380 Human Resources Management for Public and Nonprofi t Organizations
diverse sources to help assess broader strategic questions. Strategic human
resources management fi gures into these decisions. When considering the
privatization of services, in the case of public sector agencies, or when con-
sidering a merger, in the case of nonprofi t agencies, labor costs, including
pensions and benefi ts, are usually signifi cant concerns. Having access to
timely and accurate information can provide the necessary perspective.
All organizations and departments need to be aware of their revenue
and expenditures. All organizations have an accounting function that is
responsible for maintaining and managing the agency ’ s fi nancial records,
its receipts, disbursements, and payroll expenditures. An accounting
information system enables a manager to keep track of the fi nancial assets
and fl ow of funds. It provides a record of transactions for disbursements,
receipts, and other expenditures. Most nonprofi ts, regardless of size, have
an accounts receivable system to keep track of money.
For example, nonprofi ts must keep track of the grants they receive from
public and private sources. They must track their donations, gifts, and contri-
butions, which may be cash or noncash. They need to monitor their fees for
services and have a system in place for billing and collections. Some nonprof-
its may have income from investments, membership dues, and special events
that need to be accounted for. The information system keeps track of the
outstanding bills and can produce a variety of reports. The system supplies
information to the general ledger system, which tracks the agency ’ s total cash
fl ow. The fi nancial reports that can be gleaned from the accounting informa-
tion system can be used to make immediate and strategic decisions.Information Systems Design
The design of information systems often
becomes entangled in the politics of the
organization. Because information systems
potentially change an organization ’ s struc-
ture, culture, politics, and work, they are often
resisted when introduced. Consequently, to
ensure a successful introduction of information technology, the process
must be planned. These factors should be considered in systems plans:The environment in which the organization functions
The structure of the organization: its hierarchy, specialization, and
standard operating procedures•
•
The design of information
systems often becomes
entangled in the politics of the
organization.