CHAPTER 2: PLANNING PHASE

2.1 INTRODUCTION
Midlands State University is looking to implement a paperless payroll system to improve efficiency,
reduce costs, and improve employee satisfaction which are in line with our objectives. The current
payroll system requires a lot of manual data entry, which is time-consuming and prone to human error
leading to employee dissatisfaction. The payroll system will automate many of the payroll processes,
which will reduce the amount of time spent on payroll and increase accuracy, in addition, the current
system doesn’t provide employees with easy access to their pay information, which has led to
confusion and frustration. The paperless system will provide employees with a secure online portal
where they can view their information and submit requests for changes.

2.2: BUSINESS VALUE

A paperless payroll system can provide several benefits for businesses, including cost savings,
efficiency, and improved employee satisfaction. By streamlining the payroll process and eliminating
the need for paper, the system can reduce costs and improve productivity. In addition, the system can
increase employee satisfaction in the following ways:

EMPLOYEE SATISFACTION

 Employee satisfaction is a key component of any business, and a paperless payroll can play a
significant role in increasing employee satisfaction. By providing employees with easy access
to their pay information and ensuring that pay checks are correct and are on time always. The
system can help improve the overall work environment and work morale .it reduces the
amount of time employees need to spend on payroll tasks, freeing up their time for other
tasks.

COST SAVINGS

 Cost savings associated with a paperless payroll system can be significant. By eliminating the
need for paper and printing, the university will save money on supplies and printing costs. In
addition, the system will be more efficient, which will reduce costs. The system will be able
to generate accurate reports which will help ensure that the university is compliant with all
relevant tax and reporting requirements, potentially avoiding costly fines or other penalties.

EFFICIENCY

 The paperless payroll system will use automation to speed up the payroll process and
eliminate the need for manual data entry. This will save time that can be used for other tasks,
such as employee training or benefits administration. The system will also provide real-time
data, which will allow for more accurate and timely decision-making. The automated process
will reduce the chance of errors and help to ensure that the pay checks are issued on time and
are accurate this will lead to productivity and satisfaction among employees.

2.3 FEASIBILITY STUDY

this study will examine Midlands State University, project goals, requirements, and constraints to
determine whether the project is technical, financial, and operationally feasible. the study will also
evaluate the potential benefits and risks associated with the project, a paperless payroll system. It will
make a recommendation as to whether we continue with the project. This is explained in the
following;
2.3.1 TECHNICAL FEASIBILITY

 The first question that needs to be addressed is that if the organization Midlands State
University, has the necessary hardware and software resources to implement the paperless
payroll system. This will require an assessment of the current IT infrastructure, as well as the
availability of funding for any upgrades or additions that may be required. We need to also
compare to check the compatibility of the paperless payroll system to the organization's
already existing systems. This study will show or determine how easy or difficult it is to
integrate the new system. If there are many incompatibilities, then it may not be technically
feasible to implement the new system.

2.3.2 ECONOMICAL FEASIBILITY

 Economic feasibility refers to whether the project is financially viable. This will involve
estimating the costs of the project and the potential benefits that it will bring to the
organization. In the case of the paperless payroll system, the economic feasibility will
consider the costs of implementing the system, including the costs of hardware, software, and
training .it will also consider the potential savings that the system could bring, such as
reduced costs for printing and mailing pay checks and reduced labour costs. Also, the element
of the return on the investment is the amount of money that the organization will make back
from the investment in the system.

2.3.3 SOCIAL FEASIBILITY

 This study refers to the impact of the project on the people who will be affected by it. In the
case of a paperless payroll system, this includes the impact on the employees, the impact on
the customers, and the impact on the organization's culture. The social feasibility will
consider the level of training that the employees will need to use the system and the level of
support that will be needed .it will also consider the level of employee satisfaction with the
new system, and whether there will be any negative impacts on ethics and morals.

2.3.4 OPERATIONAL FEASIBILITY

 This refers to whether the system can be successfully implemented within the organization.
This includes looking at the organization's current processes and procedures, and whether
they are easily adapted to work with the new system. It will also consider the availability of
resources, including the availability of IT support and the availability of the staff to support
the system. Another aspect of operational feasibility is compatibility with the organization's
existing infrastructure.
2.4 RISK ANALYSIS
The risk analysis of the paperless payroll system will consider the potential risks associated with the
implementation of the system. The risk analysis will consider the likelihood and potential impact of
each risk and will develop mitigation strategies to reduce the impact of each risk. The analysis will
use the risk assessment to categorize the risks and use quantitative and qualitative methods to assess
the risks. This analysis will consider all the aspects of the project, including the planning, design,
implementation, and maintenance phases.

