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Human Capital Management (HCM) . BPI - Overview. Goal of HCM. Right People for Right Job at the Right Time Functions determining staffing needs recruitment and training time management performance issues and performance monitoring compensation and benefits

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Human capital management hcm

Human Capital Management(HCM)

BPI - Overview

The Rushmore Group, LLC

Goal of hcm
Goal of HCM

  • Right People for Right Job at the Right Time

  • Functions

    • determining staffing needs

    • recruitment and training

    • time management

    • performance issues and performance monitoring

    • compensation and benefits

    • proper alignment of corporate and personnel goals

The Rushmore Group, LLC

Shift in hcm
Shift in HCM

  • Effects of Globalization and Technology

    • Stereotype shift

      • Payroll

      • Personnel Department

      • Human Resources

      • Human Capital Management

        • shift from brute 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

Modules within hcm
Modules within HCM

  • Personnel Management

    • HR Master Data, Personnel Administration, Info. Systems, Recruitment, Benefits & Salary Administration,

  • Organizational Management

    • Organizational Structure, Staffing Schedules, Job Descriptions, Planning Scenarios, Personnel Cost Planning

  • Payroll Accounting

    • Payroll Administration, Payroll Simulation

  • Time Management

    • Shift Planning, Work Schedules, Time Recording, Absence Determination

  • Personnel Development

    • Career/Succession Planning, Profile Match-ups, Training, TEMs

The Rushmore Group, LLC

Integration of hcm
Integration of HCM

  • HCM with Production

    • Shift Planning (Capacity)

  • HCM with FI/CO

    • Payroll

    • Personnel Cost Planning

  • HCM with MM

    • TEMs (Training and Event Management)

  • HCM with SD

    • Salespeople - Commissions

The Rushmore Group, LLC

Organizational data
Organizational Data

  • A hierarchy in which the organizational units in an enterprise are arranged according to task and functions

  • Are static data and are rarely changed

  • The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured

The Rushmore Group, LLC

Structure of hcm
Structure of HCM

  • Enterprise Structure

  • Personnel Structure

  • Organizational Structure

The Rushmore Group, LLC

Organizational structure for hcm
Organizational Structure for HCM

  • Enterprise Structure

    • This structure makes up the legal identity of the company

    • The Enterprise Structure is made up of the following elements:

      • Client

      • Company Code

      • Personnel Area

      • Personnel Subarea

The Rushmore Group, LLC

Enterprise structure
Enterprise Structure

  • Client

    • technical structure feature

  • Company Code

    • highest level of the enterprise structure

  • Personnel Area

    • divides the company into sub-units (unique to a client)

    • locations or divisions

  • Personnel Subarea

    • subdivision of the personnel area (the grouping of the personnel area and subarea must be unique to a company code)

    • departments

The Rushmore Group, LLC

Enterprise structure pen inc

Client 420


Pen Inc 100




Pen Inc. Central Office


Pen Inc. MFG Center











Enterprise Structure: Pen Inc.

The Rushmore Group, LLC

Personnel structure
Personnel Structure

  • This structure describes an employee’s position within the company in regards to work hours and compensation

  • The Personnel Structures is made up of the following elements

    • Employee Group

    • Employee Subgroup

    • Payroll Area

The Rushmore Group, LLC

Personnel structure elements
Personnel Structure: Elements

  • Employee Group

    • represents a division of the companies employees and establishes a relationship between the company and the employee

    • defines the extent which the employees capacity is available to for the company

      • Active Employee, Pensioner, Interns, External Employee

The Rushmore Group, LLC

Personnel structure elements1
Personnel Structure: Elements

  • Employee Subgroup

    • refines the relationship between company and employee

      • Standard Salary, Executive Salary, Daily Wage, Hourly Wage, Etc.

    • control features for the personnel structure are defined at this level.

      • employee relationship with payroll

      • eligible work schedules, wage types, attendance policy, restrictions for collective agreement provision

The Rushmore Group, LLC

Personnel structure elements2
Personnel Structure: Elements

  • Payroll Area

    • groups employees together that are paid the same (time)

      • Weekly, Bi-Weekly, Monthly

    • the payroll area is determined from a combination of the Employee Group and Employee Subgroup

      • number of employees in the payroll run

      • specific dates of the payroll run

The Rushmore Group, LLC

Organizational structure
Organizational Structure

  • This is an overview of your Company’s Organizational Plan (Org. Hierarchy)

    • Depicts the reporting structure and task distribution

  • The Organization Structure is made up of the following elements

    • Organizational Unit

      • represent functional units within an enterprise (ex. departments)

    • Position

      • spots that are occupied by individuals (Salesperson)

    • Job

      • classifications of functions within an enterprise

        • ex. Job: Officer, which is used for Positions: CEO, CFO, COO

      • job description for numerous positions

    • Person

      • the individual, he/she is assigned to a specific position

The Rushmore Group, LLC

Organizational structure pen inc

Organizational Units



Organizational Structure: Pen Inc

The Rushmore Group, LLC

Hcm master data
HCM: Master Data

  • Master data is relatively fixed

    • Record that contains all the necessary information to conduct business transactions

    • Information within a master record can and will change, our hope is that it does not change frequently.

