SAP HCM Overview

SAP Human Capital Management

(HCM)

Eng. Tamer Abdul Monem

Senior HCM Consultant

(Arete Global Company )

+966502033454 tamirmoniem@arete-global.com

Demo Agenda

HCM Demo Agenda : -

1- Introduction & HCM Core Requirments - 10 Min

2- SAP HCM Sub modules - 30 Min
3- OM (Organization Management) - 45 Min
4-PA (Personnel Administration) 45 Min
5- PY (Payroll) - 45 Min
6- TM (Time Management - Attendance ) - 20 Min
7- PD (Personnel Development) 30 Min
8- ESS/MSS (Employee/Manager Self service ) 30 Min

9- Q & A - Open

What is SAP?

SAP stands for

System
Applications &
Products in Data Processing
SAP is one of the (if not the) best ERP System used by
large enterprises worldwide.

HCM Core requirements from Customer

1- Policy & Procedure approved from the Labor office .

2- Enterprise Structure (Organization Hierarchy).
3- Position hierarchy & job descriptions .
4- HCM Process Owner aware with all hr Process .

HCM Sub modules in SAP

Internet
Integration

Employee
Self-Service
ESS/
MSS

Payroll

Personnel
Administration
Recruitment
Personnel
Development

Time
Management Organization
Management

Office

Financials

Logistics

SAP HCM Solution Components & Features

Organization Management
Define & Maintain Enterprise/Personnel/Organization Structure
Assign Staff Allocations & Transfers

Personnel Administration
Maintain Employee Records (Personal info, Basic Bay, Loans etc)
Maintain Employee Official Documents (Passport, Visa, etc )
Perform Actions (Hiring, Terminating, Change of Position, etc .)

Recruitment / e-Recruitment Module

Creating Vacancies
Advertising Vacancies
Recruitment Administration
Recruitment Reporting
Hiring

SAP HR Solution Components & Features

Organization Management
Define & Maintain Enterprise/Personnel/Organization Structure
Assign Staff Allocations & Transfers

Personnel Administration
Maintain Employee Records (Personal info, Basic Bay, Loans etc)
Maintain Employee Official Documents (Passport, Visa, etc )
Perform Actions (Hiring, Terminating, Change of Position, etc .)

Recruitment / e-Recruitment Module

Creating Vacancies
Advertising Vacancies
Recruitment Administration
Recruitment Reporting
Hiring

SAP HR Solution Components & Features

Personnel Development & Training

Qualifications & Requirements
Career Planning & Succession
Training & Events Management
Development Plans / Appraisals

Time Management
Time (Evaluation / Recording)
Time Shift Planning
Cross Application Time Sheet

Benefits Administration
Health, Insurance, Savings, Stock Purchase, Credit etc

Compensations
Compensation Management & Administration

SAP HR Solution Components & Features

Travel Management
Organizing / Entering Trips
Accounting & Payment of Trips

Payroll
Simulate/Run/Posting Payroll
Payment Transfers

Cost Planning / Reporting

Study / Simulate Different Cost Plans (Scenarios)
Run Reports in All HR Areas

Employee Self Service

Allow Staff to Maintain Data via a Web Browser (Internet/Intranet)

Structures in Human Resources

Organizational
Management

Contents:
Enterprise Structure
Company code, personnel area, and personnel subarea

Personnel Structure
Employee group, employee subgroup, payroll accounting area

Organizational Structure
Organizational units, jobs, and positions

Enterprise Structure: Example

ABC International

ABC S.A.
Country A

Location
A

Location
B

Headquarters

ABC AG
Country B

Location
C

Client

ABC Inc.
Country C

Company
code

Location
D

Personnel
area

Production

Personnel
subarea

Organizational, Enterprise, and Personnel Structure

Personnel No. 1001

EE Group

EE Subgroup DU
From

Name

Michaela Maier

Active employee

Per area

1300 Frankfurt

Salaried Staff.

Cost Center

2100

01/01/1994

To

31.12.9999

Finance and Admin.

