11 define grades

Partner Boot Camp –
Fusion HCM Global HR
Define Grades
Instructor Guide
August 08, 2013

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i
CONTENTS
Lesson 1: Define Grades..............................................................1
Objectives................................................................................................. 1
Grades Setup and Maintenance.................................................................... 2
Defining Grades ......................................................................................... 4
Grades ................................................................................................... 5
Grade Steps ............................................................................................ 6
Example of Grades with Steps ................................................................... 7
Example of Grades without Steps............................................................... 8
Grades and Sets ...................................................................................... 9
How Grades Work with Jobs and Positions................................................. 10
How Grades Work with Assignments and Employment Terms ...................... 11
Instructor Note: Activity Timing ............................................................... 12
Activity 1 Introduction: Creating a Grade .................................................. 13
Activity 1: Creating a Grade .................................................................. 14
Defining Grade Rates................................................................................ 16
Grade Rate Values ................................................................................. 17
Lookups for Grade Rates......................................................................... 18
Adding Rates to Grades .......................................................................... 19
Grade Rates Example 1 .......................................................................... 20
Grade Rates Example 2 .......................................................................... 21
How Grades, Rates, Sets, and Legislative Data Groups Work Together.......... 22
How Grades and Grade Rates Work with Compensation and Payroll.............. 23
Example of Grades with Rate Ranges........................................................ 24
Activity 2 Introduction: Creating a Grade Rate........................................... 26
Activity 2: Creating a Grade Rate........................................................... 27
Defining Grade Ladders............................................................................. 29
Grade Ladders ....................................................................................... 30
Ladders with Grades............................................................................... 31
Ladders with Steps................................................................................. 32
Activity 3 Introduction: Creating a Grade Ladder........................................ 34
Activity 3: Creating a Grade Ladder ....................................................... 35
Instructor Note: Demo Timing ................................................................... 38
Demonstration: Changing Profile Option Settings ......................................... 39
Review Question 1.................................................................................... 41
Review Question 2.................................................................................... 42
Review Question 3.................................................................................... 43
All Questions and Answers......................................................................... 44
Lesson Highlights ..................................................................................... 45
Lesson Highlight Details.......................................................................... 46

Lesson 1: Define Grades
Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1
Objectives
After completing this lesson, you should be able to:
 Define grades
 Define grade rates
 Define grade ladders

2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Grades Setup and Maintenance
 Initial setup for this activity is performed using Functional Setup Manager
- Workforce Deployment Offering: Define Enterprise Structures/Define
Workforce Structures
 Ongoing maintenance is performed from the Workforce Structures work
area
Define Grade Tasks
_______________________________________________________
Setup tasks in FSM under Define Grades:

 Manage Assignment Grade Lookups
 Manage Grade Descriptive Flexfields
 Manage Grades
 Manage Grade Rates
 Manage Grade Ladders
The ongoing maintenance tasks are:
 Manage Grades
 Manage Grade Rates

Defining Grades
This section describes:
 Grades
 Grade steps
 Grades and sets
 How grades work with jobs and positions
 How grades work with assignments and employment terms

Grades
Create grades to record the level of compensation for workers. You can create grades
for multiple pay components, such as salary, bonus, and overtime rates. You can define
one or more grades that are applicable for jobs and positions. This list of valid grades,
combined with the settings for two profile options, enables you to restrict the grades that
can be selected when you set up assignments or employment terms for a worker.

Grade Steps
Grade steps are distinct increments of progression within a grade. You can set up
grades with or without grade steps.
The following figure illustrates the difference between grades with and without steps.

Example of Grades with Steps
The grade structure for annual salary amounts for administrative workers in InFusion
Corporation includes five grades, and each grade includes five steps. When workers
move from one grade to another in this ladder, they do not always start at step 1 of a
grade. Their next step is based on their previous salary plus two steps. For example, a
worker could move from Step 3 in Grade 1 to Step 2 in Grade 2.
The following table lists the three grades, steps, and the rates associated with them for
administrative workers at InFusion Corporation.
To set up a grade structure to reflect this table, perform the following tasks:
1. Set up three different grades and add three steps for each grade.
2. Set up a grade ladder using the Grades with Steps type, and select all three
grades.
3. Set up step rates for annual salary amounts using the rates in the preceding
table.

