ERP Systems: Human Resources

Management

By
Neeldana Bakshi
2K151003
MBA-II
Subject: Enterprise Resource Planning
 Objectives

 Examine the HR processes supported by

ERP
 Understand the interrelationships among
business processes supporting human
resource management
 Human Resources Problems
A no of problems are affecting the quality and
responsiveness of the HR function such as:
 Maintaining accurate employee information
 Job analysis and design
 Applicant selection and placement
 Compensation
 Benefit administration
 Training
 Governmental reporting
 Evolution of HR Systems

 Traditionally relied upon stand-alone

systems
I. Specialized applications for applicant
tracking, compensation, benefits, attendance
 Redundant data
II. No link to financial systems
 ERP
I. Linked to financial systems
II. “Best practices”
 ERP HR module
 Ensures the smooth management of human resources department of
an organization or enterprise.
 ERP system in HR Department of an enterprise efficiently monitors
all the happening in the department including recruiting, training,
payroll, benefits, retirement, separation and diversity management.
 HR module of ERP solution integrates the systems and processes at
the intersection between human resources management (HRM) and
information technology.
 ERP module in the system will certainly help automate the
processes go smoothly
 ERP HR Modules
 Components
1. HR Management
Personnel records
Resumes
2. Benefits administration
Links employee data to actual benefits
Allows selection from group of benefits
3. Payroll
Paychecks, tax reports, accounting data
4. Time and labor management
5. Employee/Manager self service
Travel reimbursement
Personnel data and benefits changes
Training class
Human Resource Decisions supported by ERP Systems
Attributes of Human Resource Modules in
ERP systems
◦ 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
 Management Control Modules in ERP
systems
 HR information enables management of diverse workforce
 Supports managerial decision making through query and reporting
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
 Benefits of using HR modules

 Automated processes that free up management

 Enhanced sharing of information and
collaboration
 Management gains a clearer picture of HR
 Data is kept up-to-date
 Reduced licensing expenses
 Case study on Coca-Cola Enterprises
 CCE structured and scheduled the process of implementing a
company-wide ERP.
 The solution approaches by CCE in order to utilize the HR module
of ERP are as follows:
1. Integration of existing systems by ERP.
2. Retiree benefits
3. Employee relationship
4. Functionality
5. Employee database
 By these solutions the HR executives could achieve and fulfilled
HR goals.
 However, the planned technology investment, ERP delivered and
supported the company's objectives and also provided a
significant ROI (Return on Investment).
 Conclusion
 ERP systems include HR modules that offer records
management, benefits administration, and payroll
Offer integrated operational and strategic level
controls
Scalable and very flexible
 ERP is represented as a useful tool to help and make
the users easier and focus their work in a direct
relation with staff, skills and aspiration of an
individual related to the objectives and the goal of the
company.
 ERP systems have the possibility either to
confine or expand the organization's capabilities
and lead a pathway to competitiveness.