a system is a collection of elements or components that are organized for a common purpose

7/27/2019 A System is a Collection of Elements or Components That Are Organized for a Common Purpose

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Define system

A system is a collection of elements or components that are organized for a

common purpose.

A computer system consists of hardware components that have been carefullychosen so that they work well together and software components or programs

that run in the computer.

The main software component is itself anoperating systemthat manages and

provides services to other programs that can be run in the computer.

All of nature and the universe can be said to be a system. We've coined a

word, ecosystem, for the systems on Earth that affect life systems.

The term can be very useful because so many things can be described as

systems. It can also be very unuseful when a more specific term is needed.

Acomputer systemrefers to the hardware and software components that run a

computer or computers.

An information system is a system that collects and stores data

system is a set of interacting or interdependent components forming an

integrated whole or a set ofelements (often called 'components') and

relationships which are different from relationships of the set or its elements to

other elements or sets Some systems share common characteristics, including.

A system has structure, it contains parts (or components) that are directly orindirectly related to each other;

A system has behavior, it contains processes that transform inputs into outputs

(material, energy or data);
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Physical systems are tangible entities that may be static or dynamic in operation.

An open system has many interfaces with its environment. i.e. system that

interacts freely with its environment, taking input and returning output. It permits

interaction across its boundary; it receives inputs from and delivers outputs to theoutside.

A closed system does not interact with the environment; changes in the

environment and adaptability are not issues for closed system.


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Define a Processor

the CPU, or the central processing unit, also known as a processor for short, is

the brain of every computer.

The CPU executes any calculation or process made by the computer.

The processor uses bits that have either a value of 0 or 1 for all of its calculations

("bit" is short for "binary digit").

Computers store, process and retrieve information by using strings of bits, such

as, for example "1011001."

A processor, or "microprocessor," is a small chip that resides incomputers and

other electronic devices.

Its basic job is to receiveinputand provide the appropriateoutput. While this may

seem like a simple task, modern processors can handle trillions of calculations

per second.

The central processor of a computer is also known as theCPU, or "central

processing unit." This processor handles all the basic system instructions, such

as processingmouseandkeyboardinput and runningapplications.

Modern CPUs often include multiple processing cores, which work together to

process instructions. While these "cores" are contained in one physical unit, they

are actually individual processors.

Processors that include two cores are calleddual-coreprocessors, while those

with four cores are calledquad-coreprocessors. Some high-end workstations

contain multiple CPUs with multiple cores, allowing a single machine to have

eight, twelve, or even more processing cores.
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Types

There are three types of processors on the market today:

16-bit, 32-bit and 64-bit.

A 32-bit processor can represent numbers (only using 0's and 1's) from 0 to4,294,967,295,

while a 64-bit machine can represent numbers from 0 to

18,446,744,073,709,551,615.

Fetch

The instructions processed by a CPU are strings of numbers that are stored in

the computer's memory. Once a process is initiated, the CPU retrieves the

instructions from the memory, a process called "fetch." This is the first step that

the CPU takes whenever any calculation or task is initiated.

Decode

The analyzing of the instructions after fetching is called "decoding," where the

CPU basically "decides" how to process the instructions that it retrieved from its

memory.

Execute

After decoding the information, the CPU sends different segments of the

instructions to the appropriate sections of the processor, a process called

"execution." In case of additional actions that may be necessary to execute

certain decoded instructions, an arithmetic logic unit (ALU) is attached to a group

of inputs and outputs -- the inputs provide the numbers to be processed and the

outputs contain the final sum or response to the request.

Write back

Finally, after executing the instruction, the processor writes the results back into

memory and proceeds to execute the next instruction, a process called "write


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back." Advanced computer processors can fetch, decode and execute multiple

instructions simultaneously.

Definition - What does Bus iness Sof twaremean?

Business software is software that is used for business purposes. The term is

often used more specifically for software that helps a business to accomplish

specific goals through the applied principles that the software supports.

Definition - What does Decision Suppor t System (DSS)mean?

A decision support system (DSS) is a computer-based application that collects,

organizes and analyzes business data to facilitate quality business decision-

making for management, operations and planning.

A well-designed DSS aids decision makers in compiling a variety of data from

many sources: raw data, documents, personal knowledge from employees,

management, executives and business models. DSS analysis helps companies

to identify and solve problems, and make decisions.

Definition - What does Customer Relat ionsh ip Management (CRM)Dashbo ard (CRM Dashboard)mean?

A customer relationship management (CRM) dashboard is an enterpriseapplication (EA) interface used for the monitoring of business and sales

opportunities, processes and performance.

A CRM dashboard provides real-time business event snapshots, which are used

to measure and develop analytics for business reporting.

CRM dashboard is also known as CEO dashboard or enterprise dashboard.

EXPLAINS CUSTOMER RELATI ONSH IP MANAGEMENT (CRM)

DASHBOARD (CRM DASHBOARD)

A CRM dashboard is similar to an automobile dashboard and primarily differs in

terms of interactive capability.


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Hewlett-Packard (HP) was the first organization to develop a CRM dashboard

product.

With a simple mouse click, automated CRM dashboard reports are provided in

the form of reports, graphs, charts and maps.

A CRM dashboard aggregates data from multiple sources and EAs, which is

merged into an analytical report.

Business managers may use these reports to maximize organizational

efficiency.

CRM dashboards facilitate comparative business analysis through the capturing

of data and related Web-based elements. Additionally,

CRM dashboards use sales and marketing analysis to boost sales and enhance

customer satisfaction.

Types of business software tools

Enterprise application software (EAS)

Digital dashboards - Also known as business intelligence dashboards, enterprise

dashboards, or executive dashboards, these are visually based summaries of

business data. A very popular BI tool that has arisen in the last few years

Online analytical processing, commonly known

as OLAP (including HOLAP, ROLAP and MOLAP) - a capability of some

management, decision support, and executive information systems that supports

interactive examination of large amounts of data from many perspectives.

Reporting software generates aggregated views of data to keep the management

informed about the state of their business.

Data mining - extraction of consumer information from a database by utilizing

software that can isolate and identify previously unknown patterns or trends in

large amounts of data. There are a variety of data mining techniques that reveal

different types of patterns. Some of the techniques that belong here are statistical
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methods (particularly business statistics) and neural networksas very advanced

means of analysing data.

Business performance management (BPM)

Definition - What does Data Miningmean?

