SAP Human Capital Management (HCM):Tutorial 1

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Welcome to the SAP ERP Human Capital Management Tutorial. Without any wait let us directly dive into the concepts.

What is SAP ERP?

The SAP ERP (Enterprise Resource Planning) provides Large Businesses with a single Software System to support all business functions. SAP's ERP is a suite of integrated modules used to collect, transact and report on data from their business activities. It enables the flow of information between the different parts of a company and with outside stakeholders, like customers and vendors.

Advantages of SAP

There are many benefits and limitations of using SAP. Let's look the the top pros and cons of SAP. 
  • First, SAP eliminates information silos and standardizes data across an entire company or multiple companies. For example, instead of having one system that handles all of your company's vendors and a different system that handles all of your company's inventory, all of this information is housed in SAP. As a result, SAP automates core processes. 
  • SAP ERP facilitates better decision-making because all of a business's processes are in one system. You can create powerful real-time reports that provide in-depth data. Having access to this information in real time allows decision makers to collaborate, solve problems, and recognize opportunities on the fly.
  • SAP is known for prioritizing an organization's security and compliance. SAP's rural design feature allows for appropriate segregation of duties. It ensures only those who should be able to see sensitive information or make business decisions have the access to do so. It's also possible to customize SAP configuration settings with a company's policies, ensuring compliance across the system and with federal regulations. 
  • SAP is notorious for a very high total cost of ownership. There are very high acquisition and implementation costs, paired with recurring maintenance costs. 
  • Implementing SAP has a definite ROI, but it may be farther away than companies realize. Not only is it expensive, it can take years to implement SAP across an entire organization. 
  • Finally, the software itself can be really challenging at first. There's a steep learning curve that requires proper training for users to get up to speed. In companies where people have been doing their job a certain way for years, there can be huge resistance to change. 

Now let us focus on SAP HCM :- 


SAP HCM or SAP Human Capital Management is one of the major modules in SAP that plays an important role in building an organized management in enterprises. SAP HCM consultants are some of the most demanded professionals in the global market.

HCM is one of the most important processes in organizations across industries. The general perception of HR job is considered to be recruiting. But in an organization, HR not just hires employees but segregates employees based on various factors such as department level, payment days, payment details, designations etc. 
These works might sound very simple; however, working out all these for people of an entire organization is not an easy work at all. To streamline all such HR processes, SAP ERP operations are widely used. SAP HCM ERP is one of the most flexible software for HR processes widely used across industries.


This module is SAP's solution to manage all human resources processes. The human capital management module has a huge amount of capabilities. Everything in the HCM module relies on organizational management. This is where the organization is set up with different areas, positions, and employee names. Next is employee administration, which handles employee addresses, bank details, and tax information. 
The HCM module also handles time management to record attendance, shift management, and leave accruals. This leads into benefits management. This is where companies can create their own unique benefits packages. 
Next, the recruiting capabilities of this module include applicant tracking and reporting to help figure out how effective their recruiting efforts are. There's also a platform that links with external recruiting websites. Finally, learning management provides employees with online and classroom training. It includes a learning management system to track the completion of courses. 

You can follow this SAP ERP Linked Learning video series to see a hands on approach towards SAP Modules.


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