Aksum Town
Aksum Town
Aksum Town
RESEARCH Tittles
ID.No 431/07
Aksum, Ethiopia
MAY 2017
i
Acknowledgement
First and most I would like thank my almighty God for his protection and help me every step of
my life and success in my work. Secondly, I would like to thank my advisor Mr. G/MEDIN. D
(MBA) for his advise constructive comment and guidance from the beginning up to ends of this
study. Lastly, I would like to thank the managers of Wegagen bank for his giving of necessary
information and I would like my lovely friends for their moral and academic support.
Abstract
This study was concern to assess the impact of management information system to enhance the
performance of banking industry in Aksum branch. The focus of this study was to identify the
basic impact and current contributions of MIS in Wegagen bank in Aksum branch. The relevant
data’s were collected from primary and secondary source and it was used open and close ended
questionnaires and interview to collect primary data from respondents. The researcher was use
descriptive research design census technique to collect information from the total populations of
Wegagen bank of Aksum branch. The researcher was processed the collected data through
editing and coding and analysis by using tabulation and percentage and finally the researcher
was conduct conclusion and recommendation Wegagen bank of Aksum branch about the impact
of management information system to enhance their performance
TABLE CONTENT
Contents
Acknowledgement............................................................................................................................i
Abstract............................................................................................................................................ii
Table of contents.............................................................................................................................iii
List of tables....................................................................................................................................iv
1
Acronyms.........................................................................................................................................v
CHAPTER ONE..............................................................................................................................1
1. Introduction..............................................................................................................................1
CHAPTER TWO.............................................................................................................................5
2. Literature review......................................................................................................................5
CHAPTER THREE.......................................................................................................................13
3. Research methodology...........................................................................................................13
CHAPTER FIVE...........................................................................................................................23
5.2. Conclusions.........................................................................................................................25
5.3. Recommendations...........................................................................................................26
Reference.......................................................................................................................................28
Appendix........................................................................................................................................29
List of tables
4.1. Data presentation and analysis ……………………………………. 15
Acronyms
4
CHAPTER ONE
1. Introduction
5
it has 90 branches from the total branches 43 are found in Addis Abebe and the remaining
47 are located in other cities and towns of the country.
To expand its service coverage, the bank was finalizing preparation to open additional
branches in Addis Abeba and other regional towns of the country.
Mission- To be one of the top 10 African banks in 2025.
Vision-becoming the most be preferred bank in Ethiopia.
6
branch and the research would been analysis, conclude and recommended to the
organization.
Chapter two also contain review of related literature, chapter three deals with research
methodology, chapter four deals with data analysis and discussion and finally chapter
five is contains conclusion and recommendation parts.
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CHAPTER TWO
1. Literature review
2.1. Concept and definition of terms meaning of management
Management is the process of planning, organizing, leading and controlling of human and
other resources to achieve organizations goals efficiently and effectively. Organizations
resources include assets such as people and their sills, knowhow and experience,
machinery, raw materials, computers and information technology, and patents, financial
capital, and loyal customers and employees, R. Jones and M. jeprege, (2012).
9
MIS and controlling: MIs in controlling is the management function, in which
managers set and communicate performance standards for people, process and
devices.
10
2.6. Information requirement of managers
The information requirement of managers was depend on their specific role. Within
an organization, management is normally divided in to three different levels. These
are:
Management level: it is designed to assist with the monitoring and control system.
They will tend to provide reports on an exception bases to support decision
making or more senior managements. Decision support system (DSS) is used to
provide this summary information while MIs provided summaries of the
transaction data for tops.
11
Strategic level: strategic level system helps management addresses more long t
erm issues and problem. Such as the overall strategic direction and products, or
production plants the educative supports system will provide management with
summarized strategic information needed to make decision.
o Inputs: involves capturing and assembling elements that inter the system to be
processed for example, raw materials energy, and data, human effort must be
cured and organized for processing.
12
Feed back and controls
The system concept becomes even more use full by including two additional components are
feedback and control. A system with feedback and control components is sometimes are called a
cybernetic system that is a self monitoring self regulating system.
- Feed back: is a data about the performance of a system for example, data about sales
performance is feed back to sales manager.
- Control: involves monitoring towards the achievements of its goal. The control function
that makes necessary adjustment to a systems input and processing components to ensure
that it produces roper output.
