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May, 2016
CERTIFICATE
This is to certify that Fisiha Addis has done the study on the entitled of ‘MANAGEMENT
INFORMATION SYSTEM ON THE BETTERMENT OF MANAGERIAL DECISION
MAKING’’ no other research in this title at the same organization. under my supervision and
submitted to Addis Ababa University in partial fulfillment for the award of the Degree of BA IN
MANAGEMENT.
Date_______________
DECLARATION
I hereby declare that the research paper titled MANAGEMENT INFORMATION SYSTEM FOR THE
BETTERMENT OF MANAGERIAL DECISION MAKING submitted by me is based on actual and
original work carried out is me. Any reference to work done by any other person or institution
or any material obtained from other sources have been duly cited and referenced.
Date______________
ACKNOWLEDGMENT
Firstly, I greatly thank God and his mother St. Marry for his forgiveness,
charity and strength has given to me. Secondly, I would like to say thank you
again and again our family, supported and helped from the beginning to end of
our 15 years staying on educational journey, morally, financially and
materially.
Thirdly, I would like to express our sincere and wholehearted gratitude to our
advisor instructor Dr.D Saravanan who is very much concernedly advised to
complete my research from the beginning to the end and we extremely
appreciate his constructive correction to give genuine professional technical
comments and suggestion. Additionally, I also wish to express my gratitude to
Dashen Bank S.C in Addis Ababa city manager and employees who contribute
to this paper by providing accurate information. I also extended, to express my
heart full thanks, to our friends who support me by giving necessary material
for the preparation of this study.
ABSTRACT
The study was conducted on Dashen bank S.C in Addis Ababa city.
Both primary and secondary data was used to accomplish the study.The
researcher uses the primary data collection method by using questionnaires to
managers and employees of Dashen Bank S.C in Addis Ababa and also uses
secondary data collection method was used to collect information about
Dashen Bank S.C, such as books and journals; sample method was used as
sampling technique since the population is high and in order to collect
accurate and reliable information.
Contents Page
ACKNOWLEDGMENT................................................................................................................i
ABSTRACT....................................................................................................................................v
LIST OF TABLE..........................................................................................................................vi
CHAPTER ONE...........................................................................................................................1
1. Introduction............................................................................................................................1
2. LITERATURE REVIEW........................................................................................................6
CHAPTER THREE....................................................................................................................18
3. RESEARCH METHODOLOGY.........................................................................................18
CHAPTER FOUR.......................................................................................................................19
4.1. INTRODUCTION...........................................................................................................19
5.1. Conclusion.....................................................................................................................30
5.2 Recommendation..........................................................................................................31
Reference....................................................................................................................................32
APPINDEX..................................................................................................................................33
LIST OF TABLES
Page
CHAPTER ONE
1. Introduction
In 1970 managers realized that they could use computer based information
system for planning control and decision making and problem solving rather
that fast for reporting transaction this new type of information system or
management information system .
The finding of the study would have help initial insight for other researchers
who would have interest to go through a detail study for future.
In order to the stated objective of the study primary and secondary data are
use. The secondary is collect from written materials on information technology
and information system like books, articles, papers and documents which were
prepared by dashen bank of Ethiopia and other organizations. Furthermore
internet source are also referred for a better illustration. To supplement these
material primary data would be collected by conducting interview with
managers and employees by direct observation and by conducting information
discussion. In order to alleviate the stated problem I would be use quantitative
technique of data collections.
The basic limitation of the study would be finance time and energy in order to
accomplish this paper. It is the main constraint since to compare and have
detailed investigation on the role of management information system.
CHAPTER TWO
2. LITERATURE REVIEW
Information is data that would be process into a meaningful format for use by
decision makers with an organization. Information is a vital route to an
important ingredient in day to day operators and it is also useful and a means
of communicating with another organization and individual, (Lucas, p-64)
Decision of this level arousals based on financial analysis money being the
common write of measurement of resources the control system are
performance reports relating to profit cost or revenue centers. (O’Brien, 1990)
Many takes are subject to programmed control that is the relationship between
input and output is clear in specified. However processes are carried out by
people need to be motivated to perform routine tasks to consistently high
standards. (Mesfin, 2008 p-8 and O’Brien, 1993).
