LEARNING
STUDY MANUAL
COPYRIGHT
Published by the International University of Management
Windhoek, Namibia
International University of Management 2009
No part of this publication may be reproduced, stored in retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without prior permission of the publishers.
BIS-3118 Information Systems for Strategic HR Policies II: NQF Level 8 Credits 20
3rd year Human Resource Management
TABLE OF CONTENTS:
pg.
traditional network
The World Wide Web has provided a standard framework for the presentation of
digital information over the internet and has created a new dimension in the
management and operation of commerce. The world wide web created an
environment in which new virtual companies can operate
Strategic information systems are those computer systems that implement business
strategies; They are those systems where information services resources are applied to
strategic business opportunities in such a way that the computer systems have an impact
on the organizations products and business operations. Strategic information systems are
always systems that are developed in response to corporate business initiative. The ideas
in several well-known cases came from information Services people, but they were
directed at specific corporate business thrusts. In other cases, the ideas came from
business operational people, and Information Services supplied the technological
capabilities to realize profitable results.
Most information systems are looked on as support activities to the business. They
mechanize operations for better efficiency, control, and effectiveness, but they do not, in
themselves, increase corporate profitability. They are simply used to provide management
with sufficient dependable information to keep the business running smoothly, and they
are used for analysis to plan new directions. Strategic information systems, on the other
hand, become an integral and necessary part of the business, and directly influence
market share, earnings, and all other aspects of marketplace profitability. They may even
bring in new products, new markets, and new ways of doing business. They directly
affect the competitive stance of the organization, giving it an advantage against the
competitors.
Some of the more common ways of thinking about gaining competitive advantage are:
1. Deliver a product or a service at a lower cost. This does not necessarily mean the
lowest cost, but simply a cost related to the quality of the product or service that
will be both attractive in the marketplace and will yield sufficient return on
investment. The cost considered is not simply the data processing cost, but is the
overall cost of all corporate activities for the delivery of that product or service.
There are many operational computer systems that have given internal cost saving
and other internal advantages, but they cannot be thought of as strategic until
those savings can be translated to a better competitive position in the market.
Database
A database is a structured collection of records or data that is stored in a computer
system. The structure is achieved by organizing the data according to a database model.
The model in most common use today is the relational model. Other models such as the
hierarchical model and the network model use a more explicit representation of
relationships.
the internal engineering of a DBMS, however, is independent of the data model, and is
concerned with managing factors such as performance, concurrency, integrity, and
recovery from hardware failures. In these areas there are large differences between
products.
A Relational Database Management System (RDBMS) implements the features of the
relational model outlined above. In this context, Dates "Information Principle" states:
"the entire information content of the database is represented in one and only one way.
Namely as explicit values in column positions (attributes) and rows in relations (tuples).
Therefore, there are no explicit pointers between related tables."
Security
Database security denotes the system, processes, and procedures that protect a database
from unintended activity.
Security is usually enforced through access control, auditing, and encryption.
Access control ensures and restricts who can connect and what can be done to the
database.
Auditing logs what action or change has been performed, when and by whom.
Encryption: Since security has become a major issue in recent years, many
commercial database vendors provide built-in encryption mechanisms. Data is
encoded natively into the tables and deciphered "on the fly" when a query comes
in. Connections can also be secured and encrypted if required using DSA, MD5,
SSL or legacy encryption standard.
Data warehouse
Data warehouse is a repository of an organization's electronically stored data. Data
warehouses are designed to facilitate reporting and analysis.
This definition of the data warehouse focuses on data storage. However, the means to
retrieve and analyze data, to extract, transform and load data, and to manage the data
dictionary are also considered essential components of a data warehousing system. Many
references to data warehousing use this broader context. Thus, an expanded definition for
data warehousing includes business intelligence tools, tools to extract, transform, and
load data into the repository, and tools to manage and retrieve metadata.
dictionaries for the data that can be accessed by a particular reporting and analysis
tool.
Informational access layer
The data accessed for reporting and analyzing and the tools for reporting and
analyzing data Business intelligence tools fall into this layer.
Decision Support
The importance of relevant information systems in decision support can be viewed
from:
Decision Support System ( DSS)- Which is a computer program application that analyses
business data and presents it, so that users can make business decisions more easily. It is
an informational application to distinguish it from an operation application that collects
the data in the course of normal business operation. Typical information that decision
support applications might gather and present would be:
Artificial Intelligence (AI) is the intelligence of machines and the branch of computer
which aims to create it. Major AI textbooks define the field as "the study and design of
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intelligent agents," where an intelligent agent is a system that perceives its environment
and takes actions which maximize its chances of success.