13
2.12. The main role of MIS in business
The development and use of MIS in modern phenomenon concerned with the use of
appropriate information that will lead to better planning, better decision making and
better results. Information system is a professional and academic discipline concerned
with the strategic managerial and operational activities in the gathering, processing strong
distributing and using of information, and its associated technology in society and
organization information system are implemented within an organization for the purpose
of improving of the effectiveness and efficiency of that organization. MIS is a process
that provides information needed to manage organizations effectively. Management
information’s are regarded to be subset of the overall internal control procedures in
business, which cooer the applications of people, documents, technologies and
procedures used by management accountants to solve business problems such as costing
a products, service or business wide strategy.
Support the organizations strategic goals and direction. Because MIs supplies
decisions makers with factors, it supports and enhances the overall decision
making process. MIS also enhance job performance throughout the situation. MIs
have changed the dynamic of running business effectively
(http://www.Ask.com>business>management and management corporation
operation).
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- MIS is always management oriented and keeps in every level of management and gests
the desired information.
- Integrated refers to how different components (sub systems) are actually of up together.
- Useful for planning as every organization making long term and short term plans with the
help of information like sales, production, capital investment and stock et.
The over purpose of MIS is to provide profitability and staff under stands business
performance and plans its future direction.
15
system is the collection of soft ware tools that supports management of a data base and
information system (S.sehrawat and sharima 2007).
Data base management system is consists of group of programs that manipulate the data
base and provide an inter face between the data base and its users and other application.
FNMS engine
16
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CHAPTER THREE
3. RESEARCH METHODOLOGY
The bank has been generate normal profit, furthermore the bank has been considered
as the best bank from other branches interims of crating successful operating from
and for creating an employment opportunity for 20 employee.
The bank wes managed by woud experienced prefect manager who have get more
than ten years of experience in the banking industry service the bank has planned to
expanders operation as well as increasing performance by optimizing the line of
customer service quality and operating capacity of the bank and the bank generate
profited and exchange or currently for the customer with in the country and foreign
currency as banking industry. this branch is 1024km far from Addis in Tigray regions
north Ethiopia.
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3.3. Sample design and population size
To conduct the study the research would be use census method the reason behind the
researcher would be to acquire reliable and accurate information for each employee in
the bank.
Since the population are small and measureable all element of the population would
be take so that the total 20 employees are target population in bank of Wegagen but
the customers of wegagen bank we not take as a population because getting this
customer will be difficult to collect data.
19
- -
-
CHAPTER FOUR
20
the questionnaires as a data collection tools and distributed to each employees of the
bank. The questionnaire was distributed to 20 respondents and non all of them have fully
completed and collected. In this part of study, the data collected through questionnaire
are presented and analyzed. The researcher presented and analysis of the data based on
the number of questionnaires correctly fulfilled and returned from respondents.
1 Sex
Male 13 87
Female 2 13
Total 15 100%
2 Age
25-35 8 53.33
35-45 2 13.33
45-50 - -
>50 - -
Total 15 100
3 Level of education
12 grade completed - -
Certificate - -
21
College of diploma 4 27
First degree 11 73
Second degree -
Others - -
Total 15 100
4 Work experience
<1year 2 13
1-5 year 10 67
5-7 years 3 20
7-8 year - -
Total 15 100
Based on the above data presented in table 4.1 have the following respective analysis and
interpretation could be given conceding from item 1, out of 15 respondents 2[13%] of
them are male and13[87% ) of them are females. According to employees profiles fo
Wegagen bank dominated by male employees. Therefore, the above information’s
implies that the numbers of males are greater than the numbers of females they work in
Wegagen bank. Concerning on the age of respondents in item 2, shows the 5(33.33%) of
the respondents are less that 25 years old, 8(53.33%) of respondents are 25-35 years old,
2(13.33%) of them are 35-45 years old. This shows that most of employees of Wegagen
bank are 25-35 years old this means that they are the young age people, who are the
working class people which return implies potential age (profitable) for Wegagen bank.
Regarding from item 3,of the table 4.1. concerning with levels of education for the
respondent out of the total respondent there is no 12 grade completed, Certificate,
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Second degree and other specified respectively, and 4(27%) of the respondent are
college diploma, 11(73%) of the respondents are first degree holders. This implies that
the Wegagen bank have adequate knowledgeable man power because, majority of the
respondents have at least first degree holders. But they are mainly degree holders and
diploma holders so, Wegagen bank employees have lack of higher educational levels.
Based on the above table item 4, the working experience of the majority employees is
equal to 5 years work experience. This shows that the bank of wegagen employees more
experienced to perform their activities properly by using management information system
effectively respondents believed that MIS facilitate banking service delivery is low.
