With org chart solutions for SAP are based on the Organizational Management (OM) component of SAP. So how do you set up OM for org charting capabilities?
This is one of the tasks covered by Danielle Larocca of spinifex IT in her HR 2012 presentation last spring, “Step-by-Step Instruction for Creating Organizational Charts” by Danielle Larocca.
Among the business needs for org charting are:
- To have a single source of organizational data (SAP) that does not require duplicate maintenance
- To have the flexibility to modify the design and formatting of the organizational charts with our very specific (and ever-changing) business requirements
The first step is to make sure to set up SAP Organizational Management (OM) module correctly. The OM module (with integration turned on) already supports organizational units, jobs, and positions.
What we needed to add was the hierarchical relationships between the employees (i.e., Nicole works for Mike, Mike works for Patricia, and Patricia works for Chris, etc.)
Organizational Management Overview
There are a couple of options for how to store “who reports to whom”
- The most popular is to store it as a relationship maintained in the Organizational Management (OM) component of SAP ERP HCM
- There are two main options for this:
the Chief Relationship
> Relationship assignment POSITION to POSITION
- Organizational Management consists of structures of related objects, such as Organizational Units and Positions
- Each object contains a meaningful relationship to other objects
Each organization will have different requirements, so let’s take a minute to get an understanding of the two different options:
- Sample Organizational Structure — Org Units
> SAP Object O = Organizational Units
> Objects that denote categories or groupings of employees. These can be based on Geography, Function, or other company requirements.
> Hierarchies may be created by having Org Units (O) directly reporting to other Org Units
- SAP Object S = Positions
> Objects held by employees that denote their place in the organization
> Hierarchies may be created by having Positions (S) directly reporting to other Positions
Option 1: Using the Chief Relationship:
As the Chief of the Human Resources Organizational Unit, for example, all employees in the Org Unit (O) report to them
Option 2: Using a Position-to-Position Relationship:
Every Position can have a relationship to another position, e.g., Director of Benefits position (S) reports to VP HR position (S)
Which Option Will Work for You?
Best Practice is … It depends on your requirements …
- However, Option 1, the Chief relationship, is used by Standard MSS by default. It is easier to maintain changes at the org unit level than at the position level as it changes less frequently.<
- For smaller organizations (or those with various reporting hierarchies) you may want to use the position-to-position method
- You have many options on which objects and relationships you wish to use.
Once you pick one that is right for your organization you can move to the next step -- org charts.
For more tips from Danielle, read her earlier blog series on Insider Learning Network, or join her at HR2013 in the US, February 26-March 1.