Human Resource Overview- Mba

8/12/2019 Human Resource Overview- Mba

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JOURNEY OFERP:

DATAPROCESSING OFHR DEPARTMENT

MANUAL BACK ENDPROCESS

AUTOMATION OF PROCESSES THROUGH

SOFTWARES

FINANCIAL SOFTWARESHR SOFTWARES

SALES ANDDISTRIBUTIONSOFTWARES

DATAPROCESSING OFFINANCE

DEPARTMENT DATAPROCESSING OFHR DEPARTMENT

GAP GAP

ERP

INTEGRATION OFINTERDEPARTMENTAL

DATA


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What is ERP?

It is a fully integrated system between variousdepartments /activities of business of anorganization.

It is a high end solution offered by IT to effectivelytackle the problems of a business.

The ERP solution seeks to streamline and integrateoperation processes and information flows in thecompany to synergies the resources of anorganization.


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PROJECT METHODOLOGY:

IT PROJECTS SAP PROJECTS

REQUIREMENT ANALYSIS

DESIGN

CODING

TESTING

INSTALLATION ANDMAINTENANCE

AS IS STUDY

TO BE STUDY

BUSINESS BLUEPRINT

REALIZATION

GOLIVE

DEVELOPMENT

TESTING

PRODUCTION

INSTALLATION AND

MAINTENANCE


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BUSINESS MODELS IN SAP:

FICO (FINANCE)

SALES AND DISTRIBUTION

HUMAN RESOURCE

PRODUCTION PLANNING

MATERIALS MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENT

SUPPLY CHAIN MANAGEMENT

ABAP - CODING

BASISSYSTEMADMINISTRATION


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HUMAN RESOURCE MODULE

Human resource management is an essential factorof any successful business.

The various subsystems under HR module are:

Personnel management: (HR master data,Personnel administration, information systems,recruitment, travel management, benefitsadministration, salary administration)

Organizational management: (Organizationalstructure, staffing, schedules, job descriptions,planning scenarios, personnel cost planning)


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Payroll Accounting: (Gross/net accounting, history functiondialogue capability, multi currency capability, internationalsolutions)

Time management: (Shift planning, work schedules, timerecording, absence determination)

Personnel development: Career and succession planning,profile comparisons, qualifications assessments, additionaltraining determination. Training and event management.)

Benefits Administration:Using the benefits administration

component, we can define eligibility groups and rules based ona wide range of factors. We can determine the variables, rulesand costs formulas for each benefits plan.


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Salary Administration This function helps you in simplifying the process of

rewarding your employees.

Administration of salaries is an ongoing processwithin your human resource department.

It is particularly important during the reviewprocesses, when your goal is to justify reward goodperformance.

The salary administration module assists you in thesalary review process by taking into account standardsalary changes within the company as well asindividual competition exceptions


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Training and Event Management

A good HR system will have scheduled seminars,training courses and business events.

On completion of a training course, appraisal formscan be automatically issued.

Appraisals can be carried out for instructors,attendees, business events and training courses.


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Objective Examine the HR processes supported by ERP

Understand the interrelationships among business

processes supporting human resource management


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Case 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 Resource Problem Maintaining accurate employee information

Job analysis and design

Applicant selection

Compensation

Benefit administration

Training Governmental reporting


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Evolution Of HR System 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


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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


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HR Module 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


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BUSINESS PROCESSES IN HR:

ORGANIZATION STRUCTURE

RECRUITMENT

PERSONNEL ADMINISTRATION

PERSONNEL DEVELOPMENT

TIME MANAGEMENT

PAYROLL.


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ORGANIZATIONAL MANAGEMENT

This module will assist you in maintaining anaccurate picture of your organizations structure, nomatter how fast it changes. In many cases, graphical

environments make it easy to review any moves,additions, or changes in employee positions.


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ORGANIZATION STRUCTURE:

An Organization is a physical entity with a vision, mission,objectives and goals.

TYPES OF ORGANIZATIONS:

1. FLAT STRUCTURE.

2.

