Requirements and Topic Outcomes
This report is focused on an organization where the redesigning of current payroll system is required for improving their business infrastructure. The concept of cloud solution and the selection of various services being offered by various cloud service providers are being evaluated in this report. The discussions are carried out to demonstrate the benefits that will be achieved by the organization by implementing cloud based payroll system. The cloud based system for the organization is ‘Precipitation Payroll Services’ which will help them to manage their payroll system efficiently. The redesigning of the current system has been illustrated with the help of some diagrams to present the flow of information which will be achieved upon implementation of the cloud based payroll system.
This report is aimed at providing a cloud based solution for the current payroll system of the organization. The focus of this report is to demonstrate the concept of cloud based application for payroll system and how it will help to achieve desired goals of the organization. In this report, the discussion are carried out to present the concept of cloud based solution for current payroll system in the system. The organization has decided to move to a cloud based suite for their existing payroll system as there are many issues being faced while managing salary of the employees. The current payroll system could be improved and enhanced by adopting cloud based solution and migrating it from physical database to cloud database. This report will help the technical staff as well as the employees of the organization to gain an insight into the cloud based solution being chosen for the current payroll system.
Payroll system is required for almost any organization to manage the employees as well as resources efficiently and fulfillment of the desired goals. The payroll system relates to financial aspects and calculation of salary of the employees of an organization (Cates 2015). The payroll system delivers solutions for the organization so that they can easily manage and automate the process required for maintaining the payroll information of employees. The payroll system automates the completed payroll system however, there are many issues being faced by the organization while operating with their existing system. Hence, it has been determined that a cloud based solution will be suitable for the organization so that they could achieve the desired goals and improve their payroll process. The implementation of a cloud based suite for current payroll system will provide the organization with various benefits and additional features so that they could attain competitive advantage by increasing efficiency of the employees (Woodward 2017). The cloud based solution for the organization will help them to increase productivity of their employees and reduction in wastage of resource. The cloud based payroll system will have the facility to select the features they want to use and pay for that only rather than a fixed plan to pay a certain amount for chosen period of time.
Tasks
Payroll is considered as one of the essential aspect for operations of a business and hence there is a need for suitable management system. The payroll management forms an important part of any organization. The conventional methods or in-house payroll systems often do not have the capabilities of solving the organization problems related to payroll management (Othman et al. 2017). Hence, there is a need for advanced software or applications that can support the business needs of an organization. The payroll management without use of any software or application is complex and it becomes very time consuming. It eventually increases complexity in the payroll management process which in turn leads to wastage of resources within the organization. The payroll management system keeps track of the working hours of employees and processing of salaries according to recorded information about an employee.
Hence, there is a need for proper payroll management system within an organization for reducing the time required in the payroll process (Garg, Singhal and Tiwari 2018). The payroll management system also helps to reduce the errors due to manual input or checking of information. The payroll management systems do not have to be monitored on a constant basis as the calculations and processing of information are carried out automatically in the system.
For the particular provided organization, it has been determined that issues are being faced while operating with their current payroll system. Therefore, a new system is required for the organization so that they could fulfill their business goals and objectives efficiently. The implementation of a new payroll system will help to uplift the present conditions of the organization by mitigating the issues existing within their current payroll system. Hence, it has been determined that a cloud based solution will be suitable for the organization so that they could easily operate their payroll process. The cloud based payroll system will offer the required functionalities along with additional features so that they could get benefits in their business operations. The implementation of the cloud based payroll system will the help the organization to define the applications as per their requirement and pay as per their usage. The SaaS (Software as a Service) solution has been considered for the organization as it will help them to operate the system with less knowledge of payroll (Mahadi, Hasan and Roy 2018). It will help to manage the human resources properly as there will be less involvement of employees required for managing the payroll process. The SaaS payroll system will help the organization to run their business easily and more efficiently.
Benefits of Cloud-based Payroll System
A cloud based payroll system will help the organization to achieve various benefits by outweighing their current payroll system. The business could be run smoothly and efficiently with the implementation of cloud based payroll system within the organization. Hence, cloud based payroll system is required for the organization. The benefits along with challenges of the cloud based solution are presented for better understanding of the organization.
