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Organizational Management
Purpose
The Organizational Management component enables you to:
1. Depict the organizational and reporting structures in your company as well as
your current organizational plan.
2. Analyze your current organizational plan according to the evaluation paths of
your choice, and, based on this, to plan workforce requirements and personnel
costs
3.Create additional organizational plans as planning scenarios in order to simulate
new structures in the context of business process reengineering
4.Create effective workflow management through access to the reporting structure.
Organizational Managements object-oriented design provides you with a number of
organizational objects with which you create organizational plans.

At the center of an organizational plan are organizational units (departments, for

example) arranged in a hierarchy that mirrors the structure of your enterprise.
Other organizational units such as positions (sales administrator, for example)
depict your enterprises reporting structure. Objects such as jobs, tasks, and
work centers are the building blocks of your organizational plan.
By relating objects via relationships, you create a network that mirrors your
organizational and reporting structures. In addition to this, you can create
relationships to objects from other components (cost center, employee or user,
for example).
This functional organizational plan differs from the administrative enterprise
structure and the personnel structure whose elements are relevant to Payroll
Acccounting (company code, personnel subarea or employee group, for
example). These structures are found in their corresponding components.
These functional and administrative structures come into contact if a person is
assigned to an organizational plan (as the holder of a position) as well as an
enterprise or personnel structure (that is, to a personnel subarea etc.).
Implementation Considerations
Organizational Management is the basis for additional Personnel Planning and
Personnel Development components and functions as well as for SAP Business
Workflow. The fact that these components can be integrated should be taken
into account when you are installing them.
Organizational Structure:
Organizational structure can be created in three procedures.
1.Simple Maintenance
2.Expert Mode / Detailed Maintenance
3.Organization and Staffing
Note: If we create organizational Structure in any procedure, the same
structure
reflects in other two procedures.If we create organizational structure
in Simple maintenance and Organization and Staffing,the relationship

between the objects are assigned by the system. Where as in detailed

Maintenance the user has to assign the relationship code.

The relationship between two objects are expressed in three digit

numeric characters.
Each and every relation can be expressed in two ways.
1. Top down relation which is indicated with B
2. Bottom up relation which is indicated with A
The relationship codes can be seen through transaction code OOVK.
A few relationships are as follows:
Relationship Code
Relationship top down

Relationship Bottom up

001
divided into

Is a sub division of

Is sub

002
supervisor of

Reports (line) to

Is line

003
Incorporates
004
supervisor of
of

005

006
substituted by
007
Is described by

Belongs to/ Is subordinate to

(Disc)

Is Disc

Is subordinate to
Substitutes for
Describes

008
Holder

Holder

009
Sucessor

Sucessor

010

Substitute

Is supervisor
Is

Substitute
011
center assignment

Cost center assignment

012
by

Manages

Cost
Is managed

Organizational Objects
Position - S
Task Group - TG
Org Unit - O
Cost Center - K
Job - C
Work Center - A
Person - P
Task - T
Org Object Org Key
Organizational Structure: It contains organizational objects /elements. These
are called building elements.
If we create any organizational object, System will assign a eight digit numeric
number, which is called unique Number.
1. Organizational Unit: Represents a functional unit in your enterprise, Human
Resources department, for example. According to how tasks are divided up
within an enterprise, this could be a department, group or project team, plant,
for example. Organizational units differ from other units in an enterprise such as
personnel areas, company codes, business areas etc. These are used to depict
structures (administration or accounting, for example) in the corresponding
components.

Kinds of organizational units

A). Main Organizational unit / Root organizational unit: Whatever the

organization we create for the first time is called Main organizational unit.
B). Sub organizational unit: Under Main org. unit whatever we create is called
sub org.units.

2. Job: Jobs, in contrast, are classifications of functions in an enterprise

(administrator, for example), which are defined by the assignment of
characteristics. Jobs serve as job descriptions, that apply to several positions
with similar tasks or characteristics. Jobs are used as templates to create
Positions, that means to say without a job we cant create a position.
Example: Manager
Engineer
Consultant
Designer
Administrator
3. Position: Represents a post that can be occupied by a person (employee) in
the staff assignments of an organizational unit, purchasing administrator, for
example. Positions differ from jobs. A job is not concrete but rather the basis for
the creation of various positions with similar tasks and characteristics. .
Positions are created based on jobs; it means to say without a job we cant
create a Position.

1. Simple Maintainence Transaction Codes

Create - PPoc_old
Change - Ppom_old
Display -Ppos_old
2. Expert Mode:
PO10 Organizational Unit
PO03 Job
PO13 Position
PO01 Work Center
PFCT Task Catalog

PP01 - General
3. Organization & Staffing
PPOCE Create
PPOME Change
PPOSE - Display
1. Simple Maintainence:
Use : Simple Maintenance in Expert Mode is one of the methods you can use
to develop and model organizational plans in the component Organizational
Management with speed and efficiency.
In addition to mapping your current organizational and reporting structure,
Simple Maintenance gives you flexible tools to plan and model future structural
changes well in advance.
Although Simple Maintenance is available to all users of Organizational
Management, it was originally designed to meet the needs of SAP Business
Workflow users.
SAP Business Workflow users do not need all the functions available in
Organizational Management. For this reason, the original concept behind
Simple Maintenance was to provide a tool that allows users to build and
maintain organizational plans, with speed and simplicity.
Features: For Organizational Management users, Simple Maintenance is best
used to establish the basic framework in organizational plan development.
Simple Maintenance uses a tree structure, which allows you to create a basic
framework for organizational plans, using streamlined procedures. In this way,
you can create your organizational and reporting structures step by step.
There are three main areas in Simple Maintenance. Each area contains
particular maintenance functions, depending on whether you want to edit
organizational structures, staff assignments or task profiles.
For complete, detailed editing of individual organizational objects in your
organizational plan (editing particular positions or organizational units, for
example), we recommend that you switch to Infotype Maintenance . Workflow
users, who do not require all HR functions, should use Simple Maintenance.

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