erp-human resource module

8/3/2019 ERP-Human Resource Module

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Prof. D.G. Jha / Prof. Pratima Dabholkar

7-1

Enterprise Resource Planning

ERP Systems: Human Resources


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7-2

Objectives

Examine the HR processes supported

by ERP

Understand the interrelationshipsamong business processes supporting

human resource management


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What does a companys strategy consist of ?

Company strategies concern,

How to grow the business

How to satisfy customers

How to out compete rivals

How to respond to changing in market conditions

How to manage each functional piece of the business and develop

needed organizational capabilities

How to achieve strategic and financial objectives


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Introduction

Manufacturing Organizations are complex `Systems'where the interactions between the various functionsSales, Distribution, Manufacturing, Materials,Finance, Human Resources, Maintenance have to be

managed towards a common purpose of deliveringthe customers maximum value at the optimum price. However, since most of these organizations have a

`Functional Structure', each function/departmentworks towards their own goals and objectives, ratherthan the organizational goals.

These are the issues addressed by `EnterpriseResource Planning' software solutions providing acommon, consistent system to capture dataorganization wide, with minimum redundancy.


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Whatis ERP?

ERP integrates the information across functions, andprovides a set of tools for planning and monitoringthe various functions and processes and ensuringprogress towards a common purpose

A business management system that integrates allfacets of the business, including planning,manufacturing, sales, and marketing.

ERP helps business managers to implement ERP inbusiness activities such as inventory control, order

tracking, customer service, finance and humanresources


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Human Resources Problems

Maintaining accurate employee

information

Job analysis and design Applicant selection

Compensation

Benefit administration

Training

Governmental reporting


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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


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HR Modules

Attributes Integration

Common database

Provide audit trails Scalable and flexible

Workflow management for electronic routing ofdocuments and other document management

Process standardization Security

User friendly and web-accessible

H R


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Human Resources

ManagementManagement

Managers

Employees

Customers

Government

Process

Payroll

Benefits

Vacation

CompileMerit

Evaluations

& Salary

Changes

Job

Applicants

Produce

Management

Employee

Reports

Screen

Jobs &

Applications

Produce

Government

Reports

Employee Data

Files

EmployeeData

Evaluations

Salary

Merit &

Salary

Sales Data &

Commission

Employee

Data

Merit

ApplicantData

Employee

Summaries

Job &Applicant

Data

EEO

Data

GovernmentReports

Management

Reports


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Human Resource Module -

ERP

Human Resources is another widelyimplemented ERP module.

ERP HR module streamlines the managementof human resources and human capitals.

HR modules routinely maintain a completeemployee database including contactinformation, salary details, attendance,performance evaluation and promotion of all

employees. Advanced HR module is integrated with

knowledge management systems to optimallyutilize the expertise of all employees.


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ERP

ERP HR modules, refers to the systems andprocesses at the intersection between humanresource management (HRM) and informationtechnology.

On the whole, these ERP systems have their originon software that integrates information fromdifferent applications into one universal database.

The linkage of its financial and human resourcemodules through one database is the most

important distinction to the individually andproprietary developed predecessors, which makesthis software application both rigid and flexible.


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ERP The HR management module is a component

covering many other HR aspects from application toretirement.

The system records basic demographic and addressdata, selection, training and development, capabilitiesand skills management, compensation planningrecords and other related activities.

Human resource management function involves therecruitment, placement, evaluation, compensationand development of the employees of anorganization.

Initially, businesses used computer based informationsystem to:

Produce pay checks and payroll reports; Maintain personnel records;

Pursue Talent Management.


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ERP

The most advanced modules provide broadflexibility in data collection methods, labour

distribution capabilities and data analysis

features. Cost analysis and efficiency metrics

are the primary functions. The Benefits Administration module provides a

system for organizations to administer and

track employee participation in benefits

programs. These typically encompass,

insurance, compensation, profit sharing and

retirement.


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15

TRAINING

BENEFITS

PAYROLL

RECRUITING

payroll programs, personnel files, health

plan documents, recruiting, Servers &networks, etc.

Example ERP HR Module

IT resources

HR processes


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Human Resources

Recruiting

Compensation

Assessment Development and Training

Planning


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HUMAN RESOURCE MODULE Human resource management is an essential factor of any

successful business.

The various subsystems under HR module are: Organizational management: (Organizational structure,

staffing, schedules, job descriptions, planning scenarios,personnel cost planning)

Personnel management: (HR master data, Personneladministration, information systems, recruitment, travelmanagement, benefits administration, salary administration)

Payroll Accounting: (Gross/net accounting, history functiondialogue capability, multi currency capability, internationalsolutions)

Time management: (Shift planning, work schedules, timerecording, absence determination)

Personnel development: Career and succession planning,profile comparisons, qualifications assessments, additionaltraining determination. Training and event management.)