Decision can be brake in to three main types, those which can be made
following a given set of role in (structural decision) those which can be made
by using some predetermined role and procedure is (some structural) and
those which can only be made subjectivism is (unstructured decision).
This sort of decision can only be reach subjectively and example will be
tethering of new employees. They will be fit in company ethos and existing
practice at what price shall a product be sale high price (low volume or low
price/ high volume.
There lie between structured and unstructured decision some part of the
decision making the process are programmable (Structured) other are not. For
example deciding how much stocked to maintain for product will involve an
analysis of prior usage (programmable) but this mass than have to be adjuste
unknown demand. (James 1990, p-10)
As you have seen each of the management level within an organization used
different types of information system. The individual system is focused on the
need of management within each level. And so they have different objectives,
contain different information, and tend to present that information in different
ways. The summery of these systems can now be providing as followers
operational managers by tracking the individual sales in voice. Cash receipts
and species good sale to one customer, etc will be finding within this system.
All the data will be collection in to the transaction processing system. (Lucas,
1990).
Strategic level finals the strategic level help management address more long
term issues and problems such as the overall strategic direction and products
or the production of five years plans the executive support system will provide
management with the summarized strategic information needed to make
decisions (O’Brien, 1990, p-351)
It may have access to external databases such as news and stock exchange
dates in order to give up to date information that may have on impact on the
organization.
Because executive support systems deals with strategic decision that are
difficult to plan for in advanced. It is unusual to find any routine report bring
product to on paper. The need for executive information systems will came
from the way in which executive use and demand. (Mesfin, 2008, p-29)
Information detail with different data furthermore the executives often that
after relatively short period of time reporting against the original criteria is no
longer relevant. In effect the need for executive information systems forms the
short coming of management information system. Most management
information system produce voluminous printed reported at fixed intervals
executives service used their reports because fund that these do not help
Answer the question that concern senior management, (O’Brien, 1993, p-152)
Whilst the image of senior executives is that of people concerned with longer
time strategic issues. The reality is that they are often very concerned about
the short – term performance of the organization. It is monitoring of this kind
of information which executive information system are typically put to the
nature of the ways in which an executive may every system particularly suits
this kinds of reporting need is sales are down month. He/she can quickly find
out the area which requires action this help the executive keep the organization
within budget. (Mesfin, 2008, p+22)
The main aim of an office automation system (OAS) is to capture and then
castrate knowledge around an organization. The system does not necessarily
assist production of new knowledge. But helps facilitate this process offering,
communication word processing spread sheets and other application that all
employees within and organized will use, (Mesfin, 2008 p-14)
These tasks are routines but are made more efficient by the use of computers.
Once data will be put on to the computer it can easily be manipulate and use
to produce additional information. For example, sales ledger may have been
computerized to ease recording of sales ledger may have been captured by the
TPS, the MIS and other strategic systems can then use it. There will often be
direct links form the TPS to the MIS. With the letter effectively summarizing
from the TPS so show totals for weeks, months or even years the
summarization process allows trends to be established and help with strategic
planning (O’Brien; 1990, p-9)
Expert system can be used as variety of different levels at the simple’s level.
They can give factual answer to technical question and at more complex level.
They can suggest how a decision should be made recommending course of
action. (O’Brien James, 1990)
MIS has a significant role in the success of service and other organization
according to O’Brien, the role of MIS is classified in to three. (O’Brien, 1990, p-
196)
Information system plays this role by providing reports and critical information
to managers, they also give advice and interaction support for manager.
III. Strategic role of information system
3. RESEARCH METHODOLOGY
The study was descriptive types of study, because would have qualitative and
quantitative nature, the situation in terms of characteristics and gives a verbal
or numerical picture of study.
Dashen Bank S.C in Addis Ababa city has total number of 38 employees would
be take sample among the total and the study would take 38 employees of the
large population, since the population is manageable thus, the researcher uses
census sampling technique.
The data type that would be used in this research paper was both qualitative
and quantitative data type, and the study larger depends on primary data type.
For this study the data would be collated from both primary and secondary
sources of data, in which the primary data would be collected by using
questioners, interview in both open ended and close ended question and
secondary data would be gathered from manual of the bank document.
The data gained from the study or collected from the respondent would be
analyzed using the statically methods, like tables, percentages, and frequency.
