06. Human Capital Management - Theory

Summary

This video tutorial provides an overview of the Human Capital Management (HCM) module within SAP IRP, focusing on its key functions in managing human resources in an organization. It covers the seven essential functions of HCM, such as employee administration, recruitment, payroll, and training, alongside the organizational structure and master data used to manage employee details. The video also explains the process of recruiting, performance management, and business process implementation in a company like Garuda Indonesia. The goal is to highlight how HCM optimizes workforce management, enhances employee performance, and supports company growth.

Takeaways

• 😀 HCM (Human Capital Management) in SAP IRP treats employees as valuable assets, focusing on enhancing their value to improve productivity and organizational success.
• 😀 There are seven key functions in the HCM module: employee administration, organizational management, training, payroll, recruitment, time management, and travel management.
• 😀 Employee administration includes managing data like bank details, attendance, and personal information of employees.
• 😀 Organizational management helps visualize and plan the future structure of the company, including workforce requirements and department planning.
• 😀 Training and event management aims to provide necessary training to improve employee performance and skills.
• 😀 Payroll is responsible for compensating employees with wages, benefits, and other allowances.
• 😀 Recruitment in HCM involves both external hiring and internal promotions, ensuring the right talent is sourced for the company.
• 😀 Time management ensures the effective scheduling of work hours, including shifts and attendance tracking for employees.
• 😀 Travel management handles the arrangements for external trips, like business meetings or employee retreats, outside of the company.
• 😀 The organizational structure in HCM defines roles like clients, company codes, personal areas, and employee subgroups, helping to organize the workforce.
• 😀 Master data in HCM includes personal numbers, which are unique identifiers for each employee, and info types like vacation, health, and parental leave details.
• 😀 The recruitment process includes advertising job openings, reviewing applications, and selecting candidates based on matching qualifications.
• 😀 Performance management in HCM involves planning performance expectations, providing feedback, and offering compensation adjustments based on evaluation outcomes.
• 😀 Garuda Indonesia successfully implements SAP IRP HCM for managing employee recruitment, payroll, and other HR processes, improving overall efficiency.

Q & A

What is the main focus of the Human Capital Management (HCM) module in SAP IRP?

The main focus of the HCM module in SAP IRP is to manage human resources in an organization by handling processes related to recruitment, employee development, performance management, and maintaining employee data, all while treating human resources as valuable assets that can be invested in to improve productivity and company profitability.

What is the difference between HCM and HRD?

HCM views human resources as valuable assets or capital that can be developed and invested in to enhance productivity and profitability, whereas HRD focuses on human resources as labor to support industrial activities, where the workforce eventually depletes, potentially reducing productivity and profitability.

What are the seven key functions in the HCM module?

The seven key functions in the HCM module are: 1) Employee Administration, 2) Organizational Management, 3) Training and Event Management, 4) Payroll, 5) Recruitment, 6) Time Management, and 7) Travel Management.

How does Organizational Management function in HCM contribute to a company?

Organizational Management in HCM helps companies structure their workforce by planning human resource needs for future positions and modifying the organizational structure as necessary, ensuring that the right talent is available for the right roles.

What is the purpose of Employee Administration in the HCM module?

Employee Administration in HCM is used to manage and maintain employee data, such as personal information, attendance, and banking details, streamlining administrative tasks related to employees.

How does the Recruitment function work in the HCM module?

The Recruitment function in HCM streamlines the hiring process by defining standards for selecting candidates, managing both external recruitment (hiring new employees) and internal recruitment (promotions and transfers of current employees).

What are the main differences between external and internal recruitment in HCM?

External recruitment refers to hiring new employees from outside the company, while internal recruitment involves selecting or promoting current employees to fill open positions within the organization.

What is the role of Payroll in the HCM module?

The Payroll function in HCM handles the payment processes for employees, including salaries, bonuses, allowances, and other compensations, ensuring accurate and timely disbursements.

What is the significance of Master Data in HCM?

Master Data in HCM refers to the core data about employees, such as their personal numbers, job roles, and employment details. This data is essential for various processes in the system, including payroll, recruitment, and performance management.

Can you explain the concept of 'Personal Number' in the HCM module?

The 'Personal Number' in HCM is a unique identifier assigned to each employee. It is used to track and manage employee data across various functions, such as payroll, travel expenses, and performance evaluations.

How does the Performance Management process work in HCM?

The Performance Management process in HCM involves setting goals and performance criteria for employees, evaluating their performance periodically, providing feedback, and offering rewards or adjustments based on their performance to improve overall productivity.

What are the benefits of using HCM in organizations like Garuda Indonesia?

For companies like Garuda Indonesia, HCM streamlines critical processes such as recruitment, payroll management, and employee performance evaluation, ultimately improving operational efficiency and ensuring that human resources are effectively managed to support the company's goals.