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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue V, May 2024
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Impact of Computerized Payroll Systems on Employee
Productivity: A Case Study of Babcock University Staff School
Tepede Dipo, Chukwulobe Ifeanyi, Fayemi Taiwo Amos, and Ojuawo Olutayo.
Babcock University, Nigeria
DOI : https://doi.org/10.51583/IJLTEMAS.2024.130517
Received: 07 May 2024; Accepted: 16 May 2024; Published: 15 June 2024
Abstract: This paper examines the impact of computerized payroll systems on employee productivity, focusing on Babcock
University Staff School. Drawing upon historical context, contemporary typologies, and challenges in adoption, it explores the
relationship between these systems and productivity, satisfaction, and motivation. Using a cross-sectional survey design and
statistical analysis, the study reveals a significant positive correlation between computerized payroll systems and employee
outcomes. Recommendations include investing in training, considering organizational context, and prioritizing continuous
improvement. Future research should explore long-term effects, user experience, organizational culture, emerging technologies,
and comparative studies on different payroll systems.
Keywords: Computerized Payroll, Productivity, Motivation, Satisfaction, Training, Babcock University Staff School
I. Introduction
1.1 Background of Study
Payroll encompasses the procedural frameworks employed to reimburse employees for their contributions within an
organizational context, adhering to stipulated terms of employment. Integral to the employer-employee relationship, payroll
administration stands as a principal motivation for seeking employment, epitomizing the expectation of equitable and punctual
compensation for rendered services. This ethos finds resonance in ethical doctrines, such as the biblical injunction to administer
just and equitable rewards to laborers (KJV, Colossians 4:1).
The historical trajectory of payroll administration traces back centuries, where manual bookkeeping and accounting principles
were employed to manage business transactions and employee compensation, albeit susceptible to error and delay. The advent of
computer technology heralded a transformative shift, albeit persisting alongside contemporary manual systems in select contexts.
Varied organizational contexts yield diverse manifestations of payroll records, encompassing a spectrum of employee identifiers,
compensation elements, and statutory deductions. Reflective of organizational policy, payroll frequency ranges from bi-monthly
to monthly disbursements, with year-end bonuses being a customary practice in some settings.
Contemporary payroll systems exhibit a diverse array of typologies, comprising do-it-yourself (DIY) models, payroll software
applications, and outsourced payroll services. DIY payroll entails manual processing with rudimentary tools, often favored by
small-scale enterprises for its cost-effectiveness, despite inherent error-prone tendencies. Conversely, payroll software automates
administrative functions, aligning with organizational policies and optimizing accuracy and compliance. While its implementation
demands training and incurs costs, the resultant operational efficiencies benefit organizations of all scales. Outsourced payroll
services, delegated to third-party vendors, alleviate administrative burdens, allowing organizations to focus on core competencies.
However, cost considerations and relinquished control constitute potential drawbacks of this model.
The deployment of computerized payroll systems engenders a paradigm shift, delivering accurate, timely, and reliable
compensation information to employees, thereby mitigating the challenges inherent in manual systems, such as payment delays
and computation inaccuracies. Consequently, enhanced employee morale and productivity ensue, facilitated by streamlined
administrative processes and expedited decision-making through access to timely reports. Centralized databases underpinning
computerized systems, typified by relational database architectures, not only facilitate real-time data access and updates but also
safeguard sensitive payroll information from unauthorized access, thereby fortifying data security protocols.
1.2 Problem Statement
In recent times, there is a plethora of evidence supporting the use of computerized payroll software (Ahmed et al., 2023; Zhao and
Rabiei, 2023), however, challenges persist in their adoption, implementation, and utilization within organizational contexts. These
challenges include resistance to change, technological barriers, phobia regarding automation, overreliance on technology,
insufficient post-implementation training and support, and concerns regarding data security and privacy.
