MAADA WALABU UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

THE ROLE OF COMPUTER BASED INFORMATION

SYSTEM ON ORGANIZATIONAL EFFIENCIES IN CASE OF CBE IN GOBA BRANCH

A PROPOSAL PAPER SUBMITED TO DEPARTMENT OF MANAGEMENT IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF ART (BA)
DEGREE IN MANAGEMENT

BY; GETA GODAHEGNE

UGR/4421/11

ADVISOR; KAMIL (MBA)

MAY, 2021

ROBA, ETHIOPIA
Acknowledgements
I thank God the Almighty for his faithfulness and protection throughout my study that made it
possible for me to encounter this success.

I take this great opportunity to sincerely thank a number of people who have made it possible for
my proposal paper.
 Abstract

This study was conduct on Role of Computer based information system on managerial decision
making and organizational efficiency. In this study was used the primary and secondary data
collection method during gathering information and our sampling technique was purposive
sampling. The research design that was used in this research was the descriptive method. The
collect data was analyzed and interpreted by using table, percentage charts and graphs. Finally,
conclusion and recommendations was presented.
Table of Contents

Abstract
Acronym
Table of Content Page
PART ONE..................................................................................................................................…1
1. INTRODUCTION...................................................................................................................…1
1.1 Back ground of the study.......................................................................................................................1
1.2 Statement of the Problem...................................................................................................................2
1.3 Research Questions………………..........…………............................................ ... .. ......... ..................3
1.4 Objective of the Study...................……………………………………………………………………..3
1.4.1 General Objective...............................................................................................................................4
1.4.2. Specific Objective..............................................................................................................................5
1. 5. Significance of the study....................................................................................................................5
1. 6. Scope of the Study...............................................................................................................................6
1. 7 Limitations of the study........................................................................................................................6
1.8 Organization of the paper….......................................................................................................6

PART TWO.................................................................................................................................................7
2. LITERATURE REVIEW........................................................................................................................7
2.1 Information and Information System.................................................................................................7
2.2 The role of IS for decision making....................................................................................................8
2.2.1 Transaction processing system (TPS).........................................................................................8
2.2.2 Management Information system................................................................................................9
2.2.3 Executive Information system:-..................................................................................................9
2.3 Efficiencies......................................................................................................................................10
2.4 The Role of IS for efficiency...........................................................................................................11
PART THREE.........................................................................................................................................12
3. RESEARCH METHODOLOGY.......................................................................................................12
3.1Study area description………….……………………………..................................................12
3.2 Research Design..............................................................................................................................12
 3.3Type and Source Of Data..................................................................................................................12
3. 4 Target Population...........................................................................................................................12
3.5 sample size......................................................................................................................................13
3.6 Sampling techniques........................................................................................................................13
3.7 Data Collection techniques................................................................................................................13
3.8 Methods of data presentation, processing and analyzing.................................................................13
3.9 Time schedule ……………………………………………………………………………………….
3.10 Budget line…………………………………………………………………………………………………………………
CHAPTER FOUR......................................................................................................................................14
DATA PRESENTATION, ANALYSIS AND INTERPRETATION........................................................14
4.1 Personal information........................................................................................................................15
4.1.1 Educational Level Of Respondents...............................................................................................15
4.1.2 Current Positions Of Respondents............................................................................................16
Table 4.3: Data on Respondents Current Position Current Position...........................................16
4.3 Objective Of Installing Information System....................................................................................17
4.4 Major Information system...............................................................................................................18
4.3.1 The Banking System.....................................................................................................................18
4.3.2 The Inventory System...................................................................................................................19
4.2.3 The Payroll and Personal system..................................................................................................19
4.3 Arrangements..................................................................................................................................19
CHAPTER FIVE.......................................................................................................................................29
5. CONCLUSION AND RECOMMENDATION.....................................................................................29
5.1Conclusion........................................................................................................................................29
5.2 Recommendation.............................................................................................................................30
Time Schedule...............................................................................................................................32
Cost Budget Allocation For Research............................................................................................32
Reference.....................................................................................................................................33
ANNEX- 1...................................................................................................................................34
ANNEX – 2..................................................................................................................................35
ANNEX -3...................................................................................................................................36
Abbreviation

CBIS Computer based information system

CBE Commercial bank of Ethiopia

IS Information system

TPS Transaction process system

EIS Executive information system

DSS Decision support system

MIS Management information system

List of Tables

Page Table 4.1: Sex composition of respondents........................................................................

Table 4.2: Educational level of respondents................................................................................

Table 4:3 Current positions of respondents.................................................................................

Table 4.4:Managers Response to the information system item utilized. ....................................

Table 4.5:Managers Response regarding training......................................................................

Table 4.6 Employee response regarding training from CBE.......................................................

Table 4.7 Managers response regarding speed and decision makers...........................................

Table 4.8 Managment bodies regarding customer services.........................................................

List of Figures
Page

Figure 4.1Objective of installing IS........................................................................................................

Figure 4.2 Difficulties faced from employees.........................................................................................

Figure 4.3 Difficulties faced from clients................................................................................................

Figure 4.4 Improvement in the employee’s side......................................................................................

Figure 4.5 Improvement in client side.....................................................................................................

Graph 4.1 Client response regarding service received.............................................................................

