COMPARITIVE STUDY OF HUMANRESOURCE MANAGEMENT SYSTEM
SOFTWARE BEING USED IN INDUSTRY ANDDEVELOP A SUITABLE SOFTWARE MODEL
FOR INDIAN INDUSTRY
ByMALLIKA SRIVASTAVA
Under Guidance ofProf G.N.Pandey
THESIS
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF TECHNOLOGY IN
INFORMATION TECHNOLOGY (SOFTWARE ENGINEERING)
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY, ALLAHABAD
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
II
COMPARITIVE STUDY OF HUMANRESOURCE MANAGEMENT SYSTEM
SOFTWARE BEING USED IN INDUSTRY ANDDEVELOP A SUITABLE SOFTWARE MODEL
FOR INDIAN INDUSTRY
DISSERTATION
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE DEGREE OF
MASTER OF TECHNOLOGY IN INFORMATION
TECHNOLOGY
(Specialization in Software Engineering)
Under the Supervision of Submitted By Prof. G.N.Pandey Mallika Srivastava IIIT, Allahabad M. Tech. (IT) Spl. in Software Engineering Fourth Semester MS200509
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD III
Date: ______________
I DO HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER
MY SUPERVISION BY MALLIKA SRIVASTAVA ENTITLED
Comparative study of Human Resource Management Software
being used in industry and develop a suitable software model for
Indian industry BE ACCEPTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS OF THE DEGREE OF MASTER OF TECHNOLOGY
IN INFORMATION TECHNOLOGY Specialization in Software
Engineering .
COUNTERSIGNED
Prof. U.S. Tiwary
DEAN (ACADEMIC)
(Prof. G.N.Pandey)
THESIS ADVISOR
IINNDDIIAANN IINNSSTTIITTUUTTEE OOFF IINNFFOORRMMAATTIIOONN TTEECCHHNNOOLLOOGGYYAAllllaahhaabbaadd
(Deemed University)
(A Centre of Excellence in Information Technology Established by Govt. of India)
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD IV
CERTIFICATE OF APPROVAL*
The foregoing thesis is hereby approved as a creditable study in the area of
Information Technology carried out and presented in a manner satisfactory to
warrant its acceptance as a pre-requisite to the degree for which it has been
submitted. It is understood that by this approval the undersigned do not
necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the thesis only for the purpose for
which it is submitted.
COMMITTEE ON
FINAL EXAMINATION
FOR EVALUATION
OF THE THESIS
*Only in case the recommendation is concurred in
IINNDDIIAANN IINNSSTTIITTUUTTEE OOFF IINNFFOORRMMAATTIIOONN TTEECCHHNNOOLLOOGGYY
AAllllaahhaabbaadd
(Deemed University) (A Centre of Excellence in Information Technology Established by Govt. of
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD V
IINNDDIIAANN IINNSSTTIITTUUTTEE OOFF IINNFFOORRMMAATTIIOONN TTEECCHHNNOOLLOOGGYYAAllllaahhaabbaadd
(Deemed University)
(A Centre of Excellence in Information Technology Established by Govt. of India)
DECLARATION
This is to certify that this thesis work entitled Comparative study of
Human Resource Management Software being used in industry
and develop a suitable software model for Indian industry” which
is submitted by me in partial fulfillment of the requirement for the
completion of M.Tech in Information Technology Specialization in
Software Engineering to Indian Institute of Information Technology,
Allahabad comprises only my original work and due acknowledgement
has been made in the text to all other materials used.
Mallika SrivastavaSoftware Engineering
MS200509
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD VI
Abstract
Today is the era of globalisation in all the fields and verticals, be it
Agriculture, Manufacturing, Retail or Service sector. The stiif competitive globalised
environment has cropped up lot of geopolitical and economic uncertainities. The Global
is now more customer centric shifting the focus from product to customer. They now
prefer to respond to customers more efficiently so as to provide the timed value added
products and services because that has the major base for competitive advantage. Now
the businesses want to increase revenue and profitability, while decreasing costs,
optimizing resource utilization and tightening corporate governance. The buzz words Just
in Time, Six Sigma and Lean are now more frequent in corporate dynamics. For this
adaptation of an efficient ERP systems to support the various business prospects has
become necessary as IT has become the enabler for survival, innovation and growth and
is the key driving factor for organization’s competitiveness.
So there is the need for detail study of Enterprise Resource Planning software provided
by different vendors across the globe and incorporate the system in developing countries
like India to facilities there economy by having a tool which provides utilities like
monitoring, control, reevaluating powers to one of the most costlier resource; Human.
This thesis involves detailed study of the two approaches
1. As indicated and practiced by SAP (Systems Application and Products) Human
Resource Management, which has universal applicability with a degree of
confidence in various large scale manufacturing and business activity.
2. And Human Resource Management package as developed and implemented In-
house like IFFCO (Indian Farmer Fertilizer Cooperation Limited), which is one of
the global player in fertilizer production and distribution in India.
Based on the comparative study model software is developed during this investigation
work which provide a platform for human resource services that can be used by two types
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD VII
of users, general employee and administrator. Here term “Human Resource Management
System” stands for those services that an organization provides to their employees.
Employees may use this platform to fill their personnel, job specific detail and appraisal
forms. This platform provides these main functionalities to the users.
• Add Employee Record: New selected candidate’s record will be added in
employee database by administrator, which covers all details like personnel
(name, address, sex, etc), qualification, medical, job role etc.
• Edit Employee Record: Only administrator has the right to edit employee detail.
• Assign Organization Role: According to qualification and specialization each and
every employee has assigned role in the organization hierarchy.
• Employee Appraisal: Every employee will fill their appraisal for required period
of time, which will be reviewed by three different senior grade employees after
appraising by immediate reporting officer. Finally employee’s appraisal will be
accepted by accepting authority.
• View and Search Employee Record: Employee may view and search any
employee’s record.
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD VIII
Acknowledgement
I am highly grateful to the honorable Director, IIIT-Allahabad, Prof. M. D. Tiwari,
for his ever helping attitude and encouraging us to excel in studies. Besides, he has been a
source of inspiration during my entire period of M.Tech at IIITA.
I acknowledge to all those who have contributed significantly in helping me during the
development process of my project. I would express my deep and sincere gratitude to my
supervisor Prof. G. N. Pandey under whom I learn the basics of software development
and her guidance must be treated with a warm indulgence. Her glimpse of steering
throughout development is unavoidable.
I would like to thank all my faculty members who taught us different subjects in Software
Engineering to make a strong understanding of actual software development
methodologies. I acknowledge them with a sincere gratitude for all the help, resources,
support they provided me.
This acknowledgement will not complete until I pay my respectful homage to my familyespecially my parents, whose enthusiasm to see this work complete was as infectious astheir inspiration.
Mallika Srivastava
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD IX
Acronyms
ERP Enterprise Resource Planning
HRM Human Resource Management
HRMS Human Resource Management System
IFFCO Indian Farmer Fertilizer Corporation Limited
ONGC Oil and Natural Gas Corporation Limited
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD X
Table of Content
ABSTRACT……………………………………………………………..… [VI-VII]
ACKNOWLEDGEMENT………………………………………………... [VIII]
ACRONYMS……………………………………………………………… [IX]
LIST OF FIGURE……………………………………………………….... [XIII]
LIST OF TABLE………………………………………………………….. [XIV]
1. INTRODUCTION………………………………………………….… [1-6]1.1 OVERVIEW……………………………………………………………….… [1]
1.2 PROBLEM STATEMENT…………………………………………..…….… [2]
1.3 MOTIVATION………………………………………………………………. [2-4]
1.4 ADVANTAGES OF ERP …………………………………………………… [4]
1.5 LIMITATION OF ERP ………………………………………………………. [4-5]
1.6 COST OF ERP ……………………………………………….………………. [5]
1.7 SCOPE OF PRESENT INVESTIGATION………………………………..…. [5-6]
2. LITERATURE SURVEY……………………………………………… [7-18]2.1 OVERVIEW…………………………………………………………………… [7]
2.2 HISTORY……………………………………………………………………… [7-10]
2.3 MAJOR REASONS FOR ERP………………………………………………… [10]
2.4 HUMAN RESOURCE MANGEMENT SYSTEM………………………......... [10-14]
2.4.1 LEADING VENDOR SAP………………………………………….... [11-14]
2.4.1.1 HISTORY…………………………………………………… [11-13].
2.4.1.2 SAP-HUMAN RESOURCE MANAGEMENT OVERVIEW [13-14]
2.5 FRAMEWORK……………………………………………………………….… [14-17]
2.5.1 FRAMEWORK BY RAMSUMAIR SINGH ………………………… [14-15]
2.5.2 ACCENTURE FRAMEWORK………………………………………. [15-16]
2.5.3 PROPOSED FRAMEWORK…………..…………………………….. [16-17]
2.6 CRITICAL LITERATURE REVIEW………………………………………….. [17-18]
3. PLAN OF ACTION…………………………………………………….. [19-38]
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD XI
3.1 PROBLEM……………………………………………………………………... [19-20]
3.2 SUGGESTION……………………………………………………………. [20]
3.3 SAP IMPLEMENTATION BY OIL AND NATURAL GAS CORPORATION
LIMITED………………………………………………………………….. [20-30]
