The University of Tennessee Human Resources Business Blueprint

1. The University of TennesseeHuman ResourcesBusiness Blueprint

2. Agenda Business Blueprint Executive Summary • Goal of Business Blueprint • Tools Used • Enterprise Structure • Business Fit • Module Overview • Issues / Gaps • Change Management / Training Concerns

3. Business Blueprint AnalysisGoal Determine UT’s business process requirements Achieve a common understanding of how UT intends to run its business within the framework of SAP R/3 Deliver a record of results gathered Move into the next phase with enough information to complete baseline configuration

4. Business Blueprint AnalysisTools Business Process Questions (by process) Standard questions regarding UT’s organizational structure, processes and business needs Detailed Workshops Meetings with key users to discuss business processes and business needs Customer Input Templates high level summary of Processes Business Process Transaction Business Process Master List (BPML)

5. Human ResourcesEnterprise Structure

6. Personnel Area Knoxville Space Institute Chattanooga Martin Memphis Institute of Agriculture Institute for Public Service University Administration Medical Center Personnel Sub-Area Knoxville Space Institute Chattanooga Martin Memphis Clinical Knox Clinical Chatt Research Ctr Family Pr Knox Etc. Human ResourcesEnterprise Structure

7. Employee Group Regular Term Friends of the University Employee Sub-Group Faculty 9-month Faculty 12-month Other Academic Non-Exempt Staff Exempt Staff Medical Intern/Resident Student Casual Labor Special Appointment Etc. Human ResourcesEnterprise Structure

8. Human ResourcesBusiness Fit In Scope Enterprise Structure Organizational Management Personnel Administration Recruitment Benefits Training & Events Management Personnel Development Compensation Management Time Management Payroll Accounting Funds & Positions Management Information System Out of Scope Manager’s Desktop Shift Planning Succession Planning COBRA Administration Pension Administration Employee Performance Apprasials Retirement Limits / Projections Scaled Back Training & Events Management Personnel Development

9. Organizational ManagementModule Overview Forms the basis for the entire personnel planning and development application Facilitates analysis of the organizational structure Organizational customizing Allows planning to develop actual and proposed personnel scenarios

10. Personnel AdministrationModule Overview Establishes organizational hierarchies Used to perform essential personnel administration tasks such as: hiring employees performing organizational reassignments termination from the University salary adjustments Data stored in such a way that you can easily access and maintain at any time

11. RecruitmentModule Overview Functions you need for working through the entire recruitment process Contains an entire range of powerful, flexible functions that you can use to implement an effective – and largely automated – recruitment strategy such as: Receipt of application via web access (ABAP programming required) Issuance of recruitment requests Selection process of applicant Applicant pool administration Notification to applicants

12. BenefitsModule Overview Comprehensive method of administering employee benefits such as: Health (medical and dental) Insurance (Life) Savings (Retirement) Spending Accounts (Medical and Dependent Care) Encompasses the key concepts and processes you need to manage extensive and highly individual benefits packages for your employees Open Enrollment Employee Life-cycle Events (e.g. Marriage, Child, and Separation)

13. Enables you to plan and manage business events Training Conferences Interfaces with other R/3 components Basis for extending and updating employee’s skills and knowledge Flexible Reporting Appraisal functions Provide important decision support feedback to ensure the business events offered are both high quality and effective Training & Events ManagementModule Overview

14. Helps compare current or future work requirements with employees’ qualifications, preferences and aspirations Can contain general measures to impart qualifications so that employees retain or further their professional skills and keep track with technological developments Converts training proposals directly into bookings for employees with qualification deficits or needs Personnel DevelopmentModule Overview

15. Toolset for strategic remuneration planning Empowers managers to offer competitive and motivating remuneration Fixed pay Variable pay Merit increases Promotion Includes Personnel Cost Planning Allows experimenting with future projected costs Compensation ManagementModule Overview

16. Time ManagementModule Overview Enables flexible representation of all personnel procedures involved in recording and evaluating employee time data Infrastructure for time data recording Work schedules Record of planned attendance and absences Recording of attendance and absence Annual and Sick Leave accrual Time evaluation Ability to transfer absence and attendance data to other SAP applications

17. Payroll AccountingModule Overview Ability to process payroll for employees using data from SAP Personnel Administration, Benefits, and Time Management Payroll run (regular and off-cycle) Payroll corrections Payments Remuneration Statements Posting to Financial Accounting Third Party Remittance Offers a number of standard payroll reports Tax Reporter component allows you to generate all required state and federal tax forms, such as SUI reports and W-2s

18. HR Funds & Position ManagementModule Overview Finance employees for specific periods of time Determine the funds required for financing employees Default values from tables Simulating a payroll accounting run Generate fund encumbrances Relieve encumbrances by actual payroll data

19. Information SystemModule Overview Broad range of reporting functions for all areas of Personnel Management (Standard Reports) Capability to define your own reports efficiently and quickly (Ad Hoc Query) Note: Evaluation of Mission Critical reports by module is currently underway.

20. Human ResourcesMajor Identified Issues Moving to one (1) Payroll Cycle Longevity Payroll Re-calculation Payment of Overtime Distribution Holiday Pay for Term Employees Compensatory Time Banking Leave accrual for employees with multiple positions One definition of FTE for The University Limitations on account assignment in Personnel Cost Planning Establishment of approval process for adding positions during budget process Accrual of salary for nine (9) month faculty (9/12) Decentralization / Centralization of functions

21. Human Resources Gaps Assignment of employees to multiple positions Sick Leave Bank Retirement Projections Tax Deferred Limits Non-resident Aliens Processing Common Pay Master HMO Benefit Eligibility Etc. Note: Workarounds are currently being identified to address these gaps

22. Decentralization of some functions down to the departmental level Approvals / Workflow Terminology Works schedule concept Time being recorded daily Procedures being enforced consistently Enterprise Structure concept Positions vs. Employees Organization Structure vs. Accounting Structure Standardization of forms Longevity payment Overtime calculation Pay cycle decision Immediate integration of data Change Management / Training Concerns

23. Human ResourcesBusiness Blueprint Questions ?