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SAP
Human Capital Management Components Overview
Rapture, Principal Consultant- SAP HCM & Success Factors

Budgeting/ workforce
planning exercise/
new org exercise
Vacancy created through Org
Management
Ahmed applies for
vacancy through e-
recruitment
Ahmed is interviewed,
accepted, and hired
Ahmed is hired and
assumes responsibilities
Employee Self
Service
Ahmed Clocks In
and Out every day
Ahmed applies for
Trip Approval
Ahmed settles trip
expenses upon return
Manager assesses
Ahmed’s
Performance in the
previous period
Ahmed receives a bonus
for a job well done!
Ahmed gets paid his
bonus and salary at
the end of the month
Contract is
renewed
Ahmed gets
promoted
Ahmed assumes
his new
responsibilities in a
new organization
Ahmed discusses
his career options
with his Manager
Ahmed develops
his skills
Ahmed violates org
policies
Disciplinary action
Ahmed is Terminated/ Separation

Why Organization Management
1. OM helps to maintain the hierarchy structure
2. It gives authorization to control the organization structure
3. It helps in creating verticals of business
4. Automation of work flows. (Relationships)
5. Manpower planning
6. Planned job descriptions for employees (Assignment)
7. Planned compensation for jobs (predefined budgets)
8. Structural authorizations (Access)
What is Organization management
1. Organization Management (OM) is one of the fundamental HCM
sub modules.
2. OM comprises of several components, known as Objects. E.g.
Organization, Position, Person.
3. Manages the organizational structure comprising of
Organizational Plan which shows hierarchical relationship
between OM objects.
4. Organization Management is the basis of defining reporting
structure and workflow.
5. OM provides a comprehensive view of the organization in past,
present & future.
6. To execute end-to-end business scenarios, the module is
integrated with other HCM sub-modules.
7. OM reporting structure is maintained by establishing position to
position relationship in organization unit.
Organizational objects Org. key
Organizational unit O
Job C
Position S
Person P
Cost center K
Task T
Task group Ts
1. Object – 1000
2. Relationships - 1001
3. Description - 1002
4. Department/staff - 1003
5. Character - 1004
6. Planned Compensation - 1005
7. Restrictions - 1006
8. Vacancy - 1007
9. Account Assignment - 1008
10. Health Examinations - 1009
11. Authorities/Resources - 1010
12. Work Schedule - 1011
13. Employee Group/Subgroup - 1013
14. Obsolete - 1014
15. Cost Distribution - 1018
16. Quota Planning - 1019
17. Address - 1028
18. Mail Address - 1032.
Organization Management

Overview of HCM Core Modules
Personnel Administration
PA - Master Data

Personnel Time Management
Time off as well as time worked is tracked and
accounted for in Time Management.
TM allows:
 To create and assign various work schedules to
employees, defining both their working hours and
nonworking hours, such as holidays, breaks.
 To manage leave and illness times
 Plan the workforce requirements situation
 Valuate attendance and absence times to manage
time accounts

Overview of HCM Core Modules : Time Data Recording
Time recording can be done in number of ways, depending on the
operations of each entity.
You can record time actively, meaning that all working time as
well as time off is entered into the system.
Also, you can record time as an exception basis, meaning you
are assumed to be working your schedule hours unless you say
otherwise. In this scenario, you typically only report absences,
such as sick time or vacation.
Additionally, the SAP system can accept time from other
systems, such as time clock in/out or card system.

Overview of HCM Core Modules : Payroll Overview
• Standardized data retention enables you to
use master data and other payroll relevant
data from Personnel Administration.
• Time data, entered via Time Management, is
automatically included in the Payroll and is
valuated during the payroll run.
• Information on expenses and payables from
Payroll is posted for accounting directly in
Financial Accounting, and you assign the
costs to the appropriate cost center. You can
also control the financial system of third-
party providers.
You can use this component to calculate the remuneration for
work done for each employee.

Payroll Overview

Overview of HCM Advanced Modules

Employee Self-Service (ESS)
Employee Self-Service (ESS) software delivers the personalized
information, tools, and services your employees need to do their jobs,
manage their own important life and work events, and focus on
contributing to business goals.
ESS - is a web enabled tool used by employees to update own data or to
access services for various business functions.
In this way, employees can keep their own data up-to-date, while
simultaneously reducing the number of time-consuming and expensive
activities performed by the Human Resources Department.

Overview of HCM Advanced Modules :
ESS - Overview
• View Profile
• Bank Details
• Display salary
statements
• Display address
• Change address
• Creating leave request
• Return from leave
• Leave overview
Working
Time
Address
Book
Personal
Information
Benefits &
Payment

Overview of HCM Advanced Modules :
MSS Overview
• Manager Self-Service equips your managers with tools that make it easier
to complete daily tasks – from routine HR transactions to compensation
assessments. With a global view of employee information at their
fingertips, managers can complete processes more quickly and make better,
faster decisions.
• MSS - Manager Self-Service is a web enabled tool which enables managers
to keep their own data up-to-date, while simultaneously managing their
team various activities.
• Empower managers to have a quick overview of their team activities and
information as and when required.

