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

Personnel, finance and stock control systems

3.3.4

What you will learn…

The aim of this presentation is to help you describe the characteristics of the following systems:› Personnel› Finance› Stock control

You will be able to identify features of these systems and you will be able to describe what they do and provide an example of it’s use..

Personnel

We already know that people are a vital part of any business.

Like any resource, people need to be properly managed and a computer system can help us do this.

Personnel

The system might hold information on:› Contact details

For formal contact, emergencies etc

› Attendance Used for working out pay and holidays

› Salary details Basic pay, bonuses, over-time

› Qualifications (both prior to joining the job and any new qualifications gained during their

appointment)

› Training record For all the additional training (health and safety etc)

› Performance management For setting specific targets for that person

Personnel

Because all organisations need to abide by the data protection laws, their information needs to be regularly checked to ensure it is accurate and only kept if it is needed.

Some personnel information systems will help the system administrator ensure that the organisation complies with the laws.

It can automatically remind the users to update their details after a certain period of time.

It can also remind training organisers to provide training for those people who have not had their ‘refresher’ training sessions.

Training

AndyKevinDebbiBrian

Update records

Ray – He has moved

house recently

Pay

Hours worked: 37Pay rate: £20.56Total: £760.72Tax: er....

To do…

Get a computer

system to do

all this stuff

for me!

Practice Exam Questions

Describe one consequence of share prices being inaccurate on trading days.

A person uses an ATM and checks their balance. They are surprised to find more money than they expected…especially considering they spent a lot of money the previous day. They take out more money but then later find out that they have gone over drawn. Why might this be?

Identify three methods to ensure data is transferred accurately and speedily.

MIS and PIS

All systems need to have some kind of output.

Sometimes the Personnel Information System can produce it’s own outputs but sometimes it is left to the Management Information System.

Either way, the outputs are the same.

Possible Outputs (reports)

Booked holidays› A holiday request is sometimes turned down. This depends on

whether it would cause staffing problems because others are already going on holiday.

› Reports are generated to check on whether the holiday request would cause such problems.

Record of absence› It is possible to see if a person is absent on more days of the

week than others.

› Schools use this sort of system with pupils to pick up on possible truanting patterns – perhaps a student is always sick on a Monday because they don’t like PE?

Possible Outputs (reports)

Performance management targets › Some companies will set targets for their

workforce.

› They can use these systems to check on each employee to see if they have met their target.

› Some companies, such as banks, offer bonuses for those employees who meet and exceed their targets.

Possible Outputs (reports)

Total costs of employment› Companies need to know how much they are spending on their

workforce.

› Systems like this help companies decide if their costs are greater than their income.

› It also helps them decide on redundancies.

Skill sets of employees› Companies are always creating new products and services.

› When they need a team to work on a new ‘project’ they will assemble a team based on their skill set to ensure they get the most out of that team.

Practice Questions

Describe two characteristics of a personnel system.

Why is it important that the personnel system be kept up to date?

Finance

This type of system keeps records of all income and expenditures.

It is important that this system is kept up to date so that informed decisions can be made by the organisations.

Outputs may be generated by the finance system itself, or the MIS might retrieve the information from the system.

Finance - Features

Placing orders for stock from suppliers

Paying invoices from suppliers

Monitoring the status of orders› (pre-orders, ordered, received, awaiting delivery, late

delivery etc)

Setting budgets within the organisation› Comparing the budget with actual expenditure

Stores the price each product and service the organisation offers

Finance - Features

Records orders placed for products/services

Producing invoices for products/services

Monitors the payment of invoices

Produces information about cash flow on a yearly to daily basis (graphical)

Produces simulations in accordance of a change e.g. hiring another employee.

Forecasting cash flows based on historical information.

Finance - Features

Can provide analysis on efficiency in terms of cash flow› Helps managers make informed decisions about

whether they can find more cost-efficient methods of working.

Produce financial information about how successful each product or service has been.

Can provide information about the total cost of running each department.

Finance - Overview

As you can see, the finance system can provide a lot of useful information to an organisation.

If data is shared through a MIS then it is likely that information about the personnel will also be fed into this system.

You can then start to extract information about the cost-effectiveness of each personnel!

Practice Questions

Describe two characteristics of a finance system.

Why might it be useful to run the personnel system and finance system through a management information system (MIS)?

Stock control

A stock control system is primarily used to ensure that there is enough stock to allow:

› Production of products and services to continue

› Products and services can be sold

Stock control - Features

Maintains minimum stock levels› A minimum level is specified which is enough for

producing new products/services and for sales.

Re-orders a specified amount of stock when the minimum level is reached

Up-to-date current stock levels

Planned deliveries of replacement stock

Stock control - Features

The cost of purchasing each product

The RRP for the shops to sell the product

Dates the stock were ordered so that there is good stock rotation (oldest first)

Suppliers of each product

Location of stock so that it can be found in the warehouse

Stock control

EPOS (electronic point of sale) has allowed for greater efficiency in stock control.

Whenever a item goes through a till, for example, the stock level is reduced by 1 in the database.

Whenever the stock level falls to the minimum level the stock control system will place an order with the supplier for more stock.

Stock control and MIS

Some stock control systems will link in with the MIS.

If the financial system is linked into the MIS.

This will help reduce data redundancies (repeated data) and possible data inconsistencies (conflicting information).

Practice Questions

Describe three characteristics of a stock control system.

Describe how a stock control system maintains stock levels automatically.

Identify two characteristics that a stock control system and financial information system may have in common.

Try the activity on page 178 of the text book.