Enterprise Work Structure - Overview

Every enterprise has its own individual ‘culture’, which is reflected in the organization of work and the management of people within the enterprise. Culture is also reflected in the reward systems, the business processes and the control systems that operate within the enterprise.

 

Using Oracle HRMS, you create an information model to represent your enterprise in terms of:

• •Work
• •Pay
• •People

You deploy and compensate people using the model you set up.

Oracle HRMS enables you to configure the same HR system to represent many different types of enterprise, for example, commercial, public sector, healthcare, telecom, and education.

Configuration means that one system, Oracle HR,  can support the data and processes from many different types of enterprise. The implementation process is the process that takes the specific business needs of an enterprise and maps them to Oracle HRMS to determine what data and processes need to be configured.

The data model is simple. Although it can be extended, there are still only 3 major areas of activity in HRMS - People, Work, and Pay. This should help as you work your way through the different parts of the system.

Oracle HRMS enables you to represent people, work, and pay in two main types of enterprises – Project-based and Rule-based. In these enterprises you can show the basic ways of how people work in different jobs and positions. 

Typical Types of Enterprises

Typically, enterprises are:

• •Project-based
• •Rule-based

 

Project-based Enterprise: Characteristics

You can find a project-based enterprise typically in consulting, construction, small manufacturing or software companies. The characteristics of a project-based enterprise are:

• •Loosely structured operating groups
• •Rapidly changing structures in response to changing business opportunities
• •Hiring and deploying people for their skills
• •Personal and individual reward systems
• •Making individuals more important than roles

Project-based Enterprise: System Needs

The system needs for a project-based enterprise are:

• •Flexibility to represent and change organizational structures and work groups
• •Flexibility in defining and assigning roles to people
• •Ability to show multiple activities
• •Ability to define and manage business processes based on individuals’ competencies
• •Flexibility in the compensation management framework to handle individual compensation plans

 

Project-based Enterprise: Oracle Solution

The Oracle solution enables you to use a combination of Organizations and Jobs for the flexibility you need. You could:

• •Use Organizations for detailed reporting groups.
• •Use Jobs to define roles independent of any specific organization.  A person can change organizations, but keep the same job and assignments.
• •Use Elements to record time spent on specific projects.

Given these needs, you would probably use organizations and jobs to show how you assign and manage people. You can assign employees to these organizations on short notice while retaining their basic role or job.Typically, you would not define Positions. Positions require additional definition and maintenance, and do not reflect the flexible working environment found in this type of enterprise. 

Rule-based Enterprise: Characteristics 

You can find a rule-based enterprise typically in government agencies, education, health care, public sector, and non-profit agencies. The characteristics of a Rule-based enterprise are:

• •Highly structured operating groups
• •Posts exist independently of people
• •Positions are controlled, with detailed approvals for budgeting and reporting
• •Employees hired and assigned to specific positions
• •Rewards usually associated with the position
• •Roles usually more important than individuals

 

Rule-based Enterprise: System Needs

The system needs for a Rule-based enterprise are:

• •Ability to define and control positions independently of people
• •Ability to manage some information about positions across organizations
• •Ability to assign multiple people to one position or one person to many positions

 

Rule-based Enterprise: Oracle Solution

Positions enable more detailed management information and reporting than jobs alone. The Oracle solution allows you to use Positions to represent the detailed work structures you need. You could:

• •Use Organizations to show departmental level information.
• •Use Jobs to represent common types shared across all organizations.

Given these needs, you would use positions, organizations, and jobs to assign and manage people. Positions can hold more additional information than Jobs, for example, to manage fixed establishments of posts that exist independently of the employee assignment, it is best to use positions. 

Setting up Enterprise Work Structures

As a best practice in configuration, you can set up your enterprise’s work structures using Oracle HRMS Configuration Workbench as it simplifies the implementation of Oracle HRMS. It also reduces time, cost, and risk of ‘standard’ implementations.

The Configuration Workbench provides you with a central place to manage and perform your tasks when implementing Oracle HRMS. It:

• •Is a single point of access to the tools you require to perform a typical implementation of the applications
• •Has predefined questions for each product area's configuration, which you answer to build a typical configuration model
• •Has packaged Solution Sets, which consist of solution templates for specific functional areas 

Work Structure Components

Locations

Locations are the physical site where your employees work. You can define:

• •Local or international work sites
• •Locations specific to one business group or shared across all. You choose whether locations are global to all business groups or specific to one using the User Profile Option - HR:Cross Business Group.

In some legislations work locations determine taxability rules.You define locations for external organizations such as tax authorities, insurance and benefits carriers. 

Organizations

You can define as many separate organizations as you need within each business group. The separate organizations can be companies, operating units, establishments, departments or divisions. Organizations can be internal or external. Examples of internal organizations are HR Organizations, Finance department, Sales Unit, etc. and external organizations can be recruiting agencies and insurance carriers.

Organization Hierarchies

• •Use hierarchies to grouporganizations and to show management reporting lines. In a hierarchy each organization has one parent
• •Have unlimited number of hierarchies
• •Use hierarchies when running reports to include a group of organizations
• •Use hierarchies to define security
• •Use the Organization Hierarchy window to enable position control
• •Use hierarchies to set position control

Automatic Creation of Organizations

You can automatically create HR Organizations corresponding to company cost center combinations in General Ledger (GL) using the Synchronize Organizations functionality. If your enterprise has a close relationship between its financial structure and line management hierarchy, you only have to maintain your financial structure in GL and the corresponding line manager hierarchy is automatically synchronized. You can also enable the automatic creation of company cost center organizations if your financial cost centers are different to your HR organizations and you want to represent your cost centers as organizations.

The Synchronize Organizations functionality helps you in management reporting about financial information such as costs, revenues and expenses. You can consolidate this information by cost center manager.

Jobs and Positions

Jobs are generic roles within a business group. They are independent of any single organization. For example, the jobs ‘Manager’ and ‘Consultant’ can be in many organizations.

Position is a specific role, or function, that exists in one, and only one, organization. Positions show more management reporting detail than organizations alone. Position definition includes Job and Organization. Positions are typically used in Public Sector, Government, Education, Health, and any large enterprises to show management positions.

Security Based on Work Structures

With Oracle HRMS, you define the rules for who has access to personal information through a Security Profile.You define security profiles based on organization, organization hierarchy, and position hierarchies. You can create your own custom restrictions using work structure components such as jobs and positions. You can also configure the security restrictions to be user-based. 

Grades

Oracle HRMS enables you to use grades to record the relative status of employee assignments and to determine compensation and benefits, such as salary, overtime rates, and company car. You can define grades to distinguish different staff groups such as Management, Administrative, Technical.

People Groups

People Groups are internal groups of your employees, such as Pension group, Benefits group, and CarEligibility group. You define the structure of the information you record under People Groups to meet your business requirements.

Unions and Representative Groups

Unions and representative groups such as Employer or Bargaining Association (also called Bargaining Units in Oracle HRMS) enable you to represent employee agreement details. 

NOTE: FOR ALL PRACTICES RELATED TO HR I'VE CREATED THE FOLLOWING USER WITH THE FOLLOWING RESPONSIBILITIES