Chapter 7 ERP Systems Human Resources Enterprise Resource Planning by plybz18

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									Enterprise Resource Planning
Chapter 7: ERP Systems: Human Resources

Objectives
• Examine the HR processes supported by ERP Understand the interrelationships among business processes supporting human resource management

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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

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Human Resources Problems
• Maintaining accurate employee information Job analysis and design Applicant selection Compensation Benefit administration Training Governmental reporting

• • • • • •

Evolution of HR Systems
• Traditionally relied upon stand-alone systems
– Specialized applications for applicant tracking, compensation, benefits, attendance
• Redundant data

– No link to financial systems

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ERP
– Linked to financial systems – “Best practices”

ERP HR Modules
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Components
HR Management
• • Personnel records Resumes Links employee data to actual benefits Allows selection from group of benefits Paychecks, tax reports, accounting data

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Benefits administration
• •

– – –

Payroll
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Time and labor management Employee/Manager self service
• • • Travel reimbursement Personnel data and benefits changes Training class

HR Modules
• Attributes
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– – –

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
• • •
– – – – –

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

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– – – –

Strategic level controls
Human capital inventory for tracking employees Position control linked to budgeting Labor/management relationships Business intelligence tools for predicting trends

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Module integration is significant benefit

Featured Article: Keep Track of Your Employees
• What are the benefits of automated time and attendance records? What advantages might accrue to employees using these systems?

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Featured Article: Keep Track of Your Employees, continued
• Employees’ attendance, time at work, and skill levels
– – – – Most companies uncertain If tracked, usually manual Records usually neglected Often piece-meal, no end-to-end solution Eliminates manual process
• • • • Time-consuming Error-prone Better analysis More control

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Benefits of automating
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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

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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

Summary
• ERP systems include HR modules that offer records management, benefits administration, and payroll
– Offer integrated operational and strategic level controls – Scalable and very flexible


								
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