Chapter No. 1
INTRODUCTION
1.1 Research Aim

The basic purpose of this research is to get knowledge about the implementing a management information system in an organization. Moreover, it judges the convenience of a management information system in an organization in managing the information. By implementing this management information system, the management of information becomes easier for the managers.

1.2 Scope

This project is not a very complicated according to the concepts, but still it is a challenging task for the mangers to implement this system in their organizations. This research is basically depends upon the general ideas and experimentation to resolve problems and get to the faster solutions for managers.

1.3 Research Objectives

* Appraise critically and review the literature related to the MIS.

* Make systems according to the mangers requirements that help them to get the information faster and accurate.

* Make systems that help the managers to search the database quickly.

* Make the information process system faster for the managers to minimize the time.

1.4 Research Questions

1) Which are the factors that are affecting the proper working of management information system within the company?

2) How the management information system can help the managers to take accurate and efficient decisions?

3) What is the role of management information system in the development and growth of the company?

4) What are the recommendations to the company to get better use of management information system?

1.5 PURPOSE OF STUDY

The use of Management Information System in the business organizations is more common. The purpose of the research is to assess the impact of implementation of Management Information System (MIS) to Habib Bank Limited. So the study was conducted to see the MIS affects on the performance of bank after its implementation.

1.6 HYPOTHESIS

H0: Management Information Systems (MIS) is not an effective tool for the organization.

H1: Management Information Systems (MIS) is an effective tool for the organization.

1.7 HABIB BANK LIMITED

“HBL was the first commercial bank established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector bank with over 1450 branches across the country and a customer base exceeding five million relationships.

The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control.

With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East.

Key areas of operations include product offerings and services in Retail and Consumer Banking. HBL has the biggest Corporate Banking portfolio in the country with a dynamic Investment Banking section. SME and Agriculture lending programs and banking services are offered in urban and rural canters.” (www.habibbankltd.com).

“With a customer base of 5 million and a network of more than 1,450 branches in Pakistan, HBL is the largest private bank in the country. The network means that bank is geographically closer to its customers than any other bank. This gives the insights needed to provide a variety of products that directly reflect customer needs. Bank remains resolute in the commitment to provide products that are competitive and services that are exemplary.” (www.habibbankltd.com)

Today, HBL plays a central role in Pakistan's financial and economic development. It started its operations in Bombay in 1941 with a fixed capital of 25,000 rupees.

Impressed by its primary performance, Quaid-e-Azam Mohammed Ali Jinnah (the founder of Pakistan) asked the Bank to shift its operations to Karachi after the creation of Pakistan. HBL recognized itself in the Quaid's city in 1943 and became a symbol of pride and growth for the people of Pakistan.

1.8 MANAGEMENT INFORMATION SYSTEM

Management Information System is a system that provides people with either data or information related to an organization's operations. MIS support the activities of employees, owners, customers and other key people in the organization's environment - either by efficiently processing data to assist with the than section work load or by effectively supplying information to authorized people in a timely manner.

A management information system (MIS) is the collection of system, both computerized and manual, that provides information about on going activities to an organization's decision makers.

The management information system of Habib Bank Limited has following major divisions:

* Transaction Processing System

* Management Reporting System

* Decision Support System

* Office Information System.

1.9 TRANSACTION PROCESSION SYSTEM OF HABIB BANK LIMITED

Transaction processing system supports the processing of Habib Bank Limited by automating the process of voluminous amounts of paperwork that must be handled daily. These systems include accurate recording of daily Transactions, controlling the procedure of issuance e.g. issuance of pay cheques invoices, customer statements, payment remainders, tuition bills and employee schedules etc.

1.10 Transaction Processing Functions

There are three steps of processing a transaction.

1.10.1 Book Keeping

First of all accurate record of transaction is recorded e.g. recording the deposits or withdrawals of account holders. This recording of transaction is called Book Keeping involving applications of financial accounting.

1.10.2 Issuance

It refers to the production of pay cheques, invoices, periodic statements as monthly telephone bills, credit card bills and payment remainders etc.

1.10.3 Control Reporting

Reports that are produced as a by product of transaction processing operation and that also serves operation control purposes are called control reports, as pay cheques are of Habib Bank are produced in batches, like wise the payroll edit report is produced to show the pay scheme of employees.

1.11 MANAGEMENT REPORTING SYSTEM

Management Reporting System is an information system that provides predefined types of information to management. At Habib Bank Management Reporting System is used not only in management planning but also in managing the control system.

1.12 Properties of Management Reporting System
1.12.1 Support

Management Reporting System supports structured and semi-structured decision, primarily at the middle-and lower-management levels.

1.12.2 Provision of Information

Management Reporting System Provides fixed types of information, in an established format; the formation requirements of users are normally known and stable.

1.12.3 Nature of Management Reports

Often implemented with voluminous, hardcopy reports, requiring each user to search specifically for key' information. Frequently require a formal request to be submitted; formal systems development may be required to approve the request.

1.12.4 Data

It has usually consisted of internal operational data, rather than data about the external environment. It concerned with data about the past than data relating to the future.

1.13 DECISION SUPPORT SYSTEM

It is a system that provides tools to managers to assist them in solving semi-structured and unstructured problems in their own somewhat personalized way. At Habib Bank decisions are only taken by Board of Directors otherwise usually predefined decisions are there for managers to follow.

1.14 Properties of Decision Support System of Habib Bank

1.14.1 Support

Decision Support System supports semi-structured or unstructured decision-making.

1.14.2 Flexibility

The Decision Support System of Habib Bank is flexible enough to respond to the changing needs of decisions makers.

1.14.3 Application Way

Decision support system of Habib Bank is easy to use.

1.14.4 Fastness

Decision Support System is fast in responding with a high degree of user control and interaction.

1.15 Types of Decisions Taken
1.15.1 Unstructured Decisions

This is the decision for which information provided by computer or men is not complete but is a small portion of the total knowledge required to make a decision.

1.15.2 Semi-structured Decisions

The decision made under a condition in which the information about problem to be solved is not complete is called semi-structured decision.

1.16 OFFICE INFORMATION SYSTEM OF HABIB BANK

The combination of new technologies as hardware, software, facsimiles e-mails and the people availing their services makes the office information system.

1.17 Components of Office Information System of Habib Bank

There are 3 major components of Office Information System, Document Management System, Message Handling System, and Office Support System.

1.18 Document Management System of Habib Bank

Document Management System of Habib Bank is partly manual and partly computerized.

1.19.1 Reprographic System

In each branch of Habib Bank Reprographic machines are there for making copies of required documents.

1.19.2 Word Processing System

At Habib Bank the office system technology which is used is word processing involving hard ware and soft ware tools which allows computer system to operate.

1.20 Message Handling System of Habib Bank

It is one of major applications of Office Information System. At Habib Bank the message handling system is of following.

1.20.1 Facsimiles

Fax machines are there to receive and send faxes in other branches of Habib Bank.

1.20.2 Electronic Mail

Electronic mail is used to receive and send messages to other branches.

1.21 Office Support System

Many applications collectively help in working of groups, which are known as Office Support System.

1.22 Office Support System of Habib Bank
1.22.1 Group Ware

Habib Bank provides group ware in following ways.

1. Word processing services.

2. Using fax mails.

3. Availability to on- line Data.

1.23 WORKING OF MIS IN DIFFERENT DEPARTMENTS OF HABIB BANK LIMITED
1.23.1 DEPOSIT DEPARTMENT

Activity of account opening and deposit department are the followings:

a) Opening new accounts.

b) Maintain of deposits of the account holders.

c) Processing can stop payment instructions.

d) To give fresh cheque books.

e) To make amendments in the existing accounts.

f) Closing the accounts of accounts holders (if required).

Almost all the activities mentioned above are performed through computer. The computer maintains all records of each and every client. Vouchers have been prepared and send to the MIS department for daily transactions and making changes in customer's accounts.

1.23.2 CASH DEALING DEPARTMENT

The major functions of cash dealing departments are:

a) Cash receipts.

b) To cash cheques.

