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CHAPTER I

INTRODUCTION

1.1 Background of the Study

A network-based payroll system provides accurate accounting of the funds provided or

paid to employees for work or services performed. Without this system the establishment would

have difficulty in accounting for payments for services or work performed by employees. One

benefit of a payroll system is in the tracking of employee productivity in the work environment.

This makes it easier to determine who is performing at their fullest and those who are failing in

productivity as shown on the Human Resources records or through similar methods of

monitoring productivity.

The name Bacoor was reportedly derived from the Tagalog word “bakod” or “bacood”

meaning “fence” since Bacoor, during the early Hispanic era, was a suburb of Parañaque

characterized by dense bamboo groves from Zapote to Talaba and separated the old landholdings

of Parañaque and Kawit. Two years after the influx of the first settlers from the bustling pueblo

of Parañaque, in 1671, Bacoor became a separate municipality. The municipality of Bacoor is

noted in history as the first capital of the Revolutionary Government under General Emilio

Aguinaldo. A historical landmark in our forebears’ quest for Philippine Independence was the

hard-fought Battle of Zapote Bridge on February 17, 1897. “Gargano” was the revolutionary

name given to Bacoor. The Bacoor Municipal Hall has a 40 department and the employee is

more than 200 of regular employees and more than 100 for the casual and OJT. The employees

who are working there also have other deduction like SSS, Phil Health, Pag-ibig and other
government taxes. The process of their manual system to organize records for their employee’s

of each department for their payroll system.

Our motivation on their existing system is to improve it, secured the backup files and

records. Because, this factors will lead to faster, shorter and lessen of processes and organized of

important data. Our focus is become user-friendly to the user, effectiveness, simplicity, accuracy

and attractiveness.

1.1 Statement of the Research Problem

In this modern day, the Bacoor Municipal Hall is still using a manual system for their

payroll system and keeping track of their previous records. Still having a manual system can

prove useful, but, as for a country in which effectiveness and time is a golden factor, a

computerized network-based payroll system, and the Municipal hall can operate with much

more ease and store/speed-up information. These are the problems that the municipal hall

having right now. Because of manual system it consumes a lot of time than usual, due to

modernization today, effectiveness of a system is also measured by its time and effectiveness

while producing a report, the manual system they are using makes it hard for the accountants

to effectively search, edit, and produce reports through a vast amount of data. Following this,

also, inconsistencies cannot be resolved effectively and immediately- the municipal hall, in

which each department is away from another, one department, cannot simply comply to the

accounting departments needs immediately. Errors in computation of payroll are most likely

to happen, since the payroll officer that is assigned is prone to make some mistakes in

computation because of the computation system being manual. Files and database are not
secured and the present system does not have a back-up and can restore files in case of lost of

data. Inconsistencies cannot be resolved effectively and immediately because the municipal

hall, in which each department is away from each other, one department cannot simply

comply to the accounting departments needs immediately in case of sudden report requests.

1.2 Statement of Objectives

1.2.1 General Objectives

To develop a network-based payroll system for Bacoor Municipal Hall, that is

user-friendly, more accurate, more efficient, and can easily produce reports of the

transactions faster.

1.3.2 Specific Objectives

In order to fulfill our objective, we will observe the ff:

• To conduct an interview about the current payroll system.

• Observed how the current payroll system performs the operations.

• To identify the different problems of manual payroll system.

• To help the municipal hall and the employee to make their work faster and shorter.

• To identify problems in using the system through data flow diagram.

• To design a new system based on the new DFD.


• To conduct training for the users that will use the system.

• To implement the system by equipment conversion, file conversion and system

conversion.

• To test if the new system is working.

• To give questionnaires to the employees.

