Define system

A system is a collection of elements or components that are organized for a common purpose. A computer system consists of hardware components that have been carefully chosen so that they work well together and software components or programs that run in the computer. The main software component is itself an operating system that manages and provides services to other programs that can be run in the computer. All of nature and the universe can be said to be a system. We've coined a word, ecosystem, for the systems on Earth that affect life systems. The term can be very useful because so many things can be described as systems. It can also be very unuseful when a more specific term is needed. A computer system refers to the hardware and software components that run a computer or computers.

An information system is a system that collects and stores data system is a set of interacting or interdependent components forming an integrated whole or a set of elements (often called 'components' ) and

relationships which are different from relationships of the set or its elements to other elements or sets Some systems share common characteristics, including.

A system has structure, it contains parts (or components) that are directly or indirectly related to each other;

A system has behavior, it contains processes that transform inputs into outputs (material, energy or data);

A system has interconnectivity: the parts and processes are connected by structural and/or behavioral relationship A system's structure and behavior may be decomposed via subsystems and subprocesses to elementary parts and process steps.

Elements of a system
following are considered as the elements of a system in terms of Information systems 1. Inputs and outputs 2. Processor 3. Control 4. Environment 5. Feedback 6. Boundaries and interface

Types of systems
Systems are classified in different ways: 1. Physical or abstract systems. 2. Open or closed systems. 3. 'Man-made' information systems. 4. Formal information systems. 5. Informal information systems. 6. Computer-based information systems. 7. Real-time system. 2

Physical systems are tangible entities that may be static or dynamic in operation. An open system has many interfaces with its environment. i.e. system that interacts freely with its environment, taking input and returning output. It permits interaction across its boundary; it receives inputs from and delivers outputs to the outside.

A closed system does not interact with the environment; changes in the environment and adaptability are not issues for closed system.

Define a Processor
the CPU, or the central processing unit, also known as a processor for short, is the brain of every computer. The CPU executes any calculation or process made by the computer.

The processor uses bits that have either a value of 0 or 1 for all of its calculations ("bit" is short for "binary digit").

Computers store, process and retrieve information by using strings of bits, such as, for example "1011001."

A processor, or "microprocessor," is a small chip that resides in computers and other electronic devices.

Its basic job is to receive input and provide the appropriate output. While this may seem like a simple task, modern processors can handle trillions of calculations per second.

The central processor of a computer is also known as the CPU, or "central processing unit." This processor handles all the basic system instructions, such as processing mouse and keyboard input and running applications.

Modern CPUs often include multiple processing cores, which work together to process instructions. While these "cores" are contained in one physical unit, they are actually individual processors.

Processors that include two cores are called dual-core processors, while those with four cores are called quad-core processors. Some high-end workstations contain multiple CPUs with multiple cores, allowing a single machine to have eight, twelve, or even more processing cores.

Types
There are three types of processors on the market today: 16-bit, 32-bit and 64-bit. A 32-bit processor can represent numbers (only using 0's and 1's) from 0 to 4,294,967,295, while a 64-bit machine can represent numbers from 0 to 18,446,744,073,709,551,615.

Fetch

The instructions processed by a CPU are strings of numbers that are stored in the computer's memory. Once a process is initiated, the CPU retrieves the instructions from the memory, a process called "fetch." This is the first step that the CPU takes whenever any calculation or task is initiated.

Decode

The analyzing of the instructions after fetching is called "decoding," where the CPU basically "decides" how to process the instructions that it retrieved from its memory.

Execute

After decoding the information, the CPU sends different segments of the instructions to the appropriate sections of the processor, a process called "execution." In case of additional actions that may be necessary to execute certain decoded instructions, an arithmetic logic unit (ALU) is attached to a group of inputs and outputs -- the inputs provide the numbers to be processed and the outputs contain the final sum or response to the request.

Write back

Finally, after executing the instruction, the processor writes the results back into memory and proceeds to execute the next instruction, a process called "write

back." Advanced computer processors can fetch, decode and execute multiple instructions simultaneously.

Definition - What does Business Software mean?

Business software is software that is used for business purposes. The term is often used more specifically for software that helps a business to accomplish specific goals through the applied principles that the software supports.

Definition - What does Decision Support System (DSS) mean?

A decision support system (DSS) is a computer-based application that collects, organizes and analyzes business data to facilitate quality business decisionmaking for management, operations and planning. A well-designed DSS aids decision makers in compiling a variety of data from many sources: raw data, documents, personal knowledge from employees, management, executives and business models. DSS analysis helps companies to identify and solve problems, and make decisions.

Definition - What does Customer Relationship Management (CRM) Dashboard (CRM Dashboard) mean?
A customer relationship management (CRM) dashboard is an enterprise application (EA) interface used for the monitoring of business and sales opportunities, processes and performance.

A CRM dashboard provides real-time business event snapshots, which are used to measure and develop analytics for business reporting.

CRM dashboard is also known as CEO dashboard or enterprise dashboard.

EXPLAINS CUSTOMER RELATIONSHIP MANAGEMENT (CRM) DASHBOARD (CRM DASHBOARD)

A CRM dashboard is similar to an automobile dashboard and primarily differs in terms of interactive capability.

Hewlett-Packard (HP) was the first organization to develop a CRM dashboard product.

With a simple mouse click, automated CRM dashboard reports are provided in the form of reports, graphs, charts and maps. A CRM dashboard aggregates data from multiple sources and EAs, which is merged into an analytical report. Business managers may use these reports to maximize organizational efficiency.

CRM dashboards facilitate comparative business analysis through the capturing of data and related Web-based elements. Additionally, CRM dashboards use sales and marketing analysis to boost sales and enhance customer satisfaction.

Types of business software tools

Enterprise application software (EAS) Digital dashboards - Also known as business intelligence dashboards, enterprise dashboards, or executive dashboards, these are visually based summaries of business data. A very popular BI tool that has arisen in the last few years Online analytical processing, commonly a capability of known some

as OLAP (including HOLAP, ROLAP and MOLAP)

management, decision support, and executive information systems that supports interactive examination of large amounts of data from many perspectives. Reporting software generates aggregated views of data to keep the management informed about the state of their business. Data mining - extraction of consumer information from a database by utilizing software that can isolate and identify previously unknown patterns or trends in large amounts of data. There are a variety of data mining techniques that reveal different types of patterns. Some of the techniques that belong here are statistical

methods (particularly business statistics) and neural networksas very advanced means of analysing data. Business performance management (BPM)

Definition - What does Data Mining mean?

Data mining is the process of analyzing hidden patterns of data according to different perspectives for categorization into useful information, which is collected and assembled in common areas, such as data warehouses, for efficient analysis, data mining algorithms, facilitating business decision making and other information requirements to ultimately cut costs and increase revenue. Data mining is also known as data discovery and knowledge discovery.

