Makkah Merchandising (MM) LLC focused on integrating the revenue and expenditure cycles with the production cycle while continuing to use its existing payroll and HRM systems. Thus, like many companies, currently they have separate HRM and payroll systems. The payroll system, which is under the accounting departments control, produces employee paychecks and maintains the related records as required by government regulations. The payroll system uses batch processing because employees are paid biweekly. The HRM system, which the human resources department runs, maintains files on employee job history, skills, and benefits; these files are updated weekly. Each system maintains its own separate files, sometimes storing the same data, such as pay rates, in different formats. This practice makes it difficult for accounting personnel to prepare reports that combine HRM and payroll data. There are several problems with MMs payroll and HRM activities. Payroll processing costs have risen, and employees are unhappy with the lengthy delays required to obtain information about their benefits and retirement plans. In addition, the current HRM system makes it difficult to accurately track employee skill development, which impedes evaluating the effectiveness of MMs investment in training and continuing education. In addition, managers have tended to hire externally to meet new staffing needs, rather than promoting or transferring existing employees. These practices have hurt employee morale.

16. What do you think is the cause of the problem in MMs payroll and HRM dept.? How is this problem could be sorted out, give two reasons with explanation?

17. Current pandemic has made companies to adopt work from home (WFH) practices. What changes do you think must be needed to implement and supervise employees in the changed scenario?