All the regarding date, account number, tile of account, balance of account holder and the signature of customer have been verified through computer.

1.23.3 REMITTANCE DEPARTMENT

The major functions performed by remittance department are:

a) Pay order.

b) Demand like drafts on need.

c) Post transport.

d) Telegraphic transfer.

Fax and telephone are the major source of performing such activities.

1.23.4 IMPORT DEPARTMENT

Three major functions performed by the import department:

a) L/C opening.

b) Lodgement of papers and documents.

c) Retirement of papers and documents.

Import department is considered to be one of the most important departments of the bank. It handles the import licensing and imports of merchandise.

Imports can be separated into two categories:

a) Industrial Imports.

b) Commercial and industrial Imports.

Export Promotion Bureau makes registration of imports, Document required for sole proprietor partnership concern and limited concerns are different.

1.23.5 EXPORT DEPARTMENT

Export is a major source of earning foreign exchange. Every country wants to increase its exports because the foreign exchange earned through exports can help in meeting the other needs of the countries.

The computer keeps the records of each and every dealing which has been made by the customer for import export purposes. The records concerning his past and present performance and balance of accounts helps to make further decisions whether to give him loan or not.

1.23.6 PERSONNEL DEPARTMENT

Personal department uses computer for smooth functioning of work. The main functions performed by Personnel Department of Habib Bank are:

a) Selection and recruitment.

b) Training and growth.

c) Job explanation and estimation.

d) Periodic review

e) Communication

1.23.7 MARKETING DEPARTMENT

Consumer satisfaction is the first and for most priority for the bank. The marketing management makes policies for the better services of satisfaction of consumer. The process includes:

a) Finding out consumer wants and needs through marketing research.

b) Finding possibilities and then development of those wants and needs.

c) Establishing meaningful relations with customers.

d) Improving of product development for customers.

It is also the function of the organization to keep in constant contact with the consumer, read their needs, developed the product that can fulfil their needs and build the aim that express organizational purpose. Bankers also try to locate their past customers for offering more facilities to them. The computer provides every past and present updated account of each customer.

Chapter No. 2
LITERATURE REVIEW

LITERATURE REVIEW
2.0 A System for obtaining Management Information

“To get the better speedy management information, management may either use the services from a computer bureau, or they store their own computerized system.”(David Freestone).

2.1 Establishment of Management Information Systems

“Technology is improving the speed and reliability with which information is passed not only around the individual organization but also around the globe, and `dramatic reductions in the cost of obtaining, processing and transmitting information are changing the way we do business.” (Porter and Millar, 1991).

“Technology can assist those small firms that use these new technologies not only for data storage and transmission, but also to differentiate their products or to attack new market niches. The implementation should be handled by the team who will be able to handle key tropical areas.” (Nancy and Peter 2003).

2.2 Role of Management Information System

“Basically a management information system is depending upon other independent systems which are working in a combination to provide proper management information and transformed information. By recognizing the data that what information managers required to manage the organization is a starting point for making a proper information system.” (Tony Hines, 1995).

2.3 DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM AT SOUTH BANK POLYTECHNIC

“The prospect of wholly independent status for South Bank Polytechnic in the late 1980s, responsible for its own finance, property and personnel, gave considerable motivation towards improving management structures and information systems. In the Peat Marwick McLintock analysis, the overall management information wants the Polytechnic recognized the interrelationship of five information sources: staff, students (enrolment and applications), resources (finance), space and curriculum. The Management Information System under development reflects this with an additional component called Performance Indicators, which is generated within the system.”(Perry P, Payne C, Geddes T (1991).

2.4 MANAGEMENT INFORMATION SYSTEMS (MIS)

“According to Kenneth C. Laudon and Jane Price Laudon mentioned in their book Management Information Systems: A contemporary Perspective, an information system is a set of procedures that collects (or retrieves), processes, stores, and disseminates information to support decision making and control. In most cases, information systems are formal, computer-based systems that play an integral role in organizations. Although information systems are computer based, it is important to note that any old computer or software program is not necessarily an information system.” “Electronic computers and interrelated software programs are the technical foundation, the tools and materials, of modern information systems,” Laudon and Laudon wrote. "Understanding information systems, though, requires one to understand the problems they are designed to solve, the architectural and design solutions, and the organizational processes that lead to these solutions."

2.5 Systems Development

“The development of effective information systems holds a number of challenges for small businesses. Despite, or perhaps because of, the quick development of computer technology, there is nothing easy or mechanical about building workable information systems, Laudon and Laudon stated.” "Building, operating, and maintaining information systems are challenging for a number of reasons." For example, some information cannot be captured and put into a system. Computers frequently cannot be programmed to take into account participant responses to marketing strategy or changes in economic conditions, among other things. Adding up, the worth of information erodes over time, and rapid changes in technology can make systems become outdated very quickly. In conclusion, many companies find systems development to be problematic because the services of skilled programmers are at a premium.

The momentum to develop a new information system can grow up of end-user demands, the availability of new technology, or management strategy. A range of tools exists for analyzing a company's information requirements and designing systems to support them. The fundamental process of systems development involves defining the project, creating a model of the current system, deriving a model for the new system, measuring the costs and benefits of all alternatives, selecting the best option, designing the new system, completing the specific programming functions, installing and testing the new system, and completing a post-implementation audit.

"The organization must develop a technique for ensuring that the most important systems are attended to first, that unnecessary systems are not built, and that end users have a full and meaningful role in determining which new systems will be built and how, " according to Laudon and Laudon. (Thomson Gale, 2002)

2.6 MANAGEMENT INFORMATION SYSTEMS IN PLANNING

“A management information system for planning enables the corporation to have a central facility where large amounts of information can be gathered and stored. The information can be quickly retrieved and updated to help managers in making decisions. The management information system is capable of evaluating more alternatives than manual methods, can make superior and quicker decisions and provides timely and accurate information for decision making. Possibly if more companies are able to entirely put together the finance, marketing, production and human resources functions into an incorporated corporate simulation model, they will be better able to find out the effects that changes in internal or external phenomenon will have on their organization.” (Sethi NK, 1978)

2.7 DATA BASE ORGANIZATION INFORMATION SYSTEMS IN COMPLEX MANAGEMENT

Management information systems, like programming languages (e.g., ALGOL 60), which were originally regarded as quite universal, ceased to satisfy their creators at a certain stage of development. The disillusionment was due to the increase in accumulated knowledge, skills, and experience, to advances in hardware and software, and to the ever-expanding range and diversity of the relevant tasks.

Although the basic requirements and the underlying design principles were universally agreed upon since the early development of MIS, both theoreticians and practitioners were satisfied with partial realization of these requirements up to a point. At the present stage, however, no one can remain satisfied with the prevailing state of affairs, either organizationally or professionally.

Just complex MIS incorporating all the fundamental properties of the relevant objects, with their applications and interactions can hope to be effective. The development of such MIS requires using the latest advances in science and technology and instituting crash programs for the solution of the complex problems that arise in the design process.

2.8 ESTABLISHING A MANAGEMENT INFORMATION SYSTEM

“Information is a critical resource in the operation and management of organizations. Well-timed availability of appropriate information is essential for efficient performance of managerial functions such as planning, organizing, leading, and control. An information system in an organization is like the nervous system in the human body, it is the connection that links all the organization's components together and provides for better operation and survival in a competitive environment. Indeed, today's organizations run on information.” (Babu AR, Singh YP, Sachdeva RK)

2.9 Basic Concepts
2.9.1 Data versus Information

Data refers to raw, unevaluated facts, s, symbols, objects, events, etc. Data possibly will be a collection of facts lying in storage, like a telephone directory or sample records.

The information is data that have been set into a meaningful and helpful background and communicated to a receiver who make use of it to make decisions. The information involves communication and reception of intelligence and knowledge. This appraises and notifies surprises and stimulates, reduces ambiguity, reveals additional alternatives or helps eliminate irrelevant or poor ones, and influences individuals and stimulates them to action. An element of data may constitute information in a specific context; for example, when we want to contact our friend, his or her telephone number is a piece of information; otherwise, it is just one element of data in the telephone directory.

