Question

Question 5 [Note this question is from the Week 9 Tutorial] 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.] 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] [4 marks. Word limit: Up to 150 words.]

Answer 1

5)

a) It is true that some companies agree for the integration of Human Resource Management and Payroll systems and some firms do not agree with the integration of the same.

The discussion will be as follows:

(1) difference in employee background

Integration of Human Resource Management and Payroll systems would not make any difference in employee background since the works performed by both HRM and Payroll will continue as they were peforming before. Employee background will be verified same as before by HRM which will do the background verification checks by the team of recruiters.

(2) functions performed by the HRM and payroll departments

Integration of HRM and Payroll systems will lessen the work burden to be made by employees. But few checks should be made for processing of the employee salaries in the payroll department which is not possible without human intervention. If the intergration of HRM and Pyayroll is made, then there may be higher chances of mis use of the job done by the employees or there may be higher chances of mistakes. Functions performed by the HRM will be over checked by the payroll department. So if the both systems are integrated then it will be resulted into issues. Based on the expert's opinion integration of HRM and Payroll systems can be made.

b) Non-use of seperate cheque account by Mr Peter of payroll department:

I completely disagree with the response given by Mr Peter for not using seperate cheque account for processing the payroll cycle. His response that managing a seperate cheque account to manage their Payroll results in extra monthly services fee is not valid. As a student of accounting I won't accept the response of Mr Peter. It would be difficult to verify the transactions on non credit of salary to any person in a month if seperate cheque account is not maintained. Even though it incurs extra monthly fee to maintain a seperate cheque account, it is better to maintain the same since there will be huge number of day to day transactions occuring in a company. In such a case it is very difficult to trace if any payment is not credited to any vendor or employee. So it is advised to Mr Peter even though it incurrs extra monthly service fees, to maintain a seperate cheque account for smooth handling of transactions in the company.