Data mining is the process of analyzing hidden patterns of data according to

different perspectives for categorization into useful information, which is collected

and assembled in common areas, such as data warehouses, for efficient

analysis, data mining algorithms, facilitating business decision making and other

information requirements to ultimately cut costs and increase revenue.

Data mining is also known as data discovery and knowledge discovery.

EXPLAINS DATA MINING

The major steps involved in a data mining process are:

Extract, transform and load data into a data warehouse

Store and manage data in a multidimensional databases

Provide data access to business analysts using application software

Present analyzed data in easily understandable forms, such as graphs

The first step in data mining is gathering relevant data critical for business.

Company data is either transactional, non-operational or metadata.

Transactional data deals with day-to-day operations like sales, inventory and cost etc.

Non-operational data is normally forecast, while metadata is concerned with logical

database design. Patterns and relationships among data elements render relevant

information, which may increase organizational revenue.

Organizations with a strong consumer focus deal with data mining techniques providing

clear pictures of products sold, price, competition and customer demographics.

the retail giant Wal-Mart transmits all its relevant information to a data warehouse with
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terabytes of data. This data can easily be accessed by suppliers enabling them to

identify customer buying patterns. They can generate patterns on shopping habits, most

shopped days, most sought for products and other data utilizing data mining

techniques.

The second step in data mining is selecting a suitable algorithm - a mechanism

producing a data mining model.

The general working of the algorithm involves identifying trends in a set of data and

using the output for parameter definition.

The most popular algorithms used for data mining are classification algorithms and

regression algorithms, which are used to identify relationships among data elements.

Major database vendors like Oracle and SQL incorporate data mining algorithms, suchas clustering and regression tress, to meet the demand for data mining.


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INTRODUCTION TO ACCOUNTING.

It is not easy to provide a concise definition of accounting since the word has a

broad application within businesses and applications.

The American Accounting Association define accounting as follows:

"the process of identifying, measuring and communicating economic information

to permit informed judgments and decisions by users of the information!.

- It suggests that accounting is about providing information to others.

Accounting information is economic information - it relates to the

financial or economic activities of the business or organization.

- Accounting information needs to be identified and measured. This is

done by way of a "set of accounts", based on a system of accounting

known as double-entry bookkeeping. The accounting system identifiesand records "accounting transactions".

Accounting information is communicated using "financial statements"

WHAT IS THE PURPOSE OF FINANCIAL STATEMENTS?

There are two main purposes of financial statements:

(1) To report on the financial position of an entity (e.g. a business, an

organization);

(2) To show how the entity has performed (financially) over a particularly period

of time (an "accounting period").

The most common measurement of "performance" is profit.

It is important to understand that financial statements can be historical or relate to the

future.

Accountability

Accounting is about ACCOUNTABILTY

Most organizations are externally accountable in some way for their actions

and activities. They will produce reports on their activities that will reflect their

objectives and the people to whom they are accountable.


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The table below provides examples of different types of organizations and how

accountability is linked to their differing organizational objectives:

Organization Objectives Accountable to (examples)

Private or p ubl ic

company

(e.g. BP, Tesco)

- Making of profit

- Creation of wealth

- Shareholders

- Other stakeholders (e.g.

employees, customers,

suppliers)

Charit ies

(e.g. Save the

Children)

- Achievement of charitable

aims

- Maximise spending on

activities

- Charity commissioners

- Donors

Local Autho r i t ies

(e.g. Leeds City

Council)

- Provision of local services

- Optimal allocation of

spending budget

- Local electorate

- Government departments

Public s ervices (e.g.

transport , heal th)

(e.g. National Health

Service, PrisonService)

- Provision of public service

(often required by law)

- High quality and reliability of

services

- Government ministers

- Consumers

Quasi-governmental

agencies

(e.g. Data Protection

Registrar, Scottish

Arts Council)

- Regulation or instigation of

some public action

- Coordination of public sector

investments

- Government ministers

- Consumers

All of the above organizations have a significant roles to play in society and have

multiple stakeholders to whom they are accountable.

All require systems of financial management to enable them to produce accounting

information.
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How accounting information helps businesses be accountable

As we have said in our introductory definition, accounting is essentially an "information

process" that serves several purposes:

- Providing a record of assets owned, amounts owed to others and monies invested;

- Providing reports showing the financial position of an organization and the profitability

of its operations

- Helps management actually manage the organization

- Provides a way of measuring an organizations effectiveness (and that of its separate

parts and management)

- Helps stakeholders monitor an organizations activities and performance

- Enables potential investors or funders to evaluate an organization and make decisions

There are two broad types of accounting information:

(1) Financial Accounts: geared toward external users of accounting information

(2) Management Accounts: aimed more at internal users of accounting information

:Collection Collection in money terms of information relating to transactionsthat have resulted from business operations

Recording and

Classifying

Recording and classifying data into a permanent and logical

form. This is usually referred to as "Book-keeping"

Summarizing

Summarizing data to produce statements and reports that will

be useful to the various users of accounting information - both

external and internal

Interpreting and

Communicating

Interpreting and communicating the performance of the

business to the management and its owners


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Forecasting and

Planning

Forecasting and planning for future operation of the business

by providing management with evaluations of the viability of

proposed operations. The key forecasting and planning tool is

the "Budget"

The process by which accounting information is collected, reported, interpreted and

auctioned is called "Financial Management". Taking a commercial business as the

most common organizational structure, the key objectives of financial management

would be to:

(1) Create wealth for the business

(2) Generate cash, and

(3) Provide an adequate return on investment bearing in mind the risks that thebusiness is taking and the resources invested

The main financial accounting statements

The purpose of financial accounting statements is mainly to show the financial position

of a business at a particular point in time and to show how that business has performed

over a specific period.

The three main financial accounting statements that help achieve this aim are:

(1) The profit and loss account (or income statement) for the reporting period

(2) A balance sheet for the business at the end of the reporting period

(3) A cash flow statement for the reporting period

A balance sheet shows at a particular point in time what resources are owned by a

business ("assets") and what it owes to other parties ("liabilities"). It also shows how

much has been invested in the business and what the sources of that investment

finance were.

What is profit?

Profit is the amount by which sales revenue (also known as "turnover" or "income")

exceeds "expenses" (or "costs") for the period being measured.


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DEFINITION OF 'ACCOUNTING INFORMATION SYSTEM - AIS'

The collection, storage and processing of financial and accounting data that is

used by decision makers.

An accounting information system is generally a computer-based method for

tracking accounting activity in conjunction with information technology resources.

