Integrated Payroll System For H.O Corporation Utilizing Local Area Network Based Technology

Integrated payroll system for H.
O corporation utilizing local area network based technology

CHAPTER I
INTRODUCTION

Technology plays vital role in innovation. Over the years we have seen
technology to evolve like a child burgeons into adulthood. Without technology,
life would be more difficult than it already is. We are now living in a world which is
technologically civilized, where almost all human activities involve the use of
technology and every person wants to be recognized with a device or gadget
which is technically advanced.

Nowadays, computer serves an important part when it comes to basic day
to day processes conducted in our community. It allows a user to accomplish
tasks or things and it also enables the user to create a more accurate and
reliable output.

Information system has two categories which is manually or Computer
Based Information System (CBIS). Before CBIS, data were done manually. This
manual process is called non-computerized system. Meaning all the information
were written and stored in cabinet files. Non-computerized is not efficient
because searching for a certain information is time consuming and it is

Integrated payroll system for H.O corporation utilizing local area network based technology

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confusing. To eliminate this problem, a system is created known as
Computerized System or CBIS. Computer Based Information System (CBIS) is
efficient because users will just have to input data which the CBIS will process
and kept in storage such as a database.

Manual system is a system that involves data processing which does not
make use of database system or stored program computing equipment. As of
now, The H.O Abalos Builders Inc. uses a traditional manual system. The head
of the human resource department said the Corporation still uses first generation
manual system in recording data and salary computation with the use of tools
such as pens, pencils and papers to record important documents to be stored in
a filing cabinet.

The proposed system will be using Barcode based technology Barcode
technology works of off a principle called symbology. Symbology at its basic form
is what defines the barcode; it determines the mapping and interpretation of the
encoded information or data. This encoding allows the scanning device to know
when a digit or character starts and when it stops, similar to a binary
representation. We recognize barcodes as an array of parallel lines alternating
between white and black lines. Barcode technology provides a simple and
inexpensive method of recording data or information in a number of applications.


3

Barcode is an optical machine readable representation of data relating to
the object to which it is attached. Originally barcodes systematically represented
data by varying the widths and spacings of parallel lines, it may be referred to as
a linear or one-dimensional (1D)

By using Barcode technology the management will benefit from the
following:
1. Time Savers Think back to the ways of doing inventory. The task
involved a lot of manpower and number-crunching, not to mention the fact
that it was tedious with a nice margin for making mistakes. Enter the
barcode and barcode scanners. Now with the fraction of manpower and
the scan of a barcode, inventory is a breeze. Instead of having to
physically log everything in by hand, the barcode contains all the
information. All that is needed is a simple scan of a barcode and that
information is translated into a computer.
2. Increased Efficiency Human beings are not infallible, so therefore,
mistakes can be made when recording information and tracking other
items like inventory and expenses.


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3. Smoother Internal Operations There are always a system of checks and
balances for every business to ensure that rules is followed both
internally and externally with various governing bodies. For instance, a
Business must account for every asset to the IRS. Companies can spend
hundreds of man hours every year or use bar codes on their assets to
keep track of them. In addition, when internal operations run more
smoothly, then their way of conducting business with customers runs
smoothly too.
4. Barcode promotes better decision making Because data is obtained
rapidly and accurately, it is possible to make more informed decision.
Better decision ultimately saves both time and money.

Local area connection (LAN) concept is a computer network that
interconnects computers in a limited area such as home, school, one site to
another, computer laboratory and office building using network media.

The proposed system was conducted to change the existing manual
procedures to computerized system to make more accurate results and perform
repetitive tasks quickly, efficiently and without complaints, ease of access and


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storing files in a database where it is more secure. The computerized system will
increase the productivity and reduce the human errors, thus improve their
performance and lessen the time consumed.

Background of the Study

H.O. ABALOS BUILDERS INC. , formerly known as Jolar Engineering &
Industrial Sales was established July 1996 by its founder and owner, Engr.
Hilario O. Abalos, however, only became operational a year after its registration
as trading company. Due to the on-going demand on technical and clientele
services, the owner has diversified its services from trading company to specialty
contractor of Electro Mechanical works, structural and architectural steel
fabrication and eventually to construct and maintenance of industrial, commercial
building and warehouses.

The expansion of the company was introduced in the early part of the year
2000 with the principal forming and additionally group to sustain the on-going
demand on technical services. A new group that will practically meet the needs of
the clients from pre- planning phase, design phase up to construction phase. A
new concept also that will basically become an advantage to the owner in terms
of coordination and decision making not yet to mention economical aspects.


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Projects undertaken were listed herein since the company formally started its
services and up to now, making its way although stiff competition continually
arises.
Now that H.O. ABALOS BUILDERS INC. has expanded its services, a
new goal has been set to serve bigger clients but still uses a manual procedure
such as keeping attendance of the employees in a logbook which collusion may
happen, storing files in a filing cabinet which is prone from tampering and
unorganized files and manual computation of each employees` salary where
miscalculation may happen.


