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INFORMATION SYSTEMSBy: M Rafeeq

Chapter- III

APPLICATION OF INFORMATION SYSTEMS

Role of Accounting Transaction Processing System: -

Transaction processing is a major function of the accounting system. The

accounting system collects data throughout the company and produces consolidatedreports that are used for planning and Mgt.

TPS is important, because they focus on money.

Provide controls over the data to ensure accuracy and to prevent fraud, and createstandard reports.

1). INPUT AND OUTPUT: - Financial data and reports.

1

Management ShareholdersBanks & Creditors

Produce Mgt.

accounting reports

Cash Mgt.

Investments

foreign exchange

Strategic& Tactical

planning

Produce

shareholders

reports

GovtsDepartments& Employees

Payroll &employee

benefits

Order &

account

payableInventory Mgt.

And fixed asset and

cost accounting

Sales &

account

receivable

Tax filings &Planning

Supply andin-process inventory

Product

inventory

SuppliersCustomers

Sales

tax

Inventory

& Assets

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-Accounting department collects raw financial data and is stored in accounting

journal.

-Double-entry system is used to ensure accurate data. Double-entry system means,at least two entries must occur for every transaction.

-Each entry includes the data, amount of money, account number, persons name.

-The journal purpose is to record all the transactions.-A general ledger is a collection of accounts include categories like accounts

receivable, accounts payable, inventory and cash.

-Produce balance sheets; cash statements and income statements every quarterly.-Reports are produced to compare the financial positions of various companies

over time.

-Accounting systems produce standardized reports.

2). PURCHASES, SALES, LOANS AND INVESTMENTS: -

-Purpose of accounting is to record the financial transactions with external

organizations. Creates summary and detail reports to monitor key information.

-If sales in a region drops, then there will be a major increase in the cash balance,then a message will be send to the appropriate manager by building exception

reports.

3). INVENTORY: -

-Inventory control consists of knowing exactly what items are available and

where they are located.-Determine when to place new orders.

For E.g. With EDI, inventory control system can monitor current sales and

automatically place orders with the supplier.-The computer system monitors production requirements, keeps track of delivers

and electronically sends order to the suppliers. The suppliers then deliver the

parts, as they are needed on the production line.

4). THE ACCOUNTING CYCLE: -

-Produce information in reports that are required to reflect the financial conditionof the firm at the end of every quarter.

-Managers operate for quarterly reports, with intermediate monthly reports for

some items. The volume of data is kept on file by making summary reports.

5). PROCESS: - Checks and Balances.

a) Double-Entry System: - Objective of accounting system is to maintain the

integrity of the financial data.The goal is to prevent mistakes and discourage fraud, i.e., if an amount

entered is incorrect, the account totals will not balance.

Generally transactions involve outside organizations, mistakes can becaught by sharing data.

For E.g.: - Companies typically send receipts, when they receive payments

from each other. Auditors periodically send verification requests to suppliers and

customers to make sure that data was recorded correctly.

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b) Separation of duties: -

This control is to minimize fraud to deal with multiple employees.

c) Audit trails: -

This is important because it enables investigators to track backward through

the data to the source.

By audit trails entries can identify the person who is responsible for the entry.

This identified data, is possible to list every article that affects an item on areport.

I. Nature of Operational Information Systems: -

The information systems that perform or support the completion of tasksare often referred to as operational information system or transaction processing

systems.

Operational information describes past activities.

They produce routine, repetitive, descriptive, expected and object data.

[Structured format].Information produced is in detail, highly structured, accurate because this

information is obtained from internal sources.

Advantages:

1. Reduced cost

2. Increase speed.

3. Increased accuracy.4. Increased custom service

5. Increased data for decision-making.

Application of Information Technology to some of the Operational

Information Systems that common to four organizational functions: -

1. Accounting/Finance.2. Marketing

3. Production.

4. Human Resource management.

OPERATIONAL FINANCE ACCOUNTING SYSTEMS: -

They focus on processing financial transactions to produce the routine,

repetitive information outputs i.e., pay-slips, checks to vendor, customerinvoices, purchase order, stock reports.

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The financial accounting system is composed of following modules:

1. General ledger2. Fixed assets

3. Sales order processing

4. Accounts receivable5. Accounts payable

6. Inventory control

7. Purchase order processing

8. Payroll1. General Ledger system: -

Produce income statements and balance sheet periodically.