The computers have made it easier to process functions. Huge quantities of data can be processed rapidly through computers assisting in the conversion of data to information. Raw data go into the system and is changed into the output of the system. And this information supports managers in the decision- making.

2.9.2 Characteristics of Information

The characteristics of good information are relevance, timeliness, accurateness, cost-effectiveness, dependability, usability, exhaustiveness, and aggregation level. Information is related if it leads to superior decision-making. It may be relevant if it reaffirms a previous decision. If it not then it is not relevant.

The timeliness represents money of information accessible to the users. The currency of data and information is time hole between the occurrences of an occasion in the field until its presentation to the user (decision maker).

Accurateness is considered by comparing data to genuine procedures. The value of correct data varies with the kind of decisions that need to make. Though, a general estimation of how much personnel time was dedicated to a particular activity may be all that needed.

2.9.3 Value of Information

Information has a great impact on decision-making, and hence its value is closely tied to the decisions that result from its use. The information not has a complete common value. This value is linked to that use it, when it is used, and in what situation it is used. Information is like other commodities. For illustration, value of a glass of water is different for someone who has lost his way in arctic glaciers than it is to a wanderer in the Sahara desert.

The information supports decisions, decisions activate actions, and events affect the achievement or performance of the company. If it measures the difference in performance, it can be traced the impact of information, provided that the measurements are carefully performed, the relationships among variables are well defined, and possible effects of irrelevant factors are isolated. The calculated difference in performance due to informational factors is called the realistic value or revealed value of information.

“For most information systems, mainly those supporting middle and top management, the consequential decisions often relate to events that are not severely defined and involve probabilities that cannot be quantified. The decision-making process often is difficult to understand and the outcome are scaled by several and incomparable dimensions. In such cases, we may either attempt to perform a multi-attribute analysis or derive an overall subjective value. The subjective value reflects people's comprehensive impression of information and the amount they are willing to pay for specific information.” (Ahituv N, Neumann S, Riley HN, 1994)

2.9.4 Information as an Aid to Decision Making

“The process of decision making as comprising four steps: intelligence, design, choice, and review. The intelligence phase encompasses collection, classification, processing, and presentation of data relating to the organization and its environment.” Simon (1977). This is essential to recognize situations calling for decision. Throughout this decision stage, the decision maker outlines substitute solutions, each of which involves a set of actions to be taken. Statistical and other models to forecast possible outcomes for each alternative now use the data collected during the intelligence stage. Every alternative can also be examined for technological, behavioral, and economic feasibility. In the choice stage, the decision maker should select one of the alternatives that will best donate to the goals of the organization. Previous choices can be subjected to review during the implementation and monitoring to enable the manager to learn from mistakes. Information plays a vital role in all four stages of the decision process. -I indicates the information requirement at each stage, along with the functions performed at each stage and the feedback loops between stages.

2.10 Conceptual Framework

Research Question

Theory

Questionnaire questions

Which are the factors that are affecting the proper working of management information system within the company?

(M-MIS, (1995),

Risks Associated With MIS.

Do you think that employees are needed to be sufficiently trained for new systems and subsequent enhancements?

Do you agree that the company is satisfied with the development of user manuals and testing of the system?

How the management information system can help the managers to take accurate and efficient decisions?

Simon (1977),

Information as an Aid to Decision Making

Does management has any policy to monitor the new MIS?

Has your management developed and maintained a current MIS policy or practice?

What is the role of management information system in the development and growth of the company?

Tony Hines (1995), Role of Management Information System.

Do you think MIS is an effective tool for the company?

Does the internal planning process consider and incorporate the importance of MIS at both the strategic and tactical level?

What are the recommendations to the company to get better use of management information system?

Masood SH, Pires CG (2005) SH, Management information system for better team productivity.

Does management encourage communication lines to link all MIS user effectively?

Does management use a project management technique to monitor MIS development schedules?

Does Company update MIS regularly?

Chapter No. 3 RESEARCH METHODOLOGY

Chapter No. 4 DATA ANALYSIS

4.0 DATA ANALYSIS PROCEDURE
4.1 DATA ANALYSIS

1. Has your management developed and maintained a current MIS policy or practice?

Frequency

Percentage (%)

Yes

45

34.6

No

85

65.4

Total

130

100

Result shows that out of 130 respondent 45(34.6%) said that their management has developed and maintained a current MIS policy or practice while 85(65.4%) said that their management has not developed and maintained a current MIS policy or practice.

2. Does MIS policy or practice provide guidance to company employees to achieve their purposes?

Frequency

Percentage (%)

Yes

75

57.7

No

55

42.3

Total

130

100

Out of 130 respondents majority 75(57.7%) said that MIS policy or practice provide guidance to company employees to achieve their purposes and 55(42.3%) said that MIS policy or practice does not provide guidance to company employees to achieve their purposes.

3. Do you believe that MIS policy or practice provide enough guidance to achieve effective two-way communication between management and employees?

Frequency

Percentage (%)

Yes

80

61.5

No

50

38.5

Total

130

100

80(61.5%) respondents said they believe that MIS policy or practice provide enough guidance to achieve effective two-way communication between management and employees while 50(38.5%) were not agreed with it.

4. Do you believe after implementation of MIS System Company's staffs performs well in initiating, developing and completing their jobs?

Frequency

Percentage (%)

Yes

75

57.7

No

55

42.3

Total

130

100

Result shows that out of 130 respondents 75(57.7%) said that they believe after implementation of MIS system company's staff performs well in initiating, developing and completing their jobs while 55(42.3%) said no.

5. Do you think that MIS policy or practice provide enough guidelines for installing MIS enhancements in a controlled change environment?

Frequency

Percentage (%)

Yes

95

73.1

No

35

26.9

Total

130

100

Result depicts that out of 130 respondents 95(73.1%) said that MIS policy or practice provide enough guidelines for installing MIS enhancements in a controlled change environment while 35(26.9%) respondents were not agreed with it.

6. Do you agree that MIS policy or practice is helpful in acquiring, merging, manipulating and up-loading data to other systems?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

Above table shows that out of 130 respondents 85(65.4%) said that MIS policy or practice is helpful in acquiring, merging, manipulating and up-loading data to other systems and 45(34.6%) said no that MIS policy or practice is not helpful in acquiring, merging, manipulating and up-loading data to other systems.

7. Do you think that your company review and update MIS policy or practice regularly?

Frequency

Percentage (%)

Yes

35

26.9

No

95

73.1

Total

130

100

It is depicted from result that 35(26.9%) respondents said that their company review and update MIS policy or practice regularly but the majority 95(73.1%) said that their company does not review and update MIS policy or practice regularly.

8. Do you agree that MIS policy or practice is distributed to appropriate employees?

Frequency

Percentage (%)

Yes

55

42.3

No

75

57.7

Total

130

100

Out of 130 respondents 55(42.3%) were agreed that MIS policy or practice is distribution to appropriate employees while majority 75(57.7%) was not agreed.

9. Do you think that MIS policy or practice is required for users to update the system?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

Result shows that majority 85(65.4%) said that MIS policy or practice is required for users to update the system while 45(34.6%) said not required.

10. Do you think that MIS Policy or practice is required to enhance the system in a controlled change environment?

Frequency

Percentage (%)

Yes

75

57.7

No

55

42.3

Total

130

100

Majority of the respondents 75(57.7%) said that MIS policy or practice is required to enhance the system in a controlled change environment while 55(42.3%) replied in negative.

11. Do you think that employees are needed to be sufficiently trained for new systems and subsequent enhancements?

Frequency

Percentage (%)

Yes

95

73.1

No

35

26.9

Total

130

100

Result shows that out of 130 respondents 95(73.1%) said that employee are needed to be sufficiently trained for new systems and subsequent enhancements while 35(26.9%) respondents said no.

