Atum IT

(formerly known as ERPandERP)

SAP HCM OVERVIEW

Prepared & Presented by
Madhuri Chavakula
SAP HCM Consultant
 Goal of HCM

Right People for Right Job at the Right Time

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Functions
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Determining staffing needs

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Recruitment and training

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Time management
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Performance issues and performance monitoring

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Compensation and benefits

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Proper alignment of corporate and personnel goals

 Modules within HCM

Organizational Management
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Organizational Structure,, Job Descriptions, Planning Scenarios, Personnel Cost

Planning
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Personnel Management
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HR Master Data, Personnel Administration, Info. Systems, Recruitment, Benefits &

Salary Administration,
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Time Management
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Shift Planning, Work Schedules, Time Recording, Absence Determination

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Payroll Accounting
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Payroll Administration, Payroll Simulation

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Personnel Development
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Career/Succession Planning, Profile Match-ups, Training, TEMs

 Integration of HCM

HCM with Production

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Shift Planning (Capacity)

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HCM with FI/CO

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Payroll
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Personnel Cost Planning

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HCM with MM
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TEMs (Training and Event Management)

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HCM with SD
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Salespeople - Commissions
 Structure of HCM

Enterprise Structure

Personnel Structure

Organizational Structure
 Organizational Structure
 This is an overview of your Company’s Organizational Plan (Org. Hierarchy)
 Depicts the reporting structure and task distribution
 The Organization Structure is made up of the following elements
 Organizational Unit
 Represent functional units within an enterprise (ex. departments)
 Position spots that are occupied by individuals (Salesperson)
 Job classifications of functions within an enterprise
 ex. Job: Officer, which is used for Positions: CEO, CFO, COO
 job description for numerous positions
 Person the individual, he/she is assigned to a specific position
 Organization Structure
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It contains Organizational Objects/elements. These are called building elements.

SNO Organization Object Org Key

1 Position S
2 Person P
3 Organizational Unit O
4 Job C
5 Cost Center K
6 Task T
7 Work Center A
 What is Personal Administration?

The Personnel Administration module deals with data & records related to employees
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from the date of hiring till the date of resignation or retirement, i.e. during his services
what are the changes in the employee’s records will be dealt by the Personnel
Administration in the organization.

Purpose of this process is to capture all the different types of records that are to be
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maintained against an employee through the group of info types in order to manage the
data efficiently and effectively.

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 Enterprise Structure

Client :
The Client is an independent legal and organizational unit of the system.
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Company Code :
The Company code is an independent company with its own accounting unit – a
company which draws up its own balance sheets.
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Personnel Area :
A Personnel area is an organizational unit in Personnel Administration. It represents a
subdivision of the company code.
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Personnel Subarea :
Personnel subareas are subdivisions of personnel areas. The organization of the most
important subareas of personnel administration takes place at his level.

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 Personnel Structure

Employee Groups :
Employee Group is a group of employees with a specific status having the relationship
with the company for example Active, inactive, terminated, retire etc. It describes
how the employee's positioned in the organization.
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Employee Subgroups :
Employee Sub Group is subdivided of employee group i.e. Active employee is sub
divided as hourly wage earners, salaried employees, and trainees.
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Payroll Area :
Area in which a group of employees for whom payroll is run on particular period and
specific date.
 Employee Attributes
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The following statuses are assigned to those employee groups and employee
subgroups.

Activity status
1. Active employee
2. Retire
3. Early retiree
9. Other


Employment status
1. Industrial workers/Hourly paid worker
2. Salaries employee
3. Civil servant
9. Other


Training status
1. Trainee/apprentice
2. Trained
9. Others
 Pay Scale Structure

Pay Scale Type

The pay scale type defines the area of economic activity for which a collective
agreement is valid.
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Pay Scale Area

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The pay scale area defines the geographical area in which a collective agreement
is valid.
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Pay Scale Group& Levels

Pay scale groups and pay scale levels are the criteria used to classify data for job
evaluations and indirect valuations. Pay scale levels are subdivisions of pay scale
groups.

