SPMCIL END USER TRAINING MANUAL

ORGANIZATIONAL MANAGEMENT
Business Process Description Overview

SAP Organization Management is an important integral part of SAP HR application.

In line with SAP R/3 Business framework, SAP HR organization is based on business
objects i.e. Organizational Management is based on the concept that each element
in the organization represents a stand-alone object with individual characteristics.
For example, an employee is considered as an object in SAP and named as person,
A Department/Business unit, which performs certain function, is treated as an
object, which is called as organization unit in SAP. These objects are created and
maintained separately and then linked together through relationships, to form a
flexible human resource network.

OM offers a number of different user interfaces to use while performing various

creation / maintenance scenarios. The user interfaces are:

Organization & staffing

General Structures

Expert Mode

Simple Maintenance

This document is designed to provide an introduction on how to use the system

and describes different scenarios regarding creation / maintenance of objects and
relationships within Organizational Management by using Organization & Staffing
methodology.
This document will also enable users to:

Use the Application Help tool to increase practical learning and provide instant
support

Create organizational units, jobs and positions to be filled by employees

Understand and use the different scenarios to create and maintain organizational
structures in HRMS
Organizational Unit

The process of maintaining object Organizational Unit broadly consists of editing

organizational structure (relationship between organization units) and staff
assignment (assigning position to organization unit).

Create organizational Units

Create an organizational structure by establishing linkages between/among them.

Display the entire organizational structure or individual organizational units.

Change the organizational structure, that is create, assign, terminate or delete

organizational units

Assign characteristics to organizational units

Find out which positions belong to which organization unit

Characteristics for each organizational unit will be stored in different infotypes. These
can be evaluated using reports and inherited by subordinate positions (Cost centre, for
example)

Relationship Infotype 1001:

The relationships that Org. Unit has with other objects have to be maintained in
this Infotype. The relevant relationships are between Org. Unit & Org Unit and Org.
Unit & Position and Org Unit and Cost Centre, for example.

An Org. Unit
is line supervisor of
another Org. Unit.
An Org. unit
incorporates
a Position
An Org. Unit
Cost centre assignment
Cost centre

Account Assignment Infotype 1008:

By using Account Assignment Feature Infotype (IT1008), we can specify Cost

Centre-related default settings for organizational objects. These default values
ensure that the system suggests the correct Cost Centre assignment for
Organizational objects. Here also the principle of inheritance applies.
PROCEDURAL STEPS TO CREATE ORGANIZATIONAL UNIT

Menu Path and Transaction Code: Use the following menu path to go to the
Organizational Unit screen:

Via Menus
Human resources > Organizational Management >

Organizational plan > Organization and Staffing > PPOME -

Create

Via Transaction Code

PPOCE
The following working area screen appears within the user interface:
Organization & staffing

In the Search area you search for different objects such as Organizational unit, Positions,
Jobs and Persons.

Clicking on Free Search provides information on all organizational units in the system. -
Using

Search Term you can find the specific organizational unit that you want to locate. -
Structure Search can be used to find objects along an organizational structure.

Object History can be used to check the past history of an organizational unit.
In the Selection area you select an object to be used in the Overview and /or Detail area.

In the Overview area you will view the Organizational unit hierarchy or staffing
assignment of an Organizational unit.

In the Detail area you will maintain object characteristics.

Search area

Selection area
Overview area

Detail area
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In the Detailed area, enter the Short text and Long text of the Organizational Unit.

Short Description Long Description

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To create further Organizational units under the root organization, select the root org unit
and click on the Create button
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The system will open a pop-window asking whether the user would like to create a sub org
unit or a position under the selected org unit. Here we shall select Organizational unit in
order to create sub org units.

For SPMCIL, we shall be creating different units in the organization under the root org unit
and further sub-dividing the units by Department and Sub-department wise.
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Company Code Assignment

Company Code needs to be assigned to the root organization. By doing this, the system
will automatically assign the company code to the subsequent sub-org units created.

Select the Account Assignment Tab, click on Company code and select from the drop down
list.
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Cost Centre Assignment

Every department in SPMCIL will be having a cost centre. To assign the same to the click
on the Master Cost centre field, system will provide a pop up window, wherein, enter SPML
in the

Controlling area field and click on Start Search button to get the full list of all
available cost centres.
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Select the relevant cost centre for assignment.
Once all the Organizational units and Sub units have been created, user can now create
the positions under the relevant org units.

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Position

A position is an Organizational Management object. A position is held by employees and

thus is the main link between personnel administration (PA) and Organization
Management (OM). Positions are assigned to organizational units.

All the persons (employees) and positions belonging to an organizational unit in the past,
present and future generate staff assignment in organization structure.

