Human Resources
Functions of Human Resources
Recruit, train, and evaluate employees
HR uses sales forecasts developed by the individual departments to plan personnel needs
Systems integrated using ERP software provide the data sharing necessary between functional areas
Functional Area Information Systems
Potential inputs and outputs for each functional area described next
Note the kinds of data needed by each area and how people use the data
Information systems maintain relationships between all functional areas and processes
Marketing and Sales
Needs information from all other functional areas
Customers communicate orders to M/S in person or by telephone, e-mail, fax, the Web, etc.
M/S has a role in determining product prices
Pricing might be determined based on a product’s unit cost
Requires information from Accounting and Finance, and Supply Chain Management data
Marketing and Sales (cont’d.)
M/S needs to interact with Human Resources to exchange information on hiring needs, requirements, etc.
Inputs for M/S
Customer data
Order data
Sales trend data
Per-unit cost
Marketing and Sales (cont’d.)
Outputs for M/S
Sales strategies
Product pricing
Employment needs
Production Systems
Objectives
Create production plan
Schedule equipment, human resources
Design products
Material Resource Planning
Processes:
Identify stock needed
Calculate time for stock
Determine safety stock levels
Produce accurate purchase orders
Accounting and Finance
Record
transactions
Summarize data
Accounting and Finance
Inputs
Payments from customers
Accounts data
Sales data
Production and inventory data
Payroll and expense data
Outputs
Payments to suppliers
Financial reports
Customer credit data
Accounting and Finance
1. A/F personnel record the company’s transactions in the books of account. For example,
they record accounts receivable when sales are made and cash receipts when customers send in payments;
and
they record account payable when raw materials are purchased.
2. People in other functional areas provide data to A/F:
M/S provides sales data
P/MM provides production and inventory data, and
HR provides payroll and expense data.
3. M/S personnel require data from A/F to evaluate customer credit.
Accounting system
Accounting system data is used:
By decision-makers throughout a company to plan and manage day-to-day activities
By managers to make long-range operating forecasts
By accountants to generate a company’s financial reports