Impact of O ffice A utomation

in THE

Jntemai {Revenue Sewice

A Study of the Manpower Implications

During the First Stages of the Changeover

Bulletin No. 1364

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREAU OF LABOR STATISTICS

Ewan Clague, Commissioner

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OTHER BLS PUBLICATIONS ON AUTOMATION AND PRODUCTIVITY

Industrial Retraining Programs for Technological Change (Bulletin 1368, 1963). Forthcoming.

A study of the performance of older workers based on four case studies of industrial plants.

Impact of Technological Change and Automation in the Pulp and Paper Industry (Bulletin 1347, 1962), 92 pp.,

50 cents.

Surveys the nature, status, and outlook of technological innovations and implications for productivity,

production, employment, occupational requirements, and industrial relations practices. Includes three case

studies of recent technological innovations.

Implications of Automation and Other Technological Developments: A Selected Annotated Bibliography

(Bulletin 1319, 1962), 136 pp., 65 cents.

Describes over 500 books, articles, reports, speeches, conference proceedings, visual aids, and other

readily available materials published primarily since 1956.

Technological Change and Productivity in the Bituminous Coal Industry. 1920-60 (Bulletin 1305, 1961),

136 pp., 65 cents.

Trends in technology and productivity and implications for employment, unemployment, wages, prices,

and profits.

Impact of Automation (Bulletin 1287, I960), 114 pp. Out of print, available in libraries.

A collection of 20 articles about technological change, from the Monthly Labor Review.

Adjustments to the Introduction of Office Automation (Bulletin 1276, 1960), 86 pp., 50 cents.

A study of some implications of the installation of electronic data processing in 20 offices in private

industry, with special reference to older workers.

Studies of Automatic Technology (Free).

A series of case studies of plants introducing automation. Describes changes and implications for

productivity, employment, occupational requirements, and industrial relations.

A Case Study of a Company Manufacturing Electronic Equipment.

The Introduction of an Electronic Computer in a Large Insurance Company.

A Case Study of a Large Mechanized Bakery (Report 109).

A Case Study of a Modernized Petroleum Refinery (Report 120).

A Case Study of an Automatic Airline Reservation System (Report 137).

Indexes of Output per Man-Hour for Selected Industries. 1939 and 1947-61. Annual Industry Series

(October 1962), 44 pp. Free.

Indexes of output per man-hour, output per employee, and unit labor requirements for 22 industries,

including coal and metal mining, various foods and fibers, basic steel, etc.

Trends in Output per Man-Hour in the Private Economy, 1909-1958 (Bulletin 1249, 1959), 93 pp., 50 cents.

Indexes of output per man-hour, output, and employment in major sectors. Analysis of trends and factors

affecting changes.

Sales publications may be purchased from the Superintendent of Documents, Washington 25, D. C., or from

regional offices of the Bureau of Labor Statistics at the addresses shown below. Free publications are

available, as long as the supply lasts, from the Bureau of Labor Statistics, U.S. Department of Labor,

Washington 25, D. C.

Regional Offices:

New England Region

18 Oliver Street

Boston 10, Mass.

North Central Region

105 West Adams Street

Chicago 3, 111.

Middle Atlantic Region

341 Ninth Avenue

New York 1, N.Y.

Southern Region

1371 Peachtree Street, NE.

Suite 540

Atlanta 9, Ga.

East Central Region

1365 Ontario Street

Cleveland 14, Ohio

Western Region

630 Sansome Street

San Francisco 11, Calif.

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Impact of Office Automation

in THE

internal ^avenue Senaece

A Study of the Manpower Implications

During the First Stages of the Changeover

Bulletin No. 1364

July 1963

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREAU O F LABOR STATISTICS

Ewan Clague, Commissioner

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Preface

Concerted efforts to improve efficiency through automation, without

causing hardships on employees, are likely to be among the key challenges of

public administration in the 1960's. According to Bureau of the Budget estimates, the Federal Government will have about 1,500 computers in use by mid1966, a 50 percent increase over the number in mid-1962.

This study describes the manpower impact of the introduction of a

large-scale electronic computer system in the Internal Revenue Service (IRS),

a key Federal Agency with more than 50,000 employees. The report covers:

Nature and objectives of the conversion, planning of manpower changes, administration of personnel procedures, impact on employees, staffing of automatic

data processing (ADP) jobs, training and retraining of employees, manpower

problems, and employment outlook. The experiences described should be useful

to other Government Agencies and to private organizations where large-scale

technological changes are being planned. Chairman of the Civil Service

Commission John W. Macy, Jr., is hopeful that in the IRS conversion ". . .

we will have developed some workable formulas for facilitating future

transitions."

The report is based on interviews with IRS officials and employees,

statistical data collected especially for the study, public documents, and

internal IRS memoranda. Representatives from the Bureau of Labor Statistics

visited offices in the IRS Atlanta region and interviewed employees, supervisors, and union officials concerned with the new ADP system to obtain firsthand knowledge of problems which arose and techniques developed to alleviate

them.

IRS officials and employees were extremely helpful and cooperative

in gathering information for this report. Special acknowledgment is due

A.J. Schaffer, Director of Personnel, and J.R. Stone, J.G. Fowler, G.H. Finn,

and L.W. Peeler of his staff. In Atlanta, Regional Commissioner U.J. Bookholt,

James Corley, Jr., Mary King, and the district and service center directors

and their staffs provided valuable assistance.

The study is part of the Bureau of Labor Statistics research

program on the progress and implications of productivity and technological

change and is designed to support the Labor Department's activities in carrying

out the objectives of the Manpower Development and Training Act. This bulletin was prepared by Richard Riche and James Alliston, under the supervision of

Edgar Weinberg, Chief of the Bureau's Division of Technological Studies, under

the general direction of Leon Greenberg, Assistant Commissioner for Productivity and Technological Developments.

i

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Contents

Highlights and summary ............... ....... ............. • • 1

Background ........ • ••••••••.... ............. . . . . 1

Planning manpower changes ................. •••• .......... . • • 1

Administering manpower policies ................. ••••••••• 2

Impact on e m p l o y e e s ............................. .................. 2

Major occupational c h a n g e s......................... .. ............. 3

Recruiting and selecting ADP employees . . ............ ....... 3

Training and retraining ............................................ 4

Some manpower problems .... ................. • • • . • • • • • • 4

Outlook for manpower changes . . .................................... 4

Chapter 1. Background .*•••••«••••••••••••••.• 6

Growth of paperwork .............................. .................. 6

Past changes in technology and organization ....................... 6

Chapter 2. Introducing automatic data processing . . . . 8

Initial steps ••.••... ...................................... 8

The new data processing s y s t e m ...................................... 9

Organizational changes . . . ........................................ 12

Objectives of the system . . ..................... ••••••••• 13

Manpower in the changeover.............. .................. •••• 13

Chapter 3. Planning manpower changes ............................... 15

Manpower policies • • • ...................................... .. • . 15

Exploring manpower problems ....................... 15

Informing e m p l o y e e s ................ • 16

Consulting employee organizations .......... •••••• ........ 17

Chapter 4. Administering manpower policites ......................... 18

Reassigning displaced employees ......................... ..... 19

Measures to facilitate placement ................. ••••••••• 19

Early retirement of displaced employees ..... ... 20

Use of temporary employees................. ............. .. • • • . 20

Use of temporary promotions ....................... .. • • • 21

Restriction on h i r i n g .................. 21

Chapter 5. Impact on employees ..... ........................... 23

Age and sex of affected employees ................. •••.•••• 23

Educational level ....................... 23

Federal service and retirement eligibility ................. .... 24

Occupational background .......................... . • • ........... 26

Projected changes in employment and occupational requirements . . . 27

Impact at midconversion ••.•••••• ........ • • • • • • • • 32

Chapter 6. Staffing ADP positions ................................... 34

Number and location of ADP positions .......... .. • • • 34

Recruitment and s e l e c t i o n .................... . 35

Staffing the Martinsburg Center .................................... 35

Staffing the Atlanta Service Center •••••••••• .......... 36

Source of ADP personnel ............................ .. ............. 36

Characteristics of ADP employees .......... 37

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Contents--Continued

Chapter 7. Training and retraining employees ........ . ............. 41

Employee training programs ......................... ........ 41

Retraining affected employees ......................... . ........ • 41

Training for ADP jobs ................................ ................ 45

Chapter 8. Manpower problems of the changeover ....... ........ 49

Obstacles to m o b i l i t y.............. 49

Maintenance of adequate communications . ................... .... 51

Placement problems .................................................. 51

Training p r o b l e m s................ 52

Increased stress and shift work ...................................... 53

Recruiting specialized employees .................................... 54

Chapter 9. Outlook for manpower c h a n g e s ................ ............ 55

Placement of employees .............................................. 55

Incentives for mobility .......... . ............... ........ 56

Future i n n o v a t i o n s............................. 56

Implications for community employment ........ ..... .......... 56

Research outlook .................................................... 57

Tables:

1. IRS workload and employment, selected years, 1930-60 ...... 7

2. ADP conversion schedule and personnel impact, by region ......... 9

3. Atlanta region: Employment in affected units, by district

office, fiscal years 1960-62 and projected, 1966 . . . ........ 18

4. Atlanta region: Age of affected employees, by sex ....... 23

5. Atlanta region: Educational level of affected employees, by age

g r o u p .............................................. 24

6. Atlanta region: Years of Federal Government service of affected

employees, by age g r o u p .............. 25

7. Atlanta region: Age and sex of affected employees, by

occupational group ............................... ••••••• 26

8. Atlanta region: Projected change in supervisory jobs for

affected operations for a large district office . . .......... 30

9. Atlanta region: Average grade and distribution of jobs by grade,

affected district units and Atlanta Service Center, before and

after ADP .............................................. .. • • • 31

10. Atlanta region: Progress of employment changeover in affected

units of district offices, July 1960 to July 1962 ............. 33

11. ADP employment, by occupation and location, as of April 1962 . . 34

12. Source of ADP employees, by occupational group ........... .. 37

13. Age and sex of ADP employees, by occupational g r o u p ............. 38

14. Occupational background of ADP employees, by selected ADP

occupations ........ •••••.••••• ................. • 40

15. Contents and length of retraining courses ....................... 44

16. Training programs for ADP occupations .......................... . 46

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Contents--Continued

Charts:

1. ADP information f l o w .............................................. 12

2. Atlanta region: Projected changes in occupational groups in

affected units and service center, 1960-66 # . ................. 27

3. Atlanta region: Educational level of employees in affected units

and in ADP . . . . . ............................................ 39

Appendixes:

A. Tables:

A-l. Total district office employment and employees in affected

units, by district, July 1961 • •••••••••••••• 59

A-2. Atlanta region: Age and sex of affected employees, by

district offices ...•••••••..•• .......... . . 61

A-3. Atlanta region: Years of Federal Government service of

affected employees, by retirement age group • . • • ........ 62

A-4. Description of job duties in clerical classifications .... 63

A-5. Atlanta region: Projected changes in occupational requirements for affected district units and Atlanta Service Center 65

A-6. Grade of ADP employees, by occupation ........................ 66

A-7. Years of IRS service, all ADP employees and affected

employees in Atlanta r e g i o n s ............................... 67

B. First issue of ADP News (page 1 ) .................................. 68

C. Qualifications inventory card .... .......... . . . . . . . . 69

D. Checklist for filling vacancies occurring before and during ADP . 70

E. Recruitment announcement, The Digital Computer Programmer in the

Internal Revenue Service ...... ............... . ........ 71

F. Automatic data processing supervisory evaluation ................. 72

G. Selected bibliography on government automation ................. . 73

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IMPACT OF OFFICE AUTOMATION IN THE

INTERNAL REVENUE SERVICE

Highlights and Summary

The introduction of automatic data processing (ADP) continued

efforts over the years by the Internal Revenue Service to find ways of handling more efficiently a growing volume of tax returns and documents. During

the changeover to a large-scale electronic computer system, the IRS developed

innovations in manpower policies and procedures to maintain job security and

to utilize the skills of affected employees by productive placements. These

measures have broad significance as guidelines for orderly adjustments to

office automation.

This bulletin covers the general background of the conversion and

some specific manpower developments in offices in the Atlanta region, which

comprises seven Southern States. The conversion will not be completed in

Atlanta until 1966, and nationally until 1968. Therefore, the full impact has

not yet been felt.

Background

A decision to install ADP was reached in March 1959, following more

than a year of extensive exploration of technical feasibility by IRS planning

experts. The changeover involved establishing a comprehensive data processing

system, requiring the introduction of electronic computers, a taxpayer identification system, a centralized master file of taxpayer accounts on magnetic

tape, and significant changes in organization, manpower, and flow of work.

The original plans provided that many of the routine data processing tasks in

62 district offices will be centralized and processed on computers at 9 new

regional computer (or service) centers and the National Computer Center at

Martinsburg, W. Va. (A recent decision will reduce the number of regions from

9 to 8, regional service centers from 9 to 7, and eliminate 4 district offices.)

Enforcement and public information and assistance activities will remain in the

district offices. The new data system is expected to result in the processing

of a much greater workload without a commensurate increase in employment and to

lead to more efficient and effective enforcement of tax laws. Computer processing first began in December 1961.

Planning Manpower Changes

A unique aspect of the IRS approach to the changeover was the extraordinary attention given at top levels of management to manpower as well as technical planning. Experts were charged with full-time responsibility for planning

the manpower shift. At an early stage of the conversion, the IRS Commissioner

announced a policy of maintaining job security for affected employees by

avoiding, if at all possible, layoffs, downgradings, and compulsory relocation.

As part of this policy, the changeover in each region was scheduled over several years to allow enough time to retrain and reassign affected employees.

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About 5,000 routine office jobs across the Nation are expected to be eliminated or shifted to regional service centers by July 1968; at the same time,

a greater number of new jobs will be created in regional centers to do much

more work. Thousands of additional jobs may be indirectly affected by

required reassignments.

Administering Manpower Policies

In cushioning the impact of ADP on employees, the IRS, with Civil

Service Commission support, was willing to explore new approaches, and to

adjust and modify usual personnel policies to meet the special needs posed

by an extraordinarily large scale adjustment problem. Hie IRS approach

required that considerable attention be given to the problems of individual

employees.

To facilitate transfer of employees to vacant jobs, the IRS took an

inventory of the skills of employees in the affected units, made efforts to

match displaced employees and job openings, gave employees counseling and

guidance about job opportunities, and offered training to improve employee

qualifications. The emphasis was to give employees in directly affected

activities full opportunity to transfer voluntarily to other jobs, either

those vacated through attrition in unaffected units or to new jobs opening in

the new regional centers.

To make placement of affected employees easier, the Civil Service

Commission allowed the IRS to relax certain qualification standards for positions and to extend periods of temporary appointments and assignments. The

use of attrition, as a means of reducing employment, was encouraged and

retirement possibilities were clearly explained to eligible employees whose

jobs were to be eliminated. The hiring of new employees on a permanent basis

was restricted and the hiring of temporary employees to carry on necessary

activities was expanded. Special attention was also given to keeping employees informed, improving communications between national, regional, and district

offices, and to consulting with employee organizations. Finally, IRS officials

contacted other Federal agencies to locate positions for affected employees.

Impact on Employees

The conversion in the Atlanta region, the first area to adopt ADP,

was estimated to involve directly about 1,000 of more than 4,000 employees

working in units of 7 district offices. These affected employees were primarily older women with most of their working experience in Government.

Their duties mainly involved manual processing of tax returns. The remaining

3,000 employees, who were only indirectly affected, worked in enforcement and

public information and assistance activities. Of the jobs directly affected,

the IRS estimated that nearly 500 will be eliminated by July 1966. Although

a greater number of jobs are being created in the Atlanta regional center,

many require different skills. Moreover, all are located outside the commuting

area of most affected employees. The impact may be cushioned since about

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one-fifth of the affected group was eligible (in January 1962) for a retirement annuity. However, some of those eligible may not be willing or

financially able to retire.

During the first 2 years of the changeover (July 1960-July 1962),

permanent employment in affected units was cut back by 234 employees or 22

percent, partly by attrition and partly by reassignment of employees to other

jobs in enforcement and public information and assistance work, not directly

affected. Of the reassigned employees, 90 relocated in another city. Nearly

all moves were less than 500 miles. No employee was laid off.

Major Occupational Changes

According to occupational projections through July 1966, significant

changes are expected in job structure in the affected work. Routine clerical

work, involving posting, checking and maintaining records, and lower grade

supervisory levels in the districts will show a substantial decline. A great

increase in card punch and related jobs at the service center will be needed

to prepare data for ADP. In district offices, public information and assistance and correspondence work will be expanded because of enlarged enforcement

activities.

