Enterprise Resource Planning

December 2023 Examination

Ans 1.

Introduction:

Legacy HR systems may be defined as the old computer hardware or software that the company
has been using for a long time. These are long outdated but still, companies are using them.
The companies don’t want to change as they have invested a lot of money and time for this
software and the current workforce is used to it.

Here Auro Vision Consulting is also a victim of the same mentality and getting hampered by
it.

Discussion:

It is just not for the change of system but to grow in the modern time and stay updated with the
latest system it is important to change to modern ERP system.

There are many business impacts of legacy systems. Some of them may be defined as
below:

What are the 8 common problems caused by using old HR technology?

1. Lack of adaptability: Legacy software is not capable of adapting and growing as the
businesses grow. They remain the same and hence become unable to handle increased data as
the company grows.

2. Siloed systems: With old systems and the inability of system integration and connectivity,
it is difficult to create and manage accurate accounts for the organization.

3. Lack of data protection: Since the organization holds a significant amount of data. So the
safekeeping of these becomes the top priority of any organization. A legacy system is
vulnerable to modern threats to data.

4. Limited functionality: The legacy system lacks the automation. Hence manual data entry
tasks become time-consuming tasks and manual administration leads to errors and loss to an
organization. Top managers are wasting time on data rather than making strategic decisions.

5. Poor analytics: Due to the limited functionality of the legacy systems it becomes difficult
to create reports. Lack of reports hinders the management from making important decisions on
time.
6. Risk management: Due to the security concerns of employee data and difficulty in creating
reports there are chances of errors that lead to losses.

7. No support: The legacy HR systems are obsolete, and tech support is no longer available.
Only a few techies are aware of this system. This makes the maintenance less effective and
costly.

8. Endless admin: Repetitive tasks and manual data entry take too much toll on valuable time
and resources and hinder the HR team from utilizing the time for productive tasks.

Conclusions:

Hence the legacy HR system has a lot of problems and hinders the progress of an organization.
It also has risks of confidential data theft. So, I would suggest replacing the legacy system for
better productivity. It uses the automation for data entry and the generation of the reports. It is
less problematic and adaptable to keep the system ready for the new age.

Ans 2.

Introduction:

After analyzing the issue at Auro Vision I think a cloud-based consulting would be appropriate.
It is a type of HRIS system that has a centralized software solution that uses cloud technology
to manage various HR functions within an organization effectively. It serves as a real-time
digital store of data that can be accessed seamlessly over the internet with top-of-the-line data
security.

Key points:

1. Cloud-based central application

2. Employee information in Realtime
3. Streamline HR management.

Discussions:
A cloud-based HR system helps organizations to automate their HR functions. These processes
help the company in the following ways.

1. Improve company-wide efficiency,

2. Enhance cross-team collaboration and communication,
3. Improve data security and privacy,
4. Increase scalability, and
5. Save costs.

Let us talk about these in brief:

1. Improved company-wide efficiency: Suppose a company has multiple offices at multiple
locations these cloud-based HR system helps to be updated with the employee information in
real-time regardless of their location. The real-time data helps them to make correct decisions
timely and respond to any issue as it arrives. Automation of the HR system helps- the HR team
to focus on strategic initiatives for the success of the organization.
HR functions such as onboarding and offboarding, employee data management, background
checks, payroll processing, etc.

2. Enhanced cross-team collaboration and communication: Cloud-based HR system removes

the barrier of physical distance. It collaborates with various tasks for the various locations in
real-time from the central location. This helps to share data cross-functionally and collaborate
in real-time.
It also helps the employee to access the data themselves through ESS portals to manage their
data and tasks reducing the burden on the HR team. Also, employees can ensure accurate data
as they are filling in for themselves.

3. Improved data security and privacy: Due to the enhanced encryption in the cloud-based
system sensitive HR-related information is secured and can be accessed by authorized persons
only.
There are certain regulations and compliances to storing data such as cybersecurity threats,
legal compliances, cross-border data regulations, etc. Protecting the information is vital for any
organization. Leakage of sensitive data may lead to huge losses to the organization.

4. Easy scalability and flexibility: Cloud-based HR systems are capable of adaptability based on
scale. It can be customized for a small startup to a multinational company. It comes in all sizes.
A flexibility system allows the organizations to create the system to fulfill their own needs and
comply with local regulations.

5. Cost savings: Cloud-based HR system has several cost-saving advantages such as features that
can be added or removed based on the requirements. Its size can be increased or reduced as per
the demand. It is also updated to the latest by upgrading the existing system rather than buying
whole new systems.

