ERP systems and human resource management (HR)

An ERP system is a system that helps with managing the organisation, such as the accounting system, production system, purchasing system, sales system, warehouse system — and the HR system as well.

In the area of human resource management, the ERP system helps manage the organisation’s human resources.

The ERP system helps store employee data, payroll, leave, and information related to human resource management comprehensively.

The various functions related to the HR system are as follows:

1. Managing employee data

The ERP system records general employee data, such as name, address, contact information, and other related data such as position and start date.

2. Payroll management

The ERP system manages payroll data, including payroll calculation, deductions, and salary transfers.

3. Time management

The ERP system tracks and records working hours, leave, and other activities related to employees’ working time — such as clock-in, clock-out, and overtime.

4. Recruitment management

The ERP system helps in the process of recruiting new employees, including advertising job positions, interviews, and evaluating candidates, so that the organisation gets staff with the qualifications it needs.

5. Personnel development

The ERP system manages training and plans the development of human resources within the organisation, so that staff can work for the organisation at full efficiency.

6. Managing employee performance

The ERP system helps track employee performance, including reviewing results and planning improvements to employees’ work performance in the organisation.

7. Managing employee data permissions and security

The ERP system records information about the permissions and security of employees’ personal data. Employees are given rights to access data in the ERP system according to their role and duties, and the ERP system prevents employees’ personal data from being edited improperly or untruthfully.

8. Managing leave and absence data

The ERP system manages employees’ leave and absence data. The ERP system can record leave, leave approval, and the calculation of leave days for employees.

Using an ERP system to manage the organisation’s human resources helps the organisation’s staff review the various data related to human resources without the data being scattered — based on the reality of what has happened, and able to be checked immediately in real time.