Chng. 01/29/1999

BILLE

Enterprise structure

Enterprise
structure

CoCode

1000 IDES

Pers Area

1300 Frankfurt

Subarea

From

2100

Bus.area

9900

Payroll area

D2

Central

Personnel structure
EE Group

Personnel
structure

Active employee

EE Subgroup DU Salaried staff

HR-D: Salaried empl

Contract data Com. employee

Organization plan

Administration

Percentage

100.00

Group

1300

Position

50000076

Functional Specialist

Personnel

001

Helmuth Hesse

Func.Spec-D

Time

002

Dagmar Krause

Administrator

Payroll

003

Oliver Zeuner

Admin.

Supervisor

Job key

Organizational
structure

Org. unit

50011880
50000073

Travel expenses (D)

Trav.Exp -D

Org.key

1300

Organization Management Links with Other modules

Integration with other SAP HCM Sub modules

O rg a n iz a tio n a l M a n a g e m e n t In te g ra tio n

P e rs o n n e l
A d m in is tra tio n

R e c ru itm e n t

M a n a g e rs
D e s k to p

P e rs o n n e l D e ve lo p m e n t

P ro je c t S ys te m s

O rg a n iz a tio n a l
M anagem ent

T ra in in g a n d
E ve n t M a n a g e m e n t

C a p a c ity P la n n in g

W o rk flo w

S h ift P la n n in g

C o m p e n s a tio n
M anagem ent
P e rs o n n e l C o s t
P la n n in g

S A P A G 1999

C ro s s A p p lic a tio n
T im e sh e e t

Methodology - Planning

Organizational
you
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e s n a l Managment
rgcat nTiz
M a n a g e m e n provides
t In te g ra tio
n with a comprehensive
view of the structural and personnel environment of your
organization in the past, present, and future.
r g a n iz a tio
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n nR e s o u rc changes
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t y p e s , e a c h w ith its o w n o b je c t t y p e k e y

M a n a g e rs
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O b je c t tty
yp e s

P e rs o n n e l D e ve lo p m e n t

O b je c t t y p e k e y s
T ra in in g a n d
E ve n t M a n a g e m e n t

P ro je c t S ys te m s

O r g a n iz a tio n a l u n its
Jobs

O rg a nOiz a tio n a l
M ana
Cg e m e n t

C a p a c ity P la n n in g

P o s itio n s

C o s t C e n te rs

S h ift P la n n in g

P erso n s

Present

C o m p e n s a tio n
M anagem ent

P
P e rs o n n e l C o s t
P la n n in g

S A P A G 1999
S A P A G 1999

W o rk flo w

C ro s s A p p lic a tio n
T im e sh e e t

Future

Personnel Management

Personnel Management

Contents:
Maintaining Employee Data
Hiring Employees

Infotypes

Org. Assignment

Basic Pay
Person

etc.

Address

Planned Working Time

Birth
certificate

Personal Data

Infotypes: logical groupings of data fields

SAP AG 1999

Maintaining Infotypes: Overview

Change Organizational Assignment

Fast Entry

Org Structure

with proposal

Single
SingleScreen
Screen

Recur. Payments/Ded
Additional Payments
Fiscal Data D
Child Allowance D

11Infotype
Infotype
11Personnel
Personnelnumber
number

Fast
FastEntry
Entry
11Infotype
Infotype
Multiple
MultiplePersonnel
Personnel
Numbers
Numbers

Create Personal Data

Create
Org Bank
StructureDetails
Create
Addresses
Org Structure
Create
Planned Working Time
Org Structure
Create
Actions
Org Structure
Org Structure

Personnel
PersonnelActions
Actions
Sequence
Sequenceof
ofInfotypes
Infotypes
11Personnel
Personnelnumber
number
SAP AG 1999

Recruitment

Recruitment

Recruitment

Contents:
Creating Vacancies
Advertising Vacant Positions
Recruitment Administration
Recruitment Reporting
Hiring an Applicant

From Vacancy to Hiring an Applicant

Advertisement

Applicants

WANTED
Skilled,
competent
employee for...

Vacancy

Profile Comparison
Job Person

Hire
as Employee
SAP AG 1999

n ts ?
e
m
e
r
i
r re q u a n t o ffe r ?
u
o
e
r
c
W h a t a a n th e a p p li
c
W hat

Applicant Status
In process

To be hired

Invite

On hold

Invite to
Interview
......

