Question

Explain the implication and provide a recommendation.

To prepare this analysis, use the following table structure: Weakness Implication Recommendation

Payroll cycle:

Branch managers approve time sheets at midday on Friday.

Answer 1

Weakness:The branch managers approve the time-sheets of workers , only at mid-day on Fridays

Implication:Since there is the custom of paying wages to employees on Fridays,

getting the approval of time -sheets of employees after mid-day on Fridays,

causes delays in calculation of wages (along with deductions & withholdings)and

consequently payments to employees are getting delayed

may result in employee dis-satisfaction , if this continues on a permanent basis

Recommedation:

Branch managers can approve the time sheets before the end-of forenoon ,on Fridays--doing this job as the first thing ,on Friday mornings.

Study how much time it takes to verify the time-sheets, before approval & start before-hand accordingly.

There should be enough time for the accounts people to prepare the subsequent wage calculation sheets ,

for information to banks

for disposal staff to give away checks or disbursement memos