Unit 03

What is MIS?
MIS is an organized integration of hardware and software technologies, data,
processes, and human elements. It is a software system that focuses on the management of
information technology to provide efficient and effective strategic decision making.

What is MIS? MIS is the acronym for Management Information Systems. MIS is a set
of procedures which, when executed, provides information to support decision making.

A Management Information System is

 An integrated user-machine system
 For providing information
 To support the operations, management, analysis, and decision-making functions
 In an organization
The system utilizes
 Computer hardware & software
 Manual procedures
 Models for analysis, planning, control, and decision making, and
 A database
MIS Definition
Management Information System (MIS) is an integrated man/machine system for
providing information to hold up the operations, management and decision making functions
in an organization.
A formal method of collecting timely information in a presentable form in order to
facilitate effective decision making and implementation, in order to carry out organisational
operations for the purpose of achieving the organisational goals.
A Management Information System is an organized portfolio of formal systems for
obtaining, processing, and delivering information in support of the business operations and
management of an organization.

Components of MIS

 People Resources: People are required for the operation of all information
system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing instruction.
 Hardware Resources: Include all physical devices and materials used in
information processing.
 Process: is a step undertaken to achieve a goal.
Objectives of MIS
What is MIS objective: MIS has five major objectives which include:
1. Data Capturing
2. Processing of Data
3. Storage
4. Retrieval
5. Dissemination

Data Capturing
MIS capture data from various internal and external sources of the organization. Data
capturing may be manual or through computer terminals.

Processing of Data
The captured data is processed to convert into the required information. Processing of
data is done by such activities as calculating, sorting, classifying, and summarizing.

Storage of Information
MIS stores the processed or unprocessed data for future use. If any information is not
immediately required, it is saved as an organization record, for later use.

Retrieval of Information
MIS retrieves information from its stores as and when required by various users.
Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the
organization. It is periodic or online through a computer terminal.

Characteristics of MIS
What is MIS Characteristic? MIS plays a very important role in every aspect of an
organization. These characteristics are generic in nature.
Following are the characteristics of MIS:
1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database

System Approach
The information system follows a System’s approach. The system’s approach implies
a holistic approach to the study of system and its performance in the light for the objective for
which it has been constituted.

Management Oriented
The top-down approach must be followed while designing the MIS. The top-down
approach suggests that the system development starts from the determination of management
needs and overall business objectives.

The MIS development plan should be derived from the overall business plan.
Management oriented characteristic of MIS also implies that the management actively directs
the system development efforts.
Need-Based
MIS design and development should be as per the information needs of managers at
different levels, strategic planning level, management control level and operational control
level. In other words, MIS should cater to the specific needs of managers in an organization’s
hierarchy.

Exception Based
MIS should be developed on the exception-based reporting principle, which means an
abnormal situation, i.e. the maximum; minimum or expected values vary beyond tolerance
limits. In such situations, there should BE exception reporting to the decision-maker at the
required level.

Future Oriented
Besides exception-based reporting, MIS should also look at the future. In other words,
MIS should not merely provide past or historical information; rather it should provide
information, on the basis of projections based on which actions may be initiated.

Integrated
Integration is a necessary characteristic of a management information system.
Integration is significant because of its ability to produce more meaningful information.

For example, in order to develop an effective production scheduling system, it is necessary to

balance such factors as setup costs, Workforce, Overtime rates, Production capacity,
Inventory level, Capital requirements and Customer services.

Long Term Planning

MIS is developed over relatively long periods. Such a system does not develop
overnight. A heavy element of planning is involved. The MIS designer must have the future
objectives and needs of the company in mind.

Sub-System Concept
The process of MIS development is quite complex and one is likely to lose insight
frequently. Thus, the system, though viewed as a single entity, must be broken down into
digestible sub-systems which are more meaningful at the planning stage.

Central Database
A central database is a mortar that holds the functional systems together. Each system
requires access to the master file of data covering inventory, personnel, vendors, customers,
etc. It seems logical to gather data once, validate it properly and place it on a central storage
medium, which can be accessed by any other subsystem.

