Creating New Organizational Structures for Job Competencies

Select Competency Setup (G05BC4), Organization Structure Revision .

To associate jobs and job competencies with the hierarchical levels in the organization, you can create an organizational structure that is specific to job competencies. In many cases, you can base the competency organizational structure on the structure that the accounting department uses for financial reporting (the financial organizational structure). If the financial organizational structure is much different from the organizational structure that you need to create for competencies, creating a new structure is probably more efficient than copying and modifying an existing structure.

To give the human resources department more flexibility in attaching competencies, you might also create new business units for the competency organizational structure. When you create a new business unit for job competencies, enter 1 in the Subledger Inactive field so that no activity about the business unit is reflected in the business units and organizational structure that the organization uses to track financial information.

To create a new organizational structure, use the Organization Structure Definition program (P0050B). To create new business units, use the Business Units by Company program (P0006). You complete the same steps to create the new organizational structure and business units for job competencies as you would to create them for financials. When you create the structure for job competencies, you do not need to run the Organization Structure Build program (R10450).

The new structure that you create is an inactive, or draft, structure that contains no effective dates. You can modify the draft as many times as necessary. When you are ready to begin using this organizational structure, run the Activate Job Competencies report (R080014) to activate the draft structure and set it up as the default structure for job competencies. This program also enters an ending date for the organizational structure that was previously the default structure, if one exists.