Organizational Management

And
HCM Structures
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Table of contents

ORGANIZATIONAL MANAGEMENT.................................................................................................3

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT............................................................................................3

BASIC ELEMENTS OF ORGANIZATION PLAN..........................................................................................................5
4. INTEGRATION REPORTS BETWEEN PA - OM/PD............................................................................................7
8.1 RHINTE00 ..............................................................................................................................................7
8.2 RHINTE10 ..............................................................................................................................................7
8.3 RHINTE20 ..............................................................................................................................................7
8.4 RHINTE30 ..............................................................................................................................................7
5. BENEFITS OF IMPLEMENTING ORGANIZATION MANAGEMENT.............................................................................7
9.1 INTEGRATION WITH OTHER COMPONENTS...........................................................................................................7
9.1.1 INTEGRATION WITH PERSONNEL ADMINISTRATION...........................................................................................7
9.1.2 INTEGRATION WITH RECRUITMENT................................................................................................................8
9.1.3 INTEGRATION WITH PERSONNEL DEVELOPMENT..............................................................................................8
9.1.4 INTEGRATION WITH TRAINING & EVENT MANAGEMENT..................................................................................9
9.1.6 INTEGRATION WITH COMPENSATION MANAGEMENT ........................................................................................9
9.1.7 INTEGRATION WITH PERSONNEL COST PLANNING............................................................................................9
9.2 REPORTING TOOLS........................................................................................................................................9
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Organizational Management
Introduction to Organizational Management
Organizational Management is the component that will provide you the basic mechanism to depict
your organization in SAP systems. The organization from an HR perspective is created and
managed, allowing organizational group differentiation to be represented in the other HR
processes. All organizational units form the basis of the structure, whether it’s a company,
division, function, department, or work unit. The level of detail or granularity is completely up to
you to define, so the system is very flexible. Jobs and positions are defined to represent the
various types of roles that exist within those organizations.
Through organizational hierarchies, we define employee relationships, then store and administer
employee data in the system. Every employee is included in the structure of the enterprise. Data
entry is restricted while the validity of all employee data is checked. The enterprise is subdivided
into organizational structures, based on an organizational plan, and administrative structures,
based on the enterprise.
An organizational plan provides you with a complete model of the structural and personnel
environment of your enterprise. The highest organizational unit in an organizational structure is
the root organizational unit. Hierarchies and report structures are clearly laid out. You assign
employees in info type 0001, Organizational Assignment. In doing this, you include employees
in the enterprise, personnel and organizational structure.
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In the SAP System, the company’s structure is defined by the Enterprise Structure and the
Personnel Structure. When used together, these structures defined the legal entities of the
company, work locations for the company, and the Company’s various employee groups.
Because the enterprise and personnel structures help the company differentiates between the
various types of employee and work locations, the structures values are used extensively in
payroll, time and benefit processing rules.

The enterprise and personnel structures are also used extensively by the financial components of
SAP. For instance, the structure values are used in rules to appropriately posts payroll expenses
to the correct GL accounts. Additionally, the tracking of recurring base budgets by staff group
relies heavily on Enterprise and Personnel structure values. Enterprise and Personnel structures
are stored on positions. When positions are created by the HR compensation Analyst, the
appropriate structure values will be selected and stored for the position.

As employees are assigned to positions, the employee will inherit the structure values stored on
the position. If the values are not appropriate for the assignment, the values may be changed on
the employee assignment screen (Infotype 0001, Organizational Assignment). Especially with
concurrent employment, the enterprise and personnel structure values will require careful over
sight.
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Basic elements of Organization Plan

Although an organizational plan can consist of many object types, the five basic
object types are the building blocks.

1. Organizational Units represents by O

2. Jobs represents by C
3. Positions represents by S
4. Cost Centers represents by K
5. Persons represents by P

Persons are the holders of a position Positions are defined and assigned to organizational
units and cost centers.

3.1. Organizational Unit Object type 'O ’

• Organizational units are units of your company that perform a function. According to how
tasks are allocated in your company, these can be departments, groups or project
teams, for example.
• Organizational units are not the same as other enterprise units, such as personnel area,
company code and so on. These are used to model structures in Personnel
Administration or Payroll Accounting, for example.
• You create the organizational structure of your company by relating organizational units
to one another. These relationships may be in the form of a hierarchy or a matrix.
• This organizational structure is then the basis for the creation of an organizational plan.
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3.2. Job Object type 'C ' (Classification)
• Jobs are general classifications for sets of functions (Manager, for example). Jobs are
assigned tasks and characteristics, which are then inherited by positions. In this way,
they help you to create positions.
• When you create jobs, they are listed in a job index. A job index is a list of jobs
maintained for an enterprise.
• If you create a new position (Manager of US sales office, for example), this must be
related to the corresponding job. A job describes a position. Through this relationship,
the position automatically inherits the tasks and characteristics assigned to the job. This
significantly reduces data entry time, as tasks and characteristics do not have to be
assigned to each position separately.
• Specific tasks and characteristics can also be assigned directly to positions.
• Jobs are also used in the following components

• Shift Planning
• Personnel Cost Planning
• Career and Succession Planning

3.3. Position Object type 'S' (Specification)

• Positions are concrete and are occupied by holders (employees or R/3 users). Positions
differ from jobs in that they are a more specific entity and are usually attached to
organizational units. A job describes a position but it exists as a general unattached
entity. A typical job in an enterprise is a “manager”. However, when this job is used to
create a position, it can become a Marketing manager, Sales manager, Human
Resources manager etc.
• Positions can be 100% filled, partially filled or vacant.
• One position may also be shared by several employees, each working less than full
time.
For example, two employees can hold 60% and 40% of one position.

