In this post I will walk you through the concept of the Person Model in Peoplesoft and the Employment Model in Oracle HCM Cloud. Both describes how a person or a human resource is attached to an organization. The concept of Person/Employment model is some what similar in both Peoplesoft and Oracle HCM with some new features or concepts added in Oracle HCM.
You will be able to understand those differences at the end of this blog.
Person Model - Peoplesoft
Person Model in Peoplesoft is a way in which the person's demographic information and his/her realationship with the organization is stored in the Peoplesoft database.
Some of the important terminologies are:
- Organizational Relationship
- Organizational Instance
- Job Assignment
Organizational Relationship
There are three different ways in which a Person can be related to the organization. This is know as the Organizational relationship and is identified by the field PER_ORG.
- Employee (PER_ORG = EMP) - These include the regular employees within the organization, employed and paid by the organization
- Contingent Worker (PER_ORG = CWR) - A non-employee who is part of the workforce, e.g Contractors. They not have a legal relationship with the organization and are employed and paid by some other organization
- Person of Interest (PER_ORG = POI) - A non-employee who is not a contingent worker as well but is of interest to the organization
Organizational Instance
When an organizational relationship is created for a person an Organizational Instance is created in the database. This is identified by the field ORG_INSTANCE_ERN. The organizational instance can be an Employment Instance, Contingent Worker Instance or a POI Instance. The first Organizational instance of a person is his primary/substantive job.
The substantive job is the one that defines the Hire Date, Seniority Date, etc.
Job Assignment
The organizational instance is followed by an assignment creation, which has the Job information.
The below diagram summarises the Person Model showing an eample of a person with multiple assignments and multiple relationship with the organization.
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| Person Model |
Employment Model - Oracle HCM Cloud
Employment Model is an important concept in Oracle HCM cloud which gives information about how a worker is related to the organization or to be more specific a Legal entity/Legal employer in HCM Cloud. The Oracle HCM cloud employment model can support simple or complex global work relationships. To configure employment models for the enterprise or for individual "legal employers", use the Manage Enterprise HCM Information and Manage Legal Entity HCM Information tasks in the Setup and Maintenance work area respectively.
Employment model has three entitites:
- Work Relationships
- Assingments
- Employment Terms
Work Relationships
Like the Org Relationship in Peoplesoft, is the way in which a worker is related to the
legal employer. A worker can have multiple work relationship, but only one must be identified as primary. This is identified by the PRIMARY_WORK_RELATION_FLAG attribute, setting to Y at the Work Relationship level
Assignments
Every Work Realtionship should have atleast one assignment created in the system for that worker. An assingment provides information about a person's job, position, pay, compensation, managers, working hours, and location. A worker can have mulitple assignments but one must be identified as the primary assignment. A worker assignment can be made primary by setting the PRIMARY_ASSIGNMENT_FLAG to Y at the assignment level
Employment Terms
This is a new concept introduced in the Oracle HCM. It contains set of terms or conditions that governs an assignment. This can also contain some of the informations like Grade, Working Hours, etc. These values are defaulted from the employment terms to the assignment, which can be later overridden at the assignment level based on the enterprise/legal employer configuration.
The employment model can be divided into two primary categories:
- 2-Tier Model
- 3-Tier Model
For use cases where a worker could have similar assignments within a single work relationship, then the legal employer can use 3-tier model making use of the employment terms and have the assignments automatically inherit any information at the employment terms level. The information inherited from the employment terms can also be overriden based on the option "Allow Employment Terms Override at Assignment" in the Manage Enterprise HCM Information.
This is at a high level information about the Person Model in Peoplesoft and the Employment Model in Oracle HCM. Both these products have their own terminologies and features available.
