What is organizational management in SAP HR

Organizational management (OM) is one of the important sub-module of SAP HR that helps in personnel planning and application development. Organizational management enables in analyzing the entire organizational structure and allows planning to develop personnel scenarios. In organizational structure, reporting structure plays an important role. When you are implementing ESS (Employee Self Service), MSS (Manager Self Service), PS (Personnel development) and ECM in SAP, the implementation of organizational management module is mandatory.

An organizational plan can be made with many object types, and the important basic object types are

  1. Organizational Unit, object type is O
  2. Job, Object type is C
  3. Position, Object type is P
  4. Cost center, Object type us K
  5. Persons, Object type is P

Organizational unit : – It describes a department, division, location or a organization department name depending on business process. For e.g. Marketing department, Finance department, etc.


Job : – In SAP, job is called as universal classification of tasks. It is a common skillset within the organizational plan or universal skillset in the organizational plan. Here it does not give the clear idea of the work, it just represent as skillset. For e.g. Manager, Executive, etc.

Position : – It is a common set of task within the organizational unit. For e.g. HR manager, Marketing manager, etc.

Work center : – Work center refers to a location, building or place where the employees are going to perform their job tasks.

Task : – Duties and responsibilities which are needed to perform by a particular object.

Cost center : – Cost centers track the expenses and revenues in an organization. In real time cost centers are created by SAP FICO consultants, but relationships with other object types will be maintained by HR consultants.

Organizational Structure methods

The following are the important methods to create organizational structure in SAP.

  1. Simple Maintenance
  2. Expert mode/ Detailed Maintenance
  3. Organizational staffing
  4. Maintained planned data
  5. Matrix structures
  6. OM actions