INFORMATION SYSTEM IN

ORGANISATIONAL
FUNCTIONS
Ashna B.Biju
Information System
■ Information system is a set of integrated components that are
used to collect data, store data and process the data for the
purpose of providing information and knowledge.
■ It is used for decision making and for the coordination, control,
analysis and visualisation of information in am organisation.
■ Eg : Payroll system, Ticket Reservation system.
Functional Areas of an Organisation
A business is usually split into a series of different departments and each
department has a specific function in the operations of the business.
The major functional areas of an organisation are;
■ Human Resource
■ Finance and Accounts
■ Marketing
■ Operations
Human Resource Management
■ Human resource management (HRM) is the practice of
recruiting, hiring, deploying and managing an organization’s
employees.
■ It can be defined as the effective management of people in
an organisation.
■ HR management helps bridge the gap between employees’
performance and the organisation’s strategic objectives.
Impact of Information system in HR Management

■ Information system influenced human resource management in many

ways.
■ Information systems allow small businesses simplify HR processes.
■ Tasks like employee onboarding, leave management, and benefits
administration can be completed more quickly.
■ This lets your HR employees get more work done during their
workdays.
Following are the impact of information
system in HR Management
■ Better service to line manager
■ Enhancing management
■ Effective recruiting
■ Data management tools and human resource management
■ Inventory management tools and human resource management
■ Cost reduction and efficiency
■ Better customer service
■ Career development and human capital management
■ Automation of HR processes
■ Analytics grants access to more data
 Finance And Accounting
■ Accounting and finance play an essential role in the
management of any business. Companies operate on money,
and if you don’t control that money, you don’t control your
business.
■ By properly accounting for your company’s income and
expenses, you can manage the flow of money and thereby
direct the course of your business.
■ While accounting focuses on the day-to-day management of
financial reports and records across the business world,
finance uses this same information to project future growth
and to analyze expenditure in order to strategize company
finances.
Impact of Information System on Finance and
Accounts
■ The biggest impact information system has made on accounting and finance is
the ability of companies to develop and use computerized systems to track and
record financial transactions.
■ The main use of information system in finance is that it automatically updates
all the transactions in the general ledger.
■ Use of information system in finance helps companies track the flow of cash
through account receivable and accounts payable accurately.
■ It serves as a decision making tool, helping in choosing appropriate financial
goals and budget planning.
Marketing
It is important to realise that marketing is not the same a selling, but is a
much broader concept. The responsibility of the marketing department
includes;
■ Research the market
■ New product development
■ Marketing mix ( strategies that will help selling the product)
Impact of information system in Marketing
■ Information system helps in controlling marketing activities. It
helps effective tapping of marketing opportunities and
effective defence against marketing threats.
■ It helps the firm to adjust it’s products and services to the
needs and taste of customers.
■ It provides market intelligence to the firm.
■ It can also allow you to communicate more effectively and
reliably with an external market research company. And
since the data is stored within the system, you can continue
to use it in the future as you make strategic growth
decisions.
■ These tools put marketers close to their customers to help
them understand who they customers are, what they want,
and what competitors are doing.
Operations
■ Operations management (OM) is the administration of
business practices to create the highest level of efficiency
possible within an organization.
■ It is concerned with converting materials and labor into goods
and services as efficiently as possible to maximize the profit
of an organization.
Operations
Manufacturing and production department in otherwise called operations
management. The responsibilities of this department includes;
■ New product development
■ Research and development
■ Production planning
■ Quality control
■ Distribution
■ Purchasing and stock control.
Impact of information system in Operations
■ Information system collect and store the company’s key data
and produce the information managers need for analysis,
control and decision making.
■ Most companies use them to process customer orders and
handle billing and vendor payments.
■ By lowering the cost of market participation ( transaction cost )
information system allows firms to obtain goods and services
more cheaply from outside source than through internal means.
■ Information system can thus help firms increase revenue while
shrinking in size.
THANK YOU