New ADP jobs for managing, planning, and programing were created.

By July 1962, 261 persons in the IRS were engaged in eight ADP occupations

(excluding card punch operators) needed for the new Master File system. Over

two-thirds of the 261 employees were programers and management or systems

analysts; about one-fifth, managers and administrators; the rest were console

and equipment operators, schedulers, and tape librarians. Over three-fourths

were located in Washington, where programing was centralized. Only 32 were

located in the Atlanta center, and they comprised only a small percent of total

employment at the center. The rest operated the National Computer Center in

Martinsburg, W. Va.

Recruitinn and Selecting ADP Employees

The IRS primarily recruited from within, in order to utilize employee

skills and experience. About 4 out of 5 ADP employees initially selected for

the eight ADP occupations were IRS employees, most of whom had technical or

supervisory experience. Key ADP jobs were filled through a systematic selection procedure which included written tests, interviews, and supervisory

evaluations. Those who applied and were selected for planning and programing

jobs typically were young men with a relatively high educational level. Relatively few district office employees whose jobs were scheduled for elimination

were selected for ADP jobs. Most of the managerial and supervisory positions

at the service center, exclusive of ADP positions, were filled by transfers

from the districts.

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Training and Retraining

An important feature of the IRS manpower program was the effort to

retrain those employees in jobs to be eliminated in the Atlanta region and to

train those selected for ADP jobs. The IRS* experience in conducting training

programs for administering new tax laws proved valuable in this changeover.

First, all district office employees, directly or indirectly affected by the

change, were given opportunities to attend IRS classes in accounting and

income tax law so that they might qualify for other jobs. Between July 1960

and July 1962, 241 employees working in the affected units completed one or

more classroom courses. Several employees completed 6 courses. Most training was given after working hours because of skills shortages, heavy workloads

and necessary overtime. Second, full-time specialized classroom and on-thejob training during working hours was given those employees who transferred

from affected jobs to other permanent jobs. Classes for some types of technical work were conducted in a central location and employees attending from

other localities received travel allowances. Third, the IRS gave employees

selected for certain new ADP jobs--programers, systems analysts, and ADP

administrators--several weeks of expense-paid, full-time classroom training

at centralized locations, followed by lengthy on-the-job training. Equipment

operators received about a week of formal training by the equipment

manufacturer.

Some Manpower Problems

Although the first stages of the changeover (1960-62) have been

described as successful by the IRS, some manpower problems involving employee

mobility, retraining, reassignment, stress, communications, program delays,

and recruitment arose. Some affected district office employees hesitated to

take new jobs in Atlanta. Key obstacles mentioned by affected employees were

fear of financial loss on sale of a house, concern over loss of spouse's job,

and uncertainty about the relative cost of living in a different community.

The extent to which employees were reluctant to relocate was not fully anticipated by the manpower planning experts. Another problem, also not fully

expected, was uncertainty among some affected employees about the potential

effects of ADP on their jobs. As a result, the IRS found it necessary to

offer employees encouragement to participate in retraining and to accept transfers and relocation. Some employees, especially women with family responsibilities, were reluctant to take training because it was given after working

hours. A few employees and managers reported greater mental stress as more

overtime and greater responsibility were required during the changeover period

and as shiftwork on ADP operations was introduced. Finally, recruiting card

punch operators constituted a serious problem for management because of the

difficulty in locating experienced operators and supervisors.

Outlook for Manpower Changes

An estimated 28 percent reduction of jobs (230 jobs) is planned

during 1962-66, the final phase of the changeover in the Atlanta region. The

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total decline will amount to about 51 percent between 1960-66. Although this

impact may be reduced as manpower needs are reassessed, manpower changes may

become increasingly difficult to administer during this phase. Factors which

could help to avoid layoffs include the availability of funds for a sufficient

number of jobs in other IRS activities, continued attrition, and greater

willingness of employees to relocate to offices where jobs are available.

The final stages may require that even more attention be directed to counsel,

guide, and retrain those employees who remain in jobs to be eliminated and to

assist them in relocating.

New manpower issues will probably arise as ADP technology is further

developed and extended. The experience in the Atlanta region will be useful

in modifying the original guidelines for application in the other IRS regions.

The possible use of optical scanning, electronic transmission, and other automation systems now under consideration will probably create new problems for

manpower planning.

The IRS conversion to ADP involves elimination of large numbers of

clerical jobs on which the communities in the region may have relied and the

creation of some new jobs with different requirements. These changes may

affect labor market conditions and require attention by community educational,

guidance and placement services, concerned with opportunities for the growing

labor force of the 1960‘s.

This study suggests that a better understanding of factors affecting

employee mobility could be especially helpful to any large organization in

planning orderly adjustments to technological changes.

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Chapter I. Background

The framework for m o d e m tax collection was established in

July 1862, when President Lincoln created an Office of the Commissioner of

Internal Revenue in the Treasury Department. The first Commissioner began

with a staff of one clerk and personally read all letters received from taxpayers. Today this office is the Internal Revenue Service (IRS), employing

more than 50,000 persons in offices across the country.

Growth of Paperwork

The paperwork associated with collecting taxes has grown tremendously, especially during and after World War II. Enforcing the tax laws in

I960 required processing more than 400 million documents annually (including

over 94 million tax returns) and mailing out millions of forms, bllls; and

notices. In 1930, only 6 million returns were filed. The IRS estimates

that by 1970, the volume of returns could reach 114 million.

The Increasing paperwork reflects not only the expanding population

and tax base, but also the greater complexity of tax laws. The creation of

exceptions and special cases and proliferation of taxpayer categories contributes to the ever-growing workload.

Past Changes in Technology and Organization

Over the years, the IRS has made major improvements in its equipment and methods. Bookkeeping and other office machines were introduced at

an early date. But the massive growth in workload resulting from excise

taxes, extensions of social security, and increases in tax returns and related documents required continued improvements.

After World War II, IRS management gave high priority to increasing

mechanization and tailoring the organizational structure and work flow to

assembly-line processing. Card punch and materials-handling equipments were

Installed in several of the larger field offices. Although improvements were

made, these Individual offices lacked sufficient work volume to achieve maximum potential savings in labor and other costs.

The centralization of mechanized data processing at the Kansas City

(Mo.) center, in 1954, was a milestone in tax information handling. The new

center used card punch tabulating and calculating machines to process a number of short-form income tax returns (Form 1040-A) from several midwestern

districts with such efficiency that additional work was transferred to the

center and similar mechanized centers were opened in Massachusetts and Utah.

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The IRS also made extensive changes In organization and management

techniques during the latter half of the 1950's. District offices were reorganized, a work planning and control system was developed, and an executive

development program was initiated. A planning and research group was established to investigate and appraise methods of improving the efficiency of

operations.

The growth of the IRS workload and employment from 1930 to 1960

Is shown in table 1. The volume of work Increased substantially, but the

employment rise was relatively smaller. Returns filed per employee--a rough

indicator of productivity--more than doubled between 1940 and I960.

Table 1. IRS workload and employment, selected years, 1930-60

Item

Fiscal year Percent

Increase

1930 1940 1950 1960 1930-60

Tax returns filed (millions) •. 5.9 19.2 89.3 94.4 1,500

Information documents received

(millions) ................... 0.3 21.0 (1/) 325.0 3,055

Revenue collected (billions) .. $3.0 $5.3 $39.0 $91.8 2,960

Employees (thousands) ........ 2.0 22.4 55.6 50.2 318

Returns filed per employee .... 492 857 1,606 1,880 282

2/ Not available.

Source: Internal Revenue Service.

Despite improvements in efficiency, it became apparent that the

growing workload could not be handled effectively merely by expanding employment and retaining conventional data processing equipment. By the late 1950's,

for example, the IRS had to curtail certain enforcement and revenue producing

activities, such as verification of forms W-2 filed by employees with wages

shown on returns. Management, therefore, decided to explore the feasibility

of using high-speed electronic computers for processing the documents.

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Chapter 2. Introducing Automatic Data Processing

Converting to a multi-million dollar automatic data processing

system affecting a large number of employees required considerable advance

preparation. The term Automatic data processing" (ADP) as used by the Federal

Government and IRS includes processing data by electronic computers and auxiliary equipment (including card punch machines) and is generally used interchangeably with the term "electronic data processing" (EDP). Nearly 3 years

were required for the preinstallation stage of the changeover. Much thought

was given to planning for effective use of the equipment, to selecting the

appropriate computer equipment, and to setting objectives, human as well as

technical.

Initial Steps

Initial planning was undertaken in Washington, D.C., by the newly

reorganized Planning and Research organization. Many staff members of this

organization had extensive IRS experience in different activities, including

establishing the three mechanized centers.

In December 1958, the Planning and Research organization presented

a preliminary ADP plan to the Commissioner of Internal Revenue. Several months

of investigation had convinced them of the feasibility of electronic computers

for processing paperwork related to tax returns. In March 1959, Treasury

Department officials approved the plan. It was reviewed by the Bureau of the

Budget later that year, and was presented to the Congress in February 1960 as

part of the budget for fiscal year 1961. Treasury officials described the

program as essential to processing the projected growth in workload.

The IRS Planning and Research organization prepared detailed specifications for an ADP system. The plans provided for computers to be installed

in a service center located in each of the IRS regions and for a National

Computer Center to be established in Martinsburg, W. Va. A private firm of

management consultants, hired to evaluate these plans, found the program sound

and the computer applications feasible.

Since personnel and technical problems could not be wholly foreseen,

it was decided to introduce the system first in one region and later in other

regions over a 6-year period. The schedule called for the beginning of the

conversion in 1961 in Atlanta, followed by the introduction in one or more

regions each subsequent year. (See table 2.) Conversion will begin in the

last regions in 1964. Within each region, the first operation to be converted

to ADP is the processing of business tax returns; next, the processing of

individual tax returns, and then miscellaneous returns and information reports.

The preparatory steps of the conversion in each region begin 1 year before

returns processing begins. The entire conversion is presently scheduled for

completion by July 1968.

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This report highlights the conversion to ADP in the Atlanta region,

comprising seven Southern States. The regional office, regional service center, and a district office are in Atlanta, and a district office is in a

major city in each of the other States. Nearly 4,000 IRS employees worked in

these 7 district offices in July 1961; about 1,000 worked in units which would

be directly affected by ADP. About half the jobs in the directly affected

units were expected to be eliminated or transferred to the Atlanta center by

stages during the conversion. Thus, ADP resulted not only in changes in

number and types of jobs but also in their location.

Table 2. ADP conversion schedule and personnel impact, by region 17

Directly

affected

Year of

beginning

Beginning of year of

processing returns

Region employees

(as of

July 1961)

of

conversion

(January 1)

Business

(January 1)

Individual

(January 1)

United S t a t e s ..... . 10,901 mt w. mm ~ mm m. — mm _ _ _ _

A t l a n t a......... • • • • • • 1,000 1961 1962 1963

Philadelphia .......... 1,420 1962 1963 1965

Cincinnati ............. 1,257 1963 1964 1965

Dallas ................. 918 1963 1964 1965

Omaha 2/ • • • . • • • • • • • • • • • 1,024 1964 1965 1966

Boston 2/ .............. 752 1964 1965 1966

C h i c a g o.... ........... 1,482 1964 1965 1966

New York 1,467 1964 1965 1966

San Francisco 2/ .... . 1,581 1964 1965 1966

1/ Schedule as of June 1963. A recent decision merged Omaha with

the Chicago region as of January 1, 1964.

2/ Conversion of existing mechanized data processing centers.

Source: Internal Revenue Service.

The New Data Processing System

The new equipment was selected by the Planning and Research organization. In January I960, specifications of the system were sent to 42

manufacturers; after 3 months, 6 manufacturers presented proposals.

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.

Baa*;

.r M

The heart of the Martinsburg Computer Center showing electronic equipment

including control panels and tape processing and storage units.

In July I960, an award was made to one of the six firms to provide

computer systems in regional service centers and a larger system in the

National Computer Center. These machines were to be rented. The first computer in the Atlanta Service Center was installed in August 1961; the second

computer in March 1962. A large system was installed in the National Computer

Center in September 1961, 3 months prior to the initial processing of business

returns.

The application of ADP to tax information handling required more

than the replacement of conventional methods with electronic computing equipment. The 11 total systems approach" to data processing was adopted, and plans

were made for extensive changes in work flow, services to taxpayers, and

location of jobs. In short, the introduction of ADP required a review of the

total functions and organization of the entire IRS.

Three important technical and procedural features of the system are:

A three-year master file of taxpayer accounts, a taxpayer identification system,

and increased centralization of data processing. This system has been described

as the "Master File Plan."

A master file of about 80 million business and individual taxpayer

accounts stored on magnetic tape is to be set up at the National Computer

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Center. This is an entirely new activity that electronic data processing now

makes possible. These accounts contain tax data for several years and are

continuously updated to provide quick access to the current status of each

taxpayer's account. A single reel of magnetic tape less than 1 foot in diameter can store a 3-year tax record for thousands of taxpayers. In view of

great geographical mobility of population, a single master file of records was

considered advantageous.

An essential requirement for creating this master file is a comprehensive taxpayer identification system. Taxpayers with social security numbers are required to furnish them to employers and other disbursers of income

and co include these numbers on their tax returns. After congressional

approval of the system, arrangements were made by IRS for the Bureau of Old

Age and Survivors Insurance (BOASI) to assign Social Security numbers to those

individuals needing numbers for tax purposes. Special employer identification

numbers were assigned to business accounts, including trusts and estates.

Greater centralization of routine data processing is part of the new

system. Much of the routine processing of tax returns, now performed in 62

district offices throughout the country, will be shifted to regional service

centers in major geographical areas. Tax documents will be interchanged

between districts and service centers, and magnetic tapes will be interchanged

between service centers and the National Computer Center as part of the integrated system of data handling.

The new system involves changes in the method of processing and

routing tax documents with substantial shifts in the location and nature of

jobs. Taxpayers will continue to file returns and receive assistance in local

district offices, but employees in the district offices will perform only

limited operations before documents are sent to regional service centers.

These preliminary tasks include checking returns for name, address and account

number; depositing and accounting for remittances, and establishing and maintaining initial accounting controls. At the regional service center, employees

will transcribe data to punched cards, convert the data to magnetic tapes, and

ship the tapes to the National Computer Center where they will be entered in

the master file. After the output tapes are returned to the service centers,

high-speed printers will post the information to bills and notices to be sent

to taxpayers, lists of returns for audit, and other control documents. (See

chart 1.) Regional service centers maintain accountability records for

internal revenue taxes collected within the region.

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Chart 1. ADP information flow

The new ADP plan differs radically from the previous system, where

processing work on returns was performed manually at each district office by

workers using typewriters and adding and bookkeeping machines or at three area

processing centers. This system did not involve an integrated master file.

By using electronic computers, many accounting entries that are now mechanically or handposted will be eliminated. Summary postings of totals to ledgers

and journals and some miscellaneous accounting operations will continue to be

performed in the district offices. Centralization of data processing was considered necessary in order to standardize and integrate operations more closely.

A more current status of tax accounts and more economic use of large capacity

equipment are expected to result.

Organizational Changes

The IRS also made major organizational changes to provide a new

administrative framework for the conversion. In late 1959, responsibility for

the conversion was assigned to the Director of the national office Collection

Division (the organization whose operations were affected directly by the new

ADP plan). As ADP activities expanded, management decided to separate that

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Division*s two major responsibilities; enforcement activities were retained

by the Collection Division, and other activities were transferred to a new

ADP Division which was organized in January 1961. The ADP Division Director

was later given responsibility as an Assistant Commissioner for all aspects

of data processing plans and activities. Similar changes in organization

were also made in the Atlanta region.

An ADP advisory group was formed by the Atlanta Regional Commissioner,

comprising the Assistant Directors from each of seven district offices. This

group analyzed problems of the conversion and recommended practical solutions.

The Regional Commissioner enlisted the active cooperation of local officials

by having them participate in planning the changeover.

Objectives of the System

Significant advantages for the Government, IRS employees, and taxpayers are envisaged. The new system offers the possibility of increasing

substantially the IRS capacity to process more quickly, and in greater detail,

larger quantities of routine clerical and accounting paperwork, with a minimum increase in the number of clerical employees. Since the volume and complexity of the overall workload, including enforcement as well as data

processing, is expected to grow significantly, a reduction in total IRS

employment is not expected.

The Service anticipates that laborsavings in routine paperwork will

make available manpower resources for improving enforcement activities that

are now curtailed. For example, some revenue producing enforcement operations,

based on comparing information documents and tax returns can now be undertaken.