12. Does the internal planning process consider and incorporate the importance of MIS at both the strategic and tactical levels?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

It is depicted from result that out of 130 respondents 85(65.4%) said that internal planning process consider and incorporate the importance of MIS about both the strategic and tactical levels while 45(34.6%) respondents said no.

13. Do you believe that longer-term strategic goals (beyond 2 years) are supported by the development of appropriate MIS?

Frequency

Percentage (%)

Yes

105

80.8

No

25

19.2

Total

130

100

Result shows that majority 105(80.8%) respondents said that longer term strategic goals (beyond 2 years) are supported by the development of appropriate MIS while 25(19.2%) said no.

14. Are short-term tactical goals over the immediate one-to-two year period regularly and appropriately reviewed and monitored by management?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

Result shows that out of 130 respondents 85(65.4%) said that short term tactical goals over the immediate one-to-two year period regularly and appropriately reviewed and monitored by management while 45(34.6%) said no.

15. Do you think that new MIS addresses the existing MIS weaknesses and meet new business unit requirements?

Frequency

Percentage (%)

Yes

95

73.1

No

35

26.9

Total

130

100

It is depicted from above table that majority 95(73.1%) said that new MIS addresses the existing MIS weaknesses and meet new business unit requirements while 35(26.9%) respondents said no.

16. Does management has any policy to monitor the new MIS?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

Result shows that out of 130 respondents 85(65.4%) said that management has policy to monitor the new MIS while 45(34.6%) said that management has no any policy to monitor the new MIS.

17. Does management use a project management technique to monitor MIS development schedules?

Frequency

Percentage (%)

Yes

70

53.8

No

60

46.2

Total

130

100

Out of 130 respondents 70(53.8%) said that management use a project management technique to monitor MIS development schedules while 60(46.2%) said no.

18. Does company provide proper information to software house for the development of MIS?

Frequency

Percentage (%)

Yes

68

52.3

No

62

47.7

Total

130

100

Result depicts that out of 130 respondents 68(52.3%) said that company provides proper information to software house for the development of MIS and 62(47.7%) said that company does not provide proper information to software house for the development of MIS.

19. Do you agree that the company is satisfied with the development of the program and contracting for equipment and software?

Frequency

Percentage (%)

Yes

85

65.4

No

45

34.6

Total

130

100

Result shows that 85(65.4%) respondents said that the company is satisfied with the development of the program and contracting for equipment and software while 45(34.6%) replied in negative.

20. Do you agree that the company is satisfied with the development of user manuals and testing of the system?

Frequency

Percentage (%)

Yes

55

42.3

No

75

57.7

Total

130

100

55(42.3%) respondents were agreed that the company is satisfied with the development of user manuals and testing of the system while 75(57.7%) were not agreed.

21. Do you agree that company is satisfied with post-review of the system and future maintenance of it?

Frequency

Percentage (%)

Yes

65

50.0

No

65

50.0

Total

130

100

Result shows that out of 130 respondents 65(50.0%) were agreed that company is satisfied with the post-review of the system and future maintenance of it while 65(50.0%) were not agreed.

22. Is the user manual for the MIS system(s) meaningful, easy to understand?

Frequency

Percentage (%)

Yes

75

57.7

No

55

42.3

Total

130

100

Result shows that out of 130 respondents 75(57.7%) said that user manual for the MIS system(s) is meaningful, easy to understand while 55(42.3%) said no.

23. Do you think that user manual should have brief description of the MIS?

Frequency

Percentage (%)

Yes

95

73.1

No

35

26.9

Total

130

100

It is depicted from table that out of 130 respondents 95(73.1%) said that user manual should have brief description of the MIS while 35(26.9%) said no.

24. Do you think that user manual should have brief description of input instructions including collection points and times to send updated information?

Frequency

Percentage (%)

Yes

75

57.7

No

55

42.3

Total

130

100

Out of 130 respondents 75(57.7%) said that user manual should have brief description of input instructions including collection points and times to send updated information and 55(42.3%) said no.

25. Do you think that user manual should have a full listing of output reports, including samples?

Frequency

Percentage (%)

Yes

80

61.5

No

50

38.5

Total

130

100

Result shows that out of 130 respondents 80(61.5%) said that user manual should have a full listing of output reports, including samples while 50(38.5%) were not agreed with it.

26. Does management encourage communication lines to link all MIS user effectively?

Frequency

Percentage (%)

Yes

100

76.9

No

30

23.1

Total

130

100

Result of the above table shows that 100(76.9%) respondents said that management encourages communication lines to link all MIS user effectively while 30(23.1%) said that management does not encourage.

27. Does management encourage filing system for record keeping with MIS process?

Frequency

Percentage (%)

Yes

60

46.2

No

70

53.8

Total

130

100

Table shows that out of 130 respondents 60(46.2%) said that management encourages filing system for record keeping with MIS process while majority 70(53.8%) was not agreed with it.

28. Does the MIS project follow an approved methodology to analyze system alternatives, organization of tasks, and approval of phases by system users / owners?

Frequency

Percentage (%)

Yes

76

58.5

No

54

41.5

Total

130

100

It is depicted from result that out of 130 respondents 76(58.5%) said that the MIS project follows an approved methodology to analyze system alternatives, organization of tasks, and approval of phases by system users / owners while 54(41.5%) said no.

29. Does the MIS project follow an approved methodology for program development and contracts for equipment and software vendors?

Frequency

Percentage (%)

Yes

80

61.5

No

50

38.5

Total

130

100

Above table describes that out of 130 respondents 80(61.5%) said that the MIS project follows an approved methodology for program development and contracts for equipment and software vendors while 50(38.5%) were said no.

30. Does the MIS project follow an approved methodology for the development of user instructions and testing the system changes?

Frequency

Percentage (%)

Yes

73

56.2

No

57

43.8

Total

130

100

Result depicts that 73(56.2%) respondents said that the MIS project follow an approved methodology for the development of user instructions and testing the system changes while 57(43.8%) said no.

31. Does the MIS project follow an approved methodology for installation and maintenance of the system?

Frequency

Percentage (%)

Yes

90

69.2

No

40

30.8

Total

130

100

Result shows that out of 130 respondents 90(69.2%) said that the MIS project follows an approved methodology for installation and maintenance of the system while 40(30.8%) respondents were not agreed with it.

32. Does the organization make use of a data warehouse?

Frequency

Percentage (%)

Yes

80

61.5

No

50

38.5

Total

130

100

It is depicted from table that out of 130 respondents 80(61.5%) said that the organization makes use of a data warehouse and 50(38.5%) said no.

33. Does your organization use a specific format of presentation in the management information system?

Frequency

Percentage (%)

Yes

100

76.9

No

30

23.1

Total

130

100

Result shows that out of 130 respondents 100(76.9%) said that their organization use a specific format of presentation in the management information system while 30(23.1%) said that their organization does not use a specific format of presentation in the management information system.

34. How would you categorize the Company's IT infrastructure capabilities?

Frequency

Percentage (%)

No computers

19

14.6

Few standalone computers used for word processing

69

53.1

Few networked computers used only for email and maybe MIS

31

23.8

Fully networked Company with applications on central server in company data center

6

4.6

Fully networked Company with applications on central server in state data center

5

3.9

Total

130

100

Result of above table describes the company's IT infrastructure. Out of 130 respondents 19(14.6%) said that their company has no computers, 69(53.1%) said few standalone computers are used for word processing in the company, 31(23.8%) said few networked computers are used only for email and maybe MIS, 6(4.6%) said fully networked company with applications on central server in company data center and 5(3.9%) said that fully networked Company with applications on central server in state data center.

35. Does the Company have its own automated Management Information System (MIS)?

Frequency

Percentage (%)

Yes

40

30.8

No

90

69.2

Total

130

100

Result shows that out of 130 respondents 40(30.8%) said that the company has its own automated Management Information System (MIS) while 90(69.2%) said no.

