HUMAN RESOURCE MANAGEMENT (HRM) SYSTEM IMPLEMENTATION PROJECT AT XXXXXXXXXX CARS

TABLE OF CONTENTS
EXECUTIVE SUMMARY.........................................................................................................3 1.0 PROJECT INFORMATION............................................................................................4 1.1 Project Title...........................................................................................................4 1.2 Description.............................................................................................................4 1.3 Rational..................................................................................................................4 1.4 Feasibility Study....................................................................................................5 2.0 PROJECT SCOPE............................................................................................................6 2.1 Project Aim............................................................................................................6 2.2 Project Objectives..................................................................................................6 2.3 Deliverables...........................................................................................................6 2.4 Milestones..............................................................................................................6 2.5 Limits & Exclusions..............................................................................................6 2.6 Service Review......................................................................................................6 3.0 WORK BREAKDOWN STRUCTURE..........................................................................7 4.0 COST ESTIMATES..........................................................................................................8 5.0 TIME SCHEDULE & CRITICAL PATH......................................................................9 6.0 PROJECT SHORTENING STRATEGY.......................................................................10 7.0 QUALITY MANAGEMENT...........................................................................................11 7.1 Quality Assurance..................................................................................................11 7.2 Quality Control......................................................................................................12 8.0 TEAM PERFORMANCE.................................................................................................13 8.1 Project Team Members..........................................................................................14 9.0 MONITORING & EVALUATING THE PROJECT....................................................15 9.1 What Data to Collect..............................................................................................15 9.2 Collection Date & Analysis...................................................................................15 9.3 Reporting...............................................................................................................15 10.0 EXPECTED CLOSURE CONDITIONS........................................................................16 11.0 RISK MANAGEMENT....................................................................................................17 11.1 Project Obstacles...................................................................................................17 11.2 How to Manage......................................................................................................17 12.0 RECOMMENDATIONS..................................................................................................19 13.0 BIBLIOGRAPHY..............................................................................................................20 14.0 APPENDIX.........................................................................................................................21 14.1 Project Selection Model.........................................................................................21 14.2 Work Breakdown Structure...................................................................................23 14.3 Project Network Chart...........................................................................................24 14.4 Project Slack..........................................................................................................25 14.5 Project Cost Estimates...........................................................................................26 14.6 Quality Assurance Form........................................................................................27 14.7 Monitoring & Evaluation Form.............................................................................27 14.8 Project Closure Form.............................................................................................28 14.9 Risk Management Form........................................................................................29 14.10 Contingency Plan Form.........................................................................................29 14.11 Risk Severity Matrix..............................................................................................29

EXECUTIVE SUMMARY
The project is to determine whether it is feasible to implement a Human Resource Management system, integrating HR with payroll. The aim is to maximise business performance at XXXXXXXXXXX. The work breakdown structure outlines individual work packages which are in-turn utilised to estimate cost, set milestones, & create guidelines for quality management systems. The project has a low sensitivity, minimal lag time & due to lack of information is difficult to calculate cost shortening strategies. Project data is collated to monitor & evaluate performance and closure conditions have been established to determine the end of the project. Recommendations include: (i) The project manager should develop a clear and well defined criteria set for system providers to ensure that all requirements are met prior to initiating the project. Liaise with other departments to determine the function they require to perform their roles. (ii) (iii) The project manager should understand the technical aspects of the payroll system and other company systems prior to meeting providers to ensure they are compatible, other wise additional costs may be incurred. The project manager should ensure that the IT department has the capabilities to manage the internal technology components of the project.

1.0 PROJECT INFORMATION

1.1 PROJECT TITLE

The title of this project is Human Resource Management (HRM) System Implementation Project at XXXXXXXX Cars

1.2

DESCRIPTION

At present XXXXXX does not have a Human Resource system linking payroll to personnel. Both departments are located in different buildings using different servers and methods of storing files. All personnel files are stored in filing cabinets located in payroll, and current processes are completely manual requiring additional time and effort to perform. The goal of the project is to combine both departments on one system maximising efficiency and creating a resource to benefit the companys operational goals. The benefit to the company is difficult to measure financially but will mean Human Resources can concentrate on business strategies rather than solely reacting to internal problems or issues. The system/software will purchased externally as the technology, and expertise, are not available within the company. The resources (labour & equipment) to complete the project are available internally, and due to the size and nature of the project, changes to the organisational structure will not be required. The project will be completed within 4 months but the HRM system should last as long as the technology is current and continues to benefit the company. The project is an operational project that supports current operations (Gray & Larson, 2008) and the overall aim is to improve efficiency & performance of HR processes and maximise employee productivity.

1.3

RATIONAL

Human Resources within the organisation was introduced 2 years ago to centralise information utilised for employment of new staff, terminations, compliance with legislation and as a resource to improve retention and performance. The company has grown 20% in the last 2 years and the HR processes are currently not meeting demands or assisting the company meet its business goals. The new HRM system would mean less time spent on unimportant tasks or menial duties and more time on areas that benefit the organisation. The new system would provide reports on staff turnover, training & induction of new employees, notification of performance evaluations, and anniversaries. The system would give support to managers and employees so they can perform at their best.

