Negotiation in Management Decision Making Essay

Having been approached by The Director of the Cowley Council Council (CCC) regarding an industrial dispute with their refuse collectors, a report has been prepared to give insight into the field of negotiation and aid the council in their talks with the refuse collectors. The dispute is primarily concerned with CCC’s plans to change working practices but there are also a number of other issues regarding pay, shift patterns and recent cuts in the training budget and expenses. The refuse collectors are threatening to go on strike if their demands are not met, an action that the council would undoubtedly like to avoid. According to Rubin and Brown (1975), negotiation refers to a process in which individuals work together to formulate agreements regarding an issue or issues in dispute. An agreement will only occur if the offers made are accepted by both of the parties (Neale & Northcraft 1991) and should lead to order and stability, foster social harmony, increase feelings of self-efficacy, reduce the probability of future conflict, and stimulate economic prosperity (Rubin et al 1994). Getting the negotiation game right is ever important for managers â€Å"as the global economy expands, as the service sector grows, as corporate restructuring continues and as employees continue to be concerned with managing their own careers† (Neale and Bazerman 1992: 3). The initial stages of the report will cover theory and research on the decision-analytic approach to negotiation and discuss its relevance and potential use for CCC regarding its dispute with the Cowley refuse collectors. I will then identify potential biases and pitfalls that can act as barriers to effective negotiation that CCC should try to avoid. Finally I will conclude and outline suggested proposals for CCC to consider with the aim of assisting and improving their negotiations with the refuse collectors. The decision-analytic approach to decision making is a more pragmatic alternative to the dominant psychological and economic perspectives, which contain a number of limitations. The individual-attribute literature fails to measure dispositions adequately, the situational literature does not consider the importance of the negotiator’s perceptions in interpreting situational characteristics (Neale and Bazerman 1991: 20) and the game theory unrealistically assumes â€Å"impeccably rational, supersmart people† (Raiffa 1982, 2001). What differentiates the decision-analytic approach is its focus on â€Å"how erring folks like you and me actually behave† rather than on how we would behave if we were â€Å"smarter, thought harder, were more consistent, were all knowing† (Raiffa, 1982: 21). Previous psychological and economic approaches have focused on describing how people make decisions or prescribing how to improve decision making. However, â€Å"very little interaction has occurred between the descriptive and prescriptive camps† (Neale and Bazerman 1991: 20), and it is Raiffa’s (1982) avocation of an â€Å"asymmetrical† prescriptive/descriptive relationship that makes the decision-analytic approach stand out, â€Å"creating a prescriptive need to descriptively understand how negotiators actually make decisions† (Bazerman et al 2001). Many scholars hold the view that the prescriptions gained from this model are more valuable than those offered by more traditional approaches (Lax and Sebenius 1986). Raiffa’s framework for approaching effective negotiations distinguishes three sets of information, a combination of which determines the structure of the negotiation game: each parties alternative to a negotiated agreement, each parties set of interests, and the relative importance of each parties interests. â€Å"To develop agreement, people need to get a good understanding of their own preferences and priorities, to communicate those to their counterpart, and to integrate information about other’s preferences and priorities into their own understanding of the problem at hand† (De Dreu et al 2000). Before CCC enter into any negotiations with the refuse collectors, it is imperative to determine a Best Alternative To a Negotiated Agreement (BATNA), â€Å"the standard against which any proposed agreement should be  measured† (Fisher, and Ury 1981). Negotiations can be greatly improved by identifying a BATNA and â€Å"carefully evaluating the negotiated agreement against that alternative† (Ertel 1999). This helps negotiators fix a reservation point, a lower bound, which is crucial to monitor throughout the negotiation. Agreements that provide more value than the BATNA are preferred over impasse; likewise any agreements that provide less than the BATNA should be rejected. A potential BATNA for CCC would be to look into other refuse collection companies opening up the possibility of privatisation. The privatisation of refuse collection is a serious consideration in many areas of the UK and a â€Å"major debating point for the city council† (Birmingham Mail 2013) in Birmingham. Waste Concern, a private refuse collection company, claims that 17% of council tax goes towards refuse collection and that privatisation would lead to a cheaper, more frequent collection service, and a more efficient recycling system (edieWaste 2010). If CCC values the current refuse collectors, despite the current dispute, and they are reluctant to consider such an ultimatum, they could consider a more strategic change by introducing the proposed changes incrementally, or by altering the amount of changes being made. It is crucial for negotiators to understand each party’s key interests and how they align (Reardon 2005 : 28). Fisher and Ury (1981) emphasize the importance of the distinction between a parties’ position, and their interests, with a position being the stated requirement that a party demands from the other side, whist an interest is the underlying desire of the negotiator and the motives for their position. It can however be difficult to understand ones interests and those of the other party. CCC’s primary interests are increasing productivity and decreasing costs, whilst the refuse collectors’ interests are concerned with their financial rewards. It is however important to try and understand all of the parties’ interests. The Personnel Director may be under pressure to cut