Updates data of pay roll accounts.2. Fixed assets system: -

Maintains records of long term & short term assets owned by an

organization.E.g.: - property, machinery

General ledger system uses this information to maintain current balances

in long-term asset accounts of the organization.

3. Sales order processing system: -

4

General

Ledger

Accounts

receivable

Order

processing

Inventory

Fixed assets

Pay roll

PurchasingAccounts

payable

Customers

Orders to

restock

inventory

Checks to

creditors

Creditors

Inventor totals

Purchase & cash

payments totals

Purchase & cashpayments totals

Verified sales order

Verified purchase orders

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It is also called order-entry system, which records sales order and provide

data to other systems like inventory and bill the customers.

The sale can be closed while picking and packing slips.4. Accounts receivable system : -

It allows entering, updating and deleting customer information, such as

sales made on account, credit terms, cash payments received and accountingbalances.

INPUTS OUT PUTS

5. Accounts payable system : -Provides information directly to the general ledger system and receives

data from the purchase order system.

INPUTS OUT PUTS

6. Inventory control system : -Provides input to the ledger, where it receives input from order processing.

Purpose is to keep track of inventory levels and costs.Inventory control updates stock changes, such as damaged goods,

spoilage.

7. Purchase order processing system : -

Purchase order system take orders from inventory and providesinformation to the accounts payable and inventory steps.

Produces stock reports and order reports.

8. Payroll system : -Process wage and information such as payments to employees

Produces weekly payroll summary report, overtime reports, wage and tax

statements, and payroll checks.

OPERATIONAL MARKETING INFORMATION SYSTEMS: -

5

ACCOUNTS

RECEIVABLE

Customer

statements

Schedule of accounts

receivable

Aging reports

Payments

Sales orders

Adjustments

(Returns, credit terms)

ACCOUNTS

PAYABLE

Checks to

creditors

Schedule of accounts

payable

List of bills due

Purchase orders

Sales orders

Adjustments

(Returns, credit terms)

INPUTSPeriodic

automatedreports

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Operational Marketing Information system: -

The business function of marketing is concerned with the planning

promoters, sales of existing product, the development of new product and newmarket to better serve the potential customer. Thus marketing performs a vital

function in the operation of a business enterprise.

To be effective, marketing information system must be coordinate withother organizational information system such as purchasing system, production

system, inventory system, accounts receivable system, credit system and order-

entry system.

Operational marketing information system include system such as:

1. Sales force automation systems

2. Micro marketing and data ware house systems3. Telemarketing systems

4. Direct mail advertising system.

5. Point-of-sale systems.6. Delivering tracking and routing systems.

7. Electronic shopping and advertising.

1. Sales force automation system: -

6

Company

database

Marketingsubsystem

files

Computer

Marketing

informationsystem

programs

OUTPUTS

Inquires

INPUTS

Customer invoices

Marketing budgets

Sales call reports

Cost reportsInventory reports

Accounts payable

Accounts receivable

PayrollManufacturing costs

Annual reports

Market research

OUTPUTS

Sales recapRecord summariesTransaction analysis

Exception inquires

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These are designed to increase the production of sales people which

includes identifying potential customers, contacting customers, calling on

customers, closing the sale and follow up the sales.There most support managing sales cycle, provide electronic catalogs or

sales presentation.

Prospect Information systems include lists of prospects by location byproduct category by income etc.

Customer contact management systems provide information related to

sales force pertaining to customers, their product or service & sales history data.2. Micro marketing and data were house system: -

Pitching sales or advertising campaigns to a very narrowly defined target

customer is called micro marketing. They are used to identify and target specificcustomer or prospect from large database.

A data warehouse system, which stores, retrieves manager or otherwise

manipulates massive amounts of data that may be from the organization database

and external sources.

The warehouse of data is often separated from the organizationalproduction database so that users can use these resources without reducing the

response time of an organizational routine data processing operation.3. Telemarketing systems: -

A marketing system that uses the telephone, often coupled with computer

support, to sell products or services.Telemarketing uses electronic directories and on-line database together for

names, address, telephone numbers & alter data of the potential customers.

4. Direct Mail Advertising System: -A marketing system that utilities marketing list to distribute sales

broachers and catalogs to a large number of potential customers.

5. Point of sale (POS) systems: -Computer system used by sales clerks to record a sale at the customer i.e.,

capture date about orders found in food chain stores, departmental stores and

other chain stores.