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Mission and Vision

Vision

H.O. ABALOS BUILDERS INC shall be known as one of the principal
building construction contractor specializing in (MEPS) Mechanical, Electrical,
Plumbing, Sanitary, and Fire Protection and General Engineering services in the
Philippines
Mission

We shall deliver quality workmanship and service to our clients to meet
their technical requirement. We shall train and motivate personnel to achieve the
highest standards of ethics and excellence. For our suppliers, we shall ensure
mutual cooperation and commitment to achieve an environment of trust and
confidence. We shall ensure good return of investment to our partner.
We shall be good steward of God.


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Organizational Chart

Figure 1.1

H.O Abalos Builders Inc.

Hilario O. Abalos
Pres. & General Manager, PME
Human Resources Administrative Finance
Architecture
M.A Noime Padayao
Admin Manager

Jocelyn Abalos
Finance Manager

Violante Lagadan
Proj. Manager, Arc

Arlyn R. Abalos
H.R. Manager

Joseph Constantino
Proj. in charge, Arch

Mary Jane Tabios
H.R. Associate
Consultant

Engineering

Ricardo Malabanan
Structural Civil
Consultant

Myra Pangan
Legal Consultant

Hilario Reblera Jr.
Project Coordinator,
ME

Edmark Braga
ECE


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Figure 1.2
Finance Department of H.O Abalos Builders Inc.

Figure 1.3
Human Resource Department of H.O Abalos Builders Inc.

Finance

Jocelyn Abalos
Finance Manager

Human Resources
Arlyn R. Abalos
H.R. Manager

Mary Jane Tabios
H.R. Associate


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Figure 1.4
Administrative Department of H.O Abalos Builders Inc.

Figure 1.5
Architect Department of H.O Abalos Builders Inc.

Administrative
M.A Noime Padayao
Admin Manager

Architecture
Violante Lagadan
Project Manager, Arc

Joseph Constantino
Project in-charge, Arch


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Figure 1.6
Engineering Department of H.O Abalos Builders Inc.

Figure 1.7
Consultant Department of H.O Abalos Builders Inc.

Engineering

Hilario Reblera Jr.
ME

Edmark Braga
ECE

Consultant

Ricardo Malabanan
Structural Civil
Consultant

Myra Pangan
Legal Consultant


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Statement of the problem

The general purpose of the study is to design, develop, evaluate and
Implement the proposed system that will help the company in providing a more
reliable and accessible way of recording and monitoring employees information
in a secure and safe manner. The system will benefit the Human Resource
department particularly in these following problems:

1. The existing system uses a logbook to record and monitor the
employees attendance which is prone to data tampering.

2. The existing system uses a filing cabinet to store each employees
records and credentials (file 201). Thus, files are unorganized and can
be accessed by anybody.

3. The existing system computes the salary of each individual employee
manually which is very time consuming and may cause incorrect
computation of salary


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4. The existing system cannot produce accurate and timely reports such
as overtime, under time, cash advance and audit trail reports that may
be needed by the employee for monitoring their own records

5. The existing system used a manual method in transferring files from
one area to another. That may cause the loss of file rendering the data
inaccurate

Objective of the Study

The primary objective of this study is to create a system which the human
resource department integrates, utilize, enhance and organize all the transaction
for the companies benefits. The second objective is to make more accurate,
reliable and secure system that will store all information in a database

As such, the proponents would like to develop an automated system with
the following goals in mind:
.
1. The proposed system will use an identification card with a unique
barcode to monitor the employees attendance in which it would be the
reference for the computation of the employees` salary


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2. The proposed system creates a database where all the files of human
resource personnel and employees record are stored on a secure and
manageable environment

3. The proposed system will automatically compute the salary of an
employee. Through this method, the company will save more time
creating an accurate computation of an employees` salary

4. To generate reports which will automatically be filtered the necessary
and needed reports such as; overtime record, under-time record, cash
advance, and audit trail reports by letting the user choose what kind of
report that he/she needed to be print out.

5. To establish faster connections across the organization without hassle
of copying files to the flash disk and transferring it to another user
through the help of local area network connection. The system will
create a network throughout the company which will ensure faster and
safer transferring of information from one department to another.


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Scope and Limitations

The H.O Abalos Builders Inc. has expand widely and aim their goal, but
still uses manual procedure in activities such as keeping the attendance of the
employees` in a logbook, computing the salary of each employees manually
which uses a calculator and storing the files and records of the company in a
filing cabinet.

The proponents would like to change the existing system from manual to
automated procedure. It will enhance everything which will include a more
accessible and organize way of monitoring an employees record and allow ease
of access for all the employees with their data through the help of automated
report, lessen the consumed time needed for processing data and transactions.
This system will enable the records to be more accurate and would be stored in a
database for security purposes.