costs in order to stick to a budget so her personal interests may have more focus on performing her job in order to maintain it. The interests of the refuse collectors also concern HR aspects such as, work life balance and training and development. These interests are motives behind the position of their threat of strike, and further scrutiny may offer CCC potential areas to focus on during negotiation. Focussing on deeper interests can provide a more reasonable bargaining platform and a creative and practical solution to a negotiation. Once the interests of each party have been established, it is important for negotiators to try and value the relative importance of each party’s interests. This then allows the parties to effectively trade-off less important issues to gain more important issues. If CCC can establish that, for example, the refuse collectors desire a better work life balance as well as sufficient financial benefits, there may be potential for a medium ground to be reached offering a certain amount of each. The importance of interests often comes down to economic factors, thus job security is frequent consideration. In this instance the job security of the refuse collectors is at risk as there is a chance of redundancies if they do not cooperate. This information provides â€Å"the building blocks for thinking analytically about a negotiation† (Bazerman and Moore 2009:154) and prepares the parties for the two primary tasks of negotiation: creating and claiming value (Lax and Sebenius 1986). It is crucial for negotiators to establish the reservation points of both parties. That is the worst possible outcome they will accept before a negotiation is impasse. With both reservation points established, a positive bargaining zone is created, which allows negotiators to â€Å"aim for a resolution that is barely acceptable to the other party† (Bazerman and Moore 2009: 156) by getting as close to their reservation point as possible. It is however, also vital for both parties to try and cooperate in creating value in the negotiation, as there is often â€Å"opportunity to considerably enlarge the pie before cutting it into shares for each side to enjoy† (Raiffa 2002: 91). Lax and Sebenius (1986) stress that differences must be seen as opportunities, as opposed to barriers, that can be explored to find the most efficient solution rather than just ‘satisficing’ (Simon 1956). According to Schmidt and Tannenbaum (1960) â€Å"differences can help to increase the range and variety of alternatives suggested† and even potentially â€Å"enrich ones own goals, ideas, and methods. † So CCC must capitalise on the differences in the party preferences (Pruitt 1983) by evaluating the  position of the refuse collectors, and looking into finer detail at the interests behind these positions, before attempting to develop â€Å"novel alternatives† through â€Å"creative problem solving† (Neale and Bazerman 1991: 24). Negotiation then depends fundamentally on parties’ ability to trade issues against each other (Froman & Cohen 1970) and â€Å"place demands and formulate concessions to foster agreements that meet their own goals, while avoiding that the counterpart leaves the situation† (De Dreu et al 2000). CCC could for example offer certain alternative benefits to the refuse collectors if the changes are implemented. Perhaps an investment in more efficient equipment and machinery would be appealing. There are certain tools that negotiators can use in order to aid their efforts in collecting information and subsequently increase the probability of creating value. It is certainly the case that deception is often used in negotiation (Schweitzer 1997) and can be an effective strategy for increasing one’s own outcomes (O’Connor and Carnevale 1997). However in this instance, both parties must also note that building trust and initiating a â€Å"free flow of information is critical to finding and integrative agreement† (Johns and Saks 2011)). In heated negotiations this is far easier said than done, as neither side wants to give away too much information on their stance on particular issues. However, CCC is in the position to try and create a trustworthy relationship in order to improve their informational position. The director could inform the refuse collectors of the councils’ pressures and financial limitations that are the driving factor behind the need to change the working practices and make cuts. If no suitable solution is agreed upon, then there may have to be redundancies, as the council cannot overspend. Another tactic could be to strategically disclose some information. As behaviours in negotiation are often reciprocated (Lewicki and Litterer 1985), this may prompt the refuse collectors to open up and start revealing information which may facilitate the negotiation process. CCC must also ask a lot of questions to increase the chances of ascertaining critical information. According to Bazerman and Moore (2009: 162) â€Å"asking questions and listening actively are the keys to collecting important new information from the other side† but it also important for negotiators to remember that information can be gained from what is not said, as well as  what is said. An alternative to trading issues would be for CCC to arrange some kind of contingency contract to verify weather their plans to change working practices is fair or weather it is being rightly disputed by the refuse collectors. CCC could assess a weeks worth of collection rounds and together with the refuse collectors, formulate weekly targets in terms of time and productivity. A weeks trial on this type of contingency contract could easily establish weather CCC’s planned changes are justifiable or not. There are a number of ways in which contingent contracts can benefit the outcomes to negotiations as outlined by Bazerman and Gillespie (1999). Firstly organising the implementation of a contingency contract can identify bluffs by insincere parties. This will aid CCC initially with regard to their uncertainties over issues such as the number of staff needed on each collection round, shift patterns and pay. Contingency contracts are also a useful tool in incentivising performance. It may provide more motivation for the refuse collectors to start working at or above the levels specified in the contract.

