2/16/2013
CMIS320
Short Paper
Short Paper
Introduction
Payroll can be made more efficient by introducing a relational database to keep track of employees and their rates as well as hours. A relational database solution will create a single database which will allow payroll to obtain the information necessary to operate quickly and efficiently. This more efficient solution will also help payroll avoid making errors. It will also make it possible to quickly obtain a visualized report on payroll data. This data visualization can be smoothly integrated with an analysis to aid in work force decision making.
Business Problem
As this business grows, the number of employees has also continued to grow. The current payroll system was perfectly feasible when the business was first launched, however, now way too much time and money is being spent on inefficient record keeping as well as data on past employees. It is clear that this entire business process must be streamlined and simplified to adapt to a larger business with a changing work force.
In addition to more employees, there is also a concern of consolidating payroll information between branches. We now have two offices overseas. This creates a difficulty with consolidating information with the difference in currency as well as making sure there is complete compliance with applicable local laws as well as various state laws for branches within the United States.
Relational Data Solution
Using a relational database design, a database will be designed and built which will house data on all the employees, their rates and their hours, as well as the locations of each branch and their applicable tax rates. This will provide a system which can be queried at any time to provide detailed accurate reports on how much resources are being spent on manpower.
Benefits
Some of the benefits of this relational database solution include:
Streamlined Flow of Information
A relational database system will provide a swift flow from the time hours are clocked to when payroll is completed. Records will be kept up to date quickly and easily.
Data Visualization
This system will also grant us the ability to generate tailored reports based on payroll. This will allow us to get right to the information which is needed for decision making and ultimately we will avoid the entire process of “rooting through records”.
Error Avoidance
With information arranged in the relational database, inconsistencies will be much easier to spot and correct. Also, with data entry integrated with employee hour tracking, the opportunity for human error is greatly reduced.
Increased Payroll Security
It is much easier to defend a single system than a fragmented system. A consolidated IT solution for payroll will provide a much more secure environment for sensitive data.
Risk Analysis
There is some risk involved with any system development. The biggest proponents of risk are scope creep and poor project management. However those two factors can be mitigated. First, in order to battle scope creep, a complete analysis of how the system needs to function will be performed. This will cut back on surprise additions to development. Also project management can be monitored with weekly progress meetings to make sure development remains on track.
Case Study
For Kelly Services, a temporary help company, payroll was not just a financial drain. They have described their pre-IT payroll process as a “…great deal of pain and suffering by valued employees…” (Drexel, 1992). One of the problems they encountered was a great lag in reporting. Kelly Services dealt with a lot of insurance companies and claims tend to increase over time (Drexel, 1992). This made the concept of real-time reporting vital to maintaining a smooth business process.
So with these problems at hand, Kelly Services designed a system which handled payroll as well as well as other financial factors within their company. Time in reporting was also accompanied by an overall friendlier report. The scope of each report was narrowed to needed information such as specific insurance information as well as the ability to perform ad hoc reports.
Conclusion
A relational database solution is an absolute must for a consolidated enterprise wide payroll solution. The risk involved is minimal, and the system development can be kept on track with a complete plan and risk analysis beforehand. This will ultimately save a great deal of resources which can otherwise be spent on helping this business grow even more.

References
Drexel, S. R. (1992). Managing workers' compensation costs at Kelly services. Management Accounting, 74(5), 42-42. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/222420930?accountid=14580