AN INTRODUCTION TO

ERP-HR
JOURNEY OF ERP:
DATAPROCESSING OF
HR DEPARTMENT
MANUAL BACK END
PROCESS
AUTOMATION OF PROCESSES THROUGH
SOFTWARES
FINANCIAL SOFTWARES
HR SOFTWARES
SALES AND
DISTRIBUTION
SOFTWARES
DATAPROCESSING OF
FINANCE
DEPARTMENT
DATAPROCESSING OF
HR DEPARTMENT
GAP GAP
ERP
INTEGRATION OF
INTERDEPARTMENTAL
DATA
What is ERP?

It is a fully integrated system between various
departments /activities of business of an
organization.

It is a high end solution offered by IT to effectively
tackle the problems of a business.

The ERP solution seeks to streamline and integrate
operation processes and information flows in the
company to synergies the resources of an
organization.

PROJECT METHODOLOGY:
IT PROJECTS SAP PROJECTS
REQUIREMENT ANALYSIS
DESIGN
CODING
TESTING
INSTALLATION AND
MAINTENANCE
AS IS STUDY
TO BE STUDY
BUSINESS BLUEPRINT
REALIZATION
GOLIVE
DEVELOPMENT
TESTING
PRODUCTION
INSTALLATION AND
MAINTENANCE
BUSINESS MODELS IN SAP:
FICO (FINANCE)
SALES AND DISTRIBUTION
HUMAN RESOURCE
PRODUCTION PLANNING
MATERIALS MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
SUPPLY CHAIN MANAGEMENT
ABAP - CODING
BASIS SYSTEM
ADMINISTRATION
HUMAN RESOURCE MODULE
Human resource management is an essential factor
of any successful business.
The various subsystems under HR module are:
Personnel management: (HR master data,
Personnel administration, information systems,
recruitment, travel management, benefits
administration, salary administration)
Organizational management: (Organizational
structure, staffing, schedules, job descriptions,
planning scenarios, personnel cost planning)

HUMAN RESOURCE MODULE
Payroll Accounting: (Gross/net accounting, history function
dialogue capability, multi currency capability, international
solutions)
Time management: (Shift planning, work schedules, time
recording, absence determination)
Personnel development: Career and succession planning,
profile comparisons, qualifications assessments, additional
training determination. Training and event management.)
Benefits Administration: Using the benefits administration
component, we can define eligibility groups and rules based on
a wide range of factors. We can determine the variables, rules
and costs formulas for each benefits plan.



HUMAN RESOURCE MODULE
Salary Administration
This function helps you in simplifying the process of
rewarding your employees.
Administration of salaries is an ongoing process
within your human resource department.
It is particularly important during the review
processes, when your goal is to justify reward good
performance.
The salary administration module assists you in the
salary review process by taking into account standard
salary changes within the company as well as
individual competition exceptions
Training and Event Management
A good HR system will have scheduled seminars,
training courses and business events.
On completion of a training course, appraisal forms
can be automatically issued.
Appraisals can be carried out for instructors,
attendees, business events and training courses.

Objective
Examine the HR processes supported by ERP
Understand the interrelationships among business
processes supporting human resource management
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
Human Resource Problem
Maintaining accurate employee information
Job analysis and design
Applicant selection
Compensation
Benefit administration
Training
Governmental reporting

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

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

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


BUSINESS PROCESSES IN HR:
ORGANIZATION STRUCTURE

RECRUITMENT

PERSONNEL ADMINISTRATION

PERSONNEL DEVELOPMENT

TIME MANAGEMENT

PAYROLL.

ORGANIZATIONAL MANAGEMENT
This module will assist you in maintaining an
accurate picture of your organizations structure, no
matter how fast it changes. In many cases, graphical
environments make it easy to review any moves,
additions, or changes in employee positions.
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
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
HIERARCHIAL STRUCTURES:
COMPANY
BRANCH 1
BRANCH 2
DEPT 1
DEPT 2
ED
SR PROJECT
MGR
PROJECT MGR
PROJECT ENGINEER
INTERN
ED
SR PROJECT
MGR
PROJECT MGR
PROJECT ENGINEER
INTERN
DEPT 1
DEPT 2
ED
SR PROJECT
MGR
PROJECT MGR
PROJECT ENG
INTERN
ED
SR PROJECT
MGR
PROJECT MGR
PROJECT ENG
INTERN
MATRIX STRUCTURE:
MAPPING OF ORGANIZATION STRUCTURE IN ERP-HR:
The entire Organization Structure can be mapped with ERP in three
separate structures:
1. Enterprise Structure

2. Organization Structure

3. Personnel Structure
ENTERPRISE STRUCTURE
Company
Company code
Personnel Area
Personnel Sub area Personnel Sub area





Description:

(a) Company code: The company code is an organizational unit used in
accounting. It is used to structure the business organization from a financial
accounting perspective.

(b) Personnel area: The personnel area is an organizational unit that
represents a specific area of the enterprise and is organized according to
aspects 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 organized
according to certain aspects of personnel, time management and payroll.

ORGANIZATIONAL STRUCTURE


(a) Organizational Unit : Represents a functional
unit 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.,HR
Mgr.etc.

(d) Tasks: The duties and responsibilities handled by a
position i.e. the job description.

(e) Person: Holder of a particular position or job.
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 placing
people 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)


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

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

PERSONNEL MANAGEMENT
Information is no longer owned by specific departments, but is
shared by multiple entities across an organization. This
eliminates duplicate entries reduces the chance for error and
improves data accuracy.