1.4

FEASIBILITY STUDY

Determining what project management structure to use is based on: Size of Organisation Importance to business The need for innovation Budget & Time Constraints Resource & Environment The need for integration Gray & Larson (2008, pg. 69)

Selecting financial criteria for a project like this is difficult as benefits to the organisation cannot be defined in monetary values. The benefits will be seen through its employees performance and relationship to the company. This being the case Non-Financial project selection criteria will determine if the project is in-line with company strategies and goals. Assessing the chances of success using a project portfolio matrix would qualify this project as a Bread & Butter project. See appendix 14.1 for the project selection model.

2.0 PROJECT SCOPE

2.1 PROJECT AIM

To implement a Human Resources Management (HRM) system to streamline the Personnel & Payroll functions of the business, in order to maximise business performance at XXXXXX.

2.2

PROJECT OBJECTIVES

To investigate the feasibility of implementing a HRM system at XXXXXXXX and its value to the organisation. To minimise risk of project failure through detailed planning, quality measures, monitoring & evaluation techniques. To provide an estimated budget, timeframe and project management model to ensure the project remains on time and within budget (if approved). To identify the project critical path & potential cost strategies to reduce timeframes & costs. To research & analyse the types of systems/software available in the market & ensure functions meet company requirements & that technical aspects match technology currently is use within the organisation. Identify five potential providers.

To outline the closure conditions for the project and method of closure. To determine if the project will be undertaken by the organisation, & make recommendations to maximise project success.

2.3

DELIVERABLES

The completed HRM system that integrates payroll and human resources is the only deliverable for this project.

2.4

MILESTONES
14/9/08 19/10/08 17/11/08 4/12/08 15/12/08 18/12/08

Completion of the performance requirements Research & identification of 5 system/software providers Provider selection System development System implementation Testing

2.5

LIMITS & EXCLUSIONS

All work not completed by the systems/software provider will be completed internally by project team members. Measurements during the project will not be based on cost, rather on completed work packages. Cost reducing strategies have not been calculated as costs are unknown, so timeframes will be used as guidelines to ensure project is on track. Salaries will be as per normal and have been shown in the cost breakdown as a separate item, but they do not contribute to the direct cost to the organisation.

2.6

SERVICE REVIEW

The HR departments satisfaction review will follow the project closure to ensure the system is meeting expectations.

3.0 WORK BREAKDOWN STRUCTURE

The WBS is a hierarchy of the processes involved in the project. The WBS helps the project manager by defining the framework & relationships. It includes the lowest levels of the WBS which are called work packages. These will be referred to throughout the report. It is suggested that work packages should not exceed 10 days and this is the case with this project. All the work packages within the project will be completed by the project manager, the IT department, or the system/software provider. The work packages will be used as measurements for tracking progression, quality control and scheduling of resources. Appendix 14.2 outlines the WBS for this project.

4.0 COST ESTIMATES

This is a new type of project for the organisation estimating on past experiences is difficult. The costs provided (see appendix 14.5) are very general. Estimating needs to be accurate to be effective, as poor estimating can lead to project failure. The company has used a Consensus Top-Down estimation strategy to determine the costs associated with the project. Management has set a budget $26,000 with some flexibility to ensure the best system is obtained. The reason for choosing a top down method is because it is a small internal project and most of the information required to estimate is not available. Due to the fact the project team will be completing the project as part of their everyday work requirements, all labour and administrative costs will be included in normal departmental costs. The only direct cost impacting the organisation will be the system purchase at $20,000 and potentially licensing costs of approximately $1000.00 per year. An additional $3,200.00 will be set aside for emergencies. There are a number of contributing factors they may affect the budget and need to be accounted for in the project planning. These include: People not having the right people in the right roles can delay the project, lead to mistakes, or increase expenditure due to additional salaries or services. Using internal staff limits the choices of experienced team members. Duration of the project if the project extends past what is scheduled then the costs most likely will increase. People Errors people do make mistakes and it can be costly. Planning and clear directions help minimise human errors. Errors will be included in the project Risk Assessment and possible contingencies set e.g. deleting data. The organisations culture if the organisation is open to the implementation of the new system and accepts it as beneficial to company growth and development. Padding Estimates sometimes providers will pad their estimates & costs to win tenders to make sure they have enough time to complete the project. Organisations & provider need to make sure they are clear and are in turn aware of the time schedules associated with this project. To help set costs for the HRM project the project manager has applied by the following guidelines: (i) (ii) (iii) (iv) (v) (vi) Estimations should be made by people with experience, and in this project it will be the SEM of Administration and the IT department. The size of the project & company means that additional sources for estimating are limited. Costs & estimates are based on normal conditions and efficient levels of resources. Days have been used as the time unit for ease of managing. The estimate does not include contingencies. Estimating higher costs for work packages with higher risks.

