Improving the payroll system of a virtual organization

• Main Author: Paguio, Ma. Clarisse D.
• Format: text
• Language: English
• Published: Animo Repository 2020
• Subjects: Payrolls—Computer programs; Benefits and Compensation
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6029; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/13144/viewcontent/Paguio_edited.pdf
• Institution: De La Salle University

This action research addressed the issues attributable to the payroll system of a virtual organization. The issues were determined to be process inefficiency, payroll errors, and incurrence of additional bank charges. After conducting a root cause analysis with the Payroll team, we were able to drill down on two core problems: the existing payroll system is highly manual, and there are bottlenecks in the process. By utilizing appropriate action research tools and performing a Gap Analysis, the collaborators worked closely together to arrive at a plan to automate the system. The first cycle dealt with adopting an online banking platform that would allow us to send salaries to our employees electronically. It involved several meetings, processing of paper works, and back and forth communication with the bank. By automating the payroll crediting system, we were also able to eliminate the major bottleneck that had a significant impact on the workflow. The outcome of Cycle 1 is reflected in a faster payroll cycle, fewer processing errors, and lower bank charges. The second cycle dealt with the issues inherent to the automated system. As with any online banking platform, the new system is prone to processing delays, downtimes, and transactional errors. The collaborators used a Decision Tree Matrix to identify which issues can be mitigated on our end, and which issues are completely outside our control. The outcome of Cycle 2 is the creation of control measures in case a system disruption would occur. In managing these changes, the collaborators used the Satir Change Model. This framework was applied to each step in the cycles not just to document the progress of the project, but also to capture the human factors, i.e., emotions, reactions, whims, and frustrations. Overall, this action research significantly improved the payroll system of the organization while strengthening team collaboration and individual reflection.