Human resources management is a very important part in the activity of any business, regardless its size or its field of activity. Unless the work force is managed properly, the entire business might go down. Profitability goes hand in hand with efficient business processes and a hectic management of the human resources will result in chaos in what concerns the well being and the efficiency of that business. This is why ERP software usually incorporates a human resources module and this is also the case with SAP, which comes with SAP HR Module, where HR stands for human resources. There is a lot of information about the employees that needs to be managed and there are many things that need to be kept under control. Information about a company’s employees also needs to be integrated with other business processes.
SAP HR module is going to allow you to attract work force towards the company and to keep it there. It makes possible retrieving any information about human resources in the blink of an eye. This way the mangers can instantly find out data about job profiles and job responsibilities. There is a clear difference between task, job, position and person and this helps managing information a lot.
The recruitment process is also simplified a lot by using the SAP HR module because the structure of the company, the openings and the uncovered needs in what concerns work force are more visible. Employment history and personal data of the employees are available with just a few clicks. Besides this, the SAP HR module also helps in evaluating the employees’ performance and in determining their income. Salaries, bonuses, sick pay or vacation allowances, as well as travel pay and other material benefits are being kept under control and changes can be made with easiness and can be also made known to all interested parties.
SAP HR module comes with time management tools which enable managing payrolls, bonuses, overtime, sick leave and vacations. Travel management is also of high importance, especially in multi location companies. It is also beneficial for big sales team. SAP HR module simplifies dealing with travel information, the approval of travel requests and other details like reservations and payment for those on business trip. The training and development module enables the management to anticipate the employees’ need for training and to encourage career development. This module also helps in replacing employees in key positions easier.
Why learn SAP? SAP is one of the world’s largest software organisations and developer of the one of the most trusted and widely implemented business software systems. Over one hundred thousand (100,000) businesses worldwide use the software suite to manage their daily business transactions and activities. Even in today’s tough economic climate there is a shortage of skilled SAP consultants and finance staff in most countries. In some countries the shortage is critical and companies will advertise overseas for staff. So if you have any basic financial knowledge, have worked with the SAP software in your job or are a consultant for a competitor’s system you may want to consider learning SAP to further your career prospects. SAP staff and consultants find work more easily than people experienced with other products. Simply check the job vacancies in your city to confirm that there are plenty of employment opportunities for persons with SAP skills. And people with SAP skills are the highest paid in the industry.
If you are willing to travel, especially overseas, the opportunities are virtually endless. As SAP is a large and complex system, most trained consultants only work with one or two modules. The system is too large for one person to know everything. Also, SAP continuously updates their software with new releases which means that existing consultants and staff have to update their knowledge. So this means there is plenty of scope for people to learn and specialise in a particular module whether financial (FI), controlling (CO), human resource management (HR), materials management (MM), sales and distribution (SD), project system (PS) or business intelligence (BI) How to learn SAP? Many people think learning SAP will be a very difficult, time-consuming and expensive exercise. But it doesn’t have to be. SAP education is easy. If you attend formal SAP training courses you will spend a lot of money. Your time and efforts are much better spent learning from a home study course where you learn at your own pace. Also there are plenty of online forums to ask questions and read the questions and answers of others. The easiest SAP module to learn is FICO. There are actually two modules, the Finance module and Controlling module, which are joined together.
If you are not familiar with SAP the FICO module is the heart of the system and is implemented in every organization that uses the software. If you are going to learn SAP we recommend you start with the finance (fi) module first as the foundation to your SAP education. The other modules can be learned later when required. The easiest and least expensive way to learn SAP software is to purchase an online SAP training course with manuals and work through the software in your own time. You can purchase training manuals to teach yourself and then train other system users. Make sure the training course has step by step illustrated instructions to guide you through each function. When you are training others this makes your job so much easier. Also you can customise the manuals to the companies requirements rather than try to “re-invent the wheel” and create new procedure manuals.
A competitive management of Human Resource Department always begins with a competitive recruitment process. Recruitment and selection process is defined as the organization’s ability to source employees to improve the quality of its human capital using recruitment software. The main agent for the process is the human resource management (HRM) team. The main goals of these processes include hiring the best candidates from the job market and maintaining the competitive advantage of the organization. The HRM team should have the capacity to manage large volumes of resumes. This means that the recruitment process requires a large human resource budget. The HR recruiters must utilize the company’s recruitment sources and the managers should make the right and immediate decisions during the hiring process. The quality of the process serves as the main driver for manager’s satisfaction and will have a say at the bottom line of the company.