Interim
reply
......
......

Contract offered

Contract rejected

Employment
Contract
......
......

Contract
......
......

Rejected

Searching for Applicants

Business Administration

Verbal Skills

Knowledge or Unions

Leadership

Find Objects for Qualifications

Key date
Qualifications

08/30/2000
Business Administration Degree
Endurance and stamina
Knowledge of Unions & Bargaining Units
Leadership skills
Verbal, written communication skills
Object types in search Applicant, external
Applicant, internal
Person
Qualification
Proficiency
Name
4 Frank Bauer

Tom Peterson

3 Bruno Hochlehnert

Business Administration Average

Endurance and stamina
Good
Leadership skills
Very good
Verbal, written communic Average
Business Administration 0007
Endurance and stamina
Very good
Knowledge of Unions &... 0008
Verbal, written communic0007
Business Administration Very good
Endurance and stamina
Average
Verbal, written, commucic.. Good

Payroll

Payroll

Payroll Accounting

Contents:
Concept of Payroll
Payroll Administration
Running Payroll for an Employee
Overview of Subsequent Activities

Payroll Accounting

Master Data

Time Data

Transfer to
Accounting

Remuneration
statement

Payments to
various payees

Calculation of Remuneration Elements

Gratuities
Basic pay

Sick pay

Remuneration
elements

Bonuses for
night work

Bonuses

Overtime

Vacation
allowances

Statutory and Voluntary Deductions

Finanzamt

Unemployment
insurance

Tax
Remuneration
elements

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Transfer of
remuneration

Pension
insurance

Payroll Administration

Master data maintenance

Release for payroll

controlled by the
payroll control
record

Start payroll

Check payroll result

Payroll run without

errors

yes
Exit payroll

no

Corrections

Wage and Salary Transfer - Data Medium Exchange

Pre. program
DME
Payroll
result

Create
DME
Payment
data

DME accompanying sheet

DME
admin.
Disk

Payment summary

Time Management

Time Management

Time Management: Overview

Recording...
Self-Service
Applications

Time sheet

. evaluating
Time Accounts

Personnel/
Time Administrators

Working time provisions,

Attendances / Absences,
Availabilities and
Substitutions

Time Recording
Terminals

Incentive Wages
and
Payroll Accounting

.using working times

Capacity
Planning

Training
&
Event
Management

Cost Assignment

Activity
Allocation

Recording Time Data

Method #1: Record only deviations

from the work schedule

Doctors appt

11:00

14:00

2.5 hrs

Work schedule =
actual and
planned

Method #2: Record all times

Attendance

08:00

11:00

3 hrs

Doctors appt

11:00

14:00

2.5 hrs

Attendance

14:00

17:00

3 hrs

Recorded times =
actual
Work schedule =
planned

Recording Data in Time Management

Internet
Workflow

Time Sheet
Employee Self-Service

Single screen
Fast entry
List entry
Calendar
Time Recording Terminals
Time Administrator

Attendances/Absences

Entitlement
n days

Manage
time
accounts

Attendances
Payment

Determine
salary/
wages

Compile
statistics

Absences
Statistics

Workflow: Leave Request

Employee

Superior

Administrator

Submits leave request

Rejects request
Changes request
Approves request

Checks,
corrects, and
approves
request

Receives notification
Receives notification

Checks and

of unsuccessful posting

rejects request

Collision Checks: Examples

Example 1:
Illness record created
05/15/XX - 05/25/XX

+
Leave record delimited
05/10/XX - 05/14/XX
05/10/XX - 05/20/XX

05/15/XX - 05/25/XX

Example 2:
Error Message:
Leave record cannot
be created

+
Illness record remains
unchanged
06/06/XX - 06/22/XX
06/02/XX - 06/22/XX

06/12/XX - 06/18/XX

Time Recording for Multiple Persons

Flexible selection
of employees
Flexible selection
of time data entries
Planned working time
Actuals: attendances, absences
Premiums, additional hours
Message log