 Operational risk

These risks relate to the day-to-day operations of the system. For instance, the risk could be of
the system being unable to process payroll due to a technical issue. This might be due to the
failure of training for the user system. Or data might be lost due to a failure of the system. These
risks might be, mitigated by having a backup plan such as a manual process that can be used in
the event of payroll system failure.

 Financial risk

Financial risk is those that could impact the financial position of the organization. An
example would be the risk of the system not meeting the budgeted costs or the risk of the
system not meeting the expected return on the investment these risks can be mitigated by
having a robust cost control system in place and by regularly monitoring the financial
performance of the paperless payroll system.

 Legal and regulatory risk

These risks could have legal and regulatory implications for the university an example could
be the risk of not complying with data protection regulations, or also complying with financial
also complying. The solution to these risks can be met by consulting with legal and regulatory
experts to ensure that the paperless payroll systems are compliant with the law and
regulations.

2.5 STAKEHOLDER ANALYSIS

The stakeholder analysis is a crucial part of any project, as it helps in identifying all the people or
groups who have an interest in the project. In the case of the paperless payroll system, the
stakeholders would include the payroll department, the IT department, the HR department, and also
the finance department, each stakeholder has different needs and expectations, and the stakeholder
analysis helps to identify these so that they can be addressed.

Once the stakeholders have been identified, their interests and needs will be analysed to determine
how the paperless payroll system would impact them. The goal of the analysis would be to ensure that
the system is implemented in a way that meets the needs of all stakeholders and does not negatively
impact any individual or group.

2.5.1 Stakeholders and their expectations

Employees

Employees would expect the system to be easy to use and to provide accurate information.

Managers

Managers would expect the system to be reliable and efficient,

IT Department

The IT department would expect the system to be secure and scalable

HR Department

HR would expect the system to be user-friendly and compliant with all relevant regulations.

Finance Department

finance department would expect the system to be cost-effective and to generate accurate
financial reports.

2.6 WORKPLAN
Workplan for Implementing a Paperless Payroll System at MSU Institution

Objective:

The objective of this work is to outline the steps required to implement a paperless payroll
system at MSU Institution. The paperless payroll system will streamline the payroll process,
enhance efficiency, reduce costs, and promote sustainability.
 TASK DURATION START DATE END DATE WEEKS

PROJECT INITIATION 01/01/23 15/01/2022 2

REQUIREMENTS GATHERING 16/01/23 31/01/22 2

SYSTEM DESIGN 01/02/23 28/02/22 4

DATABASE SETUP 01/03/23 15/03/23 2

UI DEVELOPMENT 16/03/23 15/04/23 4

BACKEND DEVELOPMENT 16/04/22 31/05/23 6

TESTING 01/06/23 30/06/23 4

USER ACCEPTANCE TESTING 01/07/2023 15/07/23 2

DEPLOYMENT 16/07/23 31/07/23 2

TRAINING & DOCUMENTATION 01/08/23 15/08/23 2

GO-LIVE 16/08/23 16/08/23

Table 2.6.1

2.6.2 GANTT CHART

WEEKS 1 2 3 4 5 6 7 8 9 10

Table 2.6.2
PROJECT INITIATION

REQUIREMENTS GATHERING
 SYSTEM DESIGN

DATABASE SETUP

UI DEVELOPMENT

BACKEND DEVELOPMENT

TESTING

USER ACCEPTANCE TESTING

DEPLOYMENT

TRAINING&DOCUMENTATION

GO-LIVE

Table 2.6.3

CONCLUSION
The paperless payroll system at Midlands State University is a significant undertaking that
will require careful planning and implementation to be successful. The planning phase has
identified the needs and expectations of all stakeholders, developed a project plan, and
designed the system. Testing and evaluation will ensure that the system is effective and meets
the needs of the organization. Ultimately, this system will streamline payroll processes,
reduce costs, and improve efficiency. The success of the system will depend on the
dedication and commitment of all stakeholders involved.