The Effect of Management Information System on Organisational Performance
AIMS AND OBJECTIVES OF STUDY
The major objective of this research/project is to provide relevant information as regards the impact of management information system on organizational performance and also to add to the bank of knowledge where any similar write-up-exists.
The objective could be broken down as follows:
- Examine whether MIS has any impact on organizational performance.
- Determine whether MIS has any impact on management decision making.
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in two sub-headings:
- Conceptual Framework
- Theoretical Framework
- Chapter Summary
The Nature Of Management Information System
Kroenk (2012) views management information system as the development and use of information systems that help companies achieve their goals and objectives. According to Lucey(2005), management information system, is a system that convert data from internal and external sources into information and communicates that information in an appropriate form to managers at all levels in all functions to enable them make timely and effective decision for planning, directing and controlling the activities for which they are responsible. While Parson (2012) saw management information system, as an information system that uses data collected by transaction processing system and manipulates such data into reports for managers for making routine business decisions in response to structured problems”. That is, “MIS is characterized by the production of periodic reports that managers use for structured and routine tasks”. “The most important goals of an management information system, is to increase the efficiency of managerial activity; different levels of management have different needs and MIS can produce scheduled reports or ad hoc reports”. Management information system according to Lucey (2005) has become synonymous with computer; yet, both concepts are not exactly the same because management information systems existed in the life of pre-modern organizations long before the advent of the computer technology. This argument is substantiated by the fact that computer was not in use when organizations kept records using traditional and manual mechanisms to manage information. Furthermore, Samar and Rawan (2018) also noted that Management Information System (MIS) is an effective tool to achieve the objectives the business organizations covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as decisionmaking, costing a product, service or a business-wide strategy. They added that Information technology and information system are two joined concepts, but they are different .They maintained that Information technology (IT) refer to the hardware, products, methods, inventions, and protocols that are used for the purpose of producing and processing information. It is important here to identify that the computer has been accorded much credit for increased interest in management information systems because it eases and facilitates data processing as well as adds new vistas of interesting career options in MIS (Ottih, 2005). In his study, Obi (2003) suggested that management information system is indispensible in the area of decision-making as it can monitor by itself the instability in a system, verify a course of action and take action to keep the system in control. This is true as posited by Liu and Young (2007) who observed and talked about key information models and their relationships in business decision support in three different scenarios. They proved that global businesses are in advance due to the Enterprise Applications System provided by modern IT tools such as Enterprise Resource Planning, Knowledge Management Systems and Customer Relations Management to enhance the efficiency and effectiveness of the Decision Making process. Thus, to improve and achieve success in the organization ,organizational capability and enhance its level of competition in the global market, corporate managers and strategic decision makers should understand the dimensions of the Information Management, and clearly outline and develop the resources in example of human, technological, and internal operations, among others,, and manage them well across the organizational frontiers. However, with faster access to needed information through management information system,managers are able to make effective and timely decisions regarding investments, employment, new products and many more as it concerns their organizations. Lahar et al (2015) posited that management information systems is an organized, diverse and automated information system that is concerned with the process of gathering ,storing and transferring relevant information to support the management operations in an organization. He added that this information data is distributed among the various departments in an organization. Given today‟s global marketplace and increasingly complex economy, management information system is critical to many organizations‟ survival, and business managers consistently rank it among the top IS management issues (Whittington, 2014). Brazilian managers assume that information technology/information systems (IT/IS) can strengthen corporate performance (Meirelles, 2016), and Brazilian firms spent 7.6 percent of their revenue on IT/IS solutions to address and adapt to economic turbulence. From the Analysis of research made by Awais et al. (2012) shows that over the past few decades, companies all over the world started to notice a great need for information systems in the business field. It was hardy possible to ignore the significance of benefits and a possibility to increase business performance through such an investment. According to Predrag et al (2012) Information is a set of classified and interpreted data used in decision making and it has also been defined as “some tangible or intangible entity which serves to reduce uncertainty about future state or events” . He added that Information is essential for the endurance of all organization in the global and competitive market to make strategic decision whether small , medium or big organizations and this, is only provided by a sound management information system whose information is of Quality, Flexible, timely, and accessible to the strategic decision makers of the information . To manage successfully in this competitive environment, managers require to implement a broad scope information system that supplies them with adequate and essential business information (Bouwens and Abernethy, 2000; Chung et al. 2012).
Conceptualization Of Management Information System
The concept is a blend of principles, theories and practices of management, information and System giving rise to a single product called Management Information System. The concept of Management gives high regard to the individual and his ability to use the information. MIS gives Information through data analysis. While analyzing the information, it relies on many academic disciplines like management science, OR, organization behavior, psychology, etc. The foundation of MIS is the principles of management and its practices. MIS uses the concept of management control in its design and relies heavily on the fact that the decision maker is a human being and is a human processor of information. A MIS can be evolved for a specific objective it is evolved after systematic planning and design. It calls for an analysis of business, management views and policies, organization culture and the management style.
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out on the effect of management information system on organizational performance using NNPC, Benin City, as case study. Hence the population of this study therefore comprise of the staff of NNPC, Benin City, Edo State.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of sixty seven (67) questionnaires were administered to respondents of which fifty fifty (55) were returned while 50 were validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 50 was validated for the analysis.
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
This chapter summarizes the findings on the effect of management information system on organisational performance using NNPC, Benin City, as case study. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was on the effect of management information system on organisational performance using NNPC, Benin City, as case study. The study is was specifically focused on examining whether MIS has any impact on organizational performance and determining whether MIS has any impact on management decision making.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of NNPC, Benin City.
The increasing need for information in today‟s world requires the development of information systems. It is important that enterprises monitor the news on the latest information technology solutions for business management that appear on the market and offer to improve business management methods and operational productivity, thus increasing competitive advantage. Hence, in the light of the analysis carried out, the following conclusions were drawn.
- Management information system has an effect on organizational performance.
- Information system has an impact on management decisions in an organization.
Based on the findings the researcher recommends that;
- Organizations should suitably align their strategies with adopted management information. This will enable management to track the changes in the competitive environment.
- It is essential for businesses to keep in line with developments in technology, information, and communications in order to improve their management information system and consequently the decision-making process.
- Corporate managers should also ensure that other organizational success factors are evaluated to compliment the contributions of the management information system to the success of their organization.
- Organizations must implement management information system to each and every department of the organization on automation because anyone in the organization could use information to make timely decision based on that information at different levels.
- Organization must use MIS to eliminate the communication gap between top levels management, middle level management and lower level management.
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