Creating an Organizational Structure

Before we go ahead and create an Organizational Structure, lets have a quick look at the
terminology used in the organization structure.
Structures in SAP HCM
1. Organizational structure.
2. nter!rise structure.
". #ersonnel structure
#ay scale structure
$!!licant structure
%age ty!e structure
1. Organizational structure& 't contains organizational o()ects *elements. +hese are called
(uilding elements.
Organizational objects / elements are:
Organizational objects Org. key
Organizational unit O
,o( -
#osition S
#erson #
-ost center .
+ask +
+ask grou! +s
'f we create any organizational o()ect, System will assign a eight digit numeric num(er, which is
called unique /um(er.
1. Organizational Unit& 0e!resents a functional unit in your enter!rise, 1uman 0esources
de!artment, for e2am!le. $ccording to how tasks are divided u! within an enter!rise, this could
(e a de!artment, grou! or !ro)ect team, !lant, for e2am!le. Organizational units differ from other
units in an enter!rise such as !ersonnel areas, com!any codes, (usiness areas etc. +hese are
used to de!ict structures 3administration or accounting, for e2am!le4 in the corres!onding
com!onents.
in!s o" organizational units
A#. Main Organizational unit / $oot organizational unit& %hatever the organization we
create for the first time is called 5ain organizational unit.
B4. Sub organizational unit& 6nder 5ain org. unit whatever we create is called su( org.units.
%. &ob& ,o(s, in contrast, are classifications of functions in an enter!rise 3administrator, for
e2am!le4, which are defined (y the assignment of characteristics. ,o(s serve as )o( descri!tions
that a!!ly to several !ositions with similar tasks or characteristics.
,o(s are used as tem!lates to create #ositions that means to say without a )o( we cant
create a !osition.
2am!le&
Manager
ngineer
-onsultant
7esigner
$dministrator
'. Position& 0e!resents a !ost that can (e occu!ied (y a !erson 3em!loyee4 in the staff
assignments of an organizational unit, !urchasing administrator, for e2am!le. #ositions differ from
)o(s. $ )o( is not concrete (ut rather the (asis for the creation of various !ositions with similar
tasks and characteristics. . #ositions are created (ased on )o(s8 it means to say without a )o( we
cant create a #osition.
&ob Position
5anager 10 manager

