Performance Management in Microsoft Dynamics AX 2012

What is Performance Management?

Performance management is the process of setting goals and expectations and then systematically reviewing the process with a supervisor to gage the progress towards these goals. This is an increasingly important part of a successful business. A good performance management system can increase efficiency, productivity, accuracy, accountability and much more. All together this increases the performance of employees and the profit of the company.

Performance management can have negative effects if not done correctly. A poorly structured plan can lead to employees wasting time and resources. Employees might become frustrated with unreachable goals or expectations. Poor performance management can even drive a company’s top performers to different opportunities. This is why not only performance management is important but a good management system as well.

Features of the Performance Management Module in Microsoft Dynamics Ax

The performance module is incredible variable leaving a large amount of flexibility to the users and business.  The module has two types of goal categories; subject and individual. Subject goals are tied to jobs and can be customized by HR. These goals are completely customizable by the company and can be changed at any time. Individual goals are goals that the employee assigns themselves. These goals are completely at the discretion of the employee and can be changed by their manager.

A company might even decide they don’t want individual goals and eliminate them with a simple setup. Additionally a company can decide how much weight they would like to put on each goal category.

The module allows for three distinct phases during an appraisal period. These three phases are the planning phase, the interim phase, and the appraisal phase. The planning phase is when the employee review their subject goals and defines their individual goals with the help of their manager. During the interim phase an employee and their manager both rate each goal to give the employee a rough idea of how they are progressing. In the appraisal phase both the employee and their manager give each goal and final rating determining the outcome of the performance plan.

The performance plans themselves are simple and intuitive. When you first create a plan it will display all the relevant information clearly at the top of the plan. This information includes the date of creation, the status, employee information and supervisor information.

In the lower half a performance plan the goals are displayed. There will be a tab for both individual goals and subjective goals. In the individual tab an employee can simply type in their desired goals. A weightage for each individual goal can be assign the same way by the employee’s manager when they review the plan. The subjective tab is not editable as these goals are determined by the company.

In the summary tab any relevant comments can be made by both the employee and the manager before the plan is submitted. This increases the communication and clarity between the employee and their manager increasing the employee’s success on their goals.

One the employee enter the interim month they can go back to the plan and rate themselves. This helps an employee take a close look at their own performance and plan accordingly to finish these projects I time. The employee’s manager will also review these goals and rate them during the interim month. To better understand these rating the average rating by both the employee and the manager will display at the top of the plan along with the other plan information.

In the final phase of appraisal the employee and supervisor will go over the goals again and issue another score. This will be the final score for the employee and can be used to compensate them accordingly.

HR has easy visibility for all performance plans. From the quick view a user can see the date created, the employee who submitted the plan, their supervisor, and the plan status. This will enable HR to quickly pull reports or find pending reports ensuring that all performance management is going smoothly.

The performance management module also comes with two reports. The first of these is Performance Evaluation by Year. This report allows the user to pull all plans by year and by supervisor. This will allow HR to see if the performance is holding steady or improving. It will also allow them to see how a supervisor generally does in their rating. If a particular supervisor is being too strict HR will be able to see how all of their employees have low scores from this report.


The second report is Performance Evaluation Comparison. This report allows the user to sort by year, job, and employee. This particular report is very helpful in seeing all employees across a division. It can also help see if a particular team is doing better than another and help identify your top performers.

And that is all the features of this Module. A simple way to improve the productivity of your workforce!