Organizational Management in SAP HCM
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  • 1. Organizational Management andIntegrationPresented by – Divyasri GThe most important adage and the only adage is, the customer comes first, whatever thebusiness, the customer comes first -Kerry Stokes
  • 2. OVERVIEW OF THE TOPICS COVEREDAim• To understand the process flow for the Sub Module ‘Organizational Management’ and map the business scenarios as per the Client’s Requirement.
  • 3. Benefits• Maintenance of the organizational structure, Forecast of Manpower requirements, Realigning responsibilities, Introducing New jobs.• Streamlining Business processes and maintaining reports timely and accurately.• Maintenance of Master data for the client.• Maintenance of reports like Organizational Plan, Hierarchical Structures in the organization , Employee’s position and placement in the company .
  • 4. SAP Applications Required• SAP Enhancement package 4 for SAP ERP 6.0 and above.Target Audience• SAP Functional Consultants• Process Owners• Senior Managers
  • 5. ORGANIZATIONALMANAGEMENTIntroduction, Configuration and Reports
  • 6. WHAT IS ORGANIZATIONAL MANAGEMENT?Organizational Management is a sub Module of SAP HCM which enables the organization to• Depict the organizational and reporting Structure and the current Organizational plan• Analyze the current Organizational plan• Create additional organizational plan• Create effective workflow management
  • 7. ORGANIZATIONAL PLANOrganizational plan depicts the functional, organizational and reporting structure between the positions in an enterprise.StructureAn organizational plan is made up of several separate hierarchies and catalogs that are related to one another.
  • 8. The following are the hierarchies and catalogs (elements)• An Organizational Structure• Staff Assignments• Reporting Structure• A job Index• A work center plan• A task catalog
  • 9. AN OVERVIEW OF AN ORGANIZATIONAL PLAN IN ANENTERPRISE
  • 10. ORGANIZATIONAL OBJECTSObjects are used to create an organizational plan.The following are the objects used in anorganizational plan.Organizational unit (O)Position (S)Job(C)Person (P)Cost Center (K)Task(T)Work Center(A)
  • 11. CHARACTERISTICS OF AN OBJECTAn Object comprises of• A short and long description• An 8 digit ID number• A relationship which defines the link between the object and other object• Specific object characteristics• A validity period and a time constraint• A status indicator
  • 12. OBJECT TYPES, KEYS AND ICONS
  • 13. RELATIONSHIPSRelationship between two objects creates a hierarchyand that depicts the enterprise’s OrganizationalStructure.A relationship between two objects can be•Hierarchical•Lateral•Unilateral
  • 14. RELATIONSHIPS OF OBJECTS
  • 15. INFOTYPES USED IN ORGANIZATIONAL MANAGEMENTOther than relationships defined to an object, we also maintainthe object characteristics and information in Info types• The Infotypes in organizational Management start from 1000 and have the range 1000-1999.
  • 16. There are a list of Infotypes maintained for eachobject.i.e. For the object Organizational Unit the info typesmaintained are1. Object (1000)2. Relationship (1001)3. Description (1002)4. Account Assignment (1008) and Various Other InfotypesThe following Table has the list of Info types that maintained for each object.
  • 17. INFOTYPES ORG. UNIT POSITION JOB TASKObject (1000) √ √ √ √Relationship(1001) √ √ √ √Description (1002) √ √ √ √Department/Staff (1003) √ √ √ XCharacter(1004) X X X √Planned Compensation (1005) X √ √ √Vacancy (1007) X √ X XAccount Assignment (1008) √ √ X XWork Schedule (1011) √ √ X XEmp Group/Emp SubGroup (1013) X √ √ XObsolete (1014) X √ X XCost Planning (1015) √ √ X XStandard Profiles (1016) √ √ √ √PD Profiles (1017) √ √ √ XCost Distribution (1018) √ √ √ √Addresses (1028) √ √ X X
  • 18. PLANNING TOOLSIn order to have an effective Organizational Management Component inthe enterprise, we use the following Planning tools.•Status – Streamlining our planning process using the statuses active, planned, submitted, approved, rejected.•Plan Versions – In order to not affect the active plan version, we can maintain different plan version to plan and evaluate possible organizational changes.•Validity Dates – Validity dates are defined to maintain the life span of an object.•Time Constraints – Time constraints are used by the system to protect the various attributes and characteristics of Info types, Subtypes and Relationships.• Aspects – To filter out the type of the objects that can be maintained and the type of info types that can be maintained for each object we use aspects.