Time Data for Time Management

8 attendance hours
Approval
time data

Entering time data

Releasing time data

Transfer to R/3
Time Management

CATS
HR
Attendances (IT 2002)
8 Attendance hours

SAP AG 1999

Development & Training

Development and Training

Development and Training

Contents:
Qualifications and Requirements
Career and Succession Planning
Training and Event Management
Development Plans
Appraisal Systems

Personnel Development and Qualifying Actions

Position of
Administrator
Profile Matchup
Job Person

Position of
Dept Manager

Development Plans
Appraisals

Actual / target proficiency

Certificate
of attendance
at Microsoft
Word course

Microsoft Word
skills required?
Seminar

SAP AG 1999

Creating Profiles for Persons/Applicants

A
A person
person has
has subprofiles
subprofiles
Who made
last change
Development Plan
Qualifications

Potentials

T Object ID Description

Preferences
ID

Dislikes

Dev. Plan History

Appraisals where apprai...

Proficiency

Start date

End date

N User name

Q 50000401 HR Management skills

Average

28.07.2000 31.12.9999

TRAINING

Q 50000831 HR Personnel Admin.Func

Good

28.07.2000 31.12.9999

TRAINING

Q 50000449 Independence and initiative

Adequate

28.07.2000 31.12.9999

TRAINING

Q 50000189 Knowledge of Wordprocessing 3

Average

28.07.2000 31.12.9999

TRAINING

Q 50000453 Leadewrship skills

Average

28.07.2000 31.12.9999

TRAINING

Notes

Creating Profiles for Jobs/Positions

A
A position
position has
has requirements
requirements
Inherited
Requirements

T ObjectD

Description

Stat.. ID

Proficiency

Ess

Start date End date

Q 50000442 Ability to organize and act

Invalid proficiency

01.01.1994 31.12.9999

Q 50000401 HR Management skills

Good

28.07.2000 31.12.9999.

Q 50000831 HR Personnel Admin. Functionality

Average

28.07.2000 31.12.9999.

Q 50000315 Knowledge of Desktop publishing

Good

28.07.2000 31.12.9999.

Q 50000313 Knowledge of general office activities

Average

28.07.2000 31.12.9999.

Q 50000316 Knowledge of general office policies

Average

28.07.2000 31.12.9999.

Find Objects for Qualifications

Selecting Qualifications:
Individually from the
qualifications catalog
Transfer entire
qualifications/
requirements profiles
Combine both the
above options

Restrict
selection to
specific object
types

Find Objects for Qualifications

Qualifications Restrict to object types Restrict further

Qualifications required
Name

Essential reqt Option Proficiency Maximum

Business Process Technology

Communication
General Office Administration
General commercial education
HR Management skills
Knowledge of computer hardware
Knowledge of database systems
Knowledge of payroll accounting

Average
Very good
Excellent
Good
Adequate
Adequate
Adequate
Excellent
Very good

The following can be

selected for each
qualification:
Essential requirement
flag
Proficiency required
(individual value or
value range)

Add qualificatios/requirements from

Job
Key date

50004051
22.06.1999

HR developer

For each object

type, restrict
selection further
to specific
objects (for
example, the
persons in an
organizational
unit)

Qualifications / Requirements

Requirements
List of skills and experience
required in order to be
suitable for a job, position,
task, or work center.

Profile Matchup
Job

Person

Qualifications
List of skills that make an
employee suitable for a job,
position, task, or work center.

Qualification Requirement

Profile Matchups

Persons, Applicants,
Users, ...

Job, Position, ...

Qualifications
Over/under-qualification
Alternative qualifications
Graphical display
Further training proposals
Qualification deficits
Development Plans
.......
SAP AG 1999

Requirements

Profile Matchup: Example

2D view 3D view Groups Left Sel. Up Sel. Down Right First selection

Profiles

Qualification

Qualification
Knowledge of m ultimedia
Verbal, written communicative skills
Pace of work
W illingness to assum e responsibility
Independence and initiative
Adaptability
Leadership skills
Business English language skills
W ork conduct and general conduct
Knowledge in W ordprocessing/W inword

Qualification

120
100
80
60
40
20
0

SAP AG 1999

Helena Cam ino

Know ledge of m ultim edia

Verbal, written comm , skills
W illingness to assum e
Independ. And Initiatives
responsiblit
Bus. Eng. Language skills
Leadership skills
Know ledge in W ordprocessing/
W indword

00 asst
Pace of w ork
Adaptability
W ork conduct and general
conduct

Training Proposals for Qualification Deficits

Word for
Windows

Requirements

Qualifications

Business
Events

Desktop

Desktop

Word for
Windows

Organization

Word
SAP AG 1999

Organization

Prebook

Book

Word for
Windows
5/1 - 5/5
Word for
Windows
6/11 - 6/15

Career Planning / Succession Planning

Career Planning is used to find

a position within the organization
that is suitable for a specific
employee.

