CORPORATE ORGANIZATION AND MANAGEMENT INFORMATION SYSTEM

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

Management Information Systems are the instrumentation of an organization.  Their interfaces to the human controllers of business serve as the ‘dials and gauges’ that allow these controllers to ‘read off’ the current state of their organization.  They may record and model all or part of the organization’s activities and provide indicators of any actual or predicted change in state.  Of most value, they record or predict the rate, direction and timing of such changes.

Information guide decision makers in reaching a valid conclusion and making an informed decision conclusion and making an informed decision regarding every area of their responsibility.  Without adequate information, resources will not be located and converted into desirable finished goods aimed at a specific target market for profit.  Since no business entity can survive or remain relevant without effective information, business data must be systematically cap0tured, analyzed, quantified, comp-oiled, and shared and made accessible in order to enjoy the maximum value of information.  A critical feature of any information system should be the ability to not only access and retrieve data, but also keep the archived information as current as possible (Moga, 2007).

Oladejo (2007) described MIS as a system using formulized procedures based on data from both internal and external sources, to enable decision makers make timely and effective decisions, for planning directing and carrying out the activities for which they have appointed.  This connotes that MIS is a system responsible for the collection, processing and communication of define data in order to enhance prompt decision making.  Viewing MIS as data processing or a computer based system would amount to a production oriented view of MIS which places more emphasis on production but generation management involvement makes the system distinctly different from data processing.

From Wikipedia, the free encyclopedia identifies that Management information system (MIS) provides information that is needed to manage organizations efficiently and effectively.  Management information systems involve three primary resources people, technology, and information or decision making.  Management information systems are distinct from other information system in that they are used analyze operational activities in the organization.

Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making e.g. decision support systems, expert systems, and executive information system is presently the organization nervous systems which respond to opportunities and avoid threats.  It is widely acknowledged that firms with the best and most effective information systems are those that have clear and ell thought of information strategy (Harizanova, 2003).

Paul S. Licker (1997) emphasized that management information system (MIS) is an integrated user + machine system that provides information to support operations, management analysis, and decision-making functions in and organization. An MIS contain hardware, software, procedures, data, and people, each component is as important influences the others.  The MIS should relate to their goals of the organization.

MIS is an integrated, computer based, user – machine system that provides information for supporting operations and decision making function.  It is a system using formalized procedures to provide management at all levels in all functions with appropriate information, based on data from both internal and external sources, to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible. (Lucey 1991 Management Information Systems).

When a business event occurs, whether it is the issuing of an invoice, the ticking over into a new financial quarter or staff attendance at a training course the event provides the raw for the MIS.  The event may be record, appropriately stored, transmitted, combined with other raw materials and ultimately presented in some appropriate way.

All the managerial functions planning, organizing, leading, and controlling rely on a steady stream of information about what is happening at, and beyond, and organization.  Only with accurate and timely information can managers monitor progress toward than goals and turn plans into reality.  If managers cannot stay “on track” anticipating potential problems, developing the skills to recognize when corrections are necessary, and then making appropriate corrections or adjustments as they progress their work may be both fruitless and costly. 

Information systems enable managers to control how they do business.  If you were to   look at a new Toyota in a show room, you would find the car has a computer-generated sticker attached to the window to display the pricing and Environmental Protection Agency (EPA) information.  The Toyota dealer probably has a computerized inventory system to tell you if a car is available with the options you want perhaps even the color you have dreamed about.  Should you need financing, the bank computer can help the sales person cheek your credit quickly and close the sale. From the largest corporation to the modest home town auto dealer, the computer plays a vital part in the control of business operations.

Managers at all levels are finding that computer based information systems provide the information necessary systems (MIS) are rapidly becoming indispensable for planning, decision making, and control system will be. With information systems playing such an important role in managing organization, it has become crucial for managers to understand how these systems should be designed, implemented, and managed. 

The successful MIS supports a business long range plans, providing reports based upon performance analysis in areas critical to those plan, with feedback loops that allow for titivation of every aspect of the enterprises including recruitment and training regimens.  MIS not only indicate how things are going, but also why and where performance is failing to meet their plan.

Management information system provides data and information to help the management to make strategic decision (top management decision) and at other levels of management.  Management information system provides the means through which the enterprises activities are monitored, controlled and executed while information’s are distributed to management employees, and customers.   Management information system provides and enhances the overall decision making process.

To be successful and MIS must be designed and operated with due regard to organization and behavioral principles are well as technical factors.  Management must be informed enough to make an (Systems analysts, accounts, operations researchers and others) must become more aware of managerial functions and needs so that, jointly, more effective MIS are developed.  Management do not know enough about management in order to provide relevant information for the mangers to serve.