The consolidated tax account for each taxpayer will help to identify persons

failing to file returns. Computer techniques also make it possible to verify

all returns and to select those for audit which may yield additional income.

This more comprehensive auditing may ultimately lead to requiring more public

information and assistance work by employees.

The IRS sees important benefits for taxpayers. Improved enforcement is expected to insure that each taxpayer pays his fair share. Errors

will be reduced, undelivered refund checks will be credited to taxpayer

accounts, repetitive taxpayer contacts will be eliminated, and more information

and assistance may be available to the public in the district offices. Finally,

business firms may benefit by being able to submit certain tax information on

magnetic tapes.

Manpower in the Changeover

IRS management recognized early that the introduction of automatic

data processing would have enormous impact on IRS employees. Between 11,000

and 12,000 permanent employees throughout the Nation were working in units of

the Collection Division that would be directly affected. (See Appendix A,

table 1, for the number of employees in directly affected units in each

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district office as of July 1961.) With the shift of returns processing work

from 62 district offices to regional service centers, about half of these

jobs were expected to be eliminated by July 1968, Many thousands of additional employees would be indirectly affected by required reassignments. But

it was anticipated that a greater number of jobs would be needed because of

expanding public service activities and volume of work. The increased employment would be mainly in new regional service centers, while the jobs eliminated would be those in the districts.

Early in the conversion, the IRS affirmed its obligation to minimize

adverse effects on the job security of employees. This decision was one

reason for introducing automatic data processing gradually over a period of

years. Along with technical planning, a special group of personnel experts

in the national office was assigned full-time responsibility for planning

manpower policies and for assisting regional administrators to carry out the

plans.

Personnel planning for technological changes was not new in the IRS

or in the Federal Government. The importance of cushioning the impact of

automation had been stressed by the Civil Service Commission, congressional

committees, and the parent Treasury Department. Federal employee organizations

had urged a variety of measures. General public concern over the employment

effects of automation reinforced the IRS' interest in an orderly changeover.

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Chapter 3. Planning Manpower Changes

Manpower planning steps included making explicit the IRS policy on

job security, exploring manpower problems and developing methods for solving

them, and keeping informed officials and employees who would be affected.

This planning is described in this chapter. The personnel techniques that

were used to administer these policies are discussed in the following chapter.

Manpower Policies

At an early date, the IRS announced to all employees that the

agency's objective was to:

Avoid, if at all possible, reductions in force and involuntary

transfers to other commuting areas and at the same time to place

the maximum number of affected employees in productive jobs, thereby

utilizing invaluable skills and experience.

The IRS also stated that travel and moving expenses would be paid to employees

who accepted new jobs in a regional service center or elsewhere outside their

commuting area.

These policies had been tested during the mid-1950's, when some of

the clerical work in district offices was shifted to three mechanized area

data centers. This work shift, which eliminated from 2,000 to 2,500 district

jobs, was accomplished without involuntary separations.

Exploring Manpower Problems

The exploratory phase of manpower planning began in February I960,

shortly after the IRS invited proposals for the ADP equipment. Personnel staff

members from the national office were assigned full-time responsibility for

estimating the extent of the impact on employees, and problems that might be

anticipated during the conversion period. The group was asked to develop

procedures for eliminating jobs in units where the work was transferred to a

regional service center. They were also charged with developing measures to

minimize hardship on employees without causing serious disruption of continuing

operations.

This phase of planning proceeded at the Atlanta region in several

stages. First, the study group projected the tasks that would remain in the

district office and the staffing patterns that would be required after the

regional service center opened. From these projections, they identified positions to be eliminated or changed. The group spent several weeks in on-thescene investigations of two district offices. They estimated the number of

potential vacancies from attrition and new job opportunities in the regional

service center. Working with individual employee records, they considered

a variety of placement possibilities and training needs for each affected

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worker. On the basis of experience at the two offices, the study group developed a detailed plan for identifying employee adjustment problems to guide

officials in the other district offices.

The next step was to extend planning to all offices in the Atlanta

region. Several months prior to the conversion the study group, together

with regional and district officials, developed staffing projections for each

office and identified jobs likely to be eliminated or changed in grade.

As the manpower implications became clarified, IRS officials realized that certain modifications in civil service procedures would be needed

to facilitate the changeover. These officials undertook negotiations in

Washington, D. C., with the Civil Service Commission to achieve more flexibility in applying civil service regulations. Regional Civil Service officials

were kept continuously informed and actively participated in the conversion

program. The resulting changes are described in chapter 4.

Informing Employees

The IRS decided at an early stage to keep all employees informed of

the progress of the changeover and its implications for job security. Early

communication was considered one means of achieving cooperation in the largescale changes that were to take place. Thus, District Directors notified

their employees as early as 12 to 18 months before any work would be shifted.

During 1961 and 1962, directors issued memoranda to all employees

explaining the conversion progress. Articles were also published in newsletters and employee organization publications. Meetings with affected

employees were held to discuss problems of the change. The information dealt

mostly with career opportunities in ADP, training opportunities, and personnel

policies to ease the impact on affected employees. In October 1961, after

district staffing charts had been projected, the impact on specific jobs was

explained to employees. It was also explained to employees that program

changes and other unknown factors would undoubtedly result in later revisions

of the staffing projections.

In addition to informing those directly affected, the IRS national

office undertook, in a variety of ways, to keep all field employees informed

concerning the personnel implications and the progress of the change. A

4-page periodic bulletin, ADP News, first issued in November 1961, described

job opportunities in the ADP programs (especially at service centers), retraining of displaced employees, and progress of the installation in each

region. (See appendix B.) A sound and color film, ADP and You, first shown

in late 1961, portrayed new employment opportunities in the program. A

15-minute film strip, Let's Get Down to Brass Tacks, about the conversions

personnel impact and procedures to aid affected workers, wes shown in all

district offices of the Atlanta region.

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Consulting Employee Organizations

Although formal collective bargaining in the Federal service had

not been established, employee organizations were informed and consulted. In

July 1961, IRS officials discussed the changeover and its implications with

national officers of three employee organizations having IRS membership: the

National Federation of Federal Employees (Ind.) (NFFE); the American Federation of Government Employees (AFGE); and the National Association of Internal

Revenue Employees (NAIRE), the only active employee group in some of the

districts.

At the regional and local levels, employee groups were also informed

at an annual conference between regional management and employee representatives and by periodic district meetings. In the Atlanta district office, for

example, regular quarterly management-employee conferences were held with

NAIRE representatives. At these meetings, questions about the policies that

the personnel officials had developed were raised and discussed by leading

IRS officials. The conferences provided a means for informing employees and

also a channel of communications from employees.

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Chapter 4. Administering Manpower Policies

Managing the changeover involved major employee adjustments, including the transfer of affected employees to permanent jobs within the same

office or in offices in other cities. This change had to be accomplished

without serious disruption of essential IRS tax collection activities.

Table 3 shows data, on a fiscal year basis, relative to the changeover in the district offices of the Atlanta region. The reduction in employment in district offices was scheduled to take place gradually between

January 1961 and July 1966. The groups directly affected were engaged in

processing business and individual income taxes. Some district office activities such as public information and assistance and enforcement work were not

directly affected.

Responsibility for administering the policies to protect job security was placed on key officials of district offices. To assist these officials, a personnel coordinator was appointed. The coordinator, who had many

years of government personnel experience and graduate work in public administration, traveled extensively within the Atlanta region consulting with and

advising managers in carrying out the policies. Her knowledge and experience

contributed much to the solution of some complex personnel problems that arose.

Table 3. Atlanta region: Employment in affected units, by district office,

fiscal years 1960-62 and projected, 1966

District office

Actual JV Projected 2 / Percent decline

I960 1961 1962 1966 1960-62 Projected

1962-66

All districts .. 1,045 1,000 811 581 22.4 28.4

Atlanta, Ga....... 160 148 121 97 24.4 19.8

Birmingham, Ala. .. 125 119 90 64 28.0 28.9

Columbia, S . C . ... 87 84 75 54 13.8 28.0

Greensboro, N. C. . 201 197 144 110 28.4 23.6

Jackson, Miss..... 73 71 62 39 15.1 37.1

Jacksonville, Fla. 240 230 194 138 19.2 28.9

Nashville, Tenn. .. 159 151 125 79 21.4 36.8

1 / Number of permanent employees in July. Excludes temporary employees.

2 / Number of permanent jobs projected for June 30, 1966 (as of July 1962)

Source: Internal Revenue Service.

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Reassigning Displaced Employees

In reassigning displaced employees, the first step was to identify

the jobs that would be eliminated by ADP, created in enforcement activities

and in the service center, or vacated through reassignment, transfer, or

retirement. Vacancies from all sources were to be used as opportunities for

displaced employees.

The IRS relied heavily on encouraging employees in the affected

office units to seek voluntarily the permanent positions that were opening

up, particularly in the regional service center. The approach was to try

to place in available job openings all individuals who must be reassigned,

without using formal seniority and reduction-in-force procedures that are

usually applicable when jobs are abolished. Major emphasis was placed in

assigning each employee to a suitable productive job, at the same or better

grade, if possible.

Since the transfer of employees was to be a personal, tailormade

procedure of matching employee and job, the personnel officials required a

complete account of each individual's experience, education, qualification,

retirement plans, and ability to relocate. Accordingly, a special placement

data card for each employee in the affected work units was filled out from

records, interviews, and questionnaires. (See appendix C.) During the

interviews, officials counseled employees about their job security and the

advisability of taking training needed for available jobs.

Office managers estimated the extent to which employment would be

reduced by quits, deaths, and retirements. It was readily apparent that

these sources would not take care of all employees in jobs that had to be

eliminated. Transfer to jobs at the newly created regional service center

and to district activities not directly affected by automation became the

principal means of placement for displaced workers. For many, this involved

retraining and/or relocation to another city.

IRS made efforts to find jobs for some displaced employees in two

other Federal agencies--the BOASI and the Treasury Department's Bureau of

Accounts. National officials of the two agencies agreed to cooperate in hiring IRS employees and directed their field offices in the Atlanta and Philadelphia regions accordingly. The BOASI and IRS have offices in many of the

same cities.

Measures to Facilitate Placement

To facilitate placement of employees who demonstrated potentialities

for certain positions but who lacked formal qualifications under civil service

standards, the IRS obtained from the Civil Service Commission special authority to waive certain formal requirements. This procedure gave the IRS increased flexibility to reassign some displaced employees, particularly at the

supervisory levels.

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Some employees who did not fully meet normal CSC standards followed

a personal development plan, arranged by supervisors, to improve their qualifications for their job. (A full account of the retraining is presented in

chapter 7.) For example, a 36-year-old male administrative assistant in an

affected unit was reassigned to a position as training officer. A college

graduate with over 14 years* Federal Service, he was sent to a 2-week management development school and received on-the-job training.

Affected employees who requested transfer to the service center

were given preference if these employees had a satisfactory work record and

were recommended by their supervisors.

Early Retirement of Displaced Employees

Older employees with many years of service whose jobs were eliminated had the alternative of "discontinued service** retirement instead of

transfer and reassignment. To be eligible for these benefits, employees must

have had at least 25 years of service, or must be 50 years old or over and

have 20 years of Federal Service. The annuity was reduced for employees

under age 60. Potential beneficiaries in affected offices were advised of

the eligibility requirements but, in keeping with Federal policy, employees

were not forced to retire if they did not elect to do so.

The usefulness of "discontinued service** benefits in easing the

impact appeared to depend on the employees* economic circumstances. For

example, a 51-year-old supervisor with 22 years of Federal Service welcomed

the opportunity to retire because her children had finished college and, as

the family’s secondary wage earner, her full-time salary was no longer essential. On the other hand, a 62-year-old bookkeeping-machine operator with

21 years of service who was already eligible for voluntary retirement preferred to continue work because her annuity would be inadequate.

Use of Temporary Employees

It was necessary to continue tax collection activities efficiently

while experienced employees were being reassigned to permanent jobs before

their work was shifted to the computer. Management had to find a way to replace these employees without jeopardizing the job security rights of other

permanent employees.

One solution was to hire temporary employees for a period longer

than that customarily allowed. The Civil Service Commission granted the IRS

authority to hire temporary employees to do essential jobs for temporary

periods which can be extended up to 3 years. Ordinarily, temporary appointments are limited to 1 year. Former IRS employees and retired workers are

preferred, under arrangements with the Commission, so that training can be

minimized. Employees given temporary appointments do not acquire seniority

rights for separation purposes, but are entitled to vacation and sick leave.

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Temporary employees were also placed in continuing activities

where it was essential to reserve permanent job vacancies for permanent employees who would be displaced. They also filled continuing jobs in unaffected activities when the incumbents were temporarily reassigned to facilitate the changeover.

Between July 1960, near the beginning of the conversion, and July

1962, a total of 274 temporary appointments were made. In July 1962, a total

of 177 permanent jobs were held by temporary employees. About 20 percent of

these temporary appointments were to jobs outside the affected units, but

were made to facilitate future placement of affected employees by saving

positions until they could be released.

Use of Temporary Promotions

As supervisors and higher grade employees were transferred, some

remaining permanent employees were assigned to higher grade duties until such

jobs were eliminated. It was felt that these employees should receive higher

pay but promoting them permanently would create problems in reassigning them

later without jeopardizing the rights of other permanent employees. To avoid

these problems, the IRS made promotions on a temporary basis. They thereby

avoided increasing the number of higher grade permanent employees and, at the

same time, compensated employees for the level of work being performed.

Restriction on Hiring

To increase the use of temporary employees, it was decided by

regional officials to restrict permanent appointments. District officials

were also urged to abolish positions scheduled for eventual elimination as

they became vacant, or to reconstruct them by assigning the simpler tasks to

temporary employees. A checklist for filling vacancies was issued to insure

that all available alternatives were considered. (See appendix D.)

In July 1961, offices in the Atlanta region began to restrict permanent hiring for jobs which could be used directly or indirectly to place

affected employees. For example, when a job became vacant for which no

affected employees qualified, management encouraged an employee in an unaffected unit to transfer, thus opening a job for which an affected employee

could qualify. The freeze, however, did not apply to jobs requiring scarce

skills for stenographic, professional, and technical work.

Another procedure for reassigning displaced personnel without disrupting tax collection activities was temporary reassignment (or detail) of

unaffected employees from permanent jobs to jobs scheduled to be abolished.

Affected employees were also detailed to continuing jobs for training before

transfer. The Civil Service Commission approved an extension of the usual

6-month detail limit to 1 year.

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The Commission also approved the procedure of hiring new employees

with qualifications in two fields of work--first in a job to be abolished

and then in an unaffected job. The employee, when hired for the continuing

job, agreed to an immediate detail to the surplus job for the duration of

the job. Regular civil service rules provide that employees cannot be

detailed until 90 days following initial competitive appointment.

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Chapter 5. Impact on Employees

To understand the implications of the changeover for IRS employees,

their personal characteristics were considered. Data on age, sex, education,

seniority, and occupation of 1,074 district office employees in affected units

were compiled from placement data cards which had been filled out during the

early part of the changeover. Trends in occupational requirements were estimated from the staffing patterns projected by the planning staff, and the

extent of reassignment and attrition over the first 2 years was determined.

Age and Sex of Affected Employees

Of the 1,074 employees affected, 893 or 83 percent were women.

More than 30 percent of the affected employees were 45 years of age or over.

(See table 4 and appendix A, table 2.) Many of the older women had been

hired during World War II to handle expanded tax collection activities.

Table 4. Atlanta region: Age of affected employees, by sex 1 /

Age group

All employees Men Women

Number Percent Number Percent Number Percent

All ages ..... 1,074 100.0 181 100.0 893 100.0

Under 25 years ... 41 3.8 6 3.3 35 3.9

25-44 years ..... 445 41.4 106 58.6 339 38.0

45-64 years ..... 543 50.6 68 37.6 475 53.2

65 years and over. 45 4.2 1 .6 44 4.9

1 / Age data as of January 1962.

Note: Because of rounding, sums of individual items may not equal

totals.

Educational Level

The educational level of the affected group was relatively high,

as shown in table 5. Only 8 percent of the group had not finished high

school, although this proportion was significantly higher among employees

45 and over. More than 25 percent of the group had some college education.

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Table 5. Atlanta region: Educational level of affected employees,

by age group

Highest educational

level attained

All employees Employees age

45 and over

Employees

under age 45

Number

Percent

Number

Percent

Number

Percent

All levels 1,074 100.0 587 100.0 487 100.0

Less than high school

graduate .................. 87 8.1 74 12.6 13 2.7

High school graduate ...... 443 41.2 184 31.3 259 53.2

Business school graduate ... 254 23.6 149 25.4 105 21.6

College nongraduate ....... 214 19.9 138 23.5 76 15.6

College graduate .......... 68 6.3 37 6.3 31 6.2

College postgraduate ...... 8 .7 5 .9 3 .6

Note: Because of rounding, sums of individual items may not equal

totals.

