Sap Was Selected To Align The State Bank Groups Current Human Resource Management System Business Essay

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Information Systems for Managers (ISMs) are systems, which refer to the intersection of human and information technology, and help in decision making for users within and outside the organizational boundaries. These systems help in performing daily activities along with organizations current and future decisions. These information systems consist different functionalities for different functions or the business group they intend to work with.

State Bank Of India


State Bank of India (SBI) is government-owned and is the largest bank in India in terms of market capitalization, deposits, advances and profits. It was founded in 1806 and is the oldest commercial bank in the Indian Subcontinent. SBI has more than 14,500 branches and more than 370,000 employees in 32 countries where it has 84 offices, serving the international needs of the bank's foreign customers. It has nation's largest ATM network. It is also the largest in the world in terms of number of branches and is the only Bank from India figuring in the list of top 100 banks in the world.


In recent years the bank has focused on three priorities, first, reducing its huge staff through schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest change sides to the private sector. Secondly, computerizing its operations.  Thirdly, trying to change the attitude of its largely rude staff.




The systems and processes involving Human Resource Management and Information technology comprise the Human Resource Management System (HRMS). Enterprise Resource Planning (ERP) helps in programming of information from different applications into one universal database. Linking of finance and human resource modules through one database is an important distinction to the individually and proprietary developed predecessors, and hence making the software application flexible and rigid.

Different organizations have different evaluation, selection and payroll processes. The HR function consists of exploring employee data like history of person, skills, abilities of person, achievements, salary, etc. Introduction of Human Resource Management Systems reduces manual workload of the administrations. IT professionals within the organization or outside help HR executives to develop and maintain an integrated HRMS. Requiring high investment, HRMS were restricted to organizations having a large capital. Currently Human Resource Management Systems encompass:

1.              Payroll

2.              Benefits Administration

3.              HR management Information system

4.              Recruiting

5.              Training

6.              Employee Self-Service


The Payroll Modules helps in pay process by collecting data on the number of working hours and days of the employee. Deductions in the payment are also made due to different reasons and taxes. Human Resource and time keeping modules help in feeding the required data.

The benefits administration module help to find out employees participation in different benefit programs. Insurance, profit sharing, compensation and retirement are included in this.

The HR management module covers HR aspects like address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities of the employee. Leading edge systems provide the ability to read and enter relevant data to applicable database fields. Human resource management function involves the recruiting, placing, evaluating and development of the employees of an organization.

Recruiting using online systems is employed by HR departments to bring in possible candidates for available positions within an organization.

The training module helps organizations to manage and track employee training and development efforts. It allows HR to track education, qualifications and skills of the employees, as well as drawing what training courses, books, CDs, web based learning or materials are available to develop which skills.

The Employee Self-Service module allows employees to question HR related data. Employees may enquire about their attendance record from the system without concerning the HR personnel.

Many of these sub modules are further sub divided into many components for e.g. Time Management is further divided into Time Administration, Shift Planning, Incentive Wages, and Time Sheet. There is further sub-division of each sub module in SAP.



SBI's HRMS portal is SAP enabled Human Resources Management System. In HRMS users and Administrator can accomplish HR related task. HRMS works for human welfare. With the help of SAP software, SBI is increasing their business requirements and appointing educated employees for every departments.


HRMS is to appoint right person to the right place at right time. Implementation of SAP gives progress in the areas of human capital management and enterprise resource planning such as e- learning, performance management and property management and development of career. SAP select employees as per bank needs.


The Bank offers almost every product in the financial super market to its customers. The Bank is in 200th Year of business and has made profit for all the years. State Bank of India and its seven Associate Banks have already developed group synergy in areas like Real Time On-line Banking, ATM, Treasury and other IT areas. The proposed HRMS Solution would further integrate the Human Resources operations across the group uniformly.


SAP based the architecture of R/3 on a three-tier client/server model.

1.Presentation Server (GUI)

2.Application Server

3.Database Server

SAP allows the IT supported processing of a multitude of tasks, accruing in a bank. SAP ERP is differing from R/3 mainly because it is based on SAP NETWEAVER: core components can be implemented in ABAP and in Java and new functional areas are mostly no longer created as part of the previous ERP system, with closely interconnected constituents, but as self-contained components or even systems.




SAP was selected to align the State Bank Group's current human resource management system (HRMS) with the groups' growing business needs and to empower its large workforce to manage processes in a collaborative environment. Using SAP® software, State Bank Group aims to respond faster to market demands, enable real-time information access and assign the right people to the right positions at the right time.

With the help of SAP (System analyze and Programming wick lung) software, SBI is increasing their business requirements and appointing educated employees for every departments.