52114271 payroll managment

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CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION

Payroll management system encompasses all the tasks involved in paying an organizations

employees. It typically involves keeping track of hours worked and ensuring that employees

receive the appropriate amount of pay. It also includes calculating taxes and social security,as well as ensuring that they are properly withheld and processed. Depending on the

company in question, a full range of other deductions may be calculated, withheld, and

processed as part of payroll administration. Additionally, the processing of contractor

payments may fall under the umbrella of payroll administration.

The specific tasks involved in payroll administration tend to vary according to the needs of

each unique company or organization. For example, some companies have workers that

receive commissions in addition to salaries. In these companies, including commissions in

employee salaries is a part of payroll administration. For some companies, it also involves

assigning exempt or non-exempt status to workers, adding bonuses into paychecks,

calculating overtime payments, and adhering to applicable employment laws.

Handling payroll-related problems are part of payroll administration as well. If an employee

is paid an incorrect amount or a direct deposit fails to go through, both things are payroll

administration issues. Likewise tax filing and deduction errors are payroll administration

matters as well.

Payroll administration can be very simple, involving the payment of just a handful of

employees, or very complicated, involving payroll for thousands of employees and

contractors. In some, very small companies, payroll may be handled by the owner of the

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company or an employee. However, other companies may have many employees to pay and

keep track of necessitating a well planned, efficient payroll administration system.

Some companies choose to handle payroll administration in-house, often creating a separate

department just for the handling of payroll. Often, such organizations purchase software to

streamline payroll-related tasks. Some companies even have special software designed for

them, creating a payroll system that is tailored to their unique requirements.

Many companies decide to outsource payroll administration to other companies. Payroll

administration companies handle most, if not all, payroll-related tasks for the companies

they serve. Some payroll administration companies also provide management and human

resource assistance as well. Many payroll administration companies tailortheir services to

meet the needs of organizations of all sizes and types. Some even offer on-site help and

payroll consultations as well.

Payroll is defined as a method of administrating employees salaries in the organizations. The

process consists of calculation of salaries and tax deductions of the employees,

administrating the retirement benefits and disbursements of salaries to employees. It can also

be called as an accounts activity which undertakes the salary administration of employees in

t h e o rgan i za t i on . Administrating the employees salaries is not an easy task, the HR and

accounts department work together to calculate and disburse the salary to the employees.

Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll

accounting and payroll administration. Payroll refers to the administration of employees'

salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee

name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus,

commissions, incentives, pay for holidays, vacations and sickness, value of meals and

lodging etc. There are some deductions such as PF, taxes, loan installments or advances

taken by employee.

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PAYROLL IS ADMINISTERED ON MONTHLY BASIS AND ANNUAL

BASIS.

While administrating the monthly payroll basic salary, HRA, conveyance, and other special

allowances such mobile, etc are considered. There are some deductions.

Allowances, incentives, bonuses and reimbursements are based on organizational policies.

Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic

salary. Some organizations go for performance based incentives.

PAYROLL MANAGEMENT PROCESSES

Calculation of gross salaries and deductible amounts is a tedious task which involves risk.

Some of the organizations use the traditional manual method of payroll processing and some

go for the advanced payroll processing software. An organization opts for any of the

following payroll processing methods available:

a) Manual System:- Manual payroll system is the traditional payroll system which involves

pen and ink, adding machine, spreadsheet, etc instead of computers, software and other

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Employee Insurance & Provident fund processing

Quality Audit procedures & planning

PAYROLL SOFTWARE SYSTEM:-

Effective software systems contain two basic systems operating in conjunction: an

evaluation system and a feedback system. The main aim of the evaluation system is to (if

any). This gap is the shortfall that occurs when performance does not meet the standard set

by the organization as acceptable. The main aim of the feedback system is to inform the

employee about the quality of the software provided by the organization. (However, the

information flow is not exclusively one way. The Technology team also receives feedback

from the employee about software problems, etc.)One of the best ways to appreciate the

purposes of performance appraisal is to look at it from the different viewpoints of the main

stakeholders: the employee and the organization.

a) Employee Viewpoint:- From the employee viewpoint, the purpose of software

used to calculate payroll process as it help to improve software skill and reward

the employees according to their performances.

b) Organizational Viewpoint:- From the organization's viewpoint, one of the most

important reasons for having a software is to establish and uphold the principle of

accountability.

.

For decades it has been known to researchers that one of the chief causes of organizational

failure is "non-alignment of responsibility and accountability." Non-alignment occurs

where employees are given responsibilities and duties, but are not held accountable for the

way in which those responsibilities and duties are performed. What typically happens is

that several individuals or work units appear to have overlapping role.

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The overlap allows - indeed actively encourages - each individual or business unit to "pass

the buck" to the others. Ultimately, in the severely non-aligned system, no one is

accountable for anything. In this event, the principle of accountability breaks down

completely. Organizational failure is the only possible outcome

In cases where the non-alignment is not so severe, the organization may continue to

function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned

organization may run, but it will be sluggish, costly and unreliable. One of the principal

aims of performance appraisal is to make people accountable. The objective is to align

responsibility and accountability at every organizational level.

ROLE OF HR IN PAY ROLL MANAGEMENT SYSTEM:-

Earlier payroll was considered to be a part of account department and there was no direct

interface between Account and H.R. department related to pay roll management system.

Performance appraisal of an employee was more ritual and done irregularly in an

organization and that performance not related to pay.

In countries like US, even before 15 years Payroll was treated as part of the Compensation

& Benefits Management, which is basically HR function. Payroll, as you can see, is only

an event, which is happening at a frequency as may be stipulated by the country/company

rules, and is guided by the policy on Compensation & Benefits Management program of

any company. Other countries gradually adopted the concept.

Payroll is also a sensitive matter as employees may have queries when they receive their

payslips. Not to generalise, Accounts personnel are not very much the right persons to have

the kind of human relations skills to answer such queries with empathy and patience. So,

Payroll also became a matter of human relations over years when employees mattered .

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Another reason is the salaries have become more and more linked with employee

performance and retention with a substantial part of salary paid as performance-linked

incentive. Performance Management being the HR function, payroll management in a

performance-oriented reward system has become HR function.

Accounts department mainly performs a control function and is therefore made as

bottleneck. A bottleneck approach is not the right approach when you need to reward

people's performance in a dynamic business environment. So, the payroll function has been

transferred to HR to make it stay nearer to the people of the organization so as to respond

quickly to the employees' queries and performance. Of course, Accounts will ultimately

monitor the expenses and give their advice regarding any lapse in controls through audit

and other tools.Beside this H.R. have certain responsibilities as an Pay roll administration. such as:-

a) HR administration - setup customer employees' profile, verification of data and

ensure up-dated information on employees records

b) Attendance verification and seeking approval

c) Leave management

d) Payroll processing, verification, management and reporting

e) Perform statutory administration, contribution, reporting and others

f) Perform customer liaison, project implementation and setup

g) Handling customer inquiry, customer employees' registration and others and take

immediate action to rectify the complaints.