Federal Service and Retirement Eligibility

Employment in the Federal Government constituted the major job

experience of employees in the affected group. Table 6 shows the years of

Federal Government service, by age group. The average (median) years of

service of employees in the group was about 15. About 20 percent had 20

years or more of Federal Government service.

Under the eligibility requirements of the civil service retirement

system, 100 employees (9.3 percent of the total) had enough service and age

to be eligible for retirement annuities. (See appendix A, table 3.) They

included employees who had at least 30 years’ service at age 60 (or age 55

at reduced annuity), or at least 5 years* service at age 62. Retirement is

mandatory at age 70 with 15 or more years service. Of those eligible, 60

had less than 20 years of service and may wish to work for 5-10 more years

to increase their retirement benefits.

The "discontinued service" retirement provision (described earlier)

allowed employees to receive reduced annuities after 20 years of service at

age 50 or 25 years of service, regardless of age, provided their jobs were

abolished. A total of 118 employees (in addition to the 100 described above)

were eligible under this provision (appendix A, table 3).

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Table 6. Atlanta region: Years of Federal Government Service of affected employees

by age group JL /

Age group

All

groups

(percent)

Years of Federal Government Service

Less than 10 10-19 20-29 30 and over

Employees

Percent

Employees

Percent

Employees

Percent

Employees

Percent

All groups ...... 100.0 267 24.9 584 54.4 212 19.7 11 1.0

Under 25 years ..... 100.0 41 100.0 0 0 0

25-44 years ........ 100.0 177 39.8 235 52.8 33 7.4 0 —

45-64 years ......... 100.0 48 8.8 322 59.3 166 30.6 7 1.3

65 years and over ... 100.0 1 2.2 27 60.0 13 28.9 4 8.9

1 / Includes military service. Seniority as of January 1962.

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Occupational Background

Table 7 presents an occupational distribution of affected employees

by age and sex; occupational groups listed in this table are described in

appendix A, table A. Over half of the employees are included in three occupational groups. Of the 1,074 employees, the largest proportion were in

examining and statistical work. Administrative and supervisory occupations

included 19 percent of the employees.

Table 7. Atlanta region: Age and sex of affected employees,

by occupational group 1 /

-Age Sex

Occupational groups

All

employees

45

and

over

Under

45

Women Men

NumberPercent

Percent

of

total

Percent

of

total

Percent

of

total

Percent

of

total

All groups ............ 100.0 54.8 45.2 83.1 16.9

Administrative ........... 43 4.0 62.8 37.2 7.0 93.0

Supervisory ............... 156 14.5 51.3 48.7 67.3 32.7

Public information and

assistance ............... 5C 4.7 64.0 36.0 80.0 2C.0

Correspondence ........... 91 8.5 70.3 29.7 96.7 3.3

Posting, checking, and

maintaining records ..... 166 15.5 56.6 43.4 95.2 4.8

Examining and statistical.. 244 22.7 62.8 37.2 89.3 10.7

Stenographic and

secretarial ............. 67 6.2 31.3 68.7 100.0 —

Keyboard and other

machine operations ...... 103 9.6 31.1 68.9 88.3 11.7

Sorting, routing,

classifying, and filing .. 154 14.3 55.2 44.8 79.9 20.1

1 / Positions were classified in one occupational group on the basis of

principal duties. See appendix A-4 for definitions. Age data as of January

1962.

Note: Because of rounding, sums of individual items may not equal

totals.

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The majority of administrative jobs and about a third of the supervisory positions were held by men. Stenographic and secretarial positions

were staffed completely by women.

All occupational groups but two were composed primarily of older

workers. Most stenographic, secretarial, keyboard and other machine jobs

were filled by younger employees.

Projected Changes in Employment and Occupational Requirements

According to tentative IRS projections of occupational requirements, the new system using automatic data processing will result in significant changes in employment and occupational structure. (See chart 2.) Although it was expected that 479 jobs in affected units of district offices

probably would be eliminated during 1960-66, over 900 new full-time jobs in

the Atlanta Service Center are planned by 1966. If projections are realized,

this will result in a net employment gain of more than 40 percent in affected

units and the service center combined. More than half the employees in the

service center will process documents and perform other duties similar to

those previously performed in district offices; the remainder will consist

primarily of card punch operators, ADP personnel and administrative staff.

Chart 2. Atlanta region: Projected changes in occupational groups 

in affected units and service center, 1960-66

Percent Change

— 100 — 50 0 50 100 150 200 250 300

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This larger work force in Atlanta will be able to perform a much

larger workload than was accomplished manually. For example, all tax

supporting documents, such as W-2 Forms, may be transcribed to magnetic tape

in Atlanta and matched against information in the master file at Martinsburg.

Previously, only a small sample of these documents could be checked. Preparation of such material for ADP requires personnel to check and code documents carefully and precisely and to prepare punchcards. Centralization of

the keypunch and other data processing functions in the Atlanta Service

Center was considered essential for control and to assure high quality output.

Expanding Occupations. The category of jobs expected to grow

fastest is keyboard and other machine operators (including typists, card

punch operators, and calculating machine and other office equipment operators) . This group will likely grow by nearly 300 percent by 1966 and its

relative importance will be increased sharply, primarily because of the need

for large numbers of card punch operators at the Atlanta Regional Service

Center to transcribe data for computers. (See chart 2 and appendix A,

tables 4 and 5.) Card punch jobs were not needed before ADP. The number of

machine operators in the district offices will be reduced as work shifts to

the service center.

Three other occupational groups expected to increase relatively

more than total office employment between I960 and 1966 are: public information and assistance, correspondence, and examining and statistical. Groups

that are expected to increase less than total office employment are: Higher

grade supervisory, stenographic and secretarial, administrative, and sorting,

routing, classifying, and filing.

Many occupations in the Atlanta Regional Service Center will be

similar to those formerly found in the district offices. Tax examiners, for

example, will comprise up to 28 percent of the service center staff. The

ADP jobs at the service center will be new in the Atlanta region, but only

5 percent of the projected service center work force for 1966 will be classified as ADP occupations (jobs directly concerned with planning, programing,

and operating the system).

Declining Occupations. The number of lower grade supervisory jobs

and jobs related to posting, checking, and maintaining records, even when

considering those established at the service center, will be significantly

reduced. The greatest reduction will be in jobs such as posting, since

nearly all of this work will be programed on computers. About 60 percent of

the 186 jobs involving posting, checking, and maintaining records will be

transferred to the service center from the districts and the remaining jobs

will be abolished. Appendix A, table 5 shows two occupational groups that

will be virtually eliminated in affected district units, although it is expected that similar jobs will be needed in the service center. Some work

in these groups may remain in the districts, but it will be performed by

employees whose primary duties are classified in other occupational groups.

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Courtesy of Internal Revenue Service

transcribing data from tax documents

Courtesy of Internal Revenue Service

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One expected result of the changeover Is a reduced number of

supervisors, A decline from 18 to 12 percent in the proportion of supervisors to total employment in affected operations (at a typical district

office) is projected, although the average supervisory grade will increase

slightly because of such factors as wider span of control and relatively

larger number of subordinates. Table 3 indicates that the proportion of

supervisors in grades GS-12 and above will likely increase, in grades

GS 8-11 will remain approximately unchanged, while the proportion in

grades GS-7 and below will decline.

Table 8. Atlanta region: Projected change in supervisory jobs

for affected operations for a large district office 1 /

Supervisory level

Actual

(October 1960)

Projected

(June 1966)

Numbe r

of jobs

Percent Number

of jobs

Percent

Total .................... 44 100.0 16 100.0

Upper (GS-12 and above) .... 5 11.4 3 18.8

Middle (GS-8 to 11) ........ 16 36.4 6 37.5

Lower (G3-7 and below) ..... 23 52.3 7 43.8

1 / Over 1 million returns received annually.

Note: Because of rounding, sums of individual items may not

equal totals.

Reduced requirements at the working supervisory level are partially

due to simplification of organizational structure. The three-branch organization with three supervisory levels (branch, section, and unit) has been

reorganized and consolidated into two branches and some lower supervisory

levels eliminated.

Grade Level Change. No substantial change is planned in the overall grade level of affected units in district offices. Table 9 indicates

that, between I960 and 1966, the average grade level will increase from

GS-5.01 to GS-5.33, indicating some upgrading of the job structure. The

proportion of jobs in grades GS-4 and below, however, may decline significantly as routine work is shifted from the districts and programed on electronic computers.

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Table 9. Atlanta region: Average grade and distribution of jobs by grade,

affected district units and Atlanta Service Center, before and after ADP

Grade

Affected district units

Affected district

units and

service center

after ADP 2/ Before ADP 1 / After ADP 2/

Average grade 3 / GS- 5.01 GS-5.33 g s -:5.30

Distribution of jobs, by grade

Number Percent Number Percent Number Percent

All grades ... 1,060 100.c 581 100.0 1,559 100.0

GS-14 and over .. 7 .7 7 1.2 14 .9

GS-11 to 13 .... 43 4.1 21 3.6 85 5.5

GS-8 to 10 ..... 73 6.9 35 6.0 79 5.1

GS-5 to 7 ...... 366 34.5 261 44.9 683 43.8

GS-4 and under .. 571 53.9 257 44.2 698 44.8

JL/ Grade structure, October 1, 1960.

2 / Projected grade structure for fiscal year 1966, as of August 1962.

3/ The average grade was determined by adding the numerical grade

assigned to each job in the I960 and 1966 staffing patterns, and dividing

these sums by the total number of positions. (For example, two GS-8 positions and two GS-9 positions would yield an average grade of GS-8.50.)

Note: Because of rounding, sums of individual items may not equal

totals.

The average grade level projected for affected units of district

offices and the service center combined is grade GS-5.30. Although the

average grade of ADP occupations in the Atlanta Service Center is relatively

high (GS-8.4), these occupations comprise only 5 percent of the total service

center staff. They are offset by the large number of relatively routine jobs

such as card punch operators (about 30 percent of all jobs), the bulk of

which are grade GS-3.

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Impact at Mldconverston

Between July I960 and July 1962, 315 employees, or one-fourth of

the 1,254 individuals employed in affected district units at some time during

this period, were reassigned and 128 employees (10 percent) quit, retired,

or died. (See table 10.) During this same time, however, 209 new permanent

employees were hired. Net employment declined by 22 percent--from 1,045 in

July I960 to 811 in July 1962. Most of the new permanent employees were

hired during the first year, before Atlanta regional officials received

Civil Service Commission authority to fill permanent jobs with temporary

employees. Many new appointments were in occupations such as clerk-stenographer, for which displaced employees did not qualify, and in jobs at lower

grades than the displaced employees. Some men were appointed to file clerk

jobs that required heavy lifting.

Of the 315 employees who transferred out of the affected units,

202 employees or about 64 percent were reassigned within their same district

(State), generally within the same commuting area. Of these, 177 employees

or 88 percent were reassigned to the Audit Division and the Delinquent

Accounts and Returns Branch which perform enforcement activities. About

half of this group transferred into technical and semi technical occupations,

such as interviewer, reviewer, and audit technicians. Over 30 percent went

into clerical, stenographic, and typist jobs and the remainder to semiprcfessional or administrative jobs. The remaining group (113 or 36 percent)

transferred to other IRS units or to other Federal agencies. A majority

were reassigned to the Atlanta Service Center, generally in technical jobs

as tax examiners and accounting technicians.

Of the 315 reassigned employees, 90 relocated in another city.

Two transferred to Washington, D.C. All the other moves were less than

500 miles. About 40 percent of the employees moved to other locations

within their States. The others moved to Atlanta, generally from 200 to

400 miles away. Many of these moves included promotion or were to jobs

with promotional opportunities.

Attrition provided 128 vacancies, only a fraction of those needed.

During the 2-year period, 74 employees or 6 percent of the original group

quit, 4 percent retired, and three employees died. Information on the reasons for quitting was not available.

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Table 10. Atlanta region: Progress of employment changeover

in affected units of district offices, July I960 to July 1962

Employment and type of action

Permanent employees

Number Percent

Total employed at some time,

July 1960-July 1962 ................ 1 / 1,254 100.0

Employment, July 1960 .................. 1,045 83.3

New hires, July 1960-July 1962 ........ 2/ 209 16.7

Employment separations ................. 443 35.3

Transfers ............................ 315 25.1

Within IRS district .............. 202 16.1

To Atlanta Service Center ........ 31 6.5

Elsewhere in IRS .......... ....... 11 .9

To other Federal agencies ........ 21 1.7

Attrition ............................ 128 10.2

Quits ............................. 74 5.9

Retirement ........................ 51 4.1

Deaths ............................ 3 .2

Employment, July 1962 .................. 811 64.7

JJ In addition, there were 144 temporary employees in July 1960 and

146 in July 1962.

21 Includes permanent employees hired to maintain essential operations

before authority was granted to use temporary employees. Most appointments

were to clerk-stenographer and other jobs for which affected employees could

not qualify. Some men were hired for file clerk jobs requiring heavy lifting

Note: Because of rounding, sums of individual percentages may not equal

totals.

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Chapter 6. Staffing ADP Positions

A major step in introducing ADP is the recruitment and selection of

employees for positions in management, planning, programing, and operating

computers. In the IRS, these jobs are located in three cities. Eventually,

they will be located in additional cities.

Number and Location of ADP Positions

A total of 261 persons were employed in ADP positions as of April

1962. This included only those in the eight occupational categories related

to the management, programing, and operation of the system (table 11). Card

punch operators, tax examiners, and other clerical employees who prepare data

for computers were excluded. Systems analysts and programers comprised more

than half of the total. Those concerned with operating the equipment only

comprised about 8 percent. The distribution of ADP jobs, by grade, is shown

in appendix A, table 6.

Only 32 or 12 percent of these positions were in the Atlanta region

where the impact was first felt. The bulk--192 or 74 percent--were in the

Washington national office. These comprised most of the administrative,

analysis, and programing positions. The National Computer Center at Martinsburg, W. Va., employed only 37 in ADP positions, as of April 1962, mostly in

operating jobs.

Table 11. ADP employment, by occupation and location, as of April 1962

Occupation

Total

employment

Washington

national

office

Martinsburg

Computer

Center

Atlanta

Service

Center

Total ADP employment 261 192 37 32

Administrators and managers .. 47 34 6 7

Management analysts ......... 30 22 0 8

Systems analysts ............ 69 64 3 2

Programers .......... ........ 75 72 0 3

Schedulers and controlers .... 9 0 7 2

Console operators ...........

Peripheral equipment

18 0 13 5

operators ................... 3 0 0 3

Tape librarians .............. 10 0 8 2

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Recruitment and Selection

The general policy of the IRS was to select employees from within

the Service for ADP positions, in order to use skills and experience from

different program areas. Employees were recruited from other Government

agencies and private industry only when qualified applicants were not available from within the Service.

The recruitment of programers wes directed from Washington and

undertaken in IRS offices throughout the country. (See appendix E for example of recruitment announcement.) Employees were generally recruited as

programer trainees (usually GS-7 and 9 levels) and had opportunities to advance to systems analyst and higher level managerial positions. Initially,

a few employees were recruited directly as systems analysts.

The selection procedure involved a series of steps directed by the

national office. Candidates in programer trainee positions were solicited

from among all IRS employees. Applicants were first required to pass the

Federal Service Entrance Examination and a programer aptitude test, administered in the district offices. Next, supervisors evaluated candidates on

14 aptitude and skill elements. Among the general abilities sought, good

memory, accuracy, reasoning and arithmetical ability, and capacity to follow

complex instructions were considered highly important. (See appendixes E

and F .)

Employees who successfully passed this testing and evaluation program were next interviewed by a panel. Employees from affected units were

given priority for programer trainee jobs, provided they passed the written

tests. Finally, an overall rating based on test scores and ratings, education, experience, and interviews was given. Those finally selected by

ADP management were detailed on a trial basis to the national office for

8-1/2 weeks cf programer training. Final selections were made upon completion of the training.

Officials report that relatively few programers so far have left

the IRS (after training) for employment elsewhere. Trainees agree to remain

employed with the IRS for a minimum of 6 months. Promotion opportunities in

this occupation are considered excellent.

Staffing the Kartinsburg Center

The original plan was to fill as many positions as possible with

IRS employees in affected positions. A recruitment drive was conducted

within the IRS to fill both technical and clerical positions. An adequate

number of applications were received for the clerical area, but only a few

applied or were qualified for the technical computer positions (Console

operator GS-5-11).

