Organization Structures

Organization Structures Overview

Oracle HRMS provides you with organization management functionality to represent the operating structures of your enterprise.

Representing Organization Structures Using Oracle HRMS

Using the Configuration Workbench for your implementation, you can configure the Oracle eBusiness Suite of applications to represent the management and operating structures of your enterprise.

The Configuration Workbench delivers an integrated configuration management toolset for HR systems and assists in the evaluation, configuration, deployment, and maintenance of HR applications. The workbench uses a configuration interview, to review the decisions and operational questions you make about setting up your enterprise using Oracle HRMS.

The Configuration Workbench configuration process suggests a combination of business groups and organizations to satisfy your integrated legal, financial, organization and employee management needs using Oracle HRMS. The suggested combination of business groups and organizations uses one of the following configuration models:

These configuration models define the basic information model to represent any enterprise. You can add other location and internal work structures that represent your internal organization or reporting structures for specific legal, personnel, and financial management requirements.

Managing your Work Structures Using Graphical Charting Capabilities

You can plan and implement new working structures ahead of time using graphical charts. The hierarchy diagrammer enables you to create organization and position hierarchies to reflect reporting lines and control access to information in your enterprise. See:

The hierarchy diagrammers use the same security model as the other windows in Oracle HRMS and access to them is restricted by your responsibility.

Reporting on Organization Structures

Oracle HRMS and Oracle HRMSi enable you to produce several reports to satisfy the statutory requirements for your legislation and meet your business analysis needs. For example:

Reporting Costs for Your Organization Structures

With the Oracle eBusiness suite of applications, you can automatically create HR organizations to corresponding company cost center combinations that exist in your GL account combinations.

Key Concepts

To effectively use Oracle HRMS for organization management, see:

Key Concepts for Representing Enterprises

Organization Classifications

Extending the Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Configuration Models for Your Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Locations, Oracle HRMS Enterprise and Workforce Management Guide

Organization Hierarchies, Oracle HRMS Enterprise and Workforce Management Guide

Defaults for the Business Group, Oracle HRMS Enterprise and Workforce Management Guide

Internal Organizations and Cost Centers, Oracle HRMS Enterprise and Workforce Management Guide

Organizations

Key Concepts for Representing Enterprises

You represent your enterprise using key organization structures in Oracle HRMS. These structures provide the framework so you can perform legal reporting, financial control, and management reporting. You can set up these organization structures yourself, or use the Configuration Workbench.

The Configuration Workbench delivers an integrated configuration management toolset for HR systems and assists in the evaluation, configuration, deployment, and maintenance of HR applications. The workbench suggests a basic structure of organizations for your enterprise based on configuration models.

See: Configuration Models for Your Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Once the basic enterprise structure is set up, you add the additional organizations and locations that exist in your enterprise. You define the internal organizations that represent your internal divisions and departments, and you define the external organizations that represent the organizations outside of your enterprise. For example, you can set up an external organization to represent the tax office for which your enterprise uses for reporting purposes.

You can use organizations to represent many levels of your enterprise, from the highest level of organization that represents the whole enterprise, to the lowest level of organization that represents a section or department.

See: Extending the Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

See: Organization Classifications

See: Setting Up Organizations, Oracle HRMS Enterprise and Workforce Management Guide

Business Group

The business group represents a country in which your enterprise operates. You create it as an organization in Oracle HRMS, but it does not represent a specific organization within your enterprise structure, and you do not include it in your organization hierarchies. A business group enables you to group and manage data in accordance with the rules and reporting requirements of each country, and to control access to data.

The critical factors for deciding when to use a separate business group, or an international business group, are based on the following factors:

Generally the laws are so different in each country that to be compliant, there must be a different business group for each country in which an enterprise has employees.

Operating Company

An operating company represents a division or line of business within your enterprise that is legally registered for reporting in at least one country. An operating company is a holding company, a company within a company.

Ultimate Legal Entity

The ultimate legal entity represents the enterprise, and typically, the enterprise is the highest (global) level of a business organization. The ultimate legal entity is the parent company or organization for all its subsidiaries and divisions. Oracle HRMS represents the ultimate legal entity with the GRE/Legal Entity organization classification.

Legal Entity/Employer

A legal entity represents the designated legal employer for all employment-related activities. The legal authorities in a country recognize this organization as a separate employer. In an organization hierarchy, a legal entity may report to an operating company or to the ultimate legal entity.

