Organizational Unit

Definition

An organizational unit is the primary object in an organizational plan. It represents any type of organizational entity designated to perform a specified set of functions within a company. For example, you can represent subsidiaries, divisions, departments, groups, or special project teams using organizational units.

Use

By creating organizational units, and then identifying the relationships between them, you identify the organizational structure at your firm.

You may create an unlimited number of organizational units for a plan. The units do not have to have a separate cost center designation. The only criterion is that your company sees an area as a clearly identifiable entity.

An Accounting Department can include two distinct groups. One can be the staff that performs day-to-day accounting activities, and the second group can be a special project team that is handling a conversion to new accounting software. The project team is to disband once the conversion is complete.

In this situation, both groups are part of the same department, and fall under the same cost center. However, the roles played by the two groups – and their lifespans – are different. Therefore, it can be helpful to create organizational units to identify the two areas within the Accounting Department.

Structure

To create an organizational unit, you must:

  1. Give it a name and description
  2. Describe its attributes by defining infotypes
  3. Identify relationships with other organizational units

These relationship records describe the hierachy between the organizational units.

How you do this depends on whether you are working in Simple Maintenance, Structural Graphics, or Detail Maintenance.

In Structural Graphics and in Simple Maintenance, relationship records are automatically created when you add new organizational units to organizational structures.

In Detail Maintenance, you must create the relationship records manually. (These are relationships A 002 and B 002, respectively.)

Organizational structures

Organizational structures serve two purposes. They identify the:

All organizational plans must include an organizational structure.

Organizational structures consist of organizational units, which represent the separate organizational entities found within a company, for example, divisions, departments, groups, or special project teams.

It is by describing the relationship between organizational units that you identify a hierarchy. Relationships are described by using the Relationship infotype (1001).

When shown in a graphical format, organization structures look like an organizational chart. An Organizational Management organizational structure can, however, be more detailed than a typical organization chart. You can include organizational entities that might not normally be included in an standard organizational chart.

For example, you can create organizational units to represent special project teams that have short, or finite, lifespans. Also, you can create organizational units to represent two areas that are part of an existing department, but perform two separate roles.

Integration

The following infotypes are applicable for organizational units:

Object (1000)

Relationship (1001)

Description (1002)

Department/Staff Infotype (1003)

Account Assignment Features (1008)

Work Schedule (1011)

Cost Planning (1015)

Standard Profiles (1016)

PD Profiles (1017)

Site-Dependent Info (1027)

Address (1028)

Mail Address (1032)

Sales Area (1037)

Work Schedule/Shift Group (1039)

Override Requirement (1040)