Cost-Benefit Analysis matrix (Essay Sample)

Project Management
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Cost-Benefit Analysis matrix
Cost-benefit analysis (CBA) is considered before adopting a new human resource information system (HRIS), and this takes into account the cost implication related to acquisition of service and the benefits (Director, Cascio & Boudreau, 2013). Organizations that choose outsourcing the payroll system instead of the existing internal payroll system are more likely to have cost reductions and better revenue enhancements, if the process of sourcing is aligned with the organization’s needs. Since the employees are focused on other equally important aspects of the business, they are able to be more productive by engaging in other activities outsourced the payroll system. Another direct cost reduction is that there are fewer penalties associated with later filing of taxes, this is especially in cases where there are either incorrect or late filings. In any case, outsourcing involves competent staff who specialize indifferent areas and they are better placed avoid penalty notices.
The outsourcing company facilitates online filing system as well as reimbursement, potentially saving the company time and costs to follow-up on reimbursements. At the same time, the outsourced company can act as an agent of the organization and improve branding while also displaying the logo of the organization on access pages. Through integrating the organization’s human resource information system, the outsourced company relies on technology to improve productivity and improving the Return on Investment (ROI) (HR Focus, 2005). This is especially important for companies with limited technology, where it is easier to outsource to a company that has better suited payroll software and updated tax filing systems.Risks in integrating new payroll system and risks mitigation
One of the risks associated with integrating the new payroll system is that there is difficulty in data integration (Jennifer, 2007). This challenge may affect the organization especially when the employees are not well conversant with the new payroll system. At the same time, the systems may be incompatible in some areas, while the older version of the payroll system may still not be well suited to capture new changes in the payroll system. The users of the payroll system should ideally be able to use and generate relevant information using the integrated payroll system. At the same time, when there is resistance to change, implementing and integrating the new system may be harder to achieve, making it unlikely that there will be effective data integration.
Even though integrating the new payroll system seeks to improve the effectiveness and efficiency, there is an element of implementation task. The implementation risk affects the way the employees are able to integrate the new features without facing major difficulties in using the payroll system (Jennifer, 2007). There is a need to understand the duration, components as well as the complexity of the new system before there is improved implementation. Both change and tradition management are essential to the success of the integrated system. Managing the implementation risk also seeks to improve the running of the system to avoid delays at work.
Another risk that may occur over time is the ongoing risks related to the system maintenance over the time when the system will be in place. In order to further improve the payroll system effectiveness, there is a need for further upgrades, patching as well as ongoing maintenance. Essentially, the ongoing risk results from uncertainties about the future and likely changes that should be taken into account when improving performance in a work environment with uncertainties. In any case, additional functionality requirements cannot be reliably predicted as technology changes over time, while it is also important to monitor changes related to the service levels.
In order to reduce the impact of implementation risk, then there is a need to focus on training as well as planning to facilitate proper integration with the existing system. At the same time, open communication should be encouraged to improve the working environment and collaboration with employees and suppliers. Conducting an HR audit also aligns employment practices with goals (Anonymous, 2007). To ensure that there is a better data integration, the project team needs to ensure that there is proper transition management allowing the staff to transition smoothly from one system to the other. To mitigate the ongoing risks, the management needs to improve monitoring of ongoing costs, staffing levels and functionality requirements in line with the changing human resource management system needs.
Gantt chart (project schedule) for outsourcing the company’s payroll system
The Gantt chart will give an overview of the work flow in the payroll system, while also itemizing steps to be undertaken in creating the payroll system. The Gantt chart facilitates tracking of tasks as well as identification of missing steps or bottleneck activities.
Study process
This involves understanding the payroll policies to facilitate successful implementation of a project.
Documentation
This takes into account documentation of payroll process procedures on a monthly basis as well as using past reports and pay slips to design the payroll system.
Giving recommendation
The outsourced company then gives recommendation best practice to in order to improve efficiency, while also customizing the systems.
Designing input forms
This involves collaboration with the client with the client using the forms to facilitate payroll processing depending on the client needs.
Schedule preparation
This takes into account the client’s payroll transactions to facilitate better integration,
Requirement findings
This task involves gathering functional information on past reports as well as statutory requirements and documenting requirements.
Data conversion
This focuses on defining the tasks and deliverables necessary for converting employee database, while also defining the requirements needed for the conversion.
Test running
This task assesses whether the payroll captures the relevant information and is accurate, and this is possible by comparing results with that of the client’s past payroll application.
Training
The outsourced company provides training to potential client users.
Implementing
Implementation occurs upon running the system and ensuring that the payroll system is suitable for the company.
Advantages of using a Gantt chart versus PERT) and critical path method (CPM)
The Gantt chart helps in scheduling activities allowing one to understand dependent activities as well as schedule parallel tasks (Johnson et al., 2006). Even though, PERT and CPM cal also show the time taken in different tasks, the Gantt chart allows one to assess the progress of a project better than the other two techniques. Additionally, this facilitates the setting of realistic time frames as activities that do not benefit the project are excluded as they consume unnecessary resources and time. Another benefit of the Gantt chart over CPM and PERT is that it is highly visible making it easier to understand and identify the objectives of the project through visual representations (Milošević, 2003).
Disadvantages of using a Gantt chart versus PERT) and critical path method (CPM)
While using the Gantt chart it is harder to assess the resources and tasks required, and hence the approach does not capture all the relevant information to improving project management. On the other hand, the critical path analysis does focus on time in individual tasks. Since projects do change there is a need to update the Gantt chart, but it is more involving to update the Gantt chart when taking into account the changes in the dependent tasks (Milošević, 2003). The Gantt charts are suitable for small projects, unlike PERT they do not show uncertainty during activities, and hence are not applicable for larger projects. At the same time, the approach does not show activity dependency unlike the network analysis techniques, since Gantt shows merely depict the scheduled activities.
Feedback loops and the new payroll system
Feedback relates to information in a system that helps in making changes to the in...