GONDAR UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

The role of management information system in

organizational decision making (in case of Ethio telecom,
Gondar branch)

A senior essay submitted to the department of

management in partial fulfillment of the requirements
for the bachelors of Arts in management

By: Melaku Asfaw

Jarso Nura
Nitsuh Amare
Misikir Taddese

ADVISOR: - ALEM G/MEDHIN

JUNE 2007 E.C

Gondar, Ethiopia
 Chapter One

1. Introduction

1.1. Background of the study

The development of advanced electronic equipment realized that organizations

cause computer based for information system for planning, controlling,
decision making and problem solving rather than waiting report of traditional
method. This new types of information usage in organizational decision
making comes to be known as management information system (MIS) or
computer information system (CIS).

Each consists of three related components hard ware, software procedure and
data base. The goal of management information is to enable managers to make
better decision by providing quality information. (Jemes.0, Brien, 1996,) in
many ways managers exert a lot of efforts in making decision or collecting
information to make decision. More over in many organization day to day
decisions embodied in the methodology, rule of philosophy of the company
manager is encouraged to collected data and follows the decision that resulted
from experience.

Decision process problem involves collected data, identified problems, making

choice and implementation. (Post and Anderson, 2014) MIS helps to decision
structured or programmable decision structured decision involves a decision
needed and that can be specified in advance. While unstructured decision
involves situation where it is not possible or desirable to specified in advance
most of the procedures to follow (Jemes, Brien, 1996). Decision making is the
process of identifying and choosing alternative choice on the value and
performance of decision maker. Making a decision implies that there are
alternatives based on value and preference to be consider and is such a case
we want not only identified as many as of the alternatives as possible but to
choose one that has the highest probability of success and that best fit with
our goals, desired, life style, value and so on. Meaning full decision making
requires that workers are able to exercise some influence over their work and
condition under which they work. (Jemes, Brien, 1996). Management
information systems is useful in the area of decision making as it can monitor
by itself disturbance in system determine accuracy of action and take action to
get this in control. It also relevant in non programmer decision as it provides
supports by supplying information for the research, analysis, evolution and
the choice and implementation process of decision making (OBI, 2003)
htt://www. Ccentorganization) Management information system.

Management information system give manager’s quick access to information

this can includes interaction on with other decision support system
information inquiries, cross reference of external information and optional data
mining techniques. (Rhodes 2010) http: //www.ehow.com)

MIS is highly complex and dedicate arena that cause for a lot of caution to be
taken by its managers. It is for this reason that it is recommendable for
organizations to ensure that they carefully select the individual who are placed
to control system. The more cautions and professional person is the better the
person gets an assurance of positive prospects of in MIS with regards to
decision marking and other resulted areas of business (Lingham, 2006) http://
en. Allexprts. Com/ managing business.
 1.2 Statement of the problem

Management information system plays a crucial role in decision making and

other activities in living world, we are living in emerging global information
society with global economy that increasingly dependent on the creation
management and distribution of the information is a basic in a today society,
people and many nations no longer live in agricultural society, where majority
of the work force consist factory workers (J. O’Brien- 1996).

In many organizations massive data is stored on centralized computer. This

basic data is often mentioned by them MIS department users that lead this
data for various reports. In terms of hard ware the MIS department is
responsible for providing the physical connections between the machines.
Besides the initial installation considerable effort can be required to maintain
this network. Modern local area networks have many components, scattered
throughout the firms building, maintenance and correct the problem that arise.
In terms of soft ware, the MIS department has to make sure who that the
information is providing information that can be certain the users are
authorized to access the data (Post and Anderson,
2014).http://allmanagemnt.books.com/main/3064 management information
system.

Ethiopian Telecommunication Corporation is one of the largest governmental

organizations applying Management information system for organizational
effectiveness.

Therefore, the study were try to investigate the role of management information
system in organizational decision making in case of Ethio- telecom Bahir Dar
branch.
 1.3 Basic research questions

 How does information flow in each department support decision making?

 How does the corporation know the decision is held effective or not?
 What is the attitude of the t
  op management of the organization towards the current role of MIS in
the organization?

1.4. Objective of the study

1.4.1. General objective

The main objective of this study is to analysis the role of management
information system (MIS) in organizational decision making of Ethio-telecom
Gondar Branch.

