SAP HCM Interview Questions & Answers

  1. The components of the enterprise structure in SAP HCM are given as follows:
    1. Client
    2. Company code
    3. Personnel area
    4. Personnel subarea
  1. In the SAP R/3 (R stands for Realtime) system, a client is an organization and a legal entity. A client is positioned at the highest level among all the organizational units. It contains the master data of various business processes, such as customers, products, and vendors. A three-digit number is used to represent clients in the SAP R/3 system.
  1. A company code is a unique four-character alphanumeric code that represents a legally independent enterprise.
  1. A personnel subarea is a part of personnel area, which can be subdivided according to the geographical location or the strategic line of business. It is represented as a four-character alphanumeric code. For example, if the branches or locations of an organization are defined as personnel area, then its departments, such as HR and ADMIN, are the personnel subareas of the organization.
  • Personnel structure is defined as the structure of employees in an organization. It comprises employee groups and employee subgroups.The employee group allows you to divide employees into groups and define their relationship to the enterprise.

    Following are some important organizational functions that can be performed using an employee group:

    • Creating default values when data is input, such as creating default values for the payroll accounting area or basic pay of the employee
    • Creating a criteria of selection to be used during evaluations
    • Creating a unit to be used for authorization check.

    The employee subgroup is a part of the employee group and has the following functions:

    1. Provides processing information in payroll accounting.
    2. Provides information about the validity of primary wage types.
    3. Provides information about the validity of work schedules.
    4. Supplies  information  about the validity of pay scale groups.
    5. Provides information about the validity of time quota types.
  1. The following are the functions of the Personnel Administration module:
    1. Providing authorizations required for the maintenance of master data
    2. Assigning personnel number for people being recruited
    3. Maintaining  plausibility of other sub applications both within HCM and outside HCM
    4. Maintaining plausibility within personnel administration
    5. Designing input templates for personnel administration
    6. Designing work processes required for personnel administration
    7. Designing user interfaces.
  1. Global Employment is termed as an employee having personnel assignments with one enterprise or several affiliated enterprises, in more than one country at the same time.
  1. Infotypes are referred to as system-controlled characteristics of employees. Information related to employee is stored in the form of Infotypes,
    which are represented by a four-digit numeric code given as follows:

    1. 0000 for actions
    2. 0001 for organizational assignment
    3. 0002 for personal data
    4. 0003 for payroll status
  1. Features are decision trees customized in the Implementation Guide (IMG) screen in SAP HCM that are made up of technical fields whose values are defaulted in the easy access.
  1. IMG is a project support tool. It contains documentation about the implementation steps of the SAP system. It also helps you to control and document the project during implementation.
  1. Mandatory activities are activities for which SAP does not deliver default settings, such as organizational structure. Customer specific requirements must be stored for activities that are classified as mandatory.

Optional activities are activities for which SAP delivers default settings.
These default settings can be used if they satisfy the requirements.

  1. Non-required activities are activities for which SAP delivers all the default settings. These activities, such as country specific settings, are used rarely.
  1. Critical activities are activities that should be carried out very carefully, because errors in these activities may lead to negative consequences.
  1. Similar to critical activities, the non-critical activities should also be performed carefully, but the errors committed in these activities have less negative consequences.
  1. Personnel development plans provide professional development for the employees of an organization. It can also be used to perform the training and job-related activities.
  1. The Training and Event Management module is used to manage and schedule the training events and conventions.
  1. The SAP HCM Workflow automates business processes and assigns tasks to appropriate person at the right time.
  1. Compensation Management allows you to specify the guidelines for an organization’s compensation policy, which helps the organization to attract and preserve the best employees. It is necessary for the administration of compensation, such as carrying out payroll.
  1. Personnel Cost Planning is used to plan the personnel costs that are based on either the basic salaries or the vacated or filled vacancies. It can be done for the current year based on either the assumptions or the previous year costs.
  1. Shift Planning is a component of Personnel Time Management. It is used to plan the shift time and location of the employees according to their qualification and the number of job requirements. The document used to record this information is called planned shift document, which is also known as roster.
  1. Capacity Planning refers to the planning of production in an organization to meet the changing market demands of the products. The capacity is identified as maximum amount of work that an organization can complete in a given time period.
  1. Human Resource Information Systems enables you to perform standard reporting from all HR areas.
  1. The Manager’s Desktop is a computer system, which is available only to the managers. Other employees cannot see the Manager’s Desktop; whereas, the manager can use this computer system to see the status of all the employees who are logged in. The computer system also helps managers to perform their administrative and strategic works.

The HR is the most important division for any organization.
The processes of the HR department are employee administration, payroll, legal reporting of efficiency, and agreements with the changing global and local regulations.

Following are the important structures in HR:

  • Enterprise
  • Personnel
  • Organization
  • Pay scale
  • Wage type

ESS facilitates the employees of an organization to create, view, and change the data anytime and anywhere, with the help of various technologies. It provides employees with an employee-centric portal to enable them to access and modify the information required for their jobs.

For example: employees can manage their home address and emergency contacts.

Following are the functions required to select an Infotype:

  1. Create / INS
  2. Delete
  3. Delimit
  4. Lock / Unlock
    1. A new employee is hired with the PA40 transaction code. After that, all the Infotypes are maintained for the employee by using the PA30 transaction code.
  1. Global Employment is termed as an employee having personnel assignments with one enterprise or several affiliated enterprises, in more than one country at the same time.