  • 19. OBJECT STATUS MAINTAINEDStatus of an object in Organizational management identifies the currentstanding of an object.There are five statuses in organizational management for an Object which aremaintained in an info type. A status must be assigned to every object. Usually all objects are assignedthe status Active by default in organizational management.
  • 20. Applying status to objects and infotype records in Organizational Management,depends on the method you use to maintain an organizational plan.Status attributes:Active: Indicates that an object is currently operable. We have unrestrictedactivities i.e. we can create, change, display, delimit, delete and list when usingactive objects.Planned: Indicates that an object is proposed or anticipated, but not currentlyoperable. We can create, change, display, delimit, delete and list when usingplanned objects.Submitted: Indicates that an object has been submitted for review and subsequentapproval/rejection. We cannot create objects with submitted status. Nor can wemake changes.Approved: Indicates that an object, previously submitted for review, is accepted orauthorized. By changing the status to active, we can edit the object (create, change,display, delimit, delete and list).Rejected: Indicates that an object is rejected or turned down. We can only displayobjects with rejected status. However, We can change the status to planned so thatyou can work with the object again.
  • 21. PLAN VERSIONSPath DescriptionEasy Access IMG Personnel Management  Global Settings in PersonnelMenu Management Plan Version Maintenance  Maintain Plan VersionsTransaction SM30  T778PCode
  • 22. Path DescriptionEasy Access IMG Personnel Management  Global Settings in PersonnelMenu Management Plan Version Maintenance  Set Active Plan VersionTransaction SM30  T77S0SCCode
  • 23. MAINTAINING NUMBER RANGESPath DescriptionEasy Access IMG Personnel Management  Global Settings in PersonnelMenu Management Plan Version Maintenance  Maintain Plan VersionsTransaction SM30  T778PCode
  • 24. STRUCTURES IN OMAn organization consists of Organizational units,Positions, Persons, Etc. Creation Of thesestructures are not restricted to only certainrequirements. The objects and the relationshipsare used by the Structure in a certain way definedby Evaluation Path.Using Objects, Relationships, and evaluation pathswe can create a lot of structures.
  • 25. EVALUATION PATHTCODE – OOAW
  • 26. An evaluation path allows you to focus inquiries/reports onobjects which are affected by certain relationships.We can select an Evaluation Path and maintain its propertiesor create an evaluation path starting with Z.E.g. : Evaluation Path - PLSTE (Position overview alongorganizational structure)Position overview along organizational structureThis evaluation path provides an overview of positionassignments. It uses an organizational unit as its startingpoint, and reads the underlying structure. Relationshipsbetween positions are taken into account.P.S. The important structures required for Reporting are givenlater.
  • 27. INTERFACES USED TO CREATE ORGANIZATIONAL STRUCTUREThere are three methods which could be usedcreating the organizational Structure.They are•Organization and Staffing Mode•Expert Mode•Simple Maintenance
  • 28. ORGANIZATIONAL AND STAFFING MODEThe Organizational and staffing mode presents you with a compact view of the organizational plan . Through this interface we can1. Search2. Select3. Display/Modify Structures4. Display/Modify Objects
  • 29. Area Quadrant PurposeSearch Area Left-top We can search for individual organizational objects according to search functions. The results of these search functions are displayed in the selection areaSelection Area Left-Bottom We can expand or contract structures and select an object in the selection area by double-clicking it.Overview Area Right-Top We can see different structures of the selected object in the overview area and select any displayed object to see its details in Detail AreaDetail Area Right-Bottom This area displays information on the object selected in the Overview area. This information can be edited and saved.
  • 30. SEARCH OVERVIEWSELECTION DESCRIPTION
  • 31. STRUCTURE CREATION UNDER ORGANIZATIONAL AND STAFFING MODEPath DescriptionEasy Access User menu  Human Resources  OrganizationalMenu Management Organizational Plan  Organization and Staffing  CreateTransaction PPOCECode The above path/Transaction allows you to create a new root Organizational unit. In the transaction PPOCE, we create the root Organizational unit and to create the subordinate units we use the Transaction Code PPOME
  • 32. Creating the Root Org Unit
  • 33. Path DescriptionEasy Access User menu  Human Resources  OrganizationalMenu Management Organizational Plan  Organization and Staffing  MaintainTransaction PPOMECodeThe transaction PPOME is used in theorganization and staffing mode to modify/addadditional Organizational units or Positions to theexisting root organizational unit.The transaction PPOSE is used in the staffingmode to display the organizational units andstructure.