1.2 OBJECTIVE OF THE STUDY:-

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The project aims at the study of the Pay Roll Management System and it effectiveness in the

organization. Pay Roll System is the most indispensable tool for the management of an

organization as it credibility, accountability and proper functioning influence the working of

Employee as well as the productivity of an organization. There has been tremendous growth in

the number and size of multinational companies today, leading to significant challenges in the

areas of human resources and payroll system

Thus the broad objective of the study is:-

a) Identify the HR role in Payroll system and thereby to analyze the interface level

between account and H.R. department in the organization.

b) Effectiveness of the software used in payroll system in an organization.

c) To establish the internal control for the pay roll cycle by the H.R. department which

ensure an adequate segregation of duties, proper authorization of transaction, an

accurate and timely recording of expenditure.

d) To critically analyze the satisfactory level of employees using this software in

organization.

e) To analysis whether these softwares are user friendly and to analyze the accuracy and

accountability of the pay roll management system in Indigo Airline.

Reason for the study: - Payroll incorporates components of both human resources and

finance. From data-gathering to compiling, the payroll process includes calculations and

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reporting as well as integrating the data back into the organizationThe following are the needs to

do the research at Indigo Interglobe Aviation Pvt. Ltd.

1. To understand the interface level between Account and H.R.department in anOrganization in the pay roll management system in Indigo Airline.

2. The management was in the position to know whether the existing software

system used is effective or not.

3. To measure the satisfaction level of the employees using the software.

4. To obtain the feedback from the employees which enable further improvement in

existing software system.

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1.3 RESEARCH METHODOLGOY

a) RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure. The

most significant decision is the choice of research approach, because it determines how the

information will be obtained. The choice of the research approach depends on the nature of the

research that one wants to do.

The research design adopted for this study is Exploratory Research. Exploratory research focuses

on collecting data using an unstructured format or informal procedures to capture data and to

interpret them. It is often used to classify the problems or opportunities and it is not intended to

provide conclusive information from which a particular course of action can be determined.

b) SAMPLING TECHNIQUE:

The next step in research study after collecting data is the sampling process. When a decision is

made to use the sample, a number of factors must be taken into consideration. The various steps

involved in the sampling process are:

Identifying target population

Determining sample frame

Selecting sampling procedure

Determining sampling size

Execute sampling

Obtaining information from respondent

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Generate information for decision making

The target population in this study was the ground staff of Indigo Airline belonging to different

department. The sampling technique had to be selected. There are two types of samplingtechniques:-

Probability sampling

Non-probability sampling

For the purpose of our study among the probability sampling, the sampling used in this study was

stratified sampling.

c) STRATIFIED SAMPLING

If the population from which a sample is to be drawn does not constitute a homogeneous group,

then stratified technique is applied so as to obtain a reprehensive sample. In this technique, the

population is stratified into number of non-overlapping sub populations or strata and sample

items are selected from each stratum. If the items selected from each stratum is based on simple

random sampling, the entire procedure, first stratification and then simple random sampling is

known as stratified sampling. The stratified sampling results in a more reliable and detailed

information. The researcher uses simple random sampling for selection of items from each

stratum.

d) SAMPLE SIZE

The population covered for the present study consisted of employee belonging to supervisory and

the level above. For the purpose of this study, survey covered the employee ofINDIGO LTD.

falling under supervisor and the level above. The study covered a sample of 50 employees.

e) DATA COLLECTION APPROACH

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There are several ways of colleting the appropriate data. While deciding about the method of

data collection to be used for the study, the researcher should keep in mind, that there are 2 types

of data.

1. Primary data

2. Secondary data

Primary data are those which are collected a fresh and for the first time and thus happen to be

original in character. Primary data can be collected either through experiment or through survey.

Secondary data are those which are collected from the published article, books, journaletc.

Primary data can be collected either through experiment or through survey.

The secondary data on the other hand are those which have already been collected by someone

else and which have already been passed through the statistical process. In this study, the data

was collected from the primary source through interview schedule.

f) STATISTICAL TECHNIQUE

This phase consists of the data analysis of the data collected based on the stratified simple

random probabilistic sampling technique. The data collected were analyzed using the percentage

analysis which involve the number of responses of each category is summarized to percentage

format and bar chart used to critically analyze the data and further data interpretation was done.

CHAPTER-2CHAPTER-2

COMPANY PROFILECOMPANY PROFILE

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2.1 INTRODUCTION2.1 INTRODUCTION

Indigo InterGlobe Enterprises is an integrated travel corporation spanning various

domains: aviation management, domestic low cost airline, travel technology, travel

distribution services, hotel development and management services and general aviation.

Established in 1989 and headquartered in Gurgaon, India, InterGlobe Enterprises has been

adjudged as one of the Best Companies to Work for in India, for 2008 and 2009 by the

Great Place to Work Institute, in partnership with The Economic Times.

InterGlobe has a network of 52 offices across 23 cities in India and strategic overseaslocations in SriLanka, USA, UK, Malaysia, Singapore, Philippines and Australia. The

enterprise employs close to 6000 professionals across its businesses, which include IndiGo

Indias fastest growing low-cost airline; Airline Management for 14 international airlines;

Distribution of GDS; Travel Technology; Development of Hotels in partnership with Accor of

France - owner of brands such as ibis, Sofitel, Novotel, Mercure and Pullman; and InterGlobe

General Aviation, which represents and services the entire line of HawkerBeechcraft and

Sikorsky products.

The enterprise is committed to delivering outstanding value to its stakeholders through its

passion for quality and innovation.

According to Rahul Bhatia, Group Managing director Interglobe Enterprises Limited, the

travel industry in India is buoyant with an ever changing and dynamic environment. At

Interglobe Enterprises, we have 360 degree approach to providing end to end solution to the

travel industry.

2.2 HISTORICAL BACKGROUND

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With a clear vision, conviction and complete faith in its people, Interglobe Enterprises

continues to constantly change the landscape of travel, technology, aviation and hospitality,

with a dynamism that seems to grow only with passing time.

In 1989 Interglobe Enterprises ( IGE) set up Interglobe Air transport (IGAT). Later it becomes

the National Distribution Company for Galileo International & Global Distribution System

distribution. Later it expand its business activities in the field of aviation, technology and

hospitality sector. Established in 1989, InterGlobe Enterprises is a travel corporation with a

vision to deliver value to its stakeholders, clients and customers through dedicated business

units that perform specialist roles. The organization has been serving the travel industry for

the past four decades and has become a diversified international corporation in the areas of

Aviation Management (InterGlobe Air Transport), Domestic Airline (IndiGo), Travel

Technology (InterGlobe Technologies), Travel Distribution Services (InterGlobe Technology

Quotient), Hotel Development & Management Services (InterGlobe Hotels) and InterGlobe

General Aviation. Headquartered in Gurgaon, India, InterGlobe Enterprises comprises of

around 7500 professionals.