1.2       Statement of the Problem

The study is concerned with an investigation based on the problems that are facing corporate organization managers on management information systems the problems are as follow:

(i)         The managers were not well thought of information strategy

 (ii)    There is no strong understanding of both management information    system and information technology by the mangers.

1.3       Research Questions

This research work would attempt to provide answers to the following questions:

(i)          To what extent has management information systems helps in     supporting corporate goals and objectives

(ii)         To what extent can mangers evaluate an information system

(iii)        To what extent does management information system police, process aids internal control of an organization

(iv)        To what extent can manger understand a business system so that it can be improved to meet the competitive challenges that have to be faced

(v)         To what extent does MIS helps the real gainers and losers when an information system is installed.

1.4       Objectives of the Study

The purpose of this research is to investigate and examine the following specific objectives of this research:

(i)         To examine if management information system application exist to adequately supports corporate goals and objectives

(ii)        To examine how can a manger evaluate an information system

(iii)       To find out how management information system policies, process, aid and internal control are adequate

(iv)       To determine if a manager understand a business system so that it can be   improved to meet the competitive challenges that have to be faced

(v)        To find out who are the real gainers and losers when an information system is installed

1.5       Research Hypotheses

In order to provide answers to the problems stated and for the purpose of drawing valid conclusion on management information system and corporate organization in Nigeria West African Batteries Limited (WABL). The following hypotheses are formulated:     

(1)        H0: Management information systems has no influence on         supporting corporate goals and objectives

H1: Management information systems has no influence on Supporting               corporate goals and objectives

(2)        H0: Management information systems has no influence on managers in evaluate an information system

            H1: Management information system has influence on mangers in       evaluate an information system        

(3)        H0:  Management information system has no impact on policies, process aids in internal control of an organization

 H1: Management information system has impact on polices, process        aids in internal control of an organization

(4)        H0: Management information system has no impact on manager        understand a business system so that it can be improved to meet the competitive challenges that have to be faced

H1: Management information system has impact on manager understand a business system so that it can be improved to meet the competitive challenges that have to be faced

(5)        H0:   Management information system has no influence on real gainers and losers when an information system is installed

H1:  Management information system has influence on real gainers and    losers when an information system is installed

1.6       Significance of the Study

This study would be of importance to individual, firms, industry, and even the government. Basically, the significance of the study is as follows:

(i)         It helps to ensure consistency and accuracy

(ii)    To help the organization structure themselves to allow easy flow of information

(iii)       It aims at helping organization in evaluating alternative long term and short term planning, preparation of reports and analysis

 (iv)    This study also aims at changing the structure of the way people do their jobs

  (V)     The study will help to promote good image of the company, social responsibility and customer’s confidence

1.7       Scope of the Study

West African Batteries Limited, the organization in which this work is based is indeed a large one.  The study will focus attention on characteristic of an effective management information system in the organization.  The researcher would also make recommendation and suggestions for future researches.

1.8       Operational Definition of Terms

Below lays the definition of some important terms used in the process of this study.  This is done for easy reading of readers.

MIS:- Management Information System is the combination of human and computer-based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning.

Communication:- Communication is a process of passing information from one person to another.  It is the process by which meanings are perceived and understanding reached among human beings.  It includes in addition to written or spoken words gestures, facial expression, posturing of the body and even silence. (Adeyanju, H.I. (PhD) 2010)

Computer:- A computer is an electronic device which is capable of accepting data as input, processes the data based on predefined instruction known as program and give out information as output.  The two major component of a computer system are: Hardware and Software (Kaka O.A & Rufai K.I. 2008)

                       Data:-  This is the term used to describe the basic facts introduced  as the input to a system e.g. rate of pay and hours worked by an employee

Management:- Management can be described as the process of making prudent use of an organization’s resources in order to achieve predetermined goals.  In order words effective management entails the ability of the manger to plan, organize, direct, and control both human and material resources within any given system (Peleyeju Joshua O. 2008)

Information:- Information guide decision makers in reaching a valid conclusion and making an informed decision makers in reaching a regarding every area of their responsibility.  Without adequate information, resources will not be located and converted into finished goods aimed at a specific target market for profit.

System:- A system is a set of two or more element, such as people, things and concept, which are joined together to attain a common objective.  A system consists of a number of smaller systems, which are called sub-systems.   A system is a set of element forming an activity or processing procedure seeking a common goal by operating on data in a time reference to yield information.

Message:-   A message consists of symbols e.g. spoken word, written words, signals, signs etc which are understood by the sender(s) and the receiver(s) which have certain meanings.