Therefore, ascending to the respondents emphasize management information system
facilitate banking service delivery is high.
According to the above table 4.1, item no 3, the role management information system in
order to facilitate work efficiency of wegagen bank, 4(27%) of the respondents believed
that very high, 6(40%) of the respondents were believed that high, 3(20%) of the
respondents stated that Fair, and 2(13%) of the respondents stated that MIS has low role
to the bank for improving work efficiency. This shows that the availability of MIS has an
important role for the bank to improve its work efficiency to perform organizations
activity.
No Item Number %
Yes 8 53
No 7 47
Total 15 100
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organization?
Yes 8 67
No 7 33
Total 15 100
Yes 9 60
No 6 40
Total 15 100
Based on the above table 4.2 item no 1, for the effectiveness information that provided by
the bank to employees, 8(53%) of the respondents approved that the information provide
by the bank has positive impact for the information, the rest 7(47%) from the total
respondents believed that some information that provide to us from `the bank has no
value to improve our efficiency therefore, based on the above assumption of employees,
information that provided by the organization to the employees that changing the
performance of the bank is valuable.
Based on the above table 3.3. item No, 10 (67%) of the respondents are believed that the
management information system is important for managerial function in the
organizations. And the rest of 6(33%) of the respondents stated that management
information system is not important for managerial functions in the organizations to
perform any activities. This show that according to the respondents answers management
information system is important for managerial functions in the organization to perform
activities that are related to organizations activity. According the above table 3.3 item no
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3, 9(60%) of the respondents are believed that creating the awareness of MIS for the fresh
man employees improve service delivery and the rest 6(40%) of the respondents stated
that the awareness of MIS does not improve service delivery of the bank. This show that
creating the awareness forwards management information system for fresh man of the
banks employees is valuable to improve service delivery of the bank.
No Item Number %
Yes 8 53
No 7 47
Total 15 100
Employees 3 20
Managers 4 27
Customer 2 13
All of there 6 40
Total 15 100
25
Varying - -
High 8 53
Fair 2 13
Low 4 27
Very low 1 7
Total 15 100
Based on the above table 4.4.item No 8(53%) of the respondents believed that the
organizations faced a problem related to management information system and the reset
7(47%) of the respondents stated that the organizations are not faced a problem related to
management information system. This shows that according to the respondents answer
the organization faces the problem related to MIS. The organizations manager as well as
the organizations employee must be works properly in order to applied good MIS in their
organizations. Based on the table 3.4.item no 2, the problem is more faced in the
organizations, 3(20%) of the respondents believed that for employees, 4(27%) of the
respondents believed that the problems of the severity is for managers, 2(13%) from the
total respondents suggested that the problem is for customers, 6(40%) of the total
respondents stated that the problem is more faced in the organizations are for all of them
that means for employees, customers and mangers. This shows that according to the
respondents answer given in the table are that the problems or severity that feed in the
organizations are for all of them. This means that if there is one problem face in the
organization the problems are faced for all of them. According to table 3.4 item no 3, the
organization affected by management information system, 8(53%) of the respondents
stated that high, 2(13%) of the respondents believed that fair,4 [27%) from the total
respondents stated low 1(7%) of the respondents suggested that very low. This shows that
according to the above information taken from the respondents the organization is
affected by management information system is high.
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1.3.1. Open ended questionnaires
The types of technology that facilitate the activities of wegagen bank are different IT
materials like computer personal computer, palm top, disk top, ATM banking solid
were used by the organization, international transferring money software and T24
application soft ware all of these listed the above are a types of technologies these
help’s to facilitate organizations activities. The types of the technologies that make
the organizations differ from other organization are T = 24 application technologies
and they also specified north types of technologies are organizations mobile banking
system, ATM and the system used by the organizations are different from other
organizations.
CHAPTER FIVE
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2. Summery, conclusion and Recommendation
This chapter concentrated on summary, conclusion based on the finding the finding and
recommendation. The research presents a brief summary of the study conclusion and
recommendations review the major findings and also explore the implication of the
findings in organized and sequential arrangement to get the required information.
5.1. Summary
Based of respondent’s background Over 87% of the respondents of the
organization are male and 13% of the rest are females.
With recording of respondents 53.33% of the respondents are under the ages of
25-35 years old, 33.33% of others are less than ages of 35-45 years old.
(80%)of the respondent responded that had work experiences of less than five
years.
About 11(73%) of the respondents said that MIS are able to give quality service
delivery and 4(27%) of the rest said that MIS are not able to give quality service
delivery.
