Chapter 6

Information Systems for Human Resource, Accounting, and Finance

Role Of Human Resource Information Systems Focus on the value of information and its

delivery to the primary customer , the line manager Leverage the web based technologies to optimize the collection, dissemination and processing of HR information Use Technology to maximize outsourcing opportunities Help employees manage their own careers and be comfortable in their workplace environment. Focus on building employee relations by adopting an ‘Internet culture’ Drive the transformation of an HR organization from an administrative to a strategic management focus

IS applications support for HR processes

Human Resource Information Systems

Integration of various HR applications

Collection of data at various points in the HR function (HR databases) and using computerized tools for making information available for effective decision making

Developing and improving intranet based applications for streamlining processes, co-ordination and work flow management

Web-based self service implementation for ensuring quality and timeliness of HR services

IS for recruitment and selection a collaborative approach provided by information systems links everyone involved in the hiring and staffing decisions since hiring is a very costly and time consuming activity, information systems provides the functionality of cumulating job postings by various departments and conducting the recruitment process together this results in reduction in the hiring time and reduction in costs

E-recruitment

Advantages of IS for Recruitment and Selection

Better management of your talent supply chain

Better quality candidates – faster

Enhanced brand recognition as a candidate-focused organization

Improved processes emphasizing best practices

Optimization of staffing resources - Increased employee retention

Role of IS for Recruitment and Selection

Resume scanning applications- resumes are submitted via-e-mail or the web or are scanned from hard copies( paper)- the system can be constantly updated to rank candidates with regard to all available positions within the company

Manage the interview process - manage the interview process, schedule dates and times, prompt interviewers- the results of the interviews are captured, compiled, and distributed to all the respective departments

On-line testing - initial interviewing and assessment

IS for Training and Development

Extend learning beyond the enterprise—to customers, suppliers, and partners, as well as employees

Assign and automate learning in order to develop the workforce—retain knowledge and eliminate skill gaps

Provide intelligent learning advice to customers and suppliers

Improve workforce effectiveness by delivering the right learning at the right time

Reducing learning costs by automating and streamlining learning processes

Delivering targeted, personalized learning to employees to build a more knowledgeable and effective workforce

Synchronizing learning strategies with business strategies to maximize results, analyzing learning effectiveness, and accurately measuring the ROI of learning programmes

Employee Relationship Management Through IS HR professionals are adopting a one-

on-one approach to the employee-employer relationship

Employee self-service is an important component of the e-HR equation, because it frees up HR to play a more strategic role in the organization. ERM efforts often will entail re-skilling or even redeploying HR professionals e-ERM should enable the flow of programs and policies in a seamless manner to the employees for best results

The ERM Model

The ERM implementation framework

IS for Performance Management

Streamline performance management Replace highly inefficient, disparate

processes with one integrated self-service process

Increase employee success. Define clear performance targets at the beginning of the performance period so that the managers can provide iterative feedback, coaching, and development to employees throughout the performance period

Improve talent management. Easily identify high performers across the enterprise for retention efforts, and identify those who require performance improvement

Reduce risks. Eliminate relative definitions of performance by standardizing performance definitions

Facilitate organizational change. Link key organizational initiatives to employee performance targets and expected behaviour

Improve feedback to employees. Help managers construct high-quality feedback to employees with HR Advisement tools while lessening the risk of inappropriate language usage

Need for Performance Management Systems

Collaboratively plan performance, behaviors, and competencies

Link strategic enterprise objectives to employee performance results and goals

Track performance progress throughout the performance period

Leverage HR Advisement tools such as Writing Assistant, Language Checker, and Development Tips

Complete assessments for results, behaviors, and competencies

Leverage pre-integrated performance and competency content

Track performance review deliverables with alerts and reports

Identify top performers and those needing performance improvement

Performance Management Cycle and IS tools

IS for Accounting and Finance

IS for Accounting and Finance

Drive enterprise-wide profit improvement and shareholder value

Create a "finance on demand" organization that is responsive, variable, focused and resilient

Reduce the cost of finance through efficient transaction transaction processing

Provide decision makers at all levels with the right information, when and where they need it

Effectively manage risk and opportunity

General Ledger module Weekly and daily reporting, Inventory

Accounting, Transfer reconciliation and Statistical reporting to name a few

There are many advanced features such as automated entries, weekly/period pre-close, advanced budget and forecast capabilities, multi-level comment capabilities for all transactions, on-line reconciliation and user-defined history retention

The General Ledger module serves as the heart of the FMS Financial Suite of Applications providing complete integration with the other modules and a single source of data for all reporting functions

The Structured Report Writer and the Spread-sheet Interface permit store specific balance sheet accounts in a common balance sheet environment

