Professional Documents
Culture Documents
BY
DECEMBER 2020
Declaration by the Student
I declare that this research project is my original work has never been presented to
any institution of higher learning. No part of this research should be reproduced
without the author’s consent or that of the Kenya institute of Management.
Name…………………..................Signature…............................Date………...…………
KSI/DBM/03123
Name…………………..................Signature…............................Date………...…………
Lecturer Supervising
ii
DEDICATION
This research work is dedicated to my parents Mr and Mrs Paapai who have been
supportive in terms of finances, prayers and moral support.
iii
ACKNOWLEGDEMENT
I would like to thank the Almighty God for enabling me to reach this far. I also wish
to acknowledge the support rendered towards the development of this proposal by
various individuals. My special word of thanks goes to my supervisor Mr. Nicholas
Mutinda for his support and patience as he took me through the research project. I am
also indebted sincerely to my lecturers at Kenya institute of Management for the part
they played in developing my academic life and in this project study. Finally, to the
management of Weetabix East Africa Ltd fraternity for granting me the permission to
undertake this study in their organization.
iv
ABSTRACT
The aim of this study was to establish factors affecting successful implementation of
management information system in production industries with reference to Weetabix
East Africa Company. The specific objectives were to establish the effect of cost,
employee training, financial capacity, level of information technology and
organization culture on implementation of management information system in
production industries. The research was significant to the management of Weetabix
East Africa Company, other related firms and other scholars. The study adopted a
descriptive research design and used stratified random sampling method since the
population was heterogeneous. The target population for this study was 98 employees
and sample size of 49. In addition, a both qualitative and quantitative research method
was employed in data analysis. Data was presented using pie charts, graphs and
tables.
Analysis of the findings that 81% of the respondents agreed that cost affects
implementation of management information system whereas 19% disagreed. The
findings indicated that 79% of the respondents agreed that employee training
implementation of management information system whereas 21% disagreed. Analysis
indicated that 95% of the respondents agreed that financial capacity implementation
of supplies management information system whereas 5% disagreed. Analysis
indicated that 92% of the respondents said that organization culture implementation of
management information system whereas 8% disagreed. Analyst indicated that 82%
of the respondents said that cost affects implementation of management information
system whereas 18% disagreed. Lastly, 82% of the respondents indicated that level of
information technology implementation of management information system while
18% disagreed.
From the study findings, there was need to provide adequate employee training to
enhance successful implementation of employee relations in the management
information system. The organization should adopt the best financial capacity to
ensure overall achievement of the organization goals. A supportive workplace culture
and provision of flexible work-home arrangements is best in an organization. The
organization must draft a wage that is compatible with the organizational objectives
and to ease pressure from cost.
v
TABLE OF CONTENTS
DECLARATION………………………...…….............................................................ii
DEDICATION...............................................................................................................iii
ACKNOWLEDGEMENT.............................................................................................iv
ABSTRACT....................................................................................................................v
TABLE OF CONTENTS...............................................................................................vi
LIST OF TABLES.......................................................................................................viii
LIST OF FIGURES .......................................................................................................ix
LIST OF ABBREVIATIONS.........................................................................................x
OPERATIONAL DEFINITION OF TERMS................................................................xi
CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction............................................................................................................1
1.2 Background of the Study........................................................................................1
1.3 Statement of the Problem.......................................................................................4
1.4 Objectives of the Study..........................................................................................5
1.5 Research Questions................................................................................................6
1.6 Significance of the Study.......................................................................................6
1.7 Limitations of the Study.........................................................................................7
1.8 Scope of the Study..................................................................................................7
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction ...........................................................................................................8
2.2 Review of Theoretical Literature ..........................................................................8
2.3 Review of Analytical Literature...........................................................................22
2.4 Summary..............................................................................................................24
2.5 Conceptual Framework........................................................................................25
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction ........................................................................................................28
3.2 Study Design .......................................................................................................28
3.3 Target Population.................................................................................................28
3.4 Sample Design......................................................................................................29
vi
3.5 Data Collection Procedures..................................................................................29
3.6 Data Analysis Methods........................................................................................30
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF
FINDINGS
4.1 Introduction ........................................................................................................31
4.2 Presentation of Findings ......................................................................................31
4.3 Summary of Data Analysis...................................................................................46
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction..........................................................................................................48
