Organizational Management

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Introduction to Org Management

Org Management Blog
Org Management Blog

Org Management refers to the data structure of organizational information. Sometimes known as a component of the SAP HR system, it is the discipline that develops and tracks the data on how units in an organization fit together. Within Org Management, a structure is defined that illustrates departments, positions linked to the departments, jobs and attributes linked to the positions and then the positions held by employees.

Org Management in SAP

Companies that use SAP HCM systems need to populate their Org Management module in order for other hierarchy-based components to work properly. Because the Org Management component houses the data that defines hierarchy, it is critical for functions like cost center roll ups or approval workflow that look to reporting relationships to decide what to do next.

Organizational Management Objects

A typical enterprise or organization is comprised of any number of regions, divisions, units, cost centers, etc. These are the objects. Each object has unique attributes which relate to one another to define a position or role. Organizational Management maps the structure and hierarchy and codifies reporting relationships. It ensures that the data in Human Resource or other systems accurately reflects the organization structure by showing how organizations, divisions, positions and other entities relate to one another.

SAP defines certain nomenclature such as JOB, POSITION, PERSON or ROLE. JOB is a general descriptor such as Manager or Associate. POSITION is specific to a job in a department, such as VP. PERSON refers to the individual holding a particular position and a PERSON can have many ROLES that are tasks or responsibilities. Org Management links all of these entities together to create a picture of the whole organization.

For non-SAP users, Org Management can be used to show relationships between tasks, jobs, work centers, etc. An Org Management plan outlines the connections between divisions, parent companies or geographic designations and is critical to developing an understanding of these complex dynamics. With an Org Management plan, organizations are able to do analysis and perform workflow against:

  • Hierarchy and organizational structure
  • Staff assignments that show what positions are in each organizational unit as well as the job holders in each position
  • Reporting structure - how positions report to one another
  • Complex reporting structures in a matrix organization
  • Indexes of jobs, tasks etc. that are performed as part of various positions.

Benefits of Org Management

  • Accurate understanding of operational reporting structure across entire enterprise
  • Understand costs associated with discreet objects such as group or team, or virtual communities such as all Level 14 Managers.
  • Forms the basis for workflow routing of approvals and employee notifications.
  • Can assign cost centers

Using Org Charts for Org Management

The visual nature of an organizational chart makes it a perfect complement to an Org Management activity. The org chart, driven by data in the HCM system, visually shows the hierarchy and reporting relationships. People who view the org chart can instantly see where the hierarchy information is incorrect or broken, then easily repair the data in the source system. Without org charts, this is often a manual process that could take days or weeks when implementing new systems.

Once the hierarchy is properly depicted in the org chart, managers and HR teams can quickly access hierarchy-based metrics such as headcount cost by division, average span of control by geography, number of employees in each role by region or any other metric. This information also feeds accounting systems, personnel systems, equipment management systems that rely on reporting information to route approvals and other communications.

Additionally, org chart software can be used to modify the organizational hierarchy or the organizational structure, then populate the changes back to the system of record. This saves countless hours over manual processes.

See also

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