1.3 Aim and Objectives of the Study
This study's main goal is to find out how computerized payroll systems affect workers' productivity. It focuses on the Babcock
University Staff School instance. The goals are:
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To evaluate the impact of automated payroll systems on worker productivity.
To determine the factors that contribute to the adoption and utilization of computerized payroll systems
To investigate the connection between the use of computerized payroll systems and employee satisfaction.
1.4 Research Questions
The following research questions were deduced from the aim and objectives.
What is the influence of computerized payroll systems on employee productivity?
What factors contribute to the adoption and utilization of computerized payroll systems?
How does employee satisfaction relate to the implementation of computerized payroll systems?
1.5 Research Hypotheses
Ho1: There is no significant relationship between the adoption of computerized payroll systems and employee productivity.
Ho2: Employee productivity has no significant difference with the implementation of computerized payroll systems.
Ho3: Employee satisfaction has no significant difference with the implementation of computerized payroll systems.
1.6 Model Specification
The study makes use of a conceptual framework that was inspired by organizational behavior literature, technology adoption
theories, and earlier payroll system studies. Constructs including perceived usefulness, usability, organizational preparedness,
worker satisfaction, and productivity are all integrated into the model.
1.7 Apriori Expectation
Computerized payroll systems are expected to have a favorable effect on employee happiness and productivity, according to the
literature currently in publication. It is also anticipated that elements like corporate culture, system usability, and training would
have an impact on how well these systems are adopted and function.
1.8 Scope of Study
This study primarily examines the effects of computerized payroll systems on Babcock University Staff School. The study's focus
is on measuring staff productivity and satisfaction once the payroll system is put into place.
1.9 Significance of the Study
Payroll administrators, HR professionals, and organizational decision-makers should find immense value in the study's
conclusions when it comes to the setup and maintenance of computerized payroll systems in the context of the elementary school
systems in Nigeria. In the same vein, the study augments the existing corpus of knowledge on the use of technology, and how it
impacts worker satisfaction and productivity.
1.10 Organization of Subsequent Chapters
The succeeding chapters of this paper are structured as follows: Chapter 2 illustrates a detailed testimonial of appropriate literary
works consisting of academic structures, and empirical research studies, coupled with academic designs. Chapter 3 describes the
research study technique used in this research consisting of the research study layout, information collection approaches together
with logical methods. Chapter 4 discusses the findings of the empirical analysis, accompanied by discussions and interpretations.
Ultimately, Chapter 5 provides conclusions, and recommendations based on the study findings, along with avenues for future
research.
II. Literature Review
2.1 Technology Adoption Theories
The foundational stage of most organizations that utilize technology is identifying the elements that drive the user’s adoption of
technology (Taherdoost, 2018). Consequently, a comprehension of why and how employees adopt technology systems remains
crucial for their successful implementation (Samadbeik, 2023). Likewise, technology adoption theories provide frameworks for
analyzing this behavior (Gyawali et al., 2023), but their applicability to computerized payroll systems demands critical
evaluation. Hence, this paper will examine three dominant theories and their applicability to computerized payroll systems.
The Technology Acceptance Model (TAM) is prominent and has been extensively used with computerized payroll systems (Wu
& Yu, 2023). Even though it is based on perceived utility (PU) and perceived ease of use (PEU), there are concerns from scholars
regarding its drawbacks (Adi Nugroho & Susanto, 2023; Julianto & Daniawan, 2022; Malatji et al., 2020). For instance, PU
might not fully capture the complex value proposition of payroll systems, encompassing factors like accuracy, security, and data
privacy. Additionally, PEU may not adequately reflect user experiences with evolving interfaces and functionalities. There is also
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the condemnation of TAM's tendency to overlook organizational factors and broader contextual elements (Hu et al., 2024;
Venkatesh and Bala, 2008). In the case of computerized payroll systems, organizational readiness, and compatibility are pivotal
factors often neglected by TAM.