3.3.1 OVERVIEW……………………………………………………… [20-21]
3.3.2 TECHNOLOGY………………………………………………..… [21-26]
3.3.2.1 SAP R/3……………………………………….. [22]
3.3.2.1 ARCHITECTURE………………………….…. [22-23]
3.3.2.2 LANGUAGE………………………………..… [23]
3.3.2.3 DATA MODEL AND SCHEMA……………... [23-24]
3.3.2.4 TRANSACTION PROCESSING IN SAP……. [24-25]
3.3.2.5 MAIN-MEMORY MANAGEMENT……….… [25-26]
3.3.3 IMPLEMENTATION PHASE…………………………………… [26]
3.3.4 MODULES……………………………………………………….. [26-27]
3.3.5 PERFORMANCE ……………………………………………….. [27-28].
3.3.6 QUALITY ATTRIBUTE………………………………………… [28-29]
3.3.7 BENEFITS OF HRMS…………………………………………… [29]
3.3.8 HIGHLIGHTED AREAS………………………………………… [29-30]
3.3.8.1 RED AREA……………………………………. [29]
3.3.8.2 GRAY AREA………………………………….. [29]
3.3.8.3 GREEN AREA…………………………………. [30]
3.4 IN-HOUSE DEVELOPMENT BY INDIAN FARMER FERTILIZER CORPORATION
LIMITED……………………………………………………………………. [30-39]
3.4.1 OVERVIEW……………………………………………………….. [30-31]
3.4.2 TECHNOLOGY…………………………………………….……… [31-41]
3.4.2.1 ARCHITECTURE………………………………………... [31-32]
3.4.2.2 DEVELOPER 2000…………………………..….………... [32-33]
3.4.2.3 ORACLE 8I………………………………….……………. [33]
3.4.2.4 ORACLE 9IAS…………………………………………… [33-34]
3.4.3 IMPLEMENTATION PHASES………………………………….… [34]
3.4.4 MODULES……………………………………………………….…. [34-35]
3.4.5 SECURITY……………………………………………………..…… [35]
3.4.6 PERFORMANCE……………………………………………………. [35-36]
3.4.7 QUALITY ATTRIBUTE TABLE…………………………………... [36-37]
3.4.8 BENEFITS OF HRMS………………………………………………. [37]
3.4.9 HIGHLIGHTED AREAS…………………………………………… [37-38]
3.4.9.1 RED AREA………………………………………. [38]
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD XII
3.4.9.2 GRAY AREA………………………………..……. [38]
3.4.9.3 GREEN AREA…………………………………..… [38]
4. RESULTS AND DISCUSSION………………………………………… [39-54]4.1 COMPARISON…………………………………………………………………. [39-43]
4.1.1 SOFTWARE DEVELOPMENT LIFE CYCLE………………………. [39-40]
4.1.2 QUALITY ATTRIBUTE……………………………………………… [40-41]
4.1.3 PRODUCTIVITY……………………………………………………… [41-42]
4.1.4 PERFORMANCE……………………………………………………… [42-43]
4.2 SYSTEM DESIGN AND IMPLEMENTATION ISSUE……………………….. [43-47]
4.2.1 ARCHITECTURE DESIGN…………………………………………… [43-44]
4.2.2 CLASS DIAGRAM…………………………………………………….. [44-46]
4.2.3 TECHNOLOGY………………………………………………………… [46-47]
4.2.3.1 LANGUAGE: VISUAL BASIC .NET………………………... [46]
4.2.3.2 FRONT END: .NET FRAMEWORK …………………. [47]
4.2.3.3 BACK END: ORACLE 10G………………………………….. [47]
4.3 INTERFACES……………………………………………………………………. [47-54]
4.3.1 EMPLOYEE LOGIN………………………………………………….… [48]
4.3.2 ADMINISTRATOR LOGIN………………………………..………….. [48-49]
4.3.3 ADDING NEW EMPLOYEE RECORD………………………………. [49-51]
4.3.4 ASSIGN ROLE…………………………………………………………. [52]
4.3.5 EMPLOYEE APPRAISAL………………………………………….….. [52-54]
5. CONCLUSION ……………………...…………………………..……… [55-57]5.1 CONCLUSION………………………………………………………………….. [55-56]
5.2 ADVANTAGES……………………………………………………..………….. [56]
5.3 LIMITATION……………………………………………………………………. [56-57]
5.4 SCOPE FOR FURTHER DEVELOPMENT……………………………………. [57]
BIBLIOGRAPHY………………………………………………………….… [58-60]
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD XIII
List of Figure
1. FRAMEWORK BY RAMSUMAIR SINGH…………………………………….. [15]
2. ACCENTURE FRAMEWORK………………………………………………….. [16]
3. PROPOSED FRAMEWORK…………………………………………………..… [17]
4. SAP R/3 ARCHITECTURE…………………………………………………….... [22]
5. DATABASE INTERFACE OF ABAP………………………………………….... [24]
6. ARCHITECTURE OF APPLICATION SERVER…………………………….…. [25]
7. ONGC PERFORMANCE GRAPH ………………………………………….…... [28]
8. THREE TIER ARCHITECTURE…………………………………………….….. [32]
9. EMPLOYEE PRODUCTIVITY GRAPH…………………………………….…. [42]
10. NET PROFIT GRAPH…………………………………………………………. [42]
11. PROPOSED ARCHITECTURE……………………………………………..… [43]
12. EMPLOYEE LOGIN…………………………………………………………… [48]
13. ADMINISTRATOR LOGIN…………………………………………………… [49]
14. PERSONNEL RECORD……………………………………………………….. [49]
15. ADDRESS DETAIL………………………………………………………….… [50]
16. MEDICAL AND REFERENCE DETAIL……………………………………... [51]
17. QUALIFICATION AND LANGUAGE DETAIL………………………….….. [51]
18. ASSIGN ROLE…………………………………………………………………. [52]
19. SELF ASSESMENT………………………………………………………….... [53]
20. PERFORMANCE ASSESMENT…………………………………………….... [53]
21. REVIEWING APPRAISAL……………………………………………………. [54]
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD XIV
List of Table
1. ERP VENDORS RENKED BY 2004 REVENUE ……………………………... [3]
2. HISTORY OF ERP ………………………………………………………….….. [8-10]
3. HISTORY OF SAP……………………………………………………………... [11-13]
4. QUALITY TABLE OF ONGC…………………………………………….…... [28-29]
5. PERFORMANCE TABLE OF IFFCO ………………………………..…..…... [36]
6. QUALITY TABLE OF IFFCO ………………………………………………... [36-37]
7. DEVELOPMENT PHASE OF IFFCO AND ONGC………………………….. [39-40]
8. QUALITY ATTRIBUTE………………………………………………………. [40-41]
9. CLASS DESCRIPTION……………………………………………………… [45-46]
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD 1
Chapter 1
Introduction
This Chapter presents an overview of the thesis; it starts with describing theproblem statement and ends with the scope of present investigation.
1.1 OverviewEnterprise Resource planning is a concept with a global acceptability and covering all
sectors of economy including Manufacturing, Agriculture and service sectors. It is
consider as a potential concept for integration of Human Resource Management,
Financial Management, Sales, Purchase, Inventory and Manufacturing be it industry
dealing with Manufacturing, Teaching Institutions including university dealing with
teaching and research, Agriculture sector dealing with agriculture and related activities,
Service sector dealing with government etc. It is also well established that all the four
components-Human Resource Management, Sales, Purchase and Inventory as well as
area of activity are involved everywhere. In the real system, all the four exists together
and not in isolation. The key area out of four involve in management is Human Resource
Management.
Human Resource, are the most precious resource of any organization and forms its
backbone. There is always a team of highly dedicated workforce, committed to its goal
that makes any organization successful. It is end goal of all economic activities together
with prime mover. Proper Manpower planning, their future growth, development needs
and fulfillment of day-to day requirement are vital for the prosperity and health of any
organization. Most successful organization has devised ways to keep their human
resource highly satisfied and makes them participative in crucial matter related to the
organization. Computerized systems are being used to this effect in a big way.
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD 2
1.2 Problem StatementThe most precious resource of an organization, which forms its backbone, is its Human
Resource. Behind every successful organization there is a team of highly dedicated
workforce committed to its goal that makes the difference. Human Resource is not only
the prime mover of all economic activities but also the end goal of such activities. Proper
Manpower planning, their future growth, development needs and fulfillment of day-to
day requirement are vital for the prosperity and health of any organization. Most
successful organization has devised ways to keep their human resource highly satisfied
and makes them participative in crucial matter related to the organization. Computerized
systems are being used to this effect in a big way.
It is challenging because:
1. Human are most important and costly assert of any/every organization.
2 It is strategic component, which provides competitive advantage.
Therefore the end objective of this thesis is to study in detail the two approaches
• As indicated and practiced by SAP (Systems Application and Products) Human
Resource Management, which has universal applicability with a degree of
confidence in various large scale manufacturing and business activity.
• And Human Resource Management package as developed and implemented In-
house like IFFCO (Indian Farmer Fertiliser Cooperation Limited), which is one of
the global player in fertilizer production and distribution in India.
After studying both in detail and considering Indian Scenario, a model program will be
presented for Human Resource Management for middle and small industrial scale dealing
with production and distribution.
