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Overview
• Provide some foundation information about mySAP ERP Human
Capital Management and look and some basic processes.

Human Capital Management

Objectives
After completing this unit, you’ll be able to:
• Outline the tasks associated within Human Capital Management
• Explain how SAP within mySAP ERP Human Capital Management
supports the key processes in Human Capital Management
Contents
• Human Capital Management foundation
• Human Capital Management processes

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Human Capital Management

Overview
• To compete effectively, we need to align all corporate resources –
including employees – with business objectives. We need to
transform traditional human resources (HR) functions into a
comprehensive program for human capital management (HCM).
• mySAP ERP HCM helps maximizing the value of employees and
align employee skills, activities, and incentives with business
objectives and strategies.
• mySAP ERP HCM also provides the tools to manage, measure,
and reward individual and team contributions.

mySAP ERP HCM Elements mySAP ERP HCM Elements

1. Organizational Management: includes management of the organizational
and personnel structures
2. Applicant Data: gathered during the recruitment process
3. Personnel Management: maintains employee data
4. Personnel Development: includes the development of employee skills
5. Training and Event Management: offers training events to enable
employees to develop their skills and bridge any gaps between position
requirements and their abilities
6. Appraisals: facilitates personnel apprisals
7. Time Management: includes the tracking of employee time (attendances
and absences)
8. Payroll: includes the payment of employees for work done
9. Personnel Cost Planning: facilitates planning activities for budget
generation.

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Key Terms in Organizational

The Organizational Plan
Management
• Organizational Management can be used to quickly and effectively • Organizational units
map organizational and reporting structure with the relevant • Organizational units describe the various business units in organization. Several
organizational objects. organizational units, along with their relationships, make up the organizational
structure.
• An organizational plan provides a comprehensive and dynamic • Organizational units can be divided according to functional or regional criteria, for
model of the structural and personnel environment of enterprise. example.
Hierarchies and reporting structures are clearly laid out. The • Jobs
organizational plan is the foundation of Organizational • Jobs are general descriptions of employee’s tasks and requirements. E.g., Manager.
Management. • Positions
• The organizational plan uses elements, called objects. The most • Positions represent the distribution of tasks amongst individual employees in the
important objects are organizational units, jobs, and positions. organization. Positions are occupied by persons. A position inherits the tasks and
requirements of the job from which it was defined. E.g., Human Capital Manager
• Persons
• Persons occupy positions within the organizational structure and represent the
employees in organization.

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Enterprise Structure for Personnel

Organizational Management
Administration
The enterprise structure for personnel administration is
determined by the following elements:
• Client
• Company code
• Personnel area
• The personnel area is used exclusively in personnel administration and is
unique within a client.
• Each personnel area must be assigned to a company code.
• Personnel subarea
• Personnel subareas allow for the further grouping of employees.
• This is typically used in payroll and time management.

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Enterprise Structure for Personnel

Administration

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Recruitment Recruitment
• Recruitment component can be used to carry out the entire recruitment
process from entering applicant data to staffing a position.
• This applies both to external applicants, that is, new hires, and to internal employees changing
position.
• The staffing requirements are represented by vacancies (positions that need to be filled).
• If Recruitment integrated with Organizational Management, the vacancies are created or
initiated by an internal transfer in Organizational Management. Vacant positions are the
trigger for the recruitment process.
• mySAP ERP HCM supports representing staffing requirements,
advertising, managing and selecting applicants, and applicant
correspondence.
• When an applicant be hired, the applicant data entered in Recruitment can be
transferred as employee data to Personnel Administration.
• External applicants and internal employees can use the Employment
Opportunities self‐service application to apply online and can check the
status of their application using the Application Status service.
• Applicants can also make subsequent changes to their applicant data.
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Recruitment Personnel Management

A typical process in Recruitment may involve the following steps: • Integration between Recruitment and Personnel Administration
• The vacant positions are published in job advertisements. enables the applicant data to be transferred as employee data.
• The applicants’ data is entered in the system (name, address, • Employee data in mySAP ERP HCM are classified depending on
qualifications, and so on). their function and stored as infotype records
• Infotype records equivalent to pages of the personnel file.
• A complex selection process takes place, culminating in a decision • Infotypes have a text description and a four digit unique identifier
being made. • The data can be displayed, copied, corrected, and deleted.
• The employment contracts are generated for the applicants who • Tab pages offer an intuitive way of selecting the required
are to be hired. infotypes. HCM administrators can select the infotype they want
• The applicant data is transferred to HCM master data. to view or edit from the user‐specific infotype menu (such as the
Core Employee Info menu).

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Infotypes Infotypes
• Infotypes can be maintained in various ways:
• Single‐screen maintenance (one infotype for one person)
• Personnel actions (sequence of infotypes for one person)
• Fast entry (one infotype for multiple persons)
• One infotype is of central importance for employee data: the
Organizational Assignment infotype. In this infotype, the
employee is assigned to three important structures:
• the enterprise structure,
• the personnel structure,
• and the organizational plan.