Conclusion:
Hence with the implementation of the cloud-based HR system, the Auro vision may eliminate
the problem, caused by the legacy system and be ready for the future with enhanced features,
enhanced security, and real-time access to data at affordable cost. It will save time for the HR
department to take productive work in the strategic decision-making and improve the
productivity and hence the profit of the organization.

Ans 3a.

Introduction:

A mobile application may be defined as portable software that can be installed on our mobiles
and can be used as or when required. Mobile applications are generally smaller in size in
comparison to PC applications and can handle limited but important tasks in real-time.

It helps us to update or access any information at any point in time with the convenience of
anywhere in the world. It just required an internet connection and a mobile device.
Discussion:

The resources were always there but after the pandemic, it is now normal to work remotely,
and remote work is incomplete without mobile access to HRMS data.

So, every HRMS developer company now provides mobile applications as a compulsory
package with the HRMS PC system Software. It adds convenience to the lives of employees
and the HR department in any organization.

Below are the benefits of the integration of mobile apps in the Oracle HCM ERP system.

a] Access to Mobile Only Features: Easy access to the mobile-only features due to the
advantage of phone hardware such as media hardware, camera, and biometrics. It helps in
improving user experience.

b] Attendance Management Made Easy: Mobile Apps help a lot in the employee attendance
management system. Apps facilitate maintaining employees who work remotely and basically
on the fields. The app also supports geolocation which helps to track employee activity based
on their location whether they are on the field or off the field. Face recognition is a quick and
effective way of attendance tracking. The ability to monitor and control attendance is a major
benefit of the Digital HRMS mobile.

c] Ease of Leave Management: Mobile apps facilitate leave management effectively. It

helps to apply or track leaves from anywhere and anytime. It also helps to check the leave
balance and helps to plan the leave effectively.

d] Next Level of Security Features: Mobile apps have a high level of security encryption. So,
confidentiality is at a high level. No data can be leaked about the employees. Some of the major
features of digital HRMS include Geo-fencing, fingerprint sensors, face recognition, chatbot,
voice commands, and timesheet recorders, etc.

Conclusion:

Hence, implementing mobile integration in ERP systems helps both employees and employers
in day-to-day life to a greater extent facilitating the ease of doing activities, and helping to
maintain the data in real-time. It also helps to monitor the employee presence at the geo-
location.

Ans 3b.

Introduction

The reports are very important for any organization to assess the employee data and their
performance evaluations. A recruitment report helps to understand the internal or external
candidates whereas the talent reports help to understand the performance of the employees and
rate them based on their performance. Reports and analytics are generated by the ERP system
and can be accessed at any point in time in real-time.

Discussion:
There are different types of HR reports and analytics. Some of them are as below:
1. Employee information report
2. Recruitment report
3. HR performance report
4. Attendance and absenteeism reports
5. Diversity reports
6. Turnover and retention reports
7. Salary and compensation report

Let us discuss these in brief detail.

1. Employee information report: This helps to identify the workforce in an

organization. The ratio of gender-based and age-based distribution over the
departments their demography etc. These allow top managers to assess the
workforce and management as per the company's goals.

2. Recruitment report: This allows the HR team to manage the manpower, average
hiring time, cost per hire, recruitment status, and all.

3. HR performance management report: it is the most important report for any

organization. Keeping a record of the performance and rewarding the employee as
per their performance is very critical.

4. Attendance and absenteeism report: This report directly talks about the
present/absence of the employee and hence gives a major rule of productivity. It
provides the data about the absenteeism and the reasons behind it. It helps the
management to tackle any cause of concern. Also, it helps to track the loss of
productivity or loss due to paid leave.

5. Diversity report: Diversity is the most talked about term in any organization. The
management talks about the diverse manpower of its organization. So, this report
allows the HR to monitor the diversity of the organization.

6. Turnover and retention report: Employee satisfaction should be at the top of the
table. Because satisfied employees lead to higher productivity and hence better
profits for the organization. Also, Attrition causes loss to the organization. So, the
 organization finds the gaps for attrition. By filling those gaps retention can be
increased.

7. Salary and compensation reports: Apart from the other reports it is also the salary-
related terms which is a fundamental requirement for the HR team. These reports
help to keep the records of employee compensation. It also helps to manage paid
leaves and performance-linked incentives.

Conclusions:
Hence the benefits of HCM implementation in reports and analytics are huge to create and
analyze the report. In the above examples we have seen how it is convenient to assess the data
and analyze the employee performance and other related aspects in just a few clicks. With the
help of HCM implementation, a lot of time is saved in manual data entry and compilation.