2.3 INTERGLOBE AVIATION PRIVATE LIMITED

InterGlobe operates IndiGo, Indias leading domestic low cost airline. IndiGo is the

youngest fleet of aircraft in the country. It offers a uniquely smooth, seamless, precise and

gimmick-free customer experience at fares that are extremely affordable.

Indigo is built for the people with things to do, place to be people to see-who dont want to

waste time, money or energy in the process. By minimizing time/cost/tension of air travel,

Indigo opens up a country full of opportunities.

One of the prominent offerings of our aviation portfolio is IndiGo airlines. A low-costdomestic carrier, IndiGo has a fleet of brand new Airbus-A320 aircrafts and currently operates

daily flights connecting all major destinations in India. IndiGo stands for three things:

Affordable Fares, On-Time performance and a Hassle-Free flying experience.

2.4 MANAGEMENT BIOS OF INDIGO

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a) Mr. Aditya Ghosh, President

Mr. Ghosh sits on the Board of IndiGo and was key to its launch. As the President of IndiGo,

Mr. Ghosh has the overall managerial and operational responsibility of IndiGo.

Mr. Ghosh is also a key member of the Leadership Team of the InterGlobe Enterprises which is

the body that is responsible for the management of the Enterprises various businesses which

span a wide range of activities while staying true to the core competency of the travel domain.

Mr. Ghosh plays an instrumental role in the management of the Groups affairs and advising on

and formulating growth strategies of the InterGlobe Group. Prior to assuming his role as the

President of IndiGo, Mr. Ghosh served as the General Counsel for the entire InterGlobe

Enterprise.Mr. Ghosh is a member of the Executive Council of the Federation of Indian Airlines.

b) Mr. Riyaz Peer Mohammed, Chief Financial Officer

Mr. Peer Mohammed joined IndiGo in March 2006 and is responsible for finance.

Prior to joining IndiGo Mr. Peer Mohammed was Senior Vice President Corporate Treasury

for Emirates Airlines and was responsible for treasury, corporate finance, management accounts,

budgeting, cost control and business finance.

Previously Mr. Peermohammed held the position of Corporate Treasurer of the Emirates Groupand was the Aircraft Financing Manager responsible for aircraft acquisition and lease

arranging.Mr. Peer Mohammed holds a Bachelor of Science from Bombay University, is a

Chartered Accountant and a Chartered Financial Analyst.

c) Mr. Sanjeev Ramdas, Vice President: Customer Services & Airport Operations

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Mr. Ramdas joined IndiGo in October 2005 and is responsible for customer services and airport

to perations.Prior to joining IndiGo Mr. Ramdas was Director of Airport Services at InterGlobe

and managed the airport operations of InterGlobes airline partners. Mr. Ramdas has been

responsible for airport operations, aircraft handling, customer services, emergency response

procedures, safety, contract negotiations, GSE purchasing, service level agreements and cargo.

Previously Mr. Ramdas worked for Cambata Aviation Pvt. Ltd., Scandinavian Airlines, Tarom,

Turkish and Delta Airlines .Mr. Ramdas holds a Bachelor of Commerce degree (with Honors)

from Delhi University and a Post Graduate diploma in Personnel Management and Industrial

Relations.

d) Mr. K.S. Bakshi, Vice President: Human Resources

Mr. Bakshi joined IndiGo in December 2006 and is responsible for human resources.

Prior to joining IndiGo, Mr. Bakshi was the General Manager HR for Bharti Airtel Ltd., Broad

Band & Telephone Services NCR in Delhi. He has over 14 years experience in human

resources management, with a special emphasis on building and improving HR processes and

systems and on the acquisition, management, development and retention of talented employees.

He worked on various projects in the areas of leadership competency, employee engagement and

managing performance. Mr Bakshi holds a Post Graduate Diploma in PM & IR from XLRI,

Jamshedpur.

e) Mr. Vineet Mittal, Vice President: Financial Planning & Analysis

Mr. Mittal joined IndiGo in October 2005 and is responsible for financial planning, taxation,

accounting and purchasing. Prior to joining IndiGo Mr. Mittal was a project manager at

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InterGlobe responsible for the IndiGo project. Previously Mr. Mittal worked for Royal Airways

as Revenue and MIS manager and was responsible for revenue auditing and analysis. Prior to

joining Royal Airways Mr. Mittal worked with DLF Universal as Deputy Manager Accounts

and was responsible for accounting procedures, taxation compliance and capital management.

Mr. Mittal began his career as a statutory and general auditor with Ernst and Young.Mr. Mittal

holds a Bachelor of Commerce from Hansraj College, Delhi University and is a Chartered

Accountant from the Institute of chartered accountants of India. Mr. Mittal is also a graduate of

cost accountancy from the Institute of cost and work accountants of India.

f) Mr. Amit Khandelwal, Vice President: Planning and Revenue Management

Mr. Amit Khandelwal joined IndiGo in February 2007.In an airline career spanning almost 15years, Mr. Amit Khandelwal has worked on various assignments in the areas of Business

Development, revenue strategy, and program management in the aviation industry, consulting &

IT-enabled services. Prior to joining IndiGo, he worked with Go Air, United Airlines, PROS

Revenue Management. and NIIT. He holds a B.E. from BITS, Pilani and an M.S. (Operations

Research & Management) from the University of Texas.

g) Namrata Singh, Associate General Counsel

Namrata is the Associate General Counsel of IndiGo and heads its legal and corporate affairs.

She started her legal career with a reputed law firm in New Delhi, where she was involved with

the whole gamut of corporate and business laws.

She joined InterGlobe Enterprises Limited as Legal Counsel in 2005. During her association with

InterGlobe, she played an integral role in the management of the Groups legal affairs and

advised several of the Group companies and was assigned to advice on the new venture of the

Inter Globe GroupIndiGo. She holds a Bachelors degree in Law from Symbiosis Societys

Law College, Pune.

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2.5 INDIGO FACTS

A brand new fleet of 24 Airbus-A320s with single class seating with 161 daily flights,

IndiGo flies to as many as 20 destinations all over India

The largest low-fare domestic airline with 13.9% market share (as of Aug 09)

The highest technical dispatch reliability in India: 99.91% since launch

Industry leading on- time performance in the domestic market

First domestic low cost airline to have CAT III compliant pilots

Several industry first initiatives like web check-in, mobile bookings, queue busters, step

less boarding ramps, air-conditioned tarmac coaches.

High asset utilization, fast turn-around and optimum resource utilization

Awarded the Best Domestic Low-Cost Carrier 2008 by Galileo Express Travel World

Awarded the Best Low Cost Carrier 2009 by CNBC AWAAZ Travel Awards

2.6 INTERGLOBE ENTERPRISES THIRD CONSECUTIVE WIN A

INDIAS BEST PLACE TO WORK

New Delhi, June 24, 2010: InterGlobe Enterprises a leading aviation, travel technology and

hospitality company has been awarded the "Best Place to Work For" award by Great Place

to Work institute in Mumbai for the third consecutive year. In addition, this year InterGlobehas also been awarded the top spot as The Best Company in the Transportation

industry.