5.0 TIME SCHEDULE & CRITICAL PATH

ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Task Name HRM System Perform ance Requirem en ts Determine Function Requirements Proposal Criteria Research / Identify 5 Syst em s Research Prospective Systems/Softw are Provider Meetings Review Actual v Ideal Test / Trial Systems Provider Selection Submit Proposal Requests Review Proposals + Return Time Second Provider Meetings Project Sponsor Meeting Decision Inform Providers of Decision System Developm ent Provider & IT Dept Meeting System Development System Im plem entation Integration Payroll Integration Data Transfer Data Input System Testing Functionality Reporting Training End Users 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% August 18/08 25/08 September 1/09 8/09 October 15/09 22/09 29/09 6/10 November December 13/10 20/10 27/10 3/11 10/11 17/11 24/11 1/12 8/12 January 15/12 22/12 29/12 5/01 0% 12/01 19/01 26/01 February 2/02 9/02 16/02 23/02

This project is classified as a resource-constrained project as although time is an important factor, the company can only provide a limited amount of resources, & any delays due to resources not being available are acceptable. Based on the critical path (shown in red) this is not a very sensitive network. One section has a large lag time (5 days) and that is following the submission of proposals as the organisation awaits the return of the completed proposals. Project slack time and free slack for this project is calculated and shown in appendix 14.4. The Network Chart is provided in the appendix 14.3. Due to the size and nature of the project it was difficult to fit the network into this report. It was determined that the chart above provided the required information and was easier to comprehend. At this stage scheduling resources is difficult to predict. Each of the three members of the IT department & project manager has access to their own computers and servers. If further resources were required then it would be beneficial to provide a resource list & include the resources as part of the time schedule.

6.0 PROJECT SHORTENING STRATEGY

One of the main roles of the project manager is to look at the critical activities of a project and find ways to shorten the duration. Shortening an activity is called crashing and the direct cost for an activity in its crash time is called a crash cost. Gray & Larson (2008, pg. 290) The project manager needs to determine if the reduction in time is worth the difference in cost. Sometimes shortening a project may blow out the budget. The reason to reduce duration is so the organisation can remain competitive. For the HRM system implementation the costs are not available for individual work packages and it is difficult to predict being a new type of project. During the project, costs may be forthcoming and the business may be able to work out an effective shortening strategy using the cost-duration graph. Working out the cost per unit if time involves: = Crash cost normal cost Normal time crash time Other project shortening strategies in consideration are: (i) The most appropriate strategy to reduce costs for this project is to effectively manage any risks that might add to system development or implementation. As resources e.g. manpower, are limited and internal staff have other tasks to complete the organisation cannot keep them involved in the project too long. (ii) Other strategies to reduce cost involve product selection or choosing a different / cheaper alternative system. The organisation may be able to complete more tasks internally to reduce the cost associated with the external system provider. (iii) Review cost estimates & compare to un-normal conditions to determine if similar. (iv) (vi) Adding additional resources to the project. Scheduling over time to speed up the project. (v) Outsourcing project tasks to an external party rather than completing internally. (vii) Fast tracking so that critical activities can be completed in parallel rather than sequentially to each other. (viii) Reduce the scope of the project. (ix) Compromise on the quality of the project.

7.0 QUALITY MANAGEMENT

It is important that the project is conducted in a manner that is efficient and delivers on the objectives of the project. An effective Quality Management System includes the policies and procedures for the project; the steps that help the project meet requirements (Quality Assurance), and control measures that maintain the integrity of the process (Quality Control). A main component of the quality management system will be the risk management plan in order to minimise potential risk. The hazards identified and control measures are the key areas utilised to ensure the project quality. Australian businesses are provided with support by Standards Australia in the form of Guidelines for Performance, Occupational Health & Safety, and Systems. The Standard for this project will be AS/NZS 9004:2000 Quality Management Systems: Guidelines for Performance Improvements. (Standards Australia) The areas that influence Quality Management on this project are: (i) What incentive is there to the organisation/staff to implement or use a quality management system? If the project is run smoothly, completed under budget and on time, then the performance of the HR department will increase having a positive impact on the rest of the organisation. As the company is growing there is pressure to remain technologically up to date, but this is not the driving factor for the project. (ii) How receptive is the organisation to the project and system implementation? The new system will have little impact on the company structure, the organisation policies or staff relationships, so the staff will be waiting to see how the changes will benefit them. As the IT department are the main contributors to the project they will be receptive as this is an exciting challenge and a rare opportunity in a company this size. (iii) Does the organisation have the ability to accept the changes? The system will only be utilised by the HR department and various managers on a needs basis. Management currently has the technical capabilities to use the system but training will be provided and make up part of the quality improvements moving forward. If the company continues to grow the new system may be modified to provide employees direct access to their personal information. System growth will be included in the criteria for the project and will make up part of the quality assurance to make sure that if it occurs, there is minimal cost or down time in the future.

7.1
(i) (ii) (iii) (iv) (v) (vi) (vii)

QUALITY ASSURANCE

Criteria for quality assurance include: Is the project on track? Have there been any unexpected costs? Is the project team managing their responsibilities at an efficient level? Is the provider implementing the system meeting expectations? Was enough time provided for completed work packages? Are enough resources available to complete the work packages? Can the system adapt top future growth?

(See appendix 14.6 for blank Quality Assurance form)

7.2

QUALITY CONTROL

Quality control is the method of inspection to ensure the product meets required conditions. Gray & Larson (2008, pg. 63) XXXXXXXXXs quality control plan has a set of procedures that covers all key tasks in the project, and what is required following the project. To ensure quality each task needs to be signed off by the project manager prior to starting the next work package. It is the project managers responsibility to keep adequate records; check system for defects, instigate the appropriate corrective actions, and regularly review processes and the quality system itself for effectiveness. Below is an example of the quality control that will be implemented for this project.

Activity Payroll Personal Files Reports Templates Proposals System Development Criteria Problem Solving

Level of Inspection Are the salaries correct? Are the files secured? Are they structured in the correct manner? Are the templates correct? Have the proposals been sent? Has a development plan be created? Are all required functions included in the criteria? Is help available should problems arise in the future?