The resulting statistical reports can be used internally by management or

externally by other interested parties including investors, creditors and tax

authorities.

explains 'Accounting Information System

AIS'

Accounting information systems that combines traditional accounting practices

such as the Generally Accepted Accounting Principles (GAAP) with modern

information technology resources. Six elements compose the typical accounting

information system:

People - the system users.

Procedure and Instructions - methods for retrieving and processing data.

Data - information pertinent to the organization's business practices.

Software - computer programs used to process data.

Information Technology Infrastructure - hardware used to operate the system.

Internal Controls - security measures to protect sensitive data.

Information on Accounting and Information Technology

Accounting and information technology go hand in hand, with accounting applications

being very popular with many businesses. It is rare to see any business using pencil

and paper to process accounting anymore. Computerized accounting is the standard

nowadays.

Speed

Computerized accounting is where information technology and accounting met,

resulting in great improvements in processing accounting data. Computerized


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What Is an Accounting Information System?

The location where a company stores its accounting data is called an accounting

information system. Most companies incorporate computer technology to house these

records and allow users to access these records.

1. Accounting Datao Accounting data consists of financial and non-financial data. Financial data provides the

details for information reported on accounting reports, financial statements and

government requests. In addition to the reports, accountants maintain backup

documentation which can be used to verify the numbers reported.

o Non-financial data consists of sales quantities, production volumes, labor hours and

asset descriptions. Non-financial data supports financial numbers reported. Sales

quantities provide details for total sales. Production volume provides details forinventory quantities. Labor hour data provides details for payroll. Asset descriptions

provide details for property and equipment reported.

Information System

o An information system provides the warehouse for compiling all of the data needed in a

company. Information systems need a strong organization in order to allow users

access to the information they need without providing access to confidential information

beyond their needs. Many companies purchase software programs to manage their

information system needs.

Accounting Information System

o An accounting information system is an information system built to meet the specific

needs of the accounting department.

o The accounting department manages a variety of confidential pieces of information.

Hourly labor rates and annual salaries, along with private personnel information,

requires limited access within the department.

o Customer selling prices must remain confidential, especially when different customers

pay different rates for similar products. Knowledge of manufacturing costs must remain


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internal lest competitors try to under-price the company. With each of these examples,

only select employees need access to the information.

o An accounting information system must provide the mechanism for select employees to

retrieve certain information they must work with but not information outside their scope

of responsibility.

Uses

o In addition to maintaining confidentiality, accounting information systems provide users

with reports created for their specific needs. Accounting information systems also allow

users to download information into spreadsheets. In a spreadsheet, the user can select

specific pieces of information to meet their own needs.

The Benefits of Accounting Information Systems

Accounting information systems is designing a data processing system using software.

It can also be done manually. The computerized systems make accounting job easier

by the use of software which can compile financial, tax and payroll data. It can perform

other bookkeeping functions.

Efficiency

Computerized financial information systems are faster and more efficient in processing

data. The use of hardware such as scanners automatically generates accountinginformation without much ado.

Computerized financial systems enable users to access it promptly by the click of a

mouse. Unlike manual, which by the way is still very much in existence as some

companies want to keep both electronic and manual accounting information systems,

the user does not have to go through a pile of paper work in order to locate the

information he needs.

Cost Effectiveness

Accounting information system makes the maintenance of a bloated financial department

irrelevant. The software does most of the work that would otherwise require several

employees. The accounting software can journal and prepare documents such as the trial

balance. Journals and ledgers are recorded in the computer data bases. There is also


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software that can perform functions such as billing budgeting and preparing payroll.

Accounting information systems help cuts the payroll for accounting staff substantially.


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Definition - What are Financial Statements?

Financial Statements represent a formal record of the financial activities of an

entity. These are written reports that quantify the financial strength, performance

and liquidity of a company. Financial Statements reflect the financial effects of

business transactions and events on the entity.

Four Types of Financial Statements

The four main types of financial statements are:

1. Statement of Financial Position

Statement of Financial Position, also known as the Balance Sheet, presents the

financial position of an entity at a given date. It is comprised of the following three

elements:

Assets: Something a business owns or controls (e.g. cash, inventory, plant and

machinery, etc)

Liabilities: Something a business owes to someone (e.g. creditors, bank loans,

etc)

Equity: What the business owes to its owners. This represents the amount of

capital that remains in the business after its assets are used to pay off its

outstanding liabilities. Equity therefore represents the difference between the

assets and liabilities.

2. Income Statement

Income Statement, also known as the Profit and Loss Statement, reports the

company's financial performance in terms of net profit or loss over a specified

period. Income Statement is composed of the following two elements:

Income: What the business has earned over a period (e.g. sales revenue,

dividend income, etc)

Expense: The cost incurred by the business over a period (e.g. salaries and

wages, depreciation, rental charges, etc)

Net profit or loss is arrived by deducting expenses from income.
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Cash Flow Statement

Cash Flow Statement, presents the movement in cash and bank balances over a

period. The movement in cash flows is classified into the following segments:

Operating Activities: Represents the cash flow from primary activities of a

business.

Investing Activities: Represents cash flow from the purchase and sale of assets

other than inventories (e.g. purchase of a factory plant)

Financing Activities: Represents cash flow generated or spent on raising and

repaying share capital and debt together with the payments of interest and

dividends.

3. Statement of Changes in Equity

Statement of Changes in Equity, also known as the Statement of Retained

Earnings, details the movement in owners' equity over a period. The movement

in owners' equity is derived from the following components:

Net Profit or loss during the period as reported in the income statement

Share capital issued or repaid during the period

Dividend payments

Gains or losses recognized directly in equity (e.g. revaluation surpluses)

Effects of a change in accounting policy orcorrection of accounting error

Purpose of Financial Statements

The objective of financial statements is to provide information about the financialposition, performance and changes in financial position of an enterprise that is useful toa wide range of users in making economic decisions.

Financial Statements provide useful information to a wide range of users:

Managersrequire Financial Statements to manage the affairs of the company byassessing its financial performance and position and taking important businessdecisions.

Shareholdersuse Financial Statements to assess the risk and return of theirinvestment in the company and take investment decisions based on their analysis.
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Prospective Investors need Financial Statements to assess the viability of investing ina company. Investors may predict future dividends based on the profits disclosed in theFinancial Statements.

Financial Institutions (e.g. banks) use Financial Statements to decide whether to granta loan or credit to a business. Financial institutions assess the financial health of a

business to determine the probability of a bad loan. Any decision to lend must besupported by a sufficient asset base and liquidity.