1.3 MotivationThe importance of Human Resource Management is exponentially growing because of
globalization which require cross culture interest to promote motivation and subsequently
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
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productivity considered to be two potential factors for global competitiveness for
productivity, cost and quality. For all the three Human Resource is most important
contributing factor. The concept of Enterprise Resource Planning was introduce much
earlier, However it received impertinent only when networking become reality,
subsequently with cost and time required for implementation, varying from 18-24
months, The Enterprise Resource Planning did receive a setback but with growing
realization of its importance as integrating tool of finance, Human Resource, Sales,
Purchase, Inventory. Its importance again received global acceptability especially since
2000; its importance is growing in the global market.
2004
RevenueRank
CompanyName
Revenue2003
Revenue2004
Revenue2005Forecast
RevenueShare2003
RevenueShare2004
RevenueShare2005Forecast
1 SAP 7994 9372 10403 39% 40% 43%2 PeopleSoft 2682 2880 0 13% 12% 0%3 Oracle* 2470 2465 4534 12% 10% 10%4 Sage Group 900 1243 1375 4% 5% 6%5 Microsoft
Businesssolution
683 775 891 3% 3% 4%
*Oracle Acquired PeopleSoft on December 28, 2004 Source: AMR Research, 2005
Table 1.1: ERP vendors ranked by 2004 ERP revenue
The above table clearly indicates that SAP is No.1 as per revenue is
concern. But India is a growing economy, it is not possible for all the organization
especially medium size and small size, which are very large in number in India as well as
other developing countries in the world, it is not possible to adapt SAP, in their area of
operation. With globalization based on networking, the development of small scale and
medium scale industry are also growing. The concept of Enterprise Resource Planning is
yet to take a shape in government, agriculture and universities even with reservoir of
talents available with them. Obviously, one way to propagate the application of
Enterprise Resource Planning software in developing countries is to have in-house
development of software and for this purpose Indian Farmers Fertilizer Cooperative
Limited (IFFCO), which is a global player in Fertilizer manufacturing and distribution
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
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has taken initiative to develop their own software. Obviously , when the software is
develop in-house, it is possible to have total integration, scale-up ,scale-down as the need
arises, modification specially to intensify distribution network, a special requirement for
globalization.
1.4 Advantages of ERPSome of the basic advantageous of ERP are
• Unified database
• Integrated System
• Improved customer service
• Higher quality, lesser re-work
• Better Employee satisfaction
• Improve Employee productivity
Industry ExampleNorm Civata Co. was founded in 1973 to prevent Turkey's dependency on foreign
sources in the field of fastening components and has now become the industry leader,
supplying 70 % of the total bolt and fastener production in Turkey today. The leadership
of Norm Civata Co. has been oriented by CANIAS ERP. The flexible and integrated
structure of CANIAS ERP and the unique TROIA language has brought significant
advantages to successful work up to now. [22]
1.5 Limitation of ERPTwenty percent of all IT projects are cancelled prior to deployment and 40% fail to meet
budget, schedule and requirement goals. Also, due to organization’s low-tolerance for
failure in IT budgets, risk-adjusted analysis is a critical element. Risk may be measured
based on the probability of occurrence, and the likely impact on the costs and benefits.
The risk measurement for HRM projects typically include items such as:
• Labor resource availability
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD 5
• Slow or low user acceptance/adoption
• Compatibility with existing or future systems
• Vendor reliability
• Management commitment and funding
• Schedule overruns or delays
• Legal exposure or regulation non-compliance
• Organizational risks
• Dependencies on other projects
1.6 Cost of ERPThe Total Cost of Ownership (TCO) of ERP includes hardware, software, professional
services, and internal staff costs etc. It also include getting the software installed and then
afterward, which is when the real costs of maintaining, upgrading and optimizing the
system for specific organization are felt.
1.7 Scope of Present InvestigationIndia economy is heavily dominated by tiny, small and middle scale sectors. India had a
close market in first, second, third, fourth five years plans. India started moving to
globalization partly because of their initiative and partly because of WTO. Obviously
there is a cut through competition in the global market because of relatively better quality
and cost. The focus of India was to provide job to unemployed as well as to meet the
local requirement. With the opening of market at global level, India started moving
towards globalisation with real concern for quality and cost through productivity,
automation etc . The basic purpose of this dissertation is to develop a model software
program for human resource management system. And making available to tiny, small,
middle as well as large scale sector where the position of availability of finance resources
is limiting.
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD 6
It was decided to study in detail about SAP software used in Oil and Natural Gas
Corporation Limited (ONGC) where the entire software was taken from SAP, a global
player in an enterprise resource planning software. Considering as unique and because of
this reason it was divided to study them.
Indian Farmer Fertilizer Corporation Limited (IFFCO) is a global player in fertilizer
industry especially di-ammonium phosphate as well as uranium. It’s a profit making
organization and holding their status in global market. The approach of IFFCO is also
unique because they are developing their own software for enterprise resource planning
and naturally it will be easier for them to carry out addition, modification on the basis of
input from various operating industrial unit under their control.
After going through the software developed by IFFCO & understanding ONGC on the
basis of limited information available due to trade secret, it was decided to develop the
model software program for human resource management system (HRMS). This software
model will have universal applicability especially in Indian scenario. Qualification of
HRM will had to higher degree of motivation in the country as well as other developing
countries that are not in a position to use the software provided by SAP & other global
player in the world.
COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT SYSTEM SOFTWARE BEING USED IN INDUSTRYAND DEVELOP A SUITABLE SOFTWARE MODEL FOR INDIAN INDUSTRY
INDIAN INSTITUTE OF INFORMATION TECHNOLOGY ALLAHABAD 7
Chapter 2
Literature Survey
The acronym "ERP" for Enterprise Resource Planning was defined in 1990 by
Gartner [6]. Gartner has introduced a new term to describe the enterprise systems for the
21st century: ERP II.
ERPII means open ERP architecture of component. Enterprise Resource Planning is a
term originally derived from Manufacturing Resources Planning (MRPII) that followed
Material Requirement Planning (MRP). MRP evolved in to ERP when “routine” became
major part of the software architecture and a company’s capacity planning activity also
become a part of the standard software activity.
2.1 OverviewEnterprise resource planning (ERP) is a concept which presents an integrated picture of
all organization application like Human Resource, Inventory, Finance, Sales and
Purchase etc. In today’s world of globalization, ERP is buzzword for organization, which
wants to survive in this competitive era. ERP integrates all data and process of an
organization in to a unified system and provide a centralized database. That is why a
typical ERP system will use multiple software and hardware components to achieve the
integration.ERP helps in management of vital resources like man, material and money. ERP presents
a single version of truth and standardizes business process as everyone uses the same
database. Implementation of ERP may be seen as enabler of business process re-
Engineering. Conventional wisdom suggests that organization may solve almost all
efficiency problems by implementing ERP.
2.2 Historical Perspective
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1960s Enterprise Resource Planning (ERP) is born in the early 1960s from a
joint effort between J.I. Case, the manufacturer of tractors and other
construction machinery, and partner IBM. Material Requirements
Planning or MRP is the initial effort. This application software serves
as the method for planning and scheduling materials for complex
manufactured products.
1970s Initial MRP solutions are big, clumsy and expensive. They require a
large technical staff to support the mainframe computers on which
they run.
1972 Five engineers in Mannheim, Germany begin the company, SAP
(Systems Applications and Products). The purpose in creating SAP is
to produce and market standard software for integrated business
solutions.
1975 Richard Lawson, Bill Lawson, and business partner, John Cerullo
begin Lawson Software. The founders see the need for pre-packaged
enterprise technology solutions as an alternative to customized
business software applications.
1976 In the manufacturing industry, MRP (Material Requirements
Planning) becomes the fundamental concept used in production
management and control.
1977 Jack Thompson, Dan Gregory, and Ed McVaney form JD Edwards.
Founders take part of their name to create the company moniker.
Larry Ellison begins Oracle Corporation.
1978 Jan Baan begins The Baan Corporation to provide financial and
administrative consulting services.
1979 Oracle offers the first commercial SQL relational database
management system.
1980 JD Edwards begins focusing on the IBM System/38 in the early
1980s. MRP (Manufacturing Resources Planning) evolves into MRP-
II as a more accessible extension to shop floor and distribution
management activities.
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1981 Baan begins to use Unix as their main operating system.
1982 Baan delivers its first software product. JD Edwards focuses on the
IBM System/38.
1983 Oracle offers both a VAX mode database as well as a database written
entirely in C (for portability).
1984 Baan shifts the focus of their development to manufacturing.
1985 JD Edwards is recognized as an industry-leading supplier of
applications software for the highly successful IBM AS/400
computer, a direct descendant of the System/38.
1986 PeopleSoft is founded by Dave Duffield and Ken Morris in 1987
1987 PeopleSoft’s Human Resource Management System (HRMS) is
developed.
1990 Baan software is rolled out to 35 countries through indirect sales
channels. The term ERP (Enterprise Resource Planning) is coined in
the early 1990's when MRP-II is extended to cover areas like
Engineering, Finance, Human Resources, and Project Management.
1991 PeopleSoft sets up offices in Canada. This leads the way to their
presence in Europe, Asia, Africa, Central and South America, and the
Pacific Rim.
