SELECT, IMPLEMENT & USE TODAY’S ADVANCED BUSINESS SYSTEMS

1. MODERN ERP SELECT, IMPLEMENT & USE TODAY’S ADVANCED BUSINESS SYSTEMS Second Edition Chapter 9: Human Capital Management, Self-Service and Outsourcing

2. Human Capital Management • Human Capital Management (HCM)– methods and strategies embraced to optimize the value of human capital, or the set of skills that employees acquire in their jobs through training and experience which increase their value in the marketplace • Used by the Human Resources Department to facilitate a coherent and strategic approach to the way a firm manages and supports the people that both empower the organizations and burden the organization • Reasons to implement HCM: • People Matter • HR activities are data intensive • HR data is extremely sensitive • HR data is valuable to the rest of the organization • Recruit-to-retire process – management of all aspects of an employee’s relationship, or life cycle collectively

3. Human Capital Management Modules • Personnel Management Module (PM) • Most legal and financial responsibilities of the whole organization • Captures employee master data • Personnel manager responsibilities: • Staffing– screening and interviewing applicants, with an eye to placing individuals with the right skill sets into the right position within the company • Overseeing the creation of entry-level training programs as well as continuing education opportunities for existing employees • Determining company policies and procedures as they relate to personnel • Benefits Administration Module • Involves management of benefits for qualified employees • Administer and track employee participation in benefits programs including: health and life insurance plans, flexible spending plans, 401(k) plans, profit sharing plans, stock plans, retirement plans, and leave plans

4. Human Capital Management Modules • Time and Labor Management Module • Allows workers to submit timecard data online and supervisors to review and approve time online • Helps control costs and time worked, consolidate timecard information, prepare information relevant for the payroll process, and support forecasting of labor requirements and utilization based on forecast demands • Compensation Module • Automates accounting and preparation of payroll checks for employees, including salaries and wages and benefit deductions • Manages direct deposits, which help minimize security risks associated with issuing paper checks

5. Human Capital Management Modules • Recruitment Management Module(RM) • Helps convert job candidates into favorable results by supporting the steps along the way that ensure an organization finds the right candidate including: • Communicating career opportunities to broad, qualified applicant pools • Streamlining application methods for job seekers • Evaluating an applicant’s suitability as an employee • Matching applicants with job descriptions • Onboarding • Talent Management (TM) • Analyze personnel usage within an organization and help retain good employees • Aligning each employee’s contribution with organizational needs • Building a talent database, succession planning • Optimizing employee contribution

6. Human Capital Management Modules • Employee Performance Management (EPM) • Streamlines employee appraisals from goal planning and coaching to performance assessments and rewards

7. Human Capital Management Modules • Learning Management (LM) • Administering employee learning, thereby managing talent and increasing intellectual capital in the organization • Includes: employee training profiles, courses, instructors, on-line scheduling, and course/teacher evaluations • Environment, Health, and Safety (EHS) • Provides the necessary tools to administer compliance and manage risks associated with health and safety regulations that arise from local, state, and federal agencies • Help overcome the inherent problems of disparate systems, regions, and business units

8. Employee Self-Service • Employee Self-Service (ESS) • Addresses and minimizes non value-adding activities by allowing employees and managers to enter and update their own employee records and instigate documents and procedures related to them • Accessed via the corporate Intranet • Advantages of ESS: • Improved service for and communication with employees • Streamline administrative processes and reduced costs for HR • Employee sense of ownership of their personal information and a renewed sense of trust in their employer • Error reduction • More timely updates

9. Manager Self-Service • Manager Self-Service (MSS) • Empowers managers to make departmental decisions that align with strategic business objectives in areas such as compensation, staffing, budgeting, and cost management

10. Employee and Manager Self-Service • Travel management– automates the planned trip-to-payment process • Reduces travel costs, centralizes travel planning, and incorporates corporate travel policies • Includes submitting travel requests, online booking, and submitting and settling travel expenses

11. Outsourcing Human Capital Management Activities • Companies choose to outsource HR related functions such as compensation because of the intricacies of keeping up with various country, state, city, and local taxes • Service organizations take on the responsibility for activities such as time and attendance, payroll, payroll tax deposits, GL interface and 401(k) administration • Outsourcing non-core functions allows companies to focus exclusively on their core business, while recognizing significant savings and increased expertise

12. Outsourcing Human Capital Management Activities