Advantage of MIS
A good management information system can be used not only for the storage of
electronic data alone but must be able to support the analysis required by management. There
are many advantages of MIS which are utilised by manager to achieve organization goal.
he following are some of the benefits of a good MIS.
 Increased customer satisfaction
 Improved quantity and quality of information
 Improved quality and quantity management decisions
 Improved responsiveness number of the competitor’s condition
 Improved operational efficiency and flexibility
 Improved quality of internal and external communications
 Improved quality of planning
 Improved quality control and supervision

Role of MIS
A management information system (MIS) plays an important role in business
organizations.
What is MIS role: There are many roles of MIS and some of the important MIS
role are discussed below:
1. Decision making
2. Coordination among the department
3. Finding out Problems
4. Comparison of Business Performance
5. Strategies for an Organization

Decision making
Management Information System (MIS) plays a significant role in the
decision-making process of any organization. In any organization, a decision is
made on the basis of relevant information which can be retrieved from the MIS.
Coordination among the department
Management Information System satisfy multiple need of an organization
across the different functional department.

Finding out Problems

As we know that MIS provides relevant information about every aspect of
activities. Hence, if any mistake is made by the management then MIS,
information will help in finding out the solution to that problem.

Comparison of Business Performance

MIS store all past data and information in its Database. That why the
management information system is very useful to compare business organization
performance.

Strategies for an Organization

Today each business is running in a competitive market. An MIS supports
the organization to evolve appropriate strategies for the business to assent in a
competitive environment.

Marketing Information System

A marketing information system (MIS) is a set of procedures and methods
designed to generate, analyse, disseminate, and store anticipated marketing
decision information on a regular, continuous basis. An information system can be
used operationally, managerially, and strategically for several aspects of marketing.

A marketing information system can be used operationally, managerially,

and strategically for several aspects of marketing management.
We all know that no marketing activity can be carried out in isolation, know when we say it
doesn’t work in isolation that means there are various forces could be external or internal,
controllable or uncontrollable which are working on it. Thus to know which forces are acting
on it and its impact the marketer needs to gathering the data through its own resources which
in terms of marketing we can say he is trying to gather the market information or form
a marketing information system.

This collection of information is a continuous process that gathers data from a variety of
sources synthesizes it and sends it to those responsible for meeting the market places needs.
The effectiveness of marketing decision is proved if it has a strong information system
offering the firm a Competitive advantage. Marketing Information should not be approached
in an infrequent manner. If research is done this way, a firm could face these risks:
 1. Opportunities may be missed.
2. There may be a lack of awareness of environmental changes and competitors’ actions.
3. Data collection may be difficult to analyze over several time periods.
4. Marketing plans and decisions may not be properly reviewed.
5. Data collection may be disjointed.
6. Previous studies may not be stored in an easy to use format.
7. Time lags may result if a new study is required.
8. Actions may be reactionary rather than anticipatory.

The total information needs of the marketing department can be specified and satisfied via
need of a internal management of marketing intelligence network, which contains three
components and advantages.

Continuous monitoring is the procedure by which the changing environment is

regularly viewed.

Marketing research is used to obtain information on particular marketing issues.

Data warehousing involves the retention of all types of relevant company records, as
well as the information collected through continuous monitoring and marketing research that
is kept by the organization.

A Marketing Information System offers many advantages:

With an
increasingly competitive
and expanding market, the
amount of information
needed daily by an
organization is profound.
Thus they have to
establish a Marketing
Information system. There
are several advantages
of Marketing information
systems

1) Organized
Data collection – Lots of
data can be collected from
the market. But the main
word here is ―Organized‖.
Organizing data is very important else the data is meaningless. Thus MIS
helps you to organize your database thereby improving productivity.

