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Basic Sub-modules of HCM
• Personnel Administration
• Organizational Management
• Time Management
• Training and Event Management
• Travel management
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Basic structure for SAP-HRBasic structure for SAP-HR
Enterprise Structure
- Company code, personnel area and personnel subarea
Organization Structure
- Organizational units, jobs and positions
Personnel Structure
- Employee group, employee subgroup, payroll accounting area
Which company does the
employee work for? Whom does the employee
report to?
Which department does
the employee work in?
What are the tasks to be
performed by the
employee?Employee
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Personnel AdministrationPersonnel Administration
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Elements of Personnel AdministrationElements of Personnel Administration
• Maintain Employee Data – Able to view/modify HR Master Data
viz. Master, Payroll, Time data
• HR Processes – Hire Employees
– Promotion and Increment
– Termination
– Transfer etc…
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Elements of Personnel AdministrationElements of Personnel Administration
(Contd..)(Contd..)
• Recruitment – Applicant Master Data, Selection Procedure and status
– Vacancy Assignment
– Advertisement
• Personnel Development – Planning for Career, Succession
and Individual growth
– Appraisals
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Personal
Data OrganizationalAssignment
Family
Details
Education
Skills
SalaryDetails
PreviousEmployment
Contracts
LeaveEntitlement
WorkingHours
Employee DataEmployee Data
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Master Data: OverviewMaster Data: Overview
Employee
Master Data Records
Organizational
Assignment
Address
Bank Details
Family
Work Schedule
PayrollPayroll
BenefitsBenefits
TimeTime
OM
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Enterprise, Personnel and OrganizationalEnterprise, Personnel and Organizational
StructuresStructures
Enterprise
Structure
Personnel
Structure
Organizational
Structure
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Infotypes- Way to insert Master DataInfotypes- Way to insert Master Data
Employee
Family (IT 0021)
Bank Details (IT
Address (IT 0006)
Actions (IT 0000)
OrganizationalAssignment (IT 00
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Major FeaturesMajor Features
• Systematic employee data entry and recall
– Well featured info-types for separate data entry
– Effective dates for all data in the system
– Automatic validity check on all data
• Audit trials for all changes – Source (who), date, time and “before” and “after” data
• System generated employee numbers
– Separate range for different group employees
• Dynamic event change monitoring
– System prompts user to change update related data
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Major FeaturesMajor Features
• “Fast Entry” feature
– Screen for multiple employees
– Multiple screen for one employee
• Date driven reminders
• Search feature for selecting employees – employee no., department, supervisor etc
• Authorization restriction
– Information on “need to know basis”• Standard Reporting
• Ad hoc reporting
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Organizational ManagementOrganizational Management
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Overview of Plan VersionOverview of Plan Version
OrganizationalUnit
Position
Person
Tasks
R e p o r t i n g
R e
l a t i o
n
Departments/ ProjectTeams/ SBU’s
Holder of Position
Departmental Heads
For Position and
OU
Position Position Position
R e p o r t i n g
R e
l a t i o
n
R e p o r t i n g
R e
l a t i o
n
Vacant
Jobs
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Creating an Organizational PlanCreating an Organizational Plan
1. Create RootOrganizational
Unit
7. Assign
Holders
4. Create
Positions
3. Create
Jobs
2. Create
Additional
Org. Units
5. AssignTasks
6. Assign
Cost centers
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Why use Organizational Management?Why use Organizational Management?
• Using Organizational Management, the user may get a picture of the
organization at any point in time: past, present or future. With thisinformation, the user may be proactive in planning for future human
resource needs.
Present Future
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Major FeaturesMajor Features
• Easy to create, change and display current Plan Version
• Current plan version can be copied for future and past plan
versions for
– Making imaginary business scenarios
– To research compensation in various circumstances
• Integrated functionalities
– Personnel Development
– Recruitment
– Compensation Management
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Major FeaturesMajor Features
• Vacant Positions
– Stimulate to recruitment
• Structured representation of
– Enterprise structure
– Reporting structure – Vacancies etc.
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Organization Structure- PositioningOrganization Structure- Positioning
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Time ManagementTime Management
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ObjectivesObjectives
• Time Recording
• Time Evaluation
• Shift Planning
• Cross-Application Time Sheet
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Time Management OverviewTime Management Overview
Employee is at work
Employee is Sick
Employee Working Overtime
Time RecordingTime RecordingInfotypes
# of Hours Worked
# of Sick Hours# of Overtime Hours
Time EvaluationTime Evaluation
Rs. for # of hours worked
Rs. for # of Sick Hours
Rs. for Overtime
FI/CO
PayrollPayrollPayrollPayroll
Ti R di M th d f Ti D tTime Recording : Methods of Time Data
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Time Recording : Methods of Time DataTime Recording : Methods of Time Data
CaptureCapture
• Manual time sheets
– Employee physically record startand end time
• Using clock punch cards
– Employee use machines to punch a
card• Electronically via magnetic card
– Employee swipes a card at a time
terminal
• Employer assumes employee
works contracted hours
– Employee only informs employer of
changes
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Work SchedulesWork Schedules
Personnel Subarea Employee SubgroupInfotype
0001
Infotype0007
FI/CO
Payroll
Time Recording (Infotypes)
Monthly work schedule How are employees schedule to
work on the day
When can they take breaks? Is the day a public Holiday?
