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Human Capital Human Capital ManagementManagement
Part IIPart II(Modules & Transactions)(Modules & Transactions)
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration
Spring, 2015Spring, 2015
Human Capital ManagementHuman Capital Management
Part II Part II (Transactions) (Transactions)
Concepts & TheoriesConcepts & Theories
Quarles: Flya Kite IntroductionQuarles: Flya Kite Introduction 33
Importance of HCMImportance of HCMHuman resources are one of the most expensive
resources in organizations.
Goal: Hire and assign right people to the right Job at the right time and right cost which is critical to an organization.
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Shift of HCM views Shift of HCM views
PayrollPersonnelHuman ResourcesHuman Capital Management
◦Shift from brute labor force to quality workers get rid of the fishing nets and bring in the lines
◦Transform employees into competitive resources
Human Capital Management (HCM)Human Capital Management (HCM)Human Capital Management (HCM) modules enabling
managers to perform transactions pertaining to the HRM cycle of events.
HR Modules in SAP ERP: 1. Organizational management 2. Personnel management,
3. Payroll4. Time management5. Training and event management, 6. Travel management,7. Manager’s desktop
1. Organizational Management1. Organizational ManagementOrganizational structure including
departments, jobs, positions, and tasks of the company is designed and created to reflect its hierarchies and reporting relationships.
Basis for structuring personnel planning, development processes, and personnel administration.
Work is further defined and described through the process of job analysis.
2. Personnel Management2. Personnel Management
2.1 Personnel administration2.2 Recruitment2.3 Personnel development2.4 Benefits2.5 Compensation management
2.1 Personal Administration2.1 Personal AdministrationFacilitates the management of HR master data, Info
systems, and setting for relational data bases.
HR master data◦ Personnel actions, and Personnel files
Info system◦ Report
Employee Organizational entity (Headcount changes, headcount development, salary
accounting to seniority, assignment to wage level) Age/gender
Setting: Define organizational unit including positions and jobs
2.2 Recruitment2.2 Recruitment
2.2.1 ObjectiveObjective of recruitment is to enable the selection and hiring of
qualified applicants for a vacant position.
2.2.2 Recruitment process:◦ Create a vacant position, ◦ Determine the qualifications required of the position, ◦ advertising the position, ◦ Receive and screening applications,◦ Identify the most qualified applicants for hiring,◦ Reject unqualified applicants, and ◦ Store applicant materials of those not hired but to be considered for
future vacancies.
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Recruitment - HiringRecruitment - Hiring
Hire Profile Match
Vacancy
Applicants
Advertising
Select & Notify
VacancyVacancy
Determine position with vacancies.
Define requirements required of vacant positions that will match with the qualifications of applicants.
AdvertisementAdvertisement
Make advertisements for vacancy◦May be internal or external announcement of a
position.
◦Advertisement is recorded in system, such as cost, applications, medium, and recruitment instrument
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Applicant AdministrationApplicant Administration
1) Receiving applicationsAll applicants must be maintained in the system
maintenance responsibility must be delegated (one or more people)
the status of the applicant will determine the information that is needed
2) Profile MatchingCompares skills (qualification) of the applicant to the
requirements of the positioncan the applicant offer what the company needsis there another vacant position that he/she would have a better
match
3) Upon completion of qualification review and interviews the position must be filled (or closed)
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Applicant AdministrationApplicant Administration
Applicant Administration functions:1) Receiving applications2) Profile matching3) Selection of applicants
• Allows a company to coordinate and monitor all the steps involved in the applicant process
Quarles: Flya Kite IntroductionQuarles: Flya Kite Introduction 1515
HiringHiring
Once qualified applicants have been identified, an offer or contract is extended.
Data transactions for hiring ◦ Make an offer◦ Assign a personnel number to the new employee,◦ transfer applicant data to a master database, where
infotypes such as planned working time, basic pay, bank details are created.
