Project – Automated payroll management system

CHAPTER ONE

• Introduction

In the area of information system design and other problem-solving areas, it is important to select an appropriate method in order to solve the problems. All situations that include dealing with human and their context have different degrees of complexity. Situations and problems may look similar. Business organization, local, state, and federal government, etc. today allow knowledge workers to develop many of their own applications including information system (Database) applications that support an individual or a workshop activity. Their opportunity lies in learning how to identify their information needs, developing the best logical information model, implementing that logical in the form of a database, and then taking advantage of data manipulation tools to add, change, find and delete information and manipulate the database for valuable information retrieval.

According to O’Brien (2018), an understanding of effective and responsible use and management of information technologies is important for managers, business professional, medical practitioners and other knowledge workers in today’s internet worked enterprise. Information system plays a vital role in the e-business and e-commerce operations, enterprises collaboration and management strategic success of business. Information system can be any organized contribution ofpeople, hardware, software and communication networks and data resources that collect transformed and disseminate information in an organization.

• Background of The Study

Payroll is a critical operation for every organization to pay employee accurately their salary and enrollments on time.

The idea of taking control of employees pay calculations are quite tedious if done manually and require more effort and time mainly for big organizations. Hence if this process is automated, it would be of great benefit as it would require less time to calculate the salary of the employees. The software for payroll management system service on the cloud is provided as a solution in this paper.

This system provides multiple user data access. Each user like employee or HR or admin can login into the software by writing username and password which are allocated to them from the company. It involves keeping track of hours worked and is capable of keeping a record of employee data including their pay, allowance and deductions on monthly bases so that fresh definitions are reflected from the month onwards, which leaves all the past data intact. Marcus and Rozario (2018)

The proposed payroll system is advantageous as it provides a user-friendly environment and also increases security and minimizes human calculation errors.

This research work discusses the design and implementation of a Payroll system database application with my structure query languagedatabase. It also discusses the issues of selecting appropriate database model, interface design, and system deployment. A projection of record growth in relation to staff population and system requirement was carried out in the study.

The concept of employee payroll management system is evolving or developing rapidly from a simple to a complicated form within different organizational setup. The employee human resource and payroll system are the bedrock of every organization. Therefore, there is need for assessing workers or to potential employees right from the entry point exercise or the recruitment period in order to make sure that the worker, who is to be employee into an organization as a staff will be productive or not.

The proposed Payroll system will not only deal with the managing workers in a work place, but also takes note of all the resources that are associated to an employee such as the financial condition of an organization that has been established has some set goals that it wants to achieve. But unless the human resource or the payroll well managed, such desired goals will not be achieved. In this case, any organization that want to achieved it set goals has to deploy a computer-based information system consisting people, hardware’s software’s, communication media and data resources that collect, transform and disseminate information in an organization for running the organizational operations smoothly.

The proposed payroll software system is a computer-based information system that is supposed to automate some aspect of human resources management in an organization. This will help an organization to ensure accuracy and efficiency in the processing of the payroll of an organization that will subsequently leads to the achievement of the desire set goals of the organization. The computer performs variety of activities reliably, accurately, and quickly, one way of utilizing and the payroll system. This notwithstanding that computer software applications can be apply even at the entry point exercise or recruitment, to determine who and who is not supposed to be employed into an organization to serve as an employee to that organization for the attainment of tis goals.

1.2   Statement of the Problem

Before the introduction of the computerized payroll system, manual handling of workers or manual operations of pay voucher were the order of the day. This was tedious and time-consuming exercise that prompts to a lot of errors, bugs, corruption and fraud, emanating from mistakes accrued during preparation and recruitment of new employees. The manual system (Existing system) of operation used in carrying out the processes of employee payroll system in Bali Local GovernmentAreawas considered as the main source of some if not most of the problem encountered during the course of processing salaries and other payroll activities.

The manual method requires numerous personnel and takes a longer time (time consuming) to do the payment, the voucher and accuracy is lost by not balancing the account correctly. Some personnel do inflate salaries of some workers, this leads to the introduction of ghost workers.

• Aim and Objectives of The Study

The aim of this research work is to improve on the way of handling and managing of employee’s records in Bali Local GovernmentArea and the payroll system in the local government level through the introduction of the computer-based information system.

The followings are the objectives of this research work: –

1. To developed a software that can support the management of staff records in Bali Local GovernmentArea.
2. To create a payroll software system that will be up-to-date until the retirement period of a worker or an employee and to support record management.

• To provide a relief in tedious repetitive clerical work and cost of duplicating less while computing payroll.

1.4   Scope and Limitation of The Study

The scope of this research work is to be able to design and develop a payroll system for Bali Local Government Area.

The limitation of this research work includes not to be going on a cover aspect of software that runs off-line, it is restricted to those operations that involves an online or on a network only.

1.5   Significance of the Study

The significance of this study is to consolidate the problems identified with the existing (manual or traditional) system.

1. The record keeping method is considered obsolete, hence a more rigid and enhance method is considered worthy.
2. The problem of data duplication and other related fraudulent acts; the system is expected to enforce greater data integrity and security.

• To help the financial house keeping details of employee record as well as calculate tax rate, dividend and other withdrawals.

1. To reduce and ease the job of processing employee voucher.
2. To provide information which will aid the management in decision making, about their employees record?
3. To provide a cost-effective way in dealing with the voluminous book keeping generated by local government and its other departments.

1.6   Definition of terms

An attempt has been made to explain terms used in this study, but nevertheless the more technical terms would be defined as the text progresses if the need arises.

Computer: An electronic device that is designed in such a way that it accepts data as input, process these data and gives out a result.

Automation: this idea of converting the manual process of doing or solving the problem into a machine form to help in solving the problems.

Payroll: the personal month emolument of an employee produced by the payroll department of the employer.

Pay slip: the slip handed to the employee on receipt of his pay, describing the basic salary, allowances and taxable income deductions.

Payroll sheet: A sheet that contains the entire pay of the workers in a month schedule for documentation in the office.

System: an interrelated, interdependent component parts working in line as to achieve a common goal such as developing a payroll.

Database: a collection of integrated and related les. Retrieving: retrieving is the process of locating the stored data and making them available for other processing activities. Pay advice: is the same as pay-slip, it tells how much worker is owned.

Summary sheet: this is a sheet used by the personnel in charge to summarize each monthly salary.

SMS: Small and Medium Scale

Voucher:is an accounting document representing an internal intent to make a payment to an external entity, such as vendor or service provider.

Project – Automated payroll management system