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Organizational Assignment
Personnel Actions
Infotype

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Personnel Actions Personnel Development

• Personnel actions can be used for more complex situations that require • Personnel Development component helps plan and realize
maintaining several infotypes sequentially. personnel development and further education and training for
• When carry out a personnel action, the system proposes all relevant infotypes. employees, with integration with Training and Event Management.
• Personnel action help ensure data completeness, however an infotype • The comparison of the position requirements profile (the skills
presented during an action may be skipped.
• This allows for a scenario where the person entering the data is missing a piece of information.
required to perform the tasks of the position) and an employee
This person could skip the infotype and continue with the execution of the action. The missing qualification profile (the skills the employee holding the position
information can be added at a later time. possesses) results in development requirements for that employee.
• The following is a list of some of the infotypes that are created when hire an • The information required for the comparison is stored in profiles.
employee. User can change the number and sequence of the infotypes in • Qualifying actions (such as trainee programs or participation in a
the personnel action to suit enterprise's requirements:
• Organizational Assignment 0001
sequence of courses) can be assigned to employees using
• Personal Data 0002 development plans.
• Addresses 0006 • Employees' performance and behavior can be appraised, the
• Planned Working Time 0007 results of which provide information for employee development
• Basic Pay 0008
planning.
• Bank Details 0009

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Personnel Development Training & Event Management

• Training and Event Management is a highly integrated component
that supports planning, executing, and managing training courses
and business events.
• There are four main processes in Training and Event
Management:
1. Business event preparation: includes the creation and maintenance of
all required master data when creating the business event catalog, such as:
time schedules, event locations, and resources.
• The business event catalog is represented using a hierarchy that consists of business
event groups (which are used to structure the catalog) and business event types.

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Main Processes in Training & Event

Training & Event Management
Management
2. Business event catalog: includes the creation of business events.

3. Day‐to‐day activities: includes booking participants, pre‐booking attendance,

replacing bookings, re‐booking, cancelling attendance, and preparing
correspondence.
4. Recurring activities: includes activities required periodicallyperiodically, such as
firmly booking events (confirming the event will run), locking and unlocking events
(controlling enrollment), cancelling, and follow‐up activities (course appraisal,
reporting, performing cost re‐allocations for internal attendees).

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Training and Event Management Day‐to‐Day Activities

• A high level of integration with other SAP components means that • In the dynamic attendance menu, user can execute all of the
Training and Event Management is an ideal tool for constantly functions relating to attendance bookings contained in day‐to‐
extending and updating employees' knowledge. day activities.
• For example, the link with Personnel Development enables identifying
qualification deficits and react with targeted training programs in Training and • Training and Event Management facilitates self‐service access to
Event Management. The link to the SAP Learning Solution enables combining the most important day‐to‐day functions of the application. These
traditional classroom training in Training and Event Management with Web‐based services are provided to the user in the form of Employee Self‐
learning methods that can be realized regardless of time and location.
Services in the corporate intranet or as Internet Services on the
• The SAP Learning Solution is a separate SAP software product, and can be
integrated with the Training and Event Management component. Internet.
• The broad palette of Training and Event Management functions is • Correspondence is automatically output to accompany each of the
enhanced by a high degree of user‐friendliness. To ensure that it is as booking activities if there are relevant settings in Customizing.
intuitive as possible, Training and Event Management uses what are The output of correspondence can be monitored using the
known as dynamic menus. These menus enable user to access the Correspondence History function.
individual functions of the application directly via the objects in the
business event catalog. User can right‐click to access the most
frequently used functions, such as the day‐to‐day activities in the
dynamic attendance menu. 29 30

Day‐to‐Day Activities Time Management

• The Time Management component supports in all processes that concern
planning, recording, and valuating employees' attendance and absence times.
• For example, if Training and Event Management is integrated with Time Management, the
booking of an employee into a course causes a time data record to be created as an attendance.
If an employee who is being booked on a course is absent, due to vacation for example, the
system notifies that the person is not available.
• Evaluating work performed by employees and determining employee
availability within an enterprise are essential elements for a HR system. This
information is also relevant for other areas, such as Controlling and Logistics,
and is a factor that influences enterprise‐wide decisions.
• Time Management flexibly display and record working times.
• Information on working times is used to calculate gross wages in Payroll.
• Working times can be used for activity allocation in Controlling. Costs generated by the
working times can be assigned according to their source in Controlling.
• Information from Time Management is used in Logistics to determine employees’ availability
for capacity requirements planning.
• User can determine work requirements for the enterprise and plan employee shifts.

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Time Management Time Management

• An employee’s time can be recorded in two different ways:
• ‘Exception to work schedule’: only record the deviations from the work
schedule, like absence
• ‘Actual times’: record the employee’s actual working times like attendance
• There are various options for recording time data (hours worked,
vacation, off‐site work or substitutions):
• Online by the time administrator (using the Time Manager's Workplace,
for example)
• Using front‐end time recording systems
• Using the Cross‐Application Time Sheet (CATS)
• Using Employee Self‐Service (ESS) applications

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Time Management Appraisals

• Time data is stored in special time infotypes. • The appraisal functionality in Personnel Development supports
• The Planned Working Time infotype is the central time flexible appraisal processes to carry out standardized appraisals
management infotype. with the highest level of objectivity.
• It contains the times when the employee is scheduled to work according • This applies not only to traditional personnel appraisals, also to
to the work schedule assigned. business event appraisals or even online employee or customer
• The work schedule specifies when employees have to work and when surveys using Internet or intranet services.
they are permitted to have breaks.
• The phases of an appraisal can encompass all the usual steps in
• The work schedule also covers days off and public holidays.
the appraisal process, such as planning, review, and execution, as
well as evaluation of the appraisals submitted.