PART ONE

1. INTRODUCTION

1.1 Back ground of the study

Everybody uses information one way or the other. It is so pervasive that it touches all aspects of
Human life. Information is also an essential elements in the life of an organization without
information business is simply cannot service it is so important that flow of information in an
organization has often to be linked with the flow of blood in the human body. Not so long before
information and information service in many organization are regarded as luxurious and
desirable in times of prosperity, but lately there have been a change in attitude towards
information. Now a day’s information is increasingly being regarded as the primary sources to
managers decision premises, managers who are continually face with several alternatives to
perform their tasks including making a decision need information. Information provides
decision of makers with the means of altering the degree of uncertainty in decision making
situations (Kast 1998), kast has emphasized the importance information in decision making by
suggesting that the key to a good decision is 90% information and 10% Inspiration. And (IS)
plays their role in penetrating the information that is required even though there is no question
that they are very expensive prepositions (Professor Robert.2000).

Definition provided by a management text states that an information system (IS) is a system that
gathers, interprets, compares analyze and disperse information internal and external to the
organization in a timely, effective and efficient manger (Koontz and with rich 1998). O. Brian
defines IS as … of set of people procedures and Resources that collects, transform and
disseminate information in an organization. CBIS is an information system that uses computer
technology to perform some or its entire intended Task” (Turban, 1998). The elements of Is,
which pertain to CBIS. Include, people procedures and resources. People refers to the personnel
involved in Developing and operating the is commonly known as IS specialists) and the users of
the system or for whom information is generated also known as end users. “Procedures refers to
instructions usually in the form of manuals. For using the IS resources refers to the following and
other components of information technology. Involved in capturing and processing data in to
require output information). Hardware (the classical machines computers and related
equipment’s). Software (set of instruction that manage the computer and allow it to undertake the
necessary activities to process telecommunication Network (communication channels that Link
computers and other equipment such as Intranet and internets (Burnsj.m1998).

Turban suggests that mangers should confine themselves to CBIS. Since in realty manual
informal, and other forms of information technology are used Especially the in dispensability of
CBIS in the day to day information requirements of managers, particularly in each mineral
decision making Level need to be over emphasized and also the system Helps to do things fast
and better Efficiency, improved control and we can view this system as an ultimate tool to
provide increased productivity better efficiency, improved control and money saving
mechanisms consequently from organizations of all kinds there has been a heavily investment in
CBIS. CBE is one of such organization which has invested a great deal of money to install CBIS
(computer based information system) with very sophisticated software package (Csekhar 2007).

1.2 Statement of the Problem

Computer based information system (CBIS), Play a major role in supporting managerial
Decision making process and in achieving organizational employee. In Ethiopia there is lack of
awareness of the importance of information and information system for facilitating Decision
making in an organization .failure to use, Information system have its own consequences (such
as loss of competitive edge and customers towards competitor).

During the times when CBIS practice the manual information system collecting, analyzing and
interpreting data, providing appropriate information for the purpose decision making and
communication of information is very difficult, at the end of the day the Bank closed at 3:00 PM
to make cash inflows and outflows manually. When bank practiced manually system on
managerial decision making and the bank closed for a certain period of time in order to calculate
interest this activity is make by using calculators. Calculating interest took several days and
delays the organizations efficiency and decisions making.

IN CBE the transfer service is make using telex and mail, the telex system uses telephone lines.
When communicating it is a risk that other people may listen or overhead their conversation. The
telephone lines may fail to function properly and interrupt the message being transferred. This
study aims at filling this gap by giving the theoretical literature on the impact of CBIS On
managerial decision making and organizational efficiency by taking CBE Goba branch.

1.3Research questions
Hence, the study tried to answers the following questions:-

• How CBIS improves the managerial decision making and organizational efficiency?

• What is the CBIS guarantee the security of communication and interruption of message
being transferred?

• How the CBIS minimize time delay in calculating interest and cash inflows and out flows
which affect the organizational Decision making and efficiency?

• What problems affect the implementation of CBIS in the organization for decision
making?

1.4 Objective of the Study

1.4.1. General Objective

The overall objective of the study is identifying the role of computer Based information system
(CBIS) in managerial Decision making and organizational efficiency, in the selected service
providing organization, CBE (commercial Bank of Ethiopia) Goba branch.

1.4.2. Specific Objective

• To determine if the necessary arrangements and or preparations are make by the Bank
before installation of the Computer Based information system (CBIS)

• To see how far the computerized information system has perform to increase clients
satisfaction

• To investigate what kind of information system will install and the functions performed
by each

• To see how problem affect CBIS for better decision making

 1. 5. Scope of the Study
It is difficult to conduct this study widely range because it consumes higher cost and also
difficult to get relatively accurate information regarding to the study. Due to this reason, scope of
study is limited on Role of CBIS On managerial decision making and organizational efficiency,
in case of CBE particularly Goba branch which is located in the south region 232 km, from
Addis Ababa. The study will be conduct within six months from December to May.

1. 6. Significance of the study

The paper is significant because it enables one to know the role of CBIS on managerial decision
making and organizational efficiency. In addition the paper was producing the following
significant;

• For organization, it give valuable information on implementation of CBIS for better

decision making and organizational efficiency, in Addison recommendation was used
by officials to improve managerial decision making and organizational efficacy.

• It also was used as source of information for future researchers.

• It helps the researcher to understand, and improving the research conducting skills.

1. 7 Limitations of the study

The following are some of the anticipated limitations that the researcher was face while
conducting the study

• Respondents are not willing to give valuable information.

• The employees are not be able to return the questioner on time. Similarly some clients are
not willing to be interview.

• Lack of prior experience in conducting research.

• Even if there is this limitation, every necessary attempt is to make the research reliable.
1.8 Organization of the Paper

These study is organize in such logical manner that chapter one deals with introduction part
which contains; Background of study, statement of problem, research question, objective of
study, general objective, specific objective, scope of the study, significance of the study,
limitation of study and organization of the paper. chapter two is about the review of literature,
third chapter, research methodology which contains; study area description, research design,
sources of data, study of population, sample size and sampling technique, data collection
technique and methods of data analysis and interpretation .the fourth chapter is about data
presentation and interpretation, five the chapter covers conclusion and recommendation based on
the finding of the study.
PART TWO

2 REVIEW LITERATURES
2.1 Information and Information System

Information is data that have been organized so that they have meaning and value to the recipient
then the recipient interprets the meaning and draws conclusions and implication “(turban 1999
page, 46). Data such as customer records, wedge rate) are processed and result in information
(such as invoices payroll’s management reports) which is a basic ingredient in the Decision
making process.