CHAPTER FOUR
4.1. INTRODUCTION
The above table 4.1, Shows that the most of employees of the Dashen Bank
were male, 28(66.67%) and the rest of the employees were female 14(33.33%)
so we can conclude that the employee of Dashen Bank is almost male
employees. The above table also shows that the most of employees of Dashen
bank S.C in Addis Ababa are at the age of between 18-25(22.22%), between26-
33(33.33%) and between34-41(44.45%). Based on these data most of the
workers are between 34-41 in Dashen bank S.C .They are relatively young to
perform their work effectively and improving their knowledge with regarded to
age. With regard to education level of the respondent, the above table showed
that 22(61.11%) have BA degree holders where as 14(38.89%) have master
holders. This indicates that most as the bank employees are adulated and have
a good understanding at the role of MIS.With regard to work experience of
respondents the above table showed that below five years 12(33.33%), 6-10
years 14(38.89%) and 11-15 years 10(27.78%) thus from the above data it can
be that the respondents of the bank have a good money experience.
As it is indicated in table 4.2., 16(44.44%) replied that the role of MIS for the
decision making is very high, 10(27.78%) replied that high, 6(16.67%) replied
medium and 4(11.11%) replied low. then the above data shows that the role of
management information system for decision making is very high. As it is
indicated in table 4.2, 6(16.67%)of respondents replied very high enough,
16(44.44%)of respondents replied that high, 11(30.56%)of respondents replied
moderate enough and 3(8.33%) of respondents replied that low
Then the above data shows that the respondents getting for decision making is
mostly high and moderately enough decision making performed based on full of
information to be accepted the decision with other, people using that half
information for decision making leads to last accepted of the decision by other.
Table 4.5, the conduct of information system for the development of project?
No Item Measurement Number percentage
Who conduct the Internal staff 10 27.78%
External staff 8 22.22%
information
Both 18 50%
development Total 36 100%
project?
Source of survey 2016
As regard to conduct information development project 10(27.78%) of the
respondents said that the information development projects conducted by MIS
most employees were internal staff, 8(23.81%) of the respondents said that the
information development project are conducted by external staff and 18(50%)
said conducted both internal& external staff. The finding shows is Dashen
Bank there is a shortage of understanding which activity is performed by who
information development project should be known and skilled man power
which related to the activities.
Table 4.6, the relationship between unification system with other unit
No Item Measurement Number Percentage
1 How look the delivers of Very good 10 27.78%
Good 18 50%
service to custom with Medium 8 22.22%
Poor -
regards of the time,
Total 36 100%
place and persons?
Source of survey 2016
As shown in table 4.6 the collected data from the respondents shows that from
the total responses 10(27.78%) of respondents shows that very good, 18(50%)of
respondents shows that good and 8(22.22%)of respondents shows that
medium. The above data shows that the service delivery of Dashen Bank at the
right time, place and person is good.
Table 4.7, the relationship between information system expert and other units
No Item Measurement Number Percentage
1 How much smooth is Highly positive related 9 25%
Positive related 14 38.89%
the relationship
Medium related 8 22.22%
between experts and Poor related 5 13.89%
other user units? Very poor related -
Total 36 100%
Source of survey 2016
As show in table 4.7 the relation with information system experts and with
other units the respondents replied shows that 9(25%) very high positive
related, 14(38.89%) shows that positive related,8(22.22%) show that medium
related and 5(13.89) show that poor related this shows there is positive
relation with information system experts and other user units so this indicate
it create that attractive work environment and it have contributions for better
bank service delivery.
Total 36 100%
Good 19 52.78%
Medium 5 13.89%
Poor - -
Very poor - -
Total 36 100%
Good 20 55.55%
Medium 5 13.89%
Poor - -
Very poor - -
Total 36 100%
Good 17 47.22%
Medium 4 11.11%
Poor - -
Very poor - -
Good 17 47.22%
Medium 3 8.33%
Poor - -
Very poor - -
Total 36 100%
With regard to completeness the response shows that 11(30.56%) very good,
the response show that 20(55.56%) good. This data shows a good practice for
completeness of MIS service delivery to enhancing service delivery acceptance
but it needs some improvement, as we can see from the table the performance
or completeness also similar to the above timely and accuracy MIS is
performance in complete manner to support other activity.
