Creating an Organizational Structure

By Madhusudhan M

Before we go ahead and create an Organizational Structure, let’s have a quick look at the terminology used in the organization structure. 

Structures in SAP HCM

  1. Organizational structure.

  2. Enterprise structure.

  3. Personnel structure

  • Pay scale structure

  • Applicant structure

  • Wage type structure

1.      Organizational structure: It contains organizational objects /elements. These are called building elements.

Organizational objects / elements are: 

Organizational objects

Org. key

Organizational unit

O

Job

C

Position

S

Person

P

Cost center

K

Task

T

Task group

Ts

If we create any organizational object, System will assign a eight digit numeric number, which is called unique Number.  

1. Organizational Unit:  Represents a functional unit in your enterprise, Human Resources department, for example. According to how tasks are divided up within an enterprise, this could be a department, group or project team, plant, for example. Organizational units differ from other units in an enterprise such as personnel areas, company codes, business areas etc. These are used to depict structures (administration or accounting, for example) in the corresponding components. 

                    Kinds of organizational units 

A). Main Organizational unit / Root organizational unit:  Whatever the organization we create for the first time is called Main organizational unit.

B). Sub organizational unit: Under Main org. unit whatever we create is called sub org.units.

2. Job: 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.

Jobs are used as templates to create Positions that means to say without a job we can’t create a position.

Example: 

  • Manager

  • Engineer

  • Consultant

  • Designer

  • Administrator

3. Position: Represents a post that can be occupied by a person (employee) in the staff assignments of an organizational unit, purchasing administrator, for example. Positions differ from jobs. A job is not concrete but rather the basis for the creation of various positions with similar tasks and characteristics. . Positions are created based on jobs; it means to say without a job we can’t create a Position.

Job

Position

Manager

HR manager

 

Marketing manager

 

Finance manager

 

Plant manager

Engineer

Production engineer

 

Site engineer

 

Software engineer

Consultant

SAP HR consultant

 

FI/CO consultant

 

SD consultant

Designer

Software designer

 

Web designer

1.       Person: An individual, who is listed as an employee in Personnel Administration.   A position can be occupied partially, hundred percentage. 

2.       Task: It is a collection of duties and responsibilities. Tasks are assigned to jobs and positions.

      “Activity which is performed within an organizational unit” 

  1. Task group: It is a group of tasks which can be assigned either a job or a position.

* HOW TO CUSTOMIZE ORGANIZATIONAL STRUCTURE*

Organizational structure can be created in three procedures. 

  1. Simple Maintenance
  2. Expert Mode  / Detailed Maintenance
  3. Organization and Staffing

Comment: If we create organizational Structure in any procedure, the same structure reflects in other two procedures. 

If we create organizational structure in Simple maintenance and Organization and Staffing the relationship between the objects are assigned by the system.  Where as in detailed Maintenance the user has to assign the relationship code. 

The relationship between two objects is expressed in three digit numeric characters.

Each and every relation can be expressed in two ways. 

1. Top down àwhich is indicated with B

2. Bottom up àwhich is indicated with A  

For example: 

       TATA group of business---Bàtop down.

       TATA mobiles business-- -Aàbottom up 

In the above Organizational units i.e. BàTATA group of business shows its relationship towards A i.e. TATA mobiles, in the same way A i.e. TATA mobiles shows its relationship towards  B i.e. TATA group of business. That means to say TATA mobiles reports to TATA group of business / TATA group of business is the line supervisor of TATA mobiles. 

So we come to know that the lower level organizational object is A

So we come to know that the higher-level organizational object is B 

The relationship codes can be seen through transaction code   “OOVK” table name is T778V

The relationship codes:

Relationship code

Relationship bottom up

Relationship top down

 

Indicates with A

 

Indicates with B

 

 

*

 

 

 

 

 

001

Is a subdivision of

Is subdivided into

 

002

Reports (line) to

Is line supervisor of

 

003

Belongs to

Incorporates

 

004

Is subordinate to (disc.)

Is disc.supervisor of

 

005

Is subordinate to

Is supervisor of

 

006

Substitutes for

Is substituted by

 

007

Describes

 

Is described by

 

008

Holder

 

Holder

 

 

009

Successor

Successor

 

010

Substitute

 

Substitute

 

 

011

Cost center assignment

Cost center assignment

012

Manages...

Is managed by...

 

013

Staffing requirement

Staffing requirement

 

014

Cost distribution

Cost distribution

 

015

Is identical to

Is identical to

 

017

Is carried out by

Carries out

 

018

Previous org. assignment

Previous org. assignment

019

Planned org. change

Planned org. change

 

020

Is a specialization of

Is a generalization of

 

021

Is equipped with

Is contained in

 

022

Requires

 

Is required by

 

023

Reserves

 

Is reserved by

 

024

Takes place in

Is location of

 

025

Is attended by

Takes part in

 

026

Is held by

 

Is the instructor for

 

027

Has a prebooking for

Is prebooked for

 

028

Imparts

 

Is imparted by

 

029

Presupposes

Is presupposed by

 

030

Is a specialization of

Is a generalization of

 

031

Requires

 

Is required by

 

032

Fulfils

 

Is fulfilled by

 

033

Is planned for

Can attend

 

034

Was attended by

Attended events of type

035

Is previous job of

Is subsequent job of

 

036

Is organized by

Organizes

 

 

