Cost-Benefits Analysis Matrix

Project Management



Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc387902625” Cost-Benefits Analysis Matrix PAGEREF _Toc387902625 h 3

HYPERLINK l “_Toc387902626” Risks of Integrating a New Payroll System PAGEREF _Toc387902626 h 4

HYPERLINK l “_Toc387902627” Gantt Charts PAGEREF _Toc387902627 h 5

HYPERLINK l “_Toc387902628” Performance Evaluation and Reviewing Technique (PERT) PAGEREF _Toc387902628 h 6

HYPERLINK l “_Toc387902629” Critical Path Method (CPM) PAGEREF _Toc387902629 h 6

HYPERLINK l “_Toc387902630” Feedback PAGEREF _Toc387902630 h 7

HYPERLINK l “_Toc387902631” Types of Behavioral Problems PAGEREF _Toc387902631 h 8

HYPERLINK l “_Toc387902632” References PAGEREF _Toc387902632 h 9

Project Management

Cost-Benefits Analysis MatrixAn organization that is planning to replace its internal payroll system with an outsourcing service has to consider the costs and benefits of outsourcing. Outsourcing is an effective way of dealing with internal problems and making the processes of organizations simple and efficient. While planning to implement a new system requires the managers to identify the costs involved. Replacing the old internal payroll system with a new outsourced payroll system will help in enhancing the productivity and performance of employees. It will help in analyzing the performance of employees continuously so that they are praised according to their performance. The employees will be able to focus on productive tasks so that they can accomplish their goals and targets (Santos, 1999).

Implementing a new system will have an impact on the costs and performance of the organization. The cost benefit analysis helps in determining that whether the costs are being used efficiently to gain advantage through it or not. A new payroll system will help organizations in achieving competitive advantage over its competitors. It will reduce the cost of using internal systems, which require both time and efforts. Outsourcing is often considered as a way of saving costs by hiring professionals. The companies can avoid penalties and legal complaints if they are using an efficient payroll system, which will protect the reputation and image of the business. Technology advancements help organizations in enhancing their processes and reducing their costs up to a significant extent.

Cost analysis matrix

Goals and objectives of the organization

Alternative plans of achieving the goals. There is need for data gathering.

Calculating benefits of each alternatives and choosing the best alternative

Making the diagram representing the matrix through an x and y axis.

Risks of Integrating a New Payroll SystemEvery business requires an effective and efficient payroll system, which can help in easily processing employee compensation. The payroll systems continuously evolve with the advancement of technology. These days, technology is updating technology tools and systems, which are helping organizations in performing various tasks. The systems help in the process of recording, reporting, and processing the working hours of employees, which helps in making the payroll process efficient. Businesses keep on integrating new and advanced payroll systems, which can help in making their compensation process easier and efficient (Santos, 1999).

There are certain risks involved in integrating a new payroll system, and it is necessary that the management analyze and evaluate these risks. The risks involve the lack of knowledge and awareness of the new system, which exerts pressure on the human resource management.. Implementing advanced technology requires the company to bear higher costs, which affects their budgets. Integrating new payroll systems requires proper training, which can help in effectively handling the payroll process and issues. If the training is not provided to employees and HR managers, they will not be able to manage the system efficiently (Anand, Gardner & Morris, 2007).

The risks in the payroll will be minimised through data integrity. Having data concerning the employees that is not compromised to reduce the possibility of having ghost workers in the the payroll. Data integrity also enables a manager to know the specific work which an employee is performing in the organization.

Outsourcing to payroll service bureaus is another method that ensures that the new payroll has the required dat. Through outsourcing there is need for a proper in-house preparation to ensure that all the required activities are put into consideration. The in-house preparation must be conducted in time to avoid messing with the payroll through rushing over issues. Proper outsourcing will reduce the problem of accountability of the payroll system. It will enable the payroll to be able to beat the strict deadlines that may result to improper payments.

Gantt ChartsGantt Charts are widely being used by organizations all over the world to manage their projects efficiently and effectively (Raz & Barnes, 2003). There are various advantages and disadvantages of Gantt Charts that help in understanding its use and implications.

The advantages of Gantt Charts are listed below in this paper:

It helps in making a clear picture of the plan of a project, which helps in understanding its complexity. The diagrams and charts help in understanding the process in a better way.

Gantt Charts help in planning the process in a timely manner by organizing the thoughts in the best possible manner.

It helps in demonstrating the tasks of the project and the required resources for each task. It helps in evaluating that whether the organization has all the required resources for accomplishing the goal of any project or not.

