Comparative study of human resource management system software being used in industry

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Comparative study of human resource management system software being used

in industry

Sanjay Kumar Rai¹, Manik Chandra Panday² Tapas Kumar Biswas³, Amit Asthana⁴

1Director IT MFI Document Solution Ltd.

2Assistant Professor, Department of CSE/IT, SITE, SVSU, MEERUT

3M.Tech Scholar (CSE) Department of CSE/IT SITE, SVSU, MEERUT

4Associate Professor, Department of CSE/IT, SITE, SVSU, MEERUT

Abstract

Today is the era of globalisation in all the fields and verticals, be it Agriculture, Manufacturing, Retail or Service sector. The stiif competitive globalised environment has cropped up lot of geopolitical and economic uncertainities. The Global is now more customer centric shifting the focus from product to customer. They now prefer to respond to customers more efficiently so as to provide the timed value added products and services because that has the major base for competitive advantage. Now the businesses want to increase revenue and profitability, while decreasing costs, optimizing resource utilization and tightening corporate governance. The buzz words Just in Time, Six Sigma and Lean are now more frequent in corporate dynamics. For this adaptation of an efficient ERP systems to support the various business prospects has become necessary as IT has become the enabler for survival, innovation and growth and is the key driving factor for organization’s competitiveness.

So there is the need for detail study of Enterprise Resource Planning software provided by different vendors across the globe and incorporate the

system in developing countries like India to facilities there economy by having a tool which provides utilities like monitoring, control, reevaluating powers to one of the most costlier resource; Human.

1. As indicated and practiced by SAP (Systems Application and Products) Human Resource Management, which has universal applicability with a degree of confidence in various large scale manufacturing and business activity.

2. And Human Resource Management package as developed and implemented In-house like IFFCO (Indian Farmer Fertilizer

Cooperation Limited), which is one of the global player in fertilizer production and distribution in India And Human Resource Management package as developed and implemented In-house like IFFCO (Indian Farmer Fertilizer Cooperation Limited), which is one of the global player in fertilizer production and distribution in India.

Keywords: ERP Development, SAP Management, HRMS, IFFCO, ONGC, S/W Development

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I.

Introduction

Enterprise Resource planning is a concept with a global acceptability and covering all sectors of economy including Manufacturing, Agriculture and service sectors. It is consider as a potential concept for integration of Human Resource Management, Financial Management, Sales, Purchase, Inventory and Manufacturing be it industry dealing with Manufacturing, Teaching Institutions including university dealing with teaching and research, Agriculture sector dealing with agriculture and related activities, Service sector dealing with government etc. It is also well established that all the four components- Human Resource Management, Sales, Purchase and Inventory as well as area of activity are involved everywhere. In the real system, all the four exists together and not in isolation. The key area out of four involve in management is Human Resource Management.

Human Resource, are the most precious resource of any organization and forms its

backbone. There is always a team of highly dedicated workforce, committed to its goal that makes any organization successful. It is end goal of all economic activities together with prime mover. Proper Manpower planning, their future growth, development needs and fulfillment of day-to day requirement are vital for the prosperity and health of any organization. Most successful organization has devised ways to keep their human resource highly satisfied and makes them participative in crucial matter related to the organization. Computerized systems are being used to this effect in a big way.

II.

Motivation

The importance of Human Resource Management is exponentially growing because of globalization which require

cross culture interest to promote motivation and subsequently productivity

considered to be two potential factors for global competitiveness for productivity, cost and quality. For all the three Human Resource is most important contributing

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14 factor. The concept of Enterprise Resource Planning was introduce much earlier, However it received impertinent only when networking become reality, subsequently with cost and time required for implementation, varying from 18-24 months, The Enterprise Resource Planning did receive a setback but with growing realization of its importance as integrating tool of finance, Human Resource, Sales, Purchase, Inventory. Its importance again received global acceptability especially since 2000; its importance is growing in the global market.

The above table clearly indicates that SAP is No.1 as per revenue is concern. But India is a growing economy, it is not possible for all the organization especially medium size and small size, which are very large in number in India as well as other developing countries in the world, it is not possible to adapt SAP, in their area of operation. With

globalization based on networking, the development of small scale and medium scale industry are also growing. The concept of Enterprise Resource Planning is yet to take a shape in government, agriculture and universities even with reservoir of talents available with them. Obviously, one way to propagate the application of Enterprise Resource Planning software in developing countries is to have in-house development of software and for this purpose Indian Farmers Fertilizer Cooperative Limited (IFFCO), which is a global player in Fertilizer manufacturing and distribution has taken initiative to develop their own software.

