58 Define Organizational Structures
To illustrate reporting relationships within your organization, you can define organizational structures. Depending on the needs of your organization, you can define a structure by:
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Business unit
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Position
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Employee
When you define organizational structures, you create hierarchies of parents and children. For example, a large business might have headquarters (the place where the main business functions are performed) in one city and several regional offices, which are subsidiaries of the headquarters. You can define an organizational structure in which you set up the regional offices as children, or subsidiary business units, of the headquarters. The regional offices can in turn be parents, or higher-level business units, of local offices. For each office you can set up an organizational structure by employee, with upper-level managers as parents of mid-level managers, and employees as grandchildren of the middle-level managers.
After you define an organizational structure, you can revise it as necessary to reflect changes within your organization.
This chapter contains these topics:
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Section 58.1, "Defining an Organizational Structure by Business Unit,"
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Section 58.2, "Defining an Organizational Structure by Position,"
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Section 58.3, "Defining an Organizational Structure by Employee."
58.1 Defining an Organizational Structure by Business Unit
From Human Resources (G08), choose Organizational Structure
From Organizational Structure (G08O2), choose Business Unit
From Organizational Structure by Business Unit (G08O20), choose Structure Revisions
To show the reporting relationships between different parts of your organization, you can define an organizational structure by business unit. For example, you can create an organizational structure with the administrative office at the top level, and major departments, such as the Manufacturing or Accounting department, as children business units of the top-level office.
To define a structure by business unit, use either of the following methods:
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Enter the children business units for a higher-level parent business unit
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Enter the parent business units under which you define the children
58.1.1 Before You Begin
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In some situations, the organizational structure by business unit might have been set up in the General Accounting system along with the Chart of Accounts. Verify that the organizational structure has not yet been set up in the General Accounting system.
To define an organizational structure by business unit
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Complete one of the following fields, depending on which mode of entry you use:
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Parent Business Unit
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Child Business Unit
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Display Sequence
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Complete the following optional fields:
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Type Structure
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Parent 1/0
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| Field | Explanation |
|---|---|
| Parent Business Unit | The primary level in a business unit hierarchy. A parent in one hierarchy can be a child in a different hierarchy.
Form-specific information This could be a company or branch with several departments or jobs subordinate to it. |
| Child Bus. Unit | An alphanumeric field that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, or branch/plant.
You can assign a business unit to a voucher, invoice, fixed asset, and so on, for purposes of responsibility reporting. For example, the system provides reports of open accounts payable and accounts receivable by business units to track equipment by responsible department. Security for this field can prevent you from locating business units for which you have no authority. Note: The system uses this value for Journal Entries if you do not enter a value in the AAI table. Form-specific information A child business unit is subordinate to a parent business unit. For example, this could be one of several departments subordinate to a branch or plant. |
| Dspl Seq | The order in which child business units appear when listed under their parent.
If you leave this field blank when you set up the organization structure, the system assigns the sequence number. |
| Type Structure | A user defined code (00/TS) that identifies the type of organizational structure, such as financial or responsibility. Each type of structure can have a different hierarchy. |
| Parent 1/0 | A code that determines whether the system displays child business units for a parent or parent business units for a child.
Valid codes are: 0 – Displays children for selected parent 1 – Displays parents for selected child If you leave this field blank, the system uses 0. |
58.2 Defining an Organizational Structure by Position
From Human Resources (G08), choose Organizational Structure
From Organizational Structure (G08O2), choose Position
From Organizational Structure by Position(G08O21), choose Structure Revisions
To show the reporting relationships between different positions within your organization, you can define an organizational structure by position. For example, you can organize a reporting structure in which you define group leaders as parent positions to programmer/analysts. The group leaders are, in turn, child positions to a department manager.
Defining an organizational structure by position eliminates the need to continually revise an organizational structure when individual employees change jobs.
