Book excerpt: An examination of the Calif.'s personnel mgmt., which found that significant reforms are needed if Calif. gov't. is going to respond efficiently to the changing needs of a growing population. Discusses 3 areas: (1) org'n. issues: overlaps in the civil service system, and the way that the Admin. Procedure Act hamstrings managers; (2) personnel mgmt. issues: centralized control hinders innovation; managers lack authority, leadership skills, incentives; discipline appeals; and tenure and automatic pay raises are obsolete; and (3) labor-mgmt. issues: state managers are constrained from contracting out; and reforms will require cooperation.