Mangers carry out the tasks of planning, organizing, staffing, leading and controlling by making
decision on the basis of information available to them but the information used should possess
certain qualities. So that it corporate value to the users.

A computer system can be as good as the people suing it (O ‘brien1993, 12) quality information
input and various validation techniques can minimize errors, some of the characteristics of use
full information are that it is relevant, timely, accurate, concise, complete and current,
consideration of these qualities of information are fundamental to the growing need for
incorporating CBIS with an organization (scull the ins, 1995, 23)

O’Brien defines an information system as ----- a set of people, procedures and resources that
collect, transform and disseminate information in an organization: like other systems and IS
includes input (data instructions) and out puts that are sent of end user or to other system.

It also includes a feedback mechanism that control operations.

Computer Based information system (CBSI) is “an IS that uses computer technology to perform
some or all of its intended operations.

Many people mistake IS’s for computer and vice versa the different between two is, computer
provides an effective and efficient ways of processing data and they are a necessary part of an IS.
An IS how ever Involves Much more than computers its basic components are. Hard ware,
software, data base, Network, procedure and people (stair, 1998, 17). The successful application
of an IS requires an understanding of the business and its environment that is supported by the
information system (IS) (Chui thesis, 1995, 85)

Several different IS can exit in an organization some of these are completely dependent but most
are interconnected by means of networks. If the entire company is networked, people can
communicate with each other and access information thought out the organization (O Brien,
1993, 86)

IS at the departmental level support the traditional functional area of the firm, the major
functional are. Accounting finance, manufacturing, marketing and human resource management
Information systems (IS turban, 1999, 72))

Managers on each of the level have different level of Responsibility’s and are therefore required
to make different kinds of decisions by utilizing IS, s (stair, 1998,68)

2.2 The role of IS for decision making

There is no signal system that controls all aspects of computing in an organization. Organization
have many IS serving different organization levels and function (s inn, 1993, 402) he suggests
that these different types of IS are aimed at processing data for one of the reasons to capture the
details of transactions, to enable people to make a decision and for communicate information
between people and location.

Managers on each of the levels are required to Make different kinds of decision there are CBIS
that are designed to many information requirements at each managerial decision making level,
which pertain to both manufacturing and service giving organization taking one example from
each level.

2.2.1 Transaction processing system (TPS)

Or the operational level, IS that assist lower level managers to make operational decisions. These
system ” capture and process data describing business transaction then they update
organizational files and data bases and produce ability of information production for internal and
external use “.(O Brien, 1993 ,39) with TPS accurate and reliable information is made available
at speed, enabling operational managers to make timely decisions.
By virtue of the Nature of operational decision making (as outlined previously). Operational
level CBIS are designed to provide support by generating qualitative information that is task
specific, frequently produced, predictable, very detailed historical, highly structured within the
organization. (seen, 1993, 241)).

A Transaction is any business related exchange such as payment to employees, sales customers
and payment to supplies. A Transaction processing system (TPS) is an organized collection of
people, procure data bases and devices used to record complicated business transaction
(stair,1998,342)) stair say that to understand transaction processing system is to understand basic
business operations and function.

Transaction processing system record and process data resulting from business transaction.
Typical examples are is that process sales, purchases and inventory changes

With transaction processing system accurate reliable information is produced at a speed that
manual information systems for instance cannot rival enabling operational managers to make
timely decisions and allowing them to access and share information products by other parts
departments of the organization through the use of telecommunication networks (O: Brien, 1993,
38).

2.2.2 Management Information system

Also known as tactical level, IS that assist middle level managers to make tactical decisions,
these systems produce several kinds of reports summary, expectation periodic on- Demand to
enable managers this level to spot trends and get on overview of Business activities (O’Brian,
1993, 138))

CBIS at this level provides periodic information about such topics operational efficiency,
effectiveness and productivity by extracting information from the corporate and data base and
processing it according to the needs of the users. (Sinn, 1993, 327)

Tactical CBIS also called Information reporting system (IRS), Data for this system not only from
internal sources (e.g. inputs and out puts of (TPS) but also from external sources (O: Brien,
1993, 141)
2.2.3 Executive Information system:-

Or strategic level, IS that support – top level manager to make decisions these systems provide
top management with immediate and easy access to information about key factors. They draw
data not only from system internal to the organization, but also from those outside such as news
service or market resources data base (O’Brien, 1993, 169).

Strategic management is responsible to establish organizational goals & objective and to control
the overall dissection and performance of the organization strategic CBIS in their design to
support –goal oriented decision, generate both quantitative and qualitative summaries as required
by top management that are future oriented and use unstructured data mainly from external
sources of the original (such as news services or market research data base). (Stair, 1998, 458).

Strategic CBIS called Executive information system (EIS) provide top management with
immediate access to information about key factors, critical to accomplishing an organizations
strategic objectives, EIS, are customs- made for individual executive users as strategic
objectives, differ from one organization to another. EISs when enhanced attributes such as
electronic communications e-mail were processing, computer conferencing; data analysis
capabilities such as query, languages, they are termed as executive decision support system
(ESS) - (Stair, 1998, 460)

EIS that produce analytic model and a variety of flexible reports and help mangers to focus on
the future are termed decision support system. (Ds). IS not only assisting improving information
for decision making situations but also greatly contribute to organizational efficiencies? (Turban,
1999, 501).