The proposed system has this following procedures, the registration where
the human resource personnel will register the records of the current employees
and will provide a registration form for the new applicants, they must fill up the
registration form questions such as last name, first name, middle name, age,


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birth-date, address and gender etc. the human resource personnel will then
register it to the system.
The system has two level of access which is the administrator and
manager. The administrator can access the whole system, can manipulate or
change data inside the database and monitors the employees record. The
manager will be the one responsible to communicate with the employees in to
enable them to monitor their respective records.
The system will also use a barcode system in monitoring log-in in and out
of an employee through the use of an I.D wherein a barcode is installed. The
barcode will consist of a unique employee number, name, position or
designation, address and contact person in case of emergency.
There will be a time management program to the system which records
the start time, end time, late, overtime in minutes, and under time which would be
the basis for an accurate salary computation for each employee.
The audit trail is the one that records everything from the time you log-in
and by the time you log-out. The employees can request a copy of their
respective attendance through the manager in case they have questions
regarding their salary.
The salary computation will be based from the time management system
module and will also include deductions such as wages and taxes or bonuses
such as incentives. There is a report where the system will display the daily,


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quarterly or yearly overall attendance of each specific user that would be
generated by the manager. The system will compose of a main system and a
backup to enable a secure and reliable data management process.
The proposed system is only limited to monitoring, updating, administering
an employees record only. The system will not include verifying an employees
credential, unregistered change in location of an employee, payment method for
employees and the correctness of the data encoded by the administrator.


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CHAPTER II
SYSTEM DESIGN

System Design is the process of defining the architecture, components
modules, interfaces, and data for a system to satisfy specified requirements.
System design could be seen as the application of the system theory to product
development. There is some overlap with the discipline of system analysis,
system architecture and system engineering.

The topic of product development blends the perspective of marketing,
design and manufacturing into single approach to product development, then
design is the act of taking the marketing information and creating the design of
the product to be manufactured. System design is therefore the process of
defining and developing systems to satisfy specified requirements of the user.
Until 1990s system design had a crucial and respected role in the data
processing industry. The 1990s standardization of hardware and software
resulted in the ability to build modular systems. The increasing importance of
software running on generic platforms has enhanced the discipline of software
engineering.


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Object-oriented analysis and design methods are becoming the most
widely use methods for computer system design. It is the widely used for
modeling software systems and is increasingly used for high designing non-
software systems and organizations.

There are two types of system design the logical and physical design:
logical design is about the presentation of flow of data, inputs and outputs of the
system, it uses some design tools which are flow chart, DFD, data dictionary,
IPO and HIPO. The users will interact with the system especially updating and
making inquiries about the data of the system. It specifies the methods of
interaction in terms in menu of menu structures and command structures. A
logical design is about Conceptual Blueprint of a software application,
illustrating entities, relationship, rules and process of the system.

The Physical design is about the stage where you must do the actual input
and output process of the system where all the logical specifications of the
system are converted to description of the system through real hardware. This
process is where you can see how data input inside of the system and how it
displayed as output.


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Description of the Existing System

The company was established on 1997 as trading company for industrial
items but eventually diversified its operation to fabrication of steel works and now
focusing on electro-mechanical works. Now, since the owner is a Professional
Mechanical Engineer, The Company offers it service for mechanical consultancy
works as follows. Design of HVAC system, elevators, overhead cranes and other
related mechanical works. Because of the present needs the company now
extent their service into plumbing, sanitary and fire protection works.

The existing system of H.O Abalos Builders Inc. is using manual
procedures in registration, attendance and salary computation for their
employees records. The human resource personnel place all the files in an
envelope and store it in a filing cabinet. For attendance, they are using a logbook
for monitoring the log-in and log out procedures. For the salary computation, the
existing system uses manual computation method through the use of tools such
as calculators, pens, etc. to compute for the salary of an employee.


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Narrative Description of the Existing System

The following are the procedures on how the existing system operates.

1. Registration

1.1 The new applicant must fill up the registration form which is provided by the
human resource personnel. The must fill up some personal question
information such as name, address, email address, contact number and birth-
date.

1.2 For the employee that is already registered to the system, their existing
records will be stored in a document that is hidden in a file cabinet.

2. Attendance

2.1 The employees are using a logbook for monitoring the attendance.

2.2 When the employee is present, their time in and time out entries are recorded
in the logbook.


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2.3 When the employee is absent, no record of attendance will be recorded in the
logbook. Absences will be deducted from their salary.

2.4 When the employee will have overtime there must be an overtime form from
the Human Resource Department that will be signed.

3. Salary computation

3.1 The employees name is written manually in their pay slips.

3.2 The human resource personnel compute all the salary of each individual
employee manually by using Microsoft Excel.

3.3 All appropriate deductions will be deducted in their monthly salary

4. Periodic reports

4.1 The employees request all the records can be viewed daily, quarterly, and
yearly depending on the time frame of each projects
4.2 The management will provide a photo copy of pay slip information manually
fill up form.


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4.3 All employees will assign to a log book and bandy clock for attendance and
monitoring.


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Procedural Flowchart of the Existing System

Select Option

Registration Registration

Monitoring Monitoring

Salary Salary
Computation Computation

Figure 1
Main menu of Existing System

Start

End


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A

Filing
Cabinet
Verify information

A
Create I.D
Identification card

Personal information

If information is
Valid?

