AZAD College

INFORMATION SYSTEMS
By: M Rafeeq

Chapter- III

APPLICATION OF INFORMATION SYSTEMS

Role of Accounting Transaction Processing System: -

Banks & Creditors Management Shareholders

Departments Cash Mgt. Produce Govts

& Employees Investments Strategic shareholders .
foreign exchange & Tactical reports
planning

Payroll &
employee Tax filings &
benefits Planning
Produce Mgt.
accounting reports
Sales
tax

Inventory Sales &

Order &
& Assets account
account
payable receivable
Inventory Mgt.
And fixed asset and
cost accounting

Suppliers
Customers

Supply and Product

in-process inventory inventory

Transaction processing is a major function of the accounting system. The

accounting system collects data throughout the company and produces consolidated
reports that are used for planning and Mgt.
TPS is important, because they focus on money.
Provide controls over the data to ensure accuracy and to prevent fraud, and create
standard reports.

1). INPUT AND OUTPUT: - Financial data and reports.

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-Accounting department collects raw financial data and is stored in accounting

journal.
-Double-entry system is used to ensure accurate data. Double-entry system means,
at least two entries must occur for every transaction.
-Each entry includes the data, amount of money, account number, person’s name.
-The journal purpose is to record all the transactions.
-A general ledger is a collection of accounts include categories like accounts
receivable, accounts payable, inventory and cash.
-Produce balance sheets; cash statements and income statements every quarterly.
-Reports are produced to compare the financial positions of various companies
over time.
-Accounting systems produce standardized reports.

2). PURCHASES, SALES, LOANS AND INVESTMENTS: -

-Purpose of accounting is to record the financial transactions with external
organizations. Creates summary and detail reports to monitor key information.
-If sales in a region drops, then there will be a major increase in the cash balance,
then a message will be send to the appropriate manager by building exception
reports.

3). INVENTORY: -
-Inventory control consists of knowing exactly what items are available and
where they are located.
-Determine when to place new orders.
For E.g. With EDI, inventory control system can monitor current sales and
automatically place orders with the supplier.
-The computer system monitors production requirements, keeps track of delivers
and electronically sends order to the suppliers. The suppliers then deliver the
parts, as they are needed on the production line.

4). THE ACCOUNTING CYCLE: -

-Produce information in reports that are required to reflect the financial condition
of the firm at the end of every quarter.
-Managers operate for quarterly reports, with intermediate monthly reports for
some items. The volume of data is kept on file by making summary reports.

5). PROCESS: - Checks and Balances.

a) Double-Entry System: - Objective of accounting system is to maintain the
integrity of the financial data.
The goal is to prevent mistakes and discourage fraud, i.e., if an amount
entered is incorrect, the account totals will not balance.
Generally transactions involve outside organizations, mistakes can be
caught by sharing data.
For E.g.: - Companies typically send receipts, when they receive payments
from each other. Auditors periodically send verification requests to suppliers and
customers to make sure that data was recorded correctly.

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b) Separation of duties: -
This control is to minimize fraud to deal with multiple employees.

c) Audit trails: -
This is important because it enables investigators to track backward through
the data to the source.

By audit trails entries can identify the person who is responsible for the entry.
This identified data, is possible to list every article that affects an item on a
report.

I. Nature of Operational Information Systems: -

The information systems that perform or support the completion of tasks
are often referred to as operational information system or transaction processing
systems.
Operational information describes past activities.

They produce routine, repetitive, descriptive, expected and object data.

[Structured format].
Information produced is in detail, highly structured, accurate because this
information is obtained from internal sources.

Advantages:
1. Reduced cost
2. Increase speed.
3. Increased accuracy.
4. Increased custom service
5. Increased data for decision-making.

Application of Information Technology to some of the Operational

Information Systems that common to four organizational functions: -
1. Accounting/Finance.
2. Marketing
3. Production.
4. Human Resource management.

OPERATIONAL FINANCE ACCOUNTING SYSTEMS: -

They focus on processing financial transactions to produce the routine,
repetitive information outputs i.e., pay-slips, checks to vendor, customer
invoices, purchase order, stock reports.