2.3 Efficiencies

Oxford dictionary defines efficient to mean “To be able to work well and without wasting time
or resources’’. it is simply doing things right i.e. in a faster and better way .organizations need to
efficiently undertake all their activities in order to gain advantage over their compitions.it
become a major competitive priority that organization has to achieve.

Efficiency is the ability of the extent to which system achieves its goals. It can be computed by
dividing the goals actually achieved by the total of the stated goals. Efficiency like effectiveness
is a relative term used to compare a system meeting the objectiveness for efficiency may involve
tradeoffs interims of cost, control and complexity.

Cost: - includes the up-front expenses of a system as well as any ongoing direct expenses.

Complexity: - relates to how complicated the relationship between system elements.

Control: - is the ability of a system to operate with in

Predefined guidelines: - such as policies, procedures and budgets & the managerial effort
required to keep the system operating within those bounds. (Stair, 1998, 11)

2.4 The Role of IS for efficiency

A lot of activities in an organization are supported by CBIS that lead to organization efficiency.
These include: - economical processing of data, managing large amount of information (i.e.
avoiding Bulky paper documents). Reducing cost. (A system Replaces labor and minimize the
consumption of other resources and supplies). Gaining better access to information through
communication and improvement of customer services. (Sinn, 1993, 321).

Systems also have different capabilities such as performing high speed, high volume numerical
computation providing fast, accurate and in expensive communications within and between
organizations. Storing huge amount of information in an easy to access get small space. (Turban,
1999, 368)

Information system (IS) efficiency is an ability of measuring specific contributions of

information system to organizational efficiencies. Three commonly used measure of IS
efficiencies:- Decision performance:- systems ability of support managerial Decision Making,
usage and satisfaction, the most commonly researched aspects of IS efficiencies’ are the effect
of information system on individual, the organization, system quantity, information quality,
information use, user satisfaction and services quality. Three elements that are investigated and
measured in order to determine whether or not an information system is efficient are:-

• System quality

• Information quality

• System success
These three factors are key components for a business to cultivate a competitive advantage
(Schulthesis, 1995, 391).

PART THREE

3. RESEARCH METHODOLOGY

3.1. Study area description

This research was conduct in Oromia retinal state of Ethiopia Bale zone, Goba town which found
on 232km from capital city of Addis Ababa. This was study contact to assess the role of
computer based information system on managerial decision making and organizational efficiency
in case of CBE Goba branch.
3.2. Research Design

The researcher was used explanatory research approaches.

The descriptive method was performed using alliterate search, surveying certain people about
their experience, and focus group and it also seeks certain people who are knowledgeable and
who might be able to provide you the insight concerning the relationship among variables
(Gupta, 25, 2011) So, this approach was employed to explain the impact of CBIS on managerial
decision making and organizational efficiency in CBE Goba in branch.

3.3 Type and Source of Data

The researcher was used both primary and secondary data sources of data. Hence, The primary
data sources is collect directly from managers, employees and some clients of the bank, usually
methods used to collect primary data are questionnaires and interviews, on the other hand
secondary data use such as books research findings and brochures of the organization.

3.4. Target Population

The researcher was used conduct in Goba CBE in Goba branch. The target population of the
study was 30 employees in organization.
3.5. Sample size
In order to come up with manageable size from the total population the researcher select 30
sample of employees that is 30 of total employees because of the numbers of population is too
small in the branch and the researcher also selected 3 managers from the branch.

3.6. Sampling technique

The researcher was used sampling techniques are employee Purposive sampling techniques. The
researcher employee purposive sampling technique to select employees and managers who have
better working experiance,and who can give more relevant information about the role of CBIS
on better managerial organizational efficiency. According this technique researcher selects 30
employees and 3 managers and questionnaires are distributed for them.

3.7. Data collection Techniques

In this study both primary and secondary data collection technique was used. For clients the
researcher was used interview questionnaire this is because, it is expect that the clients may not
be educate to properly fill the designed questioner.

The other primary data collective tool that the researcher use to collect data from employees and
management personnel is self-administered questionnaire and Unstructured interview because it
is expect that the respondent are educated.

The secondary data necessary for the study is from both published and unpublished materials
about commercial Bank of Ethiopia (CBE) like: - books, research findings, and company
broachers.

3.8 Methods of data analysis and Interpretation

In these study the researcher was used explanatory data analysis then processes on the activity which
involves through editing, coding classifying and tabulating data to make it suitable for further analysis,

Finally the processes and analyze data will be presented, which are methods of presenting, the outcome.
4.1 Time schedule

3.7 time plan

No ACTIVITY NOV DEC JAN FEB MAR APR MAY JUN

1 Title selection 
2 Title approval 
3 Literature 
review
4 Proposal  
writing
5 Proposal first 
draft
submission
6 Proposal final 
draft
submission
7 Proposal paper  
presentation
8 Data collection 
and process
9 Data analysis 
and
interpretation
10 First draft 
report writing
11 Final draft 
report writing
12 Paper 
presentation
4.2 Budget line

Table 2: budget line

No Accessories/Stationary Quantity Unit price Total

price
1 Paper 200 0.25 50birr
2 Printing 55 5 275 birr
3 Photo copy 30 0.50 15birr
4 Pen 6 5 30 birr
5 Binding 4 15 60 birr
6 transportation 15 6 90birr
7 Telephone 4 hours 40 160birr
8 Internet 12 hr. 10 120 birr
Total Expense 800ETB
 PART FOUR
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION
The general analysis of the study was carried out on the role of CBIS on managerial decision
making and organizational efficiency.

