Chapter 6.docx ERP [PDF]

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Chapter 6: Human Resources Processes with ERP   TRUE/FALSE   1. The tasks associated with managing a company’s workforce is now known as human capital management or HCM.   ANS:  T                    PTS:   1                    REF:   159   2. The responsibilities of an HR department include manufacturing goods and purchasing raw materials.   ANS:  F                    PTS:   1                    REF:   159   3. Ensuring that these tasks are accomplished and that valid human resources-related information is communicated throughout the organization requires a system that effectively controls the flow of information.   ANS:  T                    PTS:   1                    REF:   160   4. Employee turnover is strongly tied to effective communications from human resources.   ANS:  F Employee turnover is strongly tied to job satisfaction and compensation.   PTS:   1                    REF:   165  

5. Succession planning should be performed on every employee in the company.   ANS:  F A succession plan outlines the strategy for replacing key employees when they leave the company or move to another position within the company. The success of a company depends in large part on the skills, abilities, and experience of its management team.   PTS:   1                    REF:   175   MULTIPLE CHOICE   1. The tasks associated with managing a company’s workforce is now known as ____. a. human capital management c. workforce management b. resource management d. hiring management     ANS:  A                   PTS:   1                    REF:   159   2. The job of managing salary and benefits provided to each employee and confirming that the proper benefits are disbursed to new and current employees falls under the ____ department. a. Accounting and Finance c. Individual b. Human Resources d. Administrative     ANS:  B                    PTS:   1                    REF:   160   3. To record employee working times, SAP ERP uses ____. a. punched cards c. CATS (cross application time sheets) b. RFIDs d. multiple databases

    ANS:  C                    PTS:   1                    REF:   173   4. The parts of an employee’s pay that is comprised of base pay, bonuses, gratuities, overtime, sick pay , and vacation allowances are known as ____. a. payroll run c. voluntary deductions b. statutory deductions d. remuneration elements     ANS:  D                   PTS:   1                    REF:   173   5. ____ are skills or abilities associated with a position, while ____ are skills or abilities associated with a specific employee. a. Qualifications; requirements c. Duties; tasks b. Requirements; qualifications d. Tasks; duties     ANS:  B                    PTS:   1                    REF:   175   6. What is a plan for replacing key employees called? a. Duty roster c. Succession plan b. Replacement circular d. Reincarnation study     ANS:  C                    PTS:   1                    REF:   175   7. SAP’s ERP helps the administration of employees taking time off under a government act that allows compensation for family and medical problems.  This act, passed in 1993, is the ____. a. FIA c. FMLA

b. QOTA

d. PROBA

    ANS:  C                    PTS:   1                    REF:   177   8. Which functional part of the organization communicates changes in salaries, benefits, and policies to employees? a. Sales and Marketing c. Accounting and Finance b. Supply Chain Management d. Human Resources     ANS:  D                   PTS:   1                    REF:   160   9. What is the source of Fitter Snacker’s problems with Human Resources? a. Inaccurate information c. Inconsistent information b. Out-of-date information d. All of the above     ANS:  D                   PTS:   1                    REF:   160   10. What is the name of the group of candidates selected to be interviewed by Fitter Snacker for a particular position?  For example, assume 20 applicants applied and only three were selected to be interviewed. a. Short list c. Final three b. Select group d. Applicants     ANS:  A                   PTS:   1                    REF:   162   11. What is probably the most important function of a human resources department?

a. Recruiting and hiring b. Payroll processing

c. Benefits management d. New hire training

    ANS:  B                    PTS:   1                    REF:   173   12. SAP ERP provides an Organization and Staffing Plan tool that is used to define a company’s ____ and the positions within the organizational structure as a whole. a. management structure c. hiring process b. benefits program d. job titles     ANS:  A                   PTS:   1                    REF:   169   13. The process of determining each employee’s pay is called a ____. a. payroll run c. cash-out b. weekly round-up d. remunerations session     ANS:  A                   PTS:   1                    REF:   173   14. The SAP ERP system evaluates the input data to payroll and notes any discrepancies in a(n) ____. a. payroll report c. discrepancy list b. error log d. off-target list     ANS:  B                    PTS:   1                    REF:   173  

15. An outgrowth of the ____ is that companies must account for the expected costs that occur as a result of long-term incentives such as the exercising of stock options. a. Income Statement c. Consolidated statements b. Balance Sheet d. Sarbanes-Oxley Act     ANS:  D                   PTS:   1                    REF:   177-178   SHORT ANSWER   1. Define the terms human capital management.   ANS: Companies are increasingly aware of the importance of an experienced, well-trained workforce and have begun using the term human capital management (HCM) to describe the tasks associated with managing a company’s workforce.   PTS:   1                    REF:   159   2. What are remuneration elements?   ANS: The remuneration elements of an employees pay include the base pay, bonuses, gratuities, overtime, sick pay, and vacation allowances that the employee has earned during the pay period.   PTS:   1                    REF:   173   3. What are statutory and voluntary deductions?