HIERARCHIAL STRUCTURE

3. MATRIX STRUCTURE


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FLAT ORGANIZATIONS:

MANAGER 1

EXEC 1

EXEC 2

COMPANY

BRANCH 1 HEADED BY A SOLE

PROPRIETOR

DEPARTMENT 1 DEPARTMENT 2

MANAGER 1

EXEC 1

EXEC 2


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HIERARCHIAL STRUCTURES:

COMPANY

BRANCH 1 BRANCH 2

DEPT 1 DEPT 2

ED

SR PROJECTMGR

PROJECT MGR

PROJECT ENGINEER

INTERN

ED

SR PROJECTMGR

PROJECT MGR

PROJECT ENGINEER

INTERN

DEPT 1 DEPT 2

ED

SR PROJECTMGR

PROJECT MGR

PROJECT ENG

INTERN

ED

SR PROJECTMGR

PROJECT MGR

PROJECT ENG

INTERN


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MAPPING OF ORGANIZATION STRUCTURE IN ERP-HR:

The entire Organization Structure can be mapped with ERP in threeseparate structures:

1. Enterprise Structure

2. Organization Structure

3. Personnel Structure


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Description:

(a) Company code: The company code is an organizational unit used inaccounting. It is used to structure the businessorganization from a financial

accounting perspective.

(b) Personnel area: The personnel area is an organizational unit thatrepresents a specific area of the enterprise and is organized according toaspects of personnel, time management and payroll.

(c) Personnel sub area: A personnel sub area is a further subdivision of a

personnel area that represents a specific area of the company organizedaccording to certain aspects of personnel, time management and payroll.


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ORGANIZATIONAL STRUCTURE

(a) Organizational Unit: Represents a functionalunit in an enterprise. E.g.- HR department etc.

(b) Job: Resource for creating positions.E.g.-Manager,Officer,Executive etc.

(c) Position: Specification of a job.E.g.-Sales Mgr.,HRMgr.etc.

(d) Tasks:The duties and responsibilities handled by aposition i.e. the job description.

(e) Person:Holder of a particular position or job.


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Recruitment management

This function helps in hiring the right people with the right skills. Reducing the cost of recruiting and hiring new employees is a

challenge for the HR professional, who is responsible for placingpeople in the right job, at the right time, and with the right skills

and education. These requirements are fulfilled only through effective

automation of the entire recruitment process. The recruitment component is designed to help meet every

facet of this challenge like managing open positions/requisitions,applicant screening, selection and hiring, correspondence,

reporting and cost analysis. Recruitment can be done through Out side (Campus Placement

through Consultant ), Inside (transfer, Promotion)


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RECRUITMENT

1.IDENTIFICATION OF VACANCY.

2. VACANCY CREATION

3. ADVERTISEMENT FOR VACANCY

4. RECEIPT OF APPLICATIONS

5. INITIAL DATA ENTRY.

6. HANDLING CORRESPONDENCES

7. SELECTING THE RIGHT CANDIDATE


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RECRUITMENT IN ERP-HR:

8. TRANSFER OF APPLICANT NUMBER TO PERSONNEL

NO/EMPLOYEE NUMBER.

Recruitment can be done according to business/Job requirement .

Ex. Permanent, Contract, Daily Basis


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PERSONNEL MANAGEMENT

Information is no longer owned by specific departments, but isshared by multiple entities across an organization. Thiseliminates duplicate entries reduces the chance for error and

improves data accuracy.

Personnel management includes numerous softwarecomponents, which allow you to deal with human resourcestasks more quickly, accurately and efficiently. You can use these

components not only as part of the company wide ERP solutionbut also as stand alone systems.


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PERSONNEL STRUCTURE

(a) Employee Group:

The employee group allows you to divide your employees into groupsand allows you to define their relationship to the enterprise

E.g.-Active, Retirees, Terminated ...etc.

(b) Employee Sub Group:

The employee subgroup represents a subdivision of the employee groupE.g.- Salaried employees,trainees, contract workers

(c) Payroll Area:A group of employees for whom payroll should be run together, and atthe same time.E.g.- Monthly, Bi-weekly .


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Personnel Administration in ERP-HR

The Master Data is configured in the DATA STRUCTURES(a) Info types: From a technical perspective, info types are, logical set of data records. These can be identified by theirfour-digit keys .E.g.- IT 0006 stands for Addresses,0008 for

Basic Pay etc.

1. Employees Organizational Data2. Personal Data3. Address4. Family details

5. Bank details(b) Sub types: These are separate categories of informationwithin a specific info type. Example : Info type Addressesenables to save and maintain following subtypes-

1. Home address2. Mailing address


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PERSONNEL DEVELOPMENT

Effective personnel development planning ensuresthat the goals of the organization and the goals ofthe employee are in harmony. The benefits of such

planning include improvements in employeeperformance, employee potential, staff quality,working climate and employee morale.


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PERSONNEL DEVELOPMENT:

This component is used to maximize employees utility withina company.

A companys personnel development needs are determinedby comparing current or future work requirements with

employees qualifications, preferences and aspirations. Theperformance of the employee is also taken into account.

