Case Study Core HR

Time- 5.5 – 6
Objective: To identify Business problems and find solutions
Hours

XX Telecom is a $5 Billion group operating in US. It is one of the fastest growing

enterprises in telecom domain. Currently it operates only from US and has investments in
other telecom companies operating in other countries. As US telecom market is almost
saturated, group is planning to increase their presence in other countries. They plan to set
up subsidiaries in other countries preferably fully owned. If local legislation prevents
setting up of fully owned subsidiary, they would prefer to operate with local partner as a
major stakeholder.

As of now their HR functions are quite disintegrated and manual. They plan to implement
a robust and scaleable solution to integrate HR functions and effectively to support their
aggressive expansion plans.

After thorough evaluation, group has zeroed down to Oracle HRMS, as product
evaluation team found the Oracle HRMS more complete, and at the same time they found
Oracle E-biz suite quite flexible to twist or customize to accommodate business
requirements.

Geographic Information
Enterprise’s corporate headquarter is located in New York, from where they support all
common functions such as Payroll. Apart from this they have four more offices, one each
in south, north, east and west to carry out marketing and service related activities.

Business Model
Company has primarily two lines of businesses, namely, Fixed Line and Mobile.
Enterprise has separate marketing and service departments to support respective lines of
businesses. Remaining functions are centralized. Company has following centralized
functions in place to support main lines of businesses.
• Human Resource department is primarily responsible for people management related
activities. They are responsible for deploying people in the organization and also to
support other functions to ensure smooth execution of day-to-day activities. HRD is
also responsible for addressing employee grievances. HRD is accountable for driving
performance appraisal process within the organization.
• Payroll department is primarily responsible for salary payment to employees. They
are also responsible for calculating taxable salary of employees based on the
declarations by Employees.
• Administration is responsible for day-to-day affairs of the company. Admin is
responsible for managing stationary, facilities, parking zone and other such areas.
• Training department is responsible for identifying training needs within the
organization and based on the needs identified, they need to arrange for trainings to
maintain company’s competitiveness in knowledge management.

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 • Purchase department is responsible for procurement. They need to ensure a quality
supply at the least price possible.
• Store is responsible for material receipt in the company and they are also responsible
for managing stock balances.
• Billing department looks after invoicing. All billing related queries are routed to
billing department. At times they are required to speak to customers to resolve billing
related queries.
• Customer Service department entertains all calls from customers. Customer Service
department is front facing department of the company, as they are the first point of
contact for customers. Based on the type of query, they need to follow up with other
departments to resolve customers’ queries.
• Finance department is responsible for all activities that involve money. They are
responsible for generating all financial statements and also for publishing in the
media.
• IT department is responsible for managing all software and hardware used in the IT
operations of the company. They are responsible for allotting laptop to each
employee.
• CEO’s office is responsible for managing company’s operations. They are the people,
who chalk out strategies of the company to achieve vision of the group.
• Projects organization is primarily responsible for executing projects, which are for fix
duration. One such project would be Oracle HRMS implementation. Hence all
consultants or contractors would be accommodated in projects organization and for
people from other departments secondary assignment would be created as long as
they work on the assigned project.

Roles and Responsibilities

Each department has executives to take care of day-to-day activities. They report to
manager who in turn is responsible for operations of the department.
As Project organization is responsible for executing projects throughout the organization,
most of the time they report to people from other departments, unless project manager is
also a consultant.
Company has two persons working in the capacity of vice president.
VP Marketing: This position is primarily responsible for sales and marketing throughout
the organization. All Regional Marketing Managers report to this position.
VP Operations: This position look after supply chain management and logistics of the
company. Customer Service Manager, Store Manager, Billing Manager, Administration
Manager, IT Manager and Purchase Manager report to this position.
President Human Resource: This position manages Human capital of the company. All
people related departments’ managers such as Training Manager, Payroll Manager and
HRD Manager report to this position.
President Finance: This position looks after all finance and treasury related operations of
the company. Finance Manager, Receivable Manager, Payable Manager, Costing
Manager and Budgeting Manager report to this position.
Company has two executive assistants in CEO’s office reporting directly to CEO. They
assist CEO in managing enterprise’s affairs.

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 Pay Scale
Currently, company has following levels in place to define pay range.
1. Executives
2. Managers
3. Presidents
4. CEO
Each of the above mentioned levels are further classified into sub levels. Each level has
minimum and maximum range of pay defined. CEO level approval is required to offer
out of the range pay to Employees.
Executives are classified on the sub level of 1 to 4. 4 is considered as the lowest cadre,
whereas 1 as the highest.
Managers are put on the sub level of 1 to 3. Managers are given performance linked pay
in their salary package.
Presidents are classified on the sub level of 1 to 3. Presidents are normally eligible for
some elite benefits like car allowance, Education allowance and food allowance. They are
also provided company-sponsored house.
CEO is always classfied as 1.
As per company policies, vice president position can be graded either on president level 3
or level 2. President position will always be graded on President level 1.

Costing and Budgeting

Based on the previous year’s performance and forecast, finance department comes up
with company budget. This budget finally drills down to each department manager. Each
department manager is required to manage cost within the allocated budget.
Finance department would require Cost Center and GL Code for each expense or income
item to be accounted in statements. Each department has been classified as cost center in
books of account.
Expenses emanating from department are directly attributed to one particular cost center
except Project Organization. As projects are carried out throughout the organization,
expenses incurred by Project Organization will have to be proportionately apportioned to
other departments based on nature of such expenses.

Skill Management
Company manages two levels skill on the scale of 1 to 5. First level talks about category
and the second level talks about the exact skill within the category. For example,
Category called Microsoft Office Suite can contain skills like Word, Excel, Power point,
etc.

Recruitment of Employees
On successful completion of recruitment process applicant is normally hired as
Temporary employee. All temporary employees are generally required to serve company

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 for duration of 6 to 12 months. If supervisor finds performance satisfactory, he or she
recommends HR department to confirm employee in the organization as permanent
employee.
For Executive cadre temporary period to be served is 12 Months.
For Manager cadre temporary period to be served is 9 Months.
For President cadre temporary period to be served is 6 Months.

Recruitment of Contractors
To support ad hoc tasks or projects, company hires contractor or consultants through
consulting or placement agencies. They are generally not on the company’s payroll. At
the end of the contract period, HR department with the consent of immediate supervisor
ends their placement.

People Management
Generally, HR department manage following information about company’s employees.
Human Resource department might not directly enter information, but they are
responsible for all data associated to person’s record.
• Personal Information: Name, Date of Birth, Gender, etc.
• Address Details: At least one address needs to be primary
• Phone Details: Home, Work and Mobile
• SSO username: To be synchronized with LDAP directory. Users will generally login
with this SSO username and not HR username.
• Contact Details: Contacts of Person and relationship with each of them
• Asset Details: Admin and IT department generally enter details of all assets allotted
to employees or contractors.
• Group Insurance Details: All members insured in company group insurance scheme.
• Team Details: With each department there could be multiple teams to manage
operations effectively. HR is also responsible for maintaining information about
teams.
• Pension Details: Company gives an option to employees to manage pension either
with company trust, other private trust or government body. HR manages information
regarding pension also.
• Ex- Employee Details: The HR users would need to access ex-employee or future
dated employee records and details such as their job title, position, Organization,
Salary details, etc, at the time of their service.

Assignments
Company would like to identify following types of assignments.
Active: As long as person is associated with the company.
Suspend: Person’s assignment is active, but temporarily he is on some other assignment.
Retired: Person is terminated but still associated with the company for deferred retrial
benefits, though not working for company. Actual termination date would be some time
in future.
End: Person’s assignment is ended either with the group or with the organization.

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 Other: All other assignments, for example, on long term sickness leave, company change
assignment status to other.