EXPLAINS DATA MINING

The major steps involved in a data mining process are:

Extract, transform and load data into a data warehouse Store and manage data in a multidimensional databases Provide data access to business analysts using application software Present analyzed data in easily understandable forms, such as graphs

The first step in data mining is gathering relevant data critical for business. Company data is either transactional, non-operational or metadata. Transactional data deals with day-to-day operations like sales, inventory and cost etc. Non-operational data is normally forecast, while metadata is concerned with logical database design. Patterns and relationships among data elements render relevant information, which may increase organizational revenue. Organizations with a strong consumer focus deal with data mining techniques providing clear pictures of products sold, price, competition and customer demographics.

the retail giant Wal-Mart transmits all its relevant information to a data warehouse with

terabytes of data. This data can easily be accessed by suppliers enabling them to identify customer buying patterns. They can generate patterns on shopping habits, most shopped days, most sought for products and other data utilizing data mining techniques.

The second step in data mining is selecting a suitable algorithm - a mechanism producing a data mining model. The general working of the algorithm involves identifying trends in a set of data and using the output for parameter definition. The most popular algorithms used for data mining are classification algorithms and regression algorithms, which are used to identify relationships among data elements. Major database vendors like Oracle and SQL incorporate data mining algorithms, such as clustering and regression tress, to meet the demand for data mining.

INTRODUCTION TO ACCOUNTING.
It is not easy to provide a concise definition of accounting since the word has a broad application within businesses and applications. The American Accounting Association define accounting as follows: "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information!. It suggests that accounting is about providing information to others. Accounting information is economic information - it relates to the financial or economic activities of the business or organization. Accounting information needs to be identified and measured. This is done by way of a "set of accounts", based on a system of accounting known as double-entry bookkeeping. The accounting system identifies and records "accounting transactions". Accounting information is communicated using "financial statements"

WHAT IS THE PURPOSE OF FINANCIAL STATEMENTS? There are two main purposes of financial statements: (1) To report on the financial position of an entity (e.g. a business, an organization); (2) To show how the entity has performed (financially) over a particularly period of time (an "accounting period"). The most common measurement of "performance" is profit. It is important to understand that financial statements can be historical or relate to the future.

Accountability
Accounting is about ACCOUNTABILTY Most organizations are externally accountable in some way for their actions and activities. They will produce reports on their activities that will reflect their objectives and the people to whom they are accountable.

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The table below provides examples of different types of organizations and how accountability is linked to their differing organizational objectives:

Organization Private or public company (e.g. BP, Tesco)

Objectives - Making of profit - Creation of wealth

Accountable to (examples) - Shareholders - Other stakeholders (e.g. employees, customers, suppliers) - Charity commissioners - Donors

Charities (e.g. Save the Children)

- Achievement of charitable aims - Maximise spending on activities - Provision of local services - Optimal allocation of spending budget - Provision of public service (often required by law) - High quality and reliability of services

Local Authorities (e.g. Leeds City Council) Public services (e.g. transport, health) (e.g. National Health Service, Prison Service) Quasi-governmental agencies (e.g. Data Protection Registrar, Scottish Arts Council)

- Local electorate - Government departments

- Government ministers - Consumers

- Regulation or instigation of some public action - Coordination of public sector investments

- Government ministers - Consumers

All of the above organizations have a significant roles to play in society and have multiple stakeholders to whom they are accountable. All require systems of financial management to enable them to produce accounting information.

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How accounting information helps businesses be accountable

As we have said in our introductory definition, accounting is essentially an " information process" that serves several purposes: - Providing a record of assets owned, amounts owed to others and monies invested; - Providing reports showing the financial position of an organization and the profitability of its operations - Helps management actually manage the organization - Provides a way of measuring an organizations effectiveness (and that of its separate parts and management) - Helps stakeholders monitor an organizations activities and performance - Enables potential investors or funders to evaluate an organization and make decisions

There are two broad types of accounting information:

(1) Financial Accounts: geared toward external users of accounting information (2) Management Accounts: aimed more at internal users of accounting information Collection in money terms of information relating to transactions that have resulted from business operations Recording and classifying data into a permanent and logical form. This is usually referred to as "Book-keeping" Summarizing data to produce statements and reports that will be useful to the various users of accounting information - both external and internal Interpreting and communicating the performance of the business to the management and its owners

:Collection

Recording and Classifying

Summarizing

Interpreting and Communicating

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Forecasting and Planning

Forecasting and planning for future operation of the business by providing management with evaluations of the viability of proposed operations. The key forecasting and planning tool is the "Budget"

The process by which accounting information is collected, reported, interpreted and auctioned is called "Financial Management". Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to: (1) Create wealth for the business (2) Generate cash, and (3) Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested

The main financial accounting statements

The purpose of financial accounting statements is mainly to show the financial position of a business at a particular point in time and to show how that business has performed over a specific period. The three main financial accounting statements that help achieve this aim are: (1) The profit and loss account (or income statement) for the reporting period (2) A balance sheet for the business at the end of the reporting period (3) A cash flow statement for the reporting period A balance sheet shows at a particular point in time what resources are owned by a business ("assets") and what it owes to other parties ("liabilities"). It also shows how much has been invested in the business and what the sources of that investment finance were. What is profit? Profit is the amount by which sales revenue (also known as "turnover" or "income") exceeds "expenses" (or "costs") for the period being measured.

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DEFINITION OF 'ACCOUNTING INFORMATION SYSTEM - AIS'

The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.

explains 'Accounting Information System AIS'

Accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system: People - the system users. Procedure and Instructions - methods for retrieving and processing data. Data - information pertinent to the organization's business practices. Software - computer programs used to process data. Information Technology Infrastructure - hardware used to operate the system. Internal Controls - security measures to protect sensitive data.

Information on Accounting and Information Technology

Accounting and information technology go hand in hand, with accounting applications being very popular with many businesses. It is rare to see any business using pencil and paper to process accounting anymore. Computerized accounting is the standard nowadays.

Speed

Computerized accounting is where information technology and accounting met, resulting in great improvements in processing accounting data. Computerized

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accounting applications speed up accounting tasks to new levels never imagined in the manual days.

Accuracy When accounting tasks are computerized, they are likely to be accurate because many systems perform calculations easily and automatically. A spreadsheet, for instance, can add up a column of 500 numbers with a simple formula. It's quick, easy and accurate. There is no need to run calculator tapes to prove that the number is correct. Many systems allow for "copy and paste", eliminating typing mistakes.

Backup

A major benefit of matching accounting with information systems is the ease to store and make backups. If something happens, data can be restored easily. Many times backup tapes or on other media is kept away from the premises so that if a fire or other disaster strikes, there is a back up file some place else. Safety of data is a major plus in computerized accounting.