Sign-Off

8.0 ENSURING TEAM PERFORMANCE

A number of factors contribute to the success and effectiveness of a project team. Most importantly is communication between all stakeholders and team members. Based on the size and basic complexity of this project, the organisation will utilise the functional structure and work with resources (manpower) currently available within the company. The benefits of this structure to this project are: (i) No change in the structure of the organisation as internal staff will be used. (ii) Flexibility with involving staff to perform tasks as the IT department has 3 capable people that could get involved. (iii) Skill sets and expertise of those able to perform the tasks. (iv) Easy transition back to normal duties following project.

The disadvantages of this structure are: (i) Lack of focus as team members are still responsible to carrying out their normal duties. (ii) Poor integration, again as this is not their number one priority. (iii) Slow communication lines between departments where a specific project team would generally be working together. (iv) Lack of ownership the project manager needs to ensure people are aware of their responsibilities and the need for quality work. Steps to assist the performance of a project team 1. 2. 3. 4. 5. 6. Recruit the Right People as this project will be using current staff it is difficult to control and may impact on schedule & costs. Project Meetings meetings need to be relevant to the project & contribute to the project success, not cause delays, or additional costs. Meetings should also be used to establish guidelines for the project. Team Identity ensure that people know their position in the team & their responsibilities being a part of the team. A clear hierarchy should be established which will also assist communication. Share vision outline the goals & expected outcomes so that all team members are working towards the same goals. Reward System ensure team members are encouraged to work hard and congratulated when goals are achieved, or the team is ahead of schedule. Manage Conflict all staff at XXXXXX are expected to comply with polices & procedures and abide by a code of conduct. If issues arise procedures are in place to assist the project manager. The team should be encouraged to communicate freely within the team about issues so that conflict can be resolved prior to becoming in issue. What makes a good team? The team share a purpose The project manager identifies talents & utilises them A balances of roles with experience & skills sets They exert energy towards problems Opinions & differences are encouraged so they can benefit the project. The project manager encourages risk creativity.

A project managers performance must exceed others expectations and can be measured in how they respond to ethical dilemmas, tackles problem solving, meet deadlines and how efficient time is managed. A good project manager needs to be able to maintain stability, see the big picture while getting involved in the work, and encourage individuals within the team.

8.1
a) c)

PROJECT TEAM MEMBERS

- HR Advisor - Senior Executive Manager (SEM) Administration - System/Software Provider - IT Department - Admin Support (as required)

The team for this project will be: Project Manager: Team Members: b) Project Sponsor:

9.0 MONITORING & EVALUATING THE PROJECT

9.1 WHAT DATA TO COLLECT

To monitor the progress & status of the project, timeframes will be set for each work package to ensure they are completed within the required timeframe. Dates for reviewing & evaluating will be based on the project schedule and completion date. Any problems found will be identified and actions addressed. An explanation will be provided outlining why the project is over/under costs or timeframes and any actions required moving forward. (See appendix 14.7 for Monitoring & Evaluation Form)

9.2

COLLECTION DATE & ANALYSIS

The information collected will be presented to the Project Sponsor at the completion of each stage. Information collected will be analysed and presented fortnightly to ensure communication is effective and beneficial to the project. Any immediate findings will be discussed with the team and actioned as appropriate. The information will be presented via the Monitoring & Evaluation Form and through verbal communication as the project is small in size and requires minimal employee/management involvement.

9.3

REPORTING

Reporting will be between the Project Sponsor & Project Manager to minimise impact on the organisation and to increase response times to problems. Important information that needs to be included in the report: What is the current status of the project? Cost to date? Cost to complete? Completion date? Problems identified? Problems to be addressed? Over or under budget & reasons why? Is the project still relevant? Is it benefitting the company? Date of evaluation Evaluation completed by Evaluation No. The evaluation is for?

10.0EXPECTED CLOSURE CONDITIONS

At the conclusion of the project information is required by the project sponsor, and in this case the managing director of XXXXXXX. The information required at the closure of the project includes: Was the project successful? What tasks are required to close the project? Who is responsible? When will it begin and end? How will the project closure information be delivered?

(See appendix 14.8 for the project closure form) Following the implementation of the HRM system a report will be provided to the Project Sponsor and Managing Director outlining spending and budget results, system performance, and the necessary resource requirements e.g. IT department, moving forward. The implementation of a new system would be considered normal, once it is being utilised efficiently by staff and processes information as outlined in the initial criteria. As this project is fairly straight forward it is easy to determine the end of the project. The closure method will be the report and closure form. Each work package of the project will be signed off to ensure completed to the required level. A final sign off will be required from the project manager to close the project. The information gathered in the evaluation stage will be used to present a final report to the Managing Director and Project Sponsor.

