Can the Postal Service Further Consolidate the Area and District Administrative Office Structure?

on May 24, 2010 in Post Offices & Retail Network | 60 comments

Photo: Organizational Structure Chart

In the past 18 years, the Postal Service has reorganized its field structure at least three times. In 1992, the Postal Service reorganized its field structure from five regions and 73 field divisions into 10 areas and 85 districts. From 2002-2006 the Postal Service changed its field structure to nine areas and 80 districts, and adjusted again in 2009 to eight areas and 74 districts. Under the current structure, area offices ensure headquarters directives are implemented, and district offices are responsible for managing major functions within a specified region of an area, including day-to-day management of subordinate post offices and customer service activities other than processing and distribution. The Postal Service believes the most recent consolidation will provide an annual cost savings of approximately $100 million.

Should Postal Service consider further changes to its area and district administrative offices?

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If yes, what further changes should the Postal Service consider?

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Other organizations have streamlined their management structure, whether looking to utilize new technologies or just save money during difficult economic times. For example, United Parcel Service recently announced it was reducing its U.S. regions from five to three and its districts from 46 to 20, and Walmart announced it was reducing its regions from five to three.

What do you think of the Postal Service’s field structure?

Please share your thoughts in the comments below. Keep in mind that Pushing the Envelope will not publish comments that contain personally identifiable information, so please don’t include any names in your story.

This topic is hosted by the Office Audit Field Financial – West team.

60 Comments

  1. Once Personnel went out the door the PS have become less customer friendly anyway so why not eliminate those layers of managers. We are doomed if it doesn’t happen.

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  2. Just by getting rid of the 300+ POOM’s across the nation. USPS could save $45 million in saarlies and benefits.

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  3. each state a district with the most populatd split no area offices

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  4. The United States has a president and one vice president. Then why does USPS need 39, or 34 or even three vice presidents? Is it more important that the entire USA? I think not. Seems that the USPS is too busy justifyin’ it’s own nonsense.

    Eliminate all Area bureaucracy. All of it. No need for this level of management.

    Speakin’ of which, there are 50 states. Then why does the Postal Service need 76 or so districts. It could be a stretch to think that perhaps 50 districts — 50 states. Naw. If the Postal Service could justify 10 districts, that, too, may be a bit too many. How about five districts:

    *Atlantic (All of New England, New York, Pennsylvania, New Jersey, Virginia, West Virginia, Delaware, Maryland, and D.C.)

    *South East (The Carolinas, Florida, Georgia, Mississippi, Alabama, Louisiana, Arkansas, Tennessee, and Puerto Rico)

    *Midwest (Ohio, Michigan, Indiana, Kentucky, Illinois, Missouri, Iowa, Nebraska and Kansas)

    *South West (Oklahoma, Texas, New Mexico, Arizona, California, Nevada, Utah, Colorado, Hawaii, Guam and American Samoa)

    *North West (The Dakotas, Wyoming, Montana, Idaho, Oregon, Washington, and Alaska)

    The “Eye” hopes “Eye” didn’t miss any states or possessions.

    This would effectively slice off 80%-85% of upper management. Everythin’ is done electronically so there’s no need for such redundancy. The Postal Service is top heavy with worthless managers all tryin’ to justify their positions, donchathink?

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  5. Severely consolidate both district and area offices. Most Postmasters and employees know what has to be done. The vast majority of decisions lately make no sense at all. Too many auditors, to many safety personal, too many people who do not touch the mail, too many redundant procedures, and I would have to guess there are too many useless and overlapping reports for supervisors. It seems to me that some employees in the area and district offices create new programs and reports to justify their jobs, when in fact they are hurting the PO.

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  6. Too many managers managing other managers, managing other managers, managing other managers ad infinitum until you get to the supervisor that actually gets the work done. How many new Presidents, Senior Vice Presidents and Vice Presidents has the current PMG appointed? It seems that every month or two another VP position is created. Someone needs to point out to the PMG that the Postal Service is in danger of toppling over from being way too top heavy. I hope the OIG will come to this conclusion.

    Knowing people that “work” at Area Offices, they have very little real work to do. The Area Offices are of little to no support to the field when called to answer a question. A call with a question usually results in a negative outcome for the caller. Staff at Area Offices take pride in how much discipline they issue, not in creating an atmosphere of achievement in the area they serve.

    Get rid of Area Offices. They are redundant and a waste of precious Postal revenue.

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  7. The only area that has not shrunk is management. It was a real farce in our area when they so called down sized last year. All they did was send them on details, and have since brought them all back. Now, WE have less Clerks, and mail handlers with double the supervisors. All they do is harass the people who actually work. Oh, yea, and I mention that they’re is a 204 B for every supervisor. They stand, and watch us work for hours. What a waste. Oh well,keep giving them bonuses until the PO is gone.

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  8. I am really not certain what the right move would be. I can only tell you that in my huge district, we have a Plant Manager in charge of 4 plants and 2500 employees. We have a city stations Postmaster in charge of dozens of delivery units, a District manager who needed to come here because the heat was on him where he came from previously.

