Payroll Management System - BPR
Introduction
Payroll system is used for management of the employees’
salary and their compensation and benefits. It requires the whole data of an
employee from the higher authorities who have hired. The departments and
sections are responsible for the allowances and deductions from the salary of
an employee. For this purpose that employee should get its salary by easy and
comfort mean it is now required to have the business process reengineering of
the processes in payroll department.
Softcom Pvt. Ltd. is a company of buying and selling of the
computer systems to the industries with their innovations and inventions in the
field of hardware engineering. This company has the branches all over the
country. They have above 500 employees.
Description of problem
Having the old system of the
payroll the department face many challenges and many problems which effects the
conditions of employees so the following problems occurs in their system.
- Salary would be late.
- Manual working of attendance
- Manually approvals took time
- No accurate of the data
- Fraud and bribe among employees
- Database not centralized
- No integration in branches
Objective and Solutions
To design a system with efficient
and fastest payroll system which is automated and have the capacity to enroll
all the employee’s salary at same time and without any break and fraud. Digital
signatures from higher authority which make it fast and integrate all the
branches of the company. Run the payroll system from only one branch which send
all the employee salary automatic to all the branches of the company. Conduct
the successful reengineering of the existing process of the company.
Control statement
This document is restricted to page # 27.
Methodology for BPR
We are using the following
methodology for the success of the project.
- Identifying and analysis of existing process
Gathering
information of the process which needs to be reengineered, analyze the process
by mapping it. Internal sources and external sources are considered.
- Redesign of the existing process
Creation of BPR
team. Redesign the new process with the help of best practices. Reconstruct the
process and its activities according to the process which should be. External
consultancy will be preferred.
- Implement the redesign process
Implementation
required new systems and technology, Includes benchmarking and customization
according to the concerned department requirements, provide training to the
employees on new system.
- Continue improvements
Improve
continuously with new innovations on the process according to the user and also
the system.
Current Scenario
The company using old systems and
manually working on registers. Paper work is more than the computer work as the
patching and generation of pay slips are in computerized form.
Technology used
Software
- Windows XP environment
- Microsoft Excel 2000
Hardware
- Intel Celeron
- 256 MB RAM
- LAN
AS-IS Process
The Process flow chart shows the
core processes of the Payroll System. It
has Four sections on which this system
work . The flow of the system showed below.
Payroll Department
Section I: Profiles
Section II: Attendance
Section III: Allowances and Deductions
Section IV: Payment
Section I Profile
Section I is profile section. This section is responsible
for the maintenance the profile of employees.
Database
Off page
Start/Terminate
Process
Decision
Section II Attendance
This section is responsible for recording all the attendance
of every employee in the company.
Database
Process
Decision
Start / Terminate
Section III Allowances & Deductions
This section
is responsible for the additions and deductions from the basic salary of the
employee which is define by the company policy of salary.
Database
Off page
Start/Terminate
Process
Decision
Section IV Payment
This section
has the responsibility of payment the salary to employee.
Database
Start/Terminate
Process
Decision
Multiple reports
Proposal
With the co-operation of the higher authorities and with the
review of the existing system, we proposed a better system which eliminate all
the problems faced by the Softcom. This is our purpose to re-engineer the
process with the full improvements and efficient system. This is using the
whole new technology which allows the efficiency and effective working for the
system. As the company has different branches in all over country and have
above 500 employees working. So it is proposed that it should have an integrated
system which allows all the branches connected with the head office. Using new
software with the help of new technology and provide the employers the training
of it. This is the team of this project working on it.
This system will be considered to be an integrated system
which will customize all the issues and requirements of the end user of the
company. The system is design as with three tier system and have the very
secure environment for the user. The activities performed in the system are
considered as process to process not department to department. It came after
the great analysis of the company requirement process and activities under the
policy of the company. The employer and employees facing the problems and
issues are approximately avoid in this system. The system is flexible due to
which it can be customize by the company at the front end screen used by the
user of the system. The system is reviewed by the top management of our
company.
Architecture View
The three tier system is used to provide integration and
connectivity among branches. The centralized database is used, VPN is used for
the security of the system and only screen will travel with the authorization.
So by this method the user will be restricted and secure. The system will be
faster and have ability to query fast and efficiently.
Technology
The system is
using the new technology for full support of new systems.
Software
The software
used in developing the software and implement the software and for the
end-user.
