What is SAP HR? SAP Human Capital Management SAP HCM

Routine HR activities in an organization require systematic HR management and optimization. To facilitate the same, SAP HCM enables the organization to perform the core HR Processes like payroll, time and attendance, employee data management, and so on.

What is SAP Human Capital Management (HCM)?

SAP HCM is an important module of the SAP ERP that is integral in managing the core HR processes and responsibilities. SAP HR contains relevant functions for personnel administration, payroll, applicant management, and so on.

Now let us overview the various benefits of SAP Human Capital Management,

• SAP HCM reduces the cost of HR operations and increases productivity by automating the process of workflow management, payroll computation, time, and attendance management, and so on.
• Moreover, the SAP HR module enhances the decision-making process by providing real-time data insights.
• SAP Human Capital Management system, the efficiency of recruitment processes is improved by providing clear information on the candidate requirements, data filtering, and hiring.
• With SAP HCM, the management can collect feedback from employees to improve engagement and employee retention and optimize employee feedback and driver analysis.
• Increase engagement by creating dynamic processes and applications for task delegation and job reporting.

What are the modules of SAP HCM?

For seamless work processing and HR operation, the following modules of SAP HCM are offered,

Personnel Administration (PA)

The Personnel Administration module of SAP HCM connects all the core HR responsibilities. By creating personnel master data, the Personnel Administration module replaces the paper-based record-keeping and data maintenance measures and keeps the personnel data updated.

This module of SAP HCM ensures transparency, data optimization, and traceability. Moreover, it adds to the scope of salary adjustments, restructuring of the organization, planning actions, and so on.

Personnel Time Management (PT)

The Personnel Time Management module adds automation to the personnel time recording process, despite the measure of time record maintenance followed in the organization. These time records are updated in the SAP system in real-time and further set the basis for HR processes such as payroll accounting.

This module facilitates planning, record maintenance, and performance valuation to further optimize attendance maintenance, computation of wages, log-in and log-out reports, and so on.

Payroll Accounting (PY)

The Payroll Accounting module in SAP HCM facilitates payroll computation and accounting. Considering various aspects such as working hours, absence times, special payments, and so on, the payroll accounting module automates the payroll calculation process and saves the organization from the tedious task of salary accounting.

This module of SAP HR defines the pay scale, compensations, overtime pays, comp-off pays, and the various elements of payroll.

Organizational Management (OM)

SAP HCM Organizational Management Module maps the organizational structure and backs the organizational analysis, decision-making, and personnel planning. By supporting the analysis process and the OM module of SAP HR sets the foundation for career planning and applicant management.

This module ensures that the work is collectively being done to achieve a common, pre-defined objective through optimal time and resource management.

Personnel development (talent management)

The Personnel Development module of SAP HCM compares the vacant positions in an organization with the existing human resources based on certain criteria. This module of SAP HR consists of performance management, learning solutions, and so on.

Recruitment (PB)

SAP Human Capital Management Recruitment Module supports the vacancy management process of a company by optimizing data related to job requirements, description, and so on. With the help of the e-recruitment module in SAP HCM, organizations can automate interview scheduling, applicant tracking, and so on.

Conclusion,

HR Management and optimization is a tedious job and inaccuracies attached to the manual processing of personnel data add to the scope of challenges. The lengthy payroll computation procedures and data recording can take up a significant fraction of the time of HR Management, deviating them from other responsibilities.

SAP Human Capital Management (HCM) comes as a solution to these challenges, ensuring automation of the core HR processes such as payroll management, attendance data maintenance, recruitment processing, and so on.

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