1.4.2. Specific objective

The specific objectives of this study are:-

 To evaluate how information flow in each department support decision

making
 To assess how the organizations know whether the decision is held
effectively or not.
 To evaluate the current role of management information system in the
organization.

1.5. Significance of the study

This study has pivotal role for Ethiopian telecom Gondar branch as well as
different corporation owner. The finding of this study may help the corporation
to under take appropriate measures in dealing with problem related to use MIS
in organizational decision making. More over this study may contribute apiece
of knowledge to literature on the role of MIS in organizational decision making.
Furthermore, the finding of this study might be helpful for policy makers and
practitioners in their attempt to promote the use of technology in
organizational decision making.
Finally this study may also serve as a reference for other researchers who will
interest in related topics. It will serve for the researcher. It is important for
getting knowledge experience, skill and ability about research. More over the
researcher translates theoretical knowledge in to practice.

1.6. Scope of the study

This study has the geographical, the conceptual and methodological
delimitation. This study was conducted on Ethio Telecom Gondar Branch, with
the specific title of the role of MIS in organizational decision making. The
required information islimited to show the role of MIS in organizational
decision making Ethio telecom Gondar Branch. Methodologically this study
was intend to use the cross sectional survey in attempt to achieve its
objectives.

1.7. Limitation of the study

Like other studies this study is also not without its limitation. While
conducting the research, the researcher’s faced some limitations. This may
include some respondents not willing to give necessary information, there was
lack of internet access for searching information, lack of researchers experience
and doing research in parallel with other courses are some of major limitation
that the research was encounter.
 CHAPTER TWO

2 . Literature Review

2.2 Definition of information, system and information system

2.2.1Information

Information is a basic resource in today’s society. We are living global

information society, with global economy which is increasingly dependent on
the creation, management and distribution of information resource (J.O.Brien –
1996).

2.2.2 System
A system is a group of interrelated components working together towards a
common goal by accepting input and producing output in an organized
transformation process such system save times called dynamic system which
has three components or functions. Input involves capturing and assembling
elements that enter the system to be processed.

For example, row material, energy, data and human effort, must be secured
and organizes for processing. Processing involves information process that
converts inputs in to outputs. Examples are manufacturing process, human
breathing process. Output involves transforming elements that has been
producing at transformation process that ultimate destination. Feedback is a
data about the performance of as system. For example a data about sales
performance (James O,Berin, 2003).
2.2.3 Information system
An information system is an organized combination of people, hard ware and
soft ware, communication networks, and data resource that collects, and
disseminates information in an organization. People have relied on information
system to communicate channels or networks and stored data or data
resources since the down of civilization (James. O, Brien, 1996).

2.2.4 Information system resources

Basic information system shows that an information system consists of give

major resources, peoples, hard ware, software, data and networks.

1. People resource; people are required for the operation of all information
system. These people resources include end users is specialists.
 End users also called users or clients: are people who use information
system of the information it produces. They can be accountants, sales
person, engineers or mangers. Most of us are information system end
uses.
 Is a specialist are people who develop and operate informative system
they include system analysis, programmers, computer operators and
other managerial, technical and clerical is personnel.
2. Hardware resource: hardware resources include all physical device and
materials sued on information processing specialty it includes not only
machines such as computers and other equipments, but also data media
that is tangible objects on which data recorded form sheets of people to
magnetic or optical disks. Example of hardware inc computer based
information system are:

 Computer system: in which consists of central processing units containing

microprocessor and variety of inter connected peripheral devices.
 Computer peripherals: which are devices such as key board electronic
mouse for input of data and commands, a video screen or printer for out put
of information and magnetic or optical disk for storage of data resources.
3. Soft ware resource: all set of information processing instruction. This
generic concepts of soft ware includes not only the state of operation
instruction called programs, which direct and control hard ware, but also
the set of information processing instructions needed by people., called
procedures that people needed.
4. Data resources; data is more than raw materials of information systems.
Mangers and information system professionals here broadened the concept
of data resources.
5. Network resources: telecommunication technologic like the internet,
intranet and extranet have become essential to the successful operation of
all types of organization and their computer based information system.
6. Telecommunication networks: consist of computers, communication
processers and other device interconnection by communication, media and
controlled by communication software.

