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SALARY MANAGEMENT SYSTEM

NUR AFIQAH BINTI ISMAIL

(BTAL15040605)

BACHELOR OF COMPUTER SCIENCE

(SOFTWARE DEVELOPMENT)

FACULTY OF INFORMATIC AND COMPUTING

UNIVERSITI SULTAN ZAINAL ABIDIN (UniSZA)

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TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION

1.1 Background of study…………………………………………………………………… 3

1.2 Problem statement……………………………………………………………………… 4

1.3 Objective……………………………………………………………………………….. 5

1.4 Scope…………………………………………………………………………………… 5

1.5 Project planning………………………………………………………………………... 6

1.6 Limitation/Constrains of works………………………………………………………....7

1.7 Limitation of the system………………………………………………………………...8

CHAPTER 2 LITERATURE REVIEW

2.1 Introduction…………………………………………………………………………….. 9

2.2 Analysis of the manual system and existing system…………………………………....10

2.3 Analysis of different software available on market……………………………………. 11

2.4 Algorithm to be implement in the system ………………………………………………13

2.5 Comparison between previous journals………………………………………………... 14

2.6 Conclusion……………………………………………………………………………... 17

CHAPTER 3 METHODOLOGY

3.1 Methodology…………………………………………………………………………… 18

3.2 The SDLC Waterfall…………………………………………………………………… 18

3.3 Reasoning to choose Waterfall Model…………………………………………………. 20

3.4 Context diagram………………………………………………………………………... 21

3.5 Framework……………………………………………………………………………... 22

3.6 DFD Level 0…………………………………………………………………………….23

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3.7 DFD Level 1…………………………………………………………………………….24

3.8 ERD……………………………………………………………………………………..29

3.9 System Requirement…………………………………………………………………… 30

3.10 Conclusion……………………………………………………………………………. 32

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CHAPTER 1

INTRODUCTION

1.1 Background of study

Salary management system is a system where enable a company to handle salaries of

their staff. Every company pays salary to its staff. This work is done every month and record

of this activity is kept for further use. The work of salary payment is very important for

company. So this area is to be computerized to make process easy, quick, and secure and

reliable. Thus, a secured and reliable system is required to handle it. Manual system is a time

consuming task and it could be hard to handle with large number of data. There is always a risk

of human errors present in a manual system so the chances of error are very high and to figure

out such error is such a lengthy procedure. Company need to maintain computerized records

without redundant entries. That means that one need not to be distracted by information that is

not relevant, while being able to reach the information that is relevant much more quickly.

Salary management system, as described in introduction above, can lead to error free, secure,

reliable and fast information system. It can assist the management to concentrate on the salary

payment. It can help to calculate salary quickly. Thus it will help company in better utilization

of time. Technique to be proposed is rule based method. The staff will receive net payment

after their basic payment is calculated along with their earning and other deduction, if there’s

any.

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1.2 Problem statement

Manual system is a time consuming task and it could be hard to handle with large

number of data. There is always a risk of human errors present in a manual system so the

chances of error are very high and to figure out such error is such a lengthy procedure.

Company need to maintain computerized records without redundant entries. Furthermore, it is

also time consuming to calculate net payment for each staff manually. That means that one

need not to be distracted by information that is not relevant, while being able to reach the

information that is relevant much more quickly.

Most small companies are using a manual system to calculate earning, deduction and

net salary of their staff. They also have to maintain salary files manually. All this work requires

a lot of paper work, is extremely time consuming job, and accordingly costly as well, as they

have to hire more man power. Since there is always a risk of human errors present in a manual

system so the chances of errors are very high and to figure out such errors is also a very lengthy

procedure. Therefore, a company need to switch from a manual system to an automated

computerized salary management system.

The requirement of this system is to develop a web based application that is able to deal

with earning, deduction and net salary calculation of employees within the company and

maintain its database. Furthermore this system should be able to generate automatic files such

as payslips, earning files and deduction files in response of queries from the data stored in the

database.

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1.3 Objective

The objectives of the salary management are as follows:

- To design a system that can help a company to ease their workload on managing

employee salary in a more effective and efficient way.

- To develop a salary management system.

- To evaluate the functionality of the developed system

1.4 Scope

The scope of this system covers two types of users that will interact directly with this

system which are the staff and the company management staffs. The user that will be using this

system are staff and management staff.

