This report, the second of the Volcker Commission, urges the President and the new Congress to undertake a sweeping reorganization of the federal government in five areas: 1) Debate concerning, and enactment of, broad reorganizational authority, 2) Implementation of a proposal to speed and streamline the presidential appointments process, 3) Acknowlegement of the growing risk to the judicial system of inadequate salaries of federal judges, 4) Review of the salary compression at senior executive levels. Review and elimination of the linkage of executive branch salaries, judicial salaries and those of Congress, 5) Concerted efforts to recruit and retain employees in the federal government