7. Communication media: communication media includes twisted pair wire,

coaxial cable, fiber optics cable, microwave system, and communication
satellites system.
8. Network support: this includes all of the people, hardware, software and
data resources that directly support the operation and use of
communication network. The concept of network resource emphasizes that
communication technologies and network are a fundamental resource
components of all information system (James 0, Brien,2003)
2.1.5 Types of Information system

2.1.5.1. Operational support system (OSS):

Information systems have always been needed to process data generated by
and used in operations. Such OSS, produce a variety of information of product
for internal and external use. However, they don’t emphasis on produce for the
specific information product that can best be used by managers. The role of
business firms OSS is to efficiently process business transaction control
industrial process, support enterprise communication and collaboration and
update corporate data base.

2.1.5.2 Transaction operation system (TOS): an important example of

operation support system or OSS that record and process data resulting from
business transaction. The process transaction in to two basic ways. In batch
processing transaction data are accumulated over period of time and process
periodically. In real time or on line processing data are processed immediately
after transactions occur.

2.1.5.3 Process control system (PCS): monitor and control physical process
for example petroleum refinery uses electronic sensors linked to computers to
continually monitors chemicals process and make instant or real time
adjustment that control the refinery process.

2.1.5.4 Management support system: it provides and support for decision

making by all types of management or managers and business professional is
complex risk. Conceptually, several major types of information system support
a variety of decision making responsibility.

2.1.5.5 Decision support system (OSS): give a direct computer support to

managers during the decision making process.

2.1.5.6 Executive information system (EIS): provides critical information

from availed variety of internal and external source in easy to use displays to
executives and managers (James. Brien, 2003)other classification of
information system

Expert system: the frontiers of information system are being affected by

development in artificial intelligence (AI). Artificial intelligence is an area of
computer science whose long range goal is to develop computer that can think
as well as see, hear, walk, talk and feel. One of the most practical applications
of AI is the development of expert system is knowledge based information
system; that is uses its knowledge about specific area to action an expert
consultant to users

Knowledge management system many organizations are developing Knowledge

management system KMS to manage organizational learning and business
know how KMS helps knowledge workers create, organize and share important
business knowledge where ever and whenever it is needed.

Strategic information system: the strategic role of information system

involves using information technology to develop products, service and
capabilities that give a company strategic advantage over the competitive forces
it faces in the global market place. This creates strategic information system,
information system that supports or shape the competitive position and
strategies of an enterprise.

Business information system:as feature managerial and end user, it is

important for you to realize that information system direct support both
operations and management activities in the system direct support both
operations and management activities in the business function of accounting,
finance , human resource management and marketing, marketing & operation
management . Such business information system is needed by all business
functions.
2.1.6 Management information system

A management information system (MIS):-that provides information to manager

organization effectively. MIS are regarded to be a subject of the overall internal
control procedure in a business, which cover the application of people,
document, technologies and procedure used by management accountants to
solve business problems such as costing product, services or business wide
strategy.

Management information are distinct from regular information in that they are
used to analyze other information system applied in operational activity in the
organization (http:// en.wikipeda.org/ wiki MIS)

2.1.7 Role of management information system

Management information system role information system don’t magically

appear in the organization considerable efforts, time and resource must be
devoted to building and maintaining information system. One of most
important consideration in designing information system is to solve the right
problem. Identify business problem and potential solution is main purpose of
system analysis. Good information does not simply materialized from thin air
providing timely, accurate and relevant information require careful planning
and support. Creating effective information involves maintaining hardware,
providing software training and support and user development, defining and
controlling access to data base, establishing corporate standards and
researching the competitive advantage of new technologies.

The basic role MIS are hardware administration manager should not have to be
computer expert to use their computer consider the work involved in buying
new computer. The computer industry has been changing rapidly. Both which
personal computer and large computer major change occur in computer
hardware continually.

Software support generally requires more support than hardware is staff can
help users decide which software to purchase and can install it. Users need to
be trained to use various software futures. Whenever worker change job or
company lives new workers they need to be trained similarly commercial soft
ware versions changes almost every implying more training for use.

Additionally someone has in install the new copies on the machines, Manuals
have to be distributed and data files have to be converted.
(www.mhh.com/business management information system.

