Income Tax Department

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Income Tax Department

• Human Resource
• Management

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Human Resource Management

• Big and growing Department
• With more than 59000 employees
• Serving 30 million taxpayers
• Functioning from 746 buildings located in 530
  stations
• Ever changing, complex work environment
• Rapid increase in per capita workload
• Constant need to upgrade skills to match job
  requirements

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Human Resource Management Need for HRM Policy
for I.T.Dept

• Due to Global tax competition induction of
  modern technology, need has arisen to
• Anticipate the changing organizational needs and
  manpower requirements to strategically plan for
  optimum efficiency
• Place right persons in the right places at the
  right time and in right number for maximum
  utility
• Build competencies, Generate high motivation
  levels and create right kind of organizational
  culture
• Therefore the need for integrated HRM policy
  implemented by a dedicated set up

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Why large sized organisations with multiple
locations need HRM set up ?

• Because such HRM set up will perform most
  essential functions which include
• Strategic Human Resource Planning
• Make 5-10 yearly projections for HR requirements
• Assess job requirements requisite skills for
  various posts
• Identify specialist posts and also identify as
  well as develop experts to man them
• Develop strategies for capacity building through
  training
• Design and implement effective performance
  evaluation mechanism and incentive schemes

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Why large sized organisations with multiple
locations need HRM set up ?

• Create, update and maintain comprehensive
  database of manpower
• Develop and implement integrated HRM policies
  including recruitment, training,promotion,
  transfer and succession planning
• Design policy for systematic career progression,
  attrition management, equal opportunity, gender
  equity, diversity management
• Take steps for employee welfare including
  counseling
• Identify key posts for succession planning
  groom successors in advance

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Present factual position in the Income Tax Deptt

• The subject of Human resource planning and
  development has not been allocated to any
  section/wing or Directorate of the Board
• Mostly administrative work and issues relating to
  pay, recruitment, promotions, leave matters, HRA,
  advances, transfers etc are handled by various
  section under JS (Admn)
• No serious attempt made to formulate
  comprehensive and integrated HRM Policy for
  strategic utilization of manpower
• Functions assigned to various sections could not
  be properly handled due to absence of policy
  guidelines, shortage of staff or lack of
  requisite knowledge skill

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Consequences of not having any HRM policy or
Directorate

• Large scale vacancies at crucial levels on
  account of failure to plan and project future
  manpower requirements, adversely affecting
  performance levels
• Total Sanctioned strength 59014 working
  strength lt 50000
• Sanctioned strength of IRS officers 3904
  working strength 2822. Shortages are
• Cadre Sanctioned Strength Working Strength
  Shortage
• CIT 698 662 36
• Addl./Jt. 1116 716 400
• DC/AC 1974 1346 628

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Consequences of not having any HRM policy or
Directorate

• Posts with high workload at Group A stations
  remained vacant and ACs in C stations remained
  under worked in the absence of any set up to
  assess the stationwise/postwise workload and
  then redeploy manpower
• No attempt made to work out the implications of
  the S.C. judgment that deployment of direct
  recruit IRS officers and promoted ACs should be
  in the ratio of 5050- leading to even larger
  number of vacancies
• Alarming number of vacancies but small batches
  recruited by UPSC aggravating problem

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Consequences of not having any HRM policy or
Directorate

• The Recruitment Rules and Examination Rules of
  posts created / redesignated after restructuring
  in 2001 have not been notified till date
• The recruitment rules of the IRS have not been
  amended to give effect to the 5 years old Supreme
  Court judgment, which permitted officers who
  have joined the service to re-appear in the Civil
  Services Examination, whereas such rules have
  already been amended for IA AS and IFS
• Large No.of posts in the cadre of CCs, CsIT,
  JCs remain vacant at any given time, as DPCs are
  generally never held in time

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Consequences of not having any HRM policy or
Directorate

