Lecture 11

Enterprise Systems
Email: rao.sana10@yahoo.com
 Compensation Management Module
Compensation management systems encompass compensation planning/budgeting, salary
administration, salary structure management, market pricing of jobs, etc.
1. Compensation Planning: Support compensation planning, and budgeting process at different
levels within the organization.
2. Compensation Structure: A compensation structure, also known as a salary structure, is a
framework that a business uses to determine compensation.
3. Compensation-based pay: ERP systems need to have functionality to manage commission-
based pay and compensation plans.
4. Pay for performance: ERP support a pay-for-performance process where performance
evaluation drive compensation decisions and awards.

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 Benefits and Payroll Module
Benefits and payment are little different topics. While payment is more related to month-end
salary, benefits include things like medical benefits, housing loan, etc. that a company offers as
part of total compensation package.
This module supports different payroll-related things:
1. Payroll administration: This includes things like administering payroll data and structures,
employee data, one-time salary, direct deposit of payments in employee’s bank account, etc.
2. Payroll processing: Payroll module have capabilities like income tax and professional tax
calculations and deduction calculation, etc.
3. Supporting multi-country localization and taxes: The tax and fund rules may vary in every
country. ERP like SAP and Oracle had come up with different versions of payroll module for
different country.

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 Talent Management Module
Talent management incorporates a variety of strategies and best practices, performance
management, career planning, training, development and fast-tracking of high performers to
identify key contributors and future leaders. A human capital system for talent management should
provide an integrated set of applications for strategy, learning and development.
Talent management is a process that involves attracting and retaining high-quality employees,
developing their skills, and continuously motivating them to improve their performance.

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 Learning Management Module
Learning management module helps in administering employee training programs and course
offerings as well as delivers online learning programs.
1. Registration: ERP module allows its employees to register for a course training. Managers can
register employees they supervise and registration can be restricted based on prerequisites.
2. Course catalogue: The ERP package provides a searchable course catalogue.
3. Scheduling instructor-led training courses: ERP can support conducting different instructor-led
training courses, scheduling of training rooms, instructors, training materials, etc.
4. Learner assessment: The packages have features for testing learner’s learning levels.

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 Employee Health and Safety (EHS)
ERP module supports systems and processes including control of workplace hazards, and health
risks related to chemicals and emissions.
Leading ERP vendor SAP has two EHS modules to support employee health and safety concerns
and these are:
1. Industrial Hygiene and safety
2. Occupational Health

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1. Industrial Hygiene and safety:
 What is the chance of an employee getting exposed to some particular risk depending on task or
work area. For example: an employee working in an underground mine is having higher risk
exposure than someone working in surface mine, i.e. underground mine has higher risk as a
work area.
 Incident management: If any accident happens then managing the entire incident from
reporting, taking follow up action to finally cost accounting for the incident.
 Safety management of specific work area.
The module make it easy to generate and manage procedures for handling various hazards and to
handle incidents.

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2. Occupational Health
Medical process for workers can be managed based on their exposure, injury or illness. It aims to
help companies and businesses in protecting their workers and reduce the no of workplace injuries,
medical illnesses and death

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 Assignment
Study in detail the HCM modules of two leading ERP vendors: SAP, and Oracle. Note down all
their modules. What capabilities they offer? Draw similarities and differences of their capabilities.

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