Suppliers need Financial Statements to assess the credit worthiness of a business andascertain whether to supply goods on credit. Suppliers need to know if they will berepaid. Terms of credit

are set according to the assessment of their customers' financial health.

Customers use Financial Statements to assess whether a supplier has the resourcesto ensure the steady supply of goods in the future. This is especially vital where a

customer is dependant on a supplier for a specialized component.

Employees use Financial Statements for assessing the company's profitability and itsconsequence on their future remuneration and job security.

Competitors compare their performance with rival companies to learn and developstrategies to improve their competitiveness.

General Public may be interested in the effects of a company on the economy,environment and the local community.

Governments require Financial Statements to determine the correctness of taxdeclared in the tax returns. Government also keeps track of economic progress throughanalysis of Financial Statements of businesses from different sectors of the economy.


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Inventory System Definition

Inventory management is vitally important for any business that sells a physical

product. An inventory system must balance having enough inventories on hand

to meet the demand of customers while investing as little money as possible in

inventory.

Perishable products add another dimension of management considerationsbecause they must be cycled through the inventory system more quickly and

stored in a way that preserves their value.

1. Inventory Review

o Inventory review refers to the time interval between counting inventories.

o Periodic review systems have a set schedule for conducting an inventory count.Transactional review systems update the inventory count after each transaction.

o Periodic review is less resource intensive but more prone to creating shortages and

inventory discrepancies while transactional review is more accurate but requires moreresources.

Inventory Costs

o Inventory costs can be broken into several categories:

o the actual cost of the inventoried product, the cost of storage and the cost of unmetdemand if inventory is not available to fill orders.

o Additional costs include transportation and ordering costs incurred when replenishinginventory. Each of these costs is unique to individual businesses and can vary widely.

Inventory Levelso A number of factors determine the amount of product kept on hand, including average

monthly demand, warehouse capacity and replenishment period. Enough products mustbe available to meet daily orders or customers will go elsewhere. Warehouse capacitysufficient to store adequate inventory levels is necessary to ensure product availability.The reliability and speed of inventory replenishment from suppliers determines both ofthese factors. If replenishment of inventory is quick and reliable, then lower inventorylevels and less warehouse capacity will be sufficient to meet demand.

COMPUTERIZED INVENTORY SYSTEMS

o Computers and bar codes allow for a more efficient management of inventory levels andprovide a clearer view of inventory movement.

o More businesses are using transactional review systems because computerizedsystems can link to the point of sale with automatic debiting of inventory occurring inreal time when the sale occurs. Inventory software can also link to other businesssystems to integrate more fully all aspects of the business process.


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The Importance of Inventory Systems

Inventory systems play this vital role by accounting for all goods or products. They also

show where a particular item is in the flow of sales, whether it be in a warehouse or on a

store shelf.

Types

. Inventory systems used in manufacturing companies must keep track everything from the

ordering of materials to the point at which the finished product is shipped out. Retail

inventories focus on the products ordered and sold.

Benefits

The use of inventory systems helps management control operation cost with use of

tools like forecasting based on sales trends. Inventory systems also tell managementabout loss, making it invaluable for implementation of loss-control procedures.

Different Inventory Systems

FIFO

The FIFO method stands for First In First Out. This inventory method totals your items

based on the concept that the first items which enter your inventory pool are the first

ones to be sold. For example, if you purchase 10 MP3 players for $70 on April 1 and 10

of the same players for $75 on May 1, this inventory method will show that the $70 MP3

players will be sold first (even if they are all the same player).

LIFO

LIFO, or Last In First Out, is the exact opposite of FIFO. In this inventory valuation

method, the last inventory items to be added are the first ones sold. Using the example

above, the items which are sold first are the MP3 players which were purchased at the

$75 price. This method also has the opposite effect of FIFO, showing a higher cost of

goods sold (because the last items will usually be more expensive) and a lower

inventory amount on the balance sheet (because older items usually cost less).


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Average Cost Method

Another inventory method is known as the average cost. This method goes in a

completely different direction than either LIFO or FIFO. In order to get a value for the

inventory you have, you simply add up the cost of every single piece of the same type of

inventory you have and then divide by the number of items. This inventory method is

best used for businesses which do not have many sales and whose inventory price

does not change very often (e.g. an industrial machine manufacturing company).

Basic Inventory Systems

A basic inventory system has a few main components.

Periodic Inventory System

The periodic inventory system is common in small businesses. A simple accounting

system, such as a spreadsheet, keeps track of all incoming shipments, sales, returns

and other inventory related information for a specific time period. Many small

businesses work on a monthly schedule, but this system may be used on a weekly,

quarterly or yearly scale depending on the logistical capabilities of the company.

Perpetual Inventory System

a perpetual inventory system records all transactions to the inventory account as they

occur. The inventory levels always reflect the actual amount of stock on hand at any given

moment. This type of system requires a larger initial investment than a periodic inventory

system because it makes use of technology such as bar-code scanners to integrate the

stockroom with the point of sale or shipment. Each unit is scanned and that information

automatically updates the stock levels and other stock information, eliminating the need for

a physical count of the inventory. However, many companies still choose to perform a

physical count on a yearly basis just to verify the data.


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Marketing Information System MIS Definition

1. According to Donald Cox and Robert Good,

An MIS may be defined as a set of procedures and methods for the regular,

planned collection, analysis, and presentation of information for use in

making marketing decisions. This of course is a step beyond logistics systems,

which handle inventory control, orders, and so forth.

This definition of Marketing Information System (MIS) is referred from a 1937

classic paper titled How to build a Marketing Information System, written by

Donald F. Cox and Robert E. Good.

2. According to Prof. Mudit Katyani,

MIS is a planned tactic to do analysis of mainly three system requirements viz.,

people, information, and technology. It is required at all levels of management inexecuting operational, managerial, and strategic decisions. Its intention is to

design the procedures which give a comprehensive report in a timely manner.

Prof. Katyanis definition of MIS gives a broad coverage of its overall concept.

The diagram of Marketing Information System, i.e. MIS is depicted below.

The diagram of Marketing Information System, i.e. MIS is depicted below.
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MEANING OF MIS

Marketing Information System, abbreviated as MIS, means to collect, analyze

and supply marketing information to the marketing managers.

The marketing managers use this information to take marketing decisions. MIS is

a permanent and continuous process.

Marketing information includes all facts, estimates, opinions, guidelines, policies

and other data.