Artificial intelligence has been the subject of breathtaking optimism, has suffered
stunning setbacks and, today, has become an essential part of the technology industry,
providing the heavy lifting for many of the most difficult problems in computer science.
AI research is highly technical and specialized, so much so that some critics decry the
"fragmentation" of the field. Subfields of AI are organized around particular problems,
the application of particular tools and around longstanding theoretical differences of
opinion. The central problems of AI include such traits as reasoning, knowledge,
planning, learning, communication, perception and the ability to move and manipulate
objects. A
Artificial intelligence, by claiming to be able to recreate the capabilities of the human
mind, is both a challenge and an inspiration for philosophy. Are there limits to how
intelligent machines can be? Is there an essential difference between human intelligence
and artificial intelligence? Can a machine have a mind and consciousness? A few of the
most influential answers to these questions are given below.
Turings polite convention
If a machine acts as intelligently as a human being, then it is as intelligent as a
human being. Alan Turing theorized that, ultimately, we can only judge the
intelligence of machine based on its behavior. This theory forms the basis of the
Turing test.
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Artificial intelligence can also be evaluated on specific problems such as small problems
in chemistry, hand-writing recognition and game-playing. Such tests have been termed
subject matter expert Turing tests. Smaller problems provide more achievable goals and
there are an ever-increasing number of positive results.
The broad classes of outcome for an AI test are:
medical diagnosis,
stock trading
robot control
law
scientific discovery
Electronic commerce
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Systems development
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hh
Hardware
Software
Data
Procedures
People
Software and data part constitutes computer programming which deals with programs.
All the other five deals with systems development.
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Feasibility study
Requirements Specifications
Systems Design
Detailed design
Programming
testing
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maintenance
Strictly SSADM does not cover any of the project initiation, fact finding, planning and
implementation aspects involved in the SDLC. These tasks are undertaken in a parallel
and linked approach. Its purpose is to provide the analyst and designer with the tools and
procedures to enable the production of computer systems which provide what people
want, and which are robust and capable of amendments to cope with further changes.
SSADM consists of six stages:
Each stage is broken down into steps- which are named and have unique numeric
identifiers- and steps are further subdivided into tasks, which are identified by numbers
within the appropriate step.
Characteristics of Structured methods:(a) Decomposition:- Business systems are complex so breaking the system down into
more understandable subsystems for analysis and design is essential. (Context level DFD,
Level 1 and Level 2 DFDs)
(b) Limited elements:- Restricting the number of elements under consideration at any
time allows humans to focus their attention more clearly. It is suggested that a maximum
of seven variables at any one time is best for human consideration.
(c) Boundaries:- As, by their nature, business systems are complex, interactive,
interrelated and interdependent, clear boundaries must be established at the
commencement of any project otherwise misunderstandings will lead to aggravation and
mistrust between all parties involved with the project. (Terms of Reference (TORS)
(d) Analysis of process and data:- Data is the bedrock of an organizations IS and must be
carefully analyzed to ensure a successful project. Combined with the processing required,
both aspects require careful attention.
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with the active participation of involved users. The final three characteristics are
discussed in detail in the following sections.
IT Infrastructure
Infrastructure can be defined as the basic physical and organizational structures needed
for the operation of a society or enterprise, or the services and facilities necessary for an
economy to function. The term typically refers to the technical structures that support a
society, such as roads, water supply, sewers, power grids, telecommunications, and so
forth. Viewed functionally, infrastructure facilitates the production of goods and services;
for example, roads enable the transport of raw materials to a factory, and also for the
distribution of finished products to markets. In some contexts, the term may also include
basic social services such as schools and hospitals. In military parlance, the term refers to
the buildings and permanent installations necessary for the support, redeployment, and
operation of military forces.
In this article, infrastructure will be used in the sense of technical structures or physical
networks that support society, unless specified otherwise.
In information technology and on the Internet, infrastructure is the physical hardware
used to interconnect computers and users. Infrastructure includes the transmission media,
including telephone lines, cable television lines, and satellites and antennas, and also the
routers, repeaters, and other devices that control transmission paths. Infrastructure also
includes the software used to send, receive, and manage the signals that are transmitted.
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In some usages, infrastructure refers to interconnecting hardware and software and not to
computers and other devices that are interconnected. However, to some information
technology users, infrastructure is viewed as everything that supports the flow and
processing of information.
Infrastructure companies play a significant part in evolving the Internet, both in terms of
where the interconnections are placed and made accessible and in terms of how much
information can be carried how quickly.
