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Implementing Global HR: From Enterprise Model to Live Workforce · Module 5 · Divisions, Departments, Locations and Trees

Departments and cost centers

Lesson 49 of 175 · 15 min

A department is where a worker sits organisationally. It carries a manager, a location, and — critically — an association to a cost centre in the financial chart of accounts. That cost centre association is the join between HR and Finance. If you took the Financials course, this is where their chart of accounts meets your HR structure — and getting the mapping wrong sends labour cost to the wrong place. It will be Finance who notices, not HR. On granularity: the department structure should match how the business actually manages people, which in practice is finer than the legal structure and coarser than the team structure. Both halves need saying, because people err in both directions. Then the build: a three-level hierarchy, managers and locations set, cost centres associated, legal employers associated, department title behaviour configured — and effective-dated changes shown, including what happens when a department moves in

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In this module: Module 5 · Divisions, Departments, Locations and Trees

  1. 1Divisions and when you need them
  2. 2Departments and cost centers
  3. 3Department classifications and reporting establishments
  4. 4Locations
  5. 5Disability organizations
  6. 6Worker unions and collective agreements
  7. 7HCM trees
  8. 8Building and publishing trees
  9. 9What breaks
  10. 10Lab: build the management structure