2.1.8. Data and data base administration

Data base is critical to the operation of any company keeping the data base up
date the accurate dose not happens by change large organization employee a
data base administer (DBA) to be responsible for maintaing the corporate data
base. The DBA is responsible for maintains the data base, monitoring
performance of the data base management system and solving day to day
problems that arise with the data base. If there is no in this advocate role who
evaluated the existing system and comparing them to new products, an
organization is probably not often going to get new equipment. Even when
many users are dissatisfied with an existing system, they can voice their
complaints through one highly place person. Along these lines, the CLO is
responsible for long run planning in terms of information technology (Post and
Anderson 2014) http://allmanagement-book.com/main/3064mis
 2.1.9 Data base management system (DBMS)
Data base management system is considered an important system soft ware
packages that control the development use and maintenance of the data base
of computer using organization.

A data base management system program helps organization uses their

integrated collection of data records and file known as data base. It makes easy
for an employee data base to be accessed by payroll, employee benefits and
other human resource programs. It also amplifies the process of retrieving
information from data base in the form of displays and reports (McLeod 1998).

2.2.Decision support system

It is described as the next evolutions are step after management information

system. MIS support decision making is both structured and unstructured
problem environment. It supports decision making to be implemented at all
level of organization. Decision support system is designed to support semi
structured decision in a situation in which information is complete and will
satisfying is a goal. ADSS should enable the decision maker to apply the right
decision rules to a problem rather using standard rules that may not apply
because of changing conditions. (Indienmba/2014)

2.2.1. The Benefit of Decision Support System (DSS)

Investment in DSS technology development efforts and support are grown
substantially. Because new version of DSS are constantly involving, their costs
are difficult to quantify measuring the benefits of DSS also is difficult because
many of some of these benefit are qualitative. Some of the benefits are:
 The ability to examine more alternatives
 The ability to achieve a better understanding of the business
 The ability of respond quickly to unexpected situation.
 The ability to carry out adhoc types of reporting and analysis
  The ability to provide timely information for control of the
operation
 The ability to save time and cost

2.2.2. Decision support system (DSS) objectives

Major objective of DSS are;

 Assist managers in making decision to solve semi structured problem.

 Support the manager is judgment rather than try to replace it.
 Improve the manager’s decision making effectiveness rather than its
efficiency.

These objectives are correlated with three fundamental principles of DSS

concepts problem structure, decision support, and decision effectiveness

Problem structure:It is difficult to find problem that are completely structured

the vast majority are semi structured this means that the decision support
system is aimed at the area there most problems are found.

Decision system support (DSS): is not intended to replace the manager. As

the figure below shows the relationship between problem structured and the
degree of support that the computer can provide the structured the computer
can be applied to the structured portion of the problem, but the manager is
responsible for the structured portion applying judgment or institution and
conducting analyses.

The manager and the computer work as a problem solving team in solving
problem that falls large semi structured area.

Manger
solution
Structured semi structured unstructured

Degree of problem

Decision effectiveness: the objective of DSS is not to make decision process

as efficient as possible. The manager time is valuable and shouldn’t be wasted
but the minimum benefit of using a DSS is better (Mcleod, 1998).

2.2.3. Information decision making

2.2.3.1. Decision making

Making decision is not a simple activity that takes place all at one. Decision
making is a rational choice alternative. There have to be option to choice from
if, there are not choice possible and no decision. Decision making is a process
not alighting bolt occurrence. In a decision manager is making a judgment,
reaching a conclusion from a list of known alternative. Decisions are made to
solve a problem. While solving a problem the problem solver may make many
decisions. Decisions are courses of action that are taken to avoid or reduce
effects or to take advantage of opportunity. Decision making is a process of
sufficiently reducing uncertainty and doubt about alternatives to allow
reasonable choose to be made from among them these definition stresses the
information gathering function of decision making. It should be noted here that
uncertainty is reduced rather than eliminated. Very few decisions are made
with absolute certainty because complete knowledge about all the alternatives
is seldom possible. Thus every decision involves a certain amount of risk. If
there is no uncertainty, you do not have a decision
2.2.3.2 Types of decision making

There are two decision making

1. Programmed decision making:-Are the decisions managers make in a

response to repetitive and routine problem. If a particular situation occurs
often managers will develop a routine procedure for handling it.