5arketing manager

9inance manager

#lant manager
ngineer #roduction engineer

Site engineer

Software engineer
-onsultant S$# 10 consultant

9'*-O consultant

S7 consultant
7esigner Software designer

%e( designer
1. Person& $n individual, who is listed as an em!loyee in Personnel Administration. $ !osition
can (e occu!ied !artially, hundred !ercentage.
2. +ask& 't is a collection of duties and res!onsi(ilities. +asks are assigned to )o(s and
!ositions.
:$ctivity which is !erformed within an organizational unit;
1. +ask grou!& 't is a grou! of tasks which can (e assigned either a )o( or a !osition.
( 1O% +O -6S+O5'< O0=$/'<$+'O/$> S+06-+60(
Organizational structure can (e created in three !rocedures.
1. Sim!le 5aintenance
2. 2!ert 5ode * 7etailed 5aintenance
". Organization and Staffing
-omment& 'f we create organizational Structure in any !rocedure, the same structure reflects in
other two !rocedures.
'f we create organizational structure in Sim!le maintenance and Organization and Staffing the
relationshi! (etween the o()ects are assigned (y the system. %here as in detailed 5aintenance
the user has to assign the relationshi! code.
+he relationshi! (etween two o()ects is e2!ressed in three digit numeric characters.
ach and every relation can (e e2!ressed in two ways.
1. +o! down which is indicated with B
2. Bottom u! which is indicated with $
9or e2am!le&
+$+$ grou! of (usiness???Bto! down.
+$+$ mo(iles (usiness?? ?$(ottom u!
'n the a(ove Organizational units i.e. B+$+$ grou! of (usiness shows its relationshi! towards
$ i.e. +$+$ mo(iles, in the same way $ i.e. +$+$ mo(iles shows its relationshi! towards B i.e.
+$+$ grou! of (usiness. +hat means to say +$+$ mo(iles re!orts to +$+$ grou! of (usiness *
+$+$ grou! of (usiness is the line su!ervisor of +$+$ mo(iles.
So we come to know that the lower level organizational o()ect is $
So we come to know that the higher?level organizational o()ect is B
+he relationshi! codes can (e seen through transaction code :OO@.; ta(le name is )**+,
+he relationshi! codes&
0elationshi!
code 0elationshi! (ottom u! 0elationshi! to! down
'ndicates with $ 'ndicates with B
A
BB1's a su(division of 's su(divided into
BB20e!orts 3line4 to 's line su!ervisor of
BB"Belongs to 'ncor!orates
BBC's su(ordinate to 3disc.4 's disc.su!ervisor of
BBD's su(ordinate to 's su!ervisor of
BBESu(stitutes for 's su(stituted (y
BBF7escri(es 's descri(ed (y
BBG1older 1older
BBHSuccessor Successor
B1BSu(stitute Su(stitute
B11-ost center assignment -ost center assignment
B125anages... 's managed (y...
B1"Staffing requirement Staffing requirement
B1C-ost distri(ution -ost distri(ution
B1D's identical to 's identical to
B1F's carried out (y -arries out
B1G#revious org. assignment #revious org. assignment
B1H#lanned org. change #lanned org. change
B2B's a s!ecialization of 's a generalization of
B21's equi!!ed with 's contained in
B220equires 's required (y
B2"0eserves 's reserved (y
B2C+akes !lace in 's location of
B2D's attended (y +akes !art in
B2E's held (y 's the instructor for
B2F1as a !re(ooking for 's !re(ooked for
B2G'm!arts 's im!arted (y
B2H#resu!!oses 's !resu!!osed (y
B"B's a s!ecialization of 's a generalization of
B"10equires 's required (y
B"29ulfils 's fulfilled (y
B""'s !lanned for -an attend
B"C%as attended (y $ttended events of ty!e
B"D's !revious )o( of 's su(sequent )o( of
B"E's organized (y Organizes
B"F7esignated as successor 7esignated as successor
B"G1as !otential for 's a !otential of
B"HSu!!lies 's su!!lied (y
BCB%as cancelled (y 1as cancelled
BC1's an equivalent )o( 's an equivalent )o(
BC2'nterests and !references 'nterests and !references
BC"7islikes 's dislike of
BCC-onsists Of 's !art of
BCD-reated %as created (y
BCEreceives %as created for
BCF-ontains 's an element of
BCG$!!lication (y $!!lication for
BCH's develo!ed (y 7evelo!s
BDB$ssesses 's assessed (y
BD1's a session of 's main event of
BD2$ttends session 's attended (y
