1. Human Capital Management Part I (Function, Structure, and Master Data) EGN Enterprise Systems Integration Fall, 2015

2. Human Capital Management Part I (Function, Structure, and Master Data) Concepts & Theories

3. Human Resources Management
Manage requirements for human resources to support company current needs and future growth.
Typical HR Functions:
Planning and job analysis,
Recruitment and selection,
Training and development,
Performance management,
Compensation and benefits, and
Employee and labor relations.

4. HCM Process in the Employee Lifecycle
12-28

5. Leveraging HCM for Organizational Performance Improvement

6. Human Capital Management SAP Implementation

7. SAP Module View Integrated Solution Client / Server Open Systems
Financial
Accounting
Sales &
Distribution
Materials
Mgmt.
Controlling
Production
Planning
Fixed Assets
Mgmt.
Integrated Solution
Human
Resources
Project
System
Client / Server
Quality
Maintenance
Open Systems
Workflow
Plant
Management
Industry
Solutions

8. Business Process Integration
ECC 6.0
January 2008
Business Process Integration FI MM
HCM PP SD
Transactions
Master Data MM PP SD
Org Data
Rules MM PP SD FI FI FI
In the Business Process Integration class we use the stool as a metaphor for the SAP structure. There are four basic components needed to run execute SAP. Three of these are the legs of the stool: org data, master data, and rules. These ‘hold up’ the transactions. Transactions cannot be run unless these are setup.
The legs are typically configured during the implementation process.
During BPI 1 we will setup the stool for Finance, Materials management and Sales and Distribution. MM PP SD
HCM
HCM
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
HCM
© SAP AG and The Rushmore Group, LLC 2008

9. Business Process Integration
ECC 6.0
Business Process Integration
January 2008
HCM
Transactions
Master Data
Org Data
Rules
HCM
HCM
HCM
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

10. Organizational Data in HCM
Version 1.0
Organizational Data in HCM
January 2007
A hierarchy in which the organizational units in an enterprise are arranged according to task and functions.
Are static data and are rarely changed
Definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
The Rushmore Group, LLC

11. Structures of HCM Enterprise structure 2. Personnel structure
3. Organization Plan

12. Structures of HCM Enterprise Structure Personnel Structure
Version 1.0
January 2007
Structures of HCM
Enterprise Structure
Personnel Structure
Organizational Plan
The Rushmore Group, LLC

13. Version 1.0
1. Enterprise Structure
January 2007
It makes up the legal identity of the company. Every employee in an organization is included in the enterprise structure.
It usually is sub-divided, according to factors relevant to time management and payroll.
The Enterprise Structure is made up of the following elements:
Client
Company Code
Personnel Area
Personnel Sub-area
The Rushmore Group, LLC

14. Enterprise Structure (Client)
Client is the major organization unit in the system, and it is a self-contained unit.
Personnel data entered in a client can only be accessed in that client.
Data cannot be exchanged among clients.
If employees change clients, data have to be re-created in that new client.

15. Enterprise Structure (Company Code)
Company code is an independent accounting unit, and is also self-contained.
A set of accounts can be developed in the company code, and financial statements such as balance sheets and profit-and-loss statements are created at this level.

16. Enterprise Structure (Personnel area)
Personnel area is a sub-unit of the company code, usually based on location or division.
It is unique within a client, and is used primarily for personnel administration. It serves as a selection criterion for reporting, constitutes a unit for authorization check, and allows the user to generate default values for data entry, e.g., for the payroll accounting area.
It represents the “company and country version for payroll” view.

17. Enterprise Structure (personnel sub-area)
Personnel sub-area is a subdivision of a personnel area (such as a department).
It is used to identify groupings of employees assigned to a particular personnel area or company code.
It is usually used to represent the “location and public holiday calendar” view.
It is the level at which the primary organizational aspects of human resources are controlled. Its functions include specifying a country grouping, setting groupings for time management so that work schedules can be set up for individual personnel sub-areas, generating a default pay scale type and area for basic pay.
Each personnel sub-area must be unique to a company code

18. Enterprise Structure
12-7

19. Enterprise Structure
12-9

20. Enterprise Structure: Global Bike Group
Version 1.0
January 2007
Enterprise Structure: Global Bike Group
Global Bike Group
Global Bike US
Global Bike Germany
Marketing & Sales
Operations
Aministration & Financials
Administration
Financials
Security
The Rushmore Group, LLC

