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SAP Human Capital Management (HCM)

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Introduction

SAP HCM is one of the major modules in SAP that plays an important role in building an organized management in enterprises. SAP HCM consultants are some of the most demanded professionals in the global market. It is advisable to gain an overview of SAP basics, SAP Net Weaver and SAP solution manager prior to starting with SAP HCM module. Candidates need to fulfill certain eligibility criteria to become eligible for opting SAP HCM exam. The eligibility criteria are determined based on the SAP AG Education Policies and vary from continent to continent. In general, candidates should have a year or two years of experience in SAP HCM module before attempting the exam. Let’s have an overview on the SAP Human Capital Management (HCM) module.

HCM is one of the most important processes in organizations across industries. The general idea on HR is related only to recruiting. But HR is much beyond just recruiting. In an organization, HR not just hires employees but segregates employees based on various factors such as department level, payment days, payment details, designations and more. Besides, various other works such as promotions, employee engagement and team motivation tasks are taken care of by the HR. These works might sound very simple; however, working out all these for people of an entire organization is not an easy work at all. To streamline all such HR processes, SAP ERP operations are widely used. SAP HCM ERP is one of the most flexible software for HR processes widely used across industries.

Advantages of SAP Implementation

There are many advantages of SAP implementation and SAP ERP operations is no exception. SAP HCM training helps one to gain better hands on using SAP HCM module. SAP HCM ERP allows one to organize a structure HR process system in a work station. Many tasks can be automated thus reducing manual work and increasing productivity. SAP HCM configuration allows one to maximize the recruitment process such as organizations can hire permanent but also on contractual, part-time workers and also daily wagers. Also implementing SAP HCM module doesn’t require redesigning of the entire process. SAP HCM User is flexible software and allows one to adjust the new SAP developments within the existing process. SAP has various models for different processes in HR management. For example: Every employee has name, employee ID, designation etc., that needs to be recorded by the HR team of every organization. These data can be created and stored automatically using SAP HCM tools and ways. Similarly, data can be recorded based on time management, payroll details, and work-schedules and so on. There are various sub models in SAP HCM for different processes.

SAP HCM Modules

  • Organizational Management
  • Personnel Administration
  • E-Recruitment
  • Time Management
  • Payroll
  • ESS and MSS
  • Reporting

Organizational Management: This process defines an organized way to make different people work under a common platform towards achieving a pre-defined goal. It ensures a smart management of time and resources in the workstation.

Personal Administration: This process defines the process through which the human resource of an organization is managed. From the stage of recruiting through compensation, benefits, new employee orientation, performance-appraisal and more, everything can be recorded and tracked through this process.

E-Recruitment: This process is an automated web-based recruiting process that assists HR professionals in hiring appropriate talent. It opens up innovative ways of recruitment processes in an organization.

Time Management: This process assists one in the processes of planning, recording and valuation of employee’s performance for a certain period of time. The impact of employee’s presence and absence in the organization is evaluated in this process. Also attendance management, calculation of wages, log-in and log-out report etc., are included in this process.

Payroll: This process as the term defines is all about the pay-scale and compensations given away to employees. From salary to overtime pay, comp-off pay and compensation program, everything is calculated in this process.

ESS and MSS: Employee Self-Service helps employees to individually track various data of their tenure in an organization. On the other hand Management Self-Service is a vital process for the managers to create and maintain the data of employees.

Reporting: Finally, reporting allows HR team to deliver comprehensive and up to date information of all its employees. The reporting tool also enables one to track the hierarchal structure followed in an organization.

These are the SAP HCM modules that allow HR team to work efficiently towards managing employee profiles and data within an organization.

SAP HCM is one of the major modules in SAP that plays an important role in building an organized management in enterprises. SAP HCM consultants are some of the most demanded professionals in the global market.

Eshna is a writer at Simplilearn. She has done Masters in Journalism and Mass Communication and is a Gold Medalist in the same. A voracious reader, she has penned several articles in leading national newspapers like TOI, HT and The Telegraph. She loves traveling and photography.

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