1. Human Capital Management Part II (Modules & Transactions) EGS Enterprise Systems Integration Fall, 2016

2. Human Capital Management Part II (Transactions) Concepts & Theories

3. Importance of HCM
Human resources are one of the most expensive resources in organizations.
Goal: Hire and assign right people to the right Job at the right time and right cost which is critical to an organization.
Quarles: Flya Kite Introduction

4. Shift of HCM views Payroll (work and pay) Personnel (e.x. incentives)
Version 1.0
Shift of HCM views
January 2007
Payroll (work and pay)
Personnel (e.x. incentives)
Human Resources (values)
Human Capital Management
Shift from labor force to quality workers
Transform employees into competitive resources
The Rushmore Group, LLC

5. Human Capital Management (HCM)
Human Capital Management (HCM) modules enabling managers to perform transactions after organization structure and master data set up.
HR Modules in SAP ERP:
1. Organizational management
2. Personnel management,
3. Payroll
4. Time management
5. Training and event management,
6. Travel management,
7. Manager’s desktop

6. 1. Organizational Management
Organizational structure including organizational units, jobs, positions, and tasks of the company is designed and created to reflect its hierarchies and reporting relationships.
Basis for personnel planning, development processes, and personnel administration.

7. 2. Personnel Management 2.1 Personnel administration 2.2 Recruitment
2.3 Personnel development
2.4 Benefits
2.5 Compensation management

8. 2.1 Personal Administration
Facilitates the management of HR master data, Info systems, and setting for relational data bases.
HR master data
Infotypes, Personnel actions, and Personnel files
Info system
Report
Employee
Organizational entity (Headcount changes, headcount development, salary accounting to seniority, assignment to wage level)
Age/gender

9. 2.2 Recruitment 2.2.1 Objective
Objective of recruitment is to enable the selection and hiring of qualified applicants for a vacant position.
2.2.2 Recruitment process:
Create a vacant position,
Determine the applicant qualifications required of the position,
advertising the position,
Receive and screening applications,
Identify the most qualified applicants for hiring,
Reject unqualified applicants, and
Store applicant materials of those not hired but to be considered for future vacancies.

10. Recruitment - Hiring Applicants Advertising Vacancy Select & Notify
Version 1.0
Recruitment - Hiring
January 2007
Applicants
Advertising
Vacancy
Select & Notify
Hire
Profile Match
The Rushmore Group, LLC

11. Vacancy Determine position with vacancies.
Define requirements required for vacant positions that will match with the qualifications of applicants.

12. Advertisement Make advertisements for vacancy
May be internal or external announcement of a position.
Advertisement is recorded in system, such as cost, applications, medium, and recruitment instrument

13. Applicant Administration
Version 1.0
January 2007
Receiving applications
All applicants must be maintained in the system
the status of the applicant will determine the information that is needed
2) Profile Matching
Compares skills (qualification) of the applicant to the requirements of the position
can the applicant offer what the company needs
is there another vacant position that he/she would have a better match
3) Upon completion of qualification review and interviews the position must be filled (or closed)
Entry of applications in the system can be divided so that more than one person is responsible for it. EX. On receipt of the applications, one employee enters the mandatory data for all applicants. The applications are then distributed among the responsible administrators/personnel officers, who decide which applicants can be rejected immediately. They then enter additional data on applicants who are still of interest to the company.
Status determines what information is needed: If the applicant is an external applicant, all the required data must be entered manually. When dealing with internal applicants, however, you can import data such as name and address simply by specifying the candidate's personnel number. You can overwrite this data, if necessary
The Rushmore Group, LLC

14. Applicant Administration
Version 1.0
Applicant Administration
January 2007
Allows a company to coordinate and monitor all the steps involved in the applicant process
Applicant Administration functions:
Receiving applications
Profile matching
Selection of applicants
allows a company to coordinate and monitor all the steps involved in the applicant process
solicited or unsolicited applicants
The Rushmore Group, LLC

15. Hiring
Once qualified applicants have been identified, an offer or contract is extended.
Data transactions for hiring
Make an offer
Assign a personnel number to the new employee,
transfer applicant data to a master database, where infotypes such as planned working time, basic pay, bank details are created.
Assure the EEO compliance through HR data transactions.
EEO : Equal Employment Opportunity
EEO : Equal Employment Opportunity

16. 2.3 Personal Development
Make Performance appraisals, career and succession planning, and career development.
Identify the preferences, and potentials of employees for career planning and training and development purposes.
Generate a profile match up of the position’s requirements and the person’s qualifications
Appraise employee performance on a periodic basis for
employee development and
administrative purposes (to determine promotions, merit increases, etc.).

17. 2.4 Benefits
Benefits are crucial to the entire compensation package, and play a vital role in enabling a company to remain competitive.
Typical benefits transactions include
Activate benefits infotypes for employees,
Enroll employees in various benefit plans (e.g., health, flexible spending accounts, 401(k) plans), and
Review the costs of various employee benefit choices.

18. 2.5 Compensation Management
Rewarding employees with basic pay, as well as with incentives, is a typical feature of organizational life.
Common compensation transactions include
Enter internal job evaluation results and external salary survey data,
Generate salary structures,
Develop pay grades and pay scales,
Create budgets, and
Develop incentive pay.