2) A broad perspective – With a proper MIS in place, the complete organization can be
tracked which can be used to analyse independent processes. This helps in establishing a
broader perspective which helps us know which steps can be taken to facilitate improvement.
3) Storage of Important Data – Several times in pharmaceuticals, when one drug is being
produced, they may need data of another drug which was produced years back. Similarly, in
Media, photographs are stored in archives. This storage of important data plays a crucial role
in execution and thus proves again that MIS is not important only for information but also for
execution.

4) Avoidance of Crisis – The best way to analyse a stock (share market) is to see its
past performance. Top websites like money control thrive on MIS. Similarly, MIS helps you
keep tracks of margins and profits. With an amazing information system established, you can
know where your organization is moving and probably avert a crisis long before it has taken
place. Ignoring hints received from MIS reports is foolhardy.

5) Co-ordination – Consumer durables and FMCG companies have huge number of

processes which needs to be co-ordinated. These companies depend completely on MIS for
the proper running of the organization. There are dedicated people for marketing information
systems in such organizations. This is mainly because of the speed required to access
information and implement it.

7) Analysis and Planning – MIS is critical for planning. You cannot do planning without
information. For planning, the first thing which is needed is the organizations capabilities,
then the business environment and finally competitor analysis. In a proper MIS, all these are
present by default and are continuously updated. Thus, MIS is very important for planning
and analysis.

8) Control – Just like MIS can help in a crisis; in normal times it provides control as you
have information of the various processes going on and what is happening across the
company. Thus, it provides you with a sense of control.

Disadvantages – Maintenance, complexity and setting up a MIS are one of the major
hindrances to Marketing information systems. Furthermore, wrong information being fed in
MIS can become cumbersome and appropriate filters need to be established.

The disadvantages of a Marketing information system are high initial time and labour costs
and the complexity of setting up an information system. Marketers often complain that they
lack enough marketing information or the right kind, or have too much of the wrong kind.

The information needed by marketing managers comes from three main

sources:
1) Internal company information – E.g. sales, orders, customer profiles, stocks, customer
service reports etc

2) Marketing intelligence – This can be information gathered from many sources, including
suppliers, customers, and distributors. Marketing intelligence is a catchall term to include all
the everyday information about developments in the market that helps a business prepare and
adjust its marketing plans. It is possible to buy intelligence information from outside
 suppliers (e.g. IDC, ORG, MARG) who set up data gathering systems to support commercial
intelligence products that can be profitably sold to all players in a market.

(3) Market research – Management cannot always wait for information to arrive in bits and
pieces from internal sources. Also, sources of market intelligence cannot always be relied
upon to provide relevant or up-to-date information (particularly for smaller or niche market
segments). In such circumstances, businesses often need to undertake specific studies to
support their marketing strategy – this is market research.

Information System in Manufacturing

An information system that is specially designed to automate manufacturing activities in an
organization is known as manufacturing MIS.

To track the movement of materials and goods in the enterprise, a standard manufacturing
MIS is used. Raw materials or parts are converted into finished goods in a manufacturing
process and a manufacturing MIS is used at every point.

In a manufacturing MIS, some of the typical subsystems include design and engineering,
planning of production, inventory management, process control, and quality control.

Elements of a Manufacturing Information System

The structure of a manufacturing information system has described below. The key
components of the Manufacturing information system are as follows –

1. Business Transaction
2. Transaction Processing System
3. Operational database
4. Internal database
5. External Database
6. Database of validation Transactions
7. Manufacturing MIS
8. Manufacturing Application Database
9. Manufacturing Decision Support System
10. Manufacturing Executive System