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Appraisals Appraisals
• In the appraisals catalog, reusable appraisal templates can be created, which
are then used to create employee‐related appraisal documents.
• In the appraisal documents, objective‐setting agreements can be
incorporated as planned specifications. User can add information either
manually or by means of integration with other mySAP components:
• Integration with mySAP ERP HCM Personnel Development enables transferring requirements
profiles from positions or qualifications from the qualifications catalog directly to employees'
individual objective‐setting agreements.
• Integration with SAP Strategic Enterprise Management (SAP SEM) enables display the
department goals derived from the higher‐level corporate goals in the balanced scorecard and
transfer relevant strategic goals directly to the object‐setting agreements for employees.
• Once the appraisal process is complete, user can use integrated, automated follow‐on
processes, such as updating the employee's qualification profile in Personnel Development, or
adjusting his or her remuneration.
• Integration with Compensation Management enables automatically adopting default
compensation adjustments.
• Integration with SAP Business Information Warehouse (SAP BW) enables compiling special
analyses of the appraisal results.

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Payroll Payroll
• Designed for global business, mySAP ERP HCM supports payroll functions
and regulatory requirements.
• Payroll is concerned with calculating each employee's remuneration for the
work that he/she has performed.
• It encompasses a multitude of processes, such as the creation of payroll results and salary
statements, bank transfers, and payment by check.
• The processes include a number of follow‐on activities, such as transferring the results to
mySAP ERP Financials.
• The calculation of employees' remuneration includes:
1. Grouping the remuneration elements (the gross amount)
2. Legal and voluntary deductions (country‐specific, net amount)
• The payments and deductions were determined for that employee during
one payroll period, and included in the remuneration calculation by means of
various wage types.
• Payment is then made by bank transfer or check, for example, and the
employee is sent notification in the form of the remuneration statement, or
can view the information online using an Employee Self‐Service application.
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Personnel Cost Planning Personnel Cost Planning

• Personnel Cost Planning and simulation can draw from a very wide
data basis and can be integrated with other applications.
• Personnel Cost Planning allows planners within an organization to
determine which cost elements (e.g., salary, overtime, employer cost
of benefits, etc.) should be included in cost planning activities for the
next planning period.
• Once the planning process has been executed, managers can make
additional adjustments to the plan, by using aWeb‐based front end as
a simple user interface for planning (a phase of the detailed
planning).
• Once a plan has been released, the data can be used for processes
such as:
• Creating salary budgets for Compensation Management
• Creating a training budget for Training and Event Management
• Transferring planning data to Controlling
• Extracting the cost projections for further analysis in the SAP BI 41 42

Employee Self‐Service Employee Self‐Service

• Using Employee Self‐Service (ESS), employees maintain their own
personal information and control many administrative
transactions and other processes once handled by the HCM staff.
• ESS streamlines approval processes for activities such as vacation
requests and allows employes to check, for example, their vacation
balance or benefits, thus reducing administrative costs.
• With SAP ESS, employees can take responsibility for updating
their own data. The services can be incorporated in the user‐
friendly SAP Enterprise Portal. Employees can enter, display, and
update their own data without being familiar with the HCM
processes in the SAP system. This relieves the HCM department
and time administrators of routine tasks.

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Employee Self‐Service Manager Self‐Service

• Employees use SAP ESS to complete the following activities: • Manager Self‐Service consists of a set of easy‐to‐use tools,
• Submit travel expenses transactions, and reporting capabilities. MSS gives managers a
• View the calendar single point of access to information and enables them to manage
• Search the Who’s Who information efficiently, effectively, and proactively in one Web
• Update personal information interface. It empowers managers to execute HC and finance
• Enter work times management strategies for budgeting, recruitment, compensation,
• Enroll in benefits and cost management, thus creating return on investment.
• Update banking information • MSS leverages HC and financial back‐end systems by making
• Enroll in a training course pertinent information available to managers throughout
• Some benefits of SAP ESS include: enterprise. Self‐service tools automate paper‐based processes,
• Well‐informed employee decisions such as requests for employee master data changes (for example,
• Reduced administrative costs and shorter cycle times transfers and salary increases) or performance appraisals.
• Accurate employee records • The MSS solution integrates different systems, and management
• Time and resources saved for strategic HR initiatives information is consistent across the organization.

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Manager Self‐Service Manager Self‐Service

• SAP MSS can be used to:
• Obtain relevant information
• Recruit employees
• Perform compensation planning
• Control costs
• Perform budget and headcount planning
• Make personnel data changes
• Manage budgets

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References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.

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