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Chapter 2

Related Literature and Studies

This chapter includes the ideas, finished thesis, generalization or conclusions,

methodologies and others. Those that were included in this chapter helps in familiarizing

information that are relevant and similar to the present study

Related Literature

In this part, related literature is written information, any published papers, and

books composed of discussion and principles that are deemed relevant to the study as

knowledge support and foundation.

Local Literature

According to the book of Trias(2010)entitled “What is a Payroll System?”,

emphasized the importance of accurate calculations in a successful payroll system. It is

that a payroll system is defined as “a system programmed to calculate taxes and

deductions”, which can also be internet-based or offsite.

In the book of Musa (2009), entitled Philippine Based-Payroll System,

emphasized the major elements or variables that a Computerized Payroll System

consists. The author indicated the specific items the database of a Philippine-Based

Computerized Payroll System must have.

According to the book of Lamberte, entitled” Philippine Payment System,

stated that basic and essential parts of any payment –related system, the flow of

information providing payment instructions and the flow of funds. He also emphasized
that this flows requires an instrument to convey the information about the transactions,

this is where a computerized payment system(in this case a Payroll System)comes in.

Foreign Literature

According to the book "System Documentation" (2010), states that “a

computerized payroll system must have the ability to update and maintain employee

information and to generate required outputs including paychecks, reports to

management and to the government.”

According to a blogged article in blastasia.com (2007), says that “a

computerized payroll system is designed to help human resource professional as well as

finance and accounting personnel to manage employee compensation, deductions,

allowances, and benefits in an organization.”

According to the definition of Enterprise Resource planning on

Wikipedia.com, stated that "organizations perceive ERP as a vital tool for organizational

competition, as it integrates dispersed organizational systems and enables flawless

transactions and productions". This statement serves as basis of this proposed systems

capability and flexibility to integrate to other subsystems within the airline system.

According to Thomas Primer on his article “Automated Computerize Process”, in Readers

Digest Magazine, May 2005, Page 45,for many businesses automating the collecting of

employee

attendancedata when employees begin their shifts is still a manual process.Even busines

s that has automated or computerized processes such asscheduling, inventory,

purchasing, general ledger and payroll processing still use manual method such as time

cards sheets to collect time and attendance data.


Related Studies

In this part, related studies are similar projects, inquiries or investigations

already conducted to which the present developed study that could have a relation or

relevance in the study.

Local Studies

Based on the research study entitled computerized payroll system of Department of

Health (DOH) (2007) explains that a computerized payroll system is a window based

program which is specially designed to facilitate and simplify the monthly preparation of

general payroll and related reports. Also that is must be flexible to provide option which

allows the user to hold additional fields for other compensations and deduction which

was unique to an office the company.

Based on the undergraduate study made on Cagayan De Oro City Hall

entitled "Cagayan De Oro City Hall Computerized Payroll System" stated that is

important that the system must be easily accessible, fast-tracked and secure.

Foreign Studies

Based on the research study entitled "PAYROLL ERP SYSTEM" of Advantos

Systems (2013), explains that it is vital that a payroll system must allow the user to set

up an employee paycheck record. It also emphasized the use of separate salary record

for each employee and the proper maintenance of data on tax rates and exemptions.

Based on the system study entitled "INFONETICS PAYROLL SYSTEM"(2012),

emphasizes that a payroll system must be user-interactive in all its processes (including

maintenance of payroll records ad payroll reports and checks printing). It also explains
that the system must be capable of maintaining accuracy of tax tables and deductions

using a concrete formula.

Synthesis of the Studies

The proponents made a relative comparison of the studies and literature in

earlier sections of this chapter. As concluded, this proposal has based some of its

concepts from such documents. The proposed system uses master lists coming from the

Human Resource Department, yet the attendance relies on the system itself. One of

these concepts is to use the so-called “Barcode ID System” for the automation of the

company’s attendance. Taxation data maintenance is also one of the main concerns of

this proposal for its accuracy and unbiased result plays a big role with system’s

reliability.

Theoretical Framework

This theoretical framework guided the researchers in their study. The developers

adapted the theory stated below and used it as a basic for this research.

Existing System

Inputting Calculate Pay check


employee via release via
name computer in accountan
Time in, excel t
Time out
on a
journal
Figure 1
Theoretical Framework of the Existing System

Proposed System

Enter -View employee Print pay


time record
username check for
-Calculate hour
& of work of all
each
password employees employee
-Create read,
update &
delete
employee

Figure 2

Theoretical Framework of the Propose System

The theoretical framework explains the study’s over all paradigm that served as

the work guide of the researchers. It details what data are needed and to be analyzed,

and deliverables of each activity performed the initial stages of the study to its

completion.

Conceptual Framework

The researchers have illustrated a paradigm to lay out the systematic process

and result of the propose system. This layout will give better perception on what the

concept of the whole study is based on.


Figure 3

Conceptual Framework of the Proposed System

Figure 3. shows the process and relationship in the proposed system. The

process starts by logging in the username and password of the employee. The sign in

and the sign out of the employees retrieved properly to stored from the database of the

system. The employees can see how many hours in their duty and they can there salary

every time where in there duties. Every recording is stored on the database to count

there hours in work and computing there salary in every work.