The analysis was based on primary data which were collected through questionnaire and
interview and secondary data which were collected from documents and records in the
organization.

Hence from the total number of management and Non- management employees 30 has been
taken as a sample. To assess the impact of computer based information system 30 questionnaires
were distributed to employees and 3 for management bodies were distributed out of the 30
questionnaires of the employees 27 were returned. I.e. 90% of the questionnaire returned and the
remaining 3 were not returned i.e. 10%. As to the second questionnaire 3 were distributed to the
management bodies and all of them were returned i.e. 100% is returned from management bodies
and The researcher, Interviewed 18 clients at the service place to get across their response of the
Bank service and the remaining 2 clients were not interviewed. Because of the information that
clients responded are similar as a result Redundancy, of information is created so to avoid this
rest clients were left.

4.1 Personal information

This is concerned with characteristics of respondents. It covers areas such as sex, level of
education, and current position. The tables below illustrate the demographic characteristics of
respondents:
Table 4.1: Sex Composition of Respondents

G e n d e r F r e q u e n c y P e r c e n t ( % )

M a l e 1 9 6 3

F e m a l e 1 1 3 7

T o t a l 3 0 1 0 0 %

Source: primary data, May 2021

Table 4.1 above, shows the sex composition respondents of managements and non-management
bodies. From the foregoing, the gender composition of the sample is somewhat unbalanced.
Male, who constituted over 63% of the sample, dominates it, a small number of female were also
included. This reflects the unbalanced proportion of female management staffs in wachemo
branches.

4.1.1 Educational Level of Respondents

Table 4.2: Educational Level of Respondents

Respondents education Level F r e q u e n c y P e r c e n t

D i p l o m a 3 1 0

D e g r e e 2 4 8 0

H i g h e r d e g r e e 3 1 0

T o t a l 3 0 1 0 0 %

Source: primary data, may2021

Table 4.2 above shows the educational levels of respondents. Out of the 30 respondents, none
had qualification below first degree. From the data, over 80% of the respondents had a minimum
of First Degree. This clearly demonstrates that the Goba branch has highly qualified and
educated personnel, which greatly affected the study. In a study of this nature, especially with
respect to organizational efficiency and better decision-making, a certain level of thinking is
required from respondents. To this end, the respondents’ level of education was quite useful.

4.1.2 Current Positions of Respondents

Table 4.3: Data on Respondents Current Position Current Position

Respondents current position F r e q u e n c y P e r c e n t

M a n a g e r s o f C B E 3 1 0

Customer service officers 2 4 8 0

C h e c k e r s 2 7

O t h e r 1 3

T o t a l 3 0 1 0 0 %

Source: primary data, May 2021

From the above table, 10% of the respondents were branch managers; while 80% were customer
service officers, these two categories of staffs were quite relevant. Since they constitute the
activity of the organizational efficiency and made better decision making.

The 7% of Checker who were captured in the sample was quite effective to the study particularly
because of their peculiar roles in checking and controlling day today activity of the branch.

Commercial Bank renders various services to its customers. According to the managers response
services like:-

• Foreign Remittance

• Foreign exchange

• Local Transfer

• Saving accounts

• Currents accounts

• Long term and short term loan …etc.

• 4.3 Objective of Installing Information System

Pie Chart Key

 To achieve
40%
Efficiency’s
To decision making
(1 60%2 Purpose

FIG-1 Objectives of installing computer base information system

According to the response of management bodies and as shown in the above figure 67%(2) of the
respondents said that the objective of installing computer based information system is helps to
achieve efficiency of operations interims of: - speed (without wasting much time, customer
satisfaction, reduce work process and work load and render fast as well as reliable service for
internal and external consumption and

The remaining 33% (1) of the respondents replays that the objective of installing computer based
information system is for decision making purpose which composed of assisting the management
bodies in decision making, saving money and controlling purpose, getting information easily and
avoid delay of management in decision making

Generally according to the view and responses of management bodies the main objective of
installing computer based information system in commercial bank of Ethiopia Goba branch was:-

• To achieve efficiency and

• For decision making purpose

4.4 Major Information system

From the responses of the managers group the bank has installed three kinds of information
systems such as:-

• The Banking system

• The Inventory system

• Payroll system

Of the above mentioned systems the bank utilities almost all systems as to the respondents
responds.

N o I t e m Number of Response percentage

1 Does the bank utilize all type of information system installed?

 a . Y e s 2 8 0 %

b . N o 1 2 0 %

Table4.4 Managers Response to Information system utilized

As shown from the above table4.3 2 (80%) of the respondents are said yes i.e. all information
system installed are utilized and the rest 1. (20%) of respondents are responded No. this is due to
the fact that the services given by all information system is not the same more of as the responses
of managers banking system is the major and main information system which used to perform
day to day works (activities). In comparison with other information systems are used for a short
time duration and when needed by the responsible body at targeted periods of time.

4.3.1 The Banking System

The banking system is the biggest and most important system which supports most of the
banking activities. This system is divided in to smaller parts called modules which are based on
the type of account or function they are serving. The modules include saving accounts, checking
or current account, over draft account, loan account, remittance or domestic transfer and
international banking.

4.3.2 The Inventory System

According to the data collected from interview and books. Particularly un structured interview
from managers and other responsible bodies and also manuals and company branches; this
system keeps a record of all the contents or good of the bank. Which can be accessed in seconds,
this system performs the cost and quality control purpose of the different items of the bank. It
calculates the deprecation form time to time which is very help full for decision making purpose
and for the preparation of the account statements to use this system the bank gathers information
from the branches and the head office on the number of inventory item.