Unified Theory of Acceptance and Use of Technology (UTAUT): UTAUT builds upon TAM (Al-Emran et al., 2020; Khan and
Al-Emran, 2023), incorporating performance expectancy, effort expectancy, social influence, and facilitating conditions alongside
PU and PEU. Studies suggest its applicability to payroll systems (Hakim & Madyatmadja, 2023; Tomić et al., 2022), particularly
in understanding the impact of training and social support on adoption. However, some concerns remain about the generalizability
of UTAUT across diverse organizational contexts and user demographics (Blunt et al., 2022). For example, Bayaga & du Plessis
(2023) show that some scholars argue that the current UTAUT framework may be somewhat obsolete in the actual usage of
systems (including payroll systems). Furthermore, a meta-analysis (Dwivedi et al., 2020) provides insights into the strengths and
limitations of UTAUT. While it supports the model’s validity, it also discusses areas for improvement and future research.
Diffusion of Innovation Theory (DOI): DOI emphasizes the communication and social dynamics influencing technology adoption
(Hakim & Madyatmadja, 2023). In the context of computerized payroll systems, this theory aligns well with the need for
organizations to embrace efficient payroll processing methods. Also, studies (Call & Herber, 2022) have examined how
managers' championing and peer influence impact payroll system acceptance and found that DOI effectively explains the
diffusion process in organizations seeking to enhance their technology systems. However, critics argue that DOI oversimplifies
the adoption process by neglecting the organizational culture's impact on technology adoption (He & Lee, 2020; Dearing, 2021).
This is particularly relevant when considering the complex nature of organizational structures in adopting computerized payroll
systems.
Table 2.1: Deciphering the Adoption Code: TAM, UTAUT, and DOI Compared
Table 2.1 compares the three dominant technology adoption theories. TAM suggests that high PU and PEU lead to higher
adoption rates but might not capture deeper social influences or organizational contexts. On the other hand, UTAUT offers a
richer picture, incorporating social and contextual factors, but its complexity might require more effort in application than TAM.
Lastly, DOI emphasizes the communication and social dynamics driving adoption, looking beyond individual perceptions. It
might be less applicable to individual technology decisions but excels in understanding overall innovation diffusion within
organizations.
In the context of critical considerations and emerging perspectives, other frameworks, such M-TECH model (Granić, 2022)
emphasizes the role of organizational context, job characteristics, and individual technology experience in shaping adoption
behavior. Some other studies suggest that emotions like anxiety and trust in the system significantly impact user acceptance (e.g.,
Naneva et al., 2020). These factors might not be adequately captured by traditional models. In addition, the evolving
technological landscape, such as cloud-based systems, mobile functionalities, and integrations with other HR applications
introduce new complexities that existing theories might not fully address. Furthermore, Gartner reported that 39% of employees
experienced challenges in adapting to new HR technologies (Kropp, 2022).
2.2 Impact on Job Satisfaction and Motivation
A study by Ahmed et al. (2023) found a positive correlation between the implementation of computerized payroll systems and
increased job satisfaction among employees. The authors developed a web-based payroll management system (WPMS) that
reduced errors, generate reports, and improved payroll processing time, contributing to overall job satisfaction with a usability
satisfaction score of 87.8%. Similarly, a study (Elrehail et al., 2019) highlights the relationship between employee satisfaction and
organizational performance. However, critics argue that while initial satisfaction may be high, the continuous reliance on
technology may lead to job dissatisfaction over time. According to Harvard Business Review article, the lack of human
interaction in payroll processes could contribute to a perceived loss of control and personalization (Seppälä & McNichols, 2022).
Feature TAM UTAUT DOI
Focus
Individual Individual Social System
Key Factors
PU, PEU PU, PEU, Others Relative Advantage, etc.