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 List of Infotypes in PA
Here are few infotypes we use in Personal administration.
SNO Infotype Infotype Name
1 0000 Actions
2 0001 Organizational Assignment
3 0002 Personal Data
4 0003 Payroll Status
5 0005 Leave Entitlement
6 0006 Addresses
7 0007 Planned Working Time
8 0008 Basic Pay
9 0009 Bank Details
10 0014 Recurring Payments and Deductions
11 0015 Additional Payments
12 0019 Monitoring of Dates
13 0021 Family/Related Person
14 0022 Education
15 0025 Appraisals
16 0027 Cost Distribution
17 0041 Date Specifications
18 0128 Notifications
19 0105 Communiation
20 0302 Additional Actions
Personal Actions

Different types of employee data are stored in individual infotypes. Rather than
accessing each infotype individually and entering data into them, the system can
group together the most important infotypes into personnel actions and lead you
through processing the employee data.

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 Reasons for Personal Actions
To execute the infotypes in a sequential order as per infogroup to perform a specific
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activity. For ex:

Hiring Actions
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Transfer Actions
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Promotion Actions
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Resignation Actions
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Retirement Actions
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Change in Pay
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Change in Position
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Return from long term leave

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Global Transfers
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PA Integration With Other HR Components In SAP
Personal Administration is completely integrated in the Human Resources
component of the SAP system. If any other additional functions requires to those
offered by PA , we will need to set up the following application components.

Required Application
SNO Desired Function Component
1 Transfer applicant data when hired to PA Recruitment

Automatically incorporate new employees in the Organizational

2 organizational structure of the company Structure
Transfer employee compensation directly to the Compensation
3 employees payment Management

4 Trigger transfer from Personal Development Personal Development

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 Reports In Personal Administration
There are numerous standard reports in the Personnel Administration
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component. You can use these to access statistical evaluations that read
employee data or organizational data and carry out these evaluations.
You can run the following standard reports using the information system in
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PA
Some of the sample reports in PA are listed below:
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Education Details
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Employees who have entered/Left the company

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Birthday List
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HR Master Data Sheet

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Reports that refer to Organizational units

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Headcount developments
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 Types Of Reports In Personal Administration
Information Systems:


The HR Information systems contatins the reporting tools and all the HR specific
reports. Its structure is determined by the components.
SAP Standard Reports:


SAP Human Resources provides you with more than 200 standard reports. This
section gives you an overview of the standard reports that are available in the
following areas of Human Resource Management.
Human Resource Information Systems:


HIS constitutes a simplified method of requesting reports by letting you start them
directly from structural graphics.


Manager’s Desktop:
Manager’s Desktop is a tool specifically for managers in which they can evaluate and
change data.
Ad-hoc Query:


Ad Hoc Query, is very useful tool when producing reports from Personal
Administration and Organizational Management. It is called Infoset Query in other
SAP Components, it remains Ad Hoc query within HCM.
SAP Query:


SAP Query allows to create reports with very flexible set up and output options.

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HCM Process: Time Management

• Supports planning, recording,

and evaluation of internal
employee time data
• Time data that would be
gathered and evaluated
• hours worked
• leave
• illness
• overtime
• substitutions
• business trips
• conference, training

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 HCM Process: Time Management

There are multiple methods for data collection:

Time Administrators
Time Manager’s Workplace
Time Terminals

Cross Applications Time Sheet

Employee Self Service

Mobile Technology
 HCM Process: Time Management

Time collection will be used for:

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payroll accounting
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personnel cost analysis

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internal cost allocations

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invoicing
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performance analysis
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capacity availability
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shift planning
 HCM Process: Payroll Administration

SAP contains an international payroll driver that is

modified for each country
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payroll is released for individual payroll areas.

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The run is for a specific group of employees and a

specific period of time
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upon release all affected personnel records are locked

will generate an payroll results,
and earning statement, bank transfers and check
payments
 HCM Process: Payroll Administration

This is an overview of your Company’s Organizational Plan (Org. Hierarchy)

•

Depicts the reporting structure and task distribution

•

The Organization Structure is made up of the following elements

•

Organizational Unit
•

Represent functional units within an enterprise (ex. departments)

•

Position spots that are occupied by individuals (Salesperson)

•

Job classifications of functions within an enterprise

•

ex. Job: Officer, which is used for Positions: CEO, CFO, COO
•

job description for numerous positions

•

Person the individual, he/she is assigned to a specific position