The information obtained from point of sale systems becomes input to thefinancial accounting system, which then supplies data to marketing information

systems.

6. Delivery tracking and routing systems: -Today delivery systems place small satellite dishes on their delivery

vehicles and these are the satellite bases global position system (GPS) to monitor

the movement and location of every vehicle.

7. Electronic shopping and advertising: -The computer age avenues for shopping and advertising in Internet, rather

than TV radio and magazines.

Virtually shopping or electronic shopping allows organizations topresent information about goods and services to potential customers who are

connected to their electronic store.

OPERATIONAL HUMAN RESOURCE INFORMATION SYSTEMS: -

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Classical personnel

functions

Recruiting

Hiring

Job evaluation

Personal

Requirements

Placements

Career plans

Specific jobRequirements

Training

Skills inventory

Skills requirements

Compensation

Payroll

Benefits

Maintenance

Absenteeism

Tracking

Organization

Charts

Personnel records

Employee profiles

Employment histories

Carrier profiles

Education records

Payroll data

Environmentally

required functions

EEO compliance

(Equal Employment

Opportunity)

Affirmative action

OSHA-Health/safety

(Occupational Safetyand Health Act)

ERISA pension

(EmployeeRetirement Income

Security Act)

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The five classical subsystems of the personal information system:

1. Recruitment forecasts personal needs and skills and recruits the personnel atproper time to meet organizational needs.

2. Placements effective use of labor takes place in this system.

3. Training & Development - work force be constantly update in new techniquesand developments.

4. Compensation giving benefits to the employee.

5. Maintenance personal policies and procedures are achieved.

II. Nature of Tactical Information Systems : -

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General retrieval and

processing foroperating management

personnel specialists

Marketing, production,

finance & other major

systems

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Tactical IS support management decision making by providing managers with

regular summary reports, exception reports, adhoc reports and other information that

help to:1) Control their areas of responsibility

2) Allocate their resources to obtain organization goals.

The focus of tactical IS is on resource allocation i.e., how do you allocate the

available resources to reach organizational goals.

Information Systems to functional areas: -

1) Tactical Accounting & Financial ISs.

2) Tactical marketing ISs.

3) Tactical Human Resource ISs.

1. Tactical Accounting & Financial Information Systems: -

Many Information systems can be designed for financial mangers to make

decisions.a) Budgeting systems

b) Cash management.c) Capital budgeting systems.

d) Investment management systems.

a)Budgeting Systems : -

It permits managers to track actual revenue and expenses and compare

these amounts to expected revenues and expenses.

In a computerized general ledger system, financial accounting systemoften permits budget amounts to be entered by account number.

Periodically (weekly, monthly, quarterly or monthly) these budgeted

amounts (allocations) and the actual amounts spent or received (actual) foreach account are compared and reports are prepared.

The difference between the allocation for an account and the actual

amount spent is called variance, is also identified and reported.

The reports prepared by general ledger system of financial accounting

system are:-

1) Current budget allocations, expenditures and variances by budget lineitem

2) Current budget allocations compared to the previous years allocations.

3) Current revenues and expenditures compared to the previous yearsrevenues and expenditures.

4) Current revenues and expenditures compared to average of the other

units or divisions of the organization.5) Projected expenditures and variances for each budget line item for the

entire year based on the expenditures incurred to date.

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This system provides information to identify and solve problems, i.e.,

the systems do not make any decisions. It is a decision-support system, not a

decision system.Generally mangers use spreadsheet software to analyze their

departments budgetary data.

b) Cash Management systems : -The important function of financial management is to ensure that whether

the organization:1) Has sufficient cash to meet it needs.

2) Putting excess funds from any period to use through investments.

3) Providing borrowing power to meet the organizations cash needs

in periods of insufficient cash flow. Organizations needs cash for twomajor reasons:

1) For working capital (cash needed for day-to-day operations)

2) For acquisition of long-term assets.

If adequate cash is available for its working capital needs and long-termasset acquisition plan, the organization must prepare a report of its expected

cash flow for the time periods.The report shows the cash flow for each month of the coming year.

A cash flow report shows the estimated amount of cash that will be

received and spent each month.

The report shows which months will have excess funds that might beput to use and which months will have insufficient funds, which may require

the organization to borrow cash to meet its working capital or fixed asset

acquisition needs.A cash flow report, supplies information that helps the manager to

make decisions about investing, purchasing and borrowing money.

