LAVAZZA HR SYSTEMS Page 1 di 10. Lavazza. HR Systems
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1 HR SYSTEMS Page 1 di 10 Lavazza HR Systems Summary HR Systems schema Master Data management... 3 Organizational Structure... 5 Job System... 6 Recruiting and hiring... 9 Compensation Management
2 HR SYSTEMS Page 2 di 10 HR Systems schema Diagram of HR systems Lavazza Group: the part in pink is centrally managed; other systems are usually handled locally. This is the model of implementation of HR processes and systems. It is the central kernel that manage and collect all information, data and managerial events for all the Employee of Lavazza Group, in every Countries, in every Company. This is considered a strategic purpose in order to: support fully and proactively the business: HR processes faster, more efficient and effective tools and decision support (reporting and info timely, innovative and comprehensive) Support HR Group processes and ensure Global Best Practices will be used Grant a Reporting structure able to support the decisional process of Lavazza HR and Business Management ensure the maximum integration at Group level and Local one
3 HR SYSTEMS Page 3 di 10 Master Data management SAP HCM will be the first tool to manage employees data. Through the SAP HCM Portal, e.g., everyone can see organization charts, then Employee manages his own data Team Leader manages his team data (see his direct and indirect collaborators, and manages only his direct ones) HR manages the assigned employees data (his Company, i.e. a specific subarea, a specific set of Organizational Units,..). HR must also use the SAP GUI to complete some tasks in the system (eg hiring). SAP HCM (central for all the company) is MASTER to every local legacy systems. This statement means that every data management concerning employees master data and pay data, organizational structure, job system, personnel development first is approved and updated in SAP HCM and then is transferred through interface to the corresponding local legacy systems. For certain processes, the local legacy systems will send back the information updated to SAP HCM (e.g. Payroll and Time calculation). Forms & Workflows for approval: What does it mean to manage the system SAP HCM as Master and the local systems as Slave? It means that the information for which the SAP HCM system will be defined as Master must be approved and updated in this system and then will be transferred to the local systems. The Master is, therefore, the data source for all the HR local systems. To manage processes, usually the actor (HR function or Manager) logs in the system and use standard transactions to add, change or alter the data. Lavazza decided that every change or insertion in the system must first be approved or guided by a workflow. Should therefore keep in mind that, for each action to do in the system, we will use the workflow to be guided or to obtain the approval; after that update can be recorded in the system (and many of these updates, will be automatic at the end of the workflow).
4 HR SYSTEMS Page 4 di 10 This workflow is not managed in the SAP system standard, nevertheless Lavazza decided to implement the workflow system, to guide actors (for the proper management of the process) to make changes in the system. The word workflow, in this context, stands for process. This particular functionality help each actor (HR Office, Manager or Employee) to work on processes easily and more efficiently. Each workflow start from a specific web function available on the Manager Self Service or Employee Self Service (MSS and ESS) or on the HR Portal, such as form to be filled or other functionality. Actors in the workflows can be: Employee that can request master data changes (family, bank, address, marital status, communication details change), Education/Previous Employeer Change, Print CV Line Manager that can use employee functionality and also manage some HR processes: request administrative changes, person organizational changes, request object on loans, workforce planning, compensation, recruiting, etc..; HR Manager: the responsible for the subsidiary s or plant s HR activities. He generally reports hierarchically to the Subsidiary s General Manager and functionally to Central HR. He can manage people based on Organizational Structure definition by Central HR; Local HR: the office (or person) who manage business and/or administrative aspect of the employment; he can manage all Line Manager process and HR process like Request Long Term Absence, Termination, Resignation, Recruiting, based on permission; Central HR: the office responsible for Lavazza Group s Human Resources; Central HR DOP: correspond to the Director of Human Resources; CEO: The Chief Executive Officer of Lavazza Group. Interfaces: Starting from the activation of SAP HCM, HR Lavazza asks to all the companies in the group to use interfaces for input and output of point 1 and 2 of the schema. Through output interface they can download last updated master data changed on a specific period. By compiling a confluence table with the local wage type and global ones for Time and Payroll, they can load : PAY wage type TIME Information It should be compiled monthly, separately (one file for Pay Data and one file for Time Information). A WIKI MANUAL will guide local HR to perform such activities.