1995 Baan grows to more than 1,800 customers worldwide and over 1,000
employees
1999 JD Edwards has more than 4,700 customers with sites in over 100
countries. Oracle has 41,000 customers worldwide (16,000 U.S.).
PeopleSoft software is used by more than 50 percent of the human
resources market. SAP is the world’s largest inter-enterprise software
company and the world’s fourth largest independent software supplier
overall. SAP employs over 20,500 people in more than 50 countries.
To date, more than 2,800 of Baan’s enterprise systems have been
implemented at approximately 4,800 sites around the world.
2000
and
Most ERP systems are enhancing their products to become “Internet
Enabled” so that customers worldwide can have direct access to the
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Beyond supplier's ERP system
Table 2.1: History of ERP[26]
2.3 Major Reasons for ERPThere are three major reasons why companies undertake ERP:
• To integrate financial, Human resource management, inventory, sales,
purchase and manufacturing data.
• To standardize manufacturing processes and other activities.
• To standardize Human Resource (HR) information.
The importance of Human Resource Management is exponentially growing because of
globalization which require cross culture interest to promote motivation and subsequently
productivity considered to be two potential factors for global competitiveness for
productivity, cost and quality. For all the three Human Resource is most important
contributing factor.
2.4 Human Resource Management SystemThe key supporting element in the management of organization is Human Resource
Management (HRM) function. HRM is the only responsible factor ensuring that the right
people are available at the right place and at the right time to execute corporate plans with
the highest level of quality i.e. manpower planning. But manpower planning is only a part
of not whole HRM however manpower planning is core of HRM supported by other
aspects of HRM.
Human Resource Management system presents integrated picture of all supporting the
planning and control of personnel activities. It provides a powerful tool for monitoring,
integrating, control and reevaluating human resource. It includes various activities related
with employee like: Recruitment, Training, Benefits and Compensation etc. HRMS has
both tangible and intangible benefits. Some tangible benefit areas include:
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• HR productivity improvements
• Employee and manager productivity improvements
• Overhead and outsourced service fee avoidance
• Compliance and error reduction
• Improve employee retention
• Strategic business impact
Intangible benefits are most difficult to quantify, but hold an important place. Some of
the intangible benefits
• Brand advantage
• Strategic advantage
• Competitive advantage
• Intellectual capital
• Organizational advantage
2.4.1 Leading Vendor (SAP)SAP is the leading vendor in world of ERP.SAP was founded in 1972 as Systems
Applications and Products in Data Processing. SAP is the recognized leader in providing
collaborative business solutions for all types of industries and for every major market.
Serving more than 36,200 customers worldwide, SAP is the world's largest business
software company and the world's third-largest independent software provider overall.
2.4.1.1 Historical PerspectiveOver the course of three decades, SAP has evolved from a small, regional enterprise into
a world-class international company.
1970s Five former IBM employees - Dietmar
Hopp, Hans-Werner Hector, Hasso
Plattner, Klaus Tschira, and Claus
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Wellenreuther -- launch a company called
Systems, Applications, and Products in
Data Processing in Mannheim, Germany.
Their vision is to develop standard
application software for real-time
business processing.
1971 First financial accounting software is
complete, known as the "R/1 system",
"R" stands for real-time data processing
1979 Birth of SAP R/2.
Start of the decade (1980s) Fifty of the 100 largest German industrial
firms are already SAP customers. SAP
designs SAP R/2 to handle different
languages and currencies.
Middle of the decade (1980s) SAP founds its first sales organization
outside Germany, in Austria. Revenues
reach DM 100 million (around $52
million)
August 1988 SAP GmbH becomes SAP AG.
Germany's renowned business journal,
manager magazine, names SAP its
Company of the Year
1990s SAP R/3 is unleashed on the market. The
client-server concept, uniform appearance
of graphical interfaces, consistent use of
relational databases, and the ability to run
on computers from different vendors
meets with overwhelming approval. With
SAP R/3, SAP users in a new generation
of enterprise software from mainframe
computing to the three-tier architecture of
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database, application, and user interface.
1996 The company has earned 1,089 new SAP
R/3 customers. SAP R/3 has been
installed in more than 9,000 systems
worldwide
1997 Employs approximately 12,900 people
1998 The letters S-A-P appear for the first time
on the Big Board at the New York Stock
Exchange (NYSE), the largest stock
exchange in the world.
2005 12 million users work each day with SAP
solutions. There are now 100,600
installations worldwide, more than 1,500
partners, over 25 industry-specific
business solutions, and more than 33,200
customers in 120 countries. SAP is the
world's third-largest independent software
vendor.
Table 2.2 : History of SAP[18]
2.4.1.2 Overview of SAP-HCMThe SAP Enterprise Resource Planning Human Capital Management (SAP ERP-HCM)
solution facilitate organizations of all sizes (large, middle, small) and in all industries
(like: university, Manufacturing, government sectors etc) to maximize workforce
potential, while supporting future innovation, growth, and flexibility. SAP ERP-HCM
helps to attract the right people, develop and leverage their talents, align their efforts with
corporate objectives, and retain top performers. And it helps to ensure that the right
people with the right skills are assigned to the right jobs at the right time.
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SAP ERP HCM automates talent management, workforce process management, and
workforce deployment, increasing efficiency and supporting compliance with changing
global and local regulations. Designed for global business, SAP ERP HCM supports
payroll functions, regulatory requirements etc for more than 45 countries. SAP ERP
HCM integrates with existing business systems, and customizes to meet requirements.
More than 9,500 organizations in over 70 countries around the world rely on SAP ERP
HCM to manage more than 60 million employees [18].
2.5 FrameworkFor comparing Human Resource Management software different frameworks are
proposed in different papers.
2.5.1 A Framework Suggested by Ramsumair SinghFramework proposed by Ramsumair Singh[1] consists of four different parts as given
below:
1) External environment: It consists of the envirnoment outside the organization that
includes Political system, economica systeml, legal industrial relation, education
culture, technology, labor and product markets etc.
2) Institutional structure process for HRM: It consists of all the HRM activities
required for managing human resource like collective and individual strategic
activities, selection performance appraisal etc
3) Desired optimal HRM outcome: It covers the required outcome, for which
management of human being is done like strategic integration commitment quality,
flexibility cost effectiveness.
4) Desired overall optimal performance: It is responsible for overall outcome at
organization level like organizational effectiveness employee-employee relationship
etc.
Framework proposed by Ramsumair singh[1] is given in fig 3.1.
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Fig 2.1: Framework by Ramsumair Singh [1]
External Institutional structure desired optional desired overallEnvironment and process for HRM HRM outcome optimal Performance Outcome
2.5.2 Accenture Framework The Accenture Human Capital Development Framework uses four distinct levels or tiers
of measurement in arriving at an assessment of an organization's human capital practices.
This framework consists of four different tiers that reflect the four key variables which
influence the relationship between a company's human capital assets and its financial
performance:
Politicalsystem
Economicsystem
LegalSystem
IndustrialRelationsystem
EducationalSystem
Culture
Technology
CollectiveandindividualStrategicactivities
SelectionPerformance
Appraisal
Collectivebargaining
Jointconsultation
Otherfunctionalactivities
Strategicintegration
Commitment
Quality
Feasibility
Cost
Effectiveness
Organizationeffectiveness
Congruence ofobjectives andperformance
Employeewell being
Harmoniousemployee-employerrelation ship
ManagementobjectivesandStrategy
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Tier 1, business results: consists of measures of organizational performance, such as
traditional financial analyses featuring sales growth, price earnings (P/E) ratio, and return
on capital.
Fig 2.2: Accenture Framework [19]
Tier 2, key performance drivers: are the intermediate organizational outcomes, such as
productivity, quality, innovation, and important customer metrics, including customer
satisfaction and customer retention.
Tier 3, human capital capabilities, consists of people-related qualities, including
employee attitudes and abilities, which are necessary for achieving critical business
outcomes.
Tier 4, human capital processes: core Human Resource processes like competency
management and performance appraisal together with broader human capital processes,
such as learning and knowledge management are included in this tier.[19]
2.5.3 Proposed Framework
Business Results Tier 1Economic Valueadded
P/E Ratio Sale Growth Return on capital
Key Performance Drivers Tier 2Productivity Quality Innovation Customers
Human Capital Capabilities Tier 3Leadership Workforce
ProficiencyWorkforcePerformance
EmployeeEngagement
WorkforceAdaptability
HumanCapitalEfficiency
Human Capital Processes Tier 4CompetencyManagement
CareerDevelopment
Performance
SuccessionPlanningLeadershipDevelopment
Recruiting
WorkforcePlanning
Leadership
RewardsAndRecognitions
EmployeeRelations
HumanCapitalstrategy
LearningManagement
KnowledgeManagement
Human CapitalInfrastructure
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Above both of framework is suitable for analyzing Human process contribution in
achieving organizational goal. But for comparing software, technological view is also
important. In this thesis, for comparing human resource software a framework is being
proposed.
Fig 2.3: Proposed Framework
It is also four tier model which include:
1. Organizational Structure: Type of organization, size of organization etc.
2. Human Process: Human resource modules implemented like employee selection,
training etc.
