“We’ll get so much from the new system,” said the corporate controller. “We’ll have much more detailed information on how much our products cost and their profitability, and we’ll be able to close month end more easily.” Meanwhile, there is grumbling and sarcastic praise for the system from other roles.
ERP systems can provide many benefits, and when people talk about the benefits of an ERP system, they talk about the benefits the organization, in general, will receive. But of course, organizations are made up of people, and people in organizations have separate roles. An ERP system will not affect all roles equally and may make some roles harder or less rewarding, and that’s an issue. The idea that changes in job roles should be addressed is a solution hiding in plain sight.
When making an ERP decision, companies weigh the costs and benefits of the system at a corporate level. Considering costs and benefits at a more granular level, at the level of a role, or an individual, is important because costs and benefits only sometimes accrue evenly. That is, ERP systems might improve some jobs while making some jobs worse, and it’s important to understand how different jobs are affected.
For example, suppose people on the shop floor are asked to enter additional information so that customer service can provide that information to customers. That might benefit the organization but not the person on the floor entering the information. To them, it’s extra work. If they are already working full-time, expecting them to take on extra work without making other adjustments (taking work away) to free up more time is unreasonable.
There may be other job-related consequences to implementing an ERP system. Jobs that might have been challenging and rewarding in the past can become mundane if the system starts doing more work. Workers may have less autonomy or feel that their job is threatened.
The impact of the system on jobs should be considered during the design/build phase of the implementation. If the system adds significant work to someone already working at capacity, then changes will be required, or problems can be expected if the system turns a rewarding job into a mundane one.
When ERP systems affect jobs, and they usually do, two key elements of job design should be considered, and adjustments made as necessary.
Analysis – identifying the key skills, responsibilities, and tasks a job requires considering the new system. Are they aligned with the role’s previous skills, responsibilities, and tasks? Has the workload gone up or down? Is there more responsibility or less? What adjustments need to be made.
Enrichment – includes increasing the level of responsibility and autonomy in a job and providing employees with opportunities for growth and development. Will the system include more responsibility? If so, will it increase to a manageable level? Autonomy is a basic human need – does the system increase or decrease it?
Assuming that when a different system is put in place, all jobs will remain the same is naïve. Considering job design, particularly analysis, and enrichment, is essential both to the success of the project and the well-being of the people who use it.
