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CH A P TE R6

HUMAN RESOURCES

PROCESSES WITH ERP

L E ARNING O BJ ECTIVE S
After completing this chapter, you will be able to:
• Explain why the role of the human resources department is critical to the
success of a company
• Describe the key processes managed by human resources departments
• Describe how an integrated information system can support effective
human resources processes

I N TRODUCTION

A company’s employees are its most valuable resource, which means that the human resources (HR)

department plays a critical role within an organization. The human resources department is
responsible for many of the activities that a company performs to attract, hire, reward, train, and,

occasionally, terminate employees. The decisions made in the human resources department can
affect every department in the company. Companies are increasingly aware of the importance of an

experienced, well-trained workforce, and many organizations have begun using the term human
capital management (HCM) to describe the tasks associated with managing a company’s workforce.

As a company grows, the need for an organized and effective human resources department

becomes increasingly important. The responsibilities of a human resources department usually

include the following:

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