CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Management Information Systems are the
instrumentation of an organization.
Their interfaces to the human controllers of business serve as the
‘dials and gauges’ that allow these controllers to ‘read off’ the current state
of their organization. They may record
and model all or part of the organization’s activities and provide indicators
of any actual or predicted change in state.
Of most value, they record or predict the rate, direction and timing of
such changes.
Information guide decision makers in
reaching a valid conclusion and making an informed decision conclusion and
making an informed decision regarding every area of their responsibility. Without adequate information, resources will
not be located and converted into desirable finished goods aimed at a specific
target market for profit. Since no
business entity can survive or remain relevant without effective information,
business data must be systematically cap0tured, analyzed, quantified,
comp-oiled, and shared and made accessible in order to enjoy the maximum value
of information. A critical feature of
any information system should be the ability to not only access and retrieve
data, but also keep the archived information as current as possible (Moga,
2007).
Oladejo (2007) described MIS as a system
using formulized procedures based on data from both internal and external
sources, to enable decision makers make timely and effective decisions, for
planning directing and carrying out the activities for which they have appointed. This connotes that MIS is a system
responsible for the collection, processing and communication of define data in
order to enhance prompt decision making.
Viewing MIS as data processing or a computer based system would amount
to a production oriented view of MIS which places more emphasis on production
but generation management involvement makes the system distinctly different
from data processing.
From Wikipedia, the free encyclopedia
identifies that Management information system (MIS) provides information that
is needed to manage organizations efficiently and effectively. Management information systems involve three
primary resources people, technology, and information or decision making. Management information systems are distinct
from other information system in that they are used analyze operational
activities in the organization.
Academically, the term is commonly used
to refer to the group of information management methods tied to the automation
or support of human decision making e.g. decision support systems, expert
systems, and executive information system is presently the organization nervous
systems which respond to opportunities and avoid threats. It is widely acknowledged that firms with the
best and most effective information systems are those that have clear and ell
thought of information strategy (Harizanova, 2003).
Paul S. Licker (1997) emphasized that
management information system (MIS) is an integrated user + machine system that
provides information to support operations, management analysis, and
decision-making functions in and organization. An MIS contain hardware,
software, procedures, data, and people, each component is as important
influences the others. The MIS should
relate to their goals of the organization.
MIS is an integrated, computer based,
user – machine system that provides information for supporting operations and
decision making function. It is a system
using formalized procedures to provide management at all levels in all
functions with appropriate information, based on data from both internal and
external sources, to enable them to make timely and effective decisions for
planning, directing and controlling the activities for which they are
responsible. (Lucey 1991 Management Information Systems).
When a business event occurs, whether it
is the issuing of an invoice, the ticking over into a new financial quarter or
staff attendance at a training course the event provides the raw for the
MIS. The event may be record, appropriately
stored, transmitted, combined with other raw materials and ultimately presented
in some appropriate way.
All the managerial functions planning,
organizing, leading, and controlling rely on a steady stream of information
about what is happening at, and beyond, and organization. Only with accurate and timely information can
managers monitor progress toward than goals and turn plans into reality. If managers cannot stay “on track”
anticipating potential problems, developing the skills to recognize when
corrections are necessary, and then making appropriate corrections or
adjustments as they progress their work may be both fruitless and costly.
Information systems enable managers to
control how they do business. If you
were to look at a new Toyota in a show
room, you would find the car has a computer-generated sticker attached to the
window to display the pricing and Environmental Protection Agency (EPA)
information. The Toyota dealer probably
has a computerized inventory system to tell you if a car is available with the
options you want perhaps even the color you have dreamed about. Should you need financing, the bank computer
can help the sales person cheek your credit quickly and close the sale. From
the largest corporation to the modest home town auto dealer, the computer plays
a vital part in the control of business operations.
Managers at all levels are finding that
computer based information systems provide the information necessary systems
(MIS) are rapidly becoming indispensable for planning, decision making, and
control system will be. With information systems playing such an important role
in managing organization, it has become crucial for managers to understand how
these systems should be designed, implemented, and managed.
The successful MIS supports a business
long range plans, providing reports based upon performance analysis in areas
critical to those plan, with feedback loops that allow for titivation of every
aspect of the enterprises including recruitment and training regimens. MIS not only indicate how things are going,
but also why and where performance is failing to meet their plan.
Management information system provides
data and information to help the management to make strategic decision (top
management decision) and at other levels of management. Management information system provides the
means through which the enterprises activities are monitored, controlled and
executed while information’s are distributed to management employees, and
customers. Management information
system provides and enhances the overall decision making process.
To be successful and MIS must be
designed and operated with due regard to organization and behavioral principles
are well as technical factors.
Management must be informed enough to make an (Systems analysts, accounts,
operations researchers and others) must become more aware of managerial
functions and needs so that, jointly, more effective MIS are developed. Management do not know enough about
management in order to provide relevant information for the mangers to serve.
