Ch. 10 - HCM, Payroll, Internal Controls

These flashcards cover key concepts and terminology in Human Capital Management and related modules from the lecture notes.

Recruitment Management Life Cycle

A process designed to attract job candidates and convert talented individuals into successful hires.

Employee Life Cycle

The holistic process from recruiting to retiring employees, covering various stages of their employment.

Human Capital Management (HCM)

The strategic approach to effectively managing an organization's workforce to maximize performance.

Succession Planning

The process of preparing for future leadership or key position vacancies within an organization.

Outsourcing Human Resources

The practice of hiring third-party organizations (PEOs) to handle HR functions to reduce costs and focus on core activities.

Internal Control

Measures implemented in HR processes to ensure accuracy, compliance, and prevention of fraud.

Time and Attendance Module

Tracks employee hours, sick days, and PTO as part of payroll and attendance management.

Payroll Module

Responsible for processing employee compensation, managing taxes, and overseeing benefits deductions.

Employee Self-Service

A system that enables employees to manage personal data and enroll in benefits with minimal HR intervention.

Payroll Audit

A systematic review of payroll and HR processes to identify compliance risks and ensure accuracy.

Payroll Module

It includes functionalities for calculating wages, disbursing payments, and generating paychecks while ensuring adherence to tax regulations.

Recruit to Retire Life Cycle

The process that encompasses all stages of an employee's journey within an organization, from recruitment and onboarding to retirement, focusing on effective workforce management.

Recruitment Management Module

A component of HR systems that streamlines the recruitment process, including job postings, applicant tracking, and selection workflows.

Personnel Administration Module

A module within HR systems that manages employee records, personal information, and benefits administration, ensuring compliance with employment laws.

The personnel administriation module maintains employee master data such as :

Demographics, skills, roles, organizational assignments, terminations, hiring actions, promotions.

Internal control functions in the Time/Attendance module include: 

Smart time clocks and Geofencing

Benefits Module

A component of HR systems that manages employee benefit programs, including health insurance, retirement plans, and other perks.

What are required inputs in the payroll module?

Essential data such as employee hours worked, salary rates, tax information, and deduction details are required inputs in the payroll module to ensure accurate and timely payroll processing.

Benefits of employee self service

Lower admin costs, streamlined processes, improved communication

Outsourcing HR Functions

involves delegating certain HR tasks or responsibilities to external service providers. This approach can help organizations reduce costs, access specialized expertise, and allow internal HR teams to focus on strategic initiatives.

Cost savings of outsourcing HR functions

Lower HR salary expenses, lower benefit plan costs, reduced hiring/training expenses, less time spent on admin tasks, avoiding compliance penalties

Outsourcing risks

Lower quality service, internal control weakness, fraud if PEO controls are weak

HR-related fraud examples

Ghost employees, commission schemes, falsifying hours

Succession Planning

A process for identifying and developing internal personnel to fill key leadership positions within an organization, ensuring continuity and stability.

Career planning

The process of setting career goals and identifying the steps necessary to achieve them, aligning personal aspirations with organizational needs.

Payroll HCM Audit Concept

A systematic review of payroll processes and controls to ensure accuracy, compliance, and prevention of fraud in HR-related financial operations.

Payroll Analytics Tests

A series of evaluations used to analyze payroll data for insights into compensation trends, employee performance, and compliance with labor laws.

Personnel Number

A unique identifier assigned to each employee in an organization for record-keeping and management purposes.