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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HUMAN RESOURCE MODULE
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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HUMAN RESOURCE MODULE
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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ALL THE BEST