Cost-Benefit Analysis matrix. The paper also highlights the advantages and disadvantages of other tools such as PERT and Gant

Project Management




Adopting to change is one of the hardest processes that organization or companies face. The paper shows how changing from an old system to a new system entails. Despite the fact that employee accept change to take place in their organizations, most of them are against change. This is because they fear that they might lose their jobs. The paper also highlights the advantages and disadvantages of other tools such as PERT and Gantt charts.

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.

One of the biggest challenges facing human resource managers and executives today is the justification of costs related with the implementation and purchase of human resource information system (HRIS). For institutions or organizations, considering changing it internal payroll systems to a payroll outsourcing service is it vital to understand the benefits that come with the new system. Will the service lower cost? Will it increase revenue of income? What is the future benefit for the system to the company? The probable returns at the end of a given duration and the investment choice have to be evaluated in order to make a decision. For this to be possible, a cost-benefit analysis is developed to answer the above questions (Kavanagh, 2012).

Direct Indirect

Benefits Reductions The venders are going to be canceled Free time for staff to handle issues

Revenue Improve employee job performance Better reporting of information and faster system

Cost New implementation There will be out of pocket cost Technical issue will be present

The above chart shows the display in general the benefit and the cost of implementing a new HRIS system. The justification of the new HRIS system has various challenges since some of the items cannot be quantified while others can. By defining both sides of cost-analysis, a company has to consider the indirect and direct costs and benefits that come with the new payroll system. Most organizations or companies are always concerned if the new system will increase revenue (Kerzner, 2010). Employees’ job performance will progress because there are exposed to more efficient system. On the other hand, the company will save money save money on paying other outside vendors to handle the work. The more efficient the system is will permit staff to have more time to manage demanding issue. The company should research and establish the systems that best fit financially for them.

Assess the risks associated with integrating a new payroll system and suggest what the project management team can do to minimize those risks

Any implementation of a new system comes with itself various risks. In most cases, integration includes replacing various related systems, such as payroll system, personnel databases, and benefit system, which one HRIS covers all. Anytime that a new system is changed or implemented there are bound to some accidents, some can be user errors and others system errors. Any change to the payroll system also develops a learning curve as human resource personnel and manager adapt to the new payroll system (Kumar, 2005). With the implementation of a system that is faster than human beings are, the question arises for employees are their position in the organization since the system has replaced them. Some of the employees are not always willing to accept change especially if they consider the change as a negative issue. It is vital for the project manager to be ready to provide a strategy and answer for changes that are in progress. This explains why communication is a very significant tool. The PM should be to answer staff questions as they come in a more efficient and elaborate way. They should advise them of the changes, the benefits that come with it, and the reasons why the change took place. If the change will prompt loss of job, then the PM should offer options.

Compose the tasks that would be needed to complete a Gantt chart (project schedule) for outsourcing the company’s payroll system. Compare the advantages and disadvantages of using a Gantt chart versus using the Performance evaluation and review technique (PERT) and critical path method (CPM) when managing projects.

Gantt charts are easy to construct and to understand, and they offer a powerful visual tool for managing projects. Gantt charts show tasks, activities or events displayed against a certain timeframe. The chart aids in scheduling the work within a project from the start of the project to the end. A proper work breakdown structure is developed in a chart to indicate the level of time as well as the resources needed at each stage of project execution. The tasks needed to complete a Gantt chart for outsourcing payroll system would be:

Select the vender

Carryout a cost benefit analysis

Evaluate the workability of the new system

Close the current system

Conduct a research on the vendor systems for outsourcing payroll system

There are various merits of using a Gantt chart. It is very simple to create and to develop. It can help in putting the tasks into a realistic timeline. The demerits of the Gantt chart also exist. It cannot display the cost attached and you would have to complete more than one chart if alternative outcome is expected. Performance evaluation and Review technique (PERT) also offers a visual representation of the tasks at assigned to the project (Doody & Noonan, 2013). This project management tool addresses events, time, manpower and costs needed to complete the project. PERT can predict the timeframe of task completion as well as the completion of the entire project. The merit of using PERT is that it improves decision-making and planning by presenting and integrating data from various departments. However, PERT only works with larger projects hence a small business will not able to benefit from this method. The lack of proper timeframe on most CPM/PERT charts makes it difficult to indicate the status of a project.

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

Feedback is always essential. It permits you to gain information on how projects are running and how others think about the changes. It is not always easy to have feedback because of lack of communication, fear of retaliation, and low employee morale. Ways to curb these concerns are to provide feedback loops. This offers the users of the new system a safe arena to address their opinions. First, I would recommend that the users of the system to be an ambassador. The ambassador acts as a spokesman of the organization and stakeholders. They attend meeting to voice the concerns of the employees and others, offer suggestions and offer advice for a new system (Doody & Noonan, 2013). The help desk should be implanting to help workers that come across any issues while working with the new payroll system. Help desk operations are also able to provide systematic experts and guidance with the system. The use of focus groups is also pronounced ways of for employees to gather and offer suggestions or raise concerns on how companies can help them with their work or job. The best way to sieve the information is to ensure that accurate and reliable information is offered and that when questions arise the project manager adheres to the facts offered or presented.

Suggest three (3) types of behavioral problems that employees can manifest as a result of replacing the organization’s legacy payroll system with an outsourced solution. Compose three (3) guidelines that a project manager can use to mitigate employee resistance to change

With the existing change of technology and that of business change, practices and systems must also change. Change helps Company and organizations stay competitive in their market. Despite the fact that change is good it not easy for employees to accept change. In order for change to be efficient and effective, management and communication are important. Employee always shows their discontent for change by showing lack of motivation, low morale and decreasing productivity. It is the obligations of the HR department and the project manager to assist resolve the problems that come with change amid the employees (Kavanagh, 2012). There are several processes that that are used to mitigate employee’s resistance to change. First, the company should consider the process of unfreezing. This is the process of getting people to believe and see the purpose in it offering recognition and rewards. Psychological safety is one of the processes of assisting employees overcome their nature of anxiety for change by addressing and understanding their needs. Transition/change is the process of assisting the employee accepts change by highlighting the merits of the new process versus the old.


Many company or organizations will come to a situation where they will need to update their HRIS system. It is vital that they do their research. Noting all the options is vital, but even more is weighing the costs of projects versus the benefit. A cost analysis is a good way to determine if the system is right for an organization or company. Effective project management is essential to the implementation of the project. There will always be a resistance and risk with any form of change. However, it is up to the project manager to be ready to handle the issues as they come. One of the most important tools of handling resistance is addressing the loopholes of communication because workers need answers hence it is up to the project manager to offer alternatives and benefits that come with change.References

Doody, O., & Noonan, M. (2013). Preparing and Conducting Interviews to collect data Nurse Researcher, 20(5), 28-32.

Kavanagh, M. (2012). Human Resource Information Systems. Determining HRIS Needs

Kerzner, H. (2010). Project management: A systems approach to planning, scheduling, and controlling (6th ed.). New York: John Wiley & Sons.

Kumar, P. (2005). Effective Use of Gantt Chart for Managing Large Scale Projects. Cost Engineering, 47(7), 14-21.