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At first, all console operator applicants were required to pass the

Federal Service Entrance Examination and a programer aptitude test, and to

receive a supervisors evaluation of satisfactory. It was later decided that

both tests were measuring the same aptitudes and the programer aptitude test

was eliminated. The candidates who qualified were detailed to Martinsburg

for 2 weeks of observation before selections were made. It was necessary to

use Civil Service registers and outside recruitment sources to supplement the

inservice recruitment for console operators.

Experience of the appropriate level of difficulty was required for

the tape librarians (GS-5-8) and scheduling clerks (G3-5). No written tests

were required.

Staffing the Atlanta Service Center

Applicants for ADP and related jobs at the Atlanta Center were

solicited from all district offices within the region and elsewhere within

the IRS. Top regional ADP officials visited district offices to interview

qualified employees. Those considered best qualified for higher grade positions were invited to visit the center at government expense for panel

interviews.

In recruiting systems and management analysts, a small number of

experienced IRS employees were transferred to these positions, some at their

same grade and others with one-grade promotions under a Civil Service Commission training agreement. Formal qualifications were waived. After training, some were assigned to administrative and managerial positions. In making

selections for systems analyst trainee jobs, all district employees, grade

GS-11 and above, were considered and some were appointed to grade GS-12 and

13 positions.

Source of ADP Personnel

About 4 out of 5 employees initially selected for ADP positions

were IRS employees. (See table 12.) Only a small number of jobs, however,

were filled by affected employees from district offices. Apparently, few

directly affected employees had the background or desire to relocate and

retrain for ADP positions. Employees from outside the Government constituted

only a small portion.

Accepting an ADP position involved relocating for many IRS employees.

A large proportion of the programers were former revenue agents or revenue

officers from field stations who transferred to the national office. Many of

these employees received promotions upon transfer. They received travel expenses and moving allowances upon transfer from a different locality.

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Table 12. Source of ADP employees, by occupational group

Occupational group

Sources of employees

All

sources

Within IRS 1 / Another

Federal

Government

agency

Outside

Federal

Government

Affected

field

units

Elsewhere

Total employment: Number .. 261 22 195 31 13

Percent . 100.0 8.4 74.7 11.9 5.0

Administrators and

managers .................. 47 4 30 9 4

Management analysts ....... 30 3 25 1 1

Systems analysts .......... 69 4 53 9 3

Programers ................. 75 4 69 1 1

Schedulers and controlers .. 9 1 4 2 2

Console operators .......... 18 2 8 7 1

Peripheral equipment

operators ................. 3 0 1 1 1

Tape librarians ........... 10 4 5 1 0

1/ All IRS regions.

Characteristics of APB Employees

To understand the criteria used for selecting ADB personnel, the

characteristics of employees in ADB positions are contrasted with those for

employees in the affected units.

Age and Sex. Most new ADB jobs were filled by young men. (See

table 13.) Four out of five were under age 45. About a third of the administrators and managers, however, and nearly half of the management analysts

were age 45 and over. Employees in affected district units were mostly women

aged 45 or over.

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Table 13. Age and sex of ADP employees, by occupational group 1/

Occupational group

All

employees

Percent of all employees in

occupation

By age By sex

Number

Percent

45

and

over

Under

45

Women Men

All g r o u p s.... ......... 261 100.0 19.9 80.1 5.0 95.0

Administrators and managers. 47 18.0 34.0 66.0 2.1 97.9

Management analysts ........ 30 11.5 46.7 53.3 10.0 90.0

Systems analysts .......... 69 26.4 27.5 72.5 4.3 95.7

Programers ............ . 75 28.7 1.3 98.7 1.3 98.7

Schedulers and controlers .. 9 3.4 — 100.0 11.1 88.9

Console operators ......... 18 6.9 — 100.0 — 100.0

Peripheral equipment

operators ............... 3 1.1 — 100.0 — 100.0

Tape librarians.... ....... 10 3.8 20.0 80.0 40.0 60.0

1/ Age data as of January 1962.

Note: because of rounding, sums of individual items may not equal

totals.

Education. Almost all ADP employees had completed high school and

a majority were college graduates. On the other hand, only 7 percent of the

affected district employees had finished college. (See chart 3.)

Seniority. In general, ADP employees had fewer years of service in

the IRS than employees in affected district units. (See appendix A, table 7.)

About 67 percent of the /DP employees had less than 10 years of IRS service,

while only 40 percent of the affected group had less than 10 years of service.

The higher percentage of employees with over 20 years of service in ADP jobs,

however, was mostly in the administrator and manager categories.

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Chart 3. Atlanta region: Educational level of employees 

in affected units and in ADP

Percent

Highest Education Q 10 20 30 40 50

Occupational Background. Most of the employees in ADP jobs were

recruited from technical and supervisory IRS occupations, (See table 14,)

About 79 percent of the programers and 45 percent of the systems analysts

were formerly revenue agents and revenue officers. A few were former supervisors, some from the affected units. Most ADP equipment operators and schedulers were recruited from technical and clerical occupations. Fifty percent

of the console operators had been operators of some type of office machine.

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Table 14. Occupational background of ADT employees, by selected ADP occupations

Prior occupation

All employees Selected ADP occupations

Number Percent

Systems

analysts Programers

Schedulers

and

controlers

Console

operators

Peripheral

equipment

operators

Tape

librarians

All prior occupations .. 1/ 184 100.0 69 75 9 18 3 10

Revenue agents ........... 45 24.5 20 21 0 1 0 3

Revenue officers ......... 49 26.6 10 38 0 0 0 1

Supervisors .............. 21 11.4 10 7 0 0 2 2

Analysts .................. 19 10.3 15 1 2 1 0 0

Programers ............... 2 1.1 0 1 1 0 0 0

Personnel specialists .... 7 3.8 4 0 2 1 0 0

Technicians (clerical) .... 2 1.1 0 0 2 0 0 0

Equipment operators ...... 10 5.4 0 0 1 9 0 0

Office auditors .......... 12 6.5 1 4 0 4 1 2

Clerks .................... 1 .5 0 0 1 0 0 0

Student or Armed Forces ... 3 1.6 2 1 0 0 0 0

Other ..................... 13 7.1 7 2 0 2 0 2

1/ Excludes administrators, managers, and management analysts.

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Chapter 7. Training and Retraining Employees

The extensive retraining and training for new ADP jobs constituted

an important step in preparing employees for the changeover. This training

was the primary means of obtaining skilled personnel needed to make the ADP

system effective. More important perhaps for the employees was the opportunity that retraining programs provided to improve knowledge and skill for

a greater degree of lasting job security at better pay. Retraining also appeared to be contributing to employee acceptance of the change.

Employee Training Programs

IRS experience in former training programs proved useful in organizing the training that was necessary for the conversion. Changing tax laws

have necessitated major retraining efforts on a continuing basis and development of a professional training staff. Retraining employees to operate ADP

equipment in the three mechanized area data centers also provided valuable

background. In addition, formal basic training programs for recruits had

already been developed for practically every major occupation. These basic

courses are available for employees reassigned to such positions.

The planning officials foresaw that training and retraining activities would have to be expanded substantially with the introduction of new ADP

equipment. When training needs of the conversion were ascertained with some

accuracy, a three-man group in the Washington headquarters was assigned to

work full time in planning and coordinating training programs. A special

training staff was also established at the Atlanta center.

Retraining Affected Employees

Retraining employees for new jobs was carried out in two phases.

The first phase, given on a voluntary basis and not specifically related to

a particular position, was designed to provide skills in accounting, income

tax law, typing and shorthand. This training was given by correspondence

and in classes after working hours. Although intended to increase employability in the IRS, the skills acquired could also be useful outside the

Government.

The second phase provided specialized occupational training after

reassignment to a new job. Employees who transferred to service center jobs

were trained for their particular jobs, along with new recruits, during working hours. Additional training may become necessary for employees who prove

to have extreme difficulty in obtaining new positions.

Retraining efforts in the Atlanta region began in mid-1960, when

local officials began encouraging employees in affected activities to enroll

in voluntary correspondence study programs in accounting and income tax law.

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Courtesy of Interna/ Revenue Service

Courtesy of Interna! Revenue Service

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These officials soon realized that classroom instruction, using the correspondence texts and tests, would be more effective in preparing employees for

reassignment to other jobs. By late 1961, classes in accounting or income

tax law, or both, were being conducted in all seven district offices.

Between July 1960 and July 1962, one district office reported that

50 affected employees had completed the income tax law course by attending

classes after working hours; in another district office, 21 workers completed

the same course by correspondence. During the same period, one office trained

91 affected employees in various accounting courses.

Selecting Trainees. Classes in most district offices were open to

all employees. Employees directly affected by the changeover, however, were

encouraged, through personal interviews, to enroll in courses most likely to

result in job placement. Those already enrolled in correspondence courses

were advised to join the classroom sessions. In one large district office,

the response by employees to the classes was so favorable that enrollment had

to be limited to affected employees in grades most difficult to place until

additional courses could be scheduled.

Content of Training. Training classes were based on IRS home study

correspondence materials. This program includes five progressively advanced

courses in accounting and one longer course in income tax law. Only the two

most elementary accounting courses were given by classroom instruction, and

those employees who demonstrated special ability were encouraged to take the

more advanced courses by correspondence.

Contents and length of the courses given in the Atlanta region are

described in table 15. Successful completion of five accounting courses helps

qualify an affected employee for a field (revenue) agent job. Knowledge of

income tax law is required for taxpayer information and assistance work,

another growing activity.

Typing and shorthand training was given in only a few districts.

It was not offered more widely because secretarial grades were generally lower

than grades of affected employees. Although difficulties arose in recruiting

instructors and arranging satisfactory training time, several districts conducted this training. In cities where educational institutions offered free

or nominal cost adult evening training in typing and shorthand, local officials urged some affected employees to attend to increase their employability.

One district arranged for refresher training after-hours at a local high

school, and the IRS paid the enrollment fees. An after-hours course in office

skills was established in one large office and was under consideration in

others.

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Table 15. Contents and length of retraining courses 1 /

Name of course Contents of course Length 2 !

Fundamental accounting ..... Deals primarily with preparation of financial

statements rather than bookkeeping. Includes recent

developments in basic theory and relationship between accounting and income taxation.

14 lessons.

Constructive accounting .... Presents accounting principles and practices

as they relate to tax cases.

14 lessons.

Corporation accounting .... Study of accounting phases related to prepration and examination of corporation records. Presents intermediate and advanced principles.

14 lessons.

Special review accounting .. Provides a review of fundamental, constructive,

and corporation accounting procedures.

14 lessons.

Analytical accounting ..... Deals with analysis of transactions into their

double entry elements; of accounts to determine if

content and values are in accordance with generally

accepted principles; and of statements to ascertain

earning power and financial position.

14 lessons.

Individual income tax law,

1954 code .................

Covers tax liability of individuals under the

1954 Internal Revenue Code and amendments. References are made to pertinent IRS rulings and court

decisions.

20 lessons.

1/ One or more courses had been offered in each district office, Atlanta region, by

July 1962.

2 / Generally a 2-hour classroom session was devoted to each lesson.

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Selecting Instructors. Instructors were selected from local IRS

experts in accounting and tax law (typically revenue agents) who volunteered

to teach. Employees with teaching experience or with special IRS instructor

training were preferred. Those selected were given an IRS training course

in "Principles and Methods of Instruction" by the regional training officer;

this course consisted of 40 hours of classroom instruction and practice

teaching.

Initially, all districts compensated their instructors with time

off in return for time spent teaching. Later, payment of instructors' travel

expenses and overtime pay (one and a half times regular salary up to grade

GS-9) was authorized because compensatory time off was not feasible in some

offices due to the heavy workload.

Training Temporary Employees. Temporary employees who were assigned

to the more routine jobs required limited formal training. They generally

received from 2 to 4 hours of formal training and some on-the-job instruction

by working supervisors. Where the unit supervisor had already been permanently

reassigned, temporary employees were trained by an employee who had just been

temporarily promoted to the supervisory job. To reduce the amount of training,

some district offices rehired former employees and retirees on a temporary

basis.

Temporary Reassignments for Training. Temporary reassignments were

used frequently to supplement classroom training and provide affected employees

with on-the-job experience useful in qualifying them for positions scheduled

to remain in district offices. Such assignments were also used to evaluate

the employees' potentialities in a new kind of work.

Training for ADP Jobs

An extensive training program was set up for persons selected for

ADP positions--especially systems analysts, administrators, and programers.

These programs are summarized in table 16.

Systems Analysts. The training program for systems analysts consisted of a combination of formal and informal courses amounting to 17 weeks:

10 weeks of full-time classroom training, 4 weeks of observation of processing

operations in a district office and a service center, and 3 weeks' on-the-job

training in the Statistics Division at Washington. The 10 weeks' classroom

training included 3 weeks at the George Washington University in Washington to

study systems orientation and analysis, 1 week in the national office to study

operations analysis and methods improvement, and 6 weeks at the national office

or a data processing center to study ADP programing.

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Table 16. Training programs for ADP occupations

Job title Description of training Length of

training

Systems analyst ^1/ ... System orientation and analysis, at a Washington, D. C. university ............ 3 weeks.

Operations analysis and methods improvement, at the national office ........... 1 week.

Programing, at the national office or a service center ........... ............. 6 weeks.

Observation of processing operations in a district office and a service center . 4 weeks.

On-the-job training at the national o f f i c e................................. . 3 weeks.

Programer ........... General orientation on ADP concepts at the national office .................... 1 week.

Basic programing^methods by equipment manufacturer's instructors, at the

national office or a service center......................... ................. 8 weeks.

On-the-job training in data processing and techniques ...... .................. 4 weeks.

On-the-job training in development and maintenance of programs for the ADP

system ...................................................................... 36 weeks.

Console operator .... Training in punchcard and tape processing techniques (basic programing, arithmetic and logical functions), at equipment manufacturer's school. Consists of

24 lecture hours and practice problems ....................................... 8 days.

On-the-job training ........................................................... 4 weeks.

Peripheral equipment

operator 2/ ........

Training includes lectures and class problems in wiring, printing, and control

at equipment manufacturer's school ..................... ...................... 1 week.

On-the-job training........................................................... 4 weeks.

Tape librarian ....... On-the-job training ........................................................... 1 week.

Cardpunch operator ... Classroom training in procedures, documents, and programs used to prepare input

8 hours.

On-the-job training ...................... .......................... .......... 40 hours.

1/ On-the-job training for Atlanta Service Center trainees was more extensive: Up to 8 weeks on planning

the ADP system in Washington and 36 weeks on specific projects in Atlanta. They also received 4 weeks* training in

basic computer operations and programing at the Atlanta IBM educational center.

2/ Hired as console operators and qualified as peripheral equipment operators before employment.

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Key Service Center Employees. Twelve tax collection experts from

district offices were retrained to qualify for key jobs in the Atlanta Service

Center by agreement with the Civil Service Commission in April 1961. These

employees were reassigned as administrators, managers, and management and

systems anslysts at their former grade. The center's director and assistant

director received training on an individual basis.

In addition to regular training given systems analysts, these employees were assigned for extended periods (up to 8 weeks) to the national

office where they helped devise programs and systems which they would later

administer in the Atlanta region. Since a number of analysts in the national

office have limited field experience in tax collection, the experience of the

Atlanta trainees proved useful in developing the ADP system. This group also

undertook about 4 weeks of classroom training in basic machine operations and

programing given by the equipment manufacturer in Atlanta. In addition, they

received up to 36 weeks of on-the-job training at the service center. Assignments were made to specific projects, based on the interest and aptitude of

individual employees and the needs of the center.

Frogramers. Training for programer positions required about 9 weeks

of formal classroom lectures and practice problems and 40 weeks of on-the-job

training. The formal training covered one week of general orientation in ADP

concepts at the national office by IRS computer experts and administrators and

8 weeks of classes at a location convenient to a data processing center or the

National Computer Center. For example, the initial programer course, given

at Manchester, N. H., near the old IRS data center for the Northeast, consisted

mostly of formal classes, conducted by instructors from the equipment manufacturer. One week's study was devoted to basic electric accounting machines;

3 weeks to programing a small computer system; and 5 weeks to programing a

larger system. Trainees were given opportunities to prepare actual machine

instructions and test them on IRS computers. The IRS paid the entire cost,

including travel, salary, and per diem.

Equipment Operators. Training for operators of computers was much

shorter. Console operators received about 8 days of classroom training by

the equipment manufacturer, followed by 4 weeks of on-the-job training. Lecture subjects included basic programing techniques, arithmetic functions, logical functions, and other tape or card tape machine operations, or both.

