Describing the Functionality of SAP ERP HCM


After completing this lesson, you will be able to Describe the functionality of the SAP HR on-premise system.

Human Capital Management

Human Capital Management (HCM) is a company-wide strategy and is not only confined to HCM processes and functions, but also supports integration with other modules such as Accounting.

On-premise HCM describes the traditional model of an enterprise purchasing the HCM ERP solutions that they then own and operate. The software is then loaded onto their own hardware and networks and maintained by employees or consultants on the enterprise's premises. On-premise HCM includes access to services using web portals, but the content that is accessed resides on the enterprise’s systems.

SAP ERP HCM supports many components and integration processes.

Most companies use the classic components in their on-premise system, for example, core HR (Personal Administration), Time Management, Payroll, and Organizational Management.

In addition, Recruiting and Onboarding processes can be used in integration with core HR and Organizational Management.

To support the Talent Management processes, for example, Personnel Development, Learning and Succession can be integrated.

Additionally, Performance and Goals (appraisal processes) is one of the workforce planning parts of SAP ERP HCM.

Many standard reports and flexible reporting tools like Ad Hoc query (infoset query) enable HR Analytics for all these HCM components.

Many processes can be used in the back-end system, as well as through portal-based components such as Employee Self-Service (ESS) and Manager Self-Service (MSS).

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