Types
Information systems have many popular accounting applications, Some examples are: 1) Spreadsheets -- matrix-like tables that perform fast calculations, an accountant's favorite. 2) Integrated systems -- accounting systems that seamlessly run general ledger and modules such as accounts receivable, accounts payable, fixed assets and inventoy. This system can also have sales and payroll modules. All information transfer into general ledger without human intervention. 3) Tax preparation programs -- popular with tax accountants.

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What Is an Accounting Information System?

The location where a company stores its accounting data is called an accounting information system. Most companies incorporate computer technology to house these records and allow users to access these records.

1. Accounting Data
o

Accounting data consists of financial and non-financial data. Financial data provides the details for information reported on accounting reports, financial statements and government requests. In addition to the reports, accountants maintain backup documentation which can be used to verify the numbers reported.

Non-financial data consists of sales quantities, production volumes, labor hours and asset descriptions. Non-financial data supports financial numbers reported. Sales quantities provide details for total sales. Production volume provides details for inventory quantities. Labor hour data provides details for payroll. Asset descriptions provide details for property and equipment reported.

Information System
o

An information system provides the warehouse for compiling all of the data needed in a company. Information systems need a strong organization in order to allow users access to the information they need without providing access to confidential information beyond their needs. Many companies purchase software programs to manage their information system needs.

Accounting Information System

o

An accounting information system is an information system built to meet the specific needs of the accounting department.

The accounting department manages a variety of confidential pieces of information. Hourly labor rates and annual salaries, along with private personnel information, requires limited access within the department.

Customer selling prices must remain confidential, especially when different customers pay different rates for similar products. Knowledge of manufacturing costs must remain

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internal lest competitors try to under-price the company. With each of these examples, only select employees need access to the information.
o

An accounting information system must provide the mechanism for select employees to retrieve certain information they must work with but not information outside their scope of responsibility.

Uses
o

In addition to maintaining confidentiality, accounting information systems provide users with reports created for their specific needs. Accounting information systems also allow users to download information into spreadsheets. In a spreadsheet, the user can select specific pieces of information to meet their own needs.

The Benefits of Accounting Information Systems

Accounting information systems is designing a data processing system using software. It can also be done manually. The computerized systems make accounting job easier by the use of software which can compile financial, tax and payroll data. It can perform other bookkeeping functions.

Efficiency

Computerized financial information systems are faster and more efficient in processing data. The use of hardware such as scanners automatically generates accounting information without much ado.

Computerized financial systems enable users to access it promptly by the click of a mouse. Unlike manual, which by the way is still very much in existence as some companies want to keep both electronic and manual accounting information systems, the user does not have to go through a pile of paper work in order to locate the information he needs.

Cost Effectiveness

Accounting information system makes the maintenance of a bloated financial department irrelevant. The software does most of the work that would otherwise require several employees. The accounting software can journal and prepare documents such as the trial balance. Journals and ledgers are recorded in the computer data bases. There is also

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software that can perform functions such as billing budgeting and preparing payroll. Accounting information systems help cuts the payroll for accounting staff substantially.

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Definition - What are Financial Statements?

Financial Statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity of a company. Financial Statements reflect the financial effects of business transactions and events on the entity.

Four Types of Financial Statements

The four main types of financial statements are: 1. Statement of Financial Position Statement of Financial Position, also known as the Balance Sheet, presents the financial position of an entity at a given date. It is comprised of the following three elements:

Assets: Something a business owns or controls (e.g. cash, inventory, plant and machinery, etc)

Liabilities: Something a business owes to someone (e.g. creditors, bank loans, etc)

Equity: What the business owes to its owners. This represents the amount of capital that remains in the business after its assets are used to pay off its outstanding liabilities. Equity therefore represents the difference between the assets and liabilities.

2. Income Statement Income Statement, also known as the Profit and Loss Statement, reports the company's financial performance in terms of net profit or loss over a specified period. Income Statement is composed of the following two elements:

Income: What the business has earned over a period (e.g. sales revenue, dividend income, etc)

Expense: The cost incurred by the business over a period (e.g. salaries and wages, depreciation, rental charges, etc) Net profit or loss is arrived by deducting expenses from income.

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Cash Flow Statement Cash Flow Statement, presents the movement in cash and bank balances over a period. The movement in cash flows is classified into the following segments:

Operating Activities: Represents the cash flow from primary activities of a business.

Investing Activities: Represents cash flow from the purchase and sale of assets other than inventories (e.g. purchase of a factory plant)

Financing Activities: Represents cash flow generated or spent on raising and repaying share capital and debt together with the payments of interest and dividends.

3. Statement of Changes in Equity Statement of Changes in Equity, also known as the Statement of Retained Earnings, details the movement in owners' equity over a period. The movement in owners' equity is derived from the following components:

Net Profit or loss during the period as reported in the income statement Share capital issued or repaid during the period Dividend payments Gains or losses recognized directly in equity (e.g. revaluation surpluses) Effects of a change in accounting policy or correction of accounting error

Purpose of Financial Statements

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial Statements provide useful information to a wide range of users:

Managers require Financial Statements to manage the affairs of the company by

assessing its financial performance and position and taking important business decisions.

Shareholders use Financial Statements to assess the risk and return of their
investment in the company and take investment decisions based on their analysis.

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Prospective Investors need Financial Statements to assess the viability of investing in a company. Investors may predict future dividends based on the profits disclosed in the Financial Statements.

Financial Institutions (e.g. banks) use Financial Statements to decide whether to grant a loan or credit to a business. Financial institutions assess the financial health of a business to determine the probability of a bad loan. Any decision to lend must be supported by a sufficient asset base and liquidity.

Suppliers need Financial Statements to assess the credit worthiness of a business and ascertain whether to supply goods on credit. Suppliers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers' financial health. Customers use Financial Statements to assess whether a supplier has the resources to ensure the steady supply of goods in the future. This is especially vital where a customer is dependant on a supplier for a specialized component.

Employees use Financial Statements for assessing the company's profitability and its consequence on their future remuneration and job security.

Competitors compare their performance with rival companies to learn and develop strategies to improve their competitiveness.

General Public may be interested in the effects of a company on the economy, environment and the local community.

Governments require Financial Statements to determine the correctness of tax declared in the tax returns. Government also keeps track of economic progress through analysis of Financial Statements of businesses from different sectors of the economy.

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Inventory System Definition

Inventory management is vitally important for any business that sells a physical product. An inventory system must balance having enough inventories on hand to meet the demand of customers while investing as little money as possible in inventory. Perishable products add another dimension of management considerations because they must be cycled through the inventory system more quickly and stored in a way that preserves their value.

1. Inventory Review
o o o

Inventory review refers to the time interval between counting inventories. Periodic review systems have a set schedule for conducting an inventory count. Transactional review systems update the inventory count after each transaction. Periodic review is less resource intensive but more prone to creating shortages and inventory discrepancies while transactional review is more accurate but requires more resources.