Strengths
Simple, Widely used Comprehensive, Nuanced Social dynamics, Diffusion process
Weaknesses
Limited scope Complex Not individual-focused
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Studies such as Murla et al. (2020) and Palladan & Palladan (2018) emphasize the role of computerized payroll systems in
reducing errors and ensuring accurate compensation, positively impacting job satisfaction. They claim that the automation of
calculations and data processing minimizes the chances of payroll-related mistakes. Also, a report by Accenture (2022) indicates
that organizations implementing advanced computerized payroll systems reported an increase in payroll processing efficiency,
leading to improved employee motivation. Conversely, some researchers, including Heissler et al. (2022), argue that dependence
on technology may create a sense of detachment among employees. Hence, overreliance on automated processes may diminish
the perceived value of individual contributions, potentially affecting motivation negatively.
Research by Ahmed et al. (2023) suggests that computerized payroll systems empower employees to access and manage their
payroll information when equipped with self-service options. This autonomy is linked to increased job satisfaction and
motivation. Similarly, a group of payroll merchants, including Pierce (2023) and PaySlip (2020), suggests that employees
appreciated the flexibility, simplicity, engagement, and convenience of self-service payroll options, leading to improved
motivation and satisfaction. On the contrary, studies by Tement et al. (2020) raise concerns about the potential for increased stress
and dissatisfaction when employees are required to navigate complex self-service interfaces. Also, a 2021 study by the Pew
Research Center found that 36% of American adults lack basic computer skills, potentially hindering their ability to adapt to new
payroll systems (Auxier & Anderson, 2021). This suggests that the effectiveness of self-service payroll features may vary based
on individual technological proficiency.
There is the challenge of automation replacing the role of humans. A 2017 report by McKinsey Global Institute projects that 800
million jobs will be replaced by automation by 2030 may have substantiated these fears. Payroll professionals are most likely to
be affected (Manyika et al., 2017). Likewise, a 2022 report by the World Economic Forum suggests that only 38% of workers
globally feel prepared for the alterations demanded by automation (World Economic Forum, 2022).
The impact of computerized payroll on job satisfaction and motivation is diametrically opposite. While it offers advantages like
accuracy, efficiency, and empowerment, concerns regarding job displacement, technology phobia, and human connection cannot
be ignored. Organizations must implement these systems thoughtfully, prioritizing employee training, support, and clear
communication to ensure a smooth transition with minimal negative impact on job satisfaction and motivation.
2.3 Training and Change Management
The research conducted by Fariza et al. (2019) emphasizes the importance of training programs in facilitating the transition to
payroll systems. Effective training plays a role in improving employees' understanding and proficiency, which leads to
implementation and increased productivity. Similarly, Ferrari (2022) highlights that the level of skills acquired after training
significantly impacts employee's confidence in embracing change. Therefore, matching skills positively influences employees'
confidence when it comes to change.
Furthermore, according to a study conducted by Murla et al. (2020) organizations that invest in change management strategies
during the implementation of computerized payroll systems witness levels of employee engagement and satisfaction. However,
some scholars, like Tement et al. (2020) argue that despite the emphasis on training organizations often fail to provide support
and reinforcement needed after implementation. This insufficient post-implementation training may lead to underutilization of
system capabilities and frustration among users.
Studies by Jamuar (2024) demonstrate that organizations with well-designed training programs observe significant improvements
in payroll processing efficiency and accuracy. Consequently, properly trained employees are better equipped to leverage the
functionalities of computerized payroll systems, resulting in fewer errors and faster processing times. However, authors like
Ajana (2020) argue that the focus on efficiency metrics may overshadow the importance of user experience and job satisfaction.
Hitherto, employees pressured to meet efficiency targets may feel overwhelmed and disengaged, undermining the intended
benefits of the system.
Research by Rafferty & Jimmieson (2017) underscores the significance of change management in addressing employee resistance
and fostering a culture of acceptance. Accordingly, transparent communication and involvement in decision-making processes
can mitigate resistance and promote buy-in from employees. Equally, a study by Shepherd et al. (2019) found that organizations
prioritizing cultural alignment and employee involvement during system implementation reported higher levels of user adoption
and satisfaction. Inversely, some scholars, such as Li et al. (2021), argue that ingrained organizational cultures and resistance to
change pose significant barriers to successful implementation. Hence, training and change management efforts may be futile if
not tailored to address deeply rooted cultural challenges.
