Question: What can managers embarking on an organizational downsizing do to minimize the impact of the process on the survivors of downsizing?Dawn McWhirter, CHRP , is
What can managers embarking on an organizational downsizing do to minimize the impact of the process on the "survivors" of downsizing?Dawn McWhirter, CHRP is the HR manager at Texas Instruments TI Canada. TI Canada outsourced its payroll function to a national provider but, faced with a large number of transaction errors, Dawn is crunching the numbers to determine whether it makes more sense to have payroll provided by staff internal to Texas Instruments.The current external provider is paid $ annually to prepare biweekly payroll inputschanges additionsterminations ad hoc payments such as commissions and bonuses car allowances, mileage reimbursements, and so on plus payslip printouts, tax remittances, and Ts However, so many errors are made that Dawn has to pay an administrator $ annually to correct mistakes and liaise with the provider. As well, the employees at headquarters in Dallas are also spending time correcting these errors for an additional cost of $ annually. Dawn estimates that she is spending about hours a year overseeing the errors and auditing quarterly reports for a cost of about $To provide these same services internally, Dawn prepared the following estimates: New national provider: $ annually for partial inhouse all biweekly payroll changesadditions would be input onsite using a secure web portal provided by the carrier; the new provider would beresponsible only for printing pay slips, remitting taxes to government agencies, and preparing yearend filings such as T remittances. Administrator: $: Auditing: $Correspondence with Dawn McWhirter, HR Manager, Texas Instruments Canada, October, If you were Dawn, what decision would you make and why? What are the advantages and disadvantages of the decision that you made?
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