Organizational Structure

Personnel areas and sub-areas

Employee groups and sub-groups
HR common
 Personnel structure and enterprise structure
 Are used in system rules for processing payroll, time
benefits, changing org structure
Personnel Areas/SubAreas

1000-Country 3000-Country

(1000-Location-1 1100-Location-2)
(3000-Location-1 3100-Location-2)

1101 1102 3101

Head Office Production Sales
For eg click here
A personnel area is a Personnel Administration specific unit and is the subunit of
the company code. The individual personnel areas in a company code have four
digit alphanumeric identifiers The personnel areas within a client must be clear.

The personnel area has the following functions :-

1. It allows you to generate default values for data entry, for e.g. for the payroll
accounting area.
2. It is a selection criteria for reporting.
3. It constitutes a unit in authorization checks.
Personnel Sub areas
The main organizational functions of the peronnel subarea are as follows:-
1. To specify the country grouping. Master data entry and the setting up and processing of wage
types
and pay scale groups in payroll depend on the country grouping. The grouping must be unique
within a company code.
2. To assign a legal person which differentiates between companies in legal terms.
3. To set groupings for Time Mangement so that work schedules and substitution, absence and leave
types can be set up for individual personnel subareas.
4. To generate a default pay scale type and area for an emplyee's basic pay.
5. To define a public holiday calendar.
6. To define subarea-specific wage types for each personnel area.

Personnel Structure
For administrative purposes, the employees in an enterprise are divided into two levels.
1. The highest level is an employee group, the second, employee subgroup.
2. These levels are subject to authorization checks, to define remuneration levels or different work
schedules, for e.g.

IMG -> Enterprise Structure -> Definition -> Human Resources Management

-> Personnel Areas

-> Personnel Subareas
Let us take an example
 This is the proposed structure in
University of kentucky
University of Kentucky

Proposed Enterprise Structure (HR/Payroll)

Human Resources Team

HR Payroll SAP Enterprise Structure
 HR/Payroll Enterprise Structures
 Corporate/Organization Structure:
 Personnel Area
 Personnel Sub-area
 Employee Structure:
 Employee Group
 Employee Sub-group
 Pay Structure:
 Payroll Area
 Personnel Area Definition

A Personnel Area is a specific entity within the Personnel Administration structure.

It is a sub-unit of an organization and each personnel area must be unique and
assigned to one company code.
 A Personnel Area is defined with a unique 4-character identifier.
 Primary uses of Personnel Areas:
• Payroll processing – Payroll rules
• Time Management – Time Evaluation rules
• Security – Authorization profiles
 The HR team has defined the need for the following three (3) Personnel Areas:
• Main Campus
• Clinical
• External
 Personnel Sub-area
Definition
A Personnel Sub-area is a subdivision of a Personnel Area.
 Personnel Sub-areas can be used to group employees in
different:
• Shift/Work Schedules

• Locations

• Holiday Calendars (where company holidays vary according to

geographical regions)
• Payment and Deduction Types (Wage Types)

• Benefits Entitlements

• Premium Payments
 Personnel Sub-areas Defined
The following sub-areas have been defined:
 MAIN CAMPUS
• Main Campus
• STEPS
• Physical Plant
CLINICAL
• Hospital
• Clinic
• Medical Center Physical Plant
EXTERNAL
• KCTCS
• HCCS
• SREDC
• ODK
• Kentucky Humanities Council
• Water Resources Institute
Employee Group Definition
Employee groups are used to classify employees in SAP.
Employee groups provide a breakdown of employee population
by different categories.
Country groupings are at this level
 Primary uses:
• Payroll calculation rules

• Time Management rules

• Benefits grouping

• Reporting

• Grouping work schedules

Employee Groups Identified
The following employee groups have been identified:
 Faculty
 Staff
 Hospital Staff
 Students
 Post Doctorate
 House Staff
 Retiree
 Federal
 External
Employee Sub-group
Definition
Employee Sub-groups are subdivisions of Employee Groups.
 Can be used to identify:
 Different sub-groups of employees within an employee
group, such as Full-time, Part-time, etc.
 Can be used in system decisions:
 Using Features in Master Data/Benefits/Time/Payroll
 Using Payroll and Time Evaluation Rules
The requirement for fifty-seven (57) Employee Subgroups has
been identified.
 Payroll Area Definition
 Payroll Areas fulfill the following two functions
necessary for payroll processing:
 Grouping of employees that have the same pay

cycle
 Determination of payroll period

 The University has the requirement for two (2) Payroll

Areas:
 Monthly

 Bi-Weekly
University example ends