HCM Presentation [1]

8/8/2019 HCM Presentation [1]

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Basic Sub-modules of HCM

• Personnel Administration

• Organizational Management

• Time Management

• Training and Event Management

• Travel management



Basic structure for SAP-HRBasic structure for SAP-HR

Enterprise Structure

- Company code, personnel area and personnel subarea

Organization Structure

- Organizational units, jobs and positions

Personnel Structure

- Employee group, employee subgroup, payroll accounting area

Which company does the

employee work for? Whom does the employee

report to?

Which department does

the employee work in?

What are the tasks to be

performed by the

employee?Employee



Personnel AdministrationPersonnel Administration



Elements of Personnel AdministrationElements of Personnel Administration

• Maintain Employee Data – Able to view/modify HR Master Data

viz. Master, Payroll, Time data

• HR Processes – Hire Employees

– Promotion and Increment

– Termination

– Transfer etc…



Elements of Personnel AdministrationElements of Personnel Administration

(Contd..)(Contd..)

• Recruitment – Applicant Master Data, Selection Procedure and status

– Vacancy Assignment

– Advertisement

• Personnel Development – Planning for Career, Succession

and Individual growth

– Appraisals



Personal

Data OrganizationalAssignment

Family

Details

Education

Skills

SalaryDetails

PreviousEmployment

Contracts

LeaveEntitlement

WorkingHours

Employee DataEmployee Data



Master Data: OverviewMaster Data: Overview

Employee

Master Data Records

Organizational

Assignment

Address

Bank Details

Family

Work Schedule

PayrollPayroll

BenefitsBenefits

TimeTime

OM



Enterprise, Personnel and OrganizationalEnterprise, Personnel and Organizational

StructuresStructures

Enterprise

Structure

Personnel

Structure

Organizational

Structure



Infotypes- Way to insert Master DataInfotypes- Way to insert Master Data

Employee

Family (IT 0021)

Bank Details (IT

Address (IT 0006)

Actions (IT 0000)

OrganizationalAssignment (IT 00



Major FeaturesMajor Features

• Systematic employee data entry and recall

– Well featured info-types for separate data entry

– Effective dates for all data in the system

– Automatic validity check on all data

• Audit trials for all changes – Source (who), date, time and “before” and “after” data

• System generated employee numbers

– Separate range for different group employees

• Dynamic event change monitoring

– System prompts user to change update related data




• “Fast Entry” feature

– Screen for multiple employees

– Multiple screen for one employee

• Date driven reminders

• Search feature for selecting employees – employee no., department, supervisor etc

• Authorization restriction

– Information on “need to know basis”• Standard Reporting

• Ad hoc reporting



Organizational ManagementOrganizational Management



Overview of Plan VersionOverview of Plan Version

OrganizationalUnit

Position

Person

Tasks

R e p o r t i n g

R e

l a t i o

n

Departments/ ProjectTeams/ SBU’s

Holder of Position

Departmental Heads

For Position and

OU

Position Position Position

R e p o r t i n g

R e

l a t i o

n

R e p o r t i n g

R e

l a t i o

n

Vacant

Jobs



Creating an Organizational PlanCreating an Organizational Plan

1. Create RootOrganizational

Unit

7. Assign

Holders

4. Create

Positions

3. Create

Jobs

2. Create

Additional

Org. Units

5. AssignTasks

6. Assign

Cost centers



Why use Organizational Management?Why use Organizational Management?

• Using Organizational Management, the user may get a picture of the

organization at any point in time: past, present or future. With thisinformation, the user may be proactive in planning for future human

resource needs.

Present Future




• Easy to create, change and display current Plan Version

• Current plan version can be copied for future and past plan

versions for

– Making imaginary business scenarios

– To research compensation in various circumstances

• Integrated functionalities

– Personnel Development

– Recruitment

– Compensation Management




• Vacant Positions

– Stimulate to recruitment

• Structured representation of

– Enterprise structure

– Reporting structure – Vacancies etc.



Organization Structure- PositioningOrganization Structure- Positioning



Time ManagementTime Management



ObjectivesObjectives

• Time Recording

• Time Evaluation

• Shift Planning

• Cross-Application Time Sheet



Time Management OverviewTime Management Overview

Employee is at work

Employee is Sick

Employee Working Overtime

Time RecordingTime RecordingInfotypes

# of Hours Worked

# of Sick Hours# of Overtime Hours

Time EvaluationTime Evaluation

Rs. for # of hours worked

Rs. for # of Sick Hours

Rs. for Overtime

FI/CO

PayrollPayrollPayrollPayroll

Ti R di M th d f Ti D tTime Recording : Methods of Time Data



Time Recording : Methods of Time DataTime Recording : Methods of Time Data

CaptureCapture

• Manual time sheets

– Employee physically record startand end time

• Using clock punch cards

– Employee use machines to punch a

card• Electronically via magnetic card

– Employee swipes a card at a time

terminal

• Employer assumes employee

works contracted hours

– Employee only informs employer of

changes



Work SchedulesWork Schedules

Personnel Subarea Employee SubgroupInfotype

0001

Infotype0007

FI/CO

Payroll

Time Recording (Infotypes)

Monthly work schedule How are employees schedule to

work on the day

When can they take breaks? Is the day a public Holiday?