Example of Grades without Steps
The grade structure for annual salary amounts for level 3 managers at InFusion
Corporation includes grades without steps. The grade rates are fixed amounts.
The following table lists the grades and associated rates for level 3 managers at
InFusion Corporation.
To set up your grade structure to reflect this table, perform the following tasks:
1. Set up eight separate grades.
2. For each grade, enter the rates from the preceding table.
3. Set up a grade ladder with the Grades type and add all eight grades to the
ladder.

Grades and Sets
You assign each grade to a set. If you assign a grade to the common set, then the
grade is available for use in all business units. To limit a grade to a single business unit,
you can assign it to a set that is specific to that business unit.

How Grades Work with Jobs and Positions
You can define one or more grades that are applicable for each job and position. This
list of valid grades, combined with the settings for two profile options, enables you to
restrict the grades that can be selected when you set up assignments or employment
terms for a worker.
If you use positions, then the grades that you assign to jobs are the default grades for
the positions that you associate with each job. You can use the default grades for the
position, remove ones that don't apply, or add new ones

How Grades Work with Assignments and Employment
Terms
When you set up assignments or employment terms, you can select the applicable
grade for the job or position. Two profile options determine the grades that are available
for selection. The first profile option is PER_ENFORCE_VALID_GRADES. If you set
this site-level profile option to Yes, then users can select a grade only from the list that
you defined for the job or position.
 If users select both a job and a position for the assignment or employment terms,
then they can select grades that are valid for the position only.
 If valid grades are defined for neither the job nor the position, then users can
select from all grades
If you set this profile option to No, which is the default value, then users can select from
all grades.
The second profile option is PER_DEFAULT_GRADE_FROM_JOB_POSITION. If you
set this site-level profile option to Yes, and there is only one valid grade for a job or
position, then that grade is used by default in the assignment or employment terms. In
addition, if an entry grade is defined for a position, then that grade is used by default
when the user creates a new set of employment terms or a new assignment.
If you set this profile option to No, which is the default value, then users can select from
all grades.

Instructor Note: Activity Timing
The course was designed for you to facilitate learners doing the specified activity, at this
point.
Approximate Activity Timing: 10 minutes
.

Activity 1 Introduction: Creating a Grade
Background
You have set up grades for all of your divisions except the Financial Services division.
The job functions performed in this division are different from that of your other
divisions, so you require new grades that are more suitable.
Requirements
 Use the bold text for the object names, replacing the XX with your student
number, as indicated by your instructor
 You must have access to Oracle Fusion Application InFusion database or
comparable training or test instance at your site, on which to complete this
practice.
Activity Scope
Create a new grade for the Sales Executive job as well as the associated grade rates.
 Set: Common Set
 Name: XX_Sales Executive
 Code: XX_SALESEXEC
 Steps? No steps are needed
 Legislative Data Group (for rates): US LDG
 Rate Name: XX_Annual Salary Rate_Sales Execs
 Rate Type: Salary
 Frequency: Annually
 Currency: USD
 Specific amount or range? Range

Activity 1: Creating a Grade
In this activity, you create a new grade.
Sign in as hcm_impl or hcm_impl1.
Start Here
Setup and Maintenance work area Implementation Project: XX Workforce
Deployment page
These task lists are expanded: Workforce Deployment - Define Common
Applications Configuration for Human Capital Management - Define Enterprise
Structures for Human Capital Management - Define Workforce Structures - Define
Grades
Alternate navigation: In the global area Navigator menu under Workforce
Management, select Workforce Structures.
1. In the Manage Grades task row, click Go to Task.
Location: Manage Grades page
Information
Use the Manage Grades page to search for existing grades.
2. On the Search Results section toolbar, click Create.
Location: Create Grade: Grade Details page
3. In the Name field, enter XX Sales Executive.
4. In the Code field, enter XX_SALESEXEC.
5. Click Next.
Location: Create Grade: Grade Steps page
6. Since this grade does not contain steps, click Next.
Location: Create Grade: Grade Rates page
7. Since this grade does not contain rates, click Next.
Location: Create Grade: Review page

8. Review the details before submitting the grade.
9. Click Submit.
Location: Warning dialog box
10.Click Yes.
Location: Confirmation dialog box
11.Click OK.
Location: Manage Grades page
12.Click Done.
Location: Implementation Project: XX Workforce Deployment page
13.In the Manage Grades task row, click the Status icon button.
Location: Edit Status dialog box
14.In the Status field, select Completed.
15.Click Save and Close.
In this activity, you have created the XX Sales Executive grade.

