Human resource MIS systems evolved from paper files located in personnel departments to integrated digital systems. Key aspects of HR MIS include planning personnel needs, developing employee potential, and controlling personnel policies. The majority of firms maintain employee databases, while some also track external nonemployee data. Most firms store databases on central computers, while some use HR computers, operating division computers, or outsource storage. HR MIS provides subsystems and outputs for functions like human resource planning, recruiting, training, compensation administration, and benefits administration.

2. Human Resource MIS
 Concerned with all of the activities related to
employees and potential employees of the
organization

3. 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.

4. 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

5. The HRIS Database
Type of data:
1. Employee
82.5% of the firms maintain only employee data
2. Nonemployee
8% of the firms
Maintain external data to the firm

6. Possible HRIS Database
Locations
Firm's
central
computer
HR
computer
Operating
division
computer
Outside
service
center
0
100
200
300
400
Firm's
central
computer
HR
computer
Operating
division
computer
Outside
service
center
342
174
52
32

7. 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

8. Executives Non HR
10 3 41 12 3 4 5
Managers
HR
Director
Other HR
Managers
Not at all Occasionally Monthly Weekly Daily
Users of the HRIS DatabaseUsers of the HRIS Database

9. Processing
(Calc. Net pay)
An HR Example
Output
(cut paycheck)
Input
(hours worked)
Feedback Loop
(Is paycheck accurate?)

10. Inputs to the Human
Resource MIS
 Strategic plan or corporate policies
 The TPS:
 Payroll data
 Order processing data
 Personnel data
 External sources

11. 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

12. Typical HRIS Record Keeping
Requirements
 Employee information
 Wage and salary data
 Review dates
 Benefits
 Education and training
 Attendance
 Performance data/appraisal results

13. Benefit reports
Salary surveys
Scheduling reportsOperational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Human
Resource
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Human
resource
applications
databases
Training test scores
Job applicant profiles
Needs and planning
reports

14. Performance of HRIS

15. Work Force Planning
Subsystem
Enable manager to identify future personnel
needs
 Organization charting
 Salary forecasting
 Job analysis/evaluation
 Planning
 Work force modeling

16. Recruiting Subsystem
 Applicant tracking
 Internal search

17. Work Force Management
Subsystem
 Performance appraisal
 Training
 Position control -- ensuring that headcount does
not exceed budgeted limits.
 Relocation
 Skills/competency
 Succession
 Disciplinary

18. Compensation Subsystem
 Merit increases
 Payroll
 Executive compensation
 Bonus incentives
 Attendance

19. Benefits Subsystem
 Defined contribution
 Defined benefits
 Benefit statements
 Flexible benefits
 Claims processing

20. Financial MIS

21. Financial MIS
 Provides financial information to all financial
managers within an organization.

22. 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.

23. 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.

24. 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.

25. Financial statements
Uses and management
of funds
Financial statistics
for control
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet or
Extranet
Internet or
Extranet
Financial
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Financial
DSS
Financial
ES
Financial
applications
databases
Customers,
Suppliers

26. 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.

27. Financial MIS Subsystems
and Outputs
 Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds

29. 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

30. Basic Features
 Flexibility- Can your company respond to
change effectively?
 Cost/benefit relationship – The cost of an
accounting system should not outweigh the
benefits

31. Processing
Input
Output
Three Stages of
Data Processing Come from source
documents like
invoices
Journalizing,
posting
Financial statements
and other reports

32. 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

33. 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.

34. Transaction Processing
Cycles
A. Revenue Cycle
B. Expenditure Cycle
C. Production Cycle
D. Finance Cycle
E. Financial Reporting Cycle
The transaction processing
cycles provide a means of
viewing the activities of a
business.

35. A. Revenue Cycle
Events related to the
distribution of goods
and services to other
entities and the
collection of related
payments

36. B. Expenditure Cycle
Events related to the
acquisition of goods
and services from
other entities and the
settlement of related
obligations.

37. C. Production Cycle
Events related to the
transformation of
resources into goods
and services.

38. 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.

39. 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.