There has been a great consolidation of bank corporations an

There has been a great consolidation of bank corporations and a reduction in the number of banks over the last 20 years. Additionally, Treasury departments have reduced manpower dedicated to Treasury functions and, yet, have increased the workload for Treasury functions. How is this possible? What is making the reduction of personnel while workload increases the norm in larger companies? What does this tell us for the future?

Solution

The Fed has limited the number of persons on payroll. It is defined under the system and nature of employment ceilings. The President decides maximum allowable employment figures at the time of annual budget review.

The reduction in manpower controls the number of Federal workers without reducing the workload. It leads to reduced efficiency and no fixing of accountability. However, the peak workload is distributed by hiring agencies.

The reduction is applied when too many workers are hired and attrition is less than the anticipated. The region is unable to meet the ceiling standards. The reduction is done by transferring the employees to other departments or agencies. Further the excess employees are released or terminated. The percentage of federal workers as against the population has reduced in the last twenty years.

In future also, the organisations are instructed not to exceed the personnel ceilings at any point of time. Although, the new employment ceilings development is in process and the same will be lower than the earlier one.