  • 34. When we select the organizational unit andselect create, the system would ask whether wewant to create an Organizational Unit or APositionBased on the object to be created, we select thetype of relationship .
  • 35. Departments Created
  • 36. E.g. The previous slide consists of a screen shot with the Organizational units created under the Root Organizational Unit ‘DS Enterprise Pvt Ltd’.For the root Unit, We are creating a Position ‘MD’. For the same weselect the Org. Unit ‘DS Ent’ and Select create. The System would askus what object is to be created as shown in the next slide.
  • 37. Here We create the position and Assign the chiefposition to it.The Next slide gives us the various positions createdunder the departments Production, Operations andHR.
  • 38. Departments andPositions Created for the Org. Unit Visakhapatnam Location
  • 39. TASK ASSIGNMENTFor human resources purposes, tasks are individualduties, responsibilities, or assignments thatemployees are required to perform, for example,answer phones or design publications.You can use tasks for the following:To describe jobs and positionsJob and position description is done by creatingand maintaining tasks, and creating relationshipsbetween the tasks, and jobs and positions, usingthe Relationship infotype (1001).
  • 40. Select the objectyou want to assignthe task and select Create
  • 41. When We select create, the system asks us whichtype of relationship needs to be created. Here weselect the Relationship B007 ( is described by)which assigns the task to the Object.After selecting the relationship, the systemassigns a task(New Task) to the object (herePosition Holder).
  • 42. Here we select the Task and right click and select Assign
  • 43. When We select assign, the system would askus to select the type of task we want to assignto the person. Here the system is asking us toselect between Standard task (TS) andCustomized tasks(T)
  • 44. In the choose relationships window, if we select Standardtasks, the system will give us a list of options from wherewe can choose the task that suits our requirement.
  • 45. In the choose relationships window, if we select Tasks, the systemwill give us a list of options from where we can choose the task thatsuits our requirement
  • 46. We have Assigned the Task Personnel Management under tasks. Personnel taskhas a task catalog which is assigned to the Person (Here G Divya-MD). Thedescription area gives us the details about the type of the task and the variouscharacteristics of each sub task in the task catalog.
  • 47. STRUCTURE CREATION UNDER EXPERT MODEPath DescriptionEasy Access User menu  Human Resources  OrganizationalMenu Management Expert Mode In the menu, under the expert mode option, we have the following list of options to create the required object and the relationship for each of the object TCODE OBJECT CREATED/MAINTAINED PO10 Organizational Unit PO03 Job PO13 Position PO01 Work Center PFCT/PO14 Task Catalog PP01 General
  • 48. CREATING/MAINTAINING AN ORGANIZATIONAL UNITTCODE - PO10
  • 49. In the previous slide when we select object and select create, the system opens thefollowing screen In the above screen , we give the details of the object i.e. Planning Status (by default selected as Active), Validity of the object and other attributes like Abbreviation, Name.( Here We have created An org. Unit ‘DS Ent’ ) Once all the details are given, we save the entries. Once saved the System would automatically take us to the Essential Relationships Screen.
  • 50. For this Example, the root Org. Unit is “DS Ent”. We do not make any entries andexit. Here we do not assign any entries as the subordinate organizational unit areyet to be created and the subsequent positions if any.
  • 51. In the previous slide, we did not create any relationship. However, when we createSub Unit for the root org. unit ‘DS Ent’, in the relationship tab, the system asks uswhich relationship do we choose for the Org. Unit Visakhapatnam in order to beassigned to the ‘DS Ent’. Here we select the appropriate Relationship applicable.