5 HR SYSTEMS Page 5 di 10 Organizational Structure Organizational structures is the core element of the SAP HCM System, for global management of relevant information regarding the relationship between Company, Divisions, Department, Team, etc.. Managed relationship will be both hierarchical and functional, in order to have a complete view of interdependencies and common projects, a unique org-chart and common reporting. All employees of the whole Lavazza Group (any types of people) will be loaded in the Organizational Structure of SAP HCM Group Lavazza. Object of the Organizational Structure Organizational Unit It is the basic object used for building the organizational structure and the organizational chart (the box) Multiple Organizational Units, and the hierarchical relationships between them, form an Organizational Structure In Lavazza an Organizational Unit (OU) exists when: There is a position / person responsible for resources assigned to workgroup; There is an assigned Cost Centre Position It is the container of person (the chair in which person may be sitting) It may exist even if no person occupies it (e.g. for planning or recruiting purposes) It corresponds to the activities and work to be performed by a specific person within a specific organization structure To meet local needs of quickly processes, in Lavazza we distinguish CENTRAL POSITION: Head of Subsidiary and the people who report directly to him; or some particular talent that require central management; or Italy ones LOCAL POSITION: all the other positions It can be defined a chief position within an organizational unit, to which all other positions in the organizational unit, report (hierarchical head); chief will be able to display data about all the employees in their Organizational Units Person Represent employees in your company. Persons hold positions in the organizational structure which is governed by Organizational Management Persons are maintained in Master Data and are linked to an organizational plan through their position assignment Task It may describe the specific responsibilities and activities performed by one position within the organizational unit They are used for supporting the workflow processes (as above described) Cost Center Cost Center is an object of SAP Controlling Module and is a container of costs For company integrated in SAP Lavazza they will be linked from SAP FI-CO module For company with other SAP System they will be charged by interface
6 HR SYSTEMS Page 6 di 10 For all other company they will be managed directly in SAP HCM module It should be assigned directly to an Organizational Unit, or inherited from a higher one; all positions in that Organizational Unit has the same cost center (unless exceptions) For each Organizational Unit, only one Cost Centre can be assigned. HR Manager This is a field managed in the same way of Cost Center. An Example of Organization: Organizational Structure Management These kind of changes are done only by Central HR (Local HR will be informed). Job System The Job System is a way of classifying jobs within the organization. Also called job model, it is the system of jobs and macro-jobs that describes the whole professional structure of the organization. All Jobs of all employees of Lavazza Group will be defined in a Global way: will be determined also the capability and skills to the required level, for each job. It is used as a basis for Appraisals, Recruiting, People Development and Careers & Succession Plan processes.
7 HR SYSTEMS Page 7 di 10 Object of the Job System Position is the object of connection between organization and professional model; it is described by the job Job ( Ruolo professionale in Italian) Jobs are the professions of the positions; in fact jobs describe positions label on the chair that describe activities to be performed to that role It describes a specific role within the organization, that describes all positions performing the same activities Macro-Job now this data is one to one to Job field Profession (in Italian Mestiere ) A group of similar jobs Job Family (in Italian Mestiere ) A group of similar jobs Competency = qualification represent a set of characteristics usually divided into capabilities: personal characteristics related to a specific behaviour (e.g. Teamwork) skills: technical knowledge or experience (e.g. Coffee Toasting Process Knowledge) It may be used to describe job (skills necessary to do that job) macro-job (capabilities needed to perform a group of jobs) evaluation (skills and capabilities evaluated) recruiting requisition (skills required to the applicant) applicant (skills declared by applicant). In correspondence the Job object, Lavazza use a field to define the "Fast Flow " ones to identify jobs that will trigger some automatic simplification in workflow processes (e.g. workforce planning extra-budget).
8 HR SYSTEMS Page 8 di 10 An Example of Job System: To design the whole Job System in an harmonious way, with uniform rules and possibly without duplication of data, it must be managed centrally in order to guarantee the value in global terms. Job System Management Changes to Job System can come from Central HR in term of definition of job, or related competencies. Any changes necessary to the job system is processed by Central HR C&SO.
9 HR SYSTEMS Page 9 di 10 Recruiting and hiring Object of E-Recruiting Applicant It is the central representation of everyone in e-recruiting. Person who has registered in the Web site of the Group and stored his or her data there. A candidate is usually interested in accepting a work relationship Requisition The internal view for an internal / external hiring request. It defines what you are looking for. The implementation of E-Recruiting include the following steps managed in the system: o Website for the applicants o Job posting; search, find, track and manage potential candidates; monitor step by step selection process (invitation to interview, the interview results, tests online or questionnaires, medical call, automatic notification, ) o Creation of the Requisition (by position open to be covered ) o Allocate the target candidate to a requisition o Contract preparation (including requisition selection, activities selection, benefits and pay data) o Data Transfer activation and Hiring Recruiting processes will be managed with different steps: Recruiting activation Recruiting Local Position Recruiting Central Position Recruiting Activation HR manager or Local HR request to Central HR the activation of recruiting for a defined. Positions in Open to be covered status doesn t need any other approval and recruiting management can start. For positions in other status (e.g. Central position), instead needs an update from Central HR. Recruitment Management Local Position HR manager or Local HR analyzes needs and starts recruitment process: he creates a requisition on SAP e-rec system, defines recruitment channel (internal/ external) and publishes request (with Job posting or in another way). Local HR carries out all the necessary steps to hire an applicant. If recruitment process is positive, Local HR prepares economic proposal and presents it to the candidate. When candidate accepts proposal Local HR update the candidate in To be hired and completes mandatory Hiring data. Recruitment Management Central Position Central HR/ Local HR detects and analyzed need to cover a Central position.
10 HR SYSTEMS Page 10 di 10 Central HR start recruitment process creating a requisition on SAP e-rec system, defines recruiting channel (internal/ external) and publishes request (with Job posting or in another way). Central and Local HR carry out all the necessary steps to hire an applicant. If recruitment process is positive, Central HR approve the hiring and Local HR can update the candidate in To be hired and completes mandatory Hiring data. Compensation Management The process of compensation is centrally managed at the global level: Central HR prepares the Reward Policy, defines Personnel Cost Planning and shares the guidelines with the Head of Subsidiary, HR Managers. HR managers collect the overall plan and send it to Central HR filling in the form their proposals. Central HR receives proposals and performs a final check (Central HR DOP) before authorizing payment of proposed amount. They are other central systems managed by HQ; they are powered by Master data of SAP HCM.
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