3. Technology: Architecture, Database, Security etc
4. Benefits & Quality attribute: User-friendly, performance, reliability etc.
2.5 Critical Literature Review
Due to globalization, the whole world is available for marketing of any product provided
it meets the requirement for quality and is cost competitive. So is the case with software.
Significantly, the softwares are developed in developed countries and are marketed
throughout the world which includes a large portion of developing countries. The
advantageous of developing software and marketing them throughout the world, goes to
Benefits &Quality attribute
TechnologyArchitecture, Database, Security etc
Human process
Organizational Structure
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developed world against financial constraint due to foreign exchange shortage in
developing countries.
It is therefore considered essential to develop software for ERP and in this case, software
for human resource management, which is considered a key, input to all the industries
including tiny, small, medium and large industries. With some modification the same
could be used for government, local, state and central government, university system as
well as business houses dealing with selling network.
That is why a comparative study of two different approaches: one provided by world
leader software vendors and the other based on in-house development will play a
important role especially improving the financial status of small ,tiny and medium scale
industries operating in India by concentrating on there human resource.
Finally, based on their comparative advantages and disadvantages, suitable software
model program will be presented for human resource management in industry.
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Chapter 3
Plan of work
This includes the detailed listing of all the tasks and sub-tasks necessary to complete the
proposed project, explores problem, suggestions and the framework required for the plan
of work.
3.1 The ProblemsToday is the era of globalisation in all the fields and verticals, be it Agriculture,
Manufacturing, Retail or Service sector. The stiif competitive globalised environment has
cropped up lot of geopolitical and economic uncertainities. The Global business
environment is now more customer centric shifting the focus from product to customer.
They now prefer to respond to customers more efficiently so as to provide the timed
value added products and services because that has the major base for competitive
advantage. Now the businesses want to increase revenue and profitability by decreasing
costs, optimizing resource utilization and tightening corporate governance. The buzz
words Just in Time, Six Sigma and Lean are now more frequent in corporate dynamics.
For this adaptation of an efficient ERP systems to support the various business prospects
has become necessary as IT has become the enabler for survival, innovation and growth
and is the key driving factor for organization’s competitiveness.
But Total Cost of Ownership (TCO) of ERP-HCM matters a lot, especially in developing
countries like India .Total Cost of Ownership (TCO) of ERP-HCM includes hardware,
software, professional services, and internal staff costs. The TCO numbers include
getting the software installed and the two years afterward, which is when the real costs of
maintaining, upgrading and optimizing the system. And in developing countries like
India where tiny, small and middle scale industries or organizations are grown like
mushrooms, implementation or deployment of such costly software is not possible for
every organization.
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Due to change in technologies and requirements, every year vendors comes with new
functionality enhancements in existing software in exchange of again a lot of money.
Many of these software vendors belong basically to developed countries. So, their
software design and standards reflect their country and culture. In case of Human
Resource management culture means a lot. That is why; it takes many months or even
years in deployment and customization of software system through they are satisfying
cross culture functionality.
3.2 SuggestionA way to resolve these problems is In-house development. Organization develop their
own system according to there need, as it will be easier for them to maintain and scale up
or scale down their system according to their changing needs and policies.
It is because of these reasons; a close study of SAP (Systems Application and Products)
vis-à-vis Indian Farmers Fertilizer Cooperative Limited software has been taken up. For
this purpose ONGC (Oil and Natural Gas Corporation Limited) where SAP as well as
Human Resource Management software developed by Indian Farmers Fertilizer
Cooperative Limited (IFFCO) have implemented Enterprise Resource Planning has been
taken up for detailed study.
3.3 SAP Implementation in Oil and Natural Gas
Corporation Limited (ONGC)
3.3.1 Overview“Oil and Natural Gas Corporation Limited” is among one of the top ten Navratan of
India. It is large scale Company, employing approx 37,000 persons in India and outside
India. Automating such a large organization is really an appreciating task. This work has
been done by world’s number 1 ERP vendor- SAP (System Application and
Development). Organization named this project as ICE .The Project ICE (Information
Consolidation for Efficiency) has been launched with aim to retain ONGC's leadership
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position in the energy sector.
The Project's objectives are:
• Optimization and standardization of business processes to enable integrated
information availability.
• Availability of single source management information that is accurate and on time
to facilitate decision making.
• Elimination of duplication of activities across business processes by capturing
data at source point.
• Facilitate information consolidation at corporate level.
• Availability of information at the right time, at the right place, thereby, enhances
managerial control leading to higher productivity.
• Integrating all business applications under single ERP platform with minimum
interfaces.
• Improved responsiveness to changing global market scenario by adopting new
and improved technology solutions.
• Change management- both attitudinal and business process.
• Integrated Supply Chain Management and optimization of inventory holding and
working capital resulting in lowering of inventories.
ICE Project was spread over a period of 30 months starting from July 2002 and
completed in December 2004. Human Resource Management system was started in Nov
2003 and completed in May 2005.
3.3.2 TechnologyArchitecture Three tier Architecture(SAP R/3)
Language ABAP(Advanced Business Application
Programming Language)
Back-end Oracle 9i
Server RISC and Intel
Storage Capacity 22.5TB
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3.3.2.1 SAP R/3SAP R/3 is integrated software solution for client/server and distributed open system
provide by SAP. Among fortune 500 companies, SAP R/3 is most successful product for
ERP which comprises modules for human resource management, Inventory, finance etc.
SAP R/3 is based on commercial relational database system (like Microsoft SQL server,
oracle etc.) that stores all related data and code of all application program. It serves as
integration platform for all component of SAPR/3 (like SAP R/3 internal control data,
data dictionary).
3.3.2.2 ArchitectureSAP R/3 is based on a three tier client/server technology. It is made up of three
functionally distinct layers namely:
The presentation layer. It provides a graphical user interface (GUI) that is connected with
the application servers through a local (LAN) or a wide-area network (WAN).
Fig 3.1: SAP R/3 Architecture
Presentation 1 Presentation 2 Presentation 3
Application 1 Application 2
Database Server
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The application layer. It comprises the business administration and responsible for
processing of pre-defined and user-defined application programs (such as OLTP and the
implementation of decision support queries).
The database layer. Implemented on top of a commercial database product that stores all
data of the system.
3.3.2.3 LanguageAdvanced Business Application Programming Language (ABAP) is a high level
language created by German software company SAP in 1980s. It is application oriented
fourth generation language (4GL) whose origins may be found in report/application
generator language that is why ABAP programs are also referred as reports. ABAP was
one of the first language to include the concept of Logical databases which provides a
high level of abstarction from the basic database. ABAP is an interpreted language which
may easily integrate new ABAP application program in to the system. ABAP is used to
code the application of SAP R/3 except for a small kernel. All ABAP application
program are managed by SAP R/3 data dictionary and the program code, are stored in the
SAP database. SAP R/3 also include software development workbench for developing
new application code. The language is fairly easy to learn for developers but not for non-
programmers. SAP most recent platform, Netware, supports both ABAP and Java.
All ABAP programs resides in SAP database.In the database all code exists in two forms:
cource code, which may be easily viewed and edited with ABAP workbench, and the
complied code, which is loaded and interpreted by ABAP runtime system.
ABAP program runs in SAP application server, under the control of runtime system,
which is the part of SAP kernel. The runtime system is responsible for processing ABAP
statements, controlling the flow logic of screens and responding to events. [21]
3.3.2.4 Data Model and Schema of SAP R/3
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SAP R/3 was designed for organization of various organizational structure and different
lines of business like production, retailing etc. Due to this generosity and
comprehensiveness it has a very large data model. To manage meta data like types and
interrelationship of these table, SAP R/3 maintains its own data dictionary which is stored
in SAP's relational database, that may be used by SAP application programs.
Fig 3.2: Database interface of ABAP[2]
3.3.2.5 Transaction Processing in SAP R/3Transactions are denoted by the term Logical Unit of Work (LUW) in SAP R/3.An SAP
R/3 LUW has the similar ACID properties as database system transaction. SAP R/3 LUW
is mapped to database transaction using complex relationship as there is more than one
transaction. To synchronize LUWs, SAP R/3 implemented locking scheme which is
managed by a centralized enqueue server which runs in one of the application server.
SAP R/3 has also implemented transaction processing (TP) monitor consisting of a
message handler and request queue in every application server.
Whenever a user logs in, a message handler finds the application server having smallest
ABAP/4 interpreterNative SQL Open SQL
Databaseinterface
Localbuffers
Datadictionary
Database systems
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Fig 3.3: Architecture of Application Server
load (load balancing). Then that application server handles all of the requests of that user
session. A user session may consist of several transactions (LUWs), further every
transaction consists of several dialog steps. Every application server has one dispatcher
process and several work processes. The dispatcher queues requests until a work process
is available to carry out the dialog step. The relevant data is rolled into the private buffer
and the ABAP program is interpreted. Thus, every user session is handled by a single
application server, but dialog steps of the same LUW may be handled by different work
processes [2].
3.3.2.6 Main-memory ManagementSAP R/3 main memory management is implemented on top of the virtual memory
management of the operating system. SAP R/3 application server divides the available
memory in to several segments. At first phase, the memory is divided in to shared
memory which can be accessed by all working processes and local memory for each
individual working process. Then at second phase the shared memory is further
subdivided in to the R/3 extended, R/3 paging, R/3 buffer/cache and the local memory is
subdivided in to local roll memory, R/3 heap and memory for the local data. Size of each
of these memory segments can be set by R/3 system administrator.
