CHAPTER 1

BACKGROUND OF THE STUDY

Introduction

The project Human Resources Management System will enhance HR

process of Nauts and Vectors Company Inc. such as management
employee profiles, recruitment management, timekeeping, benefits
administration, and advance reporting through this proposed web-based
system it will automate many existing paper-based processes.

The company is currently not using an automated system but using a paper-
based transaction for their Human Resources Department. In doing
recruitment the current process they have is a manual paper-based
process. Whenever there’s a current job opening, the department hiring
manager will ask for the director’s approval using a manpower request form
(MRF). This hard copy of form must be signed by the hiring manager
requesting for a position to fill in and must be signed by the Managing
director prior submission to HR. Once HR has received the mrf form that is
the time HR will start to source for pooling of candidates. All candidates that
are shortlisted will be scheduled by interview. In the process of interviewing
applicants, the applicants must fill out a job application first and submit it to
HR along with the copy of resume prior taking the exam, initial interview and
should the applicant pass the initial interview, he or she will have a schedule
for interview with the hiring manager. If the applicant passed the recruitment
process, that is the time the HR will offer a job offer. Having all that process

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that will lead to the applicant onboarding once finished the recruitment
process. Jumping to the process of employee onboarding, employee will be
enrolled to the biometric device for the employee timekeeping record.
Biometric is use for employee log in and out and this will be use for HR
timekeeping report for payroll submission to the payroll department. HR is
the one doing the timekeeping report for payroll computation. In terms of
the benefits administration, there are employee getting sales incentives as
their benefits. But all regular employees are entitled to received seven
vacation leave and seven sick leave.
In keeping, tracking and updating employee record such as filing of leaves,
timekeeping attendance monitoring and employee personal information the
company stores all employee data using Microsoft excel and safekeeping
the hard copy file of documents to their manual employee 201 file folder.

To give an overview about the company. They started November year 2009
with only five employees selling fitness products and by the end of 2018 the
company grew in number of employees to thirty-eight and up to present the
company is growing not only in terms of number of employees but also in
some other business opportunities. They believe as the company continues
to grow this proposed system will be a key contributing factor to the success
of the organization. This automatic approach is more efficient in many ways
than the manual approach. Both the management and employees will gain
benefits of this management system.

Nauts and Vectors Company Inc. (NAVCO) engages in the distribution of

an electronics, fitness and tech essential products such as phone
accessories and power banks in the Philippines. It started distributing
fitness products first quarter of 2009. Presently, the company has a great

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success and expanded its distribution, adding more categories of products
to distribute in the Philippines. NAVCO's proficiency and reliability in
distribution gained the confidence to add more brand this year 2019. Their
vision is “To be a major driving force in bringing the world’s best and most
relevant innovations to the lives of Filipino consumers”. Their company
mission is “To form strategic partners with brands that share our vision and
values. To bring the world’s most reliable, innovative and relevant products,
solutions and ideas to inspire, empower and delight the modern Filipino”.

In light to the above, the group decided to propose the project Human
Resource Management System as the need to add people in the business
is assumed. This will also provide a competitive advantage to other top
industry. In the ever-changing world in which we live, new technology is
continually being developed. This change requires organizational leaders
to be cognizant of the different types of technology which could improve the
organizational effectiveness.

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Overview of the Study
“Continuous innovations in technology will fundamentally change the way
HR work is accomplished”. Information systems have a deep effect on
Human Resource Management. It transformed human resources
processes and practices mainly in terms of how organizations collect, store,
use, and disseminate information.

In our interview we found out that the company doesn’t have existing
Human Resource Management System or an automated system. In
recording employee details, they are currently using excel file. In doing
recruitment function they are using papers and currently they are not using
any tracker or excel file in tracking applicants, shortlisted applicants and
status of the candidate application. For time keeping, once the timesheet
has been extracted from biometric machine the HR will double check all the
logs, if there are missing logs or the employee weren’t able to use the
machine, the employee needs to submit a copy of DTR form, official
business form or any related form their schedule adherence. In filing leave
form, employee would need to file a hard copy of leave form. HR
Representative has the masterlist for the employee important importation,
this is their current database they have. All necessary information will be
recorded to the Employee Masterlist file. Employee Masterlist file includes
Employee Number, Full Name, Date of Hire, Regularization Date,
Immediate Superior, Government Numbers, (SSS, TIN, PHI and HDMF),
Contact Number, Birth Date, Salary Compensation and Other Allowances.
They are using the master file in generating report they need. The company
is dependent in using excel file as their tracker and in generating reports.