Rafferty & Jimmieson (2017) emphasize the need for ongoing training and support beyond the initial implementation phase.
Hence, continuous learning opportunities and feedback mechanisms enable organizations to adapt to evolving technologies and
user needs, ensuring long-term success. According to a report by Harvard Business Review (Chandrasekaran & Toussaint, 2022,),
organizations that prioritize continuous improvement initiatives witness sustained employee engagement and satisfaction with
computerized payroll systems. Nevertheless, critics argue that sustaining training and change management efforts over time
requires significant investment and commitment from organizational leaders (Ferrari, 2022). Without adequate resources and
leadership support, initiatives may falter, leading to stagnation and eventual system obsolescence.
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III. The Conceptual Framework
This conceptual framework illustrates the relationship between implementing computerized payroll systems and employee
productivity within the context of Babcock University Staff School. It identifies the key variables and outlines the hypothesized
pathways through which computerized payroll systems influence employee productivity, satisfaction, and motivation.
3.1 Key Components:
1. Computerized Payroll Systems (Independent Variable):
Automation and Efficiency: Reduced manual errors, faster processing, and streamlined operations.
Accessibility and Transparency: Easy access to payroll information, transparency in deductions and benefits.
2. Employee Productivity (Dependent Variable):
Task Efficiency: Time saved on payroll-related queries, allowing more focus on primary job responsibilities.
Reduced Administrative Burden: Less time spent on payroll issues, increasing time for core functions.
3. Mediating Variables:
Job Satisfaction: Enhanced satisfaction due to accurate and timely salary disbursements.
Employee Motivation: Increased motivation from reliable and transparent payroll processes.
Reduced Payroll Errors: Minimization of disputes and corrections related to payroll, leading to a more stable and
focused workforce.
4. Moderating Variables:
Organizational Support: Training and support provided by the organization to facilitate the transition to and use of
computerized payroll systems.
Technological Infrastructure: Adequacy of the IT infrastructure supporting the payroll system.
User Experience: The ease of use and user-friendliness of the payroll system interface.
3.2 Visual Representation
Figure 4.0: The Conceptual Framework
This framework provides a structured approach to understanding how computerized payroll systems can influence employee
productivity by mediating variables like job satisfaction, motivation, and reduced errors, moderated by organizational support and
infrastructure.
Computerized Payroll System is at the top as the independent variable that influences job satisfaction. Job Satisfaction leads to
Employee Motivation, suggesting that satisfied employees are more motivated. Employee Motivation and Reduced Payroll Errors
(due to efficient payroll systems) both contribute to increased Employee Productivity. The Moderators (Organizational Support
and Technological Infrastructure) influence the strength and direction of the relationships between computerized payroll systems
and the other variables.
IV. Methodology
This section outlines the systematic procedures for investigating the impact of the payroll system on employee productivity at
Babcock University Staff School, Ilisan-Remo, Ogun State.
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4.1 Research Design
A quantitative research design utilizing a cross-sectional survey is employed to gather firsthand information on the relationship
between the independent variable (payroll system) and the dependent variable (employee productivity).
4.2 Population of the Study
The study focuses on the staff of Babcock University Staff School, Ilisan-Remo, Ogun State.
4.3 Sample Size and Determination
The sample size of 82 staff members is determined using the Taro Yamane (Yamane, 1964) sampling technique (Yamane, 1964).
4.4 Sample and Sampling Technique
The Taro Yamane method is utilized to select a sample size from the population of 82 staff members.
4.5 Data Source and Data Collection Instrument
Primary data is collected through a validated questionnaire (Google Form) structured to address research objectives. The
questionnaire utilizes a 6-Likert scale for responses.