Dispatcher
WorkProcess
WorkProcess
PrivateBuffers
PrivateBuffers
Shared Memory Buffers
Queue
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R/3 transaction consists of several dialog steps and each dialog is processes by different
working process. For processing a dialog step, a working process first of all copies all
data of the transaction generated by previous dialog step and copies the updated data back
into the R/3 extended memory. If the data is larger than the size of the roll memory, then
the working process caries out the dialog step directly in the R/3 extended memory; and
pointers to the data are copied into the roll memory. That is why; the size of the roll
memory determines whether work processes operate using private (local) or shared
memory. If R/3 extended memory is exhausted and cannot hold all data of all active
transactions, the data of a transaction is copied into the R/3 heap. In the R/3 heap, data
can only be read and updated by the same working process that wrote the data into the
heap. Once the data of the transaction has been written to the R/3 heap, all dialog steps of
a transaction must be processed by the same work process. The dispatch of dialog steps
may be done by configuring the size of the R/3 extended memory. [2]
3.3.3 Implementation PhaseImplementation/deployment of system is the one of the most typical part in whole SDLC.
Customization of SAP-HCM system took different phase in ONGC
1. Project Preparation (Design for all Business modules for all Stages and phases)
2. Business Blueprint (Design for all Business modules for all Stages and phases)
3. Realization
4. Final Preparation
5. Go-live and Support
3.3.4 ONGC HRM ModulesIn ONGC following modules of SAP HCM are running:
• Establishment: Personnel information, personnel claims like leave etc.
• Loans and Advances
• Organization Management: Structure of company
• Training And Event Management
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• Payroll: off-cycle like incentive, bonus, HHF, LLF etc. and regular payroll like
monthly salary
• SAMPARC (System for automated management of Personnel Activities,
reimbursement and claims) consists of
• Feedback
• Claims/Approvals
• Reporting Chain
• Department substitution
• Request for Role
• Search People
• Personnel Bio-Data
• Communication data
• Payment
• Leave
• Tour
• Reimbursement
• Loan
• Children education
• Transfer
• LTC/LTE
3.3.5 PerformanceThe performance graph of ONGC shows the net profit of the organization over
last seven year starting from 1999 to 2005.
From the fig 3.4 ,the last seven years net profit graph of ONGC clearly reflects that after
2002 there is a jump in figures(amount).Then again in year 2004-05, profit increases after
downfall of 2003-04, that is the time period when implementation of Human Resource
Management System is going on, which was completed in year 2004.
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Fig 3.4: ONGC Performance Graph[24]
3.3.6 Quality AttributeAccording to the questionnaire from ONGC employee, following chart is being prepared:
Quality Attribute ONGC(1-5)
Effectiveness 3
Efficiency 3
Availability 4
Functionality 2
Performance 3
Usability 3
User-friendly 3
Interactive Interface 3
Maintainability 2
Modifiability 2
Flexibility 2
Scalability 2
Security 3
Stability 3
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Reliability 3
Reusability 3
Testability 3
Portability 3
Interoperability 3
Total 53
Table 3.1: Quality attribute of ONGC
3.3.7 Benefits of HRMSKey benefits achieved after SAP HCM Implementation in ONGC:
• Better Decision Support
• Better Operation Control
• Efficient Cost Management
• Enable Internal Performance Measurements
• Improved responsiveness to changing market/ global conditions
• Enable Transformation
• Alignment to new Organization Structure e-Corporation
3.3.8 Highlighted Areas
3.3.8.1 Red AreaFunctionalities, which are not even in planning phase of development/implementation:
• Performance Appraisals
3.3.8.2 Gray AreaFunctionalities, which are still in planning phase of development/implementation:
• Online Recruitment.
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3.3.8.3 Green AreaIt includes functionalities which are already implemented/ automated in the current HRM
system.
3.4 In-house Development by Indian Farmers Fertiliser
Corporation Limited (IFFCO)
3.4.1 OverviewIndian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3,
1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate
Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a
Multistate Cooperative Society. The Society is primarily engaged in production and
distribution of fertilizers. IFFCO, today, is a leading player in India's fertiliser industry
and is making substantial contribution to the efforts of Indian [20]. This is a Middle scale
Industry, responsible for continuous production of fertilizers. Its annual revenue is 9000
corers. There are about 6000 employees working in 5 Manufacturing Plants all over the
India and 185 marketing cities which are situated in 20 states of 5 different zones (North,
North Central, West, East and South).
IFFCO was one of the early organization and the first in the cooperative sector to
recognize the effectiveness of computers. Computerization started in the year 1988 with
the main objective of providing timely and necessary information at the desktop. During
the early nineties the focus was on minis, micros and few Personnel Computer and
department-centered applications. In the Mid nineties the organization took up major
expansion of Information Technology infrastructure focused on networking and
Integration.
So, an integrated computerized system was designed, developed and implemented at
IFFCO targeted for :
• Increase Operational efficiency
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• Continuous Monitoring
• Better Control
The system covers different functional areas like Finance and Account, Store and
Purchase, Personnel, Production, Maintenance, utilities, Technical and dispatch. System
Integration is achieved by capturing data at source. Apart from meeting the operational
level requirement, the system also helped the middle and top management in monitoring
various parameters for timely decision-making.
Firstly department centric computerization was held, but in 1999 consolidation was
started, which integrated all different system under one super system. This process
competed in 2002, from then the system is running well with full user support.
Concurrently approx 550 end-users can run this system in best case. Human Resource
system is one of the most important parts of this system, taking care of all the human
resource of the organization. This is consists of approx 1200 forms, 780 reports, 530
database table, 70 views , 50 procedure and 12 packages.
3.4.2 TechnologyArchitecture Three tier Architecture
Front-end Developer 2000, jsp and html
Back-end Oracle 8i
RDBMS web tool Oracle 9IAS (oracle Internet Application Server)
3.4.2.1 ArchitectureIFFCO system is based on a three tier client/server technology. Typically, it is made up
of three functionally distinct layers namely: the user interface, business logic and
database.
The user interface, which is otherwise known as the presentation server displays the
interface for user’s communication with the system. It is often referred to as the GUI. The
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Fig 3.5: Three Tier Architecture
application server is where the business logic and data manipulation takes place. Data
processing, administration tasks and client request/feedback management are handled
within the business layer. The database layer is synonymous to the database server and it
typically acts as a data repository for tables and other database objects and structures.
3.4.2.2 Developer 2000Developer 2000 is an integrated CASE tool which supports a wide range of tasks in
software analysis, design and coding. It is the first scalable development tool that leads
the second generation client/server revolution. Some of the basic properties of Developer
2000 are:
1. Powerful declarative capabilities
2. Rapid application design (RAD) techniques
3. Object orientation
4. Built-in computer-based training
5. A unified low cost Thin Client, Application Server and Data Server architecture.
6. Powerful and easy-to-use combination of object browsers, tabbed dialogs,
property palettes
Presentation 1 Presentation 2 Presentation 3
Application 1 Application 2
Database Server
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7. Organizational standards are easily applied through customizable application
templates and default settings for each object.
8. Industrial-strength reports are modified interactively using the intuitive live data
previewer in the report builder
9. Offers an environment for development teams of all sizes
10. Scalability
3.4.2.3 Oracle 8iIn 1999 Oracle cameout with Oracle8i , aiming to operate more in tune with the needs of
the Internet.The ‘i’ in the name stands for "Internet". The Oracle 8i database incorporated
a native Java virtual machine (JVM).Some of the features of oracle 8i are:
1. Client/server environments (distributed processing)
2. Large databases and space management
3. Many concurrent database users
4. High transaction processing performance
5. High availability
6. Controlled availability
7. Openness, industry standards
8. Manageable security
9. Database enforced integrity
10. Portability
3.4.2.4 Oracle 9IASThe Oracle Web/ Application Server or iAS (Internet Application Server) enables users
using Web Browsers to access HTML pages (static content) and data from Oracle
databases (dynamic content). Cartridges or plug-in's are provided to execute PL/SQL
code, Java, Perl and other programming language code.
Oracle 9IAS is the industry's fastest, most complete and reliable J2EE certifed application
server. It integrates all the technology required to develop and deploy e-business portals,
trascational application and web services in to a single product.
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It provides the most productive development envirnoment for developers to create
internet applications including J2EE applications, websevices, enterprise portals, wireless
and business inteligence applications. Its architecture is open and ready to integrate. It
may integrate all oracle and non oracle database; web based application with legacy
system etc.
It provides the most reliable platform to deploy Internet Applications including the fastest
J2EE and web services environment, high availability and clustering support, and
complete, centralized management and security of all Oracle9 IAS components.
It lowers the total cost of owernership by offering integration across entire product.[23]
3.4.3 Implementation PhasesImplementation of IFFCO Human Resource Management system involve following
steps:
• Identification of scope
• Classification of system in various modules
• System study and prototype generation
• Freezing of specification
• Design, development and coding
• Testing and acceptance of modules at head office
• Implementation of the modules at pilot sites-Head Office, Marketing central
office, zonal office (Include integration of the system with existing application
and Train the end user on the concept and operational intricacies of the system)
• Implementation at all production units (5), all zonal (5), state (20) and area offices
• Further revisions/enhancements and fine tuning of the system
• Maintenance of system
3.4.4 Modules
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IFFCO Human Resource Management System is based on modular approach. It covers
following modules:
• Establishment: Include Personnel detail and employee history.