With a worldwide presence for over 20 years, Great Place to Work Institute has been known

for its excellence in studying and recognizing best workplaces globally. This year, they had

more than 400 companies participating in the study and only 50 organizations were short

listed for the Best Companies to Work For list.

Speaking on this, Mr. Michael Whitaker, Group CEO, InterGlobe Enterprises, said, We

are humbled by the recognition. We at InterGlobe Enterprises strongly value our employees

and believe in communicating at all levels and through a variety of modes. This award brings

with it an immense responsibility to further dedicate ourselves in making InterGlobe a world

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class organization with bestin class business and people practices. But most importantly,

this is the time to celebrate this proud moment and the quintessential spirit of One Team

One Dream.

2.7 INDIGO STANDS FOR THREE THINGS:-

a) Affordable rates

b) Timeliness

c) Hassle free

2.8 OPERATIONAL STATISTICS OF INDIGO AIRLINES

Indigo Airlines have outperformed the industry with sound operations , they have

transported ~16 m passengers since inception.

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2.9 RISK MANAGEMENT

IndiGo is the first and the only airline in India to cover the Threat and Error Management

(TEM) syllabus during initial as well as recurrent Crew Resource Management (CRM)

training Introduced flight data monitoring under Safety Management System (SMS). Flight

data exceedance grading system implemented based on severity of Occurrence, based on

exceedance grading report risk analysis carried out Special non punitive reports being

generated for monitoring SOP adherence by flight crew (introduced from 01-Jan-09).

At least one station audited each month by flight safety department Grading system for the

type of risk and mitigation strategies via continuous monitoring through training or

redesigning of programs. Retrained all stations in ramp procedures via safety presentations.

Regular safety updates from President to staff.

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2.10 PROACTIVE SAFTEY INITIATIVE

Hazard Identification

Risk Analysis

Risk Mitigation

Residual Risk Analysis

Risk Acceptability

Inspections

Ramp Safety Inspections

Pre Launch Station inspections

Internal Safety Audits

100% Flight data monitoring

Random CVR monitoring

Cabin Surveillance Inspection

Spot Checks

FDTL adherence monitoring

Weather Minima violation monitoring

Load and Trim checks

Awareness Promotion

Flight safety E-manual

Ramp safety awareness presentations.

Safety Information Advisories

Safety Information Bulletins

Pilot -Engineer coordination meetings.

2.11 CREW RECRUITMENT AND TRAINING

Fully staffed for current fleet of aircraft:-

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Expected pilot shortages eased on account of recent capacity reductions

Minimum ICAO level 4 proficiency in English

Simulator assessment check for IndiGo pilots in Bangalore (not required by the DGCA)

IndiGo pilot composition

a) Indian nationals: 280 (114 Capt/ 166 FO)

b)Expats: 28 Capt

IndiGo expat captains selection well above industry standards

IndiGo Indian national captains selection is also well above industry standards.

2.12 STRONG EMPHASIS ON TRAINING

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a) PILOT TRAINING

Captains training Qualified and Experienced Senior Co-pilots are taken through a

rigorous selection

Process for command upgrade. Thereafter they undergo 8 SIM sessions + 2 Skill test for

evaluation +

AWO training followed by 50 sectors of IOE, 10 line checks and after DGCA

endorsement one final

Release check.

Co-pilots training - Endorsement + 02 route checks + 10 sectors of IOE with TRE + .40

sectors of IOE

Followed by 2 sectors release check with TRE. IndiGo simulator and line training is done

by the Airbus

Instructors for standardization along with a SLF of 50 sectors

Expat pilots - At IndiGo expats undergo 4 familiarization flights + a minimum of 05

sectors of IOE

Covering critical and short fields + one line checks with TRI/TRE.

b) ENGINEERING

AACT training - employed by IndiGo. First time carried outside of Europe

IndiGo training department imparts recurring training (required under CAR145)

c) CABIN CREW

Ab Initio Training: 45 Days

Greater training duration than regulatory mandate

Pass Score % mandated by DGCA is 80% vs. IndiGo standard of 90%

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3 strike policy (3 failures resulting in termination)

2.13 THE INDIGO STORY

Highly profitable and fastest growing airline in India

Strong Cash flows

Comprehensive power by hour (PBH) and maintenance agreements

Strong Management

Superb Product quality recognized by the market place

Largest low cost airline in India

Industry leading on-time performance

99.91% technical reliability.

2.14 HR VISION

"To attain organizational excellence by developing and inspiring the true potential of companys

human capital and providing opportunities for growth, well being and enrichment".

2.15 HR MISSION

To create a value and knowledge based organization by inculcating a culture of learning,

innovation & team working and aligning business priorities with aspiration of employees leading

to development of an empowered, responsive and competent human capital

2.16 HR OBJECTIVES

a) To develop and sustain core values.

b) To develop business leaders for tomorrow.

c) To provide job contentment through empowerment, accountability and responsibility.

d) To build and upgrade competencies through virtual learning, opportunities for growth

and providing challenges in the job.

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d) To foster a climate of creativity, innovation and enthusiasm.

f) To enhance the quality of life of employees and their family.

g) To inculcate high understanding of 'Service' to a greater cause.

CHAPTER-3

PAY ROLL SYSTEM IN INDIGO AIRLINES

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The Payroll function of an organization not only ensures that employees are paid accurately

and on-time but also thrives to achieve optimum efficiency. Organizations are also striving to

reduce the operating costs of the payroll unction through automation and also be compliant

with all legal requirements. Payroll processing is the backbone of an organizations employee

operational and satisfaction focus.

Indigo pay roll solution ge ar ed to leverage global sourcing at each stage of the

transformation journey from process definition, process standardization, consolidation to re-

engineering. The solutions are designed to provide a robust, scalable and flexible delivery

engine that influences global skill and economies of scale and hat allows organizations to focus

on centers of expertise and business partnering.

Performance of this critical PS component is of vital concern considering the importance of the

output of the program and dependencies other systems may have to the timely completion of

the processing of the engine. Most important, it is a reputation concern for an organization to

be able to compensate its employees on time

Indigo uses its capabilities across consulting technology and with employees in the :-

a) Creation of the process delivery backbone

b) Development of underlying technology support

c) Comprehensive payroll service delivery from global delivery centre

Indigoprovides organizations with a platform to move away from legacy systems to a

State-of-the-art payroll system. Indigo provides the complete hardware and software

environment hosted within a secure data centre. Indigo also provides ongoing maintenance,

hardware and software helpdesk support and back-up activities.