2. Non- programmed decision making: when problems has not arise in

exactly the same manner before arise complex or extremely important, if
may needed anon- program decision. Decision are termed non-programmed
when they are made for structured and unstructured problem making such
decision is clearly a creative process (Bantiwarku introduction to mg’t)

2.2.3.3 Process of decision making

A significant part of decision making knowing skill is knowing and practicing

good decision making techniques. One of the most practical decision making
techniques can be summarized in those simple decision making steps.

1. Identifying the purpose of role decision. What is exactly the problem to

be solved? Why it should be solved?
2. Gather information. What factors does the problem involve?
3. Identifying the principles to judge the alternatives. What standards and
Judgment criteria should the solution meet?
4. Brainstorm & list the different possible choices, Generate ideas for
possible solutions see more an extending your option for your decision
on my brain storming tips page.
5. Evaluate each choice interview of its consequences.
6. Determine the best alternatives.
7. Put the decision in to action.

8. Evaluate the outcome of your decision & action steps.

 2.2.4. Telecommunication

Telecommunication is highly technical, rapidly changing field of information

system technology. The communication network is any arrangement where
sender transmits in message to a receiver over a channel of consisting of some
types of medium. Telecommunication network consist of five basic categories:

 Terminal: such as radial play terminals and others end user work
station.
 Telecommunication processer who support data and reception between
terminal and computers.
 Telecommunication channel and media over which data are terminated
and received.
 Telecommunication channels use combination of media such as copper
wires, coaxial cables, fiber optic cables, micro wave systems and
communication satellites, to interconnect the other components of
telecommunication networks. Computers of all size and types are
interconnected by telecommunication networks so that they can Carrey
out their information processing assignments.
 Telecommunication control soft ware consist of a program that control
telecommunication activities and mange the functions of
telecommunication network. Example telecommunication monitor for
mainframe host a computer, network operating system for micro
compute network serve, and communication presages for micro-
computers(Jemes.O,Brein 1993 , 1996)

CHAPTER THREE
3. Research Methodology
3.1. Research design and strategy

Based on basic purpose of the study, the major focus of the study was on the
description of data related to the role of MIS in organizations decision making.
So, the research design method most appropriate for this study was descriptive
types of research for fully answering the research question. From different
methods of descriptive research the study was employee cross sectional type of
survey research design in which data were collected at one time for the purpose
at hand. The study was employed quantitative and qualitative approaches in
order to attain the objective of the study.

3.2. Data source and type

The researcher intends to use both quantitative and qualitative type of data
which were collected from primary and secondary sources. The primary data
were obtained using questionnaires, while the secondary source was obtained
from books; internet and published articleswere used as reference to
substantiate the primary data collected. And also secondary sources
information is required more for addressing the adjectives of the study since it
is basis for constructing conceptual frame work of the study and questionnaire
design.

3.3. Sampling size

The sample size for the study wasdetermined based on the following simplified
formula. And assuming the sample error 10% and 90% reliability a sample of
74 Ethio telecom Gondar Branch employees randomly selected out of 291. The
researchers were used simplified formula to determine the required sample
size.

N=N /if N ¿ n= N⁄1+N(e)

2
n=291⁄1+291(0.1)2

= 74

Where n = is sample size

N = total number of population

E = factor of error

More over the study was utilized stratified random sampling with proportional
to select sample respondents. The total population of the study was stratified
based on department in Ethio telecom Gondar branch. To end, the department
divided in to five which were considered as five strata. Then to ensure the
responsiveness of each stratum, the number allocated proportional to size of
population in each stratum using formula.

3.4. Sampling techniques

In order to draw sample respondents form total population the study was
intend to utilize probability sampling techniques. From probability sampling
techniques the study were used stratified random sampling techniques towards
selecting respondents form employees of Ethio telecom Gondar
Branch.Therefore the sample size in different strata (department) will be shown
in the following tables.

Table 1: sample size determination

No Department Total Sample will be
drawn
1 Network 110 28
2 Business 75 19
management
3 Finance 25 6
4 Marketing 49 13 3.5. Methods of data
5 Project 32 8 collection and
instrument
Data and information in this research were gathered from two main sources
such as primary and secondary source of data. Primary data were collected by
using self administered questionnaires. Because it has advantageous low cost,
saving in time, validity and accuracy. The self administered questionnaire has
both open and closed ended questionnaires. Open ended questionnaire offer
the advantage that the respondent were given their own words. Close ended
questions are very convenient for collecting factual data and easy to analyze.
The secondary source of data was acquired from existed document and
publisher materials within the organization.
3.6 Methods of data analysis and interpretation

The analyzing parts were done based on the source of data. After gathering the
data, the study arranged the collected data in the form of group and
summarized the data by using descriptive technique. The collected data were
represented in the form pie chart, table, bar graph and percentage. The studies
were use both qualitative and quantitative method of analyses.