1.4.1 Staff

Staff can access the system by logging in and will have their own user interface.

Staff can view and print their salary details and payslip.

1.4.2 Management Staff

Management staff can access the system by logging in and will have their own

user interface. Management staff can manage salary details, which means they

can add, update and delete the salary details. They can view report on salary and

print it. They can also view and print payslip.

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1.5 Project Planning

Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Briefing on FYP

Topic discussion & determination

Project title proposal

Submission of project description

Proposal writing – Introduction

Proposal writing – Literature Review

Proposal progress presentation & evaluation

Correction of proposal

Propose solution – Methodology

Proof of concept

Drafting report of proposal

Submission of draft of report to supervisor

Seminar presentation

Report correction

Final report submission

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1.6 Limitations/ Constraints of work

Constrains is a requirement or condition that the system must satisfy of outcomes that

the system must meet. A constraint can involve hardware, software, time, policy, law and cost.

System constraint also defines project scope. For example, if the system must operate with

existing hardware, it is a constraint that affects potential solutions. Regardless of the type, all

constraints should be identified as early as possible to avoid future problem and surprises. A

clear definition of project scope and constraints avoid misunderstandings that arise.

One of the limitation or constraint that been faced throughout the development process

is the internet connectivity. During each phase of development especially the early phase such

as the planning and analysis, the main source of information is from the internet. Hence, the

weak connection of internet during peak hours causes difficulties in carrying out the research

and information gathering for the completion of the task.

Apart from that, the main constraints faced in developing this project is the time. This

refers to the actual time required to produce a deliverable. In this case, it would be the end

result of the project. Since the time allocated or given to complete this project is shorter, there

are many things that need to be settled in the given period of time. Therefore, a proper time

management plan is needed to organize every task in each development phase.

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1.7 Limitation of the system

Though the system presents a range of options to its user, some intricate option could

not be covered into it; partly because of logistic and partly due to lack of sophistication. Paucity

of time is also major constraint, thus it is not possible to make the system full proof and

dynamic. Lack of time also compelled me to ignore some part such as storing old result of the

candidates.

Limitation of the system:

- The system has no facility for job management.

- The system does not provide accounting facility.

- The system is compatible for small company.

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

This chapter describe a literature review of the system developed. This include a

description of the existing system and comparison of the existing system with a new system

that will be developed so that the weaknesses can be overcome and the advantages will be

maintained. Besides that, this chapter will explain more about the system developed.

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2.2 Analysis of the manual system and existing system

In the existing system organizations manage their staff’ salary manually. Salary

calculation is error prone. This process is time consuming as salary should be calculated for

each and every staff manually. Thus the existing system decreases the efficiency of the

company.

Most small companies are using a manual system to calculate earning, deduction and

net salary of their staff. They also have to maintain salary files manually. All this work requires

a lot of paper work, is extremely time consuming job, and accordingly costly as well, as they

have to hire more man power. Since there is always a risk of human errors present in a manual

system so the chances of errors are very high and to figure out such errors is also a very lengthy

procedure.

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2.3 Analysis of different software available on market

There are many software available in the market that are being used by the company to

calculate the salaries of its employees. We are discussing two software here for example.

Salary Calculation Software.

This software is able to do calculations of employee salaries on the basis of data provided

by the work tracking system. It is basically a combination of two systems, work management

software and salary calculations. Second one is totally depending on the first one by taking data

as input from work management software and calculating the salary on the basis of this

data. The software has the following features:

- Planning Project.

- Keeping track of working results and helping managers to define work results.

- Helps to calculate salary from work result.

Analysis of Salary Calculation Software.

- This software is facilitating work management and task scheduling more than the salary

calculation. Salary calculation is one of its secondary feature, whereas work

management is its primary feature, which is not required by the organization.

- This software is not providing any feature to calculate taxes and social

securities.

- This software is unable to generate pay slips.

- The company has to purchase the license per user to use this software.

- This software is not providing any interfaces or plug-ins that can be

used to merge it with the existing system working within the organization.

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- As with the growth of company, it may require to enhance the system or if company

needs any amendments in the system, it would be very hard to achieve such goals as

the purchased software are delivered always in .Exe form.