21. Enterprise Structure: Global Bike Group
Version 1.0
January 2007
Enterprise Structure: Global Bike Group
The Rushmore Group, LLC

22. Version 1.0
2. Personnel Structure
January 2007
Personal Structure is used to sub-divide organizations and employees according to factors relevant to time management and payroll.
Personnel Structure is made up of the following elements:
Employee Group
Employee Subgroup
Payroll Area
The Rushmore Group, LLC

23. Personnel Structure (Employee Group)
Employee group is the highest level, and defines the relationship between an employee and a company in terms of work
For example, employees can be grouped into active employees, pensioners, and early retirees.
Employee grouping is used to generate default values for payroll accounting area and basic pay;

24. Personnel Structure (Employee sub-group)
Employee sub-group is used to further classify employees with regard to their status.
For example, active employees may be classified as a trainee, hourly wage earner, non pay-scale employee, salaried employee, etc.
Employee subgrouping allows
applying a different payroll procedure to each different employee subgroup,
controlling the validity of wage types at the employee sub-group level, and
defining the validity of work schedules, attendance and absence quotas.

25. Personnel Structure (Employee Group vs. Sub-group)

26. Personnel Structure (Payroll Area)
Version 1.0
Personnel Structure (Payroll Area)
January 2007
Payroll Area
It groups employees together that are paid at the same time
E.g., Weekly, Bi-Weekly, Monthly
Payroll area is determined from a combination of the Employee Group and Employee Subgroup
number of employees in the payroll run
specific dates of the payroll run
The Rushmore Group, LLC

27. Enterprise Structure: Global Bike Group
Version 1.0
January 2007
Enterprise Structure: Global Bike Group
The Rushmore Group, LLC

28. 3. Organizational Plan in HCM
Organizational structure and plan are the comprehensive model of the structural and personnel environment in the enterprise.
Hierarchies and reporting relationships are determined.
Typical object types in Organizational structure and plan include
organizational units,
jobs,
positions,
tasks, and
persons.

29. Organizational Plan (Structure)
Using organization and planning, you can get a clear picture of your organization at any point in time: past, present or future. With this information, you can be proactive in planning for future human resource needs.
A company’s organizational structure is represented on the left as it may exist “today”. Using the Organization and Planning module, any type of reorganization can be planned, from changing position titles to restructuring entire divisions or departments.
The system offers a graphics-based environment to accomplish this task, with which you can visually move, add, and change objects quickly and easily.

30. Organizational Plan: Pen Inc
Version 1.0
January 2007
Organizational Plan: Pen Inc
Organizational Units
Person
Position
January 2007 (v1.0)
The Rushmore Group, LLC

31. Organizational Plan (Org. Units)
Organizational units reflect the various business units or departments in the enterprise.
An example of a functional structure would include accounting, sales, human resources, and manufacturing departments.

32. Organizational Plan (Jobs)
Jobs reflect the tasks, duties and responsibilities of the work being performed in the organization.
Typically, they are grouped in terms of similarity of tasks being performed. For example, analyst, specialist, manager, and supervisor.

33. Organization Structure (Positions)
Positions are more specific than jobs, and all of the information stored in a job is inherited by all of the positions created from the job.
Positions reflect individual employee assignments, and can be occupied by persons.
Position examples: Accounting Analyst, Logistics Specialist, Compensation and Benefits Manager, and Production Supervisor.

34. Organizational Plan (Persons)
Persons are assigned to positions in the organizational structure, and generally represent the employees in the company.
E.G., Ross Quarles is a person assigned to the position of Accounting Analyst; Fawzi Norman is a person assigned to the position of Logistics Specialist; Kathy Utecht is the Compensation & Benefits Manager; and Asa Kite is the Production Supervisor.

35. Organizational Plan (Tasks)
Tasks are specific duties and responsibilities undertaken by an employee in his/her position, as reflected in their job descriptions.
Tasks Example:
prepare accounting reports,
maintain warehouse inventory,
review salary surveys, and
oversee production scheduling.

36. Organizational Plan
The Organization and Planning module is the foundation for the Personnel Planning and Development Area.
Objects are linked to each other by relationships.
Linking organizational units results in the production of organizational charts.
Positions occupied by individuals belong to an organizational unit.
Within HR Planning the term “job” is used as a classification. Every position is described by a job.