INDIGO PAY ROLL STRUCTURE

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Indigo Payroll services include:

Hosting and Migrating

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o Hosting SAP on TCS' hardware and owning SAP Payroll licenses

o Migrating customers' payroll to TCS' platform

o Maintaining the SAP payroll application

o Implementing and maintaining the interfaces between payroll and customers'

HRMS, Finance, and other applications

Payroll Administration

o Build-to-Gross: Computing gross pay/earnings

o Gross-to-Net: Computing taxes, benefits, and other deductions

o Post-Payroll Activities: Generating Payroll/Finance files,

Operational/MIS/Statutory and tax reports, tax deposits/returns

Advantages of Indigo payroll system:-

1. Multi-process HRO practice built on sustainable model for delivering HR services in an

offshore centric model

2. Flexible and scalable delivery platform to partner with clients in their organic and

inorganic growth

3. Capability to deliver comprehensive seamless solutions through excellent cross service

collaboration across our HR Technology, Consulting and outsourcing practices

4. Leverage the deep domain understanding acquired and strengthened through Infosys HR

transformation

5. Focus on building HR professionals through training certification programs in

collaboration with external organizations.


administration companies handle most, if not all, payroll-related tasks for the companies they

serve. Some payroll administration companies also provide management and human resource

assistance as well. Many payroll administration companies tailor their services to meet the

needs of organizations of all sizes and types. Some even offer on-site help and payroll

consultations as well.

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administrating the retirement benefits and disbursements of salaries to employees. It can alsobe called as an accounts activity which undertakes the salary administration of employees in

the organization.

Payroll management system encompasses all the tasks involved in paying an organizations

employees. It typically involves keeping track of hours worked and ensuring that employees

receive the appropriate amount of pay. It also includes calculating taxes and social security,

as well as ensuring that they are properly withheld and processed. Depending on the













matters as well.




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Administrating the employees salaries is not an easy task, the HR and accounts department

work together to calculate and disburse the salary to the employees. Thus, payroll

management can be further subdivided into two sub processes, i.e. Payroll accounting and

payroll administration. Payroll refers to the administration of employees' salaries, wages,

bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of

joining, daily attendance record, basic salary, allowances, overtime pay, bonus,

commissions, incentives, pay for holidays, vacations and sickness, value of meals and

lodging etc. There are some deductions such as PF, taxes, loan installments or advances

taken by employee.

CHAPTER -4

LITERATURE REVIEW

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4.1 Introduction

Payroll management system encompasses all the tasks involved in paying an organizationsemployees. It typically involves keeping track of hours worked and ensuring that employees

receive the appropriate amount of pay. It also includes calculating taxes and social security,

as well as ensuring that they are properly withheld and processed. Depending on the













matters as well.








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administration companies handle most, if not all, payroll-related tasks for the companies

they serve. Some payroll administration companies also provide management and human

resource assistance as well. Many payroll administration companies tailortheir services to

meet the needs of organizations of all sizes and types. Some even offer on-site help and

payroll consultations as well.



administrating the retirement benefits and disbursements of salaries to employees. It can also

be called as an accounts activity which undertakes the salary administration of employees in

t heor gan i za t i on .

Administrating the employees salaries is not an easy task, the HR and accounts departmentwork together to calculate and disburse the salary to the employees. Thus, payroll

management can be further subdivided into two sub processes, i.e. Payroll accounting and

payroll administration. Payroll refers to the administration of employees' salaries, wages,

bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of

joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions,

incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There

are some deductions such as PF, taxes, loan installments or advances taken by employee.

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4.2 Major duties of HR in Pay Roll System

a) Ensures timely and accurate preparation of all Institution payroll operations and worksclosely with the Human Resources Office to ensure that payroll actions are in

conformance with employment and benefits practices and accounting procedures

b) Oversees preparation of all federal and state payroll tax reports, including quarterly and

year-end returns; determines taxability of non-wage payments and serves as in- house

contact for technical tax compliance issues, including tax liabilities of foreign nationals.

c) Interprets Institution employment policies and government regulations in connection with

payroll activities and makes recommendations on modifications to senior management as

appropriate

d) Handles federal and state agency audits and maintains close contact with ITI and

other regulatory agencies to ensure that the Institution has accurate information and is in

compliance.

e) Maintains all payroll records, reports, computations and audits, including periodic

internal audit tests of labor utilization; works closely with internal and external

auditors to ensure compliance with relevant tax laws and government regulations.

f) Interfaces routinely with Human Resources on employee benefits issues

( deductions, retirement payments, etc.) to ensure timely and accurate processing

g) Works closely with Management Information Systems on developing payroll applications

that ensure internal controls and facilitate the implementation and maintenance of payroll

and HR master files.

h) Provides periodic analysis of payroll and disbursement records to ensure thatadjustments are in accord with management's criteria.

i) Supervises Payroll Office staff and operations; provides on-going assistance to

adjustments are in accord with management's criteria.

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advance, bonus, encashment and other standard deductions like PF, E.S.IC, Professional Tax,

Income Tax, CPF, NHIF, NSSF, PAYE, LST ( for international Payroll) etc.

"The Indigo Airline is on the move to e-enable all HR functions and the employee interface.

We are in the process of adopting state-of-the art ERP software - SAP, across all locations

and businesses. While Payroll for over 10,000 employees has already been streamlined

through SAP into uniform set of standardised fucntionalities, the Group HR is reorganising

its world class procedures on the concept of "Shared Services," based on the capabilities and

the best practices embedded in SAP. set of standardised fucntionalities, the Group HR is

reorganising its world class procedures on the concept of "Shared Services," based on the

capabilities and the best practices embedded in SAP.

4.4 Major Modules in Pay Roll System Software:-

a) Employee Profile Employee Joining Information.

Employee Profile.

Family background details.

Awards given to Employee and their Children.

Employee Club Membership Profile.

Employees extra Circular Activities etc.

Probation Confirmation details.

Employee Current position and job profile

Employee Local address and References details.

Employee Qualification and experience details.

Documents submitted by employee

Assets given to employee

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e) Payroll Management System

User defined Salary Heads

Professional Tax Slab

Pay slip Generation

Salary formula

Create your own Salary Structure

f) HRD ProceduresFinal Settlement

Superannuation

PF Challan

Gratuity

Tax Calculation

g) Reimbursement Management

4.5The payroll module offers following functionality to users:-

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Definition of a multi-location setup for employees with facility of location-wise selective

payroll processing and reporting. System allows definition of specific periods of

salary for processing and other time-office related information as shifts, holidays, Off,

and leave structure of employees.

Definition of employee departments, categories, grades, designations, salary structure,

and method of calculation. Salary structure covers for heads of earning, deduction, and

cost to company (CTC). Also definition of Employee Master holding personnel and

payroll related information of all employees.

Specification of perks, benefits, and reimbursements that are paid against voucher with

facility to impose Limits and reporting of Balance.

Time office in and out entry that also can have swap card interface. In case of swap

card, data can be directly picked up to Oracle database.

