SAP HCM

Organizational Management
 Objective
• Provide an understanding of the various elements and
methodologies of Organizational Management focusing on
Objects and Navigation, Infotype, Simple Maintenance, Matrix
Organization, Integration, Evaluation and Reports.
• To understand the process flow for the Sub Module
‘Organizational Management’ and map the business scenarios
as per the Client’s Requirement.
 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 .
Organizational Management enables you to:
• model the functional organizational structure (department hierarchy,
for example) as well as the reporting structure of your enterprise as an
organizational plan.
• analyze the current organizational plan according to your requirements
and, on this basis, to carry out workforce requirements and personnel
cost planning.
• create further organizational plans as planning scenarios, in order to
simulate new structures in the framework of Business Process
(Re)Engineering.
• create effective Workflow Management by accessing the reporting
structure.
Organizational Management includes various user interfaces with which
you can create and edit organizational plans.
Organizational Management Interfaces
You can maintain your organizational plan in
Organizational Management using a number of
different interfaces.
Integration with other modules
 Concepts of OM
Organizational Management is based on the concept that every element of
the organization constitutes a unique object with individual attributes. You
create and maintain each object individually. You create relationships
between the various objects to form a framework for your Organizational
Plan. This gives you a flexible basis for personnel planning, previewing, and
reporting.
 ORGANIZATIONAL PLAN
Organizational plan depicts the functional,
organizational and reporting structure
between the positions in an enterprise.
Structure
An organizational plan is made up of
several separate hierarchies and catalogs
that are related to one another.
Methodology : Planning
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
Methodology: Object Oriented Design
Methodology: Structures
AN OVERVIEW OF AN ORGANIZATIONAL PLAN IN AN
ENTERPRISE
Methodology : Plan Versions
• You can maintain any number of plan versions. Plan versions allow you to create
several organizational plans in the system at the same time. You can simulate and
compare various scenarios using plan versions.

• One of these plan versions represents the active organizational plan, and is flagged
as the active integration plan version.

• Plan versions exist independently of each other. They can be created as copies of
the original plan, which you then change and re-evaluate without modifying the valid
plan.

Notes:
• The Active or integration plan version should never be changed.
• The plan version is used by the system during the transport process, and for
indexing and general control of all plan versions. Its should never be changed or
deleted.
Common Objects in SAP HCM – OM
 CHARACTERISTICS OF AN OBJECT

An 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
OBJECT TYPES, KEYS AND ICONS
Organizational Unit - O
 Cost Center – K
Cost Centers are created in FI.

In HCM we are responsible for attaching it to Organization Units and/or

Positions.
Job - C
Position - S
Job versus Positions
Chief Position
Person - P
Position Vacancy
 RELATIONSHIPS

Relationship between two objects creates a hierarchy and

that depicts the enterprise’s Organizational Structure.

A relationship between two objects can be

•Hierarchical
•Lateral
•Unilateral
RELATIONSHIPS OF OBJECTS
Key Terms Review
Sample Organization Structure
Object Relationship : Data Model
Object Relationships: Org Units
Object Relationships: Positions
Object Relationships: Position to Person
Object Relationship: Organizational Plan
Object Characteristics: Infotypes
Object Characteristics: Object ID
 INFOTYPES ORG. UNIT POSITION JOB TASK
Object (1000) √ √ √ √
Relationship(1001) √ √ √ √
Description (1002) √ √ √ √
Department/Staff (1003) √ √ √ X
Character(1004) X X X √
Planned Compensation (1005) X √ √ √
Vacancy (1007) X √ X X
Account Assignment (1008) √ √ X X
Work Schedule (1011) √ √ X X
Emp Group/Emp SubGroup (1013) X √ √ X
Obsolete (1014) X √ X X
Cost Planning (1015) √ √ X X
Standard Profiles (1016) √ √ √ √
PD Profiles (1017) √ √ √ X
Cost Distribution (1018) √ √ √ √
Addresses (1028) √ √ X X
 PLANNING TOOLS
In order to have an effective Organizational Management Component in
the 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.
Object Characteristics: Status
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 unrestricted activities