The description of these elements is as follows -

1. Business Transaction - The transaction which occurs at a third party and records in MIS as a
historic record so that it can be used for analysis whenever required.
2. Transaction Processing System - An Enterprise Information System (EIS) is a type of
information system called "Transactions Processing System (TPS)" that is capable of storing,
recording, updating, and retrieving the enterprise's transaction data. While transaction
processing systems need to be able to have highly consistent response times, this is a very
important feature when it comes to trading systems.
3. Operational database - a database is an operational database that is designed to operate or
run the day-to-day operations of your business. It also has a strong ability to act as an analytic
 engine, either through dashboards and web-based solutions or supporting the ability to
incorporate analytics into organizational processes.
4. External database - a database in which internal documents of organizations store. An
internal database is a collection of one of your company's records, gathered from employees
using an internet-connected device. Digital files consist of decentralized, encrypted data,
which are not known to anyone and include details such as, which purchases made up items.
5. Internal Database - a database in which internal records of organizations store. Internal
database - a database in which internal records of organizations store. An internal database is
a compilation of company data collected by employees using Internet-connected computers.
Decentralized digital databases provide data about the information on our business and
customer activity in an electronic type of data.
6. Database of validation transactions - the validations of transaction refers to the accuracy
and completeness of the information.
7. Marketing MIS - the marketing information system includes the systematic selection,
analysis, interpretation, preservation, and distribution of all of the consumer information that
is available to the company.
8. Marketing DSS - marketing decision support systems is an information system that assists
with decision making in the development of a marketing strategy.
9. Marketing ES - marketing executive systems are intended to be used by the senior managers
in decisions making.
10. Manufacturing Outputs Manufacturing MIS output can be collected in the form of hard
copies as well as in computerized form.

Overall Manufacturing MIS supports manufacturing business activities. These are as follows
-

 Design and engineering

 Scheduling manufacturing departments activities
 Quality control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 MRP reports
 Quality control and testing

Advantages of a Manufacturing Information System

With a production information system model in place, plant operators have an entirely
different view of their facilities. The system can operate across multiple areas, including
product definitions across the product life cycle, resource scheduling, order execution, and
production analysis. The system creates a real-time record, capturing relevant data throughout
the manufacturing process. This enables optimization of the process, increasing efficiency
and potentially reducing errors and downtime. In today’s competitive landscape, this is a key
advantage of a smart manufacturing system. In addition, the documentation and record
keeping that the system provides is especially useful in heavily regulated sectors, such as
pharmaceuticals or food and beverage.
 Human Resource System
HR systems can be many and varied; in its basic definition a HR system is tool that
allows HR information to be stored, processed and reported upon.

A core HRIS function was electronic recording and management of employee records.
Thus, HRIS is the acronym many HR pros use to describe when human resources records,
processes and reporting become electronic through the use of software.

As technology evolved and the system expanded beyond keeping employee records, HRIS
became known as HRMS. Today, the terms are still used synonymously to describe the
software systems that record employee information and automate HR processes at a
company.

History of HRMS

In the 1970s, as companies looked to automate management of their people, payroll

became the first HRMS function to be computerized. But it took mainframe technology to
calculate a worker’s earnings, withhold deductions, print a paper check and track payroll
liabilities. It wouldn’t be until the early 2000s, with widespread adoption of direct deposit and
employee self-service, that the payroll process became wholly electronic.

PeopleSoft was among the first to pioneer a more complete HRMS system in the late
1980s. In addition to payroll, it offered employee record management, recruiting, time and
attendance, benefits administration, compensation, compliance reporting and other features to
help HR professionals automate more of the employee lifecycle and make better workforce
decisions.

The rise of the internet in the late 1990s brought the benefits of automation to even
more HR processes. For example, paper-based help-wanted ads were replaced by electronic
job boards, giving recruiters and candidates new ways to connect. By the 2010s, cloud
technology was mainstream—now, HR teams at all-size companies could afford a suite of
applications without investing in expensive computer hardware or IT staff to operate and
maintain the system.

What’s next?
 2020 and beyond promises even more HRMS innovation. Machine learning and
predictive analytics are built in to many current systems, and the advent of true artificial
intelligence will help companies anticipate future skills requirements, detect workforce trends
and match best-fit candidates to open positions faster.

