MODULE 1: INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT
Module Overview
The talents and efforts of the people in your company or organization are among
your most valuable assets. Human resources for Microsoft Dynamics AX helps
fulfill the potential of your workers, while reducing the cost and complexity of
administrating worker and organizational information.
You can use Human resources to complete the following tasks:

Administer organizational structures, including formal and informal

hierarchies and position management.

Maintain comprehensive information on workers from the day that

they first apply for a job to the day that they leave your organization.

Define organizational benefit plans and options, enroll workers in

benefits, combine compensation with benefits, assign dependent
coverage, and designate beneficiaries.

Control absenteeism by establishing, communicating, and monitoring

absence policies. This includes approval procedures and centralized or
self-registration.

Manage worker competencies to identify and effectively deploy the

best people for the company's tasks.

Review performance levels through discussions, and then outline

steps for improvement by creating and implementing goals for
workers.

Set up, deliver, and analyze training courses that include agendas,
sessions, and tracks, together with demographic information about
participants.

Administer recruitment initiatives, such as web advertisements, web

applications and screening, developments, applicants and
applications, and correspondence with candidates.

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Human Resource Management in Microsoft Dynamics AX 2012 R2

Objectives
The objectives are:

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Describe how HRM integrates with other modules.

Describe which data from HRM is shared across companies and which
is specific to a company.

Define HRM parameters, such as identification types and number

sequences.

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Module 1: Introduction to Human Resource Management

Introduction
The following steps describe the general task flow in HRM.
1.

Manage the organization.

2.

Plan organizational elements.

3.

Manage the worker environment.

4.

Manage teams.

5.

Recruit a workforce.

6.

Manage recruitment projects.

7.

Maintain workers.

8.

Retain workers.

9.

Manage worker absences.

10. Manage worker competencies.

11. Motivate the workforce.
12. Manage performance.
13. Manage training.
14. Manage compensation.
15. Terminate workers.
Workers can also maintain and review some of their own information by using the
Enterprise Portal.

Areas of Integration With Other Modules

Human resources can be integrated with the following modules and Microsoft
programs:

Payroll - Many human resources settings affect Payroll. Worker and

position settings, in particular, must be configured correctly before
you can process a workers pay. To simplify Payroll setup, you can
access the Human resources settings through either the Human
resources area page or the Payroll area page.

Project management and accounting

Travel and expense

Sales and marketing

General ledger

Questionnaires

Production control

Inventory and warehouse management

Global address book

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Human Resource Management in Microsoft Dynamics AX 2012 R2

Microsoft SQL Server Report Services

Microsoft Excel

Enterprise Portal Workers and managers can maintain worker

records without using the Microsoft Dynamics AX client.

Details are available in the courses for the specific modules.

Shared Data Across Companies

Some data that is used in Human Resource Management is shared across the
enterprise and used in multiple modules.

Workers

Competencies

Teams for workers

Organization hierarchy

Date-Effective Data
Occasionally, you must update a worker or position. You can use the Maintain
versions form to define when these changes take effect and when old versions
expire.
The Maintain versions button, form, and record filter are used throughout
Microsoft Dynamics AX. After you are familiar with setting effective dates for new
versions of a record, you can maintain several versions for many types of records
in the Human Resource Management module and throughout Microsoft
Dynamics AX.

Creating New Worker Versions

On the Workers list page, select the worker to update and then click Maintain
versions to open the Maintain worker versions form. Use a tab to update the
worker's information. When you update the information, you set the date that the
change will take effect for each tab. You can choose to start using the updates
immediately or select a date in the future. When you finish entering the
information, the earlier version is set to expire before the new version takes effect.

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Module 1: Introduction to Human Resource Management

Set Up Human Resource Management

You must set up shared parameters for records that are shared across modules,
such as positions, and company-specific parameters that are specific to each legal
entity, such as applications. Before you can complete the parameter setup, you
must create identification types and number sequences.

Set Up Identification Types

You must set up identification types before you can enter identification
information for workers. When you add identification information for a worker,
you must associate the identification information with an identification type. The
following list contains some examples of identification types:

Social Security number (SSN)

Visa

Passport

Drivers license

Birth certificate

To define a new identification type or review a list of existing types, click Human
resources > Setup > Workers > Identification types. You can enter a simple
code and description.