Transportations Effect on Social and Economic Change in America Between 1820 and 1860

In what ways did developments in transportation bring about economic and social change in the United States in the period 1820 to 1860?Between the 1820s and the 1860s, advances were being made in leaps and bounds, especially in transportation. From the invention of the cotton gin to interchangeable parts, mechanical advancements began to take effect. However, Americans were still walking on unprepared ground and taking longer to reach from point A to point B. Because of this boom in technology, in order to get material from one place to another, transportation innovations needed to take place. Thus sprang canals and steamboats to navigate these canals in a timely manner.Roads were created to make travel on horseback or horse-drawn chariots much faster and smoother. Railroads and the train were used to make interstate travel fast and efficient. However, these innovations in transportation did not just affect how fast an American got from point A to point B. Transportation developments also affected our country in other ways, such as economically and socially.Innovations in transportation such as canals, railroads and roads, had a major effect on United States. The Philadelphia Lancaster Turnpike was the first important road in America. It connected Philadelphia with rich farm lands in Lancaster. Because of the success of the turnpike, other states were more inclined to do the same. Cumberland Road was built which connected Maryland to Illinois. Canals impacted the US as well. In 1825 the Eerie Canal was opened starting in Albany by the Hudson River to Buffalo (Great Lakes). This enthused economic growth.Tolls were placed along the length of these turnpikes and canals in order to repay construction costs. Railroads changed small rural towns to commercial metropolises. Railroads began developing in the 1830s and it connected water routes when it was first created. By the 1860s there was approximately 30,000 miles of track. Capital to finance railroads came from pr ivate investors, abroad, and local governments. Fed government gave public land grants to railroads. These transportation developments have great economic and social change in the United States.When it comes to the economic aspect of the country due to the innovations in transportation, we really see a tremendous amount of growth in the North.  Due to many Englishmen who brought their blueprints and ideas along with themselves and who settled mostly in the North, manufacturing and industry began to spread throughout the Union. North and South began to cooperate more in industry, the South providing â€Å"King Cotton† and the North turning that cotton into textiles, the first industry in America.Because westward expansion was now beginning, the problem on conveyance of goods from East to West and vice versa was presented. Therefore, canals, railroads and roads were necessary, the most effective of the three being canals; railroads were used carriage of large amounts of goods , which is still the case today. The ability to get goods from one location to another in a matter of days rather than weeks increased supply and capital.There were also social changes that took place due to transportation. Exploration was easier and the grip of the government was more extensive. Also, because of the economic changes, changes in the social ladder also took place. In the North, the wealthy upper class owned the factories while the lower class worked â€Å"on the floor†. Because of this, the middle class began to shrink until there was a very few amount of Americans that could claim to be middle class. In the South, the same could be true, in a different sense though. Rather than the wealthy owning factories, they owned land, where they grew their precious cotton. The lower class either worked as servants or in the fields, however, the latter was uncommon due to slavery.Due to the advances in transportation, these changes took place. Whether they were for good or bad is up to us to decide. In my opinion, the economic changes were beneficial to America as a whole. Goods were transported quickly and effectively which increased the total revenue for the nation as a whole and more money means funding for other projects that will eventually benefit the country even more. However, the social changes really affected the country in a negative way. Because of the division of classes, people were treated inferior to others and from there sprang grudges and disputes. Slaves were treated as animals and this lead to the Civil War. Sadly, many of those feelings have continued down to this day. Nevertheless, between 1820 and 1860 transportation shifted the infrastructure and economy of the  USA.

