The Michigan Department of Civil Service (MDCS), according to the Constitution of the State of Michigan, shall "classify all positions in the classified service according to their respective duties and responsibilities, fix rates of compensation for all classes of positions, approve or disapprove disbursements for all personal services, determine by competitive examination and performance exclusively on the basis of merit, efficiency, and fitness the qualifications of all candidates for positions in the classified service, make rules and regulations covering all personnel transactions, and regulate all conditions of employment in the classified service."[28] The Constitution requires the legislature to appropriate for the MDCS up to 1% of the State’s payroll and benefits budget, if the Department requests that amount.

Although its proper functions are clearly specified in the Constitution, the MDCS nonetheless conducts many activities that are well beyond the scope of its Constitutional authority. These activities include managing and investing funds for the Deferred Compensation programs; employee development and training; the employee suggestion and award program; employee performance appraisals; and employee recruitment and hiring.

In addition to engaging in activities that exceed its authority, the complicated and stringent requirements that the Civil Service Commission places on privatization are widely recognized as the most significant obstacle to privatization of state functions.