An organization functions according to a specific set of goals. For this, they might have diverse functional units. These units make the organization its whole. Each unit has a distinct task to perform. Each functional unit of an organization works effectively with the help of information systems. Every functional unit of an organization works effectively with the help of information systems. In this article, we will discuss each of these briefly.
What is a functional unit of an enterprise?
A functional unit of an organization is part of the organization that does a specific function. In simple terms, it can be called department or a functional area of an organization. There might be multiple functional units in an enterprise.
List of functional units in an organization
Following are functional areas that are common in any organization or business.
- Accounting and finance
- Human resources
- Engineering or product development
- Manufacturing
- Marketing
- Sales
- Distribution
- Customer service
- Information technology
What is an information system in an enterprise?
Any hardware, software or people providing or generating information for the enterprise computer or server from information system. Enterprise networking, enterprise software and enterprise data together constitute enterprise computing. Enterprise software is a group instructions, according to which, the computer can perform business operations.
Different types of information systems in an organization
There are different information systems in an enterprise software. In this article we will list out the information systems that are common for any organization. They are
- Accounting system – It records and saves all transactions that happen in a functional area or the whole organization.
- Financial system – Financial system in a functional unit or department helps manage, set budgets and analyze investments.
- Human resources information system (HRIS) – This system manages any, or all human resources functional unit such as hiring, promotions, salary revisions, performance appraisals, etc.
- Employee relationship management system – This can be considered part of human resources. This system manages communication between employees and the business to ensure better relationship between employees and the organization.
- Computer-aided design (CAD) – Computer-aided design deals with designing or engineering the product by making use of computer and a special software called (CAD).
- Computer-aided engineering (CAE) – Computer-aided engineering (CAE) involves testing the design of the products by using computers and special software.
- Computer-aided manufacturing (CAM) – Controlling the production equipment or machinery by using computer software is computer-aided manufacturing (CAM).
- Computer-integrated manufacturing (CIM) – Computer-integrated manufacturing (CIM) is the process of combining or integrating different methods or operations of manufacturing processes.
- Material requirements planning (MRP) – Monitoring, controlling the materials or processes used in manufacturing process using a computer software constitutes MRP.
- Manufacturing resource planning II (MRP II) – This is the extension of the MRP. It adds an extra feature of scheduling along with the features that MRP offers.
- Sales force automation (SFA) – Also called “sales automation software”, sales force automation (SFA) is the software that automate the activities related to marketing such as inventory control, sales processing, etc.
- Distribution system – Distribution system is associated with the stock in the warehouse, and manages ordering and shipping of purchases, etc.
- Customer interaction management – Customer interaction management is the software that help manage and keep track of daily interactions with customers.
For optimal performance of an enterprise, there should be proper coordination between the the functional units.