36. Does the Company update the MIS regularly?

Frequency

Percentage (%)

Yes

50

38.5

No

80

61.5

Total

130

100

It is depicted from result that 50(38.5%) respondents said that their company updates the MIS regularly while majority 80(61.5%) said no.

37. Do companies have any IT Security or Disaster Recovery / Business Continuity Policy?

Frequency

Percentage (%)

Yes

35

26.9

No

95

73.1

Total

130

100

Result shows that out of 130 respondents 35(26.9%) said that companies have IT security or disaster recovery / business community policy while 95(73.1%) said no.

38. Do you think MIS is an effective tool for the company?

Frequency

Percentage (%)

Yes

115

88.5

No

15

11.5

Total

130

100

Result depicts that out of 130 respondents 115(88.5%) said that MIS is an effective tool for the company while only 15(11.5%) said that MIS is not an effective tool for the company.

Chapter No. 5
DISCUSSION AND FINDINDS
5.0 MANAGEMENT INFORMATION SYSTEM (MIS)

“Organized approach to the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement man-machine procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner. Modern, computerized systems continuously gather relevant data, both from inside and outside the organization.”(www.businessdictionary.com).

“The primary role of the MIS specialist is to ensure organizational effectiveness through the design, development and implementation of computer-based information systems. The MIS expert requires a solid understanding of business operations in addition to computer operations, because these systems are used in all functional areas of the organization (such as accounting, manufacturing, marketing and finance).” (www.bsad.uvm.edu)

5.1 MIS BACKGROUND

A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it produces are normally considered essential components of careful and sensible business decisions.

The significance of maintaining a reliable approach to the development, use, and reconsider of MIS systems within the institution must be an ongoing concern of both bank management and OCC examiners. MIS must have a clearly defined structure of strategy, policies or practices, standards, and procedures for the organization. These should be followed all through the organization in the development, maintenance, and use of all MIS.

MIS is used and considered at many levels by management. It should support the institution's longer-term strategic goals and objectives. To the other extreme it is also those everyday financial accounting systems that are used to ensure basic control is maintained over financial record keeping activities.

Consequently, though MIS and accounting reconcilement totals for connected listings and activities should be similar, they may not necessarily balance. The institution's MIS may be designed to attain the following goals:

• Enhance communication among employees.

• Bring complex material throughout the institution.

• Providing objective system for recording and aggregating information.

• Reducing the expenses related to labour-intensive manual activities.

• Support the strategic goals and direction.

Efficient MIS should guarantee the suitable presentation formats and time frames required by operations and senior management are met. MIS can be maintained and developed by either manual or automated systems or a combination of both. It must always be adequate to meet an organization's distinctive business goals and objectives. The MIS supports the effectual deliveries of an organization's commodities and services. These systems should be available and useable at all proper levels of the business.

MIS is a crucial element of the institution's generally risk management policy. MIS supports management's aptitude to execute such reviews. MIS is used to distinguish, examine, evaluate, limit, and manage risks. Risk management include four main elements:

• Policies or practices.

• Functioning processes.

• Employees and management.

• Opinion devices.

Normally, operational processes and feedback devices are tangled and cannot easily be viewed individually. The most efficient and useable MIS is operational and informational. Management can use MIS to evaluate performance, manage resources, and help an institution comply with regulatory requirements. For example of this would be the managing and reporting of loans to insiders. Management to provide view on the effectiveness of risk controls can also use MIS.

Controls are developed to support the suitable management of risk through the institution's policies or practices, operational processes, and the assignment of duties and responsibilities to staff and managers.

Technology advances have improved both the availability and volume of information management and the directors have available for both planning and decision-making. Respectively, technology also increases the potential for inaccurate reporting and flawed decision making. As data can be extracted from many financial and transaction systems, suitable control actions must be set up to ensure that information is correct and relevant. In addition, since MIS often originates from multiple equipment platforms including mainframes, minicomputers, and microcomputers, controls must ensure that systems on smaller computers have processing controls that are as well defined and as effective as those commonly found on the traditionally larger mainframe systems.

All institutions must set up a structure of sound basic principles that classify risk, set up controls, and provide for valuable MIS review and monitoring systems throughout the organization. Generally, an organization may decide to found and express these sound principles in writing. The OCC fully endorses and supports placing these principles in writing to enhance effective communications throughout the institution.

Information is the key resource available to the manager. Information may be managed like other resource and attention in this topic stems from two influences. First, commerce turn complex, and second, the computer has achieved enhanced capabilities.

Sound fundamental principles for MIS review contain proper internal controls, operating procedures and safeguards, and audit coverage.

Managers, non-managers, and personnel and organizations within the firm's environment can use computer information. Managers are originating on all organizational levels of the firm and in all business areas.

Manages perform functions and play roles; to be successful and they need skills in communication and problem solving. Managers can be computer educated, but, more significant, they should be information literate.

It may be helpful that the managers have a capability to see his or her unit as a system. The theoretical system consists of an information processor that transforms data into information and represents the physical resources.

The first computer application was used process accounting data. Four others followed that application:

Management information systems

Decision support systems

The virtual office

Knowledge based systems

All five of these applications compose the computer based information system (CBIS).

Firms establish an organization of information specialists to provide expertise in the development of computer-based systems. These specialists include

Systems analysts

Database administrators

Network specialists

Programmers

Operators

Users have begun doing much of the work historically performed by information specialist, a phenomenon end user computing.

“It is extremely complex to verify the profitable worth of a computer application, but much analysis goes into justifying each potential project. Information experts can take part in changeable degrees, but the whole sequence, including both development and use, should be managed by the manager.” (George Schell, 2001).

5.2 Main Type of Resources

The manager manages five main types of resources,

Personnel

Material

Machines (including facilities and energies)

Money

Information (including data)

The task of the manager is to manage these resources in order to use them in the most efficient way. The first four resource types are tangible; also known as physical resource and last one is information is not valued tangible is known as conceptual resource to describe information and data.

The information is one of the five main types of resources to which manager has access.

Managers, non-managers, and persons and organizations in the firm's environment use computer productivity. Managers are found at all levels and in all business areas. As managers perform their managers and play their roles, they augment their basic communications and problem solving skills with computer and information literacy.

5.3 System

A system is a collection of elements that are incorporated with the general purpose of achieving a purpose. An organization such as a firm or a business area fits this definition. The organization consists of the resources that we identified earlier, and they work towards achieving particular objectives that are specified by the owners or management.

5.4 System Elements

All systems include three primary elements,

Input

Transformation

Output

5.5 Open-loop and Closed-loop Systems

A system without the control mechanism, feedback loop, and objective elements is called an open-loop system.

A system through the three control elements (objectives, control mechanism, and feedback loop is called a closed-loop function.

5.6 Open System and Closed System

A system connected to its environment by means of resource flows is called an open system.

A firm is an example of both an open system and closed-loop system.

5.7 Data, Information

Here is dissimilarity in data and information.

Data is a raw material consisting of relatively meaningless facts and s that are transformed into information by an information processor.

An information CPU gives information in both verbal and printed forms. The information comes from both inside and ecological sources and is used in making decisions to solve problems

(George Schell, 2001).

The computer was initially applied as an accounting information system (AIS), but then it was recognized to have potential value as a management information system (MIS). Subsequently, interest expanded into such areas as decision support system (DSS), the virtual office, and knowledge-based system. These application areas compile the computer-based information system (CBIS) and provide problem solving information.

Throughout current years, many users have taken the initiative to enlarge their own applications rather than rely entirely on information specialists.

5.8 Components of Computer-Based Information Systems

A computer-based information system (CBIS) is an information system in which the computer plays a major role.

5.8.1 Hardware

It is the physical part. This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipment. Among the support equipment are input and output devices, and communications devices.

5.8.2 Software

The term software refers to computer programs and the manuals that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of the CBIS to function in ways that produce useful information from data. Programs are generally stored on some input/output medium, often a disk or tape, for use by the computer.

5.8.3 Data

Data are facts that are used by programs to produce useful information. Like programs, data are generally stored in machine-readable form on disk or tape until the computer needs them.