• Residence: Include guest house detail and house rent
• Time Office: Punch record and leave record
• Loans and Advances: home loan, vehicle loan, educational etc
• Medical: Annual and serious medical details
• Leave Travel C/Leave Travel Encash and TA/TD
• Legal/IR
• Gold coin/Liveries: Awards and rewards
• Facilities: Washing, magazine, telephone etc.
• Payroll: Salary and perk
• Benevolent fund/Insurance
• Provident fund
• HRD : training
• Employee Information System/Management Information System: Each employee
may submit forms and check status for different facilities and utilities.
3.4.5 SecuritySecurity is the main concern of any organization that is why in IFFCO three levels of
security are used
• First: Username and Password to specified module. Here personal no. of the
employee acts as user code.
• Second level: The specified form or report the user may have the right to access.
• Third level: Type of access on the form like insert, update, query, delete etc
3.4.6 PerformanceThe performance table of IFFCO shows the sales,production, turnover and net profit
figures over last four year i.e from 2003-06.
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Year 2003-04 2004-05 2005-06
Production 57.01 lakh tonnes 61.54 lakh tones 64.35
Sales 60.54lakh tones 64.64 lakh tones 81.95
Turnover Rs. 5920 crores Rs 7224 crores Rs 9943 crores
Profit after tax Rs. 330 crore Rs.320 crores Rs 341 crores
Table 3.2 : Performance Table of IFFCO
3.4.7 Quality AttributeFrom IEEE Std. 1061:
Software quality is the degree in which software possesses a desired
Combination of quality attributes. The purpose of software metrics is to make
assessments throughout the software life cycle as to whether the software quality
requirements are being met.
The use of software metrics reduces subjectivity in the assessment and control of software
quality by providing a quantitative basis for making decisions about software quality.
However, the use of metrics does not eliminate the need for human judgment in software
assessment. The use of software metrics within an organization is expected to have a
beneficial effect by making software quality more visible.
According to the questionnaire from IFFCO employee, following chart is being prepared:
Quality Attribute IFFCO(1-5)
Effectiveness 3
Efficiency 3
Availability 4
Functionality 3
Performance 3
Usability 3
User-friendly 3
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Interactive Interface 2
Maintainability 3
Modifiability 3
Flexibility 3
Scalability 3
Security 2
Stability 2
Reliability 2
Reusability 2
Testability 4
Portability 2
Interoperability 1
Total 51
Table 3.3 : Quality attribute of IFFCO
3.4.8 Benefits of HRMSImplementing Human Resource Management System in IFFCO, following benefits are
achieved:
• Avoidance of Information redundancy and duplicacy of job
• Uniformity of business rules and practices
• Integration of information at various levels
• Speedy transfer of personal data on transfer of employees
• Transparency of work
• A user friendly touch screen for farmer information system
• Production increased by 150% where as manpower 10%
• Time involved in processing of application for Loans, LTC, enhancements,
advances etc is reduced from 1-2 weeks to just one day.
3.4.9 Highlighted Areas
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3.4.9.1 Red AreaFunctionalities, which are not in plan of development/implementation:
• Performance Appraisals
3.4.9.2 Gray AreaFunctionalities, which are still in planning phase for development:
• Online Recruitment
3.4.9.3 Green AreaFunctionalities/Modules, which are implemented/ automated in system:
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Chapter 4
Result and Discussion
4.1 ComparisonIt explores the comparatives results of two different approaches, one that is provided by
globally accepted world leader of ERP; SAP and other one is in-house development by
IFFCO.
4.1.1 Software Development Life CycleA software development process is a structure imposed on the development of a software
product. It includes different activities
Requirement Analysis: It is the most important task as customers/user typically knows
what they want. So, extracting information and satisfying there need is the main issue in
software development.
Design: Low level and high level design (detail design) represents different diagrams
(Data flow diagram (DFD), E-R Diagram etc.) so that programmer easily understood the
need of user.
Coding: Here actual coding will be done.
Testing: Output of software was verified and validated against actual input. Different
level of testing is done-unit testing, system testing, accepting testing etc.
Implementation and Maintenance: Implementation and maintenance of software at
user/customer location to cope new requirements and problems.
SDLC phase IFFCO(In-house) ONGC(SAP)
Requirement analysis Identification of scope,
Classification of system
in various modules and
Project Preparation
(Design for all Business
modules for
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Table 4.1 : Development phases of IFFCO and ONGC
4.1.2 Quality AttributeSoftware Quality Attributes are the benchmarks that describe system’s intended behavior
within the environment for which it was built. It also provides mean to measure the
fitness and suitability of software. Computer systems are used in many critical
applications where a failure may cause serious consequence. Developing software system
in systematic way such that they will satisfy minimum need of software quality attribute
increases faith of customer in software products.
Quality Attribute IFFCO(In-
House)(1-5)
ONGC(SAP)(1-5)
Effectiveness 3 3
Efficiency 3 3
Availability 4 4
Functionality 3 2
System study all Stages and phases)
Design prototype generation,
Freezing of specification
and design
Business Blueprint
(Design for all Business
modules for all Stages
and phases)
Coding Coding according to
Design
Realization
Testing Testing including
acceptance testing at
each location
Final Preparation
Deployment and
Maintenance
Implementations at all
sites and train end user.
Go-live and Support
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Performance 3 3
Usability 3 3
User-friendly 3 3
Interactive
Interface
2 3
Maintainability 3 2
Modifiability 3 2
Flexibility 3 2
Scalability 3 2
Security 2 3
Stability 2 3
Reliability 2 3
Reusability 2 3
Testability 4 3
Portability 2 3
Interoperability 1 3
Total 51 53
Table 4.2 Quality Attribute
From the above given table it is clearly visible that IFFCO has better maintainability,
modifiability, flexibility, scalability, testability. And SAP has better security, stability
reliability, reusability, portability, interoperability.
4.1.3 ProductivityProductivity is ratio of measure of output to the measure of input. So employee
productivity may be defined as ratio of work done by the number of working hours.
Employee productivity is directly proportional to the organizational productivity. That is
why, increase in Employee productivity increases organizational productivity .For
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motivating employee to meet organizational goal together with the quality of work life
and benefits, ERP is also good facilitator.
Fig 4.1 : Employee Productivity Graph
It is clearly visible from the above chart that employee productivity increases in both
cases after implementation of ERP-HRM.
4.1.4 PerformanceNet Profit of any organizaituon may not directly impacted by the implmenetation of
Human Resource Mangement System (HRMS),
Fig 4.2 : Net Profit Graph
05
1015202530
2002-03
2003-04
2004-05
2005-06
EmployeeProductivity(ONGC)
EmployeeProductivity(IFFCO)
020000400006000080000
100000120000140000
2003-04 2004-05 2005-06
IffcoOngc
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but HRMS is directly related with employees productivity which in turn affect
organizations profit. That is why Net profit of the organizations are indirectly related
with HRMS.
From the above chart it is clearly visible that net profit of both organization is increasing
after implementing HRM.
4.2 Design and Implementation IssueSoftware design is a process of problem solving and planning for a software solution.
In Software development life cycle after preparing software requirement specification,
design of the system is made at low and high level.
4.2.1 Architectural Design The Architecture for middle and small scale industry is given in Fig- 4.1. It
provides a simple and unified standard for client/server, distributed or web based
computing.
Fig: 4.3 : Architecture[26]
PresentationLayer
Graphical User Interface
PresentationLogic Layer
Web Based(Web server(IIS),ScriptsProduceXML)
Business Layer
Client server (Windows forms
Etc.)
Data AccessLayer
DatabaseLayer
DistributedLogic/Network(Cobra, Com,SOA)
Applications
Interface with database
Data Storage
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The above architecture consists of following Layer:
• Presentation Layer: Graphical User Interface (HTML, windows form etc.)
• Presentation Logic Layer: It provides an interface for the end user into application
and works with the results/output of the Business Tier to handle the
transformation into something usable and readable by the end user. This may
further divided into three parts:
1. Through web-server (IIS) using ASP (Active server pages) which uses
scripts languages (like vb script, java script etc.) to produce XML,
DHTML i.e. web based.
2. For distributed system using components COM (component object
model), DCOM (distributed component object model), COBRA (common
object request broker architecture) or SOA (service oriented architecture).
3. direct client interfaces using windows based form, custom application etc.,
i.e. local application that runs on LAN.
• Business Layer: This layer consists of the actual application logic of the whole
system like business rules and data manipulation etc.
• Data Access Layer: This layer is used for writing some generic methods to
interface with data of database layer. Interface with database handles all I/O,
storage query and optimization. For example: a method for creating and opening a
connection object.
• Database Layer: Today is the age of information, so all the application related
data must be stored .That is why this is the most essential part of the system. And
for extracting information from the stored data, a proper management of the data
is needed, so this layer is consists of database management system like sql server,
oracle etc.