Internet social networking's effects on teenager's social lives Essay

Internet social networking's effects on teenager's social lives - Essay Example Such sites allow the members to socialize with their friends by adding them to their profile, sending them messages and commenting on their statuses displayed on the pages of their profiles. Social networking sites most commonly in use today are Facebook and Twitter. Most teenagers necessarily visit these websites several times in a day all over the world. According to a recent research generated by the Pew Internet Project, as many as 93 per cent of the teenagers in America between the age of 12 years and 17 years are regular users of the internet, and 55 per cent of such teenagers spends most of the time using social networking websites (Hall). Social networking sites cause a lot of troubles in the life of teenagers. As a result of the expanded social circle because of internet social networking, teenagers are prone to fall in the hands of pedophiles and kidnappers. Internet social networking increases the interaction of a teenager with others. In fact, many studies have found the social networks of internet using teenagers to be much larger than others that do not use the internet. Not only their social circle increases, but also the way they communicate changes. Nowadays, many teenagers can be heard speaking to one another in slang. The time that teenagers spend socializing with others in the virtual world is no less effective than the real world for building relationships and socializing with others. ... The predators can easily project themselves as teenagers. This allows them to draw the teenagers into harmful activities in the real world along with the virtual world. They send messages to the teenagers via these websites. Many teenagers respond to them. The predators may use social networking sites to drive the teenagers into the business of drug dealing or child pornography. Drug smuggling, prostitution, and cyber terrorism are the common results of crimes conducted through net. The privacy control is also an important feature of most of the social networking sites, but not many teenagers are prudent enough in their use of the internet to use the privacy control. Besides, not many predators get caught by the monitoring of profiles. Identity theft is one of the biggest risks of social networking through websites, that exposes teenagers to the risk of abduction. Teenagers tend to display their personal pictures on their profiles and display their contact numbers, house numbers, and other necessary information that is required by the kidnappers. There are many causes of such a massive display of personal information on the websites. First, children tend to display their complete and accurate information so that it would be easier for their old and lost friends to access them online. Secondly, many teenagers tend to display information to show off that they are living in a particular city or studying at a popular college or school or have joined some famous club in the town. There are many other causes as well. Social networking sites are an excellent source of information regarding any individual as well as his/her family for the kidnappers. In the recent years, a lot of people have been kidnapped all over the world. Teenager boys may be

Land Securities Property Group Essay Example | Topics and Well Written Essays - 2000 words

Land Securities Property Group - Essay Example Investors often went for choosing commercial properties in place of bonds as investments because it offered very good return. Soon after 2007, this lucrative area of investment really became a nightmare zone for investors. The real estate industry faced setbacks due to globalisation, change in the economic scenario, recession, and sub-prime mortgage crisis. The property prices fell up to 50 percent. The commercial property industry revived by 2009 but the revival was not constant. There no stability in this industry anymore. The profits and losses in the real estate industry have become unpredictable. Moreover, the risk involved in investing in commercial property also pulled back the investors from such investments (Pickup & Derbyshire, 2010, p. 259-263). The economic downturn affected all the countries round the world. The intensity may be different but the dropping sales figures and decreasing revenue has been the scenario for most of the countries. The shops remained empty and th is further affected the property owners dealing in commercial property business. Many banks and companies declared themselves insolvent and filed for bankruptcy. In the backdrop of such economic scenario, we will analyse the position of the Commercial real-estate industry. Land Securities Group is one of the major players in the commercial property Industry in United Kingdom. Though the balance sheet of the company is showing positive results, but the market is not. The company is big and the capital base of the company is strong. The retail industry is facing huge losses And Retail giants such as Game, HMV or other super markets are have empty shops. In the study the analysis of the company Land Securities Group, is done keeping in mind the objectives behind the analysis: To study the competitive advantages and Strategies of Land Securities To analyse the complete external and internal environmental condition of the company. To see the status of its competitors To make projections regarding the future prospects of the commercial property Industry. Company Profile Land Securities Group is one of the largest commercial property companies in United Kingdom. It came into existence in the year 1944. Their main area of business is to develop shopping centres, retail shops and warehouses, offices and other commercial buildings. They are into maintenance, development, repairing of the property in both public and private sectors. Land Securities group is also into development of the urban community. For this purpose it has planned a multi-billion development program. Land Securities has a total of ? 4.9 billion of retail portfolio value. It owns more than 24 shopping centres and 19 retail parks. About ? 20.6 million sq. ft. of retail accommodation is developed by land securities group. The company is listed in London stock exchange. It has an operating income of ? 1244.1 million in 2011. Land Securities group also provides employment to more than 700 people. The compa ny has received several awards. It has received the Landlord of the year award, BCSC Gold Awards for retail Town Scheme and also National Property Company of the year award in 2011 (Landsecurities, 2012). Environmental Analysis PEST ANALYSIS PEST Analysis is mainly done to study the external environment for the company. Land Securities group is a company mainly situated in UK, which is going through its longest