11.0RISK MANAGEMENT
The best way to reduce the chance of failure is through detailed planning and identifying potential obstacles, prior to starting the project, and eliminating the threat or preparing prevention strategies to minimise the impacts. The best way to minimise the risk to a project is through a risk management plan (see appendix 14.9) and contingency plan (see appendix 14.10). The key to managing risk is keeping things straight forward and being prepared. The project manager is responsible for all responses, plans, and controls during this project. The aim of a risk management plan is to avoid risk, reduce threats, transfer the risk, or eliminate risk where possible. The reason behind having a project contingency plan is to manage: Technical Risk things that shut the project down Scheduled Risk contingency funds Cost Risk price changes Funding Risks funding supply

11.1
a) b) c) d) e) f) g) h) i)

PROJECT OBSTACLES

The risks identified for this project are: Implementation Problems Development Delays Costs Increasing Beyond Budget (padding) Communication End User Training Incorrect Proposal Criteria Delayed Return of Proposals Initial Providers not Meeting Requirements Data transfer & Input Complications

Once identified the hazards are inserted into a risk severity matrix to assist prioritise importance, so they can be dealt with in the correct order of importance. (see appendix 14.11)

11.2
a) b) c) d) e)

HOW TO MANAGE

Ensure clear communication lines during development are maintained & regular updates are provided. Provider to supply checklist of work to be performed so IT department can streamline internal aspects of the implementation. Establish criteria prior to development, provide access to internal systems & staff, & maintain communication. Ensure all cost is factored into budget prior to starting work. Inform provider that costs outside of this will not be paid for by the organisation. Clear management lines between team and project manager, and between team and provider. Establish KPIs for communication e.g. return all calls within 1 business day. Provide end users with checklists to follow & easy to understand instructions. Multiple training sessions may be required.

f) g) h) i)

Speak to system users to understand individual needs. Provide questionnaire & ensure criteria is in-line with the project goals. Set achievable time frames based on criteria and proposal requirements. Keep record of all providers researched in-case required. Ensure thorough research at start of project to ensure providers meet system requirements. Ensure provider is aware of data transfer requirements. Provide examples and deadlines for transfer.

12.0RECOMMENDATIONS
Based on the information provided in this report it is explicitly recommended that the implementation of the Human Resource Management system be undertaken by XXXXXXXX Cars. The following recommendations should be considered to minimise delays, reduce cost, or improve team performance. (i) The project manager should develop a clear and well defined criteria set for system providers to ensure that all requirements are met prior to initiating the project. Liaise with other departments to determine the function they require to perform their roles. (ii) (iii) (iv) (v) (vi) The project manager should understand the technical aspects of the payroll system and other company systems prior to meeting providers to ensure they are compatible, other wise additional costs may be incurred. The project manager should ensure that the IT department has the capabilities to manage the internal technology components of the project. A defined hierarchy and communication lines should be establish to improve project efficiency. Determine KPIs & dates for monitoring performance of project team and system provider. Build performance measures in to the proposal submission. Create process for requesting further funds or time and ensure all parties are aware of the process.

13.0BIBLIOGRAPHY
Gray, C, Larson, E. (2008) Project management: the managerial process, 4th edn, McGraw-Hill, New York. Standards Australia, http://www.standards.org.au/, viewed 19th August, 2008.

14.0APPENDIX
14.1 PROJECT SELECTION MODEL
EVALUATION
WEIGHTING (1 low 5 high)

CRITERIA

What problems will the project solve? How important are these problems to the organisation?

A HRM system will streamline & centralise all current HR processes & administrative tasks, making information accessible to required managers. Currently HR is concentrating time & energy on responding to problems rather than working on strategies to benefit the organisation. It is important to continue the companys technology developments in line with business growth. There will be no direct impact or costs to the organisation if the project does not proceed. The HRM system must have: (i) Occupational; Health & Safety, injury management & incident reporting functions (ii) Instant notification of reviews, anniversaries & important events (iii) Organisation charts and company structure components (iv) Statistical reporting & KPI management (v) Templates for administration & auto-formatting. The project aligns with the Human Resources & Payroll which is specific to compliance, recruitment & retention strategies. Success will be measured on the systems ability to provide information that minimises wasted time, increases managers participation in HR processes, and staff awareness of HRs involvement in the organisation. Results will be difficult to measure but it would be expected that the system would be beneficial from its completion/release date. Results will be measured on employee performance & business compliance. The culture would benefit from this project as it relies on its people to be successful and HR to provide tools to employees & managers. Due to resources the system/software will be purchased, but it needs to be flexible enough to tailor to the organisations requirements. Tenders / proposals will be accepted from parties that meet system requirements, following research into suitable providers. The project will be completed within 4 months. Minimal training will be required as staff will have limited access to the systems. Only 10 users will require training. This may change in the future depending on company growth. The project will require (i) a project manager (most likely the HR Advisor) (ii) the IT department, software & hardware (iii) representatives from XXXXXXX management (iv) external system/software provider The SEM of Administration & Finance will provide the funding. Approval from the Managing Director may be required. The key risk is that the system does not negatively impact the other systems operating with in the organisation. E.g. finance. The project will take place at the organisations head office at XXXXXXX, the IT department on XXXXXXSt (server location) & at the external providers office (development).

What are the impacts of not proceeding with the project? What are the general requirements by the organisation for the HRM System?

What specific strategy does the project align with? What will be used to measure the success of the project? When will the project show results? Is the organisation culture right for this project? Build or buy? How will providers be sourced? What is the time line for the project? Is training required by the end users? What internal resources will be required to complete this project?

5 2

2 3 1 4 3 4

Who is the Project Sponsor? What is the key risk in implementing this project? Where will the project take place?

4 4 1

Who will the project impact/benefit?

