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Administrative Systems And Their Use

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Organisations have unique goals, products and managers. This implies that the different administrative systems will have different information needs. These needs are internal, implying that it comes from within the company. Different management levels require different information needs. The information required will be determined by the type of decision that needs to be made and how swiftly this decision needs to be finalised.

External information needs imply that information is needed from outside the walls and limits of the organisation. External role players may also have different information needs, depending on their role and function in relation to the organisation. Internal information refers to data from within the organisation. This includes the different departments, functions, role descriptions and processes.

For all systems certain legislative boundaries are applicable. All are underlined by The Constitution of South Africa.

Marketing

Information is collected, analysed and supplied to the marketing managers to serve a specific purpose. With this information at their disposal, organisations can plan, implement and control marketing activities. Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation:

External

Not readily available. Raw data needs to be collected, analyzed and interpreted.  

  • Strategies of top management
  • Products/services and their characteristics
  • Budgeted and actual sales quantities
  • Marketing costs
  • Inventories
  • Sales and cash flows
  • Clients and potential clients (numbers, preferences, opinions, expenditure ability, geographical locations, markets, market sectors and needs)
  • Competitors (products, prices, marketing communication)

Purchasing And Supply Chain

The supply chain refers to the people, activities, information and resources that are involved in shifting a product/service from a supplier to a customer. Natural resources and raw materials are transformed into a product/service that can be delivered to the customer in a specific specialized, professional and functional manner.

Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation:

External

Not readily available. Raw data needs to be collected, analyzed and interpreted. 

  • Stock levels
  • Rate of consumption
  • Production quantities
  • Use of machinery
  • Existing and potential suppliers
  • Quality and prices of raw materials and equipment
  • Acquisition of costs
  • Quality and availability of similar products

Operations

Three interdependent imperatives are taken into account in the operations system of a company. These three-aspect work together to maximize the value harvested from the business assets.

The more recurring income an asset generates, the more valuable it becomes. The product that sells at the highest value and price, is considered to be the most valuable product in a business.

The more valuable a product becomes the more recurring income it generates. For example, a luxury car can be leased out at a higher rate than a normal car.

The intrinsic value and income-generating potential of an asset cannot be realized without a way to secure it. For example, petroleum deposits are worthless unless processes and equipment are developed and employed to extract, refine, and distribute them profitably.

Legislation pertaining to this Department includes the Companies Amendment Act (Act 3 of 2011).

Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation.

External

Not readily available. Raw data needs to be collected, analyzed and interpreted. 

  • Budgeted and actual production quantities
  • Operation costs
  • Use of equipment and staff
  • Stock quantities required
  • Stock levels available
  • Suppliers and potential suppliers
  • Different materials available
  • Different products available for production
  • Prices of these products 
Human Resources

This administrative system refers to the set of individuals who make up the workforce of an organisation. They are also sometimes referred to as the human capital of an organisation. Elements that form part of human resources include personnel sourcing and hiring, applicant tracking, skills development and tracking and benefits administration. The compliance with associated government regulations in South Africa includes the Labour Relations Act and the Basic Conditions of Employment Act.

Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation:

External

Not readily available. Raw data needs to be collected, analyzed and interpreted. 

  • Staff requirements
  • Leave
  • Salary scales
  • Conditions of employment
  • Training statistics
  • Training needs 
  • Different necessary legislation Acts
  • Trends regarding labour force and salaries

Finance

The roles and responsibilities of the finance department are far-reaching. Basic bookkeeping forms the basis, while financial information can also be provided to managers to assist them in strategic planning and decision-making. Day to day transactions, tracking and reporting, cash flow, monitoring the availability of funds and implementing credit and collection policies are also done by the financial department of an organisation. The legislation pertaining to this department includes the Public Finance Management Act of 1999.

Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation:

External

Not readily available. Raw data needs to be collected, analyzed and interpreted. 

  • Stock levels
  • Turnover
  • Financial ratios (sound financial management)
  • Capital sources
  • Interest rates
  • Capital movement
  • Investment opportunities
  • Creditors and debtors

Public Relations

The spread of information between an individual/organisation and the public must be managed. This system of managing said information is called Public Relations. The goal of the Public Relations Department is to persuade the public, investors, partners, employees and other stakeholders to maintain a positive attitude towards the organisation. The legislation that may refer to this aspect includes the Protection of Personal Information Act (Act 4 of 2013).

Two origins for the collecting of information are distinguished:

Internal

Readily available on the computer system or in the filing cabinets of the organisation:

External

Not readily available. Raw data needs to be collected, analyzed and interpreted. 

  • Products
  • Strategies for organisations to project the correct image
  • Interest groups
  • Comments on the image of the organisation