7/31/2019 HR-ERP

1/18

7-1

Enterprise Resource Planning

ERP Systems: Human Resources

7/31/2019 HR-ERP

2/18

7-2

Objectives

Examine the HR processes supported

by ERP

Understand the interrelationshipsamong business processes supporting

human resource management

7/31/2019 HR-ERP

3/18

7-3

Case: Atlantic Manufacturing

Recruitment, training, and retention of sales

force is difficult

HR records inadequate

HR paperwork and compliance requirements

increase steadily

Management of compensation packages

difficult Needs to create a strategy for controlling the

cost of various employee benefits

7/31/2019 HR-ERP

4/18

7-4

Human Resources Problems

Maintaining accurate employee

information

Job analysis and design Applicant selection

Compensation

Benefit administration

Training

Governmental reporting

7/31/2019 HR-ERP

5/18

7-5

Evolution of HR Systems

Traditionally relied upon stand-alonesystems

Specialized applications for applicanttracking, compensation, benefits,attendance Redundant data

No link to financial systems

ERP

Linked to financial systems

Best practices

7/31/2019 HR-ERP

6/18

7-6

ERP HR Modules

Components HR Management

Personnel records

Resumes

Benefits administration Links employee data to actual benefits

Allows selection from group of benefits

Payroll

Paychecks, tax reports, accounting data

Time and labor management Employee/Manager self service

Travel reimbursement

Personnel data and benefits changes

Training class

7/31/2019 HR-ERP

7/187-7

HR Modules

Attributes Integration

Common database

Provide audit trails Scalable and flexible

Drill-down capability

Workflow management for electronic routing of

documents and other document management Process standardization

Security

User friendly and web-accessible

7/31/2019 HR-ERP

8/187-8

7/31/2019 HR-ERP

9/187-9

Management Control Modules

HR information enables management of diverse workforce

Supports managerial decision making through query andreporting tools

Operational level controls Maintain and update employee files

Job analysis files

Design files

Regulatory files

Skills inventory files

Strategic level controls

Human capital inventory for tracking employees Position control linked to budgeting

Labor/management relationships

Business intelligence tools for predicting trends

Module integration is significant benefit

7/31/2019 HR-ERP

10/187-10

Featured Article: Keep Track of

Your Employees

What are the benefits of automated

time and attendance records?

What advantages might accrue toemployees using these systems?

7/31/2019 HR-ERP

11/187-11

Featured Article: Keep Track of

Your Employees, continued

Employees attendance, time at work, andskill levels

Most companies uncertain

If tracked, usually manual

Records usually neglected

Often piece-meal, no end-to-end solution

Benefits of automating Eliminates manual process

Time-consuming Error-prone

Better analysis

More control

7/31/2019 HR-ERP

12/187-12

Featured Article: Keep Track of

Your Employees, continued

Banner Health Selected Kronos Inc. software

Time- and labor-management

Accessible from web, phone, badge terminals

Information available in real-time Allows for quick staffing adjustments

Financial benefits to employees, company

Smurfit-Stone Container Corp Uses Workbrain Inc.s ERM3, SAP financial

applications, and PeopleSoft payroll processing Web-based employee-relationship management

software Optimized scheduling and tracking of employees

Interfaces with PeopleSoft applications

7/31/2019 HR-ERP

13/18

7-13

Summary

ERP systems include HR modules that

offer records management, benefits

administration, and payroll Offer integrated operational and strategiclevel controls

Scalable and very flexible

7/31/2019 HR-ERP

14/18

7/31/2019 HR-ERP

15/18

7-15

Human Resources

Recruit, train, evaluate and compensate

employees

Develop personnel plans (staffing) based

on sales

Determine compensationdepends on

labor market

Functional Area Information Systems

7/31/2019 HR-ERP

16/18

7-16

Human Resources

Inputs

Personnel forecasts

Skills data Outputs

Regulation compliance

Employee training and certification Skills database

7/31/2019 HR-ERP

17/18

7-17

HRD & Payroll.

Features Will keep record of each employee like address,

previous job, previous training, physicalinformation,personal data, family, etc.

Attendance detail and history

Salary history & Salary analysis Workers compensation claims and cases

Completed and scheduled training

Job detail and history

Performance reviews

7/31/2019 HR-ERP

18/18

7-18

HRD & Payroll.

Features

Salary

Salary Item

Tax Clause

Loan

Medical Claim Training Schedule

Training Vendor

Training Types

Request Training

Individual Payslip generation PF Statements