Human resource management includes:

 Putting the employees in focus

 Job design and analysis
 Workforce planning
 Training and development
 Performance management
 Compensation and benefits
 Legal issues

Challenges in HRM

1. Management Changes:
As a business grows, its strategies, structure, and internal processes grow with it. Some
employees have a hard time coping with these changes. A lot of companies experience
decreased productivity and morale during periods of change.
2. Leadership Development:
Leadership development is critical in keeping your management team engaged and motivated
and prepares them to take on more responsibilities in the future. Accomplishing goals will
motivate them and give them a chance to develop their skills.
3. Workforce Training and Development:
Invest in your workforce and you will have a loyal, productive team.
4. Adapting to Innovation:
Communication is critical. With any change, make sure your team understands the why, when,
and how. Set clear goals for the adoption of initiatives and provide employees with the training
they need to get comfortable with it.
5. Compensation:
Creating a system to reward employees for excellent performance is one way to make up for a
lower salary. In addition, consider offering incentive programs such as profit sharing or bonuses,
which can be a win-win for the employee and the company.
Microsoft Dynamics AX 2012 offers robust functionality designed to more effectively manage
compensation across entire organizations.
6. Understanding Benefits Packages:
Since good benefits packages can be a deciding factor for potential hires, understanding them is
key. Other benefits could be

 Unlimited vacation time

 Flex time
 Free snacks
 Wellness programs
 Commuter benefits

7. Recruiting Talented Employees:

8. Retaining Talented Employees:
9. Workplace Diversity:
 Creating a culture of teamwork and respect will keep the work environment positive and
productive. Setting standards of behavior in the workplace. Standards and a system of
accountability should be set up early on.
10. Compliance with Laws and Regulation:
No matter how large or small your business, it’s important to make sure you’re in compliance
with local, state, and federal labor laws. There are regulations on everything from hiring
practices, to wage payment, to workplace safety.

HR module

Everything from hire to retire.

Help improve workplace productivity.

Features of HR and Payroll module in AX

1. Personnel recruiting: Applicant management, vacation management, recruiting channel

evaluation and applicant skill rating.
2. Staff administration: digital personnel file, personnel planning, document management and
leave management.
3. Talent Management: Performance review, Talent & skill management, target agreements.
4. Employee self-services: one of the challenges for organizations is empowering employees
with self service capabilities to enable better efficiency.
Organizations want to enforce procedures and policies through self-service capabilities. In
Dynamics makes it easier for organization to make self-services capability available. This
help. This capability is available in the employee services portal.Time tracking, leave request
and entitlement, sick leave reporting, target agreement.
5. Time and Attendance: attendance management, time tracking, working hours & project
time, leave management.
6. Reporting: Standard reporting, Adhoc analysis, manager self-services, Deadline monitoring.
Cross department working is possible out of the box
i.e Commission generated by sales automatically available to the HR department.
Time allocation from employees in services and consulting is automatically available to HR.
Approve leave request or travel receipt from all the departments is automatically available to
HR.
All the employee can check remaining leave entitlement from HR via smart phone or PC.
Plate farm ensure high level of data quality and frees up HR from routine tasks i.e. multiple data
entry.
Integrated with outlook, all functions are available in outlook, this applies as an HR manager, an
employees or as an CEO.
 This solution provides digital personnel file, amongst the other information it shows employees
medical record, their wages, their current skill level and skill goals, performance reviews and
further details. All relevant information of employee is located here in personnel digital file.
Numerous best practice workflows built in HR module.
A global absence calendar is also available.
This can be fully customize to meet the customer need.
Forms can be easily modified by drag and drop.
We can create new fields.
We can adopt business workflows, for example removing telephonic interview from application
process.
Dynamics HR management integrates seamlessly with external systems such as LinkedIn or Xing
Job. Job vacancies can therefore be published automatically, and prospective candidates are
then transferred directly in to the outlook.

Key Areas

11. Worker information

12. Organization structure
13. Recruitment process
14. Managing worker completeness
15. Absence management
16. Worker compensation
17. Enterprise portal

- While creating position we must activate one day before it will be hiring.
- Before creating position we have to create number sequence. For this HR->setup->parameters->
HR shared parameters->number sequence-> position ->right clk ->view detail->number
sequence tab->edit -> number allocation it will be the last number in the positions list +1 in the
Next field

HR – Represents “people at work”

Management – It is an art knowing what you want to do and get it done in the best and cheapest way.

HR Management – it is a management function deal with recruitment, selection, training and

development and retaining of human resource in an organization.

Functional Areas of HR:

1. Managerial functions
 a. Planning
b. Organizing
c. Directing
d. Staffing
e. Controlling
f. coordinating
2. Advisory/Consultancy function
3. Procurement function
a. Anticipating vacancies
b. Organizational planning
c. Job Analysis
d. Recruitment
e. Selection
f. Placement
g. Induction
h. Transfer
i. Promotion
j. Demotion/discharge & separate
4. Development function
a. Performance and potential appraisal
b. Executive development
c. Organizational development
d. Training
e. Career planning and development
5. Compensation Function
a. Job Anyalysis
b. Wages and salary administration
c. Bonus and incentives
d. Financial Aid
6. Integration function
a. Communication
b. Counselling
c. Problem solving
d. Discipline
e. Grievance handling
f. Conflict management
g. Quality of work life
h. Industrial relation

7. Maintenance function
a. Health and safety
b. Medical services
 c. Protection and security
d. Social security
e. Employee benefits and services
f. Personal record
g. Personal research

Keywords
Workers are basically classified into two types, Employees and Contractors. Contractors are the
ones who are not on the payroll of the company but can work on projects/tasks in the
organization.
A worker can be setup as an employee/contractor in multiple legal entities. (But ideally they will
be setup as Employee only in one legal entity).