The project will impact the HR & payroll department which will in turn to impact the managers, employees and the organisation as a whole. During the project there will be impacts on technology, and manpower required to research, develop, implement, & test the system. To keep the current system; to build an internal system; to expand one of the current programs in use to include HR functions. Estimated cost for the system would be $20,000 - $26,000. The value is efficiency of work, retention of staff, compliance, & maximising time so that Human Resources can focus on the business strategies & objectives. TOTAL WEIGHTING

What are the alternatives to this project? What is the estimated cost of the project? What is the project value to the company?

1 4 4 63

Weighting greater than 55 to proceed with project

14.2
ID 1 2 3 4 5 6 7 8 9 10 11 12

WORK BREAKDOWN STRUCTURE

DURATION 98D 10d 5d 5d 35d 10d 10d 5d 10d 20d 1d 10d Mon 15/09/08 Mon 29/09/08 Mon 6/10/08 Mon 20/10/08 Mon 20/10/08 Fri 31/10/08 Fri 26/09/08 Fri 3/10/08 Fri 17/10/08 Wed 19/11/08 Mon 20/10/08 Thu 13/11/08 9 11 Human Resources Human Resources, IT Department[50%] Human Resources, IT Department Human Resources, Project Sponsor Human Resources START MON 1/09/08 Mon 1/09/08 Mon 1/09/08 Mon 8/09/08 Mon 15/09/08 FINISH THU 25/12/08 Fri 12/09/08 Fri 5/09/08 Fri 12/09/08 Fri 17/10/08 4 6 7 8 Human Resources Human Resources, IT Department Human Resources 3 Human Resources Human Resources PREDECESSORS RESOURCE

TASK NAME 1 HRM SYSTEM 1.1 Performance Requirements 1.1.1 Determine Function Requirements 1.1.2 Proposal Criteria 1.2 Research / Identify 5 Systems 1.2.1 Research Prospective Systems 1.2.2 Provider Meetings 1.2.3 Review Actual v Ideal 1.2.4 Test / Trial Systems 1.3 Provider Selection 1.3.1 Submit Proposal Requests 1.3.2 Review Proposals

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

1.3.3 Second Provider Meetings 1.3.4 Project Sponsor Meeting 1.3.5 Decision 1.3.6 Inform Providers of Decision 1.4 System Development 1.4.1 Provider & IT Dept Meeting 1.4.2 System Development 1.5 System Implementation 1.5.1 Implementation 1.5.2 Payroll Integration 1.5.3 Data Transfer 1.5.4 Data Input 1.6 System Testing 1.6.1 Functionality 1.6.2 Reporting 1.7 Training 1.7.1 End Users

5d 1d 1d 2d 13d 3d 10d 10d 1d 3d 3d 3d 5d 3d 2d 5d 5d

Tue 21/10/08 Fri 14/11/08 Mon 17/11/08 Tue 18/11/08 Tue 18/11/08 Tue 18/11/08 Fri 21/11/08 Fri 5/12/08 Fri 5/12/08 Mon 8/12/08 Thu 11/12/08 Thu 11/12/08 Tue 16/12/08 Tue 16/12/08 Tue 16/12/08 Fri 19/12/08 Fri 19/12/08

Mon 27/10/08 Fri 14/11/08 Mon 17/11/08 Wed 19/11/08 Thu 4/12/08 Thu 20/11/08 Thu 4/12/08 Mon 15/12/08 Fri 5/12/08 Wed 10/12/08 Mon 15/12/08 Mon 15/12/08 Thu 18/12/08 Thu 18/12/08 Wed 17/12/08 Thu 25/12/08 Thu 25/12/08

11FS+5d "13,12" 14 15FS+1d

15 "18,16" 19 21 22 22

IT Department[300%]

IT Department IT Department[300%] IT Department[300%] IT Department[300%] Human Resources Human Resources Human Resources, IT Department[150%]

"24,23" "24,23" "26,76"

14.3

PROJECT NETWORK CHART (PART A)

R eview Proposa ls + R et urn Time

S t a r t : 4 /1 1 /0 8 Fin ish :1 7 /1 1 /0 8 I D: 1 2 Du r :1 0d a ys

D et e rmine Funct ion R equirem e nt s

S t a r t : 1 /0 9 /0 8 Fin ish :5 /0 9 /0 8 R e s: Hu m a nR e so u r ce s I D: 3 Du r :5 d a ys

Proposal C rit eria

S t a r t : 8 /0 9 /0 8 Fin i sh :1 2 /0 9 /0 8 R e s: Hu m a nR e so u r ce s I D: 4 Du r : 5d a ys

R esea rch Pros pect ive Syst ems/Sof t ware

S t a r t : 1 5 /0 9 /0 8 Fin ish :2 6 /0 9 /0 8 R e s: I D: 6 Du r :1 0d a ys

Pro vi der Meet ings

S t a r t : 2 9 /0 9 /0 8 Fin ish :1 0 /1 0 /0 8 R e s: Hu m a nR e so u r ce s I D: 7 Du r :1 0d a ys

R evi ew A ctual v Ideal

S t a r t : 1 3 /1 0 /0 8 Fin ish :1 7 /1 0 /0 8 R e s: I D: 8 Du r : 5d a ys

Test / Tri al Syst ems

S t a r t : 2 0 /1 0 /0 8 Fin ish :3 1 /1 0 /0 8 R e s: Hu m a nR e so u r ce s I D: 9 Du r :1 0d a ys

