ERP Human Resource Management Readiness Framework Integrating Prioritization, Roadmaps, Risk Mitigation, McKinsey 7S

Abstract

Enterprise Resource Planning (ERP) for Human Resource Management is widely adopted to improve operational efficiency, data accuracy, and decision-making. However, successful implementation depends on organizational readiness. This study assesses ERP readiness using the McKinsey 7S Framework, which evaluates Strategy, Structure, Systems, Style, Staff, Skills, and Shared Values. A mixed-methods approach was employed through questionnaires and interviews. Data were collected from 30 employees using 22 indicators measured on a five-point Likert scale. Validity testing confirmed that all indicators were valid, and the overall Cronbach’s alpha of 0.942 indicated excellent reliability. The readiness assessment showed that all seven dimensions were classified as Ready, with average scores ranging from 4.51 to 4.62. Structure achieved the highest readiness score (4.62), while Skills obtained the lowest score (4.51). Readiness profile analysis further revealed that Strategy achieved the highest profile score (18.23), reflecting strong organizational direction and planning for ERP adoption. Interview findings identified challenges related to manual attendance recording, payroll processing, and fragmented employee data management. The results indicate that the organization is ready for ERP HRM implementation. Recommendations, an implementation roadmap, and risk mitigation strategies are proposed to support successful ERP adoption.