Human Resources (HR)


What is SAP HR?

Human Resources are one of the prominent elements in an organization. There are various critical processes handled by the HR unit. Therefore, there is a dire need to provide an atmosphere of efficiency to their functionalities. This brings us to the tool called SAP HR or SAP Human Resources. 

The functionalities of the HR unit of an organization extend to the tasks mentioned below:

  • Personnel administration
  • Payroll processing
  • Managing employee details
  • Time management
  • Organizational management and a lot more 

With the help of the SAP ERP and its modules, streamlining the functionalities has become simple. The SAP HR module facilitates personnel administration by managing job history, personal details, and so on. Similarly, organizational management involves managing the structure, positions, and hierarchy in the company.

There is also the payroll feature which enables the team to handle all the payroll and salary-related matters with ease. The SAP HR module also comprises the talent management component. This takes care of the recruitment process, performance management, and other such tasks. 

In other words, the SAP HR module is a holistic coverage of all the activities assigned to the HR workforce. Furthermore, it also aims to align both, the company objectives and HR strategies. This way, it enhances the decision-making process and aids overall growth.

Inclusions of the SAP HR Module

Understanding the SAP HR submodules and the other associated components will make it easier for us to dig deeper into the topic. This section takes us to the various submodules of the SAP Human Resources module. Let’s take a look:

Human Resources (HR)

Organizational management

This is one of the most critical submodules of SAP HR. This is because the submodule aims to represent the organizational plan and conduct a thorough analysis. Additionally, it also helps in analyzing the existing plan to understand if there is room for improvement and new changes.

Overall, the submodule concerns itself with bringing about better workflow management.

Personnel Administration

As the name suggests, this submodule is involved with recording and storing the essential information of all the employees. With a solid database of all the employee information, it aims to achieve various operations such as hiring, maintaining travel expenses, managing personnel data, and payroll.

Time Management

For continuous growth and productivity, it is essential that organizations keep track of their employee’s work hours. The knowledge of the amount of time spent by employees in diverse official activities helps companies to define new targets and goals. Moreover, it also helps them understand the efficacy of their existing workforce and their weaknesses.

For this purpose, SAP HR offers a submodule – Time Management. This submodule assists the companies with the following tasks:

  • Time evaluation
  • Shifts
  • Employee Attendance
  • Absence


The next submodule under the SAP HR module is Payroll. This one helps the HR unit manage the following activities with ease:

  • Benefits
  • Wages
  • Overtime
  • Medical benefits
  • Taxes

Personnel Development

It is a known fact that the better the talent pool higher the growth and productivity of a business. This is the fundamental reason businesses keep evaluating and honing the skillset of their employees. This is an ongoing process and requires thorough attention. 

The personnel development submodule of the SAP HR achieves just that. The main objective of this feature is to maximize the employees’ performance to achieve the best outcomes possible.

Things to consider While implementation of SAP HR Module

SAP HR implementation can require serious considerations around the following points:

Company objectives: Define company objectives to ensure that the right modules are implemented on the SAP system for business use. Analyze if your business needs payroll solutions or seeks to improve talent management. If these are certain requirements of your business, then implementing SAP HR could be a boon.

Integration with other systems: Understand if the SAP HR module must integrate with other systems like finance and CRM. Examine the procedure to carry out a smooth integration.

Continuous Improvement: Businesses must keep a watch on the performance of the HR module. They must also gather feedback from the users. With a regular assessment of the system’s efficiency for further optimization.

The implementation of the SAP HR module can be beneficial to organizations when these considerations are addressed

How will BPX help implement SAP HR Module?

Logistics Execution (LE) - How will BPX help Implement

The steps involved in implementing SAP HR by BPX are as follows:

1. As-Is Process

This is the stage where BPX studies and researches the existing process of the business.

2. Business Blueprint (Gap-Fit & To-be)/ SAP functional specification document

Once the as-is analysis is complete, BPX moves ahead with creating a business blueprint. This document aligns with the to-be process.

3. Master Data Migration/ Item Master Configuration

BPX also oversees the migration and configuration of the item master from the old or legacy system to the new one.

4. System Configuration / Realization (as per To-Be) along with customization

BPX facilitates system configuration along with customization for businesses. 

5. UAT

User Acceptance Testing is the phase where BPX collects feedback from the users who have attempted to work on the new system.

6. Go-Live Preparation (update as per feedback during UAT)

This is the stage where the BPX prepares for the release of the system. Based on the user feedback from the previous stage, there could be some more changes implemented. 

7. Go-Live

The SAP HR module finally goes live for real users and managers.

8. After Go-Live Support

There may be certain issues that may come up after the implementation of the system. BPX comes to the rescue of the users in such cases.


The SAP HR or Human Resources module is also known as SAP HCM — Human Capital Management. It is designed to streamline and automate various human resource management processes. It involves the following functions:

  • personnel administration
  • organizational management
  • time management
  • payroll processing
  • talent management

It is an essential module that helps centralize employee data and optimize workforce planning. It also oversees accurate payroll calculations. Besides this, it also enhances employee engagement by providing self-service options. Furthermore, SAP HR aims to align HR strategies with business goals. In many ways, it supports informed decision-making regarding the organization’s workforce.

The SAP HR module simplifies and enhances payroll processing to an incredible extent. It achieves this by automating tasks related to salary calculations, tax deductions, and benefits administration. It integrates with time management to accurately capture working hours and attendance data. Employee master data is used to ensure accurate calculations. 

This way, it takes into account salary components, bonuses, deductions, and other variables. Additionally, legal and regulatory requirements are built into the system to ensure compliance. The module generates pay slips, tax forms, and other necessary documents. With the automation of these processes, SAP HR reduces manual errors and saves time. In other words, it provides a reliable platform for accurate and efficient payroll management.

The SAP HR module facilitates talent management effectively for businesses. There are features like recruitment, training, and performance management. It also facilitates succession planning. It aids in retaining skilled employees. There are provisions for providing training and development for the existing employees.

The module assists in posting job vacancies and managing applications. It also takes care of interviews and helps in the selection of candidates. Furthermore, the module helps create and track training programs. In a way, these are steps to enhance employee skills and competencies. 

Performance management functionalities in the module allow for setting goals, conducting appraisals, and providing feedback. Additionally, succession planning helps identify high-potential employees and prepares them for leadership roles. These are essential phases that ensure a continuous pipeline of capable leaders within the organization.

The SAP HR module offers self-service capabilities for both employees and managers. Through employee self-service or ESS, employees can update their personal information and also view their pay slips. Additionally, they can submit leave requests and manage their own data. Manager self-service or MSS enables managers to accomplish the following:

  • view team information
  • approve leave requests
  • conduct performance appraisals
  • handle other HR-related tasks for their team members

These self-service functionalities empower employees and managers to access and manage HR information. As a result, this reduces administrative workload for HR personnel and increases efficiency in day-to-day HR operations.

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