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Process Proposal Essay

The process that is being analyzed is the payroll process at a firm. The process can be viewed as a series of steps done on a daily basis and then at month end when salaries are to be distributed. Their process flow along with diagrams is given below.

Daily:

The work of the system starts as soon as an employee enters and checks in for the days work. Every employee owns a magnetic swipe card which is given to him/her upon employment at dollar. The swipe card machine notes and stores the time of entry and exit for every employee along with other necessary information such as employee number, name etc. at the day end, this data is imported to the current system database (running on FoxPro) using a third party software. Issues such as total time worked per day (depending on employee type), overtime, absences and leaves are resolved then and there. Every employee, in case of over time put in, is handed a sheet at the day end called the ‘Overtime Sheet’. Records of it are maintained by respective supervisors as well as the current system.

Monthly:

At month end, the data that has been accumulated over the whole period along with the overtime sheets that every employee submits is used to calculate total salaries of the employees and then paid to them in the form of payslips. All deductions and additions regarding overtimes, absences, leaves etc. are resolved and then sent to the supervisors for verification.

Upon verification, deductions regarding gratuities and additions such as benefits, allowances etc. are verified from the HR system records and then forwarded to the account system for tax deductions. The final process is then to transfer funds to each employee’s personal account and distribute payslips to each one of them. The transfer is carried out by the accounts department in co-ordination with the HR system and the payslips are distributed via supervisors.

A diagram that illustrates this process is given below:

As it can be seen, the process has various repetitive steps that can easily be eliminated if a computerized system is used. Especially the processes at month end, these can be shortened a lot if redesigned and enabled with IT.

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