OnePurdue Initiative

Concepts of Organizational Managementand Enterprise Structure

Facilitated by Sheryl Gick and Susan Newton,

May 18, 2006

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HR Concepts Overview

The OnePurdue system will introduce newconcepts and terminology to clients.

Clients are eager to learn about the newconcepts.

The HR team will be hosting a series ofpresentations to help future users of thesystem learn new concepts andterminology before attending formaltraining sessions.

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HR Concepts Overview

The presentations are strictly an overviewof new terminology and concepts.

The presentations do not replace formalclassroom training.

The presentations will not fully detail thenew business processes.

The presenters will focus strictly on thesession topic.

Questions related to future presentationswill be deferred to the future session.

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Scheduled Presentations

May 18, 2006: Concepts of OrganizationalManagement Objects and Enterprise Structure

June 1, 2006: Concepts of PersonnelAdministration

June 15, 2006: Concepts of ConcurrentEmployment

June 29, 2006: Concepts of Time & LeaveManagement

July 20, 2006: Concepts of Payroll

July 27, 2006: Concepts of Benefits

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Let’s Get Started

Today, we’re discussing Concepts ofOrganizational Management andEnterprise Structure.

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What is OrganizationalManagement?

Organizational Management creates astructure that illustrates:

• WHAT departments or organizational unitsexist at Purdue

• WHAT positions are linked to theorganizational units

• WHAT jobs and job attributes are linked tothe positions

• WHAT position an employee holds

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Objects in OrganizationalManagement

Concept that each element in anorganization represents a stand-aloneobject with individual characteristics.

The objects are created and maintainedseparately, then linked together throughrelationships to form a structure.

The structure provides enhancedreporting and human resource forecastingcapabilities.

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Object Oriented Design

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Basic OM Building Blocks

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Organizational Units (O)

Organizational units describe the differentbusiness areas within the University.

Organizational units may be created andlinked to one another within the system toform a hierarchical structure of theorganization.

The structure may be used to create anorganizational plan.

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Organizational Units (O)

Organizational units provide thestructure to which positions will belinked.

A position may be linked to only oneorganizational unit.

An organizational unit may incorporatemultiple positions.

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Organizational UnitsRelationships

Within the Organizational Managementmodule, relationships are establishedbetween objects.

The relationships between objects can bereciprocal or in only one direction.

Relationships between standard objectsare pre-defined and should not bechanged.

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Organizational UnitRelationships Organizational unit relationships include

the following:• Org Unit to Org Unit• Org Unit to Position• Org Unit to CIP Code• Org Unit to Faculty POC Code• Org Unit to Personnel Org Code• Org Unit to Affirmative Action Org Code• Org Unit to BA School Org Code• Org Unit to BA Cluster Org Code• Org Unit to Cost Center

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Cost Centers (K)

Cost Centers are maintained in FinancialAccounting.

Each org unit will have a relationship to acost center.

The org unit will have either a master costcenter assigned or will inherit a mastercost center from the supervising org unit.

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Org Units & Cost Centers

The master Cost Center, in combinationwith a fund, will be used as the defaultpayroll account for the Org Unit.

The master Cost Center will ONLY beused if the cost distribution data for anemployee is invalid at the time of payrollposting.

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Org Units & Cost Centers

The master Cost Center for theOrganizational Unit will also be usedduring the annual budget process.

The master Cost Center will be used toextract employees into the appropriatebudgeting groups.

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Org Unit Conversion

All HR Organizational Units will beconverted to support the Financial go-livein October 2006.

At conversion, the OnePurdue team willconvert both the traditional departmentsas well as the projects established in eachdepartment.

Positions will only be converted into thetraditional departments.

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Organizational Units

Let’s look at a sample organizationalstructure in the new system.

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Jobs (C)

Jobs are general classifications orgroupings for sets of tasks or functionsan employee must perform.

Clerical, Service, and A/P jobs are definedby Job Interest Codes (JIC) and JIC Titles.

Jobs for other staff groups will havenewly defined codes.

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Job Relationships

Job relationships include the following:• Job to Title• Job to Position• Job to Exemption Status• Job to EEO Code• Job to AAP code• Job to Pay Grade• Job to Workers’ Comp Code• Job to Job Group• Job to Job Family• Job to Staff Group• Job to Census Code• Job to Budget Group Code• Job to Budget Staff Group

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Job Relationships

All positions linked to a job will inherit allof the relationships linked to the job.