4.6 Method of Data Analysis
Data collected will be analyzed using Statistical Product and Service Solutions (SPSS), employing descriptive and inferential
statistical tools such as frequency analysis, mean, standard deviation, simple regression analysis, and Z-test to test formulated
hypotheses.
Table 3.1: Method of Data Analysis
S/N
Hypotheses
Tools of Analysis
1
H
o
1: There is no significant relationship between the adoption of
computerized payroll systems and employee productivity.
Simple Linear Regression
2
H
o
2: Employee productivity has no significant difference with the
implementation of computerized payroll systems.
Simple Linear Regression
3
H
o
3: Employee satisfaction is negatively correlated with the
implementation of computerized payroll systems.
Simple Linear Regression
4.7 Validity and Reliability
The data collected cover all relevant aspects of job satisfaction, employee motivation, payroll errors, and productivity. Experts in
human resource management and information systems were consulted and reviewed regarding the items to confirm they
adequately cover all dimensions of the constructs. Cronbach’s alpha was used to assess internal consistency to ensure reliability
(Vaske et al., 2017).
V. Findings and Discussions
This chapter presents the findings of a study on the effects of a computerized payroll system on employee productivity, focusing
on Babcock University Staff School, Ilisan Remo, Ogun State, Nigeria. It consists of two sections: one detailing respondent
response rates and the other presenting descriptive statistics, hypothesis tests, and discussions.
5.1 Response Rate
A total of 81 responses were collected from the 81 Google Form questionnaires administered, indicating a 100% response rate.
This high response rate is deemed very good, according to established criteria (Yamane, 1964).
Table 4.1: Response Rate
Categories
Target Respondents
Response Rate (%)
Retrieved
81
100
Unretrieved
0
0
Total
81
100
Source: Field Survey Results, 2024
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5.2 Descriptive Analysis and Interpretation
Descriptive analysis was conducted on various variables using mean scores and standard deviations. The results are presented in
detail in Table 4.2.1, which provides insights into respondents' perceptions regarding the impact of the computerized payroll
system on productivity. The field labels are SA (Strongly Agree), A (Agree), PA (Partially Agree), PD (Partially Disagree), D
(Disagree), and SD (Strongly Disagree).
Table 4.2.1 - Descriptive Analysis of the impact of computerized payroll system on workers productivity
A
PD
SD
%
%
%
Mean
STD
I agree that the computerized payroll system in my
organization is user-friendly
46.9
2.5
0.0
5.14
0.833
The computerized payroll system has reduced the
occurrence of payroll errors
45.7
6.2
0.0
4.96
0.914
The computerized payroll system integrates very well
with other HR systems in this organization
44.4
2.5
0.0
5.11
0.791
The computerized payroll system has improved the
efficiency of payroll processing
51.9
2.5
0.0
5.01
0.814
The computerized payroll system has positively
impacted overall payroll management in this
organization
48.1
3.7
1.2
4.83
1.093
The system's responsiveness in addressing any issues
or queries related to payroll processing is positively
encouraging
46.9
4.9
0.0
5.04
0.993
The computerized payroll system has enhanced data
security and confidentiality of payroll information
49.4
0.0
0.0
5.01
0.901
There has been a high overall productivity since the
introduction of the computerized payroll system
50.6
2.5
0.0
5.05
0.757
Source: Field Survey Results, 2024
Table 4.2.1 displays respondents' perceptions regarding various aspects of the computerized payroll system's impact on
productivity, with mean scores and standard deviations indicating levels of agreement or disagreement. The results from the
regression analysis suggest a significant positive relationship between the adoption of computerized payroll systems and
employee productivity. The findings counters hypothesis one which states there is no significant relationship between the
adoption of computerized payroll systems and employee productivity. This aligns with existing literature (Nwankpa and
Roumani, 2024; Palladan and Palladan, 2018), emphasizing the benefits of automated payroll systems in enhancing efficiency and
productivity.
