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01 EnterPrise Modeling

There are three typical enterprise models - project based, rule based, and hybrid structures. Project based enterprises have a fluid organizational structure and employees work on different projects over time. Rule based enterprises have a highly structured environment where positions exist independently of employees. Hybrid structures combine elements of both project and rule based models, with fixed roles for management and more flexible roles for other positions.

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78 views3 pages

01 EnterPrise Modeling

There are three typical enterprise models - project based, rule based, and hybrid structures. Project based enterprises have a fluid organizational structure and employees work on different projects over time. Rule based enterprises have a highly structured environment where positions exist independently of employees. Hybrid structures combine elements of both project and rule based models, with fixed roles for management and more flexible roles for other positions.

Uploaded by

Mhsnaird
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ENTERPRISE MODELING

Each enterprise has its own unique culture, which is reflected in the organization of work
and in the management of people within the enterprise. The enterprise culture also affects
the reward systems in operation and the control systems that are required. Oracle HRMS
might be implemented for three typical enterprise models.
 Project based enterprises
 Rule based enterprises
 Hybrid enterprise structures

Project Based Enterprises: Project Based enterprises are normally service based
industries where flexibility and organizational change are key features. Few examples are
consultancy or construction companies, or small manufacturing or software companies.
Single Projects: Employees are assigned to work on single projects for a given period of
time. E.g. an engineer working on a large scale construction project might be assigned to
the project for a period of six months. All their work and costs are associated with this
one project. When this is complete the employee moves on to perform a similar role on
another project. In this example you would expect the employee to have a single
assignment, with 100% of the assignment costs allocated to a single project. The
employee assignment might also contain project specific information, such as location or
group information.
Multiple Projects: An employee might be assigned to a number of projects at the same
time. For example, consider an Applications Consultant working for Satyam Computers.
This person is employed as a consultant by a specific organization within Satyam
computers but the project work is undertaken outside Satyam. The consultant performs
similar tasks in different implementation projects, and costs are allocated on the basis of
actual time spent working on each project. In this example you would expect the
consultant to have a single assignment in Oracle HRMS and the project allocation and
costs to be entered as timecard information.
In both of these examples, employees perform specific roles, but they work on different
tasks or projects at different times. Project based enterprises normally have a fluid
organization structure with regularly changing reporting and management lines. This
fluidity provides the flexibility required to compete in rapidly changing markets.
To represent both single and multiple projects, you need the ability to define and change
organization structures quickly and easily. You must also be able to move employees
between organizations while keeping the same job. For both of these reasons, you would
probably use organizations and jobs to show how people are assigned and managed.
Characteristics:
 Loosely structured operating






Rapidly changing structures in response to changing business opportunities


People are hired and deployed for their skills
Reward systems are usually personal
Individuals are usually more important than roles.

System eeds:
 Flexibility to represent and change organizational structures and work groups.
 Flexibility in defining and assigning roles to people.
 Ability to show multiple activities.
 Ability to define and manage competence-centric business processes.
 Flexibility in the compensation management framework to handle individual
compensation plans.

Rule Based Enterprises: The rulebased enterprise is often a highly structured


environment in which all aspects of work and remuneration are well organized and
regulated. Few examples of this type of enterprise are government, education, health and
other public sector industries. A key feature of this type of enterprise is the concern with
managing positions, or posts. Positions exist, and are managed independently of people in
post. E.g. even if the accountant in Income Tax Department leaves the organization, the
position would still be open and will be filled by other person with the same designation.
Characteristics:
 Highly structured operating groups
 Posts exist independently of people
 Positions are controlled, with detailed approvals for budgeting and reporting
 Employees hired and assigned to specific positions
 Rewards usually associated with the position
 Roles usually more important than individual
System eeds:
 Ability to define and control positions independently of people.
 Ability to manage some information about positions across organizations.
 Ability to assign multiple people to one position or one person to many positions.

Hybrid Enterprise Structures: Many enterprises combine different types of


structure for different groups of employees. Typical of these hybrid types are large
manufacturing or corporate enterprises where management and administrative roles are
fixed into specific organizations (Rule based Enterprise model), but other roles are
managed in a more flexible manner (Project based Enterprise Model).
Characteristics:
 Typical in large manufacturing, or larger commercial enterprises.
 Share characteristics of both project and role based types of enterprise models.
 Typically management and administrative roles are fixed.

 Other roles managed more flexibly Typical in large manufacturing, or larger


commercial enterprises.
 Share characteristics of both project and role based types of enterprise models.
 Typically management and administrative roles are fixed.
 Other roles managed more flexibly.

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