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What Are The Main Components Of The Sap Hr Module?

By saphana 30 Oct, 2025 44
What are the main components of the SAP HR module?

The SAP HR (Human Resources) module — now more commonly referred to as SAP HCM (Human Capital Management) — is one of the core modules in SAP ERP. It helps organizations manage all aspects of their human resources functions, from recruitment to retirement. Here are the main components (submodules) of SAP HR/HCM:

 1. Organizational Management (OM):

  • Manages the organizational structure of a company (departments, positions, reporting lines).

  • Helps visualize relationships between roles and employees.

  • Basis for many other HR processes.

Key functions:

  • Define organizational units, jobs, and positions

  • Maintain reporting structures

  • Create organizational charts

2. Personnel Administration (PA):

  • Handles employee master data and personnel records.

  • Covers all administrative HR processes across the employee lifecycle.

Key functions:

  • Hiring, transfers, promotions, and terminations

  • Maintaining personal data (address, bank info, dependents, etc.)

  • Tracking work permits, contracts, etc.

 3. Payroll:

  • Automates payroll processing, ensuring accurate salary calculation and compliance.

  • Integrates with Finance (FI) and Controlling (CO) modules.

Key functions:

  • Wage type configuration (earnings, deductions)

  • Payroll calculation and simulation

  • Posting payroll results to accounting

  • Generating payslips and statutory reports

 4. Time Management (TM):

  • Manages employee attendance, absences, and work schedules.

  • Integrates closely with Payroll for accurate pay computation.

Key functions:

  • Shift planning and scheduling

  • Time recording (clock-in/out, leave, overtime)

  • Absence quotas and attendance management

 5. Personnel Development (PD):

  • Focuses on training, career planning, and skills management.

Key functions:

  • Employee appraisals and competency management

  • Training and event management

  • Career and succession planning

6. Recruitment (Recruitment Management):

  • Manages the entire recruitment process from job posting to hiring.

Key functions:

  • Job requisitions and advertisements

  • Applicant tracking and selection

  • Integration with Personnel Administration for hiring

 7. Training and Event Management:

  • Plans, organizes, and tracks employee training programs.

Key functions:

  • Scheduling courses and events

  • Managing attendance and costs

  • Integration with Personnel Development

 8. Compensation Management:

  • Handles salary structures, bonuses, and incentive plans.

Key functions:

  • Defining compensation plans and guidelines

  • Managing merit increases and variable pay

  • Integration with Payroll and PA

 9. Benefits Administration:

  • Manages employee benefits such as insurance, retirement plans, and allowances.

Key functions:

  • Enrollment and eligibility management

  • Benefit plan cost calculation

  • Integration with Payroll

 10. Personnel Cost Planning and Simulation:

  • Allows planning and forecasting of personnel costs.

Key functions:

  • Budgeting for salaries and benefits

  • Simulating different HR scenarios

 11. Travel Management:

  • Manages business trip requests, expenses, and reimbursements.

Key functions:

  • Travel planning and approval

  • Expense tracking and reimbursement

  • Integration with FI and Payroll

 Integration with Other SAP Modules:

  • FI/CO (Finance & Controlling): Payroll postings, cost allocations

  • MM (Materials Management): For training material procurement

  • PP (Production Planning): For time data of shop-floor employees

The SAP HR module, is also known as the Human Capital Management is a component of the SAP ERP system that is designed to manage core human resources processes like payroll, attendance, and recruitment. It centralizes employee information and automates workflows, covering the entire employee lifecycle from hiring to retirement.