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Concepts in Enterprise Resource Planning, 4th edition 6-1
Chapter 6
Human Resources Processes with ERP
At a Glance
Instructor’s Manual Table of Contents
• Overview
• Objectives
• Teaching Tips
• Quick Quizzes
• Class Discussion Topics
• Additional Projects
• Additional Resources
• Key Terms

Lecture Notes
Overview
The responsibilities of a human resources department usually include (but are not limited to)
attracting, selecting, and hiring new employees using information from résumés, references,
and personal interviews. Ensuring that these tasks are accomplished and that valid human
resources-related information is communicated throughout the organization requires a system
that effectively controls the flow of information. In this chapter, students will explore the role
of an integrated information system in human resources.
Objectives
• Explain why the role of the human resources department is critical to the success of a
company
• Describe the key processes managed by human resources departments
• Describe how an integrated information system can support effective human resources
processes
Teaching Tips
Problems with Fitter’s Human Resources Processes
1. Explain that Fitter Snacker has just three employees in its Human Resources
Department, and some problems arise simply because of the large number and variety
of department responsibilities (from hiring and firing to managing health benefits) as
well as the number of people with whom Human Resources interacts. A lack of
integration among all departments often results in inaccurate, out-of-date, and
inconsistent information.
Recruiting Process
1. Explain that a job opening is initially posted internally so that current employees have
the first opportunity to apply for the position. If no current employees are acceptable for
the position, then Fitter posts the position externally.
2. Discuss the problems that can occur throughout Fitter’s recruiting process.
3. Note that although Fitter does not use recruiting agencies or Internet job sites such as
Monster.com to find candidates, it does use several other methods. The company
publishes its job vacancies on the company’s Web site, in local newspapers, and, in the
case of management positions, in national publications.

The Interviewing and Hiring Process
1. Introduce the term short list.
2. Point out that many of Fitter’s problems in the interviewing and hiring process have to
do with information flow and communication. Fitter does not have group appointment
calendar software, which would allow Human Resources staff to easily find a time
when all key personnel would be available to interview a candidate.
3. Explain that Fitter hires a human resources consulting firm to perform drug tests and
conduct background checks to verify that candidates have not falsified any information
and do not have serious criminal records.
Human Resources Duties After Hiring
1. Explain that a human resources department has responsibilities that continue beyond the
hiring and job start of an employee. The human resources department must maintain an
ongoing line of communication with the employee and his or her supervisor to make
sure the employee is performing well.
2. Note that because Fitter does not have an effective information system, it is difficult to
manage performance evaluation data. This makes it more challenging for the Human
Resources Department to identify problems with an employee and take corrective action
(such as job performance counseling or a transfer) before the problems lead to
termination.
3. Explain that employee turnover is strongly tied to job satisfaction and compensation. If
employees have satisfying jobs and are well compensated, they are less likely to leave
the company. Human resources can help maintain a satisfying work environment
through a number of means, such as by holding training programs for supervisors and
managers, conducting periodic employee satisfaction surveys, and gathering data from
employee exit surveys.
Human Resources with ERP Software
1. Point out that a good information system allows human resources staff members to
retrieve relevant employee information in a matter of seconds and to maintain proper
controls so that sensitive information is not compromised and privacy rules are not
violated. An integrated information system is a key component in this process.
2. The SAP ERP Human Resources (HR) module provides tools for managing an
organization’s roles and responsibilities, definitions, personal employee information,
and tasks related to time management, payroll, travel management, and employee
training. Use Figure 6-1 to aid the discussion.

3. SAP ERP provides an Organization and Staffing Plan tool that is used to define a
company’s management structure and the positions within the organizational structure
as a whole. The Organization and Staffing Plan tool also names the person who holds
each position. Use Figure 6-2 to aid the discussion.
4. Introduce the term position. Use Figures 6-3 and 6-4 to aid the discussion.
5. Complete and accurate human resources data simplify a manager’s duties. The
Manager’s Desktop tool within the SAP Human Resources module provides access to
all the human resources data and transactions in one location. Use Figure 6-5 to aid the
discussion.
Teaching
Quick Quiz 1
1. In SAP, a(n) ____ is a general classification of tasks that are routinely performed
together.
Answer: job
2. In SAP, a(n) ____ is an individual employee assignment within the organization.
Answer: position
3. In SAP, a(n) ____ is a unique individual who holds a position and who performs tasks.
Answer: person
4. (True or False) Employee turnover is strongly tied to job satisfaction and compensation.
Answer: True
Advanced SAP ERP Human Resources Features
1. Use this section to present some of the advanced features of the Human Resources
module, including time management, payroll processing, travel management, and
training and development coordination are presented in the following sections.
Time Management
1. Explain that for cost-accounting purposes, it is often important to be able to attribute an
employee’s time to a cost object - such as a cost center (which may be a department or
division), project, or production order - and any time not worked must be attributed to
vacation or leave.
Tip
To learn about human capital management, visit:
http://www.sas.com/solutions/hrmanagement/

