In SAP HCM (Human Capital Management), Organizational Management (OM) is a module

that helps organizations model and manage their organizational structures and hierarchies. It
enables the visualization of the organization’s framework and the relationships between different
organizational units, jobs, positions, and persons. Here’s an overview of Organizational
Management (OM) and its key features:

Key Features of Organizational Management (OM):

1. Organizational Structure:
o Purpose: Defines the hierarchical structure of an organization, including
organizational units, jobs, positions, and reporting lines.
o Components: Organizational units represent departments or divisions, jobs define
the general classifications of tasks, positions are individual employee
assignments, and persons are the employees.
2. Object Types and Relationships:
o Purpose: Uses different object types (e.g., Organizational Units, Jobs, Positions,
Persons) and defines relationships between them to model the organizational
structure.
o Example Relationships: Organizational Unit (Org Unit) to Org Unit (reports to),
Position to Org Unit (belongs to), Job to Position (describes), and Person to
Position (holds).
3. Position Management:
o Purpose: Manages positions within the organization, including vacant positions
and their requirements.
o Details: Positions are linked to jobs and organizational units, and they can inherit
attributes from jobs and organizational units.
4. Job Descriptions and Requirements:
o Purpose: Defines job descriptions and the qualifications required for different
positions within the organization.
o Components: Job descriptions, responsibilities, and qualification requirements.
5. Integration with Other Modules:
o Purpose: OM integrates seamlessly with other SAP HCM modules like Personnel
Administration (PA), Personnel Development (PD), and Payroll.
o Benefits: Ensures that organizational changes are reflected across the system,
facilitating processes like payroll, time management, and employee development.
6. Visualization Tools:
o Purpose: Provides tools for visualizing and maintaining the organizational
structure, such as the Organizational Structure (Org Chart) and Position Charts.
o Usage: Helps HR managers and decision-makers understand the organizational
hierarchy and employee assignments visually.

Benefits of Organizational Management (OM):

1. Centralized Management of Organizational Data:

o Maintains a centralized and up-to-date repository of organizational data, ensuring
consistency and accuracy.
 2. Enhanced Workforce Planning:
o Supports workforce planning and analysis by providing a clear view of
organizational structures and positions.
3. Improved HR Processes:
o Streamlines HR processes such as hiring, promotions, and transfers by integrating
with Personnel Administration (PA) and other HCM modules.
4. Better Decision-Making:
o Facilitates better decision-making by providing insights into the organizational
structure and employee assignments.
5. Compliance and Reporting:
o Ensures compliance with organizational policies and regulatory requirements
through accurate and detailed organizational data.

Components and Object Types in OM:

 Organizational Units (O):

o Represent departments or divisions within the organization.
 Jobs (C):
o Define general classifications of tasks or roles within the organization.
 Positions (S):
o Specific assignments within organizational units that are occupied by employees.
 Persons (P):
o Individual employees who hold positions within the organization.
 Cost Centers (K):
o Financial entities associated with organizational units or positions, used for
budgeting and cost tracking.
 Tasks (T):
o Specific duties or activities associated with jobs or positions.