To define a structure by position, use either of the following methods:
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Enter child positions for a higher-level parent
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Enter a parent position for subordinate child positions
You can define your organizational structure at any time that your management needs require it. For example, if your organization is resizing, you might need to define an organizational structure that shows the number of positions reporting to the first-level managers, and distribute that structure to all of the managers.
To define an organizational structure by position
Figure 58-2 Structure Revisions (Detail) screen
Description of ''Figure 58-2 Structure Revisions (Detail) screen''
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Complete the following fields:
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Fiscal Year
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Parent Position
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Child Position
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Home Business Unit
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Complete the following optional field:
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Parent/Child
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| Field | Explanation |
|---|---|
| Parent Position | A code that identifies the higher-level position that this position reports to. For example, the supervisor position ID.
Note: The parent position or parent business unit must already exist as a position ID or business unit record in the Position Master table. |
| Child Position | A code that you use for budgetary (position) control purposes. The position ID consists of:
For example, you can identify position A0-1 as Accounting Manager for fiscal year 2017-2018, for home business unit 41. |
| Home Business Unit | The number of the business unit in which the employee generally resides.
Form-specific information The number of the business unit to which this position reports, for example, the HR Director's business unit. |
58.3 Defining an Organizational Structure by Employee
From Human Resources (G08), choose Organizational Structure
From Organizational Structure (G08O2), choose Employee
From Organizational Structure by Employee (G08O22), choose Structure Revisions
To show the reporting relationships between specific employees within your organization, you can define an organizational structure by employee. For example, you can create an organizational structure that shows the employees who report to each supervisor, the supervisors who report to each manager, and so on.
Each employee can have only one immediate supervisor for a primary job. The system prevents you from entering a manager as a subordinate of an employee. You use one of the following modes to define an organizational structure by employee:
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Enter employees for a supervisor
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Enter a supervisor for an employee
When you create an organizational structure by employee, the system updates the following tables with primary reporting relationships as defined in the employee record:
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Employee Multiple Job History (F060119)
58.3.1 Before You Begin
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If you want the job titles associated with the organizational structure to be more descriptive than the job type description, you can enter a job title for each employee on the Basic Employee Data form. For example, for an employee whose job type description is Director, you could enter the job title, Director of Customer Support.
To define an organizational structure by employee
Figure 58-3 Structure Revisions (Define by Employee) screen
Description of ''Figure 58-3 Structure Revisions (Define by Employee) screen''
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Complete the following fields:
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Supervisor
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Employee
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Supervisor/EE (1/0)
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Access the detail area.
Figure 58-4 Structure Revisions (Detail) screen
Description of ''Figure 58-4 Structure Revisions (Detail) screen''
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Complete the following optional fields:
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Effective On
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Change Reason
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| Field | Explanation |
|---|---|
| Supervisor | The address book number of the supervisor.
Note: A processing option for some forms allows you to enter a default value for this field based on values for Category Codes 1 (Phase), 2, and 3. Set up the default values on the Default Managers & Supervisor form. After you set up the default values and the processing option, the information displays automatically on any work orders you create if the category code criterion is met. You can either accept or override the default value. |
| Supervisor/EE (1/0) | A code that determines whether the organization structure displays employees for a supervisor or a supervisor for an employee.
Valid codes are: 0 – Display employees for selected supervisor 1 – Display supervisor for selected employee If you leave this field blank, the system uses 0. |
| Effective On | The date that you want all the changes to take effect, or the date that the changes went into effect. If you are entering data and you do not enter a date in this field, the system uses the current date as the effective date. |
| Change Reason | To record a reason for the change in the Employee Turnover Analysis table (F08045) and the HR History table (F08042), enter a value in this field. Completing this field also updates the Employee Master table (F060116) and the Employee Multiple Job table (F060118) with the new change reason. The change reason code indicates the following:
When the HR Monitor reads the information on this form, it creates a turnover record only if you enter a change reason in this field. If you do not want to create turnover records for a data change, leave this field blank. |
58.3.3 Processing Options
See Section 81.1, "Organizational Chart Revisions - EE/Supervisor (P08210)."