Oracle Fusion HCM Questions to Secure a Role at Leading IT Firms

Oracle Fusion HCM Questions to Secure a Role at Leading IT Firms

Oracle Fusion HCM Online Training is a widely used HR solution, and mastering its concepts can help you land a role in leading IT firms. Here are the most trending and frequently asked Oracle Fusion HCM interview questions along with expert answers to help you prepare.

1. What is Oracle Fusion HCM?

Oracle Fusion HCM (Human Capital Management) is a cloud-based HR solution that integrates workforce management, payroll, benefits, talent management, and compliance features.

2. What are the key modules in Oracle Fusion HCM?

The key modules include:

•  - Core HR
•  - Payroll
•  - Absence Management
•  - Talent Management
•  - Compensation Management
•  - Workforce Planning

3. What is the difference between Oracle Fusion HCM and Oracle EBS HRMS?

Oracle Fusion HCM is a cloud-based, modern HR system, whereas Oracle EBS HRMS is an on-premise solution with legacy architecture.

4. How does Oracle Fusion HCM support Global HR?

It provides multi-country compliance, localization, and workforce structures to manage global HR operations.

5. What are Fast Formulas in Oracle Fusion HCM?

Fast Formulas are used to define calculations for payroll, absences, and benefits in Oracle Fusion HCM.

6. What is the role of Approval Workflows in Oracle Fusion HCM?

Approval workflows automate HR processes such as hiring, transfers, and compensation changes using Oracle BPM.

7. How does Oracle Fusion HCM integrate with other Oracle Cloud Applications?

It integrates with Oracle ERP Cloud, Oracle Payroll, and Oracle Talent Management using REST and SOAP APIs.

8. What is HCM Data Loader (HDL)?

HCM Data Loader is a bulk data import tool used for loading employee, payroll, and other HR data into Oracle Fusion HCM.

9. What is the purpose of Oracle Fusion HCM Security Roles?

Security Roles control user access based on predefined roles like HR Specialist, Payroll Manager, and Employee Self-Service.

10. How is Compensation Management handled in Oracle Fusion HCM?

Compensation Management allows HR teams to define salary structures, bonuses, and benefits based on business rules.

11. How does Oracle Fusion HCM handle Payroll Processing?

It automates payroll calculations, tax deductions, and salary disbursements, integrating with financial and banking systems.

12. What is the difference between Job and Position in Oracle Fusion HCM?

- **Job**: Defines a role with common responsibilities.

 - **Position**: A specific instance of a job assigned to an employee.

13. How does Oracle Fusion HCM support Employee Self-Service?

It provides a self-service portal where employees can manage personal details, apply for leave, and view payroll details.

14. What is Talent Review in Oracle Fusion HCM?

Talent Review helps HR teams assess employee performance, identify high-potential talent, and plan career growth.

15. What are Workforce Structures in Oracle Fusion HCM?

Workforce Structures include Enterprise, Business Units, Legal Entities, Departments, and Jobs that define the organization’s HR framework.

16. What is the difference between Primary and Secondary Assignments?

- **Primary Assignment**: The employee's main job in the company.

 - **Secondary Assignment**: An additional role assigned to the same employee.

17. What are Seniority Rules in Oracle Fusion HCM?

Seniority Rules define employee tenure for benefits, promotions, and compensation planning based on service duration.

18. How does Oracle Fusion HCM manage Employee Transfers?

Transfers involve updating the employee’s Business Unit, Department, Job, and Position in the system with proper approvals.

19. What are Legislative Data Groups (LDGs)?

LDGs store country-specific payroll and tax regulations, allowing organizations to manage multi-country payroll effectively.

20. What is Profile Management in Oracle Fusion HCM?

It allows organizations to define competencies, skills, and qualifications for jobs and employees.

21. What are Oracle Fusion HCM Workflows?

Workflows automate HR processes such as hiring, promotions, and approvals using BPM Worklist.

22. Explain the process of configuring Absence Plans.

• - Define Absence Types (e.g., Sick Leave, Vacation)
• - Configure Accrual Rules
• - Set Carryover and Expiry Rules

23. How does Oracle Fusion HCM handle Performance Management?

It provides Goal Setting, Performance Reviews, and Continuous Feedback to improve employee productivity.

24. What are Payroll Elements?

Payroll Elements define earnings, deductions, and tax components for payroll calculations.

25. What are the common issues in Oracle Fusion HCM implementation?

• - Incorrect Enterprise Structure Setup
•  - Integration Challenges with Third-Party Tools
•  - Performance Issues in Payroll Processing