Positions are one of the objects that make up an organizational plan. Positions are the individual employee assignments within a company, for example the Manager of Sales, Secretary for Marketing, Junior Engineer for Manufacturing, and so on. By linking positions together via relationships, you identify chain of command in your organization.
It is by creating positions, and then creating relationships among the different positions, that you identify the reporting structure at your company.
You may create an unlimited number of positions for a plan.
It is recommended you create positions using jobs as a basis. Positions and jobs share characteristics, and so it is logical to create positions by copying a job. For example, if your company has 20 employees who hold the job of Secretary, you create the 20 positions by making 20 copies of the job Secretary. You then edit the separate positions so that they reflect any additional requirements.
You can create positions without using jobs, but it is recommended that you do not do so. Using jobs as a basis for positions saves you data entry time, and ensures consistency among positions.
Once a position is created, you describe all of its attributes by defining infotypes.
For example, you can allocate a position to an area of your company by relating the position to an organizational unit. You can assign an employee or a system user to a position. Or, you can identify a work schedule for a position, and so on.
To use Personnel Cost Planning, you must update the Vacancy infotype for the positions. You must also update the Cost Planning infotype for either the position, or the related job.
Positions can be used in conjunction with tasks and work centers to develop comprehensive job descriptions. The tasks describe the types of duties performed by a position, and the work center identifies where the tasks are carried out.
Chain of Command
You can use different methods to identify chain of command.
Some people identify chain of command according to a company’s organizational structure. They first identify the positions that lead individual organizational units within an organizational structure. The hierarchy among these positions is then derived directly from the hierarchy of organizational units in the organizational structure. (This approach requires that the hierarchy in the organizational structures corresponds exactly with the hierarchy among positions.)
Other people identify chain of command in a structure that is independent of the organizational structure. They build up a hierarchy of positions, often referred to as a reporting structure.
Organizational Management accommodates both methods. Your company must decide how it wants to handle chain of command, and then make the appropriate entries in its organizational plan.
To identify chain of command according to your company’s organizational structure, you must create and maintain:
To identify the chain of command by setting up a hierarchy of positions, you have two options:
The method you select to represent chain of command affects reporting. If you request a report that documents chain of command, you must ensure you name the correct evaluation path in the report request. The evaluation path varies according to how chain of command is set up.
Reporting structures are one of the hierarchical structures in Organizational Management organizational plans. They identify the:
For example, Vice President of Sales, Manager of Marketing, Secretary for Marketing Department
For example, the authority structure, or chain of command, at your company.
It is not mandatory to include a reporting structure in an organizational plan. You can use a reporting structure, or a matrix management structure, to identify who reports to whom, who disciplines whom, and so on.
Use reporting structures when the chain of command is hierarchical in nature.
Some companies might not maintain a separate record of the reporting structure for their organization, since reporting structures sometimes parallel a company’s organizational structure.
However, it is possible that a reporting structure does not parallel an organizational structure precisely, and so it becomes necessary to deal with the two issues of organization and authority separately.
There are a number of reports available that document the reporting structure at your company. You can also view a graphical depiction of the reporting structure using Structural Graphics.
You can build up reporting structures in either Detail Maintenance or Simple Maintenance.
Matrix Management Structures
A matrix management structure is a two-dimensional reporting structure, where a single position reports to, or is responsible to, two different positions from separate areas of the company.
The connections between a position, and the two different areas of the company, are categorized as:
Disciplinary relationships describe situations where one position has the power to hire, fire, promote, give bonuses, evaluate performance, and so on.
Subject matter or geographical authority relationships describe situations where one position provides direction to another from the point of view of the subject matter – a specific product, a special project, and so on – or from a particular geographical location.
Matrix structures are often found in manufacturing environments, and large multifunctional or multibranch companies.
A car manufacturer includes several divisions, such as Sales, Finance, Manufacturing, and so on. The manufacturer may also have several different products, such as Model #1, Model #2, Model #3, and so on. A position called Salesperson might be assigned to selling Model #1. In a matrix hierarchy, this Salesperson reports to both the Sales division, and to the Model #1 division.
It is not mandatory to include a matrix management structure in an organizational plan, although you would use either a matrix, or a reporting structure, to identify who reports to whom, who disciplines whom, and so on.
There are reports that document either the disciplinary and subject matter or geographical authority relationships in a matrix management structure. It is not possible to report on both dimensions of a matrix management structure simultaneously. (You must name the appropriate evaluation path.)
You can also request a list of relationships for selected positions. A relationship list includes both sets of relationships (disciplinary, and subject matter or geographical authority).
The following standard infotypes are applicable for positions:
Department/Staff Infotype (1003)
Work Schedule (1011)
Employee Group/Subgroup (1013)
Cost Planning (1015)
Standard Profiles (1016)
PD Profiles (1017)
Mail Address (1032)