- C# Dot Net programming
- Microsoft .Net Framework 3.5
- Unix for Server
- Windows XP Professional for Client
- SQL Server Database
- Teacup software provided by vendor
- Crystal reports for reporting
Hardware
Hardware required
running the system.
- Pentium Dual Core 2.2 GHz
- 1 GB RAM
- 80 GB HD
- LAN
Network
The following network is used to integrate all the branches.
- 3 tier system which will provide security for the database and servers, in this system the user will connect with the terminal that is only screen will travel to the users.
- VPN is used to authorized the users and the top management. This is fully authorized under the head of the department.
- Programs will running on servers and only screen will travels according to the authority.
Reliability of the Technology
These are the today’s trend technology which is more
effective and easy to use. The windows is more reliable than the previous
windows which is required the authorization. The UNIX for server is reliable
and that is why it is selected. The server needs to be updated and reliable
that it have the whole applications and other data of the system which needs to
be store and can be retrieve at any time.
The programming language is easy to use, using new technology
with object oriented programming which is more easier and more convenient for
the user to configure the changes according to the requirement of the top
management.
Building of the reports are faster and more understandable
with crystal reporting. It is new tool for reporting and for summarizing the
system for the top management.
TO-BE Process
The payroll system is now using the consolidated departments.
All the departments are working as one department and the problems they were
facing are eliminated.
The change in profile is an employee ID which is signed for
the first time when made the profile and that is for all the employees. This ID
is generated by system when saving a profile and all the work depend upon this
ID. Even though the employee is transfer or been retired but this id only deactivate
in payroll system. The employee from any other branch transferred or promoted,
but the ID will be same and by that it will only configured. There is only one
department called as Payroll department which is responsible for all maintenance
of compensation and benefits of employees.
Overview
The new redesign process for the payroll is free from all the
problems of existing process. The sections should not be different, all the
sections are consolidated with each other. Now the system is starting from the
hiring in which a form is filled by the employee at the time of hiring and this
form is fully computerized. The following new processes are as follows
·
Using
of time cards for attendance instead of manual.
·
Allowances
and deductions are in same manner at the time of profile generation
·
Digital
signature for approval to eliminate fraud and time consumtion
·
Only
head office is responsible for the employee salary
·
Integration
with bank
·
Payment
is responsibility of the bank
·
Employer
get his/her salary at the 1st of the month.
·
No
patching of payslips.
·
Already
defined payscale system
·
Calculations
of the tax by tax slab and it can be changed when it is changed by the
government
·
All
the system is under control by the top management.
The departments
are consolidated so the end users are:
- Cashier
- Disbursing officer
- Accountants
- CFO
Payroll Department
This department is responsible for all the maintenance of
compensation and benefits of all the employees.
Database
Process connecter
Start/Terminate
Process
Decision
Database
Process connecter
Start/Terminate
Process
Decision
Database
Process connecter
Start/Terminate
Process
Decision
Database
Process connecter
Start/Terminate
Process
Decision
Features
This
software has the following features which enables the user’s convenience and
more affective and interactive way of management.
- Automation of generation of reports
- Interactive reporting
- Convenient for employees to check their salary
- Online payment
- Bank integration
- Automated calculations
- Fully computerized
- New technology
- Flexibility
- Centralized system
- Under control of top management
- User friendly
- Update automatically
- Back-end running
- Fully secured
- Reliability
- Authorized
- Centralized database
APPENDIX A
Gap Analysis
The analysis
shows the AS-IS and TO-BE process of the system.
Description
|
AS – IS
|
TO - BE
|
Department
|
Sections are working under one department.
|
Only one department named Payroll instead of sections.
|
Activities
|
Attendance was manually noted and recorded to the system
|
Time cards are used for attendance with automatically addition.
|
Approvals
|
Approvals were manually approved by the heads.
|
Digital signatures are for the approvals.
|
Connectivity
|
No section were consolidated and integrated.
|
Consolidation and integration in records and with branches.
|
Database
|
No centralized database.
|
Centralized database.
|
Records
|
Records were lost and not accurate.
|
Records are save in an authorized area under top management.
|
Ratio of Employees
|
Ratio of employees were high due to sections.
|
One department is working so the ratio of employees decreases.
|
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2 comments:
Payroll management system is considered an essential part for any company. Maintaining payroll records and processing them accordingly is the key to maintain a healthy relationship with the employees by guaranteeing them proper payments.
Payroll Services
nice Blog Thanks for information...Teamwise is the name given to the HR and Payroll Management system which has simplified all the diverse tasks of the HR and Payroll department. payroll management system software
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