Presentation Layer and Presentation Logic Layer can merge into single layer similarly for
Data Access Layer and Database Layer.
4.2.3 Class Diagram
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A class in the diagram is a collection of objects with common structure, behavior,
relationships and semantics.
A class diagram is a pictorial representation of the detailed system design. For designing
the class diagram first of all there is a need to understand the rules of modeling and
designing systems. Class diagram is a static view of a system. The structure of a system is
represented using class diagrams. The aim of designing classes is to convert "what" to a
"how" for each requirement.
Class Name Description
tbllogin This class implements the business logic for providing
the secure login to the administrator.
Employee_Login_detail This class implements the business logic for providing
the secure login to the user.
Employee_Personeel_Deatil This windows form will handle requests for entering
the personnel detail of employee.
Employee_Medical_Detail This windows form will handle requests for entering
the medical detail of employee.
Employee_Qualification_Detail This windows form will handle requests for entering
the qualification detail of employee.
Employee_Language_Detail This windows form will handle requests for entering
the language detail of employee.
Employee_Address_Deatil This windows form will handle requests for entering
the address detail of employee.
Employee_WorkEx_Detail This windows form will handle requests for entering
the work experience detail of employee.
Employee_Refference This windows form will handle requests for entering
the reference detail of employee.
Employee_Job_detail This windows form will handle requests for assigning
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the organization role to employee.
Employee_Appraisal_Deatil Using this windows form each employee may submit
self appraisal detail of the given time period.
Employee_Apprasing_Detail Using this windows form each employee submit
apprising detail of their subordinate. (For employee
grade<’H’)
Employee_Apprasingtop_Detail Using this windows form each employee submit
apprising detail of their subordinate.(For employee
grade>=’H’)
Employee_Reviewing1_Detail This windows form helps in entering reviewing detail
of sub-sub ordinate self appraisal.
Employee_Reviewing2_Detail This windows form helps in entering reviewing detail
of sub-sub ordinate self appraisal.
Employee_Reviewing3_Deatil This windows form helps in entering reviewing detail
of sub-sub ordinate self appraisal.
Employee_Appraisal_Person This windows form helps in accepting appraisal of
employee.
Table 4.1 Class Description
4.2.6 Technology
4.2.6.1 Language: Visual Basic.NetVisual Basic .Net is an object oriented computer language that can be viewed as an
evolution of Microsoft visual basic (VB) implemented on the Microsoft .Net framework
(From wikipedia)
Some of the advantages of VB.Net are:
• Problem solved easily and effectively
• Build robust windows- based application
• Resolve deployment and versioning issues seamlessly
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4.2.6.2 Front-End: Net FrameWorkThe Microsoft .net framework is a software component that can be added to or is
included with the Microsoft windows operating system. It provides a large body of
precoded solutions to common program requirements and manages the execution of
program written specifically for the framework.
Some of the .Net framework advantages are:
• Consistent Programming Model
• Direct Support for Security
• Simplified Development Efforts
• Easy Application Deployment and Maintenance
4.2.6.3 Back-End: Oracle 10gOracle provides database consists of a collection of data that are managed by an oracle
database management system which is a set of application program. It is a relational
database. A relational database is based on the separation and independence of the logical
and physical representation of the data. Relational database provides enormous flexibility
and means to store the data physically without affecting how the data is presented to the
end user. Basic advantages of oracle are:
• Supports large number of data types
• Better load management
• Better memory optimization
• Transactional database
• Rollout and commit
4.3 InterfacesSome of the basic interfaces are given here in this section.
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4.3.1 Employee LoginThis interface is responsible for security check that whether employee is eligible to enter
inside Human Resource Mangement System (HRMS).
Fig 4.4: Employee Login
For entering inside HMRS a valid loginid and password is required by employee which is
asseiged by administrator. Employee may also change their account password any
number of time.
4.3.2 Administrator LoginFor performaing adminstrative task like adding new employee record, editing employee
record, assigin role and creating employee accout, administrator login is required by
employee. This interface is responsible for validating that whether employee has
adminstrator rights or not.
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Fig 4.5: Administrator Login
4.3.3 Adding New Employee RecordSelected candidates detail will be added in employees database and a Emploee-Id is
assiged to each employee, through which employee can access HRMS system.
Fig 4.6: Personnel Record
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Above interface (fig 4.6) includes all fields like first name, last name, place of birth, date
of birth, nationality, religion, category, sex, height, weight, blood group; which is
required for employee personnel detail.
Fig 4.7: Address Detail
Above interface (fig 4.7) includes all detail related with employee address like address
for corespondece, permanent address, present address, home town, telephone no, mobile
no, email id etc.
Interface in fig 4.8 includes Medical (continuing disease, disability, dependent disease
etc. deatils) and reference (name,address,designation etc.) fields required to add
employee record.
Interface in fig 4.9 includes qualification (examination, college/ university, year of
passing etc.) and language known (language, speak,read, write) fields to complete record.
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Fig 4.8: Medical and Reference Deatil
Fig 4.9: Qualification and Language Detail
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4.3.4 Assign RoleSelected candidates will assign role in organization hierarchy accroding to his/her
qulaification and/or specialisation.Interface (fig 4.10) includes field like grade, scale,
designation, level of management, place of posting etc.
Fig 4.10: Assign Role
4.3.4 Employee AppraisalEmployee apprisal includes different phase; at first phase each employee fill their
apprisal i.e self assesment (fig 4.11).
Fields required for self assesment are achivements, factors responsible, change in job
nature etc.
At second phase apprasing (fig 4.12) is performe by immediate officer, who assess
emplyee’s performance accroding to different factors like competencies (job
performance, job knowledge, dependabilty etc.), values (regularity and punctuality,
behaviour etc.).
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Fig 4.11: Self Assesment
Fig 4.12: Performance Assessment
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At third phase or level employee’s performance assessment is reviewed thrice by
different employees at higher grade then apprasing officer (Fig 4.12).
Fig 4.13: Reviewing Appraisal
Then at the last phase employee’s appraisal will be accepted by accepting authority.
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Chapter 5
Conclusion
This thesis involve the comparison of two such systems in which one is widely accepted
all over the world and other one is taking a leap in India for its existence through in-
house development.
5.1 ConclusionAfter comparing two different systems, some of the basic conclusions drawn are as
follows:
• Human Resource Management (HRM) global vendors provide software whose
implementation takes approximately 20-24 months, this time period is too large
for a technology gap. And, after implementing such a costlier system (in millions)
in such a long time, organization normally don’t dare to switch to new
technologies.
For example, technologies which were very popular in 2000 became outdated
after 2004.As in the case of ONGC; they implemented SAP R/3 in 2000, which is
outdated in recent time. It will take again long time to switch to a new technology
or updated the SAP system. Where as in IFFCO they can easily switch for new
technologies as requirement and design are same.
• Global HRM Software’s vendors generally belong to developed nations/countries
whose polices; standard and culture are very much different from any developing
nation/country like India. For the same reason, the payment has to be met in hard
currency. So, instead of doing a lot of customization in-house development is
better choice.
For Example: In ONGC they have purchased full software but customization
include only a few modules, rest are not considered so relevent and useful for
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their organization. Where as in IFFCO they have implemented what they are
using, so avoiding wastage of resources.
• Human being/Employees of any organization, who are the main user of HRMS
system, don’t want to switch to totally new system unless a proper training is
provided before usage. So, it is very difficult to run whole software package once
in one go.
For Example: In IFFCO employee are more familiar and close to their HRMS
system as implementation goes in step vise manner and developed according to
their need and relevence to their organization.
5.2 Advantages1. Proposed Architecture will be useful for tiny, small and medium scale industries
to develop their own in-house software and remain in global competition. Such
industries are in large number in developing countries including India.
2. A comparison of two different approaches, that can be utilized further for
different task dependening upon their requirement and relevence.
3. With changing global senario, the requirement for Human Resource Management
will keep on changing neccesitating further development in HRM.obviously, in
house development of the software will be benficial in the the long range.In
addtion to saving of foreign exchange.
5.3 LimitationIt is difficult to obtain full information about the software as promoted by SAP because
of trade secret. The application of the software especially when they are projecting that
by 2020 they will have 20,000 applications in small, medium and large scale business
organizations in India with additional 7000 software engineers in their workforce by
2010. Since ONGC have already implemented and a few other organizations in private
and public have also implemented this software, it is expected that relevant information
will be available.
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It is essential to develop complete understanding of SAP so that the in-house
development of the software is such that it finds wide applicability in India and when full
understanding is developed, it will be possible to have any modification, scale up, scale
down, duplication or any other change required to suit Indian requirements.
5.4 Scope For Further DevelopmentThere is always a scope for improvement in every field of work, so here also these
comparisons can further be enhanced in different view by different persons for different
applications.The model program can further developed accroding to the need and
resources of specific organization.
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[18] SAP, company profile, http://www.sap.com/company
[19]SAP,” Human Capital Management”-A Measurement breakthrough on the horizon.
http://download.sap.com/download.epd?context=5EDFD699BEE6C84CE4C7868238BC
F0D9CBF381549401C1052CE356ABF5BBC94C05B28B197266A604EF83588B153F0
AD5A46FD2AEB9969EA8
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[26] Special Thanks to IFFCO and ONGC employees for their cooperation and help