Selecting a Business Unit Structure

Business units offer a flexible structuring device that you can use to implement each PeopleSoft application based on how the institution is organized. In some institutions, the correspondence between existing structures and the organizational model is obvious. In other cases, it can require careful analysis to determine how to set up the business units so that they reflect the institution and enable you to use the system effectively.

In deciding on the business unit structure for a PeopleSoft application, look closely at the structure in the current system as a starting point. What sort of organizing concepts or categories do you use? Do you still want to use these structures in the PeopleSoft system? To decide where to draw the lines between business units in the institution, you may have to weigh a number of different variables. First, you might consider the question from one perspective, saying, "If I use these criteria, my institution divides into these logical units." Then you might use different criteria and see if the institution divides into different logical units. As you determine at the optimal business unit structure for the institution, keep in mind that in some circumstances you must set up multiple business units and in some cases setting up multiple business units is optional.

Examine the existing codes and IDs and determine how they might relate to PeopleSoft business units. Consider whether you can make a simple mapping of the existing structures onto business units, or whether you should modify the structures based on the flexibility afforded by the PeopleSoft system.