4.2.3 The Payroll and Personal system

As the research gathers information or data from primary sources specifically questionnaires and
books this system processes the payroll data of employees of the bank and also the human
resources data of the bank and provides up-to-date information for decision making purpose.
As written in the book the system performance all the addictions such as: - bonus, over time and
deductions such as salary, tax on the salary of the employees.

All in all using the system as a whole has enabled the bank to save money. Because of
automation (computerization) of the banks activates the number of employees has been reduced,
using stat longer materials has been decreased and also other costs have come down.

4.3 Arrangements

According to the responses of the managerial bodies and employees necessary preparation were
made before installing the system. In the form of

• Creating awareness about the system to the employees and clients of the bank.

• By giving training for employees to have the knowledge and skill and also by employing
additional employees who have prior experience and knowledge about the system.

Table 4.5 Managers response regarding train

N o I t e m Number of Response % a g e

1 Does a staff worker get training about the system?

a . Y e s 3 1 0 0 %

b . N o -
 T o t a l 3 1 0 0 %

Source- Primary data may 2021

As shown from the above table 3(100%) of management bodies responds that training were
given for the staff to prepare them to manipulate the system easily, to feed the right information
and to communicate with other computers and none of them is said that training were not giving
for the staff.

From this we understand that training was given for the staff workers and they are working
properly on the system and also they feed the right information and communicate with other
computers.

Table 4.6 Employees response regarding training from CBE

No I t e m Number of Response % age

1 Did you get computer training from commercial bank of Ethiopia?

a . Y e s 2 0 2 5 %

b . N o 7 7 5 %

T o t a l 2 7 1 0 0 %

Sources – Primary data may 2019

As shown in the table above from the total of 27(100%) Employees. 20 (75%) of respondents
said that we are getting training from the bank and the rest 7(25%) responds that they are not
getting training.

As the responses of respondents this is because 25% of employees have prior experience and
knowledge about the computer system.

From the response of employees 75% of them received training from the bank and 100% of
employees have computer knowledge if wrong data is being feed in to the system the only
outcomes as output is wrong information i.e. garbage in producing (GIG0) Having this in mind
the bank found it very essential to train its employees.

From this we observed that employees were getting training from the bank and also they do have
the skill and knowledge as well as experience to manipulate the system well and grounding right
information or outcomes as a result it avoids Garbage out.

The training session include both off the job ( at the training center) and on the Job (with
operating) training program.

Manuals showing both the operational producer and the technical parts of the system were also
prepared for them employees to guide them in the work activities

Results from the questionnaires with operational level workers revealed that they are ready both
physically and mentally to use the computer system. This was possible manly because of the
training given to them and the manuals prepared to guide them in their work activate, besides
this they have been using the computer based information system. Along with the manual system
in a parallel way for over a year- until the bank fully adopted the computer system. Only recently
it is using the system well in present days.

Before computerization of the banking activates the bank was following a different pattern.
When we compare computer based information system with manual system. It has an impact on
efficiencies, speed, work load, decision making purpose.

For getting up to data information 100% of the respondents of management group said that
efficiency and speed are increased because of computer based information system installation
and 96% of employees responded that efficiency increase and at the same times work load
decreased by the same amount.

Table 4.7 Managerial bodies response regarding speed and decision makers

N o I t e m Number of Response % a g e

1 Do computer systems aid decision makers at different level?

a . Y e s 3 1 0 0 %
 b . N o -

2 From Decision point given which one is fast?

A . C o m p u t e r i z e d 3 1 0 0 %

B . M a n u a l s y s t e m - -

C . B o t h -

Sources- primary data may 2019

As shown in the above table 100% of the respondents said that computer system aids decision
makers at different levels at the same time the respondents were asked whether computerized or
manual system is fast for decision making and 100% of them response that computerized system
is fast for decision making and non or the respondents said that manual system is fast because
computerized system helps to avoid delay of information in decision making from this we
understand that computerized system is essential in any organization both in terms of
applicability in different level and speed of decision making. During the time when the bank
used manual system clients and Employees faced difficulties

Fig 2 Difficulties faced from employees

Key
 Time consuming
11%

11% Inaccuracy and in

Efficiency
High work load and
11%
Elle
55
No Good decision
11% Making
No customer
Satisfaction

As shown from the above figure employees responses on difficulties during manual system.
18(55%) of them said that manual system is time consuming either for preparing report, Giving
services and 3(11%) of employees responds that it is in efficient and in accurate and also 3(11%)
of respondents said error and high work load in computerization and performing of activities at
the same time 3(11%) of employees respond do that there is No good decision making as well as
there is poor customer satisfaction during manual system.

From this we understand that employees faced various difficulties like. Time consumption,
inaccuracy, inefficiency error and high work load and also decision making of problem and poor
customer satisfaction during the time of manual system.

Fig 4.3 difficulties faced from clients

Key

40% Error and time

Consumption
No Satisfaction
60%

From the above figure 12(67%) of clients said that there is difficulty of error and time
consumption and 33% (6) of them respond that there is difficulty of satisfaction from this we
understand that clients were long period of time and consumer wastes much time to get service
from the bank as result they faced satisfaction problem during the time of manual system.

In general when activates were done manually it was time consuming tire some and boring and
results were some time in accurate because of computational blunders and it was likely to happen
more effort more cheating or fraud would occur since it was difficult to control each and every
activity.

When manual system was used it took a lot of time to look for documents, to cross check
documents and to process all the check payments manually at the end of the day it was also very
tire some and boring to process the documents manually, errors appeared more frequently and
there was high probability that problems and errors pass without being noticed or identified.

