SAP University Alliances

Authors Claudia Kroliczek

Mark Lehmann
Human Capital Management
Chris Bernhardt (HCM)
Stefan Weidner

Product
SAP ERP 6.0 EhP7
Global Bike Inc.

Level
Beginner

Focus
Human Capital Management

Version
2.30

Last Update
June 2014

© SAP AG
 SAP ERP Course Overview

 Introduction to SAP
 Navigation
 Introduction to GBI
 Sales & Distribution
 Materials Management
 Production Planning
 Financial Accounting
 Controlling
 Human Capital Management
 Warehouse Management
 Project System

Page 8-2
 SAP ERP Unit Overview

 HCM Organizational Structure

 HCM Master Data
 HCM Processes
- Organizational Management
- Recruitment
- Personnel Development
- Talent Management
- Performance management
- Personnel Controlling

Page 8-3
 SAP ERP HCM Organizational Structure

 Represents the structural and personnel organization of a company

 Illustrates the organizational structures and hierarchies
 Illustrates an employees responsibilities
 Consists of three parts:
- Enterprise Structure
- Personnel Structure
- Organizational Plan

Page 8-4
 SAP ERP HCM Enterprise Structure

 Enterprise Structure
- Represents formal structures in a company
- Each employee needs to be assigned to an enterprise structure.
- Basically consists of company code, personnel area, and personnel subarea
- Client
• An independent environment in the system
- Company Code
• Smallest org unit for which you can maintain a legal set of books

- Personnel Area
• Represents a company area

- Personnel Subarea
• Represents part of a personnel area

Page 8-5
 SAP ERP Global Bike Enterprise Structure for HCM

Global Bike Group Client

Global Bike US Global Bike Germany Company

Code

Personnel
GBI Dallas GBI Miami GBI San Diego GBI Hamburg GBI Heidelberg Area

Executives Sales Sales Sales Executives

Finance Purchasing Finance

Purchasing MM
Personnel
HR HR
MM MM Subarea
IT MM

MM Purchasing

Purchasing Production

Production

Page 8-6
 SAP ERP HCM Personnel Structure

 Personnel Structure
- Describes an employee’s position within the company
- Is defined by employee group and employee subgroup
- Employee Group
• Organizational unit for which personnel related regulations can be specified
• Examples:
– Active employees
– External
– Retirees
- Employee Subgroup
• Organizational unit within the employee group, for which personnel related
regulations are specified
• Examples:
– employees
– Trainees

Page 8-7
SAP ERP HCM Personnel Structure

Employee Group

Active External Retiree

Employee Trainee Employee Subgroup

Page 8-8
 SAP ERP HCM Organizational Plan

 Organizational Plan
- Describes in which function an employee is acting
- Organizational Unit
• Can be grouped according to functional and regional aspects.

- Position
• Are assigned to organizational units and filled by employees
• Example: Position accounting clerk in the Accounting Department
- Person
• Are employees and fill positions

- Job
• General description of tasks which an employee should perform
• Are assigned to positions
• Example: Position Head of Department

Page 8-9
SAP ERP HCM Organizational Plan

Organizational Unit

Position Job

Person Assignment
Assignment (optional)

Page 8-10
SAP ERP GBI Enterprise Structure in SAP ERP HCM (US)

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Company Code US00
Client GBI
Page 8-11
SAP ERP GBI Enterprise Structure in SAP ERP HCM (DE)

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Client GBI
Page 8-12
 SAP ERP HCM Master Data

 Personnel number
- Is used in SAP as a central identifier for an employee
- Can comprise by up to eight digits
- Can be assigned either by the system or manually
- All employee data available in the system are identified on the basis of the
personnel number.

Personnel no.
64751511

Expenses results Travel expenses

Expenses Expenses Travel expenses

May 2010 June 2010 April 2010

Page 8-13
SAP ERP HCM Processes - Organizational Management

- Model the organizational structure of your enterprise

- Create, change organizational units

- Create, change jobs

- Create, change positions

Page 8-14
 SAP ERP HCM Processes - Recruitment

 Recruitment, choice and setting of applicants

 External recruitment

 Internal recruitment

 Developing a data base for applicants

 Administration of vacant positions

Page 8-15
 SAP ERP Recruitment - Organizational Assignment

Applicants are assigned to the elements of the applicant structure:

Applicant Group
Structures applicants according to the
type of their employment relationship
Actives Working
students

Applicant Range
Employees Leading Specialist
Classifies applicants according to employees
hierarchical or functional criteria

Page 8-16
SAP ERP Recruitment - Process

Page 8-17
SAP ERP Recruitment - Selection Procedures

In SAP HCM, two types of selection procedures are distinguished:

Global Selection Selection Procedure

Procedure for each Vacancy

Overall status Status of vacancy assignment

Page 8-18
 SAP ERP HCM Processes - Personnel Development

 Advance qualifications of employees

 Comparison: requirements of positions with qualifications of
employees  profile matchup
identify further training need

Page 8-19
 SAP ERP Personnel Development - Qualifications

Qualifications can be linked with persons or positions. The last is

not called a qualification but a requirement

Page 8-20
 SAP ERP Personnel Development - Requirements

 Requirements can be attached to positions

 Requirements are qualifications, knowledge and experiences
 Requirements can be created with a characteristic

Page 8-21
 SAP ERP Personnel Development - Profile Matchup

 With the help of the profile matchup, persons,

positions and jobs can be compared to each
Position Person
other

 The difference between the characteristic of a

requirement and the characteristic of a
qualification is determined

 3 results are possible:

 Both characteristics are identical

 The requirements are higher than the qualification

(=underqualification)

 The requirements are lower than the qualification

Requirements
(=overqualification)
Qualification

Page 8-22
 SAP ERP HCM Processes - Performance Management

 Define objective setting between enterprise and employees

 Evaluate benefit of employees  Feedback

 Have goals been achieved?

 Goal: higher motivation and better benefits

Page 8-23
SAP ERP Performance Management - Process of Appraisal

Planning Feedback
Agree on goals Perform Evaluation (appraisal)

Payment
Adjustment

Page 8-24
 SAP ERP Performance Management - Status

 In order to display a performance feedback process, appraisals

and objective settings may have different statuses.
 In Preparation: an appraisal template has been created and
provided with header data (e.g. appraiser, validity)
 In Process: an appraisal has been given but it is not completed,
the evaluation may still be changed
 Completed: The appraisal is finished
 Approved: The appraisal has been approved
 Rejected: the appraisal has been rejected

Page 8-25
 SAP ERP HCM Processes - Personnel Controlling

 Reports and Analysis

 Evaluation of personnel data

 Standard reports

 Human Resource Information System

 Manager‘s Desktop

 Ad-hoc Query

Page 8-26
 SAP ERP Personnel Controlling - Standard Reports

= predefined SAP requests with a

unique design

Example: Birthday List

Page 8-27
 SAP ERP Personnel Controlling - HIS

The Human Resource Information System (HIS) enables the analysis on the basis of
the organizational structure.

Page 8-28
SAP ERP Personnel Controlling - Manager‘s Desktop

Page 8-29