PAYROLL OUTSOURCED SERVICE

Executive Summary

Integrating an outsourced Payroll system is faced by primary challenges in prospecting, implementing and evaluating stages. The underlying reason is based on the knowledge that a Payroll system affects all departments simultaneously. In any case, the success of the payroll system is based on the in-house support it generates and the quality planning. This paper will attempt to prove that a payroll system can be successful if proper estimates, planning, integrating and evaluation are tackled out. The paper is structured into three main parts. The first part seeks to analyze the cost benefit matrix and how it responds to risks associated with the project. The second section will provide realistic tasks, to be applied in the planning stage of the project. This section will integrate the Gantt system as a satellite planning methodology. Thirdly, the paper will access the targeting issues related to integrating Payroll system in this organization. This section will also prevail on issues related to employee behavior problems.

Construct a Cost-Benefit Analysis matrix the Payroll project

Undiscounted Flows	2014	2015	2016	2017
Project Costs (Speculation)	-$519,000	-$222,000	-$176,000	-$180,000
Benefits	$824,000	-$1,300,000	$1,400,000	$1,800,000
Net Cash Flow	$824,000	-$1,300,000	$1,400,000	$1,800,000
Discount Factors	$1,648,000	-$2,600,000	$2,800,000	$3,600,000
Discount Rate
Base Year
Year Index	0	1	2	3
Discount Factor	1	0.8754	0.7999	0.725
Discounted Flows	0.0000	0.0000	0.0000	0.0000
Costs	0	0	0	0
Benefits	$623,454	$734,000	$921,000	$1,310,000
Net	$623,454	$734,000	$921,000	$1,310,000
Cumulative	$1,246,908	$1,468,000	$1,842,000	$2,620,000
Net Present Value	$2,620,000
Internal Rate of Return	27%

 

The risks associated with integrating a new payroll system

Payroll systems fail during implementation because of several factors, amongst them being corruption and lack of sufficient support from staff members. Information Resources Management Association Internal Conference (2001, p. 739) identifies lack of discipline as the leading cause of risk. Inquiries have been made to construct logistics behind failures of most ERP systems. Results have established that discipline among poor planning and incoherent control as the primary problems. Secondly, there is a significant problem associated with incompatibility issues. This is results when there is confusion between roles and responsibility of the project’s different departments; for instance, Information Technology department attempting to override the Human Resource department. Thirdly, the system may fail to notice the difference between system scale and complexity. Fourthly, the system may fail to achieve results because of the disparity in how the risk is designed and the company expectations.

Mitigating Risks

The primary risk is associated with lack of sufficient support by the employees. So , there is a need to bridge the disparity generated in objectives, goals and needs of the firm and those of its staff. In any case, issues related with corruption, negligence and insincere support should be dealt with comprehensively. Goldman (2009, p. 90) suggests that the organization should reaffirm its rules and regulations collectively. Secondly, issues related to the disparity of system processes and organization expectations should be dealt with by integrating appropriate training procedures as the prime goal. Training needs and methodology can be facilitated from information generated from the Research and Development (RD) department internal audit mechanism.

Tasks that would be needed to complete a Gantt chart

Essentially, the Gantt chart is going to facilitate the determination of strategy. This revolves around start and finish dates of terminal elements. In any case, values supplied are interdependent with each other forming precedence in the network. Therefore, task determination is very crucial in evaluating the relevant development strategy

			Estimated	Project	Time
	Tasks	Predecessor	Optimism	Normal	Pessimism	Required Time (days)
a	Plan Formulation	–	1	3	5	3
b	Presentation to stake holders	–	2	4	5	3.14
c	Team development	a	7	3	2	4
d	Data development	b	8	5	3	5.17
e	Identification of practices	b	3	6	9	6
f	Feasibility test	c, d	4	5	4	6.3
g	Commencement of the technical project	e	5	7	8	6.67
h	Pre-Project evaluation	f	5	8	4	5.17
i	Project evaluation	f, g	5	7	2	4.6
j	Post project evaluation	g	6	8	4	6
k	Report formulation	f	5	8	2	5

