Transcription
2020 JETIR August 2020, Volume 7, Issue 8www.jetir.org (ISSN-2349-5162)A STUDY ON PAYROLL-MANAGEMENTMs. T. Pavani, Master of Business Administration,Mrs. S. Dhanusha, Assistant Professor, Department of Master of Business Administration,DRK Institute of Science and Technology, Bowrampet, Hyderabad, Telangana 500043.1. INTRODUCTION:Payroll management system encompassesall the tasks involved in paying anorganization’s employees. It typicallyinvolves keeping track of hours workedand ensuring that employees receive theappropriate amount of pay. It also includescalculating taxes and social security, aswell as ensuring that they are properlywithheld and processed. Depending on thecompany in question, a full range of otherdeductions may be calculated, withheld,and processed as part of payrolladministration.Additionally,theprocessing of contractor payments may fallundertheumbrellaofpayrolladministration.The specific tasks involved in payrolladministration tend to vary according to theneeds of each unique company ororganization.Forexample,somecompanies have workers that receivecommissions in addition to salaries. Inthese companies, including commissions inemployee salaries is a part of payrolladministration. For some companies, it alsoinvolves assigning exempt or non-exemptstatus to workers, adding bonuses intopaychecks, calculating overtime payments,and adhering to applicable employmentlaws.Handling payroll-related problems are partof payroll administration as well. If anemployee is paid an incorrect amount or adirect deposit fails to go through, bothJETIRED06003things are payroll administration issues.Likewise, tax filing and deduction errorsare payroll administration matters as well.Payroll administration can be very simple,involving the payment of just a handful ofemployees, or very complicated, involvingpayroll for thousands of employees andcontractors. In some, very smallcompanies, payroll may be handled by theowner of the company or an employee.However, other companies may have manyemployees to pay and keep track ofnecessitating a well-planned, efficientpayroll administration system.Some companies choose to handle payrolladministration in-house, often creating aseparate department just for the handling ofpayroll. Often, such organizations purchasesoftware tostreamline payroll-related tasks.Some companies even have specialsoftware designed for them, creating apayroll system that is tailored to theirunique requirements.Many companies decide to outsourcepayroll administration to other companies.Payroll administration companies handlemost, if not all, payroll-related tasks for thecompanies they serve. Some payrolladministration companies also providemanagementandhumanresourceassistance as well. Many payrolladministration companies tailor theirservices to meet the needs of organizationsof all sizes and types. Some even offer onsite help and payroll consultations as well.Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org10
2020 JETIR August 2020, Volume 7, Issue 8Payroll is defined as a method ofadministrating employees’ salaries in theorganizations. The process consists ofcalculation of salaries and tax deductions oftheemployees,administratingtheretirement benefits and disbursements ofsalaries to employees. It can also be calledas an accounts activity which undertakesthe salary administration of employees in t he o r g a n i z a t i o n . Administrating theemployees’ salaries is not an easy task, theHR and accounts department work togetherto calculate and disburse the salary to theemployees. Thus, payroll management canbe further subdivided into two subprocesses, i.e. Payroll accounting andpayroll administration. Payroll refers to theadministration of employees' salaries,wages, bonuses, net pay, and deductions. Itconsists of the employee ID, employeename, date of joining, daily attendancerecord, basic salary, allowances, overtimepay, bonus, commissions, incentives, payfor holidays, vacations and sickness, valueof meals and lodging etc. There are somedeductions such as PF, taxes, loaninstallments or advancestaken byemployee.www.jetir.org (ISSN-2349-5162)know whether the existing software system used iseffective or not.3. To measure the satisfaction level of the employeesusing the software.4. To obtain the feedback from the employees whichenable further improvement in existing softwaresystem.Need for the study: -Payrollincorporates components of both humanresources and finance. From datagathering to compiling, the payrollprocess includes calculations andreporting as well as integrating the databack into the organizationthe followingare the needs to do the research at“Lexiko Infra Systems”.1.To understand theinterface level between Accountand HR. Department in anOrganization in the pay rollmanagement system in LexikoInfra Systems.2.The management was in the position toJETIRED06003Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org11
