Case Study

• Streamline HR Business Process
• Implement system to maintain centralized data
• Develop Automated system
• Re-organize the structure
• Implement appraisal system

Objective

• Demonstrate HCM features available in HCM Cloud system pertaining to business process.
• Demonstrate the capability of cloud system.
• It should have the capability to cover the complex integration / developments.

• Implementation will be done for all employees including top management.
• Logical end to end business flow needs to be covered having medium level of customization.
• Approval functionality needs to be incorporated toshow end to end business flow.

• Running system including automation and integration with third parties.
• Documentation on Implemented Business Process flow.
• Capabilities of the product.

• Ability to define organization hierarchy, organization structure of company.
• Ability to define various categories of employees across the countries.
• Ability to define name of functions, sub-functionsand positions and hierarchy of positions.
• Ability to support integration of positions with manpower planning to understand staffing requirements.
• Ability to maintain change in designations due to promotions, transfers (Integrate with Promotion Module, Transfer Module)
• Ability to define multiple organizational structures (positions), multiple reporting relationships and additional responsibilities given to individuals and integrate with the respective employee data.
• Ability to define administrative powers for organizational units position-wise.
• Ability to tightly integrate administrative power definitions to work flows and approvals
• Ability to define all Rules, Procedures, Regulations for outsourced employees.
• Ability to store and maintain employee personal data such as employee no., name, addresses, phone numbers, emergency contact information and email addresses, Bank Account Details, Passport details etc.
• Ability to store digital signature of employees every 5 years.
• Ability to maintain names, date of birth and contactdetails of spouse, children, dependents, parents, dependents, nominees under different schemes, etc.
• Ability to maintain employee’s health problems,medical history and capture the details (integrate with payroll for reimbursement amount and health problem details, including low medical category)
• Ability to issue NOC for obtaining passport/visa/study abroad or for outside employment.
• Ability to integrate Organization management with employee master
• Ability to maintain history of trainings attended (prior to joining & after joining) like name of the course, name of the Institution, month & year of training, duration of the course in days/weeks etc.(integrate with T&D)
• Ability to maintain details of promotion from onegrade / scale / discipline to another including any reappointment through internal selections.
• Ability to maintain details of suspended employees(reasons of suspension, time duration of suspension, restricted privileges etc.)
• Ability to give permission for loans for obtainingmovable, immovable property, higher education.
• Ability to maintain and view employee leave details
• Ability to provide restricted access to different classes of employee master data
• Ability to maintain the group insurance related details for each employee, like insurance number, nominee details, amount etc.
• Ability to maintain performance appraisal ratingOf last all years and promotion details. (360 degree appraisal process for Sr. managers and above)
• Ability to provide address proof letter to employerfor various purposes
• Ability to mark attendance and fill time sheets (manually in labor, automated for employees)
• Ability to Check the status of leave request
• Ability to view compensation and benefit details.
• Ability to view the Performance Linked Incentives (PLI) earned during a year.
• Ability to enter and approve general claims and expenses through the system
• Ability to approve/Reject the Training requests for specific programs which were not included as training needs in PMS form.
• Ability to view history of past trainings attended.
• Ability to upload final rating online.
• Facilitate employee to fill exit interview form (for resignation)
• Integrate Time & Leave Management with OM,ESS & Payroll Module
• Ability to automate the process of Succession Planning
• Ability to identify key positions (employees who are retiring in a span of 3 years) to formulate the vacancy list (Integrate with Employee Master Data Module) Capabilities

A team of business analysts has worked with ABC Corp. to review its organizational structure. The analysts have assisted ABC Corp. in defining their key divisions, organizations and positions necessary to implement Oracle HCM cloud.

Organization Data for ABC Corp.

This document defines the organization structure of ABC Corp. It includes definitions of:

• Organization Structure
• Position Structure
• Responsibilities

Organization

ABC Corp. is a holding company for ABC Corp. US, ABC Corp. UK and ABC Corp. ME.

A team of business analysts has worked with ABC Corp. to review the business processes for this implementation and they have developed a set of detailed requirements that form the basis for the proof of concept project. The requirements have been grouped into the following major categories:

• User Interface Requirements
• Data Organizations
• ABC Corp. Data
• Additional Configuration
• Business Process Automation

The business analysts noted that ABC Corp.’s process flow will be accommodated very easily by the standard Oracle HCM application that ABC Corp. has purchased. The proof of concept application must provide appropriate screens and views for the following users:

• HR Manager
• Hiring Manager
• Payroll Manager
• Time Keeper
• Absence Administrator
• Employee
• Line Manager

It will be sufficient for each to use the as-delivered screens, views and functionality.

To maintain personal and job details of each and every employee, HR Manager needs access to screens where they can maintain the details.