 After installation of CBIS there are improvements in Employees and clie

 Key

20%
Speed and
accuracy
increased
efficiency
increased
55%
work load
25%
decreased

Fig 4.4 Improvement in the employee’s side

As shown from the above figure 52 %(14) of the respondents said that the speed and accuracy of
employees for rendering of services and computation of various activities increased. After
installation of computer based information system where as 26% (7) and 22% (6) of the
respondents replays that increase in efficiency in making decisions, performing activities and
preparing reports and decrease work load in providing service and computations of the
employees respectively are attended after installation of the system.

This shows that installing computer based information system brings an increase in speed and
accurately increases efficiency and decrease work load of the employees in particular and an
overall success of the organization in general.

Key
 Improved customer
47% Services
53% Satisfaction
Increased

Fig 5-4 improvement in client side

As it is shown in the previous analysis computer based information system plays a vital role in
improving the employee’s performance which further brings improved customer service and
increased level of customer satisfaction. According to the investigation made above 61% (11) of
the respondents of clients said that installation of computer based information system brings an
improved customer service and the remaining 39 %(7) of respondents responds that it resulted in
increased customer satisfaction

From this we understand that installation of computer based information system brings or
improves client’s services and also resulted increase in satisfaction of customers or clients.

Graph 4.1 Clients Response regarding services received

 60%

50%

40% Deposit
Loan
30%
Money transfer
20% Other

10%

0%
Deposit Loan Money Other
Transfer

From the above graph we can see that the majority of the clients come to CBE primarily for
depositing their money which constitute around 45% (50) of the total population which is
followed by those clients who come for money transfer which is followed by those clients who
come for money transfer which is 34 (38%) of the total respondents. The remain ring 5 (6%) of
the clients come to commercial bank of Ethiopia both for loan and other types of services other
services like currency exchange.

The respondents are also asked the reason why they prefer CBE for the service mentioned above
and they replay factors such as, It is possible to withdraw money from any branch, the bank near
to their home hospitality of commercial bank workers. Since it is Government bank it provides
guarantee it provides more confidence and safety and it is the first in giving automatic teller
machine services and at the last because of its longer and greater relation with foreign banks.

Table 4-8 management bodies response regarding customer services

N o I t e m Number of Response percentage

1 Do you think the computer system helps you to give better customer services

a . Y e s 3 1 0 0 %

b . N o - -

T o t a l 3 1 0 0 %
Sources – primary data may, 2019

As shown from the above table 3(100%) of respondents said that computer system is essential to
give better customers services and none of them responds that computer system is Not helping
to give better customer services.

Computer system give better customer services because it is fast to give, services and also
because of networking customer can make withdrawals deposits money at any branch of
commercial bank that they prefer according to the interview conducted with the clients of the
bank the other most important use of the banking system along with the network established is
the creation of link (connection) get between computers with in a branch. Because of the
presence of communication among the branches clients can with draw money from any branch in
the country in which they did not make deposits. Un like other times where clients have to
wander here to there and waste a lot of time in the bank now clients walk in the bank do
whatever withdrawal and walk out within 5-10 minutes From this we understand that computer
system is help full to give better customer services for any type of organization like bank and
other.

PART FIVE
5. CONCLUSION AND RECOMMENDATION
5.1Conclusion

The computer based information system has to be successfully in achieving (full filling) the
objectives set for it. From the result of the employees, management bodies and interview with
clients of commercial bank and from the overall observations. It can possible to conclude that the
system has improved to a great extent the operational or organizational efficiencies and decision
making capability. It has also served as a controlling and money saving mechanism and it was
used in different level manager to make decision on differentiates; the system also generates
different reports to the management to make timely and better decisions. Management also
accesses any information from the system within second.

From the response of management group we can see that the bank has installed three kinds of
information systems, the banking system, inventory system and payroll system and the bank
utilizes all kinds of information systems in different level or amount which are installed. Within
the banking system there is an accounting program designed in the context of banking activities.
Which assist the work of the accountant and auditors using the output of different modules? It
produces daily proof sheets showing the debits and credits of the daily transactions then it
produces general and subsidiary ledgers and different accounting reports such as daily account
balance report, trail balance reports and credit summary.

According to the response of management group and employees necessary preparation were
made before installing the system, training were given to employees and manuals were prepared
to guide them. They are ready to use the computer system.

Similarly according to the interview with client and responses of employees during the time
when manuals system was used there were difficulties they faced employees faced efficiency
problem, decision making problem, high work load, use of much time and they were not satisfied
by the services they renders.

After installation of computer based information system there have been improvements from
employees include:

• Increased efficiency
 • Decrease work load

• Increased accuracy and speed

From and improvement clients were

• Increased satisfaction

• better customer services

In general because of the different capabilities of computer based information system a number
of business objectives are supported. Today systems have become a major tool to improve
decision making efficiency, controlling productivity, reduced cost and enhance profit.. Hence
different considerations must be taken by installing computer based information system to
achieve the objectives of an organization.

5.2 Recommendation

Companies in Ethiopia have installed these systems if they are to be successful in today’s world
wide market there are several advantages of information system a few includes :-

• improved customer services

• Better decision making capability

Improved efficiency and higher competitive advantages and also it is very important to be
competent in today’s business environment when ‘information is power.”

This research would like to recommend that all companies that have the financial, material and
human resources capability should better to install information system given the feasibility.

As we are in a world where competitions is getting stiffer and companies from all over the world
are entering in to the market to make an organization success full it is crucial for them to install
information system.

A company should have adequate and qualified human resources to install information system.
Beside this management and employees should have acceptance of the system that is going to be
installed. Otherwise they might challenge and resists it.

Managers should prepare themselves to computer based information system. Since in reality
manual and other forms of technology are used and may even be preferable depending on
particular circumstance. However computer based information system being designed primarily
to achieve efficiency and to assist management

In addition to the a fore mentioned recommendations I would like to give the following points
those which help the organization to be more effective.

Give better and more training for staff workers.

