07_HR Mgmt
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Transcript of 07_HR Mgmt
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 7-1
Enterprise Resource Planning, 1st Edition by Mary Sumner
Chapter 7:ERP Systems: Human Resources
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 7-2
Objectives
• Examine the HR processes supported by ERP
• Understand the interrelationships among business processes supporting human resource management
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 7-3
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, 1st Edition by Mary Sumner 7-4
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, 1st Edition by Mary Sumner 7-5
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, 1st Edition by Mary Sumner 7-6
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, 1st Edition by Mary Sumner 7-7
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, 1st Edition by Mary Sumner 7-8
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 7-9
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, 1st Edition by Mary Sumner 7-10
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, 1st Edition by Mary Sumner 7-11
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, 1st Edition by Mary Sumner 7-12
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, 1st Edition by Mary Sumner 7-13
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