Inventory Costs
o o o

Inventory costs can be broken into several categories: the actual cost of the inventoried product, the cost of storage and the cost of unmet demand if inventory is not available to fill orders. Additional costs include transportation and ordering costs incurred when replenishing inventory. Each of these costs is unique to individual businesses and can vary widely.

Inventory Levels
o

A number of factors determine the amount of product kept on hand, including average monthly demand, warehouse capacity and replenishment period. Enough products must be available to meet daily orders or customers will go elsewhere. Warehouse capacity sufficient to store adequate inventory levels is necessary to ensure product availability. The reliability and speed of inventory replenishment from suppliers determines both of these factors. If replenishment of inventory is quick and reliable, then lower inventory levels and less warehouse capacity will be sufficient to meet demand.

COMPUTERIZED INVENTORY SYSTEMS

o o

Computers and bar codes allow for a more efficient management of inventory levels and provide a clearer view of inventory movement. More businesses are using transactional review systems because computerized systems can link to the point of sale with automatic debiting of inventory occurring in real time when the sale occurs. Inventory software can also link to other business systems to integrate more fully all aspects of the business process.

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The Importance of Inventory Systems

Inventory systems play this vital role by accounting for all goods or products. They also show where a particular item is in the flow of sales, whether it be in a warehouse or on a store shelf.

Types

. Inventory systems used in manufacturing companies must keep track everything from the ordering of materials to the point at which the finished product is shipped out. Retail inventories focus on the products ordered and sold.

Benefits

The use of inventory systems helps management control operation cost with use of tools like forecasting based on sales trends. Inventory systems also tell management about loss, making it invaluable for implementation of loss-control procedures.

Different Inventory Systems

FIFO

The FIFO method stands for First In First Out. This inventory method totals your items based on the concept that the first items which enter your inventory pool are the first ones to be sold. For example, if you purchase 10 MP3 players for $70 on April 1 and 10 of the same players for $75 on May 1, this inventory method will show that the $70 MP3 players will be sold first (even if they are all the same player).

LIFO

LIFO, or Last In First Out, is the exact opposite of FIFO. In this inventory valuation method, the last inventory items to be added are the first ones sold. Using the example above, the items which are sold first are the MP3 players which were purchased at the $75 price. This method also has the opposite effect of FIFO, showing a higher cost of goods sold (because the last items will usually be more expensive) and a lower inventory amount on the balance sheet (because older items usually cost less).

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Average Cost Method

Another inventory method is known as the average cost. This method goes in a completely different direction than either LIFO or FIFO. In order to get a value for the inventory you have, you simply add up the cost of every single piece of the same type of inventory you have and then divide by the number of items. This inventory method is best used for businesses which do not have many sales and whose inventory price does not change very often (e.g. an industrial machine manufacturing company).

Basic Inventory Systems

A basic inventory system has a few main components.

Periodic Inventory System

The periodic inventory system is common in small businesses. A simple accounting system, such as a spreadsheet, keeps track of all incoming shipments, sales, returns and other inventory related information for a specific time period. Many small businesses work on a monthly schedule, but this system may be used on a weekly, quarterly or yearly scale depending on the logistical capabilities of the company.

Perpetual Inventory System

a perpetual inventory system records all transactions to the inventory account as they occur. The inventory levels always reflect the actual amount of stock on hand at any given moment. This type of system requires a larger initial investment than a periodic inventory system because it makes use of technology such as bar-code scanners to integrate the stockroom with the point of sale or shipment. Each unit is scanned and that information automatically updates the stock levels and other stock information, eliminating the need for a physical count of the inventory. However, many companies still choose to perform a physical count on a yearly basis just to verify the data.

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Marketing Information System MIS Definition

1. According to Donald Cox and Robert Good, An MIS may be defined as a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions. This of course is a step beyond logistics systems, which handle inventory control, orders, and so forth.

This definition of Marketing Information System (MIS) is referred from a 1937 classic paper titled How to build a Marketing Information System, written by Donald F. Cox and Robert E. Good.

2. According to Prof. Mudit Katyani, MIS is a planned tactic to do analysis of mainly three system requirements viz., people, information, and technology. It is required at all levels of management in executing operational, managerial, and strategic decisions. Its intention is to design the procedures which give a comprehensive report in a timely manner.

Prof. Katyanis definition of MIS gives a broad coverage of its overall concept. The diagram of Marketing Information System, i.e. MIS is depicted below.

The diagram of Marketing Information System, i.e. MIS is depicted below.

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MEANING OF MIS
Marketing Information System, abbreviated as MIS, means to collect, analyze and supply marketing information to the marketing managers. The marketing managers use this information to take marketing decisions. MIS is a permanent and continuous process. Marketing information includes all facts, estimates, opinions, guidelines, policies and other data. This information is necessary for taking marketing decisions. This information is collected from both internal and external sources. It is collected from customers, competitors, company salesmen, government sources, specialized agencies, so on. MIS collects the marketing information from different sources. This information (data) is analyzed. Then, it is supplied to the marketing managers. The marketing managers use this information for taking marketing decisions. MIS also evaluates and stores the information. MIS uses modern technology for collecting, analyzing, storing and supplying information.

Marketing Information System (MIS): 1. Features of Marketing Information System MIS. 2. Components of Marketing Information System MIS. 3. Essential requisites of a good MIS. 4. Distinguish Between MIS and Marketing Research (MR).

The Functions of Management

The classical model identifies the following 5 functions as the parameters of what managers do:

1 Planning 2 Organizing 3 Coordinating 4 Deciding 5 Controlling

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Behavioral models are based on empirical evidence showing that managers are less systematic, less reflective, more reactive and less well organized than the classical model projects managers to be. For instance, behavioral models describe 6 managerial characteristics: High volume, high speed work Variety, fragmentation, brevity Issue preference current, ad hoc, specific Complex web of interactions, contacts Strong preference for verbal media.

Decision Making
Decision making is often seen as the centre of what managers do, something that engages most of a managers time. It is one of the areas that information systems have sought most of all to affect (with mixed success). Decision making can be divided into 3 types: strategic, management control operations control.

Strategic decision making:

This level of decision making is concerned with deciding on the objectives, resources and policies of the organization. A major problem at this level of decision making is predicting the future of the organization and its environment, and matching the characteristics of the organization to the environment. This process generally involves a small group of high-level managers who deal with very complex, non-routine problems.

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Management control decisions:

Such decisions are concerned with how efficiently and effectively resources are utilized and how well operational units are performing. Management control involves close interaction with those who are carrying out the tasks of the organization; it takes place within the context of broad policies and objectives set out by strategic planners.
An example might be where a transporter of agricultural products observes that his/her profits are declining due to a decline in the capacity utilization of his/her two trucks. The manager (in this case the owner) has to decide between several alternative courses of action, including: selling of trucks, increasing promotional activity in an attempt to sell the spare carrying capacity, increasing unit carrying charges to cover the deficit, or seeking to switch to carrying products or produce with a higher unit value where the returns to transport costs may be correspondingly higher. Management control decisions are more tactical than strategic.