  • Before making the master data configurations, you must have completely defined the organizational structures

The Rushmore Group, LLC

Employee data
Employee Data

  • Information must be recorded and maintained effectively for every employee

    • Infotypes (Information Types) are units of information that aid in the entry of master data and group like information together

  • Status of the Employee will determine what information should be gathered

    • Active vs. Intern

    • Exempt vs. Non-exempt

The Rushmore Group, LLC

Employee data infotypes
Employee Data: Infotypes

  • Numerous infotypes will be created for each employee

    • Organizational Assignment must be the first infotype recorded

The Rushmore Group, LLC

Employee data infosubtypes
Employee Data: Infosubtypes

  • Certain data that is entered in an infotype can trigger the need for a infosubtype

    • ex. Family Member/Dependents

      • If you enter that you are married or have children it will generate the need for a spouse/child infosubtype to capture the information about the spouse or child(ren)

  • Subtypes also allow you to account for time constraints

    • Different addresses may be current at the same time

      • Permanent Residence

      • Temporary Residence

      • Home address

The Rushmore Group, LLC

Employee data personnel actions
Employee Data: Personnel Actions

  • Personnel actions are a series of predefined infotypes that are grouped together to speed the data entry process

    • Hiring, Firing, Reassignment, Retiring – would all be examples of procedures that could be represented by a Personnel action

  • Personnel Actions enable users to enter information about an employee without having to access each individual infotype

The Rushmore Group, LLC

Personnel file
Personnel File

  • Information maintained about an employee is stored in their Personnel File

The Rushmore Group, LLC

Hcm process functions

Hire Employee


Training and Development




Cost Planning


Manage Work

Time (CATS)




& Benefits

HCM: Process/Functions

The Rushmore Group, LLC

Recruitment selection hiring
Recruitment – Selection - Hiring




Select & Notify


Profile Match

The Rushmore Group, LLC

Hcm process recruitment
HCM Process: Recruitment

  • allows you to monitor and meet the personnel requirements within the company

  • determines vacancies within the company

    • maintained by Personnel or Line Managers

    • the system will generate a list of all positions that are marked vacant

  • once a vacancy has been identified advertising can be initiated

The Rushmore Group, LLC

Recruitment advertising
Recruitment: Advertising

  • Vacancies are published in advertisements

    • internal or external announcement of a position

  • The advertisements are recorded in the system enabling you to gather information about that advertisement

    • cost

    • applications

    • medium

    • recruitment instrument

The Rushmore Group, LLC

Recruitment applicant administration
Recruitment: Applicant Administration

  • Applicant Administration is a combination of

    • receiving applications

    • profile match

    • selection of applicants

  • allows a company to coordinate and monitor all the steps involved in the applicant process

The Rushmore Group, LLC

Recruitment applicant administration1
Recruitment: Applicant Administration

  • Maintaining applications

    • Applicants are the central object of Recruitment

      • it is a person who expresses interest (through job application) in employment or position change within the company

    • 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

  • Profile Matching

    • Compares skills 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

The Rushmore Group, LLC

Recruitment applicant administration2
Recruitment: Applicant Administration

  • Selection

    • Applicant Activities aid in Selection process

      • used to enter, log, and plan all the tasks for an applicant during the selection process

        • Activity Types: mail confirmation of receipt, mail invitation to interview, schedule appointment for interview, reject applicant, offer contract

          • depending on the activity and the system output can be generated automatically

        • Activity Status: planned, completed

        • Performance Date: when it was carried out

        • Person Responsible: person responsible for carrying it out

    • Upon completion of qualification review and interviews the position must be filled

The Rushmore Group, LLC

Hcm process hiring
HCM Process: Hiring

  • Master data (information) is obtained during the hiring process (employee data)

    • Personal Data, Payroll Data, Time Data, Etc.

  • Hiring can be integrated with Recruitment

    • information obtained about an applicant can be copied into his/her personnel record

  • Hiring can be done independently of Recruitment

    • through the Hiring personnel action (infotypes)

  • The Rushmore Group, LLC

    Hcm process personnel development
    HCM Process: Personnel Development

    • Personnel Development component is used to assess and create employee “value” that can be utilized by the company.

