Oracle HCM Cloud - Positions vs Jobs Decision - A Case Study

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cloud@FusionObjects.com Fusion Objects Corporation
Oracle Fusion HCM
Position vs Job
Key considerations to make a decision

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AGENDA
• Key Definitions – Understanding Jobs and Positions
• Key Considerations – Selection
• Key Factors – Comparison
• Client’s current business needs
• Client’s readiness
• Questionnaire

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• Jobs represent the duties people perform and the required skills, for example:
• Professor
• Developer
• Accountant
– If your organization is a project-based enterprise, such as a construction or software
company, you require the flexibility to assign people to new projects or organizations on a
regular basis. You manage people and their skill sets, rather than fixed roles. This requires
the flexibility to match competencies to tasks quickly and easily. Project-based organizations,
where roles end when individuals complete a project, typically model the enterprise using
jobs.
• Positions represent a specific instance of a job, such as:
• Assistant Professor of Sociology
• Senior Software Developer
• Payroll Accountant
– If your organization is a rule-based enterprise, you regulate employment, roles, and
compensation according to strict policies and procedures. Fixed roles tend to endure over
time, surviving multiple incumbents. You manage roles rather than individuals. Examples
include government, higher education, and health care. Rule-based industries, where roles
continue to exist after individuals leave, typically model the enterprise using positions.
Key Definitions
Understanding Jobs and Positions

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Job Vs. Position Management
Job Based
Organization Structure
Position Based
Organization Structure

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• Job Based (Project Based Organization)
– If your organization is fluid (that is, if you tend to look at broader
groups of workers and create new jobs often)
– This method is useful if your organization is continually
expanding or if new projects require that you create new jobs or
job types regularly.
• Position Based (Rule Based Organization)
– If your organization is fairly static (that is, if jobs and job
descriptions are mostly fixed, and people move in and out of the
same positions)
• If your organization has Position based Approval and Budgeting
Rules.
– Government agencies and hospitals, which plan positions based
on budgets (often well in advance of filling the positions), find
this method very useful.
Key Considerations: Job Vs. Positions

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• Partial Position Management
– If you find that both methods work well in different
areas of your organization.
– For example, you might find that driving the system by
position works well for some departments or
management levels in your company and that driving
the system by person works well for others.
Partial Position Management

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Jobs Positions
Required Optional
Generic within Business Group Specific occurrence of one job
Independent of any single organization Must be unique within an organization
Jobs can occur in many organizations Linked to an Organization, Job and Location
Holds Fair Labor Standards Act (FLSA) Code Shared with Other Applications (i.e. Purchasing)
Holds Equal Employment Opportunity (EEO)
Work Category
Position Hierarchies control access to information
(security)
Associated with Worker's Compensation Codes
Comparison

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Pros Cons
Finer Degree of definition and control Maintenance Overhead (Refer Next Slide for
details)
Position Hierarchy Tree can be maintained for
reporting structure
Single incumbency can be used to define a one to
one relationship
Administrative overheads in case of larger or
more fluid company
Accounting and budget planning in advance is
easier
Stricter security can be enforced
Pros and Cons
Position Management

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FUTURE ADMINISTRATION & MAINTENANCE
• Positions require additional definition & maintenance
(they are linked to jobs, orgs, locations when setup)
and there tend to be more positions then jobs
• Jobs are more generic, reusable and the definition
of them when doing setup is easier as they are not
restricted by orgs or locations.
• Positions simplify assignment as they populate the
position's job, org, location, work hrs etc fields when
assigned to an employee.

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Factor Positions Jobs
Flexibility √
Frequent Reorganization √
Global Definition (Common Set) @Business Unit √
Integration/Alignment of HR, Comp, Purchasing
and FP&A
√
Tracking headcount, and managing vacancies √
Controlled Succession Planning √ Job Based
Approval rules Position Hierarchy Supervisor Hierarchy
Planning and Budget allocation Position Based Employee Based
Stringent Hiring Process – Re-hiring to the
same role
√
Automatic Vacancy identification √
Direct Reports Continue to report to
position
To be Re-assigned
Key Factors - Comparison

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CURRENT BUSINESS NEEDS
• Supervisor hierarchy is based on Employees. Reports usually
report to managers and not positions
• No indication of strict headcount maintenance within a
department or organization
• Client could be considered not much of rule based
organization. Rule-based- More rigid work structures with
fixed posts.
Position Readiness
• Client Work structure has scope for standardization
• Jobs are almost equivalent to Position with ratio close
to 1:1.

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OPEN QUESTIONS
Changes, Standardization, Flexibility
• How rigid are their positions? Do they change often?
• Is the organization continuously evolving where reorganization is needed as a result
of natural growth or acquisitions?
• Are Jobs and grades not standardized globally? There is hardly ever a need to create
new job for a new hire.
• Are the positions priced consistently. Or Compensation has to price each job?
Hiring Process, Headcount, Vacancy
• Do you hire multiple people for a single position?
• If someone is terminated/ leaves the position, is the position filled mandatory?
• When you replace headcount, can manager use the headcount in different job?
• Do you maintain headcounts in a department for example and track it?
• When EE is terminated or leaves, does vacancy automatically needs to be created?
• If 3 EE are terminated or leave, then are those filled back with 3 EEs or a decision is
made each time whether position needs to be filled?

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OPEN QUESTIONS
Team Structure
• Does a team of both inside and outside people( contractors) report to the Project Manager? and
outside people( contractors) report to the Project Manager?
• When EE terminates, then during the time the position of reporting manager is not filled, whom do
the EE report to? Manager’s Supervisor . How are the approval rules structured?
• Would you call the Client more as a service based company or the manufacturing company. On a
high level, roughly how many EEs are in Plants, Supply Chain, Operations, Sales & Marketing?
Workforce Planning & Budgeting
• Do you allocate budgets based on individual positions? Like Public Sector has a budget allocated
to each position, which is known as Position Budgeting?
• Would you be using Position Hierarchy for approvals or Employee Hierarchy?
• Does EPM or Hyperion get position (open vs filled, active vs inactive, budgeted vs un-budgeted)
information from current HCM systems?
• How allocation of Budget work? Is it based on positions?
• How does workforce planning function when it comes to Positions?
• Is there a need to integrate Cloud HCM with EPM system to exchange information for planning,
budgeting or forecasting purposes.
Purchasing
• Is Cloud HCM system going to be used in Purchasing department for workflow approvals?
• How is the PR’s/PO’s hierarchies in Purchasing?
• Does Purchasing derive position/role information from HCM?

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POSITION MANAGEMENT

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QUESTION
• How many people are in this department?

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QUESTION

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Thank You
Learn more:
www.fusionobjects.com/case-studies
Have a Question????
Reach us out at
cloud@fusionobjects.com

Oracle HCM Cloud - Positions vs Jobs Decision - A Case Study

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