Memo Letter About ERP Term Paper

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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.

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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….....

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