Prentice Hall, 2005: Enterprise Resource Planning, 1

st
Edition by Mary Sumner
7-1
Enterprise Resource Planning, 1
st

Edition by Mary Sumner
Chapter 7:
ERP Systems: Human Resources

Prentice Hall, 2005: Enterprise Resource Planning, 1
st
Edition by Mary Sumner
7-2
Objectives
Examine the HR processes supported
by ERP
Understand the interrelationships
among business processes supporting
human resource management

Prentice Hall, 2005: Enterprise Resource Planning, 1
st
Edition by Mary Sumner
7-3
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, 1
st
Edition by Mary Sumner
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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, 1
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Edition by Mary Sumner
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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, 1
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Edition by Mary Sumner
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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
Prentice Hall, 2005: Enterprise Resource Planning, 1
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Edition by Mary Sumner
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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, 1
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Edition by Mary Sumner
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Prentice Hall, 2005: Enterprise Resource Planning, 1
st
Edition by Mary Sumner
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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, 1
st
Edition by Mary Sumner
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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, 1
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Edition by Mary Sumner
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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, 1
st
Edition by Mary Sumner
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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, 1
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Edition by Mary Sumner
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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