Assignment – Activity: Schedule and Budgeting Exercise for Project Scenario


Assignment – Activity: Schedule and Budgeting Exercise for Project Scenario
Overview
It is now important to consider how to manage project obstacles and risks. Being able to continue the progression of a project is important in the face of unpredictable conditions in the internal and external environment of an organization.
Instructions
Write a one-page paper in which you:
Outline the process you would use to move to a centralized structure.
Go back to Organizing HR Projects, and consider the goal of the project.
Conduct research on centralized and decentralized organizations and come up with three tasks that you would need to move to a centralized structure.
Consider methods for assigning costs to tasks and come up with the process (not the actual budget) that you would use to determine a budget.
Write a one-page paper outlining the process you would use.
Create a WBS for the project and analyze each task using the Project Budget WBS Template [XLSX] which is attached.
Review, as needed, the following sites regarding cost estimation:
The Ultimate Guide to Project Cost Estimating. https://www.smartsheet.com/ultimate-guide-project-cost-estimating
Cost Estimation for Projects: How to Estimate Accurately. https://www.projectmanager.com/blog/cost-estimation-for-projects
EXTRA HELP WITH ASSIGNMENT
Think of 3 important things you need to do as you prepare a project to move from decentralized HR operations to a centralized approach to HR. Consider people and resources. Here are some suggested areas you might consider
People – what people issues do you need to consider and have specific actions for – perhaps it’s a “people inventory” where you obtain a list of all your HR folks in all the locations, you need to know their talent etc as you have to make one central team going forward
Places – where is your centralized HR going to be set up? How will you determine that (do you rent or own places, what is the cost for employees and the company, etc)
Policies – do you have different HR policies at different locations? Do you have ONE HR system currently in use or do you need to consolidate HR systems?
The second requirement is to complete an initial budget estimate for the 3 tasks you identify in the first requirement. My suggestion to you – KEEP IT SIMPLE! I am not going to badger you on whether or not your estimate seems financially correct. The purpose of this exercise is to give you an idea on how you could go about developing a project budget. You need someway to determine how much you need the organization to budget for this centralization project. The wbs approach is one way that is a logical approach to developing a budget.
So each of your 3 tasks can be identified and labeled as Level 1 category. Let’s use the example of obtaining all HR employee information – that is my level 1 task.
My level 2 tasks may be using employees to contact and obtain the information. I’ll need 3 employees at $50 per hour (covers their hourly rate and benefits) and they’ll need 40 hours each to do that. I’ll budget 3 X 40 hours = 120 total hours at $50 for a total of $6,000.
There may/may not be a level 3 task associated with a level 1 task. In this case there is. After the data is collected it must be reviewed and assessments made! This is where I and my deputy HR leader come in. We estimate it is going to take us 10 work days to review all the data and set up a centralized HR staffing plan.
2 X 80 hrs = 160 x $100 (our hourly rate) = 16,000 for the level 3 task for this level 1 task.
Another level 2 task might be – I have 50 HR employees nationwide I need this information on and I’ll estimate 1 hour for them to get the information in and answer any follow up questions.
50 x $50 = $2,500 for another level 2 task.
Try to have at least 1 but no more than 3 tasks for level 2 and level 3.


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