bisa assignment
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Sri Lanka Institute of Information Technology
IM208 - Business Information Systems and Analysis
Group Assignment
Project Report
Submitted by:
1. BM14018688 – I.T.M.Indurage
2. BM14421440 – R.A.C.P.Ranasinghe
3. BM14044398 – D.M.Wijesinghe
4. BM14400728 – W.M.C.A.Herath
5. BM14404160 – S.N.M.N.S.Kosgolla
Submitted to: 20/09/2015
Name of the Lecturer-in-Charge: Ms.ChathurangikaKahandawarachichi
Date of submission: 20/09/2015
Business Information system and analysis
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System Analysis Of
The HR System In Ceylinco Insurance Plc.
Business Information system and analysis
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Contents 1. Introduction ......................................................................................................................... 1
1.2 Project Sponsor ................................................................................................................ 2
1.3 Propose new system ........................................................................................................ 3
1.3 Old information system ..................................................................................................... 3
2. System request ...................................................................................................................... 4
3.1 Project description ............................................................................................................ 7
3.2 Problem Drilldown ............................................................................................................ 8
4. Feasibility Analysis .............................................................................................................12
4.1 Technical Feasibility ........................................................................................................12
4.2 Resource Feasibility ........................................................................................................13
4.3 Schedule Feasibility .........................................................................................................14
4.4 Cultural Feasibility.......................................................................................................15
Referencing ..............................................................................................................................16
Appendix ...................................................................................................................................17
Page 1
1. Introduction
Ceylinco insurance PLC was started in 1939 which was registered as a company in 1987.
Ceylinco insurance PLC has started business activities as a company in 14th of January 1988.
Today Ceylinco has become the leading insurance company in the island. Ceylinco insurance
has developed its career from strength to strength facing many obstrucles and challenges.
Ceylinco insurance PLC becomes famous with their theme “Big or small Ceylinco protect them
all” which was quite simple and embedded in the hearts of the people.
Ceylinco insurance PLC has a goal to become the leader in providing protection and financial
security in Sri Lanka and in select international market.
The mission of the company is to provide protection and financial security of the highest quality
to society while adding to shareholder’s wealth and recognizing rewarding and value the dignity
of our staff.
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DGM AGM
Senior Manager
Assistant Manager
Executive
Junior Executive
Clarical staff
Supportive staff
1.2 Project Sponsor
The human capital management system in Ceylinco Insurance PLC which is discussed in this
project developed by a software development company called IOM. The assistant manager of
the company Mr. Navin S Jayatahne had acted as a project sponsor to develop this existing
system. This system was developed to cater all the human resource functions associated with
the company. So the project team of the software development company (IOM) has worked with
Mr. Navin S Jayarathne to develop this project successfully. Mr. Navin S Jayarathne worked
with the project team throughout the project contributing his maximum effort.
The following are the duties and responsibilities of Mr. Navin S Jayarathne who acted as the
project sponsor of Ceylinco Insurance plc.
Guiding the project team to make the project successfully.
Providing the primary information to project team about the main HR function of the
company.
Discussing company polices (leave) with the project team
Acting as the primary point of contact for the system from business point of view.
Maintaining the budget of the project.
Approving the key deliverables.
Maintaining the overall quality of the project.
Mr.Navin S Jayarathne joined hands with the top management and the company IT department
to make this system success. A rough hierarchy of Ceylinco insurance PLC is as below which
was used in providing loans, leaves and salary increments
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1.3 Propose new system
Proposed the HR system which is being used by the company is outsourced to a software
development company called IOM. The development team has used prototyping methodology
to the system. The basic steps the project team as use to develop the system is as follows.
Planning the project
Gathering requirement associated with HR
Analysis
Designing
Software requirement specification
Implementation
Unit testing
System testing
Maintenance
1.3 Old information system
Ceylinco insurance PLC has used a manual system to perform the function related to the
human resource management. Handling HR function manually leads to a lot of paper
workbecause the no of employee recruitments increased with expansion. Basic HR function like
OT (over time), leaves and reward management consumed lot of time as it was done through
written documents. Maintaining a file for each employee in the company was difficult because
the company faced lot of problems due to the manual system existed in the company. Using
primary way to handle HR with the expansion of the company reduced the effectiveness and
efficiency which directly had an impact to the profitability of the company.
