Enterprise resource planning 1st by mary summer chapter 07

Enterprise Resource Planning, 1 stEdition by Mary Sumner Chapter 7: ERP Systems: Human Resources... • Examine the HR processes supported by ERP • Understand the interrelationships among

Enterprise Resource Planning, 1 st

Edition by Mary Sumner

Chapter 7:

ERP Systems: Human Resources

• Examine the HR processes supported by ERP

• Understand the interrelationships among business

processes supporting human resource management

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

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

• ERP

– Linked to financial systems

– “Best practices”

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

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

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

• Strategic level controls

– Human capital inventory for tracking employees

– Position control linked to budgeting

– Labor/management relationships

– Business intelligence tools for predicting trends

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?

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

• Benefits of automating

– Eliminates manual process

• Time-consuming

• Error-prone

• Better analysis

• More control

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

• ERP systems include HR modules that offer records

management, benefits administration, and payroll

– Offer integrated operational and strategic

level controls – Scalable and very flexible