5.2 Summary of Findings ..........................................................................................48
5.3 Conclusions..........................................................................................................49
5.4 Recommendations................................................................................................50
5.5 Suggestions for Further Study..............................................................................51
REFERENCES............................................................................................................52
APPENDICES
Appendix-I Letter of Introduction
Appendix - II Questionnaire
vii
LIST OF TABLES
Table 3.1 Target Population......................................................................................33
Table 3.2 Sample Size..............................................................................................35
Table 4.1 Response Rate...........................................................................................35
Table 4.2 Gender Analysis.......................................................................................36
Table 4.3 Age Bracket..............................................................................................37
Table 4.4 Highest Level of Education......................................................................38
Table 4.5 Number of Years of Service.....................................................................39
Table 4.6 Whether cost affects implementation of management information
system ......................................................................................................40
Table 4.7 Extent to which cost affects implementation of management information
system......................................................................................................41
Table 4.8 Whether employee training affects implementation of management
information system ..................................................................................43
Table 4.9 Extent to which employee training affects implementation of
management information system..............................................................43
Table 4.10 Whether financial capacity affects implementation of management
information system..................................................................................44
Table 4.11 Extent to which financial capacity affects implementation of
management information system..............................................................45
Table 4.12 Whether level of information technology affects implementation
of management information system ........................................................46
Table 4.13 Extent to which level of information technology affects
implementation of management information system...............................47
Table 4.14 Whether organization culture on implementation of
management information system...............................................................48
Table 4.15 Extent to which organization culture affects implementation of
management information system...............................................................49
viii
LIST OF FIGURE
Figure 1.1 Organization Structure of Weetabix East Africa Company....................4
Figure 2.1 Conceptual Framework..........................................................................30
Figure 4.1 Response Rate........................................................................................35
Figure 4.2 Gender Analysis....................................................................................36
Figure 4.3 Age Bracket...........................................................................................37
Figure 4.4 Highest Level of Education...................................................................38
Figure 4.5 Number of Years of Service..................................................................39
Figure 4.6 Whether cost affects implementation of management
information system.................................................................................40
Figure 4.7 Extent to which cost affects implementation of management
information system.................................................................................41
Figure 4.8 Whether employee training affects implementation of management
information system.................................................................................42
Figure 4.9 Extent to which employee training affects implementation
of management information system........................................................43
Figure 4.10 Whether financial capacity affects implementation of management
information system.................................................................................44
Figure 4.11 Extent to which financial capacity affects implementation
of management information system.......................................................45
Figure 4.12 Whether level of information technology affects implementation
of management information system.......................................................46
Figure 4.13 Extent to which level of information technology affects
implementation of management information system............................47
Figure 4.14 Whether organization culture on implementation of
management information system...........................................................49
Figure 4.15 Extent to which organization culture affects implementation
of management information system.......................................................49
ix
LIST OF ABBREVIATIONS
E - Business Electronic Business
ICT Information Communication Technology
IS Information Science
IT Information Technology
HR Human Resource
Ltd Limited
UK United Kingdom
x
OPERATIONAL DEFINITION OF TERMS
Cost The resources utilized by an organization to improve,
maintain and keep the computer systems running. Cost
does not include a mark-up for profit.
xi
CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1 Introduction
This chapter explains the background of the study, the statement of the problem, the
research objectives, research questions, significance of the study, limitations of the
study, and the scope of the study.
1
and information science specialists, hardware resources consist of machines and
media, software resources include both programs and procedures, data resources can
include data and knowledge bases, and network resources include communications
media and networks. Data resources are transformed by information processing
activities into a variety of information products for end users. Lastly, Information
processing consists of input, processing, output, storage, and control activities.
A great number of organizations could not operate properly and successfully without
the implementation of Management information systems. Management information
systems make it possible for organizations to get the right information to the right
people at the right time in the right form by enhancing the interaction between the
organization’s people. Management information systems play a key role in the life of
organizations; it provides the appropriate information in right time as needed to
support the management activities. MIS allows information to move between
departments instantly, reducing the need for face-to-face communications among
employees, thus increasing the responsiveness of the organization. It is one of the
most important tools in any organization, which aims to provide reliable, complete,
accessible, and understandable information in a timely manner to the users of the
system (Hill, 2003).