HR Manager will be responsible to maintain Workforce structures, Employee records, transfer process, promotion process and termination process.

They need full access in order to maintain employee’sdetails.

ABC Corp. had problems in the past where vacancies have been incorrectly created. For this implementation, ABC Corp. would like to ensure that correct vacancies should be created and they should monitored and filled within timelines.

ABC Corp. would like to ensure that payroll should be implemented properly and it should cover all the current scenarios.

ABC Corp. wants that the attendance system should be implemented in such a way that it should get integrated with absence and payroll Oracle system. Attendance system should give exceptions based on rules and same can be used for analysis.

ABC Corp. now wants to implement the Absence system in order to include all the leave policies. Also Absence system should be integrated with Payroll and attendance system.

Now, once Oracle HCM Cloud is implemented, Employee self-service functionality needs to be implemented and it should be integrated with the HR system.

Requests need to be approved based on approval matrix.

Once Oracle HCM implemented, Manager self-service functionality needs to be implemented and it should be integrated with HR system. Requests need to be approved based on approval matrix.

• Job
• Location
• Department
• Position
• Employee Basic Details
• Employee Assignment Details

• CEO
• VP
• Manager
• CFO
• Sr. Accountant
• Manager
• Executive

• Portland
• California
• Michigan
• New York
• Florida
• Georgia
• England
• Newcastle upon Tyne
• Birmingham
• Dubai
• Abu Dhabi

• Job
• Department
• Position
• Employee

A. Vacancy creation based on vacant position

The ABC Corp. wants that based on vacant positions due to resignations, transfers or promotions, vacancies should be created in the system. Based on these vacancies, hiring process needs to be initiated.

B. Upload Job details while creating applicant

Once a candidate is hired based on a vacancy available in the system, the system should create applicant record for that candidate in the system. When HR manager is creating an applicant’s record, they should fill job details of that candidate. These job details will be copied while converting to an employee from an applicant. This process will increase efficiency during on-boarding process.

C. Notification for onboarding process before one week of joining

The Oracle system should sent notification to HR Manager one week before the hire date of the employee. The checklist available under notification will help the HR manager to complete the important tasks before their joining. Also organization will arrange for the required resources for onboarding.

D. Access to Employee data based on countries.

The ABC Corp. wants that HR manager should have access based on the country. They should not have access to view employee details of any other sister company.

E. Approval while creating employee records

System should sent requests for approval while creating an employee in the system. Approvals should go to the hiring manager so that they can validate the employee details based on the vacancy.

Business Process Automation

ABC Corp. wants to automate major processes in order to avoid manual interventions.

Automate the Hiring Process

Once candidate is hired based on an approved vacancy, their employee record should be created in system automatically. Also the Oracle system should have the capability to load multiple employees at a time.

Key Business Process for ABC Corp.

This document defines the Key business process of ABC Corp. It includes the:

Leave Process

ABC Corp. is a holding company for ABC Corp. US, ABC Corp. UK and ABC Corp. ME. It is following the below mentioned leave structure for their employees.

ABC Corp. Leave Structure

Leave Rule

• Leaves cannot be claimed as an employee’s right.
• The entire leave management process is maintained manually.
• Employee fills up the leave form request with relevant supporting documents (if any).
• Approval required from competent authority.
• If rejected, employee is notified.
• In case the employee wants to go on any leave, approval is required from the department head or from other competent authority
• In case of LWP, it goes to pay bill section for salary deduction.
• Updates are made to Employee’s Personal file.
• For suspended employees, there is no leave entitlement.
• Continued leave period for more than 5 years should not accepted under sabbatical leave structure.
• Leave once sanctioned can be rejected later if required (in case of public interest).

Leave Types

There are following types of leaves:

• Casual Leave
• Optional Leave
• Earned Leave
• Leave Without Pay (LWP)
• If rejected, employee is notified.
• Sabbatical Leave

Casual Leave:

• Calculated @1 in one month.
• 13 days entitlement during a complete calendar year
• Gets lapsed after the calendar year.
• Fresh CL balance of 13 is updated on 1st Jan of every year.
• Holidays are not included if an employee applies
  for casual leave.
• CL cannot be clubbed with any other leave.
• The number of leaves that can be taken at a time depends on the approval of the head of department.

Sick Leave:

• Maximum 10 days of sick leave entitlement.
• Without medical certificate, maximum 3 days of sick leave can be taken.
• Line manager and HR manager can approve or disapprove the applied leave.
• Employee will be entitled for a full day salary.

