Oracle Core HR

The core HR helps to manage the organization’s work structure, such as locations, organizations, jobs, positions, grades, etc. Core HR is providing a framework to store and maintain employee data and work-related information. This is the backbone of other EBS modules such as finance, sales, purchasing, etc.

An Overview

Oracle HRMS is major components of Oracle E-Business Suite application that included various HRMS modules as below,

  • Oracle Human Resources (Core HR)

  • Oracle Payroll

  • Oracle Self-Service Human Resources (SSHR)

  • Oracle Performance Management

  • Oracle iRecruitment

  • Oracle Time & Labor (OTL)

  • Oracle Learning Management

  • Oracle Advanced Benefits (OAB)

Full and Shared Core HR

Oracle Core HR has two versions as per usage: Full and Shared HR.

If HR is used as a foundation for other modules such as Financials, it just needs to be implemented for shared HR, but if it needs to use complete HR functionalities that are available with Oracle HR, it needs to implement full HR and accordingly get a license.

HR Model

There are four main pillars in Oracle HR Employment Model.

  1. Work Structures

    • It is representing the structure of the organization or enterprise that include job, positions, internal departments etc and provide framework for work assignments.

  2. People

    • It holds information about employees that worked in an organization including their contacts, standard information such as addresses, nationality, interview records, qualifications, and absence information.

  3. Compensations and Benefits

    • it holds information about employee salary and benefits.

  4. Assignment

    1. it holds information about an employee work related detail such as the organization for which they work, their role, grade, location etc.

Basic Components of Work structure
  1. Organization Structure

    An organization represents the structure of an enterprise. Multiple org classifications available, such as Business groups, HR Organization, Operating Unit, Inventory org, are available in Oracle Core HR R12. This can also be used to store standard information as per classification, like enterprise tax detail, Key Flexfields details, standard working day information, Parent Organization etc.

    Business Group is the top-level organization structure of an enterprise.

    Multiple business groups can be defined depending on enterprise structure, generally if companies exist in multiple countries. Oracle R12 supports multi-org functionalities.

    We can store standard information of business groups such as.

    Organization Types

    Business group

    External

    ….

    Organisation Classifications

    HR Organization

    Business Group

    Legal Entity

    Payee Organization

    Operating Unit

    Inventory Organization


  1. Location

    Locations are shared across Business Groups in HRMS and with two other Oracle applications: Inventory and Purchasing.

    It can be Global and Local.

  2. Job

    Oracle HRMS uses jobs to represent the duties or role that people perform in an organization. It is also used as a classification of same type of role.

    For Example,

    Manager

    Developer

    Accountant

    A. Job Group

    Define with Business Group and Job Key Flex fields

    B. Job Description

    Define Job description with require details

  3. Position

    Positions represent a specific instance of a job. It defines the hierarchical structure and reporting relationships within a company. Positions help in organizing employees, managing approvals, and defining security access in the system.

    For Example,

    Senior Consultant

    IT Project manager

    HR Manager

    Key Points

    Date Tracked

    Position Type

    Status

    Valid Grades

    Headcount

    Position Hierarchy

    You cannot change the organization or job once you have saved the definition in position.

    Position Hierarchy

    Positions in Oracle HRMS are linked through Position Hierarchies, which define reporting relationships between positions. Used in approvals, such as purchase requisitions, performance appraisals, and expense claims. Helps in defining workflow rules (AME) in Oracle Applications.

    Types of Position Hierarchies

    Oracle HRMS R12 supports two types of position hierarchies:

    1. Primary (Standard) Position Hierarchy

    Used for approval workflows (e.g., Purchase Requisition, Expense Reports).

    Only one primary hierarchy can exist.

    Helps in routing approvals through AME (Approval Management Engine).

    2. Secondary Position Hierarchy

    Used for security or reporting purposes.

    Can have multiple secondary hierarchies.