 

Advantages and disadvantages of using a Gantt chart versus using PERT

There are inherent features that make Gantt system better than Performance Evaluation and Review Technique (PERT). Firstly, proper display of data is very crucial since this communicates feasibly to the system. Gantt analysis the percentage of work tacked at each threshold. Gantt is superior compared to PERT since PERT display data in a network model. Also, it is good to acknowledge that the Gantt system is much simpler to track compared to the PERT system. The underlying reason is its ability to interconnect data using time as the integral allocator. So, interconnected data makes it easier for strategist to interpret data unlike the PERT system which does not interconnect data. Thirdly, the Gantt system is more accurate compared to PERT. In this case, accurate data is easier to read and adjust; therefore, prompting the Gantt system over the PERT. This is the based on its ability to reflect on timing in its analysis. On the other hand, PERT illustrates tasks dependencies more than a set time frame.

Feedback loops

Feedback mechanisms are substantial in the evaluation stage (tasks). Harrison & Lock (2004, p. 229-230) argue that prudent filtering is one that appreciates the diverse contributions of each department. The department requires communication (top – bottom, and bottom –top communication channels). Essentially, the project strategists should formulate questionnaires informs of tables. The questionnaires should seek to test feedback through critical or technical approaches. Once data is generated, records should be parched by use of filtering methodologies. In any case, the Research and Development department should decide viable data to be feed on the Gantt chart system. Lastly, the Project Management Office (PMO) should consider using emails, message and automated phone calls in the overall evaluation process.

Targeting critical information provided by potential users of the new system.

There are successful methodologies to obtain information from users. First, during the evaluation stage, it is good to enroll questionnaires through the system chart forums. Essentially, users will be asked questions related to compatibility, usability, practicability, and agility of the system to meet organization goals. Jain (2009, p. 246) argues that staff should respond at various levels of the customization process. Breakdown of communication is primarily responsible for customization failure. Other methodologies will involve direct communication, suggestion boxes, staff/ board meeting/ department meeting and timely consultancy. The application of these methodologies will be integral in mitigating information disparity required in the deployment process.

Behavioral problems and resistance

ERP systems are often challenged by significant resistance from by different departments. Managers and system developers have to cope-up with intricate rebellion from employees in their careers. It is good to consider that there are diverse employees, and the manager is obliged to develop methodologies to integrate them in the system with them. Kammerlander (2013, p. 75) argues that the primary course of rigidity is the development of beliefs experience generated from the old system, and the nature of training that one got. As a result, it is imperative to acknowledge the necessity of training amongst other method in the general scheme of protecting the program. Notably, training will incorporate evaluation. The PMO office is mandated to develop methodologies which will be vital in mitigating employee rebellious behavior. Secondly, it is good to respect employee decision, and in either case, talks will be directed in encouraging employees understand the system is good for their own good. Thirdly, it is good to stick to the Gantt plan. This can be achieved by developing a timing framework in the overall resistance behavior response plan.

Conclusion

This paper has been substantial in analyzing the feasibility study of integrating an outsource payroll system in this organization. The paper has proved the viability of the program is based on the quality of management, which in either case provides a planning mechanism. The paper has also acknowledged the inference of internal organizational resistance fighting the program. In particular, the paper has accessed the use questionnaire and tables to tap employees’ compatibility pros and cons in embracing the system.

 

 

 

 

 

 

 

 

 

References

Goldman, P. (2009). Financial Services Anti-Fraud Risk and Control Workbook. New York:

John Wiley & Sons.

Harrison, F., & Lock, D. (2004). Advanced Project Management: A Structured Approach.

Farnham: Gower Publishing.

Information Resources Management Association. Internal Conference. (2001). Managing

Information Technology in a Global Economy. New York: Idea Group.

Jain, V.K. (2009). INFORMATION technology issues & challenges. Mumbai: Excel Books

India.

Kammerlander, N. (2013). Organizational Adaptation to Discontinuous Technological Change:

The Effects of Family Influence and Organizational Identity. New York: Springer.

 

 

 

 

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