Figure 2
Registration of the Existing System

Registration

A2


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Check attendance

Figure 3
Monitoring of attendance of the Existing System

Monitoring

A
Employee
name
Filling
cabinet

Verify record
Valid?
A
Filling
cabinet

Is the employee
absent?
Filling
cabinet

Record
Attendance
Is the employee
on leave?

Filling
cabinet

Record
Attendance

Is the employee
Present?

Filling
cabinet
Record
Attendance

No record
A2


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Figure 4
Salary Computation of the Existing System

Salary Computation

Pay slip
Print
Compute Salary
Verify record
Employee name
C
B
Salary * rate tax-
deduction
rate= 0, tax=0, deduction=0
Filling
cabinet
C
Valid?
A2
Log book Retrieve attendance
Filling
cabinet
Retrieve tax
Log book
Retrieve deduction
B
E


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If valid
D
E
Name of
employee
Filling
cabinet
Verify record
D
E
Select
option
Filling
Cabinet
Basic
information

Print
File
Check basic
information

Monitoring
File

Print

Check hours
worked Hours
worked

Print

File

Monitoring

Check deduction
Deduction

Print

Salary
computation Pay slip
File

A2

Figure 5
Reports of the Existing System

Reports


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Analysis of the Existing System

After the interviewed and knowing all the information and procedures that
has given to the proponents, it analyzes the entire problem occurring to the
existing system which is the registration, attendance and salary computation. The
process of storing files is not secured and unorganized, also the salary
computation method may cause error due to inaccurate data gathered through
manual methods.

The proponents came up to a conclusion that in order to solve the
problems mention above, the proponents would like to implement a new
automated system that will help the establishment to run more effectively,
efficiently and keep files in a more organized and secure place.

Introduction of the new technologies and software is required to increase
the efficiency and productivity, in that way human errors and inaccuracies will be
lessen by the used of automated computerized system itself.


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Description of the Proposed System

Through strict research and analysis of the current problems and possible
solutions, the proponents have concluded the recommendation of system
software with barcode technology. The system would scan each employee`s
unique identification cards that has a unique serial code installed which will serve
as their daily time entries and by which would be associated with the employee
respective record within the database, the proponents agreed that through this
process, the occurrence of errors and inaccurate data would be prevented
specially in monitoring their log-in and log-out process.

The proposed system will help the H.O Abalos Builders establishment to
be more effective and accurate in handling transactions. All the files will be
organized, secured and saved into the database. The log-in and log-out
procedure of the employees will be more accurate and would prevent errors in
the salary computation.

The recommended system shall automate the registration of the
establishment. A new applicant shall fill out an application form that was provided
by the human resource personnel and he will deem if the applicants is qualified
or not for the position offered. After that the human resource will rewrite all the


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initial records of the new applicants and convert the files from hard copy to soft
copy and if it is all done, a unique number and identification swiping device is
generated, the database will store and verify the unique number. When the
employee is going to log-in or log-out to the system he will have to use the
identification card and swipe it, after that the database will verify it again if its
valid or invalid.

If the employee wants to work overtime, he must take an overtime form
that must be signed by the human resource head department. The system has
two levels of access; the human resource manager and administrator; the
difference between them is that the human resource manager has limitations of
what he can access while the administrator can fully access the whole system.
The human resource will input the unique number of the employee into the
system and the salary will be automatically computed and generated, the stored
records on the database will be the basis for the computation of their respective
salary. Deductions are applied for their absences or late and taxes such as: SSS,
Philhealth, Pag-ibig contribution and etc. the system will also generate a pay slip
for each employees, by which they can view the record of their respective
attendance. The systems also have a help module which would serve as a
reference for the user to fully understand the functions of the proposed system.


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Narrative Description of the Proposed System

The following are the procedure for the execution of the proposed system

Registration and Verification

1. New applicants must fill up the entire questions in the registration form
such as name, age, contact number, birth date, address, nationality etc.
2. The human resource personnel will claim the registration form and rewrite
all the initial records of the new applicants and it will be stored in the
systems database.
3. After that, a unique number and identification swiping device is generated
for the employee and the database will store and verify the unique
number, the identification card will serve as employees` indication for daily
time entry.
Security

1. A unique username and password will be created for the systems
administrators. Password must be eight to twelve(8 to 12) characters long
and case sensitive.


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2. There will be two level of access the Administrator and Human resource
personnel; the Administrator can access the whole system while the
Human resource has a limitation on what he can access.

3. If the users password is invalid for three time there will be a forgot
password? that will be displayed, and clicking that button will ask for a
secret question and secret answer.

4. An audit trail report will be generated to monitor the valid users of the
system.
Attendance

1. When the employee is about to log-in or log-out he must swipe the
identification card and the database will verify it if its valid or invalid.

2. When the employee is present, their time entries are recorded to the
system and will be stored in the database.

3. If the employee is absent or late, absent will have no record, and if late it
will be deducted to the employees salary.


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4. When the employee exceeded the working hours, he will acquire an
overtime form that will be signed by the Human Resource Personnel.