Personnel management includes numerous software
components, which allow you to deal with human resources
tasks more quickly, accurately and efficiently. You can use these
components not only as part of the company wide ERP solution
but also as stand alone systems.

PERSONNEL STRUCTURE

(a) Employee Group:

The employee group allows you to divide your employees into groups
and 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 group
E.g.- Salaried employees,trainees, contract workers

(c) Payroll Area:
A group of employees for whom payroll should be run together, and at
the same time.
E.g.- Monthly, Bi-weekly .

PERSONNEL ADMINISTRATION:
Personnel Administration involves:

Administering employee data (commonly referred to Master Data).
Master data contains all employee data used in HR processing for
example:
1. Employees Organizational Data
2. Personal Data
3. Address
4. Family details
5. Bank details


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 their
four-digit keys .E.g.- IT 0006 stands for Addresses,0008 for
Basic Pay etc.

1. Employees Organizational Data
2. Personal Data
3. Address
4. Family details
5. Bank details
(b) Sub types: These are separate categories of information
within a specific info type. Example : Info type Addresses
enables to save and maintain following subtypes-
1. Home address
2. Mailing address

PERSONNEL DEVELOPMENT
Effective personnel development planning ensures
that the goals of the organization and the goals of
the employee are in harmony. The benefits of such
planning include improvements in employee
performance, employee potential, staff quality,
working climate and employee morale.

PERSONNEL DEVELOPMENT:

This component is used to maximize employees utility within
a company.

A companys personnel development needs are determined
by comparing current or future work requirements with
employees qualifications, preferences and aspirations. The
performance of the employee is also taken into account.

Career and succession planning scenarios might contain
personnel development measures that are geared toward
finding someone to fill a specific post.


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 job
specifications.
Checking the qualifications of an employee for career planning.
Trainings (On the Job, Classroom ) are the most important part of the
Personnel Development to fulfill the Skill gap.

It includes ,employees :
(a) Qualifications/Requirements

(b) Appraisal Systems

(c) Career and Succession Planning


TIME MANAGEMENT

It gives the answers of the following questions -

(a) Which times and working patterns employees
have to work?
A work schedule describes the planned duration of
working time and the working time pattern for a
specific calendar period.

(b) Which weekdays and public holidays employees
have to work?
The public holiday calendar is based on an actual
year and allows to apply working time models to a
specific time period.



TIME MANAGEMENT IN ERP-HR

Time management can be broadly classified
into three segments:

1. Time Management Rule Holidays, Work
Schedules and Planned Working Time.

2. Time Data Recording and Administration
Absences, Attendance (Manual, Swipe Card )
Substitution, Overtime.

3. Time Evaluation Actual Working Time.

PAYROLL:

This component is used to calculate the remuneration
for work done for each employee.

The System calculates the gross and net pay, which
comprises the individual payments and deductions that
are calculated during a payroll period, and are received
by an employee. These payments and deductions are
included in the calculation of the remuneration.



PAYROLL IN ERP HR:

The payroll in India is configured in ERP-HR with the help of :
1. Pay Scale Structure
2. Payroll Organization
3. Wage Types.

Pay Scale Structure:

(a) Pay Scale Type: It is an industry specific,and depends on the collective agreement
between 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.


PAYROLL ORGANIZATION
Period Parameter

Date Modifier

Pay day Rule

Payroll period

Payroll Includes

Wage type model :

(a) Primary wt -These can be entered online.
E.g.- Basic Pay info type (0008)
Additional Payments info type (0015)

(b) Secondary wt -A technical wage type generated by
the system.Always starts with the character (/).
E.g.- /001
SAP HR Reporting:

Efficient Human Resources Management constantly
requires complete, updated information on employees
at the enterprise.

The R/3 Systems Human Resources (HR) component
contains all relevant employee data. With its multitude
of reporting and analysis options, HR helps you
process data quickly. This provides you with the
information you require, and supports your decision-
making processes



Reports in Human Resource :

ERP provides more than 200 Standard reports. They enable to
perform standard reporting simply, without spending time and
money on development. These reports are available in the
following areas of Human Resources Management:

a)Organizational Management
b)Personnel Management
c)Time Management
d)Payroll

These application-specific standard reports are available in the
info systems of individual HR components.





Reporting Tools:

These give easy access to existing reports (HIS) or enable to
create own reports, even if you have no programming skills
(Info set Query, SAP Query).

Various reporting tools are as follows-

(a) Standard reports Inbuilt,provided by the SAP as
standards. Can be used immediately,no developments
required.

(b) HIS - Hierarchies are displayed as graphics,reports are
executed using selected structures or sub structures, that is,
using pre selected sets of objects.

CONTINUED..

(c) Info set Query - The Info set query is a tool within the SAP
environment that you can set as an alternative to component
queries.
Info set query is used in HR to create reports to meet requirements
that are not satisfied by standard reports. By selecting selection
fields and output fields, data stored anywhere within the human
resources system can be accessed.


Employee master data

Human resource module has a centralized database with
integration to multiple components for processing employee
information.
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.

Travel Management
This module helps you in processing the travel expenses
effortlessly, in several currencies and formants.
HR Travel management allows you to process a business trip
from 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 payroll
accounting, accounts payable accounting or by data medium
exchange.
In addition, Travel management provides multiple report
formats.
You can enter receipts in any currency and then print reports in
your native currency.

HR:Relation to other Modules

HR is closely related to all the modules in relation to
the recruitment ,time management etc.

But basically its the employee remuneration transfers
where the finance module help is required..and all
the subsequent configurations are carried out.
ALL THE BEST