Further Ceylinco Insurance PLC needed to introduce a special reward system to the sales
employee by providing them a target; this was not possible through the manual system due to
less accuracy and transparency.
So this reason took initiatives to develop an automated system which was support by problems
like required extra human effort, consuming time, difficulty to access required information easily
and complexity in HR functions to handle manually.
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2. System request
Project name – Human capital management system
Project sponsor-
Name: Mr. Navin .S. Jayarathne
Department: Human resource management
E-mail: Navin_hrceyns.lk
Phone: 0114702764, 0773585705
Business need - To reduce complexity in handling employee day to day activities by eliminating
conflicts to increase employee satisfaction by paying more attention employee motivation
Functionality-
(1) Payroll management function
The systems calculate monthly salary of permanent non sale employee
depending on the organization hierarchy. Increment, allowances, bonuses,
advances are considered in the calculation of the monthly salary. This calculation
is done after deducting the loans installment of the loans provided to the
employee and adding annual salary increment. The system has designed to
provide the annual salary increment based on the organization hierarchy.
The systems consider the following loans in calculating the monthly salary.
(i) Loans to purchased land
(ii) Sundry loans
(iii) Distress loan
(iv) Festival loan
Further monthly sales of sales employee is calculated by system in order to
provide a commission of 10% based on their performance (archiving target). The
system generates a report on payroll management.
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(2) Employee attendance recording
Marking the employee attendance and generating a report about
employee attendance and leaves taken by employee is done by the system. This
helps the employee to plan the leaves provided by the company making the right
decision by themselves. The systems maintain a leave record of the employee.
Employee attendances are recorded using the finger print technology.
(3) Online leave requesting
Employees are provided a service to request leave through the internet.
This service is very much useful in emergency situation.
(4) Training and recruitment
The systems provide information about permanent non sale employee
training in a generated database which will give each employee an opportunity to
participate in a training program in the company for career development
Technical training based on different department
Outbound training depend on the position of the employee
Further system handles new recruit in sales department who are given an on
job training. This system also provided information through a database to
make easy for the HR manager to decide whether to use internal or external
recruitment method
(5) Computerized qualification inventory and personnel replacement chart.
The system provides a computerized qualification inventory, listing
employee’s education, career and development, special skills etc. that will
enhance the accuracy of decision taken by the top management in selecting
inside candidate for promotion.
Save time of the top management.
Increase employee satisfaction.
Computerized Personnel replacement chart shows the present performance
and promotability of inside candidate that reduce time and cost in performance
evaluation and increase effectiveness of the employee as they become
motivated.
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6) Employee Queries
HR Manager can handle complains and the problems regarding the
employee through the system.
7) Suwa-sampatha insurance scheme
The system provides details about the suwasampatha insurance scheme
that is providedby the company to the entire employee and in an incident
employee can claim the insurance benefit easily through the system.
Expected value
Tangible
The system reduce the administration cost
It reduces the cost on rework and paper work.
Reduce communication cost among employees
Intangible
Increase employee satisfaction
Ability to motivate employees
Increase efficiency of administration
As the system generate reports and database easy access to information and
information is accurate and well secured
Reduce time consuming in decision marking
Special issue or constraints
The project needed to be completed in year.
Limited budget for the system approved by the total management.
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3. Business problem
3.1 Project description
Ceylinco insurance PLC had used a manual system to handle Human resource function in the
company. The company has faced many difficulties in managing activities related to the
employee in the company with the expansion of the company handling basic HR functions like
attendance, leave, monthly salary, EPF, ETF and etc. in a primary way was difficult.
Further the company needed to introduce a special reward system to the sales employee by
providing them a target but this was not possible through the manual system due to complexity
and less accuracy. Ceylinco insurance PLC implemented this system to introduce a reward
system to the sales employee to motivate them in order to increase the profitability of the
company.
The company faced difficulties in implementing the method of commission as a motivator to the
sales employee using the manual HR system.
Ceylinco insurance PLC also faced Problems in giving bonus to the permanent sale employee.
As the company provide 2 types of bonuses to the employee normally.
Annual bonus
Profit based bonus
So these problems took initiatives to develop the new automate system which was supported by
following benefits.
The new human capital management system reduces inefficiency in handling the human
resource.