Generation of shift schedule considering weekly rotational duties and variable weekly

off.

Facility for on line application for leave, leave accounting, recording of outstation duties

and temporary duties on Gate Pass. There can be adjustments and corrections in the

date related to leave, time, and overtime.

Calculation of salary and wages. The calculation can be made for a specific category or a

specific location and facility of salary transfer to bank of employee. System facilitates

storing of salary history and reporting on that.

Accounting of loans and advances and deductions against them. The loans may be by

company it self or availed from financial institutions. There is a seamless integration with

finance module for loan and advance deduction.

Calculation of arrears, bonus, gratuity, annual payments, retirement, termination etc. The

arrears are also calculated for leaves sanctioned at a later date. Calculation and

reporting related to provident fund, insurance, and taxes. The process covers for PF,

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FPF, ESIC, PT, IT and also generates all the standard formats as prescribed by

respective departments for easy submission. The income-tax related procedure covers

calculation of provisional and final income-tax liability, recording of investments,

deduction of TDS, Scheduling of 'Deduction, and generations of reports for filing of

IT returns also including printing of FORM 16 for employees.

Generation of monthly salary JV, bank vouchers, and loan payment vouchers.

Calculation of cost to company (CTC), and estimation of payroll budgets Generation and

printing of standard letters to employees. This covers letters like appointment, joining,

confirmation and soon.

4.6 NEED FOR PAY ROLL SOFTWARE SYSTEM

The study specifically seeks to answer the following problems in manual payroll process:

1. Speed in processing payroll tends to be slow.

2. Prone to mathematical errors that could consume much time than it should and could

cause financial or legal trouble.

3. Tallying of time cards is done manually.

4. Time consuming in double checking the consistency of all the reports.

5. Difficult and time consuming in keeping up-to-date in taxes and other deductions.

6. Storage of files is susceptible to be damaged as well as lost of data.

4.7 Significance of study .

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1. Speed in processing payroll will have a faster performance by means of decreasing

the manual input areas.

2. Mathematical errors will be prevented by automatic computations that the proposed

system will provide and you may not have to worry about having financial or legal

trouble.

3. Tallying of time cards will be done automatically by including a computerized

employee log-in system in the proposed system which will be responsible in

computing the time the employee worked.

4. The proposed system will record all data in all reports at the same time so you can

make sure they are consistent and it also saves time.

5. Employers will never have to spend much time in keeping up to date with taxes

and deductions because the system will be designed updated to such deductions.

7. Storage of files will be safe and secured with username and passwords and can

easily be accessed.

4.8 HR/Payroll Solution: Integrated vs. Interfaced

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When looking for an HR system, some organizations consider a combined HR/Payroll

solution.This may come from one vendor (integrated or interfaced), or it may come from two

vendors (interfaced). What's the difference between an "interfaced" and an "integrated"

solution? The following is a discussion on the two options, and why the interfaced option

may be the solution that's best for HR.

In an integrated database, HR and payroll share all current employee information, working

from one and the same database. The figure below shows this situation.

Figure 1. Integrated Database: HR and Payroll share the same database

The other option is separate databases for HR and Payroll. An interface is then needed to add

or update data from one database to the other. In the diagram below, some data can move

from HR to payroll while other data moves from payroll to HR. The interface can be

automatic and set to update the databases every night or manual where HR clicks a button to

update when needed.

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Figure 2. Interfaced Solution: Payroll and HR exchange data

While an integrated system has the benefit of having current data for both HR and Payroll, an

interfaced HR/Payroll system has its own advantages.

4.9 Advantages of an interfaced solution between HR and Payroll:

1. An interfaced solution meets the specific needs of the HR department.

Payroll and HR are separate functions that have different needs, and those needs,

especially on the HR side, can evolve quickly. An integrated HR/payroll system may not

be easily adjusted to meet the evolving needs because changes on the HR side may

adversely affect the payroll side. Should this situation arise with an interfaced solution, the

HR database can be adjusted easily without affecting the Payroll database.

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This would not be easy to do if both HR and Payroll are on one integrated database. It is

likely that HRs needs will be unmet thereby relegating HR staff back to using

spreadsheets for their data analysis needs.

An example of this is HRs usual practice of tracking employee benefit plan enrollment,

coverage level and benefit plan costs, while Payroll is interested in tracking deduction

codes and employee deduction amounts. Payroll may want to roll multiple benefit plans

into a single deduction code, which may conflict with the detailed benefits enrollment data

that HR needs.

Another example is organizational analysis. Payroll and Finance may want to create an

organizational and departmental structure that optimizes financial reporting. HR, on the

other hand, may want a database supporting an organizational structure that can analyze

and generate reports based on position type, training needs, or health/safety/environmental

issues.

2. An interfaced solution enables HR projects to move forward independently.

HR projects and Payroll projects may compete for the same resources. For example, if HR

is introducing a new performance review process and Payroll is changing the quarterly

accruals, the same staff may be needed to support both projects. And Payroll will almost

always prevail because of urgency of their issues. With an interfaced solution, different

personnel support HR and Payroll systems, so there is no competition for resources.

3. An interfaced solution provides the best of breed for HR and Payroll

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If a payroll company is offering an integrated HR solution, the HR piece may have limited

features. Does it have recruiting, applicant tracking, and hiring/onboarding functions? Does

it track training, licensing and certifications? Does it alert you to when these dates are

about to expire? It is important that the HR staff conduct a detailed analysis of the

integrated solutions HR features to make sure HRs needs are sufficiently met.

4. An interfaced solution ensures a support staff that knows their areas of expertise.

If a payroll company is offering an integrated HR solution, the Payroll support staff may be

less familiar with HR-related issues and the HR features of its software. When you call to

describe your HR-related question, you may not get knowledgeable HR support staff to

help you resolve your HR issue. Furthermore, the Payroll support staff may not be current

on HR regulatory changes.

5. An interfaced solution reduces your dependency on your payroll vendor or payroll serviceprovider.

If for some reason you are unhappy with your payroll vendor or the service that is

provided, you have the option to change your payroll company without disrupting your

HRIS system and vice versa.

Note that some systems offered by a single vendor claim to be integrated, but in reality

they are two systems that require data updates from one system to the other.

When evaluating interfaced HR/Payroll, here are some questions to ask:

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1. How often can the interface be run?

2. Which fields can be included in the interface?

3. How many steps are needed to run the interface?

4.10 The problem and review of related literature

As computer technology changes at such fast phase, many businesses sectors try to cope up

by upgrading computer system constantly in order to stay competitive. The multifunction

ability of technology for its advance system is also an important factor for a company to use

software. It makes efficient use of the advance technology and has ambition to discover

more.

