Sunday, May 24, 2015

Hyperion Public Sector Planning and Budgeting Basics


Oracle Hyperion Public Sector Planning and Budgeting, is an integrated budgeting and planning solution suite that enables public sector and higher-education organizations to manage existing and projected budgets using current and previous General Ledger and Human Resource Management (HRMS) data.  Oracle PSPB requires deep understanding of Human Resource Management System (HRMS) and very few people understand the concept of HRMS. I often receive phone calls from our customer asking HR related questions and I always refer them to PSPB user’s guide and other HRMS books. I have tried to put most the PSPB related definitions on this article.

Positions in Oracle HRMS

Definition
Positions are used to define employee roles within Oracle Human Resources. Like Jobs a Position is an optional component of the Employee Assignment. However, unlike Jobs, a Position is defined within a single Organization and belongs to it. In other words, a position is a specific occurrence of one job, fixed within one organization.  Positions are independent of the employees who are assigned to those positions. You can record and report on information, which is directly related, to a specific position rather than to the employee.
For example, the position 'HR Manager' would be an instance of the role of 'Manager' in the 'HR' organization.  The position belongs to the organization. There is also a position of ‘HR Manager’ but this position is owned by the ‘Marketing’ organization.  Since the organization is different, this is another position.  There may be one, many, or no holders (incumbents) of a position at any time.
The position-based Organization is typically a highly structured environment in which all aspects of work and payment are well organized and regulated.  Common examples of this type of enterprise are found in government, education and other public sector industries.  A key feature of this type of enterprise is the concern with managing positions, or posts. Positions exist, and are managed independently of people in the position.  When a person is assigned to the position, that individual assumes the attributes that have been defined at the position level.  With this in mind, a singular position must be created for each unique combination of attributes for a position.
Positions are normally used in role-based enterprise structures where clearly defined rules largely determine the way employees work, and the compensation and benefits they receive.
A position will need to be defined for every unique combination of:
·         Job
·         Organization
·         Reporting To Position Hierarchy
·         Valid Grades (Valid Grades to which incumbents are assigned)
·         Position Requirements (Required qualifications or valid experience)
·         ·Position Evaluation (Evaluation information and overall evaluation score for the Position)
·         Position Key Flex Field (Name Field components, such as Position Title, Position ID or other client defined keys)
·         Position Successor
·         Probation Periods (To define the length of the Probation Period for incumbents holding this position)
Implementation Considerations for Positions
Position Hierarchies: Position hierarchies identify the reporting structure between one position and another position, versus a person reporting to another person.   This allows incumbents to move in and out of positions, leaving the reporting relationships intact, since the reporting relationship is not bound by the person assigned to the position.  Position hierarchies are needed if the client wants to control access to the system based on positions.  For example, if the client wants to ensure that the Manager of the organization can only view information about an employee based on reporting relationship, positions must be implemented. 
For Integration with other Modules: For Oracle Financials, positions are also needed to control levels of authorities.
Oracle Purchasing uses Jobs and Positions in the Document Approval process. Approval rules can be assigned to either Jobs or Positions by Document Type. If Positions are used, Position Hierarchies can be created for controlling the routing of documents through the approval process. Either the Employee- Supervisor method of forwarding documents (tied to Jobs) or Position Hierarchies (tied to positions) can be used. The Position needs to be assigned to an Organization and Job. Oracle Project Accounting allows users to budget and bill based on jobs, and to include job titles on invoices.

      Advantages:
Position definition with no override attributes, ensures derivation from the position.  It is more accurate because the definition focuses on the position and is not affected by the employee in the position
Deriving information from the position greatly decreases the data entry at the employee level.  Position attributes change less often than employee movement.  When the position attributes change, the system automatically updates incumbent records with the new value.  For clients who implement a many-to-one position relationship, this is highly valued as a single update to the position’s attributes will update each incumbent’s employee record

Defining Positions
Position Details Tab:
Pooled:  This approach is very good for organizations where groups of people are doing the same work (many employees assigned to one position), have the same reporting relationship (predominate in manufacturing and transportation industries).  This approach allows multiple people to occupy a single position that has the same attributes and reporting relationship.

