Upload
lesley-white
View
222
Download
1
Tags:
Embed Size (px)
Citation preview
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
Organizational ManagementOrganizational Management
It provides the basis for structuring personnel planning and development processes, and is necessary for personnel administration.
Using this application, an organizational structure, including departments, jobs, positions, and tasks, can be created.
Work is further defined and described through the process of job analysis: the cornerstone of HRM.
Organization ManagementOrganization Management
Organizational Plan Expert modeInfo systemToolSetting
Personnel ManagementPersonnel Management
Personnel administrationRecruitmentPersonnel developmentBenefitsCompensation managementPersonnel cost planningManagement of global employees
Personal AdministrationPersonal Administration
Facilitates the management of HR master data, personnel files, and relational data bases.
Maintaining accurate and confidential employee records is critical to this function.
Personnel AdministrationPersonnel AdministrationHR master data
◦ Personnel actions◦ Personnel files
Info system◦ Report
Employee Organizational entity (Headcount changes, headcount
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.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1919
HCM Process: Compensation & BenefitsHCM Process: Compensation & Benefits
Compensation is not the cut-and-dry subject it once was◦ Past – consisted of an employee's base salary or, at most,
a base salary and commission. ◦ Today - looked at as compensation packages; including:
salaries, stock options employee stock ownership plans pay-for-performance plans bonuses, profit sharing commissions, non-cash rewards variable pay, and much more.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 2020
HCM Process: HCM Process: Compensation Compensation ManagementManagementThe balancing of company interests to operate
within the company's fiscal budget and fairly paying employees◦ key component of attracting, developing, retaining, and
rewarding high quality staff through wages and salaries which are competitive in the labor markets
Compensation Management is comprised of the following components:◦ Job Pricing◦ Budgeting◦ Compensation Administration◦ Long-term Incentives
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 2121
HCM Process: Benefits AdministrationHCM Process: Benefits Administration
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
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 2323
HCM Process: Payroll HCM Process: Payroll AdministrationAdministration
SAP contains an international payroll driver that is modified for each country
payroll is released for individual payroll areas◦ the run is for a specific group of employees and a
specific period of time ◦upon release all affected personnel records are
lockedwill generate an payroll results, and earning
statement, bank transfers and check payments
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 2424
HCM Process: Payroll HCM Process: Payroll AdministrationAdministrationPayroll Process
◦Determine Gross Amount base pay and any other additional payment
◦overtime, sick pay, Christmas bonuses, special pay
◦Determine Deductions (Net Amount) processes garnishments, deductions, taxes, and
benefits for employees◦Federal/State Income Tax, Insurance (Health, Life),
Loans
◦Integration with Financial Accounting & Controlling G/L postings, payments processed, reports
available
Overview of the Payroll ProcessOverview of the Payroll Process
Payroll AccountingPayroll Accounting
Calculation of Remuneration ElementsCalculation of Remuneration Elements
Time ManagementTime Management
2828
Shift planningAdministration
Time dataTime evaluationWork schedule
Incentive wagesTime sheet
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 2929
HCM Process: Time HCM Process: Time ManagementManagement
supports planning, recording, and evaluation of internal employee time data
time data that would be gathered and evaluated◦ hours worked◦ leave◦ illness◦ overtime◦ substitutions◦ business trips
conference, training
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 3030
HCM Process: Time HCM Process: Time ManagementManagementThere are multiple methods for data collection:
Time TerminalsTime Terminals
Mobile TechnologyMobile Technology
Cross Applications Time SheetCross Applications Time SheetEmployee Self ServiceEmployee Self Service
Time Time AdministratorsAdministratorsTime Manager’s Time Manager’s
WorkplaceWorkplace
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 3131
HCM Process: Time ManagementHCM Process: Time ManagementTime collection will be used for:
◦payroll accounting◦personnel cost analysis◦internal cost allocations◦invoicing◦performance analysis◦capacity availability◦shift planning
Time Management ProcessTime Management Process
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
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3636
MM
PP
SD
Org
Dat
a
Rules
MM
PP
SD
Master D
ata
MM
PP
SD
FI HCMMM
FIFI
FI
PPSD
HCM
HCM
HCM
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 3737
Business Process IntegrationBusiness Process Integration
HCM
HCM
HCM
HCM
Org
Dat
a
Rules
Master D
ata
Organizational Data in HCMOrganizational Data in HCMA hierarchy in which the organizational
units in an enterprise are arranged according to task and functions
Are static data and are rarely changed
The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
Structures of HCMStructures of HCM
Enterprise structurePersonnel structureOrganization structure
Structures of HCMStructures of HCM
Enterprise Structure
Personnel Structure
Organizational Structure
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
Enterprise Structure (-continued)Enterprise Structure (-continued)
Client is the major organization criterion in the system, and is a self-contained unit.
◦ Client has technical structure feature
Personnel data entered in a client can only be accessed in that client.
Data cannot be exchanged among clients.
If employees change clients, data have to be re-created in that new client.
Enterprise Structure (-continued)Enterprise Structure (-continued)
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.
Enterprise Structure (-continued)Enterprise Structure (-continued)
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.
Enterprise Structure (-continued)Enterprise Structure (-continued)
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
Global Bike US Global Bike Germany
Marketing & Sales OperationsAministration & Financials
Administration Financials
Security
Personnel StructurePersonnel StructureThis structure sub-divides organizations
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.
Personnel Structure (-continued)Personnel Structure (-continued)Employee sub-group enables distinguishing
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.
Organizational Structure: Pen IncOrganizational Structure: Pen Inc
January 2007 (v1.0)January 2007 (v1.0)
Organizational Units
Person
Position
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.
Organization Structure (-continued)Organization Structure (-continued)
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.
Organization Structure (-continued)Organization Structure (-continued)
Positions are more specific than jobs, and all of the information stored in a job is inherited by all of the positions created from the job.
Positions reflect individual employee assignments, and are occupied by persons.
Examples of positions include Accounting Analyst, Logistics Specialist, Compensation and Benefits Manager, and Production Supervisor.
Organization Structure (-continued)Organization Structure (-continued)
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.
Organization Structure (-continued)Organization Structure (-continued)
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)
HCM 1: Display Organization Plan.HCM 2: Display personnel master recordHCM 3: Create positionsHCM 4: Create CareerHCM 5: Define requirementHCM 6: Hire employeeHCM 7: Display organizational planHCM 8: Post job advertisementHCM 9: Enter applicant master dataHCM 10: Prepare hiring