Defining Grade Rates
 Grade rate values
 Lookup types for grade rates
 Examples of grade rates How grades, rates, sets, and legislative data groups
work together
 How grades and rates work with Oracle Fusion Compensation and Payroll

Grade Rate Values
Grade rate values are the compensation amounts associated with each grade. Grade
rate values can be either a fixed amount or a range of values, and you can set up rates
for different types of pay, such as salary, overtime, and bonuses.
Grade rates for some jobs or positions might include an hourly salary rate and an
overtime rate. Grade rates for other jobs or positions might contain a salary rate type
with a range of amounts and a bonus rate type with a fixed amount. Grade rates
typically serve only as a guideline to validate that the salary you propose during the
compensation process for a worker on a certain grade is appropriate for that grade.
However, in MEA they can drive the rate paid for many allowances in payroll. Grade
rates are optional.

Lookups for Grade Rates
Lookup types are lists of values in applications. One lookup type is available for grade
rates, and the customization level is extensible.
The GRADE_PAY_RATE_TYPE lookup type identifies the compensation components
for which you want to set up grade rates. The predefined values are salary, bonus, and
overtime.
You should review these predefined values, and add additional rate types to suit your
business needs.

Adding Rates to Grades
For grades that were created without steps, two options for adding rates are available:
 Add the rates at the same time as when you add the grade using the Manage
Grades task
 Add the rates separately using the Manage Grade Rates task
For grades that were created with steps, you must first add the grade to a grade ladder,
and then add the rates for each step in the Manage Grade Ladders task.

Grade Rates Example 1
This figure illustrates a grade that has two rate types associated with it. One is a salary
rate type that has a range of values, and the other is a bonus rate type with a fixed
amount.

Grade Rates Example 2
This figure illustrates a different grade that has two rate types associated with it. One is
a salary rate type that has a fixed amount, and the other is an overtime rate type that
also has a fixed amount.

How Grades, Rates, Sets, and Legislative Data Groups
Work Together
You assign grades to sets, and you assign grade rates to legislative data groups.
While grades may be common across different areas of your enterprise, grade rates
vary among the countries in which you employ people. For example, if your enterprise
has engineer jobs in the United States, the United Kingdom, and Australia, you can set
up grades for a set that is shared between the countries, but set up different grade rates
for each country in the applicable currency.
The following figure illustrates how you can use sets to share grades across multiple
business units and then change the grade rates for each legislative data group.

How Grades and Grade Rates Work with
Compensation and Payroll
Depending on the configuration of the legal employer to which workers belong, their
salary can be stored at either the assignment or employment terms level, and the grade
rate can be linked to the salary basis within the salary record. If this is the case, then
their salaries are validated using the grade rates. For example, assume an assignment
record for a worker indicates that he is in grade A1 and has a salary of 40,000.00 USD.
The grade rate range that is attached to grade A1 is 30,000.00 USD to 50,000.00 USD,
therefore, his salary is within the grade rate range, and no warnings are issued. If his
manager or a human resource (HR) specialist changes his salary to 55,000.00 USD, a
warning is issued that the new salary is outside his salary range.
In addition, compa-ratios and salary range positions for workers are calculated using the
minimum and maximum amounts that are defined in the grade rates for their grades.
Payroll elements reference grades in the eligibility criteria. For example, assume you
want to process a bonus for all workers who are at grade level A2. To accomplish this,
you would create an earnings element for the bonus and specify A2 for the grade in the
eligibility criteria. The result of this setup, when combined with additional eligibility
criteria that may be applied by the bonus plan, is that when payroll is processed,
workers who are at grade level A2 and who meet the additional eligibility criteria would
receive the bonus.

Example of Grades with Rate Ranges
The grade structure for annual salary amounts for senior executives at InFusion
Corporation includes grades with no steps, and the rates are set up using ranges.
The following table lists the rate range for senior executives at InFusion Corporation.
To set up a grade structure to reflect this table, perform the following tasks:
1. Create a single grade.
2. Create a grade rate and enter the minimum and maximum amounts from the
preceding table for the grade rate range.

point.
.