Succession Planning is used

to find a suitable successor
for a position within the
organization.

Booking Attendances

Attendee Types
Person
User
External person

Applicant
Contact person
Company

Organizational unit
Customer
Interested party

Bookings
Take capacity into account
Prioritize

Checks
Availability (is the instructor already reserved
for another event?)
Time conflicts (attendances/absences)
Prerequisites (business event types,
qualifications)

SAP AG 1999

1999
1999
5
12
19
26

6
13
20
27

7
14
21
28

1
8
15
22
29

2
9
16
23
30

3
10
17
24
31

4
11
18
25

Following Up Business Events

Output confirmation of
attendance
Attendance

Transfer Qualifications

Goals

Qualifications

Business
English

Confirmation
Business English
for
Lisa Fischer

Lisa Fischer

Complete Attendee
Appraisal

Delete attendance booking

Bo

ok

in

Lisa Fischer

Business
English
10/02/99
11/27/99

Create business event type attendee relationship

Attended events
of type
Was attended
Lisa Fischer
by

Business
English

Development Plans: Possible Applications

Apprenticeship

Job Rotation

Further Training
Individual Plans

Appraisal Systems

360 feedback
appraisals

Performance
appraisals

Formalized work evaluation

Surveys

Appraisees

Appraisers
SAP AG 1999

Reporting & Managers Desktop

Reporting and
Managers Desktop

Reporting and Managers Desktop

Contents:
Reporting and Information Systems
Managers Desktop

The Information System in HR

HIS

Ad Hoc Query

Available fields
Infotype 0000: Actions
Employment status
Infotype 0001: Org. Assignment

Per

Mill

Per

Ric

Infotype 0002: Personal Data

PE/

Pfis

Hoc

Mai

Birth
certificate

Soc

Hor

Mill

Smi

Rot

Report Tree
Administration
Recruitment
Personnel Development
Benefits

SAP Query
Report
Generator

Compensation Management
Personnel Cost Planning

SAP Query

PC Connection

Pers. no.

Name

Basic pay

1000
2000

Eric Wong
Rosa Lee

5,600.00
4,400.00

MS Excel
Web display

Send mail
Recipient:

MS Word

ESS (Employee Self-Service)

Employee Self-Service

What is Employee Self-Service?

SAP Employee Self-Service is a set of powerful, yet

easy-to-use applications that empower employees
to view, create and maintain data in the R/3 system
via the intranet.
SAP ESS consists many components such as:
Office
Time Management
Expense Reports
Benefits
Personal Information
Training and Event Managament
Skills Profile
My ESS

Human Resources - Today

Huge, routine, and administrative workload in

Human Resources departments.
Critical Human Resources staff is locked with data
entry.
All business processes take place via paper or
informally
Many versions of the same data

Delivery of Human Resources services is

bureaucratic.

SAP ESS Functionality

Benefits

Jobs

Payment

Expense Reports

Skills Database

My ESS

Training and Event

Management

Personal
Information

Office

Time
Management

SAP ESS and Workflow: A Perfect Synergy

Integration of the SAP office inbox inSAP

ESS opens workflow to all employees
SAP ESS services that use Workflow:
Approval processes such as Leave
Request, CATS and expense reports
New Hire Data, Change of Address
notification

SAP ESS - The Benefits

1 Providing services to employees

SAP ESS
Benefits

2 Increasing productivity and efficiency

3 Saving money and time

SAPESS
ESSis
ispart
partof
ofthe
thestandard
standardR/3
R/3system
systemsince
sinceversion
version4.5
4.5
SAP

Any Questions