Chapter 5

Human Resource in enterprise

system
 Introduction
 A company’s employees are its most valuable
resource, which means that the human resources
(HR) department plays a critical role within an
organization.
 The human resources department is responsible for
many of the activities that a company performs to
attract, hire, reward, train, and, occasionally,
terminate employees.

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 Cont.
 The decisions made in the human resources department
can affect every department in the company.
 Companies are increasingly aware of the importance of
an experienced, well-trained workforce, and many
organizations have begun using the term human capital
management (HCM) to describe the tasks associated
with managing a company’s workforce.

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 Meaning and Definition of Human Resources
Information System
 Human Resources Information System(HRIS ), is a system
that lets you keep track of all your employees and information
about them. It is usually done in a database or, more often, in
a series of inter-related databases.

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 HRIS is required for the following purposes.

1) Planning human resource requirements of organization

2) Employee training & development to increase efficiency
3) Formulation of policies and programs relating to human
resource
The Human Resource Information System (HRIS) is a
software package that provides a complete management system
for human resource activities in small-to-medium-sized
businesses.

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Basic Features of HRIS:
 HRIS includes both standardized and customized reports.
Standard reports feature templates for various
administrative purposes including employee reviews, record
keeping, workers' compensation, employment history, and
absence tracking.

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Cont.
 Customized reports are created that incorporate categories and
information unique to business. Most HRIS applications have
a comprehensive tracking system.
 HRIS tracking capabilities can maintain grievances filed by or
against the employee stemming from discipline, disputes, and
complaints

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Data Management For HRIS
 Only some of the organizations have sufficient policies and
procedures in place to collect the majority of necessary
human resource data. For those not having sufficient
policies and procedures in place, this deficiency limit their
ability to extract, report or analyze performance in areas
where information is not collected and maintained in a
structured format.

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Elements of Data Management:
 Capture refers to movement of data from the instrument or
simulation to the storage mechanism. This often involves
some form of data selection or compression.
 Storage refers to the place and procedure required for
storage of data by the use of automated data vaults and tape
stores.

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 Management refers to indexing and cataloguing the data
and providing methods to organize and move it from site to
site or between programs.
 Analysis refers to processing or fusion and mining the data
to extract the science.
 Visualization refers to presenting the data in a variety of
forms to aid analysis and the dissemination of results.

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Human Resource Management
 The concept of Human Resource Management (HRM)
in the public sector has evolved since the 1980s.
 HRM is now recognized as an important management
tool, as it supports one of the key resources of an
organization.
 Traditionally, managers see the human resources
function as primarily one of administrative processing.

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Cont.
 HRM is now seen as having two dimensions: operational
HRM, which includes basic human resource processing tasks
such as pay, recruitment, leave processing; and strategic
HRM, which involves delivering those services, in a way that
directly supports the implementation of organizational
strategies.

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Managerial Functions
The basic managerial functions include planning, organizing,
directing and controlling different human resource related
activities.
Operative Functions
The following operative functions are entrusted to the Human
Resource Department to perform various works efficiently by
taking proper decisions on the basis of Human Resource
Information System.

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Cont.
1. Staffing & Employment
2. Training & Development
3. Wage & Salary Administration
4. Work Culture & Environment
5. Security & Welfare Activities
6. Employer & Employee Relation

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Cont.
7. Records & Statistics
8. Promotion & Transfer
9. Integration & Separation
10. Retirement
11. Legal Compliance & Government Reporting

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 HUMAN RESOURCES WITH ERP SOFTWARE

 Successfully using a human resources ERP system requires

managing a significant amount of detailed information.
 The SAP ERP Human Resources (HR) module provides tools
for managing an organization’s roles and responsibilities,
definitions, personal employee information, and tasks related
to time management, payroll, travel management, and
employee training.

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 Human Resource Managers are constantly being
asked to retrieve employee information
 Without the proper tools, employee information may
be lost or worse, stolen. As a way to maintain
employee information in a safe and secure method
the Employee Database Manager (EDM) has been
created.

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 maintain employee information
 replace paper files with a digital file cabinet
 notify the user of when Tasks need to be performed
 divide employee data between separate
divisions/locations
 import and export important employee information
 retain all e-mails sent to each employee
 provide a history of wages and benefits

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Cont.
 track vacation days as well as other days - absent
 store Emergency information
 provide a system to store/track notes on an employee
 perform a mass enrollment into group plans
 personalize mailings with a mail merge

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Cont.
 create Benefit Statements;
 schedule tasks to be performed at a later date; and
 provide numerous reports to document everything

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 Outsourcing
 Outsourcing occurs anytime a company decides to
subcontract its business processes or functions to another
company.
 The company (Outsourcer) enters into an outsourcing
arrangement with another firm (Outsourcee) to provide
services under contract for a certain price and period.
 Most IT outsourcing initially occurred in such back-office
functions as technical support, software development, and
maintenance areas.
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 Outsourcing Relationship

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 Benefits of Outsourcing
 Economics- A company can solve all of the problems of
running an application at a lower cost.
 Market Agility- Offers faster time to solutions
 Breadth of Skills- Provides an avenue to access
advanced expertise quickly
 Technical Expertise - Enables a company to provide
access to cutting-edge IT solutions to its employees and
clients

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Cont.
 Multiple Feedback Points - Provides an outside or
external perspective during implementation and
maintenance
 Best Practices - Provides access to best practices in
ERP
 Scalability - Allows companies to scale their service
agreements

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 Benefits of Outsourcing (Cont’d)
 Process-Oriented - Ensures timely delivery of quality
solutions at lower costs
 Solution-centric - Allows companies to work with both
third-party components and custom-developed code to
meet ERP requirements
 Upgrade - worries about upgrades
 Fear of Distraction - Allows employees to focus on their
core competencies

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 Drawbacks of Outsourcing
 Lack of Expertise - An external company may not know or
have the expertise to understand the in-house developed
application.
 Misaligned Expectations - Misunderstandings can often
occur between organizations.
 Culture Clash - Different Cultures (Process and
mannerisms of the outsourcing company may be very
different from that of the organization.)
 Hidden Costs - Surprise or unanticipated charges

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 Drawbacks of Outsourcing
 Loss of Vision - Outsourcing arrangements often result in
a loss of institutional knowledge (e.g., feedback from
clients, problem-solving capability, and new idea
generation).
 Security and Control - Outsourcing requires companies to
share their trade secrets, which can be risky in a
competitive environment. Companies have little control over
employees of outsourcees, especially in global or high-
turnover markets.
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 Offshore Outsourcing
 Off-shoring is when a company selects an outsourcing
partner from another country.
 Offshore partners are often selected from developing
countries to lower the labor costs.
 The latest trends in IT implementations call for off-shoring
critical developmental tasks to improve quality, reduce
costs, and speed delivery.
 Offshore implementers can face barriers of language,
culture, and values, making the ERP implementation more
challenging.
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