The Human Resources components of Enterprise Resource Planning
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The Human Resources components of Enterprise Resource Planning

Advances in modern technology are presenting business owners and managers with unprecedented and exciting possibilities. The Enterprise Resource Planning is software that is making it easy and affordable to get better control of your business. This modern planner of resources has components covering: Human Resource, Manufacture and Distribution, Customer Relationship Management, and Stock Sales and figures.

The human resource is the essence of any organisation. Understanding the main components of the human resource feature of this software is vital for the successful application of this system. What are these components


Having an excellent payroll system is essential for any business. However having the pay slip done manually is painful and time consuming. The ERP system enables the business to streamline payroll management for both the employees and the service partners. This feature of ERP comes with the ability to calculate wages to be paid as well all tax deductions showing the statistics of each calculation and how the system determined the total pay. With this system it is quite easy to also generate reports to tax agencies.

Manage Staff Holidays and absence

With effective EPR software that is well integrated with the HR system the firm can manage and track employee absence or attendance whether for holiday or sick off reasons. This is crucial as it forms a reliable data base necessary in determining an employee?s productivity. The business is able to

Define and supervise, multiple standard as well as non-standard pay periods: semi-monthly, monthly, bi-weekly and weekly.

Define official work days and formal holidays

Support numerous overtime calculation modes: flexible, daily, fixed etc.

Also mange staff details

The system also comes handy in the management of staff details. Once you have recruited your staff their individual details including bio-data (name, date of birth, nationality etc) the contract, payroll number and another details deemed necessary are filled in the system. It is important for the management to understand and respond to the needs of the employees. These details are the primary source of this crucial information about your employees.

Reporting Tools

Efficient human resources management requires regular and complete information on the employees at the firm. ERP system is able to generate reports on crucial aspects such as employee turnover reports, top performance as established through performance appraisals, leave types, level of actual performance versus the expected performance and the like. These reports from the system give your HR module an edge to make well informed decisions that are critical for proper management of your employees.

Recruitment and ERP

Finding new talent is usually a challenge for many organisations. By providing a precise summary of current personnel and staffing needs by department and the budget allocations to personnel, an ERP system comes in handy when the organisation seeks to establish its recruitment needs.

If your HR module of the ERP system has a library detailing job descriptions, the managers who need to fill vacancies can easily retrieve this information and if necessary, edit it as necessary. The information can then be availed to the career section of your firm?s web site for access by prospective employees. The ERP system can also assist the hiring managers to review the applicants and weed out those who fall short of the requisite qualifications.

The ERP system for human resource component is a vital tool for any business organisation that seeks to enhance its operational efficiency. It has benefits that cut across the entire spectrum human resource management in the organisation

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