CHAPTER 15 THE HUMAN RESOURCES MANAGEMENT/PAYROLL CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS This chapter noted many of the benefits that can arise by integrating the HRM and 15.1 payroll databases. Nevertheless, many companies maintain separate payroll and HRM information systems. Why do you think this is so? (Hint: Think about the differences in employee background and the functions performed by the HRM and payroll departments.) Payroll and HRM systems are separate in many companies because integration was generally not feasible using early data processing technology. Also, different events generate data and two different professions were interested in using the data. As a result, many companies (and their employees) became accustomed to having payroll data processed by the accounting function and personnel data processed by the human relations function. Now that modern information technology makes integration more feasible, employees in some companies are still likely to resist suggestions for change because they are comfortable with the old way of doing things. In addition, employees within the accounting and personnel functions probably feel some degree of "ownership" of "their" data, and this is taken away when control of these data is transferred to a centralized data base function. Reasons for integrating the personnel and HRM systems include the following: Integration will improve decision-making by providing access to more of the relevant data needed for monitoring employee development. It is logical, both systems are organized around the same entity: the employee. It should facilitate the retrieval and utilization of employee data when the data required would otherwise have to be obtained from both data bases. It should facilitate the process of updating employee data, since a single update process would replace two separate updating processes. It should simplify the development and implementation of more complex compensation schemes, such as flexible benefits or incentive pay. Centralizing the administration of employee data under the control of database management software should enhance data security. It should minimize or eliminate the cost of storing identical data in two different databases. It should minimize or eliminate the confusion that might otherwise arise when two different databases use different data definitions, or report different values, for the same data item.
CHAPTER 15 THE HUMAN RESOURCES MANAGEMENT/PAYROLL CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 15.1 This chapter noted many of the benefits that can arise by integrating the HRM and payroll databases. Nevertheless, many companies maintain separate payroll and HRM information systems. Why do you think this is so? (Hint: Think about the differences in employee background and the functions performed by the HRM and payroll departments.) Payroll and HRM systems are separate in many companies because integration was generally not feasible using early data processing technology. Also, different events generate data and two different professions were interested in using the data. As a result, many companies (and their employees) became accustomed to having payroll data processed by the accounting function and personnel data processed by the human relations function. Now that modern information technology makes integration more feasible, employees in some companies are still likely to resist suggestions for change because they are comfortable with the old way of doing things. In addition, employees within the accounting and personnel functions probably feel some degree of "ownership" of "their" data, and this is taken away when control of these data is transferred to a centralized data base function. Reasons for integrating the personnel and HRM systems include the following: Integration will improve decision-making by providing access to more of the relevant data needed for monitoring employee development. It is logical, both systems are organized around the same entity: the employee. It should facilitate the retrieval and utilization of employee data when the data required would otherwise have to be obtained from both data bases. It should facilitate the process of updating employee data, since a single update process would replace two separate updating processes. It should simplify the development and implementation of more complex compensation schemes, such as flexible benefits or incentive pay. Centralizing the administration of employee data under the control of database management software should enhance data security. It should minimize or eliminate the cost of storing identical data in two different databases. It should minimize or eliminate the confusion that might otherwise arise when two different databases use different data definitions, or report different values, for the same data item.
rais12_SM_CH15.docx