Exit Strategy
Generally supervisor initiates termination of subordinates. It goes to HR department for
approval. HR department generally validates the exact cause of leaving reason. Company
is interested in tracking following termination dates.
• Notified date in case of employees
• Actual termination date
• Last standard process date
• Final process date
At the end of every quarter company draws a report on termination to identify causes of
termination. Company is interested in identifying following reason.
• Better Pay
• Better Job
• Voluntary Termination
• Dissatisfied with Company
• Dissatisfied with Supervisor
• Contractual Obligation
• Retired
• Others

Solution

Business Group
As clearly indicated in the case study, currently group operates only from US. So as of
now we just need to create one business group named XX Telecom (US) to cater to US
legislation.
Before we proceed with Business Group creation, we need to create requisite flexfields.

Job and Position Flexfield

As mentioned in the roles and responsibility section, company has following types of
roles in each department.
Executive
Manager
President
CEO
So, we need to have one segment in Job Key Flexfield (KFF) to talk about different roles
existing in the company. Apart from all above-mentioned roles, we can also create one
more role called Consultant for External Consultants being hired in Projects organization.

The structure of Job Key Flexfield (KFF) is given below.

Value Sets
Value Set Name Format Type Maximum Size Validation Type
Job Name Char 40 Independent

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 Values
Values for Job Name
CEO
President
Manager
Executive
Consultant

Segments
Number Name Window Column Value Set
Prompt
20 Name Name Segment 1 Job Name

It can be clearly inferred from the case that roles are independent of people. They clearly
have proper reporting structure in place. Every time person leaves organization, new
person needs to be hired to replace leaving person. This necessitates implementation of
positions as reporting hierarchy is primarily driven by positions and not by roles only.
Before deciding structure of Position Key Flexfield, note that Marketing and Service
departments are further divided based on regions, namely east, west, north and south.
Rests of the departments are managed centrally. So for Marketing and Service
departments, we need to create positions region wise.
As far as President cadre is considered, there are following four positions required, who
take care of more than one department.
VP Marketing
VP Operations
President Human Resource
President Finance

The recommended structure would be:

Value Sets
Value Set Format Type Maximum Size Validation Type
Name
Position Name Char 50 Independent
Position Char 50 Independent
Region

Values
Position Name Position Name Position Name Position Region
HR Executive HR Manager VP Marketing South
Payroll Executive Payroll Manager VP Operations North
Admin Executive Admin Manager President HR East

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 Training Training Manager President Finance West
Executive
Purchase Purchase Manager CEO Corporate
Executive
Stores Executive Stores Manager
Billing Executive Billing Manager
Customer Service Customer Service
Department Department
Executive Manager
Finance Executive Finance Manager
IT Executive IT Manager
CEO’s Office Marketing
Executive Manager
Marketing Service Manager
Executive
Service Executive

Segments
Number Name Window Column Value Set
Prompt
10 Position Position Name Segment1 Position Name
Name
20 Position Position Segment2 Position
Region Region Region

Grade Flexfield
As per the information given in the pay scale section, the information can be captured
using grade structure. The following grades can be identified.
Executive (Level 1 to Level 4)
Manager (Level 1 to Level 3)
President (Leave 1 to Level 3)
CEO (Level 1)
The structure would look like:

Value Sets
Value Set Name Format Type Maximum Size Validation Type
Grade Name Char 50 Independent
Grade Level Char 05 Independent

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 Values
Grade Name Grade Level
Executive 01
Management 02
President 03
CEO 04

Segments
Number Name Window Column Value Set
Prompt
10 Name Name Segment1 Grade Name
20 Level Level Segment2 Grade Level

Competence Flexfield
As mentioned in the case, skills contains two levels, first the category and the second an
exact skill. Skills are maintained on the scale of 5. So the flexfield structure would look
like,

Value Sets
Value Set Name Format Type Maximum Size Validation Type
Competence Category Char 50 Independent
Competence Name Char 50 Independent

Values
Competence Competence
Category Name
Oracle HRMS Functional
MSOffice Technical
Soft Skill Word
Excel
PowerPoint
Leadership
Communication
Team
Management

Segments
Number Name Window Column Value Set
Prompt

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 10 Category Category Segment1 Competence
Category
20 Name Name Segment2 Competence Name

