Human Capital Management Processes

The Human Capital Management Processes include:

1.Recruitment
2.Hiring
3.Training and Personnel Development
4.Managing Work Time
5.Compensation and Benefits
6.Payroll Administration
7.Travel Management
8.Personnel cost planning and Reporting
9.Employee Self-Services

Recruitment Process flow:

Vacancy is created in an Organization -> Vacancy is advertised in New papers, and in various recruitment media -> Applicant apply for the vacancy -> Vacancy Requirement and Qualifications of the Applicant are matched to find the suitable fit , this process is called as Profile Matchup -> If applicant is found suitable after the Profile Matchup. Applicant is hired as an Employee. Applicant data may be transferred from Recruitment to Personnel Administration Course.
This functionality helps in avoiding duplication of Data entry process in Personnel Administration course.

Hiring an Applicant

Applicant data is transferred from Recruitment course to Personnel Administration. Data entered as Info types in Recruitment is default in the Personnel Administration course. Other Info types can be entered in the Personnel Administration after data transfer.
In integrated systems, data transfer takes place either directly in Recruitment or in Personnel Administration. You can add additional data such as information on working hours and salary at a later time in Personnel Administration.

Applying via internet

Applying via internet Employer advertises -> Applicant applies for that vacancy via internet -> Applicant enters information as per the requirement --> Filled in application hits the employer box for further processing. Applicants can either apply in response to the advertisement or unsolicited application.

Personnel Development and Qualifying Actions

Personnel Development course in SAP ERP HCM helps in maximizing employee’s potential. Suitable fit for the position is found using Profile Matchup functionality in Personnel Development Positions requirements and Person’s qualifications are stored in Profiles.
Profile Matchup results in Score determining whether the person is suitable for the positions or is there any deficiency which in turn helps in identifying the Training Needs or Development plans? Training program can be a Seminar or a course. After attending the training Employee performance is evaluated, if found suitable he or she occupies that position.

Qualifications/Requirements
Understanding Qualifications and Requirements. Requirements include List of skills, abilities and work experience required for position. Qualifications include: List of skills, abilities and experience attached to the person Profile Matchup helps to compare Requirements and Qualifications.

Training' and 'Event Management'
'Preparations in Training' and 'Event Management'. Following are the processes:
Business Event Preparation: In this phase, you can create Master data related to “Training and Event Management”. These include Business event catalog, Business event types, location, resources time schedule and so on.
Business Event catalog: comprises of Business event dates with or without resources. This helps in demand planning.
Day-To-Day Activities : After creating catalog with Business events you need to work on Day – To – Day Activities such as Booking, prebooking, replace booking, rebooking and cancellation.
Recurring Activities: Activities that occur periodically, i.e., firmly booking, locking / unlocking events, and follow up activities.

Career and Succession Planning.

Career and Succession Planning aims at, Professional Development of an Employee and looks at suitable candidates to fill in the vacant posts. Career Planning looks at identifying employee’s career goals and plan a professional development program accordingly.
Succession Planning on the other hand, works towards identifying a suitable candidate externally or internally to fill the position. In both cases, in case of any qualification deficit employees are booked for training program.

Feedback process in Performance Management.
Performance Appraisal Process in SAP ERP HCM is a continuous process. It consists of periodic feedback. Feedback is provided to an employee at each and every stage of the Appraisal Objective setting :
Similar to Appraisal, objective setting takes place once a year. During this phase Employee and his / her Manager agree on certain achievable Objectives as per the Organizational goals. Employee performance is tracked based on the objectives set. Objective can be qualitative or quantitative. Agreed upon objectives are communicated to the employees and it becomes part of his or her profile.
Objective setting helps in:
•    Identifying the competencies
•    Identifying personnel development requirement
Review Phase:
•    Reviews the relevance of the Objectives.
•    Manager provides support and coaching to achieve the objectives set.
•    Compare current performance and objectives and provides feedback.

Appraisal Phase:

•    Provide feedbacks on achievements, skills and competencies.
•    Summarize overall performance of an employee.
•    Derive actions such as Compensation adjustment, personnel development, career / succession move and so on.

Overview of Time Management.
Time spent and work performed by employees is important for Human Resources Management. SAP ERP HCM facilitates evaluating and recording time spent by the employees. Information on Time Management is sent to Payroll for calculation of wages.

Following are the options that are available for recording Time:

•    Employee Self Service.
•    Time Manager’s Workplace (TMW).
•    Time Recording Terminals.
•    Time Administrators.

Evaluating Working Time.

•    SAP Time Management functionality allows you to query on, and display working times flexibly.
•    Time accounts (such as leave, flextime) can be managed manually or automatically.

Information from Time Management are used for the following:

•    Wage calculation (Leave, number of hours worked, overtime, and so on).
•    Shift Planning.
•    Working times can be used for activity allocation in Controlling.
•    Used in Logistics to determine Employee’s Availability.

Positions

Positions

Positions are occupied by persons. They are the individual employee assignments in the organization. When a job is attached to a function or a department it becomes a position. For example, Manager HR, Sales Manager.

Following are the features of the positions:

*Positions are enterprise specific.

*Numbers of positions are based on the same job. For example, Manager HR, Manager Marketing, Manager Finance and so on.

*As a rule each position is occupied by one employee. But it is possible for a position to have more than one employee.

Position inherits a job’s tasks. Additional tasks can also be defined. Positions can be 100% filled, partially filled, or vacant. Single positions can be shared by employees i.e., two employees can hold 60 % and 40% responsibilities. Shared service in an organization can be quoted as an example for 40 and 60% responsibility sharing.

Organizational Structure

Organizational Plan helps in depicting the Organizational Structures and hierarchy requirements in an organization. It also gives a clear picture of the personnel environment in an enterprise. It depicts the hierarchy that exists between the organizational units and its relationship.

It clearly shows the individual position and its reporting structure. Organizational Plan facilitates mapping the chain of command existing in the organization.

PAYROLL Areas

PAYROLL Areas

SAP ERP system uses Payroll Areas to group employees for whom payroll should be run together, and at the same time. You can perform payroll separately for different employee groups, using different payroll areas. Which payroll area the employee belongs to depends on his or her organizational assignment. Employees who belong to different company codes can, for example, be grouped in the same payroll area.

SAP recommends that you use few Payroll areas as possible. For example, an organization may pay employees on 28th of the current period and another at the beginning of the subsequent month so at least two payroll areas must be created.

When you run payroll, you must specify the payroll area in the payroll driver selection screen. The Payroll Area has the following functions:

* Determines the exact Payroll Period.

* Select the personnel numbers grouped under the Payroll Area.

TERP31 SAP ERP: Introduction into Processes in Human Capital Management

Started Studying  Introduction into Processes in Human Capital Management 

SAP Report Navigation

SAP Report Navigation

1. Define:     List Report ,  Analysis Report , Report navigation using Selection criteria

1. What is a report variant?
2. How you can create a report variant?
3. How you can retrieve a report variant?
4. How you can download a report to the PC?