Cash Management systems are generally used for larger organizations.Cash management Accountant (CMA) provides automatic deposits of cash

and dividends from other accounts in to a money market account.

c) Capital budgeting systems : -It contains information about planned acquisition or disposal of major

plant assets during the current year.

The manager compares the various capital spending plans using 3commonly used evaluation tools.

1) NPV - Net Present Value.

2) IRR - Internal Rate of Return.3) PBP - Pay Back Period.

1) Net present Value : - It is the current value of cash that will be receivedat same future time.

2) Internal Rate of Return : - It is to find the discount rate that generates a

present value of the earnings or savings equal to the present values of initial

investment.

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3) Pay Back Period : -It is to know how many years or months the

increase in revenues or the savings from reduced operating expenses

obtained from the asset, which will take to match the investment in theasset.

d) Investment Management Systems : -Management invests organizations money in securities. So, careful

management of these investments is necessary to ensure the achievement of

organizations goals.Computer Information Systems provide unique ways to mange stock

and bond portfolios.

Investment management systems uses on-line databases for immediate

update for stock and bond prices, information about the history of eachinvestment and various portfolio investments analysis tools to help manger to

stay on top of the organizations investment.

2. Tactical Marketing Information Systems: -

Marketing function is to identify customer needs and wants & to satisfy them.

Marketing managers are engaged in planning activities, which result in a combination

of product, price, place and promotion, which are referred to as the Marketing Mix

(MM)

Tactical Information systems has the following systems:

a) Sales Management System.b) Advertising and promotion systems.

c) Pricing systems.

d) Distribution channel systems.e) Competitive tracking systems.

a) Sales Management System : -

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External

Environment

Internal

Environment

Marketing Mix

Decisions

ProductDecisions PriceDecisions PlaceDecisions PromotionDecisions

Evaluation and Control

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The objective of marketing mangers is to reach sales goals set by the

top management.

To attain this objective marketing managers must make many tacticaldecisions i.e., about sales terriorities structure, sales force in the territory,

products offered and served to customers.

For a better sale, sales managers should decide a good reward to salespeople to increase their sales efforts. The various ISs that supply these data

to marketing managers are called Sales Management Systems.

Marketing managers use statistical software and spreadsheet softwareas ISs tool. Using these software & spreadsheet manager can monitor the

sales progress of each sales persons by market segment, by product averages

and effectiveness of sales person selling to each group i.e., customer type.

b) Advertising and Promotion Systems : -These systems are to implement strategic sales goals set by the top

management. Decisions are made on media and promotion to select market

segments in order to achieve sales goals.Following information is required by marketing managers to make

decisions for advertising and promotions.1) Projected sales goals.

2) Production and distribution of stock.

3) Information from marketing research firms.

4) Market segments.The tools used for support are data warehouses, query tools,

spreadsheet software, statistical software, on-line database, Internet and

custom written reports.

c) Pricing Systems : -

This system provides information to managers to help them to setprices for their products and services. This information is important, because

the price of a product or service affects the volume of sales and profitability of

the organization.Pricing decisions are made according to demand of the product or

similarly of the product or service i.e., the prices of competing, as well as

substitute products (products that are used instead of original products).Pricing of a product depends upon competitors, customer satisfaction

and organization objectives. It also includes. What type of discounts to be

given at various levels of channel of distribution and what promotionaldevices should be used i.e., financing, and rebates.

d) Distribution Channel Systems :-

Organization should determine, whether the products and servicesshould directly reach to a customer or to use a middlemen or do both.

For direct sales, organization consider trade channels, i.e., sales force,

direct mail, telemarketing, etc.,

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For middlemen, organization chooses channel to distribute the product

or service to reach targeted market segments.

Distribution channel decision- support systems are used to marketingmanager with the relevant information.

e) Competitive tracking systems : -This is to ensure organizations marketing mix, whether the customer is

satisfying to our product when compared to competitors and their marketing

activities.

Competitive intelligence or knowledge of competitor prices,

products. Sales advertising and promotions must be gathered regularly in

order not to fall behind the competition. Gathering competitive intelligence is

carried out through competitive tracking systems.Competitor information is readily available in Journals and

Newspapers, where both strategic and tactical managers use this information

to make decisions. Sales people collect more information about competitor

activities from field reports. So, sales people should be encouraged more.

