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Human Factor in ERP Implementation

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For a business to expand, to survive in the competitive market leading to the growth and profitability, changes are inevitable. In order to secure better position over the competitors, organizations have taken up ERP implementation that resulted in a dynamic change in the whole business scenario. This has driven the organization towards healthy growth and better profit margins. But, this changeover of the organizations through ERP faces tough resistance as it is not easy to win the confidence of everybody in the organization in implementing this application.

Reaction of the Human Resource when an organization goes for ERP implementation
It is the general nature of the humans to get along with the system that is running for decades, and are always skeptical about any changes made in the organization. A sort of complacency builds up through the existing procedures and their confidence receives a jolt with apprehensions setting in, when there is a dramatic changeover in the functional systems in the organization. The organizations must deal in-depth with the HR before implementing ERP as it is the custom of the people to resist in adjusting to the new changes. Everybody is contented in functioning in a known way and evade new working systems and responsibilities, even if the new system helps them with simpler and easier methods.

Benefits of Human Resources through ERP Implementation

People will obviously judge their share of benefits by adjusting to the new working environment, and so everybody must be convinced with enthusiasm about the positive aspects of ERP implementation. To some people belonging to powerful positions, the changes can be threatening to them as the fear of losing their influence creep in. Implementation of technology can be successful only if it reaches the masses. Thorough information must be provided to the people to educate about the ERP factors erasing the wrong notions from their minds.

Different methodologies are adopted by different organizations to win the support of their human resource.



1. The organization should deal specially with the influential employees whose opinions greatly influence other colleagues and workers, as the changes may result in degrading their importance. They must be picked and trained duly by the team and convert them to assets of ERP implementation.

2. The pyramidal structure of the organization must be reduced as far as possible to make the ERP team more co operative, effective and efficient.

3. The ERP implementation must be led by energetic leadership that can build a good team, have a wise vision of future and provide due support to the team members.

4. Clear and transparent communication, training and retraining the work force through intranet and documentation and lastly awarding due incentives to the users, all contribute in successful ERP implementation.





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