REVIEW QUESTION CHAPTER 5

5.3 What is human capital management? What are the major components of a human capital management information system? What are examples of metrics used to quantify human capital? How are these metrics used?

Human capital management (HCM) is the comprehensive set of practices for recruiting, managing, developing and optimizing the human resources of an organization. The major components is

1.    Work Force management -The broader term human capital management reflects the fact that traditional human resources management systems have grown into larger software systems that support other employee-related functions.

2.    Talent management -Talent management applications focus on the employee life cycle, beginning with recruitment and extending into performance evaluations, career development, compensation planning, e-learning, and succession planning after retirement or departure.

3.     Service delivery applications - Employee and managerial self-service, typically web-based, for entering data and retrieving reports.

4.    Social Networking and HCM systems often add social networking software, and organizations are finding innovative ways to use it.

 Human Capital Metrics

1.     Turnover - The percentage of workers who left and were replaced during a time period  Turnover costs  The total of termination costs, hiring costs, training costs, and other costs related to replacing a worker

2.      Cost per hire  - Average advertising costs + agency fees + recruiter’s salary and benefi ts + relocation expenses for new employees

3.      Human capital return on investment  - The return on investment produced by the organization’s expenditures on salaries, benefits, bonuses, and other costs for human talent

4.      Employee satisfaction - Measures of job satisfaction, usually assessed through employee surveys or exit interviews.

Human resource managers can use these metrics to assess the impact of their strategies on the company’s success, often in terms of real dollars. They can also compare their own figures to industry benchmarks.

5.6 Why are ERP systems important to organizations? What are the typical components of an ERP system? What is meant by the term “a suite of suites”? What are three approaches to ERP integration? What are some of the issues associated with an ERP implementation? What is the success rate for ERP implementation? What is the primary benefit of a successful ERP implementation?

The reasons why are ERP systems important,

1.     More saved money

2.     Improved Collaboration

3.     Better Analytics

4.     Improved productivity

5.     Happier customers

6.     Simplified compliance and risk management

7.     Improved inventory monitoring

8.     Improved production planning and resource management

Below, Enterprise resource planning (ERP) systems typically.

·       Financials:  General ledger, Cash management, Accounts payable, Accounts receivable, Asset management, Scheduling.

·       Human Capital Management: Human resources, Payroll, Benefits, Professional development, Time and attendance, Talent development.

·       Customer Relationship Management: Marketing campaigns, Sales force support, Customer service and support, E-commerce, Sales planning and forecasting, Lead management.

·       Manufacturing: Production management, Workflow management, Quality control, Process control, Scheduling

·       Supply Chain Management: Supply chain planning, Order entry, Purchasing, Logistics, Transportation, Inventory and warehouse management

·       Product Life Cycle Management: R&D support, Project management, Product data management, Engineering change management.

Integration Approach,

1.     The engineered suite - Built from the ground up with consistent user interfaces, integrated backend database, and a single architectural foundation.

2.     Suite with synchronized modules - Vendor provides middleware to connect and synchronize systems that may be running on different platforms.

3.     Best of breed suites - Separate systems, deployed because they each match user requirements closely, but integration is weak and architectural foundations can be very different.

Issues Asociated,

1.     ERPS and Software as a Services (SaaS), The drive to lower implementation costs is pushing vendors toward offering ERPs as software-as-a-service (SaaS) products, in which companies pay subscription fees to access the vendor’s software in the cloud, via the web. Small and medium businesses with limited IT budgets are especially interested in this model because they can usually get up and running more quickly, and they don’t need their own data center.

2.     preparing for major changes, The engineered suite, in particular, can be most difficult to implement because it isn’t easy to launch the tightly integrated modules one at a time. To a large extent, the ERP software requires people throughout the organization to change the way they handle processes, so extensive training before going live is the essential key to success. In principle, the ERP’s way of dealing with any particular process embodies best practices, but the organization’s old way of doing things might be quite different.

Some studies report failure rates as high as 51%. So, the success rates as under as 49% . Finger-pointing about what or who is responsible for such dismal success rates and runaway costs is rampant. Even when an organization successfully launches an ERP, the expected benefits and reduced operating costs may be disappointing.

source:

https://searchhrsoftware.techtarget.com/definition/human-capital-management-HCM And Walace Introduction to Information System book

Name: Anastasya Syanne Titahena

NIM: 01082180022

Major: Informatics