Page 39 - Information Management 3rd Edition

Chapter 2 – Information systems
2.10.4 The purchasing and supply-chain function
The manager bases the policy to be followed in the division on information he/she obtains from the information or information function. The information concerns the suppliers, delivery times, quality and scope of requirements, storage space, production needs and rate of consumption. These and other factors influence the cost and capital needs of purchases and stockholding. Based on quality of service, punctuality of delivery and quality of raw materials, the production function will also serve the purchasing function in selecting the right suppliers.
2.10.5 The human resources function
The human resources manager is in control of the most important resource in the business, namely people. The manager requires information from the different functions on employees’ matters (such as additional employees required) and training needs. According to the needs of the different functions, the human resources function will initiate employment, career development, career guidance, performance appraisal and training. To ensure uniformity in the business, the human resources function must also provide guidelines to all the other functions of the business on trade union relations and discipline.
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2.10.6 The financial function
The financial manager must be aware of the capital and financial needs of the
other functions so that the correct funds are available at the right time at the
lowest cost. This information is reflected in the position of debtors, creditors,
permission from their superiors.
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cash and stock. The financial manager must therefore know what the priorities
are for capital allocation projects. The financial manager must also be aware of
what levels of capital allocation can be made by the operating managers without
2.10.7 The external relations function
All the different functions must provide the external relations manager with information on opportunities as well as threats. Opportunities can be used to improve the external image of the business. Negative publicity, in turn, must be avoided when there are threats. Steps must be taken in good time to avoid the threats. The external relations manager can thereby attempt to maintain good external relations with the consumers, wholesalers, retailers, competitors, local, provincial and government authorities, financial institutions, trade unions and the community in which the business functions.
2.11 Conclusion
The continuing development in information technology and its applications bring in many opportunities for the improvement of information systems and the more efficient use of information. The latest technologies are also being used more and more by businesses to stay competitive, especially in the global market. Even businesses that have not used technology in the past are now using it.
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