Salary Computation

1. The human resource personnel will look all the records of each employee`s that
was stored in the database of the system, this records will be the basis of the
computation of their salary.

2. There are two types of deduction:
2.1.1. The first one is, if they are late, absent and taxes.
2.1.2. The other one is for their own benefits the SSS, Philhealth, and Pag-
ibig contribution.

3. The human resource personnel will indicate the unique number of each
employee and the system will verify the inquiry. The unique number is valid to an
employee the system will automatically computes the salary according to records
that was stored in the database.

3.1.1. The system can generate employees personal information.


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3.2. The system will compute the salary of each employee based on their
attendance.

4. All employees may claim their salary on a weekly basis.

Reports

1. Every week the system will generate a pay slips on each employees.

2. In the pay slip, employees computed salary will be indicated as well as other
deductions and other income.

3. The system can also generate other necessary reports such as government
contributions, loans and basic information.
Help

1. The user can inquire information regarding the following:

1.1 System tutorial
1.2 System information


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A
Personal
information

Verify information
A
Information
valid?
A1
Save
Generate employee no.
Procedural Flowchart of the Proposed System

Figure 1
Registration of the Proposed System

Registration

Database
Employee
record/I.D
Database


37

Input User / Pass
Verify information
Verifying
Account
A1

Figure 2
Log-in module

Log In

Database
Main Menu
No Existing
Account


38

Input secret answer
A1
Verifying answer
Correct
Answer?
Input another
answer?
Incorrect Answer
A1

Figure 3
Forgot Password module

Forgot Password

A
Database
A
Display username
and password


39

Database
Verifying user/ pass
Input User/
pass
Input
another
acoount?
Valid?
NO existing
account
Account verify
A1
Generating ID code
Database
Barcode has been
created for this
account
A1

Figure 4
I.D Generator module

A
I.D Generator

A


40

Valid?

Figure 5
Main menu of the Proposed System

Start
Counter=0
T
Enter username
and password
Verify username
and password
Counter=counter+1
Select level
of access
Database
Forgot
password
Counter=
3
Administrator
A1
End
If level of
access=1
If level of
access=1

Manager
T


41

Select
Option

Registration

Help
Salary
Computation

Monitoring
Salary
Computation
Report
Monitoring
Registration
Help

Report

Figure 5.1
Administrator Account

Administrator

A1


42

A1

Registration

Help

Report
Help
Report
Registration
Select
Option

Figure 5.2
Manager Account

Manager


43

A
Monitoring

A
Database
Record OT
OT form
Scan employees
Barcode
A1
Valid?
Is
Employee
overtime?
Database
Database
Save record of log
in and log - out
Verify employee
barcode

Figure 6
Monitoring of Attendance of the Proposed System


44

Figure 7
Salary computation of the Proposed System

Salary Computation

Database
Database
Database
Compute salary
Salary = rate *
attendance tax -
deduction
Get employee rate
Get employee hours
of worked
Valid?
Input name of
employee
Salary = rate * attendance
rate= 0, tax=0, deduction=0
A
Verify employee
account
A
Compute
salary
A1


45

A
A1
Pay slip
Basic
Information
Retrieve basic
information
Database
Retrieve hours
worked
Hours
worked
Database
Database
Retrieve basic
information
Basic
Information
Select option
A Valid?
Verify employee record
Enter employee
name

Figure 8
Reports of the Proposed System

Reports

Report Print
Salary
Computation
Report Print
Report Print
monitoring
Report Print


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Figure 9
Help module

Enter username
and password
Help
Display
Display
answer
Database
Search Input query
System
information
A1
valid
Valid


47

Diagram of the Proposed System

Context Diagram

0.0

Human Resource
Management System
For
H.O Abalos Builders
Inc.

Administrator

Admin/
Manager
Report
Add/Edit
Username/
Password
Search
Salary
computation
ID generator

Administrator

Admin/
Manager
Level of
access
Payslip
Print
Report
Display
employees
information
New User/ updated
employees information
ID created


48

Dataflow Diagram of the Proposed System

Registration

Exploded 1.1 Verification

D1 Database
D1 Database
1.0

Registration
Generate
ID

Input
personal
information

Admin/
Manager
Admin/
Manager
Register
personal
information
Account
registered

Display
output/
Main
menu

Input
username
and
password

1.1

Verification
Admin/
Manager
Admin/
Manager
Verifying
account
Account
Verified


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Attendance Monitoring

Security

D1 Database
D1 Database
2.0

Monitoring
Display
time in
and out

Input name
of employee

Admin Admin
Verify
Record
Record
Verified

3.0

Security
Login
Details

Enter
Username/
Password

Admin/HR
Admin/HR
Verified
Username
And
Password

Verify
username
and
password


50

Exploded 3.1 Forgot Password

Report

D1 Database
D1 Database
Enter
Username/
Secret
question

3.1

Security
Retrieved/
Display
Password

Admin/HR
Admin/HR
Confirmed
User
information
and question

Verify User
Information
Choose
Report
Type

4.0

Report
View/Print
Report

Admin/HR
Admin/HR
Generate
Report

Verify
Report Type


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Maintenance

Exploded 5.1 Add

D1 Database
D1 Database
New User
info/Back-
up
complete

5.0

Maintenance
Maintenance
Information

Admin/HR
Admin/HR
Update

Edit user
information
back-up
5.1

Add
Backup
complete

Add User
Info

Admin/HR
Admin/HR
Confirmed
added
information/
Update

Added
information


52

Exploded 5.2 Edit

Search

D1 Database
D1 Database
View
updated
employees
info

5.2

Edit
Input user
information

Admin
Admin
Updated
user
information
Edit
information
back-up
Enter
Employee
Number

