10 Human Resources Processes With ERP (Lanjutan)

Concepts in Enterprise
Resource Planning
Human Resources Processes with ERP

Advanced SAP ERP Human Resources
Features
• Time management
• Payroll
• Travel management
• Training and development
Time Management
• Hourly employees
• Paid for each hour worked
• Must record time that they work
• Salaried employees
• Not paid based on hours worked
• Their time worked must usually be tracked as well
Time Management (cont’d.)
• SAP ERP system uses Cross Application Time Sheets (CATS) to:
• Record employee working times
• Provide the data to applications including:
• SAP Controlling module
• Monitors and manages costs
• SAP Payroll module
• Calculates employee pay
• Then data transferred to the Financial Accounting module for payroll processing
• SAP Production Planning module
• Determines whether enough labor is available to support production plans
Payroll
• Remuneration elements of an employee’s pay

• Base pay, bonuses, gratuities, overtime, sick pay, and vacation allowances
• Statutory and voluntary deductions
• Taxes ,company loans, and benefit contributions
• Payroll run: process of determining each employee’s pay
• SAP ERP system evaluates input data and notes any discrepancies in error log
• Payroll employees review the error log, make any necessary corrections
• the payroll run is used to generate employee pay statements
Travel Management
• Travel request may originate with employee or employee’s manager

• Travel requests usually require management approval
• Once travel request is approved, travel reservations must be made
Travel Management (cont’d.)
• SAP ERP Travel Management system

• Maintains travel data for each employee, including flight, hotel, and car
preferences
• Integrates travel data with:
• Payroll module
• to administer reimbursements
• Financial Accounting and Controlling modules
• to properly record travel expenses
Training and Development
• In SAP ERP system, employee development is driven by qualifications

and requirements
• Requirements: skills or abilities associated with a position
• Qualifications: skills or abilities associated with a specific employee
• One of the most important reasons for managing the development
and training of employees is succession planning
Training and Development (cont’d.)
• Succession plan outlines strategy for replacing key employees when they leave the
company or move to another position within the company
• Career and Succession Planning components of SAP ERP Human Resources module
• Allow HR professionals to create, implement, and evaluate succession planning scenarios
Additional Human Resources Features of SAP
ERP
• Mobile time management
• SAP’s Mobile Time Management tool allows employees to use smartphones or other mobile devices to record their working times, record
absences, or enter a leave request.
• Slide 29
• Management of family and medical leave

• The Human Resources module imposed by the federal Family and Medical Leave Act
• to determine whether an employee is eligible to take FMLA leave slide 30
• Domestic partner handling

• provide benefits for domestic (unmarried) partners slide 31
• Administration of long-term incentives

• The Human Resources module provides more options for processing long-term incentives .
• Slide 32
• Personnel cost planning

• Changes in an organization (including expansions, acquisitions, and downsizing) can affect employee-related expenses, which are usually a
significant portion of a company’s costs
• Slide 33
• Management and payroll for global employees
• face many complicated issues, including managing Relocation plans, visas and work permits, housing, taxes, bonus pay (Slide 34)
• Management by objectives
• Slide 35-36
Mobile Time Management
• Many employees may not have regular access to a PC

• Mobile Time Management allows employees to use cellular phones
to:
• Record their working times
• Record absences
• Enter a leave request
Management of Family and Medical Leave
• Human Resources module reduces administrative burden imposed by

Family and Medical Leave Act (FMLA) of 1993
• HR system can:
• Determine whether an employee is eligible to take FMLA absences
• Automatically deducts those absences from the days the employee takes
from allowable leave
Domestic Partner Handling
• Human Resources module now supports the management of benefits

for domestic partners and their children
• Provides more flexibility in:
• Customizing dependent coverage options for health plans
• Eligibility for enrollment of dependents
Administration of Long-Term Incentives
• Companies must account for expected costs that occur as a result of

long-term incentives such as the exercising of stock options
• Human Resources module now provides more options for processing
long-term incentives
• Integration with SAP Payroll module
• Can calculate taxes accurately when employees exercise incentives and sell their shares
in the company
• SAP can share incentive data with Accounting
Personnel Cost Planning
• Personnel Cost Planning tool

• Allows HR personnel to define and evaluate planning scenarios to generate
cost estimates
• Performing cost planning and simulation
• Allows HR to forecast cost estimates by integrating data with other SAP ERP
modules
Management and Payroll for Global Employees
• Management of global employees involves many complicated issues

• Relocation plans, visas and work permits, housing, taxes, bonus pay
• SAP ERP has enhanced features to support the management of these
issues
• Customized functionality for more than 50 countries
Management by Objectives
• Management by objectives (MBO)

• 1954: first outlined by Peter Drucker in The Practice of Management
• Managers encouraged to focus on results, not activities, and to “negotiate a
contract of goals” with their subordinates without dictating the exact
methods for achieving them
Management by Objectives (cont’d.)
• SAP ERP provides a comprehensive process to support the MBO

approach
• Performance appraisals
• Appraisal results can affect employee’s compensation
• Managers can include results of achieved objectives in the employee’s
qualifications profile
Summary
• Employees are among a company’s most important assets

• Without qualified and motivated employees, a company cannot succeed
• Human Resources department responsible for:
• Ensuring that the company can find, evaluate, hire, develop, evaluate, and
compensate the right employees to achieve the company’s goals
• Employee training and development, succession planning, and termination
Summary (cont’d.)
• Managing, sharing, controlling, and evaluating the data required to

manage a company’s human capital are simplified by an integrated
information system
• Additional features of SAP HR systems address today’s changing
technology and legislation

10 Human Resources Processes With ERP (Lanjutan)

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Concepts in Enterprise

Human Resources Processes with ERP

• Remuneration elements of an employee’s pay

• Travel request may originate with employee or employee’s manager

• SAP ERP Travel Management system

• In SAP ERP system, employee development is driven by qualifications

• Management of family and medical leave

• Domestic partner handling

• Administration of long-term incentives

• Personnel cost planning

• Many employees may not have regular access to a PC

• Human Resources module reduces administrative burden imposed by

• Human Resources module now supports the management of benefits

• Companies must account for expected costs that occur as a result of

• Personnel Cost Planning tool

• Management of global employees involves many complicated issues

• Management by objectives (MBO)

• SAP ERP provides a comprehensive process to support the MBO

• Employees are among a company’s most important assets

• Managing, sharing, controlling, and evaluating the data required to

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