  ANS: The statutory and voluntary deductions include taxes (federal, state, local, Social Security, and Medicare), company loans, and benefit contributions.   PTS:   1                    REF:   173   4. What are the differences between requirements and qualifications?   ANS: Requirements are skills or abilities associated with a position, while qualifications are skills or abilities associated with a specific employee. Requirements and qualifications refer to the same concept from a different perspective.   PTS:   1                    REF:   175   5. What is succession planning?   ANS: A succession plan outlines the strategy for replacing key employees when they leave the company or move to another position within the company.   PTS:   1                    REF:   175   ESSAY   1. Outline the responsibilities of an HR department.

  ANS: Attracting, selecting, and hiring new employees using information from resumes, references, and the interview process.   Communicating information regarding new positions and hires throughout the organization and beyond.   Ensuring that employees have the proper education, training, and certification to successfully complete their duties.   Handling issues related to employee conduct.   Making sure employees understand the responsibilities of their jobs.   Using an effective process to review employee performance and determine salary increases and bonuses.   Managing the salary and benefits provided to each employee and confirming that the proper benefits are disbursed to new and current employees.   Communicating changes in salaries, benefits, or policies to employees.   Supporting management plans for changes in the organization (expansion, retirements and so on) so that competent employees are available to support business processes.   PTS:   1                    REF:   160  

2. Discuss employee turnover and the cost of hiring.   ANS: Employee turnover can be a significant problem. The cost of hiring an employee has been estimated from thousands of dollars to $50,000. When evaluating the cost of hiring an employee, and company should consider both the direct costs of hiring an employee, and the less tangible costs that occur during an employee’s first year or so. For example, while new employees are learning their jobs, other employees have to take time from their normal jobs to train them, which can negatively impact their productivity. Another cost that is difficult to quantify is the employees historical knowledge of the job, which is lost when an employee leaves a company. For example, if a purchasing manager leaves a company, then all of the managers knowledge about supplier relations is lost. The company does have a record of the contract signed with the supplier, but details of the negotiations that led to the contract may not be documented. Such details can be crucial in successfully negotiating the next contract. The manager may have developed good relations with the supplier and knows who to contact when there are problems. These relationships are not specified as part of the purchasing manager position, but accrue over time with the individual holding the position. When companies experience high rates of turnover, they lose knowledge and skills that may be crucial to keeping them competitive. Employee turnover is strongly related to job satisfaction and compensation. If employees have satisfying jobs and are well compensated, they are less likely to leave the company. Human Resources can help maintain a satisfying work environment through a number of means, including training programs for supervisors and managers, conducting periodic employee satisfaction surveys, and gathering data from employee exit surveys. Human Resources also has a critical role to play in compensation, which should be related to the skills and tasks required of the job and the performance of the employee. An important function of the HR Department is to make sure compensation levels are competitive and are applied fairly to all employees. Failure to do so can result in high rates of turnover as well as discrimination lawsuits.   PTS:   1                    REF:   165   3. How does the SAP ERP system distinguish between a task, job, and person?   ANS: SAP ERP distinguishes between a person, task, job, and position. In SAP, a person is a unique individual who holds a position and who performs tasks, which are the assigned responsibilities related to a specific job or position. Tasks can be assigned to a position directly, or they can be grouped together in a job. A job is a general classification of tasks that are routinely performed

together. For example, the job of department head could be defined by assigning it tasks such as review employee performance and prepare monthly budget reports. A position is an individual employee assignment within the organization. Tasks can be assigned directly to a position, or they can be assigned to the position by assigning a job to that position. For example, the position of purchasing manager could be defined with the department head job assigned to it. The purchasing manager would then be responsible for the review employee performance and prepare monthly budget reports tasks. The purchasing manager position could also have tasks such as review monthly spending assigned to it directly.   PTS:   1                    REF:   169-170   4. What is management by objectives (MBO)?   ANS: The concept of management by objectives (MBO) was first outlined by Peter Drucker in his 1954 book The Practice of Management. In MBO, managers are encouraged to focus on results, not activities, and negotiating a contract of goals with their subordinates without dictating the exact methods for achieving them. SAP ERP provides a comprehensive process to support the MBO approach that incorporates performance appraisal. The appraisal results can affect the employees compensation, generating annual pay raises that can be either significant or insignificant, depending on the employees performance. Likewise, managers can include the results of achieved objectives in the employees qualifications profile.   PTS:   1                    REF:   178