UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business -------------------------- VU BAO MINH EXCESSIVE WORKLOAD AT TAX DEPARTMENT IN DISTRICT 11 MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business -------------------------- VU BAO MINH EXCESSIVE WORKLOAD AT TAX DEPARTMENT IN DISTRICT 11 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 Table of Contents Executive summary .2 Symptoms of problem in Tax department in district 11 .1 High turnover rate .2 Low Customer Satisfaction.3 Significant decrease of growth rate in revenue .3 Initial Cause-Effect Map .4 Updated cause – effect map. 14 CHAPTER 2: PROBLEM JUSTIFICATION .1 Problem definition: high workload .1 Work – life imbalance .5 Lack of communication in working environment. 24 CHAPTER 3: CAUSES VALIDATION AND SOLUTIONS.1 The list of potential causes of the problem .1 Lack of career development opportunities .2 Unfairly treated by the manager .3 Unsupportive or bulling by manager .4 Unequal or substandard wage structures .5 Outdated in technology .2 The final cause-effect map .3 Root cause: outdated in technology.
26 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 3.1 Solution 1: Building a new project: E-recruitment .2 Solution 2: Upgrade contact center communications technology. 37 Methods Qualitative Research. 40 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 Table of figures Figure 1: The percentage of resigned employees of back officers from 2015 to 2017. 6 Figure 2:The number of apology letter for customer in 2017.
8 Figure 3: The results of revenue of mandate of tax collection from 2015 to 2017. 9 Figure 4: Initial Cause-Effect Map. 10 Figure 5: Updated cause – effect map. 15 Figure 6: Percentage of employee’s feeling about unable to spend enough time with family.
18 Figure 7: The influence of the supervisor or team leader on the participants. 19 Figure 8: The evaluate of Workplace Stress on the participants. 19 Figure 9: Percentage of knowledge of employee about workload increases when another employee quit their job. 20 Figure 10: Percentage of level reaction of employee often carry heavy workload, and felt like leaving.
20 Figure 11: The evaluate of communication on the participants. 21 Figure 12: The final cause-effect map. 26 Figure 13: Schedule of building E-recruitment and Communicate Center system. 32 Figure 14: List of interviewees.
38 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 Executive summary Today’s competitive world human resources management is considered crucial for the efficient and effective utilization of resources. The requirements in terms of human resources management activities also have changed along with changes in the environment. Improving public sector performances seems to be only possible when the public sector has qualified staff. Organizations must identify innovative ways to increase efficiency and lower costs while maintaining quality services.
The paper begins with a brief description of the symptoms of human resource at the Tax department in District 11. The situation analysis indicates that Tax Department in District 11 is experiencing serious issues including excessive workload in employees, high turnover rate (resulting from the annual report of HR), low compensation compares with private organizations. As a result, the overall performance has been deteriorating in recent years. One indication for the poor performance is the decreasing annual growth rate, low customer satisfaction.
Another evidence is the mandate of tax collection is underperformed. Besides, the current contingent of civil servants is still generally perceived as lacking the necessary competence, work ethic and motivation to meet the requirements of the tax department’s development. Given the identified problems, the following recommendations aim to help the Tax Department in District 11 to overcome these challenges, improve performance, and lower operational costs: Building a new project (E-recruitment); Upgrade contact center communications technology. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 CHAPTER 1: BACKGROUND 1.1 Company background Tax Department of District 11 is under provincial-level Tax Departments.
The function of the District 11 Tax department is to perform the administration of taxes, charges, fees and other state budget revenues within the tasks of the tax sector in the district 11 under the law. 108/QD-BTC of January 14, 2010). In 2017, The District 11 Tax Department had a total of 172 employees. There are nine departments in the organization: The Department for Propagation and Taxpayer Assistance, the Department for Personal Income Tax Administration, the Tax Declaration and the Accounting Department, the Department for Management of Debts and Coercive Collection of Tax Arrears, the Human Resource - Administration Department – Archives, the Tax Examination, the Internal Inspection Division.2 Symptoms of problem in Tax department in district 11 Criteria to evaluate the situation: o The turnover rate in employees: according to Chowdhury, labor turnover rate refers to the movement of employees in and gets out of a business, and the term is commonly used to refer ‘wastage’ or the number of employees leaving.
