Benefits of Integrating Human Resources Management (Hrm) and the Payroll Databases

Benefits of Integrating Human Resources Management (HRM) and the Payroll Databases. The Human Resources Management and Payroll are completely different business processes; however, they depend on each other for accurate and timely flow of information for their business operations. Integrating these two process will ensure that the information flow between them is timely and less erroneous. The benefits of such integration includes but not limited to: (a) No duplicate data entry: Integrating HRM and Payroll processes means maintaining a common database.

Therefore, any changes made to any aspect of the database are entered only once. There will be no need to make a duplicate entry of the changes. This eliminates errors that may occur due to multiple entries. (b) Less paper work: Having a common database reduces unnecessary paperwork and greatly reduces input errors. © Integrated Reporting: Integrating the HRM and Payroll makes room for automatic update of employees’ records. With integrated reporting tools, consolidated reporting can easily be generated and containing an up to date employee information, benefits, data, and compensation data. . The current problems related to labor at Fargo Publishing (a) Fargo Publishing still uses the traditional punch clocks to track employees’ time in and out of work. With this system, the company looses lots of money when employees arrive late to work, leave early from work, and then resort to “buddy clocking” that is clocking for other people. Employees are paid for hours not worked, and productivity is greatly affected. (b) Employees time data are manually inputted into the payroll computer by checking the time cards.

The problem with this process is that there is high risk of input errors obtainable when manually inputting the data for 250 hourly workers. Manually inputting these data is time consuming and delays update to necessary master files. © Too Many paper work: There is too many paper work involved in the flow of information among the different departments. Since the different processes at the Fargo publishing are not automated, a lot of paper work is involved in the flow of information from one department to the other.

This process is not cost effective, and it is also time consuming. There could also be loss of data during transfer process. (d) Employees’ time cards are checked by HR on a weekly basis at the end of the week. This means that employee database is updated on a weekly basis as related to time in and out. Therefore, no report can be generated based on this information until the end of the week. The issue with this system occurs when there is any threat that will destroy the time cards before the end of the week, all data is lost because the master database is not updated. 3) Recommendations to improve the problems related to labor. a. The use of Biometric Time System: The biometric scan is an automated system that verifies employees’ identity based on their fingerprint. It provides a more reliable and accurate data on employees’ identity and time. It eliminates the problem of buddy clocking and ensures that employees are paid for time worked. b. Integration and Synchronization of Databases: The use of Biometric Time Systems would require the integration and synchronization of all the databases in the HRM and Payroll departments.

This will ensure immediate and accurate update to the common database, and easy back up following any changes. This system will also reduce the volume of paper work involved in processing the flow of information. c. The use of Input Edit and Processing Controls: At this point, I would recommend the use of Input Edit and Processing Controls to reduce and detect erroneous entry into the database. Example of controls include: Validity check and field (format) check. (4. ) How Management can measure the cost savings of these recommendations. A.

The use of Biometric Time System: The cost savings can be measured by the volume of books printed per day as a result of employees having to report to work on time and leave at a scheduled time to personally clock in and out. The longer time employees spend at work, the more likely productivity will improve when properly supervised. B. Integration and Synchronization of databases: The cost savings can be measured by the amount spent on paper supplies at the end of every month. This is compare to when the system was not integrated or synchronized.

It can also be measured by the ease of dataflow among departments, which is how long it takes for department to access information processed in another department. C. Input Edit and Processing Controls: The cost saving can be measured by the number of reports that have to be reproduced because of erroneous entries. It can also be measured by reduction in the overtime paid reflecting the extra hours put in to correct what was previously completed due to error. References Chestnut, R. (n. d). Traditional Punch Clocks Vs Biometric Time Systems.

Retrieved November 16, 2010 from, http://www. ezinearticles. com/? Traditional-Punch-Clocks-Vs-Biometric-Time-Systems Romney, M. B. & Steinbart P. J. (2009). The Human Resources Management and Payroll Cycle. In Strayer University 2010 Custom Edition, Accounting Information Systems (pp. 497-517). Upper Saddle River, New Jersey: Prentice Hall. Sinh, M. (2010). Integrating HR and Payroll – Key Considerations and Benefits for Companies. Retrieved November 16, 2010 from, http://www. articlesbase. com/software-articles