ERP Revolution in Performance Management of Employees



ERP Revolution in Performance Management of Employees

In order to improve worker management, evaluation of performance is an essential field in firms (Cappelli & Conyon, 2018). Workers and Emplopyees are the foundation of any industry and business since they help to advance organizational growth to a greater degree. Thus, employee appraisal and performance management are a necessary identification in any organization (DeNisi & Murphy, 2017).

How successfully an employee is doing their job is evaluated and documented through the performance evaluation process. A company's performance management system includes it. 

Performance appraisal can be done in different methods and different process steps can be used in understanding and applying the performance appraisal in the organizations (Kim & Holzer, 2016). This is a highly needed identification. Some of the common steps are explained in the following figure. Understanding these stages is necessary to make sure the performance appraisal is undertaking effectively (Kampkötter, 2017). 


Figure 1: Performance appraisal components 
Source: (Pratt, 2023)

ERP software are using in the employee performance appraisal in many different organizations. ERP is standing for Enterprise Resource Planning (ERP). This type of software is mainly used in different areas such as operations, marketing, finance and HR (Aljarrah, 2021; Bostan, et al., 2019).  These ERP software has higher level of effectiveness and thus, usage is significant in making proper decisions.
Different systems are there in the industry usage in ERP systems and the figure here is providing the examples of the ERP systems available in the industry (Elbahri, et al., 2019). 

Figure 2: ERP system 
Source : (Rajan & Baral, 2015)


There are several advantages in using the ERP systems in the performance appraisal planning. This is a huge necessity and thus, it is identified as a critical identification (Antero, 2015).
 

Following are the advantages of the ERP system usage in performance appraisal

·       Data accuracy is higher in using ERP systems and this is providing a better insight in managing successful performance appraisal process. 
·       The system provides the truth regarding the performance levels of the employees in the organization.  
·       Visibility and flexibility in the ERP system is higher with the performance appraisal applications.  
·       There is a very higher security in data and there is a very higher quality in data as well. 
·       Successful supply chain management practices can be applied in organization with the application of better ERP systems. 
·       Customizable level in the results and the reports are higher in the ERP management systems. 
·       Cost effectiveness level is very higher in ERP systems than the other appraisal methods.


Once applying the ERP system in one place, it is highly applicable in the other areas as well. There are many such areas that the ERP systems application can be applied as shown in the following figure (Hustad, et al., 2016). Organizations can use these methods in the activities handling and make sure the outcomes are generating in effective level to deliver most optimized outcomes. thus, it is identified that ERP systems are highly needed in the organizations to deliver the expected results in the future.


Figure 3: ERP Applications 
Source: (UpKeep, 2023)

Conclusion

I believe that every quarter year Employee performance evaluation will result in positive way in company growth. If not quarterly, minimum annual performance appraisals would be required to motivate the employees as well as the management progress. Not stopping with the employee performance appraisals, the appraisal forms need to be updated with new areas. Sharing feedback by putting performance standards in practice to employees for a minimum of one to two months would result in another milestone to the organization’s growth. For all these processes an ERP will be an added qualified system in performance management.


Figure 4: Using Performance Management and ERP data (Rhett, 2019).

References

Aljarrah, m., (2021). The Impact of Enterprise Resource Planning System of Human Resources on the Employees’ Performance Appraisal in Jordan. WSEAS Transactions on Environment and Development, Volume 17, pp. 351-359.

Antero, M. C., (2015). A multi-case analysis of the development of enterprise resource planning systems (ERP) business practices. Frederiksberg: Copenhagen Business School (CBS).

Bostan, I., Bîrcă, A., Tabără, N. & MUNTEAN JEMNA, L., (2019). Analysis of the Relationships between Sustainable Management Control and Performance Appraisal System. Postmodern Openings/Deschideri Postmoderne, 10(4).

Cappelli, P. & Conyon, M. J., (2018). What do performance appraisals do?. ILR Review, 71(11), pp. 88-116.

DeNisi, A. S. & Murphy, K. R., (2017). Performance appraisal and performance management: 100 years of progress?. Journal of applied psychology, 102(3), p. 421.

Elbahri, F. M. et al., (2019). Difference comparison of SAP, Oracle, and Microsoft solutions based on cloud ERP systems: A review. 2019 IEEE 15th International Colloquium on Signal Processing & Its Applications (CSPA) (pp. 65-70). IEEE.

Hustad, E., Haddara, M. & Kalvenes, B., (2016). ERP and organizational misfits: An ERP customization journey. Procedia Computer Science, Volume 100, pp. 429-439.

Kampkötter, P., (2017). Performance appraisals and job satisfaction. The International Journal of Human Resource Management, 28(5), pp. 750-774.

Kim, T. & Holzer, M., (2016). Public employees and performance appraisal: A study of antecedents to employees’ perception of the process. Review of Public Personnel Administration, 36(1), pp. 31-56.