Why HRMS is important

While HR expenditures, especially office space, are in flux now given shifts to a
work-from-home model, companies must still accurately calculate labor costs to keep
revenue per employee KPIs current. Joseph Had Zima, a senior lecturer at the MIT Sloane
School of Management, estimates that base pay plus employment taxes and benefits typically
add up to 1.25 to 1.4 times annual salary. Thus, a $50,000 per year worker might actually cost
$62,500 to $70,000, not including real estate and equipment, like PCs and phones.

Moreover, companies with overstretched human resources departments should be rolling out
self-service capabilities. There’s no reason for an HR specialist to spend time assisting a
manager with routine updates to hours worked, for example, or helping employees access
forms like W-2s.

Fortunately, accurate financial data reporting and secure self-service are just two benefits of a
modern human resources management system.

Functions of an HRMS

When considering which HRMS is right for your company, it’s helpful to think in
terms of functional components. Generally, modern systems cover seven areas, with varying
levels of focus.

Candidate management: Relates to employment offers to candidates and how you promote
your brand to both the outside world and current employees who may wish to apply for
internal jobs or make referrals. Critical for companies for which the candidate experience is a
primary concern—from applying to resume management to interview scheduling to making
offers, all the way through onboarding.

Employee engagement: People who are more engaged tend to produce higher-quality work
and more fully adopt the company’s values and execute its vision, so how an employee
connects with leadership and colleagues is important. Often, the HRMS is the route to
complete a training course, acquire a new skill, develop a career path, gain recognition or
become a mentor.

Employee management: There’s a reason this function is often referred to as ―core HR.‖
Delivers a central portal to support analysis, reporting and compliance processes. It’s where
you structure your workforce into organizational units, like departments or locations; define
reporting relationships between managers and employees; and align payroll to accounting
cost centers. It’s here where personal information is recorded and maintained, and this
function is the cornerstone of efforts to offer employee self-service, maximize reporting and
improve HR service delivery.

Optimization: Gleaning information from the HRMS to develop a vision for the future
workforce is a primary selling point. It’s also the least-utilized function of a typical HRMS.
The real value of this function usually comes to the fore with a merger or acquisition, sharp
economic swings in either direction or when executives exit. Companies that take a proactive
approach to optimizing the workforce are more resilient to change, have higher retention of
top talent and better employee engagement.

Payroll: This is also a primary function of the HRMS—calculating earnings from gross to
net or net to gross and withholding individual deductions and issuing payments can be made
just as routine as paying the rent. Payroll functions comprise benefit elections and both
employee and employer costs. Full-service payroll solutions also automate tax filing and
deposits. Self-service functions allow employees to make changes to elective deductions,
direct deposit accounts and tax withholdings and retrieve copies of earning statements
without HR assistance.

Workforce management: This is where HR teams track employee development, manager

evaluations and disciplinary actions; record time and attendance; and ensure the company is
providing a healthy and safe work environment. This is also where compensation planning,
performance management, learning and incident recording functions reside. HR can develop
timesheet structures, overtime rules, time-off policies and approval chains in way that
maximizes automation, control and efficiency. The employee performance review process,
complete with goal management, is set up in this function as well.

Contingent workforce management: Related to primary workforce management and

critical for companies where not every employee is full-time. Contractors, consultants, interns
and temporary employees provide specialized skills, support local community initiatives or
university programs and handle spikes in demand for labor. The HRMS does not wholly
manage these relationships because these employees are not always on the payroll and are
usually not eligible for benefits; but the work they do contributes to company success, and
it’s important to track how many contingent employees are on board at any given time and
the total costs.

Once you have a clear understanding of which functions are most important, it’s time to dig
into specific features.

HRMS Features

As with broad functionality, HRMS feature sets can vary widely from provider to provider,
and cobbling together multiple products may limit the overall system. HR, IT, finance and
other stakeholders should carefully assess which of these HRMS features are must-haves for
the company.

Benefits administration: Helps HR professionals develop plans, configure eligibility rules

and make payments or deposits to benefits providers. Also offers self-service open
enrollment and integrates benefit costs with accounting.