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Verified sales order

Order Accounts
processing receivable

Purchase & cash

Fixed assets payments totals

Inventory totals General

Customers Inventory Ledger

Orders to Pay roll Purchase & cash

restock payments totals
inventory

Verified purchase orders

Accounts
Purchasing
payable

Checks to
creditors
Creditors

The financial accounting system is composed of following modules:

1. General ledger
2. Fixed assets
3. Sales order processing
4. Accounts receivable
5. Accounts payable
6. Inventory control
7. Purchase order processing
8. Payroll
1. General Ledger system: -
Produce income statements and balance sheet periodically.
Updates data of pay roll accounts.
2. Fixed assets system: -
Maintains records of long term & short term assets owned by an
organization.
E.g.: - property, machinery
General ledger system uses this information to maintain current balances
in long-term asset accounts of the organization.
3. Sales order processing system: -

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It is also called order-entry system, which records sales order and provide
data to other systems like inventory and bill the customers.
The sale can be closed while picking and packing slips.
4. Accounts receivable system: -
It allows entering, updating and deleting customer information, such as
sales made on account, credit terms, cash payments received and accounting
balances.
INPUTS OUT PUTS
Payments Customer
statements
ACCOUNTS
Sales orders RECEIVABLE Schedule of accounts
receivable

Adjustments
(Returns, credit terms)
Aging reports

5. Accounts payable system: -

Provides information directly to the general ledger system and receives
data from the purchase order system.

INPUTS OUT PUTS

Purchase orders Checks to
creditors
ACCOUNTS
Sales orders PAYABLE Schedule of accounts
payable

Adjustments
(Returns, credit terms)
List of bills due

6. Inventory control system: -

Provides input to the ledger, where it receives input from order processing.
Purpose is to keep track of inventory levels and costs.
Inventory control updates stock changes, such as damaged goods,
spoilage.
7. Purchase order processing system: -
Purchase order system take orders from inventory and provides
information to the accounts payable and inventory steps.
Produces stock reports and order reports.
8. Payroll system: -
Process wage and information such as payments to employees
Produces weekly payroll summary report, overtime reports, wage and tax
statements, and payroll checks.

OPERATIONAL MARKETING INFORMATION SYSTEMS: -

INPUTS
Periodic
automated
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Company
database
Computer
Marketing
information
system
OUTPUTS
programs
Marketing
subsystem Inquires
files

INPUTS OUTPUTS
Customer invoices Sales recap
Marketing budgets Record summaries
Sales call reports Transaction analysis
Cost reports Exception inquires
Inventory reports
Accounts payable
Accounts receivable
Payroll
Manufacturing costs
Annual reports
Market research

Operational Marketing Information system: -

The business function of marketing is concerned with the planning
promoters, sales of existing product, the development of new product and new
market to better serve the potential customer. Thus marketing performs a vital
function in the operation of a business enterprise.
To be effective, marketing information system must be coordinate with
other organizational information system such as purchasing system, production
system, inventory system, accounts receivable system, credit system and order-
entry system.
Operational marketing information system include system such as:

1. Sales force automation systems

2. Micro marketing and data ware house systems
3. Telemarketing systems
4. Direct mail advertising system.
5. Point-of-sale systems.
6. Delivering tracking and routing systems.
7. Electronic shopping and advertising.

1. Sales force automation system: -

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These are designed to increase the production of sales people which

includes identifying potential customers, contacting customers, calling on
customers, closing the sale and follow up the sales.
There most support managing sales cycle, provide electronic catalogs or
sales presentation.
Prospect Information systems include lists of prospects by location by
product category by income etc.
Customer contact management systems provide information related to
sales force pertaining to customers, their product or service & sales history data.
2. Micro marketing and data were house system: -
Pitching sales or advertising campaigns to a very narrowly defined target
customer is called micro marketing. They are used to identify and target specific
customer or prospect from large database.
A data warehouse system, which stores, retrieves manager or otherwise
manipulates massive amounts of data that may be from the organization database
and external sources.
The warehouse of data is often separated from the organizational
production database so that users can use these resources without reducing the
response time of an organizational routine data processing operation.
3. Telemarketing systems: -
A marketing system that uses the telephone, often coupled with computer
support, to sell products or services.
Telemarketing uses electronic directories and on-line database together for
names, address, telephone numbers & alter data of the potential customers.
4. Direct Mail Advertising System: -
A marketing system that utilities marketing list to distribute sales
broachers and catalogs to a large number of potential customers.
5. Point of sale (POS) systems: -
Computer system used by sales clerks to record a sale at the customer i.e.,
capturepersonnel
Classical date about orders found in food chain stores, departmental stores and
Environmentally
other chain stores.
functions required functions
The information obtained from point of sale systems becomes input to the
Recruiting EEO compliance
financial accounting system, which then supplies data to marketing information
(Equal Employment
Hiring
systems.
Job evaluation Opportunity)
6. Delivery tracking and routing systems: -
Personal
Today delivery systems place small satellite dishes on their delivery
Requirements Affirmative action
Placementsand these are the satellite bases global position system (GPS) to monitor
vehicles
the movement
Career plans and location of every vehicle.
7. Electronic
Specific job shopping and advertising: - OSHA-Health/safety
RequirementsThe computer age avenues for shopping and advertising(Occupational
in Internet, rather
Safety
than TV radio and magazines.
Training and Health Act)
Virtually shopping or electronic shopping allows organizations to
Skills inventory
Skills requirements
present information about goods and services to potential customers who are
Compensation
connected to their electronic store. ERISA pension
Payroll Personnel records (Employee
Benefits Retirement- Income
OPERATIONAL HUMAN RESOURCE INFORMATION SYSTEMS:
Maintenance Employee profiles Security Act)
Absenteeism Employment histories
Tracking Carrier profiles
Organization 7
Education records
Charts Payroll data
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General retrieval and

