THE HUMAN RESOURCES

MANAGEMENT AND PAYROLL

CYCLE
LEARNING OBJECTIVES
After studying this chapter, you should be able to:

1. Describe the major business activities and related information processing

operations performed in the human resources management (HRM)/payroll cycle.

2. Discuss the key decisions to be made in the HRM/payroll cycle and identify
the information needed to make those decisions.

3. Identify the major threats in the HRM/payroll cycle and evaluate the adequacy
of various internal control procedures for dealing with them
The human resources management (HRM)/payroll cycle
- is a recurring set of business activities and related data
processing operations associated with effectively managing
the employee workforce.
The following are the important tasks in human resource management

1. Recruiting and hiring new employees

2. Training
3. Job assignment
4. Compensation (payroll)
5. Performance evaluation
6. Discharge of employees due to voluntary or involuntary
termination
Overview of HRM Process and Information Needs
To effectively utilize the organization’s employees, the HRM/payroll system must collect
and store the information managers need to answer the following kinds of questions:

● How many employees does the organization need to accomplish its strategic
plans?
● Which employees possess specific skills?
● Which skills are in short supply? Which skills are in oversupply?
● How effective are current training programs in maintaining and improving
employee skill levels?
● Is overall performance improving or declining?
● Are there problems with turnover, tardiness, or absenteeism?
THE HUMAN RESOURCE AND MANAGEMNET AND PAYROLL CYCLE