Set Up Number Sequences

Number sequences are used throughout Microsoft Dynamics AX to allocate ID
numbers or identifiers for entities. Before you can assign a number sequence to a
Human resources reference, you must set up number sequences codes in the
Number sequences list page.
Click Organization administration > Common > Number sequences >
Number sequences.

Company-specific number sequences

Some Human resources information is not shared across legal entities, but are
specific to one legal entity:

Applications

Absence registrations

Courses

Agendas

Events

Cases

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For example, the number sequence code ABC-001 is assigned to the Course ID
reference for Legal entity A. The first three courses that are created in Legal entity
A have course IDs ABC-001, ABC-002, and ABC-003. The number sequence code
ABC-001 is also assigned to the Course ID reference for Legal entity B. The first
three courses that are created in Legal Entity B have course IDs ABC-001, ABC002, and ABC-003.

Shared number sequences

Some Human resources information is shared across legal entities:

Personnel numbers

Positions

User requests

I-9 documents

Applicants

Discussions

For example, the number sequence code ABC-001 is assigned to the Personnel
number reference. The first three new workers that are hired in Legal entity A
have personnel numbers ABC-001, ABC-002, and ABC-003. When two new
workers are hired in Legal entity B, they will have personnel numbers ABC-004
and ABC-005.

Human Resource Parameters

Use the Human resources shared parameters form and Human resources
parameters form to set up Human resource management parameters. Click
Human resources > Setup > Parameters.
You should define all parameters before you begin to create your data. However,
you can modify your settings at any time.
Note: Before you can specify the human resources parameters for
identification types and number sequences, you must first set identification types
and number sequences.
On the Human resources shared parameters form, parameters are grouped into
areas according to their functionality:

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Identification Select the identification types that represent the

identification numbers that are listed in the subsequent fields. The
information for the subsequent fields is maintained in the
Identification type form.

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Module 1: Introduction to Human Resource Management

Payroll Use this page only if your agency also uses the Microsoft
Dynamics AX US Payroll module.

Positions Define whether new positions are available for

assignment by default.

On the Human resources parameters form, parameters are grouped into areas
according to their functionality:

General Select a color to apply to open absence transactions,

specify the style sheet to use for reports, indicate whether to enable
the integration between training courses and absence registration,
select the absence code to use to control this integration, and
indicate how long injury and illness case incidents should be kept.

Recruitment Select the document types to use for automated

correspondence with applicants, select the recruitment project to use
for unsolicited applications, and specify a period that is used to
calculate expiration dates for applications.

Compensation Indicate whether to show a warning before a user

saves information in a fixed or variable plan. If you are using
performance management, you can select a rating model to use
instead of the model assigned to compensation plans when rating
performance.

Number sequences Select the sequences that will be used to

automatically assign IDs to items in Human resources, such as
applications, absence registrations, events, case numbers, courses, and
course agendas. To maintain number sequence references and codes,
use the Number sequences list page. (Click Organization
administration > Common > Number sequences > Number
sequences.)

Demonstration: Set Up Shared Parameters

This demonstration shows how to set up parameters to use for all your legal
entities. Parameters are grouped into areas according to their functionality. In
each area, you can set up the following parameters.

Demonstration Steps
1.

Define the identification types that represent the identification

numbers that are listed in the ID fields.
a.

Click Human resources > Setup > Parameters > Human

resources shared parameters.

b. Open the Identification page. The information for the following

fields is maintained on Identification type form.
c.

In the SSN field, select the identification type that represents the
Social Security number.

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Human Resource Management in Microsoft Dynamics AX 2012 R2

d. In the National ID number field, select the identification type
that represents the National ID number.

2.

e.

In the Alien ID number field, select the identification type that

represents the Alien ID number.

f.

In the Personal ID code field, select the identification type that

represents the personal ID code.

Select the number sequences that will be used to automatically assign

IDs to items in Human resources.

Note: To maintain number sequence references and codes, use the Number
sequences list page. (Click Organization administration > Common > Number
sequences > Number sequences.)
a.

Open the Number sequences page.

b. In the Number sequence code field, select the number

sequences to use for the following records:

3.