i.e. we can create, change, display, delimit, delete and list when using active objects.
Planned: Indicates that an object is proposed or anticipated, but not currently
operable. We can create, change, display, delimit, delete and list when using
planned objects.
Submitted: Indicates that an object has been submitted for review and subsequent
approval/rejection. We cannot create objects with submitted status. Nor can we
make changes.
Approved: Indicates that an object, previously submitted for review, is accepted or
authorized. 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 display
objects with rejected status. However, We can change the status to planned so that
you can work with the object again.
Object Characteristics: Validity Periods
Object Characteristics: Time Constraints
• Time constraints are used by the system to guarantee the integrity of data.
• You use time constraints to control system reactions according to company-
specific requirements. If
you want to let positions report to a number of superiors, you can set up the time
constraint to allow
several relationships to exist simultaneously.
• Example of class 1:
An object must have a short name stored for it. This information must exist
uninterrupted, but can
be changed.
• Example of class 2:
A position may only have one Vacancy infotype at a time. Additionally, a position is
not required to
have a Vacancy infotype.
• Example of class 3:
The Sales department can be related with a number of positions simultaneously.
• Example of class 3 with additional condition:
A position can be described by only one job but by a number of tasks.
Simple Structures
Relationship Validity
Inheritance
Relationship Time Constraints
OM IMG
 PLAN VERSIONS
Path Description
Easy Access IMG Personnel Management  Global Settings in
Menu Personnel Management Plan Version Maintenance 
Maintain Plan Versions
Transaction SM30  T778P
Code
Path Description
Easy Access IMG Personnel Management  Global Settings in Personnel
Menu Management Plan Version Maintenance  Set Active Plan
Version
Transaction SM30  T77S0SC
Code
 MAINTAINING NUMBER RANGES
Path Description
Easy Access IMG Personnel Management  Global Settings in Personnel
Menu Management Plan Version Maintenance  Maintain Plan
Versions
Transaction SM30  T778P
Code
Number Ranges
 STRUCTURES IN OM

An organization consists of Organizational units,

Positions, Persons, Etc. Creation Of these
structures are not restricted to only certain
requirements. The objects and the relationships
are used by the Structure in a certain way defined
by Evaluation Path.

Using Objects, Relationships, and evaluation paths

we can create a lot of structures.
 EVALUATION PATH
TCODE – OOAW
An evaluation path allows you to focus inquiries/reports on
objects which are affected by certain relationships.
We can select an Evaluation Path and maintain its properties
or create an evaluation path starting with Z.
E.g. : Evaluation Path - PLSTE (Position overview along
organizational structure)
Position overview along organizational structure
This evaluation path provides an overview of position
assignments. It uses an organizational unit as its starting
point, and reads the underlying structure. Relationships
between positions are taken into account.

P.S. The important structures required for Reporting are given

later.
Organization and Staffing Interface
• Transaction Code: PPOSE (View)
PPOME (Edit)

• Creating, displaying and maintaining an

organizational plan with the Organization and
Staffing Interface.
INTERFACES USED TO CREATE ORGANIZATIONAL STRUCTURE

There are three methods which could be used creating the

organizational Structure.

They are
•Organization and Staffing Mode
•Expert Mode
•Simple Maintenance
 ORGANIZATIONAL AND STAFFING MODE

The Organizational and staffing mode presents you with a

compact view of the organizational plan . Through this
interface we can

1. Search
2. Select
3. Display/Modify Structures
4. Display/Modify Objects
Navigation Overview
 SEARCH OVERVIEW

SELECTION DESCRIPTION
Navigation Overview: Icons
STRUCTURE CREATION UNDER ORGANIZATIONAL AND STAFFING
MODE

Path Description
Easy Access User menu  Human Resources  Organizational
Menu Management Organizational Plan  Organization and
Staffing  Create
Transaction PPOCE
Code

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
Creating the Root
Org Unit
Path Description
Easy User menu  Human Resources  Organizational
Access Management Organizational Plan  Organization and
Menu Staffing  Maintain
Transaction PPOME
Code

The transaction PPOME is used in the

organization and staffing mode to modify/add
additional Organizational units or Positions to the
existing root organizational unit.
The transaction PPOSE is used in the staffing
mode to display the organizational units and
structure.
When we select the organizational unit and
select create, the system would ask whether we
want to create an Organizational Unit or A
Position

Based on the object to be created, we select the

type of relationship .
Departments
Created
 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 we
select the Org. Unit ‘DS Ent’ and Select create. The System would ask
us what object is to be created as shown in the next slide.
Here We create the position and Assign the chief
position to it.
The Next slide gives us the various positions created
under the departments Production, Operations and
HR.
 Departments and
Positions Created for
the Org. Unit
Visakhapatnam
Location
Creating an Object
Key Date and Preview Period
Creating Objects In Expert Mode
 STRUCTURE CREATION UNDER EXPERT MODE

Path Description
Easy Access User menu  Human Resources  Organizational
Menu 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
 CREATING/MAINTAINING AN ORGANIZATIONAL UNIT
TCODE - PO10
In the previous slide when we select object and select create, the system opens the
following 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.
For this Example, the root Org. Unit is “DS Ent”. We do not make any entries and
exit. Here we do not assign any entries as the subordinate organizational unit are
yet to be created and the subsequent positions if any.
In the previous slide, we did not create any relationship. However, when we create
Sub Unit for the root org. unit ‘DS Ent’, in the relationship tab, the system asks us
which relationship do we choose for the Org. Unit Visakhapatnam in order to be
assigned to the ‘DS Ent’. Here we select the appropriate Relationship applicable.
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
For the Root Org. Unit we have
created a position MD using the
Transaction PO13
(create/maintain Position)

Here we are defining that

the Root Org. Unit is
managed by The position
MD.
For Each Sub Unit created as per the location, We Have defined the
departments 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.
Departments created for The location Visakhapatnam
 CREATING/MAINTAINING POSITION
TCODE – PO13
In the previous slide when we select object and select create, the system opens the
following 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.
 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 line
supervisor of all the Heads of Departments
For the Department Production1, the position ‘Production Head’ has the following
relationships maintained in the relationship infotype.
 CREATING/MAINTAINING JOB

TCODE- PO03
In the previous slide when we select object and select create, the system opens the
following 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.
The Job ‘Manager’ Has been assigned the following positions. The Job
defines the type of work these Positions are assigned. Here the
Relationship used is 007 (Described by).