2
Businesses and other organizations around the world, internal reporting was produced
manually and only periodically, as a by-product of the accounting system and with
some additional statistic(s), and gave limited and delayed information on management
performance. Data was organized manually according to the requirements and
necessity of the organization. As computational technology developed, information
began to be distinguished from data and systems were developed to produce and
organize abstractions, summaries, relationships and generalizations based on the data
(Laudon, 2010). In the last decade, Kenya has seen a lot of development in the
application of information communication technology. However, the numbers of
organizations, especially the growing ones are still using old management systems in
management. Based on preliminary interviews with some of the employees of
production companies, the main problems hinder the successful adoption of MIS are
system quality, information quality, service quality, top management support, end-
user training, technology self-efficacy, and user experience.
3
Figure 1.1 Organization Structure of Weetabix East Africa Company
General Manager
4
Most studies have been conducted on information management system in different
sectors of the economy around the world. In Israel, Giunipero (2015) studied on the
barriers of effective MIS implementation in a case of listed companies and found that
with implementation of MIS, manufactures and companies can expect improved
performance in lead times, quality levels, labor productivity, employee relations,
inventory levels and manufacturing costs. For organization like firms engaged in
production of goods, it means the situation may be different, thus the need for the
current study. In Tunisia a survey conducted by Murat (2014) shows that obstacles to
adoption of management information system is failure by the management to involve
all the employees in the organization. This has led to failure by staff to provide crucial
information and documents that are crucial for its adoption in the organization which
hinders successful implementation of management information system in the
organization. Findings from a study by Kenneth (2010) on personnel database in the
public sector in Tanzania concluded that, sustainability of the implementation of
management information system in the public sector is clearly undermined by poor
management and organization culture in the constituent element which must be
addressed by all implementing stakeholders. In Kenya, Borura (2010) in his study that
focused on determinants of an effective information management system in the
financial sector recommended that training should take place very close to the time of
actual installation. The study however did not triangulate to get the view of senior
managers. Despite the comprehensiveness of these studies, their findings were
inadequate in providing the factors affecting successful implementing of information
systems. It is this background therefore that necessitated a study to establish factors
affecting implementation of management information system in production industries.
5
ii. To establish the effects of employee training on successful implementation of
management information system in production industries
iii. To determine the effect of financial capacity on successful implementation of
management information system in production industries
iv. To establish the effects of level of information technology on successful
implementation of management information system in production industries
v. To examine the effects of organisational culture on successful implementation
of management information system in production industries
6
1.6.3 Other Researchers
Academicians and scholars will also find this research valuable in their pursuit for
advanced knowledge in innovative use of information systems on development of
management information system in production industries. It will also contribute to the
empirical literature in the same area of study.
Some of the respondents were not willing to give information thinking that their
identity would be revealed and that would work on their disadvantage. To solve this
limitation, the researcher explained to them the importance of the study to the
company hence convincing them to participate
7
CHAPTER TWO
LITERATURE REVIEW
2.1. Introduction
This chapter presents a review of related literature. It will enable the researcher gain
knowledge from previous research and come up with other useful information to
strengthen the study.
2.2.1 Cost
According to Bhabatosh (2014) cost is the amount of the expenditure (actual or
notional) incurred on or attributable to a specified thing or activity. It also represents a
sacrifice, a foregoing, or a lease of something of value. The committees on cost
concept and standards of the American Accounting Association supports the view that
business cost is a lease of value for acquisition or creation of economic resources and
is measured in terms of monetary sacrifice involved. For example, the material used
for production, the cost is measured by the amount of money that had been paid to
procure the materials. Cost is therefore resources sacrificed or forgone to achieve a
specific objective (Wang, 2006). Information Systems implementation is often a high
cost and high risk proposition involving social and technical uncertainty. Over the
past two decades, many organizations have implemented systems for capturing digital
content as records and managing digital records throughout their life cycle. The
success of the implementation various types of MIS differ from one organization to
another (Appari, 2010).
Contrary to other people’s opinions, some scholars have argued that a successfully
implemented MIS, however costly it seems, leads to decreased transaction costs and
greater efficiency. This is evident from a study by Bakos (2015). The study argued
that MIS technology is generally implemented to reduce coordination costs, increase
productivity, or in response to the demands of a powerful trading partner. In
cooperating an internet for instance makes communications between departments,
individuals, or organizations more cheaply comparing to one having to move around
or writing letters to convey a message. Computer usage makes work easier and faster
in comparison to the old methods of writing and storage of information which are
always tedious, clumsy, and costly and more time consuming.
