This final lesson examines performance management as a tool for driving organisational success and enterprise risk management for identifying and mitigating strategic risks. It covers performance measurement systems, staff engagement, and the principles of enterprise risk management.

 

  • Performance Management Systems: Almost all tax administrations report that they have performance management systems in place. Most conduct evaluations on an annual basis (or more often) and include specific objectives for each staff member. The importance of individual development plans has also been recognised—only 15% of administrations do not include them in their performance management system .

  • Key Elements of Performance Management:

    • Individual Development Plans: 85.2% of administrations include individual development plans.

    • Specific Objectives: 90.7% of performance management systems include specific objectives.

    • Formal Evaluation: 92.6% conduct formal evaluation at least annually .

  • Staff Surveys and Engagement: Around 70% of administrations survey their staff periodically on attitudes, perceptions, and workplace satisfaction. Of those:

    • 97.6% assess staff engagement

    • 95.1% share results with staff

    • 90.2% engage staff when responding to assessment findings 

  • Enterprise Risk Management (ERM): The VITARA curriculum identifies Enterprise Risk Management as a key topic for tax administration management. ERM involves identifying, assessing, and mitigating risks that could affect the achievement of strategic objectives. This includes operational, financial, reputational, and compliance risks .

  • Authority of Tax Administrations: Tax administrations have substantial authority over their human resources, including the ability to:

    • Determine work requirements (98.3%)

    • Make appointments (91.4%)

    • Decide on promotions (89.7%)

    • Determine skills and qualifications required (93.1%)

    • Apply disciplinary sanctions (96.6%) 

  • Performance-Based Rewards: Performance-linked reward systems are recognised as global best practice in revenue collection agencies. For example, the Uganda Revenue Authority’s performance-based bonus system, approved by Parliament following record revenue performance, is designed to motivate staff and reinforce a culture of productivity

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