Earned Leave:

• 30 days entitlement during a complete calendar year, 15 leaves will be credited in advance on 1st Jan and rest 15 leaves will be credited on 1st July. After every 6 months, the leave balance will be updated.
• If an employee joins in middle of the year, then leaves are added @2.5 days per month.
• EL leave balance is carried forward for maximum of 240 days.
• Employee can apply leave before 21 days using a printed application form.
• During continuous period of leave, interim holidays/public holidays will be included as an earned leave.
• Earned leave can be prefixed and suffixed without mentioning in EL balance.
• Upto 90 days, HODs approval is required to
  approve the leave and after 90 days, next higher authority approval is required to approve the leave.
• EL can be added and adjusted in leave file.
• EL can be extended by giving application to the concerned department; and once employee returns from the leave, recalculation would be done.
• Employee can take 120 days leave and same can be extended till 180 days.
• EL can be surrendered at the time of retirement.
• Employee can not apply Earned leave for half day

Leave Without Pay (LWP):

• Salary will not be given during the LWP duration.
• • LWP duration would be considered as break up in service if without a medical certificate.
• HOD has full rights to convert any type of leave to LWP leave.
• Employee is eligible for the HRA allowance if an illness certificate is provided. There will be no service break counted for the employee.

Leave Without Pay (LWP):

Attendance Process

ABC Corp. is a holding company for ABC Corp. US, ABC Corp. UK and ABC Corp. ME. They are following the below mentioned attendance process for their employees.

Attendance Process Steps:

• Employee Attendance is maintained manually in excel.
• Employees working in the fields do mark attendance.
• Managers do not mark their attendance.
• Employee present days are used to calculate employee/officers paydays.
• Employee paydays are calculated by number of working days in the month minus number of unapproved leave days.

Attendance Flow

Appraisal Process

Following are the Stages for Individual appraisal process:

(i) Objective Assessment: The objective assessment shall be quantitative in nature and constitute an objective scorecard with key performance indicators, weightages and targets.

(ii) Subjective Assessment: The subjective assessment shall be qualitative in nature and continue to be obtained from the qualitative parameters from the existing system of Annual Confidential Report (ACR).

Appraisal Process

Following are the Stages for Individual appraisal process:

(i) Objective Assessment: The objective assessment shall be quantitative in nature and constitute an objective scorecard with key performance indicators, weightages and targets.

(ii) Subjective Assessment: The subjective assessment shall be qualitative in nature and continue to be obtained from the qualitative parameters from the existing system of Annual Confidential Report (ACR).

Performance Appraisal Committee (PAC)

The company shall form a Performance Appraisal Committee which shall be responsible for fullowing tasks:

• Identifying and reviewing the Key Performance Indicators/ Weightages/ Targets for company and respective departments
• Review and modify any requests for change in KPI/ Weightages/ Targets by HoDs or Individuals
• Monitoring of the entire performance appraisal systems
• Resulution of grievances raised by employees, post the sign off
• Updating the system in case of any significant changes

Composition of the PAC

The Company forms the committee comprising of all the departmental heads including the HR section head as the Chairperson.

In addition to the above, the committee shall be supported with the fullowing manpower

HR Manager – 1 Departmental Head – 3

Appraisee/ Appraiser/ Reviewer

Every appraisee will record the period of service under his appraiser(s) and reviewing authority(s) during the Performance Appraisal Cycle.

It is to be ensured that an Appraiser shall be of the rank of Line Manager (equivalent) or above and Reviewer shall

be of the rank of Department Head (equivalent) and above.

Performance Appraisal Process

• Initiating Performance Appraisal System – Setting up of Departmental Key Performance Indicator (KPIs) and their Targets
• Review of Departmental KPIs and their Targets
• Identification & Finalization of Individual KPIs and their Targets
• Mid-Year Review
• Year-End Appraisal

Identifying Key Performance Indicator

• The Key performance indicators shall be defined by the While identifying the KPIs, the committee should ensure that these KPIs should be Specific, Measurable, Achievable, Realistic and Time bound.
• With the KPIs, their calculation sheet shall also be

shared which will have the formulae for calculation of achievement.

Target Setting

Guidelines for Target Setting

• Baseline to be defined for each KPI
• Study of past trends with respect to their cyclic and/or seasonal variations
• Determination of the appropriate method of computing the targets like simple average, moving average, weighted average,
• Defining the tulerance band of performance of the KPIs with respect to the upper and lower contrul limits

Request for Change (RFC)

• These are requests raised by Appraiser/ Appraisee/ Head of the Department for revision of Key Performance Indicator(s), their Weightages and targets assigned to These requests are to be submitted to HR Section in Corporate Office manually.
• Based on the inputs the Performance Appraisal Committee shall discuss on these RFCs and in case required they shall get in touch with the HOD / Appraiser /

Mid-year review

A mid-year review is important to review the progress on KPIs and their targets. The guidelines for the same are mentioned below:

• The discussion is to be initiated by the appraiser and shall be between him/ her and the appraisee
• During the discussion the appraiser should record the appraisee’s progress, achievements and challenges if any
• The appraiser will share the feedback with the

appraisee. Appraisee will record his/her comments on the feedback and a copy of same will be acknowledged by appraisee. will sent a photocopy of this (acknowledged copy) to HR Section.