A legal employer is a legal entity that is responsible for employing people in a particular country. Therefore, if you employ people in a country, then you must have at least one organization classified as a legal entity and a legal employer.

The Configuration Workbench classifies an organization as a GRE/Legal Entity where your enterprise operates in a country, and classifies it as an Employer if you employ people in that country also. For example, you can have a legal entity in a country where you do business, but do not employ people in that country.

Consolidated Legal Entity

A consolidated legal entity acts on behalf of multiple operating companies that are not legally registered, or simply on behalf of the enterprise in a country. You typically use the consolidated legal entity for when you have multiple operating companies in your enterprise, but for the purposes of consolidation, you group the information into one organization. For management reporting purposes, the organizations below the consolidated legal entity in an organization hierarchy, such as, your departments and sections, can report to any organization in the enterprise. However, for legal reporting purposes, they report up to the consolidated legal entity.

For information on how to model your enterprise using the key organization structures, see: Configuration Models for Your Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Organization Classifications

Organization classifications define the purpose of an organization and its functionality within Oracle HRMS. The classifications you assign to an organization control the additional information you can set up at the organization level. The Configuration Workbench automatically assigns the appropriate classifications to the organizations it creates.

For more information on the key organization structures you use to represent your enterprise, see: Key Concepts for Representing Enterprises

You can define one organization with multiple classifications or you can define separate organizations to represent different types of entity. For example, you can classify an organization as a legal entity as well as an HR organization if it's the same organization. If they are different, then you create two organizations.

Note: Oracle HRMS enables you to install your own additional information types for classifications.

You can select the following classifications in the Organization window, depending on your legislation:

All Legislations

All legislations can use the following classifications:

US Legislation

The US legislation can use the following classifications:

UK Legislation

The UK legislation can use the Education Authority classification to define a Local Education Authority (LEA) that is responsible for education within that council's jurisdiction.

Canadian Legislation

The Canadian legislation can use the following classifications:

French Legislation

The French legislation can use the following classifications:

Dutch Legislation

The Dutch legislation can use the following classifications:

German Legislation

The German legislation can use the following classifications:

Hong Kong Legislation

The Hong Kong legislation can use the MPF Trustee Organization classification to set up and enrol employees in an MPF Trustee. This classification allows you to record details of the trustee and details of the scheme provided by the trustee.

Mexico Legislation

The Mexico legislation must use the legal employer classification to define the legal entity. You can add additional organization information for your legal employer, if needed.

Use the GRE/Legal Entity classification to define an organization that is recognized as a separate employer by Social Security or other legal authorities. When you assign a location to a GRE, and you have not already associated them with each other in the generic hierarchy, HRMS will make the association for you.

Saudi Legislation

The Saudi legislation can use the following classifications:

Hungary Legislation

The Hungary legislation can use the following classifications:

Spanish Legislation

The Spanish legislation can use the following classifications:

Korea Legislation

The Korean legislation can use the following classification:

Indian Legislation

Your organization hierarchy should contain at least one GRE/Legal Entity (Tax Organization) and Registered Company.

The Indian legislation can use the following classifications:

Polish Legislation

The Polish legislation can use the following classifications:

Norwegian Legislation

The Norwegian legislation can use the following classifications:

Finnish Legislation

The Finnish legislation can use the following classifications:

Danish Legislation

The Danish legislation can use the following classifications:

Swedish Legislation

The Swedish legislation can use the following classifications:

South African Legislation

The South African legislation can use the following classification:

UAE Legislation

The UAE legislation can use the Legal Employer classification to define and enter additional organization information for your legal employer.

Irish Legislation

The Irish legislation can use the following classifications:

Creating and Maintaining Organizations

Creating an Organization

Use the Organization window to create:

If you use the Configuration Workbench to configure your enterprise structure, then you only need to create the additional internal and external organizations you require. For example, you can set up additional organizations to represent the internal divisions or departments, and external organizations for reporting or third party payments.

See: Extending the Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

To create an organization

  1. Navigate to the Organization window and click New to create a new organization.

    Note: For information about querying existing organizations, see: Finding an Organization, Oracle HRMS Enterprise and Workforce Management Guide

  2. Enter a name for your organization in the Name field. A check is performed to see if organizations with the same name already exist.

