Human Capital Management Human Capital Management Part I Part I (Function, Structure, and Master Data) (Function, Structure, and Master Data) EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration (MSEM, Professional) (MSEM, Professional) Fall, 2013 Fall, 2013
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Human Capital Management Part I (Function, Structure, and Master Data) EGN 5622 Enterprise Systems Integration (MSEM, Professional) Fall, 2013 Human Capital.
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Human Capital Human Capital ManagementManagement
Part IPart I(Function, Structure, and Master Data)(Function, Structure, and Master Data)
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration (MSEM, Professional)(MSEM, Professional)
Fall, 2013Fall, 2013
Human Capital ManagementHuman Capital Management
Part I Part I (Function, Structure, and Master Data) (Function, Structure, and Master Data)
Concepts & TheoriesConcepts & Theories
Human Resources ManagementHuman Resources Management
Manage requirements for human resources to support company current needs and future growth, including:◦Planning,◦Hiring/assigning,◦Training, and◦Evaluating employees
Human Resources ManagementHuman Resources ManagementTypical HR Functions:Planning and job analysis, Recruitment and selection, Training and development, Performance management, Compensation and benefits, and Employee and labor relations.
HCM Process in the Employee LifecycleHCM Process in the Employee Lifecycle
Leveraging HCM for Organizational Leveraging HCM for Organizational Performance ImprovementPerformance Improvement
Human Capital ManagementHuman Capital Management
SAP Implementation SAP Implementation
R/3
SAP Module ViewSAP Module View
Integrated SolutionClient / Server
Open Systems
FinancialAccounting
Controlling
Fixed AssetsMgmt.
ProjectSystem
Workflow
IndustrySolutions
ProductionPlanning
Sales &Distribution
MaterialsMgmt.
PlantManagement
QualityMaintenance
Human Resources
Human Capital ManagementHuman Capital ManagementHuman Capital Management (HCM) modules in SAP
R/3 incorporates HCM concepts and practices, enabling managers to perform transactions pertaining to the HRM cycle of events.
HR modules in SAP R/3: Organizational management Personnel management,
PayrollTime managementTraining and event management, Travel management,Manager’s desktopEnvironment, health and safety
development, salary accounting to seniority, assignment to wage level)
Age/genderSetting
◦ Define organizational unit◦ Define positions◦ Define jobs
Recruitment and SelectionRecruitment and Selection
Transactions enable the advertising of position vacancies, the identification of recruitment sources, and the hiring of employees.
Additionally, qualifications required of vacant positions can be matched with the qualifications of applicants to facilitate decision making in the selection process.
This functionality in SAP R/3 relates to recruitment and selection in HCM.
Personal DevelopmentPersonal Development
Pertains to performance appraisals, career and succession planning, and career development.
Performance appraisals help facilitate decisions regarding promotions, merit pay, and terminations.
Transactions in SAP R/3 relate to the typical HCM practices associated with performance management systems.
BenefitsBenefits
Benefits pertains to flexible spending accounts, 401(k) plans, health care accounts, as well as mechanisms to track costs of benefits.
SAP R/3 extend far beyond the typical benefits required by law.
Compensation ManagementCompensation Management
It is essential in promoting internal equity and external competitiveness.
Features of this application include job pricing, reviewing salary surveys, and creating policies and budgets.
benefits today are offered as a part of an employees overall compensation package
this component allows a company great flexibility in creating and maintaining individual packages for your employees◦ Six international Plan Categories
Allows for detailed company reporting◦ Benefit Plan Participation◦ Health Plan Costs◦ Employee Demographics◦ Benefits Election Analysis
Country Specific Settings available ◦ FSA, COBRA (US examples)
HIPPA Certificates
PayrollPayroll
Release payrollStart payroll processCheck payrollCorrectionSimulationFollow upTaxOverpayment recoveryBank transfer
Training and Event ManagementTraining and Event Management
It involves the management of employee activities associated with training, workshop attendance, and other business-related events.
Information on descriptions of programs, prerequisites, and cost factors can be generated.
This functionality in SAP R/3 relates to training and development in HCM.
Travel ManagementTravel Management
It enables organizations to monitor the controllable expense associated with travel, training, and entertainment.
Employees frequently travel on business, so managing this expense is essential
Manager’s DesktopManager’s Desktop
It is a tool which enables managers to access employee information at a manager’s fingertips, i.e., managers do not have to access menu paths or transaction codes to retrieve employee information. Rather, through decentralization of HR tasks and responsibilities, managers can easily access HR data of subordinates, both directly and indirectly supervised, to perform administrative and organizational tasks, and to make strategic decisions
Business Process IntegrationBusiness Process Integration
Enterprise StructureEnterprise StructureThis structure makes up the legal identity of the
companyEvery employee in an organization is included in
the structure of his or her enterprise. The Enterprise Structure sub-divides organizations and employees 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
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.
Personnel area represents the “company and country version for payroll” view.
It used primarily in personnel administration, is unique within a client, and is a sub-division of the company code based on locations or divisions.
It serves as a selection criterion for reporting, constitutes a unit in authorization checks, and allows one to generate default values for data entry, e.g., for the payroll accounting area.
Personnel sub-area represents the “location and public holiday calendar” view.
It is subdivision of a personnel area (such as a department), and identifies groupings of employees assigned to a particular personnel area or company code.
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.
sub-area must be unique to a company code
Enterprise StructureEnterprise Structure
Enterprise StructureEnterprise Structure
Enterprise Structure: Global Enterprise Structure: Global Bike GroupBike Group Global Bike Group
and employees according to factors relevant to time management and payroll.