Table 4.2.2 - Descriptive Analysis of adoption and utilization of computerized payroll systems
SA
A
PA
PD
D
SD
%
%
%
%
%
%
Mean
STD
The computerized payroll system has positively
influenced my work efficiency
25.9
51.9
16.0
3.7
2.5
0.0
4.95
0.893
The computerized payroll system influenced my job
satisfaction and motivation
21.0
63.0
11.1
3.7
1.2
0.0
4.99
0.766
I believe the computerized payroll system has
positively influenced the overall work environment and
collaboration within this organization
28.4
50.6
16.0
2.5
1.2
1.2
4.99
0.929
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The computerized payroll system has influenced my
ability to manage my work hours and schedules
effectively
19.8
55.6
13.6
3.7
7.4
0.0
4.77
1.052
Source: Field Survey Results, 2024
Table 4.2.2 summarizes the descriptive analysis of the adoption and utilization of computerized payroll systems at Babcock
University Staff School. It shows varying levels of agreement among respondents regarding the system's impact on work
efficiency, job satisfaction, collaboration, and scheduling management. The findings from the regression analysis indicate a
significant positive relationship, suggesting that the implementation of automated payroll systems motivates worker productivity
which counters hypothesis two which states employee productivity has no significant difference with the implementation of
computerized payroll systems.
The results support existing literature (Willcocks, 2024; Ahmed et al., 2023), highlighting the positive impact of implementing
automated payroll systems on worker productivity. This includes efficiency in payment processing, timely salary disbursement,
and improved organizational competitiveness through responsive salary management.
Table 4.2.3 - Descriptive Analysis of how employee satisfaction relates to the implementation of computerized payroll systems
SA
A
PA
PD
D
SD
%
%
%
%
%
%
Mean
STD
The computerized payroll system has reduced the
occurrence of payroll errors
29.6
45.7
17.3
6.2
1.2
0.0
4.96
0.914
The training provided for using the computerized
payroll system is satisfactory
32.1
46.9
17.3
2.5
1.2
0.0
5.06
0.842
I am satisfied with the level of customization and
flexibility offered by the computerized payroll system
to meet the organization's specific needs
38.3
45.7
6.2
4.9
3.7
1.2
5.06
1.088
I am satisfied with the accessibility of my payroll
information through the computerized system
24.7
54.3
12.3
7.4
1.2
0.0
4.94
0.885
The timeliness of salary payment is satisfactory since
the implementation of the computerized payroll system
23.5
56.8
16.0
2.5
1.2
0.0
4.99
0.783
I am satisfied with the communication channels and
support provided regarding the computerized payroll
system
28.4
44.4
18.5
2.5
4.9
1.2
4.85
1.097
I am satisfied with the overall training and support
provided during the transition to the computerized
payroll system
19.8
65.4
12.3
1.2
0.0
1.2
5.00
0.758
I believe the computerized payroll system has
improved the accuracy of my personal payroll-related
information, such as deductions and benefits
19.8
69.1
8.6
1.2
0.0
1.2
5.04
0.732
Source: Field Survey Results, 2024
Table 4.2.3 summarizes the descriptive analysis of employee satisfaction concerning the implementation of computerized payroll
systems at Babcock University Staff School. It shows varying levels of agreement regarding the system's impact on reducing
payroll errors, training satisfaction, customization, accessibility of payroll information, timeliness of salary payment,
communication channels, overall training support, and accuracy of payroll-related information. The findings from the regression
analysis indicate a significant positive relationship, suggesting that the implementation of automated payroll systems predicts
employee satisfaction. The result counters hypothesis three which states employee satisfaction is not positively correlated with the
implementation of computerized payroll systems.
The results support existing literature (Zayed et al., 2022), highlighting the positive impact of implementing automated payroll
systems on employee satisfaction. The timely payment of wages and salaries, instant access to payroll information, and increased
transparency contribute to enhanced employee satisfaction, reinforcing the importance of automated payroll systems in
organizational settings.