It reduces the time and administrative cost.
It increases employee motivation that paved path to enhance profitability.
It increase accuracy and avoid human errors that occur when dealing with files in the
manual system.
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3.2 Problem Drilldown
Brief statement of
the problem
Brief statement of impact Priority Benefits when the
problem where solve
1. Complexity in
calculating the
monthly salary of
the employee
manually.
The calculation must be done
with the consideration to
Loans installment
Annual salary
Increment
Advances
Allowance
Further the company needed
to introduce bonus and
commissions to the non-sale
and sales employees to
motivate them.
High
Increase the accuracy in
the calculation and
allowed to offer 10%
commission to sales
employees depending on
the achievements and
allowed to provide annual
and profit based bonus to
employee. This will
increase employee
satisfaction
2. Time take to
request leaves,
long paper based
procedures
besides it and
unclearly
attendance
marking on
books.
Employee attendance was
marked on a book which is
unclear and less accurate. It
also consumes time to get
access to the previous
records.
The leave taking procedure
was complete as it requires
filling forms and waiting to be
approved. Approving takes
time as it was manually
compared with the leaves of
other employee in the
particular department.
Medium
The annual employee
attendance is
generated in a report
and stored to a
database where the
management can get
access easily.
The employee are
provided a service to
request leaves
through
internet.(online leave
management)
The employee can
view their leave
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balance.
The employee
satisfaction increased
as it is easy and less
procedural.
Reduce the cost on
paper work.
3. No proper
performance
evaluation and
updating
employee
qualification.
Less accuracy in selecting
inside candidate for
promotion and doesn’t offer
salary increments for the
employee which will cause
employee dissatisfaction.
High
Employee satisfaction.
Less time and cost on
recruiting employing.
Eliminating the time
and cost on induction.
4. No efficient way
of
communicating
in the HR
department of the
company.
Putting notice on boards
about office functions and
other company HR meetings
are not an efficient way of
communicating and will lead
to unawareness and lack of
relationship between HR
manager and the employee in
the HR department.
High
No conflict in
employee participation
on company functions.
Increase employee
involvement in the
company HR
decisions.
Employee satisfaction
increase.
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Increase the
relationship between
HR manager and
employees in HR
department.
Effective method of
communication within
the HR department
that save time and
money.
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5. Difficult in
accessing
information about
the trainee by the
top management.
Since the company doesn’t
properly maintain information
about the trainee it consumes
time when making decision
about the company training
program.
Difficulty to get information
about the trainee at a glance
as it was done manually.
It reduces accuracy of the
decision.
High
Employees are satisfied
as the chance of getting
a training increase.
Clearly information about
the technical trainee
based on their
department.
Specified information
about outbound trainee
depending on the
position.
Reduce the time spend
on making decisions.
6. No proper and
efficiency way to
handle employee
problems and
complains by the
top management
of the company.
The top management of the
company found it difficult to
handle the problems and
complains regarding the
employees. It consumed
more time of the HR
manager.
moderate Save the time of the top
management in handling
problems and complains
regarding employee
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4. Feasibility Analysis
4.1 Technical Feasibility
Ceylinco insurance PLC had used a manual process in Human resource functions inthe
company. Dealing with HR function manually is time consuming, costly and less accurate
which led the company to develop an automated system to manage human resource
function in the organizations.
In Consideration with the technical feasibility of the system total manual process was
automated. So the system required a minimum technology as follows.
1.8 Hz faster Dual core CPU with x 64 Compatibility.
1GB of Ram ( minimum )
40GB of HDD
Display compatible 1024 x 768
500 GB HDD or higher 8 GB RAM or higher for the server with Intel xeon 3G Hz
x64 processor.
Broad band connection with 16 Mbps
LAN Connection with 100 mbps
Finger print readers
Ceylinco insurance PLC had a medium scale familiarity with the technology because most
of employee had the basic knowledge in handing computers and the system was developed
with a primary technology to make it easier for the users.
The Software the involved with the system is office package.
The users had a low familiarity with applications used in the system. So the total Technical
feasibility of the project was medium which made the development company (IOM) to train
some selected employee during the first 3 months after the implementation of the system.
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4.2 Resource Feasibility
The IT department of the company was not capable of developing the proposed system by Mr.
