IRS case



centercenterMatt HolstonProfessor BarkerCIS 410-0111/7/2019IRS case8820090900Matt HolstonProfessor BarkerCIS 410-0111/7/2019IRS caseBackgroundThe Internal Revenue Service (IRS) works for the government to collect revenue. This collected revenue is then turned over to the government. The IRS has collected over $935 billion dollars from tax returns. The IRS provides services to taxpayers in assisting them to pay their taxes to the government. The IRS is very large, and their scope is the whole United States. They currently have over 120,000 employees and 700 offices scattered across the globe. Technology plays a crucial role with the day-to-day operations of the IRS. To be able to gather all the across their 700 offices takes some serious software coordination. Technology significantly increased the benefits for the IRS by saving them time and revenue. All taxpayers must go through the IRS to pay their taxes.Mission StatementThe mission for the IRS is to collect revenue for the US government. The IRS wants to make the process and procedures as simple as possible for taxpayers. In turn, these taxes will be paid back to the government. “To collect the proper amount of tax revenue at the least cost to the public, and in a manner that warrants the highest degree of public confidence in our integrity, efficiency, and fairness” (Cash).Generic Strategy The generic strategy for the IRS is cost leadership. The IRS wants to offer their services to as many people as they can, at the best prices. The IRS has a focused target audience. “It is hoped that by focusing… on one or two narrow market segments… you can better meet the needs of that target audience” (Porter). Since all taxpayers have to pay their taxes through the IRS, the IRS’s target audience is a very large diverse anizational StructureThe organizational structure of the IRS is divisional. Since the IRS is so large and spread out across many locations, a divisional approach is the most logical. Each division is able to fully communicate and coordinate. If the structure wasn’t separated in divisions, then the flow of communication would prove to be too complicated. “Each division may be responsible for a different set of products, geographical markets or segments, or clients” (Cash). Because each region may operate differently, it is much easier to have a specific department focused on a specific region. In the end, it makes the flow of information and coordination much more efficient. The ProblemThe main problem that the IRS was facing was employee satisfaction taking a tremendous hit. Before the automated collection system (ACS), IRS employees were able to complete their cases from start to finish. This had a positive influence on IRS employees. They received satisfaction from seeing the start of a case all the way to the conclusion. Also, before ACS, employees were able to coordinate with other employees to assist in the case. IRS employees thrive for the sense of accomplishment and ACS is taking that away from them. They don’t get to see the result of their hard work. IRS employees are now able to get all the information they need without having to communicate with other employees. To many, this a negative impact on how they combat their cases. Employees are now expected to complete an issue with a case, and then immediately jump to the next case. ACS is removing the satisfaction the employees receive for completing a case. The ACS system also tracks and monitors everything employees did. For management, this would be a terrific addition to the system. Employees didn’t see it the same way as management did. Ultimately, everything that IRS employees once got satisfaction from, ACS eliminated. Employees need to feel some sense of accomplishment with their jobs because they could see the results of their hard work. “Employees need to feel some sense of accomplishment in order to continue to do a good job, but when employees do not have a clear understanding of their responsibilities, them how can an employee feel motivated to continue to work hard and do a good job at any level of the hierarchy” (Morgan).Porter’s Five ForcesIndustry Competitive Analysis – The competition in the IRS’s market is low. Since all of the United States has to use the IRS to pay their taxes, it’s quite difficult for a competitor to survive in their market.Threat of New Entrance – The threat of a new entrance is low. As previously stated, everyone has to use the IRS to pay their taxes so it would be very difficult for a competitor to survive in this market. All taxes must be paid through the IRS, and the IRS only.Threat of Substitutes – The threat of substitutes is low. Everyone has to pay their taxes through the IRS and no one else. Although some technology can be modified, citizens must follow the rules and pay their taxes only through the IRS. “Competitive threats to the firm’s products and services, as related to information technology, may be derived from several primary and secondary sources” (Fried).Bargaining Power of Customers – The bargaining power of customer’s is low. Customers have no other option in this market. Their only choice is to pay their taxes to the IRS.Bargaining Power of Suppliers – The bargaining power of suppliers is low. Since the IRS is a monopoly, suppliers will be willing to pay whatever amount necessary to be involved in the IRS’s business market. Because the IRS has such a large budget to work with, they are able to their suppliers a very reasonable price. Any supplier in their market could greatly benefit from what the IRS has to offer them.StakeholdersIRS Management – The IRS management is responsible for monitoring and controlling the organization. The IRS management approved the ACS software that would help in assisting them conduct their day-to-day operations. The ACS software would make their tasks much simpler. IRS Employees – The IRS employees are completely unsatisfied with how ACS has altered their day-to-day job operations. The employees feel that all the satisfaction has been taken away by the ACS. Prior to ACS, employees felt pleased when they had a case go from start to finish, that is no longer the case. Employee coordination is also at an all-time low with the installment of ACS. Employees never leave their desk and they’re expected to move from one case to the next without seeing it completed.U.S. Government – The IRS represents the primary tax revenue collection for the U.S. government. The government is a major stakeholder and relies on the success of the IRS to continue receiving their tax revenue.Taxpayers – Taxpayers rely on the IRS to collect their taxes for the U.S. government. Without the IRS, taxpayers wouldn’t have a simple way to pay off their taxes.AlternativesDo Nothing – This alterative would have the IRS continue on with their day-to-operations with using ACS. The IRS is still successful in their operations. The only downfall with this alternative is that employee satisfaction is at an all-time low. Employees will still be dissatisfied with the way they’re working. There will be no employee to employee collaboration. Supervisors will continue to monitor what the employees are doing at any given moment. The IRS will save money on not needing to hire the most qualified employees. ACS will make up for the lack of experience. Ultimately, the IRS will save money.Restructure ACS’s Work Organization into Semi-Autonomous Teams – This would increase the satisfaction level of employees by allowing them to see their cases from start to finish. Management would still be able to monitor the teams, rather than individuals. This alternative would cost roughly $1 million to redesign the technology. Change the Way the System Is Managed – This would decrease the amount of monitoring that is currently being conducted. Employees are currently dissatisfied with the current way that monitoring is being handled. Employees would get immediate responses from their supervisors with in-depth feedback. This would provide employees with constructive feedback that would prove to benefit them going forward. Recommendation DecisionMy recommendation would be to go with the do nothing alternative. This alternative proves to be the cheapest. The IRS’s current mission is to cut down on cost. The IRS is currently very successful with the way they’re conducting their business. The ACS system lowers the cost of hiring experienced employees. The system doesn’t require an expensive employee to operate it. The satisfaction of employees does come into consideration. If the employee decides that they’re too dissatisfied with the IRS and leave the company, then they can easily be replaced. With the ACS system not needing an experienced user, the IRS can easily fill that employees spot. The main reason that taking the employee’s satisfaction level into consideration would be wrong, would be because that restructuring ACS would prove to be expensive and would require time to implement. Valuable time that the IRS doesn’t want to lose. So, sticking with the current ACS system would make the employees work more effective and have them be more productive. The monitoring system has its pros and cons, but for the IRS, making sure their employees are constantly working, will maximize their revenue. Citation PageCash, James I. “Corporate Information Systems Management” McGraw Hill Companies Inc. 1999, 5th editionFried, L. (1995). Managing Information Technology in Turbulent Times. New York: Wiley. “Porter's Five Forces: - Understanding Competitive Forces to Maximize Profitability.”?Strategy Skills Training From , , Michael. “Porter’s Generic Competitive Strategies”. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 1 (Nov. - Dec. 2013), PP 11-17. Morgan, G. (1997). Images of Organization (2nd ed.). Thousand Oaks, Calif.: Sage Publications. ................
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