The payroll system automates the completed payroll system however, there are many issues being faced by the organization while operating with their existing system. Hence, it has been determined that a cloud based solution will be suitable for the organization so that they could achieve the desired goals and improve their payroll process. The implementation of a cloud based suite for current payroll system will provide the organization with various benefits and additional features so that they could attain competitive advantage by increasing efficiency of the employees. The benefits that are associated with the cloud based solution are presented as below:
Access to information – The cloud based payroll system will provide the employees with facility to access information about their payroll anytime from anywhere themselves online (Roy, Mahadi and Hasan 2018). The employees will be able to login to the system using their personal login credentials for accessing the system. The privileges of using of the system functionalities will depend upon the authentication level of users. The system will also help the organization to centrally connect the different departments or offices so that information can be accessed globally online.
Figure 1: Data Flow Diagram for the Cloud based Payroll System
(Source: Created by Author)
Automatic updates and no requirement of backups – In the cloud based payroll system, there is no requirement for manual update or backup unlike the current payroll system (Zaki and Saad 2018). The cloud based solution will have the functionality of automatic updates and backups so that there is no requirement to maintain backup logs manually by the IT team. It will eventually help to reduce the additional resources required for update or backup procedure being followed for the existing system.
Improvements in transparency – A cloud based payroll system empowers every approved representative access to their applicable finance data at the snap of a button. The directors can get to their group’s data like leave demands and preparing plans without asking HR. This outline empowers them to favor or decrease leave entries rapidly, which makes it less demanding for everybody to design better (Liu 2015). It likewise gives administration portable access to work process statuses. This takes into account substantially more understanding into what is going on in the association and what representatives are taking a shot at.
Design Considerations for Cloud-based Payroll System
Easier integration with other systems – The cloud based payroll system can be integrated with other applications easily so that business performance is not hindered due to implementation of new system. The new system can be easily integrated with existing software or application as the data or information will be automatically pushed to and fro through the application to the system (Jayaram and Singal 2017). It means that there will be total savings of time and reduction in duplication of work. The problems within the existing system can be mitigated by following the process as presented in the diagram below:
Figure 2: Use case Diagram for the Cloud based Payroll System
(Source: Created by Author)
Easier reporting facilities – The analytics services being offered by the cloud based solution will help the organization to easily generate reports from the data stored in the system. The generation of reports from the cloud based system will help the organization to make strategic decisions efficiently for future growth (Oduh et al. 2018). Real time data will be provided by the system so the information being used for analysis will be up to date and correct.
The main weakness of the existing system is the time required for payroll processing is high. There is wastage of time due to searching of records from the database. The searching process consumes more time than expected which results into increase of workload and at the same time there may be occurrence of error or duplication of data. The overall records checking and making modifications if required makes the process more complex and time consuming. The challenges that are associated with the cloud based solution are presented as below:
Accessibility – The cloud based payroll system can be accessed from anywhere and anytime but the major requirement is an internet connection. The internet connection is required for storage or access of information from the cloud based platform (Maskeliunas 2018). Hence, a poor internet connection or no connection may cause potential problems as business operations may be hindered and particularly the organization will not be able to track the working hours of employees.
Security and Confidentiality – The information of employees along with other business information are stored in cloud while using the cloud based payroll system. Hence, the security of information always remains a major question and if there is lack of security measures then there may be theft of employee information or other confidential information (Yuliyanto 2018).
Management of platforms – Different platforms provide different functionalities and hence, there is a requirement that business organizations often choose to use different platforms. Therefore, the platforms have to be managed properly so that business integrity can be maintained and suitable provider is selected according to the business requirements.
The cloud based payroll system will collect the data on employees of the organization in cloud and the HR department will feed such information into the system. The data can be used for generating reports for evaluating performance of the employees (Chaflekar et al. 2018). The major consideration in this case is that the collected information can be used for strategic decision making about the employees. The considerations for implementation of the cloud based payroll system are discussed as below:
Software services for business – The services being offered by the cloud platform have to be checked properly such that it fulfills requirement of the organization. The requirements of the organization have to be clearly stated so that provided software services are compatible with the existing software applications (Lv et al. 2017).
Transparency in pricing – The pricing plan on behalf of the services being offered have to be compared with other cloud service providers. The pricing policy and strategy have to be properly analyzed so that there is no additional payment required for the availed services.
