Business Group (BG)

What is a Business Group (BG)?

A BG is the largest unit representing the enterprise as a whole. A BG is the highest level of the structure and is an organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact.

• Represent a legislative grouping (typically a country where the enterprise has a fair number of employees).
• Serves as a container for the organizations in the enterprise.
• Enable grouping and managing data in accordance with the legislative rules and reporting requirement of a single country.
  

What is the criterion for setting up BG?

The question of determining the criterion for setting up BG is critical to any Oracle HRMS implementer. As pointed out earlier, each BG has one government legislation. Thus, to pay employees from more than one country, multiple BGs are generally set up as per the operating needs of the enterprise.

Multiple BGs are also created when,

· the holding company has got many subsidiary companies and each subsidiary company has got its own structures, employees etc.
· during mergers & acquisitions when there is a need to keep separate records for each company till the transaction process is complete.

An enterprise with multiple BGs typically share HR informations.

Standard information for BG

· Currency
· Standard working hours
· Frequency of work

Apart from the above defaults, other details we record at BG level are

· All data & rules specific to the legislative & cultural need of one country like tax rules, holidays etc.
· Information regarding work structures – Job, Position, Grade, Competency, Compensation, People Group etc.
· Person Number
· Minimum and Maximum work age