This information is necessary for taking marketing decisions.

This information is collected from both internal and external sources.

It is collected from customers, competitors, company salesmen, government

sources, specialized agencies, so on.

MIS collects the marketing information from different sources. This information

(data) is analyzed. Then, it is supplied to the marketing managers.

The marketing managers use this information for taking marketing decisions. MIS

also evaluates and stores the information. MIS uses modern technology for

collecting, analyzing, storing and supplying information.

Marketing Information System (MIS):

1. Features of Marketing Information System MIS.2. Components of Marketing Information System MIS.

3. Essential requisites of a good MIS.

4. Distinguish Between MIS and Marketing Research (MR).

The Functions of Management

The classical model identifies the following 5 functions as the parameters of what managersdo:

1 Planning

2 Organizing

3 Coordinating

4 Deciding

5 Controlling
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Behavioral models are based on empirical evidence showing that managers are lesssystematic, less reflective, more reactive and less well organized than the classicalmodel projects managers to be.

For instance, behavioral models describe 6 managerial characteristics:

High volume, high speed work

Variety, fragmentation, brevity

Issue preference current, ad hoc, specific

Complex web of interactions, contacts

Strong preference for verbal media.

Decision Making

Decision making is often seen as the centre of what managers do, something that engages

most of a managers time.

It is one of the areas that information systems have sought most of all to affect (with mixedsuccess).

Decision making can be divided into 3 types:

strategic,

management control

operations control.

Strategic decision making:

This level of decision making is concerned with deciding on the objectives,

resources and policies of the organization.

A major problem at this level of decision making is predicting the future of the

organization and its environment, and matching the characteristics of the

organization to the environment.

This process generally involves a small group of high-level managers who deal

with very complex, non-routine problems.


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Management control decisions:

Such decisions are concerned with how efficiently and effectively resources are

utilized and how well operational units are performing.

Management control involves close interaction with those who are carrying out

the tasks of the organization; it takes place within the context of broad policiesand objectives set out by strategic planners.

An example might be where a transporter of agricultural products observes that his/her

profits are declining due to a decline in the capacity utilization of his/her two trucks. The

manager (in this case the owner) has to decide between several alternative courses of

action, including: selling of trucks, increasing promotional activity in an attempt to sell the

spare carrying capacity, increasing unit carrying charges to cover the deficit, or seeking to

switch to carrying products or produce with a higher unit value where the returns totransport costs may be correspondingly higher. Management control decisions are more

tactical than strategic.

Operational control decisions:

These involve making decisions about carrying out the " specific tasks set forth bystrategic planners and management.

The focus here is on how the enterprises should respond to day-to-day changes in thebusiness environment.

this type of decision making focuses on adaptation of the marketing mix, e.g. howshould the firm respond to an increase in the size of a competitor's sales force? shouldthe product line be extended? should distributors who sell below a given sales volumebe serviced through wholesalers rather than directly, and so on.

Within each of these levels, decision making can be classified as either

structured or

unstructured.

Unstructured decisionsare those in which the decision maker must provide insightsinto the problem definition. They are novel, important, and non-routine, and there is nowell-understood procedure formaking them.


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structured decisions are repetitive, routine, and involve a definite procedure forhandling them so that they do not have to be treated each time as if they were new.

Structured and unstructured problem solving occurs at all levels of management. In the

past, most of the success in most information systems came in dealing with structured,

operational, and management control decisions.

for example, that the Operations Manager for the National Milling Corporation is faced

with a decision as to whether to establish buying points in rural locations for the grain

crop. It soon becomes apparent that the decisions are likely to be made over a period of

time, have several influences, use many sources of information and have to go through

several stages. It is worth considering the question of how, if at all, information systems

could assist in making such a decision. To arrive at some answer, it is helpful to break

down decision making into its component parts.

4 stages in decision making:

intelligence,

design

, choice

and implementation.

Intelligence involves identifying the problems in the organisation: why and wherethey occur with what effects. This broad set of information gathering activities is

required to inform managers how well the organisation is performing and where

problems exist. Management information systems that deliver a wide variety of

detailed information can be useful, especially if they are designed to report

exceptions

Designing manypossible solutions to the problems is the second phase of decision

making. This phase may require more intelligence to decide if a particular solution is

appropriate. Here, more carefully specified and directed information activities and

capabilities focused on specific designs are required.


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Choosingamong alternative solutions is the third step in the decision making

process. Here a manager needs an information system which can estimate the

costs, opportunities and consequences of each alternative problem solution.

Implementingis the final stage in the decision making process. Here, managers can

install a reporting system that delivers routine reports on the progress of a specific

solution, some of the difficulties that arise, resource constraints, and possible

remedial actions.

Stages in the decision making process

Stage of Decision Making Information Requirement

1 Intelligence Exception reporting

2 Design Simulation prototype

3 Choice "What-if simulation4 Implementation Graphics, charts

Components of a marketing information system

"A marketing information system is a continuing and interacting structure of people,

equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely

and accurate information for use by marketing decision makers to improve their marketing

planning, implementation, and control".

Figure 9.1 The marketing information systems and its subsystems


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Internal reporting systems:All enterprises which have been in operation for any period of

time nave a wealth of information.

The internal records that are of immediate value to marketing decisions are: orders

received, stockholdings and sales invoices.

a list of some of the information that can be derived from sales invoices.

Product type, size and pack type by territory

Product type, size and pack type by type of account

Product type, size and pack type by industry

Product type, size and pack type by customer

Average value and/or volume of sale by territory

Average value and/or volume of sale by type of account

Average value and/or volume of sale by industry

Average value and/or volume of sale by sales person

Marketing research systems: . Marketing research is a proactive search for information.

That is, the enterprise which commissions these studies does so to solve a perceived

marketing problem., data is collected in a purposeful way to address a well-defined problem

(or a problem which can be defined and solved within the course of the study).

Marketing intelligence systems:

A marketing intelligence system is a set of procedures and data sources used by marketing

managers to sift information from the environment that they can use in their decision

making.

Unfocusedscanning

The manager, by virtue of what he/she reads, hears and watches exposeshim/herself to information that may prove useful.

Semi-focusedscanning

Again, the manager is not in search of particular pieces of information that he/sheis actively searching but does narrow the range of media that is scanned. Forinstance, the manager may focus more on economic and business publications,broadcasts etc. and pay less attention to political, scientific or technologicalmedia.