Spine Payroll

This is a very simple, flexible and user-friendly payroll management software especially for

India, which takes care of all requirements related to accounting and management of employee

salary. Spine payroll stores complete records of employees, generates pay slips, attendance

register, computes all allowances, deductions, generates all statutory and MIS reports.

Analysis of Spine Payroll System.

This software, to some extent, might be the alternative of our software but still it is not

required by the organization due to the following reasons.

- The organization is already using employee management system which

is working perfectly. Therefore it is not wise to purchase another system which has

employee management system along with the salary management.

- Spine payroll system is specifically designed for a particular region India according to

the requirements of their organizations. In India tax system is different from other

country.

- Spine payroll system is not providing any plug-ins that could be helpful to merge it with

the existing system.

- It requires a license per user therefore it is an expensive solution.

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2.4 Algorithm to be implement in the system

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2.5 Comparison between previous journals.

Author/Year/Title Objective/Issues Result

Russell Bode (2000),

Payroll Management

Method and

Apparatus

A method and apparatus

for managing payroll, of

the type where

employees are paid

according to the time

actually attended or

worked.

The method involving preparing

a roster, storing the roster in a

processing means, receiving in

the processing means attendance

information pertaining to one or

more workers and comparing the

roster and the attendance

information by means of the

processing means and thereby

preparing a payroll.

Stevan P. Vasic

(2001), Method of

Payroll Access

A method for accessing

payroll. More

specifically, the present

invention relates to a

method for allowing

employees to receive

payroll and to access

payroll on demand, even

in advance.

A payroll access program

allowing an employee to request

access to payroll through a third

party. The third party receives the

request from an employee for

payroll access and then forwards

requested funds to the employee

on demand. The third party then

notifies the payroll service

handling the employee's payroll

to deduct the forwarded funds

from the employee's payroll

check and reimburse the third

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party for the funds forwarded.

The third party and the payroll

Service may also deduct and

receive a fee for the service.

Andrew Jeffrey Kelly

(2003), Modular

Service Payroll

System

A payroll system and

method for determining

compensation of

employees for work

during a pay period on

one or more projects.

The invention utilizes minimum

employee compensation amount

and the unit rate compensation

amount for each employee, and

compares the difference between

these amounts for each employee

with the outstanding debit

account amount for that

employee, and then determines

the employee's pay for the pay

period and whether the

employee's debit account amount

should be adjusted.

David Kahn, Barinder

Singh Saini, Svetlana

E. Kreimer, Shelley S.

Ferguson (1999),

System for Web-

Based Payroll and

Benefits

Administration.

Relates generally to the

field of electronic payroll

and benefit systems, and

in particular to various

aspects of online systems

designed to facilitate

online payroll and

benefits administration.

The System provides an

automated, centralized back-end

payroll service with a full-

featured web-based payroll

system. Both aspects of the

System have access to a central

database.

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James W.Canfield

(2002), Method and

System for Managing

Employee Access to

Payroll Information

A computer-based

method and system to

enable managing access

to payroll data for

employees.

The system is compatible with

network communications such as

the

Internet/intranet, cellular systems

and high bandwidth digital

communications So that

employees may be able to access

the system from remote locations

to receive payroll data and

direct deposit account data and

execute changes to their direct

deposit account data via the

Internet.

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2.6 Conclusion

This system is designed to replace the existing system so as to increase the efficiency

of a company. Staff salary is calculated depending on his working days. Other earning and

deduction are also calculated automatically and pay slips can be generated for all the employees

at a time. Customized reports can be generated for analysing the work pay patterns.

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CHAPTER 3

METHODOLOGY

3.1 Methodology

The most suitable and appropriate software development methodology we found for

our software development is waterfall software development model, which gave us a clear view

about our software and helped us to achieve our goal.

3.2 The SDLC Waterfall

Small and medium size software are usually divided into six stages that are interrelated

with each other in a top-down approach named as waterfall. The input of one specific stage is

the output of previous stage which initializes the next stage. At every step or stage of the model

some additional information is also added up into the input of that stage and generating the

result. But that additional information is restricted in scope and previous stages are directly

traceable.

The first stage of the waterfall model is planning stage in which the most critical task

is to clearly mention the high level requirements or goals of the software. It helps to make

feasibility and risks associated with the project and also provides the basic project structure.

The next stage is the requirement definition stage that takes goals as input from the

planning stage and then these goals are defined into a set of one or more requirements. Major

functionalities, initial data entities and the operational data areas are defined under this stage.

