Project Management

[Name of the Institute]

Project Management

Introduction

In the contemporary business environment the respective companies have to operate in a highly competitive and performance based scenario. The concept of globalization which has become one of the most influencing features of the current global business environment, has drastically altered the nature of business activities on a global scale. The current companies have to ensure that they possess the adequate strategic and organizational tools to be able to identify the consumer demands, and produce the products and services which will satisfy these demands. In this perspective the businesses cannot afford any scale of inefficiency in their organizational setup, and they must seek to maximize the efficiency of their entire organizational structure (Graham, 1981). This approach will help the organizational attain strategic advantage, and they will be able to survive and prosper in the highly competitive nature of the global business sector.

It is due to the advent of the concepts such as globalization and a vast consumer market; the current organizations have started to adopt the strategy of maximum organizational efficiency. Concepts such as Total Quality Management and Continuous Improvement have cau8sed these companies to become highly flexible and learning entities. In the traditional perspective the organizations could afford to adopt a conservative strategy which will allow the advent of self managed operations. In this perspective the companies viewed self reliance and independence as a positive trait which will help them increase their span of capabilities and hegemony over the entire industry. Although this strategy was relevant to the traditional pre globalization business sector, where the market demand was restricted to the consumers of a single national market, and the demand trend was relatively stable; however I the contemporary volatile global market, the companies have to enhance their operational efficiencies using strategic tools such as business process outsourcing.

Discussion

Payroll Outsourcing Service 'Cost Benefit Matrix' in McDonalds

The primary objective of replacing the current in-house payroll system to the outsourced model is focused on enhancing the operational efficiency of the organization. McDonalds is a multinational fast food oriented organization, which consists of a global and diverse workforce. Maintaining an in-house payroll system is a very costly and inefficient initiative, as it forces the senior management of the company to invest in this department. The company has to develop their own system and establish the relevant infrastructure to maintain the current payroll system (Hill, 1968). This process can become more efficient and effective if the company seeks the help of relevant professionals that have acquired the expertise in the payroll functions. The indirect objective of the organization is to focus the employees and the core of the resources of the company, towards the core functions of the organization.

McDonalds can implement several; other alternatives as compared to the payroll outsourcing initiative, to enhance their operational efficiency. The company can seek to hire more talented individuals to bolster the current in-house system, and also make credible investments in the current system. This process will help the existing in-house payroll system to become ...