How SAP HCM Is Revolutionizing the Concept of Human Resource Management?

What is the most important and valuable resource for a company?  It is not money or machines, it is in fact people who run the company. You can have the best office supplies, but if you do not have well motivated and educated employees, your chance of making it big in the world of business is fairly low.

HCM which is better known as Human Capital Management is a specific approach that visualizes employees as valuable assets and looks at staffing solutions where the current contribution of a particular employee can be measured. Depending on that measurement, the employee’s future value in the organization is determined.

Organizations in which HCM is followed and practiced usually have a clear and well laid out HR policy, where employees are well aware of their duties and expectations from higher management. The holistic view of performance of an employee is taken at the end of the year, depending on his capability of achieving certain business goals.

There are many organizations where the concept of HRMS has become redundant and a lot of people treat HCM as a part of the ERP solution.  This solution helps managers to take critical decisions regarding various factors related to talent management, recruitment solutions, performance management and compensation management. Besides providing help, HCM plays a big role in helping HR professionals to manage important activities like succession planning, compliance and administration.

Advantages of SAP Implementation

Employees are often referred to as one of the most valuable assets of a company. When a company actually implements SAP HCM modules, it gives a clear hint that they are serious about their commitments. The biggest advantage of a SAP HCM module lies in the fact that it helps to relieve employees of redundant work and manual process thereby giving them more freedom to use information.

There are many financial and technical benefits of implementing a SAP HCM module. From the organization's point of view, SAP HCM is extremely cost efficient as it allows a company to manage all its HR activities with a single application. It gives the organization the advantage of streamlining the HR process, managing talent on a global basis, maintaining uniformity across branches, providing the organization with knowledge about the areas that require attention and in helping employees to create a career framework depending upon their talent and career objectives.

Important SAP HCM Modules

• Organizational Management: Managing an organization is not a child’s play and requires various departments to work in sync to ensure that the organization functions properly. The main objective of organizational management is to bring people from various backgrounds working in different technologies under a common umbrella, which is important to ensure that they work for a pre-defined goal.


• Personal Administration: As the name suggests personal administration is all about managing the employees individually. Each employee has different sets of expectations regarding compensation, recruitment, benefits and personal appraisal. With the help of SAP HCM, all these functions can be performed on a single platform.


• Time and Compensation Management: Time in any business process is as valuable as money. SAP HCM provides HR managers to keep a track of employee attendance, wages and many other similar factors. In the payroll segment, with the implementation of SAP HCM, organizations nowadays have a way to understanding what would be the overtime rate along with other factors like salary and investments.


• Reporting and ESS/MSS: SAP HCM gives employees a certain amount of liberty whereby they are free to track the overall progress of the organization along with his personal chart. It also helps managers to keep a track of performance of employees individually and teams too. The module also provides a lot of information to the employee which would help him to form a better idea about his organization.

We can safely say that SAP-HCM is one of the most sought after and vital tool for an organization. It indeed plays a big role in meeting the goals of both the management and the employees in a professional manner.