2020 JETIR August 2020, Volume 7, Issue 8OBJECTIVE OF THE STUDY: The project aims at the study of the PayRoll Management System and iteffectiveness in the organization. ement of an organization as itcredibility, accountability and properfunctioning influence the working ofEmployee as well as the productivityof an organization. There has beentremendous growth in the numberand size of multinational companiestoday,leadingtosignificantchallenges in the areas of humanresources and payroll systemThus, the broad objective of the study is: -a) Identify the HR role in Payroll systemand thereby to analyze the interfacelevel between account and H.R.department in the organization.b) Effectiveness of the software used in payrollsystem in an organization.c) To establish the internal control for thepay roll cycle by the H.R. departmentwhich ensure an adequate segregationof duties, proper authorization oftransaction, an accurate and timelyrecording of expenditure.d) To critically analyze the satisfactorylevel of employees using this softwarein organization.To analysis whether these software’s are userfriendly and to analyze the accuracy andaccountability of the pay roll management systemin Lexiko Infra Systems.2. LITERATURE SURVEYImproved HR is another great advantage ofoutsourcing business processes. Several marketJETIRED06003www.jetir.org (ISSN-2349-5162)studies have shown that HR outsourcing can leadto cost savings in the range of 20-40 percent forcustomers. It also leads to improved HR. HRBusiness Process Outsourcing (HR BPO) is amarket that has experienced extensive growth overthe past few years and is now set for even morerapid expansion. This is based on the fact thatgradually more companies are looking atoutsourcing transactions and processes to create amore strategically focused HR function. Clearly,companies all over the world are getting motivatedto outsource their HR processes and transactions torun their HR functions more efficiently, free theHR function to focus on strategic people practicesthat drive growth and add to the organization'slong-term success and facilitate their professionalsto add value to their business. Companies today,require complete domestic and global HR deliverythrough systems and processes that can generateeconomies of scale to reduce or eliminate theirneed to make future investments in quicklyoutdated technology. Companies can save between20-40 percent of their HR costs, depending on theirbusiness priorities and the pace at which they wantto move.Indian BPO SegmentsBusiness Process Outsourcing in India is organizedin many segments. Back-office processing andcustomer interaction services are among the fastestand largest growing segments that contributesignificantly to the Indian BPO market. The mainactivities or areas covered by the BPOs includecustomer care, such as remote maintenance, helpdesk,and salessupport;financeandadministration, examples of which are dataanalysis, medical transcription, insurance claims,and inventory management; and HR and paymentservices including payroll, credit-card services,check processing, and employee leasing. Inaddition, the BPO industry has expanded intoengineering and design, animation, marketresearch, network consultancy and management,remote education, and content development (i.e.,digital content, LAN networks, and applicationmaintenance). BPO activities wherever knowledgeJournal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org12
2020 JETIR August 2020, Volume 7, Issue 8processing is required are all on the increase.Examples of KPO include intellectual propertyresearch, legal and medical research, R&D,analytical serviceslike equity research,information security services such as riskassessment and management, bioinformatics (forexample, genome sequencing, protein modelling,andtoxicology studies), and procurement and globaltrade. Broadly speaking the Indian BPO industrycan be divided into six categories. 1. Captive Unitsset up by global companies that outsource theirback-office operations from India. 2. Indian ThirdParty Vendors that execute transactions andprocesses for international clients. 3. JointVentures between international BPO companiesand Indian partners. 4. Indian IT SoftwareCompanies that have added BPO to their serviceportfolio. 5. Global BPO Players who set up callcenters in India (for example, Convergys). 6.Global Consultancies (such as Accenture) whohave been advising their clients on outsourcing andare now leveraging this experience into providingactual BPO service (Economist Intelligence Unit,2002). The most prevalent form of BPOs operatingin India is that of either Captive Units or the Thirdparty Vendors. The BPO industry isheterogeneous, differentiated by horizontal processdomains such as HR, logistics, or finance, andvertical specializations such as medicaltranscription in the health sector and checkprocessing and imaging in banking. Othercategorizations also exist. A distinction can bemade between onshore and offshore BPO: OnshoreBPO refers to outsourcing to a domestic or nearbyvendor whereas offshore refers to the vendor froma different country. For example, for U.S. clients,Canada is considered an onshore location, andIndia is offshore. Another classification is discreteprocess BPO, comprehensive BPO, and a multidomain BPO [40].JETIRED06003www.jetir.org (ISSN-2349-5162)3. RESEARCH METHODOLOGYa) RESEARCH DESIGN: A research design isthe arrangement of conditions for collection andanalysis of data in a manner that aims to combinerelevance to the research purpose with economy inprocedure.The most significant