1.3 Significance of the study

This study/analysis is to have better service for the employee and less error of their payroll

system, the municipality, employee, proponents and other person who involved this system will

also have benefits from our propose system. The Accountant will also benefit from this system

this will help them to have a faster way of retrieving and updating of employee’s records. The

municipality will benefit from this system, this will help them to have better service, to update

their record easily and this can also keep track of the performance of their employee. The

manager or the department head will benefit from this system because of this will make checking

of employees, their payroll, and even attend to their needs in case of problems.

1.4 Scope and Limitation of the Study.

The scope of the study covers the individual information of the Municipal

employee’s. It includes the generation report in the backup files such as employee and

salary record. The study focuses in processing of payroll system of the employee’s. Its

concern is the computation of employee’s salary and produce report needed by the

accountant especially on each employee’s payroll. It secured also with log-in and log-out

from our proposed system and which can be access only authorized person. It has
maintenance for record of employee and salary which can be maintained by adding,

deleting, updating all the needed transaction in the system and may the employee can see

his/her own standing of their performance anytime and it will compute the proponents

system the payment such as their deduction and bonuses.

1.5 Methodology

V – Model is a variation of the waterfall model that demonstrates how the testing

activities are related to analysis design. By using the V-Model methodology, we can ensure

that steps will and must be well defined and validated. To ensure the validation of the stages,

the activities done on each stage are enumerated to know what has been accomplished and

what activities are needed to be done.

Requirement Acceptance Testing


Analysis

System Testing
System Design

Program Unit Testing


Design

Coding

Figure 1, V-Model

1.5.1 Requirement Analysis, in this phase, the proponents try to find out and analyze the need of the

user of the proposed system. An extensive study through interviews with the each of the
department’s current employees and head about the current manual system, research how they

compute employee salaries, and observation of how they are currently making use of the system

regarding the existing manual system was done, to be able to determine processes that need

improvement. This phase would help the proponents to enhance and develop a system suitable to

the everyday activities of the vicinity. And to help the proponents discover new ideas in

improving the system for better and faster transaction.

1.5.2 System Design, this is determined after studying the business aspect of the system. The proponent

realizes what should be done to fulfill the requirement/s in order to implement the proposed

system. The hardware and software requirements which will make the proposed system run

efficiently. The language to be used whether it may be coded on Java, C#, etc. The kind of

database where files are to be stored. And other files structures needed in building the system

were identified.

1.5.3 Program Design, in this phase, how the business runs was analyzed by examining the flow of

everyday activity of the company. And by normalizing the municipal hall’s data by inputting it in

a SQL database and all of the needed information will hence produce the output of this analysis is

development of the system that would completely combine with the flow of business.

1.5.4 Coding, this phase allows the proponents to input program code for the proposed system and

install the system in the establishment. The kind of coding will vary depending on what language

will the proponents will use. This is the most part wherein most of the proponents’ time will be

consumed. This is due to the fact that this is the essential part of the system. Because this is where

all computations are being done, processed, and what kind of system will be the outcome.

1.5.5 Unit testing, this phase addresses the correctness of programs through running some

computations from inputted data or from the created database


1.5.6 System testing, this phase includes running tests for the system. This is to determine if the

program can really help the establishment. The test ranges to see if the encoding has improved,

computation. The testing will take place after the proponents are done coding and analyzing the

requirements of the establishment. Thus, this is to ensure to the Municipal Hall that the each

model/module of the proposed system is highly efficient and will meet their demands.

1.5.7 Acceptance testing, this is the phase where in the users of the program will begin to use the

installed system. To is also to see if there are any problems that the user will encounter. This

phase is mainly to see if the user is comfortable using the newly installed system. Any errors that

were occurred when the user used the system are subject to change immediately. Most of the

inconvenience that the user has encountered are done and changed through maintenance.

1.5.8 Operation, Maintenance and Implementation, this is the final phase where all the other phases are

checked. Any revisions or alterations in the program are done in this stage so as to perform

efficiently. This phase includes training of the users of the new system and planning for better

ideas to improve the ease of the interactions between the users/employees and the new system.

Once all errors have been solved and the system has been improved the program is then ready for

implementation and use.