8
Clemon (2015) established that many supplier organizations that implement IS
technology do so only at the insistence of a dominant customer and receives little or
no benefit themselves. For these firms, implementation is costly but required to
preserve an existing business relationship, with the dominant business partner
threatening to withhold business if implementation does not occur within a specified
time-frame. Dacovou (2007) described these firms as coerced adopters since there are
no ongoing benefits that are associated with the new system (other than continued
business). These adopters have a strong incentive to make a low-cost, one-off
investment in IS technology. In other words, these firms will select a low cost
solution, and once purchased, minimize the ongoing cost by not maintaining the
technology. The low cost of this solution suggests that management involvement was
minimal (other than approving the package selected), and that the technology will not
be integrated with other systems.
Burgess (2012) carried out a study entitled understanding failures and successes of
MIS. The study was carried in the United Kingdom. According to the study, MIS
programs in organizations had been criticized on the ground of excessive time, cost
and disruption of implementation and the sometimes-limited benefits once the
systems become operational. The study further postulated that for small organizations,
9
putting on sophisticated and costly IS systems will lead to unnecessary incurrence of
loss. That the sophisticated MIS equipment’s were not so much beneficial to the small
organizations in terms of efficiency and cost reduction hence the reluctance of some
of the management in implementing the same. Some other studies however have
shown varied results.
10
settings, human resource development is the framework that focuses on the
organizations competencies at the first stage training and then developing the
employees through education to satisfy the organizations long team needs and the
individuals’ career goals and employee value to their present and future employees.
Scrivens (2014) observed that training improves proficiency and enable a person to
qualify for promotion and it is supposed to be continuous exercise. Therefore the
purpose of training is to improve skills, knowledge and change altitude. This is
concerned with improving of skills of employees i.e. both new and old. If companies
are to survive they must attach the out most importance of training their employee’s
sales force. Training can thus increase the confidence and motivation of staff,
secondly, it provides recognition, enhance responsibility and possibility of increased
pay and promotion it also gives a feeling of personal satisfaction, achievement and
broad opportunity for career progression. Finally, training helps to improve the ability
and quality of staff thus increasing the level of individual and organization
competence.
The findings of another study by Menza (2007) also showed the need of training for
effective implementation of MIS in any organization. The study found that if the end
user of an ICT system did not receive prior training, then there is bound to be
resistance in terms of usage of the system. His postulation in his finding is that the use
of report generators and user training in reporting applications are critical to MIS
project implementation success. According to the study, insufficient end user training
11
can generate resistance to using the system, largely because people are ill-prepared for
using it effectively. Training has been found in some other studies to be critical in
effective implementation of MIS.
Borura (2010) carried out a study on MIS implementation in Kenyan parastatals. The
study relied heavily on primary data that was collected by use of structured
questionnaire. The questionnaires were distributed through ‘drop and pick’ method
and in some cases by email. The study adopted a survey research design. The survey
design was preferred because the researcher intended to collect cross sectional data on
the practice and challenges of information systems implementation in Kenyan
parastatals. In addition, it allowed large amounts of data to be collected from a
substantial population in an efficient manner. Although survey design was time
consuming, the method was useful as it allowed comparisons to be made easy from
the results. The study found that were issues related to lack of adequate training
among the staff that used MIS system. The study recommended that training should
take place very close to the time of actual installation. According to the study, it is a
waste of time to train people on new system more than a week or two before the new
system is implemented because most people simply forget what they learned in the
training session. The study however did not triangulate to get the view of senior
managers.
12
tendency to emphasize subject specific knowledge rather than trying to build core
learning abilities.
Brian (2016) Determine what skills are most pertinent to address current or future
company needs or one that will provide the biggest payback. In today’s fast-paced
economy, if a business isn’t learning is going to fall behind. A business learns as its
people learn. Communicating the expectations that all employees should take the
necessary steps to hone their skills and stay on top of their profession or field of work.
One must make sure they support those efforts by providing the resources needed to
accomplish this goal. The purpose of training is to improve knowledge and skills, and
to change altitude: training is viewed as one of the most important motivators that can
lead to possible benefits for both the team and the organization as a whole.
13
finance is a crucial component in efficiency of an organization. A major problem
arises when there is poor management of finance by the management.
According to Cole (2012) prudent financial planning is a dynamic process that deals
with allocation of various Financial Capacity in order to meet strategic goals and
objectives of the business. Financial planning involves planning for finance and
planning for operations. Operation managers are concerned with sales and production
whereas financial planners are interested in financing the operations nevertheless
financial planning is considered to be one single process that encompasses both
operations and financing. Financial planning in an organization links the goals a
business wants to achieve in the future and the resources it will need to achieve these
goals. It is also concerned with evaluating the financial resource of a business.