The input of design stage is the output of the requirement stage which is an approved

requirements documentation. In this stage the design elements are defined with the help of

interviews, prototypes and workshops conducted. These design elements consist of functional

hierarchy, business process diagrams, pseudo code and entity-relationship diagram. These

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design elements provide detail description about the software and each element is related to a

specific requirement.

The development stage is initialized by the previous design stage. At this stage the code

for the design elements of software is written and it provides the functional software

components.

Integration and test stage is provided the output of the development stage.

At this stage the different software functioning components developed in the previous stage

are integrated with each other to provide full fledge software project which is providing all the

high-level requirements. This software is also passed through different test cases to check the

validity, correctness, completeness and hence enables us to achieve our goals regarding our

project.

Finally, the installation and acceptance stage arrives. The software is loaded to the

server at site of customers and tested with different test cases once again to check the correct

working. If all this shows adequate results satisfying the customer then the software is handed

over to the customer formally.

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3.3 Reasoning to Choose Waterfall Model

As in this model all the phases are in a sequence and are dependent with one another

therefore a phase cannot be started until the previous phase is completed and fully documented.

This approach is most appropriate for our project, because all the requirements and goals of

our project are very clear. Secondly, it is easy to do work in components and waterfall model

is providing this approach. After the completion of all the phases individually, they are

integrated together. This model is very economical and risk free due to its sequential approach.

Figure 1: Waterfall Model Diagram

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3.4 Context diagram

Figure 2: Context diagram of Salary Management System

Figure above the context diagram for the Salary Management System. There are two

entities that involve in this system, which are staff and management staff also known as

management. Each entity have their own module and process as shown above.

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3.5 Framework

A framework is a real or conceptual structure intended to serve as a support for the

building of a software product. It is often a layered structure indicating what kind of program

can or should be built and how they would interrelate. A framework may be for a set of

functions within a system and how they interrelate with each other. The figure below illustrate

the framework of the proposed system, Salary Management System.

Figure 3: Framework of Salary Management System

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3.6 DFD Level 0

Figure 4: DFD Level 0

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3.7 DFD Level 1

3.7.1 Manage Staff

Figure 5: DFD Level 1 for Manage Staff

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3.7.2 Manage Salary Information

Figure 6: DFD Level 1 for Manage Salary Information

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3.7.3 Manage Earning

Figure 7: DFD Level 1 for Manage Earning

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3.7.4 Manage Deduction

Figure 8: DFD Level 1 for Manage Deduction

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3.7.5 Manage Payslip

Figure 9: DFD Level 1 for Manage Payslip

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3.8 ERD

Figure 10: ERD

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3.9 System requirement

The following is the list of software and hardware required for the development of

system for this project.

3.9.1 Software requirement

XAMPP

- Manage connection between Apache and MySQL in the localhost server.

Google Chrome

- Browser to run the system.

Windows 8.1 Single Language

- Operating system of the computer used in developing the system.

Edraw Max

- Design the context diagram, framework, data flow diagram (DFD) and

entity relationship diagram (ERD) of the system.

Microsoft Word 2013

- Preparation of the documentation of the project proposal

Microsoft PowerPoint 2013

- Preparation of slides for the presentation of the project proposal.

Dropbox

- Backup data

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3.9.2 Hardware requirement

Laptop

- Model: HP Pavilion Notebook 15-ab063TX

- Processor: Intel® Core™ i5-5200U CPU @ 2.20GHz 2.19GHz

- RAM: 4.00GB

- Hard disk: 1TB

Printer

- Model: Brother DCP-J100

Hard disk

- Model: Transcend StoreJet®

- Storage: 500GB

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3.10 Conclusion

Software development methodology is an important element to consider because the

software must be delivered to the client on time and it also must meet the user requirement and

needs. Choosing a right methodology and approach in developing the software is a critical

process because it depends on the type of software to be developed and also time and cost

constraints.

Other than that, this chapter focus primarily on the system design and modelling that

makes the implementation process easier and efficient. There are seven main modules in this

system namely, login, manage staff, manage salary information, manage earning, manage

deduction, manage payslip and generate report. Each modules present in the system has its own

detailed process. The database system consist of five tables, which are login, staff, salary,

earning and deduction that serve as data storage to store valuable information.