Centralized employee records: Provides a single repository where all employee records are
stored, updated and maintained. Allows for better reporting and lowers the costs of
compliance and preparing for audits.

Learning management: These features are designed to help employees acquire or develop
skills through course administration, course and curriculum development, testing and
certifications. Also enables companies to roll out and track required compliance training.

Reporting and analytics: Delivers the ability to run operational reports to track HR
information, complete compliance reporting, develop key performance indicators (KPIs) to
measure HR process performance and embed HR metrics into financial dashboards for
company-wide analysis, planning and decision-making. Also look for the ability to create ad-
hoc reports.

Rewards: Calculate salaries, hourly wages, variable payments for bonuses, overtime, sales
commissions, shift differentials and merit increase while withholding regulatory and elective
deductions, resulting in accurate net payments to employees at regular intervals. Benefits,
like matching retirement fund contributions or mobile phone reimbursements, are sometimes
included in this feature set.
Talent acquisition: Recruiters are able to build career pages on the company website and
intranet, create job requisitions and descriptions, manage positions, integrate open positions
with job boards, manage resumes, track applicants through the recruiting process, extend job
offers, perform background checks, administer pre-employment screenings and create job
application forms, before handing new hires off to a generalist or the hiring manager to begin
onboarding.

Talent management: Enables HR professionals to develop and evaluate employees via

performance reviews, goal management, and competency and skills test administration.

Time and attendance: Deliver the ability to process time-off requests and manage time-off
balances, employee scheduling and absence management and enables timecards to be
integrated with payroll and projects.

User interface: Because an HRMS can be opened to the entire workforce, a user-friendly
interface is critical. Today’s systems feature employee and manager self-service, mobile
apps, localization, personalized dashboards, workflow automation, role-based access controls
and notifications to keep employees engaged and inquiries into the HR or IT departments to a
minimum.

Workforce planning: Provides the ability to plan and budget for workforce costs and
measure against actual outlays for both current and future scenarios. May also be used to
identify skill gaps, create succession plans and prioritize recruitment efforts.

Additional features may be found in specialized HRMSs, and not every company
needs a fully loaded system. If you decide to use multiple providers to form the HRMS,
ensure all the products include an open architecture to allow for bi-directional data exchange,
needed integrations and file uploads across the system. Using a single provider for an HRMS
reduces the need for one-off integrations, which can be expensive, complex and difficult to
secure and update.

So far, we’ve talked features and functionality. But those who need to persuade leadership
that an HRMS is a smart buy need to prepare for a higher-level business ROI discussion.

Benefits of an HRMS

The fundamental payoff of an HRMS is having all your workforce information in a

central repository. That lowers compliance risks, provides a rich data set to inform decision-
making, helps keep employees engaged and makes HR professionals more productive and
their processes more efficient.
Let’s dig into the top five business benefits of an HRMS.

Better, deeper insights: Without an HRMS, employees and managers create data in various
places, from spreadsheets to expense apps to paper records, making it impossible to gain a
comprehensive view of workforce costs. With an HRMS, all data is in a single bucket, with
higher integrity. That enables better, faster decision-making. It’s also pivotal to a workforce
planning and analytics initiative, where a company assesses its current workforce and
compares that reality with future needs as determined by business objectives. Some key
benefits here are the ability to identify and address skills gaps before they hurt productivity,
codify succession plans and keep a handle on labour costs by analysing how overtime or
double time payments affect financial performance.

With an HRMS, HR teams can also spot early indicators of problems. For example, if high-
performing employees in one department leave at a higher-than-normal rate, that might signal
a toxic manager. An HRMS can connect dots and help identify at-risk employees.

Improved employee engagement: An HRMS is invaluable in developing and retaining

talent—something HR leaders are passionate about. Within an HRMS, HR can create training
curriculums, personalize learning plans and career paths and set up mentorships.