Financial management is about setting the goals throughout the business and deciding
what resources was needed to achieve these goals.
Finance is the lifeblood and nerve center of a business, just as circulation of blood is
essential in the human body for maintaining life finance is very essential to smooth
14
running of the business. Right from the beginning, I.e. conceiving an idea to business
finance is needed to promote or establish the business acquired fixed assets, make
investigation such as market survey, develop products keep men and machine to work
encourage management to make progress and create values. Even an existing concern
may require further finance for making improvement to make progress and create
values. Thus the importance of finance cannot be over emphasized and subject of
business finance became utmost important both to the academicians and practicing
managers (Armstrong, 2011).
According to Koontz (2016), a new venture requires seed capital during the pre-start
and short-up phases. Seed capital is the cash needed for implementation of e-
procurement. Seed capital requirements range from small amount to large amount of
cash. Capital as investment and possession of a business used to generate income in
most instance capital was considered to include money, equity in equipment,
facilities, or assets that can be transformed to business use.
15
before a financing contract was issued. Financing capacity is required for a business
before a financial contract is issued (Tony, 2011).
The key survival in every business lies in anticipating pattern of changes and aligning
strategies to respond to changing business environment. In this regard, business firms
have continued to invest highly to the development of their capacity through
information gathering, analysis, interpretation and communication so as to facilitate
decision making. Information Technology cuts across all departments in business
organization .With every changing business needs. Information Technology projects
are inevitable to every business firm. Found out that business enterprises are unable to
operate under costs using information technology services (Dessels, 2014).
16
it successfully develops strategies to confront five competitive forces that shape the
structure of competition in its industry.
Chapman (2013) studied how technology is used in hiring, evaluating large numbers
of job applicants and finally selecting the most competent applicant for firms which
are in the manufacturing industries in Nairobi. It was found that in order to deliver the
strategic competencies promised remained unrealized. Initial findings suggested that
although technology has evolved and systems have been upgraded, Human Resource
Information Systems was used to automate routine tasks and other functions
traditionally performed by HR professions, it was also noted that its strategic potential
was not realized. The results of the study showed three main challenges that hinders
HR from playing their role as a strategic partner. The first challenge was getting full
support and commitment from the senior management and the resources required for
upgrading the system. The second concern was managing functionality associated
with the system and its complexity. The third challenge was user acceptance most
especially the key managers and employees and how to manage changes that comes
with the introduction of the new system or upgraded system.
19
multidimensional, with many different components at different levels, no particularly
dynamic and ever changing and as taking time to establish and therefore time to
change.
Ford (2010) holds that organizational culture plays an important role on the growth
and development of an organization, and can substantially impact organizational
performance. There has been significant research to explore the relationship between
organizational culture and organizational performance and employee productivity.
Muchemi (2016) asserts that organizational culture could be used for measuring
economic performance of an organization. The author asserts with certainty that
embedded cultures exert considerable influence on organizational behavior and
therefore performance. Felstead (2002) says that the level of innovation of an
employee, performance in a team, commitment to the job and other factors are
determined by the immediate work environment that the employee is surrounded with
and their engagement level in the organization. The organizational culture has been
defined as a pattern of shared basic assumptions that are learned by a group as it
solved its problems of external adoption and internal integration that has worked well
20
enough to be considered valid and, therefore, to be taught to new members as the
correct way to perceive, think, and feel in relating to those problems (Anumba, 2015).
Another approach to organization culture has been developed by Wallach (1983) and
used by Mulabe (2013) to study the influence of organizational culture on the
21
performance of state corporations in Kenya. Wallach (2015) looked at culture as a
combination of three categories, bureaucratic, innovative or supportive to varying
degrees. Wallach (2012) states that the organizational culture index, profile culture on
the three stereotypical dimensions. The author asserts that the flavor of an
organization can be derived from the combination of these three dimensions. A
bureaucratic culture is hierarchical compartmentalized organized systematical and has
clear lines of responsibility and authority. An innovative culture refers to a creative,
result-oriented, challenging work environment. A supportive culture exhibits
teamwork and a people oriented encouraging trust work environment.
Organizational culture has often been cited as the primary reason of the failure of
implementing organizational change programs. Songer (2011) argues that
organizational culture is mainly the reason for poor implementation of information
technology systems rather than technology issues. Amanda (2016) in his study on
understanding cultural impediments to ICT system integration; observed that it’s
important to recognize that technology and culture are intertwined, as technology
affects and is affected by the prevailing cultural environment.