3.7. Organization of the study

This study was organized in to four chapters. The first chapter discusses the
back ground of the study, statement of the problem, basic research question
objective of the study, significance of the study, scope of the study and
limitation of the study. The second chapter deals with review of literature. The
third chapter deals with methodology, research design, sample and sampling
techniques, source of data, method of data collection and analysis. The fourth
chapter deals with data analysis and interpretation, chapter five conclusion
and recommendation.
 CHAPTER FOUR
4. DATA ANALYSIS AND INTERPRETATION

This chapter is developed to analyze the data gathered through questionnaires

to assess the actual situation and to gather opinions of respondents with
regard to the role of management information system in organizational decision
making in Ethio- telecom Gondar branch. Questionnaires were distributed for
employees under different department or staff of the organization Management
information system unit, and data base officer. 74 questionnaires were
distributed to the employees and 63 have been completed and returned timely.
The remain 11 questionnaires did not collected. The collected data are briefly
analyzed and interpreted using table, bar graphs, pie chart, and percentages in
the following section.

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENT

The demographic information of sample respondent who completed the

questionnaire in this study is illustrated in table, pie chart, bar graph and
percentage as below. Demographic characteristics of a given organization are
very important for the success of an organization, for example if a given
organization has more adult than other, the organization become more
successful than other.
Table 4.1. Distribution of respondent’s (demographic characteristics)

No Item Respondent
Number Percent
1 Sex Male 43 68
Female 20 32
Total 63 100

2 Age 18-25 year 5 8

26-30 year 22 35
31-40 year 31 49
Above 40 year 5 8
Total 63 100

3 Educational level Grade 10th and 12th - -

completed
Diploma 6 10
First degree 46 73
2nd degree 11 17
Above 2nd - -
degree
Total 63 100

Source: Filed of questionnaire, primary data 2015

As it can be seen from table 4.1, item 1 is about the sex of the sample
respondents. And it shows us that out of 63 respondents 43 (68%) of the
respondents are males and the rest 20% (32%) are female employees.
Therefore, this data indicates that Ethio- telecom Gondar branch has more
male employees than females. From the same table item2 concerning the age
respondents 5(8%) of the respondents have an age from 18-25 years, 22(35%)
of the respondent are between 26-30, 31(49%) of the respondents are between,
31-40 years. And 5(8%) of the respondent have been within the range of above
40 years. This table informs us that the majority of employees are adult
enough to produce and improve the performance of the organization because
adult people are highly motivated than the old one as we know. From the given
item number 3 regarding educational level of respondents 6 (10%) of the
respondent are diploma certified, 46(73%) of the respondent are first degree
holders, and 11(17%) of them are second degree (MA degree).

Therefore, it is possible to say that most of the employees of Ethio- telecom

Gondar branch are first degree holders and with some secondary degree.

Pie chart 4.1 Respondents current position

Respondent status

Repondent status
2, senior manager; re-
1% pondent status ; 0.13;
13%
other ; repondent status ;
0.3; 30%
1, top manager
2, senior manager
Middle manager
Middle manager; repondent
line/lower
status ; 0.19; 19% manager
other

line/lower manager; repondent

status ; 0.37; 37%

Source: filled questionnaire, primary data:2015.

From the above pie chart, we can understand that 1(1%) of the respondents are
top managers, 8(13%) of the respondents are senior managers, 12(19%) of
them are currently middle managers, the majority means 23(37%) of the
respondent are line or lower level managers and the remaining 19(30%) out of
the alternatives. Therefore, Data we can say that the majority of the
respondents are line or lower level manager.