37. Integration of Org. Mgt. with Personnel Admin.
5-11

38. Integration of Org. Management with Personnel Admin.
12-18

39. Enterprise Structure: Global Bike Group
Version 1.0
January 2007
Enterprise Structure: Global Bike Group
The Rushmore Group, LLC

40. HCM: Master Data Master data is relatively fixed
Version 1.0
HCM: Master Data
January 2007
Master data is relatively fixed
Record that contains all the necessary information to conduct business transactions
Information within a master record can and will change, our hope is that it does not change frequently.
Before making the master data configurations, you must have completely defined the organizational structures
The Rushmore Group, LLC

41. HCM: Master Data
A vast amount of HR data can be maintained in SAP ERP. Personnel data provide the basis for various HR transaction processing and reporting. Hence, its accuracy, timeliness, relevance, and completeness are crucial.
Typically, the data pertains to employee information which is entered into the system using
infotypes (types of information) and
HR Master Database which stores Infotypes.

42. HCM: Master Data (-continued)
Infotypes categorize information and enable data input, i.e., they are data entry screens which allow the entering of various types of information into data fields.
Similar types of information can be grouped by content to facilitate data entry.
Infotypes can be processed individually or through the fast entry mode (entering specific data for several employees at once).

43. HCM: Master Data (-continued)
Infotypes
- similar to view for materials, but more complicate:
creating (creating a new record with beginning and end dates),
changing (changing or correcting a record),
copying (using the initial record as a template),
delimiting (upon entering a delimitation date, records valid for that date are selected, and then setting the end date for that record to the day before the delimitation date), and
displaying (viewing but not changing records).
Over 600 HR infotypes are available to maintain employee and applicant data,
User can customize the number, types, and settings of infotypes to fit the business requirements of the company

44. HCM: Master Data (-continued)
HR Master Database is where HR data are stored.
Typically, employee information is stored in a personnel file which can be accessed by entering the employee’s assigned personnel number (usually generated internally by the system).
Information can be retrieved in a relational database format by accessing specific infotypes.
Several records of information on an employee can be reviewed, such as organizational assignment, basic pay, addresses, travel preferences, planned working time, etc.

45. HCM: Master Data (-continued)
For example,
if a manager wants to review the basic pay of an employee, the manager does not have to access the personnel file and review all of the records in order to reach basic pay. Rather, the basic pay infotype (i.e., 0008) can be accessed directly to retrieve the specific information.

46. HCM: Master Data - Employee Data
Version 1.0
HCM: Master Data - Employee Data
January 2007
Information must be recorded and maintained effectively for every employee
Infotypes (Information Types) are units of information that aid in the entry of master data and group like information together
Status of the Employee will determine what information should be gathered
Active vs. Intern
Exempt vs. Non-exempt
The Rushmore Group, LLC

47. Employee Data: Infotypes
Version 1.0
January 2007
Employee Data: Infotypes
Numerous infotypes will be created for each employee
Organizational Assignment must be the first infotype recorded
The Rushmore Group, LLC

48. Employee Data: Personnel Actions
Version 1.0
Employee Data: Personnel Actions
January 2007
Personnel actions are a series of predefined infotypes that are grouped together to speed the data entry process
Examples:
Hiring, Firing, Reassignment, Retiring
All above examples are a procedure that could be represented by a Personnel action
Personnel Actions enable the user to enter information about an employee without having to access each individual infotype
The Rushmore Group, LLC

49. Version 1.0
Personnel File
January 2007
Information maintained about an employee is stored in their Personnel File
The Rushmore Group, LLC

50. HCM: Employee Lifecycle
Version 1.0
January 2007
HCM: Employee Lifecycle
Birth
Death (Retire)
Work
Taxes
January 2007 (v1.0)
The Rushmore Group, LLC

51. HCM: Process/Functions
Version 1.0
HCM: Process/Functions
January 2007
Recruitment
Cost Planning
Reporting
Training and Development
Manage Work
Time (CATS)
Payroll
Administration
Hire Employee
ESS
Employee
Self-Service
Compensation
& Benefits
CATS : Cross-Application Time Sheet
The Rushmore Group, LLC

52. Exercises: (due date 10/10/2015)
1: Display Organization Plan.
2: Display personnel master record
3: Create positions
4: Create Career
5: Define requirement
6: Hire employee
7: Display organizational plan