Masumbuko Co assembles Bajaj and Toyo. The company owns two (2) assembly units to which parts are delivered and assembly into either Bajaj or Toyo. Bajaj are assembled by the local workforce. The local usually work for eight (8) hours a day, however they regular work extra hours as Masumbuko Co has tends to have lot of order to meet. There is one shift per day. Mass production are currently limited by lack of robots.

Wages system shift workers Shift workers arrive for work at 08:00am and biometric system is used. After the biometric authenticate and captures the worker identification, the worker is then logged in as being at work. Shift workers are paid from the time of logging in. the log in process is not monitored as it assumed that shift-workers workers would not work unless log in on the biometric system. 4 Shift-workers are divided into two groups of 10 staff, each under supervision of a foreman. Each group has a defined number of Bajaj and Toyo to manufacture. At least 20 Bajaj and 20 Toyo have to be manufactured each day by each group. If deemed necessary, overtime may be worked to meet daily targets. The foreman is not required to monitor the extent of any extra hours worked though he needs to make sure that workers arent taking prolonged or unnecessary breaks which will automatically forces them to work extra hours and being paid for extra time. Shift workers log off at the end of each shift through the biometric scanner.

Payment of wages. Details of hours worked each week are sent electronically to the payroll unit. There is a computerized wages system that allocates the hours worked by employees to each employees wage records. One staff compare the records of the biometrics to the computerized wage system and enter a code to confirm their accuracy. This code also serves as an approval to calculate wages payable. The code word is the name of local sports club, whom the Accountant support, and thus the code is known around the department. Each week the computerized system calculates: gross wages, statutory deductions and net payable. This is then sent to Accounts office. Data Entrants in the accounts office simply ensure there are bank details on the request, then approve and directly pay the employee using online banking system. Every few week, the financial manager reviews the total of the wage payable to ensure accuracy.

Termination of employees On rare case, staff leave Masumbuko. When such unfortunate happens, the registry unit sends an email to payroll section detailing the termination date of the employee and any holiday that wan not claimed. The registry does not monitor whether the payroll unit acknowledging receipt of the email.

Required: (a) Identify and four (4) weaknesses in the wage system of Masumbuko

(b) Discuss the possible effect of each weakness identified in (a) above

(c) Provide recommendation to deal with each weakness in (a) above