Accounts Receivable module

Accounts Receivable module tracks and organizes the myriad pieces of information related to the customers, providing the basis for superior customer service

Accounts Receivable system provides a complete billing, statement, cash receipts, and receivables management solution

The system provides the tools needed to reduce manual effort and improve control over the process

The Accounts Receivable system saves time by automating the computation of volume and prompt payment discounts, freight, sales and excise taxes, commissions, etc. And the cash application function makes recording payments a breeze

Accounts Receivable

SALES AND CASH RECEIPTS JOURNAL FOR: FEBRUARY 2000

 

Accounts Receivable  

Date DescriptionInvoiceNumber

Cash Debit Debit Credit

Sales Credit

Sales Tax Payable Credit

2 S. Shaw - sale on account 10034   500   476 24

2T. Dwight - received on account

  1,359   1,359    

5 Daily Cash Sales   716     682 34

6S. Shaw - received on account

  500   500    

Totals 2,575 500 1,859 1,158 58

Accounts payable Accounts Payable helps arrange

expenditures by recording transactions and obligations to vendors and creditors

The system automatically matches the invoice to the purchase order. On-line tolerance checking verifies quantities and amounts. And the system automatically allocates expenses to the appropriate general ledger accounts

The Accounts Payable package is a complete solution, which handles virtually any kind of document, including invoices, recurring invoices, debit memos, credit memos, installment payments, etc

The system allows you to achieve the efficiencies of a paperless office. The imaging product allows to conveniently store supporting payables documents electronically

A separate module for integrated workflow solution, can quickly and easily automate the process of approving invoices for payment

Bank Reconciliation Bank Reconciliation simplifies the

monthly reconciliation process, detects recorded transactions between books and bank, locates the errors or differences, records the corrections, and reconciles your books to the bank statement

The cash balance in your books will never agree with the balance shown on the bank statement because of the delay in checks and deposits clearing the bank, automatic bank charges and credits you have not recorded, and errors you may have made in your books

Bank Reconciliation

Alpha CompanyBank Reconciliation

March 31, 2000

Balance per bank statement 4,672.98

Deposits in Transit

Date Amount

3/30 500.25  

3/31 1,890.33 2,390.58

Subtotal 7,063.56

Outstanding Cheques

Check Number Amount

1656 22.50  

1693 150.00  

1696 32.00  

1697 1,902.00  

1698 1,105.80 3,112.84

Balance per books 3,950.72

IS for working capital management

With the aid of a computer and suitable software, a mathematical model can be used to prepare cash flow projections and project short-term banking requirements for a business

The use of a computer-based model reduces the tedium of carrying out numerous repetitive calculations and simplifies the alteration of assumptions and the presentation of results

A computer model for short-term bank planning uses assumptions on sales, costs, credit, funding etc. to produce monthly cash flow projections for up to a year ahead

The Cash Flow Budget Worksheet is used to project your business's cash inflows and outflows over a six-month period of time

It can predict the ability of your business to create the cash necessary for expansion or to support you. It can project your business's cash inflows and outflows and predict your business's cash flow gaps — periods when cash outflows exceed cash inflows

IS for Financial Analysis And Planning

The Consolidation process automatically collects data from general ledgers and other sources—including spreadsheets—and unites it into a single source to provide an accurate, consistent view of enterprise finances

Because plans, budgets, forecasts, and actuals often reside in separate systems, extracting and aggregating data can be time-consuming and error-prone

Consolidation provides perpetual access and mapping to data from disparate sources across the enterprise

Organizations operating multiple legal entities or subsidiaries need to produce accurate consolidated statements, which requires eliminating inter-company transactions

Consolidation lets you perform one-off or repeatable eliminations, and automatically determine the amounts that need to be eliminated as inter-entity transactions are matched and reconciled

IS for Financial Intelligence Financial Intelligence combines a foundation

for integrated, enterprise-wide financial analysis with specific solutions that create financial transparency and enable:

- Formulation, execution and measurement of strategy

i. create metrics for monitoring and controlling the performance of all business processes

ii. performance indicators provide better visibility into corporate strategy and initiatives.

- Budgeting and planning i. automate and decentralize the planning process while

building proactive budgets based on integrated, accurate and predictive information

- Cost and profitability analysis i. understand the costs and profitability of products, suppliers,

channels, partners and customers ii. use this information to create more accurate forecasts,

budgets and simulations - Consolidation i. many organizations have disparate operational systems and

general ledgers ii. a financial intelligence solution can access, consolidate and

clean all data residing on disparate resources , helping close books faster and spend more time on valuable analysis

- Reporting i. get all the information you need from a Web-based application

that adheres to new reporting standards. - Risk management i. measure your credit, market or operational risk, depending

on your specific needs, to enhance and refine corporate strategy