5.8.4 Procedures

These are the policies that govern the operation of a computer system. “Procedures are to people what software is to hardware” is a common analogy that is used to illustrate the role of procedures in a CBIS. For instance, the steps that must be taken to enter a password and log on to a computer terminal are a procedure. The actions needed to restore the computer system to its operational state after a major power failure is another example of a procedure. Procedures often specify the actions that people should take in a step-by-step manner.

5.8.5 People

“CBIS wants people if it is to be useful. Often the most overlooked element of the CBIS, people are probably the components that most influence the success or failure of information systems. Users, programmers, systems analysts, and database administrators are just some of the people associated with computer-based information systems.” (Charles Parker, Thomas Case, 1993).

5.9 Definition

'MIS' is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management. According to Phillip Kotler "A marketing information system consists of people, equipments, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." “(Kotler, Phillip and Keller, Kevin Lane; Marketing Management, Pearson Education, 12 Ed, 2006).”

Professor Allen S. Lee states, “research in the information systems field examines more than just the technological system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge when the two interact”.

“Regional managers have all the record of goods purchased and delivered. They can easily access data when they required. In supply chain information of different activities can be exchanged easily It is necessary for the organization to enhance the sharing of data in supply chain from suppliers to customers. Information system is an intelligent system, which is used to remove redundancies and provide information in no time.” (Sandoe, 2005).

5.10 Management by Objectives

“The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress.
In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyzed by decision-makers.” (Preece, j, 2003).

5.12 Specific Features of Data Base Management Systems for Complex MIS

A highly important component of any MIS (or of its subsystems) is the database. The organization, the structure, and the functioning of the database largely determine the effectiveness of the MIS as a whole.

The main tool of data base organization in MIS in recent years is the data base management system (DBMS) which maintains a dynamic data model of the object, ensures user access to data, and interfaces with application programs.

Although over twenty information-retrieval systems (IRS) and DBMS are currently available in the USSR, the choice of a DBMS even for a relatively simple system or subsystem involves certain difficulties; these difficulties are aggravated and, strictly speaking, become insoluble for complex MIS. This is due to the following reasons:

• the various available DBMS use incompatible data structures, so that data bases (DB) managed by different DBMS are incompatible even on compatible computers;

• The data manipulation language (DML) of a particular system as a rule will access a single data base only;

• DBMS are designed for single-processor computers;

Among possible ways to get rid of many shortcomings of DBMS and integrated DB organization was proposed in. This approach envisages a virtual data base level (VDB) with a virtual data description language (VDDL) and a virtual data manipulation language (VDML), supplemented with interpretation by concrete DBMS facilities incorporated in the integrated DB. VDDL and VDML contain special features for describing and manipulating hierarchical relations. (Khalilov AI, 1981)

5.12 Classification of Management Information Systems

There are various types of management information systems. “Mason and Swanson (1981) describe four categories of management information systems: (1) databank information system, (2) predictive information system, (3) decision-making information system, and (4) decision-taking information system.”

The examples of the kind of data that may be recorded in such a database for a given village, region, or area are as follows:

* Number of farms

* Number of units of arable land (hectares, fedans, acres)

* Average farm size

* Amounts of selected farm inputs applied annually

* Production per year on a unit of land for selected crops

A second example of data that might be recorded in a database (this time involving data internal to the organization) is as follows:

* Number of extension staff by category and assigned to a particular village, region, or area

* Number of work hours devoted by staff to selected concerns for a particular village, region, or area

* Number of radio, TV, and print media releases regarding selected farm technologies by time period and region or area

Each of these databases can be summarized and transformed to single tabular presentations of information of interest to management. At time information from two or more time periods is compared, trends can be observed.

The examples of decision-taking information systems are not usually found in an extension organization. This is a decision system in which the information system and the decision maker are one and the same. The management is very confident in the assumptions integrated in the system that it basically relegates its power to initiate action to the system itself. Airplanes bear automatic pilot systems, which are an example of a decision-taking system. Once it activated, the system itself keeps the plane on course and at the proper speed and altitude (according to parameters determined by the pilot). Other example of decision-taking information systems is found in modem factory production. During automobile production, continuous inventories of parts are maintained by computer as cars move down an assembly line. The orders are placed automatically by the computer when additional parts are needed. This is done without the intervention of a manager.

5.13 Findings
5.13.1 OVERALL OBJECTIVES OF A MANAGEMENT INFORMATION SYSTEM / MEASURING AND ACHIEVING SUCCESS

“When establishing, building, and utilizing a management information system and process the following overall goals and objectives should be emphasized:

* Focus on developing meaningful management information to make more informed decisions and manage risk.

* Let the process to assist in strategic planning and decision making, as well as the budgeting and ALM processes.

* Give information to manage GAP, lines of business, organizational units, branches and locations, product lines, customer accounts and relations, market segments, opportunities, capital requirements and risk exposures.

* Utilize data output to measure the performance of the various slices of profitability analysis, as well as the employees that manage and operate functional units.

* Make use of data output to help in determining performance rewards, i.e., compensation, bonuses, and incentives.” (Kafafian RE, 2001).

5.13.2 ADVANTAGES OF INFORMATION MANAGEMENT SYSTEMS

The perception of management information systems originated in the 1960s and turned out to be the good example of approximately all attempts to relate computer technology and systems to data processing in business. During the early 1960s, it became apparent that the computer was being applied to the solution of business problem in a piecemeal fashion, focusing almost totally on the computerization of clerical and record - keeping tasks. The concepts of management information systems were developed to neutralize such in well-organized development and in effective use of the computer. The MIS concepts are vital to efficient and effective computer use in business of two major reasons:

• It serves as a systems framework for organizing business computer applications. Business applications of computers should be viewed as integrated and interrelated computer - based information systems and not as independent data processing job.

• During emphasizes the management orientation of electronics information processing in business. The main objective of computer based information systems should be the processing of data generated by business operations. A management information system is an integrated man - machine systems that provides information to support the planning and control function of manager in an organization.

• Usually, MIS deals with information that is systematically and regularly collected in accordance with a well-defined set of rules. Therefore, MIS is a part of the formal information network in an organization. Information which has key managerial planning may be significance is occasionally composed at golf courses. Such information is not part of MIS; however, one- shot market research data collected to gauge the potential of a new product does not come within the scope of an MIS by our definition because although such information may be very systematically collected it is not collected on a regular basis.

• Generally, the information provided by an MIS can help the managers to make planning and control decisions. In order to function, every organization has to perform some specific operations. For instance, a car manufacturer has to perform certain manufacturing activities; a wholesaler has to provide water to its area of authority. An organization must decide on how many and what type of cars to make next month or what commissions to offer retailers or what pumping stations to install in the next five years.

In general, MIS is concerned with planning and control. Frequently there are sophisticated systems for information that are helpful in various operations. For example, the car manufacturer will have a system for providing information to the employees on the shop floor regarding the job that needs to be done on a particular group of material. There may have route sheets that go together with the rate materials and components in their movement through a variety of machines. This system provides information to assist operations. The system does provide information on output, machine utilization or rejection rates, and then the system is part of an MIS.

• Commonly MIS has all the ingredients that are associated with providing information support to manager to making planning and control decisions. Managers often use historical data on an organization's activities as well as current status data make planning and control decisions. This data comes from a database that is contained in files maintained by the organization. The data base is an important part of an MIS. The manual procedures that are used to collect and process information and computer hardware are evident ingredients of an MIS.

• When we say that “an MIS is an integrated man - machine systems that provided information to supports the planning and control function of managers in an origination, perform these functions,

- sub serves managerial function

- collects stores , evaluates information systematically and routinely

- supports planning and control decisions

- Includes files, hardware, software, software and operations research models.

Efficient management information systems are needed by all business organization because of the increased complexity and rate of change of today's business situation. As Example, Marketing manager require information about sales performance and trends, financial manger returns, production managers needs information analyzing resources requirement and worker productivity and workforce manager require information relating to worker compensation and professional development. Therefore, effective management information systems must be developed to provide modern managers with the particular marketing, financial, production and workforce information products they required to support their decision making responsibilities.

