Personnel management includes the direction, supervision, and adjustment of all the relations of the employee and employer. If there is a central personnel office for administering a merit system or a civil service commission, personnel management is divided between the administrative agency and the personnel agency. Matters of policy are determined by the type of personnel program which is in operation,1 but the specific procedure for carrying policies into effect is the responsibility of management. A certain amount of discretion is exercised by management. This is unavoidable, because no policy-making body, be it legislature or board, can foresee all possible situations and make prescriptions in advance. Some discretion is desirable in order to assure flexibility in administration. In the course of making hundreds of small decisions, established policy may be gradually bent to conform to the administrative conception of expediency or necessity. It is, therefore, highly important to provide an objective means of routine observation of personnel management; this routinizes inspection and criticism, prevents major deviations from policy, and provides an orderly method for recommending changes in policy. Within the scope of the law, rules, and regulations it is the function of management to create and maintain harmonious relations with and among employees so that the agency may operate effectively.
The salary schedule is ordinarily determined within certain limits by statute, and it may be specifically determined. This practice is followed, whether the selection of personnel be under a merit system or unregulated. The salary of an administrative officer____________________