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02.01define Grades
02.01define Grades
02.01define Grades
Define Grades
Instructor Guide
CONTENTS
Objectives ................................................................................................. 1
Grades Setup and Maintenance .................................................................... 2
Defining Grades ......................................................................................... 4
Grades ................................................................................................... 5
Grade Steps ............................................................................................ 6
Example of Grades with Steps ................................................................... 7
Example of Grades without Steps ............................................................... 8
Grades and Sets ...................................................................................... 9
How Grades Work with Jobs and Positions ................................................. 10
How Grades Work with Assignments and Employment Terms ...................... 11
Instructor Note: Activity Timing ............................................................... 12
Student Activity: Creating a Grade ........................................................... 13
Activity 1 Introduction: Creating a Grade .................................................. 14
Activity 1: Creating a Grade .................................................................. 15
Defining Grade Rates ................................................................................ 17
Grade Rate Values ................................................................................. 18
Lookups for Grade Rates ......................................................................... 19
Adding Rates to Grades .......................................................................... 20
Grade Rates Example 1 .......................................................................... 21
Grade Rates Example 2 .......................................................................... 22
How Grades, Rates, Sets, and Legislative Data Groups Work Together.......... 23
How Grades and Grade Rates Work with Compensation and Payroll .............. 24
Example of Grades with Rate Ranges........................................................ 25
Instructor Note: Activity Timing ............................................................... 26
Student Activity: Creating a Grade Rate .................................................... 27
Activity 2 Introduction: Creating a Grade Rate ........................................... 28
Activity 2: Creating a Grade Rate ........................................................... 29
Defining Grade Ladders ............................................................................. 31
Grade Ladders ....................................................................................... 32
Ladders with Grades ............................................................................... 33
Ladders with Steps ................................................................................. 34
Instructor Note: Demo Timing ................................................................... 35
Demonstration: Changing Profile Option Settings ......................................... 36
Review Question 1.................................................................................... 38
Review Question 2.................................................................................... 39
Review Question 3.................................................................................... 40
All Questions and Answers ......................................................................... 41
Lesson Highlights ..................................................................................... 42
Lesson Highlight Details .......................................................................... 43
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Objectives
After completing this lesson, you should be able to:
Define grades
Define grade rates
Define grade ladders
Manage Grades
Manage Grade Rates
Defining Grades
This section describes:
Grades
Grade steps
Grades and sets
How grades work with jobs and positions
How grades work with assignments and employment terms
Grades
Create grades to record the level of compensation for workers. You can create grades
for multiple pay components, such as salary, bonus, and overtime rates. You can define
one or more grades that are applicable for jobs and positions. This list of valid grades,
combined with the settings for two profile options, enables you to restrict the grades that
can be selected when you set up assignments or employment terms for a worker.
Grade Steps
Grade steps are distinct increments of progression within a grade. You can set up
grades with or without grade steps.
The following figure illustrates the difference between grades with and without steps.
The following table lists the three grades, steps, and the rates associated with them for
administrative workers at InFusion Corporation.
To set up a grade structure to reflect this table, perform the following tasks:
1. Set up three different grades and add three steps for each grade.
2. Set up a grade ladder using the Grades with Steps type, and select all three
grades.
3. Set up step rates for annual salary amounts using the rates in the preceding
table.
The following table lists the grades and associated rates for level 3 managers at
InFusion Corporation.
To set up your grade structure to reflect this table, perform the following tasks:
If you use positions, then the grades that you assign to jobs are the default grades for
the positions that you associate with each job. You can use the default grades for the
position, remove ones that don't apply, or add new ones
If users select both a job and a position for the assignment or employment terms,
then they can select grades that are valid for the position only.
If valid grades are defined for neither the job nor the position, then users can
select from all grades
If you set this profile option to No, which is the default value, then users can select from
all grades.
If you set this profile option to No, which is the default value, then users can select from
all grades.
The course was designed for you to facilitate learners doing the specified activity, at this
point.
Requirements
Use the bold text for the object names, replacing the XX with your student
number, as indicated by your instructor
Activity Scope
Create a new grade for the Sales Executive job as well as the associated grade rates.
Sign in as hcm_implX, replacing X with the number assigned to you by your instructor.
Start Here
Setup and Maintenance work area Implementation Project: XX Workforce
Deployment page
Information
Use the Manage Grades page to search for existing grades.
6. Click Next.
14. In the Manage Grades task row, click the Status icon button.
Grade rates for some jobs or positions might include an hourly salary rate and an
overtime rate. Grade rates for other jobs or positions might contain a salary rate type
with a range of amounts and a bonus rate type with a fixed amount. Grade rates
typically serve only as a guideline to validate that the salary you propose during the
compensation process for a worker on a certain grade is appropriate for that grade.
However, in MEA they can drive the rate paid for many allowances in payroll. Grade
rates are optional.
You should review these predefined values, and add additional rate types to suit your
business needs.
