Business report about construction information systems to RSE plc
Table of content
- The developemtn of human resource mangement
- Strategic/ problem analysis
- Proposed Solution
- Design & Acquisition
- The development of marketing information system
- Strategic/ problem analysis
- Proposed Solution
- Design & Acquisition
- Thediscussions of benefit of a weekly Company Newsletter
- The analysis of the improvement of sales order processing and purchase order processing systems.
The development of human resource management
Strategic/ problem analysis
As the intelligent report stated, RSE plc requires a human resource management system that could cover all divisions of their organizations on a global scope and some relevant personnel information such as name, address or telephone number for all employees within their organization. The intelligent report also pointed out that there are three main activities for universal human resource management, which are planning to meet the individual employee’s needs of operating within the business; the discovery of employees’ potentiality; and the control of all policies and relevant programmes about human resource management. In fact, the ultimate goal for human resource management is the effective and efficient use of human resource within the organization.
For company like RSE plc, since it operates in four countries, it is necessary to consider the timeliness of communication among its different branch offices. If without the support of proper human resource management, the head office is not able to monitor and supervise the management activities that happened overseas efficiently and effectively. Further, due to the company had already listed on the UK stock exchange, the board of directors is responsible for maximizing the value of shareholders, which means that human resource management must satisfy the requirement of shareholders. The system should be friendly used and capable of demonstrating that all employees are qualified and serve company. In addition, it could release strong and positive news to shareholders or even public, to identify the core values of company’s staff and how excellent performance they are conducting.
However, it is important to recognize the current situations of human resource mangement of RSE plc. RSE has one central office for human resource management in Maidstone, which consists of 35 memebers of staff. At the same time, RSE has 500 labour force at present but increasing around the world. It is reasonable to believe that there are some information deficits between central human resource management office and first line managers. In fact, individual managers knew their staff much more than central management, for example, when they implemented one training program, it is easy for individual managers to record details of training activities, but the central management office only learn the very basic facts of the training program since individual managers are very busy with their own tasks and they are willing minimize time and effort on those unimportant but necessary works. In addition, the information deficit problem between central management and first line managers could decrease the efficiency of operation activities, for instance, it might take many days to finalise a meeting arrangement for central office since they are not able to handle all information about holidays.
It is necessary to update the current human resource management system and make it more efficiently and effectively. The new system cannot be constructed without the support of internet and information technology. To minimize the information deficits among different departments or branches in terms of human resource management within the organization, it has to implement a variety of new management methods and policies in all levels of management teams. As a result, the new system should be highly information sensitive, friendly used, easy to learn and use, also, could be a platform to demonstrate all key job characteristics about individual employees, their training and development progress, short to medium term career planning and potential candidates for job promotion activities.
The new system should be constructed through a central control network platform, the data security and privacy issues also need to be considered seriously and carefully. In addition, it might create some channels for those branch managers to visit, monitor or download relevant information from host server of its central location, which might provide large convenient to managers outside the UK, or even, central management could help those managers undertake some activities about human resource management, such as compensation policies, promotion considerations or training arrangement.
Design & Acquisition
The design of human resource management information system should consider the inputs and outputs of system. Also, it needs to identify the user interface, such as the simplicity of information presentation, the feedback of information users or some corrective mechanisms about system. In the first place, the main purpose of the system for human resource management is for internal use, which means there is no need to worry about volume of database or network speed requirements too much. However, it is very important to pay attention on processing information, of particular, the timing of outputs or program modules, for instance, how quickly the system could demonstrate the performance of one individual employee or the progress of training program. In terms of security issues, it is vital to set up access control and user validation; back-up procedures, such as Backup site, RAID or Business continuity planning (Bocij P, et al. 2008). According to PWC information Breaches Survey (2010), the total cost of worst incident on average was between 280,000 and 690,000 pounds for large organizations. PWC also identified types of staff related incidents, for large organizations, about 80% of misuse of web access and 75% misuse of email access. All the facts above stress the importance of management information security.
The acquisition of the whole system should base on a tailored off the shelf purchase. Bocij et al (2008) defined that tailored off the shelf purchase is not only limited to direct purchase of a pre-written application, but it has specific programming development that required by individual company. In detail, the ICT network links of RSE plc should combine local area networks with wide area networks. The central management office and other individual office could implement LAN network within their own teams and facilitate communication among individual employee. At the same time, the WAN network plays a role that connecting different operating units within the whole organization. At last, the central management is responsible for the overall human resource management regular maintenance.
The development of marketing information system
As a multinational company, RSE plc should consider the marketing activities systematically and make reasonable and proper marketing policies. According to intelligent report of RSE plc, a strategic review suggested that RSE plc should pay particular attention on attracting overseas customers, since they are only source for RSE to expand further. One particular issue that needs to consider is the economic growth rate was about -0.23% in 2008 (UK National statistics), which means the overall business environment in UK is very bad for main street companies like RSE.
In fact, it is necessary to learn what kind of business that RSE plc is conducting. Still based on intelligent report, RSE has two main trading strands. One is to provide the professional business organizational equipment to market and buying or selling and fitting of shop fixtures and fittings as well. The other is to do auctions of bankrupt office equipment and fixtures and fittings only located in Kent, England. From the information above, it is clear to see that customer base for RSE plc, which are not the same as common retailing industry. Instead, RSE’s customers are usually from institutions, or the products and services provided by RSE are for commercial purpose. Based on analysis above, it is important to notice that the purpose of marketing activity for RSE is to minimize the communication cost or increase the popularity and loyalty consumers among those professional users. In other words, to create, maintain or enhance the customer relationship is the most important marketing strategy for RSE.