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Informalsearch

. For example, the marketing manager of a firm considering entering the businessof importing frozen fish from a neighbouring country may make informal inquiriesas to prices and demand levels of frozen and fresh fish. There would be littlestructure to this search with the manager making inquiries with traders he/shehappens to encounter as well as with otherad hoccontacts in ministries,international aid agencies, with trade associations, importers/exporters etc.

Formalsearch

This is a purposeful search after information in some systematic way. Theinformation will be required to address a specific issue.

Marketing models: These models may be computerized or may not. Typical tools are:

Time series sales modes

Brand switching models

Linear programming

Elasticity models (price, incomes, demand, supply, etc.)

Regression and correlation models

Analysis of Variance (ANOVA) models

Sensitivity analysis

Discounted cash flow

Spreadsheet 'what if models


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Logistics Outbound Activities

Logistics are the ways in which raw materials are transformed into manufactured goods

and then transported to the end consumer. Effective logistics ensures that there is a

consistent and efficient train of goods and services that travel from point to point. This

avoids shortages and ensures that customers are satisfied.

Definition

Outbound logistics focuses on getting products to consumers. Businesses must have

established routes for transporting products, employees who transport these products,

and the necessary equipment needed to move products.

How It Works Assume that you own a bakery that delivers pastries to various stores across the state.

Your business receives an order for 30 cakes in several neighboring cities. You must

choose a shipping carrier. Additionally, the deliveries must be coordinated so that the

recipients obtain the products within a certain time frame. The cakes are sent to a

distribution center where your chosen delivery service ships them to their respective

locations. Naturally, these services come at a price, which you must manage. All of

these things involve outbound logistics.

Inbound Logistics

Outbound logistics cannot exist without inbound logistics. While outbound logistics dictate

delivery and distribution, inbound logistics determine how certain goods and products come

in. The factors and components are essentially the same. Coordinating deliveries, orders

and material costs are all part of inbound logistics. Together, inbound and outbound

logistics create a system of incoming and outgoing processes that impact the profits andcosts that a business incurs.

Inbound Logistics Example

Using the bakery example, you must be able to make the cakes before you ship them.

In order to do this, your business chooses a delivery system and distributor that sends


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you the necessary cake ingredients, such as flour, sugar, eggs and frosting.

Communication with your provider and any associated fees are also part of inbound

logistics.

Documentation

Businesses must document all outbound activities. When sending products from thewarehouse to the distribution channels, businesses must deduct the shipped quantity

from the warehouse..

Route Management

Logistics managers must determine the route that the delivery vehicles travel. In most

cases, logistics will remain the same. But sometimes, traffic or road construction can

force delivery vehicles to take alternative routes. The shipment either reaches the

customer or reaches a location where products are consolidated for a larger shipment.

The customer can be either a retailer or a direct consumer.

Proof of Delivery

The customer performs inventory and uses a proof of delivery instrument to confirm that all

of the shipment has arrived. In some cases, the shipment might be damaged or stolen. All

data must be collected and analyzed.

E-Commerce E-commerce has lead to more efficient outbound logistics. Businesses can distribute

electronic products instantly. Also, businesses can ship products directly to consumers

through third parties. Businesses can more rapidly respond to changing demand, since they

have customers that they know need products.

Modes of Transportation in Logistics

Logistics refers to the transportation of goods and merchandise -- raw materials or finished

products -- from the point of production to the point of final consumption. Different modes

of transportation like road, rail, water and air can be used for the effective management of

merchandise. Every mode of transportation requires a different set of infrastructure, type of

vehicles, technological solutions and regulations. All have different costs, service and transit

times.


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1.Road

o Road transportation is one of the most basic and historical means of transportation from

one place to another. There are many different types of automobiles found on roads,

although trucks and carriers typically are used for carrying or delivering freight. Road

transportation incurs a relatively lower cost than other logistic forms and has a widelyrecognizable and flexible route.

Rail

o Rail transport uses freight trains for the delivery of merchandise. Freight trains are usually

powered by diesel, electricity and steam. using rail transport can be less expensive if freight

is large and heavy and the pickup point as well as the delivery point is near the rail head.

Watero Water transport uses ships and large commercial vessels that carry billions of tons of

cargo every year. Developed in the 18th century, steam engines have been a long

favorite choice for making ships move, transport via water is considerably less

expensive than other logistics methods, which makes it one of the most widely used

choices of transport for merchandise.

Air

o Merchandise is carried in cargo holds within passenger airlines and/or via aircraft

designed to carry freight alone. Although air transport is more expensive than all other

means of transportation, it is undeniably most time-efficient. Perishable merchandise

like fruits and vegetables are mostly sent by air.


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What Is Market Demand Analysis?

Companies use market demand analysis to understand how much consumer demand

exists for a product or service. This analysis helps management determine if they can

successfully enter a market and generate enough profits to advance their business

operations. While several methods of demand analysis may be used, they usually

contain a review of the basic components of an economic market.

Market Identification

The first step of market analysis is to define and identify the specific market to target

with new products or services. Companies will use market surveys or consumer

feedback to determine their satisfaction with current products and services.

Business Cycle

Once a potential market is identified, companies will assess what stage of the business

cycle the market is in. Three stages exist in the business cycle:

emerging,

plateau

and declining.

Markets in the emerging stage indicate higher consumer demand and low supply of

current products or services.

The plateau stage is the break-even level of the market, where the supply of goods

meets current market demand.

Declining stages indicate lagging consumer demand for the goods or services supplied

by businesses.

Competition

An important factor of market analysis is determining the number of competitors and their

current market share. Markets in the emerging stage of the business cycle tend to have

fewer competitors, meaning a higher profit margin may be earned by companies. markets


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enter the declining business cycle, companies will conduct a new market analysis to find

more profitable markets.

The Methods of Market AnalysisMarketing research is based upon data collection, which in some cases is accomplished

by research instruments such as surveys. The most common application of market

analysis is tracking product sales. The analysis of the data can be accomplished

through various statistical methods.

The Traditional Model

The traditional model of market research is based upon the micro-economic behavior of

consumers, according to "Stated Choice Methods." This approach emphasizes thecharacteristics of goods that make them useful to consumers. Goods are used singularly or

in combination to achieve some result that the consumer desires or needs.

Data Analysis

Data analysis can be used to study past buying patterns or to create models to project

potential markets and buying habits. Empirical or mathematical models can be created.