Protecting people and Information
The core features of data protection could most easily be derived from the eight guiding
principles of data protection, i.e. data held on personnel should be:
Obtained lawfully
Processed for specific purposes
Relevant and not excessive
Accurate and up to date
Kept only as long as needed
Available to subject
kept secure
Not to be transferred to countries where data protection is not adequate
Organizations that adopt effective data protection policies and procedures will gain
the following benefits:
Protection from legal action
Increased trust and openness in the workplace
Employees will be encouraged to respect the personal data of customers
Better housekeeping through the updating and accuracy of records
Compliance with global business practice
Key points determining how managers act concerning protection of employees privacy
should be derived from the eight guiding principles of data protection, i.e. data held on
personnel should be:
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Obtained lawfully
Processed for specific purposes
Relevant and not excessive
Accurate and up to date
Kept only as long as needed
Available to subject
Kept secure
Transferred only to countries that provide an adequate level of data protection.
The design of information systems must take account of these guiding principles/key
points. It should feature the following points:
Security of access to data held on individuals
Facility for individuals to view data held about them, resulting in increased trust and
openness in the work place
Accuracy checks and ability of individuals to update personal details
Data must be held as input to specific information processes.
Top tips for protecting your personal information
Remember what you tell people online can affect your safety offline
Reality check would you want parents, teachers or employers to see your
profile?
Retaining people has emerged to be the single most critical issue in lieu of the
enormous opportunities spun off by the market. The new economy has given rise
to a culture of working in teams. Today no job in the knowledge industry can be
performed in isolation. Companies are now designing compensation structures,
which rewards team performance in addition to individual performance. In this
regard, advances too in technology have been realized with ICT being a major
achievement.
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The Work Time gathers standardized time and work related efforts. The most advanced
modules provide broad flexibility in data collection methods, labour distribution
capabilities and data analysis features. Cost analysis and efficiency metrics are the
primary functions.
The Benefits Administration module provides a system for organizations to administer
and track employee participation in benefits programs. These typically encompass,
insurance, compensation, profit sharing and retirement.
The HR management module is a component covering many other HR aspects from
application to retirement. The system records basic demographic and address data,
selection, training and development, capabilities and skills management, compensation
planning records and other related activities. Leading edge systems provide the ability to
"read" applications and enter relevant data to applicable database fields, notify employers
and provide position management and position control. Human resource management
function involves the recruitment, placement, evaluation, compensation and development
of the employees of an organisation. Initially, businesses used computer based
information system to:
Online Recruiting has become one of the primary methods employed by HR departments
to garner potential candidates for available positions within an organization. Talent
Management systems typically encompass:
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The significant cost incurred in maintaining an organized recruitment effort, crossposting within and across general or industry-specific job boards and maintaining a
competitive exposure of availabilities has given rise to the development of a dedicated
Application Tracking System, or 'ATS', module.
The 'Training Module' provides a system for organizations to administer and track
employee training and development efforts. The system, normally called a Learning
Management System if a stand alone product, allows HR to track education,
qualifications and skills of the employees, as well as outlining what training courses,
books, CDs, web based learning or materials are available to develop which skills.
Courses can then be offered in date specific sessions, with delegates and training
resources being mapped and managed within the same system. Sophisticated LMS allow
managers to approve training, budgets and calendars alongside performance management
and appraisal metrics.
Many organizations have gone beyond the traditional functions and developed human
resource management information systems, which support recruitment, selection, hiring,
job placement, performance appraisals, employee benefit analysis, health, safety and
security, while others integrate an outsourced Applicant Tracking System that
encompasses a subset of the above. Examples of popular HRMS are PeopleSoft HRMS,
SAP-HR Human resource management (HRM) is the strategic and coherent approach
to the management of an organisation's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives of the
business. The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes
involved in managing people in organizations. In simple sense, Human Resource
Management(HRM) means employing people, developing their resources, utilizing
maintaining and compensating their services in tune with the job and organizational
requirement.
Features
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Organizational management
Personnel administration
Personnel management
Manpower management
Industrial management
But these traditional expressions are becoming less common for the theoretical discipline.
Sometimes even industrial relations and employee relations are confusingly listed as
synonyms, although these normally refer to the relationship between management and
workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as basic
business resources, such as trucks and filing cabinets. The field takes a positive view of
workers, assuming that virtually all wish to contribute to the enterprise productively, and
that the main obstacles to their endeavors are lack of knowledge, insufficient training, and
failures of process.
HRM is seen by practitioners in the field as a more innovative view of workplace
management than the traditional approach. Its techniques force the managers of an
enterprise to express their goals with specificity so that they can be understood and
undertaken by the workforce, and to provide the resources needed for them to
successfully accomplish their assignments. As such, HRM techniques, when properly
practiced, are expressive of the goals and operating practices of the enterprise overall.