processing for
operating management
personnel specialists

Marketing, production,
finance & other major
systems

The five classical subsystems of the personal information system:

1. Recruitment – forecasts personal needs and skills and recruits the personnel at
proper time to meet organizational needs.
2. Placements – effective use of labor takes place in this system.
3. Training & Development - work force be constantly update in new techniques
and developments.
4. Compensation – giving benefits to the employee.
5. Maintenance –personal policies and procedures are achieved.

II. Nature of Tactical Information Systems: -

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Tactical IS support management decision making by providing managers with

regular summary reports, exception reports, adhoc reports and other information that
help to:
1) Control their areas of responsibility
2) Allocate their resources to obtain organization goals.

The focus of tactical IS is on resource allocation i.e., how do you allocate the
available resources to reach organizational goals.

Information Systems to functional areas: -

1) Tactical Accounting & Financial IS’s.
2) Tactical marketing IS’s.
3) Tactical Human Resource IS’s.

1. Tactical Accounting & Financial Information Systems: -

Many Information systems can be designed for financial mangers to make
decisions.
a) Budgeting systems
b) Cash management.
c) Capital budgeting systems.
d) Investment management systems.

a) Budgeting Systems: -
It permits managers to track actual revenue and expenses and compare
these amounts to expected revenues and expenses.
In a computerized general ledger system, financial accounting system
often permits budget amounts to be entered by account number.
Periodically (weekly, monthly, quarterly or monthly) these budgeted
amounts (allocations) and the actual amounts spent or received (actual) for
each account are compared and reports are prepared.
The difference between the allocation for an account and the actual
amount spent is called variance, is also identified and reported.

The reports prepared by general ledger system of financial accounting

system are:-
1) Current budget allocations, expenditures and variances by budget line
item
2) Current budget allocations compared to the previous years allocations.
3) Current revenues and expenditures compared to the previous year’s
revenues and expenditures.
4) Current revenues and expenditures compared to average of the other
units or divisions of the organization.
5) Projected expenditures and variances for each budget line item for the
entire year based on the expenditures incurred to date.

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This system provides information to identify and solve problems, i.e.,

the systems do not make any decisions. It is a decision-support system, not a
decision system.
Generally mangers use spreadsheet software to analyze their
departments budgetary data.

b) Cash Management systems: -

The important function of financial management is to ensure that whether
the organization:
1) Has sufficient cash to meet it needs.
2) Putting excess funds from any period to use through investments.
3) Providing borrowing power to meet the organization’s cash needs
in periods of insufficient cash flow. Organizations needs cash for two
major reasons:
1) For working capital (cash needed for day-to-day operations)
2) For acquisition of long-term assets.
If adequate cash is available for its working capital needs and long-term
asset acquisition plan, the organization must prepare a report of its expected
cash flow for the time periods.
The report shows the cash flow for each month of the coming year.
A cash flow report shows the estimated amount of cash that will be
received and spent each month.
The report shows which months will have excess funds that might be
put to use and which months will have insufficient funds, which may require
the organization to borrow cash to meet its working capital or fixed asset
acquisition needs.
A cash flow report, supplies information that helps the manager to
make decisions about investing, purchasing and borrowing money.
Cash Management systems are generally used for larger organizations.
Cash management Accountant (CMA) provides automatic deposits of cash
and dividends from other accounts in to a money market account.

c) Capital budgeting systems: -

It contains information about planned acquisition or disposal of major
plant assets during the current year.
The manager compares the various capital spending plans using 3
commonly used evaluation tools.
1) NPV - Net Present Value.
2) IRR - Internal Rate of Return.
3) PBP - Pay Back Period.

