HR currently generates circa 60,000 – 70,000 documents per annum. There are around 1400 employees’ files stored and each file has approximately 200 pages. One of the custom attributes of this system will be ‘category’, which will enable documents to be differentiated at a high level by both the system (i. e. for retention policies and filing) and users alike (i. e. for searching).
This will save time in tracking the document that is needed for that employee. See Figure 2 for the categories. As you can see the above figure shows the section of the employee structured file and the amount of documents stored within that file on average.
Therefore if a HR employee needs to find an employee’s contract, they would look on the system under that employee’s surname, see the above structure and search under the category ’employment’ as that is where their contract will be. Bee (2005) stated the principle objective of any information system is to satisfy the demand for information needed by the organisation to achieve its objectives. Thus, the key issue for any information system is what information is actually needed, and the starting point for understanding what information is required and for the realisation that this is critically dependant on e.g.
who requires the information and for what purpose.Therefore, the objectives set at the beginning of this report should be followed and referred to throughout the project. Figure 3 shows what requirements are needed to be processed into the MIS system to ensure that you have the carried out the evaluation outputs by investigating the value-added statistical process. Therefore, it shows what needs to be input through the scanning system to have the successful outputs. According to Bee (2005) statistics is the classification, tabulation and study of numerical data.It is concerned with scientific methods for collecting, organising, summarising, presenting and analysing data as well as drawing valid conclusions and making reasonable decisions on the basis of analysis. As well as narrowing the area of disagreement, statistics can be a stabling force, dispelling rumour and uncertainty, helping solve arguments arising from individual cases or circumstances, by providing a factual foundation to debates and decisions, which may otherwise be dominated by subjectively based theories and opinions.
In the scanning system, all figures and calculations are approximate as they may vary if this project takes place. According to Hannagan (1999), statistical decision making is not a process for a arriving at a foolproof answer. Managers should be aware that such a process does not exist. However, it could be argued that statistical decision making does involve methods and techniques which can help in decision making, planning and control. Therefore, Company will need to ensure this planning and management happens if Company are to proceed with the scanning system.As you can see from the above figure 6, the document scanning system in total is going to cost Company i?? 29,550. 00 to implement.
The average rate of return is a measure of an investment’s profitability. Therefore, if Company paid back the scanning system over, say 5 years it would cost them i?? 5,910. 00 per year, within this time the amount of time lost per employee collecting a file 5 times a day would be: 5 files per day x 5 minutes to collect the file = 25 minutes x 260 working days per year = 6,500 x 5 pay back period = 32,500The above calculation shows that over a pay back period of 5 years, 32,500 hours would be lost per employee. This incredible sum is astonishing and such a system in operation would save a massive amount of wasted time and energy within the HR department and would therefore focus on HR employees concentrating in delivering work and their job requirements instead of wasting time in collecting a file that they require. A simple managing information system would have all the information the HR employee needs from their computer system.
Furthermore, it could be argued that not all statistics are reliable (Bee 2005). Statistics are often manipulated to support an argument and figures can be manipulated in order to enhance opinions. In the case of the scanning system, these figures are estimated figures as no such system is in operation that has realistic and true figures.
Although based on the figures throughout this report, it shows that Company would benefit from this investment and having such a system, will provide a faster access mechanism and store employees’ files electronically which will save valuable and important time.In conclusion, through analysis of cost and time saved, it would greatly benefit Company having such a system. In the initial beginning it is an expensive system to input and have in place, however considering the rate of return it would be a massive improvement for Company as more time will be spent in actual productive work rather than having to do the menial task of collecting an employee’s file from another location which takes unnecessary time.In terms of competitive advantage and the development of organisational performance, by implementing such a system would reduce time wasted and can increase the production of workloads, hopefully setting a target nearer 80,000 documents per year instead of 60,000 to 70,000 which it is at present, with an improvement of at least 10%. Throughout this report it shows the costs saved per day, over the amount of implementing such a system.
Initially, the cost of instigating this type of system is expensive, however after the amount of time wasted per day is incredibly high, the system will be cost effective in the pay back period of 5 years. This type of system will have all the information from the employee’s computer screen. It is essential that a well designed managing information system is implemented so that accurate and thorough data can be collected and maintained, quickly and efficiently.