6.0

Search
Display
Employees
Information

Admin/HR
Admin/HR
Verified
Employees
Information

Searching
information


53

Help

ID generator

D1 Database
D1 Database
7.0

Help
Display
Answer

Choose
Question

Admin/HR
Admin/HR
Retrieved
Answers

Search for
answers
Enter
Employees
Name

8.0

ID
Generator
ID created

Manager Manager
Account
Verified

Verifying
account


54

Salary Computation

D1 Database
Enter
Employees
Name

Admin
Salary
Computed

9.0
Salary
Computation
Admin
Account
Verified

Verifying
account


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CHAPTER III
METHODOLOGY

Method is a systematic arrangement of ideas and topics presented in
order to achieve something that was designed or planned. In this section, the
proponents will discuss the methods used in order to achieve the goals for the
proposed integrated payroll system for human resource department. It will lay out
the information of the research methods used, data gathering procedures, and
the software development methods.

Feasibility Study

A feasibility study is an analysis of the growth and development of an idea.
The feasibility study focuses on helping to answer the essential question of
should the proposed project idea proceed? all the activities of the study are
directed toward helping to answer the questions. The proposed automated
payroll system is a feasible; for it is possible if applied even it requires a great
cost. It is very lucrative to use in such a way that it will develop and improve the
existing payroll system procedure of the company.


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Technical Feasibility

The large part of determining resources has to do with assessing technical
feasibility. It considers the technical requirements of the proposed project. The
technical requirements are then compared to the technical capability of the
organization. The system project is considered technical feasible if the internal
technical capability is sufficient to support the project requirements.

A computer is made up of both hardware and software; hardware consists
of the physical components, while the software consists of the computer program
itself. The proponents would like to set a hardware and software requirements for
the proposed system such as pc, monitor, keyboard, printer and barcode scanner
etc. for the hardware and Microsoft access 2007, Visual basic.NET 2008 for
software requirements.

The proponents will be implementing Visual Basic.Net 2008 as a front-
end graphical user interface with an objected-oriented programming concept that
uses objects as their interactions to design applications and computer programs.
This is and objected-oriented programming language that can reference a wide
variety of objects and can be implemented on Microsoft windows operating
system platforms which are commonly used by the most companies in the


57

Philippines nowadays. It also features a click and drag function for easy system
construction for the proposed system. The front end will also features data
access and database connectivity, essential to this study since the modular
structures of the proposed system calls for a database to be incorporated into it.

The proponents will also use Microsoft access 2007 as the back-end of
the proposed system. This database system would be best for Visual Basic.NET
and would be suitable since both of them are products of the Microsoft
Corporation which can provide a large capacity of data for storing massive
amounts of data through tables and is also compatible with the chosen front-end.
Microsoft access 2007 is a software product whose primary functions is to store
and retrieve data that is initialized by the other software applications, an
underlying component of the proposed database.

Operational Feasibility

Operational feasibility measures how well is the proposed system solves
the problems that might occur, and takes advantage of the opportunities
identified during scope definition and how it satisfies the requirements identified
in the requirements analysis phase of system development. The advantage of
implementing an integrated payroll system is; it was adaptable to the users for it


58

is less complicated than the manual existing system. It is easier to operate and
doesn`t required too much time and effort for it is manageable. Benefits of the
proposed automated payroll system is when users are computing the payroll, the
system will make it easier for them to find the total salary of each employee. The
system will give less effort and time on the transactions of the company and give
accurate reports. The system will also make it easier to identify errors in
transactions if it happens.

Economical Feasibility

Economics analysis could also be referred to a cost/benefit analysis. This
is where the most frequently used method for evaluating the effectiveness of a
new system. In this economic analysis the procedure is to determine the benefits
and savings that are expected from the payroll system and compare them with
cost. If benefits surpass the costs, then the decision is made to design and
implement the proposed payroll system.

The proposed automated payroll system will give benefits to the company
these benefits include the tangible and intangible benefits. Tangible benefits are
usually measured in terms of monthly and annual savings or profit to the firm
such as fewer processing errors, increased through output, decreased response


59

time, elimination of job steps, reduce expenses. Intangible benefits are those
benefits that are difficult or impossible to quantify such as improved company
goodwill, improved employee satisfaction.