037

Designated as successor

Designated as successor

038

Has potential for

Is a potential of

 

039

Supplies

 

Is supplied by

 

040

Was cancelled by

Has cancelled

 

041

Is an equivalent job

Is an equivalent job

 

042

Interests and preferences

Interests and preferences

043

Dislikes

 

Is dislike of

 

044

Consists Of

Is part of

 

 

045

Created

 

Was created by

 

046

receives

 

Was created for

 

047

Contains

 

Is an element of

 

048

Application by

Application for

 

049

Is developed by

Develops

 

 

050

Assesses

 

Is assessed by

 

051

Is a session of

Is main event of

 

052

Attends session

Is attended by

 

053

Still requires

Is still required by

 

054

Uses (for attendee)

Is used by (attendee)

 

055

Uses (for bus. event)

Is used by (bus. event)

056

Person has cost center

Persons on cost center

057

Has attendee apprsl model

Is at'ee apprsl model for

058

Has event apprsl model

Is event apprsl model for

059

Employee pool

Employee pool

 

060

Capacity assignment

Person assignment

 

061

Equals

 

Equals

 

 

062

Requirement description

Requirement description

063

Requires

 

Defines demand for

 

064

Requirements definition

Requirements definition

065

Planned assignment

Planned assignment

 

066

Reserve pool assignment

Reserve pool assignment

067

Exclusive temp.assignment

Exclusive temp.assignment

068

No shift planning

No shift planning

 

069

Is temporarily done by

Works temporarily as

070

Responsible for cost plan

Responsible for cost plan

071

Parallel temp.assignment

Parallel temp.assignment

072

Shift planning by

Shift planner for

 

077

Passes through

Is passed through by

 

080

Assigned to exposure grp

Exposure group contains

081

Higher duty holder

Higher duty holder

 

083

Is Key Position of

Incorporates Key Position

088

Dotted Line Reports to

Dotted Line Supervises

089

Dotted Line Reports to

Dotted Line Includes

 

090

Is responsibility of

Is responsible for

 

101

Country reassgmt to

Country reassgmt from

108

Is assigned to

Is assigned to

 

200

Replaces

 

Is replaced by

 

201

Assigned role

Role incorporates

 

202

Notification agent

Notification agent

 

204

Possible roles

Possible roles

 

207

Is identical to

Is identical to

 

208

Is identical to

Is identical to

 

209

Is filled by

 

Has employment contract

210

Substitutes with profile

Substitutes with profile

220

Belongs to

has

 

 

221

Is object reference of

Contains objects

 

222

Belongs organizationally

Incorporates SAP objects

223

Is assigned (valid.per)

Incorporates(for valid.)

224

Is object type of

Is container instance of

225

Is event of

 

Has event

 

 

226

Is method of

Has method

 

227

Triggers

 

Is triggered by

 

228

Terminates

Is terminated by

 

230

Is part of

 

Contains

 

 

231

Assignment exists

Assignment exists

 

232

Has element

Is an element of

 

240

Existence depends on

Defines

 

 

250

Is responsible for

Is responsibility of

 

262

Reports to

Is superior of

 

263

Belongs (not uniquely) to

Incorporates (not unique)

264

Belongs (uniquely) to

Incorporates (uniquely)

280

Belongs to system

Uses function

 

281

Belongs to function

Has combination

 

282

Is an element of

Has object

 

283

Sends message

Receives message

 

290

Has administrator

Is adminstrator for

 

291

Partner agreement

Partner agreement

 

292

Maintains brokers

Brokers are maintained

293

Has user for commissions

Is user for commissions

299

Is supported by...

Supported

 

 

300

Is financed by...

Finances...

 

301

Increases

 

Is increased by

 

310

Is responsible for

Is responsibility of

 

311

Substitutes for

Is substituted by

 

312

Belongs to (reclassif.)

Incorporates (re-valuatn)

313

Reclassified from

Reclassified into

 

314

Is to be financed by

Is earmarked for

 

315

Responsible for Financing

Responsible for Financing

400

Is child of

 

Is parent of

 

401

Is assigned

Is assigned

 

601

Represents

Is Represented By

 

605

Is an Element Of

Includes Element

 

606

Is attribute ref. for

Refers to attributes of

607

Is described by

Descriptive element of

620

Is assigned

Is assigned

 

700

Is responsible for

Is responsibility of

 

701

Is assigned

Is assigned

 

710

Fulfils

 

Is fulfilled by

 

711

Requires

 

Is required by

 

712

Imparts

 

Is imparted by

 

750

Vacant position in

Incorporates vacant pos.

751

Is responsibility of

Is responsible for

 

752

Fills

 

Will be filled by

 

753

Publishes

 

Published by

 

754

Publishes in

Publishes

 

 

755

Application by

Application for

 

756

Has applicant

Applied for position in

900

Manager to manager

Manager under manager

903

Belongs to (alternative)

Incorporates(alternative)

962

Reports to (alternative)

Is superior (alternative)

963

Belongs to (preferred)

Incorporates (preferred)

 Simple maintenance: 

How to create organizational structure in Simple maintenance? 

PathàSAP easy accessàhuman resourcesàOrganizational managementàExpert mode àSimple Maintenance                                                                                

Text

Transaction code

Create

 

PPOC_OLD

Change

 

PPOM_OLD

Display

PPOS_OLD

 Enter “PPOC_OLD” in the command field “Or” Go through the path 

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