Personnel numbers

Positions

User requests

I-9 documents

Applicants

Discussions

Personnel actions, if enabled

Select the appropriate worker assignment behavior when new

positions are created.
a.

Open the Positions page.

b. In the Available for assignment field, select whether new

positions area available for assignment by default.

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Always You can assign workers to new positions when

positions are created. The Available for assignment date
and time are set to the creation date and time on the
General tab in the Position form when positions are
created.

Never You cannot assign workers to new positions

when positions are created. If you select this option, you
must open the Position form for each new position as it
becomes available and enter the Available for assignment
date on the General tab to enable worker assignment.

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Module 1: Introduction to Human Resource Management

Demonstration: Set Up Company-Specific Parameters
This demonstration shows how to set up parameters that are specific to the legal
entity for which you are currently logged on.

Demonstration Steps
1.

Define default expiration dates for absences and incidents.

a.

Click Human resources > Setup > Parameters > Human

resources parameters.

b. Open the General page.

c.

In the Absence color codes field, select the color for openended absence transactions (those with a start date but no end
date).

d. Select the Integration to absence? check box to automatically

request an absence for the days of a course when a worker
registers.
e.

If you are automatically generating absences for course days, in

the Absence code check box, select the absence code to use for
these automatically generated absences.

f.

Select the Keep case incidents check box to keep injury and
illness records for a specific number of days.

g. If you are keeping injury and illness records for only a certain
number of days, in the Number of days field, enter the number
of days after which the record can be manually deleted.
2.

Define default values related to recruitments.

a.

Open the Recruitment page.

b. In the Word document type field, select the document type to

use for letters generated for applicants.
c.

In the E-mail document type field, select the document type to

use for email messages generated for applicants.

d. In the Unsolicited field, select the recruitment project to assign

applications to that are submitted from the Enterprise Portal but
are not for a specific recruitment project.
e.

In the Period field, enter the number of units after the date an
application is received that the application should expire by
default.

f.

In the Unit field, enter the units to use to calculate the expiration
date. For example, if you enter "90" in the Period field and Days
in the Unit field, an application that is received on 11/9/2012
expires on 2/7/2013 by default.

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Human Resource Management in Microsoft Dynamics AX 2012 R2

3.

Define default values related to compensation.

a.

Open the Compensation page.

b. Select the Enable save validation check box to display a

message that asks whether the user wants to save the record any
time that a user closes a compensation-related form. Some forms
within compensation management do not let users delete
information. Therefore, prompting users to verify that they want
to save information might help limit the amount of information
that is saved, but then cannot be deleted later. When this field is
cleared, the records are always saved immediately, possibly
before the user is ready.
c.

In the Rating source field, select whether compensation

increases are based purely on compensation or on competencies.

d. If compensation is based on competency, in the Rating field,

select the rating model on which the competencies are based.
4.

Select the number sequences that will be used to automatically assign

IDs to items in Human resources.

Note: To maintain number sequence references and codes, use the Number
sequences list page. (Click Organization administration > Common > Number
sequences > Number sequences).
a.

Open the Number sequences page.

b. In the Number sequence code field, select the number

sequences to use for the following records:

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Applications

Absence registrations

Courses

Agendas

Events

Cases

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Module 1: Introduction to Human Resource Management

Module Review
You might want to review this module again after you complete the other
modules in this course. The Human Resource Management module is full of codes
that can be set up as a default value from the parameters forms.

Test Your Knowledge

Test your knowledge with the following questions.

Categorize Activity
Categorize each item into the appropriate category. Indicate your answer by
writing the category number to the right side of each item.

Categories
1. Company-specific number sequences
2. Shared number sequences
Items
Courses
Cases
Discussions
Personnel numbers
Agendas
Applicants
Applicants
Positions
I-9 documents
Events
User requests
Absence registrations

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Human Resource Management in Microsoft Dynamics AX 2012 R2

Test Your Knowledge Solutions

Module Review and Takeaways
Categorize Activity
Categorize each item into the appropriate category. Indicate your answer by
writing the category number to the right side of each item.

Categories
1. Company-specific number sequences
2. Shared number sequences
Items

1 - 12

Courses

Cases

Discussions

Personnel numbers

Agendas

Applicants

Applicants

Positions

I-9 documents

Events

User requests

Absence registrations

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