  • 52. For the Root Org. Unit “DS Ent” , We create the following Sub Units Visakhapatnam,Hyderabad and the departments Production, Operations and HR for each Sub Unit.Shown in the following slides are the relationships created between the Root Org.Unit DS Ent and the various Sub Org. Units, Org. Unit (Location) Visakhapatnam created as a sub unit for the Root Org. Unit Org. Unit (Location) Visakhapatnam created as a sub unit for the Root Org. Unit
  • 53. For the Root Org. Unit we havecreated a position MD using theTransaction PO13(create/maintain Position) Here we are defining that the Root Org. Unit is managed by The position MD.
  • 54. For Each Sub Unit created as per the location, We Have defined thedepartments as follows The Location Hyderabad has The Location Visakhapatnam Three Departments has Three Departments 1. Production 1. Production1 2. Operations 2. Operations1 3. HR 3. HR1 Shown in the next slides are the relationships and the Departments created for each location.
  • 55. Departments created for The location Visakhapatnam
  • 56. CREATING/MAINTAINING POSITIONTCODE – PO13
  • 57. In the previous slide when we select object and select create, the system opens thefollowing screen In the above screen , we give the details of the object i.e. Planning Status (by default selected as Active), Validity of the object and other attributes like Abbreviation, Name.( Here We have created the position ‘MD’ ) Once all the details are given, we save the entries. Once saved the System would automatically take us to the Essential Relationships Screen. We create the subsequent relationships for this position Based on the requirement and the Job of the position.
  • 58. Here we are assigning this position to the Org Unit ‘DS Ent’ Here we are defining the Job for the position created.P.S. Apart from the above relationships, We have also created other relationships wherein MD is the linesupervisor of all the Heads of Departments
  • 59. For each Location i.e. Visakhapatnam and Hyderabad we have created the following Positions.For Visakhapatnam Location For Hyderabad Location1. Production1 1. Production Production Head VP  Production Head Production Manager VP  Production Manager Asst Production Manager VP  Asst Production Manager2. Operations1 2. Operations Operations Head VP  Operations Head Operations Manager VP  Operations Manager Asst Operations Manager VP  Asst Operations Manager3. HR1 3. HR HR Manager VP  HR Manager Asst HR Manager VP  Asst HR Manager HR Executive VP  HR ExecutiveP.S. The position ‘Head’ of each department i.e. Production Head, HR Manager,Operations Head for both the locations report to the Position ‘MD’. All the otherpositions that is Mangers and Assistant for each department report to the respectivedepartment Heads. Please find the related screenshots attached in the next slide.
  • 60. For the Department Production1, the position ‘Production Head’ has the followingrelationships maintained in the relationship infotype.
  • 61. CREATING/MAINTAINING JOBTCODE- PO03
  • 62. In the previous slide when we select object and select create, the system opens thefollowing screen In the above screen , we give the details of the object i.e. Planning Status (by default selected as Active), Validity of the object and other attributes like Abbreviation, Name.( Here We have created the job ‘Manager’ ) Once all the details are given, we save the entries. Once saved the System would automatically take us to the Essential Relationships Screen. We create the subsequent relationships for this Job.
  • 63. The Job ‘Manager’ Has been assigned the following positions. The Jobdefines the type of work these Positions are assigned. Here theRelationship used is 007 (Described by).The Next Slide gives us the Jobs created and the positions assigned tothem.
  • 64. The Job ‘Head Of Department’ has all the Chief positions assigned to it.The Job ‘Executive’ has all the Executive Positions assigned to it.
  • 65. ASSIGNING TASK TO POSITIONSTCODE – PO14
  • 66. In The previous Screenshot, If we Select the Object and select create , the followingscreen will come up wherein we create our required Task under the Task Catalog T. We can also create Tasks using TCODE – PFCT. When this TCODE is used, we have a screen which gives us a list of Tasks predefined in the system, custom defined. Here in this catalog also we can create our Tasks and Assign the subtasks.
  • 67. In the previous screen, when we select Task and select create, The system allows us tocreate new task and a task catalog . For the Task HR Admin created using transaction PO14,
  • 68. We can create the subtasks in the Task Catalog Screen. By selecting ourrespective task in the task catalog screen and selecting on create. Tesystem would give us an option to create the subtasks Select the task and then create
  • 69. The above subtasks were created for The Task HR Admin and has beenAssigned to the Position HR Executive.
  • 70. When the Task ‘HR Admin’ is Assigned to the Position ‘HR Executive’ bydefault the subtasks are assigned to the position.
