Enterprise Resource Planning PDF

Enterprise Resource Planning, 1st Edition by Mary Sumner Chapter 7: ERP Systems: Human Resources © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-1  Objectives Examine the HR processes supported by ERP...

Enterprise Resource Planning, 1st Edition by Mary Sumner Chapter 7: ERP Systems: Human Resources © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-1  Objectives Examine the HR processes supported by ERP Understand the interrelationships among business processes supporting human resource management © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-2  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-3  Human Resources Problems Maintaining accurate employee information Job analysis and design Applicant selection Compensation Benefit administration Training Governmental reporting © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-4  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” © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-5  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-6  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 – User friendly and web-accessible © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-7 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-8 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 Module integration is significant benefit © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-9  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? © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-10  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-11  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-12  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 7-13