    Between these guys and a plethora of MPOOs, mixed with the locally housed, grossly bloated numbers of people in Pacific Area, you have an obscene number of high paid executives and EAS people who cannot seem to make a proper decision even by accident.

    While the actual mail movers and delivery unit employees are being axed to the detriment of customer service, the suits and skirts, who crunch numbers and make impulsive and costly mistakes based on their flawed hypotheses, are increasing in numbers.

    There must be a way to streamline PCES and EAS operations the way they streamline (better word, decimate) the bargaining unit employees.

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  9. mirco management will never work postmasters have no say anymore they have to call a poom for everything and their answer is always NO go back to the old way the post office was respected and all had service

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  10. Have you listen to any of our suggestions?
    I think not so why even ask us…

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  11. all upper mangerment gets raises and the supervisor or postmaster who works 60 to 72 hours a week get told we have a budget problem SORRY NO RAISE FOR YOU ONLY US that is the post office today I used to be proud not I wont tell anyone I work for the post office

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  12. I noticed that someone ordered a pocket knife on ebuy2
    today (now that everything is transparent) it cost $79
    wow…I want that job where I can walk around with a $79 pocket knife…

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  13. Sirs, The Postal Service used to be a simple, efficient service. Then, in the late 80s it started to balloon at the top and middle layers. We are currently famous, perhaps more notorious, for having the worst manager to employee ratio of any known business in the country. The last I heard, most businesses had a manager to employee rate of 1 to 25. We, have an unheard of rate of 1 to 8. This is an example of managerial empire building and poor oversight. In terms of savings, all of these salaries are larger than any employee salaries and therefor more cost effective to trim down. We, the Service, need to cut back on the multiple criss counting of the same numbers and cut back to a more vertical management structure. Even with all the extra people counting each other, if not for the OIG we would have lost 75 billion dollars.
    Our management structure is simply unsustainable.

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  14. We do not need all these layers of management. Disolve the Districts/Areas/Regions or whatever the title they have. I know our District seems to dictate to our local offices how things should operate, when they can’t seem to get their own local offices to do a good job. Why should they tell us how to operate? What is good for one, doesn’t necessarily work for another. I’m sure what questions any office should have they could access it through a data base or within house. No need to go through channels and get imput from someone who probably has no idea what the real problem might be. I know our local plant and offices do a good job and when problems arise it’s usually after the District has demanded something be done a certain way, when they perhaps have never done the job and have no idea what they are talking about. In my opinion, eliminate the Districts dictating the rules, they can’t seem to get their own local offices to do a good job, clean up your own house before going after the rest of us!

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  15. While the post office has consolidated some area and districts they continue to play a shell and pea game by failing to significantly reduce the number managers. In our small office of 6 letter carriers, 6 rural carriers, and 3 clerks we currently have a postmaster, a supervisor, and oftentimes a 204b managing us. My question is what are they managing all day? Do we really need 2-3 managers in our small office after the carriers are on the street?? After the carriers are on the street we have 3 managers watching 3 clerks. It is ridiculous. The post office seems to continue to attempt to reduce the craft employees (those thay actually have their hands on the mail), while increasing the numbers of management. My suggestion is to have one postmaster oversee several small offices and one supervisor in each office to manage day to day functions. We don;t need a postmaster and a supervisor in these small offices. In addition to that, eliminate the 204b program. What happens in our office is that our 204B is a letter carrier. When she is supervising we then have a vacant route to split up between the other carriers. That creates significant overtime which costs the post office more money. My opinion is that the post office just doesn’t get it!

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  16. HQ is the only group that has increased employees in the last 2 years. 37 Vice presidents, how can that be. Please stop these eliteists from growing their empires and stop cutting to the bone the women and men who actually do the work in this organization.

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  17. Absolutely! Not only should Area and District support staff be cut, but Headquarters staff as well. Support positions should be cut by 50% at every level of the organization. Previous to Pat Donahoe, the Postal Service had a COO and a separate DPMG, now Pat performs both positions, and quite well. If Pat can do it, why can’t every other VP, AVP, SVP, etc. Do we really need an AVP and a MOS? What is the difference; one has a bigger stick? Between voice mail, Blackberrys, and PCs, we shouldn’t have a Secretary or Aministrative Assistant left in the Postal Service. They should have all been replaced with technology by now. The Area Offices should consist of 4 total people, the AVP, the MIPS, MOPS, and TANS. There should be no staff. They inspire, they lead, and they are the liaisons to HQ for all things field related. It would work and no one would miss a beat!

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  18. until I see action, I believe the OIG is blowing smoke up our butt….

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  19. I so agree with most of these posts.I am in a small office.The supervisor (that according to their own point system) we dont even qualify for.We have had carriers excessed to other offices. So our office has lost workers,while the supervisor making 61,000,plays on the internet all day. PM has to do the supervisors work,due to supervisor being inept. This all just gets ignored,while we have to count for every second of our day.Middle managment are stealing the USPS blind.If this occurs in my 1 lil office,how many in nation? They should be using a time card,,held acoountable for their time/work or get rid of them.Is a sad business.

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  20. Cut Support and EAS jobs at the District and Area Offices. Oh..and last but not least..cut those Headquarter jobs.

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