Problems in programing, planning, and timing were covered. Peripheral equipment operator candidates were given 90 hours of free training to qualify them

for employment. Lectures and class problems in wiring techniques and accounting machine operations were included.

Card Punch Operators. After card punch applicants passed civil

service typing and clerical tests, the equipment manufacturer made available

to inexperienced applicants at least 40 hours of preemployment classroom

training to qualify as card punch operators, grade GS-2. Following appointment, they received up to 8 hours of classroom training and approximately

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40 hours on-the-job instruction at the service center. The purpose of this

training was to acquaint the new employees with the procedures, techniques,

documents, and programs used to prepare input data for the computers.

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Chapter 8. Manpower Problems of the Changeover

This chapter describes some manpower problems that arose in the

Atlanta Region during the first half of the conversion period. Information

about these problems wrs obtained from personal interviews with affected

district employees and managers. The problems are illustrative only. No

survey of employees was made to determine the extent of these problems.

Obstacles to Mobility

Overcoming obstacles to employees transferring to new work within a

district office or relocating to the Atlanta Service Center constituted one

of the major problems of the conversion. Since more new jobs were projected

for the service center than would be eliminated in the district offices, voluntary transferring could substantially ease the longrun job displacement

problem. Many district office employees could be retrained for tax examiner

and other jobs, in the Atlanta Service Center, which involved work similar to

that formerly performed in the district offices.

Although a number of experienced employees transferred from district

offices, the response by mid-1962 was not as great as had been expected. Personal problems were reported by some employees as preventing or discouraging

them from accepting new jobs. Among the reasons cited were reluctance to

sever close family ties, spouses* employment, and health and age problems.

Financial burdens were important to others. Forced sale of their homes at a

loss and higher living costs at Atlanta were cited by some.

For example, several employees who transferred to the Atlanta

Service Center considered requesting reassignment back to their districts

because they were unable to sell their home without loss. Other employees

stated that their moving expenses could not be fully compensated by the

Government. In some instances, transportation and related charges exceeded

the maximum payable by the Government.

The following examples illustrate some of the problems of employees

who did not transfer:

A 49-year-old supervisory tax examiner (GS-10) did not wish to

transfer to Atlanta, even though her job might be abolished and no

vacancy at her grade level was expected in the district. Her major

reasons given were fear of loss on sale of home because of a depressed

housing market and responsibility for caring for an aged mother.

She wes eligible, however, with 28 years of Government service, for

discontinued service retirement.

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A 50-year-old file supervisor (GS-6) with only filing experience and no retraining courses was not interested in moving to

Atlanta because her husband was the primary wage earner. She was

also a homeowner. When informed her job would be abolished, she

expressed ••shock11 and a willingness to take a grade reduction rather

than relocate.

A 30-year-old tax examiner (GS-4) declined a service center

job at the same grade because he expected difficulty in selling

his home and his wife was employed locally. His job was scheduled

to be abolished during 1962.

Within the city of Atlanta, some jobs were transferred from the

local office in downtown Atlanta to the new service center in the suburbs.

To plan an orderly conversion, the Chief of Collection (the unit affected)

made a survey in November 1961 to determine how many employees would transfer. About 56 percent of his staff (156 employees) were willing to transfer.

Of this group, about 7 percent would transfer only if they were promoted.

The remaining employees (about 44 percent of the total surveyed) were unwilling to transfer, some because of the longer commuting distance and inadequate

public transportation.

Some employees felt that the advantages of transferring to the

service center more than offset problems of relocating. The advantages of

promotion upon transfer, better opportunity for advancement in expanding

activities, and more interesting and challenging work seemed to outweigh

inconveniences.

The following examples illustrate some of the problems of employees

who transferred:

A 48-year-old tax examiner (GS-6) received a promotion upon

transfer to Atlanta. She had previously been detailed to the

service center and decided she would like to work there. Although

unable to sell her home at her previous location immediately, she

rented her house to meet mortgage payments. There was some financial loss in moving. After transfer, she was given about 8 weeks

of full-time classroom training to prepare her for new work.

A 49-year-old supervisory tax examiner whose job was eliminated

(GS-9), was promoted upon her transfer to the service center. Since

she was eligible for discontinued service retirement (27 years

service), her decision to relocate away from family friends was a

difficult one. She reported personal adjustment problems during the

first 5 to 6 weeks in Atlanta and greater living costs. Since she

was single, problems of relocating were not as great as for an

employee with a family. She received about 6 weeks of classroom

training at the center, including supervisory training.

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Maintenance of Adequate Communications

Providing a flow of information concerning progress of the conversion, especially between national, regional, and local offices, constituted

a complex problem of administration. When communications were slow, rumors

and uncertainty spread among employees and supervisors. It was rumored, for

example, that employees in many jobs in the service center would be required

to do shift work. This was an exaggeration that may have temporarily impeded

acceptance of jobs by a few affected employees. While there is some shift

work, it is done on a voluntary basis.

In retrospect, some officials felt that the policy of frequently

assuring employees that, if at all possible, no one would suffer any hardship

resulted in an undue amount of complacency about the change and a tendency

to postpone decisions. The longrun readjustment of some employees was sometimes impaired. For example:

The case of a 47-year-old tax examiner at the service center

with 22 years of Federal service illustrates the reaction of some

employees. When service center officials visited her district

office to recruit employees, she was uninterested. Later she explained that she was not fully aware of the severity of the employment cutback or how it might affect her job. Soon thereafter,

management began to stress the potential displacement impact of the

conversion and revealed that her job as supervisory cashier would

probably be abolished. She began therefore to consider transferring

to the service center. By that time, however, the supervisory jobs

of interest to her were filled and she had to transfer at the same

grade. She also felt that the initial group of service center

employees were in a more favorable position for future promotions.

By mid-1961, Washington officials were stressing that employees

must take some initiative in retraining and accepting new work when jobs

became available. Managers were cautioned to stay ahead of the conversion

schedule and not to delay reassignments until the later part of the conversion

cycle, thereby compounding problems.

Placement Problems

Placing supervisors in jobs at comparable grade levels in the

districts constituted another problem of the changeover. While there are a

number of supervisory positions at the service center, few district supervisors accepted transfer, and little attrition is expected in these jobs in

the districts.

The case of a 42-year-old supervisory teller (GS-8) whose experience was limited to cashier and cash accounting work illustrates some problems. Her experience was not needed in the service center and she had not

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taken retraining courses in accounting. In the 1966 staffing pattern for the

district, the two units of the cashier section are to be combined and the

supervisory jobs reduced in grade.

Particular difficulty was encountered in placing employees who

were approaching retirement age and did not wish to transfer for a short

period. For example, a 67-year-old tax examiner (GS-4) with 19 years service

did not wish to transfer to Atlanta since she was considering retirement the

following year. Retirement is mandatory for her in 1964. The districts

plan to reserve positions for such employees.

Some older employees voluntarily transferred to the service center,

but felt some anxiety about the change. For example, a 49-year-old supervisory tax examiner (G5-9) with 27 years service transferred to similar work

at a higher grade. She reported that her decision to transfer followed several weeks of deliberation. During the first few weeks after relocation, she

was still unsure that the decision to transfer was wise.

Employees in affected units who had only minimum skill and were

not sought after by supervisors in other activities presented a difficult

problem. Officials expect that eventually some jobs may be redesigned to

fit the qualifications of such employees, concerted effort has been made

to bring administrators with potential job vacancies in unaffected activities

into the planning for placement of affected employees, stressing the fact

that this is a Service-wide problem, not the problem of one activity only.

Since new hiring w?s restricted, some employees were considered for jobs for

which they might otherwise have been rejected.

Finally, problems arose in reassigning experienced employees who

were uncertain about their ability to learn new skills or disliked the kind

of work offered. For example, a 41-year-old supervisor (GS-7) declined reassignment at her grade in an office audit job because it involved extensive

personal dealings with taxpayers.

Training Problems

Retraining presented some difficulties as well as opportunities.

Employees were asked to attend classes after working hours--an obstacle for

women with family responsibilities. Arrangement for transportation after

classes also presented impediments. For some, immediate personal problems of

attendance outweighed possible future benefits.

Although some districts paid the cost of typing courses at local

business or high schools, arousing interest in after hours typing and stenographic training in other offices was difficult. In one district, for example, out of 12 employees who expressed some interest in typing and stenographic training, none wished to attend classes after work, /mong reasons

given were family responsibilities, and the low-pay jobs and lack of promotion

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opportunities in this type of work. Although administrators generally had no

difficulties in recruiting competent instructors from among district employees

for the accounting and income tax law courses, they reported that typing and

stenographic instructors were extremely hard to find.

Some employees reported that they felt compelled to take the training courses because nonparticipation might result in loss of a job, even

though participation was entirely voluntary.

The usefulness of classroom training was also doubted. A few

employees did not believe that the courses had increased their placement

potential or helped in performing their new job duties. Others, however,

especially those already placed, considered the training very helpful.

While some administrators reported that many employees learned

faster by attending classes than by correspondence, some employees complained

that the classes were too difficult and covered the subjects too rapidly. As

a consequence, one district slowed the pace of the classes from one lesson

completed each week to one every other week.

One drawback to the unrestricted admission policy for training was

that employees who were not considered well suited for the type of program

by their supervisors sometimes entered training. The IRS preferred, however,

to rely on counseling and persuasion, rather than setting up rigid requirements, to guide individuals into the training considered most likely to result

in reassignment to permanent jobs. Few dropouts have been reported.

Increased Stress and Shift Work

Some instances of considerable stress arising out of the changeover

were reported. One district manager stated that activating the service center

produced periods of intense pressure for supervisors and employees when overtime was required to continue the work at the same pace, despite the loss of

experienced employees.

Although temporary employees filled in to keep critical operations

moving, one manager reported that more supervisory attention was required,

and that a heavier workload was placed on those remaining. Temporary employees were reported in some cases as being only 50 percent effective during the

first 3 months and did not reach peak efficiency until after working about

1 year. Some officials reported difficulty in meeting workload deadlines, an

unusual amount of employee illness, and employee frustration due to changes

in procedures.

Operation of electronic computers at the Atlanta Service Center involved putting a small number of employees on shift work. Eight employees

were employed on the first shift (7:30 a.m. to 4:00 p.m.) and seven on the

second shift (3:30 p.m. to midnight). A three shift operation may eventually

be needed. Shift arrangements had not yet been permanently worked out, so

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there was no rotation between shifts* Hourly earnings were increased 10 percent for hours worked between 6:00 p.m. and 6:00 a.m. All employees on the

late shift were men. In the Martinsburg center, computers were operated 24

hours daily (three shifts), 7 days a week. This schedule may eventually be

reduced to 6 days. The requirement for shift work for operators caused some

candidates to reject employment offers.

Recruiting Specialized Employees

Management had difficulty in obtaining qualified employees to fill

Atlanta Service Center positions. Only a small proportion of affected employees transferred to Atlanta from district offices. The bulk of these jobs

involved perfecting and routing tax documents and preparing computer input

data. Positions of card punch operator, tax examiner, and accounting technician were expected to account for at least 85 percent of total service

center employment.

Recruiting qualified card punch operators, especially for part-year

employment, was difficult. These positions were announced through civil service procedures, with an entrance level of GS-2 for trainees and GS-3 for those

with both 6 months* experience and a superior score on the Civil Service Commission test. Because of the low entrance grade and routine nature of the

work, there was little interest among affected employees in transferring to

Atlanta for these jobs. There was also competition from other Government

agencies and private firms for qualified card punch operators.

Another problem was recruiting a sufficient number of experienced

tax examiners from the district offices for full-time positions in Atlanta,

and obtaining adequate numbers of tax examiners for part-year employment.

These jobs are estimated to account for about 45 percent of the total service

center staff. Since the duties of these positions involve perfecting, coding,

and controling tax documents, knowledge of accounting and experience in IRS

operations is desirable. Although a number of tax examiners have transferred

from the districts, the response has not been as great as IRS officials expected. Some of the factors that discouraged employees from relocating are

discussed in the section Obstacles to Mobility,11 in this chapter.

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Chapter 9. Outlook for Manpower Changes

ADP preparations, which began in January 1961, introduced the preliminary stage of the changeover in the Atlanta region. The application of

ADP to business tax returns in January 1962 marked the first operating phase.

In January 1963, the second phase of the changeover began with the application

of ADP to processing individual income tax returns. The entire conversion in

the Atlanta region is scheduled for completion by July 1966. This process

will be repeated, with some variations in timing, in the other regions.

As the completion of the changeover in the Atlanta region approaches,

a number of manpower questions become apparent. While the conversion thus far

has been described as successful, the possibility that important manpower

problems lie ahead is not ruled out. This chapter briefly outlines some

issues that may arise, some implications for employment trends in the communities where IRS offices are located, and some areas for future research.

Placement of Employees

Placing employees whose jobs are eliminated in the district offices

may become much more complicated in the final phases of the conversion.

Between July 1962 and July 1965, employment in the affected units was projected to decline from 811 to 581.

Whether this or a possibly smaller reduction in the number of permanent employees can. be accomplished without layoff, relocation, or downgrading of permanent employees will depend first on the existence of enough

vacant positions in enforcement and public information and assistance activities in the commuting area--where most transfers were made during the first

2 years. It will a l ^ d e p e n d on the willingness of employees to relocate to

areas where jobs are available, especially to Atlanta. Adequacy of budgetary

funds for positions as well as of the attrition rate (both in affected and

unaffected activities), therefore, will have an important bearing on the

magnitude of the placement problem. If there are not sufficient vacancies,

layoffs may be necessary.

Since many of the most adaptable employees may have already transferred voluntarily, those who remain at the end of the conversion may constitute a group requiring much more counseling, guidance, and retraining to make

them qualified for available jobs, either in the IRS or in other Federal

Government agencies. Two measures that were scarcely used during the early

stages (July 1960-July 1962)--waiver of qualifications (used for six employees),

and discontinued service retirement (used by only one employee)--may be more

intensively used to facilitate the changeover.

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Incentive for Mobility

Since adjustment for many employees may ultimately require transfer

to new jobs in the Atlanta Service Center, more attention will probably be

directed to stimulating employees to relocate and to take retraining. The

fear of financial loss in the sale of their homes, for example, tended to

make some employees in the district offices reluctant to transfer to the

Atlanta Service Center where they were needed. Provision of assistance in

such cases, however, will depend on congressional action. In the future,

training arrangements such as after-hours classes which discourage some

employees from taking training, may be examined more closely for improvement.

Such changes, however, must be weighed against work requirements, since

untrained temporary employees, loss of skilled employees, procedural changes,

and unforeseen ADP generated work may create severe workload problems.

Future Innovations

The introduction of electronic computers provides opportunities for

using other innovations that may have significant manpower impact. Thus, the

IRS is studying the possibility of using optical scanning devices and other

source data automation devices that may reduce the need for card punch operators, and of installing electronic data transmission devices that would speed

communications between IRS offices.

If it is decided to transfer other processing functions now in

district offices to the service center, some of the remaining jobs in district

collection and other divisions may be reduced further. On the other hand,

recent delays in transfer of work to the service center may decrease the rate

of reassignments.

The IRS is also studying enforcement and other functions outside

collection work, where ADP equipment may be used. Under consideration are

applications of ADP for selection of tax returns for audit (presently done by

hand by revenue agents as part-time duties), for data processing for special

agents in fraud investigation, for interchange of tax information between

Federal and State governments, for information retrieval in legal tax work,

and for operations research in tax administration. Reporting of tax information on magnetic tape by private firms may also result in fewer additional

jobs for the last phases of the conversion program.

Implications for Community Employment

Although the conversion may not result in greater unemployment, it

will, in the long run, reduce the demand for clerical workers in the local

labor markets where district offices are located, except when, as in the

Atlanta District, the service center and district office are in the same

metropolitan area. Of the seven district areas in the Atlanta region, six

were classified in December 1962 as areas of moderate unemployment, and one,

Birmingham, Ala., was listed as an area of substantial unemployment.

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Although the IRS conversion affects only a small proportion of the

labor force in these communities, the elimination of clerical jobs on which

the communities relied underscores the importance of the general problem of

adequately preparing the growing labor force of the 1960's for available jobs

and therefore may require attention by community educational, guidance, and

placement services.

Research Outlook

This study outlines the background and scope of manpower policies

and their application in one region. Since the conversion is still underway,

a complete account remains for future study. Although the experiences so far

probably foreshadow changes that offices in other regions may undergo, the

results may suggest specific policy improvements for future conversions.

Further research, therefore, may be concerned with the implications of such

policy changes for an orderly changeover to ADP.