The Personnel Structure is made up of the following elements:◦Employee Group◦Employee Subgroup◦Payroll Area
Personnel Structure (-continued)Personnel Structure (-continued)Employee group is the highest level, and
defines the relationship between an employee and a company in terms of work, i.e., active employees, pensioners, and early retirees.
These groups can be differentiated further. For example, an active employee may also be a trainee, an hourly wage earner, a salaried employee, etc.
The principal functions of the employee group include generating default values for payroll accounting area and basic pay, serving as a selection criterion for reporting, and serving as a unit in authorization checking.
among employees specifically 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.
Functions include allowing different payroll procedures for different employee subgroups, controlling the validity of wage types on an employee sub-group level, and defining the validity of work schedules, attendance and absence quotas.
Personnel StructurePersonnel Structure
Personnel Structure: ElementsPersonnel Structure: ElementsPayroll Area
◦It groups employees together that are paid the same (time) Weekly, Bi-Weekly, Monthly
◦The 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
Organization Structure in HCMOrganization Structure in HCMThe organizational structure and plan is the
comprehensive model of the structural and personnel environment in the enterprise, with hierarchies and reporting relationships clearly defined.
Hierarchies and reporting relationships are determined once object types are created.
Typical object types include ◦ organizational units, ◦ jobs, ◦ positions, ◦ tasks, and ◦ persons.
Organizational StructureOrganizational 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.
Organization Structure (-continued)Organization Structure (-continued)Organizational units reflect the various
business units or departments in the enterprise.
Several organizational units can be created, and they must be related to one another in an organizational plan. They can be defined as functional, divisional, or geographical departments, or as project groups.
An example of a functional structure would include accounting, sales, human resources, and manufacturing departments.
Jobs reflect the tasks, duties and responsibilities of the work being performed in the organization.
Typically, they are grouped in terms of the similarity of tasks being performed, and are more generic in nature. Some examples include analyst, specialist, manager, and supervisor.
Persons are assigned to positions in the organizational structure, and generally represent the employees in the company.
For example, Ross Quarles may be the Accounting Analyst, Fawzi Noman may be the Logistics Specialist, Kathy Utecht may be the Compensation & Benefits Manager, and High Asa Kite may be the Production Supervisor.
Tasks are the individual duties and responsibilities undertaken by employees in their positions, as reflected in their job descriptions.
Examples of tasks include “prepares accounting reports,” “maintains warehouse inventory,” “reviews salary surveys,” and “oversees production scheduling.”
Organizational StructureOrganizational Structure
Integration of Org. Mgt. with Personnel Integration of Org. Mgt. with Personnel Admin.Admin.
Integration of Org. Management with Integration of Org. Management with Personnel Admin. Personnel Admin.
HCM: Master DataHCM: Master Data
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
HCM: Master Data Master Data HCM: Master Data Master Data A vast amount of HR data can be maintained in SAP R/3.
Personnel data provide the basis for various HR transaction processing and reporting. Hence, its accuracy, timeliness, relevance, and completeness are crucial.
While most data may be housed in an HR department’s information system, it is important that data that pertaining to an overall HR information system be included.
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.
HCM: Master Data (-continued)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).
HCM: Master Data (-continued)HCM: Master Data (-continued)Processing of infotypes may include 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).
There are over 600 HR infotypes used to maintain employee and applicant data, and the number, types, and settings of infotypes can be customized to fit the business requirements of the company
HCM: Master Data (-continued)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).
Several records of information on an employee can be reviewed, such as organizational assignment, basic pay, addresses, travel preferences, planned working time, etc.
HCM: Master Data (-continued)HCM: Master Data (-continued)Information can also be retrieved in a relational
database format by accessing specific infotypes.
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 until basic pay is reached. Rather, the basic pay infotype (i.e., 0008) can be accessed directly so that only that information is retrieved.
HCM: Master Data - Employee HCM: Master Data - Employee DataDataInformation 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
Employee Data: InfotypesEmployee Data: Infotypes
Numerous infotypes will be created for each employee◦ Organizational Assignment must be the first infotype recorded
Employee Data: InfosubtypesEmployee Data: InfosubtypesCertain data that is entered in an infotype can
trigger the need for a infosubtype◦ ex. Family Member/Dependents
If you enter that you are married or have children it will generate the need for a spouse/child infosubtype to capture the information about the spouse or child(ren)
Subtypes also allow you to account for time constraints◦ Different addresses may be current at the same time
Permanent Residence Temporary Residence Home address
Employee Data: Personnel ActionsEmployee Data: Personnel ActionsPersonnel actions are a series of
predefined infotypes that are grouped together to speed the data entry process◦Hiring, Firing, Reassignment, Retiring – would
all be examples of procedures that could be represented by a Personnel action
Personnel Actions enable users to enter information about an employee without having to access each individual infotype
Personnel FilePersonnel File
• Information maintained about an employee is stored in their Personnel File
HCM: Employee LifecycleHCM: Employee Lifecycle
January 2007 (v1.0)January 2007 (v1.0)
Birth
Work Taxes
Death (Retire)
HCM: Process/FunctionsHCM: Process/Functions
Recruitment
Cost PlanningReporting
Training and Development
Manage WorkTime (CATS)
PayrollAdministration
Hire Employee
ESSEmployeeSelf-Service
Compensation& Benefits
SAP GBI Client, Userid, Password SAP GBI Client, Userid, Password
SAP Exercises HW7 & HW8:
Description: SAP BASEL Fall 2013Application server: basel.cob.csuchico.eduInstance number: 26System ID: BAS
Client: 270Userid: gbi-012 to gbi-050Initial password: SAP4US
Exercises: Exercises: (due date 10/5/2013)(due date 10/5/2013)