decision is thechoice of research approach, because it determineshow the information will be obtained. The choiceof the research approach depends on the nature ofthe research that one wants to do.The research design adopted for this study isExploratory Research. Exploratory researchfocuses on collecting data using an unstructuredformal or informal procedure to capture data and tointerpret them. It is often used to classify theproblems or opportunities and it is not intended toprovide conclusive information from which aparticular course of action can be determined.b) SAMPLING TECHNIQUE:The next stepin research study after collecting data is thesampling process. When a decision is made to usethe sample, a number of factors must be taken intoconsideration.The target population in this study was the groundstaff of Lexiko Infra Systems belonging todifferent department.The sampling technique hadto be selected. There are two types of samplingtechniques: Probability sampling Non-probability samplingFor the purpose of our study among the probabilitysampling, the sampling used in this study wasstratified sampling.a)STRATIFIED SAMPLING:Ifthepopulation from which a sample is to be drawndoes not constitute a homogeneous group, thenstratified technique is applied so as to obtain areprehensive sample. In this technique, thepopulation is stratified into number of nonoverlapping sub populations or strata and sampleJournal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org13
2020 JETIR August 2020, Volume 7, Issue 8items are selected from each stratum. If the itemsselected from each stratum is based on simplerandom sampling, the entire procedure, firststratification and then simple random sampling isknown as stratified sampling. The stratifiedsampling results in a more reliable and detailedinformation. The researcher uses simple randomsampling for selection of items from each stratum.b)SAMPLE SIZE: The population covered forthe present study consisted of employee belongingto supervisory and the level above. For the purposeof this study, survey covered the employee ofLEXIKO INFRA SYSTEMS. falling undersupervisor and the level above. The study covereda sample of 50 employees.c) DATA COLLECTION APPROACH: Thereare several ways of colleting the appropriate data.While deciding about the method of data collectionto be used for the study, the researcher should keepin mind, that there are 2 types of data.1. Primary data2. Secondary dataPrimary data are those which are collected a freshand for the first time and thus happen to be originalin character. Primary data can be collected eitherthrough experiment or through survey.4. DATA ANALYSIS & INTERPRETATIONa)Satisfaction and dissatisfaction leveltowards, whether the software user friendly or not.INTREPRETATION:- From the above bar graph itcan be seen that among 50 employees, 84% ofemployees are satisfied with the software systemused in organization 16% of employees are notsatisfied software system whereas we need to givemore focus on dissatisfied employees.www.jetir.org (ISSN-2349-5162)Secondary data are those which are collected fromthe published article, books, journaletc. Primarydata can be collected either through experiment orthrough survey.The secondary data on the other hand arethose which have already been collectedby someone else and which have alreadybeen passed through the statisticalprocess. In this study, the data wascollected from the primary sourcethrough interview schedule.d) STATISTICAL TECHNIQUE:This phase consists of the data analysisof the data collected based on thestratified simple random probabilisticsampling technique. The data collectedwere analyzed using the percentageanalysis which involve the number ofresponses of each category issummarized to percentage format andbar chart used to critically analyze thedata and further data interpretation wasdone.the employee are satisfied by the softwaremeasurement of the complaint regarding loading ofpay sheet in software system whereas we need tofocus more on 10% yet not responded and find outthe reason for the same.c)Reason for satisfaction/dissatisfaction leveltowards towards the usage of new software for payroll process.b)Satisfaction and dissatisfaction level towardthe measurement of the complaint regardingloading of pay sheet in software system.INTERPRETATION:- From the above bar graph itcan be concluded that among 50 employees, 76% ofthe employees are satisfied with towards the usageof new software for pay roll process and calculationwhereas we need to give more focus on 24%employees dissatisfied.INTERPRETATION:- From the above bar graphwe can conclude that among 50 employees 90% ofd)Reason for satisfaction/dissatisfaction leveltowards the measurement of complaint rectification.JETIRED06003Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org14
