Human Resource MIS

Concerned with all of the activities related to employees and potential employees of the organization

The Evolution of the HRIS

First, paper files were located in the Personnel department.

Then, punched card and magnetic media files were located in IS.

Government legislation in the 1960s and 70s eventually called management's attention to the importance of HR data.

In the late 1970's the concept of an HRIS was born.

HR IS

Planning to meet the personnel needs of the business

Development of employees to their full potential

Control of all personnel policies and programs

The HRIS Database

Type of data:

1. Employee82.5% of the firms maintain only

employee data

2. Nonemployee8% of the firmsMaintain external data to the firm

Possible HRIS Database Locations

Firm'scentral

computer

HRcomputer

Operatingdivision

computer

Outsideservicecenter

0

100

200

300

400

Firm'scentral

computer

HRcomputer

Operatingdivision

computer

Outsideservicecenter

342

174

5232

Database Location

Operating division -- decentralized Outside service center -- outsourcer Central computer is still the most

popular location HR computer - only 34% of the firms Some firms keep database in

multiple locations

Executives

Non HR

10 3 41 12 3 4 5

ManagersHR

DirectorOther HRManagers

Not at all Occasionally Monthly Weekly Daily

Users of the HRIS DatabaseUsers of the HRIS Database

Processing(Calc. Net pay)

An HR Example

Output(cut paycheck)

Input(hours worked)

Feedback Loop(Is paycheck accurate?)

Inputs to the Human Resource MIS Strategic plan or corporate policies The TPS:

Payroll data Order processing data Personnel data

External sources

Human Resource MIS Subsystems and Outputs Human resource planning Personnel selection and recruiting Training and skills inventory Scheduling and job placement Wage and salary administration

Typical HRIS Record Keeping Requirements

Employee information Wage and salary data Review dates Benefits Education and training Attendance Performance data/appraisal results

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessingsystems

Businesstransactions

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Performance of HRIS

Work Force Planning Subsystem

Enable manager to identify future personnel needs

Organization charting Salary forecasting Job analysis/evaluation Planning Work force modeling

Recruiting Subsystem

Applicant tracking

Internal search

Work Force Management Subsystem Performance appraisal Training Position control -- ensuring that

headcount does not exceed budgeted limits.

Relocation Skills/competency Succession Disciplinary

Compensation Subsystem

Merit increases Payroll Executive compensation Bonus incentives Attendance

Benefits Subsystem

Defined contribution Defined benefits Benefit statements Flexible benefits Claims processing

Financial MIS

Financial MIS

Provides financial information to all financial managers within an organization.

Financial Information Systems The finance function of a business is

responsible for obtaining money needed by the business and for planning the use of that money.

Financial information systems provide the necessary support for the finance function.

Accounting and financial information systems often are grouped together.

Some common financial information systems are:

Cash management: This system balances the needs of the business for cash with the expected cash availability.

Capital expenditure analysis: The purpose of this system is to analyze the effect on the business of large expenditures such as those associated with building a new factory or replacing major equipment.

Financial forecasting: This system forecasts financial information, such as revenues and expenses, for the future.

Portfolio management: This system analyzes alternative investment strategies for the business’s cash and keeps track of investments.

Credit analysis: businesses that extend credit to customers need to determine which customers should receive credit, which is the purpose of this system.

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessingsystems

Businesstransactions

Businesstransactions

Internet or

Extranet

Internet or

Extranet

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplicationsdatabases

Customers,Suppliers

Inputs to the Financial Information System

Strategic plan or corporate policies Contains major financial objectives and

often projects financial needs. Transaction processing system (TPS)

Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger.

External sources Annual reports and financial statements of

competitors and general news items.

Financial MIS Subsystems and Outputs Financial subsystems

Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds

28

29

Basic Features

Control – Internal controls are established to

ensure that your assets are safeguarded and not being wasted.

They are also established to ensure that employees follow company procedures

Compatibility - Use an accounting system that is appropriate for the size of the company and the complexity of transactions

Basic Features

Flexibility- Can your company respond to change effectively?

Cost/benefit relationship – The cost of an accounting system should not outweigh the benefits

Processing

Input

Output

Three Stages ofData Processing Come from

source documents like invoices

Journalizing, posting

Financial statements and other reports

Assets

Current (11)

Plant (12)

Other (13)

Cash in Bank (111)

Accounts Receivable

(115)

Inventory (120)

Customer A (115001)

Customer B (115002)

Customer C (115003)

Designing a System – Chart of Accounts

Accounting Information Systems (AIS)

A computer-based system designed to

transform accounting data into information.

Can also include transactions

processing cycles, the use of

information technology, and

the development of information

systems.

Transaction Processing Cycles

A. Revenue CycleB. Expenditure CycleC. Production Cycle

D. Finance CycleE. Financial Reporting Cycle

The transaction processing cycles

provide a means of viewing the activities of

a business.

A. Revenue Cycle

Events related to the distribution of

goods and services to other entities and the

collection of related payments

B. Expenditure Cycle

Events related to the acquisition of

goods and services from

other entities and the settlement of

related obligations.

C. Production Cycle

Events related to the

transformation of resources into

goods and services.

D. Finance Cycle

Events related to the acquisition

and management of capital funds, including cash. The treasurer is responsible for the finances of the business.

E. Financial Reporting Cycle

Not an operating cycle

This cycle obtains accounting and

operating data from other cycles and

processes this data so that financial reports can be

prepared. A controller is in

charge of the accounting function.