3) Tactical Human Resource Information systems: -

Human resources represent largest operating expenditure (between 40% to

60% of total operating expenses)

In service organizing salaries and wages are 85% of total operating expenses.

People are the most basic and the important component of anyorganization so; HRM is critical to the organizations success.

To maintain proper human resources, manges require Human resource

Informations systems (HRIS).HRIS contain personal information about the employees of an

organization. HRIS includes a number of tactical strategic decisions.

ASK(Attitudes, Skills, Knowledge) these shapes the organization.Tactical HRIS includes:

a) Job analysis and design systems

b) Recruiting systemsc) Compensation and Benefit systems.

d) Succession planning systems.

a) Job analysis and Design systems :-

Job analysis and design systems include describing the jobs needed

in an organization and the qualities of the workers needed to fill those jobs.

The tasks developjob descriptions, for every type of position in theorganization, which specifies the purposes, tasks, duties and responsibilities

of each job and the conditions and performance standards.

Job analysis and design system also include Job specifications foreach type of job, which describes the skills knowledge, experience in job

descriptions.

Input of data to job analysis and design is in from internal and

external sources.

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1) Internal - Includes data from interviewers, with

supervisors and workers.

2) External - Labour Unions, competitors andgovernment agencies.

The output of job analysis information are job descriptions and jobspecifications, which helps mangers to make tactical decisions. This

informations allows to provide equal pay for equal work within an

organization other wise due to low morale poor performance andproductivity results.

b) Recruiting systems:-

It provides qualified applicants to fill the vacant positions described

by job analysis and design IS.

The goal of recruiting is to improve the quality of the organizationshuman resources. Recruiting should be done based on affirmative action plan

and equal employment opportunity (EEO).

Information about applicants includes from the following sources:1) Schools and colleges, including placement officers.

2) Federal, state & local employment officers.

3) Private placement services.

4) Journal, magazine and newspaper advertisements5) Standard job advertisements and recruiting brochures.

6) Prospect files.

c) Compensation and benefits systems: -

The wage and salary systems, or compensation plans, an

organization offers widely hourly, wage plans, piece-rate plans, incentive

pay plans, merit pay plans, monthly salary plans, commissions and profitsharing. Benefits like fringe benefits such as health insurance, life insurance,

medical services, retirement plans, etc.,

Organizations have implemented computerized HRIS to better

compensate and benefit plans, where information is collected from internaland external sources.

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Job Description

Job title: Clerk Revision date:

Job No: 100

Pay grade: 6

Reports to:

Supervises:

General description:

Duties & responsibilities:

Job Characteristics.

Job Satisfaction

Job title: Revision date:

Job No:

Pay grade:

Job Requirements:

Education:

Physical & Health:

Appearance:

Special skills

Work experience.

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Better compensation and benefit plans improve organizations

productivity.

d) Succession planning systems: -

This is to replace key organizational personnel, where it is made

certain, when the key positions persons become vacant, because of death,injury, retirement or other reasons.

Planning for succession means identifying replacement employees

and providing them with the appropriate training and experience to fillopenings.

III. Nature of Strategic Information Systems : -

Strategic ISs are goal oriented i.e., these systems are designed to supportorganizations goal and directing setting.

Information Systems to functional areas: -

1. Strategic Accounting & Financial ISs2. Strategic marketing ISs

3. Strategic Human Resources ISs.

1. Strategic Accounting and Financial Information Systems: -

It includes several types of information flows:

a) Internally generated financial conditions analysis data, describing thestatus of the organization.

b) Externally generated economic, demographic and social data describing

the present and future environments for the organization.

c) Forecasts of the future of that organization in those environments.

The 2 outcomes of financial strategic planning are:

1) Financial goals includes setting goals for investment and returnon investments.

2) Financial direction involves in deciding on new investment

opportunities to fund the organization.The major purpose of strategic decision-making is to use long-

range forecasts to reduce the risk involved in major organizational

decisions.

It has the following Information systems.Financial Conditional Analysis systems

Long-range forecasting systems.

) Financial Conditional Analysis systems : -

It includes computerized accounting systems, which

automatically calculate and presents the results in the form of reportsusing tools and ratios.

Financial condition analysis system collects data on

competitors, suppliers, buyers and other organizations like on-line

financial databases. The manger uses a variety of analysis tools andproduces reports on the income statement and balance sheet.

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) Long-range forecasting systems : -

Strategic forecasts will affect the performance oforganization in the future. Information required for forecasting the

future environment includes.