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For benefits administration, once an employee got regularized. Employee
is now entitled to receive vacation and sick leave credits and HMO benefit.
All process is being done manually. For employees who will file for leave.
They would need to fill out a leave form and leave form must be approved
by their immediate managers prior submitting it to the HR department for
tracking and monitoring. Should an employee need to file for the remaining
leave credits the employee should need to ask HR Representative. On the
other hand, HR Representative must be accurate in tracking the filed leaves
of the employee and must have an accurate leave balance as this would
affect employee payroll computation in the future. Whilst, for employees
who wants to see their employment status, they would always need to go
to HR department to get an update. Having a paper-based transaction take
much of the time of HR and the employee that instead of focusing to a more
strategic plans most of the time are being used in filing of document, finding
a document in a piled-up files.

Through a web-based solution we can help the HR department to think of a

more cost effective and efficient solution to their current state. We know that
in the present age, the application of computers and electronic gadgets
have made scientific and industrial resource possible that could not be
imagined a couple of decades ago. Also, information technology evolution
has improved a technique of collecting this information through the
development of information systems. It is a bare fact that in recent years,
computers have changed the style and shape of entire mankind.

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Project Problem Statement

Through the proposed system and its transformation to a web-based

system, HR professionals must not only master traditional skills and
knowledge, but also apply that knowledge via technology. Through this
web-based technology this will have a dramatic change to the department.
This will result from the need to cut cost, expand or improve services.

The system will provide a friendly web-based employee information

management system that automates and improves the delivery of HR
services from recruitment management, managing the employee record,
benefits administration, timekeeping and a system that can generate
reports.

By having the web-based system for the company it will result and solve
some of their existing problems.

Having a paper-based system, processing time for them is very time

consuming.
A time-consuming process, most of the forms are time consuming. As a
result, most of the resumes and forms are routinely recycle. Having a very
time-consuming process, some HR officer must go on overtime to finish
their paper work.

Cramped office space - Paper-based filing systems take up a lot of room,

especially when you factor in the files that must be kept even after an
employee leaves.

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Difficulty locating flies - Unless meticulously maintained, paper files have a
way of being mislaid. For most organizations, the days of a dedicated file
clerk are long gone. Files are removed from file cabinets by whomever
needs them, and frequently misfiled when they’re returned.

Missing documents - An opened file on someone’s desk frequently leads to

a document within the file to go missing, as it’s inadvertently scooped up
with another pile of papers.

Damage - Paper is subject to loss by water damage, fire and other

unexpected catastrophes.

Difficulty of Multi-location access - HR files are usually maintained in the

home office, which is great, if you’re in the home office. But if you’re located
at another site, and need access to information in someone’s personnel file
it can be time consuming at best, impossible, at worst.

By having HR automation, it will enhance the efficiency of the HR

department by freeing employees from tedious manual tasks and allowing
them to focus on complex tasks like decision making and strategizing
especially for the HR Manager. By automating standard and repetitive HR
activities, organizations can reduce the cost and time they spend on manual
HR planning and processing.

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Project Objectives

Our objective is to provide a solution to the Human Resources Department

that will help them to function as an efficient and responsible area for
managing the human resource of the organization providing timely and
accurate database, employee details and their benefits and reports.

We envision this project for Human Resources to become their gateway to

a solution on their underlying problem by having a web-based database for
recruitment, zero discrepancy for the timekeeping report, timely and
accurate available leave balances, incentives amount, employee can view
their employment status online and HR can generate reports accurate,
relevant, and timely information.

Specific objectives:

 To monitor applicant status up to on boarding of employee and

maintain their record and to provide history record of an employee.
 To maintain safely, manage all records and safekeeping the
information protected, updated and real time.
 To develop a system that can search data easier and faster
 To develop a web-based system that can eliminate the use of paper
transaction

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Scope and Limitations of the Project
Recruitment management– a database with the information of the applicant
and its status.

Time and attendance keeping - Time-in and time-out via biometrics and
syncing in to the system. There’s also a provision wherein employee has a
way to input daily task report as a documentation of his or her performance,
activities, accomplishments, and achievements in a given work day. They
can also input their application for change of schedules and official
business. They can also use the platform to efficiently check their schedules

Leave management - Record, monitor, and manage every leave request in

real-time using automated validations, balance updates, and one-click
visual reports.
Approvals: Apply, approve, reject, and manage leave requests from any
place, any time, from any device using automated approval workflows. The
leave and time off based on different positions. Leave accrual settings
based on employee status, job title and years of services.

Benefits administration – with benefits administration functionality is

introduced into an organization, it allows HR and benefits professionals to
automate the complex, time-consuming process of benefits enrollment and
administration. Benefit administration: benefits attribution, attributed
benefits analysis, cost-benefit analysis. This is where employee file for their
leaves, they can also see their updated leave credits. Immediate managers
have access to approved or disapproved such request. Employee can also
view their incentives amount they received for a certain period.