In fact, Harvard Business Review suggests that skills development is of prime importance to
younger employees and specifically suggests a mentoring program focused on sharing
expertise. Gen Z and Millennial workers also expect to be asked, on a regular basis, about
their experiences. An HRMS can both match senior people in one department or geography
with those who can benefit from a mentoring relationship, conducted virtually, and deliver
and tabulate employee satisfaction and engagement surveys.

All these development activities are then tracked in the HRMS to recognize development
milestones. That helps keep employees on track and loyal to the company.

Process efficiency & a culture of self-service: Responding to inquiries or administering

large programs, like benefits enrolment or performance reviews, can take up to 40% of an HR
professional’s time each week—and in many cases, individuals would be more than happy to
do that work themselves. Within an HRMS, HR can set up a knowledge repository so people
can find answers to frequently asked questions, and employees and managers can securely
access their own records, enabling HR to focus on more value-added services.

In addition, HR processes that require multiple levels of approval, like processing timecards,
job requisitions and time-off requests, can be major time sucks. An HRMS provides approval
workflows for automating these and other processes so approvers are notified when it’s their
turn to approve (or reject). That can reduce processing time by more than 50% and improve
accuracy.

Lower back-end overhead: From an IT and capital-spending POV, the centralized nature of
an HRMS—especially one sold in a fully cloud-based, software-as-a-service model—requires
less hardware, data centre space and IT and development staff resources for maintenance,
support and training. This rationalizes IT expenditures for HR technology, requires fewer
help desk staff and generally improves the satisfaction of full-time users of an HRMS, the HR
team itself.

Faster recruiting: Attracting top talent and building your company’s reputation as ―the place
everyone wants to work‖ is another area HR pros are passionate about. The candidate
experience, however, has been largely ignored because it’s difficult to gain insight into the
job search process when postings happen outside of the company. An HRMS solves this
problem by connecting recruiters and candidates electronically through job boards and
mobile applications, making the process more enjoyable and efficient.

HR can even access candidate-pooling technology that accelerates passive recruiting when
new positions open up.

Components of HRMS Success

Bottom line, here are our five keys to making the most of an HRMS purchase:

1. If your IT ethos is forward-looking, explore systems that can use machine learning
and predictive analytics now and that have a roadmap to AI. The sooner you start
feeding the system data, the better it can advise on future workforce needs and match
candidates to positions.
2. Different HRMSs excel in certain areas. Do you have a lot of turnover? Then look
carefully at candidate management capabilities. Got a multi-state or -national
workforce? Make sure the system can handle complex payroll scenarios. Do you
bring on a lot of temps but wonder if it wouldn’t be smarter to hire? A contingent
workforce management function can help with analysis.
3. You won’t sell an HRMS to budget holders by talking about cool features. What gets
a project funded are insights into how the system will help retain talent, free up HR
staff for value-added projects and minimize audit findings.
4. Bring your security team or consultant into the selection process early, especially if
you’re in a highly regulated industry like finance or health care.
5. If you do decide to go the best-of-breed route, look for open APIs that make
integration, if not simple, at least possible without a big, expensive development
project.
 Financial and Accounting Management Information System
An organization's financial structure is small or large and has a great impact on its stable
development and long life. The need to use computer-based information systems with centralized,
decentralized or distributed networks linking data flows from and to the different
departments/branches is greatly felt due to the growing difficulty in the management of financial
activities. For decision-makers to make effective and scientific decisions, an efficient mechanism for
processing voluminous data for rapid analysis and production is therefore required today. In any
organization, data management offers the information required to serve as an efficient and effective
decision-making tool. It is worth remembering that most organizations have deployed computerized
information systems in organizations. An automated information system’s objective is to frame
strategic planning and changing business strategies and their execution by top executives in the
company.
Financial and Accounting MIS
As its name implies, financial and accounting MIS is an automated system that
process all the financial and accounting-related operations using a computerized system in an
organization. A typical Financial and Accounting MIS is used to control the movement of
materials and items in the business.