The present study also suggests the importance of having a better

understanding of the economic, social, and psychological factors that encourage and impede individuals in relocating and retraining. This subject is of

deep interest to those concerned with the general manpower problems of automation. Since this subject was only touched upon in this study, future

research may be concerned more specifically with this aspect of manpower

adjustment to automation.

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Appendix A. Tables

Table A-l. Total district office employment and employees in affected units,

by district, July 1961

Region and district office

Total

employees

1/

Employees in directly

affected units

Number

2/

Percent

of total

All districts ......... .................... . 40.898 10,901 26.7

Atlanta r e g i o n.... ...................... ........ 3,951 1,000 25.3

Atlanta, Ga. ................................... 650 148 22.8

Birmingham, Ala. ............................... 425 119 28.0

Columbia, 3. C. ............ ................... 336 84 25.0

Greensboro, N. C« ........................ ...... 672 197 29.3

Jackson, Miss. ........... ...................... 268 71 26.5

Jacksonville, Fla. ....... ..................... 1,026 230 22.4

Nashville, Tenn..... ........................... 574 151 26.3

Boston region ...«.., c...... ...................... 2,600 752 28.9

Augusta, Maine «••••••••.......... ............. 204 67 32.8

Boston, Mass. .................................. 1,240 365 29.4

Burlington, Vfc.................................. 100 29 29.0

Hartford, Conn......... ..................... . 678 186 27.4

Portsmouth, N. H....... ............... ......... 144 42 29.2

Providence, R. I......... ............... ....... 234 63 26.9

Chicago region ............... ................... 5,212 1,482 28.4

Chicago, 111........ ••••••••..............••••• 2,127 549 25.8

Detroit, Mich................................... 1,747 480 27.5

Milwaukee, Wis.................................. 745 251 33.7

Springfield, 111...................... ......... 593 202 34.1

Cincinnati region ••.............................. 4,390 1,257 28.6

Cincinnati, Ohio ......................... 817 230 28.2

Cleveland, O h i o ............ ................... 1,256 316 25.2

Ind ianapo 1 i s, Ind............. ................. 845 273 32.3

Louisville, Ky........... ...................... 526 157 29.8

Parkersburg, W. Va.............................. 314 84 26.8

Richmond, Va................ ................... 632 197 31.2

>allas re g i o n.................. ................. 3,376 918 27.2

Albuquerque, N. Mex. ............. .............. 187 51 27.3

Austin, Tex. ................................... 955 257 26.9

Dallas, Tex..................................... 957 243 25.4

Little Rock, Ark................................ 280 85 30.4

New Orleans, La..... ........................... 553 155 28.0

Oklahoma City, Okla. ............ ........... . 444 127 28.6

See footnotes at end of table

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Table A-l, Total district office employment and employees in affected units,

by district, July 196l--Continued

Region and district office

Total

employees

1/

Employees in directly

affected units

Number

2/

Percent

of total

New York r e g i o n.... ............................. 6,236 1,467 23.5

Albany, N. Y .................. ................. 420 121 28.8

Brooklyn, N. Y ..... ............................ 1,830 464 25.4

Buffalo, N. Y ................................... 583 148 25.4

Manhattan, N. Y..... ........................... 2,931 612 20.9

Syracuse, N. Y .................................. 472 122 25.8

Omaha r e g i o n............. ....................... 3,702 1,024 27.7

Aberdeen, S . Dak. ••••••••..... ................ 142 45 31.7

Cheyenne, Wyo. ................. •••••••••••••••• 99 28 28.3

Denver, Colo............... .................... 426 105 24.6

Des Moines, I o w a ......... ..................... 522 153 29.3

Fargo, N. Dak........... ................... .. 130 40 30.8

Kansas City, Mo. .......... .................... 430 115 26.7

Omaha, Nebr............ ........................ 298 87 29.2

St. Louis, Mo. .................... ............. 552 150 27.2

St. Paul, Minn. ....... ........................ 637 178 27.9

Wichita, Kans........ .......................... 466 123 26.4

Philadelphia region .............................. 5,655 1,420 25.1

Baltimore* Md. ................................. 1,172 275 23.5

Camden, N. J. .................................. 505 127 25.1

Newark, N. J. .................................. 1,253 312 24.9

Pittsburgh, Pa........... ...................... 913 217 23.8

Philadelphia, Pa.......... ..................... 1,323 351 26.5

Scranton, Pa. ......................... ......... 328 98 29.9

Wilmington, Del................................ 161 40 24.8

San Francisco region ............................. 5,776 1,581 27.4

Anchorage, Alaska .............................. 49 — —

Boise, Idaho ........................... ........ 157 45 28.7

Helena, Mont. ....................... ........... 167 49 29.3

Honolulu, Hawaii ................ .............. 147 46 31.3

Los Angeles, Calif..... ........................ 2,091 577 27.6

Phoenix, Ariz. .............. ................... 252 65 25.8

Portland, Oreg. ................ ................ 440 129 29.3

Reno, Nev.................. .................... 129 32 24.8

Salt Lake City, Utah ............ .............. 177 52 29.4

San Francisco, Calif. .......................... 1,498 382 25.5

Seattle, Wash............. ..................... 669 204 30.5

1/ Includes 1,167 temporary employees.

2/ Permanent employees only.

Source: Internal Revenue Service.

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Table A-2. Atlanta region: Age and sex of affected employees, by district offices JL/

Age and sex

Total Atlanta Birmingham Columbia Greensboro Jackson Jacksonvi1le Nashville

NumberPercentNumber

PercentNumber

Percent

NumberPercentNumber

PercentNumberPercent

NumberPercentNumber

Percent

All employees ..... 1,074 100.0 169 100.0 116 100.0 85 100.0 198 100.0 72 100.0 281 100.0 153 100.0

Under 25 years ....... 41 3.8 17 10.1 2 1.7 1 1.2 5 2.5 2 2.8 14 5.0 0

25-34 years .......... 132 12.3 22 13.0 4 3.4 12 14.1 37 18.7 2 2.8 36 12.8 19 12.4

35-44 years .......... 313 29.1 36 21.3 24 20.7 33 38.8 58 29.3 14 19.4 90 32.0 58 37.9

45-54 years .......... 306 28.5 39 23.1 43 37.1 27 31.8 48 24.2 31 43.1 82 29.2 36 23.5

55-64 years .......... 237 22.1 42 24.9 36 31.0 10 11.8 40 20.2 22 30.6 53 18.9 34 22.2

65 years and over .... 45 4.2 13 7.7 7 6.0 2 2.4 10 5.1 1 1.4 6 2.1 6 3.9

Men ................... 181 16.9 23 13.6 14 12.1 23 27.1 43 21.7 13 18.1 36 12.8 29 19.0

t" O Q i t a a K r 6 0 .6 2 1 .2 o 1.2 0 .5 Q 2 0 .7 Q

25-34 years ........ 43 4.0 6 3.6 2 1.7 1 1.2 16 8.1 2 2.8 10 3.6 6 3.9

35-44 years ........ 63 5.9 6 3.6 6 5.2 8 9.4 14 7.1 3 4.2 14 5.0 12 7.8

45-54 years ........ 48 4.5 6 3.6 5 4.3 9 10.6 6 3.0 5 6.9 8 2.8 9 5.9

55-64 years ........ 20 1.9 3 1.8 1 0.9 3 3.5 6 3.0 3 4.2 2 0.7 2 1.3

65 years and over . . . 1 0.1 0 0 1 1.2 0 0 0 0

Women ................. 893 83.1 146 86.4 102 87.9 6 2 72.9 155 78.3 59 81.9 245 87.2 124 81.0

UnHf»r 2S ypflrs ..... 35 3.3 15 8 .9 2 1 .7 o 4 2 .0 2 2.8 12 L ft Q

25-34 years ........ 89 8.3 16 9.5 2 1 .7 1 1 12.9 21 10.6 o 26 Q ft 1 ft ft R

35-44 years ........ 250 23.3 30 17.8 18 15.5 25 29.4 44 22.2 11 15.3 76 27.0 46 30.1

45-54 years ........ 258 24.0 33 19.5 38 32.8 18 21.2 42 21.2 26 36.1 74 26.3 27 17.6

55-64 years ........ 217 20.2 39 23.1 35 30.2 7 8.2 34 17.2 19 26.4 51 18.1 32 20.9

65 years and over ... 44 4.1 13 7.7 7 6.0 1 1.2 10 5.1 1 1.4 6 2.1 6 3.9

1 / Age data computed as of January 1962.

Note: Because of rounding, sums of individual items may not equal totals.

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Table A-3. Atlanta region: Years of Federal Government Service of affected employees,

by retirement age group 1/

Affected

employees

Years of Federal. Government Service

Age group

Under

20 years

20-24 years 25-29 years

30 years

and over

Number

PercentNumberPercentNumberPercent

Number

Percent

Number

Percent

All groups ............ 1,074 100.0 852 100.0 154 100.0 57 100.0 11 100.0

Under 50 years ........... 642 59.8 567 66.5 64 41.6 10 17.5 1 9.1

50-54 years .............. 150 14.0 104 12.2 29 18.8 15 26.3 2 18.2

55-59 years .............. 139 12.9 88 10.3 34 22.1 15 26.3 2 18.2

60-64 years .............. 98 9.1 64 7.5 18 11.7 14 24.6 2 18.2

62-64 years ............ 52 4.8 2/ 31 3.6 13 8.4 7 12.3 1 9.1

65 years and over ....... 45 4.2 29 3.4 9 5.8 3 5.3 4 36.4

Employees eligible for

retirement 3/ ........... 100 9.3 60 7.0 22 14.3 10 17.5 8 72.7

Employees who may be

eligible for discontinued service

retirement only 4/ ..... 118 11.0 0 ----- 68 44.2 47 82.5 3 27.3

l / Includes military service Seniority as of January 1962.

2/ All employees in this group had over 5 years' service.

_3/ Age 62 with at least 5 years' service or age 60 with 30 years' service. Age 55 with

30 years' service at reduced annuity.

4/ Age 50 with 20 years' service or 25 years of service at any age (reduced annuity under

age 60) if: (1) employed under Civil Service Retirement Act for at least 1 year within 2 years

preceding separation; and (2) performing duties which are eliminated or combined with the duties

of another position as a result of organizational modification or as a result of continuing reorganization around remaining skills; or if job duties are transferred from a district to a

regional service center.

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Table A-4. Description of job duties in clerical classifications J./

Occupational classification Description of job duties in classification

Administrative ................. Jobs primarily concerned with directing, controling,

and administering a specific department or function.

Responsible for the successful outcome of the undertaking.

Works through subordinate managers or supervisors. Also

Includes management staff jobs such as administrative

assistants, management analysts, and technicians.

Supervisory .................... Jobs primarily concerned with supervising a group of

workers engaged chiefly in one general type of clerical

function. Determining work procedures, assigning duties

and checking results, compiling composite reports, maintaining worker harmony, and related duties.

Public information and

assistance ...................

ON

Jobs primarily concerned with making records in conjunction with carrying out transactions involving meeting

and dealing with the public; also receiving, examining,

depositing, and processing cash items.

Correspondence ................. Jobs primarily concerned with composing correspondence

and related documents for the purpose of obtaining or supplying information; editing or proofreading prepared copy

for accuracy of syntax and typography.

Posting, checking, and maintaining records ..............Jobs primarily concerned with posting and checking

various data, maintaining basic accounting records, filling

in special forms, recording transactions, balancing accounts,

evaluating, estimating, tallying, and verifying data.

See footnote at end of table.

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Table A-A. Description of job duties in clerical classifications J./--Continued

Occupational classification Description of job duties in classification

Examining and statistical ..... Jobs primarily concerned with statistical treatment

of data, such as assembling, collating and analyzing,

examining, perfecting, and making adjustments to tax

returns, which includes computing or making calculations

of taxes and penalties•

Stenographic and secretarial ... Jobs primarily concerned with making records by taking and transcribing shorthand or speedwriting notes*

Keyboard and other machine

operations ................... Jobs primarily concerned with recording information

by means of keyboard operated machines and operating machines that automatically analyze, make calculations, and

translate or divide information represented by holes

punched in groups of tabulating cards, and print this information on a variety of records and reports. Related

jobs include sorting and verifying punched cards.

Sorting, routing, classifying,

and filing .................... Jobs primarily concerned with sorting and routing

communications; inserting or extracting particular data

into or from various types of records for keeping files,

compiling lists, or providing and cataloguing information.

1/ Classifications were adapted from A Functional Classification of Recording of Jobs,

U.S. Department of Labor, Bureau of Employment Security (Washington, November 1950),

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Table A-5. Atlanta region: Projected changes in occupational requirements for affected district units

and Atlanta Service Center

Occupational group

Before ADP 1/ After ADP 2/ Change in

affected

district

units

Change in

affected units

and

service center

Jobs in

affected

district

units

Jobs in

affected

district

units

Jobs in

service

center

Jobs in

affected units

and

service center

NumberPercent

NumberPercent

Number

Percent

Number

Percent

Number

of

iobs

Percent

Number

of

iobs

Percent

A11 groups ................ 1.060 100.0 581 100.0 978 100.0 .. 1^559_. 100.0 -479 -45.2 499 47.1

Administrative .............. 45 4.2 28 5.1 21 2.1 49 3.1 -17 -37.8 4 8.9

Supervisory ................. 174 16.4 58 10.0 121 12.4 179 11.5 -116 -66.7 5 2.9

Grades GS-6 and over ....... 117 11.0 58 10.0 88 9.0 146 9.4 -59 -50.4 29 24.8

Grades GS-5 and under ...... 57 5.4 0 33 • j 33 2.1 -57 -100.0 -24 -42.1

Public contact ............... 41 3.9 87 15.0 3 .3 90 5.8 46 112.2 49 119.5

Correspondence ............... 82 7.7 138 23.8 0 138 8.9 56 68.3 56 68.3

Posting, checking and

mx* r e r n r r f s .......... 186 17.5 0 112 11.5 112 7.2 -186 -100.0 -74 -39.8

Examining and statistical .... 244 23.0 59 10.2 309 31.6 368 23.6 -185 -75.8 124 50.8

Stenographic and secretarial .. 53 5.0 49 8.4 20 2.0 69 4.4 -4 -7.5 16 30.2

Keyboard and other machine

operations ................ 87 8.2 26 4.5 321 32.8 347 22.3 -61 -70.1 260 298.9

Sorting, routing, classifying

and filing ................ 148 14.0 136 23.4 23 2.4 159 10.2 -12 -8.1 11 7.4

Electronic data processing .... 0 0 48 4.9 48 3.1 48

1/ Occupational structure, October 1, I960.

7! Projected occupational structure for Fiscal Year 1966 as of August 1962.

Note: Because of rounding, sums of individual items may not equal totals.

Source: Data derived from IRS staffing patterns. Positions were classified in one occupational group on the basis of

principal duties.

See table A-3 for descriptions of job duties in occupational groups.

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Table A-6. Grade of ADP employees, by occupation

GS grade

(average)

All

groups

(GS 11.3)

Administrators

and

Management

analysts

(GS 12.2)

Systems

analysts

(GS 12.2)

Programers

(GS 10.8)

Schedulers

and

controlers

(GS 8.6)

Systems

operators

(GS 6.8)

Peripheral

equipment

operators

(GS 3.3)

Tape

librarians

(GS 5.6)

Number

Percent

manage rs

(GS 14.0)

All grades ........ 261 100.0 47 30 69 75 9 18 3 10

16 ($ 16,000-$18,000) .. 3 1.1 3 0 0 0 0 0 0 0

15 ($14,565-$17,925) .. 12 4.6 12 0 0 0 0 0 0 0

14 ($12,845-$16,245) .. 27 10.3 19 5 3 0 0 0 0 0

13 ($11,150-$14,070) .. 45 17.2 9 6 30 C 0 0 0 0

12 ($9,475-$ll,995) ... 65 24.9 2 13 23 26 1 0 0 0

11 ($8,045-$10,165) ... 48 18.4 2 4 9 30 1 2 0 0

10 ($7,290-$9,495) ___ 1 .4 0 0 0 0 0 0 0 0

9 ($6,675-$8,700) ___ 27 10.3 0 2 4 16 4 2 0 0

8 ($6,090-$7,935) ___ 1 .4 0 0 0 0 0 0 0 1

7 ($5,540-$7,205) ___ 12 4.6 0 0 0 3 2 6 0 1

6 ($5,035-$6,565) ___ 1 .4 0 0 0 0 0 0 0 1

5 ($4,565-$6,005) ___ 16 6.1 0 0 0 0 0 8 1 7

4 ($4,110-$5,370) ___ 1 .4 0 0 0 0 1 0 0 0

3 ($3,82C-$4,830) ___ 1 .4 0 0 0 0 0 0 1 0

2 ($3,560-$4,505) ___ 1 .4 0 0 0 0 c 0 1 0

Note: Because of rounding, sums of individual percentages may not equal 100.