Operational control decisions:

These involve making decisions about carrying out the " specific tasks set forth by strategic planners and management. The focus here is on how the enterprises should respond to day-to-day changes in the business environment. this type of decision making focuses on adaptation of the marketing mix, e.g. how should the firm respond to an increase in the size of a competitor's sales force? should the product line be extended? should distributors who sell below a given sales volume be serviced through wholesalers rather than directly, and so on. Within each of these levels, decision making can be classified as either structured or unstructured.

Unstructured decisions are those in which the decision maker must provide insights
into the problem definition. They are novel, important, and non-routine, and there is no well-understood procedure for making them.

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structured decisions are repetitive, routine, and involve a definite procedure for
handling them so that they do not have to be treated each time as if they were new.
Structured and unstructured problem solving occurs at all levels of management. In the

past, most of the success in most information systems came in dealing with structured, operational, and management control decisions. for example, that the Operations Manager for the National Milling Corporation is faced with a decision as to whether to establish buying points in rural locations for the grain crop. It soon becomes apparent that the decisions are likely to be made over a period of time, have several influences, use many sources of information and have to go through several stages. It is worth considering the question of how, if at all, information systems could assist in making such a decision. To arrive at some answer, it is helpful to break down decision making into its component parts.

4 stages in decision making: intelligence, design , choice and implementation.

Intelligence involves identifying the problems in the organisation: why and where they occur with what effects. This broad set of information gathering activities is required to inform managers how well the organisation is performing and where problems exist. Management information systems that deliver a wide variety of detailed information can be useful, especially if they are designed to report exceptions Designing many possible solutions to the problems is the second phase of decision making. This phase may require more intelligence to decide if a particular solution is appropriate. Here, more carefully specified and directed information activities and capabilities focused on specific designs are required.

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 Choosing among alternative solutions is the third step in the decision making process. Here a manager needs an information system which can estimate the costs, opportunities and consequences of each alternative problem solution. Implementing is the final stage in the decision making process. Here, managers can install a reporting system that delivers routine reports on the progress of a specific solution, some of the difficulties that arise, resource constraints, and possible remedial actions. Stages in the decision making process

Stage of Decision Making 1 Intelligence 2 Design 3 Choice 4 Implementation

Information Requirement Exception reporting Simulation prototype "What-if simulation Graphics, charts

Components of a marketing information system

"A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control". Figure 9.1 The marketing information systems and its subsystems

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Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of information. The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. a list of some of the information that can be derived from sales invoices.

Product type, size and pack type by territory Product type, size and pack type by type of account Product type, size and pack type by industry Product type, size and pack type by customer Average value and/or volume of sale by territory Average value and/or volume of sale by type of account Average value and/or volume of sale by industry Average value and/or volume of sale by sales person
Marketing research systems: . Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem., data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). Marketing intelligence systems: A marketing intelligence system is a set of procedures and data sources used by marketing managers to sift information from the environment that they can use in their decision making.
Unfocused scanning Semifocused scanning The manager, by virtue of what he/she reads, hears and watches exposes him/herself to information that may prove useful. Again, the manager is not in search of particular pieces of information that he/she is actively searching but does narrow the range of media that is scanned. For instance, the manager may focus more on economic and business publications, broadcasts etc. and pay less attention to political, scientific or technological media.

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Informal search

. For example, the marketing manager of a firm considering entering the business of importing frozen fish from a neighbouring country may make informal inquiries as to prices and demand levels of frozen and fresh fish. There would be little structure to this search with the manager making inquiries with traders he/she happens to encounter as well as with other ad hoc contacts in ministries, international aid agencies, with trade associations, importers/exporters etc. This is a purposeful search after information in some systematic way. The information will be required to address a specific issue.

Formal search

Marketing models: These models may be computerized or may not. Typical tools are: Time series sales modes

Brand switching models Linear programming Elasticity models (price, incomes, demand, supply, etc.) Regression and correlation models Analysis of Variance (ANOVA) models Sensitivity analysis Discounted cash flow Spreadsheet 'what if models

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Logistics Outbound Activities

Logistics are the ways in which raw materials are transformed into manufactured goods and then transported to the end consumer. Effective logistics ensures that there is a consistent and efficient train of goods and services that travel from point to point. This avoids shortages and ensures that customers are satisfied.

Definition

Outbound logistics focuses on getting products to consumers. Businesses must have established routes for transporting products, employees who transport these products, and the necessary equipment needed to move products.

How It Works

Assume that you own a bakery that delivers pastries to various stores across the state. Your business receives an order for 30 cakes in several neighboring cities. You must choose a shipping carrier. Additionally, the deliveries must be coordinated so that the recipients obtain the products within a certain time frame. The cakes are sent to a distribution center where your chosen delivery service ships them to their respective locations. Naturally, these services come at a price, which you must manage. All of these things involve outbound logistics.

Inbound Logistics

Outbound logistics cannot exist without inbound logistics. While outbound logistics dictate delivery and distribution, inbound logistics determine how certain goods and products come in. The factors and components are essentially the same. Coordinating deliveries, orders and material costs are all part of inbound logistics. Together, inbound and outbound logistics create a system of incoming and outgoing processes that impact the profits and costs that a business incurs.

Inbound Logistics Example

Using the bakery example, you must be able to make the cakes before you ship them. In order to do this, your business chooses a delivery system and distributor that sends

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you the necessary cake ingredients, such as flour, sugar, eggs and frosting. Communication with your provider and any associated fees are also part of inbound logistics.

Documentation

Businesses must document all outbound activities. When sending products from the warehouse to the distribution channels, businesses must deduct the shipped quantity from the warehouse..

Route Management

Logistics managers must determine the route that the delivery vehicles travel. In most cases, logistics will remain the same. But sometimes, traffic or road construction can force delivery vehicles to take alternative routes. The shipment either reaches the customer or reaches a location where products are consolidated for a larger shipment. The customer can be either a retailer or a direct consumer.

Proof of Delivery

The customer performs inventory and uses a proof of delivery instrument to confirm that all of the shipment has arrived. In some cases, the shipment might be damaged or stolen. All data must be collected and analyzed.

E-Commerce

E-commerce has lead to more efficient outbound logistics. Businesses can distribute electronic products instantly. Also, businesses can ship products directly to consumers through third parties. Businesses can more rapidly respond to changing demand, since they have customers that they know need products.

Modes of Transportation in Logistics

Logistics refers to the transportation of goods and merchandise -- raw materials or finished products -- from the point of production to the point of final consumption. Different modes of transportation like road, rail, water and air can be used for the effective management of merchandise. Every mode of transportation requires a different set of infrastructure, type of vehicles, technological solutions and regulations. All have different costs, service and transit times.