The Next Slide gives us the Jobs created and the positions assigned to
them.
The Job ‘Head Of Department’ has all the Chief positions assigned to it.

The Job ‘Executive’ has all the Executive Positions assigned to it.
 ASSIGNING TASK TO POSITIONS
TCODE – PO14
In The previous Screenshot, If we Select the Object and select create , the following
screen 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.
In the previous screen, when we select Task and select create, The system allows us to
create new task and a task catalog .

For the Task HR Admin created using transaction PO14,

We can create the subtasks in the Task Catalog Screen. By selecting our
respective task in the task catalog screen and selecting on create. Te
system would give us an option to create the subtasks
Select the task
and then create
The above subtasks were created for The Task HR Admin and has been
Assigned to the Position HR Executive.
When the Task ‘HR Admin’ is Assigned to the Position ‘HR Executive’ by
default the subtasks are assigned to the position.
 STRUCTURE CREATION UNDER SIMPLE MAINTENANCE

Path Description
Easy Access User menu  Human Resources  Organizational
Menu Management Expert Mode  Simple Maintenance  Create
Transaction PPOC_OLD- Create
Code

In this mode of creation for structure, The System follows branch wise
creation of organizational units and positions. The initial screen where we
enter the root org. unit is as follows
Here we create the Root Org. Unit DS Ent. To the same we are creating Sub Org.
Units Visakhapatnam And Hyderabad.

Select the Org.

Unit and select
create

A window would come up which would ask us to create the sub units as
shown in the next slide
The following are the Sub Units created under the Org. Unit ‘DS Ent’.
The following are the Departments created under each Location Visakhapatnam
and Hyderabad using the similar method of selecting each Org. Unit and then
giving the list of Org. Units that have to be created.
 CREATING/MAINTAINING POSITION

For Creating A position under an Org. Unit (Here DS Ent), we should first
select staff assignment tab in the maintenance view.

The system would then respond and enables the position creation and
assignment actions for this mode.
Here in this screen we select the Org. Unit for which the Position has to
be created and then click on create position.
Once we select the position, the system would prompt us to give the details for
the position created. The first Dialog box would ask us the type of job for the
position we are creating. We have a choice to select from the existing jobs or we
go 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 we
create the position and assign the validity for the Position created. Here The job
assignment is done to the position once the position is created.
The following are the positions created for the Location Visakhapatnam for the
departments Production1, Operations1 and HR1.
 ASSIGNING HOLDER/PERSON TO THE POSITION

To assign a Person to the position created, we need to select the position and
then select the Assign Holder. The system would prompt us to enter the data
as to who would be the holder for the position.

Here we give in the

Emp Personnel
Number
Here We are assigning the Person 265012 to the Position Production
Manager for the Location Visakhapatnam.
Once we assign the Person, we would be able to see the assignment
in the organization Structure as below
The following is the structure of HR department with all the Positions
Assigned to Persons.
 ASSIGNING TASKS TO THE POSITION

In 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 then
select Task Profile.
The task profile for the Person is Displayed. We also see the relationships
existing 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 the
object S Holder and select the task profile.

The system would give us a list of predefined tasks from which we can select
one task that is according to our requirement. The task selected should be
relevant to the Position and the Job.
The Task ‘Strategic Tasks ‘ is selected and assigned to the holder and corresponding
task catalog is also assigned to the Person.
The following is the Task Catalog assigned to the Holder HR Manager. The Task
Strategic Tasks has sub tasks assigned to it.

For the Position MD, The following are the tasks assigned. The task
AF_approve is SAP Standard Task assigned to the MD.
The Structure according to the tasks Assigned to the Person for the Position MD.
Integration with Personnel Administration
Integration – Organizational Assignment
(IT0001)
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.
Integration Defaults
 INTEGRATION WITH PERSONNEL ADMINISTRATION

Personnel Administration Organizational Management

Tables Objects
For:
For:
RHINTE10 • Jobs
• Jobs
• Positions
• Positions/Work Center
RHINTE20 • Work Center
• Organizational Units
• Organizational Units

T EOO
N
RHI

RHINTE00
IT0001 (ORGANIZATIONAL
RELATIONSHIPS
ASSIGNMENT) RHINTE30
Conclusion

THANK YOU