Everything You Need to Know: Configuring Organizational Management (OM) in SAP HR

Organizational Management (OM) is a critical SAP HR (Human Resources) module component. It provides a structured way to represent your company’s hierarchy, relationships, and reporting lines, facilitating efficient personnel management. This blog will guide you through the essential steps of configuring OM in SAP HR.

Key Concepts

Before diving into the configuration, let’s understand a few core concepts:

• Object Types: These are the basic building blocks of your organizational structure. Examples include:
  • Organizational Unit (O)
  • Position (S)
  • Job (C)
  • Person (P)
• Relationships: Relationships define how objects are connected. For example, a position ‘reports to’ another position, or a person ‘holds’ a position.
• Infotypes: These are screens where you store relevant data for each object type (e.g., job descriptions and employee details).

Configuration Steps

The configuration of SAP OM usually involves the following steps. These are performed mainly using the transaction code SPRO, where you traverse the IMG (Implementation Guide) menu.

1. Number Ranges:
   • Define number ranges for each object type to ensure unique identification. (Path: Personnel Management -> Organizational Management -> Basic Settings -> Maintain Number Ranges)
2. Object Types:
   • Check and adjust the standard object types provided by SAP. You may need to create custom object types if necessary. (Path: Personnel Management -> Organizational Management -> Basic Settings -> Data Model Enhancement -> Maintain Object Types)
3. Infotypes
   • Review the standard info types and determine if you need to create additional ones to capture specific data for your organization. (Path: Personnel Management -> Organizational Management -> Basic Settings -> Data Model Enhancement -> Infotype Maintenance)
4. Relationships
   • Define the relationships between different object types. Consider both hierarchical and cross-functional relationships. (Path: Personnel Management -> Organizational Management -> Basic Settings -> Data Model Enhancement -> Relationship Maintenance)
5. Evaluation Paths
   • Determine how you want to traverse and analyze your organizational structure for reporting purposes. (Path: Personnel Management -> Organizational Management -> Basic Settings -> Maintain Evaluation Paths)
6. Integration Switches
   • Configure integration between OM and other SAP HR modules like Personnel Administration (PA). (Path: Personnel Management -> Organizational Management -> Integration -> Integration with Personnel Administration -> Activate Integration)
7. User Interface
   • Choose between Simple Maintenance and Expert Mode for the OM user interface, depending on the complexity of your organization and user experience level. (Path: Personnel Management -> Organizational Management -> Expert Mode (PP01))

Example Scenario

Let’s illustrate with an example:

1. Create an organizational unit, “Sales Department” (object type O).
2. Create positions within the Sales Department such as “Sales Manager” and “Sales Representative” (object type S).
3. Define a relationship where the “Sales Representative” position reports to the “Sales Manager” position.
4. Assign employees (object type P) to their positions using the “holder” relationship.

Important Considerations

• Plan Version: SAP OM uses the concept of plan versions. Always be clear on the active working plan version.
• Validity Periods: Each object and relationship needs start and end dates to track changes.
• Authorization: Set up appropriate authorizations to control who can create and modify the organizational structure.

Conclusion

By following these steps and understanding the underlying concepts, you can effectively configure SAP Organizational Management to model your company’s structure. Remember, the meticulous configuration of OM is the foundation for streamlined personnel management, reporting, and decision-making within SAP HR.