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Human Resources Processes with ERP
managers through different IT functions and business areas to gain
experience. CIOs can groom future leaders by putting them in charge of
projects or meetings.
• Keep succession criteria consistent and up to date—Succession plans
should become part of an organization’s culture. According to George Hall,
senior vice president at Marriott, “Succession planning is not a means to an
end; it’s the end itself. It’s really what falls out of doing other things
correctly.” 177

Questions:
1. Assume that Fitter needs to replace their current CIO who is retiring. Make a
list of the pros and cons of hiring a new CIO from outside the company as
opposed to promoting someone from within the company. Which do you think
is the correct approach? Explain your answer.
2. What are the risks to the company if they fail to create a succession plan?

ADDITIONAL HUMAN RESOURCES FEATURES OF SAP ERP
Human resources staff must keep pace with rapidly changing social, technological, and
legislative developments that affect the corporate world. Because of that, the SAP Human
Resources module has been expanded to include features that assist managers with
human resources tasks that have only recently become important to corporations.

Mobile Time Management
Many employees, especially sales personnel who spend a significant amount of time on the
road, may not have regular access to a PC. SAP’s Mobile Time Management tool allows
employees to use smartphones or other mobile devices to record their working times,
record absences, or enter a leave request.

Management of Family and Medical Leave
The Human Resources module alleviates some of the administrative burden imposed by
the federal Family and Medical Leave Act (FMLA) of 1993. Companies can program the
Human Resources module to determine whether an employee is eligible to take FMLA
leave and to automatically deduct those absences from the employee’s allowable leave.

Management of Domestic Partner Benefits
Many companies provide benefits for domestic (unmarried) partners. The Human Resources
module now supports the management of benefits for domestic partners and their children.
The system provides companies more flexibility in customizing dependent coverage options
for health plans, eligibility for enrollment of dependents, and designation of beneficiaries.

Administration of Long-Term Incentives
An outgrowth of the Sarbanes-Oxley Act (discussed in Chapter 5) is that companies must
account for the expected costs that will occur as a result of long-term employee incentives,

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