Payroll Processing
1. Introduce the terms remuneration elements, statutory and voluntary deductions,
payroll run, and error log.
Travel Management
1. Because airfare, hotel, and rental car costs can vary widely, companies frequently
require employees to make reservations through either a company travel office or a
travel agency that is under contract to the company. The employee must keep receipts
for expenses incurred during the trip in order to complete an expense report and receive
reimbursement. Note that the SAP ERP Travel Management system facilitates this
process by maintaining travel data for each employee.
2. Explain that travel management is getting easier - and mobile - with SAP’s Travel
OnDemand product, which is hosted by SAP and accessed via the Internet.
Training and Development Coordination
1. Point out that without an effective human resources information system, managing the
training, development, and certification needs for a company’s employees can be both
time consuming and prone to error.
2. Introduce the terms requirements, qualifications, and succession planning.
Additional Human Resources Features of SAP ERP
1. Note that human resources staff must keep pace with rapidly changing social,
technological, and legislative developments that affect the corporate world. Because of
this, the SAP Human Resources module has been expanded to include features that
assist managers with human resources tasks that have only recently become important
to corporations.
Mobile Time Management
1. SAP’s Mobile Time Management tool allows employees to use smartphones or other
mobile devices to record their working times, record absences, or enter a leave request.
Management of Family and Medical Leave
1. Point out that the Human Resources module alleviates some of the administrative
burden imposed by the federal Family and Medical Leave Act (FMLA) of 1993.
To learn about payroll runs, visit:
Teaching
Tip http://help.sap.com/saphelp_470/helpdata/en/bb/db0b1a4a3011d189490000e832
3c4f/content.htm

Management of Domestic Partner Benefits
1. Note that the Human Resources module now supports the management of benefits for
domestic partners and their children.
Administration of Long-Term Incentives
1. An outgrowth of the Sarbanes-Oxley Act is that companies must account for the
expected costs that will occur as a result of long-term employee incentives, such as
stock options. Note that the Human Resources module provides more options for
processing long-term incentives.
Personnel Cost Planning
1. Point out that the Personnel Cost Planning tool allows human resources staff to define
and evaluate planning scenarios to generate cost estimates.
Management and Payroll for Global Employees
1. Companies who manage a team of employees around the globe face many complicated
issues, including managing relocation plans, visas and work permits, housing, taxes, and
bonus pay in a variety of countries. Note that SAP ERP has enhanced features to
support the management of these issues.
Management by Objectives
1. Explain that SAP ERP supports the MBO approach through a process that incorporates
performance appraisal. The appraisal results can affect an employee’s compensation,
generating annual pay raises that can be significant, depending on the employee’s
performance
Quick Quiz 2
1. The ____ of an employee’s pay include the base pay, bonuses, gratuities, overtime pay,
sick pay, and vacation allowances the employee has earned during the pay period.
Answer: remuneration elements
2. ____ are paycheck withholdings that include taxes (federal, state, local, Social Security,
and Medicare), company loans, and benefit contributions.
Answer: Statutory and voluntary deductions
3. The process of determining each employee’s pay is called a(n) ____.
Answer: payroll run
4. The term ____ refers to the skills or abilities associated with a position.
Answer: requirements

