Human Capital Management Overview

Human Capital Management (HCM)

• HCM encompasses practices for recruiting, managing, and developing an organization's workforce.
• SAP HCM software is integral for optimizing HR tasks and supporting organizational objectives.
• Employee expectations have evolved, emphasizing experiences in recruitment and retention.

HCM Organizational Structure

• Organizational structure illustrates hierarchies and employee responsibilities, critical for workflow understanding.
• Three components of the HCM organizational structure: Enterprise, Personnel, and Organizational Plan.

Enterprise Structure

• Represents formal and financial structures, necessitating every employee's assignment.
• Key units include:
  • Client: Independent system environment.
  • Company Code: Legal accounting unit.
  • Personnel Area: Company area differentiated for administration, time management, and expenses.
  • Personnel Subarea: Further division within a personnel area.

Personnel Structure

• Reflects an employee's position, characterized by:
  • Employee Group: Categories like active employees, retirees.
  • Employee Subgroup: Specific classifications within groups, like industrial or commercial occupations.

Organizational Plan

• Focuses on employee functions with each element represented as an object.
• Includes:
  • Organization Unit: Functional/regional grouping.
  • Position: Assigned to departments.
  • Person: Employees filling positions.
  • Cost Center: Financial tracking linked to positions.
  • Job: General descriptions of roles.

HCM Master Data

• Consists of essential employee identifiers and data management structures in SAP HCM.
• Personnel Number: Unique identifier with up to eight digits.
• Reference Personnel Number: Maps contractual relationships for concurrent employment.
• InfoTypes: Collections of related data fields structured by business needs, each identified by a four-digit ID.

HCM Processes

• A range of processes unified under SAP HCM, including:
  • Organizational Management: Models corporate structure to analyze workforce and plan costs.
  • Personnel Administration: Maintains personnel data for reporting and integrity checks.
  • Recruitment: Focused on acquiring qualified personnel through internal and external channels.
  • Personnel Development: Aims to enhance employee skills and qualifications for future needs.

Recruitment Process

• Comprises stages from job vacancy to hiring, enhancing applicant database management.
• Distinguishes between global recruitment and vacancy-specific processes, maintaining applicant statuses.

Personnel Development and Talent Management

• Personnel Development: Plans training based on qualifications and skill deficits, facilitated by comparison processes like profile matchups.
• Talent Management: Involves career and succession planning, generating development plans for employee growth.

Key Outcomes of the HCM System

• Ensures HR can adapt to evolving workforce demands, fostering better recruitment, administration, and development of talent through structured processes and tools.

This quiz covers the fundamental concepts of Human Capital Management (HCM), including its practices in recruiting, managing, and developing the workforce. It also delves into the organizational structure essential for understanding employee responsibilities and workflow. Test your knowledge of SAP HCM software and the various components that form the HCM structure.