However, the marketing division of the company failed to attract overseas customers due to the outdated marketing methods and techniques. It was also failing to meet its performance standards, and the marketing division cannot be certain what these performance standards are. Further, due to the hierarchical organization structure, the operation of company would not be at most efficient and it creates incentives for employees to pursuit higher positions but not care too much about performance. It is because as the heads of divisions, very few responsibilities devolved but very high payment or non-monetary benefits could acquire. In addition, the operating cost for RSE is relatively in high level so that profit margins have been squeezed. It is reasonable to believe that some incurred costs are associated with inefficient marketing activities or undefined performance standards. In addition, the business activities are only computerized in certain areas, which means in some other areas, the techniques of business is relatively outdated. In fact, this kind of fact had brought serious issues to company. To those departments of organizations still rely on old manual systems and procedures, they cannot get benefits from information and communication technology (ICT) even though organization had made a significant initial investment on ICT improvement. For those implemented systems, it is possible that they are not fully integrated or use and understanding within the business organization.
To attract enough overseas customers, the adequate, efficient and effective marketing activities are the vital instrument to achieve that goal. Of particular, the success of marketing activity is largely determined by how powerful the marketing information system it is. In the first place, it is urgently for organization to make business computerized for all divisions. Then, the marketing resources should be concentrated and serve for one particular marketing goal in each period. The unified marketing performance standard should be made as soon as possible, which could be a good indicator to measure the performance of individual marketing staff and create adequate and fair incentive mechanism. In addition, the marketing information system should be combined with other information systems, such as transaction processing systems, management information systems and decision support systems. All sub systems are targeting towards to the specific requirements, but all sub systems are serving for the overall goals of company, which is to create maximum value for shareholders. At last, it is meaningful to consider some marketing creations. For RSE, it might be very useful to set up a electronic commerce platform by itself, or create specify positions, which are responsible for products/service promotions online. As Laudon (2009) argued that online marketplace provides a digital environment that facilitate communication between buyers and sellers, where they can meet, search for and display products and bargaining among each other.
The constriction of overall marketing information system needs to cost many time and effort, which means the initial investment could be reasonable large. However, the substantial benefits should be foreseeable. To achieve the business computerized, it is necessary to purchase enough computers, which contains notebooks, tablets or any other smart devices to individual sales person. Of course, for those are not able to use computer, it is necessary to do some training or reeducation program. In fact, the introduction of computer to all sales people is not limited to improve efficiency or smart management, but for strategic consideration. Since RSE would rely on overseas market heavily in terms of business expansion or new business opportunities, but the current marketing system fails to satisfy the goal. There are many reasons could explain that failure, but the most important reason could be lack of effective communication with overseas customers, they did not know what is RSE plc or they are afraid that overseas suppliers did not learn local situations properly compared to local suppliers. As a result, once all sales get device to access the Internet, they have much more opportunities to communicate with overseas clients or learn overseas business environment. In 2007, one report released by Interactive Media in Retail Group indicated that UK online retail sales exceeded four billion pounds in a month (http://www.theregister.co.uk/2007/08/21/e-commerce_sales_record/), which means it is necessary to learn Internet business models and make use of E-commerce under the current information age.
The discussions of benefit of a weekly Company Newsletter
The weekly company newsletter could be regarded as a combination of human resource management information system and marketing information system. As discussed above, two systems provide strong supports on company’s competitiveness and efficiency, but two divisions are operating independently, the communication between each other is necessary. For external departments, both marketing and management information are sensitive and important to read, the newsletter is to communicate facts among different divisions at most efficiently. Further, with the simplify contents but conveys the most important personnel and marketing information to all employees within the organization, it is easy to demonstrate company’s current situations and future directions to all staff and related parties. In other words, the weekly newsletter is the most simplified vehicle to extract key points from overall information system. From another points of view, the weekly newsletter could play an important role in guiding employees to know the company’s strategic direction, and enlarge the incentives for employees to become excellent staff since they not only get monetary benefits, but their personal “self esteem” could be achieved through wide disseminate.
The analysis of the improvement of sales order processing and purchase order processing systems
The current sales order processing system and purchase order processing systems were updated and computerized in 2003. It is not easy to identify that there is something wrong current system. However, as discussed above, when all business divisions are computerized and new marketing information system implemented within the organization, it needs to review the compatibility among different systems. In addition, due to lack of detail information about company’s current sales order and purchase order processing system, it is hard to judge whether it needs to be updated in short term.
Bocij, Greasley & Hickie (2008). Business Information Systems (4th edition), Harlow: FT Prentice Hall, Ch.7 -12
Information Breaches Survey 2010: technical report. UK: Price Waterhouse Cooper LLP.
Laudon KC & Laudon JP (2009). Management Information Systems (11th edition), New Jersey: Pearson Prentice Hall, Ch.10
The register, retrieved from http://www.theregister.co.uk/2007/08/21/e-commerce_sales_record/
UK National Statistics, retrieved from http://www.statistics.gov.uk/hub/index.html