BD"Still requires 's still required (y
BDC6ses 3for attendee4 's used (y 3attendee4
BDD6ses 3for (us. event4 's used (y 3(us. event4
BDE#erson has cost center #ersons on cost center
BDF1as attendee a!!rsl model 's atIee a!!rsl model for
BDG1as event a!!rsl model 's event a!!rsl model for
BDHm!loyee !ool m!loyee !ool
BEB-a!acity assignment #erson assignment
BE1quals quals
BE20equirement descri!tion 0equirement descri!tion
BE"0equires 7efines demand for
BEC0equirements definition 0equirements definition
BED#lanned assignment #lanned assignment
BEE0eserve !ool assignment 0eserve !ool assignment
BEF2clusive tem!.assignment 2clusive tem!.assignment
BEG/o shift !lanning /o shift !lanning
BEH's tem!orarily done (y %orks tem!orarily as
BFB0es!onsi(le for cost !lan 0es!onsi(le for cost !lan
BF1#arallel tem!.assignment #arallel tem!.assignment
BF2Shift !lanning (y Shift !lanner for
BFF#asses through 's !assed through (y
BGB$ssigned to e2!osure gr! 2!osure grou! contains
BG11igher duty holder 1igher duty holder
BG"'s .ey #osition of 'ncor!orates .ey #osition
BGG7otted >ine 0e!orts to 7otted >ine Su!ervises
BGH7otted >ine 0e!orts to 7otted >ine 'ncludes
BHB's res!onsi(ility of 's res!onsi(le for
1B1-ountry reassgmt to -ountry reassgmt from
1BG's assigned to 's assigned to
2BB0e!laces 's re!laced (y
2B1$ssigned role 0ole incor!orates
2B2/otification agent /otification agent
2BC#ossi(le roles #ossi(le roles
2BF's identical to 's identical to
2BG's identical to 's identical to
2BH's filled (y 1as em!loyment contract
21BSu(stitutes with !rofile Su(stitutes with !rofile
22BBelongs to has
221's o()ect reference of -ontains o()ects
222Belongs organizationally 'ncor!orates S$# o()ects
22"'s assigned 3valid.!er4 'ncor!orates3for valid.4
22C's o()ect ty!e of 's container instance of
22D's event of 1as event
22E's method of 1as method
22F+riggers 's triggered (y
22G+erminates 's terminated (y
2"B's !art of -ontains
2"1$ssignment e2ists $ssignment e2ists
2"21as element 's an element of
2CB2istence de!ends on 7efines
2DB's res!onsi(le for 's res!onsi(ility of
2E20e!orts to 's su!erior of
2E"Belongs 3not uniquely4 to 'ncor!orates 3not unique4
2ECBelongs 3uniquely4 to 'ncor!orates 3uniquely4
2GBBelongs to system 6ses function
2G1Belongs to function 1as com(ination
2G2's an element of 1as o()ect
2G"Sends message 0eceives message
2HB1as administrator 's adminstrator for
2H1#artner agreement #artner agreement
2H25aintains (rokers Brokers are maintained
2H"1as user for commissions 's user for commissions
2HH's su!!orted (y... Su!!orted
"BB's financed (y... 9inances...
"B1'ncreases 's increased (y
"1B's res!onsi(le for 's res!onsi(ility of
"11Su(stitutes for 's su(stituted (y
"12Belongs to 3reclassif.4 'ncor!orates 3re?valuatn4
"1"0eclassified from 0eclassified into
"1C's to (e financed (y 's earmarked for
"1D0es!onsi(le for 9inancing 0es!onsi(le for 9inancing
CBB's child of 's !arent of
CB1's assigned 's assigned
EB10e!resents 's 0e!resented By
EBD's an lement Of 'ncludes lement
EBE's attri(ute ref. for 0efers to attri(utes of
EBF's descri(ed (y 7escri!tive element of
E2B's assigned 's assigned
FBB's res!onsi(le for 's res!onsi(ility of
FB1's assigned 's assigned
F1B9ulfils 's fulfilled (y
F110equires 's required (y
F12'm!arts 's im!arted (y
FDB@acant !osition in 'ncor!orates vacant !os.
FD1's res!onsi(ility of 's res!onsi(le for
FD29ills %ill (e filled (y
FD"#u(lishes #u(lished (y
FDC#u(lishes in #u(lishes
FDD$!!lication (y $!!lication for
FDE1as a!!licant $!!lied for !osition in
HBB5anager to manager 5anager under manager
HB"Belongs to 3alternative4 'ncor!orates3alternative4
HE20e!orts to 3alternative4 's su!erior 3alternative4
HE"Belongs to 3!referred4 'ncor!orates 3!referred4
Sim-le maintenance:
1ow to create organizational structure in Sim!le maintenanceJ
#athS$# easy accesshuman resourcesOrganizational management2!ert
modeSim!le 5aintenance
+e2t +ransaction code
-reate ##O-KO>7