The bank should develop recent technology and good working environment.

The bank should connect all branches with network of computer based information system.

Gather banking related information and experiences from other institutions.

The bank has to be use some employee motivation mechanism like bonus and reward based on
their performance.

At the last it is advisable making the bank more computerized and full filling all necessary hard
ware and software materials which help the organization to run its activates effectively and
efficiently.

Reference

• Dr. A,k “business research method,” Gup”edition 2011

• Htt//www.combanketh.com

• Kast, fremand. E and James. E Rosenz wig, “Organizations and management. A

system and contingency approach, 4th edition, MC Graw- Hill, Inc., 1970

• Koontf, Harold and Heinz- weithrich “Management, 6th edition, Graw- Hill book Co,
1989

• O ‘Brien, James, A “Management Information System, A managerial End user

perspective, 2nd edition, “Richard D. Irwin, 1993

• Schulte’s, Robert and marry summer, “management Information system, 3rd edition,
Richard D. Irwin, Inc., 1995

• Seen, James a, “ Information Technology in Business Principles, practice and

opportunities, 5th edition, prentice, Hall, Inc., 1993

• Sekhar G V Satya (2007). Management Information system. (1 st end).New Delhi :Excel

Books.

• Stair Ralph M, George W. Reynolds, principles of Information system”, 3rd edition a

managerial approach 1998

• Turban, “Information Technology for management “, 4th edition, Ms. (Jaw- Hill, Inc.
1999
 Appendix 1

MADDA WALABU University

College Of Business and Economics

Department Of Management

Questionnaires developed for management bodies of CBE. Dear respondents, I would like to
thank in advance for your cooperation in filling of the questioner. The questions are prepared for
Role of CBIS for organization efficiency and decision making of CBE.

When you fill the questionnaire, please put a tick mark (x) to the closed ended questions and
brief descriptions to the open ended questions.

Part one personal information

1; Gender; Mal……… Female……………

2; Education level; A. pre.unversty B .diploma C .Degree. D .Higher Degree

3; what is your position in your organization.

Part two service delivery

1; what services does the Bank renders?

--------------------------------------------------------------------------

2; what is the Objective of installing of computer Based information system in your

organization?

-------------------------------------------------------------------------------------------------------

3; Does the Bank utilizes all types of its Installed?

 Yes No

If yes what ----------------------------------------------------------------

4; Do you think that computerized system is better to accomplish your task?

Yes No

5; What Role does the computer Based information system have for the activity when you
compare with manual system in terms of:- Speed ---------------------------------------------------------

Decision making ------------------------------------------------------

Efficiency ----------------------------------------------------------

6; Were Necessary preparation made before installing the system?

Yes No

If yes what? -------------------------------------------------------

7; From Decision point given which one is fast?

A Computerized

B. Manual system

C. Both

Which employees are benefited from the computer system?

Management bodied

Non-Management bodies

Both

Do you hope to achieve cost saving by the implementation of the system? How significant?

------------------------------------------------------------------------------

8; Do the computer system aid decision makers at different level?

Yes No
 If yes what ----------------------------------------------------------------

9; which one helps to achieve over all organizational goal?

Manual system

Computer system

10; Do you think the computer system helps you to give better customer service...

Yes No

IF yes how ------------------------------------------------

11’Do all your branch derive the benefit of IS?

Yes No

If yes specify --------------------------------------------

If No compare the performance with Branches that do have

Is in terms?

Decision making -------------------------------------------------------

Efficiency -----------------------------------------------------------

Speed -------------------------------------------------------------------

Client satisfaction ---------------------------------------------------

Client service---------------------------------------------------------

Client feedback ----------------------------------------------------

 Appendix2
MADDA WALABU University
COLLEGE OF BUSINESS AND ECONOMICS

1; Do you have an account in any branch of CBE

Yes No

2. For how long have you been a client of CBE? -----------------------

3; for what type of service do you come to CBE?

Deposit

Loan

Money transfer

All

Other

4; why do you prefer CBE from others?

-----------------------------------------------------------------------------------------------------------------

5; during the time when manual system was used, what difficulties did you face.
---------------------------------------------------------------------------------------------------------------------
-------------------

6; during the time when computer system is used what kind of improvement do you see?
---------------------------------------------------------------------------------------------------------------------
---------

7; Are you satisfied with new computerized system of CBE?

Yes No

If yes what is your reason? ---------------------------------------

8; Due to the fact that CBE is an earlier Bank than others, what do you suggest to compete with
other? ---------------------------------------------------------------------------------------------------
 Appendix 3
Questionnaire developed for employees of CBE. Dear respondents, I would like to thank in
Advance for your cooperation in filling the questionnaire. The questionnaires are prepared for
CBIS for the efficiency and decision making CBE, when you fill the questionnaire please put a
tick mark ( ) for the closed ended questionnaire and brief description for open ended questions.

Place mention your position in the organization?

Do you have computer knowledge? Yes No

1; did you get any computer training from CBE?

Yes No

2; what is the impact of computerized Banking system to employees of CBE interims of:-

Efficiency -----------------------------------------------------------------

Speed --------------------------------------------------------------------------

Work load -------------------------------------------------------------------

3; during the time when manual system was used. What type of difficulties did you face?

------------------------------------------------------------------------------------------------------------

4; during the time when computerized system is used what kind of improvement do you see?

------------------------------------------------------------------------------------------------------------

5; Does the staff workers get training about the system?

Yes No

If yes explain -------------------------------------------------------------------------------------------

If No explain -------------------------------------------------------------------------------------------

6; what was the problem that affect implementation of computer based information system
[CBIS]……………………………………………………………………………….

7. What do you recommend to improve the activity of banking system of CBE?

___________ALL EDIT