Submi t Pro posal R equest s

S t a r t : 3 /1 1 /0 8 Fin ish :3 /1 1 /0 8 R e s: Hu m a nR e s o u r ce s I D: 1 1 Du r : 1d a y

R e s:

Hu m a nR e so u r ce s, I T De p a r t m e n t [5 0 %]

Project Sponsor Meet ing

S t a r t : 1 8 /1 1 /0 8 Fin ish :1 8 /1 1 /0 8 R e s: I D: 1 4 Du r : 1d a y

D ecision
S t a r t : 1 9 /1 1 /0 8 Fin ish :1 9 /1 1 /0 8 R e s: I D: 1 5 Du r : 1d a y

Hu m a nR e so u r ce s, I T De p a r t m e n t

Hu m a nR e so u r c e s, P r o je ct S p o n so r

Se cond Provider Meet ings

S t a r t : 1 1 /1 1 /0 8 Fin ish :1 7 /1 1 /0 8 R e s: I D: 1 3 Du r :5 d a ys

Hu m a nR e so u r ce s, I T De p a r t m e n t

PROJECT NETWORK CHART (PART B)

I nf or m Prov i de rs of D e c i si on
S t a r t : 2 1 /1 1 / 0 8 I D: 1 6

D a t a Tra ns f e r
S t a r t : 1 5 /1 2 /0 8 Fin ish :1 7/ 1 2 /0 8 R e s: I D: 2 3 Du r :3d a y s

Func t iona li ty
S t a r t : 1 8 /1 2 /0 8 I D: 2 6 Fin ish :2 2 /1 2 /0 8 R e s: Hu m a nR e so u r ce s Du r :3d a y s

Fin is h :2 4 /1 1 /0 8 R e s: Hu m a nR e so u r ce s

Du r :2d a y s

I T De p a r t m e n t [3 0 0 %]

P r oj e c t Spon s or Mee t ing

S t a r t : 1 8 /1 1 /0 8 I D: 1 4 Fin ish :1 8 /1 1 /0 8 R e s: Du r : 1d a y

D e c ision
S t a r t : 1 9/ 1 1 /0 8 Fin ish : 19 /1 1 /0 8 R e s: I D: 1 5 Du r : 1 da y

Sy s t em D e v e l opment
S t a r t : 2 5 /1 1 /0 8 I D: 1 9 Fin ish :8 /1 2 /0 8 R e s: Du r : 10 d a y s

Int e gr a t i on
S t a r t : 9 /1 2 /0 8 I D: 2 1 Fin ish :9 /1 2 /0 8 R e s: I T De p a r t m e n t Du r :1d a y

Pa y roll I nt e gra t i on
S t a r t : 1 0 /1 2 /0 8 I D: 2 2 Fin ish :1 2 /1 2 /0 8 R e s: Du r :3d a y s

End U s e rs
S t a r t : 2 3 /1 2 / 0 8 Fin ish: 2 9 /1 2/ 0 8 R e s: I D: 2 9 Du r : 5d a y s

Hu m a nR e so u r ce s, P r o je ct S p o n so r

I T De pa r t m e n t [3 0 0 %]

Hu m a nR e so u r ce s, I T De p a r t m e n t [1 5 0 %]

Prov ider & IT D e pt Me e t ing

S t a r t : 2 0 /1 1 /0 8 Fin ish :2 4 /1 1 /0 8 R e s: I D: 1 8

Data I nput
S t a r t : 1 5 /1 2 / 08 Fin ish: 1 7 /1 2 / 0 8 R e s: I D: 2 4 Du r : 3d a y s

R e port ing
S t a r t : 1 8 /1 2 /0 8 Fin ish :1 9 /1 2 /0 8 R e s: Hu m a nR e so u r ce s I D: 2 7 Du r :2 d a y s

Du r : 3d a y s

I T Dep a r t m e n t [3 0 0 %]

I T De p a r t m e n t [3 0 0 %]