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1. Road
o

Road transportation is one of the most basic and historical means of transportation from one place to another. There are many different types of automobiles found on roads, although trucks and carriers typically are used for carrying or delivering freight. Road transportation incurs a relatively lower cost than other logistic forms and has a widely recognizable and flexible route.

Rail
o

Rail transport uses freight trains for the delivery of merchandise. Freight trains are usually powered by diesel, electricity and steam. using rail transport can be less expensive if freight is large and heavy and the pickup point as well as the delivery point is near the rail head.

Water
o

Water transport uses ships and large commercial vessels that carry billions of tons of cargo every year. Developed in the 18th century, steam engines have been a long favorite choice for making ships move, transport via water is considerably less expensive than other logistics methods, which makes it one of the most widely used choices of transport for merchandise.

Air
o

Merchandise is carried in cargo holds within passenger airlines and/or via aircraft designed to carry freight alone. Although air transport is more expensive than all other means of transportation, it is undeniably most time-efficient. Perishable merchandise like fruits and vegetables are mostly sent by air.

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What Is Market Demand Analysis?

Companies use market demand analysis to understand how much consumer demand exists for a product or service. This analysis helps management determine if they can successfully enter a market and generate enough profits to advance their business operations. While several methods of demand analysis may be used, they usually contain a review of the basic components of an economic market.

Market Identification

The first step of market analysis is to define and identify the specific market to target with new products or services. Companies will use market surveys or consumer feedback to determine their satisfaction with current products and services.

Business Cycle

Once a potential market is identified, companies will assess what stage of the business cycle the market is in. Three stages exist in the business cycle:

emerging, plateau and declining. Markets in the emerging stage indicate higher consumer demand and low supply of current products or services.

The plateau stage is the break-even level of the market, where the supply of goods meets current market demand.

Declining stages indicate lagging consumer demand for the goods or services supplied by businesses.

Competition

An important factor of market analysis is determining the number of competitors and their current market share. Markets in the emerging stage of the business cycle tend to have fewer competitors, meaning a higher profit margin may be earned by companies. markets

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enter the declining business cycle, companies will conduct a new market analysis to find more profitable markets.

The Methods of Market Analysis

Marketing research is based upon data collection, which in some cases is accomplished by research instruments such as surveys. The most common application of market analysis is tracking product sales. The analysis of the data can be accomplished through various statistical methods.

The Traditional Model

The traditional model of market research is based upon the micro-economic behavior of consumers, according to "Stated Choice Methods." This approach emphasizes the characteristics of goods that make them useful to consumers. Goods are used singularly or in combination to achieve some result that the consumer desires or needs.

Data Analysis

Data analysis can be used to study past buying patterns or to create models to project potential markets and buying habits. Empirical or mathematical models can be created. The data for these models can be characteristics of the product or price. The modeling technique can be relatively simple or quite complex. The shortcoming for a simple model is less accuracy. The complex models provide more accuracy, but require elaborate preparation and extensive data.

Scope of Market Analysis

the simple observation and recording of data. Companies and businesses use market analysis to predict the reactions of individuals to current products or services. In addition, they attempt to predict the reaction to the change of prices or the introduction of new products or services. The goal is to understand the acceptance or rejection of a product, service or price through the use of market analysis, and to plan accordingly.

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Analysis of Demand & Supply

Supply and demand is a fundamental concept of all economic insights and the foundation of the majority of modern economics. The basic theory states that the "market mechanism" of supply and demand will result in an equilibrium price for a good or service such that there will be equilibrium between the cost of the good to society as well as the benefit of the good to consumers. Economists who believe in an infallible market believe that the market will determine the optimum output of all goods, so long as the costs and benefits of the goods are "internalized" to the market, and prices are left free to fluctuate.

Supply

The supply and demand curves are both graphed with quantity "Q" on the "X" axis and price "P" on the "Y" axis. The supply curve shows the relationship between the quantity of a good that producers are willing to sell at a price. The supply curve, shown here in red, slopes upward because, at a generally higher price, suppliers will be induced to sell more. For example, if a paper products firm found that a certain type of paper now sold for twice the price it used to, the company might stock more of it. If a plastics company found out that plastics were selling for especially high prices this month, they might try to hire more help or increase production in other ways to take advantage of the opportunity.

Demand, and the Model using Curves

The demand curve, shown here in blue, shows how much of a good those consumers are willing to purchase as the price per unit changes. When the price per unit is high, consumers will likely find other goods and services that are cheap substitutes for the good or learn to do without entirely, meaning they will buy less; if the price is low

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compared to other goods, they will have the incentive to buy more compared to other goods. The demand curve and the supply curve can be manipulated by economists to experiment with different hypothetical situations, to find out the resulting price and quantity demanded.

How to Conduct a Market Analysis

A market analysis is an organized way of analyzing market opportunities, identifying consumer needs and developing new products or services to meet those needs. If you are an entrepreneur, conducting a market analysis is an important part of starting your business. Likewise, established businesses conduct a market analysis when introducing a new product or bringing an existing product into a new market.

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INTRODUCTION
Market Intelligence (MI), can be defined as the process of acquiring and analyzing information in order to understand the market(both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in the future. In other words market intelligence is the information, gathered and analyzed specifically for the purpose of accurate and confident decision making for determining market opportunity, market penetration strategy, and market development metrics.

OBJECTIVES

To provide market and customer orientation Identification of new opportunities To identify new trends in markets and competitors Early warning of competitor moves to enable counter measures Minimizing investment risks, to detect threats and early market trends To provide better customer interaction and to give intensified customer market view Information for better market selection & positioning and to understand and discover untapped or under-served potential To give quicker, more efficient and cost-effective information in order to avoid duplication of report acquisitions and expensive consultant work

Market intelligence' is the information relevant to a companys markets, gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics. Business Intelligence refers to skills, processes, technologies, applications and practices used to support decision making. Business Intelligence often aims to support better business decision-making and as such can be defined as a decision support system.

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Market intelligence includes gathering of data from the companys external environment, whereas the Business intelligence process primarily is based on internal recorded events such as sales, shipments and purchases. The purpose of incorporating Market Information or intelligence into the Business Intelligence process is to provide decision makers with a more complete picture of ongoing corporate performance in a set of given market conditions.

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What Is the Meaning of the Financial Information System?

.A financial information system is a collection of computer hardware and software tools that help a firm report accurate data.

Definition

A financial information system is the cornerstone of a company's financial accounting and reporting mechanisms. It includes all processes, databases and programs that allow an organization to record transactions and report operating data.

Components

The most common components of a financial information system are general ledgers, financial reporting databases and budgeting databases. Companies with multiple operations in various countries usually adapt these components to local conditions.