According to Phegan (2012), culture is a social control system. Here the central role
of culture is promoting and reinforcing right thinking and behaving, and sanctioning
wrong thinking and behaving. In such cases the key idea motivation behind culture is
behavioral ‘norms’ that must be up held, and the associated social sanctions that are
22
imposed on those who do not ‘toe the line’. Culture is unique to organizations but
there can also be diverse cultures within an organization. An organization’s culture
was evident in the way it conducts its business, treats its employees, customers and
the wider community. It also overflows to business processes including the latitude
allowed to employees in decision-making, developing new ideas and personal
expression, how communication flows within the organization and the commitment of
employees towards collective objectives.
The crucial purpose of culture, according to Dessels (2011), is to orient its members
to reality in ways that provide a basis for alignment of purpose and shared action.
Most managers have their own style but may be influenced by the organizational
culture that may then produce a prevailing management style that represents the
behavioral norm for managers that is generally accepted and adopted. Larger
organizations may however experience diverse and sometimes conflicting cultures
due to different characteristics of the management teams. For example, the culture of
an outward-looking marketing department may vary considerably with that of and
internally focused IT department. Organizational culture influences leadership or
management styles.
Scrivens (2004) observed that training improves proficiency and enable a person to
qualify for promotion and it is supposed to be continuous exercise. Therefore, the
purpose of training is to improve skills, knowledge and change altitude. This is
concerned with improving of skills of employees. If companies are to survive they
23
must attach the out most importance of training their employee’s sales force. Training
can thus increase the confidence and motivation of staff, secondly, it provides
recognition, enhance responsibility and possibility of increased pay and promotion it
also gives a feeling of personal satisfaction, achievement and broad opportunity for
career progression. Whereas this is true, the author has failed to show how employee
training affects implementation of management information system in production
industries in Kenya hence the need for this study to be conducted to fill the gaps.
Dessels (2011) notes that culture can either facilitate or inhibit institutional
transformation depending on whether or not the existing culture is aligned with the
goals of the proposed change. In terms of culture facilitating innovative initiatives in
the public sector and providing a supportive environment for developing enterprising
leaders. Training failure can be a manifestation of the values, beliefs, and
24
assumptions. Absence of a learning culture is an inhibiting factor to training. It is
difficult to develop a learning culture. It is very difficult to motivate employees to
share knowledge or engage in learning process if they are not used to this or perhaps
even reluctant to do so. Although this true, the author failed to indicate how
organization culture affects implementation of management information system in
production industries in Kenya hence the need to conduct this research.
2.4 Summary
Contrary to other people’s opinions, some scholars have argued that a successfully
implemented MIS, however costly it seems, leads to decreased transaction costs and
also greater efficiency in an organization. MIS technology is generally implemented
to reduce coordination costs, increase productivity, or in response to the demands of a
powerful trading partner. In cooperating an internet for instance makes
communications between departments, individuals, or organizations more cheaply
comparing to one having to move around or writing letters to convey a message.
Computer usage makes work easier and faster in comparison to the old methods of
writing and storage of information which are always tedious, clumsy, and costly and
more time consuming.
25
Modern information technology entry into the market has largely contributed to the
welfare of the economy varying from the reduced paperwork, security, transport,
communication and even reduced manual work. Paperwork has been an unseen
consumer of every economy since it is just viewed as a normal procedure. There has
been easier maintenance of security in delivery of products in terms of tracking cars
and their routes; this has brought quick and cheaper means of retrieving of lost goods
or even information.
Cost
Employee Training
Implementation of successful
Financial Capacity management information
system in production
industries
Level of Information
Technology
Organization Culture
26
2.5.1 Cost
MIS programs in organizations had been criticized on the ground of excessive time,
cost and disruption of implementation and the sometimes-limited benefits once the
systems become operational. The study further postulated that for small organizations,
putting on sophisticated and costly IS systems will lead to unnecessary incurrence of
loss. That the sophisticated MIS equipment’s were not so much beneficial to the small
organizations in terms of efficiency and cost reduction hence the reluctance of some
of the management in implementing the same. Some other studies however have
shown varied results.
27
2.5.5 Organization Culture
Management systems are directly related to continuous learning cultures that engage
in training and development and encourage employee improvement and initiative.
Other cultural measures such as employees’ reactions when training is applied,
language use and congruence of the training with the organizations cultural norms and
structure are also likely to affect management development.
