Title: Personnel Record System
1: EXECUTIVE SUMMARY
The objective of this study is to investigate the importance of the personnel record system. The method of investigation is through a secondary method of data collection. To provide greater understanding of the reason for implementing the personnel record system, this paper assesses the personnel record system of Best Manufacturing Construction Inc and discovers that the company is still operating a manual method of storing and managing employees’ data. Thus, the paper suggests a computerised personnel record system for Best Manufacturing Construction Inc in order that the company can implement an innovative personnel record system appropriate to its needs.
I thank my supervisor for the support provided to achieve the best in this module. [STUDENT PLEASE ADD TO THIS IF APPROPRIATE)
3: TERM OF REFERENCE
The Harvard referencing is used to list all the references used to prepare this study.
4: COMPANY INTRODUCTION
Best Manufacturing Construction Inc was established in 1947. The company’s executive consists of a managing director, a secretary, and an administrative assistance who is in charge of the day-to-day activities of the company. The illustration in fig 1 reveals the organisational structure of Best Manufacturing. Currently, the company has 25 employees; however, there is no dedicated human resources department to manage employees. Thus, the company does not use a modern personnel record system.
The objective of this study is to investigate the importance of a personnel record system for Best Manufacturing Construction Inc.
Fig 1: Organisational Structure of Best Manufacturing Construction Inc
5: METHODS OF INVESTIGATION
The data are collected through secondary research. To collect data through secondary research, a researcher searches several electronic databases in order to locate appropriate research papers. The academic books, research papers written by ACAS, and UK government database are searched to collect data relevant to this study. Typically, the database of Advisory, Conciliation and Arbitration Service (ACAS) is searched for data collection purposes. Moreover, the Google books database is also searched to collect secondary data.
The advantage of secondary research is provided by Trochim & Donnelly (2007) who argued that secondary data are inexpensive to obtain. Unlike primary research, which is time consuming, secondary method of data collection is faster, and data can be collected from a wide range of sources. Although a secondary method of data collection may not be appropriate for all projects, secondary research method is appropriate for this research because the researcher is able to locate a wide range of appropriate related secondary data, and primary research is too expensive and time-consuming.
From researcher’s investigation, the study has been able to provide the facts and findings.
6:FACTS AND FINDINGS
From the researcher’s investigation, the paper has been able to identify several reasons for installing personnel record systems. Moreover, the paper has identified the weakness of current employee record system used by Best Manufacturing.
6.1: Reasons for having personnel record system.
According to ACAS (2009), there are several reasons for an organisation to have personnel record system. Some of the reasons are as follows:
Planning: The personnel record system helps an organisation to achieve effective planning. Typically, effective planning depends on the extent to which an organisation can keep accurate and up-to-date information. A personnel record system is important if an organisation wishes to get the best from its employees. With a good personnel record system, a capable manager will be able to identify which staff resources are available to meet production in order to achieve organisational goals.
With a personnel record system, an organisation will have an effective record of employee turnover, absence levels, lateness, discipline etc. Based on this record, an organisation will be able to take appropriate and timely action – now and in the future.
Formulation and implementation of employee policies: Personnel record systems help an organisation to formulate and implement appropriate policies concerning employees. Essentially, staff development, training and effective recruitment play important roles in achieving organisational goals. With a personnel record system, an organisation will be able to make effective decisions about employees with regards to employee training, promotion, and dismissal.
Preparation of correct pay for worker: With a record system, an organisation is able to prepare effective workers’ payroll. A personnel record system will also help an organisation to make decisions on employee issues such as holidays, pension, and other entitlements, and benefits.
Compliance with government regulations: UK law makes it mandatory for organisations to keep an accurate record of their employees in order to help them to develop “policies free that from any bias on grounds of sex, sexual orientation, religion or belief, race, age or disability”.(acas 2009, p 4). Typically, Government has the right to know the number of employees in an organisation, and how much an employee is being paid. The information provided in the employee’s record system will assist the government to decide whether an organisation complies with the National Minimum Wage Act. (Martin & Jackson 2008, National Minimum Wage, 2009).
6.2: Assessment of the personnel record system of Best Manufacturing Construction Inc
The assessment of recording keeping in Best Manufacturing Construction Inc has revealed that the company has not implemented a modern personnel record system. Typically, the company’s personnel record system has become outdated and not fit for purpose. The company records all the personnel data that consists of employee contact details in a hard cover A4 book. Best Manufacturing Construction Inc has 25 employees. However, the company does not have an HR /personnel department. An administrative assistant is employed to deal with all matters regarding employees, which seems rather amateur and inadequate. However, it is also perhaps rather typical of how the system of recording personnel matters is somewhat crude in many firms. ACAS (2009) has argued that it is critical for an organisation to keep employee’s personal details such as name, address, date of birth, educational qualifications, national insurance number, and other details that could be used to identify an employee. Thus, employee details need to be stored securely in the personnel record system. Best manufacturing is still using a manual method of keeping record.
