The Importance of MIS in the Human Resources Department
Management Information Systems (MGMT 5853)
Introduction of Management Information Systems
In this modern, increasingly globalized world, to be able to get and manage information is very important for every company. Management Information Systems (MIS) have very significant functions in a company; without them, the company would have trouble surviving and competing with other companies. “Management Information Systems (MIS) is a system that provides information needed to manage and organize a company in doing its business effectively (Wikipedia, 2011a). In other words, MIS is used for assistance in decision-making, based on collected information. Basically, to accomplish its goals, MIS combines three main resources, which are technology, information and people (employers, managers, and employees). MIS has several main functions. The first function is data processing, which consists in the collection, transmission, storage, processing, and output of data. Second, the function of prediction helps employees predict future situations by using modern mathematics, statistics, or simulations. Third, function of plan that can help an organization to arrange good plans and management planning reports of each department in a company based on the business strategies and regulations from the company. Fourth, function of control that can support a company to monitor, inspect and assist to control the operations based on the data collected from every department. Finally, function of assistance that basically provides the best answers of related problems instantly for improving business benefits) (Wikipedia, 2011a). Some companies even depend on MIS to run their businesses. Management Information Systems help a company know their strength and weaknesses. This information, especially the business reports, can help improve the business; these business reports include sales reports, business operation reports, and employee performance records. Moreover, MIS also can provide and analyze data about customers; the important feedback from the analysis can help the company know their customers and improve their business according to the customers’ needs. With all this information based on MIS, a company can analyze and predict business situations in the future. As a result, they know where they need to improve or how they need to react in order to stay competitive and become the business leader (Pant & Hsu, 1995). Therefore, MIS is very useful in helping managers to predict business situations, based on what is going on in the market, and to make important decisions for the business processes and the operations accurately.
MIS in the Human Resource Department
Furthermore, besides helping managers in making decisions for the company in general, MIS also helps companies and managers organize their employees and even their future employees. This is very important because the most important asset in any company is its employees. The activities to maximize employee’s capabilities and their performance in an organization is coordinated by the organization’s Department of Human Resource Management or Human Resource Development (McManara, n.d.). The Human Resource Department (HRD) is the area in a company responsible for managing the company’s employees as an asset of the company. The main role of the HRD in a company is to provide managerial services for employees and to support company activities. To be more specific, the HRD’s function in a company is to perform administrative processes. It consists of keeping data profiles for all employees, usually including their personal histories, skills, capabilities, accomplishments, and salary (Wikipedia, 2011b). In addition, the HRD also needs to make sure that the work practices follow the law. In other words, the HRD employees are also responsible to administrate, record and keep secure all the staff...
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