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Representing Employers

Representing Organizations

Employer and Organization Setup

Define Organization Structures

Step 15 Define Locations

Use this window to define each work location used by your enterprise. You define each location and address once only. This saves you time if you have several organizations with the same address.

Note: Use the Location form.

See: Setting Up Site Locations

This window contains information that is shared with users of other Oracle Applications, such as, 'Inventory Organization'.

Step 16 Define Business Group

A Business Group is a special class of organization. Every Business Group can have its own set of default values, with its own internal organizations, grades, jobs, positions, payrolls, employees, applicants, compensations and benefits.

Note: A 'Setup' Business Group is supplied with Oracle HRMS. This business group is used by the default responsibility. You can use this business group with all of its default definitions as the starting point for your own Business Group, or you can define other business groups to meet your own needs.

Note: Use the Organization form.

See: Creating an Organization

• Enter Business Group identification information and enter the appropriate key flexfield structures.

• Enter any defaults that apply to the whole business group

• When you save a new business group the system will generate a 'view all' security profile for this new group. This is linked to the base-user of the Oracle HRMS tables.

Warning: If you intend to process payrolls in your business group it is essential that you select a valid legislation code and base currency. The system uses these values to copy in the data it needs to comply with your payroll legislative requirements.

You cannot change these definitions after they have been saved.

Step 17 Create 'View All' Access to the Business Group

This is a task for your System Administrator. If you are using the Setup Business Group supplied with Oracle HRMS, you can omit this step.

See: Security in Oracle HRMS

Note: Use the System Profile Values form.

1. Select the default responsibility.

2. Query the HR:Security Profile option and enter the name of the view-all security profile for your Business Group. By default this is the name of your Business Group.

Warning: If you define a new Business Group you must change the user profile option HR:Security Profile for your default Responsibility to point at the view-all security profile for your new group.

If you use more than one Business Group you must set up a separate responsibility and user profile for each group.

Step 18 Define Organizations

Organizations are the basic work structure of any enterprise. They usually represent the functional, management, or reporting groups which exist within a Business Group.

In addition to these internal organizations you can define other organizations for tax and government reporting purposes, or for third party payments.

Suggestion: When you install Oracle HRMS you will find a predefined list of Organization Classifications. These values are defined for the QuickCode Type ORG_CLASS, and provide options for all users of the Organization window.

You can disable the QuickCode values you will not use in your implementation in the QuickCodes window.

Note: Use the Organization form.

See: Creating an Organization

• Enter a unique name for every organization in the business group.

• Enter classifications as appropriate

• Use HR Organization if you want to include this in any employee assignment

• Enter default Work Schedule details to prorate pay for employees who do not submit timecards for payroll.

• For Cost Center reporting you can enable a segment of the Cost Allocation flexfield with a qualifier of Organization.

Suggestion: Consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry.

Step 19 Define Organization Hierarchies

A Business Group can include any number of organizations. You can represent your management or other reporting structures by arranging these organizations into reporting hierarchies. An organization can belong to any number of hierarchies, but it can only appear once in any hierarchy.

Note: Use the Organization Hierarchy form.

See: Creating Organization Hierarchies

Suggestion: You may find it easier to define the primary reporting hierarchy using the top organization and one other. Then you can add organizations into the hierarchy when you make your definitions in the Organization window.

Organization reporting lines change often and you can generate a new version of a hierarchy at any time with start and end dates. In this way, you can keep the history of your organizational changes, and you can also use this feature to help you plan future changes.

When you use DateTrack you see the 'current' hierarchy for your effective date.

Define Roles

See: Representing Jobs and Positions

Step 20 Define Jobs

Jobs can be generic or specific roles within your enterprise. By definition they are independent of organization structures and are generally used where there is flexibility in employee roles.

Note: Use the Job form.

See: Defining Jobs

• A 'Job Name' is a unique combination of values in the segments of the job flexfield structure that you have linked to your Business Group.

You cannot assign an employee to a job before the start date of the job.

Suggestion: Consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This simplifies your data entry.

Step 21 Define Positions

In Oracle HRMS a position is a job within an organization. Positions are generally used where roles are fixed within a single organization. If you decide to use positions you may want to use jobs to identify the common job groups of individual positions.

Note: Use the Position form.

See: Defining Positions

• You must define jobs before you define positions.

• A 'Position Name' is a unique combination of values in the segments of the position flexfield structure that you have linked to your Business Group.

• If you intend loading historic assignment details into Oracle HRMS, make sure you enter valid start dates for your positions.

• You cannot assign an employee to a position before the start date of the position.

Suggestion: Consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry.

Step 22 Define Primary Position Reporting Hierarchy

You can structure positions into hierarchies to show detailed position reporting structures. You can also use position hierarchies to define security profile groups within your enterprise, or to define career progression paths for positions.

Each position can belong to any number of hierarchies at the same time, but can only appear once in any hierarchy.

You should define the primary reporting hierarchy as part of your implementation of positions. The first version of your hierarchy should show your reporting structures when you implement Oracle HR.

Note: Use the Position Hierarchy form.

