University of Dhaka

Assignment on
System Analysis & Design on payroll management system
Course Name: Introduction to Information Technology
Course Code: EMIS-510

SUBMITTED TO
Dr. Ashis Talukder
Assistant Professor
Department of
Management Information System
University of Dhaka

SUBMITTED BY
Md. Abidur Rahman
Id. No. : 6194336041
Muhammad Nur E Alam
Id. No. : 6194336054
Department of
Management Information System
University of Dhaka

SUBMISSION DATE
07/09/2020

Student Profile: Group 11

Name ID

Md. Abidur Rahman 6194336041

Muhammad Nur E Alam 6194336054

Topic
System Analysis & Design on payroll management system

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Table of Contents

Introduction ............................................................................................................................................. 4
Objective ................................................................................................................................................. 4
Payroll Management System .................................................................................................................. 5
How Does A Payroll Management System Work? ................................................................................. 5
Benefits of Using a Payroll Management System for Business .............................................................. 6
Why Should Small Businesses Acquire Payroll Processing Software? .................................................. 7
What can be done with the Application? .............................................................................................. 10
Entity Relationship Diagram Payroll Management System.................................................................. 11
Available pages ..................................................................................................................................... 12
How to Choose Payroll Management Software for Business Needs .................................................... 13
Conclusion ............................................................................................................................................ 14
References ............................................................................................................................................. 15

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Introduction
There is no question about the impact of automation on revolutionizing some of the most
important areas in business management. While there are several aspects of automation in the
business world, a payroll management system has by far made things even simpler and efficient
for both small and large businesses.
With a drastic and positive shift to integrating business software and applications, business
leaders and managers have focused their sights on making every task more value-based –
constantly improving their systems and streamlining their organizational structure.
The human resource departments of major businesses have also dedicated their resources and
skill into retaining staff, enhancing recruitment, and managing their in-house talent. You need
to understand the modern HRD plays a critical role in executing key business plans, helping
the organization to develop further. They have moved away from traditional norms and
functionality, which was largely to manage payroll systems and ensure there are no
discrepancies. They have moved away from simply controlling administrative tasks. They have
now become tactical, and work on increasing and creating value, thanks to cutting-edge payroll
systems.

Objective
 Improve Payroll Management System
 Improve the performance of Employees
 Reduce operational cost.
 Increase data security & Data backup facilities
 Reduce time consumption
 Maintaining Office Employees Payroll
 Processing Properly pay Information
 Maintaining Payroll Management System including Deduction, Allowance & Loan etc.
 Increase Payroll Departments
 Maintaining Salary Process
 Easy to use

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Payroll Management System
Payroll management is all about employees and their salary. Though it does not affect your
production or operations directly, it is very important to take care of this HR operation at all
levels. After all, employee satisfaction is highly dependent on it only. Doing all payroll
management tasks manually will make it a very expensive operation for any business. Hence,
you need an efficient and comprehensive Payroll management System to handle it all. It can
help you in automating the payroll process and paying employees accurately. Do you know
how Payroll Management System works and how can it benefit your organization in long-
term? If not, then go through this post and understand.

A typical Payroll management system is built to help all types of businesses calculate
employee wages, insurance, loan, deductions, taxes, etc., as per their attendance. You can
add the company’s holiday calendar into it so that these computations can happen without
any mistake and human intervention.

Alongside, personnel information management, leave management, employee bank detail

management, HR document management, pay slip generation, etc. are some other tasks,
which you can do through Payroll software. All these features may vary according to the
number of employees in your company, organization’s structure, and business’s needs.

How Does A Payroll Management System Work?

Payroll Management Systems are beneficial for all, be it a small-sized business, a medium-
sized organization or a large-sized enterprise. It manages different HR-related operations of
your business to help you in running it smoothly. Here’s what a Payroll Management System
do:

Employee attendance calendar management

Payroll software applications are generally connected to a biometrics authentication system
(BAS) so that employees’ attendance, work hours, absents, overtime, etc. could be
automatically fetched from the scanner. It lets organizations set HR rules and add holiday
calendar to the system, through which, it calculated the total salary of each employee
precisely.