HRM is also seen by many to have a key role in risk reduction within organizations.
The goal of human resource management is to help an organization to meet strategic
goals by attracting, and maintaining employees and also to manage them effectively. The
key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the
management of an organization's employees, and the overall strategic direction of the
company .
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The basic premise of the academic theory of HRM is that humans are not machines,
therefore we need to have an interdisciplinary examination of people in the workplace.
Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and
organizational psychology, industrial relations, sociology, and critical theories:
postmodernism, post-structuralism play a major role. Many colleges and universities
offer bachelor and master degrees in Human Resources Management.
One widely used scheme to describe the role of HRM, , defines 4 fields for the HRM
function:
Change management
Employee champion
Administration
However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive than strategically
proactive partners for the top management. In addition, HR organizations also have the
difficulty in proving how their activities and processes add value to the company. Only in
the recent years HR scholars and HR professionals are focusing to develop models that
can measure if HR adds value.
Business practice
Human resources management comprises several processes. Together they are supposed
to achieve the above mentioned goal. These processes can be performed in an HR
department, but some tasks can also be outsourced or performed by line-managers or
other departments. When effectively integrated they provide significant economic benefit
to the company.
Workforce planning
Skills management
Personnel administration
Time management
Performance appraisal
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The reality, however, is very different. The HR department plays a vital role in ensuring
the smooth running of an enterprise most importantly by tracking and analysing the
time-keeping and work patterns of the workforce, allowing management better
information on which to form strategies.
The importance of human resources has not gone unnoticed by the software industry.
There is now a wide range of applications available to aid the HR department in their
tasks, making possible the automation of certain tasks and aiding in the organisation of
many others.
HRM software systems (from vendors such as Oracle and Ascentis) are broadly defined
by the four basic responsibilities of the HR department, and as such typically contain
standalone
modules
to
address
the
needs
of
each
responsibility:
Payroll Module:
The payroll module greatly reduces the workload of the HR department by automating
the payroll process, allowing HR to ensure that payroll functions are completed on time
and without errors.
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At its most basic level the payroll module is supported by the manual entry of
timekeeping and attendance data from paper-based timesheets submitted by the
workforce. More advanced systems track employee timekeeping through automatic
systems, connected to either a clocking in system or a tracker connected to the desktop
computers of the employees.
Once attendance data is fed into the system, the payroll module automatically calculates
payment amounts and various deductions such as income tax before generating
paychecks and employee tax reports.
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data
through
to
the
basic
demographic
data
of
employees.
The management module allows HR personnel to effectively manage the Human Capital
Pool (HCP) available within the enterprise, in that it keeps track of the training and
development of the workforce and the skills and qualifications of each employee.
Advanced HR management modules can also automate the process of application for
positions by capturing application data and entering it to a relevant database.
Benefits of HRMS
While these modules each provide benefits to the HR department itself, the applications
also aid the enterprise as a whole.
HRM systems convert human resources information into a digital format, allowing that
information to be added to the knowledge management systems of the enterprise. The
result of this is that HR data can be integrated into the larger Enterprise Resource
Planning (ERP) systems of the enterprise.
In analysing enterprise wide resource usage this data can prove invaluable. Data related
to the time usage of the workforce can enhance the decision making abilities of
management, allowing the HR department to form an integral aspect of strategy
formation for the enterprise as a whole.
Applicant and employment management
People are the key resource of any business and the recruitment and the selection
procedure is central to ensuring that an organization has the right people for the job.
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increase racial tension and benefit the more privileged people within minority groups at
the expense of the least fortunate within majority groups
Compensation
Compensation has several definitions;
Total benefits of employment: the total value of an employee's salary, benefits, and
other payments
Definition: 1.
Money in payment for loss: an amount of money or something else given to pay for
loss, damage or work done.
Definition 2.
Giving of compensation: the act of giving money or something else to pay for loss,
damage or work done.
Benefits
Employee benefits and benefits in kind (also called fringe benefits, perquisites, perqs
or perks) are various non-wage compensations provided to employees in addition to their
normal wages or salaries. Where an employee exchanges (cash) wages for some other
form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most
countries, most kinds of employee benefits are taxable to at least some degree.
Some of these benefits are: housing (employer-provided or employer-paid), group
insurance (health, dental, life etc.), disability income protection, retirement benefits,
daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security,
profit sharing, funding of education, and other specialized benefits.
The purpose of the benefits is to increase the economic security of employees.
