Question

In: Accounting

a) In Chapter 9 (Week 9 Tutorial) we discussed the integration of the Human Resource Management...

  1. a) In Chapter 9 (Week 9 Tutorial) we discussed the integration of the Human Resource Management and Payroll databases. In particular, we discussed different benefits of this integration in the Week 9 Tutorials.

    Some companies believe in the integration of HRM and Payroll systems. However, many firms do not agree with this integration. These companies maintain separate HRM information systems and Payroll.

    Required:

    Discuss both arguments. For this discussion, think in terms of (1) difference in employee background, and (2) functions performed by the HRM and payroll departments. [7 marks]

    [7 marks. Word limit: Up to 250 words.]

  2. b) Mr Peter is the treasurer of a small charity and you asked him to explain the business activities and data processing operations involved in the payroll cycle of the charity. During this discussion, Peter explained that the charity is not using a separate cheque account to manage their Payroll due to the extra monthly services fee. Peter further explained that the benefits of a separate cheque account are not worth the additional fee.

    Required:

    As a student of accounting information systems, how would you respond to Peter? [4 marks] please write up to 150. no plagiarism please. thanks you very much sir.

Solutions

Expert Solution

Answer:

a) Payroll system is the list of all employees in which designation of each employee with their pay is written. On the other hand, Human Resource Management is the system or a process which ensures the effective working of all human resources in the organization. Integration of both of these systems results in bringing the efficiency and achieving the results.

.

b) Human Resource Management System and Payroll System is a recurring set of business activities which involves various functions related to direct operations of the business. It includes operations right from the selection of the employee to the payment for his/her efforts towards the organization. The purpose is to effectively manage the workforce of the company or organization.

.

Step-by-step explanation

a)

Agree with integration of Human Resource Management and Payroll Systems

In the present era, various companies aims to integrate the Human Resource Management System with the Payroll System in order to reduce down the time for entries and other related things. Also, integration of these system results in doing the work effectively. Following are some of the reasons that makes us believe that why integration of these two systems is fruitful.

  1. Integration of system eliminates double entry.
  2. Integration of system eliminates communication gap.
  3. Opens door for fast and better reporting.
  4. Improves co-ordination within the teams and team members.
  5. Empowers the workforce of an organization.
  6. Minimizes the compliance risks.

.

Do not agree with integration of Human Resource Management and Payroll Systems

Some companies believes that separate working of different departments helps in running the business smoothly. Companies believe that people have efficiencies in their respective field and merging them with another field may produce ineffective results. Therefore, it is necessary to keep the work of two different field or departments separately i.e., Human Resource Management and Payroll System.

Following are some of the reasons that makes us believe that why integration of these two systems is not fruitful.

  1. Difference in the background of employee's knowledge and skills.
  2. Integration may lead to high cost in running the department together.
  3. Lack of synergy between the people of each department.
  4. Difference in priorities of each division, department and people.
  5. Working together sometimes results in increasing the misunderstandings within the people because different people have different opinions for the same work.
  6. Lack of control over the system.

.

.

b) There are multiple number of business activities and data processing operations that are involved in the payroll cycle which are as follows:

  • Recruiting
  • Hiring
  • Training
  • Evaluating
  • Compensating
  • Assigning tasks and other responsibilities

.

Particularly data processing operations in the payroll cycle includes the following:

  • Attendance of each employee.
  • Entry and details of each employee regarding his/her paid and unpaid leaves.
  • Tracking the production given by each employee.
  • Calculation of withholding taxes and deductions.
  • Payment of premiums to insurance vendors.
  • Compensation claims of employees.
  • Printing and delivering checks.
  • Payment of employment taxes to government.

.

.

______________

Really hope this helps! Thankyou!

______________


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