Tax update management

Payroll systems keep track of all the tax updates being released. Your accounting department
may miss noticing the new changes or rules, but it won’t. The software will notify you about
the revisions in the taxation system so that you could change HR rules accordingly, thereby
helping you keep your HR practices and payrolls standard.

Pay slip generation

Not all, but most of the premium Payroll system offer pay slip generation facility. Through
your payroll software, you will be able to generate and print pay slips for your employees
without needing to manually prepare these slips. Even, you can configure your software to
automatically email these slips to your personnel.

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Leave management
Payroll Management systems have a leave management module, through which your
employees could send the leave applications to HR. All required details are sent to the
concerned user so that further action could be taken. This tool keeps track of approvals,
leaves, whether it is paid or unpaid, etc. too. The data of the leave management system is
further used to calculate employee salary.

Employee dockets
To maintain transparency, payroll systems are made capable of maintaining detailed digital
records for each employee separately. These employee dockets are visible to that employee
and HR team generally. So, everyone concerned person can verify the attendance or payroll
data whenever needed.

Document management
Documents, like identity proof, experience certificate, degrees, employee details, tax forms,
etc. can be uploaded to payroll management systems. It helps human resource teams to
conveniently access employee data whenever needed.

Sending reminders
Humans are forgetful. We forget when to file taxes, when to ask the HR Manager if leave is
approved, to login to time tracker, to download pay slips, to fill appraisal form, or anything
in general. However, Payroll Management systems ease down many things for us. Companies
can configure these software applications to send notifications and remind people about
pending tasks and leave-related updates.

Benefits of Using a Payroll Management System for Business

So, now employees know that Payroll Management Software can do a lot of HR Tasks, but
not sure why should you use it when your HR team can do it all. We’ll tell. Benefits of having
a payroll management system:

Accuracy and transparency

Humans may make errors in payroll-related calculations but Payroll software won’t. And as
the whole data related to payroll management is updated in real time, the concerned employee
can always check it. It makes the payment process very transparent, increasing employees’
trust in your organization

Speed and time-saving

Everything is calculated in real-time and without the involvement of human resource. The
process is lightning fast and saves time for everyone in your organization. It results in speeded
up HR actions which are dependent on payroll data.

Quick insights

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Employees can see multiple role-based dashboard views as per their access rights. It helps
them gain deep insights related to payroll, that too, within a few seconds.

Cost-convenience
Everything, which a Payroll management system does, could have needed a team of HR
professionals. If compared the cost of hiring those professionals and subscription fee of your
payroll tool, you will be surprised to see how much it is saving for you.

Security

These tools are authentication-based and role-based, unlike conventional paper-based manual
payroll management system. So, your employee data is accessible to authorized personnel
only.

Why Should Small Businesses Acquire Payroll Processing Software?

Payroll is something that has to be done accurately and regularly, so it makes sense for
companies to invest in a system that automates these processes. Payroll software can mitigate
errors, improve compliance, and save time. With increasingly easy-to-use options, payroll
software is helping companies everywhere retain control over payroll processes while
providing greater flexibility than with outsourced payroll.

Payroll software is easy to use and affordable and can mitigate errors in the payroll process and
reduce the hours spent calculating employee hours, wages, and tax withholdings, especially for
small businesses. Small business owners can purchase an affordable system on their local
computer or via a cloud service using a pay-as-you-go model. They can also maintain more
control of the payroll process with this software, which allows them to compile reports at their
own pace and make changes quickly if the need arises.

Scope of proposed system

Users Information: It contains user id, password, user status, user start date, user end date and
user creation date.
Company Information: It contains company name, address, contact information, license
number and all branch related information

Bank Information: It contains bank name, address, contact information, account number,
swift code, bank type and bank account name.