    Example,

    Director

    Department Head

    Practice Manager

    Line Manager

    Employee

  4. Grade

    Grades helps organization’s structure to define compensation, and streamline HR processes of their workforce. There is multiple grade models are available that ensures fair pay practices, career growth, and payroll efficiency.

    Grade Model

    Range based Model

    Step based Model

    Grade/Step Progression (GSP)

    Employees progress through predefined steps within a grade (e.g., Step 1, Step 2, Step 3).

    Point based Model

    Assigns points to different aspects of a job to determine compensation.

    Grades can be assigned at different levels:

    Job Level – A grade is linked to a job title.

    Position Level – A grade is assigned to a specific position within the company.

    Employee Level – Employees are assigned grades individually.

  1. HR Key Flex fields

    It is data fields that are configured to extend the applications to store values. Key flexfields is used to store multi -segment values, each segment represents meaningful data and generates unique value.

    These key flex fields are mandatory for Core HR and Payroll and need to be defined before setting up a business group. Only define one structure per Business Group for each of these flexfields for Job, Position, Grade, People group and Cost allocation.

    Core HR

    Job Key Flexfield

    Position Key Flexfield

    Grade Key Flexfield

    Personal Analysis Flexfield

    CAGR Flexfield

    Competence Flexfield

    Soft Coded KeyFlexfield

    Payroll

    People Group Key Flexfield

    Cost Allocation Key Flexfield

    Bank Details KeyFlexField

  2. Data Security

    Standard Security

    In the Standard HRMS Security model, when a business group is created a View All security profile is created.

    Ensure that the Enable Security Groups profile option is set to No at site and application level.

    Define Local security profile for business group.

    Define responsibility

    Set up HR: Security profile for responsibility

    Security Group

    When security groups are enabled, a new security group gets created for each business group, and the association of a security group to a security profile is determined by the business group.

    Ensure that the “Enable Security Groups” profile option is set to Yes at application level “Human Resources”.

    Warning: Once enable the security group, it cannot revert to Standard.

    Run the Enable Multiple Security Group Process

    Define security profile for business group.

    Define responsibility

    Associate a security profile with a user, responsibility and business group using the Assign Security Profile window.

    Run the Security List Maintenance Process

    Note: For Security Groups Enabled security do not set up or amend the “HR: Security Profile” profile option or the “HR: Business Group” profile option using the System Profile Values window.

  3. Security Profile

    The security profile determines which applicant, employee, contingent worker and other person type records are available to holders of the responsibility the profile is linked to. It is used to control access to organizations and employees based on security rules defined in profile. It is mainly used to restrict HR data access for view, modify.

    There are two types of Security profile,

    Global Security Profile – Grant access to all business groups

    Navigation -> HRMS Manager ->Security -> Global Security

    Security Profile -Grant access to specific business group.

    Navigation -> HRMS Manager ->Security -> Security

  4. Information Types

    Special Information Type (SIT)

    Store special information about employee, that store data in Personal Analysis Key flex fields (KFF)

    This needs to configure.

    Ex: Medical history

    Enable SIT

    Super HRMS Manager > Other Definitions > Special Information Types

    Select the require responsibility

    Extra Information Type (EIT)

    Store extra information about employee that store data in Extra Person Information Descriptive flexfields (DFF).

    Navigate to Application Developer > Flexfield > Descriptive > Segments

    Search DFF that needs to configure, for example, Extra Person Information

    Ex: Passport details

    Run Register Extra Information Types (EITs) Program to resgister EIT.

  5. Date Tracked Transactions

    It is a mechanism to store data based on dates in order to support the storage of historical data, along with the current ones. This functionality is used to tracking changes to employee data over time.

    There are two types of date track mode,

    When any data tracked record is update or delete, system will be prompt with a number of choices below,

    Update Mode

    Update

    · Correction

    · UPDATE_CHANGE_INSERT (Insert)

    · UPDATE_OVERRIDE (Replace)

    Delete Mode

    · DELETE (End Date)

    · ZAP (Purge)

    · FUTURE CHANGE (All)

    · DELETE NEXT CHANGE (Next Change)