User Manual : Organization Management

Organizational Management is based on the concept that each element in an

organization represents a stand-alone object with individual characteristics.
These objects are created and maintained separately, then linked together
through relationships to form a network which has the flexibility to handle human
resource forecasting, and reporting.

There are five basic building blocks in the Organizational Management

modules. The table below defines the object types and object type keys used by
the system.

Object Type Object Type Key

Organizational Units O
Positions S
Jobs C
Persons P

Organizational Units (O)

Organizational Units describe the different business areas within an
Organization. Organizational units must exist in the organizational structure and
be linked to one another within the SAP system to allow the creation of a
hierarchical structure of the organization and a network or relationship between
the units.

Positions (S)
Positions are specific instances of jobs. Positions are tied to organizational
units and are held by individuals within the University. Multiple positions may
perform similar job tasks. Each position is typically held by one employee;
however, a position may be filled by more than one employee. Examples of
positions are Associate Professor-Agronomy, Business Manager-Engineering,
and Secretary IV-Management. Positions will inherit the attributes related to the
job that describes them, and may also have more specialized attributes
(relationships) than the job level.

Jobs (C)
Jobs are general classifications or groupings for sets of tasks or functions
an employee is required to perform. Across the Organization there are several
hundred different jobs. Examples of jobs include General Manager, Deputy
General Manager, Sr. Manager etc.

Persons (P)
 Persons are objects that hold positions within an organizational structure.
In other words, persons are the employees in each organizational units. Persons
are linked to the organizational structures via their assignment to a position.
Information for persons is maintained in the Personnel Administration (PA)
modules of the system.

The Role of Relationships in Organizational Management

Relationships can be created between the organizational management objects.
Several linked objects will form a structure.

There are two kinds of relationships.

• Bottom-Up relationships
• Top-Down relationships

Bottom-Up Relationships

In SAP, Bottom-Up relationships are denoted as ‘A’.

The figure shown below is a portion of the typical organization structure.

When we consider the Bottom-Up relationships we are referring to the Bottom
positioned objects (ie Child Objects). For example when we are creating
relationships from a Sub Unit to the Main Unit or from a Position to an Org Unit
etc. Considering the figure, if we are trying to create a relationship from HEU-Unit
I to BG IV – Manufacturing then it is a Bottom-Up relationship.

Top-Down Relationships

In SAP, Top-Down relationships are denoted as ‘B’.

When we consider the Top-Down relationships we are referring to the Top

positioned objects (Parent objects). For example when creating relationships
from a Main Unit to Sub Unit or from Org Unit to Position etc. Considering the
above figure, if we are trying to create relationship from BG IV – Manufacturing to
HEU-Unit I, then it’s a Top-Down relationship.

Relationship Keys
 The relationships used between standard SAP object types are predefined
and should not be changed. Each relationship in SAP will have a three digit key
in combination with either an A or B.

Examples of relationship keys follow:

Allowed Relationship Relationship Key Relationship

Relationship Direction Direction
O to O A (Child) 002 Reports to
(Org to Org)
O to O B (Parent) 002 Is Line Supervisor
(Org to Org) of

S to O A (Child) 003 Belongs to

(Position to Org)
O to S B (Parent) 003 Incorporates
(Org to Position)
C to S A (Child) 007 Describes
(Job to Position)
S to C B (Parent) 007 Is Described By
(Position to Job)

Maintaining Organizational Management Data

SAP allows the user to maintain organizational objects through numerous
ways. Following is an overview of the methods for maintaining data.

Transaction Code PPOME - Organization and Staffing Changes

The transaction code PPOME allows the user to view the data in a
hierarchical view. Objects can be created or maintained in this view. The screen
contains four distinct sections. Descriptions of the sections are below.
Section A allows the user to search for objects in the system. By clicking on the
particular object, the user may conduct a variety of searches.
Section B displays the results of the search.
Section C displays the specific search result that is highlighted in Section B.
Section D displays the specific item highlighted in Section C.
 Section C
Section A

Section D
Section B

Creating Organizational Unit

Access Transaction:

Via Menu Path SAP menu >> Human Resources >> Organizational Management >>
Expert Mode >> PO10 - Organizational Unit
Via Transaction Code PO10
Procedure:
Via Menu Path

Via Transaction Code

Just enter PO10 and press Enter. Then the following screen will come.
Then do the following steps.

