In this exercise, please read the mini$-$case and answer the questions that follow.

Jordan Jacobs sat at his desk, relieved that he had finally completed the evaluation of HRM in his company Scranton, Incorporated, but concerned about his next moves. He had conducted an analytic approach review and discovered several issues with HRM that suggested there was room for improvement. First, he found that more money than necessary was being used on transactional tasks in the HR department, such as payroll and benefits administration. This was extremely frustrating to him, as he and his staff had already spent considerable time and expense in restructuring the staff and finding what they thought was the optimal approach. The evaluation also indicated that the current hierarchical organization of HR$,$ which included the basic subfunctions of HR led by a director who reported to the Chief Human Resource Officer $($CHRO$),$ was not operating effectively. Under this organization, HR employees either focused too much on a particular functional skill $($e$.$g$.,$ recruiting, compensation, training$)$ or too much on a particular business unit $($e$.$g$.,$ marketing, accounting, information technology$).$ Lastly, the evaluation revealed that the performance management system currently in place was of very poor quality. The performance evaluations were inconsistent across the company and rarely provided feedback that was of use to the employees.

Based on the information presented in the case, what should Mr$.$ Jacobs do with the transactional tasks such as payroll and benefits administration?

Multiple Choice

Hire additional staff to take on these activities.

Outsource them since it no longer seems cost$-$effective to keep in$-$house.

Reengineer the transactional process to make it more effective.

Create a service center that focuses on delivering basic services.

Outsource them since other companies are better at these tasks.