Navin S. Jayarathne. So the Project as to be outsourced to a Software development company
namely IOM.
Since the Company automated the HR function which was done manually, the company had to
allocate a higher budget to provide the necessary technology as it was a total conversion.
The Company used the existing resources that are being used before at on optimum level to
implement the new system.
Further HR department joined hands with the IT department and the project team used the
existing resources and brought additional technologies component needed to the automated
system. So the company provided the required technology such as computers, Software,
Printers and Internet facilities etc.
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4.3 Schedule Feasibility
Schedule feasibility is tool that estimate the time period taken in the development of the system.
It basically highlights the time taken in the development life cycle. The action plan of the project
will generally indicate the progress of the project in the specified time.
Ceylinco insurance PLC has provided a period of one years to develop and implement the
system it is very much important to complete the project in the specified time because time
means money and it is a major concern to all the project regardless to the field.
According to the information reveled there had been a scope creep inthe project to add the
functionality, online leave management but the development team has implemented and trained
the employee in the specified period. So the Schedule feasibility of the project was high.
The tasks that add value in the action plan of the company is as follow.
Identify the need of an
Automated system
Understanding about the system requirement
Outsource the system to Software Company
Installing the new system
Verifying the error and issue raise in the new system.
Providing a training to the employee
Using the new system
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4.4 Cultural Feasibility
Cultural feasibility analysis deals with the cultural issue that will rise with the implementation of
the new system. The issues usually rise with users of the system due to changes in the pattern
of doing task as they are used to it.
Ceylinco insurance PLC got the support of the employee to implement the automated system
because the employee were in an opinion that that the system would make them convenient
and increase accuracy. The top management of the company also
Further the online leave management system, attendance recording, computerized qualification
inventory and personal replacement charts were some functionality beyond the existing culture.
The employee accepted these changes in the culture which highlights a higher cultural
feasibility.
The employees were in attitude to experience the new automated system with an attention to
learning this mentality was developed by the HR manager which supported the cultural
feasibility.
The development team provided training for some of the selected employees for a period of 3
months which improved the cultural feasibility.
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Referencing
Ceylinco insurance PLC (2015). Available at:http://www.ceylinco-insurance.com/
(Accessed: 28 August 2015).
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Appendix
Interview report
Interview notes approved by : Mr. Navin S Jayaratne
Person interviewed : Mr. Navin S Jayaratne
Interviewed date : 25th August 2015
Interviewer : All the members
Primary purpose: To get detailed information about the HR system of the company as well as to
identify the problems and the reasons to automate the manual system to automated HR system.
Summary of the Interview:
We as a group basically identify the problems to an automated system which was
complexity of the manual and was not capable of introducing a new reward system of the
employee. Further the company needed computerized qualification inventory. The company also
needs to improve the accuracy& reduce the cost associated with the administrative activities. The
main goal of the project was to perform HR functions more efficiently and effectively which will
enhance employee Satisfaction.
Detailed notes:
Functionality
Payroll management function
Employee attendance recording
Online leave requesting
Training and recruitment
Computerized qualification inventory and personnel replacement chart
Problems
Complexity in calculating the monthly salary
Time take to request leaves
No proper performance evaluation and updating employee qualification.
No efficient way of communicating in the HR department of the company.
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Meeting Agenda
Questionnaire
1. What is the major business need to introduce the propose system?
2. What are the problems in handling HR related activities using manual system?
3. How the monthly salary using automated system?
4. What is the way of measure the performance evaluation and how to update that using
this system?
5. How the top management communicate with the employee through the system?
6. How the company manage employee attendance using the system?
7. What are the main problems and opportunities that made to develop the system?
8. What are the benefits to the business by the project?
9. What are the main application (Software) involved in the system?
10. What are the technical aspects using the system?
11. The degree of the technical feasibility of the organization?
12. How you identify the hardware items that are need to the system?
13. About the time taken to implement the project?
14. Did you identify all the functionalities at the beginning?
15. Did the development company provide a proper training to the employee about the new
system?
16. The support by the Top management to develop a system
Name Position Purpose Meeting
Mr. Navin S Jayaratne
HR Manager
Detailed information about the HR system Problems led to automate the manual system.
25th August 2015 10:30am-11:30pm
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Interview note