Enhancing the Personnel Structure

Objectives

After completing this lesson, you will be able to:
  • Identify the elements of the personnel structure
  • Divide employees based on their relationship with the company
  • Divide employees to facilitate payroll and time processing
  • Verify organizational assignments

Personnel Structure

The personnel structure displays the position of individual people in the enterprise as a whole.

Personnel structure provides the following information related to an employee:

  • The relationship between the employee and the Company
  • Employee’s job function

Every employee has an organizational assignment that is unique in the enterprise structure and personnel structure.

Employee Group

The employee group is a component of personnel structure.

The employee group is a general division of employees.

Following are some of the categories of the employee groups:

  • External
  • Active
  • Retiree

The employee group defines the relationship between an employee and a company where the employee makes a certain contribution to the company in terms of work.

Organizational Functions in the Employee Group

The employee group has the following important organizational functions:

  • You can use an employee group to generate default values for data entry, for example, for the payroll accounting area or an employee’s basic pay.
  • You can use an employee group as a selection criterion for reporting.
  • You can use an employee group as an entity for authorization checks.

To set up employee groups, you use the standard catalog. However, employee groups can also be created to meet individual customer requirements.

Employee Subgroups

An employee group consists of a number of employee subgroups.

For example, active employees can be split up into categories according to their status. Therefore, active employee group can be categorized into the following employee subgroups:

  • Trainees.
  • Hourly or monthly wage earners.
  • Salaried employees.
  • Pay scale and Non-pay scale employees.

You define an employee subgroup in Customizing and assign a two-character alphanumeric identifier to it.

Employee Subgroup Groupings

You can use the employee subgroup to set the following indicators:

International Indicators

  • The employee subgroup grouping for the work schedule allows you to define which work schedules are valid for which employee subgroups.
  • The employee subgroup grouping for primary wage types controls the validity of wage types at employee subgroup level.
  • The employee subgroup grouping for the personnel calculation rule controls how the system processes an employee’s payroll, for example, whether an employee is to be paid on an hourly or pay period amount.
  • The grouping for collective agreement provision restricts the validity of pay-scale groups to specific employee subgroups.
  • You can also assign employee characteristics such as the activity status, employment status, and level of education or training, for statistical purposes.

Following are additional indicators that can be set using the employee subgroup:

  • The employee subgroup grouping for time quotas allows you to specify the valid attendance and absence quota types for particular employee subgroups.
  • The employee subgroup grouping for appraisals allows you to define appraisal criteria for each employee subgroup.
  • The employee subgroup allows you to define default values for data entry, for example, for the payroll area or basic pay.

National Indicator (For Example, Germany)

  • There are country-specific indicators also, for example Germany. These indicators allow you to define default values for social insurance.

How to Find Employee Subgroup Groupings

DemoStart Demo

 View employee subgroup groupings.

Steps

  1. View employee subgroup groupings.

    1. Enter SM30 in the command field.

    2. In the Table/Viewfield , enter V_503_ALL .

    3. Choose Display .

    4. In the dialog box Determine Work Area/Entry , choose 99 in the Country Grouping Work Area  field.

    5. Choose Continue .

    6. The Employee Group/Subgroup: Complete View is displayed.

How to Create an Employee Subgroup

DemoStart Demo

Create a new employee subgroup for the production plant. Use your group number (##) as a new employee subgroup number.

Steps

  1. In the Employee Subgroups IMG activity, use the Copy function to copy your new employee subgroup (##) from Employee SubgroupX1 Hourly wage earners.

    1. On the SAP Easy Access screen, choose Tools→Customizing→IMG→Execute Project .

    2. Choose SAP Reference IMG .

    3. Choose Enterprise Structure→Definition→Human Resources Management→Employee Subgroups . Select the Edit employee subgroup environment activity and select Choose .

    4. Choose Copy org.object.

    5. In the From employee subgroup field, choose the Employee SubgroupX1 Hourly wage earner , and in the To employee subgroup field, enter your group number.

    6. Note the system generated message: Please note the list of affected features in the statistics .

    7. Select Continue.

    8. Note the system generated message: Employee subgroup X1 was completed to ##.

    9. Return to the Choose Activity dialog box.

  2. Use the Define Employee Subgroup action to change the name of your new employee subgroup. The new name should contain your group number.

    1. Select the action Define Employee Subgroup .

    2. Select Position to find your employee subgroup (##).

    3. Change the employee description for the employee subgroup to Hourly wage earner ##.

    4. Choose Save and return to the IMG.

Result

Organizational Assignments

Organizational assignments define the relationship between organizational entities such as personal area and company code and employee groups and employee subgroups.

In addition, you assign the country grouping to a personnel area in this table. When you create a personnel number for an employee, the system assigns a relevant company code in the Organizational Assignment infotype (0001). This company code depends on the enterprise structure to which you have assigned the employee. In addition to a personnel number, you assign a personnel area for which the employee works. Make sure that you assign all personnel areas in one company code to the same country grouping. The country grouping includes the country code in which the personnel area exists (the same country in which the company code exists).

Note

Country groupings serve to differentiate between countries according to human resources criteria; these groupings also acts as a key field in tables that allow you to create data, such as wage types and pay scale tables, for specific countries.

Within the organizational assignment, you also assign your employee subgroups to the relevant employee groups. You can also define permissible employee group or employee subgroup combinations for your country groupings.

For example, you should assign the employee subgroup Trainee to the employee group Active and not to the employee group Retiree .

How to Verify Organizational Assignments

DemoStart Demo

Navigate in the project IMG and search for the company code and country group assigned to a personal area.

Steps

  1. Identify the company code assigned to your new personnel area PA##. Why has the system already made this assignment?

    1. In HR305 , choose Enterprise Structure→Assignment→Human Resources Management→Assignment of Personnel Area to Company Code .

    2. Choose Position , select Personnel Area as PA## .

    3. Choose Continue .

    4. Note the entry in the Company Code field as CABB .

      The system made the assignment automatically when you copied the personnel area in the preceding exercise. The personnel area CABB is also assigned to company code CABB .

  2. Identify the country grouping assigned to the company code CABB .

    1. In HR305 , choose Enterprise Structure→Assignment→Human Resources Management→Assignment of Personnel Area to Company Code .

    2. Choose Position , select Personnel Area as PA## .

    3. Note the entry in the Country grouping field as 99 .

Result

Verify Organizational Assignments

ExerciseStart Exercise

Business Example

Your company has recently purchased several manufacturing plants. As new employees have joined the company, you need to verify the company code and country grouping allocated to them.

Navigate in the project IMG and search for the company code and country group assigned to a personal area.

Steps

  1. Identify the company code assigned to your new personnel area PA##. Why has the system already made this assignment?

    1. In Project IMG S4HR35, choose Enterprise Structure→Assignment→Human Resources Management→Assignment of Personnel Area to Company Code .

    2. Choose Position, select Personnel Area as PA##.

    3. Choose Continue .

    4. Note the entry in the Company Code field as CABB .

      The system made the assignment automatically when you copied the personnel area in the preceding exercise. The personnel area CABB is also assigned to company code CABB .

  2. Identify the country grouping assigned to the company code CABB .

    1. In Project IMG S4HR35, choose Enterprise Structure→Assignment→Human Resources Management→Assignment of Personnel Area to Company Code .

    2. Choose Position , select Personnel Area as PA##.

    3. Note the entry in the Country grouping field as 99.

  3. Check the assignment between the Employee Group Active and your new Employee Supgroup ##.

Learning

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