MSS - Key Activities
•
Work
Overview
Team
Information
Reports
Organization
Chart
Team Graphical Display
Tasks
Notifications
Tracking
General Information
Leaves
ECC Reports
BI Reports

Travel Management

Travel Management
• Plan trips based on the travel requests.
• Tracking of the approval status and display
trips details and view them at a later date.
• Booking advance in the request stage makes
the settlement more accurate.

Performance Management
 The PM module is part of the Talent Management which
is an integrated part of the SAP HCM.
 It is a complete process that integrates company
planning and initiatives with measurable employee
objectives, appraisals, feedback and compensation
administrations.
 Its main purpose is to assess the employee performance
over the year by the setting goals and see if it were
achieved.
Employee performance management with SAP ERP HCM helps you plan, assess, improve, and analyze the
performance of your workforce.

Overview of HCM Advanced Modules : Performance
Management Benefits
• Specific training requirements are created and cascaded to the specific employees
• Utilization of automated workflows for approvals and notification of employees and
managers
• Managers and Employees are able to access the Performance Appraisal documents
through the Portal
• Availability of pre-defined template
• Standardized tool for review
• More open communications at all entity levels

Personnel Cost Planning
Personnel Cost Planning focuses on a company’s personnel costs such as:
Wages and salaries
Allowances
Employer contributions to social insurance etc.
PCP helps to:
To determine the current personnel costs as well as experiment with future
costs by creating different scenarios.
To work with costs that are not directly related to salaries and allowances. For
example, calculate education and training costs.
PCP offers various display options such as:
 Download cost data into EXCEL spreadsheets.
 Display cost data and plan scenarios as bar charts in SAP BI Reports.

PCP – Generic Process

Enterprise Compensation Management
The SAP HCM Enterprise Compensation Management (ECM) module supports larger
organizations in defining, streamlining, and putting into practice a strategic performance-
based compensation program throughout the organisation.
Main components of ECM are:
 Compensation Administration
 Long Term Incentives
 Budgeting
 Job Pricing
However as part of the Mawared project we will be focusing on Compensation
Administration and Budgeting.

ECM - Budgeting
Compensation Budgeting will be done at each entity level as per
their Personnel Cost Planning, and the Budgets are created from
the Personnel Cost planning proposals.
The following parameters are taken as base for Budgeting:
• Personnel Cost Planning/ Manpower Planning
• Encouragement Performance Bonus and Salary Increase
These parameters determine the budgeting guidelines and also
the way forward for the financial year.
The Budgeting component in SAP enables creating, modifying,
and monitoring compensation-related budgets within the
organization.

ECM – Compensation Administration
Compensation Administration lets you:
• Perform compensation reviews including fixed pay, variable
pay.
• Apply eligibility rules and guidelines based on different criteria
such as performance ratings.
• Implement approval cycles if required feedback, and
compensation administration.

ECM - Integration

E-Recruiting
 SAP E-Recruiting provides a suite of tools to create and
approve job requisitions and post the jobs.
 Allows candidates to register and apply for job or submit
applications.
 Applicant tracking and reporting functions help organize
the processing of job applications and monitor the
effectiveness of the recruiting organization.
 In SAP E-recruiting you can monitor each step in the
recruiting process.

E-Recruiting process
Requisition
Candidadate
Pre-selection
Candidate
Assessment
Candidate
Hiring /
Requisition
Closing
These are 4 stages of the recruitment processes:
The recruiting lifecycle follows a four-step process from requisition creation through the hiring of the
candidate and closure of the requisition.

C&SP and Personnel Development
• SAP Personnel development and Career & Succession planning lets you avoid business disruption when key
positions are vacated by helping you proactively identify, develop, and track high-potential employees best
suited to fill those positions.
• You can prepare future leaders for new positions from within.
• You can identify successors for key positions before the positions are vacated.
• HR can create a talent profile of every employee. Using the talent profile, they can identify the top talents
• During talent calibration, line managers can discuss the performance and potential of all employee.

Personnel Development

C&SP

Learning Solution (LSO)
• SAP Learning Solution enables the organizations to
provide learning opportunities to their employees
anytime anywhere.
• By managing enterprise learning with the SAP
Enterprise Learning environment, Entities can
structure, deliver and track knowledge transfer.
• Learning Portal can be accessed by staff to
complete their trainings.
• Training administrators use the Learning Portal to
identify courses and assign them to employees.
SAP ERP HCM Learning Solution, or simply Learning Solution for short, is the SAP module for managing,
tracking, and deploying a variety of learning courses.

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