HCM - Creating an Organizational Structure

Creating an Organizational Structure

By Madhusudhan M

Before we go ahead and create an Organizational Structure, let’s have a quick look at the terminology used in the organization structure.

Structures in SAP HCM

Organizational structure.
Enterprise structure.
Personnel structure

Pay scale structure
Applicant structure
Wage type structure

1. Organizational structure: It contains organizational objects /elements. These are called building elements.

Organizational objects / elements are:

Organizational objects	Org. key
Organizational unit	O
Job	C
Position	S
Person	P
Cost center	K
Task	T
Task group	Ts

If we create any organizational object, System will assign a eight digit numeric number, which is called unique Number.

1. Organizational Unit: Represents a functional unit in your enterprise, Human Resources department, for example. According to how tasks are divided up within an enterprise, this could be a department, group or project team, plant, for example. Organizational units differ from other units in an enterprise such as personnel areas, company codes, business areas etc. These are used to depict structures (administration or accounting, for example) in the corresponding components.

Kinds of organizational units

A). Main Organizational unit / Root organizational unit: Whatever the organization we create for the first time is called Main organizational unit.

B). Sub organizational unit: Under Main org. unit whatever we create is called sub org.units.

2. Job: Jobs, in contrast, are classifications of functions in an enterprise (administrator, for example), which are defined by the assignment of characteristics. Jobs serve as job descriptions that apply to several positions with similar tasks or characteristics.

Jobs are used as templates to create Positions that means to say without a job we can’t create a position.

Example:

Manager
Engineer
Consultant
Designer
Administrator

3. Position: Represents a post that can be occupied by a person (employee) in the staff assignments of an organizational unit, purchasing administrator, for example. Positions differ from jobs. A job is not concrete but rather the basis for the creation of various positions with similar tasks and characteristics. . Positions are created based on jobs; it means to say without a job we can’t create a Position.

Job	Position
Manager	HR manager
	Marketing manager
	Finance manager
	Plant manager
Engineer	Production engineer
	Site engineer
	Software engineer
Consultant	SAP HR consultant
	FI/CO consultant
	SD consultant
Designer	Software designer
	Web designer

1. Person: An individual, who is listed as an employee in Personnel Administration. A position can be occupied partially, hundred percentage.

2. Task: It is a collection of duties and responsibilities. Tasks are assigned to jobs and positions.

“Activity which is performed within an organizational unit”

Task group: It is a group of tasks which can be assigned either a job or a position.

* HOW TO CUSTOMIZE ORGANIZATIONAL STRUCTURE*

Organizational structure can be created in three procedures.

Simple Maintenance
Expert Mode / Detailed Maintenance
Organization and Staffing

Comment: If we create organizational Structure in any procedure, the same structure reflects in other two procedures.

If we create organizational structure in Simple maintenance and Organization and Staffing the relationship between the objects are assigned by the system. Where as in detailed Maintenance the user has to assign the relationship code.

The relationship between two objects is expressed in three digit numeric characters.

Each and every relation can be expressed in two ways.

1. Top down àwhich is indicated with B

2. Bottom up àwhich is indicated with A

For example:

TATA group of business---Bàtop down.

TATA mobiles business-- -Aàbottom up

In the above Organizational units i.e. BàTATA group of business shows its relationship towards A i.e. TATA mobiles, in the same way A i.e. TATA mobiles shows its relationship towards B i.e. TATA group of business. That means to say TATA mobiles reports to TATA group of business / TATA group of business is the line supervisor of TATA mobiles.

So we come to know that the lower level organizational object is A

So we come to know that the higher-level organizational object is B

The relationship codes can be seen through transaction code “OOVK” table name is T778V

The relationship codes:

Relationship code	Relationship bottom up	Relationship top down
	Indicates with A	Indicates with B
*
001	Is a subdivision of	Is subdivided into
002	Reports (line) to	Is line supervisor of
003	Belongs to	Incorporates
004	Is subordinate to (disc.)	Is disc.supervisor of
005	Is subordinate to	Is supervisor of
006	Substitutes for	Is substituted by
007	Describes	Is described by
008	Holder	Holder
009	Successor	Successor
010	Substitute	Substitute
011	Cost center assignment	Cost center assignment
012	Manages...	Is managed by...
013	Staffing requirement	Staffing requirement
014	Cost distribution	Cost distribution
015	Is identical to	Is identical to
017	Is carried out by	Carries out
018	Previous org. assignment	Previous org. assignment
019	Planned org. change	Planned org. change
020	Is a specialization of	Is a generalization of
021	Is equipped with	Is contained in
022	Requires	Is required by
023	Reserves	Is reserved by
024	Takes place in	Is location of
025	Is attended by	Takes part in
026	Is held by	Is the instructor for
027	Has a prebooking for	Is prebooked for
028	Imparts	Is imparted by
029	Presupposes	Is presupposed by
030	Is a specialization of	Is a generalization of
031	Requires	Is required by
032	Fulfils	Is fulfilled by
033	Is planned for	Can attend
034	Was attended by	Attended events of type
035	Is previous job of	Is subsequent job of
036	Is organized by	Organizes
037	Designated as successor	Designated as successor
038	Has potential for	Is a potential of
039	Supplies	Is supplied by
040	Was cancelled by	Has cancelled
041	Is an equivalent job	Is an equivalent job
042	Interests and preferences	Interests and preferences
043	Dislikes	Is dislike of
044	Consists Of	Is part of
045	Created	Was created by
046	receives	Was created for
047	Contains	Is an element of
048	Application by	Application for
049	Is developed by	Develops
050	Assesses	Is assessed by
051	Is a session of	Is main event of
052	Attends session	Is attended by
053	Still requires	Is still required by
054	Uses (for attendee)	Is used by (attendee)
055	Uses (for bus. event)	Is used by (bus. event)
056	Person has cost center	Persons on cost center
057	Has attendee apprsl model	Is at'ee apprsl model for
058	Has event apprsl model	Is event apprsl model for
059	Employee pool	Employee pool
060	Capacity assignment	Person assignment
061	Equals	Equals
062	Requirement description	Requirement description
063	Requires	Defines demand for
064	Requirements definition	Requirements definition
065	Planned assignment	Planned assignment
066	Reserve pool assignment	Reserve pool assignment
067	Exclusive temp.assignment	Exclusive temp.assignment
068	No shift planning	No shift planning
069	Is temporarily done by	Works temporarily as
070	Responsible for cost plan	Responsible for cost plan
071	Parallel temp.assignment	Parallel temp.assignment
072	Shift planning by	Shift planner for
077	Passes through	Is passed through by
080	Assigned to exposure grp	Exposure group contains
081	Higher duty holder	Higher duty holder
083	Is Key Position of	Incorporates Key Position
088	Dotted Line Reports to	Dotted Line Supervises
089	Dotted Line Reports to	Dotted Line Includes
090	Is responsibility of	Is responsible for
101	Country reassgmt to	Country reassgmt from
108	Is assigned to	Is assigned to
200	Replaces	Is replaced by
201	Assigned role	Role incorporates
202	Notification agent	Notification agent
204	Possible roles	Possible roles
207	Is identical to	Is identical to
208	Is identical to	Is identical to
209	Is filled by	Has employment contract
210	Substitutes with profile	Substitutes with profile
220	Belongs to	has
221	Is object reference of	Contains objects
222	Belongs organizationally	Incorporates SAP objects
223	Is assigned (valid.per)	Incorporates(for valid.)
224	Is object type of	Is container instance of
225	Is event of	Has event
226	Is method of	Has method
227	Triggers	Is triggered by
228	Terminates	Is terminated by
230	Is part of	Contains
231	Assignment exists	Assignment exists
232	Has element	Is an element of
240	Existence depends on	Defines
250	Is responsible for	Is responsibility of
262	Reports to	Is superior of
263	Belongs (not uniquely) to	Incorporates (not unique)
264	Belongs (uniquely) to	Incorporates (uniquely)
280	Belongs to system	Uses function
281	Belongs to function	Has combination
282	Is an element of	Has object
283	Sends message	Receives message
290	Has administrator	Is adminstrator for
291	Partner agreement	Partner agreement
292	Maintains brokers	Brokers are maintained
293	Has user for commissions	Is user for commissions
299	Is supported by...	Supported
300	Is financed by...	Finances...
301	Increases	Is increased by
310	Is responsible for	Is responsibility of
311	Substitutes for	Is substituted by
312	Belongs to (reclassif.)	Incorporates (re-valuatn)
313	Reclassified from	Reclassified into
314	Is to be financed by	Is earmarked for
315	Responsible for Financing	Responsible for Financing
400	Is child of	Is parent of
401	Is assigned	Is assigned
601	Represents	Is Represented By
605	Is an Element Of	Includes Element
606	Is attribute ref. for	Refers to attributes of
607	Is described by	Descriptive element of
620	Is assigned	Is assigned
700	Is responsible for	Is responsibility of
701	Is assigned	Is assigned
710	Fulfils	Is fulfilled by
711	Requires	Is required by
712	Imparts	Is imparted by
750	Vacant position in	Incorporates vacant pos.
751	Is responsibility of	Is responsible for
752	Fills	Will be filled by
753	Publishes	Published by
754	Publishes in	Publishes
755	Application by	Application for
756	Has applicant	Applied for position in
900	Manager to manager	Manager under manager
903	Belongs to (alternative)	Incorporates(alternative)
962	Reports to (alternative)	Is superior (alternative)
963	Belongs to (preferred)	Incorporates (preferred)

Simple maintenance:

How to create organizational structure in Simple maintenance?

PathàSAP easy accessàhuman resourcesàOrganizational managementàExpert mode àSimple Maintenance

Text	Transaction code
Create	PPOC_OLD
Change	PPOM_OLD
Display	PPOS_OLD

Enter “PPOC_OLD” in the command field “Or” Go through the path

Click here to continue...

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Creating an Organizational Structure