Automated Payroll Management in Ugandan Organizations
Payroll software automates payroll processing by gathering the attendance, leaving
data, computing pay and salary, generating pay slips, sending statement on salary
transfer to bands and processing income tax and statutory reports. The need for payroll
automation is directly proportional to the employee population in an organization.[1]
Software solution provider FreeBalance has been tapped to provide an Integrated
Personnel and Payroll System (IPPS) to the Republic of Uganda in 2009 which is to be
implemented in five phases. It is aimed at upgrading public service efficiency in the
country.[2]
Uganda’s manufactured exports specializes in low technology products like textile yarn
and fabric and its very low production of simple labor-intensive products like footwear
or travel goods suggests that its dominating textile exports are primarily resource based.
The country aims to promote science and technology for industrial development, but is
challenged by the shortage of skilled technical and management personnel and the lack
of standards and quality awareness. A culture of manufacturing quality and efficiency is
starting to emerge and long and short term measures will have to be implemented to
sustain its growth.[3] Improvements in machinery and equipment, inventory control and
training systems, process technology and research and development strategies can be
done at the firm level. Bolstering the basic and high tech infrastructure in both foreign
and local firms in Uganda will lead to the expansion of its manufacturing and the
dominance of independent firms among foreign companies offers growth opportunities
for the former.[4]
Case studies have shown that automated personnel information systems in Uganda
cannot be effective unless source data and management of electronic records are
addressed from the start.[5]
A computerized automated information management system has been started by the
defense ministry of Uganda in 2009 to address numerous paper-work, manipulation by
paymasters, deficient response in accidents and ghost soldiers in payrolls. The system
disallows impersonation in the army and provides fingerprint security and identification
cards with biometric data on the soldier, name-specific pay slips and easier processing
of survivors’ benefits.[6]
Upon mentioning their number, officers would give their cards or place their left thumbs
on a machine and their bio-data would appear on a screen. The system would enable
effective record-keeping, the scanning and archiving of important documents and the
improved handling of logistics, including tracking fuel.[7]
The St. Mary’s Hospital Lacor in Uganda chose Microsoft Dynamics NAV 2009 with
Microsoft SQL Server 2008 data management software to integrate its procurement,
inventory, and accounting processes in one business management system. The non-
profit charitable institute also functions as a nursing school and a research facility.
To maintain the confidence of foreign donors, hospital administrators had to ensure
financial transparency, reduce operating costs and comprehensively control inventory
and stores. The installed system enabled the hospital to fully automate financial controls
for the first time, resulting in upgraded budgeting and management of information,
complete visibility of inventory and absence of human error risk in accounting. It has
also allowed administrators better decision making based on business intelligence and
to be free for higher value tasks.[8]
The Microsoft partner provided full transparency over cash and charge payments,
integration of teaching hospital records with financial systems and adequate local
support.[9]
[1] “Payroll Processing in Minutes – Completely Automated”, PRLog, 11 September 2009,
<http://www.prlog.org/10339234-payroll-processing-in-minutes-completely-automated.html>
[accessed 9 May 2011]
[2] “Government of the Republic of Uganda Selects FreeBalance Software for Integrated Personnel and
Payroll System (IPPS)”, PRWeb, 11 November 2009, <http://www.prweb.com/releases/FreeBalance/Uganda_IPPS/prweb3182934.htm> [accessed 9 May 2011]
[3] “Africa’s Technology Gap: Case Studies on Kenya, Ghana, Uganda and Tanzania”, July 2003,
<http://www.unctad.org/en/docs/iteipcmisc13_en.pdf> [accessed 9 May 2011]
[4] Rajah Rasiah and Henry Tamale, “Productivity, Exports, Skills and Technological Capabilities: A
Study of Foreign and Local Manufacturing Firms in Uganda”, United Nations University, Institute for
New Technologies, January 2004, <http://www.intech.unu.edu/publications/discussion-papers/2004-1.pdf> [accessed 9 May 2011]
[5] Piers Cane and Anne Thurston, “Personnel Records: A Strategic Resource for Public Sector
Management”, pdf, March 1997, <http://www.irmt.org/documents/research_reports/personnel/IRMT_personnel_recs.PDF>
[accessed 10 May 2010]
[6] Henry Mukasa, “Uganda: Defense Computerizes Information System”, allAfrica.com.,18 November 2009, <http://allafrica.com/stories/200911190325.html> [accessed 10 May 2011]
[7] ibid
[8] “Hospital Integrates Inventory with Accounts in Single Business Management System”, AkiliAfrica, pdf,
January 2010, <www.microsoft.com/casestudies/ServeFileResource.aspx?..> [accessed 10 May 2011]
[9] ibid
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