Enterprise Resource Planning, 1 st Edition by Mary Sumner

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

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

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

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

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

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. 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

8. © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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

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

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

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

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 © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner