The Importance Of Using Erp Systems In Human Capital Reporting

Integrating information into internal reports amplifies top management decisions to implement a single database that gathers cross-departmental information from across the institution. Enterprise Resource Planning (ERP) systems create this possibility by integrating data flow and information exchange brings the advantage of easy access to information through simple, reliable and complete reports. The need to report financial and non-financial information is also a legal obligation specific to certain types of entities operating in the European Union vin addition to the internal need to account for financial information. Current research into the best methods of reporting human capital elements aims to improve managerial decision-making based on data processed in the finance-accounting and human resources departments of each organisation. It has to be mentioned that the non-financial motivation of employees is complementary to the financial one. In this paper, the processes that determine the results quantification are extensively analysed. The research methods, the functionality and quality of information due to ERP systems, the analysis and interpretation of data, the identification of legal procedures and their comparison aim to substantiate the best decisions on personnel policy. Therefore, this paper aims to be a catalyst in the decision-making processes on human potential and seeks to enrich the literature with quality and relevant information in such a complex field where results are so important for management, shareholders, investors, creditors, employees, the state with its bodies, researchers etc.