Designing a Model for Improving Human Resource Productivity in the Tax Administration Using a System Dynamics Approach: A Case Study of East Azerbaijan Province

Hossein  Ehrami; Mohammad Pasban; Mojtaba  Ramazani

Authors

Hossein Ehrami Department of Management, Ta.c., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0009-0008-5431-1935
Mohammad Pasban Department of Management, Ta.c., Islamic Azad University, Tabriz, Iran https://orcid.org/0000-0001-5283-8508
Mojtaba Ramazani Department of Management, Ta.c., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0000-0001-5275-4830

Keywords:

Human Resource Productivity, System Dynamics, Tax Administration, Human Resource Empowerment, Automation, East Azerbaijan Province

Abstract

This study aimed to design and simulate a comprehensive model for improving human resource productivity in the East Azerbaijan Province Tax Administration using a system dynamics approach. This applied-developmental study employed an exploratory mixed-methods design and explanatory modeling based on system dynamics. Data were collected through a review of the literature and organizational evidence, questionnaires, and open interviews with experts. Fourteen university academics, senior tax experts, and human resource and productivity specialists were selected through purposive and convenience sampling to contribute to model development. Six experts additionally participated in evaluating the structural validity of the causal-loop and stock-flow models and the validity of mathematical relationships among endogenous variables. System dynamics modeling involved problem structuring, developing dynamic hypotheses, constructing causal-loop and stock-flow diagrams, model validation, simulation, scenario development, and policy evaluation. Simulation of five feasible scenarios showed substantial differences in their predicted effects on human resource productivity. Scenario 4, involving simultaneous improvement of empowerment-related facilities and tax-process automation, produced the greatest increase in productivity, amounting to 240 units. Scenario 3, which enhanced the relative welfare of different employee groups, increased productivity by 109 units. Scenario 2, involving increased recruitment rates across employee categories, resulted in a 50-unit improvement. Scenario 5, increasing in-service training hours within organizational capacity, generated only a 19-unit increase. Under Scenario 1, representing continuation of existing conditions, the human resource productivity index was projected to reach 2,449 units by the end of the simulation period. An integrated strategy combining employee empowerment with technological development and automation appears to provide the strongest leverage for improving human resource productivity in tax administration. Welfare-oriented interventions may offer additional substantial benefits, whereas isolated recruitment or training initiatives are likely to generate comparatively limited improvements.

Downloads

Download data is not yet available.

References

1. Jayarathna GS, Perera SR, Gunawardana S. Strategic Human Resource Management: Driving Organizational Excellence Through Strategic Alignment, Ethical Practices, and Emerging Trends. International Encyclopedia of Business Management. First Edition ed: Academic Press; 2026. p. 709-17.

2. Kumar K, Singh R. Sustainable Human Resource Management. International Encyclopedia of Business Management. First Edition ed: Academic Press; 2026. p. 681-5.

3. Andrade JR. Human Resources Development. International Encyclopedia of Business Management. First Edition ed: Academic Press; 2026. p. 673-6.

4. Günter A, Gopp E. Overview and Classification of Approaches to Productivity Measurement. International Journal of Productivity and Performance Management. 2022;71(4):1212-29. doi: 10.1108/IJPPM-05-2019-0241.

5. Tapasco-Alzate OA, Giraldo-García JA, Osorio-García D. Work Productivity Management in Knowledge-Intensive Service Companies: Considerations and Challenges. Cuadernos de Administración (Universidad del Valle). 2020;36(66):64-77.

6. Tapasco-Alzate OA, Giraldo-García J, Ramírez-Ramírez D. Productivity Metrics in the Context of Knowledge Work: Literature vs Practice. International Journal of Productivity and Performance Management. 2021;71(7):3030-55. doi: 10.1108/IJPPM-05-2020-0219.

7. Meshki Majelan M, Satari S, Soleimani T, Mirzaee Daryani S. Human Resource Productivity Indicators Factor Analysis: Emphasizing Scientific and Ethical Factors. International Journal of Ethics & Society. 2020;1(4):35-45.

8. Gharachorloo N, Ghahremani Nahr J. Determining Human Resource Productivity Indicators in Scientific and Technological Organizations. Productivity Management (Beyond Management). 2022;16(2 (61)):217-41.

9. Mohammadrezai M, Sarlak MA, Faghihi A. Provide a Model to Evaluate the Productivity of Knowledge Workers Using the Fuzzy Delphi Method and the Best-Worst Fuzzy Method: A Case Study of Knowledge-Based Companies. Organizational Culture Management. 2021;19(2):377-404.

