Implementation of ERP in Human Resource Management

In 1999, Peter Drucker said: “A new Information Revolution is well under way. It is not a revolution in technology, machinery, techniques, software or speed. It is a revolution in concepts.” As a result of information technology (IT) innovation and reorganization, enterprise resource planning (ERP) was proposed by the Gartner Group in the early 1990s. It is a successor to manufacturing resource planning (MRP II) and attempts to unify all departmental systems together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other (Koch, 2002). Over 60% of the U.S Fortune 500 had adopted ERP by 2000 (Kumar, & Hillegersberg, 2000; Siau, 2004), and it was projected that organizations’ total spending on ERP adoptions was an estimated $72.63 billion in 2002 (Al-Marshari, 2002). Many scholars have recognized the importance of people in organizations, and this viewpoint is the central focus of the human resource management (HRM) perspective (Pfeffer, 1995). In this perspective, HRM has the potential to be one of the key components of overall enterprise strategy. Additionally, HRM may provide significant competitive advantage opportunities when they are used to create a unique (i.e., difficult to imitate) organizational culture that institutionalizes organizational competencies throughout the organization (Bowen & Ostroff, 2004). Typically, an ERP system supports HRM, operation and logistics, finance, and sales and marketing functions (Davenport, 1998) (see Figure 1). But the early development stage of ERP in enterprises was all along with the center of production and sales course. Until recently, research has empirically supported the positive relationship between corporate financial performance and HRM function, and managers have also realized that HRM can deliver organizational excellence and competitive advantage for enterprises (Boudreau & Ramstad, 1997; Huselid, 1995; Wright, McMahan, Snell, & Gerhart, 2001). The HRM module was introduced into ERP, forming a highly integrated and efficient resource system with the other function modules of ERP. However, there are still many HRM-related problems that may result in the failure of ERP projects arising. So, there have been regular appeals to scholars for more research about the implementation of ERP systems in the HRM perspective in the last few years (Barrett & Mayson, 2006). This article introduces the functions of an HRM module in ERP systems from the fields of human resource planning, recruitment management, training management, time management, performance management, compensation management, and business trip arrangement. Then it analyzes five HRM-related problems that may block the enterprises from implementing ERP successfully, and it provides reasonable recommendations. Finally, the article discusses future trends and suggests emerging research opportunities within the domain of the topic.

Download Full-text

Implementation of ERP in Human Resource Management

Enterprise Information Systems ◽

10.4018/978-1-61692-852-0.ch409 ◽

2011 ◽

pp. 1021-1029

Author(s):

Zhang Li ◽

Wang Dan ◽

Chang Lei

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Competitive Advantage ◽

Human Resource ◽

Resource Planning ◽

Development Stage ◽

Erp Systems ◽

Compensation Management ◽

Manufacturing Resource Planning ◽

Function Modules

In 1999, Peter Drucker said: “A new Information Revolution is well under way. It is not a revolution in technology, machinery, techniques, software or speed. It is a revolution in concepts.” As a result of information technology (IT) innovation and reorganization, enterprise resource planning (ERP) was proposed by the Gartner Group in the early 1990s. It is a successor to manufacturing resource planning (MRP II) and attempts to unify all departmental systems together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other (Koch, 2002). Over 60% of the U.S Fortune 500 had adopted ERP by 2000 (Kumar, & Hillegersberg, 2000; Siau, 2004), and it was projected that organizations’ total spending on ERP adoptions was an estimated $72.63 billion in 2002 (Al-Marshari, 2002). Many scholars have recognized the importance of people in organizations, and this viewpoint is the central focus of the human resource management (HRM) perspective (Pfeffer, 1995). In this perspective, HRM has the potential to be one of the key components of overall enterprise strategy. Additionally, HRM may provide significant competitive advantage opportunities when they are used to create a unique (i.e., difficult to imitate) organizational culture that institutionalizes organizational competencies throughout the organization (Bowen & Ostroff, 2004). Typically, an ERP system supports HRM, operation and logistics, finance, and sales and marketing functions (Davenport, 1998) (see Figure 1). But the early development stage of ERP in enterprises was all along with the center of production and sales course. Until recently, research has empirically supported the positive relationship between corporate financial performance and HRM function, and managers have also realized that HRM can deliver organizational excellence and competitive advantage for enterprises (Boudreau & Ramstad, 1997; Huselid, 1995; Wright, McMahan, Snell, & Gerhart, 2001). The HRM module was introduced into ERP, forming a highly integrated and efficient resource system with the other function modules of ERP. However, there are still many HRM-related problems that may result in the failure of ERP projects arising. So, there have been regular appeals to scholars for more research about the implementation of ERP systems in the HRM perspective in the last few years (Barrett & Mayson, 2006). This article introduces the functions of an HRM module in ERP systems from the fields of human resource planning, recruitment management, training management, time management, performance management, compensation management, and business trip arrangement. Then it analyzes five HRM-related problems that may block the enterprises from implementing ERP successfully, and it provides reasonable recommendations. Finally, the article discusses future trends and suggests emerging research opportunities within the domain of the topic.

Download Full-text

Mobile Technologies Extending ERP Systems

Handbook of Research in Mobile Business, Second Edition ◽

10.4018/978-1-60566-156-8.ch041 ◽

2009 ◽

pp. 440-444

Author(s):

Dirk Werth ◽

Paul Makuch

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Human Resource ◽

Enterprise Resource Planning ◽

Business Processes ◽

Wide Spectrum ◽

Resource Planning ◽

Mobile Technologies ◽

Erp Systems ◽

Erp Software

Nowadays the majority of enterprises use Enterprise Resource Planning (ERP) software to improve their business processes. Simultaneously, mobile technologies which can be used within ERP have gained further importance. This is because ERP, together with mobile technologies, offers a wide spectrum of synergies and both have a significant impact on enterprise efficiency. The improvement possibilities in ERP due to mobility range from sales activities, over logistic processes, up to effects on the human resource management.

