ERP Systems. It covers the Human Capital Management (HCM), Human Resource Management (HRM) module found in latest ERP software like ODOO, SAP, etc.

1. HUMAN CAPITAL
MANAGEMENT
(HCM)
Faizan Ali (BSEF18E036)
University of Sargodha (UOS)

2. CONTENTS
 Introduction to HCM
 Why HCM modules are implemented?
 Various modules within the HCM
 Outsourcing HCM Functions
 Why companies outsource HR
functions?
Human Capital Management (HCM) 2

3. INTRODUCTION TO HCM
The set of skills, competencies, knowledge, and intangible
attributes that employees acquire in their jobs through training
and experience and that create economic value for the
organization is known as human capital. The methods and
strategies embraced to optimize the value of this asset are
collectively known as human capital management (HCM).
Human Capital Management (HCM) 3

4. WHY HCM
MODULES ARE
IMPLEMENTED?

5. COMPANIES IMPLEMENT
THE HCM MODULES
BECAUSE:
• People matter
• HR activities are data intensive
• HR data is extremely sensitive
• HR data is valuable to the rest of the organization
Human Capital Management (HCM) 5

6. VARIOUS
MODULES
WITHIN THE
HCM

7. VARIOUS MODULES WITHIN THE HCM
Human Capital Management (HCM) 7
Personnel
Administration
Benefits
Administration
Time and
Attendance
Management
Compensation
Management
Payroll
Recruitment
Management

8. PERSONNEL ADMINISTRATION
• Captures employee master data. For example: name,
address, departmental assignment, bank details, and
compensation.
• Assign unique employee number.
• Hiring, organizational assignments and reassignments,
salary increases, promotions, leaves, and terminations
are managed.
Human Capital Management (HCM) 8

9. BENEFIT ADMINISTRATION
• Establish, maintain, and manage employee benefits
like medical insurance, retirement plans, vacation
time, flexible spending plans, etc.
• An enrollment profile for every employee is created
and maintained in this module.
• Master data such as date hired, marital status, number
of dependents, total hours worked, part-time or full-
time status, and attendance is used.
Human Capital Management (HCM) 9

10. TIME AND ATTENDANCE
MANAGEMENT
• Managers use this module to schedule and approve
employee time, absence, and leave time more
efficiently.
• Assists managers in tracking time to specific activities
and jobs for cost accounting purpose.
• It helps companies control costs, optimize the
productivity of its workforce, provide key information
for payroll.
Human Capital Management (HCM) 10

11. COMPENSATION MANAGEMENT
• It involves designing, implementing, and administering
salary and wage policies to attract and motivate
employees.
• Compensation includes
• Fixed pay
• Life-event pay
• Variable pay
Human Capital Management (HCM) 11

12. PAYROLL
• It include accounting and preparation of payroll checks
for employees, temporary workers, and contractors.
• To calculate payroll, information is needed from
different modules like master data updates from
Personnel Administration, time data from Time and
Attendance Management, etc.
• This module also manages the direct deposit process,
which helps minimize security risks associated with
issuing paper checks.
Human Capital Management (HCM) 12

13. RECRUITMENT MANAGEMENT
• It is used in the very early stages of the employee life
cycle.
• It help attract job candidates and convert talented
individuals into successful hires.
• This module also handles the analysis, administration,
and storage of electronic recruitment information.
• It involves recruiting activities, onboarding, and
management information
Human Capital Management (HCM) 13

14. OUTSOURCING
HCM
FUNCTIONS

15. OUTSOURCING HCM
FUNCTIONS
• Outsourcing refers to contracting out certain business
activities previously performed internally to a third
party, or service provider.
• An estimated 50 percent of large companies outsource
all or part of their HR needs to service providers such
as ADP or Paychex.
Human Capital Management (HCM) 15

16. WHY
COMPANIES
OUTSOURCE HR
FUNCTIONS?

17. TOP REASONS
COMPANIES OUTSOURCE
HR FUNCTIONS
• Save money
• Focus on strategic functions, not administrative (non-
core) tasks
• Gain expertise not available in-house
• Take advantage of technological advances, including
business analytics
• Improve accuracy and recruitment
Human Capital Management (HCM) 17

18. “HUMAN RESOURCES ISN’T A
THING WE DO. IT’S THE THING
THAT RUNS OUR BUSINESS.”
Steve Wynn
Human Capital Management (HCM) 18

19. 🙂
THANK
YOU
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