Source: IRS records. Grade data as of December 1962.

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Table A-7. Years of IRS service, all ADP employees and affected

employees in Atlanta region

Years of IRS service

All ADP employees Affected employees,

Atlanta region

Number Percent Number Percent

Total ........................ 261 100.0 1,074 100.0

Less than 1 ..................... 26 10.0 16 1.5

1 - 4 ............................. 87 33.3 156 14.5

5-9 ............................. 62 23.8 260 24.2

10-14 ........................... 42 16.1 275 25.6

15-19 ........................... 14 5.4 283 26.3

20-24 ........................... 10 3.8 53 4.9

25-29 ........................... 16 6.1 25 2.3

30 and over ..................... 4 1.5 6 .6

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t ^ ID IP

U. S. T R E A S U R Y D E P A R T M E N T

Appendix B. First Issue of ADP News (page I)

Vol. 1, No. 1 November 1961

NATIONAL COMPUTER CENTER DEDICATED NOV 6

H I W

INTERNAL REVENUE SERVICE

»

New Automatic Data Processing Center at Martinsburg, West Virginia

The National Com puter Center at M artinsburg, West Virginia, was form ally dedicated 

on N ovem ber 6.

T reasu ry Secretary Douglas D illon gave the 

prin cip al ad dress. C om m ission er M ortim er 

Caplin, G overnor W illiam W. B arron of West 

Virginia and M ayor C. L eslie G olliday of 

M artinsburg also spoke.

Other fed eral, state and city officia ls w ere 

in attendance, including som e of the m em bers 

of the C on gression al Com m ittees which deal 

with Internal Revenue m atters, C on gressional 

representatives from West V irginia and top 

officia ls of T reasu ry and IRS.

The annual fall conference of Regional C om ­

m ission ers and D istrict D irectors in Washington

Why . . . ADP News ?

Much is happening and happening very fast in IRS’ necessary change to data processing by electronic computers.

Even those on the scene find themselves running to keep up.

It’s new and big! Commissioner Caplin has said it will

"revolutionize the tax field.’ ’

Many of you will have vital roles as we change our IRS

way of doing things. Challenge and opportunity particularly

await those who are ready. For this you will need to be informed. ADP News is dedicated to this task.

As often as news is adequately available, ADP News will

gather the facts to bring them to you. Here you will find

on-the-spot accounts, pictures, views and interviews of and

by people working to bring about this improvement in the job

we do.

coincided with the dedication, perm itting that 

entire group to attend.

A num ber of these officia ls made the eighty 

m ile trip fro m Washington via airplane. Others 

traveled via bus.

The National Com puter Center occu pies a five 

acre tract about four m iles east of M artinsburg (15,179 population). The land was form erly 

part of the grounds o f the Newton D. Baker 

V e te ra n s’ A d m in istration H o sp ital.

Building Design

Building exterior is finished in ro se brick , 

supplied by a M artinsburg m anufacturer.

The building is one of the first to be sp ecifica lly designed and constructed fo r the exclusive 

occupancy of a federal electron ic data p r o ce s s ­

ing operation.

The structure is not large by presen t building 

standards. But out of a total usable area of 

39,000 square feet, 7,500 square feet constitute 

com puter area. By com parison the Atlanta Serv ice C enter, under construction and scheduled 

fo r com pletion by June, 1962, w ill have 200,000 

square feet of usable area with only 5,000 square 

feet of com puter area, approxim ately.

P resen t capacity of the Center is expected 

to fu lfill S ervice needs at lea st through 1969. 

The building is designed to perm it horizontal 

expansion of any key operational area without 

in terferen ce with any other.

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Appendix C# Qualifications Inventory Card

1. NAME 2. P O S IT IO N AN D G RADE 3. SCO

4. HQ AND POD 5. DOB 6. SEX 7. R E T IR E M E N T POSSIBLE? a T Y P IN G 

S K IL L

q S H O R T H A N D 

SK IL L

□ NO □ YES (Date) y e s [ U n o □ YES □ NO

10. A V A I L A B I L I T Y (willingness or unwillingness to relocate; conditions and exceptions, etc.)

11. E D U C A T IO N 12. IRS AND C S C T E S T SCORE S AND D A T E S

13. IRS T R A IN IN G (courses and dates, including correspondence courses) (Show redeployment training on reverse)

14. IRS EXPERIENCE

(List

chronologically)

POSITION TITLE SERIES GRADE ORGANIZATIONAL UNIT YEARS AND MONTHS

15.

OUTSIDE

EXP ERIENCE

POSITION TITLE YEARS AND MONTHS 16. O U A L I F I E D IN O T H E R S ER IE S (present or higher

grade)

17. T E N T A T I V E S O L U T IO N S (positions to which employee could be reassigned, with alternatives)

18. R E Q U I R E D FOR A B O V E S O L U T IO N ( training, waivers, etc.)

19. NA ME O F IM M E D IA T E S U P E R V IS O R 20. EST. DA T E POS. ADVERSELY A F F E C T E D 21. D ATE P R E P A R E D

EARLIEST LATEST

U. S. T R E A S U R Y D E P A R T M E N T - I N T E R N A L R E ' ' P N I I E S E R V IC E Q U A L IF IC A T IO N S IN V E N T O R Y C A R D FORM 3190 (3-62)

22. PLACEMENT ATTEMPTS

PO S ITIO N S FOR WHICH C O N S ID E R E D WAS EMP L O Y E E 

O F F E R E D 

P O S IT IO N ? 

(Check which)

DID EMP L O Y E E 

A C C E P T 

P O S IT IO N ?

(Check which)

R E M A R K S

(reason for refection or withdrawal o f

offer, etc.)

IN DISTRICT

(Show title, series,

grade, and organization)

OUTSIDE DISTRICT

(Show title, grade, agency

and location)

Y ES N O Y ES N O

23. REDEPLOYMENT TRAINING (type and date)

24. REMARKS (other pertinent information such as physical impairment, awards or commendations, etc.) 25. DATE AND N A TURE OF FIN A L

PLACEMENT ACTION

2$. FINDING DATE OF REVIEW REVIEWER

c m i a w .

A.

rvLLUW *

UP B.

ACTION C.

D.

FO RM 3190 ( 3- 62)

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Appendix D. Checklist for Filling Vacancies Occurring Before and During ADP

Conversion

CHECK LIST FOR FILLING VACANCIES OCCURRING

BEFORE AND DURING ADP CONVERSION

DISTRICT MAKING EVALUATION

POSITION TITLE SERIES GRADE

ORGANIZATIONAL LOCATION SF-52 REQUEST NUMBER DATE

TYPE OF ACTION REQUESTED

C O N C U R R E N C E S IN IT IA L S OR S IG N A TU R E D A T E

SUPERVISOR INITIATING ACTION

CHIEF OF DIVISION INITIATING ACTION

PERSONNEL OFFICIAL

REDEPLOYMENT OFFICIAL

OTHER (If more than one division concerned)

P A R T 1 - E V A L U A T IO N O F V A C A N T P O S ITIO N S YES NO

A L L V A C A N C IES

la. Does the most recent classification maintenance survey flag the position as requiring some action?

b. If " Y e s , " has the action been tak'en?

2. If a continuing position, can it be restructured as a utility or trainee position and used for retraining or qualifying

employees in activities directly affected by conversion, without unduly affecting work operations?

V A C A N C IE S IN AN A C T IV IT Y D IR E C T L Y A F F E C T E D BY CO NVERSIO N

3. Can the position or function be consolidated with another, thereby eliminating the vacancy?

4. Will the position continue without change after ADP conversion?

5. Will part or all of the duties of the position be eliminated

by ADP conversion? If " Y e s f" When?

6. Will part of the duties continue after conversi

be downgraded as a result of ADP impact? If

on, but probably

" Y e s . " When?

7. If upgrading is warranted, can the position be restructured and classified at a lower grade?

8. If the position will be

affected by ADP, can

it be restructured:

a. So as to be filled by a temporary employee?

b. So as to be filled by detail of an employee from another activity?

c. To eliminate specialized skills so as to be filled at a lower grade?

9. If a supervisory position, can it be:

a. Performed as part of an existing higher grade supervisory position?

b. Filled on an acting or working supervisory basis?

c. Performed by a senior or staff assistant?

P A R T II - F IL L IN G V A C A N T P O S ITIO N S (Complete if a vacant position is to be filled)

V A C A N C IE S IN AN A C T IV IT Y D IR E C T L Y A F F E C T E D BY CO NVERSIO N

1. Can the vacancy be

filled by:

a. Detail of an employee to a position at the same or lower qrade?

b. Temporary appointment of a new or former IRS employee?

c. Appointment, by selective certification, of someone who has dual qualifications for a continuing position into which he later can be moved, and for immediate detail to the vacancy?

d. Reassignment of an employee from another position at the same grade?

e. Limited temporary promotion, as a last resort?

V A C A N C IE S O UTSIDE A C T IV IT IE S D IR E C T L Y A F F E C T E D BY CO NVERSIO N

2. Can the position be filled by an employee in an activity directly affected by conversion?

3. If " Y e s , " can this be

accomplished by:

a. Promotion?

b. Detail at the same grade level?

c. Reassignment (at the same grade) and, if necessary, authorized waiver of qualification

requirements?

d. Limited temporary promotion, as a last resort?

4. If the position cannot be filled directly by an employee in an activity directly affected by conversion, can a series

of placements be made that will ultimately make possible the placement of such an employee? If " Y e s , " outline on

reverse side the series of placements used.

If the position is not filled from a directly affected activity, outline considerations given and reasons for decision.

U. S. T R E A S U R Y D E P A R T M E N T - IN T E R N A L R E V E N U E S E R V IC E FORM 3341 ( 1- 62 )

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Appendix E. Recruitment Announcement, The Digital Computer Programmer in

the Internal Revenue Service

U. S. TREASURY DEPARTMENT INTERNAL REVENUE SERVICE

To All National Office Employees

THE DIGITAL COMPUTER PROGRAMMER

IN THE INTERNAL REVENUE SERVICE

What Is He?

The Digital Computer Programmer is a keyme'mberof the Automatic Data Processing

team. Along with the administrator and the systems analyst, the programmer develops

the essential instructions which ADP equipment needs to function.

What Does He Do?

Working from general guides and concepts, the programmer translates a data processing problem into a program for the machine to follow. After he gains a complete understanding of what needs to be accomplished, the programmer prepares a detailed flow chart

to indicate the essential operations, logical as well as arithmetical, to be performed by the

computer. He then works out detailed machine instructions, based on the design of the flow

chart and the language of the machine. These must be checked and tested carefully by the

programmer before the production run starts. The programmer must also prepare the

instructions which the operator of the machine needs to run the program on the machine.

What Abilities Does He Need?

Among the personal skills and abilities needed by a programmer, these stand out as

highly important:

- - Ability to follow complex instructions

- - Reasoning ability

- - Good memory

- - Accuracy

- - Arithmetical ability

- - Ability to absorb training

A programmer needs to apply these skills in sustained concentration on problems of

infinite detail. A quality product is needed and time schedules must be met. A programmer

needs to be constantly aware that the computer doesn't "th in k " --it needs step-by-step

instructions for every job it is to handle.

What Are The Career Possibilities?

Programmer jobs exist at grades GS-5 through GS-12. For men and women of ability,

advancement possibilities appear unusually bright - - into senior programmer positions,

and as the ADP program expands, into supervisory and other types of technical jobs as

well.

How To Apply

Submit a memo to your Personnel Office, Room 1108, and arrangements will be made

for the administration of the Federal Service Entrance Examination. If you pass or have

previously passed this examination, you will take the Programmer Aptitude Test. Those

who previously took this examination, but failed to score A or B are eligible to re-take this

examination six months later. In all cases, those who previously applied but were not

selected, must resubmit a memo.

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Appendix F. Automatic Data Processing Supervisory Evaluation

AUTOMATIC DATA PROCESSING SUPERVISORY EVALUATION

Ikte

Name o f applioant Post of duty

kloumts

Cheok appropriate blook below

Inprove*

ment

neoessary

Average

Well

above

average

Extremely

high

1* Ability to absorb training

2* Ability to use complex oral and written instructions

3* Ability to see relationships of things to eaoh other

4. Adaptability

5® Initiative

6* Ability to plan projects or programs

7# Ability to analyte systems or procedures

8* Ability to work with a team

9* Ability in written expression, including report writing

10, Tact in dealing with people

11, Ability to make decisions

12, Ability to work independently

13* Ability to handle varied programs

14* Ability in oral expression

15* For those elements for which a rating cannot be assigned, please provide your opinion as to the applicant's

potential ability in the element*

16* Please provide below an overall reoonraendation and any other information which would be useful to the selecting 

o ffio ia l in considering the candidate for this position.

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Appendix G. Selected Bibliography on Government Automation

I. U.S. Government Documents

Astin, A. V. “Statement to the Subcommittee on Automation and Energy

Resources,“ New Views on Automation. U.S. Congress, Joint Economic

Committee, 86th Cong., 2d sess. (Washington, 1960), pp. 157-165.

Latham, Dana. “Internal Revenue Service--salaries and expenses.

Testimony before the Subcommittee on Treasury-Post Office Departments

Appropriations.“ Treasury-Post Office Departments Appropriations for

1961; Hearings. U.S. House of Representatives, Committee on Appropriations, 86th Cong., 2d sess., February 2, 1960 (Washington, 1960),

pp. 457-516.

U.S. Bureau of the Budget. Inventory of Automatic Data Processing (ADP)

Equipment in the Federal Government» Including Costs» Categories of

Use, and Personnel Utilization (Washington, August 1962). 126 pp.

U.S. Congress, House of Representatives, Committee on Post Office and

Civil Service. Office Automation and Employee Job Security; Hearings.

Subcommittee on Census and Government Statistics, 86th Cong., 2d sess.,

March 2 and 4, 1960 ('Washington, I960). 84 pp.

U.S. Congress, House of Representatives, Committee on Post Office and

Civil Service. Report on the Use of Electronic Data Processing Equipment in the Federal Government. Prepared by Subcommittee on Census

and Government Statistics, 86th Cong., 2d sess. (Washington, 1960).

113 pp.

U.S. Congress, House of Representatives, Committee on Pokt Office and

Civil Service. Use of Electronic Data Processing Equipment; Hearings,

Subcommittee on Census and Government Statistics, 86th Cong., 1st sess.,

June 5, 1959 (Washington, 1959). 142 pp.

U.S. Congress, House of Representatives, Committee on Post Office and

Civil Service. Use of Electronic Data Processing Equipment; Hearings.

Subcommittee on Census and Government Statistics, 87th Cong., 2d sess.,

October 2, 3 and 5, 1962 (Washington, 1962). 328 pp.

II. Reports and Articles

Bell, James R. and Steedman, Lynwood B. Personnel Problems in Converting

to Automation. The Inter-University Case Program 44 (University, Ala.,

University of Alabama Press, I960). 14 pp.

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74

Appendix G. Selected Bibliography on Government Automation--Continued

Bergamini, David. "Government by Computers," The Reporter (August 17,

1961), pp. 21-28.

"Electronic Data Processing in Public Administration," Public Administration Review. American Society for Public Administration, Chicago

(September 1962), pp. 129-152.

Gerold, Charles. "ADP in Federal Personnel Management: The Sleeping

Giant," Public Administration Review. American Society for Public

Administration, Chicago (Spring 1962), pp. 71-74.

Phillips, Charles A. "The Government--a $1.5-billion factor," Datamation.

F. D. Thompson Publications, Inc., New York (January 1962), pp. 23-24.

Riche, Richard W. and Alii, William E. "Office Automation in the Federal

Government," Monthly Labor Review (September 1960), pp. 933-938.

Ronayne, Maurice F. "The Personnel Side of Automatic Data Processing,"

Public Personnel Review (October 1960), pp. 243-248.

Siegman, Jack and Karsh, Bernard. "Some Organizational Correlates of

White Collar Automation," University of Illinois Bulletin. Reprint

Series No. 110 (February 1962), pp. 108-116.

Smith, William H. "Automatic Data Processing in the Internal Revenue

Service," Computers and Automation. Berkeley Enterprises, Inc.,

Newtonville, Mass. (October 1962), pp. 10-13.

* U.S. GOVERNMENT PRINTING OFFICE : 1963 0 - 6 9 4 -4 6 5

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