• The Appraisee on receipt of his/her Mid Year Review Performa, shall give his/her respective comments on the feedback and will submit it back to his/her respective
• If appraisee does not agree with the feedback of appraiser, HR Section will pursue the
• In case an appraiser or appraisee feel that their targets need to be revised then the request for the same in the RFC form is sent to HR Section for consideration.

Year-end appraisal

At the end of Performance Appraisal process, each appraisee shall be required to fill their Performance Appraisal Performa that was shared at the beginning of the appraisal process and submit the same to his/her appraiser.

Guidelines for filling up the Performance Appraisal Performa

While filling the performance appraisal , the APPRAISEE should keep fullowing points in mind:

• The appraisee should fill the KPIs, respective weightages and targets for his/her current appraisal year post the finalization of the KPIs by his/her appraiser.
• He/she should ensure that at the time of year end appraisal, the achievements are reported accurately and the final scores are calculated as per the
• At the time of filling up the Performance Appraisal Performa, the appraisee should maintain utmost honesty and integrity in writing their performance for the appraisal year

Similarly, the guidelines for APPRAISER are:

• He/she should assess an officer’s qualities and
• present performance
• Ensure that the KPI, Targets and the achievements filled by the appraisee are verified from the data made available onwebsite for internal circulation by concerned department of Corporate
• Identify the line manager’s potential for future growth
• Promoting individual performance and organizational efficiency through timely corrective measures
• Each attribute has to be evaluated
• Do not make snap judgments
• Be developmental in your assessment

The Appraiser should judge the Appraisee in the Subjective Assessment under the fullowing parameters:

• Conduct with subordinates, peers, superiors
• Attitude towards weaker section of society and Females
• Written and Oral Communication Skills d)Punctuality
• Leadership Qualities
• Sense of responsibility
• Aptitude towards learning new things
• Any new initiative taken in the assessment

Guidelines for REVIEWER:

• The reviewer must ensure that the final rating given to the appraisee by the appraiser is justified by reasonable explanation
• Once the reviewer is convinced that the information submitted by the Appraiser and Appraisee is correct to the best of his/her knowledge s/he shall sign the report and forward it to the HR section

Calculation of Objective Marks

The objective score shall be calculated as a summation of KPI wise actual achievement as per the target assigned to them

Total Marks = ∑d = 40+25 = 65 (out of 100)

Calculation of Final Rating

The final rating for any individual shall be calculated based on the scores in Section A and Section B. The weightages of these scores shall be

Example for Sr. Manager or equivalent

Objective Marks = 80 out of 100

Subjective Marks = 50 out of 100

Total Score       = 80*75% + 50*25%

= 72.5

Rating wise merit points in the performance appraisal system (PAS)

Training Process

The purpose of this process is to lay down the learning and development opportunities for an Employee in the Company:

Types of Training

• In‐house Training
• External Training

In‐house Training

• Induction training
• Induction training primarily involves introducing the new entrant by the departmental head to the various departments and the staff concerned. The administration and HR systems and procedures shall be clearly explained to the new entrant, specifically relating to his/ her entitlements. This shall enable a new entrant to settle down over a period of a week.
• In addition to the basic introduction, an induction program has to be drawn up for all new entrants. This program shall be based on acquainting the new staff to the systems/operations of all the functional areas, as these shall have a bearing on his/ her own area of work. Thus, all new entrants shall go through an induction program, aimed at acquainting him on the Company’s activities/systems and specifically, on each functional area.
• The HR department formulates the induction program for the new staff in consultation with the concerned supervisor and after discussions with the supervisors of other departments based on the time they can allot for training the new staff.
• The induction program shall commence within a week of a new entrant joining the services. The duration of the program shall vary, depending on the job position, grade, Seniority, qualifications and work experience of the new staff.
• For a senior staff, 1 – 2 weeks induction (2 hrs per day basis) may well serve the purpose, while in the case of a campus trainee, a 1 to 6- month classroom induction program (on a full time basis) shall be the required time for briefly acquainting him on various functional areas.

Induction training shall be given to all new recruits in the Company.

• On the job training
• “On the job” training shall be followed by Induction training.
• In House Course
• The Company shall train its Employees also through in-house courses.

External Training

• Training needs analysis to be part of yearly performance appraisal report of an employee and the same needs to be separated and shared with training department.
• The ultimate goal of training is to improveEmployee’s levels of efficiency and accountability which would result in enhanced customer satisfaction.

Payroll Process

Payroll, a rules-based payroll management system, assists in controlling the workforce costs; ensures the entire workforce is being paid on time and according to the compensation rules.

Process Chart