The data for these models can be characteristics of the product or price. The modeling

technique can be relatively simple or quite complex. The shortcoming for a simple

model is less accuracy. The complex models provide more accuracy, but require

elaborate preparation and extensive data.

Scope of Market Analysis

the simple observation and recording of data. Companies and businesses use market

analysis to predict the reactions of individuals to current products or services. In

addition, they attempt to predict the reaction to the change of prices or the introductionof new products or services. The goal is to understand the acceptance or rejection of a

product, service or price through the use of market analysis, and to plan accordingly.


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Analysis of Demand & Supply

Supply and demand is a fundamental concept of all economic insights and the

foundation of the majority of modern economics. The basic theory states that the

"market mechanism" of supply and demand will result in an equilibrium price for a good

or service such that there will be equilibrium between the cost of the good to society as

well as the benefit of the good to consumers. Economists who believe in an infallible

market believe that the market will determine the optimum output of all goods, so long

as the costs and benefits of the goods are "internalized" to the market, and prices are

left free to fluctuate.

Supply

The supply and demand curves are both graphed with quantity "Q" on the "X" axis and

price "P" on the "Y" axis. The supply curve shows the relationship between the quantity

of a good that producers are willing to sell at a price. The supply curve, shown here in

red, slopes upward because, at a generally higher price, suppliers will be induced to sell

more. For example, if a paper products firm found that a certain type of paper now sold

for twice the price it used to, the company might stock more of it. If a plastics company

found out that plastics were selling for especially high prices this month, they might try

to hire more help or increase production in other ways to take advantage of the

opportunity.

Demand, and the Model using Curves

The demand curve, shown here in blue, shows how much of a good those consumers

are willing to purchase as the price per unit changes. When the price per unit is high,

consumers will likely find other goods and services that are cheap substitutes for the

good or learn to do without entirely, meaning they will buy less; if the price is low


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compared to other goods, they will have the incentive to buy more compared to other

goods. The demand curve and the supply curve can be manipulated by economists to

experiment with different hypothetical situations, to find out the resulting price and

quantity demanded.

How to Conduct a Market Analysis

A market analysis is an organized way of analyzing market opportunities, identifying

consumer needs and developing new products or services to meet those needs. If you

are an entrepreneur, conducting a market analysis is an important part of starting your

business. Likewise, established businesses conduct a market analysis when introducing

a new product or bringing an existing product into a new market.


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INTRODUCTION

Market Intelligence (MI), can be defined as the process of acquiring and analyzing

information in order to understand themarket(both existing and potentialcustomers); to

determine the current and future needs and preferences, attitudes and behavior of the

market; and to assess changes in the business environment that may affect the size

and nature of the market in the future. In other words market intelligence is the

information, gathered and analyzed specifically for the purpose of accurate and

confident decision making for determining market opportunity, market penetration

strategy, and market development metrics.

OBJECTIVES To provide market and customer orientation Identification of new opportunities

To identify new trends in markets and competitors

Early warning of competitor moves to enable counter measures

Minimizing investment risks, to detect threats and early market trends

To provide better customer interaction and to give intensified customer market view

Information for better market selection & positioning and to understand and

discover untapped or under-served potential

To give quicker, more efficient and cost-effective information in order to avoid

duplication of report acquisitions and expensive consultant work

Market intelligence'is the information relevant to a companys markets, gathered and

analyzed specifically for the purpose of accurate and confident decision-making in

determining market opportunity, market penetration strategy, and market development

metrics.

Business Intelligence refers to skills, processes, technologies, applications and

practices used to support decision making. Business Intelligence often aims to support

better business decision-making and as such can be defined as a decision support

system.
http://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Market_opportunityhttp://en.wikipedia.org/wiki/Market_penetrationhttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Business_intelligencehttp://en.wikipedia.org/wiki/Market_penetrationhttp://en.wikipedia.org/wiki/Market_opportunityhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Market


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What Is the Meaning of the Financial Information System?

.A financial information system is a collection of computer hardware and software tools

that help a firm report accurate data.

Definition

A financial information system is the cornerstone of a company's financial accounting

and reporting mechanisms. It includes all processes, databases and programs that

allow an organization to record transactions and report operating data.

Components

The most common components of a financial information system are general ledgers,

financial reporting databases and budgeting databases. Companies with multiple

operations in various countries usually adapt these components to local conditions.

General Ledger

A general ledger is an accounting worksheet with two columns, credit and debit. A

bookkeeper records transactions by debiting and crediting financial accounts, such as

asset, liability, equity, revenue and expense.

Financial Reporting Database

A financial reporting database helps a company prepare accounting statements at the

end of each month or quarter. These statements include a balance sheet, income

statement, cash flow statement and equity statement.

Budgeting Database

A budgeting database indicates historical data and expected amounts, based on senior

management's directives. It also includes cost limits and expense thresholds by which

segment managers must abide when operating.


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What Is a Financial Information System?

A financial information system (FIS) is a business software system used to input and

track financial and accounting data. The system generates reports and alerts that assist

managers in effectively running the business.

Systems typically have three main modules. The financial accounting module records all

accounting and financial transactions and produces financial statements. Funds

management identifies funding sources and overall spending consistent with budgets.

Controlling tracks revenue and expenses for each project or department.

What Are the Benefits of Financial Information Systems?

A financial information system (FIS) is charged with monitoring finances within an

organization or business. It takes complex data and processes it into specialized

reports, saving time and effort in dealing with business accounting. While financial

information systems have many benefits, it should be noted that having an FIS in place

can be costly and usually requires training for those people operating the system

Types of Financial Information Systems for a Business

Financial information systems gather, organize and streamline financial data to help

businesses make better decisions. Depending on the size of your company and industry,

there are various financial information systems available.

Accounting Software

A basic accounting software program can handle such tasks as invoicing and financial

statement reporting but will be insufficient to handle the needs of a large corporation.

Thus, accounting programs can be classified as mid-market, high-end and vertical

systems. In general, a financial information system gathers, organizes and tracks

accounting information.


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Mid-market

A mid-market financial information system can handle a business with between 10 to

100 employees and revenue between $10 to $50 million and is part of a bundled

software package in an enterprise resource planning (ERP) program. ERP refers to the

integration of all the processes and data used by a business into one system. Mid-

market ERP software has robust database capabilities and provides sophisticated

analytics. These systems are often scalable to meet the growth of the company. An

example of a mid-market financial information system is SAP Business One. A low-cost,

mid-market ERP program can cost $75,000.