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ORGANIZATIONAL MANAGEMENT

This module will assist you in

maintaining an accurate picture of your

organizations structure, no matter howfast it changes. In many cases,

graphical environments make it easy to

review any moves, additions, or

changes in employee positions.

Department and Position Details
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Human Resources with ERP

Software

Concept

20

Figure 6-3 Relationships among positions, jobs, tasks, and persons who fill

positions
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Organization Chart

7-21


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22

Sample Resource Histogram


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PERSONNEL MANAGEMENT

Personnel management includes

numerous software components, which

allow you to deal with human resourcestasks more quickly, accurately and

efficiently. You can use these

components not only as part of thecompany wide ERP solution but also as

stand alone systems.
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i. Personnel Administration

Information is no longer owned by

specific departments, but is shared bymultiple entities across an

organization. This eliminates duplicate

entries reduces the chance for error

and improves data accuracy.

ii Employee master data
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ii. Employee master data Human resource module has a centralized database with integration to

multiple components for processing employee information. The system provides tools to save time and help you tailor the system to

fit your needs.

The HR module contains features for storing any desired informationabout your employees. Most systems have the facility to scan the original documents for optical

Storage. The HR Information system displays graphical information such as

organization charts or employee data.

The system can produce charts and reports-both standard and customerdefined.

iii. Recruitment management This function helps in hiring the right people with the right skills. Reducing the cost of recruiting and hiring new employees is a challenge

for the HR professional, who is responsible for placing people in the right

job, at the right time, and with the right skills and education. These requirements are fulfilled only through effective automation of the

entire recruitment process. The recruitment component is designed to help meet every facet of this

challenge like managing open positions/requisitions, applicantscreening, selection and hiring, correspondence, reporting and cost

analysis.
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iv. Travel Management This module helps you in processing the travel expenses

effortlessly, in several currencies and formants. HR Travel management allows you to process a business trip

from start to finish-from the initial travel request right through toposting in financial accounting and controlling.

This includes any subsequent corrections and all retroactiveaccounting requirements.

Travel management automatically calculates the tax. It automatically processes credit card transactions for a

particular trip. You reimburse costs incurred during a trip through a payrollaccounting, accounts payable accounting.

In addition, Travel management provides multiple reportformats.

You can enter receipts in any currency and then print reports in

your native currency.
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Salary Administration

This function helps you in simplifying the process ofrewarding your employees.

Administration of salaries is an ongoing processwithin your human resource department.

It is particularly important during the reviewprocesses, when your goal is to justify reward good

performance. The salary administration module assists you in the

salary review process.

Using the benefits administration component, wecan define eligibility groups and rules based on awide range of factors. We can determine the

variables, rules and costs formulas for eachbenefits plan.
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HR & Payroll

1. Personnel Information (Qualifications, Experience, details)

2. Employee Profile (Performance Rating, History, Promotions)

3. New Hires

4. Vacation/Holiday/Leave Management

5. Monthly salary based on TLM and Vacation & Leave Management

6. Bonuses

7. Compensations

8. Deductions

Loan

Advances
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Time & Labor

1. Integration With Bio-Metric/Swipe Card Devices

2. Schedules/Shifts of Employees

3. Process Data to Generate Time Card with Overtime

4. Variance Reports
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Benefits Admin

1. Generates reports for the total sums to be paid towards

Bonuses

2. Provident Fund

3. ESI

4. Insurance

5. Professional Tax
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31

Employee

Master
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PAYROLL ACCOUNTING

The payroll accounting system can fulfill the payrollrequirements and provide you with the flexibility torespond to your changing needs.

Payroll accounting should address payroll functions froma global point of view.

You should be able to centralize your payroll processing,or decentralize the data based on country or legal entities.

Most payroll accounting systems give you the options andcapabilities to establish business rules without modifyingthe existing payroll.

Many systems have the features to remind you whentransactions are due for processing.

With payroll accounting, you have the ability to tailor thesystem to your organization requirement.

With country specific versions of payroll accounting, youcan fulfill language, currency and regulatoryrequirements.
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TIME MANAGEMENT

It is a flexible tool designed to handle

complicated evaluation rules to fulfill

regulatory requirements and determine

overtime and other time related data.

The time evaluation component stores

your organizations business rules and

automatically validates hours worked

and wage types.
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Shift Planning

Shift planning module helps you to plan your

workforce requirements quickly and accurately. You can plan your shifts according to your

requirements taking into consideration all criteria,including absences due to leave or sickness, andemployee requests for time off.

Shift planning keeps you informed at all times of anystaff excess or deficit.