Recruitment software is one of the essential elements in the process
The recruitment process requires strong effective recruitment software solution which can be obtained from external sources and can be internally executed. Several software vendors offer a variety of software but the company must carefully opt for the software that meet the needs of the company. Recruitment software and Web 2.0 technologies along with the standard procedures can help reduce the cost and time spent for candidate selection. The ideal software solution for the recruitment process must include the complete database for the applicants, communication between the company and applicants, and the corporate design. The software solution can help simplify the entire process. Since the pre-selection process is systematic and automated, HR managers can focus their time on interviews and in candidate selection. The recruiting tools to be used must be selected based on the target audience.
Assessment of job-related qualifications and interview method in the selection process
Upon the receipt of all the resumes of the applicants, the human resource manager should review them to evaluate the basic qualifications. A candidate who does not have the required qualifications should not be considered. Job-related qualifications should not be limited to knowledge, abilities, experience, and preferred education as identified in the job description. Other qualifications such as physical and mental demands should be bona fide occupational requirements. If in case no candidate has qualified for the position and the qualifications have been modified, the currently vacant position should be re-posted. The HR manager must have consistency in the interview process, should provide equal treatment for applicants, and must avoid asking discriminatory questions. Those applicants with disabilities must be given proper accommodation upon request during the testing and interviewing process.
The HRM must score and evaluate the approved test results of applicants and should be used as one of the selection factors. The files should be kept along with other selection and application documents for three years after the date of the previous action for the position.
Implementing change does not come easy in any organisation – no matter how small the process is. Even if it is for the benefit of the business, there is a natural mental rejection to all the humans included in the process. For this implementation of change needs to be a structured approach and handled sensitively for transition from a current state to future state. One example of such a case can be SAP implementation in an organisation where employees have for long worked with traditional process.
A number of management gurus have suggested various theories around change management. One of the earlier among them was unfreeze-change-refreeze theory developed by Kurt Lewin. The unfreeze stage included making employees come out of the set mindset and get ready for the change. After the change is implemented, the refreeze stage will reinstate the changes in employee behaviour.
Among the other popular models of change the Kubler Ross theory and Formula of change by Richard Beckhard are popular.
In an effective change management process all employees will essentially participate because the process of change has impact on the whole organisation as well as on all individuals working there. Human Resource Management has an important role to play in change management. The HR department has to work closely with the employees to keep them involved in the change process, clear their worries and make them believe in the fact that the change will do good to the company and their personal career.
If not handled carefully, change management can go terribly wrong creating unbalance and disturbances in the working processes and thereby affecting the business performance. In case you are planning to bring about any change in your company, you can consult professionals.
Human resource is the sustenance of any growing business, even if you are a sole proprietor; you need to have some helping hands to successfully manage your business. When the need arises, small businesses have to decide between hiring an independent contractor and a full time employee. In today’s business world, one has to consider several points before making a business decisions. Cost saving, quality control, timely delivery, these and many other factors are becoming increasingly important, therefore you must take them into consideration before reaching a final decision, as small decisions like these can eventually make or break your business.
Let’s read about the pros and cons of both employees and independent contractors.
Employees:
Conventional employees have always been the first choice of any business for many reasons. They receive paychecks from employers on monthly basis. Apart from monthly salary, the business owner must provide the required equipments, tools and even training in some cases. Hiring an employee means you’ve got a full time subordinate. In small setups, such employees usually perform more than one duty. You can assign routine tasks according to their qualification and skills, while utilizing your time in more productive work. When it comes to management, it’s easier to manage or control these workers; as you can easily monitor their performance. Because these employees are often solely working for one business (and the job is their primary source of income), they are much more loyal and dedicated to the betterment of the company, as compared to freelancer (it doesn’t mean independent contractor are not loyal with their work). Downside of hiring full time workers includes the time spent in human resource management, while operating costs of business also increases with the growth in staff.
Independent Contractor:
Independent contractors are skilled individuals, ready to work on contractual basis, which means you hire them for a project, giving a timeline and a fixed amount as fee. Nowadays, small businesses are turning towards independent contractors for various reasons. For example, these workers are usually experienced professionals and one doesn’t need to provide any kind of training. They have got their own workplace and equipment and you don’t need to bear overhead expenses. Some companies, having their own workforce, will also offer their services as independent contractors, which mean you can outsource big projects as well. Biggest problem with hiring an independent contractor is that you are not in charge and sometimes the end result is not what you exactly needed.