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Reports – the system could generate various reports. Only HR,
management and managers have the access depending on the applicable
reports they need. This is for dashboard integration.

Employee information – This is a demographic information an employee

and other pertinent employee information. Wherein the HR department,
immediate superior and management can view depending on the specific
access provided to them.

This automated HR Management system could have a major investment. It

is necessary to keep in mind some cost and benefits of the system.

Costs and benefits of the proposed system.

The common benefits are:

 Improved accuracy
 Provision of time and quick access to information
 Operating, controlling and planning HR activities
 Increase competitiveness by improving HR practices
 Increased efficiency
 Produce a great number and variety of HR operations
 Shift the focus of HR to strategic HRM
 Make employees part of the HRIS
 Re engineer HR function

Part of the limitation is considering the cost they need to invest.

These are costs and limitation associated for systems implementation:
 Employees need to have access to computers and global internet
connections

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 Slowdowns or mistakes, errors
 Costly technology costs, time costs
 Job issues (change of tasks, need for training, change of posts,
dismissal, …)

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Methodology

We provided our own sets of questions during the interview, but no sets of
structured question were followed during the interview. We asked the
concerned people about their current experience, their current state in the
department. What are the challenged they are facing and asked them about
their need.

Primary data have been collected from interview with HR professionals, HR

managers, and HR officers, software developers of different local and
multinational organizations. They have provided a lot of insights and
information regarding HRIS.

Secondary data have been collected from different books, journals and
articles online and offline about HR management system.

Data collection was mainly based on material study and interview since it is
a qualitative work.

The team have concluded that we will focus on using technology to

continuously improve the quality of the work. Technology can improve the
information available to HR, facilitating HR processes, and making them
faster and more effective and efficient.

However, there are some several challenges that we can face. HR

professionals need to prepare themselves for the future by gearing up for
new role. HR professionals needs to integrate an HRIS as a big project and
as a major change for the organization, assuming its role as business
partner, as a data analyst, as an internal consultant, focused on the
strategic issues of HRM, necessary for the development of people, business
and organizations.

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 CHAPTER 2

Review of Related Literature and Studies

We’ve come up with this proposed project since we know that it will really
help a small medium enterprise business to improve their organization’s
performance and in order to effectively compete in the market. By providing
effective automated system for Human Resources, it is a one solution that
can elevate organizational performance and competitive advantages. From
these related literatures, this is an effective use of human resource for
organization’s strategic needs and for practices align with business
strategy.

Human capital is one of the main interest topics in this study. Based on our
research Wright and McMahan (2011) stated that the issue of human capital
is how the organization decide to invest in employee such as, training and
development, provide education in form of scholarship. In the empirical
studies that employ human capital theory, scholars had shown the effect of
human capital on organizational performance through the accumulate of
human capital in organization (Youndt and Snell, 2004; Teo et al., 2011).
The studies of high-performance work systems – HPWS, employees’
attitude and behaviour has been emphasized as a mediate variable (Boxall
and Macky, 2007). Many studies conceptualized by blending Resource-
based view – RBV theory, Ability, Motivation and Opportunity – AMO theory,
Human capital theory and Behavioural perspectives to support the
hypothesis (Kaufman and Miller, 2011; Way and Johnson, 2005). Numbers
of empirical studies has confirmed that HRM outcomes is the “black box”
variable mediated between HRM and organizational performance in SHRM
literature (Way and Johnson, 2005).

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Organizational Performance according to Dess and Robinson Jr. (1984) he
indicated that organizational performance is the crucial factor of empirical
study in the field of business policy. In the past, financial performance such
as return on investment – ROI, and economic value analysis – Dyer and
Reeves (1995) proposed four types of organizational performance
measurement as the following: (1) Human resource outcome effect from
human resource management practices which concerning attitude (job
satisfaction and organization commitment) and behavior (turnover and
absenteeism) 2) Operational performance which concerning productivity
and shrinkage 3) Financial performance which concerning profitability and
4) Market performance which reflected from share price of organization.

Some authors have proposed that the use of a HRIS would reduce HR costs
by automating information and reducing the need for large numbers of HR
employees; by helping employees to control their own personal information;
and by allowing managers to access relevant information and data, conduct
analysis, make decisions, and communicate with others without consulting
an HR professional (Awazu & Desouza, 2003; Ball, 2001).

Many of these authors believe the future to be bright for HRIS as it creates
new paths for human resources and for the organizations that effectively
use HRIS. One study even goes as far as to suggest that there is evidence
that HRIS can improve shareholder value (Brown, 2002).