-hange

##O5KO>7
7is!lay ##OSKO>7
nter :##O-KO>7; in the command field :Or; =o through the !ath
#ress enter you will get a screen :-reate Organizational 6nit;

1ere in the a(ove screen enter Organizational unit a((r.
/ame of the root organizational unit and its validity !eriod.

$fter entering a((reviation and name of the unit, enter foundation day of the unit.
#ress enter or #ress 9G or clicks on create.
+hen you will get a screen, which contains unique num(er organizational key

'n the a(ove screen we can see the organizational unit, which we have created.
Lou can see :o; which s!ecifies org. key 3org. unit4 and 6nique /o i.e. DBB1F"1E
+hrough this num(er we can identify this org. unit.
+his organizational unit is known as 5ain * 0oot organizational unit.
HO. )O C$/A)/ SU0 O$1A234A)3O2A5 U23):
%e can create su( organizational units.
Select :SSS1; and #ress 9F
Lou will get the following screen in which enter a((reviation and name of org. units.

1ere too, enter a((reviation of the su( organizational units and name.
#ress enter

>ike the a(ove !rocedure we can create many organizational 6nits.
Ho6 can 6e see t7is organizational structure in a structural -roce!ure8
Select the root organizational unit i.e. SSS1
-lick on ? or

$gain click on to get only a((reviation codes

1O% +O -0$+ ,OBS&
/ow we are at a screen known as :organizational structure* change
-hange the screen, so click on :Staff $ssignments; or 9G
/ow we are into a screen know as :Staff $ssignments* change;

/ow you can see a screen, known as :Staff $ssignments * -hange, where we can create )o(s.
So #ress 9H

'n the a(ove screen we have defined )o(s a((reviations and te2t,
+hen !ress enter.
1ere we cant see these )o(s in organizational structure, (ut we can get a message on status (ar
like
:
>ike this we can create many )o(s as !er our client requirement
HO. )O C$/A)/ POS3)3O2S
Be sure that you should (e at screen :Staff assignments * change&
Select the Organizational unit in which you want to create !osition
-lick on ; ; or 9G
/ow ' have selected cor!orate office

1ere, enter )o( i.e. mgr1.

#ress enter so that this )o( will transfer under !osition field.

1ere you can create a !osition

1ere we can create HHH !ositions at a time, (ut here ' have created only one !osition.
Save.
-lick on !lus mark so that you can see the !osition

>ike this we can create many !ositions as !er our client requirement
9or more information you can see the !ositions list
HO. )O C$/A)/ A CH3/9
Be on the same screen :Staff $ssignments* -hange
Select the !osition to whom you are making as a chief i.e. ' am selecting -O DBB1F""D
-lick on dit chief !osition-reate.


#ress enter
/ow you can see the chief !osition
-hief !osition icon is

$/PO$)321 S)$UC)U$/
't shows who is (oss and who is su(ordinate and who re!orts to whom.
Select the organizational units in which you are creating the re!orting structure.
9or e2am!le ' am selecting cor!orate officeclick on :=o to :and click on re!orting structure.

1ere we will get screen in which we are going to create a re!orting structure.

/ow select any !osition to whom you are making (oss. ' am selecting #osition /o
DBB1F"2F click on elevate

Select the !osition who is immediate su(ordinate to him. i.e. ' am selecting !osition no DBB1F"2G
#ress enter.

>ike this you can create re!orting structure.
9or more information you can see the total structure

HO. )O C$/A)/ A )AS
-lick on =o to click on +ask 5aintenance
Select customer task under task ty!e and click on create or 9D

1ere write a((reviation and name of the task and !ress enter and save so that system will
assign a unique num(er

>ike this we can create many tasks as !er our requirement
HO. )O ASS312 A )AS )O A POS3)3O2
Select the !osition to which we are assigning a task
9or e2am!le select !osition no DBB1F"2F and click on :task !rofile; or 9E

1ere you can see !osition, )o( and Organizational 6nit.
Select the !osition and click on $ssign task or 9Genter the a((reviation of task which we have
created
#ress enter
$gain #ress enter

/ow here we can see the task, which we assigned to a !osition.
ACCOU2) ASS312M/2)
3n account $ssignment we have to assign com!any code, controlling area, !ersonnel area,
!ersonnel su( area and (usiness area to a !osition.
Select the !osition to which we are maintaining the account assignment feature, click on =o
to click on $ccount $ssignmentselect the !osition click on :account assignment feature or
Shift 9F

Ho6 to assign a cost center to a -osition
Select the !osition and #ress 9F

/ow we can see cost center how it is assigned to a !osition
%hich will reflect in Organizational $ssignment 3BBB14 infoty!e

Ho6 to maintain in"oty-es
Organizational infoty!es are&
/ote& Business area, cost centre and controlling area will (e created (y the 9i*co consultants.
1. %here do we create these Organizational o()ectsJ
+ransaction code :OOO+;
1. %here do we maintain num(er ranges to o()ectsJ
+ransaction code :OO/0; +a(le :tFF'v
%here do we see info ty!es in '5=J
+ransaction code :OO'+; ta(le name tFFGt
'+ 'nfo ty!e /ame


