and Accounts

During this period the Planning Division was divided and redesignated as the Director of Planning and the Director of Management Engineering.

The increase in the Office of the Comptroller during the period was reported as being due to the transfer of functions and personnel from the Assistant Chief Accounting and Disbursing. In addition to the corresponding decrease in the Office of the Assistant Chief of Accounting and Disbursing, seven positions were eliminated in that Office by transfer of certain functions in the field service.

The increase in the Office of Assistant Chief for Supply Management is the result of the creation of the Forms and Publications Supply

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Division, a new organizational unit, which will move to Byron, Ga., on March 15, 1957.

Decreases in the Offices of the Director of Administrative Services and Assistant Chief for Transportation consist of unfilled positions. Active recruitment was reported as being under way to fill these vacancies.

Bureau of Yards and Docks

The Real Estate Division in the Bureau was redesignated as the Assistant Chief for Real Estate, and the Assistant Chief for Administration and Personnel and Assistant Chief for Financial Management have been merged and redesignated as the Assistant Chief for Administration and Comptroller.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

The Secretary reported that the total number of employees in the Department of Health, Education, and Welfare on January 1, 1957, was 49,946, an increase of 5,090 over the previous year. Seventy-five percent (3,806) of this increase was in medical research at the National Institutes of Health at Bethesda, Md., and in the Social Security Administration for the expanded program of additional and new benefits under the 1956 amendments to the Social Security Act. The remainder of the increase resulted primarily from other programs authorized or expanded by legislation enacted in 1956, such as the Water Pollution Control Act Amendments of 1956 and the National Health Survey Act, and previous legislation to carry out existing programs, such as the Indian health program. The principal changes in organization and staffing for each of the operating agencies to carry out the recent enactments and to improve the operations of existing programs are listed below.

Office of the Secretary

The principal organizational changes in the Office of the Secretary, during 1956, involved a realinement of staffs for more effective coordination of Department activities. The Office previously designated Assistant Secretary for Federal-State Relations has been redesignated Office of the Assistant Secretary, with practically no change in strength and functions. The staff and functions previously grouped under the Assistant Secretary for Program Analysis have been largely regrouped under an Assistant Secretary (for Legislation) and an Assistant to the Secretary (for Program Analysis) who also supervises the Special Staff on Aging.

Office of Field Administration

There was a total increase in regional offices of 49 employees, of which 30 was due to additional workloads in fiscal payroll and personnel activities to service the increased staffs of the Department operating agencies. The remainder of the increase was due primarily to the additional staff authorized by Congress to reduce the backlog of State audits and for the disposition of surplus property for civil defense purposes.

Food and Drug Administration

A new five-bureau organizational structure was established consisting of a Bureau of Biological and Physical Sciences, a Bureau of

Enforcement, and Bureaus for Field Administration, Medicine, and Program Planning and Appraisal. The 2 positions of Associate Commissioners were abolished and their functions grouped under the five bureau directors. The more compact bureau structure narrows the span of control by decreasing the number of officials who report directly to the Commissioner.

The headquarters staff was increased by 30 positions; 18 of which were due to the expansion of enforcement operations; and 12 to (a) additional work performed for other Government agencies on a reimbursable basis, and (b) the expansion of the civil-defense program. The field service was increased by 56 positions, mainly in the inspectional and analytical staff.

Office of Education

In order to strengthen its services to the education profession and the public, the Office regrouped its programs and functions in three broad areas of educational research, educational services, and administration of grants. The Divisions within each of the program activities were placed under the administrative direction of an Assistant Commissioner.

During 1956, there was an overall increase in the Office of Education from 531 to 608, an increase of 77 employees. Some of the increases in employment resulted from legislation for the cooperative research program (8), the Library Services Act (10), and the Committee on Education Beyond the High School (12). The remainder of the increase (47) resulted from expanded activities in established programs, with the greater proportion (27) going to the research and statistical services performed by the Office.

The Library Services Branch and the Practical Nurse Education Branch were established during 1956 to carry out Public Laws 911 and 597, respectively, enacted by the 84th Congress.

Office of Vocational Rehabilitation

The moderate increase of 8 employees over last year was due entirely to meet additional workloads involved in the 1954 amendments to the Vocational Rehabilitation Act which authorized a greatly expanded grant program to the States.

Public Health Service

Office of the Surgeon General.-There was an increase of 34 employees; 12 of this increase was in the Division of Personnel where additional employees were required in the continuing drive to expand and train the Inactive Commissioned Reserve for call in time of war or other emergency under civil-defense delegations. The remainder of the increase was due primarily to the passage of legislation requiring the establishment of a national health survey program and to the need for additional housekeeping services in the Office under newly enacted laws for the Service.

Bureau of Medical Services.-The moderate decline in the number of employees in Freedmen's Hospital, caused by a reduction in the appropriation justified by a lower tuberculosis patient load, almost offset the several minor increases in staffing. Increases were in the following Divisions: Indian Health, because of continued expansion of the program; Nursing Resources, because of enactment of the Health Amendments Act of 1956; and Dental Resources, because of special research studies in dental care.