Download Full-text

Mobile Technologies Extending ERP Systems

Enterprise Information Systems ◽

10.4018/978-1-61692-852-0.ch317 ◽

2011 ◽

pp. 817-822

Author(s):

Dirk Werth ◽

Paul Makuch

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Human Resource ◽

Enterprise Resource Planning ◽

Business Processes ◽

Wide Spectrum ◽

Resource Planning ◽

Mobile Technologies ◽

Erp Systems ◽

Erp Software

Nowadays the majority of enterprises use Enterprise Resource Planning (ERP) software to improve their business processes. Simultaneously, mobile technologies which can be used within ERP have gained further importance. This is because ERP, together with mobile technologies, offers a wide spectrum of synergies and both have a significant impact on enterprise efficiency. The improvement possibilities in ERP due to mobility range from sales activities, over logistic processes, up to effects on the human resource management.

Download Full-text

ERP Systems Impact on Organizations

ERP & Data Warehousing in Organizations ◽

10.4018/978-1-93177-749-0.ch001 ◽

2003 ◽

pp. 1-21 ◽

Cited By ~ 3

Author(s):

Jonas Hedman ◽

Andreas Borell

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Human Resource ◽

Organizational Effectiveness ◽

Enterprise Resource Planning ◽

Resource Planning ◽

Competing Values ◽

Erp Systems ◽

Organizational Flexibility ◽

The Impact

Enterprise Resource Planning (ERP) systems are in most cases implemented to improve organizational effectiveness. Current research makes it difficult to conclude how organizations may be affected by implementing ERP systems. This chapter addresses this issue by presenting an artifact evaluation of ERP systems. The evaluation is based on the Competing Values Model (Quinn & Rohrbaugh, 1981; Rohrbaugh, 1981). The evaluation shows that ERP systems support effectiveness criteria, related to internal and rational goals of organizations. The evaluation also points out weaknesses in ERP systems, especially in areas related to human resource management and organizational flexibility. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.

Download Full-text

Enlivening Workplace Climate Through Strategic Human Resource Management Initiatives: Unleashing Its Efficacy

Business Perspectives and Research ◽

10.1177/2278533720983069 ◽

2021 ◽

pp. 227853372098306

Author(s):

Debarun Chakraborty ◽

Wendrila Biswas

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Organizational Climate ◽

Organizational Performance ◽

Human Resource ◽

Management Practices ◽

Resource Planning ◽

Strategic Human Resource Management ◽

Compensation Management ◽

The Impact

The study aims to explore the impact of the strategic human resource management practices on organizational climate and organizational performance. The study used simple random sampling technique, and 387 responses have been collected finally. The primary data have been collected from professionals/managers of different manufacturing units from five divisions of West Bengal, namely Burdwan, Medinipur, Malda, Presidency and Jalpaiguri. Compensation management, employee relation and human resource planning (HRP) have positive and significant impact toward organizational climate where compensation management has greater impact compared to other factors toward organizational climate. Performance management, training and development, and recruitments and selection have negative and nonsignificant impact toward organizational climate. The study implies that proper compensation, good relationship with employees, and proper planning of human resources can improve the organizational climate, which also improves the organizational performance. The study is original as no such research has been conducted in the Indian context earlier.

Download Full-text

Competence Management for Business Integration

Adaptive Technologies and Business Integration ◽

10.4018/978-1-59904-048-6.ch005 ◽

2007 ◽

pp. 104-117

Author(s):

R. Houe

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Human Resource ◽

Enterprise Resource Planning ◽

Manufacturing Process ◽

Resource Planning ◽

Management Model ◽

Erp Systems ◽

Competence Management

Business integration requires that each partner can guarantee not only the quality of its products, but also the qualification and competence of its workforce. Usual models, like those included in the Human Resource Management modules of Enterprise Resource Planning (ERP) systems, are not sufficient in highly constrained domains like aeronautics. We show in this chapter how a generic competence management model has had to be modified and enlarged to satisfy such constraints. On the base of this model, software has been developed that is currently being implemented in three sites belonging to two companies. We shall show how such software may allow, on one hand, to guarantee that only competent people have been involved in the various steps of the manufacturing process, but also to improve the way operational competences are managed in the company.

Download Full-text

PENGELOLAAN MODAL MANUSIA DALAM KAITANNYA DENGAN MANAJEMEN KINERJA

Jurnal Manajemen Bisnis Krisnadwipayana ◽

10.35137/jmbk.v6i1.173 ◽

2018 ◽

Vol 6 (1) ◽

Author(s):

Amanda Setiorini,MM.

Keyword(s):

Human Capital ◽

Resource Management ◽

Human Resource Management ◽

Competitive Advantage ◽

Performance Management ◽

Human Resource ◽

Business Environment ◽

Business Organization

Globalization changes the business environment, which demands change from every business organization involved, to succeed in the new environment. For that purpose, human resource management needs to be directed to the development of human capital, which assumes employees as assets, not costs, for the company. The implication is that management needs to recognize each of its employees in order to maximize their potential and manage it to be a competitive advantage. This is where performance management plays a very important role.

Download Full-text