Summary: Pursuant to a congressional request, GAO discussed current government management improvement efforts and past management reforms, and it focused on two key management areas: human resources and management support systems. The administration has devoted substantial energies to improve management by various means and has recently broadened its efforts to by initiating a long-range program aimed at improving financial and administrative efficiency, proposed personnel management reforms, and management reviews tied to the annual budget process. However, recent history suggests that not all will succeed which makes it difficult to forecast the outcome. GAO believes that federal managers need to be given the opportunity to emphasize creativity, encourage prudent risk-taking, foster enthusiasm, strengthen rewards systems, and enhance personal accountability for organizational performance. GAO has found, however, that agencies generally have not placed a high priority on human productivity improvement. Few agencies have organized agencywide efforts to improve productivity. GAO has also found that the government's approach to financial management is obsolete and inefficient. The government relies on outdated accounting and management information concepts, systems and structures which are not designed to provide the information needed by managers, policy officials, and Congress. A modern structure of financial management can be built, but that a rebuilding of the current structure will be required.
