Read the below and answer the questions that follow: The cost benefit analysis is the first step in seeking initial approval from senior management for an HRIS project. One must understand why the analysis is being conducted and accepting the expectations of what is going to be done once the result are in and how this will influence the judgements made by both cost benefit analysis (CBA) and the entire HRIS project team during the analysis and increase the value of the results produced. The CBA is the comparison between project costs and benefits associated with an HRIS investment, which is presented as the comparison of cost and benefit or presented as a cost benefit ratio. The core of the CBA is the analysis of change in the cost benefit ratio. Cost, is the outlay of cash required for the initial purchase, implementation or ongoing maintenance of the investment. Benefit, is any financial gain resulting from the investment that occur at any time during the investments useful life.

QUESTION 1

(25 Marks)

1.1 Provide the guidelines to be followed when conducting a cost benefit analysis.(14)

1.2 The justification of HRIS investment strategies fall into two categories.

Describe these two categories and provide examples. (5)

1.3 Explain the three basic pieces of information that the CBA is based on. (3)

1.4 What are the common misconceptions of CBA? (3)

QUESTION 2

Implementation costs are divided into two types of cost. Name and describe these costs. (5 Marks)