◦ Assure the EEO compliance through HR data transactions.
2.3 Personal Development2.3 Personal Development Make Performance appraisals, career and succession
planning, and career development.
Identify the preferences, potentials, and dislikes of employees for career planning and training and development purposes.
Generate a profile match up of the position’s requirements and the person’s qualifications
Appraise employee performance on a periodic basis for◦ employee development and◦ administrative purposes (to determine promotions, merit
increases, etc.).
2.4 Benefits2.4 BenefitsBenefits are crucial to the entire compensation package,
and play a vital role in enabling a company to remain competitive.
Typical benefits transactions include ◦Activate benefits infotypes for employees, ◦Enroll employees in various benefit plans (e.g., health,
flexible spending accounts, 401(k) plans), and◦Review the costs of various employee benefit choices.
2.5 Compensation Management2.5 Compensation ManagementRewarding employees with basic pay, as well as with
incentives, is a typical feature of organizational life.
Common compensation transactions include ◦Enter internal job evaluation results and external
salary survey data, ◦Generate salary structures, ◦Develop pay grades and pay scales, ◦Create budgets, and ◦Develop incentive pay.
3. Payroll3. Payroll
Release payrollStart payroll processCheck payrollCorrectionSimulationFollow upTaxOverpayment recoveryBank transfer
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HCM Process: Payroll AdministrationHCM Process: Payroll Administration
may contain an international payroll driver modified for each country
may release for individual payroll areas◦ payroll run is for a specific group of employees
and a specific period of time ◦upon release all affected personnel records are
lockedgenerate an payroll results, and earning
statement, bank transfers and check payments
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HCM Process: Payroll AdministrationHCM Process: Payroll AdministrationPayroll Process
◦Determine Gross Amount base pay and any other additional payment
◦overtime, sick pay, Christmas bonuses, special pay
◦Determine Deductions (Net Amount) processes garnishments, deductions, taxes, and
benefits for employees◦Federal/State Income Tax, Insurance (Health, Life),
Loans
◦Integration with Financial Accounting & Controlling G/L postings, payments processed, reports
available
4. Time Management4. Time Management
2525
Shift planningAdministration
Time dataTime evaluationWork schedule
Incentive wagesTime sheet
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Time ManagementTime Managementsupports planning,
recording, and evaluation of internal employee time data
time data that would be gathered and evaluated◦ hours worked◦ leave◦ illness◦ overtime◦ substitutions◦ business trips
conference, training
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 2727
Time ManagementTime ManagementThere are multiple methods for data collection:
Time TerminalsTime Terminals
Mobile TechnologyMobile Technology
Cross Applications Time SheetCross Applications Time SheetEmployee Self ServiceEmployee Self Service
Time Time AdministratorsAdministratorsTime Manager’s Time Manager’s
WorkplaceWorkplace
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Time ManagementTime ManagementTime collection will be used for:
◦payroll accounting◦personnel cost analysis◦internal cost allocations◦invoicing◦performance analysis◦capacity availability◦shift planning
5. Training and Event Management5. Training and Event Management
It involves the management of employee activities associated with training, workshop attendance, and other business-related events.
Information on descriptions of programs, prerequisites, and cost factors can be generated.
6. Travel Management6. Travel Management
It enables organizations to monitor the controllable expense associated with travel, training, and entertainment.
Employees frequently travel on business, so managing this expense is essential
7. Manager’s Desktop7. Manager’s Desktop
A tool which enables managers to access employee information at a manager’s fingertips.