    All Oracle applications you install share the information entered in the Organization window. Therefore organization names must be unique within a business group, and business group names must be unique across your applications network.

    You can create two organizations with the same name in different business groups but this can cause confusion later, if the HR: Cross business group profile option is set to Yes and you decide to share certain information across all business groups. If you decide to create two organizations with the same name, be sure that this will not cause you problems in the future.

  3. Optionally, select an organization type in the Type field.

    Organization types do not classify your organization, you use them for reporting purposes only. The type may identify the function an organization performs, such as Administration or Service, or the level of each organization in your enterprise, such as Division, Department or Cost Center. You create the organization types you require by entering values for the Lookup Type ORG_TYPE.

  4. Enter a start date in the From field. This should be early enough to include any historical information you need to enter.

    Note: You cannot assign an employee to an organization before the start date of the organization.

  5. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or office number.

    Dutch only: If you are setting up external organizations for a tax office, a social insurance provider or a private health insurance provider, you must enter the postal address and contact details using the NL_POSTAL_ADDRESS Location EIT.

    Mexico only: When defining a GRE/Legal Entity, if you select a location here, HRMS automatically associates it with this GRE in the Generic Hierarchy.

    US only: If you are using Oracle Payroll in the US, every organization to which employees can have assignments, including business groups, must have on record a location with a complete address. This is because the system uses the location of the organization of the employee's primary assignment to determine employee work locations for tax purposes. This does not apply to GREs, because the assignment to a GRE exists in addition to the assignment to an organization.

    India only: You can define an income tax organization and enter its location details. You can then select this organization at the GRE/Legal Entity Income Tax Office.

    Note: If you are an Oracle Inventory user, then you must not assign a location to more than one organization classified as an Inventory Organization.

  6. Enter internal or external in the Internal or External field. You cannot assign people to an external organization.

    Examples of external organizations that may require entry are disability organizations, benefits carriers, insurance carriers, organizations that employees name as beneficiaries of certain employee benefits, and organizations that are recipients of third party payments from employees' pay.

  7. Save the basic organization details.

Entering Additional Information

For each classification you set up you can enter additional information. This information can be different for each classification.

For business group see: Business Group

For HR organization see: HR Organization

For representative body see: Representative Body

For constituency see: Constituency

For bargaining association see: Bargaining Association

For company cost center see: Company Cost Center

For professional body information see: Professional Body Information

For company information see: Company Information

See Classification and Additional Information Types if you need to check which classification to select.

To enter Business Group additional information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select one of the following:

    • Business Group Information, see: Entering Business Group Information, Oracle HRMS Enterprise and Workforce Management Guide

    • Budget Value Defaults, see: Business Groups: Entering Budget Value Defaults, Oracle HRMS Enterprise and Workforce Management Guide

    • Work Day Information, see: Business Groups and HR Organizations: Work Day Defaults, Oracle HRMS Enterprise and Workforce Management Guide

    • Benefits Defaults, see: Business Groups: Defining a Default Monthly Payroll, Oracle HRMS Enterprise and Workforce Management Guide

    • PTO Balance Type, see Business Groups: Selecting a PTO Balance Type, Oracle HRMS Enterprise and Workforce Management Guide

    • Recruitment Information, see: Business Groups: Entering Recruitment Information, Oracle HRMS Enterprise and Workforce Management Guide

    • Payslip Information, see: Entering Payslip Information, Oracle HRMS Payroll Processing Management Guide

    • Self Service Preference Information, see: Entering Self-Service Preference Information, Oracle SSHR Deploy Self-Service Capability Guide

  4. Repeat these steps to enter further information.

To enter HR organization additional information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select one of the following:

    • Reporting Information, see: Entering Reporting Information for an HR Organization or a Company Cost Center., Oracle HRMS Enterprise and Workforce Management Guide

    • Costing Information, see: HR Organizations: Entering Costing Information, Oracle HRMS Enterprise and Workforce Management Guide

    • Parent Organization, see: HR Organizations: Entering Parent Organizations, Oracle HRMS Enterprise and Workforce Management Guide

    • Work Day Information, see: Business Groups and HR Organizations: Entering Work Day Defaults:, Oracle HRMS Enterprise and Workforce Management Guide

