Federal Board of Revenue - Reforms Initiative through HRM Interventions

1. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
CBR Reforms Program
HRM Initiatives,
Progress & Way
Forward
Presenter: Mohammad Talha, Member
(HRM)
CBR, Islamabad
12 April, 2007

2. Revenue Division
Central Board of Revenue
CBR Government of Pakistan
PAKISTAN
CBR Vision &
Mission
Vision “To be a modern, progressive, effective, autonomous and
credible organisation for optimising revenue by providing quality
service and promoting compliance with tax laws”
Mission “Enhance the capacity of the tax system to collect due
taxes through application of modern techniques providing taxpayer
assistance and by creating a motivated, satisfied, dedicated
professional workforce.”
2

3. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
CBR Values
•Integrity
•Professionalism
•Teamwork
•Courtesy
•Fairness
•Transparency
•Responsiveness
3

4. Revenue Division
Central Board of Revenue
CBR PAKISTAN CBR Reforms Objectives
Government of Pakistan
• To increase revenue
• To widen taxpayers base
• To simplify tax laws and evolve effective dispute
resolution mechanism
• To provide end to end automation of work processes
• To create a Taxpayer friendly environment
• To develop an honest and efficient tax administration
 To restructure the CBR along functional lines and develop a
well trained and motivated workforce in order to develop
and manage a modern, efficient revenue administration
4

5. Revenue Division
Central Board of Revenue
CBRPAKISTAN
Government of Pakistan
HRM Initiatives to
support CBR Reforms Process
1. Job Descriptions
2. Restructuring of CBR
3. Legal Framework
4. IJP Process for Special Pay
5. Training and Development
6. Integrity Management
7. HRIS
5
8. Way Forward

6. Revenue Division
Central Board of Revenue
CBR Government of Pakistan
1. JDs for all levels
PAKISTAN
•Training in developing JDs countrywide
Job Title, grade location, reporting line
Main purpose of job
Key Result Areas and Performance Standards Required
Main Tasks and Responsibilities & Expected Performance
Standard
Knowledge, Skills and Qualifications Required
•Generic Job Descriptions for BS 20-21
•Generic Job Descriptions for BS 17-19
•Generic Job Descriptions for BS 1-16
•Specific Job Descriptions for all through LTUs and MTUs
•Determination of Common and Specific Competencies
•Training Needs Assessment
•Basis for Selection in Reformed Units & Performance 63
Management

7. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
2 - Restructuring
a. Workforce Planning
3

8. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
2a. Workforce Planning
•Functional Organization
•Workload Analysis
•Input of Line members
•Consultation with Audit Advisor
•KSQ Mapping with HR Advisor
6

9. Revenue Division
Central Board of Revenue
CBR 2b. PAKISTAN Current Staff by Grade
Government of Pakistan
4,000 # in
BS Grade
21 45
3,500 20 131
19 354
18 505
3,000
17 568
16 1,041
2,500 15 293
Number of Staff
14 2,110
13 313
2,000 12 2,542
11 1,701
10 1,266
1,500 9 240
8 17
1,000 7 2,526
6 31
5 1,940
500 4 938
3 3,516
2 2,014
0 1 3,354
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 total 25,445
Basic Pay Scale
4
Officers to Staff Ratio: 1: 8.6

10. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
2c. Average age by grade
60.0
Overall
50.0 Average
45.1 yrs
40.0
Age
30.0
20.0
10.0
0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Basic Pay Scale
5

11. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
2d. Restructuring
• CBR Headquarters
• 13 Regional Tax Offices (RTOs)
• 79 Taxpayer Facilitation Centres (TFCs)
• 11 Model Customs Collectorates (MCCs)
• 3 Large Taxpayer Units (LTUs)
• 6 Directorates General (Training, Intelligence & Investigation, Data
Research & Statistics, Internal Audit, etc)
• Functional Basis
• Workload Analysis

12. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
WHY WORKFORCE PLANNING?
• CHANGING LANDSCAPE OF WORK
• TYPES OF CHANGE:
a) Technological change
b) Organizational Structure change
c) Behavioral change
• Technological change in 21st century is very rapid and has taken all
organizations globally by surprise. In its response, organization structure
is constantly evolving in favour of a flatter & leaner organization.
Behavioral change is the slowest among the three in STREAM ANALYSIS
of any organization.

13. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
ROLE OF HRM IN THE CHANGE
PROCESS
• In an era of rapid technological change, the role of HR
Department is aimed at:
a. deployment of optimum human resources by adding value to
different positions.
b. delayering & debanding of jobs in order to achieve a flatter
organization structure.
c. defining the various levels of responsibilities through job analysis.

14. Revenue Division
Central Board of Revenue
CBR
PAKISTAN
Government of Pakistan
COMPONENTS OF THE FUNCTIONAL
STRUCTURE
 Taxpayer Facilitation
 Information Processing
 Audit Division
 Enforcement/Refund Division
 Legal/Investigation Division
 Headquarters
 Hub

15. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
3. Legal Framework
• Well documented procedures
• Effective appeals process for IJP
• Government approval of all actions
• Judiciary briefed and supportive
• Full use of existing rules and statutory instruments
• Draft FBR Act - to gain some freedom from those Public
Service HR rules & practices which are inappropriate for
effective management of a modern Revenue Service

16. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
4. IJP Process
• Positions advertised through Web and via Commissioners
and Collectors in the field
• IJP postings carry additional special allowance
• Review of competencies developed through the JD process
• Interviews
• ACR “Blood-count”
• Evaluations by Training Institutes
• Computer Tests for Staff
• Integrity Check

17. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
5. Training & Development
Challenges for Training & Development:
• Achieving the necessary shift in culture, mindset and
professional / managerial competence
• Maintaining linkages between training programmes and
reform strategy
• Supporting self-development endeavours relevant to
functional requirements
• Designing / selecting training programmes for sustainability
and value over a period of time
• Identifying and managing technical training programmes.

18. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
5a. Training & Development
• Entry Level • Specific Functional Training
 MBA Tax Management for RTOs
• Mid to senior (BS 17-19)  TMS and Train the Trainer
 Capacity building programs  Audit Techniques and
by IBA Financial Accounting
• Senior (BS 20 – 21)  Functional Management
 Capacity Building programs
by LUMS • Training for Staff (BS 1-16)
 Pakistan Computer Bureau
• “In-service MBA” at LUMS

19. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
5b. Training & Development
The way forward for further training:
• Joint venture arrangement for training
• Anti-money laundering
• Forensic Audit
• Anti-terrorist financing/funding
• Documentation of Economy
• Broadening of tax base
• Sharing of best practices

20. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
6. Integrity Management
Five key elements in IM strategy:
• Code of Conduct - to be revised and re-issued
• Asset Declaration - procedure to be streamlined & rigorously
implemented
• Completion of ACRs - procedure to be monitored & rigorously
implemented
• Integrity Checks - to be made more objective and transparent
• Integrity Policy - Conference held on 9/12 - new strategy to
be introduced and enforced

21. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
6a. Integrity Management
• IM Conference based on WCO Integrity Development Guide
Integrity Development Cycle 10 Elements for Self-assessment
1. Undertake
1. Leadership &&Commitment
1. Leadership Commitment
1. Undertake
Self-Assessment
2. Regulatory Framework
2. Regulatory Framework
Self-Assessment 3. Transparency
3. Transparency
4. Reform &&Modernisation
4. Reform
2. Identify Problems &&
2. Identify Problems 6. Implement
6. Implement 5. AutomationModernisation
5. Automation
Potential Solutions
Potential Solutions Corporate Action Plan
Corporate Action Plan 6. Audit &&Investigation
6. Audit Investigation
7. Code of Conduct
7. Code Resource
8. HumanofResourceManagement
Conduct
8. a. Remuneration & Conditions
Human Management
3. Develop 5. Gain Executive a. Remuneration & Conditions
3. Develop 5. Gain Executive b. Recruitment, Selection &&Promotion
b. Recruitment, Selection Promotion
Corporate Action Plan
Corporate Action Plan Endorsement
Endorsement c. Deployment, Rotation &&Relocation
c. Deployment, Rotation Relocation
d. Training &&Professional Development
d. Training Professional Development
e. Performance Management / /Appraisal
e. Performance Management Appraisal
4. Establish Verifiable
4. Establish Verifiable 8. Morale &&Corporate Culture
8. Morale Corporate Sector
Performance Indicators
Performance Indicators 9. Relations with PrivateCulture
9. Relations with Private Sector

22. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
6b. Integrity Management
Outcomes from Conference include:
• Detailed self-assessment of CBR’s current status against the
WCO “ideal” (some strengths, many weaknesses)
• Action Plan with list of short term urgent measures and longer
term actions, with responsibility clearly allocated
• Integrity Management Committee approved
• Communication Strategy agreed
• IM Policy Statement developed, agreed and signed by all
delegates (next slide)

24. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
HRIS
• Database Management
• Training & Educational Profiling
• Reward and Compensation Management
• Performance Management
• Career Planning

25. Revenue Division
Central Board of Revenue
CBR PAKISTAN
Government of Pakistan
8. The Way Forward
• Autonomy from GOP Rules to implement progressive HR
Policies (eg: recruitment, promotion, pay structure, job grading, etc)
• Capacity development for modern management skills &
performance-based culture
• Performance Management System to replace ACR system
• Performance Related Pay to reward best performers
• Employee Welfare Programs
 Housing
 Transportation
 Medical and Hospitalization plans
 Children Education

26. Revenue Division
Central Board of Revenue
CBR PAKISTAN
HR Conference process:
Government of Pakistan
POETS - Strategic Analysis
Model
1. Envisage change as a spoked
wheel which must turn in a given
direction Systems People
2. Select spokes, ie: main “drivers” of A Q
Change - POETS or other B
P
N
3. Determine factors acting on spokes C
4. Map by effect on direction of wheel D
M
(‘help’ or ‘hinder’ ) E
5. Assess effort and cost of exploiting K Organisation
helpers and minimising blocks Technology F L
against result like to be achieved
G
6. Identify most effective factors J
H
(“helpers” or “blockers”)
7. Develop operational strategies to Equipment
enhance helpers, minimise blockers.

27. Revenue Division
Central Board of Revenue
CBR Government of Pakistan
HR Conference outcome:
PAKISTAN
HR Strategy - key features
• Realignment of HR Strategy with business goals &
objectives
• Capacity building of employees based on reforms
requirements
• Development & implementation of HRM policies under FBR
Act 2007
• Objectives and competency based Performance
Management System to replace ACRs
• Grading & Pay structures to be revised; rewards package to
be linked with performance

28. Revenue Division
HR Conference outcome:
Central Board of Revenue
CBR Government of Pakistan
Training Strategy - key
PAKISTAN
features
• Separate DoTs for Customs & Inland Revenue Service but
reporting to same Supervisory Board
• More financial & administrative autonomy
• Closer links to HRM & Field to be institutionalised
• Management Training Faculty to be developed
• Curricula to be updated more regularly
• Latest training methods to be learned and utilised
• More use of e-Learning delivery techniques