1) Select the Object Infotype

2) Set the Period. Ie ‘From’ date is which date we want this object to be
appeared in the Organization structure and ‘To’ date is till which date we
want this object to be appeared in Organization Structure.
3) Click on Create button.

Then the following screen will appear.

We can see the Validity date as the date we entered in the Period Field of the
previous screen.

4) Enter the Object abbr. (Abbreviation of the Organization Unit that we are
going to create and this should not exceed more than 12 characters)
5) Enter Object name (A meaningful name for the Organization Unit and this
should not exceed more than 40 characters)
6) Click on Save button.

Once we click the Save button we will get the following screen.

If the Object you created is not the Root Object

Then you have to specify, the newly created Object (Organization Unit)
comes under which Object (Organization Unit) by clicking the box next to ‘ID of
related object’ and selecting the Object which it reports to. Then Click on Save
button. Now the object is created and the relationship is also created.

Else

Click the Back button, so the Root Object is created.

Creating Positions
 Once you are done creating the Organization Units you have to create all
the Positions pertaining to that Organization Unit.

Access Transaction:

Via Menu Path SAP menu >> Human Resources >> Organizational Management >>
Expert Mode >> PO13 – Position
Via Transaction Code PO13

Procedure:
Via Menu Path

Via Transaction Code

Enter PO13 and press Enter and the following screen will appear.
Now do the following steps to create Position and attach it to Organization Unit.

1) As you have done for creating the Organization Unit, select the Object
Infotype and set the Period.
2) Click on Create button.

Then the following screen will appear.

3) Enter the Object abbr.

 4) Enter the Object name
5) Click on Save button.

Once you click the Save button the following screen comes.

Here you have to specify, the newly created Position ‘Belongs to’ which
Organization Unit and click on Save button. Now the new Position is created and
it is attached to the Organization Unit.

Creating Job
Access Transaction:

Via Menu Path SAP menu >> Human Resources >> Organizational Management >>
Expert Mode >> PO03 – Job
Via Transaction Code PO13
Procedure:
Via Menu Path

Via Transaction Code

The PO03 is shown below.

To create a new Job, do the following steps.

1) Select the Object Infotype and set the Period.

2) Click on Create button. The following screen will appear.

3) Enter the Object abbr. which is the Short Job Description

4) Enter the Object name (The Job Description in detail)
5) Click on Save button. Then the following screen will come and you
can see a tick mark on the right of Object Infotype, which means the
Object has been created.
Now you have to attach this job to a Position.

For attaching this Job to a Position do the following steps.

1) Select the Relationships Infotype that is just under the Object Infotype.
2) Click on Create button and you will get the screen shown below.

3) Now select the ‘A|007 Describes’ relationship for ‘Relationship

type/relationship’ and press Enter
 4) Select ‘Position’ from the box next to ‘Type of related object’.
5) Click on the textbox next to ‘ID of related object’ and press F4. Search for
and select the Position you want this Job to be assigned.
6) Now click on Save button to Save the details.

Attaching Person to Position

For attaching a Person to a Position you have to goto the PO13 Application and
do the following things.

1) Select the Position you want the person to be attached to.

2) Now select the Relationships Infotype and click on Create

3) Now choose the ‘A|008 Holder’ relationship for ‘Relationship

type/relationship and press Enter.
 4) Select ‘Person’ from the box next to ‘Type of related object’.
5) Click on the textbox next to ‘ID of related object and press F4. Search for
and select the person you want to attach this position to.
6) Now click on Save button to Save the details.

Relationships to be maintained for Various Purposes

We have to maintain certain relationships for the object for different purposes.

1) If we want to make the Position the head of the dept., then go to PO13
and select the position. Then maintain an ‘A|012 Manages’ relationship
with the particular dept.
2) If we want to make a position report to another position, then go to PO13
and select the subordinate’s position and maintain an ‘A|002 Reports (line)
to’ relationship with the head position.