Class Discussion Topics
1. What are some of the possible causes of payroll run errors?
2. Why are background checks conducted and what type of information is usually red
flagged?
3. Discuss the advantages of SAP’s Travel OnDemand product.
Additional Projects
1. You are an employee of Fitter Snacker and you have just been informed that the
company needs to recruit a manager for the Accounting and Finance department. List
the requirements that you think would be necessary to hold this position.
2. Based on your answer for Question 1, describe the process you would use to recruit the
manager.
Additional Resources
1. Human capital management (HCM):
http://www.sap.com/solutions/business-suite/erp/hcm/index.epx
2. Succession planning:
http://help.sap.com/saphelp_46c/helpdata/en/cd/dae43e4ab011d18a0f0000e816ae6e/con
tent.htm
3. Generation of Recalculation Differences:
http://help.sap.com/saphelp_470/helpdata/en/e3/fbcd3a44a71b54e10000000a11402f/co
ntent.htm
Key Terms
¾ error log A record of discrepancies that occur during a payroll run.
¾ human capital management (HCM) Another term for human resources that describes
the tasks associated with managing a company’s workforce.
¾ Job In SAP, a general classification of tasks that are routinely performed together.
¾ payroll run The process of determining each employee’s pay.
¾ person In SAP, the unique individual who holds a position.
¾ position In SAP, an individual employee assignment in an organization. Tasks can be
assigned directly to the position, or by assigning jobs to the position.
¾ Qualification A skill or ability associated with a specific employee.

¾ remuneration element Part of an employee’s pay, such as the base pay, bonuses,
gratuities, overtime, sick pay, and vacation allowances the employee has earned during
the pay period.
¾ requirement A skill or ability associated with a position.
¾ short list The top candidates for a position, each of whom will be interviewed.
¾ statutory and voluntary deduction A paycheck withholding, such as taxes (federal,
state, local, Social Security, and Medicare), company loans, and benefit contributions.
¾ succession planning Outlining the strategy for replacing key employees when they
leave the company.
¾ task In SAP, an assigned responsibility related to a specific job.

Exploring the Variety of Random
Documents with Different Content

* * *
Torch Pulls This One
It’s a long road that has no roadhouse.

Our Rural Mail Box
Bridget—Better put on your woolen socks, Bridget, or you will
catch cold in your lungs.
* * *
Andy Gump—A continuous buzzing noise in your ears is not
always a sign of serious mental trouble, or any other illness. It is
probably the first indication that your wife needs a new hat.
* * *
Sweet Marie—You are mistaken, Marie. The Scottish Highlanders
are not members of the Middlesex Regiment.
* * *
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pessimism and, in retrospection, I feel sure you have presented a
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* * *
Queen Liz—Your singing lessons may keep the wolf away from
the door, ’tis true, if the wolf hears you.
* * *
“You can’t pick me up—I’m not of that metal,” said the
piece of glass to the bar magnet.

* * *
Naughty Nellie—Where does your lap go when you stand up?
* * *
Willie Zatso—It is considered bad manners for children to stick
their elbows out when cutting their meat at dinner. You might make
your father cut his mouth.
* * *
A knock-kneed man walked down the street. Said the right knee to the left
knee, “If you let me get around this time I’ll let you get around next time.”
* * *
Warm Stuff
I saw a dog chasing a jackrabbit down the hill and it was so hot
the dog and rabbit were both walking. (Lie down, Fido, you’re all
wet.)
* * *
We Clipped This
“I’ve got that down Pat,” said Mrs. Flanigan, as she gave her son a
dose of castor oil.
* * *
Bob—“You look sweet enough to eat.”
Gert—“I do! Where shall we go?”
* * *

Frank Adams in a recent Cosmopolitan story describes the
modern dance thusly:
“If there wasn’t any music they would be arrested.”
* * *
My head is dizzy,
My eyes are getting sore,
That’s all for this issue,
There ain’t any more.

The Winter Annual
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Drippings from the Fawcett
Girl in Blue Velvet Band
Face on the Barroom Floor
Frankie and Johnnie Blues
Shooting of Dan McGrew
Wedding of the Persian Cat
Ace in the Hole
Booze Fighter’s Dream
Diary of a Divorcee
Fable of the Bull
Highty Tighty Aphrodite
Golightly Highballs
How to Kiss Deliciously
Hunting the Wily Pole Cat
Mohammedan Bull
Our Own Fairy Queen
Tool House on the Farm
The Old Smokehouse
Questions and Answers
Gila Monster Route

Pasture Pot Pourri
Hooch Cure Blues
Dying Hobo
Lasca
Sam’s Girl
Toledo Slim
Evolution
Poppies
After the Raid
The Harpy
The Suicide
Tarnished Goods
Separation
Little Red God
The Ladies
Limber Kicks
Naughty But Nice
To the Girl
Rural Mail Box
Tired Hired Man
Life’s a Funny Proposition After All

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