Activity 2 Introduction: Creating a Grade Rate
Background
You now need to create a bonus rate for the Sales Executive grade. You award sales
executives a bonus annually, and the amount is a range.
Requirements
number, as indicated by your instructor.
practice.
Activity Scope
Create a bonus rate for the XX Sales Executive grade that you created in the previous
activity.

Activity 2: Creating a Grade Rate
In this activity, you create a new grade rate.
Start Here
Deployment page
Grades
1. In the Manage Grade Rates task row, click Go to Task.
Location: Manage Grade Rates page
Location: Select Legislative Data Group dialog box
3. In the Legislative Data Group field, search for and select US LDG.
4. Click OK.
Location: Create Grade Rate page
5. In the Name field, enter XX Annual Bonus Rate Sales Execs.
6. In the Rate Type field, select Bonus.
7. In the Grade Rate Values section, click the Add Row icon button.
8. In the Grade field, enter XX.
9. Select XX Sales Executive XX_SALESEXEC Common Set COMMON
Common Set.
10.In the Minimum field, enter 4500.
11.In the Maximum field, enter 6500.

12.Click Review.
13.Review the details of the grade rate before submitting.
14.Click Submit.
15.Click Yes.
16.Click OK.
Location: Manage Grade Rates page
17.Click Done.
18.In the Manage Grade Rates task row, click the Status icon button.
In this activity, you have created the XX Annual Bonus Rate Sales Execs grade rate.

Defining Grade Ladders
 Grade ladders
 Ladders with grades
 Ladders with steps

Grade Ladders
Create grade ladders to group grades or grades with steps in the sequence in which
your workers typically progress. Grade ladders describe the grades or the grades with
steps to which a worker is eligible to progress. For grades with steps, grade ladders
also provide the compensation values associated with each step.
You can set up separate grade ladders for different types of jobs or positions in your
enterprise. For example, you may create three grade ladders for your enterprise: one for
technical grades, another for management grades, and a third for administrative grades.
Two types of grade ladders are available:
 Ladders with grades
 Ladders with steps
You cannot create a grade ladder with a combination of both grades and grades with
steps.

Ladders with Grades
You create ladders with grades by building a hierarchy of grades that were created
without steps. When you set up this type of ladder, only grades without steps are
available to add to the ladder. You do not define any grade rates when you set up a
ladder with grades; the rates for the grades within the ladder are inherited from the rates
that were added when you set up the grades. To add or edit rates for grades, you must
use the Manage Grade Rates task.

Ladders with Steps
You create ladders with grade steps using grades that were created with steps. When
you set up this type of ladder, only grades with steps are available to add to the ladder.
You define step rates and the values for each step when you set up the ladder, and the
rates are unique to each ladder. You cannot share step rates between grade ladders.
Example of Grades with Hourly Amounts
The grade structure for line workers at InFusion Corporation includes grades with steps,
and the rates are hourly amounts.
The following table lists the hourly rates for line workers at InFusion Corporation.
To set up your grade structure to reflect this table, perform the following tasks:
1. Create five grades, each with three steps.
2. Set up a grade ladder using the Grades with Steps type, and select all five
grades.
3. Set up step rates for hourly amounts using the rates in the table.

point.
.

Activity 3 Introduction: Creating a Grade Ladder
Background
There are five grades, with associated grade rates, created for administrative positions
at InFusion Corporation.
Requirements
number, as indicated by your instructor.
practice.
Activity Scope
Create a grade ladder for the administrative positions.

Activity 3: Creating a Grade Ladder
In this activity, you create a new grade ladder.
Start Here
Deployment page
Grades.
1. In the Manage Grade Ladders task row, click Go to Task.
Location: Manage Grade Ladders page
Location: Create Grade Ladder: Grade Ladder Details page
3. In the Name field, replace the existing text with XX Admin Grade Ladder.
4. In the Grade Type field, select Grade.
5. Click Next.
Location: Create Grade Ladder: Grades page
Information
First, search for grades to add to the ladder.
6. In the Name field, enter Admin.
7. Click Search.
8. In the Search Results section, select Admin5.
9. On the toolbar, click Add to Grade Ladder.
10.Select Admin4.