1) Net present Value: - It is the current value of cash that will be received
at same future time.
2) Internal Rate of Return: - It is to find the discount rate that generates a
present value of the earnings or savings equal to the present values of initial
investment.

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3) Pay Back Period: -It is to know how many years or months the
increase in revenues or the savings from reduced operating expenses
obtained from the asset, which will take to match the investment in the
asset.

d) Investment Management Systems: -

Management invests organizations money in securities. So, careful
management of these investments is necessary to ensure the achievement of
organizations goals.
Computer Information Systems provide unique ways to mange stock
and bond portfolios.
Investment management systems uses on-line databases for immediate
update for stock and bond prices, information about the history of each
investment and various portfolio investments analysis tools to help manger to
stay on top of the organization’s investment.

2. Tactical Marketing Information Systems: -

External Internal
Environment Environment

Marketing Mix
Decisions

Product Price Place Promotion

Decisions Decisions Decisions Decisions

Evaluation and Control

Marketing function is to identify customer needs and wants & to satisfy them.
Marketing managers are engaged in planning activities, which result in a combination
of product, price, place and promotion, which are referred to as the Marketing Mix
(MM)

Tactical Information systems has the following systems:

a) Sales Management System.
b) Advertising and promotion systems.
c) Pricing systems.
d) Distribution channel systems.
e) Competitive tracking systems.

a) Sales Management System: -

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The objective of marketing mangers is to reach sales goals set by the

top management.
To attain this objective marketing managers must make many tactical
decisions i.e., about sales terriorities structure, sales force in the territory,
products offered and served to customers.
For a better sale, sales managers should decide a good reward to sales
people to increase their sales efforts. The various IS’s that supply these data
to marketing managers are called Sales Management Systems.
Marketing managers use statistical software and spreadsheet software
as IS’s tool. Using these software & spreadsheet manager can monitor the
sales progress of each sales persons by market segment, by product averages
and effectiveness of sales person selling to each group i.e., customer type.

b) Advertising and Promotion Systems: -

These systems are to implement strategic sales goals set by the top
management. Decisions are made on media and promotion to select market
segments in order to achieve sales goals.
Following information is required by marketing managers to make
decisions for advertising and promotions.
1) Projected sales goals.
2) Production and distribution of stock.
3) Information from marketing research firms.
4) Market segments.
The tools used for support are data warehouses, query tools,
spreadsheet software, statistical software, on-line database, Internet and
custom written reports.

c) Pricing Systems: -
This system provides information to managers to help them to set
prices for their products and services. This information is important, because
the price of a product or service affects the volume of sales and profitability of
the organization.
Pricing decisions are made according to demand of the product or
similarly of the product or service i.e., the prices of competing, as well as
substitute products (products that are used instead of original products).
Pricing of a product depends upon competitors, customer satisfaction
and organization objectives. It also includes. What type of discounts to be
given at various levels of channel of distribution and what promotional
devices should be used i.e., financing, and rebates.

d) Distribution Channel Systems:-

Organization should determine, whether the products and services
should directly reach to a customer or to use a middlemen or do both.
For direct sales, organization consider trade channels, i.e., sales force,
direct mail, telemarketing, etc.,

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For middlemen, organization chooses channel to distribute the product

or service to reach targeted market segments.
Distribution channel decision- support systems are used to marketing
manager with the relevant information.

e) Competitive tracking systems: -

This is to ensure organizations marketing mix, whether the customer is
satisfying to our product when compared to competitors and their marketing
activities.
Competitive intelligence or knowledge of competitor prices,
products. Sales advertising and promotions must be gathered regularly in
order not to fall behind the competition. Gathering competitive intelligence is
carried out through competitive tracking systems.
Competitor information is readily available in Journals and
Newspapers, where both strategic and tactical managers use this information
to make decisions. Sales people collect more information about competitor
activities from field reports. So, sales people should be encouraged more.