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The term perks or perks is often used colloquially to refer to those benefits of a more
discretionary nature. Often, perks are given to employees who are doing notably well
and/or have seniority. Common perks are company cars, hotel stays, free refreshments,
leisure activities on work time (golf, etc.), stationery, allowances for lunch, andwhen
multiple choices existfirst choice of such things as job assignments and vacation
scheduling. They may also be given first chance at job promotions when vacancies exist.
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Enhanced company image, e.g., conducting ethics training (not a good reason for
ethics training!)
Human resource planning is the term used to describe how companies ensure that their
staff are the right staff to do the jobs. Sub topics include planning for staff retention,
planning for candidate search, training and skills analysis and much more.
The terminology used in OSH varies between countries or states, but generally speaking:
A risk is a combination of the probability that a particular outcome will occur and
the severity of the harm involved.
Hazard, risk, and outcome are used in other fields to describe e.g. environmental
damage, or damage to equipment. However, in the context of OSH, harm generally
describes the direct or indirect degradation, temporary or permanent, of the physical,
mental, or social well-being of workers. For example, repetitively carrying out manual
handling of heavy objects is a hazard.
Risk assessment
Modern occupational safety and health legislation usually demands that a risk assessment
be carried out prior to making an intervention. It should be kept in mind that risk
management requires risk to be managed to a level which is as low as is reasonably
practical.
This assessment should:
The calculation of risk is based on the likelihood or probability of the harm being realised
and the severity of the consequences.
The assessment should be recorded and reviewed periodically and whenever there is a
significant change to work practices. The assessment should include practical
recommendations to control the risk. Once recommended controls are implemented, the
risk should be re-calculated to determine of it has been lowered to an acceptable level.
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Generally speaking, newly introduced controls should lower risk by one level, i.e, from
high to medium or from medium to low
Workplace hazards are often grouped into environmental hazards, physical hazards,
chemical agents, biological hazards and psychological issues.
Payroll taxes
Federal/national, state/provincial, and/or local agencies require employers to perform
various payroll functions, such as withholding amounts from employees' compensation to
cover income tax, social security, and Medicare.
Payroll taxes are levied by government agencies on employees' wages, tips, and other
compensation. The amounts withheld by employers from employees' pay for federal
income, social security, and Medicare taxes are considered to be trust-fund taxes, because
the money is held in a special trust fund for the government. Amounts withheld for state
and local income taxes are held in trust for the state and local governments.
Payroll warrants look like checks and clear through the banking system like
checks, but are not drawn against cleared funds in a deposit account. Instead they
are drawn against "available funds" that are not in a bank account, so the issuer
can collect interest on the float. In the US, warrants are issued by government
entities such as the military and state and county governments. Warrants are
issued for payroll to individuals and for accounts
Paycheck
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To balance the pros and cons of home country and host country evaluations,
performance evaluations should combine the two sources of appraisal
information.
Employ innovative reward plans that recognize employee contributions and grant
enhancements.
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Lay off workers in a smooth way explaining facts to unions, workers and other
affected groups HR Managers today are focusing attention on the following-
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MODULE QUESTIONS
1. Effective human resource management is vital for the achievement of full
organizational objectives.
(a) Discuss the ways in which effective human resource management can contribute to
Organizational success and achieve competitive advantage.
(b) Explain, with the help of examples, how a personnel information system can support
the human resource management processes.
2. Handling data concerning staff in an organisational context requires at least ethical
practice, if not legal regulation.
(a) Explain the principles that should guide the human resource manager in handling data
on people in a personnel information system. Give reasons for your views.
(b) Show how the application of these principles can improve the operation of personnel
information systems and benefit the organization.
3. Information technology generally, and artificial intelligence specifically, can greatly
assist an organisations employees to develop themselves by acquiring new knowledge
and skills.
(a) Explain the concept of artificial intelligence.
(b) Show how expert systems can be used to assist in the settlement of an organisations
dispute.
(c) Explain other ways by which personnel information systems might assist the
spreading of knowledge in an organisation.
4. (a) Write briefly short notes on the following:
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7. (a) Discuss the principles of planning and control as applied in personnel information
systems, e.g. generic budgetary planning and control systems; the potential for analysis,
planning and monitoring policies for employee salaries, incentive payments and fringe
benefits.
(b) Briefly describe the systems development life cycle (SDLC). Discuss its strengths
and weaknesses.
8. (a) Explain in outline the role of executive information systems (EIS) for the strategic
management of human resources, e.g. collection and analysis of labour market data for
forecasting of staffing requirements in support of corporate goals.
(b) Discuss and evaluate the competitive advantage gained through effective personnel
information management.
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