1.2 Statement of the Problem
The study is concerned with an
investigation based on the problems that are facing corporate organization
managers on management information systems the problems are as follow:
(i) The managers were not well thought of
information strategy
(ii)
There is no strong understanding of both management information system and information technology by the
mangers.
1.3 Research Questions
This research work
would attempt to provide answers to the following questions:
(i) To what extent has management
information systems helps in
supporting corporate goals and objectives
(ii) To what extent can mangers evaluate an
information system
(iii) To what extent does management
information system police, process aids internal control of an organization
(iv) To what extent can manger understand a
business system so that it can be improved to meet the competitive challenges
that have to be faced
(v) To what extent does MIS helps the real
gainers and losers when an information system is installed.
1.4 Objectives of the Study
The purpose of this
research is to investigate and examine the following specific objectives of
this research:
(i) To examine if management information
system application exist to adequately supports corporate goals and objectives
(ii) To examine how can a manger evaluate an
information system
(iii) To find out how management information
system policies, process, aid and internal control are adequate
(iv) To determine if a manager understand a
business system so that it can be
improved to meet the competitive challenges that have to be faced
(v) To find out who are the real gainers and
losers when an information system is installed
1.5 Research
Hypotheses
In order to provide
answers to the problems stated and for the purpose of drawing valid conclusion
on management information system and corporate organization in First Bank of
Nigeria Ltd, Enugu. The following hypotheses are formulated:
(1) H0:
Management information systems has no influence on supporting corporate goals and
objectives
H1:
Management information systems has no influence on Supporting corporate goals and objectives
(2) H0:
Management information systems has no influence on managers in evaluate an
information system
H1:
Management information system has influence on mangers in evaluate an information system
(3) H0: Management information system has no impact
on policies, process aids in internal control of an organization
H1:Management information system has impact on polices, process aids in internal control of an
organization
(4) H0:
Management information system has no impact on manager understand a business system so that it
can be improved to meet the competitive challenges that have to be faced
H1:
Management information system has impact on manager understand a business
system so that it can be improved to meet the competitive challenges that have
to be faced
(5) H0: Management information system has no
influence on real gainers and losers when an information system is installed
H1: Management information system has influence
on real gainers and losers when an
information system is installed
1.6 Significance
of the Study
This study would be of
importance to individual, firms, industry, and even the government. Basically,
the significance of the study is as follows:
(i) It helps to ensure consistency and
accuracy
(ii) To help the organization structure
themselves to allow easy flow of information
(iii) It
aims at helping organization in evaluating alternative long term and short term
planning, preparation of reports and analysis
(iv)
This study also aims at changing the structure of the way people do
their jobs
(V) The
study will help to promote good image of the company, social responsibility and
customer’s confidence
1.7 Scope of the Study
First Bank of Nigeria
Ltd., the organization in which this work is based is indeed a large one. The study will focus attention on
characteristic of an effective management information system in the
organization. The researcher would also
make recommendation and suggestions for future researches.
1.8 Operational
Definition of Terms
Below lays the
definition of some important terms used in the process of this study. This is done for easy reading of readers.
MIS:-
Management Information System is the combination of human and computer-based
resources that results in the collection, storage, retrieval, communication and
use of data for the purpose of efficient management of operations and for
business planning.
Communication:-
Communication is a process of passing information from one person to
another. It is the process by which
meanings are perceived and understanding reached among human beings. It includes in addition to written or spoken
words gestures, facial expression, posturing of the body and even silence.
(Adeyanju, H.I. (PhD) 2010)
Computer:-
A computer is an electronic device which is capable of accepting data as input,
processes the data based on predefined instruction known as program and give
out information as output. The two major
component of a computer system are: Hardware and Software (Kaka O.A & Rufai
K.I. 2008)
Data:- This is the term used
to describe the basic facts introduced
as the input to a system e.g. rate of pay and hours worked by an
employee
Management:-
Management can be described as the process of making prudent use of an
organization’s resources in order to achieve predetermined goals. In order words effective management entails
the ability of the manger to plan, organize, direct, and control both human and
material resources within any given system (Peleyeju Joshua O. 2008)
Information:-
Information guide decision makers in reaching a valid conclusion and making an
informed decision makers in reaching a regarding every area of their
responsibility. Without adequate
information, resources will not be located and converted into finished goods
aimed at a specific target market for profit.
System:-
A system is a set of two or more element, such as people, things and concept,
which are joined together to attain a common objective. A system consists of a number of smaller
systems, which are called sub-systems.
A system is a set of element forming an activity or processing procedure
seeking a common goal by operating on data in a time reference to yield
information.
Message:- A message consists of symbols e.g. spoken
word, written words, signals, signs etc which are understood by the sender(s)
and the receiver(s) which have certain meanings.