High labor turnover causes problems for business, and it is a costly affair, which lowers productivity and staff morale. In the public sector, the high turnover rate also takes many costs of the company includes money and time. Managers and HR department have to spend time on recruitment and training for new candidates. o KPIs: After that, the annual KPI for each department is the scale for the award.
In the KPI report, three essential elements demonstrate the effective operation of the unit: the percentage of completion of the assigned budget plan, the number of the file processed on time and complaints by the customer. However, the Tax Department District 11 has not a good result in 2017. Last but not least, the relationship of colleagues in the public sector is complicated to determine the data or official paper. 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 However, it is also shown in the description of the duties of each member in the same department at the beginning of the year.
Turnover rate of back officers is the high number of staff 33 employees / total 172 employees. This report will focus on the problems that the organization has been facing in recent years, especially in back officers. Following by the results of historical data of human resource report 2017. This study offers possible symptoms or the findings, discuss the element of the bad signal of organizations facing with one of the hardest time since many symptoms have been proved as below.1 High turnover rate The turnover rate has been significantly high in recent years as suggested in the table below: Figure 1: The percentage of resigned employees of back officers from 2015 to 2017 Source: Annually report of HR team We have to compare this ratio with other departments in our company because we do not have data of turnover rate in the other company in the same industry.
When comparing to the turnover rates of other departments in the organization, it can be seen the rate of resigned employees in back officer is higher in comparison with others. This issue can potentially incur substantial costs to an organization in the form of recruitment and training costs and time. When an employee resigns, HR needs to find a suitable candidate to fill in the vacant position. The cost of recruitment and 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 instruction will increase as the company has to spend on recruitment contests, interviews, and salaries for HR employees.
When a new employee is hired, it would take months of probation and training before they start delivering results. However, by the time they pass the probation, many of them resigns due to the high level of stress and pressure. As the employees start delivering his performance to the organization the sad part is that he or she is leaving the public sector and moving to another organization. In addition, during the probation period, the new employee will not be able to handle all the assigned tasks thus many of these tasks are delegated to their colleagues, resulting in the increase of pressure and stress level on current employees.
Even though the managers understand the importance of creating a plan for the recruitment before doing it, the planning is still quite poor with the forecasting of the needed workforce in only near-future. Almost employees’ resignation has to work under so much pressure such as the tax collection, risk, work-life balance. When missing a position in the team and the time of hiring and training for new employees take too long. From that, each current member has to have more tasks to completed work day.
Thus, Job overload becomes a serious issue in the organization. The effects remain from the past with older labor force that is not easy to adapt to the rapid changes, weak in technical skills. They can be trained but it will take a long time, and that means more money is wasted. 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 1.2 Low Customer Satisfaction Figure 2:The number of apology letter for customer in 2017 Source: Annually report of Administration Department The table below presents the total apology letters to customers in 2017 of Tax Departments that are similar in size and tax collection with Tax Department in District 11.
In 2017, the rate of late document processing, bad feedback from customer higher than District 5, District 12 and the average of HCM is around 10-20% (following by annually report of administration department. It means that the result also reflects the dissatisfaction of customers in the civil service of the Tax Department in District 11. As of now, according to Mrs. Le Thi Ha, staff appraisal is carried out according to eight criteria.
However, there are general and broadly applied to applied to other departments across the organization. Hence, the current policy does not appraise the work that people do in an adequately effective way to enable an essential assessment of specific staff performance. They are sometimes wrongly used as a voting device to select candidates for promotion opportunities. Besides that, the evaluation of civil servant performance is only a formality.
The method and criteria for evaluation are unsuitable with no emphasis on 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 the performance results and effectiveness. Moreover, the civil servant's evaluation system fails to assist the supervisor to understand the working competency of each civil servant in order to use the right person in the right place.3 Significant decrease of growth rate in tax collection Figure 3: The results of mandate of tax collection from 2015 to 2017 Source: Annually report of Administration Department The mandate of tax collection is underperformed. The organization has not reached the targets for inspection and investigation in three consecutive years since 2015 (98. As a result, compensation and benefits for employees decreased, and further lowering their motivation and efforts.3 Initial Cause-Effect Map Below is the initial cause-effect map that identifies all the likely causes of the problem that company are facing.
9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Running head: Excessive Workload at Tax Department in District 11 Figure 4: Initial Cause-Effect Map 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Low compensation Mr.