Other featuresOther features

• Work Schedule

– Fixed or Flexible work schedule

– Paid / unpaid breaks

– Predefined holidays for separate personnel area (PA)

– Substitute (Badali employee)

• Define and assign Quotas to PA

– Absent quota (Leave Management)

– Attendance quota

–Overtime quota

• Fine integration with Payroll



Payroll AdministrationPayroll Administration



Payroll ProcessPayroll Process

Gross Pay

Net Pay

Deductions

Rs.

Company

ContributionsAdd C2C=

Less

=

• Basic

• Allowances• Reimbursements• Bonus, Incentives • Emp. Contributions

• Loans Repayment• Taxes• Third Party Deductions• Other deductions

• PF Contribution• Super Annuation• Provision for Gratuity• etc.



Salary componentsSalary components

Bonuses

Overtime

Professional

membership

Allowances

HRA

Basic Pay

Recurring

Payments &

Deductions

Additional

Payments

LTA



Flexible Wage Types (Salary Component)Flexible Wage Types (Salary Component)

• Wage types with fixed amount (direct valuation)

– e.g. Basic pay

• Wage type depends on other wage types (indirect valuation)

– e.g. HRA (30% of Basic)

• Can assign upper and lower limits

– e.g. Medical reimbursement maximum Rs. 15,000/annum

• Tax conscious

• Wage types for reimbursement and claims

– Special reports for the current status

• For specific personnel group, personnel subgroup group,

personnel area, pay scale groups and levels



Basic pay (IT-0008)Basic pay (IT-0008)



Payroll Process-flowPayroll Process-flow

Master Data Time Management

PrerequisiteConfiguration for Payroll

PayrollRun

Gross - Deductions = Net PayPayroll OrganizationBasic PayOther Payments & Deductions

Final Steps

•Direct Deposit/Checks

•FI/CO Transfer

•*Third Party Remittanc

•*Tax Reporting



Payroll RunPayroll Run

Master data entered for current pay period

Fix rejects

and other updates

Remuneration &

Subsequent Activities

Start Payroll

Exit Payroll

Release Payroll

Corrections

Any

rejects

? Results

OK ?

Yes No

No Yes

Check Results



Balance expenses with GL entriesBalance expenses with GL entries



Bank Details (IT 0009)Bank Details (IT 0009)



Payroll AccountingPayroll Accounting

• Need based Payroll system

• Specific Payroll Period

• Separate Payroll period for Separate personnel

group, personnel area

• Flexible for wage type calculations

F t



FeaturesFeatures

• Country Specific Payroll Roll Out

– Separate legal and tax provisions

• Realization and reports on Gross Payroll

• Realization and reports on Net Payroll

• Realization and reports on Deductions – Legal deductions

– Loan and other premiums

– Recovery of advance payment

S SS l Sli



Salary SlipSalary Slip

L l P i iL l P i i



Legal ProvisionsLegal Provisions

• Applicability of the labour laws

– Monthly eligibility check

• Deductions

– Income Tax under section 80, 80c

– Provident Fund – ESI (if applicable)

• Reports

– PF 3A, 6A

– Pension (Form 6, Form 7)

– Income tax (Form 16, Form 24)

Oth F tOth F t



Other FeaturesOther Features

• Standard Reporting

• Ad hoc reporting

• Integration with Time Management

– Overtime

– Leaves

– Leave without pay

– Shift allowances

– Paid holidays



Training ManagementTraining Management



• Standard Buz Events

– Schedule.

– Organiser - Internal/ External.

– Location/ Building.

– Book Resources.

– Capacity.

Business EventBusiness Event

• Prerequisites

– Have attended xyz Buz event.

– Should have abc skills.

• Procedure

– Reaction to booking/ prebooking etc.

– Transfer skills.



• Employees/ Applicants/ Ext Persons/ Company/ Department.

AttendeesAttendees

• Trainee/ Attendee Administration.– Book/ Prebook/ Replace/ Rebook/ Cancel.

– Bulk Booking.

– Correspondence (e-mail/ letters).

• Attendance Menu.

• Reports– Int/ Ext Attendee List.

– Attendees Training History.– Attendee Appraisal.

– Attendance Statistics.

– Cancellation List per attendee/ Buz event.

– Attendee bookings/ prebooking/ rebooking.



Travel ManagementTravel Management

W kflWorkflo



WorkflowWorkflow

• Travel Planning

– Entering a travel request• By the employee or his boss

• Travel Expenses

– Entering the Trip Facts

– Checking Trip Facts

• Approving a Trip

– By the concern authorities

– With necessary modification, if necessary

• Displaying the Approval notification for the employee

• Settling a Trip (posting to account)

• Standard and Ad hoc reports



T l tTravel request



Travel requestTravel request

Travel planTravel plan



Travel planTravel plan

Cost incurred & ApprovalCost incurred & Approval



Cost incurred & ApprovalCost incurred & Approval

Cost in standard formatCost in standard format



Cost in standard formatCost in standard format

Transfer to accountTransfer to account



Transfer to accountTransfer to account

ReportsReports



ReportsReports

ReportsReports



ReportsReports



Personnel Administration

Organizational Management

Training and Event

Time Management

Travel Management

HCM Presentation [1]

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