SAP HR – Understanding Human Resources Structures
Hello and welcome to today’s session! In this blog, we will be exploring some key HR structures, with a focus on the organization structure within SAP HR (Human Resources). We’ll start by discussing the important structures in SAP HR, and then dive into the system to see how these structures are configured and managed.
🔍 Understanding HR Structures in SAP HR
Before we jump into the system, let’s take a look at the different structures that play a crucial role in SAP HR, also known as HCM (Human Capital Management). These structures include:
- Enterprise Structure
- Personal Structure
- Organization Structure
The SAP HR software allows you to set up organizational hierarchies and employee relationships, and then store and administer employee data within the system. It’s important to note that data entry is restricted by authorizations, and the validity of all employee data is checked.
Enterprise Structure
The enterprise structure in SAP HR is divided into two main categories: organization structures and administrative structures. Organization structures are based on an organization plan and provide a complete model of the structural and personal environment of your enterprise. Hierarchies and report structures are clearly laid out in the organization plan.
On the other hand, administrative structures are based on the enterprise and personnel structures. These structures subdivide organizations and employees according to factors relevant to time management and payroll. They are stored in customizing and can be determined by elements such as the client, company code, personnel area, and personnel sub-area.
For example, the client can be valid for a company code at the smallest level or for the entire corporate group. The company code is defined in accounting and is used for legally required financial statements. The personnel area is unique within a client and must be assigned to a company code. Finally, the personnel sub-area is unique to personnel administration and is used for groupings that affect time management and payroll.
Personal Structure
The personal structure is an important component of the enterprise structure. It subdivides employees into two levels: employee group and employee subgroup. At the employee subgroup level, control features of the personnel structure can be defined. For example, different payroll procedures can be defined for different employee subgroups, and different default values can be set based on the employee group.
Organization Structure
The organization structure, also known as the organizational plan, is a comprehensive and dynamic model of the structural and personnel environment within your enterprise. It is primarily used to depict hierarchies and the chain of command represented by individual positions and the reporting structure. It consists of organization units and positions.
Organization units are used to create the organizational plan, while positions represent individual roles within the organization. By creating and assigning positions within the organization structure, you can define the hierarchy and reporting structure of your enterprise.
🖥️ Exploring SAP HR Structures in the System
Now that we have a basic understanding of the different structures in SAP HR, let’s log into the system and see how these structures are configured and managed.
To access the SAP HR system, we’ll use the SAP Easy Access menu. From there, we’ll navigate to the Organization Management module to create new positions, jobs, and recruit people.
Once in the system, we’ll start by creating a few new organizational units within the financial accounting department. To make these changes effective from the beginning of the year, we’ll update the relevant fields accordingly.
Next, we’ll create positions within the newly created organizational units. We’ll start by creating a director position, followed by a manager and a clerk position. These positions will then be assigned specific tasks, such as complaint processing and customer service.
Afterwards, we’ll assign a person to the director position. For example, we’ll assign Catherine Camino to the position of AP (Accounts Payable) Director, starting from the beginning of the year.
Configuring Relationships in SAP HR
Before we proceed any further, let’s take a moment to understand how relationships are defined in SAP HR. In SAP HR, relationships play a crucial role in defining the connections between different entities, such as tasks, positions, and persons.
To configure relationships in SAP HR, we’ll access the customizing IMG (Implementation Guide). From there, we’ll navigate to Personnel Management, then to Organizational Management Basic Settings, Data Model Enhancement, Relationship Maintenance, and finally, Maintain Relationships.
Within the relationship maintenance screen, we can define and manage relationships between different objects. For example, we can define a relationship between a task and a position using the “is described by” relationship type. This allows us to assign specific tasks to positions within the organizational structure.
It’s worth noting that a person cannot hold a job in organizational management. Instead, a person can only be assigned to a position or a work center. This distinction is important to keep in mind when configuring relationships and assignments within SAP HR.
Creating Work Centers in SAP HR
In addition to positions and organizational units, SAP HR also allows you to create work centers. Work centers describe the physical location where tasks are carried out. This could be a plant, a branch office, or a specific room.
To create a work center within SAP HR, we can use the expert mode. By creating a work center object and assigning a position to it, we can effectively manage the physical locations associated with specific tasks and positions within the organization.
🔀 Recap and Conclusion
In this blog, we’ve explored the key HR structures within SAP HR, including the enterprise structure, personal structure, and organization structure. We’ve discussed how these structures are configured and managed within the SAP HR system.
We’ve also looked at the importance of relationships in SAP HR and how they define the connections between different entities, such as tasks, positions, and persons. By configuring relationships, we can effectively assign tasks to positions
and manage the hierarchical structure of the organization.
Lastly, we’ve briefly touched on the concept of work centers and how they represent the physical locations where tasks are carried out within the organization.
Thank you for reading this blog on SAP HR structures. We hope this information has provided you with a better understanding of how HR structures are used and managed within SAP HR. Stay tuned for more information and tips on SAP HR and other related topics. See you soon!
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