Shared: This approach supports the ability to assign employees to several part-time positions.  This approach is becoming more common.  In some companies, an employee works part-time (20 hours) in one department and then part-time (20 hours) in another department.  In essence the company divides the employee and distributes the cost across the two departments.  The company benefits from only having to pay benefits to one person.

Shared Positions (Another Definition from Oracle)
Several incumbent employees can be assigned to a shared position, up to the value of the FTE defined. With shared positions, Public Sector Planning and Budgeting ensures that the total number of FTEs is the same as the number of assigned employees filling the position, plus the position vacancies. For example, if a position has an FTE of six to which four employees (each with an FTE of one) are assigned, the remaining headcount of two is a vacant expense. Assume that a Night Security Guard position has an FTE of two, a loaded headcount of four, and to which four part-time employees (each having an FTE of 0.5) will be assigned. If you assign one of the Night Security Guards an FTE of one (full time), three FTE or headcount remain. If a shared position is partially filled, average or default position-level salary, benefit, and allocation information derives the expense estimates of the filled and vacant portions of the position.

Pooled Positions (Another Definition from Oracle)
Because a potentially changing number of employees can be assigned to a pooled position, pooled positions can have multiple employee assignments. If an FTE value is unspecified for a pooled position, expenses are not calculated. Loaded pooled positions usually do not have FTEs. For these positions, budget expenses are calculated for assigned employees, and vacant expenses do not exist. FTE is usually not defined for pooled positions. However, to budget for a new pooled position without knowing how many employees will be assigned, assign a position FTE; budget expenses are computed based on this FTE. Typically, pooled positions are not used to calculate vacancy compensation, although you can define FTE without having first specified employee assignments


Single Incumbent: This approach is usually used for positions, which are managerial or at least static.  This approach is usually needed for those positions, which will have spending authority levels, and defined succession planning.  This approach assumes on position per person


Hiring Information:-
FTE: - (Full Time Equivalent): Number of FTE for the Position.
Headcount: - Proposed Number of employees for the Position.
Bargaining Unit: - This is usually the legally recognized collective negotiating organization. This is taken from the Look up 'BARGAINING_UNIT_CODE'
Earliest Start Date: - The Date after which people can be inducted into the Position.
Fill By date: - Cutoff date for filling the Position.
Permit Recruiting: - This is just for information Purpose to check if employees can be recruited for this Position and doesn’t impose any validation.

  Proposed Entry Salary:-
Payroll: - Payroll for Employees Holding this Position.
Salary Basis: - Salary Basis for Employees Holding this Position.
Grade: - Select the entry grade, which can be used to determine the entry salary. If valid Grades are defined, this should be one of the valid Grades for the Position. If the position is paid from a pay scale, select the grade step and scale rate that represent the entry-level salary for this position.  
Probation: - Probation Period of this Position,
Overlap: - Length of time a new incumbent can overlap with a leaving incumbent for transfer of skills.
Proposed Layoff: - Enter the Details of Layoff if needed.


Work Terms:-
Working Hours: Enter the Working Hours and the Frequency.
Normal Time: Start and end time of work.
Supervisor:  Person who supervises the Position.
Replacement Required: Check this if a Person Should get a Note to enter the Replacement person while entering absence information.
Works Council Approval: This is for European Countries. Select the Works Council Approval check box if the position falls under the jurisdiction of a Works
Related Position:  Specify the position of the person managing the Position. We use this when a Position is Managed by the Holder of a particular Position rather than a person.
Relief: Specify the alternate Position to cover this position when the holder of the Position is absent. I.e. The alternate Position employee will cover this Position when the Holder is absent.
                Successor: This is the Position from which a successor will move to this position when this position is vacant

Additional details:-
Enter comments, a posting description for recruitment purposes, and any special confidentiality or security requirements, such as a clearance level.

Budget:-
In the Budget Detail region, the application displays the measurement units the budget is tracking. You can enter total allocations for each measurement unit in the Allocated fields.
In the Periods region, you can also enter date ranges in the Start Date and End Date fields to identify budget periods you defined in your budget version. Here you can enter allocations at the period level.




Source:-
Position in Oracle HRMS: What Are They and How Are They Used? (Doc ID 434046.1)

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