The relationships will facilitate reportingand analysis.

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Positions (S)

Positions are specific instances of jobs inorganizational units.

Positions are held by persons.

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Positions (S)

Positions must exist in the appropriateorganizational units before employeescan hold the position.

All employees, even undergraduatestudents and faculty, must have positionsestablished before personnel actions cantake place.

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Management of Positions

In the new system, we will managepositions as follows:• One-to-One Positions

• Grouped Positions

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1-1 Positions

Only one employee will hold the position.

The position title will be unique to theposition.

1-1 positions will allow position-to-position reporting relationships, thusfacilitating future workflow.

Clerical, Service, Admin/Professional, andTenured/Tenure Track Faculty positionswill be managed as 1-1 positions.

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Grouped Positions

Multiple employees will hold the sameposition.

The position title will be defaulted fromthe job title. No capability to provide aunique title for the employee.

Undergraduate students, graduatestudents, limited term lecturers, etc. willhold grouped positions.

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Chief Positions

Positions designated as “chiefs” will begranted Manager Self Serviceauthorization through the portal.

Chiefs will be able to display data aboutall the employees in their organizationalunit.

Only one chief per organizational unit ispermitted.

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In case you’re wondering…

We will no longer have an “intelligent”position code.

Various fields in the new system willcontain the data we used to find in theposition code. Examples:• Job will define faculty rank• Pay grade will define position level• Tenure will be captured on a Faculty infotype• Employee Subgroup will define the term of

appointment.

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New Significance forPositions

Positions will carry Enterprise andPersonnel Structure values.

These structure values are usedextensively in payroll, time, and benefitprocessing rules.

We’ll review Enterprise and PersonnelStructure values later in this presentation.

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Positions

Let’s look at positions in the new system.

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Persons (P)

Persons are objects that hold positionswithin the organizational structure.

In other words, persons are theemployees in each organizational unit.

Persons are linked to the organizationalstructure via their assignment to aposition.

Information for persons is maintained inthe Personnel Administration modules ofthe system.

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OrganizationalManagement Roles

Org Management Processor: Create,display, change, delete data related to jobsand positions. Basic reporting capabilities.

HR Compensation Analyst: Create, display,change, delete data related to jobs andpositions. Enhanced reporting capabilities.

Organizational Structure Analyst: Create,display, change, delete data related toorganizational units. Enhanced reportingcapabilities. Configuration capabilities.

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Enterprise Structure

Next, we’ll spend a few minutesdiscussing Enterprise Structure.

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Enterprise Structure

In the new system, certain values arestored in the system that are critical toHR and Payroll processing.

In this section of the presentation, we willdiscuss the following key structures:• Enterprise Structures

• Personnel Structures

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Subdivision of Employees

Enterprise and Personnel structuresprovide the means to subdivideemployees into unique groups forpayroll, time, and benefit processingpurposes.

The structure values are initiallyestablished on the position and may bedefaulted or changed when assigning anemployee to a position.

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The Significance ofEnterprise & Personnel Structures

The structure values are used extensivelyin payroll, time, and benefit processingrules.

The structure values are used extensivelyby financial components of the newsystem.

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Structure Values Storedon Positions

Enterprise and Personnel structure valuesare stored on positions.

When positions are created by the HRCompensation Analyst, the appropriatestructure values will be selected andstored for the position.

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Employee Assignments

At the time that an employee is assigned toa position, the employee will inherit thestructure values from the position.

The values will default or drive thefollowing information for the employee:• Payroll area assignment• Eligibility for accruals (vacation, sick leave, etc.)• Eligibility for specific wage types (salary, hourly,

administrative adjustment, etc.)• Benefit program groupings• GL account assignment for payroll postings• Recurring base budget assignment & tracking

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Changing Defaulted Values

If the values defaulted from the positionare incorrect, the structure values may bechanged on Infotype 0001,Organizational Assignment.

Especially with concurrently employedstaff, the structure values will requirecareful oversight!

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Enterprise StructureOverview

The Enterprise Structure is made up ofthe following elements:• Client

• Company Code

• Personnel Area

• Personnel Subarea

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Client

The client is an independent unit of thesystem.