Many organisations have started implementing computerised staffing record systems in order to allow easy analysis of personnel data. Martin & Jackson (2008) identified several disadvantages of the manual method of employee record keeping. Locating employee records through manual method is time consuming, and it is easy to lose data stored in a file cabinet; however, data stored this way is arguably secure and safe from electronic or computer failure. Moreover, it is very difficult to make a data back up or copy with data stored through manual method, and all data in a filing cabinet could be easily lost through theft and accidental occurrence such as fire, flood, and other natural disasters. So, in theory at least, a computer model is more secure and to be recommended.
The investigation conducted on Best Manufacturing Construction Inc has revealed that the company is still operating an outdated employee record system. This paper has identified several disadvantages that an organisation could encounter with this manual method of employee record keeping. Effective personnel record system through a modern method, if operated properly, will help an organisation to formulate and implement appropriate policies that could help an organisation to achieve competitive advantage.
Moreover, an organisation will be able to implement effective planning, as well as satisfying legal requirements, with a personnel record system. The findings have revealed that the manual method that Best Manufacturing is still implementing will not help the company because the company will not be able to plan, formulate, and implement appropriate policies regarding its employees.
Thus, the paper provides recommendations that Best Manufacturing either installs and effective employee’s record system or, perhaps, considers outsources the whole of employee matters to an outside company.
This paper recommends that Best Manufacturing should start using a computerised personnel record systems. Martin & Jackson (2008) argued that a computerised personnel record system through the integration of database system would assist an organisation to formulate meaningful decisions about employees. Moreover, a computerised system will enable an organisation to monitor administrative tasks, and this will help keep effective record on the progress of each employee.
Using a computerised record system, Best Manufacturing will be able to save lot of time when making employee payroll. It is essential to realise that to calculate employees’ monthly salaries, it is essential to implement a series of calculations such as adding employee’s salaries, overtime, compensation and benefits. With a computerised system, the company should be able to implement employee payment with less time, with a high level of accuracy.
With the implementation of a computerised record system, Best Manufacturing will also be able to achieve a high level of accuracy in employee records. The company will be able to update company records with ease, and this method will save a great deal of time, perhaps even enabling the company to reduce staff, or perhaps use a part-time administrative assistant or an outside agency.
Moreover, Best Manufacturing will not have the fear of losing company data with a computerised record system – in theory, at least. Usually, a computerised system allows the company to make the back up of employee records in case of accidental loss of data. Some organisations that still implement a manual method of record keeping have lost data worth millions of pounds because of the occurrence of theft, fire and other natural disasters; however, it is worth saying that companies that have not backed up effectively have also lost data. With back up systems, an organisation will be able to retrieve the data loss through unforeseen circumstances.
Despite the advantages that Best Manufacturing could achieve from installing a computerised database record system, the company still needs to provide an adequate security system for the database system.
There could be data loss through theft if the company does not provide adequate security for its new computerised personnel record system. A security system is essential in order to enhance data protection and maintain employee confidentiality, and thus comply with the law.
Best Manufacturing could implement database security by integrating encryption in the database system. The encryption will prevent unauthorised access to data in the database system because the information that passes through the computer will be presented in an unreadable text to a non-authorised user.
Moreover, Best manufacturing could also provide security for the computerised record system through the integration of decryption. The decryption system is to authenticate the identity of a user before being allowed to get access to the company’s database. Thus, all authorised users should be provided with strong usernames and passwords to be used to get access to data in the database. (Sudarshan, 2006).
Finally, the company should install strong antivirus such as Norton antivirus software onto the company’s desktop and laptop computers in order to prevent viruses damaging the computer system. (Sudarshan, 2006).
ACAS (2009), Personnel data and record keeping, Advisory, Conciliation and Arbitration Service, UK.
Martin M & Jackson T. (2008) Personnel Practice – 4th Edition. London, Chartered Institute of Personnel and Development.
10 : Bibliography
National Minimum Wage (2009) Government approves new £5.80 minimum wage rate (online) (cited 22nd September 2010) Available at http://www.minimumwage.org.uk/news.asp.html
Sudarshan, S (2006) Database and Application Security, Computer Science and Engg. Dept I.I.T. Bombay.
Trochim & Donnelly (2007), The Research Methods Knowledge Base, 3rd Edition. USA, Atomic Dog Publishing.