Supporting Human Resource ERP Systems

8/10/2019 Supporting Human Resource ERP Systems

1/10

Initial Analysis by Tabitha Waweru99YFGIJ. 7-1

Enterprise Resource Planning

INTERCITY HOME SECURITY

ERP Systems: Human Resources


2/10

Prentice Hall, 2005: Enterprise Resource Planning, 1stEdition by Mary Sumner 7-2

Objectives

Understand current challenges with

HR Management.

Examine the HR processes that can besupported by an ERP System

Understand the interrelationships

among business processes supportinghuman resource management


3/10

Initial Analysis by Tabitha Waweru 7-3

Current Problems Recruitment, training, and retention of personnel is difficult due to the

decentralized nature of decision making.

HR records are inadequateMusterolls are not updated on time, andare inaccurate.

HR compliance requirements not centralized e.g. current criminal data

for new employees not easy to tabulate and present

Management of compensation packages difficultworkers names are

changing across the muster roll and payroll making analysis difficult Needs to create a strategy for controlling the cost of various employee

benefits

Employee personal information not accurateworkers are not

reachable, no ID numbers in system etc.

Current systems prone to numerous corruption, and typographical errors

e.g. the muster roll has attendances of nonexistent personnel to the tune

of up to 150 mandays per month.

Reports have to be analyzed manually which is time consuming and

could lead to errors.

Redundant data not available for future reference e.g. workers who left

and appear in other stations


4/10


Current Problems Workers data is not entered in a master format e.g. finance appear to

have a separate worker list where names are not arranged exactly like in

the muster roll, making it hard to correlate the data and link it topayments.

Responsibilities are not definedAttendance should be remotely keyed

in, batched for Operations approval on a daily basis Monthly Musteroll

should only be available for counterchecking and approving, not editing.

Finance system should only pay what HR ERP system has approved.

Explanations where workers have no account numbers should be fed

into the system for HR Follow up.

Inventory of company property is not possible with the current manual

systems e.g. guard uniforms. It would be much more effectively

managed using an ERP System.


5/10


ERP HR Modules

Components HR Management

Personnel recordsattendance, warnings, letters etc

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


6/10


HR Modules Advantages

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


7/10Initial Analysis by Tabitha Waweru 7-7



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



Keeping Track of Employees

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


10/10


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

Supporting Human Resource ERP Systems

Documents

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