From the respondents response that MIS are highly facilitates banking services.
According to the respondents responesenced that the role of MIS is high and
very high in order to facilitate work efficiency.
Above 8(53%) of the respondents said that all information provided by the bank
for employees efficient are changing the performance of the bank and 7(74%) of
the remaining are said that all information provided by the bank for employees
efficient are not change the performance of the bank.
from the respondents response MIS are important for managerial function in the
organization and the rest of them (33%) are said the MIS are not important for
managerial functions in their organization.
28
Based on respondents idea creating the awareness of MIS for fresh man bank
workers 60% improve service delivery and the remaining (40%) of the
respondents respond that creating the awareness MIS for fresh man bank worker
are not improve service delivery.
Most of the respondents (53%) are said that the organization faces a problem
related to MIS and the remain (47%) of the respondents said that the
organizations are not faces the problem related to MIS.
According to respondent’s response that the problems or severity is faced for all
of them.
From the respondents response (53%) said that the organization affected by MIS
is high and (34%) of the respondents respond that is low and the rest of them
(13%) are said fair.
Most of the respondents said that the types of technologies that facilitate the
activities of Wegagen banks are different IT materials like, computer, personal
computer, palm top disk top, ATM, banking soft ware used by the organization,
international transferring money soft ware and T-24 application software.
response that the types of technologies that make the organization differ from
other organizations are T-24 application soft ware and the system that are used by
the organizations make that the organizations are differ from other organizations.
5.2. Conclusions
Under this sub topic, the research wants to put the conclusion of this particular study and
forward to the readers. The conclusion is the part of the study the data collected and
analyzed from Wegagen bank in Aksum branch.
o The (87%) of the total respondents are male are the representation of females are
very low because the participations of female in Wegagen bank are low.
29
o The (73%) of the respondents are first degree and the remain (27%) are college
diploma. So, the banks have no qualified man power.
o The total respondents responded that MIS have positive contribution towards the
banks performance. According to James A.F(2010) management information
system are used as a catalyst to enhance organizational performance this indicates
that MIS is very important in organization because there is no organization can
survive, expand and attain development without information.
o The overall problem MIS is lack of sufficient awareness for each workers of
Wegagen bank..
o The use of effective information are help to develop employees for effective
information training and updating employees know how to sue effective
information in the bank, effective use of technologies, proper use of time,
delivering appropriate information for employees and giving training for staffs
about MIS culture.
o The roles of MIS are very high in order to facilitate work efficiency of the
employees in Wegagen bank. According to http://www.ask.com MIS
implemented within an organization for the purpose of improving of the
effectiveness and efficiency of the organization and the overall purpose of MIS is
to provide profitability and staffs understand for business and plan its future
direction.
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2.3. Recommendations
Depending on the finding of the summary the researcher pinpoints of the
recommendations are the following:
The majority of the total respondents are male and the representations of females
are very low. So, the manager of Wegagen bank in Aksum branch should work
more in order to balance or increase the participation of females in Wegagen
bank. In order to increase the participation of females the manager should be
giving special chances at the time of requirement, motivate them by giving
incentive and allowance’s
Most of respondents are first degree holders and the remain are college diploma.
There is no any people who have more tan first degree and other. Therefore, the
organizations manager should prepare deferent programs in order to crate a
professional (knowledgeable) man power to make the organizations more
profitable and competitors with other organizations.
The overall problem of MIS is lack of sufficient awareness for each worker of
Wegagen bank therefore, the organizations should give awareness fro the
organizations’ employees how to use MIS in the origination to perform their
activities properly, giving training and development above MIS and other related
things that used to perform different activities in the organization.
The use of effective information’s are help to develop employees for effective
information in the bank, effective use of technologies, proper use of time,
delivering appropriate information for employees and giving training for staff
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about MIS culture. The organizations should use effective information in order to
update employees know how to use effective information in the bank, effective
use of technology, proper use of time delivery appropriate information for
employees and giving training for staffs about MIS culture.
The roles of MIS are very high in order to facilitate work efficiency of the
employees in Wegagen bank. So, that the organization should be applied MIS in
order to facilitate the works efficiently and properly.
The organization are faced problem related to MIS. The problems that faces in the
organizations are the problem of network, lack of experience and unable to share
information with other in the organization. Therefore, the organization should be
minimize those problems by applied increasing workers experience, exchanging
information with other, giving training and developments for organizations
worker how to use the technologies.
Reference
D.Sehravlaz and sanjay Sharma, (2007), introduction to data base management
second edition.
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