  • 71. STRUCTURE CREATION UNDER SIMPLE MAINTENANCEPath DescriptionEasy Access User menu  Human Resources  OrganizationalMenu Management Expert Mode  Simple Maintenance  CreateTransaction PPOC_OLD- CreateCodeIn this mode of creation for structure, The System follows branch wisecreation of organizational units and positions. The initial screen where weenter the root org. unit is as follows
  • 72. Here we create the Root Org. Unit DS Ent. To the same we are creating SubOrg. Units Visakhapatnam And Hyderabad. Select the Org. Unit and select createA window would come up which would ask us to create the sub units asshown in the next slide
  • 73. The following are the Sub Units created under the Org. Unit ‘DS Ent’.
  • 74. The following are the Departments created under each Location Visakhapatnamand Hyderabad using the similar method of selecting each Org. Unit and thengiving the list of Org. Units that have to be created.
  • 75. CREATING/MAINTAINING POSITIONFor Creating A position under an Org. Unit (Here DS Ent), we should firstselect staff assignment tab in the maintenance view.The system would then respond and enables the position creation andassignment actions for this mode.
  • 76. Here in this screen we select the Org. Unit for which the Position has tobe created and then click on create position.
  • 77. Once we select the position, the system would prompt us to give the details forthe position created. The first Dialog box would ask us the type of job for theposition we are creating. We have a choice to select from the existing jobs or wego ahead and create the job required as per our requirement.Here we create the job as per our requirement. After we create our job, then wecreate the position and assign the validity for the Position created. Here The jobassignment is done to the position once the position is created.
  • 78. The following are the positions created for the Location Visakhapatnam for thedepartments Production1, Operations1 and HR1.
  • 79. ASSIGNING HOLDER/PERSON TO THE POSITIONTo assign a Person to the position created, we need to select the position andthen select the Assign Holder. The system would prompt us to enter the dataas to who would be the holder for the position. Here we give in the Emp Personnel Number
  • 80. Here We are assigning the Person 265012 to the Position ProductionManager for the Location Visakhapatnam.Once we assign the Person, we would be able to see theassignment in the organization Structure as below
  • 81. The following is the structure of HR department with all the PositionsAssigned to Persons.
  • 82. ASSIGNING TASKS TO THE POSITIONIn this Interface, Assigning Tasks is done by selecting the object (here Person)and assign the task.Select the Person for which the task needs to be Assigned and thenselect Task Profile.
  • 83. The task profile for the Person is Displayed. We also see the relationshipsexisting for the Person. Task could be created for the Holder i.e. HR Manager,or to the Job i.e. Head Of Department.Here we are creating the task to the Holder i.e. HR Manager. We select theobject S Holder and select the task profile.The system would give us a list of predefined tasks from which we can selectone task that is according to our requirement. The task selected should berelevant to the Position and the Job.
  • 84. The Task ‘Strategic Tasks ‘ is selected and assigned to the holder and correspondingtask catalog is also assigned to the Person.
  • 85. The following is the Task Catalog assigned to the Holder HR Manager. The TaskStrategic Tasks has sub tasks assigned to it.For the Position MD, The following are the tasks assigned. The taskAF_approve is SAP Standard Task assigned to the MD.
  • 86. The Structure according to the tasks Assigned to the Person for the Position MD.
  • 87. STANDARD STRUCTURE REPORTS WITH EVALUATION PATH1. Organizational Structure with Evaluation Path ORGEH (Org. Structure) TCODE – S_AHR_61016493
  • 88. Structure Display
  • 89. Structural Graphics
  • 90. 2. Organizational Structure with Evaluation Path PLSTE (Org. Structure with Positions) TCODE- S_AHR_61016494
  • 91. Structure Display
  • 92. Structural Graphic
  • 93. 3. Organizational Structure with Evaluation Path O-O-S-P (Org. Structure with Staff Assignments) TCODE- S_AHR_61016528
  • 94. Structure Display
  • 95. Structural Graphics
  • 96. 3. Organizational Structure with Evaluation Path PERS-O(Org. Structure with Persons) TCODE- S_AHR_61016495
  • 97. Structure Display
  • 98. Structural Graphics
  • 99. 4. Reporting Structure with Evaluation Path ORGA (Reporting Structure without Persons) TCODE- S_AHR_61016512
  • 100. Structure Display
  • 101. Structural Graphics
  • 102. 5. Reporting Structure with Evaluation Path ORGA-P (Reporting Structure without Persons) TCODE-S_AHR_61016513
  • 103. Structure Display
  • 104. Structural Graphics
  • 105. Structure Display
  • 106. Structural Graphics
  • 107. AUTHORIZATIONSSAP Controls authorizations by creating roles. A role is agrouping of privileges, which can be assigned to databaseusers, user groups, or other roles.A role is created using the ’CREATE ROLE‘ statement. Thisrole is initially empty. Only database users belonging todatabase user class DBA are able to create roles . The newrole name cannot be the same as the name of any otherrole, a user, or a user group.A role can be assigned to database users, user groups, orother roles using the GRANT statement and specification ofthe role name.