Excellent customer service – The customer service for the system must be excellent such that immediate support can be received from the cloud service provider (Aman and Mohamed 2018). The operation of the cloud based payroll system may be difficult at times without proper customer support and service.
Flexibility of the system – The system have to be flexible to changes such that there is no requirement of annual contract with the service provider. The system should be adaptable to changes as per requirement of organization in case changes occur or something goes wrong.
Figure 3: Sequence Diagram for the Cloud based Payroll System
(Source: Created by Author)
Free trial of the system – A free trial of the cloud based payroll system have to be performed before adapting and implementing it within the organization (Alruwaili and Gulliver 2018). Most of the cloud payroll service providers offer a 30 day free trial so that functionalities and capabilities of the system can be determined in context to requirements of the organization.
In current payroll system of the organization, the employees have to manually provide data into the system for generation of reports and feedback on employees. The whole payroll process being carried out within the organization is very time consuming as well as prone to errors. The calculation with the data stored in database is also difficult which results into problem while generating reports. The major drawbacks within the existing payroll system are listed as below:
High consumption of time – The main weakness of the existing system is the time required for payroll processing is high. There is wastage of time due to searching of records from the database. The searching process consumes more time than expected which results into increase of workload and at the same time there may be occurrence of error or duplication of data. The overall records checking and making modifications if required makes the process more complex and time consuming.
Service and Working Conditions – The unusual delay due to various reasons impacts the efficiency of employees and performance of the organization. Often, the employees are also dissatisfied due to delay in processing of their salaries or incorrect processing of the payroll.
Difficulty while retrieving information – Sometimes, there is occurrence of an event when instant information is required but it has to be gathered from combining data from different files. The process of accessing the required information requires more time than usual and hinders the continuity of business processes.
The previous section presented that there are various drawbacks within the existing system and hence there is a requirement for cloud based payroll system. The cloud based Payroll Management System gives an instinctual arrangement that consolidates the finance forms and oversee it adequately with no extra exertion. Workers can peacefully get to far reaching pay records, view and print their pay slips. The current payroll system will be migrated to cloud based payroll system by following certain steps as presented below:
- Clear statement of the purpose for moving to cloud – A clear statement and definition for the purpose behind moving to the cloud will be developed.
- Training of staffs – It is important that the staffs have to be made aware and provided training prior to implementation of the new system (Seo et al. 2018).
- Selection of suitable service provider – There are many cloud service providers available in the market but the best suited will be chosen by the organization.
- Planning and assessment – The planning and assessment of the financial, technical or security and compliance aspects have to be done prior to migrating data from on-premises to the cloud (Bothma 2018).
- Migration tools – Many tools are being offered by the cloud service providers so that migration can be carried out easily. Hence, the proper migration tool will be selected for migrating the data from existing payroll system to the cloud based payroll system.
- Selection of storage options – Various options are available from different cloud service providers however, it varies with respect to cost, durability, latency, availability and other factors (Othman et al. 2017). Hence, those options will be compared with respect to requirement before selection of the service provider.
The implementation of the cloud based payroll system will make the existing process simple and reduction in wastage of time. The activity diagram has been presented below to demonstrate the steps that will be followed for reducing the time consumed in payroll process of the organization.
Figure 4: Activity Diagram for the Cloud based Payroll System
(Source: Created by Author)
Hence, the current payroll system could be easily migrated to cloud based solution by following the mentioned steps. The steps have to be analyzed carefully and followed prior to implementation of the cloud based payroll system.
Conclusion
From the overall analysis and discussions, it can be concluded that a cloud based suite is required for current payroll system of the organization. The cloud based solution will help the organization to fulfill their requirements along with other additional benefits. It has been identified that the SaaS (Software as a Service) is the best suited solution for the organization so that they could manage the existing processes effectively. The implementation of SaaS based payroll system will provide the organization with additional features such as data analysis by location, such as employee role pay rate comparison and benefits management. In the redesigning section, the discussions are provided with the help of some UML diagrams to demonstrate the modifications that will be done in the current payroll system. The benefits as well as drawbacks of the cloud based payroll system has been presented well in this report. The important facts that have to be taken into consideration are also illustrated as the employees have concern over potential security issues upon implementation of the new system.
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