Some advantages,

1. It facilitates planning; MIS improves the worth of plants by providing related information for sound decision-making. Because of enhance in the size and complication of organizations, managers have lost personal contact with the sight of operations.

2. In minimizes information burden: MIS is able to change the larger amount of data in to summarize form, avoiding the uncertainty which can occur when managers are flooded with detailed facts.

3. MIS encourage decentralization: decentralization of power is probably when there is a system for monitoring operations at lower levels. MIS is effectively used for evaluating performance and making essential modification in the organizational plans and procedures.

4. It can bring synchronization: MIS facilities incorporation of specific activities by keeping each department aware of the problem and requirements of other departments. It has an important role in connecting the entire decision centers in the organization.

5. MIS makes control easier: it serves as a connection between managerial planning and control. It may improve the aptitude of management to assess improve performance. The usage of computers has increased the data processing and storage capabilities and reduced the cost.

6. MIS assembles, process, stores, retrieves, evaluates and disseminates the information.

5.14.3 Risks Associated With MIS

Risk reflects the potential, the probability, or the expectation of procedures that could unfavourably affect earnings or capital. Management may use MIS to assist in the evaluation of risk within an institution. Management decisions based upon ineffective, wrong, or incomplete MIS may increase risk in a number of areas such as credit quality, liquidity, market / pricing, interest rate, or foreign currency. A faulty MIS causes operational risks and can unfavourably affect an organization's monitoring of its fiduciary, consumer, fair lending, Bank Secrecy Act, or other compliance-related activities.

5.14.4 Assessing weakness to MIS Risk

To function well as an interacting, interconnected, and mutually dependent feedback tool for management and staff, MIS must be "useable." The five elements of a useable MIS system are: timeliness, accuracy, consistency, completeness, and relevance. The convenience of MIS is caught up every time one or more of these elements is compromised.

5.14.4.1 Appropriateness

To make simpler on time decision-making, an institution's MIS should be capable of providing and distributing current information to appropriate users. The information systems must be designed to speed up coverage of information. The system should be in the position to swiftly gather and edit data, summarize results, and be able to adjust and correct errors promptly.

5.14.4.2 Uniformity

To become dependable, data should be processed and compiled constantly and consistently. Variations in the data collection can alter information and trend investigation. In adding together, as data collection and reporting processes will change over time, management should institute sound procedures to allow for systems changes. The procedures may be well defined and acknowledged, clearly communicated to appropriate employees, and should consist of an efficient monitoring system.

5.14.4.3 Completeness

All decision makers require full and applicable information in a brief form. The reports designed to remove litter and long details, thus avoiding "information overload."

5.14.4.4 Relevance

Information provided to management supposes to be related. Information which may unsuitable, needless, or too comprehensive for effective decision making is regardless. MIS should be suitable to support the management that using it. The significance of details that provided through MIS systems straight compare to what is needed by the board of directors, decision-making management, departmental or area mid-level managers.

5.15 Achieving Sound MIS

The development of sound MIS is the result of the development and enforcement of a culture of system possession.

Even though MIS may not necessarily decrease expenses, the development of important systems, and their proper use, will reduce the chance that flawed decisions will be made because of incorrect or premature information. Mistaken decisions always waste resources. It can result in a poor impact on income.

MIS that completes the five elements of usability is an essential component to an institution's short- and long-range planning efforts. To attain sound MIS, the organization's planning process should comprise consideration of MIS needs at both the tactical and strategic levels. As instance, at a tactical level MIS systems and report output should support the yearly operating plan and budgetary processes. These must also be used in support of the long term strategic MIS and business planning initiatives. With no the development of an effective MIS, it is very hard for management to measure and monitor the success of new initiatives and the progress of partial projects. Two ordinary examples of that may be the management of mergers and acquisitions and the regular progress and the introduction of new products and services.

Management needs to ensure that MIS systems are developed according to a sound methodology that encompasses the following phases:

• Appropriate analysis of system alternatives, approval points as the system is developed or acquired, and task organization.

• Program development and conciliation of contracts with equipment and software vendors.

• Development of user instructions, training, and testing of the system.

• Setting up and repairs of the system.

The management should consider use of "project management techniques" to monitor progress as the MIS system is being developed. Internal controls must be rush into the processes and at regular intervals reviewed by auditors.

Management also should make certain that managers and workforce obtain early and partial training in MIS. User manuals must be available and provide the following information:

• A brief description of the application or system.

• Input commands, including collection points and times to send updated information.

• Complete lists of productivity reports, including samples.

5.16 Difficulties in Adopting MIS

* Micro finance operations are unique and complex, compared to commercial, retail banking.

* The Micro finance sector is still developing and lacks consistency in its procedures, methodologies, customer characteristics, type of transactions and reporting.

* There is no of-the-shelf software available that can address the requirements of every MFI.

* The MIS that are accessible are difficult and expensive for acceptance by MFIs.

* MFIs lack human and organizational capacity to develop or select an appropriate MIS.

* MFIs operating in remote and isolated areas where communication and power infrastructure do not exist, and are, therefore, forced for using IT equipment required to run MIS applications.

5.17 Information Systems used by MFIs

The micro finance sector is also quite diverse in its use of information systems. Usually it has three types,

5.17.1 Manual System

Some MFIs still rely on manual systems, which involve maintenance of records in forms and ledgers. Organizations having manual systems are either small micro-credit programs or NGOs.

5.17.2 Semi-automated System

More than 50% of MFIs are operating in a semi-automated mode. Inside this category, the spreadsheet is the frequent tool being used either in conjunction with a manual system or with an MIS application that does not fulfill the information requirements of the

MFI. The majority of non-regulated MFIs have semi-automated systems.

5.17.3 Fully Automated System

Few MFIs are fortunate enough to have a fully automated and integrated MIS, fulfilling the whole information requirements of the organization. Such systems are existent with banks or regulated MFIs.

5.18 Disadvantage of Manual Systems

Some of the disadvantages of manual Information Systems are:

* Too laborious and time consuming.

* Level to error.

* Data manipulation and analysis is very difficult

* Maintenance of large amount of data is almost impossible.

Highly inflexible (addition of new products and change in business processes can not be made).

* Business continuity is at risk in case of damage to information due to fire, water or any other disaster.

* Reporting is very cumbersome, time consuming and difficult.

5.19 Benefits of computerized MIS to Micro finance

There is no doubt that “the right information” at “the right time” at “the right place”, is crucial in decision making. Therefore, information and data is considered among the most valuable assets fundamental to the success of an organization. The primary roles of the MIS are to capture information, create new information, store information, and convey information to the user.

The two main objectives of MFIs are Outreach and Sustainability. MIS can add substantial value in achieving both the objectives:

* A major advantage of MIS is that it provides easy access to accurate and up-to-date information. For example, loan officers get information on loans that need follow-up, branch manager's can monitor daily progress of the branch, and senior management can get a full picture of the portfolio performance and quality. The customers obtain quick information on their accounts, payments and balances.

* Information is produced in user-required formats, which facilitates superior understanding, setting priorities, objectives and strategy.

* Key performance indicators provide an overview of the organization's performance, efficiency and effectiveness of business procedures so that timely adjustments can be made.

* The use of ICT helps make MFI services more interactive, available and transparent.

* In terms of innovation, ICT provides full flexibility to structure products and services to the needs of its target group.

* Efficiency and productivity of staff is increased, as they are able to manage more products, customers, and transactions in less time.

* To meet target market needs, introduction of new products and setting procedures is easy and can be quickly applied throughout the branch network.

* It can also provide the flexibility to integrate with other applications and delivery mechanisms MIS lowers transaction cost, increases productivity, reduces risk of failure, and pushes the boundaries beyond bricks and mortar infrastructure to carryout business.