The program also allows the monthly payroll schedule to be calculated

accurately. Just by having all employees info like name, working hours, wages etc to enter

in the database. Therefore, payroll can be done with the guide of the program. The system is

good in for its specialty in the fields of accounting. It is easy to use, effective and efficient in

organizing and calculating the payroll. There are several suggestion form the Employee of an

organization regarding pay roll system implemented in an organization such as

a) The program should accepts employee hours worked.

b) The program should prepare pay cheques

c) The program should maintain data on a sequential payroll file

d) Non-statutory deductions such as union dues and pension plans to be made.

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CHAPTER- 5

DATA ANALYSIS AND INTERPRETATION

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a) Satisfaction and dissatisfaction level towards, whether the software user friendly or not.

INTREPRETATION:- From the above bar graph it can be seen that among 50 employees,

84% of employees are satisfied with the software system used in organization 16% of

employees are not satisfied software system whereas we need to give more focus on

dissatisfied employees.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

YES 42 84

NO 8 16

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b) Satisfaction and dissatisfaction level toward the measurement of the complaint regardingloading of pay sheet in software system.

INTERPRETATION:- From the above bar graph we can conclude that among 50 employees

90% of the employee are satisfied by the software measurement of the complaint regarding

loading of pay sheet in software system whereas we need to focus more on 10% yet not

responded and find out the reason for the same

c) Reason for satisfaction/dissatisfaction level towards towards the usage of new softwarefor pay roll process.


SATISFIED 45 90

DISSATISFIED 0 0

NEUTRAL 5 10

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INTERPRETATION:- From the above bar graph it can be concluded that among 50

employees, 76% of the employees are satisfied with towards the usage of new software for

pay roll process and calculation whereas we need to give more focus on 24% employees

dissatisfied.

d) Reason for satisfaction/dissatisfaction level towards the measurement of complaintrectification.


SATISFIED 38 76

DISSATISFIED 12 24

NEUTRAL 0 0

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e) INTERPRETATION:- From the above bar graph it can be seen that among 50employees, 40% of the employees are satisfied the measurement of complaint

rectification by the software version whereas we need to focus more on the 10 %

dissatisfied and find out reason for 50% yet not responded.

f) Reason for satisfaction/dissatisfaction level towards the team coordination with softwaretechnology team.


SATISFIED 26 40

DISSATISFIED 5 10

NEUTRAL 25 50

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LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 48 96

NO 2 4

g) INTERPRETATION:- From the above bar graph it can be concluded that among 50employees ,96% of the employees are satisfied towards the team coordination with

software technology team whereas we need to focus more on 4% dissatisfied.

h) Is the organization maintains the record as per government norms.


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YES 56 100

NO 0 0

INTERPRETATION:- From the above bar graph it can be seen that among 50 employees, 100%

of the employees are satisfied by the maintenance of all reports by the organization according to

the government norms and no case is reported against the organization till date of violation of

government rule and policy from the respondents.

i) Confidentiality in maintaining the employees personal details in an organization by theconcerned department.

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INTERPRETATION:- From the above bar graph it can be concluded that among 50 employees

92% of the employees are satisfied by the confidentiality of maintaining the employees personal

details by the concerned department whereas we need to give more focus on 8% dissatisfied

employees.

j) The way in which the employees interface with H.R. department for the pay roll process.


YES 46 92

NO 4 8

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INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 64%

of the employee are satisfied by interface with H.R. department for the pay roll process H.R.

whereas we need to focus more on the 36% dissatisfied.

k) Is the access to payroll and personnel records adequately controlled?


YES 32 64

NO 18 36

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INTERPRETATION:- From the above bar graph it can be concluded among 50 employees 94%

of the employee is satisfied with the access to payroll and personnel records is adequately

controlled where as we need to give more focus on the 3% employees dissatisfied.

l) Does the procedure implemented for pay roll system in an organization ensure staffleaving the company is cancelled form the pay roll system?


YES 47 94

NO 3 6

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INTERPRETATION:- From the above bar graph among 50 employees 91% of the employee are

satisfied with the procedure implemented for pay roll system in an organization ensure staff

leaving the company is cancelled form the pay roll system whereas we need to give more focus

on the 9% dissatisfied employees.

m)Do the term and condition comply with labour law?


YES 43 91

NO 4 9

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INTERPRETATION: - From the above bar graph it can be concluded that among 50 employees

88% of the employees are satisfied with the term and condition of pay roll system of Indigo

Airline is comply with labour law whereas we need to give focus more on the 4 % dissatisfied

and find out the reason for the 8% yet not responded.

n) Is the H.R. department complying with provision of the federal grants and otheragreement regarding pay roll budget, pay and fringe benefit?


SATISFIED 44 88

DISSATISFIED 2 4

NEUTRAL 4 8

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INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 90% of

the employee are satisfied with the H.R. department complying with provision of the federal

grants and other agreement regarding pay roll budget, pay and fringe benefit whereas we need to

give more focus on the 10% dissatisfied employees

o) Reason for satisfaction/dissatisfaction level towards the measurement of complaintrectification


YES 45 90

NO 5 10

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p) INTERPRETATION: - From the above bar graph it can be concluded that among 50employees 40% of the employee is satisfied towards the measurement of complaint

rectification by the pay roll software version whereas we need to give more focus on 5%

dissatisfied employees.

q) Reason for satisfaction/dissatisfaction level toward the delivery of the pay roll report tothe Employee.


SATISFIED 20 40

DISSATISFIED 5 10

NEUTRAL 25 50

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INTERPRETATION:- From the above bar graph it can be concluded that among 50

employees 60% of the e employeesare satisfied by the delivery provided by pay roll software

system in Indigo Airline and we need to give more focus on 10% employees dissatisfied and find

out the reason for 30% employees who not yet responded.

CHAPTER- 6 FINDINGS & SUGGESTIONS


SATISFIED 30 60

DISSATISFIED 5 10

NEUTRAL 15 30

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FINDINGS:-

1) The effectiveness of the existing software system in Indigo Airline .is measured

by using the following variables:-

Software which is implemented in an organization

Import of data in software

Software calculation and complaint rectification

Accept & implement change

Flexibility

Company policies

Education &Computer Skills

Following are the findings regarding the effectiveness of the existing software in an

Organization:-

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a) 80% of the Employees are satisfied by the software and we need to more focus on

the 16% dissatisfied.

b) Among 50 employees 90 % of the employees are satisfied with the software

system helps for future growth that they had improved themselves after the

program. 10 % of the employees are not satisfied with software system helps for

future growth.

c) 76 % of the Employees are satisfied with the calculation and we need to more

focus on 24% of employees dissatisfied.

d) 40% of the Employees are satisfied with the complaint rectification process and

we need to focus on the 5% dissatisfied, whereas 50% did not responded.

e) 96% of the Employees are satisfied with the measurement of team coordination

with software technology team and we need to focus on 4% Employees

dissatisfied.

e) 94% of the Employees are satisfied with the adequacy of the access to the

payroll and personal record

Following are the findings regarding the effectiveness of existing interface between

role of H.R. and pay roll system in Indigo Airline.

a) 100% of the Employees are satisfied with the keeping of record as per government

norms.

b) 92% of the Employees are satisfied the way with which confidentiality maintained

by organization regarding personal detail of Employees and we need to more focus

on the 8% Employees dissatisfied.