4.2. ANALYSIS OF PART II QUESTIONNAIRES

 MIS is a system that provides information needed to manage

organizations effectively.
 MIS is regarded to be a subset of the overall internal control procedure in
the business. MIS provides information for decision making on planning,
initiating, organizing and controlling the operation of the sub system and
to provide synergetic organization in process.
Pie chart 4.2
Response on the adequate and well organized data base center

Response
No; Response; 0.21;
21%

Yes
No

Yes; Response;
0.79; 79%

Source: filled 0f questionnaire, primary data (2015)

The above pie chart 4.2 is concerning the current capacity of data base center
in the corporation. Accordingly it shows us that most of respondents 50 (79%)
response the capacity and adequacy of the data base center is good and the
remaining 13 (21%) of respondent answers the corporation’s data base center
is incapable and inadequate.
Table 4.3 current MIS practice and lower level manager

No Item Respondent
NO. Percent
1 Do you think that the current Yes = 48 76%
MIS practice is satisfactory? No = 15 24%

Total 63 100%
2 Do you think, that participation Yes =48 76%
of lower level manager have an No =15 24%
impact on the process of
decision making?

Total =63 100%

Source:-filled of questionnaire, primary data (2015)

Table 4.3. No. 1 regarding with the current Management information system
practice in the corporation, out of 63 respondents 48(76%) replied for question
is the current MIS practice is satisfactory or good. And the remaining 15(24%)
replied the current practice of MIS in the corporation is not satisfied or in
adequate. Therefore, the current practice of MIS should be continuing in this
ways to ensure effective operations.

From the same table No. 2, 48(76%) replied that the participation of lower level
managers in decision making have its own impact, and the remaining 15(24%)
said no impact. Therefore, it is possible to say that lower level manager
participation has its own impact on the process of decision making.
Table 4.4 individual’s impact on the flow of information

No Item Respondent
Alternative No. Percent
1 Do you think that the flow of Yes 49 78%
information affected by No 14 22%
individual participation?

Total 63 100%
Source:- Filled of questionnaire, primary data 2015

The above table 4.4 shows 49(78%) of the respondents replied that individual
participation have an impact on the flow of management information system
while the remaining 14(22%) of the respondent replied “No”. Therefore,
individual participation has its own impact on the flow of information.

Table 4.5 MIS helps to make reliable and fast decision

No Item Respondent
Alternative No. Percent
1 Do MIS help the corporation to Yes 63 100%
make reliable and fast decision? No 0 0

Total 63 100%
Source: filled of questionnaire, primary data (2015)

As per the above table 4.5, all of the respondents 63(100%) replied that MIS
helps the corporation make better, reliable and fast decision. This implies that
Management information system has high influence on the decision making
process.
Table 4.6: Response on the corporation’s skilled man power and
equipment

No Item Respondent
No Percent
1 Would you say that the corporation has Yes 42 67%
enough skilled man power to operate the No 21 33%
data base center?
Total 63 100%
2 Can you say that the corporation has Yes 39 62
enough computers or other equipments
that are necessary to use MIS? No 24 38

Total 63 100%
Source: filled of questionnaire, primary data (2015)

From item No.1 of the above table4.6, one can see that 42(67%) of the
respondents replied as the corporation has enough skilled man power to
operate the data base center while the remaining 21(33%) replied the
corporation lacks the skilled man power to operate the data base center.

And In the same table, item No. 2 which is about the corporation’s capability
with regarded to the necessary equipment in order to run MIS effectively shows
out of the 63 sample respondents, 39(62%) of them replied as the corporation
has enough computers and other equipments while the remaining 24( 38%)
replied that the corporation do not have enough equipments.

 How the corporation can know whether decisions are made effectively
or not?

The respondents replied that the corporation knows through the following
way of evaluation.

 By making assessment
 Through questionnaires and feedback
 By observing the actual work
 By making clear and participatory meeting
 How does information flow in each department support decision
making?
 According to the respondents, in most of the departments information flow
is important to support decision making. Since, information and decision
have a linear relationship, they are dependent. If the information is full, the
decision is certain.
 Therefore, we can infer that, information and decision have a positive
relationship.

Bar Graph 4.7 employee attitude towards MIS.

Employee attitude towards MIS in %

Good ; Column1;
59%

Very good ;
Column1; 22%
Unsatisfactory; Low; Column1; 11%
Column1; 8%
Column1 Column2 Column3

Source: filled of questionnaire, primary data (2015)

As shown in the above bar graph 4.7, 5(8%) of the respondents replied that
their attitude is unsatisfactory towards MIS, 7(11%) of the respondent replied
that their attitude is low towards MIS, 14(22%) of respondents has very good
attitude towards MIS, 37(59%) of respondent said that there is a good attitude
toward MIS.