Having these kinds of benefits will also give the company some cost.
These costs are classified into two categories; first is system development costs
which are one-time cost associated with analysis, design and implementation.
Second is the operating cost defined as lifetime system benefits which must
recovered, both the development and operating costs. These operating costs can
be classified as fixed or variable costs. Fixed costs are the lease payments and
software license payments; and divided salaries of data processing operators
and support personnel. Variable costs are the computer usage such as CPU time
used, terminal connect time used, storage used.


60

Cost Benefit Analysis

Cost Benefit Analysis (CBA) is significant in this study to identify the cost
and benefits factors of the given company. It is a technique designed to
determine the feasibility of a project plan by quantifying its cost and benefits.

I. Hardware Cost
Item Specifications Price
Memory Kingston 2GB DDR3 700.00
Motherboard Intel E5700 (3.0G) 2,700.00
Hard Disk 320GB Hitachi SATA 3,400.00
Optical Drive LG Optical Drive 950.00
Power Supply ATX power supply 300.00
Monitor AOE monitor 16 150.00
Keyboard PS/2 Keyboard 150.00
Mouse PS/2 Mouse 150.00
Barcode POS Barcode Reader 3,500.00
Total: 24,850.00
Source: www.sulit.com.ph


61

II. Software Cost
Software Quantity Price
Visual Basic.Net 2008 1 4,000
Microsoft Office 2007 1 3,000
Total: 7,000
Source: www.sulit.com.ph

I. Software Development Cost
Personnel
Number of
Personnel
Amount Day Cost
Programmer 4 500 90 45,000
System Analyst 4 590 90 53,100
Total: 98,100
Source: payscale.com.ph


62

II. Stationaries and Supplies
Item Quantity Price
Ball pen 4 44,00
Short Bond paper 1 199.00
Sliding Folder 1 10.00
Short Brown Envelope 2 16.00
Short Plastic 1 10.00
Ink black 1 600.00
Ink colored 1 600.00
Total: 1,479.00
Source: www.nationalbookstore.com.ph

III. Utility Expenses
Item Cost
Computer w/ monitor 1,852.20
Computer printer 1,296.90
Electricity 3,905.10
Total: 7,054.20
Source: www.meralco.com.ph


63

IV. Training Cost
Personnel Amount Day Hours Cost
Human
Resource
300 5 8 1,500.00
Managers 500 5 8 2,500.00
Total: 4,000.00
Note: two (2) employees will be trained
Source: www.payscale.com.ph

V. Summary of Cost
Hardware cost 24,850.00
Software cost 7,000.00
Software Development cost 98,100.00
Stationeries and Supplies 1,479.00
Utility Expense 7,054.00
Training cost 4,000.00
Total: 142,483.20


64

Estimated Benefits
1. Transactions, computation of payments and report will be more benefitable
and will approximately increase to 90%
Estimate: 128,234.88

Total Estimated Benefits: 128,234.88

Payback Period

Formula:
(Cost/Benefits) * 12 months
(142,483.20/128,234.88) * 12 = 13
= 1 year and 1 month

Return of investment:

Formula:
(Benefits/Cost)
(128,243.88/142,483.20)*100% = 90%


65

Data Gathering Instruments

A term used to describe a process of preparing and gathering data, the
purpose of data gathering is to collect or obtain information to keep on record, to
make decisions about important issues and to pass information to others.

Interview
It is a formal meeting in person that has the objective to gain information in
the research of the system. The purpose of interview is to understand how the
system operates and the problems occurring on the existing system.

Internet Research
The proponents use internet method for seeking relevant information
through sites and search engines to gain more reliable, accurate data and
information.

Observation method
Observation method was used by the developers because it is the most
fundamental type of data gathering method. It is a way to gather information on
the spot by taking note of the details of procedures, flows, and routine of
particular research target.


66

Library method
The proponents also use library method because it is the most common,
widely used, and conservative method of data gathering. The developers found
related books, thesis and other published and unpublished materials in order to
collect requirements for the system.

Data Gathering Procedures

During gathering stage, The proponents conducted an interview with the
Human Resource and President of the H.O Abalos Builders, who gave the
mission and vision, organizational chart of the company, resources at hand, flow
of the company`s existing system, process of computing the salaries and
monitoring of the employees. This interview also concluded the specific main
information needed in the study. The proponents then utilized the internet,
method of seeking relevant and essential information through searching engine
via online which provided some vague and some informative information related
to the proposed system. The internet was also the basis of information based on
technicalities and specifications.
Finally, the proponents took the opportunity to inspect the physical
condition of the company, to learn the routine of employees and to observe the


67

process of the existing system that leads to ideas of the current problems being
encountered.

