bisa assignment

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Page 0 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

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Page 1: BISA Assignment

Page 0

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

Page 2: BISA Assignment

Business Information system and analysis

Page 1

System Analysis Of

The HR System In Ceylinco Insurance Plc.

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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

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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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Business Information system and analysis

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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