    • Purpose is to manage the work efforts and develop the work skills of employees within the company

    • A company’s Personnel Development needs are determined by comparing 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

    Hcm process training development

    Career & Succession Planning



    Personnel Development

    Development Plan


    HCM Process: Training & Development



    based upon



    The Rushmore Group, LLC

    Hcm process training development1
    HCM Process: Training & Development

    • Qualifications/Requirements

      • this component is used to define, structure, and manage your qualifications catalog

        • the 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

    The Rushmore Group, LLC

    Hcm process training development2
    HCM Process: Training & Development

    • Appraisal Systems

      • used in

        • Personnel Administration

          • as an instrument to evaluate members of your organization in a planned, formalized and standardized manner

        • TEMs

          • training appraisals

          • attendance appraisals

        • Compensation Management

          • appraisal results can be used to influence remuneration

    The Rushmore Group, LLC

    Hcm process training development3
    HCM Process: Training & Development

    • Career and Succession Planning

      • Career Planning

        • 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

      • Succession Planning

        • planning functionality that allows you plan for positions in the company that will need to be filled because of turnover (or new position)

        • enables a company to analyze employees and determine and prepare potential replacements

    The Rushmore Group, LLC

    Hcm process training development4
    HCM Process: Training & Development

    • Development Plans

      • a series of development measures and information on the sequence in which they should be passed through and time requirements to provide an individual with a specific qualification

        • Generic Plans

          • training program (all prospective sales reps must complete a course on Fundamental Selling Techniques)

        • Individual Plans

          • comprises 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

    Hcm process training development5
    HCM Process: Training & Development

    • Training

      • enable 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

      • Encourage continually learning and professional development

        • SAP offers a powerful resource to assist in scheduling training - TEMs

    The Rushmore Group, LLC

    Hcm process training development6
    HCM Process: Training & Development

    • Training and Event Management (TEMs)

    • Component that enables a company to manage, track, and plan various different business events

    • Helps determine demand for courses and schedule dates, manage the resources, attendees, and costs associates with the event

    The Rushmore Group, LLC

    Hcm process training event mgmt
    HCM Process: Training & Event Mgmt

    • TEMS Catalog Structure

      • Business Event Groups

        • Used to classify business event types

      • Business Event Types

        • Time independent description of a business event

      • Business Events

        • Actual time based event that is to take place

    The Rushmore Group, LLC

    Hcm process training event mgmt1














    HCM Process: Training & Event Mgmt

    • Integration Points

    The Rushmore Group, LLC

    Hcm process time management
    HCM Process: 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 Rushmore Group, LLC

    Hcm process time management1

    Time Administrators

    Time Manager’s Workplace

    Time Terminals

    Cross Applications Time SheetEmployee Self Service



    Mobile Technology

    HCM Process: Time Management

    • There are multiple methods for data collection:

    The Rushmore Group, LLC

    Hcm process time management2
    HCM Process: Time Management

    • Time collection will be used for:

      • payroll accounting

      • personnel cost analysis

      • internal cost allocations

      • invoicing

      • performance analysis

      • capacity availability

      • shift planning

    The Rushmore Group, LLC

    Hcm process compensation benefits
    HCM Process: Compensation & Benefits

    • Compensation is not the cut-and-dry subject it once was

      • Past – consisted of an employee's base salary or, at most, a base salary and commission.

      • Today - looked at as compensation packages; including:

        • salaries, stock options

        • employee stock ownership plans

        • pay-for-performance plans

        • bonuses, profit sharing

        • commissions, non-cash rewards

        • variable pay, and much more.

    The Rushmore Group, LLC

    Hcm process compensation management
    HCM Process: Compensation Management

    • The balancing of company interests to operate within the company's fiscal budget and fairly paying employees

      • key component of attracting, developing, retaining, and rewarding high quality staff through wages and salaries which are competitive in the labor markets

    • Compensation Management is comprised of the following components:

      • Job Pricing

      • Budgeting

      • Compensation Administration

      • Long-term Incentives

    The Rushmore Group, LLC

    Hcm process benefits administration
    HCM Process: Benefits Administration

    • benefits today are offered as a part of an employees overall compensation package

    • this component allows a company great flexibility in creating and maintaining individual packages for your employees

      • Six international Plan Categories

    • Allows for detailed company reporting

      • Benefit Plan Participation

      • Health Plan Costs

      • Employee Demographics

      • Benefits Election Analysis

    • Country Specific Settings available

      • FSA, COBRA (US examples)

        • HIPPA Certificates

    The Rushmore Group, LLC

    Hcm process payroll administration
    HCM Process: Payroll Administration

    • SAP contains an international payroll driver that is modified for each country

    • payroll is released for individual payroll areas

      • the run is for a specific group of employees and a specific period of time

      • upon release all affected personnel records are locked

    • will generate an payroll results, and earning statement, bank transfers and check payments

    The Rushmore Group, LLC

    Hcm process payroll administration1
    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

    The Rushmore Group, LLC

    Hcm process cost planning reporting
    HCM Process: Cost Planning Reporting

    • 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

    Hcm process employee self service
    HCM Process: Employee Self-Service

    • Employee Self-Service (ESS)

      • empowers employees to create, display, and change their own personal information

        • streamlines and simplifies the HR data entry process

      • some of the capabilities include

        • SAP Office – appointment calendar, employee directory

        • Personal Information – address, bank information

        • Time Management – record working time, request leave

        • Business Trips – submit travel request, reserve flights, rooms, also expense reimbursement process

        • Training – register for training, display your bookings

        • Benefit Enrollment and Overview (Healthcare, Retirement, etc)

        • Display Leave and Earnings Statements

        • Qualification and Appraisal Review

        • W-2 W-4 printout

    The Rushmore Group, LLC