Bureau of State Services.-The Water Pollution Control Act Amendments of 1956 resulted in a 50-percent expansion in employment in the Division of Sanitary Engineering Services. Two new organizational units were established in the Division of Special Health Services: (a) the air-pollution medical program, and (b) accident prevention activities, the latter partially as a result of the transfer of home-accident work from another Division. A 10-percent increase in staffing at the communicable disease center (Atlanta, Ga.) was accounted for by the filling of vacancies and small additional appropriations for several of the programs. At the end of the year, the transfer of the Venereal Disease Branch from the Division of Special Health Services to the communicable disease center was pending.

National Institutes of Health.-Total employment increased from 4,427 to 5,247, or by 820 employees. Each of the Institutes expanded its staff during the calendar year, Congress having appropriated considerably more money for fiscal year 1957 than for 1956. Three new centers were established: the center for aging research, the cancer chemotherapy national service center, and the psychopharmacology service center. A new Health Research Facilities Branch was established to carry out the Health Research Facilities Act of 1956. A Research Facilities Planning Branch was set up to work with the Public Buildings Service of General Services Administration on the design of National Institutes of Health construction projects, and to prepare plans and specifications for special scientific equipment and research facilities.

The patient census at the clinical center rose steeply again in 1956, as planned, which necessitated a 50 percent increase in civil-service employees. The 2 new administrative divisions were established late in the calendar year 1955: the Division of Business Operations, and the Division of Research Services. The Divisions got underway early in 1956, which accounts for the enormous reduction in personnel in the Office of the Director (1,476 down to 51) and the large increases in the 2 administrative Divisions.

National Library of Medicine.-The National Library of Medicine Act in 1956 transferred the Armed Forces Medical Library from the Department of Defense to the Public Health Service. The transfer, on October 1, 1956, brought with it more than 200 employees.

Field Establishments.-The number of civil-service employees in the field rose from 11,063 to 11,544, an increase of 481, resulting from general program expansion. Each Bureau in the Public Health Service shared in the increase, although numerically, the largest increase was in the Bureau of Medical Services for the Public Health Service hospitals and the Indian Health installations.

Commissioned Corps.-The number of commissioned officers on active duty rose from 2,845 to 3,052-the result of new programs under legislation enacted in 1956 by the 84th Congress and the expansion of other programs in the Public Health Service.

St. Elizabeths Hospital

The increase of 39 employees at St. Elizabeths Hospital in 1956 was due principally to an expansion of the student nurse affiliate program in the Division of Medical Services requiring 10 new employees, and 20 new employees in the Division of Administration for staffing of the kitchen and the cafeterias on the opening of the new Dorothea Lynde Dix Pavilion for additional patient admissions.

Social Security Administration

Office of the Commissioner. There were no changes in organization during 1956. An increase of four employees was due to the filling of positions during the year which were vacant on December 31, 1955. Bureau of Old-Age and Survivors Insurance. The Bureau increased its staff by 2,903 employees during 1956. The increase, mainly in the field, was necessary to meet the voluminous workload caused by the additional and new benefits provided by the 1956 amendments to the Social Security Act. The 6 area offices increased their staffs from 3,083 to 3,603, or by 520 employees. The district offices increased from 538 with a total staff of 8,263 employees to 552 offices with a total staff of 9,971, or by 1,708 employees. (The total staffs for the district offices include Bureau employees located in regional offices.)

In the central offices of the Bureau, there was an increase in staff from 6,122 to 6,797, or by 675 employees. The principal organizational changes and staffing made in the central offices were as follows: Office of the Director. The Office of Information Service added a new function to its responsibility-correspondence management. This function is not only new to the Office but also to the Bureau. The Bureau health program increased its staff to carry out a much broader concept of the program in order to bring additional services to Bureau employees. Total increase, 10 employees.

Division of Claims Policy. A new Welfare Branch was established to (a) reexamine program objectives relating to broad social welfare affecting Bureau policies of administration, (b) formulate new program concepts in this area that can be implemented within the framework of existing legislation, and (c) promulgate policies and related guidelines for administration of the areas. Total increase, 7 employees.

Division of Field Operations. The Management Branch was reorganized from 2 sections to 4 groups. The group concept was found more conducive to effectiveness and efficiency because of the growth in the scope and complexity of the Branch and the need for greater elasticity. The Coordination and Procedures Branch concerned with the Division's operating policies, methods, procedures, and practices, was reorganized from 4 functional work groups to 5 work groups established on a subject matter basis. Total increase, 13 employees. Division of Management Planning and Services. The Administrative Management Branch reorganized into 5 groups to provide specialized attention in 5 management areas: (a) organizational planning, (b) work planning, (c) survey, (d) management planning, and (e) communications. Substantive planned expansion to effectively set off these areas have not been fully completed. Total increase, 34 employees.

Division of Personnel. A Standards and Methods Branch was established with the objective of undertaking a long-range study approach to provide a substantive basis for planning of new objectives, and the concentration of effort on new developments essential for the Division in its leadership role in this direction. Total increase, 15 employees.

Division of Accounting Operations. The increase of 412 employees for the year was directly due to increased workloads under the 1954 and 1956 amendments to the Social Security Act.