Pratt, i., (2023). What Makes a good Leader?. [Online]
Available at: http://www.whatmakesagoodleader.com/Performance-Appraisal.html
[Accessed 19 04 2023].

Rajan, C. A. & Baral, r., (2015). Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end user. IIMB Management Review, 27(2), pp. 105-117.

Rhett DePauw, February 28, (2019) - Using Performance Management and ERP data - Arcoro Construction HR software. https://arcoro.com/performance-management-erp/

ROUTE ACCOUNTING SOLUTION- https://eostar.com/choosing-the-right-erp-for-distributors-a-how-to-guide/

UpKeep, (2023). Enterprise Resource Planning (ERP) Software. [Online].
Available at: https://www.upkeep.com/learning/enterprise-resource-planning-erp-software/
[Accessed 19 04 2023].









Location: RVXP+H7 McGraw Brook, NB, Canada

Comments

  1. Srimali MBA 202319 April 2023 at 16:12

    Hi dear Satheesh,
    This is a really great work . You have managed the many important facts in the article

    ReplyDelete
  2. Dakshini MBA blogs19 April 2023 at 19:50

    Actually I didn't know anything about ERP. This article is very helpful for me, and thank you satheesh.

    ReplyDelete
    Replies
    1. Satheesh19 April 2023 at 22:03

      Thank you for the comments. I have not spoken much about the ERP here as it may lead time different subject. I can share my knowledge with you on erp if you wanted so. I realise every thing as experience matters.

      Delete
  3. Satheesh19 April 2023 at 22:03

    Thank you for the comments. I have not spoken much about the ERP here as it may lead time different subject. I can share my knowledge with you on erp if you wanted so. I realise every thing as experience matters.

    ReplyDelete
  4. Raihana19 April 2023 at 23:55

    With the advent of information and technology, organizations are increasingly using many softwares for different aspects of an organisation. So it was great having to have read a blog regarding it. Thank you

    ReplyDelete
  5. L.D.Nilukasajeewani20 April 2023 at 06:36

    While thanking you for the above content sharing, as you mentioned, employee performance reviews should be conducted to advance and inspire employees. Appraisals also should be updated with new areas, and feedback should be given accordingly for them to overview where they stand for. Organizations should implement processes and practices to support employee performance with the benefits of people management, which ultimately improves productivity.

    ReplyDelete
  6. SABRY MBA blogs20 April 2023 at 12:22

    This comment has been removed by the author.

    ReplyDelete
  7. SABRY MBA blogs20 April 2023 at 12:39

    ERP solution is more strongly strengthen for industries and supply chines Great job Shathees, learning and unlearning most best things here are some things i would like to add in the basket 10 reason why companies need an ERP system
    1.need to increase efficiency.
    2.existing system don't do the job.
    3.we have got too many speardsheets.
    4.need better functionality.
    5.wants to minimise errors.
    6.consolidate our data and get real time info.
    7.need to gain ISO accreditation so we can move into new markets
    8.We have got no visibility of what's happening on the floor.
    9.want to increase the value of out organization and grow.
    10.Payroll management will become seamless and hassle free.
    The best you connect with HRM

    ReplyDelete
    Replies
    1. SATHEESH23 April 2023 at 20:44

      Wow, you added value for my lost. Thank you so much bro. Really appreciated

      Delete
  8. Himali MBA 202320 April 2023 at 16:05

    Good title and good content.
    Enterprise resource planning (ERP) is a software system that helps you run your entire business, supporting automation and processes in finance, human resources, manufacturing, supply chain, services, procurement, and more.

    ReplyDelete
  9. Madhumali Thilakarathna (madhuHR Cure Blog)22 April 2023 at 05:12

    To succeed in today’s increasingly competitive and complex business environment, you need to put systems in place that allow you to easily streamline, automate, and scale. This resource will put you on the right track toward choosing, implementing, and managing an ERP system at your organization (Epico, 2018).

    As a my point of view, in the reference list, publication year should be in the round brackets .

    ReplyDelete
    Replies
    1. SATHEESH23 April 2023 at 20:46

      This comment has been removed by the author.

      Delete
    2. SATHEESH23 April 2023 at 20:48

      Hi Madhumali, thank you for your comment. Especially for the reference list year matter. I went thru Fazal session notes and there i saw without brackets. Can u please reconfirm the brakets are must. see below from Fazal notes...
      CENTRAL BANK OF SRI LANKA, 2023. CENTRAL BANK OF SRI LANKA. [Online]
      Available at: https://www.cbsl.gov.lk/en/news/concessionary-measures-to-msme-and-individuals-affected-by-present-macroeconomic-conditions
      [Accessed March 2023].
      Hayes, A., 2021. Investopedia. [Online]
      Available at: https://www.investopedia.com/ask/answers/062615/what-difference-between-deposit-multiplier-and-money-multiplier.asp
      [Accessed March 2023].