Human resource management (HRM) issues have been major concern for
managers at all levels, because they all meet their goals through the efforts
of others, which require the effective and efficient management of people
(Dessler, 1999).The spacious array of HRM activities for example, planning,
recruiting, selection, and training just to mention but few place enormous

14
responsibilities on supervisors and managers alike. These embrace
analyzing jobs, planning labor needs, selecting employees, orienting and
training employees, managing compensation, communicating (which
includes counseling and disciplining), and maintaining employee
commitment.

The literature shows a variance in the analysis of HRIS usage with at least
two extremes of use (Ball, 2001). In this regards, Kovach and Cathcart,
(1999) and Kovach et al. (2002) argue that HRIS information could be used
for administrative purposes that reduce costs and time; HRIS is used
according to them also for more analytical decision support. Furthermore,
Martinsons (1994) identified different type of HRIS usages based on its
degree of sophistication. He classified payroll and benefits administration,
keeping of employee and absence records electronically as unsophisticated
HRIS usage; he also describes this as simple-minded automation. On the
other hand, Martinsons (1994) characterized the usage of HRIS in
recruitment and selection, Training and Development (T&D), HR planning
and performance appraisal as sophisticated, as the generated information
is important and used to provide support for important HRM decisions.

Practically, organizations are hesitated to apply HRIS unless they are

convinced of the benefits that this would bring to their organizations (Ngai
and Wat, 2006). The most common benefits of HRIS include improved
accuracy, the provision of timely and quick access to information, and the
saving of costs (Teze, 1973; Will and Hammond, 1981; Lederer, 1984; Ngai
and Wat, 2006).

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With all of these researches, we’ve come up with the idea of proposing a
human resource management system that will help stakeholders,
employees and HR to lessen their paper-based work load. With this
proposed system they can all work effectively and efficiently. Ideally, with
an appropriate use of HRIS, less people should be needed to perform
administrative tasks such as record keeping and more time would be made
available for HR managers to assist by providing data on a strategic level

According to the book Human Resource Information Systems: Basics,

Applications, and Future Directions edited by Michael J. Kavanagh and
Richard D. Johnson, to be truly successful in this mission, organizations
have to invest in technology to support all aspects of their human resources.
He also said that the integration or harmonization of technology with people
management in an HRIS will create a distinct competitive advantage for
organization

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Abbreviation:

HR: Human Resources

IS: Information System

MIS: Management Information System

SHRM: Strategic Human Resource Management

ESS: Employee Self-Sevice

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 CHAPTER 3

Analysis Design Phase

Work breakdown structure

Figure 1. Work breakdown structure

This table shows the summary of the schedules and tasks that occurred

during the planning and initialization phase. It shows the tasks that should

be done, the date when it was started and finished. It also emphasizes the

duration of doing the task.

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Figure 2. Context Diagram

19
Figure 3. Use Case

20
Mock Ups

Figure 4. Log in page and employee profile

Figure 5. Employee page

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 Figure 6. Employee page

Figure 7. Login and profile for approvers

22
Figure 8. Profile page for immediate manager

Figure 9. Profile page for immediate manager

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Figure 10. User Admin Dashboard

Figure 11. User Admin Dashboard

Figure 12. User Admin Dashboard

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Figure 13. User Admin Dashboard

Figure 14. User Admin Dashboard

25
Figure 15. Network design

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The team will use the following software language during the development
of the proposed system.

 PHP for processing of data in the web application system

 MySQL (Structured Query Languange) for back end development.
For data flows and connection to the database that will store data
included in the system.
 HTML (Hypertext Markup Language) for the main content
 CSS (Cascading Style Sheet) for layouts and design of the user
interface and content.
 Bootstrap for CSS framework and library for the front end
development
 XAMPP or LAMPP use to configure and connect to the database

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Hardware Specification

The system needed a computer for the use of the admin to have a data
storage to store data’s

Operating System Windows 7

File Server for HR
Processor i7 Processor
Memory 8gb ram
Computer Peripherals Mouse, Keyboard, Monitor, Printer

Printer Double Sided printing

Input Tray Capacity 100-150
Color/Mono Colored
Connectivity USB
Printing Speed 1-10ppm

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References

https://file.scirp.org/Html/2-2830016_46129.htm

https://pdfs.semanticscholar.org/997a/4c38fc16857f28ad6b2f4d0ac3d7b5
af33a0.pdf

https://scholars.fhsu.edu

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&c
ad=rja&uact=8&ved=2ahUKEwjazLKt8-
_kAhWB3mEKHcQcD_0QFjAGegQICBAC&url=https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttps%2Fpdfs.se
manticscholar.org%2Fb8b0%2F38489f3ba30b4b322722078ed3447495ee
9e.pdf&usg=AOvVaw1PgNbzjOcwTOIv19ZZCNNx

Book: Human Resource Information Systems edited by Michael J.

Kavanagh and Richard D. Johnson

29