Employee Information: It contains all type of information of Employees including Photo. The
employee information is as name, address, and contact number, hire date, salary, date of birth,
religion, nationality, NID, gender, department etc.
Department Information: This module contains all type of information about Departments.
This department information is as creation date, availability etc.
Department Information: This module contains all type of information about Departments.
This department information is as creation date, availability etc.

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Salary Information: This module contains all type of information of Employee ID, Employee
Name, Basic Salary, Total Allowance, Total Deduction, Gross Salary, Loan Paid, Net Salary,
Year Name, and Month Name. This information of There is More Group wise Payment &
Received Purpose. .
Allowances Information: This section is responsible to confirm All Allowance Purpose
including, House Rent, Medical Allowance, Conveyance Allowance, Transport Bill, Festival
Bonus, Mobile Allowance etc.
Deduction Information: This section is responsible to confirm All Expenditure including
Income Tax, Provident Fund, Gratuity Fund, Pension Fund, Social Fund, and Insurance.

System Development Methodology

System Development Life Cycle (SDLC) is the overall process of developing information
systems through a multi-step process from investigation of initial requirements through
analysis, design, implementation and maintenance. There are many different models and
methodologies, but for this project we have use Structured System Analysis and Design
Methodology (SSADM) which consists of a series of defined steps or stages. The sequential
stages for AMS System are represented by V Lifecycle Model.

The V Lifecycle Model

Initial request & feasibility study: The Initial request & feasibility study establishes a high-
level view of the intended project and determines its goals.

Deliverables:
 Feasibility Report i.e. Cost benefits analysis and total time frame.

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Requirement Analysis & Specification: The Requirement Analysis & Specification refines
project goals into defined functions and operation of the intended application after analyzing
end-user’s information needs.

Deliverables:
 Requirement report.

Systems Design This phase describes desired features and operations in detail, including screen
layouts, business rules, process diagrams, pseudo code and other documentation. It consists of
two phases. Those are:

Logical System Design

At this stage the logical view of the system is specified by system architecture in terms of
components and their interaction.

Deliverables:
 Entity Relationship Diagram (ERD)
Physical System Design:
In this step, logical system design will be transformed into Physical design.

Deliverables:
 Data Dictionary,
 Forms Layout,
 Report Format and
 Menu Structure.
System Development (code & unit test) in this stage, the development of the user procedures
and the interfaces is carried out. Ongoing and throughout development, and also as a separate
stage after development, a thorough Testing is carried out. The real code is written in this stage.
Deliverables:
 Complete system specification and documentation (system documentation),
 Forms, Reports and Menu executable.

System Integration and testing (Implementations) Once the programs have been written and
unit tested, Integration, testing of all programs running as a complete system is carried out.
This stage brings all the pieces together into a special testing environment and then checks for
errors, bugs and interoperability.
Deliverables:
 Integration Report.
System Acceptance Test: This is the final stage of initial development, where the software is
put into production and runs actual business.
Deliverables:
 User’s sign off document.
Maintenance The maintenance activities are those activities that are required after an
application has been successfully delivered into production. This includes changes, correction,
additions, move to a different computing platform and more. This, the least glamorous and
perhaps most important step of all, goes on seemingly forever.

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SSADM Methodology
SSADM was originally developed by Learn mouth and Buchett Management system. The main
aspects of SSADM philosophy are:
 User involvement.
 The three views.
 The functional view
 The data view
 The dynamic view
 Top- down Approach
Advantages of SSADM
 Improved communication with user.
 Improved project planning and control.
 Improved verification process.
 Reduced cost.
 More effective use of resources.
Technology Used for the application
 Oracle Database 11g: SQL
 Oracle Database 11g: PLSQL
 Oracle Forms Developer 10g
 Oracle Reports Developer 10g

What can be done with the Application?