General Ledger

A general ledger is an accounting worksheet with two columns, credit and debit. A bookkeeper records transactions by debiting and crediting financial accounts, such as asset, liability, equity, revenue and expense.

Financial Reporting Database

A financial reporting database helps a company prepare accounting statements at the end of each month or quarter. These statements include a balance sheet, income statement, cash flow statement and equity statement.

Budgeting Database

A budgeting database indicates historical data and expected amounts, based on senior management's directives. It also includes cost limits and expense thresholds by which segment managers must abide when operating.

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What Is a Financial Information System?

A financial information system (FIS) is a business software system used to input and track financial and accounting data. The system generates reports and alerts that assist managers in effectively running the business.

Systems typically have three main modules. The financial accounting module records all accounting and financial transactions and produces financial statements. Funds management identifies funding sources and overall spending consistent with budgets. Controlling tracks revenue and expenses for each project or department.

What Are the Benefits of Financial Information Systems?

A financial information system (FIS) is charged with monitoring finances within an organization or business. It takes complex data and processes it into specialized reports, saving time and effort in dealing with business accounting. While financial information systems have many benefits, it should be noted that having an FIS in place can be costly and usually requires training for those people operating the system

Types of Financial Information Systems for a Business

Financial information systems gather, organize and streamline financial data to help businesses make better decisions. Depending on the size of your company and industry, there are various financial information systems available.

Accounting Software

A basic accounting software program can handle such tasks as invoicing and financial statement reporting but will be insufficient to handle the needs of a large corporation. Thus, accounting programs can be classified as mid-market, high-end and vertical systems. In general, a financial information system gathers, organizes and tracks accounting information.

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Mid-market

A mid-market financial information system can handle a business with between 10 to 100 employees and revenue between $10 to $50 million and is part of a bundled software package in an enterprise resource planning (ERP) program. ERP refers to the integration of all the processes and data used by a business into one system. Midmarket ERP software has robust database capabilities and provides sophisticated analytics. These systems are often scalable to meet the growth of the company. An example of a mid-market financial information system is SAP Business One. A low-cost, mid-market ERP program can cost $75,000.

High-end

High-end ERP software is usually associated with large and complex organizations. These systems are customizable to fit specific business requirements. A number of ERP software vendors, such as SAP, PeopleSoft, Great Plains and Oracle, provide high-end financial information systems. The average cost of one of these financial information systems can be as much as $500,000.

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Definition of a Stock Exchange Market

This organization of buyers, sellers, traders and brokers defines the activity of a stock market. The marketplace enables stocks, bonds, commodities and other financial products and services to be marketed and sold, under a unified market structure and under financial controls, oversight and regulations

1. History of the Stock Market

o

The history of the modern stock market can be traced back to the oldest exchanges in the world. In 16th century Amsterdam, the Dutch East India Co. became the first organization to sell shares, based on a need to raise capital for expansion and to fund the commodities it was bringing from the Far East. In 1607 a formal commodities exchange was commissioned by the City of Amsterdam to house trading. In 1698, John Costaing issued the first listing of stocks and commodity prices in a coffeehouse in London, the precursor to the first modern exchange.

Functions of a Stock Market

o

A stock market's primary role is to be a marketplace and a place for companies and organizations to raise capital and provide liquidity---i.e., a place to liquidate their holdings. Companies raise capital through the issuance of shares and debt, in the form of bonds. These shares are available to the public and are held by institutions and private investors.

Electronic Exchanges
o

The stock market was traditionally a paper-based trading system. The advent of electronic trading has led to the global connectivity of buyers and sellers. Electronic exchanges and electronic communications networks (ECN) trade Nasdaq stocks, connecting buyers and sellers directly and bypassing the traditional market makers. This has become an alternative way to trade and deal in stocks on the Nasdaq and increasingly on other exchanges.

Nasdaq

the Nasdaq has more trading volume than any other exchange in the world. Opened in 1971, the Nasdaq became the first completely electronic stock market. Even though it

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has a location in New York for marketing purposes, all of the actual trading is done electronically.

The Objectives of the Stock Market Exchange

1. Function of a Stock
o

explains that a stock is a share of a company. A shareholder, therefore, is someone who has claim to the company's assets and earnings. The objective for companies issuing stock on the market is raising capital for its business.

On one level, the objective of a stock market is to gather a group of people in one place who share a common goal: the buying and selling of stocks. The stock market is comprised of buyers and sellers who meet at a certain location to exchange goods at a given price. Benefits

Every broker on the stock market cites one primary benefit and objective of investing in the market: making money. The price fluctuation of a stock yields the opportunity to earn a profit. For example, a client requests their broker to buy five shares at $15 each of a company he believes is undervalued. If, later in the day, the stock price rises to $18 and he sells his shares, he has earned $15.

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Definition of Human Resource Information System

A human resource information system (HRIS) is software containing a database that allows the entering, storage and manipulation of data regarding employees of a company.

HRIS, or Human Resources Information Systems, are software solutions for managing all the quantitative aspects of managing human resources and payroll departments. Such tasks can be very complicated, especially if an business is very large and employs hundreds or thousands of people. HRIS software helps to track people and resources, conduct payroll calculations, manage responsibilities and do the accounting necessary to maintain an efficient department. As with any type of business software, there are a number of different software packages available covering different types of businesses and duties. HRIS systems may perform any of the following functions. Types of Software
o

HRIS systems come in a variety of software configurations. Some systems are hardcoded for local installation on a computer or network at the business' location. Other systems conduct business online as a Software as a Service (SaaS) system, usually over the Internet via web sites or Intranet systems. Finally, some application vendors may provide service as a blend of these types of software.

Modular Systems
o

Different software packages have different capabilities, and some vendors may offer different tiers of service. Basic services are generally provided as part of a package with additional functions being available as modules that can be plugged into the basic package of software.

The Advantages of an HRIS System

An HRIS, or human resources information system, is a computer program that allows companies to electronically store information about their employees. Being a computer program, HRIS eases the work of managing employee issues.

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Data Storage

An HRIS stores a large collection of databases on employees and employee issues. Databases are sets of data usually organized on a computer for convenient access. Such databases include employee names, their contact information, and the professional or non-professional training they received.

Ease of Data Update

an HRIS facilitates the updating of employee data, such as contact information or age. It removes the need to use erasers or correction fluid to remove outdated or incorrect data. With an HRIS, the person working on such data can easily delete the data and enter the corrected information.

Efficiency

An example is the processing of payroll and benefits information. Instead of depending on handwritten data for each employee and the laborious processing of this with pen, paper and calculators, a company can employ an HRIS to process the information much more quickly with few or no inaccuracies.

The Importance of a Human Resource Information System

The Human Resources Information System provides details on administration, payroll, recruitment, and training. This system is expected to deliver valuable results to your human resources division and your organization as a whole. It is an essential tool that aids management in making strategic decisions.