3.4. Cost Center Object type 'K

• Cost centers are maintained in Financial Accounting and can be linked to either
Organizational Units or Positions.
• Cost Center assignments are inherited along the organizational unit structure.

3.5. Person Object type 'P '

• Persons generally represent employees in your company and hold positions in
Organizational Management.
• Person characteristics are maintained in Personnel Administration and are linked to a
organizational plan through their position assignment.
• Info type 0001 (Organizational Assignment) in Personnel Administration contains the
position assignment and, if integration is active between Organizational Management
and Personnel Administration, the defining Job and Organizational Unit and Cost Center
assignment.
• A view of Organizational Management can be accessed from (Organizational
Assignment info type 0001) in Personnel Administration.
• Other Defaults in Personnel Administration employee maintenance can be derived from
Organizational Management data such as planned compensation, employee groupings
and account assignment.
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4. Integration Reports between PA - OM/PD

8.1 RHINTE00
Transfer PA Records To PD Positions. In another world, it creates the HRP1001 between P to S
in the OM side of the world. When you view a record via IT0001, you see this person holds the
position, however via HRP1001, that relationship isn’t so.

8.2 RHINTE10
Generates the required relevant tables. (T513 - Jobs, T513S - Jobs, T528B - Positions, T528T
Work Center, T527X - Org Unit.

8.3 RHINTE20
Checks for all objects for integration between PA and OM. This is a big one and will take awhile
to run. What it does is look at table T513/T513T - Jobs, T528/T528T - Position, and T528X - Org
Unit. It will then compare it against the HRPxxxx table to find missing objects. If there are any
missing objects, it will create the record.

8.4 RHINTE30
Transfer OM to PA. This will create infotype 0001. If the conversion strategy is to have SAP
auto inherit factor to kick in for IT0001, often time jobs and org unit are missing via IT0001
during the initial conversion load. RHINTE30 will find the relationship and push it through
IT0001.

5. Benefits of Implementing Organization Management

9.1 Integration with other components

Organizational Management can be integrated with the following components

• Personnel Administration

• Recruitment

• Personnel Development

• Training & Event Management

• Compensation Management

• Personnel Cost Planning

• Controlling

• Shift Planning

9.1.1 Integration with Personnel Administration

If integration is active a and a person is assigned to a position in HR Master Data, the objects
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related with the position in H R M aster Data are written to the Organizational Assignment info
type. If integration is active, the Organizational Unit, Job, and Cost Center fields are not ready
for input. Instead, they are filled from Organizational Management o only. In addition, every
organizational change is stored in both the Organizational Assignment info type in HR Master
Data and in the Organizational plan in Organizational Management. This means If a change is
made in Organizational Management that affects the organizational assignment of a person, the
change is written to the person’s Organizational Assignment info type. Similarly, a change made
to a person’s organizational assignment (for example, as a result of a personnel action) in HR
Master Data is written to Organizational Management.

9.1.2 Integration with Recruitment

The recruitment component provides a complete functionality for recruitment process. This
process can be from indentifying vacant position to hiring the applicant.

The recruitment process starts from a vacancy. Vacancies are positions which need to be filled
by persons. These positions can be created in Organizational Management component and if
integration between organizational Management component and Recruitment is active, the
vacant position can be triggered in recruitment. The applicant data can be transferred from
recruitment to personnel administration component.

9.1.3 Integration with Personnel Development

Personnel Development component provides functionality to analyze employee’s skills and
qualification by comparing with the required skills and qualification for a position. The
requirements are assigned to position in organizational management. So the object of
organizational management Position (S) is required in personnel development which is only
possible if integration between organizational Management and Personnel Development is
active.
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9.1.4 Integration with Training & Event Management
Training & Event Management Component enables an enterprise to organize and schedule
different training for employees. If Training & Event Management is integrated with
organizational Management, different training course can be linked to jobs, positions and
organizational units.

9.1.6 Integration with Compensation Management

The compensation Management provides the functionality which is required for compensation
administration like salary review. Different jobs, positions at different organization units can be
reviewed for compensation. Jobs, positions and organizational units can only be linked if
compensation management is integrated with organizational Management.

9.1.7 Integration with Personnel Cost Planning

Personnel Cost Planning component provides the functionality to project personnel cost.
Personnel cost needs to be projected for different organizational units. These organizational
units are created in organizational Management component which can be only accessed if
integration between Organizational Management and Personnel Cost Planning is active.

9.2 Reporting Tools

Organizational Management component enables to use reporting tool Human Resource
Information system (HIS). HIS execute reports for different requirements in a hierarchical
structure. For example reports can be executed for different organizational units, jobs and
positions which can only be maintained in organizational management. HIS can’t be used
without implementing organizational management.
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