    • Payslip Information, see Entering Payslip Information, Oracle HRMS Payroll Processing Management Guide

    • Self Service Preference Information, see Entering Self-Service Preference Information, Oracle SSHR Deploy Self-Service Capability Guide

    • Related Organizations Information, see: Entering Related Organizations Information for an HR Organization, Oracle HRMS Enterprise and Workforce Management Guide

  4. Repeat these steps to enter further information.

To enter representative body additional information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select one of the following:

    • Representative Body Information, see: Entering Representative Body Information, Oracle HRMS Enterprise and Workforce Management Guide

    • Constituency information, see: Entering Constituency Information for a Representative Body, Oracle HRMS Enterprise and Workforce Management Guide

  4. Repeat these steps to enter further information.

To enter constituency additional information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select one of the following:

    • Location, see Entering Location Information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Organization, see Entering Organization Information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Organization Hierarchy, see Entering Organization Hierarchy information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Grade, see Entering Grade information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Bargaining Unit, see Entering Bargaining Unit information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Job, see Entering Job information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

    • Collective Agreement Grade, see Entering Collective Agreement Grade information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

  4. Repeat these steps to enter further information.

To enter bargaining association information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select Trade Union Information, see: Entering Trade Union Information for a Bargaining Association, Oracle HRMS Enterprise and Workforce Management Guide

  4. Repeat these steps to enter further information.

To enter company cost center information:

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select one of the following:

    • GL Company Cost Center, see: Entering GL Company Cost Center Information for a Company Cost Center, Oracle HRMS Enterprise and Workforce Management Guide

    • Reporting Information, see: Entering Reporting Information for an HR Organization or a Company Cost Center., Oracle HRMS Enterprise and Workforce Management Guide

  4. Repeat these steps to enter further information.

To enter professional body information

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Select Professional Body Info, see: Entering Additional Information for a Professional Body, Oracle HRMS Enterprise and Workforce Management Guide.

  4. Repeat these steps to enter further information.

To enter company information additional information

  1. Click on the organization classification for which you want to enter additional information.

  2. Choose the Others button to open the Additional Organization Information window.

  3. Repeat these steps to add further information.

Entering Additional Organization Information

Entering Company Details

Use the Company Details window to enter information about your enterprise. The information you enter here appears in the statutory reports, such as National Defense Report and Employment Certification Report.

To enter company details

  1. From the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Company Information, choose the Others button, and select Company Details.

  2. Click in a field of the Additional Organization Information window to open the Company Details window.

  3. Enter the full name of the employer.

  4. Select the bank account number for reports produced electronically and for Private Pension Fund report.

    Note: You can only select the bank account number from the list of values, if you have defined the Organization Payment Method using the Payment Methods.

  5. Enter the social security number, tax number, and company statistical number that uniquely identify the enterprise and appear on statutory reports, such as Employment Certification Report.

  6. Enter the TEAOR code to identify the sector to which the company belongs. This code identifies the main activity of the company such as public limited, surgical instrumentation, shipping, mining, or finance company.

  7. Describe the enterprise's work.

  8. Select the type of enterprise such as educational, agricultural, public limited or joint company. This information appears on statutory reports.

  9. Enter the regional settlement number used by the Hungarian Central Statistical Office to identify employers.

    Note: If you have defined multiple locations, enter only the regional identification number of the main organization.

  10. Select Yes if your enterprise pays social security and family allowance to employees, otherwise select No.

  11. Save your work.

Entering Draft Agency Reference

Use the Draft Agency Reference window to record details about the external military draft agency.

To enter Draft Agency Reference

  1. In the Organization window, query the Draft Agency if it does not already appear there. In the Organization Classifications region, select Company Information, choose the Others button, and select Draft Agency Reference.

  2. Click the field to open the Draft Agency Reference window.

  3. Select the draft agency for reporting the military service information of employees.

    Note: You can only select an agency if it exists as a Draft Agency external organization.

  4. Save your work.

Locations

Location Extra Information Types

You can define as many Extra Information Types as you require to hold information about locations. There are also some predefined person EITs.

Note: To be able to access the predefined EITs, you must link the EIT to your responsibility.

See: Setting Up Extra Information Types For a Responsibility, Oracle HRMS Configuring, Reporting, and System Administration Guide

The predefined location EITs are: