Acme employs over 40,000 workers for three shifts, and most employees work overt

Question

Acme employs over 40,000 workers for three shifts, and most employees work overtime when necessary. Additional information about payroll procedures follows: The HR department determines the wage rates of all employees. The process begins when a form authorizing the addition of a new employee to the payroll master file is sent to the payroll coordinator for review and approval. Once the information about the new employee is entered in the system, the computer automatically calculates the overtime and shift differential rates for that employee. A local accounting firm provides Acme with monthly payroll tax updates, which are used to modify the tax rates. Employees record time worked on time cards. Every Tuesday morning the previous week's time cards are collected from a bin next to the time clock, and new time cards are left for employees to use. The payroll department manager reviews the time cards to ensure that hours are correctly totaled; the system automatically determines if overtime has been worked or a shift differential is required. The payroll department manager performs all the other activities necessary to ensure accurate and timely delivery of payroll. The payroll department manager who does not believe in taking vacation has received numerous awards for perfect attendance over a twelve year employee tenure. The system automatically assigns a sequential number to each payroll check. The checks are stored in a box next to the printer for easy access. After the checks are printed, the payroll department manager uses an automatic check- signing machine to sign the checks. The signature plate is kept locked in a safe. After the checks have been signed, the payroll manager distributes the paychecks to all first- shift employees. Paychecks for the other two shifts are given to the shift supervisor for distribution. The payroll master file is backed up bi-weekly, after payroll processing is finished. The back-up process is reviewed and approved by the payroll department manager REQUIRED: In a typed memo to Pat CEO of Acme Enterprises, identify and describe the weaknesses in Acme Enterprises' payroll process.

Explanation / Answer

Hi Pat,

As you must be aware we at Acme regard our workforce of utmost importance and that is the reason our HR practices and Payroll processes the overtimes of the workers without asking questions. Perhaps this is a bit too linient and workers are taking advantage of this a little too often.

We have a lot of checks in place to ensure the hours logged in are accurately and quickly rewarded, but are skipping the part of ensuring if the work hours put are properly utilized. We need to have a structure where the teams or a group of workers are assigned to a leader who commisions the additional work and ensures the overtime is put in proper work and is justified demand. I think an additional worker could reduce the overtime hours, which are charged at a higher rate. It is high time we put proper process so that only the required over time is rewarded and the excess saved cost is utilized in better workers facility.

And instead of giving one person a lot of power, we should make the system more process oriented, let the team leaders justify their work and have the hours maintained, let the payroll do all the accounting and paycheck work, but the admin work should be taken up by team leaders and the calculation should be done by the system/computer.

Hope this can be experimented with a small set of workers, so that we can find the benefit and a lot of cost is saved and efficiency is brought to the workers, who would do away with the practice of idling and still getting paid for the work

Hope you consider!

Thank you.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.