HR module

Introduction to HR


Organizational elements are components of the legal and/or organizational structure of an enterprise. You can design your enterprise structure based on your business processes.

SAP Human Resources uses these elements:

•Client: Definedfor the entire corporate group or at a lower level.
•Company code: Defined in accounting. Legally required financial statements, such as balance sheets and profit and loss statements, are created at the company code level.
•Personnel area: Used exclusively in SAP Human Resources and is unique within a client. Each personnel area must be assigned to a company code.

This classification can be used to create reports of administrative costs, such as labor, recruiting, or training, and it serves as the link to Financial Accounting.

•Personnel subarea: The final element of the enterprise structure and unique to SAP Human Resources. Attributes are assigned at the lowest (subarea) level, but for efficiency, personnel subareas can be grouped so that some attributes can be assigned at the personnel area level.

The administrative personnel structure for SAP Human Resources relates primarily to working hours and compensation. It is made up of three elements:
•Employee group
•Employee subgroup
•Payroll area

•An example of a personnel structure is illustrated above:

•Employee group: The employees are categorized as active employees or pensioners.
•Employee subgroup: The active employees are divided into two subgroups – hourly and salaried.
•Payroll area: The active employees are also divided into two payroll areas that determine when they receive their pay – weekly or bi-weekly.

In addition to the administrative personnel structures, there are also organizational structures that describe what employees in the enterprise perform what job tasks.

•An organizational structure represents the structure of the enterprise.

•A company’s organizational structure consists of the following elements:

•Organizational units
•Jobs
•Positions
•Employees

Employee master data is maintained in the SAP R/3 System through infotypes linked to employee identification numbers.

Employee data is grouped as follows:

•Individual information, such as last name, first name, and date of birth, is defined in data fields.
•Data fields are grouped into data groups or information units according to their content. In the SAP HR component, these information units are called information types or infotypes for short.
•The end user sees the infotype as a data entry screen. When the user enters data, the system checks for logical errors.

Personal data is stored in logical groups. For example, place of residence, street, and house number make up the employee’s address and are stored (together with additional data) in the Address infotype.

Infotypes are identified by a four-digit key. The Address infotype, for example, has the key 0006.

The employment cycle in an organization shows the flow of human resources (HR) processes. The main activities in HR include:

•Recruitment
•Hiring
•Organizational assignment
•Training and development
•Appraisal
•Compensation and benefits enrollment
•Shift planning and time reporting
•Payroll
•Personnel cost planning and reporting

Every activity in this process is supported by SAP Human Resources.
Employee Self-Service enables your employees to create, change, and view their data via your company intranet. By allowing your employees access to their data, you streamline human resources processes and enable the administrative staff to concentrate on more strategic tasks.

When a position becomes vacant within a company, a successor must be found, either internally or externally. The following actions are initiated in the recruitment process:

•Open positions are published in advertisements. An advertisement is an announcement of one or more vacancies with the aim of recruiting suitable candidates.
•Applications are reviewed as they are received. You can create a list of the most suitable applicants by comparing the requirements of the job with the applicants’ qualifications.
•The applicants go through a selection process that ends when an applicant is hired.
•Applicant documents are archived.

•The new employee is assigned to a position that requires specific skills.

•By comparing the requirements of the position to the employee’s actual qualifications on a regular basis, you can determine any training that is required.

•If there is a qualification deficit, SAP Training & Event Management can propose a course that corrects this deficit.

•Example: Knowledge of SAP may be necessary for the position of Customer Service Representative. If the employee does not have these skills, she may need to attend an SAP course to acquire this knowledge.

•If a course is offered, you can book the person into the course directly.

•Alternatively, you can make a pre-booking to indicate that the person would like to attend one of these courses.

SAP Compensation Management controls and manages your organization’s compensation policies. This component provides a centralized view of the compensation policies as well as a control mechanism to monitor these policies. You can also use it to perform compensation planning and budgeting as well as decentralized compensation administration.

SAP Compensation Management is made up of the following different areas:

•You can carry out jobpricing. You can store results from external job evaluation systems and market surveys. You use these results to generate salary structures that you can then assign to the jobs and positions in your organization. You can also use these results to determine the internal value of your jobs and positions and to see whether your salaries are competitive.

•You can create budgets both centrally and decentrally. A budget unit defines funds used for compensation and is used to finance an organizational unit. You can carry out a rollup of your budgets according to organizational units by creating a hierarchical relationship among the budgeting units.

•You can maintain the individual compensation adjustments for all employees in an organizational unit or directly for each employee. The adjustment is the actual change in compensation (for example, salary increase). Adjustments go through an approval process. Once you have maintained the compensation adjustments for the employees for whom you are responsible, you must submit these proposals so that they can be approved and activated. When the adjustments are activated, the system updates the employees’ master data records.

After an employee is hired, the benefits enrollment process begins.

Benefits infotypes are created by the system during the enrollment process for:

•Health Plans
•Insurance Plans
•Capital Formation Plans
•Flexible Spending Accounts
•Credit Plans

You can enroll employees according to selection criteria and the system will calculate the costs automatically for each individual employee. For example, employees can choose among various options for their insurance benefits for dependent coverage, for example, and then the appropriate cost formular is applied according to the coverage selected.

•In SAP Time Management, a public holiday calendar and work schedules are created.
•Employees are assigned to a work schedule that specifies the times at which they are to work. There can be exceptions to the work schedule due to leave or illness, for example.
•The system tracks either all actual working time or only the exceptions.
•The working time is evaluated for each individual employee, and he or she is paid accordingly.
•A time statement can be printed for each employee at the end of the month.
•The Cross-Application Time Sheet (CATS) can be used to record individual employees’ actual working time in a time sheet.

•An employee’s pay data is evaluated in a payroll run. Employees then receive their payslips.
•After the payroll run is completed and checked, subsequent activities such as direct deposit, tax filings, and posting results to the general ledger.

•SAP Career and Succession Planning has two main objectives: to promote the development of employees in an organization, and to ensure that sufficient staff exists at all times.

•In Career Planning, potential career goals can be identified for employees, and professional careers can be planned.

•Succession Planning is used to search for suitable successors for open positions.

•Positions needing to be filled (either now, or at some time in the future) play a fundamental role in succession planning scenarios. Potential successors are selected for these positions, and internal transfers can commence.

Human Resources master data, per diems, maximum reimbursement rates, and trip data inputs all flow into travel expense accounting.

The results of accounting can be transferred to Financial Accounting , to Human Resource Payroll Accounting, or to third-party systems. Electronic payment is also possible.

Valuation tables for per diem maximum rates:

•Exact dating
•Tax-free
•Company internal.

Required trip data may include (but is not limited to) the following:

•Trip times
•Documents
•Account assignment
•Destinations
•Advances
•Deductions for entertainment.

•Employee Self-Service (ESS) is set up on a company’s intranet or on the Internet. These functions allow employees to update their personal data, review their benefits, register for training classes, or request leave.

Variants and versions are used to assist in saving reporting data and parameters.

•A variant is a saved profile of selection criteria.
•A version is a static view of a report as of the last time you saved it.

All reporting options allow you to export data to Microsoft Excel or a PC file.

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