HRIS is usually fused with information technology to focus on human resource management. Human resource refers to the companys employees. This system consolidates computerized employee data into one data bank. It also updates prior and future decisions according to the companys human resource management plan. HRIS also makes it possible for online users to view an employees history with the company, personal profile and benefits.

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Types

There are two ways of implementing HRIS. The first is the administrative use. This refers to the storing and consolidating of employee records that is used for daily operation. Administrative HRIS is always integrated with information technology.

The second implementation is called Strategic HRIS which mainly aids the decisionmaking process. It involves using the administrative information to analyze an employees value to the company. This is then important to those involved in the recruitment and retention of people.

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Job Description: Definition & Purpose

A job description is a document primarily used by employers as an advertisement for prospective employees. It also can be used for determining compensation and performance reviews.

Definition of Job Description

A job description offers a definition of what is expected of employees. Job descriptions include main duties, needed skills and education, as well as working conditions, hours and occasionally salary.

Primary Duties

Job descriptions first explain the main or essential responsibilities of position. That may include customer service, pouring concrete or entering data into computers. The first part of a job description should provide as many details as possible.

Other Duties

Most job descriptions include "related duties," or responsibilities that may need to be handled in addition to the essentials of the position. These are typically duties that are not required but could present themselves during a work shift .

Skills and Experience

Job descriptions inform candidates which type of skills are needed for the position, such as typing or accounting, as well as how much prior experience is required.

Working Conditions

It is vital for a job description to consist of the conditions in which a worker is expected to perform. That may include a spacious and well-lit office, or working outside in the heat or rain.

Company Info

Many job descriptions give a brief summary of where the company has been and where it aims to go.

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What Is a Job Description?

It is important for job applicants and employees to understand the expectations of the companies for which they work. Employers communicate this important information through job descriptions. Every job description is different, and there could be serious legal and personnel-related issues without them.

What Is a Job Description?

Job descriptions are written by Human Resources professionals, hiring managers and supervisors to communicate the specific duties assigned to the roles within their organizations. The job descriptions of executive-level employees are often written and voted upon by an organization's board of directors.

What Is Included in a Job Description?

A job description includes the job title, expected duties, goals, objectives, minimum qualifications, education requirements and pay range for a specific employee's position. It also lists the job titles that appear above and below the position on the company's organizational chart.

Why Are Job Descriptions Necessary?

Job descriptions are designed to help companies operate efficiently and can help to reduce the amount of supervision needed for certain positions. They help companies define blurry lines of responsibility and are often used to settle legal proceedings or labor disputes.

Where Are Job Descriptions Found?

Job descriptions are often used in job advertisements as guides for job seekers. While employed, workers can usually obtain copies of their job descriptions from their supervisors or from the Human Resources department within their companies.

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Characteristics of a Job Description

A job description is written to provide a job seeker or employee with the main objective of a job, its purpose, responsibilities and required qualifications.

1. Function
o

A job description's function is allow a job seeker or employee to understand the requirements of a job and give standards for performance expectations. It also helps define relationships between departments and job supervisors in order to clarify an organizational structure.

Qualifications
o

Qualifications include skills and education required to ensure the job can be fulfilled successfully.

Role
o

The role gives an overall description of the job and enables the employee to understand the importance and how it fits into an organization.

Responsibilities
o

Responsibilities are specific tasks to be completed, often broken down to daily, weekly, monthly and yearly segments.

Significance
o

A job description not only helps analyze an organization's structure to ensure all required work is accomplished,but it provides the ability to accurately assess job performance to reward or improve an employee's quality of work.

How to Write Roles & Responsibilities on a Job Description

When you are writing a job description, such as for an employee evaluation or a job advertisement, include roles and responsibilities. Roles outline the essential functions of the job, and responsibilities detail tasks to be completed. Create a standard template for the job description, and include all information to describe the job in detail. This includes the job title, education required, skills, who the position reports to and supervises, roles and responsibilities.

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If someone is hired or promoted into the position and does not meet the requirements, the job description helps the employee and supervisor create goals and expectations for the employee to learn the required skills.
o

2 Receive input from hiring managers, supervisors and employees currently performing the roles and responsibilities. They have a thorough understanding of the scope of the work involved. Understand the tasks involved and how the position relates to the department and organization's success overall.

3 List roles in several brief statements. This includes the primary job function, departmental function and organizational function. This helps the the employee understand how the roles relate to the organizational operation and success.

4 When listing responsibilities, detail each task required to complete the job in a satisfactory manner. This includes daily job responsibilities and required tasks for the department and organization. Required tasks should also be given standards for satisfactory completion, such as time frames or accuracy. If a group of tasks should be completed on a daily, weekly or monthly basis, those tasks can be categorized under those time frames. If tasks require a level of accuracy, list the expectations for accuracy.

5 Compile, edit and create the job description to be informative and cohesive. Roles and responsibilities should allow employees to have clear metrics to perform their jobs satisfactorily and understand the expectations for completing each task. Avoid using broad task descriptions when listing responsibilities. If the job description is for a newly created position, work with employees and supervisors related to the position to continue to develop and revise the roles and responsibilities.

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Why Are Job Descriptions Important?

Job descriptions also include a position title as well as information about the people who report to the employee or the people to whom the employee reports. Job descriptions are critical for a variety of legal and business-related purposes in companies of all sizes.

1. Employees
o

Job descriptions help employees understand the tasks for which they are accountable so they can prioritize their work based on which duties are more critical than others. In addition, a manager can compare an employee's performance with the job description's standards and suggest specific tasks the employee can perform better, according to HumanResources.com. Managers also can use job descriptions to determine the areas they should focus on when training employees.

Compensation
o

Employers decide how much to pay employees by determining the monetary worth of their professional abilities and responsibilities, according to Salary.com. Job descriptions allow employees to reflect on their own work and ensure they are meeting a company's standards prior to undergoing a performance review with a manager. Regular performance reviews typically occur annually and can influence raises and promotions.

Laws
o

Job descriptions help companies make sure they abide by federal laws that physically protect employees on the job, such as the Occupational Safety and Health Act (OSHA). In addition, managers must ensure their job descriptions meet the standards of the Americans with Disabilities Act (ADA), which protects individuals with disabilities from discrimination, according to the U.S. Equal Employment Opportunity Commission (EEOC). Job descriptions also are important for proving that managers fulfill the requirements of the Fair Labor Standards Act, which focuses on such topics as overtime pay and minimum wage, according to the U.S. Department of Labor (DOL).

Investigations

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Job descriptions serve as legal evidence when an employee who feels he has been wronged files a complaint with a regulatory agency, such as the DOL or EEOC. A complaint with these organizations can result in an investigation. Job descriptions also are important if an employee chooses to take a case to a lawyer, in which case it might end up in court.

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