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c) 64% of the Employees are satisfied with the interaction of H.R. in the pay roll

system and we need to more focus on 36% Employees dissatisfied

d) 91% of the Employees are satisfied with the pay roll system in a organization which

ensure staff leaving the company is cancelled from the pay roll system and we need

to more focus on the 9% Employees dissatisfied.

e) 88% of the Employees are satisfied with the term and condition in the pay roll

system comply with the labor law and we need to more focus on 4% Employees

dissatisfied where as 8% Employees did not responded yet.

f) 90% of the Employees are satisfied with the H.R. department complying with the

provision of the federal grants and other agreement regarding pay roll budget, pay

and fringes benefit and we need to more focus on the 10% of the Employees

dissatisfied.

g) 40% of the Employees are satisfied with the measurement of complaint rectification

and we need to more focus on 10% dissatisfied and 50% employees did not

responded yet.

SUGGESTIONS: - Following are the suggestion on the basis of findings

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a) In order to improve the Software skills of employees the organization should create

more awareness and to provide feedback regularly to the employees about software

system.

b) Proper training should be given to the employees, in order to increase their

knowledge about the usefulness of the software system.

c) Top management shall continually review the software according to the employees

requirements, which shall be seen as positive support to the system by the

employees.

d) After software testing, if there are any changes, the employees should be informed by

the software technology team.

e) Delivery of payment to the employee should be well on time by the department.

f) Technological assessment of pay roll software system should be done quarterly by an

expert in an organization

g) Employees complaint should be registered properly and immediate action should be

taken by the concerned authority.

h) The interface between the Human resource department and pay roll system should be

widen and more regulatory control should be given to H.R. department to ensure that

the organization is concerned toward the welfare of the Employees and thereby

productivity of an organization also enhanced.

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i) Confidentiality in an organization regarding Employees personal detail and other

related information which is recorded in pay roll system software should be

maintained and H.R. should take the responsibility for the same.

j) Term and condition in the pay roll system should be amended regularly as per the

labour law by the H.R .the organization.

k) Policies and strategy made by the H.R. department related to the incentive for

performance etc. should be complying with the provision of federal grants and other

agreement regarding pay roll budget, pay and fringes benefit.

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LIMITATION:-

a) The respondents attitude did not allow me to get their true feelings.

b) Most of the respondents were hesitant to give their names and that create problem

while preparing database of the respondents.

c) Employees are very limited and duration for the project is also limited which further

add problem in collecting the relevant data related to the pay roll system of an Indigo

Airline

d) The confidentiality of the system created some problem in getting

information as there were some hidden pay roll systems which can only

be access by top management personnel in an organization.

e) Many employees replied guarded answers to some crucial question and

because of this clear opinion of the employees to the questionnaire

provided to them were difficult.

f) Response could not be collected from the total sample selected as some

of the employees did not respond to the particular question due to their

personal reason which act as a constrain while preparing the project on

pay roll management system.

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CONCLUSION

The study had confirmed that the company is having a good interface level between

account and H.R. department in the organization

From this study, it is found that majority of the workers were satisfied with Software

Used in an organization.

To make the software system more efficient and excellent, the company should give

Importance to the employees suggestion related to improvement of software used in pay

roll system and thereby makes their software more effective and adequate.

To create awareness among employees and it shall consider some of the ways and means

Suggested by the employees like addition of parameters such as short cut for calculation

PF, ESI, TAX etc.

Dependability and conducting regular training program on the software usage for the

employees in an organization

H.R. department should be given more regulatory power to analyze the proper

Functioning of the pay roll system and thereby widen up the interaction between finance

and H.R. department.

I hope that the suggestion given in the report may be implemented in future course for

the benefit of the employees and the company.

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The Company should conduct the similar type of research at regular interval to know

the changing softwares and to know about the latest technology like Baan software

ANNEXURE

a) Bibliography :-

1) DeCenzo, D. A. and Robbins, S. P. Fundamentals of Human bResource Management. John Wiley

2) Dessler Gary (2004). Human Resource Management. Pearson

Education

3) Henderson, Richard,( 2004) Compensation Management:

rewarding performance Princeton Hall of India pvt. Ltd.

b) Website:-

1) www.goindigo.com

2) www.google.com

3) www.saphr.com

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QUESTIONNAIRE

Q1) Are the policies and procedure relevant to payroll cycle current and in writing?

a) Yes

b) No

c) Comment, if any

Q2) Are these pay roll policies clearly stated and systematically communicated?

a) Yes

b) No

c) Comment, if any

Q3) Do the policies and procedure support internal control?

a) Yes

b) No

c) Comment, if any

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Q4) Are changes to master pay roll file approved and documented?

a) Yes

b) No

c) Comment, if any

Q5) Are appropriate regulation being followed in regard to payroll withholdings, wages and hours and

other federal, state and local requirement concerning employments?

a) Yes

b) No

c) Comment, if any

Q5) Are the report that provide the details of the pay roll amount charged to the departments account

reviewed and compared to a copy of the approved standard time report by someone who didnt prepare

the standard report?

a) Yes

b) No

c) Comment, if any

Q6) Are the salaries and wages are paid by warrant?

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a) Yes

b) No

c) Comment, if any

Q7) Are the written authorization from responsible person outside the payroll department required

for:-

a) Name added to and deleted from the payrolls?

a. Yes

b. No

c. Comment, if any

b) Individual wage or salary or rate changes?

a. Yes

b. No

c. Comment, if any

Q8) Are individual employee time and attendance record:

a) Prepare and sign by each employee for each pay period?

a. Yes

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b. No

c. Comment, if any

b) Sufficiently detailed to show time charges to assignment, leave and administration?

a. Yes

b. No

c. Comment, if any

c) Reviewed and signed by each employees supervisor?

a. Yes

b. No

c. Comment, if any

d) Reconciled and with centralized time and attendance record?

a. Yes

b. No

c. Comment, if any

Q9) Has prescribed system been developed in writing to accrue and use vacation, sick leave and

compensatory time

a) Yes

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b) No

c) Comment, if any

Q10) Are procedure adequate for controlling over time wages and supervisory control of overtime?

a) Yes

b) No

c) Comment, if any

Q11) Are the person who performed the following function independent of each other

approve of hours worked

preparation of pay roll

distribution of pay

a) Yes

b) No

c) Comment, if any

Q12 Is the current payroll reconcile to the previous pay roll?

a) Yes

b) No

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c) Comment, if any

Q13) Are the calculation of prepared payrolls rechecked on a test basis?

a) Yes

b) No

c) Comment, if any

Q14) Have procedure been established for year end cut off to ensure that pay roll expenditure are

recorded in the appropriate fiscal year?

a) Yes

b) No

c) Comment, if any.

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