Organizational Management in Human Capital Management (HCM)


After completing this lesson, you will be able to:

  • Understand the usage of Organizational Management

Organizational Management

Organizational Structure

Object Types – Organizational Units

Organizational units describe the business units in your enterprise. Multiple organizational units and the relationships between them form the organizational structure.

Organizational units can be classified generally (for example, by function or region) or specifically (for example, by project group). The way in which organizational units are classified depends on the company.

You must relate organizational units with one another in an organizational plan. The hierarchical interrelationships that exist among the organizational units represent the organizational structure of your enterprise.

Organizational Structure – Jobs

Each job represents a unique classification of responsibilities in your organization. When you create a job, consider the specific tasks and requirements associated with it.

Jobs are used in the following application components:

  • Shift planning
  • Personnel Cost Planning
  • Personnel Development
Make your job descriptions as general as possible and as specific as necessary.

Organizational Structure – Positions

After you create a job, you must specify the number of corresponding positions required in the organization.

A position inherits the tasks of a job. However, you can define additional tasks that must be performed only by this position.

Positions can be 100 percent filled, partially filled, or vacant.

Positions, rather than jobs, are held by employees. One position may also be shared by a number of employees, each working less than full time. For example, two employees can hold 60 percent and 40 percent of a full-time position.

Object Types – Cost Centers

Organizational Structure – Persons

Personnel Administration and Planning

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