Organizational Plan:
An organizational plan consists of organizational structure and the relationships that exist amongst them. Its main elements are Organization Structure, Staff Assignment, Reporting Structure, Job Index, Work Centre Plan and Task Catalogue.
Note : Organizational Plan represents functional structure of the organization.

Plan Versions:
Plan versions are scenarios in which organizational plans are created. An organization can have multiple plan versions but only one plan version would be active at one point of time.
Note :
Current organizational plan is always created under ‘Active’ plan version.
Note :
Report - RHCOPL00 copies objects from one plan version to another.
Note :
Report - RHCOPLPT compares one plan version with another.

Organizational Assignment:
Organizational Assignment (also known as Staff assignment) is assigning the persons to positions according to organizational structure and plan.

Organizational Structure:
An Organizational Structure means the way various organizational objects/elements are placed in the organization. It is a hierarchy of organizational units.

Note : Organization Structures are created via 5 ways viz. Organizational Staffing, General Structure, Matrix, Expert Mode and Simple Maintenance.
Organizational Structure consists of various organizational objects/elements viz. Department (Organizational Unit) - O, Jobs - C, Positions - S, Cost Center - K, Person - P, Work Centre - A and Task - T.

Organizational Units - O :
Organizational units are functional units. Based on the requirement of the company, organizational unit could be ‘Departments’ or ‘Groups’ or ‘Teams’. Organizational Structure of the company is created by relating organizational units to one another.
Main/Root Organizational Unit - O : Whatever the organization we create for the first time is called Main/Root organizational unit.
Sub Organizational Units - O : Under Main org. unit whatever we create is called sub organizational units.

Jobs - C :
Jobs are classifications of functions in an enterprise. E.g. Manager , Engineer , Consultant, Secretary etc.
Job describes the position i.e. it is the basis for the creation of position.

Positions - S :
Position is the post held by an employee or user in an enterprise. E.g. HR Manager, Production Engineer etc.
Positions are created on the basis of jobs. Without a job we can’t create a Position.
Job Position
Manager HR Manager Sales Manager Payroll Manager
Engineer Production Engineer Software Engineer Mechanical Engineer
Consultant HR Consultant FI Consultant SD Consultant

Note : From one Job we can create multiple Positions. But it is not possible to create multiple Jobs from one Position.
Note :
It is always correct to have 1:1 relationship between Position and Person so that relationships work properly. For e.g. For 5 supervisors in production department there should be 5 distinct positions in SAP.
However, at lower employee levels (Workers/Labors) multiple employees could be hired against one single position.
Note :
Positions could be 100% filled, partially filled or kept vacant.
Note :
An employee can share two or more than two positions at a time. The sharing is based on percentage.
Note :
In the absence of position in the system, hiring action can take place. On performing the hiring action in this case, system hires the employee against default position no. 99999999. Once the actual position gets created into the system the employee gets assigned to this new position through ‘change in position’ action.
Note :
On separation the position assigned to employee gets delimited and gets replaced by default position (99999999).

Cost Centers - K :
Cost Center or Master Cost Center is an area where costs are incurred. It is maintained in financial accounting and further assigned to either Organizational Units (Department) or Positions.
Note : Only costs are collected in cost center and not company revenues.
Note : If root department is assigned to a cost center then all the sub-departments inherits the same cost center.
Note : If primary cost is allocated to different cost centers, then it is known as ‘Distribution of Costs’. It is done by maintaining info type 0027 (Cost Distribution) in PA module.

Persons - P :
A Person is generally an employee in the company who holds a position.

Task - T:
Task is a description of activities to be performed under a particular job for a particular position in the organizational structure.

Work centers - A :
Work centers describe the physical (geographical) locations where tasks are performed.
Functional Reporting and Line Reporting:
Functional Reporting means a person reporting to the manager of department where he performs his additional task.
Line Reporting means a person reporting to his departmental head.
For e.g. a person belongs to electronics department but can also perform the task related to electricity department. His reporting to the head of electrical department would be termed as Functional Reporting, whereas his reporting to his own departmental head (Electronics) would be termed as Line Reporting.

Matrix Structure:
The matrix organization represents a two-dimensional hierarchy. This is based on positions reporting to more than one superior organizational object. Matrix Organization is used for dual reporting.
Maintain the relationships in table T779M. To do this mention relationship name along with dimensions. For each dimension you have to give object type and the evaluation path.(e.g. O-O-S , O-O-S-P, O-S-P, O-O-VACS etc depending upon the matrix you want to maintain)
Through T. Code PPME the relation maintained in table T779M could be viewed.

Relationship and Evaluation Path:
- Relationship is the logical association between any two objects.
- Evaluation Path is the chain of multiple relationships. It describes the tree structure created in OM and
relationship formed amongst different objects involved.

Relationships (Table T778V):
Some of the commonly used relationships are as below.
Relationship Example
A002 Reports (line) to Sub-department reports to Root department.
B002 Is line supervisor of Root department is line supervisor of Sub-department.
A003 Belongs to Position belongs to Department.
B003 Incorporates Department incorporates Position.
A007 Describes Job describes Position.
B007 Is described by Position is described by Job.
A008 Holder Person holds of Position.
B008 Holder Position is holder of Person.
A012 Manages Chief manages Position.
B012 Is managed by Position is managed by Chief.

Commonly used Info types: (Range of OM info types is 1000 - 1999). Commonly used are stated below:
1000 - Object 1001 - Relationship
1002 - Description 1007 - Vacancy

Commonly used Transaction Codes:
Organization & Staffing:
PPOCE - Create Organization Structure PPOME - Change Organization Structure
PPOSE - Display Organization Structure
Expert Mode:
PO10 - Create Organizational Unit PO03 - Create Job
PO13 - Create Position PO01 - Create Work Centre
PP01 - General
Simple Maintenance:
PPOC_OLD - Create Org. Structure PPOM_OLD - Change Org. Structure
PPOS_OLD - Display Org. Structure
OM Actions:
PQ03 - Create Job PQ10 - Create Department
PQ13 - Create Position

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