10. Afrazeh A, Alimoradi M. A Consolidated Method for Measuring Knowledge Worker Efficiency Based on Shannon Human Potential Model and Data Envelopment Analysis Method (With a Case Study). Journal of Operational Research and Its Applications. 2023;20(1):117-37.

11. Vakili Y, Khamechi H. A Meta-Analysis of the Antecedents of Human Resource Productivity. Productivity Management. 2022;16(1):167-89.

12. Ataei E. Identifying the Factors Affecting Human Resource Productivity. Transactions on Data Analysis in Social Science. 2024;6(2):127-39. doi: 10.47176/tdass.2024.127.

13. Sadeghi Fard M, Sayadi S, Pourkiani M, Salajegheh S, Babaei H. A Model for Factors Involved in Human Resource Productivity in the Affiliated Offices of a Government Organization. Agricultural Marketing and Commercialization Journal. 2020;4(1):290-304.

14. Oskouei SKM, Sayadi S, Salajeghe S, Sheikhi A. Investigating the Effect of Individual Attitude Characteristics on Human Resource Productivity Effects in Bank Saderat Iran. REICE: Revista Electrónica de Investigación en Ciencias Económicas. 2020;8(16):312-43.

15. Herati Mokhtari A, Younespour M. Identifying and Prioritizing Factors Affecting Human Resource Productivity in Chabahar Port. Oceanography. 2022;13(50):83-95.

16. Amiri S, Beikzad J, Nejad Haji Ali Irani F, Mojallal MA. An Optimal Model for Measuring the Human Resources Productivity in the East Azarbaijan Gas Company. International Journal of Nonlinear Analysis and Applications. 2023;14(1):2233-46. doi: 10.22075/ijnaa.2022.27628.3664.

17. Sharma R, Priya S, Wadhawa M. A Study on the Impact of Factors Adopted by Hospitals to Increase Staff Productivity. Mukt Shabd Journal. 2020;9(6):7720-7.

18. Prasetyo A, Asmoro H, Sipahutar H, Nuryadin D, Budi SCW. Human Resource Productivity Development Strategy in the Regional Innovation Process. 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)2020.

19. Wang C. Resourceful and Resilient: Linking Human Resource Quality and Organizational Resilience. Finance Research Letters. 2026:109555. doi: 10.1016/j.frl.2026.109555.

20. Khaksar SMS, Chu MT, Rozario S, Slade B. Knowledge-Based Dynamic Capabilities and Knowledge Worker Productivity in Professional Service Firms: The Moderating Role of Organisational Culture. Knowledge Management Research & Practice. 2023;21(2):241-58. doi: 10.1080/14778238.2020.1794992.

21. Sahibzada UF, Latif KF, Xu Y. Symmetric and Asymmetric Modeling of Knowledge Management Enablers to Knowledge Management Processes and Knowledge Worker Productivity in Higher Education Institutes. Journal of Enterprise Information Management. 2022;35(3):729-56. doi: 10.1108/JEIM-08-2020-0346.

22. Liu CH, Lin JY. Collaboration-Based Scientific Productivity: Evidence from Nobel Laureates. Scientometrics. 2024. doi: 10.1007/s11192-024-05062-8.

23. Aimee CS. Relationship between Virtual Employee Engagement, Self-Efficacy, and Productivity [Doctoral dissertation]: Walden University; 2020.

24. Al-Suwaidi K, Alsyouf I, Tahboub Z, Alsaad A, Alsyouf A. Integrating Fourth Industrial Revolution Technologies in Human Resource Practices: Mediating Roles of Work Flexibility, Quality of Work Life, and Distributive Fairness in Enhancing Employee Productivity. Sustainable Futures. 2025;10:101150. doi: 10.1016/j.sftr.2025.101150.

25. Azizi N, Akhavan P, Philsoophian M, Davison C, Haass O, Saremi S. Exploring the Factors Affecting Sustainable Human Resource Productivity in Railway Lines. Sustainability. 2022;14(1):225.

26. Shrouf H, Al-Qudah S, Khawaldeh K, Obeidat A, Rawashdeh A. A Study on Relationship between Human Resources and Strategic Performance: The Mediating Role of Productivity. Management Science Letters. 2020;10(13):3189-96.

27. Zhang Y, Iqbal S, Tian H, Akhtar S. Digitizing Success: Leveraging Digital Human Resource Practices for Transformative Productivity in Chinese SMEs. Heliyon. 2024;10(17):e36853. doi: 10.1016/j.heliyon.2024.e36853.

28. Sheth SV. Developing Human Resource Analytics Capability Architecture in Organizations. Personnel Review. 2025;54(9):2286-310. doi: 10.1108/PR-01-2024-0009.

29. Bastida M, Vaquero García A, Vazquez Taín MÁ, Del Río Araujo M. From Automation to Augmentation: Human Resource's Journey with Artificial Intelligence. Journal of Industrial Information Integration. 2025;46:100872. doi: 10.1016/j.jii.2025.100872.

30. Thomas S, Nair DS, Joseph J, Srampical SG, Cleetus RS. Examining the Sustainable Integration of Artificial Intelligence in Human Resource Digitalization in the Context of Industry 4.0. European Public & Social Innovation Review. 2025;11:1-14. doi: 10.31637/epsir-2026-2044.

31. Li B, Cheng Y. ChatGPT in Human Resource Management: A Systematic Review of Influential Factors, Processes, and Outcomes. Heliyon. 2025;11(15):e44048. doi: 10.1016/j.heliyon.2025.e44048.

32. Lee JH, Park EJ. Smart Factories in Textile Industry: Implications for Sustainability and Productivity. Journal of Industrial Engineering. 2024;40(1):105-17. doi: 10.1016/j.jie.2024.01.011.

33. Ohueri CC. Human Digital Twin for Optimizing Labor Productivity in Construction 5.0. Automation in Construction. 2026;183:106800. doi: 10.1016/j.autcon.2026.106800.

34. Zhang Z, Lu J, Wang Q. The Financial Impact of Human Resources Configuration: A Quantitative Analysis Based on Modified Single Candidate Optimizer. Egyptian Informatics Journal. 2025;29:100584. doi: 10.1016/j.eij.2024.100584.

35. Jian F, Liu Q, Feng C, Hu Q, Yu Q, Guo Q. Critical Factors Affecting Construction Labor Productivity: A Systematic Review and Meta-Analysis. Buildings. 2025;15(14):2463.

36. Hassoon A, Ghazali FEM, Khaleel T, Hadi A. Growing Demand for Housing and the Productivity Challenges in Developing Housing Projects in Iraq. Journal of Infrastructure Preservation and Resilience. 2025;6(1):3. doi: 10.1186/s43065-025-00116-4.

37. Liang Y, Jamil R, Teng J, Chen Y. Navigating Human Resource Management in the Gig Economy: A Bibliometric and Interpretive Literature Review. Social Sciences & Humanities Open. 2026;13:102270. doi: 10.1016/j.ssaho.2025.102270.

38. Krawchenko T. Public Sector and Productivity: Governing at the Right Scale. 2021.

39. Krawchenko T. Can Governance at the Right Scale Increase Productivity? A Comparative Scoping Review. Canadian Journal of Regional Science / Revue canadienne des sciences régionales. 2022;45(1):16-25. doi: 10.7202/1088299ar.

40. Tzeremes P. How Do Globalization Indicators de Jure–de Facto and Total Factor Productivity Affect Tourism Development in European Countries? Journal of Hospitality and Tourism Insights. 2021;4(5):601-21. doi: 10.1108/JHTI-05-2020-0089.

41. Zang Z, Zhang X. Unlocking Firm Productivity: The Impact of Mineral Resource Abundance on Total Factor Productivity in China. Finance Research Letters. 2025;86:108792. doi: 10.1016/j.frl.2025.108792.

42. Al-Kofahi ZG, Mahdavian A, Oloufa A. System Dynamics Modeling Approach to Quantify Change Orders Impact on Labor Productivity 1: Principles and Model Development Comparative Study. International Journal of Construction Management. 2022;22(7):1355-66. doi: 10.1080/15623599.2020.1711494.

43. Baibordy L, Bafandeh Zendeh A, Aali S. Designing a Human Resource Productivity Model with a System Dynamics Approach in the Health Sector. International Journal of Nonlinear Analysis and Applications. 2023;14(1):557-73.

44. Zare Mehrjerdi Y, Aliheidari T. Using System Dynamics to Model the Interaction among the Factors of Job Satisfaction, Productivity, and Quality of Service in the Health Industry. Journal of Systems Thinking in Practice. 2023;2(1):93-117.

45. Dongla M, Khalafalla M. Modeling Policy and Resource Dynamics in the Construction Sector of Developing Countries: A System Dynamics Approach Using Sudan as a Case Study. arXiv preprint arXiv:260102405. 2026. doi: 10.48550/arXiv.2601.02405.