(www.bwtp.org)

(www.management-hub.com)

Chapter No. 6
CONCLUSION AND RECOMMENDATIONS
6.0 CONCLUSION

The study was conducted to assess the services of Habib Bank Limited regarding implementation of management information system. Total 130 respondents were interviewed and appropriate result was obtained with the help of questionnaire. According to results majority of respondents said that management of Habib Bank Limited has not developed and maintained current MIS policy or practice. MIS policies or practice can provide guidance to company employees to achieve their purposes and they believed that these policies provide enough guidance to achieve effective two-way communication between management and employees.

Results showed that 65.4% respondent said that MIS policy or practice is helpful in acquiring, merging, manipulating and up-loading data to other systems but the organization does not review and update MIS policy or practice regularly. Majority of the respondents gave opinion that MIS policy or practice is required to enhance the system in a controlled change environment.

Study revealed that 53.8% respondent replied that management uses a project management technique to monitor MIS development schedules and provides proper information to software house for the development of MIS. Organization is satisfied with the development of the program and contracting for equipment and software. Majority of the respondents were agreed that the company is satisfied with the development of user manuals and testing of the system. In the organization employees are encouraged to filing system for recording keeping with MIS process. The fact can not be ignored that MIS is an effective tool for an organization. So the study also showed that majority (88.5%) respondents said that MIS is an effective tool for the organization.

6.1 RECOMMENDATIONS

* For betterment of the organization, management should development and maintain current MIS policy and practice.

* Implementation of MIS in the organizations enhances staff performance so it must be followed.

* Bank should review and update MIS policy or practice regularly.

* Proper training should be given to higher management and staff regarding Management Information System.

* Bank should have well defined policy to monitor the new Management Information System.

* User manual for the MIS should completely be meaningful and easy to understand.

* Management should encourage filing system for record keeping with MIS process.

* Organization should have its own automated management information system.

* Management system is an effective tool and it supports management to perform in organized manner. So the bank to recognize should use MIS, monitor, measure, limit, and manage risks.

* Information systems should be designed properly to expedite reporting of information.

* The system should be able to quickly collect and edit data, summarize results, and be able to adjust and correct errors promptly.

* MIS should be used for measuring performance and making necessary change in the organizational plans and procedures.

* MIS should be used as a link between managerial planning and control which will improve the ability of management to evaluate and improve performance.

* Management needs to ensure that MIS systems are developed according to a sound methodology.

Chapter No. 7

REFLECTION

“Reflective study is an important part of learning from which we can learn new skills.

It is the art of learning from new experiences and applying them with different methods and practices in order improve actions. It is a continuous process.

In this section I will analyse my experiences of the dissertation of the implementation of management information system to an organization. I will also discuss what problems I faced during the dissertation work and how I have solved them.

Reflective learning gives us sense how we can learn from our experiences and how can we use it in future.

Reflective study facilitates the understanding and assimilation of activities, allowing experiential learning to be transformed into high value knowledge.” (Biggs, 1988).

“Reflective learning is a fundamental part of learning any new skill and is applied subconsciously from an early age. The art of learning from new experiences and applying different methods and practices in order to perfect the action can be taken at it's most basic form in the act of a learning to ride a bicycle, the rider may not consciously be aware that they are reflecting on their actions in order to determine what could be done better but this is what happens. The capacity to reflect on action so as to engage in a process of continuous learning was one of the defining characteristics of professional practice.” (Schon (1983), Kolb (1984)).

Through this dissertation the author has gained the ability to successfully propose and justify a research proposal. The author has learned how to go about writing proposal for any project; and also designing a time frame for the completion of such project within the stipulated period. Clarifying research topic has taught me about proper planning which prevents poor performance.

In the literature review section, I learned to comment and appraise the work of other researchers. I also gained the ability to analyze, criticize and using different theories of different authors. According to Saunders et al, 2007, the literature review is the foundation of research. The critical review of literature requires to be done all through the on the whole research in order to test if the research findings are to be equivalent with the literatures. However the literature review which I have gained will improve my reading and writing skills which will be valuable for me in future. I also gained experience by using a variety of resources like books of different authors, libraries, internet, journals and emerald.

Research approach and strategy designed and selected for collecting data to answer the research questions and they should be conceded out analytically.

In research methodology approach I have learned to collect data and information in order to find the answers of research questionnaires. I also used the model of research onion to reduce errors. I also learned to design effective questionnaire and to use it properly to gain answers of questions to conduct sound research. This ability will improve my analytical and creative thinking. By means of the sampling size has enabled me to meet up the goal as it is more challenging, time consuming and expensive to reach the whole population of a bank. It thought me patience and to wok in pressure and difficult circumstances.

Throughout the dissertation, I achieved the skills to handle business management issues in systematic ways and to solve various corporate problems.

At present, decisions are taken on the basis of past experiences and perceptions but I learned that this should be done with logical and analytical thinking and influential evidences such as available theories and correct data. The aptitude to create research for the purpose of management decision-making enhanced my understanding international business maters.

The quantitative and qualitative data should be analysed properly after collected works, especially quantitative data because it conveys very slight sense to most people, consequently, data needs to be cautiously processed to abstract accurate information. Saunders, 1997 suggested that quantitative analysis techniques comprise creating simple tables, charts and diagrams that show the frequency of occurrence and using statistics as index to allow comparisons during establishing numerical association among variables to complex statistical modelling. I have been able to increase the skills in using statistical method like Chi-square in analyses and understanding of findings in a research work. Furthermore, the skill to sketch out a conclusion from the findings. Also my computer skills has also improve that the use of related software.

Cowan, 1999 suggests that learners are reflecting in an educational sense ‘when they analyse or evaluate one or more personal experiences, and try to simplify from that thinking'. However, as Biggs (1999) says that, ‘a reflection in a mirror is an exact replica of what is in front of it.

In the preparation of this dissertation I got chance to reflect on various implications of a research project. As I was not a staff member of the organization and it will be difficult to carry out the research successfully.

The research has enhanced learning which has built my exhaustively understanding of the impact of implementing management information system in the banking industry. The skills gained throughout this research cannot be quantified but is a boost to knowledge. It will be practically very beneficial for me when I will enter into the business world.

The reflective study helps the students in the following ways

Record personal growth and success

Reflects achievements

State objectives

Plan the actions required and meet them

It will help us to review and plan our course work. It will also prepare us effectively for future carrier. From it we can gain useful information about us which will help and impress our future employers.

The reflection on dissertation is a personal thing, which is provided by the university to complete by ourselves.

There will be different related tasks and assessments in the dissertation module and in the other related modules of our course (employability and project). If we are a Joint degree student we may have two such modules and, perhaps, more than one dissertation to complete.

There are some skills and abilities that I gained during the workout of the dissertation.

1) Improved my knowledge

2) Increased my confidence

3) Enhanced my personal skills

4) Developed my presentation skills

5) Improved my communication skills

6) Enhanced my management skills

7) Improved my organizational skills

8) Gained business knowledge to perform better in a business environment or start my own business

9) Interpersonal skills

10) Oral and presentation skills

11) Communication skills

12) Organizational skills and management skills

13) Information Technology knowledge

14) Learned how to work in groups

15) Sharing knowledge through knowledge

16) To achieve an internationally recognized degree that will help me in my professional carrier

17) To become a successful manager having all managerial skills and knowledge and perform well in business world

18) To compete in the market My teacher helped me a lot in achieving these goals.

These skills will help me to achieve my goals.

I will have also relevant experience through various internships.

During this coursework and dissertation I have learned about following attributes

Self-awareness

From this attribute I gain the knowledge of knowing myself and be able to understand and clarify personal strengths and weaknesses through personal development planning. And to be able to develop my career and represent my own abilities with confidence and self esteem.

Performance

Performance in a variety of idioms and contexts, this attribute helps in understanding the limits and applicability of the subject discipline and be able to perform as a business graduate.

Creative and Ethical

This attribute is about working through problems and making creative and purposeful change and adaptation with an awareness of ethical and moral codes and demonstrating integrity of conduct. This also includes respect for cultural diversity.