11.On the toolbar, click Add to Grade Ladder.
Location: Add to Grade Rate Hierarchy dialog box
12.Select At the top.
13.Click OK.
14.Repeat steps 10 through 13 for Admin3, Admin2 and Admin1.
15.Click OK.
16.Click Next.
Location: Create Grade Ladder: Rate Values page
17.In the Legislative Data Group field, select US LDG.
18.In the Grade Rate field, enter US.
19.Select US Annual Salary Grade Rate Annually Salary USD.
20.Click View Grade Rate.
Information
The minimum, maximum, and midpoint values are populated for each of the
grades.
21.Click Next.
Location: Create Grade Ladder: Review page
22.Review the details of the grade rate before submitting.
23.Click Submit.
24.Click Yes.

25.Click OK.
Location: Manage Grade Ladders page
26.Click Done.
27.In the Manage Grade Ladders task row, click the Status icon.
In this activity, you have created the XX Admin grade ladder.

Instructor Note: Demo Timing
The classroom environment is configured with these profile options set to N for (No):
PER_DEFAULT_GRADE_FROM_JOB_POSITION
PER_ENFORCE_VALID_GRADES
This means that when you hire an employee, you can select from any grades in the
Common Set when setting up the assignment.
If you want students to be able to see how setting these options to Yes enforces valid
grades that have been set up for the job when they perform the activity, use the steps in
the instructor demo to show how to first enable the profile options to be updated, and
then show how to update the profile options from N to Y (Yes).
Demo Timing: 10 minutes
.

Demonstration: Changing Profile Option Settings
Demonstration
Background
As the Human Resources (HR) specialist, you must maintain the profile
options.
Demonstration Scope
Change the settings for the PER_ENFORCE_VALID_GRADES and
PER_DEFAULT_GRADE_FROM_JOB_POSITION profile options
Demonstration Steps
Start Here
Setup and Maintenance work area
1. In the Search section Name field, enter Manage Profile Options.
2. Click the Search icon.
3. In the Manage Profile Options row, click Go to Task.
Location: Manage Profile Options page
4. In the Profile Option Code field, enter PER.
5. Click Search.
6. Select the PER_ENFORCE_VALID_GRADES row.
Note: The application loads the Profile Option Levels region with the profile
option that you have selected.
7. In the PER_ENFORCE_VALID_GRADES : Profile Option Levels region, click
the Updateable option for the Site, Product, and User levels.
8. Click Save and Close.
Location: All Tasks tab, Search page

9. In the Search section Name field, enter Manage Administrator Profile Values.
10.Click Search.
11.In the Manage Administrator Profile Values row, click Go to Task.
Location: Manage Administrator Profile Values page
12.In the Profile Option Code field, enter PER.
13.Click the Search button.
14.Select the PER_ENFORCE_VALID_GRADES row header.
Note: The application loads the Profile Values region with the profile option
that you have selected.
15.In the PER_ENFORCE_VALID_GRADES: Profile Values region, Profile Value
field, enter Y.
17.Repeat the above steps for the
PER_DEFAULT_GRADE_FROM_JOB_POSITION profile option.

Review Question 1
Which of the following determines what rate types are available?
1. A profile option
2. A lookup type
3. The legislative data group for which you are setting up the grade rate

Review Question 2
A grade ladder can contain both grades and grades with steps.
1. True
2. False

Review Question 3
Which profile options must you set to enforce grades at the assignment level?

All Questions and Answers
1. Which of the following determines what rate types are available?
A. lookup type (GRADE_PAY_RATE_TYPE)
2. A grade ladder can contain both grades and grades with steps. (True / False)
A. False
3. Which profile options must you set to enforce grades at the assignment level?
A.
 PER_ENFORCE_VALID_GRADES
 PER_DEFAULT_GRADE_FROM_JOB_POSITION

Lesson Highlights
In this lesson, you should have learned how to:
 Define grades, grade rates, and grade ladders

Lesson Highlight Details
Defining Grades, Grade Rates, and Grade Ladders
You can set up grades with or without steps. For each grade, you can define multiple
types of grade rates, such as salary, bonus, and hourly rates.
Grade ladders can include either grades or grades with steps. For grades with steps,
you define the rates when you include the grades in a grade ladder.

11 define grades

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