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VI. Conclusion
This study delves into the multifaceted impact of computerized payroll systems on staff productivity, using Babcock University
as a case study. It elucidates how such systems significantly overhaul organizational payroll processes. By scrutinizing potential
benefits and implementation challenges, we draw upon literature on technology adoption theories and their effects on employee
motivation and satisfaction. Moreover, we emphasize the pivotal roles of training and change management.
VII. Recommendations
Drawing from the findings, several recommendations can enhance payroll system effectiveness:
Investment in Training and Change Management: Organizations should prioritize comprehensive training programs and change
management techniques to facilitate a smooth transition to computerized payroll systems. Continued investment in training and
ongoing support tailored to users' roles and needs is crucial for skill development and user satisfaction.
Consideration of Organizational Context: Organizations must tailor their approaches to change management, communication, and
training to their unique organizational context and culture to overcome resistance and promote acceptance among employees.
Integration of Self-Service Options: Providing employees with self-service options to access and manage their payroll
information can empower them and boost motivation and job satisfaction. However, ensuring accessibility and usability for all
employees is essential.
Precision and Efficacy Focus: Prioritizing reliability, efficiency, and accuracy in payroll processing is paramount. Employers
should continuously improve features and functions to reduce errors, expedite workflows, and provide accurate payroll
information promptly.
Continuous Improvement: Cultivating a culture of continuous improvement is essential. Organizations should regularly evaluate
system efficacy and user experience, adjust training programs based on feedback, and adapt to technological advancements and
regulatory changes.
VIII. Future Studies
Further research avenues include:
Long-Term Effects: Investigating the enduring impacts of computerized payroll systems on employee satisfaction and
productivity through longitudinal studies can provide insights into sustainable system development.
User Experience: Researching the usability, accessibility, and satisfaction of computerized payroll systems using controlled trials
and human-centered design concepts can uncover areas for optimization.
Organizational Culture: Exploring how company culture influences technology adoption and change management can inform
more effective implementation strategies.
Emerging Technologies: Examining the effects of emerging technologies like blockchain and artificial intelligence on payroll
systems can guide future system development initiatives.
Comparative Studies: Comparative studies on different types of payroll systems can aid organizations in selecting and
implementing the most suitable option.
IX. Summary
In summary, the implementation of computerized payroll systems significantly influences worker productivity, job satisfaction,
and organizational effectiveness. By understanding the factors influencing technology adoption, implementing efficient training
and change management strategies, and prioritizing ongoing improvement, organizations can maximize the benefits of these
systems, fostering positive outcomes for both employees and the enterprise as a whole.
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Authors
Dipo Tepede is a recognized expert in Process and Project Management, holding a Master Black Belt in Lean Six Sigma,
certifications as a Professional Project Manager and Business Analyst from the Project Management Institute, and as a SAFe
Scrum Master from Scaled Agile. He obtained his undergraduate degree from Obafemi Awolowo University and an MBA from
the University of Gavle, Sweden. His academic journey expanded to Arden University in the United Kingdom, where he explored
a Master of Science in Data Analytics and Project Management. Currently pursuing a Ph.D. in Computer Science at Babcock
University, his research focuses on Machine Learning in Cybersecurity, showcasing his commitment to advancing knowledge in
the field.
Ifeanyi Chukwulobe is an accomplished and effective Information and Communications Technology Professional who possesses
over 25 years’ experience in Software Development, Database Design and Administration, Computer Training, Networking,
Customer and Vendor Relationship Management. He has designed, implemented, and deployed commercially viable
applications. He has vast experience in business process automation including sequential and conditional workflows. He has over
ten years of experience in QMS auditing and he is currently a Lead Auditor with respect to ISO 9001: 2015 Standards. He holds a
B.Sc. in Computer Science from the University of Nigeria and an M.Sc. in Software Engineering from the University of
Liverpool. He is currently pursuing