The Gantt Charts can easily be shared among the project management team and employees of the organization. It helps the employees in continuously keeping track of all the tasks involved in the project and how much time is required by each of the tasks.

There are some disadvantages of Gantt Charts, which should be known by the management of organizations. Some of these disadvantages are discussed below:

For larger projects, Gantt Charts can often become complex. There would be a large number of tasks involved and each task will require time and other resources. The project manager will be required to make employees understand the Gantt Charts so that they can understand their work.

Gantt Charts requires constant updates, and continuously updating the charts require both time and efforts. While working on a project, many things change continuously and making everything available on the Gantt Charts require continuous updates.

Example of a Gantt chart


1. Week 1 2. Week 2 3. Week 3 4. Week 4 5. Week 5 6. Week 6 Performance Evaluation and Reviewing Technique (PERT)PERT is a statistical tool, which helps in evaluating and reviewing all the tasks involved in completing a project. It is an effective project management tool, which helps the management in tracking each activity involved in the project. By comparing the PERT charts and Gantt Charts, it can be said that Gantt Charts are more useful for smaller projects as compared to the larger ones. Gantt Charts provide optimum opportunity to highlight each task of the project specifically. Gantt Charts also present an overview of all the resources that would be used in completing a project. PERT charts just provide an outline of all the tasks that are interconnected in a project (Raz & Barnes, 2003).

Critical Path Method (CPM)CPM is another important statistical tool, which is widely used for managing projects in different organizations. The CPM helps in calculating the time required for each and every activity or task involved in the project. It helps in aligning all the functions involved in the project management. By comparing CPM with Gantt Charts, it can be said that Gantt Charts are more helpful in proving a chart of all the activities along with all the resources and time required (Raz & Barnes, 2003).


When a new system is being implemented in the organization, it is necessary to make sure that the users of the system do not face any problem. The system is designed to help its users in efficiently and effectively managing their role and responsibilities (Anand, Gardner & Morris, 2007). When a new payroll system is being implemented in an organization, it is necessary for the project managers to take continuous feedback from the HR managers. The new payroll system will be used by the HR managers to carry out the process of compensation and salaries. So, it is necessary that the project managers take feedback from the HR managers. The feedback will help in the following ways:

Suggestions, advices and ideas will help in bringing positive and relevant changes in the project.

Feedback will help the project managers and HR managers in designing an efficient and effective system that can make their project successful.

The feedback will also help in making sure that the HR managers and employees adapt the new system, which will help in making the integration process easier.

It is the responsibility of the project management team to take continuous feedback from the managers and employees. Once the feedback is taken, the project team has to filter out the irrelevant information so that they can use the relevant feedback to bring positive changes. Analysis and evaluation of the feedback will help in determining that what information is relevant and what is irrelevant. It will help in critically evaluating the useful information and making sure that an effective system is designed and implemented (Anand, Gardner & Morris, 2007).

A feedback loop is important in getting all the required data. The feedback loop is after the action. The action in this point is the payroll of the employees and the nature in which the payroll is administered to the employees.

Types of Behavioral Problems

Outsourcing the organization’s legacy payroll system is a major decision of the organization and will have a significant impact on the behavior of managers and employees. Many employees do not favor outsourcing the payroll system as it will share their personal information and data with the firms that are providing outsourcing services. Bringing change in any function or system of the organization requires acceptance from the managers and employees. A change has both positive and negative impact on employees, and it is necessary to evaluate the behavioral problems that might arise. The project team managers can evaluate the behavior problems to make sure that the outsourcing process is integrated successfully (Beer, 1997).

The behavior of employees and managers towards an outsourced payroll system won’t be favorable in all ways. They might not like the way they are being evaluated and judged by other firms. The HR managers might face problems in integrating the new payroll system into the organization because of the unfavorable response of employees. The project management team should continuously coordinate and communicate with the employees and HR managers so that they can get relevant feedback from them. The suggestions and feedback will help in focusing on the critical needs of employees and HR managers so that they can be catered successfully.


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Beer, M. (1997). The Transformation of the Human Resource Function: Resolving the Tension between a Traditional Administrative and a New Strategic Goal. Human Resource Management vol. 36 (1), pp. 49-53. Retrieved from ( HYPERLINK “”

Raz, T. & Barnes, R. (2003). A Critical Look at Critical Chain Project Management. Project Management Journal, vol. 1 (1), 22-34. Retrieved from ( HYPERLINK “,December%202003.pdf#page=26”,December%202003.pdf#page=26).

Santos, B.D. (1999). Justifying investments in New Information Technologies. Journal of Management Information Systems, vol. 7 (4), pp. 71-90. Retrieved from ( HYPERLINK “”