Project Management

Project Management

Introduction

Project Management id the skill of organizing, planning, motivating and resource controlling to achieve a certain goal. The goal in terms of organizational behavior is to bring in a positive change in the organization. However, Project management is a generalized term and to specify the methodology to achieve project management is really important.

In this case we will be employing Cost - Benefit Analysis to recommend a change from internal payroll service to payroll outsourcing service. The prime objective of employing Cost benefit analysis is to identify whether the investment in the outsourcing payroll system is sound or not? However, the procedure is an easy one in which we list down the alternatives, the stake holders, than we measure all the elements which incur cost or are benefitted by the change, predict the outcomes for as certain time period about the benefits and the cost, convert both the commodities in a similar currency, apply rates if discount and then calculate the value.

The company has decided to shift its payroll system from an internal payroll system to an outsourcing payroll system. The advantages and disadvantages of both the systems will be defined as the paper proceeds (Starling, 2003).

Discussion

Internal payroll systems are those which come with a benefit of allowing the user to enter his or her data by himself for e.g. an employee attendance record. It is then managed by the human resource department to enter or delete an employee's data in the payroll record and finally the accounts department calculates the final data and cheque are provided to employees by hand.

This system introduces a lot of loop holes for the company and prone the companies open reserves for cheat by false employees. This method is time consuming, employs the effort of two departments and provisions the company employees top used the provisions to their illegal benefits.

The outsourcing payroll system pr5ovides its customer companies to a lot of benefits. Firstly the system provides an automated attendance register system which ensures that no employee cheats the company in terms of false attendances.

It further adds the benefits that the company no more requires the accounting and human resource departments to co - ordinate In terms of disbursing salaries. Accept that the salary automatically disburses in the employees account (Lock, 2007).

Direct and indirect revenue enhancements

The direct revenue enhancements because of outsourcing payroll accounts will be of two types. Firstly a direct reimbursement of revenue will take place as the company will reduce the employees in accounts department. Similar, direct reimbursement will be when employees from human resource department will be downsized when the employee working for the payroll setup will no longer be required.

Indirect reimbursement of revenue will take place when the false employees who enter their attendance themselves used to cheat the company by coming late and entering their timing earlier will be deducted for late comings (Gutzwiller & Steffen, 2000).

Direct and indirect cost reductions

The cost will be directly reducing to maintain the employee records on ...