1. Human Capital Management Part II (Modules & Transactions) EGS Enterprise Systems Integration Spring, 2017

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

3. Which of the following accounts appears in
the Balance Sheet?
a. Inventory account b. Vendor account
c. Customer account d. Sales discount

4. 2. Which of the following accounts appears in
the Profit and Loss report?
a. Customer account b. Vendor account
c. Sales revenue d. Common stock

5. 3. Which of the following is NOT an element
of the enterprise structure in SAP’s HCM?
Company code b. Controlling area
c. Client d. Personnel area e. Personnel sub-area

6. 4. Which of the following is NOT an element
of the personnel structure in SAP’s HCM?
Employee group b. Employee subgroup
c. Payroll area d. Business area

7. 5. Which of the following is NOT an element
of the organizational structure in SAP’s HCM?
Organizational unit b. Positions
c. Profit center d. Persons
e. Jobs

8. 6. You have a distribute cycle shown below in your control area.
Please choose the correct distributed dollar amount
for the receiving cost center D005 after you run the distribution center.
D005: 1) 400, 2) 420, 3) 450, 4) ) 500 6) 520 7) none

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

10. 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
get rid of the fishing nets and bring in the lines
Transform employees into competitive resources
The Rushmore Group, LLC

11. Human Capital Management (HCM)
Human Capital Management (HCM) modules enabling managers to perform transactions pertaining to the HRM cycle of events.
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

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

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

14. 2.1 Personal Administration
Facilitates the management of HR master data, Info systems, and setting for relational data bases.
HR master data
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

15. 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.

16. 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

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

18. 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

19. Applicant Administration
Version 1.0
January 2007
Receiving applications
All applicants must be maintained in the system
maintenance responsibility must be delegated (one or more people)
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

20. 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

21. 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

22. 2.3 Personal Development
Make Performance appraisals, career and succession planning, and career development.
Identify the preferences, potentials, and dislikes 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.).

23. 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.

24. 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.

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

26. 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 garnishments, 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

27. Payroll Accounting
TERP

28. Calculation of Remuneration Elements
TERP

29. 4. Time Management Shift planning Administration Time data
Time evaluation
Work schedule
Incentive wages
Time sheet

30. Version 1.0
January 2007
Time Management
supports planning, recording, and evaluation of internal employee time data
time data that would be gathered and evaluated
hours worked
leave
illness
overtime
substitutions
business trips
conference, training
The Personnel Time Management component offers you support in performing all human resources processes involving the planning, recording, and valuation of internal and external employees’ work performed and absence times. It provides other SAP applications with planning data and delivers information to business processes such as:
Determining personnel costs
Creating invoices
Confirmations
Service entry of external employees
January 2007 (v1.0)
The Rushmore Group, LLC

31. 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

32. Time Management Time collection will be used for: payroll accounting
Version 1.0
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

33. 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

34. 5. Training and Event Management
It involves the management of employee activities associated with training, workshop attendance, and other business-related events.
Information on descriptions of programs, prerequisites, and cost factors can be generated.

35. 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

36. 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

37. Human Capital Management SAP Implementation

38. 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

39. HCM Implementation in SAP
Recruitment, Selection & Hiring Process
1.1 Recruitment
1.2 Advertising
1.3 Applicant administration
1.4 Assign hired employee to position
Training & Development
2.1 Personnel Development
2.2 Appraisal Systems
2.3 Career and Succession Planning
2.4 Qualifications/Requirements
2.5 Development Plans
2.6 Training & event management
2.7 Cost & Planning Reporting

40. 1.4 Assign Hired Employee to Position
International Aspects of HCM (SAP ECC 6.0)

41. 2. Training & Development
Version 1.0
2. 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

42. 2.1 Personnel Development
Version 1.0
2.1 Personnel Development
January 2007
Compare current or future work requirements with employees’ qualifications, preferences, and aspirations.
Personnel Development comprises of the following components:
Qualifications/Requirements
Appraisal Systems
Career and Succession Planning
Development Plans
The Rushmore Group, LLC

43. 2.2 Appraisal Systems Appraisal system used in
Version 1.0
January 2007
2.2 Appraisal Systems
Appraisal system used in
1) Personnel Administration
as an instrument to evaluate members of your organization in a planned, formalized and standardized manner
2) TEMs (Training & Event Management)
training appraisals
attendance appraisals
3) Compensation Management
appraisal results can be used to influence remuneration
The Rushmore Group, LLC

44. 2.3 Career and Succession Planning
Version 1.0
2.3 Career and Succession Planning
January 2007
1) Career Planning
A planning functionality that allows you to analyze an employees skills, preferences, dislikes, qualifications, potential and determine positions they should hold during their tenure at the company
2) Succession Planning
It allows you plan for positions in the company that will need to be filled because of turnover (or new position)
It enables a company to analyze employees and determine and prepare potential replacements
Career Planning – ensure employees feel good about themselves and the direction they are going within the company – done by aligning goals of the company and the employee
Succession Planning – determining qualified successors for specific posts within the company
ensuring our success (having internal replacements) and minimizing cost associated with finding retrain employees
The Rushmore Group, LLC

45. 2.4 Qualifications/Requirements
Version 1.0
2.4 Qualifications/Requirements
January 2007
It is used to define, structure, and manage your qualifications catalog
Catalog enables you to place requirements on positions and qualifications on employees (or applicants) within the company
Perform profile match-ups (people and positions)
Run reports to recognize qualification deficits and enact training measures
You use the Qualifications and Requirements component to define, structure, and manage your qualifications catalog. On the basis of this qualifications catalog, the organizational structure (and, if required, other information) you can create profiles. You can then use these profiles to manage, evaluate and compare object characteristics. The profiles can be used to show both the requirements of a position and the qualifications and career goals (preferences) of a person. You can also run profile match-ups to find out how suitable certain persons are for a certain position in your organization, for example. If any qualification deficits arise, you can plan further training measures
The Rushmore Group, LLC

46. Version 1.0
2.5 Development Plans
January 2007
Include development measures and information with time requirements for improvement of employee’s qualifications
Generic Plans
training program (all prospective sales reps must complete a course on Fundamental Selling Techniques)
Individual Plans
comprised of all the items that a person has completed, is currently involved in, or will be involved in the future
proposes needed course work (integration with TEMs)
The Rushmore Group, LLC

47. 2.6 Training & Event Management
Version 1.0
January 2007
It involves the management of employee activities associated with training, workshop attendance, and other business-related events.
1) Enables new hires and current employees access to the necessary resources to build job skills needed for both current and future task assignments
this is figured through Qualifications/Requirements reports, development plans, career planning, etc
2) Encourages continual learning and professional development
SAP offers a resource to assist in scheduling training - TEMs
The Rushmore Group, LLC

48. 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

49. 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

50. Exercises: (Due date 3/29/2017)
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