Improving Payroll Preparation Through TQM


Posted by: meikah | 21 October 2011 | 2:38 am

If there’s a process that is cluttered with data or variables, it is payroll preparation. Data such as days worked, minutes late, salary adjustments, retro pay, overtime premiums, among other things. One mistake in a figure or a zero or even a decimal point would result in erroneous numbers.

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I’m writing about this topic today, because I have a hand, albeit indirectly, in the payroll preparation in the office. For the past years, we always get questions from employees about their pay or deductions. Sadly, they don’t question when there are additions to their final pay computation for a particular period.
Well, here’s a case study on how Total Quality Management (TQM) can fix payroll problems. The problems cited in the case study are:
  • accuracy of data
  • lack of standard operating procedures

All of which can compound delays.  Read the case study here.

Now, if you are involved in funding payroll, the case study may also help you sort out delays in remittance such as identifying factors of delays:

  • clearing time of banks
  • time difference

Payroll is an integral part of an organization. It’s like paying your customers on time. So, you do your best, find ways to provide payment for good services rendered. Definitely, it’s not something you do in the nick of time.

Filed under: Finance, Payroll, Processes, Quality, TQM

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