  • 108. User-specific menus can be displayed for users after they have logged on to theSAP System by using either pre-defined roles or roles you created.In the normal course of business each users is assigned with some activitiesand restricted to others to ensure that business data is always secure. Tocomplete these assigned activities users need to access the different SAPtransactions, reports, or Web-based applications in the SAP. To meet thisrequirement SAP user needs to assign a role. This role can be either assignedfrom SAP predefined roles or a new role can be created to meet the clientsspecific requirement.While assigning a role to the users, the following points needs to be kept inmind:•Separate menu should be created and assigned to each role• Only required authorization, task and activities needs to be added in each authorization profile•Necessary restrictions needs to be imposed to ensure data securityIn the standard SAP a role can be assigned to user either:•Directly from predefined SAP roles.•By Changing predefined roles•By creating new roles
  • 109. Role Creation Through Derived method using an Existing role CH_ADMI (HR-Administration Switzerland)TCODE-PFCG
  • 110. Here We have created a Test Role TEST_ROLE. Here we are creating a single role. Hence we select the Create role button. In SAP standard system we have two types of roles 1. Single role 2. Composite role
  • 111. After we create the role, the system opens the following window wherei n wedescribe, define the menu, give the authorizations and the users.
  • 112. Description of the role, wherein we mention as to whom the role is assigned.Also in the same screen we give the role from which TEST_ROLE is being derivedin the Derive from Role field.
  • 113. Here the original role is CH_ADMI, which has been already defined and is a singlerole.
  • 114. Once saved the system gives us an option if we want to delete the inheritancerelationship.
  • 115. After we create the TEST_ROLE, we need to generate the role. This is donethrough the original role from where we tell the system to generate the role.Here we are currently in the Authorizations tab of the Role CH_ADMI. Select this option
  • 116. Click on generate forgenerating the derived role
  • 117. When we click on generate the system responds as follows.
  • 118. Once the rule is generated, it would display the status as generated.
  • 119. When we select TEST_ROLE , we see that the Menu, Authorizations Tab have turnedgreen, i.e. it has inherited the attributes of the Original role CH_ADMI
  • 120. The Menu tab has the Role menu inherited from CH_ADMI.
  • 121. The Authorizations Tab has the following status. Here the Profile name is givenby the system, which can be changed
  • 122. When we select the change Authorization Data, We come on to this screen,which gives us the authorizations that exist for this role. Here we can makeany changes or control the user access .
  • 123. When we expand the Personnel Planning tab under Human Resources, we have thefollowing screen.
  • 124. Selecting the organizational level in the previous screens gives the followingtable. Here we define the organizational levels and objects for the authorizationcheck in Customizing. We can use them to control the authorization check forindividual organizational units.
  • 125. Under the User Tab, we give in the users, User Id to whom we are assigning the roleand to what date are we assigning he role or giving him access.
  • 126. Authorization Main Switches Table- V_T77S0 Group - AUTSW
  • 127. INTEGRATION
  • 128. INTEGRATION WITH PERSONNEL ADMINISTRATION Personnel Administration Organizational ManagementTables Objects For: For: RHINTE10 • Jobs • Jobs •Positions •Positions/Work Center RHINTE20 •Work Center •Organizational Units •Organizational Units RHINTE00IT0001 (ORGANIZATIONAL RELATIONSHIPS ASSIGNMENT) RHINTE30
  • 129. OM PA Integration Switches We determine the nature of the integration between organizational management and Personnel administration by maintaining integration switches in the following table.
  • 130. ?
  • 131. THANK YOU