System Requirements

The proposed system is compatible with either the following requirements

Hardware Hardware
Processor
4x speed DVD-ROM Drive
Hard Disk 320 GB
Mouse Optical
Monitor 17 LCD Flat Screen Monitor
Keyboard USB Keyboard
Printer HP PSC 1410 series
Power Supply ATX power supply
Barcode
POS/Laser Barcode Reader, Autosense
With Stand
Table 1.1
Hardware Specifications


68

Software Recommended
Front End Visual Basic.NET 2008
Back End Microsoft Access 2007

Table 1.2
Software Specifications


69

Schedule Feasibility

Table 1.3
Gantt Chart
Legend:
Appendix A Approval Letter
Appendix B Highlights of the interview
Appendix C Data Dictionary
Appendix D Sample Screen Layout
Appendix E Curriculum Vitae
Appendix F Permits (Prelim, Midterm, Finals)


70

CHAPTER IV
SUMMARY, CONCLUSION AND RECOMMENDATION

Summary

Todays generation requires every work to be done in an easy way to
efficiently utilize time and effort yet still having a productive report. An example of
this is pushing through the computerization of H.O Abalos Builders Inc. Having
this done, the Administrator and H.R Manager will conveniently access every
employees records through a database which would enable the company to
create reports easier and more accurately. At the same time through this process
it the company can ensure a more reliable and more accurate data for the
employees salary computations.

In the year of 1996, Mr. Hilario Oliveros Abalos founded the Jolar
Engineering and industrial sales to serve the on-going demand on technical and
clientele services. The owner has diversified its services from trading company to
specialty contractor of Electro Mechanical works, structural and architectural
steel fabrication and eventually to construct and maintenance of industrial,
commercial building and warehouses. By the year 2012, due to the increase in
demands for mechanical services, the company decided to incorporate itself by
which it is now known by the name, H.O Abalos Builders INC.


71

The H.O. Abalos Builders INC. currently uses the pen, calculator and
paper system, and occasionally the basic office programs like word and excel.
Currently its processes are plagued with errors and inconsistencies brought
about by the basic human errors like misread penmanship, and confusion in
reading. Though the use of computers is a bit more advanced, how the
information is processed makes it just as unreliable.

An upgrade of its grading system will benefit the institution by leaps and
bounds, and also give some extra advantages. With the use of computers, The
Human resource department would be relieved with the stress of writing with a
pen. Errors from penmanship will be eliminated with the uniform fonts that will be
used by the software. There will be a lesser need for the human resource
manager to do overtime to do the necessary computation for the salary of an
employee now that the information is easily accessible to authorized users and
the time they will need to process data will be greatly reduced. By integrating its
management system with the more up to date staples like LAN systems and
better software, information processed by the human resource personnel will
become more precise, reliable, accessible and secure.

The research study that the proponents created gives solutions in the
current problems occurring of H.O Abalos Builders. There are many things that


72

has been done such as researching about related study; thesis, books, internet
and interview about some questions with vague answers and the approval of
some colleagues studying in the field of programming who conducted the same
research.

Conclusion

Based on the information stated in chapter 1 and based on the data
gathered, the proponents surmise that the H.O Abalos builders Inc. is in need of
a H.R management system upgrade and have come up with the appropriate
solution. The proponents have devised a system that will streamline the
procedure of processing records and salary computation with the following
modules:

1. The current system uses log book to monitor the individual time-in and
outs of an employee. The proposed system uses an identification card to
monitor the attendance of an employee. It will be easier to monitor the
records through the database and would lessen the time required for log-
in and log-out. The identification card is installed with a unique barcode
number on it to provide individual records for each employee.


73

2. The existing system cannot provide security on their records and data
storage. To provide security module that will ensure that only authorized
user will be able to access the system. These will provide two levels of
access, the Administrator and the Human Resource Manager. They
should log-in with their username and password. For entering such
information it will only allow three valid inputs for a user to enter their
username and password, failing to do so, automatically locked the system.
The Administrator has full access to all modules of the system. He is also
the only one authorize to edit data from the system. The Human Resource
manager is responsible for the interaction of the employees and their
respective records.

3. The computation of salary is done manually which may result to
inaccurate salary computation. The proposed system will provide an
accurate and faster computation of salary by allowing the user to view the
records of an employee which includes the attendance, deductions and
taxes that may be used for cross-reference with their pay slip that would
be generated by the system. With this the process of information would be
much faster compared to manual system.

4. The system cannot provide sufficient report for a particular transaction
when needed.The proposed system also have a reports module that will
automatically filter the necessary and needed reports such as overall
attendance, salary computation report, taxes/benefits and the audit trail
reports by letting the user to choose what kind of report that he/she need


74

to be print out. Having this will also help the organization to avoid
misplacing of the reports. And it will reduce the time consume in finding
other kind of reports.

Recommendation

With new generation theres a lot of new high tech, it is evident that
everyone must adhere to the needs of this new day and age. H.O Abalos
Builders Inc. manual system is old, outdated, worn down, and cannot be
expected to be applied to an ever growing number of employees and still
maintain its accuracy. The proponents recommend to the next developer or
future researcher to:

1. The proponents recommend the company to use the bank as means of
salary distribution.
2. The proponents recommend the company to use a WAN based
technology instead of LAN based, for wide and complete inspection of
the workers in the other sites.
3. The proponents recommend to the company to use an online system
for more efficiency and accessibility.
4. The proponents recommend the company to use a biometric
technology to enhance security level.

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