2020 JETIR August 2020, Volume 7, Issue 8www.jetir.org (ISSN-2349-5162)INTERPRETATION:- From the above bar graph itcan be seen that among 50 employees, 40% of theemployees are satisfied the measurement ofcomplaint rectification by the software versionwhereas we need to focus more on the 10 %dissatisfied and find out reason for 50% yet notresponded.INTERPRETATION: - From the above bar graph itcan be concluded that among 50 employees 92% ofthe employees are satisfied by the confidentiality ofmaintaining the employee’s personal details by theconcerned department whereas we need to givemore focus on 8% dissatisfied employees.5. FINDINGS OF THE STUDYe)Reason for satisfaction/dissatisfaction leveltowards the team coordination with softwaretechnology team.INTERPRETATION:- From the above bar graph itcan be concluded that among 50 employees,96% of the employees are satisfied towards theteam coordination with software technology teamwhereas we need to focus more on 4% dissatisfied.f)Is the organization maintains the record asper government norms.INTERPRETATION:- From the above bar graph itcan be seen that among 50 employees, 100% of theemployees are satisfied by the maintenance of allreports by the organization according to thegovernment norms and no case is reported againstthe organization till date of violation of governmentrule and policy from the yee’s personal details in an organization bythe concerned department.SUGGESTIONS: - Followingsuggestion on the basis of findingsarethea) In order to improve the Software skills ofemployees the organization should create moreawareness and to provide feedback regularly tothe employees about software system.b) Proper training should be given to theemployees, in order to increase theirknowledge about the usefulness of the softwaresystem.JETIRED06003a) 80% of the Employees are satisfied by thesoftware and we need to more focus on the16%dissatisfied.b) Among 50 employees 90 % of the employeesare satisfied with the software system helps forfuture growth that they had improvedthemselves after the program. 10 % of theemployees are not satisfied with softwaresystem helps for future growth.c) 76 % of the Employees are satisfied with thecalculation and we need to more focuson 24%of employees dissatisfied.d) 40% of the Employees are satisfied with thecomplaint rectification process and we need tofocus on the 5% dissatisfied, whereas 50% didnot responded.e) 96% of the Employees are satisfied with themeasurement of team coordination withsoftware technology team and we need to focuson 4% Employees dissatisfied.e) 94% of the Employees are satisfied with theadequacy of the access to the payroll andpersonal recordc) Top management shall continually review thesoftware according to the employees’requirements, which shall be seen as positivesupport to the system by the employees.d) After software testing, if there are any changes,the employees should be informed by thesoftware technology team.e) Delivery of payment to the employee should bewell on time by the department.f) Technological assessment of pay roll softwaresystem should be done quarterly by an expertin an organizationJournal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org15
2020 JETIR August 2020, Volume 7, Issue 8g) Employee’s complaint should be registeredproperly and immediate action should be takenby the concerned authority.h) The interface between the Human resourcedepartment and pay roll system should bewiden and more regulatory control should begiven to H.R. department to ensure that theorganization is concerned toward the welfareof the Employees and thereby productivity ofan organization also enhanced.i) Confidentiality in an organization regardingEmployees personal detail and other relatedinformation which is recorded in pay rollsystem software should be maintained andH.R. should take the responsibility for thesame.j) Term and condition in the pay roll systemshould be amended regularly as per the laborlaw by the H.R. the organization.6. CONCLUSION The study had confirmed that thecompany is having a good interface levelbetween account and H.R. department in theorganizationFrom this study, it is found that majority of theworkers were satisfied with Software Used inJETIRED06003www.jetir.org (ISSN-2349-5162) an organization.To make the software system more efficientand excellent, the company should giveImportance to the employee’s suggestionrelated to improvement of software used in payroll system and thereby makes their softwaremore effective and adequate.To create awareness among employees and itshall consider some of the ways and meansSuggested by the employees like addition ofparameters such as short cut for calculation PF,ESI, TAX etc.Dependability and conducting regular trainingprogram on the software usage for theemployees in an organizationH.R. department should be given moreregulatory power to analyze the properFunctioning of the pay roll system and therebywiden up the interaction between finance andH.R. department.I hope that the suggestion given in the reportmay be implemented in future course for thebenefit of the employees and the company.The Company should conduct the similar typeof research at regular interval to know thechanging software’s and to know about thelatest technology like Baan softwareJournal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org16
Payroll administration companies handle most, if not all, payroll-related tasks for the companies they serve. Some payroll administration companies also provide management and human resource assistance as well. Many payroll administration companies tailor their services to meet the needs of organizations of all sizes and types.
