Memo Letter About ERP

Mr. X CEO XYZ Plc. Choice of HRIS for Performance Improvement Compared to ERP Sir, This memo is intended to establish the kind of process development software that the company can use right now to enhance the performance of the HR department and be able to better monitor the performance of employees and be able to provide feedback in real time. For this purpose, I make the following suggestion.

While it has been suggested by some that the company can make use of the enterprise resource planning software for enhancement of performance, I suggest the use of HRIS for the same purpose. The reasons for this are that I am of the view that the HRIS is better suited to serve the company in its present growth phase than an ERP software.

While ERP can be described as a process of management which is used for better management of the company and the business, it is also known to be used for its ability to facilitation of the flow of information within the organization so that business decisions can be taken based on data (Lengnick-Hall & Lengnick-Hall, 2006).

ERP is applicable throughout the organization and functions through the process of collection and organization of data which is analyzed in real time and provides credible insight for the management into some of the key performance indicators. ERP helps in creating a process of automation for the core business processes like taking customer orders, operations scheduling, inventory record keeping and financial data records. ERP has the potential to enhance efficiencies in am a number of business operations like manufacturing management, supply chain management and distribution, and financial and reporting analysis.

However while ERP also has the potential to impact and enhance efficiency in the HR department, it is better advised to utilize HRIS for enhancement of efficiency of HR management. The HRIS or Human Resource Information System is a specialized tool and a software solution for the development of efficiency of the HR department through automation and efficient management of payroll, management and accounting activities (Macy, 2004). Costs of HR can be effectively managed and reduced through the application of HRIS.

It allows organization and companies to generate the capability for more effective HR planning, control, and its management. Efficiency is improved through the improvement in the quality of HR decision making. The system also helps in the improvement of employee and managerial productivity as well as their effectiveness. Typically an HRIS offers benefits of better HR management, payroll assistance and automation, training, recruiting and compliance solutions (Son, 2015). The primary benefit for choosing HRIS over ERP for HR department efficiency is in the reporting efficiencies that it offers.

The system can be very efficiently used to create reports and business presentations. A typical HRIS has or holds all data and information available within the organization about the company's human resources initiatives that include details about the hiring practices of the company like a comprehensive listing for all the job applicants and an up-to-date index for openings and electronic copies of the paperwork of each employee's onboarding.

Data about the salary and incentive compensation for every employee is retained in the system the results of all appraisals and information about any disciplinary actions which might have been taken against employees are also included. Hence, the detailing of the information in an HRIS system allows a manager to efficiently analyze them and include vital information in presentations and reporting (Waddill & Marquardt, 2011). An HRIS is also very effective in enhancing recruitment effectiveness.

HRIS provides a sophisticated interface which can be used by both the internal employees and the external job applicants as well. A candidate can apply for an open position and submit their resumes and their contact information from a remote computer. An HRIS allows for the collection of such information and archiving them so that they can be used in times of recruitment.

Recruiters would be able to conduct detailed searches of the collected resumes and can use a variety of queries such as location, education levels, professional experience as well as technical skill set. Hence, the overall process of candidate selection becomes automated and accurate enhancing the quality of employees recruited. This process also saves time in the recruitment process. HRIS also allows for better workforce management through flexible design and integrated databases. Most HRIS also come with a range of comprehensive features and powerful analysis capabilities and reporting functions.

This can save valuable time for the HR department and its administration which can be better spent in other useful aspects (Macy, 2004). These are features that are not generally exclusively available for HR departments and its functions in the ERP solutions. However one has to be mindful the HRIS can become tough due to human error during the information input process and it can be somewhat costly for technology up gradation of.