In a financial and accounting process, raw materials or parts are turned into finished
products and a Financial and Accounting MIS is used at every stage. For managers to make
everyday decisions about activities within the organization, a financial MIS offers financial
information. These functions are given by the majority of systems:

 Drill down reports

 Integrate financial reports from different sources
 Exception reports
 Provide quick access in a summarized form to financial details
 Enable financial analysis using tools that are easy to use
 Comparison between historical and current financial practices
 Key-indicator reports
 Scheduled reports

In a Financial and Accounting MIS, some of the typical subsystems include design and
engineering, financial and accounting planning, inventory management, accounting details,
process control, and quality measures.
 Financial and Accounting Information System always facilitates business executives to get
the automation and incorporation of the computerized processes of public financial management. Its
measurable functions are budget formulation, implementation, accounting and reporting, system
monitoring, cash/debt management, treasury operations, etc. financial and accounting information
system strategies are capable of significantly enhancing the quality and equity of government
operations and provide tremendous potential for greater enhancement, openness, and accountability.
Whenever financial and accounting information system and other financial management information
systems forex - e-procurement, payroll, and debt management are connected to a central data
warehouse for tracking and reporting all regular financial transactions, it is possible to refer to
integrated financial and accounting information system as providing reliable centralized platforms or
financial and accounting information system. The World Bank is the leading provider of financial and
accounting information system growth funding and technical assistance.

Elements of a Financial and Accounting Information System

The structure of a Financial and Accounting information system has described below. The
key components of the Financial and Accounting information system are as follows -

1. Business Transaction
2. Transaction Processing System
3. Operational database
4. Internal database
5. External Database
6. Database of validation Transactions
7. Financial and Accounting MIS
8. Financial and Accounting Application Database
9. Financial and Accounting
10. Decision Support System
11. Financial and Accounting Executive System

The description of these elements is as follows -

1. Business Transaction - the transaction which occurs at a third party and records in MIS as a
historic record so that it can be used for analysis whenever required.
2. Transaction Processing System - A Financial Information System (FIS) is a type of
information system called ―Financial Processing System (FPS)" that is capable of storing,
recording, updating, and retrieving the company’s financial transaction data. Although
 transaction processing systems must have highly consistent response times, when it comes to
trading systems, this is a critical aspect.
3. Operational database - a financial and accounting operational database is a database that is
designed to operate or run the day-to-day financial and accounting operations of the business
firm. It also has a good potential to serve as an analytic engine, either by dashboards and
web-based solutions or by facilitating the integration of analytics into organizational
processes.
4. External database - a financial and accounting External database is a database in which
internal documents of organizations store. An internal database is a list of one of the
company's documents collected from employees by the use of an internet-connected
computer. Digital files are made up of decentralized, encrypted data that is not accessible to
the public and contains information such as which transactions were made up.
5. Internal Database - a database in which internal records of organizations store. Internal
database - a database in which internal records of organizations store. An internal database is
a compilation of company financial and accounting data collected by employees using
Internet-connected computers.
6. Database of validation transactions - the validations of financial and accounting transaction
refers to the accuracy and completeness of the financial and accounting information.
7. Financial and Accounting MIS - the financial information system includes the systematic
selection, analysis, interpretation, preservation, and distribution of all of the consumer
information that is available to the company.
8. Financial and Accounting DSS - Financial decision support systems is an information
system that assists with decision making in the development of a financial strategy.
9. Financial and Accounting ES - Financial executive systems are intended to be used by the
senior managers in decisions making.
10. Financial and Accounting Outputs - Financial and Accounting MIS output can be collected
in the form of hard copies as well as in computerized form to get fruitful insights.

Overall Financial and Accounting MIS supports Financial and Accounting business activities.
These are as follows -

 Design and engineering

 Scheduling Financial and Accounting departments activities
 Quality control
 Financial and Accounting resource planning
 Just-in-time inventory and Financial and Accounting
 Process control
 Computer-integrated Financial and Accounting (CIFA)
 MRP reports
 Quality control and testing