28
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This section highlights the research design and methodology used in the study. It was
divided into five parts namely; research design, target population, sampling design, and
data collection instruments and data analysis methods.
Top Management 4 4
Middle Management 8 8
Support Staff 86 86
Total 98 100
29
3.4 Sample Design
According to Mugenda & Mugenda (2003), the sampling frame of the study was the list
of employees obtained from the employees of Weetabix East Africa. A sample is part of
the target (or accessible) population that has been procedurally selected to represent it.
A sample is a finite part of a statistical population whose properties are studied to gain
information about the whole. Stratified random sampling was used because the group
was heterogeneous and the researcher wanted each member of the target population to
have an equal chance of participating in the study. Sample size was picked by use of
stratified random method with the strata divided with the population in each stratum
which will be 50% and this enabled the researcher to get the much needed information
from the findings. From the study population, a sample size of 50 percent was taken
giving rise to a sample size of 49 as summarized in table 3.2 below.
Table 3. 2Sample Size
Top Management 4 2 4
Middle Management 8 4 8
Support Staff 86 43 86
Total 98 49 100
3.5.1 Questionnaires
Primary data was used this study. The data was collected from all employees of
weetabix through a questionnaire. The researcher used questionnaire as the data
collection instrument. Data was collected using structured questionnaires since they
are easier to administer and analyze (Orodho, 2009). Questionnaires are most suitable,
because the researcher was able to collect sufficient data within a short period of time.
Two categories consisting of closed ended and open ended questions were used to
collect data from the respondents in the study. The closed ended questionscollects
quantitative data and open ended questions collect qualitative data.
30
3.5.2 Validity and Reliability of Research Instruments
Oso (2009) states that validity is the accuracy and meaningfulness of inferences that
are based on the research results. It is the degrees through which results are obtained
from the analysis of data represent the phenomenon under study. Reliability is a
measure of the degree to which a research instrument yields consistent results or data
after repeated trials. The researcher sought permission from the relevant heads of
department. To ensure reliability the researcher gave the questionnaires to five
students. With respect to reliability, the researcher amended the questionnaire after
the pretest to ensure there is no ambiguity so that employees answered the
questionnaires with ease.
31
CHAPTER FOUR
4.1 Introduction
In this chapter the researcher carries out an analysis of date using both quantitative
and qualitative methods. The analysis process is done on the basis of the variables of
the research objectives. The analysis and interpretation of data is done by the help of
analyzed tools such as graphs, pie charts and through judgment due to observations
made.
4.2 Presentations of Findings
Table 4.1 Response Rate
Category Frequency Percentage
Response 43 84
Non Response 8 16
Total 51 100
Source: Author (2020)
32
Table 4.2 Gender
33
Category Frequency Percentage
18 -20 Years 3 7
21-30 Years 22 52
31-40 Years 13 30
41-50 Years 3 7
Above 50 Years 2 4
Total 43 100
Source: Author (2020)
Below 1 Year 9 21
34
2–3 Years 7 16
3– 4 Years 15 35
Over 5 Years 12 28
Total 43 100
35
Total 43 100
Source: Author (2020)
Table 4.5 and figure 4.5 indicated that majority of the respondents 56% were
university graduates. The study also revealed that 35% of respondents had college
education while 9% had secondary education. This indicates therefore that most of the
respondents were learned, hence well informed of their rights and expectations as
both internal and external customers of the organization.
4.2.6 Cost
Table 4.6 whether cost affect successful implementation of management
information system in production industries.
36
Total 43 100
4.2.7 Cost
Table 4.7 Extent to which cost affect successful implementation of management
information system in production industries.
Category Frequency Percentage (%)
Very Large Extent 20 47
Large Extent 8 18
Medium Extent 5 12
37
Small Extent 2 5
No Effect 8 18
Total 43 100
38
Figure 4.8 Effect of Employee Training on a successful implementation of
management information system in production industries.
39
Figure 4.9 Whether Employee training affect successful implementation of
management information system in production industries.
40
Source: Author (2020)
Analysis from the table 4.10 and figure 4.10 above indicates that 95% of the
respondents indicated that Financial Capacity affects implementation of management
information system in production industries whereas 5% of the respondents were of
the opinion that financial capacity does not affect implementation of wage
management policy in the service sector in Kenya. Based on these results, it can be
deduced that financial capacity affects successful implementation of management
information system in production industries.
41
Figure 4.11 Whether financial capacity affects successful implementation of
management information system in production industries.