3) Tactical Human Resource Information systems: -

Human resources represent largest operating expenditure (between 40% to
60% of total operating expenses)
In service organizing salaries and wages are 85% of total operating expenses.
People are the most basic and the important component of any
organization so; HRM is critical to the organizations success.
To maintain proper human resources, mange’s require Human resource
Information’s systems (HRIS).
HRIS contain personal information about the employees of an
organization. HRIS includes a number of tactical strategic decisions.
ASK (Attitudes, Skills, Knowledge) – these shapes the organization.
Tactical HRIS includes:
a) Job analysis and design systems
b) Recruiting systems
c) Compensation and Benefit systems.
d) Succession planning systems.

a) Job analysis and Design systems:-

Job analysis and design systems include describing the jobs needed
in an organization and the qualities of the workers needed to fill those jobs.
The tasks develop job descriptions, for every type of position in the
organization, which specifies the purposes, tasks, duties and responsibilities
of each job and the conditions and performance standards.
Job analysis and design system also include Job specifications for
each type of job, which describes the skills knowledge, experience in job
descriptions.
Input of data to job analysis and design is in from internal and
external sources.

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1) Internal - Includes data from interviewers, with

supervisors and workers.
2) External - Labour Unions, competitors and
government agencies.

The output of job analysis information are job descriptions and job
specifications, which helps mangers to make tactical decisions. This
information’s allows to provide equal pay for equal work within an
organization other wise due to low morale poor performance and
productivity results.

Job Description Job Satisfaction

Job title: Clerk Revision date: Job title: Revision date:
Job No: 100 Job No:
Pay grade: 6 Pay grade:
Reports to: Job Requirements:
Supervises: Education:
General description: Physical & Health:
Duties & responsibilities: Appearance:
Special skills

Job Characteristics. Work experience.

b) Recruiting systems:-
It provides qualified applicants to fill the vacant positions described
by job analysis and design IS.
The goal of recruiting is to improve the quality of the organizations
human resources. Recruiting should be done based on affirmative action plan
and equal employment opportunity (EEO).
Information about applicants includes from the following sources:
1) Schools and colleges, including placement officers.
2) Federal, state & local employment officers.
3) Private placement services.
4) Journal, magazine and newspaper advertisements
5) Standard job advertisements and recruiting brochures.
6) Prospect files.
c) Compensation and benefits systems: -
The wage and salary systems, or compensation plans, an
organization offers widely hourly, wage plans, piece-rate plans, incentive
pay plans, merit pay plans, monthly salary plans, commissions and profit
sharing. Benefits like fringe benefits such as health insurance, life insurance,
medical services, retirement plans, etc.,
Organizations have implemented computerized HRIS to better
compensate and benefit plans, where information is collected from internal
and external sources.

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Better compensation and benefit plans improve organizations

productivity.
d) Succession planning systems: -
This is to replace key organizational personnel, where it is made
certain, when the key positions persons become vacant, because of death,
injury, retirement or other reasons.
Planning for succession means identifying replacement employees
and providing them with the appropriate training and experience to fill
openings.

III. Nature of Strategic Information Systems: -

Strategic IS’s are goal oriented i.e., these systems are designed to support
organizations goal and directing setting.

Information Systems to functional areas: -

1. Strategic Accounting & Financial IS’s
2. Strategic marketing IS’s
3. Strategic Human Resources IS’s.

1. Strategic Accounting and Financial Information Systems: -

It includes several types of information flows:
a) Internally generated financial conditions analysis data, describing the
status of the organization.
b) Externally generated economic, demographic and social data describing
the present and future environments for the organization.
c) Forecasts of the future of that organization in those environments.
The 2 outcomes of financial strategic planning are:
1) Financial goals – includes setting goals for investment and return
on investments.
2) Financial direction – involves in deciding on new investment
opportunities to fund the organization.
The major purpose of strategic decision-making is to use long-
range forecasts to reduce the risk involved in major organizational
decisions.
It has the following Information systems.
a) Financial Conditional Analysis systems
b) Long-range forecasting systems.

a) Financial Conditional Analysis systems: -

It includes computerized accounting systems, which
automatically calculate and presents the results in the form of reports
using tools and ratios.
Financial condition analysis system collects data on
competitors, suppliers, buyers and other organizations like on-line
financial databases. The manger uses a variety of analysis tools and
produces reports on the income statement and balance sheet.