1) Past activities of the organization.2) Data on the present economy & future economy.

3) Information on present demographic structure of the region.

For forecasting future events, it requires use of statistical tools,generally used on spreadsheets.

2. Strategic Marketing Information systems: -

Strategic marketing plan develops an overall marketing plan,which includes:

1) Segmenting the market into target groups of potential customers

based on common characteristics, needs or wants.

2) Selecting these market segments.

3) Planning products and services to meet the customer needs.

4) Forecasting sales for the market segments and products.

The strategic activities revolves around:

a) Sales forecasting systems

b) Marketing Research Systemsc) Product planning and development systems.

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External

Environment

Internal

Environment

Organizational goals

Marketing goals

New Product design

and development

Target

selection

Old Product

Management

Demand Forecasting

To Tactical Planning

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a) Sales forecasting systems : -

It includes:i) Forecasts of sales for the industry as a whole

ii) Forecasts of sales for the entire organization of sales for each

product or service.iii) Forecasts of sales for a new product or service.

iv) Forecasts for market segments.

Predicting the future is very difficult and predicting sales of

new products is most difficult of all sales-forecasting activities. As

new products do not have any track record of sales, no date will be

readily availably so estimation of sales must be made of similarproducts from customer surveys.

b) Marketing Research Systems : -

The results of MR provide important input for bothstrategic and tactical ISs. Large organizations conduct their own

researches in their departments. Small organizations conduct byoutside consultants.

Data collection is heavily derived from external sources i.e.

customers, competitors, Trade, government, census, etc.

Data can be obtained from direct surveys, mail survey,Internet surveys & telephone interview from consumers.

Collected sales data is to determine the projected

sales of a product and testing hypothesis about consumer responses.The activities of a typical marketing research department are:

1) Conducting trend analysis.

2) Analyze population and target group characteristics.3) Analyzing & identifying consumer preferences, includes testing

products and services.

4) Determining and analyzing customer satisfaction with theorganizations existing products and services.

5) Estimating market share for all of each product and service

offered.

[CATI Computer Aided Telephone Interview].

c) Product Planning and Development Systems : -

The objective of this is to make informations aboutconsumer preferences obtained from the MR system and from

customer inquires available for the development of new products.

The output of this system is a set of specifications likedesign of a product. This system most provides appropriate

organizational personnel with sufficient information to ensure that they

accurately & completely address patent & copyright concerns,

consumer product safety concerns and alter legal issues pertaining tothe product.

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3) Strategic Human Resource Information Systems: -

It ensures that the organization has the right kinds and the right number ofpeople at the right places at the right time to achieve its objectives.

Strategic HRIS includes.

a) Workforce planning systems.b) Information systems supporting labour negotiations.

c) Other strategic uses of HRIS.

Workforce planning systems: -

This involves identifying the human resources needed to meet the

organizational objectives specified, which depends on forecasting supply

and demand of the required workforce. Forecasting human resource needsthe following required information, to the questions.

1) What labour force meets the strategic plan? What skills, experiences,

knowledge and other qualities should the human resource possess,

i.e., what job description & job specifications does the strategic planrequire?

2) How many human resources, qualities and how many positions arerequired to meet the strategic plan?

3) What are the current human resources of the organization and how

well they satisfy the organizations strategic needs for human

resource?4) What other human resources are available to achieve the strategic

plan.

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Business Plan

Work force Plan

Forecasted

labor supply

& demand

Externally

labor supplySuccession

Planning

Job analysis

& design

Recruiting Compensation

& benefits

Training &

development

EmployeeProfile

Positioncontrol

PerformanceManagement

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Fig: - A model showing HRIS support for work force plan.

Human resources are identified internally and externally.

Forecasting demand and supply can be:1) Macroeconomic level: - Forecasts in various job categories can be

obtained for states and regions from a variety of national & state

agencies.2) Microeconomic Level: - Forecasts involve using data more

specific to the organization.

b) Information systems supporting labour negotiations: -

It includes negotiations with craft, maintenance, office and factory

unions etc. HR to negotiate needs numerous adhoc reports to analyze the

organizations and Unions positions in industry and the current economicsituations.

c) Other strategic uses of HRIS: -

Like organizations planning to restructure, downsize, sell off

divisions or merge with other organizations need to know what impactthese decisions will have on their workforce profiles, overall cost of

personnel, benefit plans, retirement and health plans.

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