SAP HCM Modules – Complete HR Solution

sap hcm modulesSAP is one of the leaders in enterprise applications and has the largest market share in Enterprise Resource Planning or ERP solution. SAP stands for “Systems, Applications and Products” in data processing and provides end-to-end solutions for financials, manufacturing, human resource planning, logistics, distribution, and so on. SAP’s application software comprises of different modules, and it is based on the concepts of specialization and integration.  Each of the modules or products inside the SAP family meets a particular need of an organization and is integrated with the other modules. SAP Beginners Training course will give you an overview of the different SAP modules, an introduction to the basics of an SAP system, how to navigate through an SAP system, work with master data and multiple sessions, understand the icons used in SAP, and illustrate how to customize a layout.

SAP HCM – An Overview

SAP HCM or Human Capital Management offers a complete and integrated set of solutions to help an organization effectively manage its people. HCM provides the Human Resource (HR) department with solutions that are comprehensive, engaging and flexible. The different sections or sub modules of HCM help in talent hiring, aligning employee goals with business objectives, identifying and cultivating employee skills, and measuring and rewarding employee performances. It helps to automate all the core HR processes, resulting in increased efficiency and cost reductions for a company in the arena of human resource management. SAP HCM also helps when a company has to outsource its HR processes and ensures that minimum risk and costs are involved. SAP System is divided into two types of modules – Functional modules and Technical modules. HCM is part of the Functional modules.

SAP HCM manages all functions from hiring an employee to its final termination in organization. It consist various sub components such as Personnel Management, Organizational Management (OM), Time Management and Payroll. SAP HR/ HCM module is integrated with other modules such as Financial Accounting (FI) and Controlling (CO), Production Planning, Materials Management , and so on.

HCM broadly manages the following areas:

  • Organizational Management
  • Personnel Administration
  • Recruitment Management
  • Personnel Cost Management
  • Planning Budget
  • Payroll Benefits Compensation
  • Management Personnel
  • Development Training & Event Management
  • Travel Management

SAP HCM Modules – Categories within HCM

Most of HCM services fall into two broad categories or focus areas – Personnel Administration (PA) and Personal Planning and Development (PD). Each of these sub modules handles company’s different human resource functions. The integration of these two categories results in an efficient, well-oiled Human Resource machine, which when further integrated with the other business processes creates a competitive edge for the firm’s business.

Personnel Administration (PA)

The PA module of HCM helps you to handle employee payroll calculations, manage employee benefits, assess eligibility to plans and benefits, enroll employees into benefit plans, and track costs and compensation. In times of increasing decentralization and globalization of workforce, an efficient and transparent administration of personnel data is a decisive advantage. You can manage all modern personnel administration tasks with this application component. Personnel Administration relieves you from the daily routine administrative activities involved in an HR process which are costly and time consuming. This efficient solution thus supports you to concentrate on planning activities. This application component is especially suitable for international corporations as under it country specific versions of HR related data can be created in accordance with the HR features of the specific country.

You can store all types of information about an employee in Human Resources Infotypes. They enable structured data entry and data maintenance, and enable you to store data for specific periods. Basic personnel procedures within master data administration, such as hiring employees, performing organizational reassignments, and entering the data required for employees who leave the enterprise, are all executed through separate functions.

The Workflow Management feature accelerates processing of information in personnel administration by coordinating and monitoring the flow of business processes step by step. SAP Business Workflow, for example, automates the subsequent activities of new recruits in Personnel Administration.

Employee Self-Service (ESS) allows employees to create, display, and change their own data on the company’s internal monitoring system. Employees themselves can update their own data, thus reducing the time-consuming and expensive activities performed by the Human Resource Department.

Reporting plays an essential role in human resource data. Under PA, numerous standard reports are available so that data handling and reporting in your company becomes a seamless process.

Talent Management (TM)

SAP Talent Management is one of the latest addition and up gradation to the Human Resource Module. It offers a holistic approach to talent management and handles the entire gamut of Talent Management including processes such as, recruiting, career management, succession management, enterprise learning, employee performance management, and compensation management. This solution helps to find the skill and knowledge gaps by comparing the employee profiles to actual positions. It also helps to identify the high potential employees. It is a great tool to strategize and draw out development and training plans to meet organizational needs and align the workforce with the skill requirements.

Conclusion

SAP ERP HCM solution offers a complete solution to manage workforce and automate all core HR processes. SAP has also designed several other modules that focus on different areas of a business. As SAP continues to be the most popular enterprise business system and as more and more companies are using SAP as a business software tool to optimize their businesses, SAP professionals or consultants are in great demand in the job market. Several SAP online training courses such as Learn SAP Course – Online Beginner Training, and SAP Architect  are available to help you gain expertise in SAP’s ERP software and program.