Discuss the nature of slavery Essay Example | Topics and Well Written Essays - 250 words - 1

Discuss the nature of slavery - Essay Example It should be noted that these types of slavery had been transformed and transferred to different generations one after another (Rodriguez). It will not be incorrect to state that slavery was marked less in the societies where capitalism was not practiced as the core governance phenomenon. On the other hand, capitalist societies of the world have changed the shape of slavery into a wage system. They have given the rights of slaves in such a way that they are destined to work for the interest of capitalists (Toledano). The concept of energy in terms of the labor that is provided by the workers in the pre-mechanized societies is one issue of debate. Since these people were forced to work in filthy and critical circumstances, they had a number of health issues. In the wake of energy provision, races that were not dominant in the society were forced to do the hardest work

Caring for chronic illness in the rural setting Essay

Caring for chronic illness in the rural setting - Essay Example They also lack knowledge and training about the caring regimen needed for the family members suffering from chronic disease (Smith-Campbell, 2009, p.562). Hence, it is extremely important for health care professionals to design the services which are not only easily accessible to people living in rural areas but also help them in being capable of providing proper care to their family members suffering from chronic conditions. The Obstacles A study by ‘The Dartmouth Atlas Project’ (2006) has found that the chronic diseases like diabetes, heart disease and cancer have affected the health of more than 90 million people in the US (Pierce& Lutz, 2009, p.191). Shapiro (2002) has found that the chronic condition is prevalent in more than one third of young adults aged between 18 to 44 years (Pierce& Lutz, 2009, p.191). A study by AHRQ (2002) has revealed that more than 75% of elder population is suffering from either one or more chronic conditions (Pierce& Lutz, 2009, p.192). T hese studies show how serious is the issue of prevalence of chronic conditions in the US population. It is evident that chronic condition is not limited to a particular age group but is affecting people from every age group. Hence, health care by family members is going to play a vital role in controlling the increase of the chronic diseases in people. However, families from rural setting are facing many obstacles in getting the access to health care services. Inadequate Health insurance Inadequate health insurance has proved to be one of the major problems in accessing proper health care services. A study by Lottero et al. (2007) found that even after having a long term relationship with the health care providers, people from farming profession were denied health care as they were not financially capable of paying the bills for their treatment (Smith-Campbell, 2009, p.562). The major problem with the families seeking health care services for chronic conditions in rural areas is tha t they are either uninsured or underinsured (Smith-Campbell, 2009, p.562). Hence, they avoid the treatment for chronic conditions unless it is an emergency (Smith-Campbell, 2009, p.562). The lack of financial resources and sufficient insurance also make them to avoid getting health screening and preventive measures for chronic conditions (Smith-Campbell, 2009, p.562). Hence, instead of getting under control, the lack of proper resources is leading to growth in the prevalence of chronic conditions. Lack Of Facilities There are many obstacles that people living in rural area face in taking advantage of the medical facilities. They cannot utilize the medical facilities due to lack of follow up facilities required for different kind of chronic condition treatments. A qualitative research, conducted to study the obstacles in implementation of lifestyle and pharmacological changes to improve the chronic condition of ischemic heart disease, found that the use of ACE inhibitors was not poss ible in case of rural patients as it required follow-up blood tests (Putnam, Twohig, Burge, Jackson, & Cox, 2004, p. 401) Unfortunately, people living in the rural area, who suffer from hypertension and congestive heart diseases, cannot use ACE inhibitors as they cannot get an easy access to the blood test facility. Similarly, the facilities for physical exercise are also not accessible to the