With regard to consistency the data shows that 15(41.67%) of the response
show that very good, 17(47.22%) of the response show that good and 4(11.11%)
of the response show that medium. This data shows a good practice with
regard to consistency that is 47% of the respondents.
With regard to relevance the data show that 16(44.44%) of respondents show
that very good, 17(47.22%) of the respondents show that good and 3(8.33%) of
respondents show that medium. this data shows that the relevance between
very good and good are almost have similar performance.
The Dahsen Bank S.C shows improve the performance of effective level of those
MIS elements.
The finding of the study shows that in Dashen Bank S.C have the following
common problems among of them are delaying in processing this is one of the
most problem using information on time, delay communication this is the
second problem that information not facilities the communicate result for poor
performance often redundancy is also another problem result costly by using
time usage.
As it is indicated in the above table 4.11, 18(50%) respondents replied that very
high commitment, 10(27.78%) respondents replied that high commitment 5
(13.89%) of respondents replied that medium and 3(8.33%) of respondents
replied that poor. So the above data shows the management commitment on
MIS is very high improvement.
As indicated the above table 4.12 Concerning on the respondents show that
18(50%) of respondents replied very high approach, 14(38.89%) of respondents
replied that high approach and 4(11.11%) of respondents replied that medium
approach. Thus the table shows that the approach of employees for MIS is very
high. The management of the bank should be supported and motivated the
employees to change the very high approach of employee for MIS into practical
application to improve the performance
The respondents mention the basic obstacle for the implementation of MIS.
Data redundancy
Unskilled man power
Problem of decision making
Delay of fast response
Improper manage of information
-Mention the role of MIS for the betterment of managerial decision making
The respondent mention the following roles of MIS for better decision making
For support management decision
For consistency
For excellent customer service
For customer satisfaction
For development of modernization
For create loyal customer
For honesty and integrity
For effective performance
For positive relationship between the bank and customer
For support bank operation
CHAPTER FIVE
Based on the analysis and interpretation made of the previous chapter the
following conclusion and recommendation are made.
5.1. Conclusion
Based on the objective that are identified in chapter one of the following
conclusion are obtained. There is a shortage of skilled manpower in
management information system on processing and organizing of information.
The managing and controlling performance of management information system
is mostly of medium level.
Based on the finding of the study the following recommendation has been
forward:
As the researcher see from the finding the bank has no adequate training
program so it should improve the development and training program
effectively, so as to become competitive
The study have been to recruit a qualified and competent employee so as to
increase the organization loyalty and effectiveness for customer, as well as
there must be would linked information system within employees
The bank should be addressed main useful and update information for
users.
Top manager should effectively supported and maintained the employees
moral so as to enhance their imitativeness towards their work environment
In short the management of the organization should have to avoid the main
obstacles for the successful running of the organization like
Skilled manpower
Problem of decision making
Delay of fast response
Shortage of training about MIS
Improper managing of information
To improve the main role of management information system
To support bank operation
To support management decision making
For two way communication
Review and update the system
To create users awareness
To create loyal customer
For excellence customer services
Reference
Davis G.B, and Olson M.H (1985) management information system conceptual
foundation structure and development New York megraw. Hil
Lucas HC, jr (1990), information system concept for management New York
win
Waston, HJ corroll, A,B and mann RI. (1987) information system for
management planotx business
Ledered, A,L and medelow, A.L (1988) convineing top management of the
strategic potential of information system MIS quarterly December
525-34
Post, Anderson, 20031; management information system 3rd edition, New York
APPINDEX
Purpose of questionnaire
Therefore, your genuine, frank and timely response are quiet vital to determine
the success of this study.
General instructions
No need of writing your name
Put check mark () on the box provided for your choice
Give short and brief answer for open ended questions
Part 1: Socio – demographic information about the respondents
1. Gender Male Female
2. Age-year 18-25 26-33 34-41
3. Education qualification
Yes no
10. Delivers of service at the right time at the right place by the right people is?
11. How much smooth relationship between information system and other
units?
12. In your opinion how does the Dashen Bank practice the five elements in
MIS in delivering its services?
Very good Good Medium Poor Very poor
Timely
Accuracy
Completenes
s
Consistency
Relevance
16. The attitude of managers to the employees for the use of MIS is?
19. Mention the role of MIS for the betterment of managerial derision making
____________________________________________________________________________________?