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Other featuresOther features
• Work Schedule
– Fixed or Flexible work schedule
– Paid / unpaid breaks
– Predefined holidays for separate personnel area (PA)
– Substitute (Badali employee)
• Define and assign Quotas to PA
– Absent quota (Leave Management)
– Attendance quota
–Overtime quota
• Fine integration with Payroll
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Payroll AdministrationPayroll Administration
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Payroll ProcessPayroll Process
Gross Pay
Net Pay
Deductions
Rs.
Company
ContributionsAdd C2C=
Less
=
• Basic
• Allowances• Reimbursements• Bonus, Incentives • Emp. Contributions
• Loans Repayment• Taxes• Third Party Deductions• Other deductions
• PF Contribution• Super Annuation• Provision for Gratuity• etc.
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Salary componentsSalary components
Bonuses
Overtime
Professional
membership
Allowances
HRA
Basic Pay
Recurring
Payments &
Deductions
Additional
Payments
LTA
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Flexible Wage Types (Salary Component)Flexible Wage Types (Salary Component)
• Wage types with fixed amount (direct valuation)
– e.g. Basic pay
• Wage type depends on other wage types (indirect valuation)
– e.g. HRA (30% of Basic)
• Can assign upper and lower limits
– e.g. Medical reimbursement maximum Rs. 15,000/annum
• Tax conscious
• Wage types for reimbursement and claims
– Special reports for the current status
• For specific personnel group, personnel subgroup group,
personnel area, pay scale groups and levels
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Basic pay (IT-0008)Basic pay (IT-0008)
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Payroll Process-flowPayroll Process-flow
Master Data Time Management
PrerequisiteConfiguration for Payroll
PayrollRun
Gross - Deductions = Net PayPayroll OrganizationBasic PayOther Payments & Deductions
Final Steps
•Direct Deposit/Checks
•FI/CO Transfer
•*Third Party Remittanc
•*Tax Reporting
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Payroll RunPayroll Run
Master data entered for current pay period
Fix rejects
and other updates
Remuneration &
Subsequent Activities
Start Payroll
Exit Payroll
Release Payroll
Corrections
Any
rejects
? Results
OK ?
Yes No
No Yes
Check Results
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Balance expenses with GL entriesBalance expenses with GL entries
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Bank Details (IT 0009)Bank Details (IT 0009)
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Payroll AccountingPayroll Accounting
• Need based Payroll system
• Specific Payroll Period
• Separate Payroll period for Separate personnel
group, personnel area
• Flexible for wage type calculations
F t
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FeaturesFeatures
• Country Specific Payroll Roll Out
– Separate legal and tax provisions
• Realization and reports on Gross Payroll
• Realization and reports on Net Payroll
• Realization and reports on Deductions – Legal deductions
– Loan and other premiums
– Recovery of advance payment
S SS l Sli
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Salary SlipSalary Slip
L l P i iL l P i i
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Legal ProvisionsLegal Provisions
• Applicability of the labour laws
– Monthly eligibility check
• Deductions
– Income Tax under section 80, 80c
– Provident Fund – ESI (if applicable)
• Reports
– PF 3A, 6A
– Pension (Form 6, Form 7)
– Income tax (Form 16, Form 24)
Oth F tOth F t
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Other FeaturesOther Features
• Standard Reporting
• Ad hoc reporting
• Integration with Time Management
– Overtime
– Leaves
– Leave without pay
– Shift allowances
– Paid holidays
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Training ManagementTraining Management
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• Standard Buz Events
– Schedule.
– Organiser - Internal/ External.
– Location/ Building.
– Book Resources.
– Capacity.
Business EventBusiness Event
• Prerequisites
– Have attended xyz Buz event.
– Should have abc skills.
• Procedure
– Reaction to booking/ prebooking etc.
– Transfer skills.
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• Employees/ Applicants/ Ext Persons/ Company/ Department.
AttendeesAttendees
• Trainee/ Attendee Administration.– Book/ Prebook/ Replace/ Rebook/ Cancel.
– Bulk Booking.
– Correspondence (e-mail/ letters).
• Attendance Menu.
• Reports– Int/ Ext Attendee List.
– Attendees Training History.– Attendee Appraisal.
– Attendance Statistics.
– Cancellation List per attendee/ Buz event.
– Attendee bookings/ prebooking/ rebooking.
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Travel ManagementTravel Management
W kflWorkflo
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WorkflowWorkflow
• Travel Planning
– Entering a travel request• By the employee or his boss
• Travel Expenses
– Entering the Trip Facts
– Checking Trip Facts
• Approving a Trip
– By the concern authorities
– With necessary modification, if necessary
• Displaying the Approval notification for the employee
• Settling a Trip (posting to account)
• Standard and Ad hoc reports
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T l tTravel request
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Travel requestTravel request
Travel planTravel plan
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Travel planTravel plan
Cost incurred & ApprovalCost incurred & Approval
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Cost incurred & ApprovalCost incurred & Approval
Cost in standard formatCost in standard format
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Cost in standard formatCost in standard format
Transfer to accountTransfer to account
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Transfer to accountTransfer to account
ReportsReports
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ReportsReports
ReportsReports
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ReportsReports
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Personnel Administration
Organizational Management
Training and Event
Time Management
Travel Management