Through decentralization of HR tasks and responsibilities, managers can easily access HR data of subordinates, both directly and indirectly supervised, to perform administrative and organizational tasks, and to make strategic decisions
January 2008January 2008
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Business Process IntegrationBusiness Process Integration
HCM
HCM
HCM
HCM
Org
Dat
a
Rules
Master D
ata
HCM Implementation in SAPHCM Implementation in SAP1. Recruitment, Selection & Hiring Process
1.1 Recruitment 1.2 Advertising 1.3 Applicant administration 1.4 Assign hired employee to position
2. Training & Development2.1 Personnel Development2.2 Appraisal Systems2.3 Career and Succession Planning
2.4 Qualifications/Requirements2.5 Development Plans2.6 Training & event management2.7 Cost & Planning Reporting
3636
1.4 Assign Hired Employee to Position1.4 Assign Hired Employee to Position
International Aspects of HCM (SAP ECC 6.0)International Aspects of HCM (SAP ECC 6.0)
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2. 2. Training & DevelopmentTraining & Development
Personnel Development
Development Plan
Appraisals
Qualifications/
Requirements
Career & Succession Planning
Training
develop
based upon
generate
de
term
ine
creates
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2.1 Personnel Development2.1 Personnel Development
Compare current or future work requirements with employees’ qualifications, preferences, and aspirations.
Personnel Development comprises of the following components:◦ Qualifications/Requirements◦ Appraisal Systems◦ Career and Succession Planning◦ Development Plans
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2.2 Appraisal Systems2.2 Appraisal SystemsAppraisal system used in
1) Personnel Administration◦as an instrument to evaluate members of your
organization in a planned, formalized and standardized manner
2) TEMs (Training & Event Management)◦training appraisals◦attendance appraisals
3) Compensation Management◦appraisal results can be used to influence remuneration
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2.3 Career and Succession Planning2.3 Career and Succession Planning1) Career Planning
A planning functionality that allows you to analyze an employees skills, preferences, dislikes, qualifications, potential and determine positions they should hold during their tenure at the company
2) Succession Planning It allows you plan for positions in the company that
will need to be filled because of turnover (or new position)
It enables a company to analyze employees and determine and prepare potential replacements
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2.4 Qualifications/Requirements2.4 Qualifications/Requirements
◦It is used to define, structure, and manage your qualifications catalog
◦Catalog enables you to place requirements on positions and qualifications on employees (or applicants) within the company Perform profile match-ups (people and positions) Run reports to recognize qualification deficits and
enact training measures
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2.5 Development Plans2.5 Development Plans◦Consist of a series of development measures and
information on the sequence in which they should be passed through and time requirements to provide an individual with a specific qualification
Generic Plans◦training program (all prospective sales reps must
complete a course on Fundamental Selling Techniques)
Individual Plans◦comprised of all the items that a person has completed, is
currently involved in, or will be involved in the future◦proposes needed course work (integration with TEMs)
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2.6 Training & Event Management2.6 Training & Event ManagementIt involves the management of employee activities
associated with training, workshop attendance, and other business-related events.
1) Enables new hires and current employees access to the necessary resources to build job skills needed for both current and future task assignments
• this is figured through Qualifications/Requirements reports, development plans, career planning, etc
2) Encourages continual learning and professional development
• SAP offers a resource to assist in scheduling training - TEMs
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Integration Points of TEMSIntegration Points of TEMS
TEMS
SDMM
COFI
HCMPersonnelDevelopment
PersonnelAdministration
OrganizationalAdministration
TimeManagement
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2.6 Training and Event Management2.6 Training and Event Management Component that enables
a company to manage, track, and plan various different business events
Helps determine demand for courses and schedule dates, manage the resources, attendees, and costs associates with the event
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2.7 Cost & Planning Reporting2.7 Cost & Planning Reporting
Used to analyze, monitor, plan a company’s personnel costs, wages, salaries, and employer contributionscost plans are generated by developing and
comparing multiple cost scenarios, these scenarios might be actual or projected
Exercises: Exercises: (Due date 3/20/2015)(Due date 3/20/2015)
11: Hiring applicant12: Proof hiring13: Maintain qualification profile14: Execute career planning15: Create an event16: Book the even17: Follow up the event18: Execute career planning19: Prepare appraisal20: Perform appraisal21: Transfer of employee