Another advantage of shift planning is that it enablesyou to temporarily assign an employee or employees

to another organizational unit where they areneeded, allowing for a temporary change of costcentre.
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PERSONNEL DEVELOPMENT

Effective personnel development planning

ensures that the goals of the organization andthe goals of the employee are in harmony. Thebenefits of such planning includeimprovements in employee performance,employee potential, staff quality, workingclimate and employee morale.

i. Training and Event Management A good HR system will have scheduled

seminars, training courses and business

events. On completion of a training course, appraisal

forms can be automatically issued. Appraisals can be carried out for instructors,

attendees, business events and training
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Financial Accounting Information System (FAIS)

Payroll System

NITIE


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NITIEFinancial Accounting Information System (FAIS)

(PAYROLL-Maintaining Individual Details)

NITIE
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(INCOME TAX)

NITIE


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(INCOME TAX)

NITIE


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(INCOME TAX)

NITIE


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(PF-Maintaining Individual Details)


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NITIE
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(PAYROLL-Payslip in HINDI)

NITIE


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(BUDGET)

NITIE


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(BUDGET)

NITIE


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(BUDGET)

NITIE


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(INCOME-EXPENDITURE)

NITIE


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(RECEIPT-PAYMENT)

NITIE


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(BALANCE SHEET)

NITIE


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(RECEIPT-PAYMENT)

NITIE


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(INCOME-EXPENDITURE)


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SAP HRM

Personnel management

HR master data

Personnel administration

Information systems

Recruitment Travel management

Benefits administration

Salary administration

Organizational

management Organization structure

Staffing schedules

Job descriptions

Planning scenarios

Personnel cost planning

Payroll accounting

Gross/net accounting

History function

Dialog capability

Multi-currency capability International solutions

Time management

Shift planning

Work schedules

Time recording

Absence determination

Error handling
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SAP HRM

Personnel development

Career and succession

planning

Profile comparisons

Qualificationsassessments

Additional training

determination

Training and event

management

Other features

SAP Business workflow

Internet scenarios

Employee self-service

Additional Human Resources
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54

Additional Human Resources

Features of SAP ERP

Mobile time management

Management of family and medical

leave Domestic partner handling

Administration of long-term incentives

Personnel cost planning Management and payroll for global

employees

Management by objectives


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55

Mobile Time Management

Many employees may not have regular

access to a PC

Mobile Time Management allowsemployees to use cellular phones to:

Record their working times

Record absences

Enter a leave request

Check their time charge data

Management of Family and
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56

Management of Family and

Medical Leave

Human Resources module reduces

administrative burden imposed by

Family and Medical Leave Act (FMLA)

of 1993

HR system can:

Determine whether an employee is

eligible to take FMLA absences

Automatically deducts those absences

from the days the employee takes from

allowable leave


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57

Domestic Partner Handling

Human Resources module now

supports the management of benefits

for domestic partners and their children

Provides more flexibility in:

Customizing dependent coverage options

for health plans

Eligibility for enrollment of dependents

Designation of beneficiaries

Administration of Long-Term
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Administration of Long Term

Incentives

Companies must account for expected costs that

occur as a result of long-term incentives such as the

exercising of stock options

Human Resources module now provides moreoptions for processing long-term incentives

Integration with SAP Payroll module

Can calculate taxes accurately when

employees exercise incentives and sell theirshares in the company

SAP can share incentive data with Accounting

Management and Payroll for


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59

Management and Payroll for

Global Employees

Management of global employees

involves many complicated issues

Relocation plans, visas and work permits,

housing, taxes, bonus pay

SAP ERP has enhanced features to

support the management of these

issues Customized functionality for more than 50

countries

M t b Obj ti


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60

Management by Objectives

Management by objectives (MBO)

1954: first outlined by Peter Drucker in The Practice ofManagement

Managers encouraged to focus on results, not activities, and to

negotiate a contract of goals with their subordinates without

dictating the exact methods for achieving them

SAP ERP provides a comprehensive process to support the

MBO approach

Performance appraisals

Appraisal results can affect employees compensation

Managers can include results of achieved objectives in theemployees qualifications profile

S
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Summary Employees are among a companys most important assets

Without qualified and motivated employees, a company cannotsucceed

Human Resources department responsible for:

Ensuring that the company can find, evaluate, hire, develop, evaluate,

and compensate the right employees to achieve the companys goals

Employee training and development, succession planning, andtermination

Managing, sharing, controlling, and evaluating the data

required to manage a companys human capital are simplified

by an integrated information system Additional features of SAP HR systems address todays

changing technology and legislation
http://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdbhttp://var/www/apps/conversion/current/tmp/scratch18799/ERP-HR%20Modules.accdb

erp-human resource module

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