Summary: The major issues associated with managing the Federal work force are outlined based on the audit plans of the GAO Federal Personnel and Compensation Division. The Federal Government employs about 2.8 million civilians and 2 million active duty military personnel. Excluding the Postal Service, direct pay for these employees is estimated at $78.8 billion for 1980. Recent changes in the civil service laws raised many new concerns as to how the Federal work force is paid and managed. Major issues in the following areas are discussed: (1) problems and costs of retirement policies and practices; (2) the effects of Federal pay priciples and processes on the cost and effectiveness of civilian and military personnel; (3) the contribution work force planning and sound organizational structure can make to reduce the size and cost of Government; (4) the effectiveness of systems to insure the ethical conduct of Federal officials; (5) Federal labor management and employee relations policies and practices - their effect on the needs of employees and management and on responsiveness to the public; (6) the effectiveness and efficiency of defense manpower management; (7) effectiveness of the military justice system; and (8) morale, welfare, and recreational activities for Federal employees. Increasing media attention on the size and effectiveness of this work force also raises new issues and highlights existing ones.