19. 3. Payroll Release payroll Start payroll process Check payroll
Correction
Simulation
Follow up
Tax
Overpayment recovery
Bank transfer

20. HCM Process: Payroll Administration
Version 1.0
January 2007
HCM Process: Payroll Administration
Payroll Process
Determine Gross Amount
base pay and any other additional payment
overtime, sick pay, Christmas bonuses, special pay
Determine Deductions (Net Amount)
processes deductions, taxes, and benefits for employees
Federal/State Income Tax, Insurance (Health, Life), Loans
Integration with Financial Accounting & Controlling
G/L postings, payments processed, reports available
HOPE the +’s outweigh the –’s
Generation of W2 – W4
The Rushmore Group, LLC

21. Payroll Accounting
TERP

22. Calculation of Remuneration Elements
TERP

23. 4. Time Management Time collection will be used for:
Version 1.0
4. Time Management
January 2007
Time collection will be used for:
payroll accounting
personnel cost analysis
internal cost allocations
invoicing
performance analysis
capacity availability
shift planning
Payroll Accounting – Remuneration, Incentive Wages
Personnel Cost Analysis
Internal Cost Allocation – assign labor costs to the correct cost objects
Invoicing – Billing for work performed (consulting)
Performance Analysis – absenteeism, tardiness, etc
Capacity Availability – work schedule, can he/she be assigned to a task or Work Center
Shift Planning – available hours, hours needed
The Rushmore Group, LLC

24. Time Management There are multiple methods for data collection:
Version 1.0
January 2007
Time Management
There are multiple methods for data collection:
CATS
ESS
Time Terminals
Mobile Technology
Cross Applications Time Sheet Employee Self Service
Time Administrators
Time Manager’s Workplace
You are not limited to one method of time recording when entering time and labor data. There are different methods of time recording depending on the technical prerequisites, the demands on the data being recorded, and the employee's tasks:
Your employees post their working times at external time recording terminal (swipe, punch, piecework).
Your employees use the Cross-Application Time Sheet (CATS) to record information on their working times. You can use the recorded data for further business processes in Human Resources, Logistics, and Controlling.
Your employees use Web applications or mobile devices to record their working times and receive information about their planned and actual working times. These include applications for the Cross-Application Time Sheet, clock-in and clock-out postings, and for displaying time accounts and work schedules.
Your time administrators, such as supervisors and secretaries, use the Time Manager's Workplace to correct and complete decentrally the time data of the employees assigned to them.
Your time administrators in the Human Resources department use the Maintain Time Data transaction to check and complete employees’ time data centrally.
January 2007 (v1.0)
The Rushmore Group, LLC

25. Time Management Process
Zeitwirtschaft
Time Management Process
Die Zeitwirtschaft beinhaltet sowohl die Zeiterfassung als auch die Zeitbewertung mit der entsprechenden Generierung der Zeitlohnarten
Seite 6-1
Stamm- und Zeitdaten

26. 5. Training and Event Management
It involves training, workshop attendance, and other business-related events.
Information on descriptions of programs, prerequisites, and cost factors can be generated.

27. 6. Travel Management
It enables organizations to monitor the controllable expense associated with travel, training, and entertainment.
Employees frequently travel on business, so managing this expense is essential

28. 7. Manager’s Desktop
A tool which enables managers to access employee information at a manager’s fingertips.
Through decentralization of HR tasks and responsibilities, managers can easily access HR data of subordinates, both directly and indirectly supervised, to perform administrative and organizational tasks, and to make strategic decisions

29. Human Capital Management SAP Implementation

30. Business Process Integration
ECC 6.0
Business Process Integration
January 2008
HCM
Transactions
Master Data
Org Data
Rules
HCM
HCM
HCM
© SAP AG and The Rushmore Group, LLC 2008

31. HCM Implementation in SAP
Recruitment, Selection & Hiring Process
Recruitment
Advertising
Applicant administration
Assign hired employee to position
Training & Development
Personnel Development
Appraisal Systems
Career and Succession Planning
Qualifications/Requirements
Development Plans
Training & event management
Cost & Planning Reporting

32. 1.4 Assign Hired Employee to Position
International Aspects of HCM (SAP ECC 6.0)

33. Training & Development
Version 1.0
Training & Development
January 2007
Personnel Development
develop
Career & Succession Planning
Development Plan
generate
Appraisals
based upon
determine
Qualifications/
Requirements
Training
creates
The Rushmore Group, LLC

34. Integration Points of TEMS
Version 1.0
Integration Points of TEMS
January 2007
TEMS SD MM CO FI
HCM
Personnel Development
Personnel
Administration
Organizational
Time
Management
Integration Points within HCM
MM (requisitions for supplies – Markers, Paper, Manuals) (reservations – Rooms, Projectors)
SD (tracking external attendees – contact information, etc)
FI/CO (billing external attendees) (cross billing for internal attendees)
HCM
Personnel Administration – use of Employee data (attendees – instructors)
Organizational Admin – approval procedures
Personnel Development – qualifications check for entry to class – update skills upon completion
Time Management – recording and checking of attendance to the class
TEMS - Training & Event Management System
The Rushmore Group, LLC

35. 2.7 Cost & Planning Reporting
Version 1.0
2.7 Cost & Planning Reporting
January 2007
Used to analyze, monitor, plan a company’s personnel costs, wages, salaries, and employer contributions
cost plans are generated by developing and comparing multiple cost scenarios, these scenarios might be actual or projected
The Rushmore Group, LLC

36. Exercises: (Due date 10/15/2016)
11: Hiring applicant
12: Proof hiring
13. Maintain qualification profile
14.Execute career planning
15. Create an event
16. Book the event
17. Follow up the event
18. Execute career planning
19. Prepare appraisal
20.Perform appraisal
21. Transfer of employee