It is represented by a three characteralphanumeric code.

Ex: Client 100 is the productive client,Client 200 is the test client, etc.

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Company Code

The company code is the highest level ofthe enterprise structure within the client.

It represents an independent company.

The company code is established in thefinancial modules of the new system.

The University has only one companycode: PUR

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Personnel Area

The personnel area represents asubdivision of the company code.

The University has established thefollowing personnel areas:• Calumet

• IPFW

• North Central

• West Lafayette

• IUPUI

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Personnel Subarea (PSA)

The PSA represents a subdivision of thepersonnel area.

Within each personnel area, theUniversity has a variety of employees.The PSA will be used to create thefollowing subdivisions of employees:• Pay with Benefits• Pay without Benefits• Non Pay with Benefits• Non Pay without Benefits

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Overview of the PersonnelStructure

The Personnel Structure is made up ofthe following elements:• Employee Group

• Employee Subgroup

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Employee Group (EG)

The employee group is used to classifyemployees into specific groups thatrequire unique processing for pay, time,and benefits.

B&FP will use employee groups tofacilitate management of the recurringbase budgets.

GL accounts for financial postings will bederived from a combination of employeegroups and wage types.

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Employee Group (cont.)

The employee group will generatedefaulted values for the employee.• Payroll area

• Benefit groupings

• Accrual eligibility

The employee group can be used forreporting purposes or as a criteria forbusiness rules.

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Employee Subgroup (ESG)

The Employee Subgroup (ESG) is used tocreate subdivisions within the employeegroup.

The University will use the ESG tosubdivide employee groups into thefollowing categories:• Exempt versus Non-Exempt

• 9, 10, 11, 12 month appointment

• FY, AY, Biweekly, or Non-Pay

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Conversion of Enterprise &Personnel Structures

As employees are converted intopositions in the new system, theappropriate enterprise and personnelstructure values must be assigned.

The following slides discuss generalconversion practices.

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Converting Personnel Area

Personnel area = campus location.

Conversion routines will determine thedepartment/campus in which theposition resides and establish theappropriate personnel area.

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Converting PersonnelSubarea

Personnel subarea = Pay with or withoutBenefits, Non Pay with or withoutBenefits.

The conversion routines will use acombination of data from Beneflex andPayroll to determine the appropriatepersonnel subarea for the position.

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Converting Employee Group

Employee group will be converted using amapping between the existing positioncode and the employee groups.

Some employee groups (ex: ResidenceHall Counselors) will require carefuloversight since the position code is notunique.

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Converting EmployeeSubgroup

Employee subgroup will be converted bymatching the current exemption status andterm of appointment to the appropriateemployee subgroup.

All exempt positions containing a “10” inthe position code will be converted to the9 Month AY Exempt subgroup.

All exempt positions containing a “12” inthe position code will be converted to the12 Month FY Exempt subgroup.

After initial conversion, we will migrateappropriate positions to the 9, 10, or 11Month FY Exempt subgroups.

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Maintenance of Enterprise& Personnel Structures

The structures are the backbone of HRand Payroll processing.

The structures, although used byfinancial modules in several instances,are owned by Human Resources.

HR will need to maintain appropriatecontrol and vigilance over the use of thestructure.

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Changes to Enterprise &Personnel Structures Structures are used extensively in

processing rules for payroll, time, andbenefits.

Any changes to structures will requiresignificant planning and work.• Rewrite system rules.• Modify positions and/or employee assignments.• Modify payroll posting rules.• Modify recurring base rules.

Grandfathering specific employees forspecial processing will become extremelydifficult.

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Enterprise & PersonnelStructures

Let’s look at the structure values storedon positions and assignments.

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Resources

To learn more about Enterprise andPersonnel Structures, click to thefollowing URL:

http://www.onepurdue.purdue.edu/resources/onepurdue_hr_concepts_education_datalinks.shtml

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Questions?

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Evaluation of Session

An evaluation form is available at the following URL:http://www.onepurdue.purdue.edu/resources/onepurdue_hr_concepts_education_datalinks.shtml

Please take a few minutes to complete the evaluation form andprovide feedback about the session.

Your feedback will be used to improve future Concepts sessions.

Thank you for participating!