High-end

High-end ERP software is usually associated with large and complex organizations. These

systems are customizable to fit specific business requirements. A number of ERP softwarevendors, such as SAP, PeopleSoft, Great Plains and Oracle, provide high-end financial

information systems. The average cost of one of these financial information systems can be

as much as $500,000.


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Definition of a Stock Exchange Market

This organization of buyers, sellers, traders and brokers defines the activity of a stock

market. The marketplace enables stocks, bonds, commodities and other financial

products and services to be marketed and sold, under a unified market structure and

under financial controls, oversight and regulations

1.History of the Stock Market

o The history of the modern stock market can be traced back to the oldest exchanges in

the world. In 16th century Amsterdam, the Dutch East India Co. became the first

organization to sell shares, based on a need to raise capital for expansion and to fund

the commodities it was bringing from the Far East. In 1607 a formal commodities

exchange was commissioned by the City of Amsterdam to house trading. In 1698, John

Costaing issued the first listing of stocks and commodity prices in a coffeehouse in

London, the precursor to the first modern exchange.

Functions of a Stock Market

o A stock market's primary role is to be a marketplace and a place for companies and

organizations to raise capital and provide liquidity---i.e., a place to liquidate their

holdings. Companies raise capital through the issuance of shares and debt, in the form

of bonds. These shares are available to the public and are held by institutions and

private investors.

Electronic Exchanges

o The stock market was traditionally a paper-based trading system. The advent of

electronic trading has led to the global connectivity of buyers and sellers. Electronic

exchanges and electronic communications networks (ECN) trade Nasdaq stocks,

connecting buyers and sellers directly and bypassing the traditional market makers.

This has become an alternative way to trade and deal in stocks on the Nasdaq and

increasingly on other exchanges.

Nasdaq

the Nasdaq has more trading volume than any other exchange in the world. Opened in

1971, the Nasdaq became the first completely electronic stock market. Even though it


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has a location in New York for marketing purposes, all of the actual trading is done

electronically.

The Objectives of the Stock Market Exchange1.Function of a Stock

o explains that a stock is a share of a company. A shareholder, therefore, is someone

who has claim to the company's assets and earnings. The objective for companies

issuing stock on the market is raising capital for its business.

o On one level, the objective of a stock market is to gather a group of people in one place

who share a common goal: the buying and selling of stocks. The stock market iscomprised of buyers and sellers who meet at a certain location to exchange goods at a

given price.

Benefits

o Every broker on the stock market cites one primary benefit and objective of investing in

the market: making money. The price fluctuation of a stock yields the opportunity to

earn a profit. For example, a client requests their broker to buy five shares at $15 each

of a company he believes is undervalued. If, later in the day, the stock price rises to $18

and he sells his shares, he has earned $15.


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Definition of Human Resource Information System

A human resource information system (HRIS) is software containing a database that

allows the entering, storage and manipulation of data regarding employees of a

company.

HRIS, or Human Resources Information Systems, are software solutions for managing

all the quantitative aspects of managing human resources and payroll departments.

Such tasks can be very complicated, especially if an business is very large and employs

hundreds or thousands of people. HRIS software helps to track people and resources,

conduct payroll calculations, manage responsibilities and do the accounting necessary

to maintain an efficient department. As with any type of business software, there are anumber of different software packages available covering different types of businesses

and duties. HRIS systems may perform any of the following functions.

Types of Software

o HRIS systems come in a variety of software configurations. Some systems are hard-

coded for local installation on a computer or network at the business' location. Other

systems conduct business online as a Software as a Service (SaaS) system, usually over the

Internet via web sites or Intranet systems. Finally, some application vendors may provide

service as a blend of these types of software.

Modular Systems

o Different software packages have different capabilities, and some vendors may offer

different tiers of service. Basic services are generally provided as part of a package with

additional functions being available as modules that can be plugged into the basic

package of software.

The Advantages of an HRIS System

An HRIS, or human resources information system, is a computer program that allows

companies to electronically store information about their employees. Being a computer

program, HRIS eases the work of managing employee issues.


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Data Storage

An HRIS stores a large collection of databases on employees and employee issues.

Databases are sets of data usually organized on a computer for convenient access.

Such databases include employee names, their contact information, and the

professional or non-professional training they received.

Ease of Data Update

an HRIS facilitates the updating of employee data, such as contact information or age. It

removes the need to use erasers or correction fluid to remove outdated or incorrect

data. With an HRIS, the person working on such data can easily delete the data and

enter the corrected information.

Efficiency

An example is the processing of payroll and benefits information. Instead of depending

on handwritten data for each employee and the laborious processing of this with pen,

paper and calculators, a company can employ an HRIS to process the information much

more quickly with few or no inaccuracies.

The Importance of a Human Resource Information System

The Human Resources Information System provides details on administration, payroll,recruitment, and training. This system is expected to deliver valuable results to your

human resources division and your organization as a whole. It is an essential tool that

aids management in making strategic decisions.

HRIS is usually fused with information technology to focus on human resource

management. Human resource refers to the companys employees. This system

consolidates computerized employee data into one data bank. It also updates prior and

future decisions according to the companys human resource management plan. HRISalso makes it possible for online users to view an employees history with the company,

personal profile and benefits.


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Types

There are two ways of implementing HRIS. The first is the administrative use. This

refers to the storing and consolidating of employee records that is used for daily

operation. Administrative HRIS is always integrated with information technology.

The second implementation is called Strategic HRIS which mainly aids the decision-making process. It involves using the administrative information to analyze an

employees value to the company. This is then important to those involved in the

recruitment and retention of people.


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Job Description: Definition & Purpose

A job description is a document primarily used by employers as an advertisement for

prospective employees. It also can be used for determining compensation and

performance reviews.

Definition of Job Description

A job description offers a definition of what is expected of employees. Job descriptions

include main duties, needed skills and education, as well as working conditions, hours

and occasionally salary.

Primary Duties

Job descriptions first explain the main or essential responsibilities of position. That may

include customer service, pouring concrete or entering data into computers. The first

part of a job description should provide as many details as possible.

Other Duties

Most job descriptions include "related duties," or responsibilities that may need to be

handled in addition to the essentials of the position. These are typically duties that are

not required but could present themselves during a work shift .

Skills and Experience

Job descriptions inform candidates which type of skills are needed for the position, such

as typing or accounting, as well as how much prior experience is required.

Working Conditions

It is vital for a job description to consist of the conditions in which a worker is exp

a system is a collection of elements or components that are organized for a common purpose

Documents