Career and succession planning scenarios might containpersonnel development measures that are geared towardfinding someone to fill a specific post.


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PERSONNEL DEVELOPMENT IN ERP-HR:

Personnel Development in ERP-HR is useful in two ways:

Checking the qualifications of the applicants to map with the jobspecifications.

Checking the qualifications of an employee for career planning.

Trainings (On the Job, Classroom ) are the most important part of thePersonnel Development to fulfill the Skill gap.

It includes ,employees :(a) Qualifications/Requirements

(b) Appraisal Systems

(c) Career and Succession Planning


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TIME MANAGEMENT

It gives the answers of the following questions -

(a) Which times and working patterns employeeshave to work?

A work schedule describes the planned duration ofworking time and the working time pattern for aspecific calendar period.

(b) Which weekdays and public holidays employeeshave to work?The public holiday calendar is based on an actualyear and allows to apply working time models to aspecific time period.


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TIME MANAGEMENT IN ERP-HR

Time management can be broadly classifiedinto three segments:

1. Time Management RuleHolidays, Work

Schedules and Planned Working Time.

2. Time Data Recording and AdministrationAbsences, Attendance (Manual, Swipe Card )Substitution, Overtime.

3. Time EvaluationActual Working Time.


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PAYROLL:

This component is used to calculate the remunerationfor work done for each employee.

The System calculates the gross and net pay, whichcomprises the individual payments and deductions thatare calculated during a payroll period, and are receivedby an employee. These payments and deductions areincluded in the calculation of the remuneration.


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PAYROLL IN ERP HR:

The payroll in India is configured in ERP-HR with the help of :1. Pay Scale Structure2. Payroll Organization3. Wage Types.

Pay Scale Structure:

(a) Pay Scale Type: It is an industry specific,and depends on the collective agreementbetween the company and the employee.

(b)Pay Scale Area: It is geographic location where the employee is located.

(c)Pay Scale Group:It is the criterion used to evaluate employees.

(d)Pay Scale Level: Further sub division of a Pay scale group.


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PAYROLL ORGANIZATION

Period Parameter

Date Modifier

Pay day Rule

Payroll period


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Payroll Includes

Wage type model :

(a) Primary wt -These can be entered online.E.g.- Basic Payinfo type(0008)

Additional Payments info type (0015)

(b) Secondary wt -A technical wage type generated bythe system.Always starts with the character (/).E.g.- /001


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SAP HR Reporting:

Efficient Human Resources Management constantlyrequires complete, updated information on employeesat the enterprise.

The R/3 Systems Human Resources(HR) componentcontains all relevant employee data. With its multitudeof reporting and analysis options, HR helps youprocess data quickly. This provides you with theinformation you require, and supports your decision-

making processes


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Reports in Human Resource :

ERP provides more than 200 Standard reports. They enable toperform standard reporting simply, without spending time andmoney on development. These reports are available in thefollowing areas of Human Resources Management:

a)Organizational Managementb)Personnel Managementc)Time Managementd)Payroll

These application-specific standard reports are available in theinfo systems of individual HR components.


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CONTINUED..

(c) Info set Query- The Info set query is a tool within the SAPenvironment that you can set as an alternative to componentqueries.Info set query is used in HR to create reports to meet requirementsthat are not satisfied by standard reports. By selecting selectionfields and output fields, data stored anywhere within the humanresources system can be accessed.


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Employee master data

Human resource module has a centralized database withintegration to multiple components for processing employeeinformation.

The system provides tools to save time and help you tailor the

system to fit your needs. The HR module contains features for storing any desired

information about your employees. Most systems have the facility to scan the original documents

for optical Storage. The HR Information system displays graphical information such

as organization charts or employee data. The system can produce charts and reports-both standard and

customer defined.


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Travel Management

This module helps you in processing the travel expenseseffortlessly, in several currencies and formants.

HR Travel management allows you to process a business tripfrom start to finish-from the initial travel request right through

to posting in financial accounting and controlling. This includes any subsequent corrections and all retroactive

accounting requirements. Travel management automatically calculates the tax. It automatically processes credit card transactions for a

particular trip.

You reimburse costs incurred during a trip through a payrollaccounting, accounts payable accounting or by data mediumexchange.

In addition, Travel management provides multiple reportformats.

You can enter receipts in any currency and then print reports in

your native currency.


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HR:Relation to other Modules

HRis closely related to all the modules in relation to

the recruitment ,time management etc.

But basically its the employee remuneration transferswhere the finance module help is required..and allthe subsequent configurations are carried out.


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