      Delete
  10. Mafaz24 April 2023 at 06:57

    Hi Satheesh, thank you for sharing a valuable topic that is important for an organization to grow. Even in my company, we had to change our current system to manage the CRM and HR-related functionality.
    Employee approval is more important to retain and motivate them.
    Great job

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  11. Himani MBA 202324 April 2023 at 12:03

    Great content and good job.

    ReplyDelete
  12. Nilushi25 April 2023 at 15:11

    Satheesh, Its perfect and very good work. well done.

    ReplyDelete
  13. FazilMBA202325 April 2023 at 22:52

    As an external quality management system auditor, I have seen that many companies are using different ERP systems, especially for finance, purchasing, warehouse, and supply chain departments. HRM applications are very rare. They have the available HR ERP options in their system, but HRM applications are rare. This is a really great blog post about the ERP application in HRM.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  14. Sameer MBA 202326 April 2023 at 01:44

    Satheesh, we can do 360 degree performance evaluation for all staff, it will helps to identify the performance in different angles

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  15. Vinojkanth 26 April 2023 at 10:34

    Great work satheesh. Performance appraisals would be required to motivate the employees as well as the management. ERP System is essential one. Every company should work on that. Thanks for sharing

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  16. Bhagya Joseph26 April 2023 at 16:33

    Its a comprehensive blog which provide valuable information. I experience using ERP System in my work place for finance, purchasing, warehouse and supply chain departments which makes our work so easy. I learnt more from this blog. Thank you for sharing

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  17. Rubinie Rajendran27 April 2023 at 22:00

    Well explained, ERP software can help businesses and companies that are experiencing blind spots gain valuable insight into their employee onboarding system, manufacturing line, inventory, budget, or whatever other processes they may require.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:32

      Thank you for your valuable comments. it mean to me alot.

      Delete
  18. Kanishka Buddika28 April 2023 at 00:08

    Satheesh,Very useful topic,Enterprise Resource Planing (ERP),if any company using ERP software they can covered all the needed section and improve their success.thanks for sharing.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:33

      Thank you for your valuable comments. it mean to me alot.

      Delete
  19. Dhanusha Rodrigo28 April 2023 at 22:56

    Gathered some valuable Information and contents are really useful

    ReplyDelete
  20. Dilrukshimba1 May 2023 at 00:35

    Useful topic and content.. Although the systems available 100%correct procedures not adopted to organizational. Thus creates unsatisfied employees

    ReplyDelete
  21. Dilrukshimba1 May 2023 at 00:35

    Useful topic and content.. Although the systems available 100%correct procedures not adopted to organizational. Thus creates unsatisfied employees

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:33

      Thank you for your valuable comments. it mean to me alot.

      Delete
  22. Thusitha kumara2 May 2023 at 01:30

    lot of organization fails to implement ERP's and evaluate the productivity of it bcz , not focusing the handling capability and the training . top management must understand the priority needs before go to the rollout . that is where leadership theories coming in to HRM platform. well explained article satheesh .

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:33

      Thank you for your valuable comments. it mean to me alot.

      Delete
  23. Lionel Perera2 May 2023 at 17:52

    Excellent mr sathees. Well done

    ReplyDelete
  24. Amila Devapriya2 May 2023 at 22:11

    Overall, your post is well-written and provides valuable insights for HR professionals and business leaders. With the increasing use of technology in the workplace, it is essential for organizations to stay up to date with the latest performance management tools and techniques in order to optimize employee performance and drive business success.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:33

      Thank you for your valuable comments. it mean to me alot.

      Delete
  25. Mahinda MBA3 May 2023 at 05:52

    Your ERP subject opened my limited knowledge towards HRM softwares ,this will really help to develop Knowledge and search latest HRM softwares like ATS (application tracking system )

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:33

      Thank you for your valuable comments. it mean to me alot.

      Delete
  26. MOHAMED RAHMATH RALLY3 May 2023 at 12:33

    its very good and informative article

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:34

      Thank you for your valuable comments. it mean to me alot.

      Delete
  27. Janith4 May 2023 at 07:24

    Good Valuable % Informative

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:34

      Thank you for your valuable comments. it mean to me alot.

      Delete
  28. Dakshini MBA blogs4 May 2023 at 10:59

    this is a very useful topic in this HRM field and this post very valuable.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:34

      Thank you for your valuable comments. it mean to me alot.

      Delete
  29. Saman_Peopleorganizationalmanagement 20235 May 2023 at 05:18

    Evaluation of performances is a key thing to develop an employee.well explained.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:34

      Thank you for your valuable comments. it mean to me alot.

      Delete
  30. Malinda Lakmal5 May 2023 at 07:26

    Hi Satheesh

    This is very important blog for my self I can apply some points from this to my current position as well

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:34

      Thank you for your valuable comments. it mean to me alot.

      Delete
  31. SATHEESH5 May 2023 at 11:34

    Thank you for your valuable comments. it mean to me alot.

    ReplyDelete

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