Benefits of Integrating Human Resources Management (Hrm) and the Payroll Databases

Topics: Human resource management, Human resources, Integral Pages: 3 (892 words) Published: November 26, 2011
Benefits of Integrating Human Resources Management (HRM) and the Payroll Databases.

The Human Resources Management and Payroll are completely different business processes; however, they depend on each other for accurate and timely flow of information for their business operations. Integrating these two process will ensure that the information flow between them is timely and less erroneous. The benefits of such integration includes but not limited to: (a) No duplicate data entry: Integrating HRM and Payroll processes means maintaining a common database. Therefore, any changes made to any aspect of the database are entered only once. There will be no need to make a duplicate entry of the changes. This eliminates errors that may occur due to multiple entries. (b) Less paper work: Having a common database reduces unnecessary paperwork and greatly reduces input errors. © Integrated Reporting: Integrating the HRM and Payroll makes room for automatic update of employees’ records. With integrated reporting tools, consolidated reporting can easily be generated and containing an up to date employee information, benefits, data, and compensation data.

2. The current problems related to labor at Fargo Publishing (a) Fargo Publishing still uses the traditional punch clocks to track employees’ time in and out of work. With this system, the company looses lots of money when employees arrive late to work, leave early from work, and then resort to “buddy clocking” that is clocking for other people. Employees are paid for hours not worked, and productivity is greatly affected. (b) Employees time data are manually inputted into the payroll computer by checking the time cards. The problem with this process is that there is high risk of input errors obtainable when manually inputting the data for 250 hourly workers. Manually inputting these data is time consuming and delays update to necessary master files. © Too Many paper work: There is too many paper work involved...

References: Chestnut, R. (n.d). Traditional Punch Clocks Vs Biometric Time Systems. Retrieved
November 16, 2010 from,
Romney, M.B. & Steinbart P.J. (2009). The Human Resources Management and Payroll
Cycle. In Strayer University 2010 Custom Edition, Accounting Information Systems
(pp. 497-517). Upper Saddle River, New Jersey: Prentice Hall.
Sinh, M. (2010). Integrating HR and Payroll – Key Considerations and Benefits for
Companies. Retrieved November 16, 2010 from,
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