Obviously , when the software is develop in- house, it is possible to have total integration, scale-up ,scale-down as the need arises, modification specially to intensify distribution network, a special requirement for globalization.

2004 Company Revenue Revenue Revenue Revenue Revenue Revenue

Name 2003 2004 2005 Share Share Share

Revenue Forecast 2003 2004 2005

Rank Forecast

1 SAP 7994 9372 10403 39% 40% 43%

2 PeopleSoft 2682 2880 0 13% 12% 0%

3 Oracle* 2470 2465 4534 12% 10% 10%

4 Sage Group 900 1243 1375 4% 5% 6%

5 Microsoft 683 775 891 3% 3% 4%

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Solution

*Oracle Acquired PeopleSoft on December 28,

2004 Source: AMR Research, 2005

Table 1.1: ERP vendors ranked by 2004 ERP revenue

III.

Major Reasons for ERP There are three major reasons why companies undertake ERP:

· To integrate financial, Human resource management, inventory, sales, purchase and manufacturing data.

· To standardize manufacturing processes and other activities.

· To standardize Human Resource (HR) information.

The importance of Human Resource Management is exponentially growing because of globalization which require cross culture interest to promote motivation and subsequently productivity considered to be two potential factors for global competitiveness for productivity, cost and quality. For all the three Human Resource is most important contributing factor.

IV.

Human Resource Management System

The key supporting element in the

management of organization is Human Resource Management (HRM) function.

HRM is the only responsible factor ensuring that the right people are available at the right place and at the right time to execute corporate plans with the highest level of quality i.e. manpower planning. But manpower planning is only a part of not whole HRM however manpower planning is core of HRM supported by other aspects of HRM.

Human Resource Management system presents integrated picture of all supporting the planning and control of personnel activities. It provides a powerful tool for monitoring, integrating, control and reevaluating human resource. It includes various activities related with employee like:

Recruitment, Training, Benefits and

Compensation etc. HRMS has both tangible and intangible benefits. Some tangible benefit areas include:

· HR productivity improvements

· Employee and manager productivity improvements

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· Overhead and outsourced service fee avoidance

· Compliance and error reduction

· Improve employee retention

· Strategic business impact

Intangible benefits are most difficult to quantify, but hold an important place. Some of the intangible benefits

· Brand advantage

· Strategic advantage

· Competitive advantage

· Intellectual capital

· Organizational advantage

V.

Proposed Framework

Above both of framework is suitable for analyzing Human process contribution in achieving organizational goal. But for comparing software, technological view is also important. In this thesis, for comparing human resource software a framework is being proposed.

Proposed Framework

Benefits &Quality attribute

Technology

Architecture, Database, Security etc.

Human process

Organizational Structure

It is also four tier model which include:

1. Organizational Structure: Type of organization, size of organization etc.

2. Human Process: Human resource modules implemented like employee selection,training etc.

3. Technology: Architecture, Database, Security etc

Benefits & Quality attribute:

User-friendly, performance, reliability etc.

VI.

Architecture

SAP R/3 is based on a three tier client/server technology. It is made up of three functionally distinct layers namely:

The presentation layer. It provides a graphical user interface (GUI) that is connected with the application servers through a local (LAN) or a wide-area network (WAN).

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Fig 3.1: SAP R/3 Architecture

Presentation 1 Presentation 2 Presentation 3

Application 1 Application 2

Database Server

The application layer. It comprises the business administration and responsible for processing of pre-defined and user-defined application programs (such as OLTP and the implementation of decision support queries).

The database layer.Implemented on top of a commercial database product that stores all data of the system.

VII.

Scope For Further

Development

There is always a scope for improvement in every field of work, so here also these comparisons can further be enhanced in different view by different persons for different applications. The model program can further developed according to the need and resources of specific organization.

VIII.

Conclusion

· Human Resource Management

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18 (HRM) global vendors provide software whose implementation takes approximately 20-24 months, this time period is too large for a technology gap. And, after implementing such a costlier system (in millions) in such a long time, organization normally don’t dare to switch to new technologies.

For example, technologies which were very popular in 2000 became outdated after 2004.As in the case of ONGC; they implemented SAP R/3 in 2000, which is outdated in recent time. It will take again long time to switch to a new technology or updated the SAP system. Where as in IFFCO they can easily switch for new technologies as requirement and design are same.

IX.

REFERENCES

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