Costing Allocation Flexfield

As required by finance department cost allocation flexfield would primarily contain two
segments namely cost center and GL code. We need to use qualifiers to allow values to
be entered at organization and assignment levels. Apart from these two levels, we need to
enable qualifiers to enter values at Element Link level.
The structure would look like (values for GL code are dummy in nature, you can use
other values for case study.):

Value Sets
Value Set Name Format Type Maximum Size Validation Type
Cost Center Char 10 Independent
GL Code Char 10 Independent

Values
Cost Center GL Code
Value Description Value Description
000 HR 0001100 Account
Receivable
100 Payroll 0001110 Other Receivable
110 Admin 0001120 Bank
120 Training 0002100 Short Term Debt
130 Purchase 0002110 Account Payable
140 Stores 0003100 Revenue from
Operations
150 Billing 0003110 Other Revenue
160 Customer Service 0004100 Salaries
Department
170 Finance 0004110 Labor Expenses
180 IT 0004120 Sales Expenses
190 CEO’s Office 0004130 Other Expenses
200 Marketing 0004310 Income Tax
210 Service
220 Company

Segments
Number Name Window Column Value Set
Prompt
10 Cost Center Cost Center Segment1 Cost Center

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 20 GL Code GL Code Segment2 GL Code

Qualifiers
Qualifier Cost Center GL Code

Payroll Y
Element Y Y
Organization Y
Assignment Y
Element Entry Y Y
Balancing Y Y

People Group Flexfield

People group is primarily used for capturing extra information at the assignments level,
which can be used to group people. As indicated in the case study, company would like to
maintain team and pension related information for person’s each assignment. People
group can be used to capture such information, which can further help in establishing
eligibility criteria for certain types of elements.
The structure would be:

Value Sets
Value Set Name Format Type Maximum Size Validation Type
Team Char 50 Independent
Pension Type Char 30 Independent
Pension Union Char 50 Independent

Values
Team Pension Type Pension Union
Finance - Costing Company State
Finance - Personal Trust
Budgeting
Finance - Core None
Finance
Marketing - Sales
Marketing - Core
Marketing
Training and
Development
HR – Core HR
HR – Grievance
Cell
IT – Hardware
IT – Networking
IT – Software

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 IT – Solution
Admin - Stationary
Admin – Others
Corporate
Payroll

Segments
Number Name Window Column Value Set
Prompt
10 Team Team Segment1 Team
20 Pension Pension Segment2 Pension Type
Type Type
30 Union Union Segment3 Pension Union

Business Group Creation

Once all key flexfields are defined, one can proceed with Business Group creation. Post
business group creation, one is required to create HRMS Manager responsibility and set
profile options appropriately to access data of the newly created business group.

Dynamic Security for Ex-Employee and Future-dated employee records:

Navigate to the system administrator responsibility, navigate to system profiles and query
the profile "HR: Access Non-Current Employee Data". This value is always defaulted to
"No". Change the setting to "Yes" to retrieve records of Ex-Employees and future dated
employees

Personal Analysis Key Flexfield

Apart from capturing all of the above-mentioned information, IT information captures
details about computers issued to employees. We can configure Computer Details SIT to
capture details about computers issued to employees.
The structure would be:
Value Sets

Value Set Name Format Maximum Size Validation Type

Type
Computer Make Char 30 Independent
Computer Model Char 30 Dependent on
Make
Computer Purchased Date Date None
Warranty In Months Number 3 None (Between 1
to 99)

Values

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 Computer Make Computer Model
(Dependent on
Make)
x200
x200s
Lenovo
x300
x301
D430
D530
Dell
D630c
D830
HP500
HP520
HP
HP540
HP550

Segments
Number Name Window Column Value Set
Prompt
10 Make Make Segment1 Computer Make
20 Model Model Segment2 Computer Model
30 Purchased Purchased Segment3 Computer Purchased Date
Date Date
40 Warranty Warranty Segment4 Warranty In Months
In Months In Months

Extra Person Information

As indicated in People Management section of the case study, company has tied up with
insurance company to provide insurance to its employees and their family members under
group insurance schemes. In this regards, company needs to maintain information about
all people insured under this scheme.
To achieve this we can think of Extra Information Type (EIT) at the person level.
The structure would be:

Value Sets
Value Set Name Maximum Size Validation Type

Relationship With Employee 30 Independent

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 Values
Values for Relationship
with Employee
Spouse
Father
Mother
Child1
Child2

Segments
Numbe Name Window Column Value Set
r Prompt
10 Name Name of the PEI_INFORMATION1 100 Characters
Member
20 Relationship Relationship PEI_INFORMATION2 Relationship With Employee
with
Employee
30 DOB Date of PEI_INFORMATION3 HR_US_DATE_11
Birth
40 DOE Date of PEI_INFORMATION4 HR_US_DATE_11
Enrollment

Person Types
From recruitment section it can be inferred that company has two types of employees
Permanent and Temporary. Apart from these types, company does hire contingent
workers primarily in Projects organization. So, we would require following person types
at minimum,
System Person Type User Person Type
Employee Permanent
Employee Temporary
Contingent Worker Consultant
Applicant Applicant
Ex-employee Ex-employee
Ex-contingent worker Ex-contingent worker
Ex-applicant Ex-applicant
Apart from above-mentioned person types, company will be using seeded person types
like contacts, external and so on.

Assignment Statuses
To meet company’s requirement regarding assignment tracking (Assignments section),
we need to configure following assignment statuses.

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 User Status System Status
Active Assignment Active Assignment
Suspend Assignment Suspend Assignment
Active Contingent Active Contingent
Assignment Assignment
Suspend Contingent Suspend Contingent
Assignment Assignment
End End
Retired Active Assignment
Apart from above-mentioned assignment statuses, company will be using seeded
assignment statuses for detailed reporting.

Organizations
We need to create following organizations representing departments. We need to classify
all of these departments as HR Organization, so that we can use these organizations in the
assignment window to deploy people in these organizations.
Human Resources, Payroll, Administration, Training, Purchase, Store, Billing, Customer
Service, Finance, IT, CEO’s Office, Projects, Marketing and Service.

Jobs, Positions and Grades

Before employees can be hired in the Organization, we need to define jobs, positions and
grades. Earlier, we configured Key Flexfields, but we will not be able to use them in
Assignment window, unless we define them using work structure windows.

Grades
Number Name (Grade
Name.Grade Level)
10 Executive.01
20 Executive.02
30 Executive.03
40 Executive.04
50 Manager.01
60 Manager.02
70 Manager.03
80 President.01
90 President.02
100 President.03
110 CEO.01

Jobs
Name Valid Grades
CEO CEO.01
President President.01
President.02

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 President.03
Manager Manager.01
Manager.02
Manager.03
Executive Executive.01
Executive.02
Executive.03
Executive.04
Consultant

Positions
Given below are positions for HR and Southern Marketing region. On these lines you can
create remaining. Do consider regions while designing positions for marketing and
service areas. Also note President.02 and 03 grades are applicable only for Vice President
positions and not for President positions.
Date Effective Name Type Organizat Job Valid Grades
(Division.Region) ion
HR Pooled Human Executive Executive.01
Executive.Corporate Resources Executive.02
Executive.03
Executive.04
HR Single Human Manager Manager.01
Manager.Corporate Incumbent Resources Manager.02
Manager.03
President Single Human President President.01
HR.Corporate Incumbent Resource
Marketing Pooled Marketing Executive Executive.01
Executive.South Executive.02
Executive.03
Executive.04
Marketing Single Marketing Manager Manager.01
Manager.South Incumbent Manager.02
Manager.03
VP Single Marketing President President.02
Marketing.Corporate
Incumbent President.03

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 Termination Reasons
Lastly, we need to configure following termination reasons for generating necessary
reporting. Refer to Exit Strategy section for more details.
Termination Reasons
Better Pay
Better Job
Voluntary Termination
Dissatisfied with Company
Dissatisfied with Supervisor
Contractual Obligation
Retired
Others

Well done, you have successfully configured Core HR as per company’s requirements.
Now HR people are all set to hire people in the organizations.

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