See: Creating Position Hierarchies

You can generate a new version of a position hierarchy at any time with start and end dates. This allows you to keep the history of your reporting structures, and to use the system to plan future changes. The dates you enter are used to identify the 'current' hierarchy for all reporting and inquiry purposes. When you use DateTrack you see the 'current' hierarchy.

Suggestion: You may find it easier to define the Hierarchy using the top position and one other. Then you can add other positions into the hierarchy when you make your definitions in the Position window.

You always build a new hierarchy from the top down.

Define Grade Related Information

Representing Grade Structures

Grade Relationships to Compensation and Benefits

Step 23 Define Grades

Grades show the relative status of employees within an enterprise and are often used as the basis for eligibility to Compensation and Benefits.

The Grade Name is a unique combination of values in the segments of the job flexfield structure that you have linked to your Business Group.

You can define Valid Grades for jobs or positions which will be used to cross check the details a user enters as part of the Employee Assignment.

Note: Use the Grades form.

See: Defining Grades

Attention: If you intend loading historic assignment details into Oracle HRMS, make sure you enter valid start dates for your grades. You cannot assign an employee to a grade before the start date of the grade.

Suggestion: Consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry.

Step 24 Define Grade Rates

See: Relating Pay to Grades Directly: Using Grade Rates

Grade rates are normally used to show valid rates of pay which are directly related to grades. These can be expressed as a fixed value, or as a range of values.

When you define a grade rate you are setting up a table of values. You can use these values with an employee's grade to control, or compare, the salary of the employee.

• You can use grade rate values in a formula to validate the input value of any element for an employee.

• Grade rate values are used to calculate comparatio values in the View Employee Grade Comparatio window and in the Salary Administration window for salary validation.

Note: Use the Grade Rate form.

See: Defining Grade Rates

Attention: Grade rate values are DateTracked and you must ensure you use the correct date to create your initial set of values.

If you intend loading historic grade rate details into Oracle HRMS, make sure you enter the correct start date for all your history.

Step 25 Define Pay Scales

See: Relating Pay to Grades Indirectly: Using Pay Scales

Pay scales are used commonly in government and regulated or unionized enterprises where actual values of pay are defined as a 'pay scale', a 'schedule', or a 'spine'. Characteristics of this functionality are:

• A single scale of points and values is used to establish the actual pay for a grade group

• Each point in the pay scale has a single value

• Grades can have a number of distinct steps, with each step given a single point in the pay scale

• An employee assignment to a grade includes a point, or step value, and the point value determines the actual pay of the employee

Note: Use the Pay Scale form.

See: Defining a Pay Scale

In this environment it is common to find an automatic incrementing of employee pay based on length of service or on a fixed date. When you define the Pay Scale you define the points in the incrementing sequence you want to use.

A predefined incrementing process is supplied with Oracle HRMS. This will automatically increment step and point values for employees using a fixed date.

Note: You can modify the process to meet your specific business rules for incrementing.

Step 26 Define Progression Point Values

You define a pay value for each point on the pay scale. These values are DateTracked.

Note: Use the Scale Rate form.

See: Defining Scale Rates

Attention: You must use the correct date to create your initial set of values. If you intend loading historic pay scale values into Oracle HRMS, you must use correct dates for all your history.

Step 27 Define Grade Scales

Define the valid points for each grade as a numeric sequence of steps.

A grade can have any number of steps. Steps do not always have the same interval as the pay scale points. For example, you may have a pay scale with points from 1 to 10, and a Grade which has 5 steps with points in the sequence 3, 5, 7, 8, and 9.

Note: Use the Grade Scale form.

See: Relating Grades to Progression Points

Note: The steps you define are used in the auto-incrementing process which will increment an employee's grade point up to a ceiling which you can define for the grade. Points above the ceiling can be entered by users in the Grade Step Placement window.

Define Payroll Information

In Oracle HRMS payrolls define groups of employees who share a common frequency of payroll processing.

Attention: You must include a payroll in the employee assignment before you can make nonrecurring entries of any element for an employee. Nonrecurring entries are only valid for one payroll period.

Step 28 Define Payment Methods

Standard categories of payment methods such as and Direct Deposit are predefined with your system. You can define your own names for each of these methods, and if you have installed Oracle Payroll you can also use these methods to control payments to your employees.

Note: Use the Organizational Payment Method form.

See: Defining Payment Methods for the Enterprise

• You can define multiple payment methods for the same category. For example, you might have different source bank accounts for payments.

Note: After you define your Payment Methods you can enter the available types for each payroll you define.

After you assign an employee to a payroll you can enter payment details for each employee in the Personal Payment Method window. For example, for employees who work overseas, you may want to record more than one payment method with different percentages, and currencies.

Note: Use the Consolidation Sets form.

Step 29 Define Payroll Groups

You define your own payroll groups to meet your business needs for processing and payment. For example, you may have a monthly and a weekly payroll but you might want to manage and process your weekly payroll by plant location. In this case you could define one monthly payroll and two weekly payrolls, one for each plant.

Note: Use the Payroll form.

See: Defining a Payroll

Note: The payroll calendar is different from the budgetary calendar in Oracle HR. You define your budgetary calendar for headcount or staffing budgets.