Home>News>The Importance of ERP Implementation in HR Management

The Importance of ERP Implementation in HR Management

“A new Information Revolution is well under way. It is not a revolution in technology, machinery, techniques, software or speed. It is a revolution in concepts.”

– Peter Drucker, 1999

 

For every business there are multiple keys to success. One of the most important is your staff. If you manage your employees in the right way, and offer them the information and systems they need to do their jobs, you could see business running smoothly and profits on the rise. This is often easier said than done though, as it can be a real challenge to effectively manage employees. That’s where Enterprise Resource Planning, or more specifically Human Resource modules, can help. HRM has the potential to be one of the key components of overall enterprise strategy and may provide significant competitive advantage opportunities when they are used to create a unique organizational culture that institutionalizes organizational competencies throughout the organization. Human Resource offers a unique contribution to value creation, rarity, imperfect imita-bility, and non-substitutability of a firm’s strategic resources.

 

What is Human Resource module?

ERP, or Enterprise Resource Planning, is a suite of integrated business software applications (often called modules) that allow companies to track and manage data and even automate some business functions, including Human Resources.

Human Resource modules in particular are used to track different people-related functions, such as planning, payroll, administration, development, hiring, and more. Business services, like Standard Operating Procedures, job postings, news, forums, tracking of work hours, and benefits, etc., can all be unified into one module, which makes overall management and decision-making easier. Research has empirically supported the positive relationship between corporate financial performance and HRM function, and managers have also realized that HRM can deliver organizational excellence and competitive advantage for enterprises (Boudreau & Ramstad, 1997; Huselid, 1995; Wright, McMahan, Snell, & Gerhart, 2001). The HRM module was introduced into ERP, forming a highly integrated and efficient resource system with the other function modules of ERP.

 

Benefits of using HR modules

Businesses that have integrated ERP and more specifically HR modules, have been able to benefit in a number of ways. Here are 5:

  1. Automated processes that free up management

A large function of HR, as with many other business processes, is data entry and reporting. If you are trying to develop reports without an integrated ERP system, you probably need to pull data from numerous sources which takes time. This is time that can probably be better spent on more relevant tasks. Overall, an ERP module data, once set up, will be more accessible. This simultaneously makes it easier to enter and pull data together into reports.

  1. Enhanced sharing of information and collaboration

Because HR is a central function of any business, data related to HR needs to eventually be shared with other teams or departments. Without ERP this likely means you will need to ask different people to share their data and then compile it into a useable format.

With ERP for HR, data is stored in a central location, or brought together to a central location, which means that data from different sources can be shared faster and easier. This also ensures that the right data is shared, thus enhancing overall outcomes and making it simpler for other teams to work together.

  1. Management gains a clearer picture of HR

It can be tough to gain a short-term picture of your employee resources, especially when it comes to identifying potential resource shortfalls (e.g., double-booked holidays, employees who are constantly late, etc.) and where improvements can be made. For example, in most modules you can track overtime hours of employees, and receive alerts when overtime is past a certain threshold.

If you spot that one department is consistently banking extended overtime hours, you can move quickly to address this.

  1. Data is kept up-to-date

As we’ve stated above, HR systems usually involve data from various locations. This means that there is always a chance of duplicate or incorrect information. A healthcare ERP module can help ensure that the data is not only correct, but also not duplicated, which can in turn speed up decision-making and enable better decisions to be made.

  1. Reduced licensing expenses

Without ERP, your HR team could need five or more systems in order to keep track of everything. Each of these systems will need to be licensed, which can often be a serious investment on your behalf, not to mention the costs of setting up and maintaining these systems.

Because HR ERP modules offer an integrated solution, you pay for one license to cover all of your needs. This reduces overall expenses while also making it easier to budget and maintain.

 

IMPRO HRM is a unique solution from Communication Progress, which is part of our ERP software package. This module provide the administration of the entire work processes, information and employers in a single platform. IMPRO HRM is suitable with all the organization needs by simplifying the operations according to personnel management, while helping with the strategic objectives for talent recruitment and development.

For more information click the link – https://tekreja.al/product/moduli-hr/

2018-10-02T07:57:01+00:00