Eng project 2 Essay Example | Topics and Well Written Essays - 1000 words

Eng project 2 - Essay Example In addition, this can illuminate the many ways in which writers can come to vastly different conclusions regarding the relevance of a single particular story, even when confronted with exactly the same words on paper. An examination into how two different students interpreted the symbolism of â€Å"The Yellow Wallpaper† will demonstrate how even very similar ideas and viewpoints can lead to greatly different applications and conclusions. The two sample essays have many similarities in the way in which they interpreted some of the key symbols of the story, primarily the meanings of the wallpaper pattern, the creeping of the woman and the peeling of the paper, but the second essay takes these themes one step further, expanding the understanding of the story into a deeper context. In the first essay, the student interprets the yellow wallpaper as a thin veil meant to trap and hide the narrator’s true personality. This is extended to the polite society in which she lives, where her husband attempts to hide her encroaching madness in a quiet country house that is â€Å"quite alone, standing well back from the road, quite three miles from the village.† The pattern in the wallpaper becomes the confining pattern of the narrator’s life as she maintains the schedule her husband has set for her despite her own objections and thoughts concerning her welfare. The pattern itself serves as the bars to the pris on she finds herself in, with a foreign pattern to them because they are not of her making. This writer sees the creeping of the woman behind the wallpaper to be the creeping of the narrator as she sneaks around the room, hiding her real thoughts and ambitions from the jailors that set this unnatural rhythm. Yet, the woman behind the wallpaper is seen also as becoming a different persona altogether, the persona of the woman’s sanity. The peeling of the wallpaper, then, becomes not only a freeing of the woman

Mind the Gap Assignment Example | Topics and Well Written Essays - 1250 words

Mind the Gap - Assignment Example By being able to see yourself while you discuss a topic, one becomes clear about how people will perceive him or her. This helps in improving one’s presentation and thus confidence level also improves (Maxwell, 2009). -When a person develops the habit of discussing ideas with his or her team in informal setting, the same ideas can be presented in much more comfortable way in formal settings as well. This personal aspect usually helps in getting rid of this problem (Throop and Castellucci, 2009). I have chosen this goal considering the point that presentations and public speaking is an important aspect in work environment. Those who lack in this aspect usually find it tougher to climb the ladder of management. As my career goals include becoming a manager in some reputed global chain of business, it is an important quality I need to acquire. -I find my communication skills not very good in comparison to many others who can discuss their ideas with much more confidence. To avoid this problem, it is better to have a set of ideas written in form of points for reassurance (Burn, 2012). -When a business executive is aware of his or her weakness, he or she should work on getting rid of the same. I know that I lack in communication skills. Practice can help me improve a lot (Pavlina, 2009). -While presenting my ideas to a group of business associates or colleagues, visual aids can help me explain my ideas in a much better way. Visual aids can reduce my work to half (Masters and Wallace, 2010). This goal is important to me as my communication skills are weak and I need to improve on them. Weak communication skills can be hindrance in career growth. To overcome this shortcoming, I need to use technological aids to my advantage. -Multinational companies usually have people coming from various cultural backgrounds. It is important that one understands and respects

Information Systems Auditing Assignment Example | Topics and Well Written Essays - 1500 words

Information Systems Auditing - Assignment Example ing management controls in computer systems within an IT infrastructure to determine the adequacy of the system controls and ensure compliance (Puja, 2004, p. 5). It is done through collecting and evaluating evidence to determine whether data integrity is maintained and assets are safeguarded. The use computer based information systems has been incorporated into many companies and the ability of these companies to survive entirely depends on well-structured information system audit process that points out shortcomings in the information systems usage. The human resource department of any organization or company contains more sensitive data. Human resource workers specifically the payroll employees should be able to establish the employment status of an active employee, without altering the status, while the personnel employees have the clearance from human resource administration or higher authority to activate new employees and alter their status from active to terminated service. The personnel employees have no permission in handling of timecards for employees. This clearly defined separation of tasks prevents any occurrence of fraudulent incident. In most common cases it has been reported that the payroll employees or the personnel employees process illegal paychecks to terminated employees or ghost workers either as a result of ignorance or fraud motives. Human resource management systems house databases that contain other linked company information that the payroll employees have no reason of seeing. Such information may include; data from performance evaluation, health records, and retirement benefit plan balances, and insurance cover. The central location of human resource data is subject to access monitoring enabling the capture of identity of the person logging or exiting as well as the timestamp. This ensures that company data is accessed by authorized personnel and that entry codes are changed periodically where locking mechanisms with keypads are