Note: When you add customized lookups, prefix them with unique identifiers to
differentiate them from predefined lookups.
Add the rates at the same time as when you add the grade using the Manage
Grades task
Add the rates separately using the Manage Grade Rates task
For grades that were created with steps, you must first add the grade to a grade ladder,
and then add the rates for each step in the Manage Grade Ladders task.
While grades may be common across different areas of your enterprise, grade rates
vary among the countries in which you employ people. For example, if your enterprise
has engineer jobs in the United States, the United Kingdom, and Australia, you can set
up grades for a set that is shared between the countries, but set up different grade rates
for each country in the applicable currency.
You can use the Manage Grade Rates task to add more legislative data groups and
associated grade rates for an existing grade.
The following figure illustrates how you can use sets to share grades across multiple
business units and then change the grade rates for each legislative data group.
In addition, compa-ratios and salary range positions for workers are calculated using the
minimum and maximum amounts that are defined in the grade rates for their grades.
Payroll elements reference grades in the eligibility criteria. For example, assume you
want to process a bonus for all workers who are at grade level A2. To accomplish this,
you would create an earnings element for the bonus and specify A2 for the grade in the
eligibility criteria. The result of this setup, when combined with additional eligibility
criteria that may be applied by the bonus plan, is that when payroll is processed,
workers who are at grade level A2 and who meet the additional eligibility criteria would
receive the bonus.
To set up a grade structure to reflect this table, perform the following tasks:
The course was designed for you to facilitate learners doing the specified activity, at this
point.
Requirements
Use the bold text for the object names, replacing the XX with your student
number, as indicated by your instructor.
You must have access to Oracle Fusion Application InFusion database or
comparable training or test instance at your site, on which to complete this
practice.
Activity Scope
Create a bonus rate for the XX Sales Executive grade that you created in the previous
activity.
Sign in as hcm_implX, replacing X with the number assigned to you by your instructor.
Start Here
Setup and Maintenance work area Implementation Project: XX Workforce
Deployment page
3. In the Legislative Data Group field, search for and select US LDG.
4. Click OK.
8. In the Grade Rate Values section, click the Add Row icon button.
Information
The application calculates the midpoint value for you.
20. In the Manage Grade Rates task row, click the Status icon button.
In this activity, you have created the XX Annual Salary Rate Sales Execs grade rate.
Grade ladders
Ladders with grades
Ladders with steps
Grade Ladders
Create grade ladders to group grades or grades with steps in the sequence in which
your workers typically progress. Grade ladders describe the grades or the grades with
steps to which a worker is eligible to progress. For grades with steps, grade ladders
also provide the compensation values associated with each step.
You can set up separate grade ladders for different types of jobs or positions in your
enterprise. For example, you may create three grade ladders for your enterprise: one for
technical grades, another for management grades, and a third for administrative grades.
Two types of grade ladders are available:
You cannot create a grade ladder with a combination of both grades and grades with
steps.
The grade structure for line workers at InFusion Corporation includes grades with steps,
and the rates are hourly amounts.
The following table lists the hourly rates for line workers at InFusion Corporation.
To set up your grade structure to reflect this table, perform the following tasks:
The classroom environment is configured with these profile options set to N for (No):
PER_DEFAULT_GRADE_FROM_JOB_POSITION
PER_ENFORCE_VALID_GRADES
This means that when you hire an employee, you can select from any grades in the
Common Set when setting up the assignment.
If you want students to be able to see how setting these options to Yes enforces valid
grades that have been set up for the job when they perform the activity, use the steps in
the instructor demo to show how to first enable the profile options to be updated, and
then show how to update the profile options from N to Y (Yes).
Demonstration
Background
As the Human Resources (HR) specialist, you must maintain the profile
options.
Demonstration Scope
Change the settings for the PER_ENFORCE_VALID_GRADES and
PER_DEFAULT_GRADE_FROM_JOB_POSITION profile options
Demonstration Steps
Sign in as hcm_implX, replacing X with the number assigned to you by your instructor.
Start Here
Setup and Maintenance work area
5. Click Search.
Note: The application loads the Profile Option Levels region with the profile
option that you have selected.
9. In the Search section Name field, enter Manage Administrator Profile Values.
Note: The application loads the Profile Values region with the profile option
that you have selected.
Review Question 1
Which of the following determines what rate types are available?
1. A profile option
2. A lookup type
3. The legislative data group for which you are setting up the grade rate
Review Question 2
A grade ladder can contain both grades and grades with steps.
1. True
2. False
Review Question 3
Which profile options must you set to enforce grades at the assignment level?
2. A grade ladder can contain both grades and grades with steps. (True / False)
A. False
3. Which profile options must you set to enforce grades at the assignment level?
A.
PER_ENFORCE_VALID_GRADES
PER_DEFAULT_GRADE_FROM_JOB_POSITION
Lesson Highlights
In this lesson, you should have learned how to:
Grade ladders can include either grades or grades with steps. For grades with steps,
you define the rates when you include the grades in a grade ladder.