1:::object
1::1$elations7i-s
1::%;escri-tion
1BB"7e!artment*Staff
1BBC-haracter
1BBD#lanned -om!ensation
1BBE0estrictions
1BBF@acancy
1BBG$cct. $ssignment 9eatures
1BBH1ealth 2aminations
1B1B$uthorities*0esources
1B11%ork Schedule
1B12work area
1B1"m!loyee =rou!*Su(grou!
1B1CO(solete
1B1D-ost #lanning
1B1EStandard #rofiles
1B1F#7 #rofiles
1B1G-ost 7istri(ution
1B1HMuota !lanning
1B21#rices
1B2"$vaila(ility 'ndicators
1B2C-a!acity
1B2D7e!rec. 5eter*@alidity
1B2EBusiness vent 'nfo
1B2FSite?7e!endent 'nfo
1B2G$ddress
1B2HBusiness vent +y!e 'nfo
1B"B#rocedure
1B"10oom 0eservations 'nfo
1B"25ail $ddress
1B""Scale
1B"C/ame 9ormat
1B"DSchedule
1B"E-osts
1B"FBilling*$llocation 'nfo
1B"G2ternal .ey
1B"HShift =rou!
1BCB/'-1+ 510 @0%/7/
1BC1Business vent Blocks
1BC2Schedule 5odel
1BC"$!!raisal 5odel 'nfo
1BCC0esults S!ecification
1BCD@aluation
1BCE0equirements $ttri(utes
1BCF#rocessing 5odules
1BCG#roficiency 7escri!tion
1BCH0equirements $ttri(utes
1BDB,o( valuation 0esults
1BD1Survey 0esults
1BEBBusiness vent 7emand
1BE1%e( >ink
1BE2.nowledge >ink
1BE"'nfo (usiness event gr!
1BFB$!!lication area
12B1%9 O()ect 5ethod
12BD%9 %orkflow 7efinition
12BE%9 %ork 'tem +e2t
12BF-ustomer +ask,re!laces +S
12BGS$# Organizational O()ect
12BH-ost 7ata
121B%9 -ontainer 7efinition
1211%9 -ontainer +e2ts
1212%9 vent Binding
121"%9 0ole Binding
121C%9 Other Binding
121E9unction $rea $ssigned
121F-lassification*>ock 'nd.
121G%9 7ef. 0es!onsi(ility
122B$ctivity #rofiles
12212cluded $ctivities
1222=eneral $ttri(ute 5aint.
12CB2istence 7e!endency
12DB#rof.=en.& $uthorizations
12D1#rof.=en.& S!ecifications
12D2#rofile =en.& Org. >evels
12D"#rofile =en.& @ariants
12DC6ser @aria(les*$ctiv.=r!s
12EB-'- #rofile
12FB-O =rou! assignment
1CB"2!osure& >+$
1CBC2!osure& +ask
1DBBBS element management
1DB1#ay scale valuation
1DB2$llowance valuation
1DB"Service ty!e*category
1DBCBudget 6!dates
1DBDBudgeting 0ule
1DBE0eclassification rule
1DBF+eaching hours
1D1E9unding Status
1D1F2cel -ommunication
1D1G$ssignment 95 designation
1D1H'ntegration 95
1D2BOriginal (udget
1EBBOrganizer '7 394
1EB1Statutory S!ecifications
1E1B6S ,o( $ttri(utes
1E12%- State and -ode
1E1"%- State, -ode, $ttri(ute
1E2B,o( $ttri(utes 374
1E"B/M9 6nit standard
1E"1/M9 Mualifications
1E"2/M9 Outcomes
1E""quity $ttri(utes 3<$4
1EDB=rade 3904
1ED1=rades 3B4
1ED2Occu!ational -ategories


1ow to write a descri!tion to an o()ect i.e. we have to maintain the infoty!es&
1. Select the o()ect to which you are going to write the descri!tion, Shift N9C
1ere ' am selecting
Shift N9C
Select descri!tion o!tion.
$nd click on
%rite the descri!tion like