 All processing and activities related to payroll Management, further departments and
activities for making ready to useable.
 Employees, Departments, Hire-Date, Address, Contract number, Email, Salary
Registrations.
 Every module follows step by step process.
 Screening and component separation information can be live in the application
 Can check availability of every segments, modules.
 Searching facilities are available in the application
 Required reporting facilities are also available
 Only authenticate user can access the application

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Entity Relationship Diagram Payroll Management System

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Available pages

User Information
Add User Change Password User Type
Reports

Company
Bank Information
Company Entry Information Bank Entry
Reports
Reports

Department Designation
Department Entry Information Designation Entry Information
Reports Reports

Employee Allowance
Employee Entry Information Allowance Entry Information
Reports Report

Deduction
Salary Process Salary Information
Deduction Entry Information
Entry Report
Report

Year Entry Loan Entry Login for ID Login for Password

Homepage

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How to Choose Payroll Management Software for Business Needs
Choosing a payroll system that best fits your business is essential, and there are several factors
to keep in mind when deciding.

Company’s budget:
First, analyze the size of your business and decide how much you are willing to spend on
payroll processing. Knowing your budget and the size classification of your business will
narrow down the list of payroll software vendors. Small companies that do not anticipate rapid
growth may wish to invest in less-expensive payroll software that performs basic payroll
functions.

Vendor reputations and capabilities:

Next, compare the offerings of viable vendors and read reviews from some of their current
customers. Large or rapidly growing companies may wish to invest in payroll software systems
that are integrated with other aspects of planning and human resources management. Consider
how many employees the payroll software solution can handle and factor in potential growth.
If available, request demos and see for yourself how easy the software is to work with and how
well it fits with your business. Make sure the software is made by a well-known brand and not
a new or unstable company.

Security features:
When choosing a payroll system, you’ll want to look for security. Having password-protected
software safeguards your company against information tampering and potential data breaches.
Ideally, the system should have good security reviews and ratings. Vendor representatives
should also be able to answer any questions that you have about security.

Software flexibility and compatibility:

Next to consider is if the software proves to be compatible and flexible. It is important to have
payroll software that functions well with your other business systems and will grow with your
business. Look for integration capabilities and make sure that the system is a match for any HR
or financial software you’re currently using. Alternatively, consider obtaining a system that
handles payroll and any other functions you want to automate.

Report and history visibility:

Lastly, you’ll want a payroll processing system that allows you to retain control and view
reports and historical information. While payroll processing software is less susceptible to
errors than manual systems, there is still potential for malfunctions and glitches. It can be
helpful to be able to review the information and make corrections manually at times.

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Conclusion
In this report we have tried to describe various concepts of software development. And tried to identify
the problems in software development.
It’s very enchanting for us to have a practical exposure in software development. Because without
practical exposure it was not possible for us to compare the classroom theory with practical experience.
Moreover it is well established that theory without practices is blind. But in spirit of this, we find a gap
existing between Theory and Practical knowledge. To minimize this gap project works under this course
program is essential.

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References
Aberneithie, S. .. (n.d.). slideshare.net. Retrieved from www.slideshare.net:
https://www.slideshare.net/SavioAberneithie/payroll-management-system-complete-report

intercorpsolutions.com. (n.d.). Retrieved from www.intercorpsolutions.com:

https://www.intercorpsolutions.com/knowledge/how-payroll-management-system-works-
how-benefit-your-organisation/

menaitech. (n.d.). Retrieved from www.menaitech.com:

https://www.menaitech.com/en/blog/impact-payroll-management-modern-
businesses/#:~:text=Using%20a%20professional%20payroll%20management,to%20your%20
global%20employee%20database.&text=Using%20the%20software%2C%20you%20can,syst
em%20is%20also%20environmentall

Muhammad Rafiqul Hasan, M. N.-E.-A. (2012.). Design and Development Of Payroll Management
System. Bangladesh: academia.edu.

Oden, C. (n.d.). projecttopics.org. Retrieved from www.projecttopics.org:

https://www.projecttopics.org/design-implementation-payroll-management-system.html

Rietsema, D. (n.d.). hrpayrollsystems.net. Retrieved from www.hrpayrollsystems.net:

https://www.hrpayrollsystems.net/payroll-systems/

zoho.com. (n.d.). Retrieved from www.zoho.com: https://www.zoho.com/in/payroll/online-payroll-

management/

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