 We already know that people are a vital part of any business.  Like any resource, people need to be properly managed and a computer system can help us do this.

 Because all organisations need to abide by the data protection laws, their information needs to be regularly checked to ensure it is accurate and only kept if it is needed.  Some personnel information systems will help the system administrator ensure that the organisation complies with the laws.  It can automatically remind the users to update their details after a certain period of time.  It can also remind training organisers to provide training for those people who have not had their ‘refresher’ training sessions.

Training Andy Kevin Debbi Brian Update records Ray – He has moved house recently Pay Hours worked: 37 Pay rate: £20.56 Total: £ Tax: er.... To do… Get a computer system to do all this stuff for me!

 Describe one consequence of share prices being inaccurate on trading days.  A person uses an ATM and checks their balance. They are surprised to find more money than they expected…especially considering they spent a lot of money the previous day. They take out more money but then later find out that they have gone over drawn. Why might this be?  Identify three methods to ensure data is transferred accurately and speedily.

 All systems need to have some kind of output.  Sometimes the Personnel Information System can produce it’s own outputs but sometimes it is left to the Management Information System.  Either way, the outputs are the same.

 Describe two characteristics of a personnel system.  Why is it important that the personnel system be kept up to date?

 This type of system keeps records of all income and expenditures.  It is important that this system is kept up to date so that informed decisions can be made by the organisations.  Outputs may be generated by the finance system itself, or the MIS might retrieve the information from the system.

 Placing orders for stock from suppliers  Paying invoices from suppliers  Monitoring the status of orders › (pre-orders, ordered, received, awaiting delivery, late delivery etc)  Setting budgets within the organisation › Comparing the budget with actual expenditure  Stores the price each product and service the organisation offers

 Records orders placed for products/services  Producing invoices for products/services  Monitors the payment of invoices  Produces information about cash flow on a yearly to daily basis (graphical)  Produces simulations in accordance of a change e.g. hiring another employee.  Forecasting cash flows based on historical information.

 Can provide analysis on efficiency in terms of cash flow › Helps managers make informed decisions about whether they can find more cost-efficient methods of working.  Produce financial information about how successful each product or service has been.  Can provide information about the total cost of running each department.

 As you can see, the finance system can provide a lot of useful information to an organisation.  If data is shared through a MIS then it is likely that information about the personnel will also be fed into this system.  You can then start to extract information about the cost-effectiveness of each personnel!

 Describe two characteristics of a finance system.  Why might it be useful to run the personnel system and finance system through a management information system (MIS)?

 A stock control system is primarily used to ensure that there is enough stock to allow: › Production of products and services to continue › Products and services can be sold

 Maintains minimum stock levels › A minimum level is specified which is enough for producing new products/services and for sales.  Re-orders a specified amount of stock when the minimum level is reached  Up-to-date current stock levels  Planned deliveries of replacement stock

 The cost of purchasing each product  The RRP for the shops to sell the product  Dates the stock were ordered so that there is good stock rotation (oldest first)  Suppliers of each product  Location of stock so that it can be found in the warehouse

 EPOS (electronic point of sale) has allowed for greater efficiency in stock control.  Whenever a item goes through a till, for example, the stock level is reduced by 1 in the database.  Whenever the stock level falls to the minimum level the stock control system will place an order with the supplier for more stock.

 Some stock control systems will link in with the MIS.  If the financial system is linked into the MIS.  This will help reduce data redundancies (repeated data) and possible data inconsistencies (conflicting information).

 Describe three characteristics of a stock control system.  Describe how a stock control system maintains stock levels automatically.  Identify two characteristics that a stock control system and financial information system may have in common.  Try the activity on page 178 of the text book.