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b) Long-range forecasting systems: -

Strategic forecasts will affect the performance of
organization in the future. Information required for forecasting the
future environment includes.
1) Past activities of the organization.
2) Data on the present economy & future economy.
3) Information on present demographic structure of the region.
For forecasting future events, it requires use of statistical tools,
generally used on spreadsheets.

2. Strategic Marketing Information systems: -

External Internal
Environment Environment

Organizational goals

Marketing goals

New Product design Target Old Product

and development selection Management

Demand Forecasting

To Tactical Planning

Strategic marketing plan develops an overall marketing plan,

which includes:
1) Segmenting the market into target groups of potential customers
based on common characteristics, needs or wants.
2) Selecting these market segments.
3) Planning products and services to meet the customer needs.
4) Forecasting sales for the market segments and products.

The strategic activities revolves around:

a) Sales forecasting systems
b) Marketing Research Systems
c) Product planning and development systems.

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a) Sales forecasting systems: -

It includes:
i) Forecasts of sales for the industry as a whole
ii) Forecasts of sales for the entire organization of sales for each
product or service.
iii) Forecasts of sales for a new product or service.
iv) Forecasts for market segments.

Predicting the future is very difficult and predicting sales of

new products is most difficult of all sales-forecasting activities. As
new products do not have any track record of sales, no date will be
readily availably so estimation of sales must be made of similar
products from customer surveys.

b) Marketing Research Systems: -

The results of MR provide important input for both
strategic and tactical IS’s. Large organizations conduct their own
researches in their departments. Small organizations conduct by
outside consultants.
Data collection is heavily derived from external sources i.e.
customers, competitors, Trade, government, census, etc.
Data can be obtained from direct surveys, mail survey,
Internet surveys & telephone interview from consumers.
Collected sales data is to determine the projected
sales of a product and testing hypothesis about consumer responses.
The activities of a typical marketing research department are:
1) Conducting trend analysis.
2) Analyze population and target group characteristics.
3) Analyzing & identifying consumer preferences, includes testing
products and services.
4) Determining and analyzing customer satisfaction with the
organizations existing products and services.
5) Estimating market share for all of each product and service
offered.
[CATI – Computer Aided Telephone Interview].

c) Product Planning and Development Systems: -

The objective of this is to make information’s about
consumer preferences obtained from the MR system and from
customer inquires available for the development of new products.
The output of this system is a set of specifications like
design of a product. This system most provides appropriate
organizational personnel with sufficient information to ensure that they
accurately & completely address patent & copyright concerns,
consumer product safety concerns and alter legal issues pertaining to
the product.

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3) Strategic Human Resource Information Systems: -

It ensures that the organization has the right kinds and the right number of
people at the right places at the right time to achieve its objectives.
Strategic HRIS includes.
a) Workforce planning systems.
b) Information systems supporting labour negotiations.
c) Other strategic uses of HRIS.

a) Workforce planning systems: -

This involves identifying the human resources needed to meet the
organizational objectives specified, which depends on forecasting supply
and demand of the required workforce. Forecasting human resource needs
the following required information, to the questions.
1) What labour force meets the strategic plan? What skills, experiences,
knowledge and other qualities should the human resource possess,
i.e., what job description & job specifications does the strategic plan
require?
2) How many human resources, qualities and how many positions are
required to meet the strategic plan?
3) What are the current human resources of the organization and how
well they satisfy the organizations strategic needs for human
resource?
4) What other human resources are available to achieve the strategic
plan.
Business Plan

Work force Plan

Succession Forecasted Externally

Planning labor supply labor supply
& demand

Job analysis Recruiting Compensation Training &

& design & benefits development

Employee Position Performance

Profile control Management

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Fig: - A model showing HRIS support for work force plan.

Human resources are identified internally and externally.
Forecasting demand and supply can be:
1) Macroeconomic level: - Forecasts in various job categories can be
obtained for states and regions from a variety of national & state
agencies.
2) Microeconomic Level: - Forecasts involve using data more
specific to the organization.

b) Information systems supporting labour negotiations: -

It includes negotiations with craft, maintenance, office and factory
unions etc. HR to negotiate needs numerous adhoc reports to analyze the
organizations and Unions positions in industry and the current economic
situations.
c) Other strategic uses of HRIS: -
Like organizations planning to restructure, downsize, sell off
divisions or merge with other organizations need to know what impact
these decisions will have on their workforce profiles, overall cost of
personnel, benefit plans, retirement and health plans.

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