Lastly, receiving feedback from potential users of the new system and how to deal with those who may be against the change will be discussed.
Construct a Cost-Benefit Analysis matrix for an organization that is considering replacing its internal payroll system with a payroll outsourcing service. Include direct and indirect revenue enhancements and direct and indirect cost reductions. When an organization is considering to make changes, such as replacing its internal payroll system with a payroll outsourcing service, there are a lot of decisions that need to be made.
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Often during business planning and decision support, businesses utilize a cost benefit analysis. This is a process that is used to analyze business decisions that need to be made. The cost benefit analysis approach estimates and totals up the equivalent money value of the benefits and costs of different projects or opportunities as a way to establish whether they are worth completing. When trying to replace internal payroll systems with an outsourcing service, the company needs to see if it is inefficient to do so by comparing costs to benefits.Larger companies can more than likely afford to maintain internal payroll systems, but utilizing payroll outsourcing services is ideal for small to medium sized organizations (Hiroshima, 2015). Revenue enhancements for outsourcing payroll include having a higher level of expertise and skill in payroll, human resource departments can save time and focus on other important tasks, minimizing mistakes in payroll, increasing employee satisfaction levels, and supporting other firms while they support you.
Some cost reductions may be that organizations can cut down on having extra people working in human resource departments who only focus on payroll, reduce the chances of receiving IRS penalties, not having to purchase or maintain software, and not having to waste time training human resources on new programs, especially when software updates or add features. Assess the risks associated with integrating a new payroll system and suggest what the project management team can do to minimize those risks.There may be some risks associated with integrating a new payroll system. Having the proper technology is important and making sure that they are all up to date so that the software and programs can work as they are intended to. Another risk can be that all data may not transfer over correctly. Employee’s personal information, job salary, vacation and sick time needs to be accurate in the new system and could cause several problems if the information is not correct.Often, employers have several different databases that serve different purposes and end up using an outsourcing company that combines all of them into one system. In this case, it is imperative for the many to make sure all of those databases are accurate to ensure that the outsourcing company has correct data.
There are also security and government compliance risks. Managers should select a firm that best meets the needs of their organizations. Employees may also be reluctant to the new changes as a lot of people do not like change once they get accustomed to the ways the old things were.Project management teams should make sure that they have properly working equipment and the latest versions of all software to reduce technical issues.
They should also ensure that all information in databases are accurate and up to date so that the payroll firm will have the proper information needed to do their jobs. Management should research the payroll firm it will be using and ask for supporting documents that prove that they are compliant with government regulations and that they have high levels of security when it comes to protecting the company and employees’ information.Things to look over are EBB ratings, company guarantee, customer reviews, and of course the contract prior to signing it and agreeing to use this company (Steps, 2015). Lastly, the company would let employees know ahead of time of the changes that are coming, along with background information on the payroll company and information on the system they will be using. Compose the tasks that would be needed to complete a Giant chart (project schedule) for outsourcing the company’s payroll system.Compare the advantages and disadvantages of using a Giant chart versus using the Performance evaluation and review technique (PERT) and critical path method (CPM) when managing projects. A Giant chart is a very well-known tool in project management and is usually seed for planning and scheduling projects. It is a bar cart that demonstrates “the Start and finish dates Of the different required elements Of a project” (Giant Chart, 2015).
Tasks that would be needed in order to outsource the company’s payroll system include completing a cost benefit analysis, researching top payroll firms and selecting a trusted service provider that best fits within the needs of the employees and the organization, deciding on the standard operating procedures, ensuring that every employees information is accurate, formally make employees aware of this change, information on the company, and basic procedures for how they will go about tracking their hours worked and other things they will use the new system for, get rid of the old method used completely, and lastly monitor how the new service is going and ask for feedback from employees that can maybe be taken back to the service provider for improvements.According to Michael Operator, some advantages of a Giant chart are that it creates a picture of complexity, organizes thoughts and demonstrates that one is aware of what he or she is doing, helps to set realistic time frames, and can be highly visible. The disadvantages of using a Giant chart are that it can become too complex, the length of the bar does not indicate the amount of work only the time it will take to complete the task, it doesn’t remain the same and needs to be update frequently, and it can be difficult to view all of the project on one sheet of paper depending On how long certain tasks take (Operator, 2015). Other project management tools that are used are Performance/Program evaluation and review technique (PERT) and critical path method (CPM).The PERT shows the time taken by each component of a project, and the total mime required for its completion, as well as the critical path, which is the longest line or path that connects all activities and usually tells the duration of the project. This helps to improve planning of projects. However, this method is only good for larger projects where as the Giant chart can be used for both.
Propose three (3) types of feedback loops the project management team can implement so that potential users of the new payroll system can provide advice, suggestions, and guidance to the team during project development and implementation. Suggest how the project management team can filter out irrelevant information and target critical information provided by potential users of the new system.When making major changes in an organization, especially when changing something that has been done a certain way for a long period of time, it is important to reach out to employees and to try to gain insight and feedback on how things are going for them after these changes. Feedback from employees helps increase job satisfaction, more so when employers actually take into consideration what the employees are saying and suggesting. Receiving feedback can also help management understand company dynamics, reduce compliance issues, and stimulate performance and productivity.
Management can set up feedback loops to see how their workers are feeling about changing the payroll method. Project management teams can offer anonymous surveys and questionnaires, have designated people, team leads, or supervisors to randomly select workers to interview, and provide everyone with an evaluation of the new service provider.