42
Source: Author (2020)
Table 4.12 and figure 4.12 shows the response on the effect of Organization Culture
on affecting implementation of management information system in production
industries According to the study, 92% of the respondents indicated that Organization
Culture affects affect successful implementation of management information system
in production industries. While 8% of the respondents felt that it does not affects
sucessful implementation of management information system in production
industries. The study therefore shows that organization culture affects sucessful
implementation of management information system in production industries.
43
Figure 4.13 Extent to which Organization Culture affect successful
implementation of management information system in production industries.
44
Source: Author (2020)
Table 4.14 and figure 4.14 showed the response on effect of Level of Information
Technology with 82% indicating that it affects the implementation of management
information system in production industries while 18% diagreed. Majority of the
respondents agreed that Level of Information Technology does affects sucessful
implementation of management information system in production industries.
45
Total 43 100
From the table 4.15 and figure 4.15 indicate the extent which Level of Information
Technology affects implementation of management information system in production
industries where 42% indicated very large extent, 8% indicated large extent, medium
extent was 11%, 21% small extent while 18% represented no effect. It can be
concluded that Level of Information Technology affects sucessful implementation of
management information system in production industries.
46
over 5 years was 28%. From the data analysis, there was response of 56% were
university graduates, 35% represented college while 9% had secondary education.
4.3.2 Cost
From the response provided by the respondents, the findings indicated whether Cost
affect implementation of management information system in production industries
where 82% of the respondents who participated in the study indicated that indicated that
it does affect the organization while 18% of the respondents who participated in the
study indicated that it does not affect. This indicated that Cost do affects sucessful
implementation of management information system in production industries.
47
indicated that employee training do affects sucessful implementation of management
information system in production industries.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter summarizes, discusses and makes conclusions on the findings of this study
in relation to the objectives put forward in chapter one. It also discusses the
recommendations for further research as well as recommendations for policy and
practice.
48
5.2 Summary of Findings
From the study analysis, it was noted that financial capacity affects sucessful
implementation of management information system in production industries. The
response of 39% of the respondents indicated very large extent, 22% large extent,
medium extent was 26%, 18% indicated small extent while very small extent was
represented by 5%. This indicated that majority of the respondents showed that
employee involvement of operationaffects the organization at very large extent.
49
5.2.5 To what extent does employee training affect successful implementation of
management information system in production industries?
From the study analysis it was noted that training affects implementation of of
management information system in production industries A response of 42% of the
respondents indicated very large extent, 8% large extent, medium extent was 11%,
21% indicated small extent while very small extent was represented by 18%.This
indicated that government policy affects implementation of management information
system in production industries.
5.3 Conclusion
It can be concluded that Cost affect implementation of management information
system in production industries Lack of financial and technical resources has become
significant barriers for successful implementation of management information system
in production industries and requires substantial Cost for success to be realized,
additional hardware and software to enhance communication links, and on-going
expenses during usage.
5.4 Recommendations
5.4.1 Cost
Cost is important in the overall development process as one of major factor of
productivity together with land and laboring the same run. The study recommended that
there is need to provide adequate expression enhance successful implementation of
employee relations in the management information system in production industries in
Kenya.
51
seminars or holding workshops for them to learn more on the necessary operations
pertaining the implementation of green human resource management practices in the
organization.
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APPENDIX II
QUESTIONAIRE
Please answer questions by putting a tick [√] in the appropriate box or by
writing in the space provided.
4. For how long have you served as an employee of Weetabix East Africa
Company?
Less than 5 Years { }
6 – 10 Years { }
11 – 15 Years { }
Over 15 Years { }
SECTION 2: COST
7. Does cost affect successful implementation of management information
system in production industries?
Yes { }
No { }
i
8. To what extent does cost affect successful implementation of management
information system in production industries?
Very Large Extent { }
Large Extent { }
Medium Extent { }
Low Extent { }
No Effect { }
Please explain
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Large Extent { }
Medium Extent { }
Low Extent { }
No Effect { }
Please Explain
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
ii
SECTION 4: FINANCIAL CAPACITY
11. Does financial capacity affect on implementation of management information
system in production industries?
Yes { }
No { }
Large Extent { }
Medium Extent { }
Low Extent { }
No Effect { }
Please Explain
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Large Extent { }
Medium Extent { }
Low Extent { }
No Effect { }
iii
Please Explain
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Large Extent { }
Medium Extent { }
Low Extent { }
No Effect { }
Please Explain
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
iv