14.4
ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

PROJECT SLACK
START Mon 1/09/08 Mon 1/09/08 Mon 1/09/08 Mon 8/09/08 Mon 15/09/08 Mon 15/09/08 Mon 29/09/08 Mon 13/10/08 Mon 20/10/08 Mon 3/11/08 Mon 3/11/08 Tue 4/11/08 Tue 11/11/08 Tue 18/11/08 Wed 19/11/08 Fri 21/11/08 Thu 20/11/08 Thu 20/11/08 Tue 25/11/08 Tue 9/12/08 Tue 9/12/08 Wed 10/12/08 Mon 15/12/08 Mon 15/12/08 Thu 18/12/08 Thu 18/12/08 Thu 18/12/08 Tue 23/12/08 Tue 23/12/08 FINISH Mon 29/12/08 Fri 12/09/08 Fri 5/09/08 Fri 12/09/08 Fri 31/10/08 Fri 26/09/08 Fri 10/10/08 Fri 17/10/08 Fri 31/10/08 Mon 24/11/08 Mon 3/11/08 Mon 17/11/08 Mon 17/11/08 Tue 18/11/08 Wed 19/11/08 Mon 24/11/08 Mon 8/12/08 Mon 24/11/08 Mon 8/12/08 Wed 17/12/08 Tue 9/12/08 Fri 12/12/08 Wed 17/12/08 Wed 17/12/08 Mon 22/12/08 Mon 22/12/08 Fri 19/12/08 Mon 29/12/08 Mon 29/12/08 LATE START Mon 1/09/08 Mon 1/09/08 Mon 1/09/08 Mon 8/09/08 Mon 15/09/08 Mon 15/09/08 Mon 29/09/08 Mon 13/10/08 Mon 20/10/08 Mon 3/11/08 Mon 3/11/08 Tue 4/11/08 Tue 11/11/08 Tue 18/11/08 Wed 19/11/08 Fri 21/11/08 Thu 20/11/08 Thu 20/11/08 Tue 25/11/08 Tue 9/12/08 Tue 9/12/08 Wed 10/12/08 Mon 15/12/08 Mon 15/12/08 Thu 18/12/08 Thu 18/12/08 Fri 19/12/08 Tue 23/12/08 Tue 23/12/08 LATE FINISH Mon 29/12/08 Fri 12/09/08 Fri 5/09/08 Fri 12/09/08 Fri 31/10/08 Fri 26/09/08 Fri 10/10/08 Fri 17/10/08 Fri 31/10/08 Mon 24/11/08 Mon 3/11/08 Mon 17/11/08 Mon 17/11/08 Tue 18/11/08 Wed 19/11/08 Mon 24/11/08 Mon 8/12/08 Mon 24/11/08 Mon 8/12/08 Wed 17/12/08 Tue 9/12/08 Fri 12/12/08 Wed 17/12/08 Wed 17/12/08 Mon 22/12/08 Mon 22/12/08 Mon 22/12/08 Mon 29/12/08 Mon 29/12/08 FREE SLACK 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 1d 0d 0d TOTAL SLACK 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 0d 1d 0d 0d

TASK NAME HRM System Performance Requirements Determine Function Requirements Proposal Criteria Research / Identify 5 Systems Research Prospective Systems/Software Provider Meetings Review Actual v Ideal Test / Trial Systems Provider Selection Submit Proposal Requests Review Proposals + Return Time Second Provider Meetings Project Sponsor Meeting Decision Inform Providers of Decision System Development Provider & IT Dept Meeting System Development System Implementation Integration Payroll Integration Data Transfer Data Input System Testing Functionality Reporting Training End Users

14.5
CATEGORY

PROJECT COST ESTIMATES

COST TYPE
Direct - labour Overhead Costs - salaries General & Admin Direct - labour Overhead Costs - salaries General & Admin Direct - labour Overhead Costs - salaries General & Admin Direct - System / Software - Licensing - labour Overhead Costs - salaries General & Admin Direct - labour Overhead Costs - salaries General & Admin Direct - labour Overhead Costs - salaries General & Admin Direct - labour Overhead Costs - salaries General & Admin

HOURS
80

PEOPLE

COST

Performance Requirements

$1,600.00 $150.00

Research System

280 2 $5,600.00 $2,625.00

Select Provider

160 3 $3,200.00 $525.00 $20,000.00 $1,000.00 10 1 $300.00 $75.00

System Purchase

System Development

104 3 $2,080.00 $150.00

System Implementation

80 3 $1,600.00 $750.00

System Testing & Training

80 5 $1,600.00 $375.00

TOTAL COSTS FOR PROJECT

$40,630.00

14.6

QUALITY ASSURANCE FORM

RESULT / COMMENTS ACTIONS SIGNED

QUALITY ASSURANCE CRITERIA

14.7
ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

MONITORING & EVALUATION FORM

COMPLETION DATE APPROVED BY COSTS PROBLEMS OR ISSUES

TASK NAME 1 HRM SYSTEM 1.1 Performance Requirements 1.1.1 Determine Function Requirements 1.1.2 Proposal Criteria 1.2 Research / Identify 5 Systems 1.2.1 Research Prospective Systems 1.2.2 Provider Meetings 1.2.3 Review Actual v Ideal 1.2.4 Test / Trial Systems 1.3 Provider Selection 1.3.1 Submit Proposal Requests 1.3.2 Review Proposals 1.3.3 Second Provider Meetings 1.3.4 Project Sponsor Meeting 1.3.5 Decision 1.3.6 Inform Providers of Decision 1.4 System Development 1.4.1 Provider & IT Dept Meeting 1.4.2 System Development 1.5 System Implementation 1.5.1 Implementation 1.5.2 Payroll Integration 1.5.3 Data Transfer 1.5.4 Data Input 1.6 System Testing 1.6.1 Functionality 1.6.2 Reporting 1.7 Training 1.7.1 End Users

14.8

PROJECT CLOSURE FORM

Yes No

What the project successful? Reasons

WHAT TASKS ARE REQUIRED TO CLOSE THE PROJECT? Task 1 Task 2 Task 3 Task 4

PERSON RESPONSIBLE

START DATE

END DATE

TOTAL COST OF PROJECT Did the project come under budget? Reasons

$ Yes No

14.9

RISK MANAGEMENT FORM

RISK ASSESSMENT RISK RESPONSE RISK CONTROLS

RISKS IDENTIFIED

14.10 CONTINGENCY PLAN FORM

IDENTIFIED RISK RESPONSE TO RISK PLAN OF ACTION TRIGGER PERSON RESPONSIBLE

14.11 RISK SEVERITY MATRIX

Major Risk

Moderate Risk
Li ke lih oo d
Minor Risk

Impact