• The average tenure of an IRS officer against a
  post is less than one year This has an adverse
  impact on the efficiency of the dept.
• Posts requiring specialized knowledge and skills
  have not been identified and no attempt has been
  made to match the skills of the officers with the
  requirements of the posts
• No attempt has been made to integrate the
  transfer and placement policy with the overall
  Human Resource Management and Development policy
  to synchronize individual needs with the
  organizational objectives

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Consequences of not having any HRM policy or
Directorate

• No concrete plan devised for capacity building of
  officers to enable them to handle the challenges
  posed by global tax competition
• Since 2002 almost all management and foreign
  training programme for the IRS officers have been
  discontinued. Even individual initiatives
  discouraged by not granting study leave
• On the otherhand,attending training programmes
  at IIMs and at foreign institutes of excellence
  like Duke, Harvard, Syracuse made mandatory for
  IAS officers and their pay rules suitably amended

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Consequences of not having any HRM policy or
Directorate

• The urgent need to have an elaborate Performance
  Appraisal system and replace the existing ACRs
  with Performance Appraisal Reports covering all
  aspects of personality and performance in detail
  could not be implemented in I T Deptt ,
• Whereas new and detailed PARs for different
  levels of IAS as well as of IPS officers has
  already been prepared notified and put on the
  website of DOPT
• No mechanism put in place for counseling and
  other employee welfare schemes for the Income tax
  dept.

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Consequences of not having any HRM policy or
Directorate
During last 11 year the workload per officer has
increased by more than 400 and disposal almost
by 400, whereas the number of supporting staff
members got reduced by 50
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Should we not find answers for these questions ?

• Are not they vital for enhancing the efficiency
  of the organization ?
• Are not such failures leading to large-scale
  demotivation/ attrition ?
• Will not such continuous failures impair the
  quality of taxpayer services and adversely affect
  the image of the department ?
• Are not these failures leading to a situation
  when the ill-provided manpower will crumble,
  unable to cope with the increased workload ?

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Should we not find answers for these questions ?

• Dont we need a set up which would assess the
  manpower and financial requirements to cope with
  expansion in future workload ?
• Dont we need a set up which would prepare the
  plans for the recruitment, promotion, placement,
  and capacity building of our manpower so that our
  revenue collections do not decline and we are not
  left behind in the era of global tax competition
  ?
• Are not these functions essential for
  maintaining the credibility of an organization ?

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The answer is- formulating HRM policy creating
Human Resource Directorate

• Cabinet has already approved in August 2000,
  creation of Directorate of Human Resource
  Management, but not notified till date.
• Sanctioned posts notified vide F.No.
  A-11013/3/98-Ad VII dated 30th March, 2001 for CC
  Delhi include manpower for this Directorate
• CIT 1 ADDl/Jt. DIT -3 DCIT - 3 ITOs
  2 PS - 1 AO - 1 Inspector - 5 OS - 2 Stenos
  4 TAs - 5 Peons5
• The only action, which needs to be taken by the
  Department of Revenue, Ministry of Finance, is to
  issue the notification for creating such
  Directorate
• Soon after notification, officers with MBA
  background having sufficient experience in
  personnel management may be posted immediately

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HR Directorate to implement integrated HRM
Policies

• Simultaneously, a team to be constituted to
  formulate the integrated HRM Development policy
  taking into account manpower needs, recruitment
  and training policies, placement and transfer
  policies, promotion and succession plans,
  capacity building and career development,
  performance evaluation etc.
• The functions of this Directorate would not
  overlap with the functions of Ad VI, and Ad VII
  working under JS (Admn)
• The authority vested in this Directorate would
  not take away any of the powers at present being
  exercised by Ad VI, Ad VII, Ad VIII and Ad IX and
  these sections will continue to assist the Board
  in accordance with the prescribed policy
  guidelines
• This is essential for the optimum utilization of
  our manpower and in the best interests of our
  country