The proposed model will have existing business titles mapped to position and assigned to
Organization unit (department) level. The position will be represented by eight digit
numeric code internally assigned by system. Additionally, the existing code and
description will be captured in abbreviation and long text field.

In the organization structure, relationship between organization units is established. But,

this does not necessarily depict the reporting relationship between positions. In order to
build the hierarchy between positions, the reporting structure will be created. Reporting
structures identify the chain of command, or authority structure that exists in the
organization. Parallel to Organization structure (relation between Organization units), the
reporting structure can be viewed in the graphical mode.

Department head can be defined as chief position within an organizational unit, to which
all other positions in the organizational unit report.

There will be several characteristics (like vacancy status, description etc.) stored for each
position. These can be

Evaluated using reports

Used as default values when the position is filled by an employee In Organization

Management, Position is critical object and is used to:

Create staff assignments, that is the assignment of holders (employees or R/3 users) to
positions and to a corresponding organizational unit
Evaluate reporting structure

At any given point of time, position will bear one of the following statuses.

Occupied, if a person (employee) or user is assigned to it

Vacant, if a person (employee) is being found for it

Unoccupied and not vacant, if no person (employee) is being found for it or position is not
to be filled up immediately

Obsolete, if the Position will no longer be required in the future

A position can be flagged as chief position

We need Positions to:

Create staff assignments: that is the assignment of holders (employees/ users) to

Positions and to a corresponding organizational unit

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Evaluate reporting structure: One can depict and document the reporting structure of
enterprise using reports. The reporting structure once created, determines the evaluation
paths. Here, evaluation path is a string of relationships among various objects in the
enterprise.

The following infotypes need to be maintained to determine characteristics of Positions:

Object Infotype (IT1000)

All Positions identified should be maintained in this infotype. In this infotype, the name
and validity period of the position is maintained. The name is stored in two fields. They are
abbreviation and long description. The abbreviation assigned to an object in the system
renders it easily identifiable. It is helpful to use easily recognizable abbreviations.
Abbreviations and descriptions can be changed at a later time by editing object infotype
records.

Position as an object, has a validity period. It is defined by Validity date in this infotype.
At any given date, the Positions valid on that date can be viewed and maintained. Validity
of Position is defined at the time of creation. However it can be changed during
maintenance. Also the validity period can be delimited to end the validity of the Position.

Relationship Infotype (IT1001)

The relationships that Org. Unit has with other objects have to be maintained in this
Infotype. The relevant relationships are between Org. Unit & Org Unit and Org. Unit &
Position.

A Position will always be related to an organizational unit (belongs to / includes)

Vacancy Infotype (IT1007)

IT 1007 is an infotype with which we can identify Positions that are currently vacant or
will be vacant in the future, that is, they may be occupied again in the future.
Vacancy Creation:

Despite Positions being vacant they need to be first approved as vacant in case they are
to be filled in. Implication of this model is that, when any Position falls vacant for whatever
reason, the system shall give a prompt. When marked as vacant, system will create a
vacancy against that Position.

Vacancy once created it would be possible to fill the Position.

We can create a vacancy record for an occupied Position, if an employee has left or is
leaving or proceeding on long leave and we need to fill it. We can create a Vacancy
infotype record for a Position that is occupied or unoccupied. At any given point of time,
we can know the occupied and unoccupied Positions. For applicant administration, it is
necessary to maintain this infotype.

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Select the org unit for which positions need to be created and click on the Create
button, system will provide a pop up window:
Click on the Position to proceed with creation of positions.

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Enter short text, long text and click on the Head of own org unit, incase that position is
the head of that particular org unit.
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To create the reporting structure between 2 positions:

Double click on the position for which u need to create the reporting structure and click on

Goto from the main tab, select Detail object Enhanced object description
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System will take you to the Maintain object screen
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Select Relationships and click on Create button.
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Select the validity period of the relationship and click on relationship type to get a drop
down list of valid relationships provided by standard SAP
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Select from drop down list provided, object to which you want to create the relationship
for. Here we shall select Position

Go to structure search and select the position to which you want the related object to
report to.
Once all relevant data has been selected, click on Save button and the relationship
will be created.

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JOBS

Positions are concrete and can are held by persons in an enterprise (purchasing
administrator, for example). 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

To create jobs, select Edit from main menu tab and click on Create Jobs
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System will provide table for creating jobs.

Select the validity period of the job

Give the abbreviation and full name in the respective columns

You can create multiple jobs in this table. Once the jobs have been created, the same
can be assigned to the positions.

Double click on the position to which you want to assign the job to:

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Click on the Job field and either enter the abbreviation of the job or start search for
selecting appropriate job
On selecting the job click on Save button

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You can either follow the menu path else enter the T-code directly in the transaction field
and enter
This transaction code can be used to create additional organizational units, positions, jobs
and their respective relationships.

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