The Effect of Management Information System on Organizational Performance

Chapter One of The Effect of Management Information System on Organizational Performance

INTRODUCTION

BACKGROUND OF THE STUDY

It is a well known fact that the success of any organization is dependent on its decision-making potentials, and decision making is dependent on timely availability of quality information.

An organization has transactions that must be processed in order to carry out its day-to-day activities. The payroll must be prepared, sales and payments on account must be posted; these and others are data processing tasks, but a management information system performs other tasks as well as is more than a data processing system. It is an information processing system applying the power of the computer to provide information for management and decision makers (www. Journals, information and  organisation).

It is really hard to imagine an industry or business that has not been affected by computer information systems and computer applications. Many businesses consider management of their information resource to be equal to their other key resources: properties, facilities, employees and capital. MIS is about analyzing and designing information system that fulfills those business requirements. (www. Journals, information and  organisation)

“Wherever people are active and working together in an organization, they work out some sort of system without the help of an analyst, through these systems, they get things done”. Such systems have been found to be frequently inefficient and sometimes even inadequate.

Management information system (computer oriented has evolved to reduce the inadequacies of the traditional information system).

STATEMENT OF RESEARCH PROBLEM

Due to the trends of modern times, the work of managers in organizations has become very information-intensive and the environment in which it is done is very information-rich. Suffice it to mention that any organization without a sound management information system will not thrive, it therefore becomes pertinent to address the following issues: (www. Journals, information and  organisation)

1.     Does management information system has any impact on organizations performance.

2.     Does information system has any impact on  organization decision making?

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.

SCOPE OF STUDY

This research project will be carried out solely in the oil industry, Nigeria National Petroleum Corporation (NNPC) to be specific.

It will be conducted only in Edo-State (Benin City) and will concentrate on information systems of management (one of the technologies designed to efficiently assist management in collecting and processing information).

SIGNIFICANCE OF THE STUDY

This research (project) is very relevant as it will provide first-hand information on the impact of information system on management performance in the oil industry.

1.     The Oil Industry (NNPC): Management will be informed as regards how to effectively collect, process, store and disseminate data at their disposal. This will lead to growth in the Nigerian National Petroleum Corporation and the oil industry in Nigeria.

2              The various investors (Potential and Existing) will benefit also as growth and development in the industry would mean growth in their investments.

3.     As the industry advances due to proper management of information, it would be easy to discharge its corporate social responsibilities, thus, the society benefits.

4.     Government: For environmental planning, military planning tax management, urban planning, rate management etc. All this can be made possible through management information systems.

5.     The research will also beneficial to future researches on this particular area of interest.

6.     Where any similar research exists, it will add to the bank of knowledge for future studies.

 STATEMENT OF HYPOTHESES

H0:          Management information system has no effect on organizational performance.

HA:          Management information system has an effect on organizational performance.

H0:          Information system has no impact on management decisions in an organization.

HA:          Information system has an impact on management decisions in an organization.

LIMITATIONS OF THE STUDY (CONSTRAINTS)

Certain factors could possibly hamper and affect the success of this research project. Not enough time, funds, materials, too large a distance to be covered, might not allow for a very elaborate study to be conducted. Hence, the study might be of less meaning compared to its significance in order to save time, cost, effort and reduce stress, a company in the oil industry (Nigerian National Petroleum Corporation) has been selected as a case study.

 RESEARCH METHODOLOGY       

The method to be used for collecting data for this project shall majorly be derived from two sources which are the primary and secondary sources.

The basic instrument for the collection of data shall be questionnaire. It is hoped that this medium will secure the needed information with great accuracy and will minimize cost and time.

DEFINITION OF TERMS

Computer: A computer is an electronic device that operates under instruction of stored programmes, accept input (data), process it according to specified rules, produces output (information) and store the result for future use. It could also be seen as an electronic device that accepts data, process data in a prescribed format and produce result in a specified format. They (computers), work under the influence of stored programmes, automatically accepting, storing and processing. Data to produce information that is the result of the processing. (www.wisegeek.com/whatisacomputer.com).

Data: This could be defined as raw facts and figures that are not meaningful parse and cannot be used in making decisions until processed. (www.business dictionary.com/definition of DATA.com).

Data Processing: Computer receives data as input, carries out manipulation on the data to give result (information) as output which is used for decision making. This process is referred to as data processing. The process of collecting items of source data together and converting them into information. (www.answers.com/topic/dataprocessing).

Files: Information held on backing storage (usually on magnetic discs or magnetic tapes) in order to enable it to persist beyond the time of extension of a single job and/or to overcome space limitations in memory. (en.wikipedia.org/ wiki/files…(computer).

Hardware: These are the physical parts of the computer system. They comprise of the input unit, system unit and the output unit. It also includes the storage unit e.g. memory. They are parts which can be seen, felt and touched. Examples are: keyboard, printer, mouse, monitor etc. (www.webopedia.com/hardware.html).

Information: This can be defined as data processed for a purpose. It is simply data processed to have a particular meaning, relevance and usage within a specific context. Kenneth and Norwich (2003).Davis (1974:85), defined information as data that have been possessed into a form meaningful to the recipient and perceived valuable in current or prospective decisions.

Information Technology: The practical application of science in various fields of learning, in transferring data or facts or information from one place to another. In relation to organization, information technology can be defined as the practical application of science in the production of goods and services in an industry. (www.webopedia.com/information technology.html).

MIS: An “MIS” is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. It is a computer based system that optimizes the collection, transfer and presentation of information throughout an organization by using an integrated structure of data bases and information flow. O’Brien (1999), Long and Long (2004).

Records: A record is a collection of data handled together in transfer to and from peripheral devices. It is also a collection of related fields describing an event or item or transaction. (Database.about.com/../records.html).

Software: These are the instructions which the computer system (hardware) follows to carry out a particular task. They are made up of series of programmes, hence, they are programmes which drive the hardware. (www.webopedia.com/ software.html).