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📘 SAP S/4HANA HCM – Lecture 9
Configurations of Organizational Management (OM) – Part 1
🔹 What is Organizational Management?

Organizational Management (OM) in SAP HCM allows you to model the organizational structure of a company (departments, positions, reporting lines). It integrates with Personnel Administration (PA), Time Management, and Payroll.

1️⃣ IMG Path for OM Configurations

SPRO → SAP Reference IMG → Enterprise Structure → Personnel Management → Organizational Management

2️⃣ Key Elements of OM

Organizational Management is built around objects and relationships.

Organizational Unit (O): Departments (e.g., Finance, HR).

Position (S): Individual job placement (e.g., HR Manager).

Job (C): General classification (e.g., Manager, Clerk).

Person (P): Employee assigned to a position.

Cost Center (K): FI/CO integration object.

3️⃣ Configuration Steps – Part 1
Step 1: Define Plan Version

Plan version = A scenario of OM structure (e.g., "Active Plan Version").

Path:
SPRO → Personnel Management → Organizational Management → Basic Settings → Maintain Plan Versions

Example:

Plan Version = 01

Description = Active Plan

Step 2: Maintain Object Types

Object types define entities like Org Unit (O), Job (C), Position (S).

Path:
SPRO → Personnel Management → Organizational Management → Basic Settings → Data Model Enhancement → Maintain Object Types

Check active object types (O, S, C, P).

Activate only required objects for your project.

Step 3: Maintain Relationships

Relationships link objects (e.g., Org Unit → Position, Position → Person).

Path:
SPRO → Personnel Management → Organizational Management → Basic Settings → Data Model Enhancement → Maintain Relationships

Example relationships:

O → O (Org Unit reports to Org Unit).

O → S (Org Unit contains Position).

S → P (Position held by Person).

Step 4: Create Organizational Units

T-code: PPOME

Create top-level organizational unit (e.g., "ABC Corporation").

Create sub-units (e.g., Finance Dept, HR Dept).

Maintain reporting structure.

Step 5: Create Jobs

T-code: PO03

Create general job roles (e.g., Manager, Clerk, Consultant).

Jobs are templates → Positions inherit attributes from Jobs.

Step 6: Create Positions

T-code: PO13

Create individual positions (e.g., HR Manager, Finance Officer).

Assign job (e.g., HR Manager → Job = Manager).

Assign Org Unit.

🔑 Quick Recap (Part-1)

Define Plan Version.

Maintain Object Types.

Maintain Relationships.

Create Organizational Units.

Create Jobs.

Create Positions.

👉 In Part 2, we will cover:

Assigning Persons to Positions,

Cost Center integration,

Evaluation Paths,

Reporting in OM.