Therefore, the corporation’s employee’s attitude towards MIS is mostly good.

Table 4.8 Response on the system to store data

No Item Respondent
Alternative No. Percent
1 Which of the following system Manual file system 4 6%
the corporation uses to store Data base 24 38%
different decision? management
system
Both 35 56%
Other - -
Total 63 100%
Source: filled of questionnaire, primary data (2015)

As it mentioned in the above table 4.8, respondents are asked to give their
responses on the mechanism to store decisions. Accordingly, 4(6%) of
respondent said that it uses manual file system, 24(38%) of the respondents
replied that the corporation uses data base system only, and 35 (56%) of the
respondents respond that the corporation uses both manual file system and
data base system to store decisions. It is possible to say that the corporation
uses both manual file system and a data base system to store decisions. Data
base management system makes easy for an employee data base to be
accessed by the pay role employee benefit and other human resource program.
Table 4.9. Responses on employees of the organization have a good
Attitude towards the role of MIS in decision making.

No Item Respondent
Alternative No. Percent
1 Do you think that employees of Yes 50 79
organization have a good attitude No 13 21
towards the role of MIS in decision
making?
Total 63 100%
Source: filled of questionnaire, primary data (2015)

As show in the above table4.9, 13(21%) of the respondents replied that there is
no good attitude towards the role of MIS in decision making, 50(79%) of the
respondents replied that there is a good attitude towards the role of MIS in
decision making. Therefore, there is a good attitude of employees towards the
role MIS in decision making.

 What is the attitude of the top management of the organization

towards the current role of management information system?

As the respondents replied, the top management has a very positive or good
attitude towards the current role of management information system.
 CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1 Conclusion

The major emphasis of the study has been for assessing the role of
management information system in organizational decision making in Ethio-
telecom Gondar branch.
 Based on the analysis of data the following conclusions are drawn:
 The application of MIS at the corporation is to draw short-term, medium, and
long-term planning, to make reliable and appropriate decision depend on the
flow of information (may be structured and un-structured decisions), to craft
strategies and the like. To do this the corporation advised to assess its material
and human capacity and capability.
 Regarding the application of MIS it is having efficient flow of information
because there is a properly organized information (reports and data), and
skilled operators. In the corporation, understanding of information interpreted
their own point of view, updated technology is available and technically.
 There are different factors affecting the implementation of management
information system such as the information directly flow for whom it needs
and there is responsible body for the flow of information, use of frequently
data and flexibility of the system and better communication among
department are the main important for MIS application in the Ethio-telecom
Gondar Branch.
 The employee’s attitude towards MIS in the given corporation is good or
satisfactory, because most of the employees are well knowledgeable,
accessibility of latest information in the organization is high, and the
employees are well skilled about modern way of information management.
 The existence database capacity of the corporation is good or satisfied due to:
Fast communication among departments, high skilled and technically capable
persons, strong in Good management, flexibility of the database center, and
high Employing of new system of operations etc. The lower level management
practice or participation in decision making process is satisfied.
 Finally, the corporation has skilled manpower to create better application of
the system. As respondents replied that there are skilled professionals for
better application of the system so, the corporation should be continue in this
ways to ensure effective operation. Besides, gathering information internal
sources can be an implication or indicators of internal strength. As result of
this, the organization has those strength to ensure the performance of the
organization.
 5.2 Recommendation
The importance of management information system has recognized in modern
societies. Management information system is becoming, a dispensable factor
for success of an organization. Where this study was conducted to take a
series of measures to the significance of management information system on
the decision making process in the corporation. The overall application of MIS
in the corporation has been analyzed based on the sample respondents’
response.

The researchers would try to recommend the following general

suggestions:

Since the corporation’s employees are well educated, adult and young enough
the corporation should keep these adult and young employees and train them
to improve their ability and skill because it will beneficiary in the future
operations that is will have good control and operating over data base center.
Based on the collected data, it shows one of the important that indicate
efficient flow of information within the corporation. So it is advisable that
information should be flow adequately and properly in such organized way.
Decentralized management and proper delegation of authorities for each
authority’s divisional worker should be applied or assigned responsible person.
On the other hand, to enhance the application of MIS in the prospect
corporation, the researcher suggests that, other Modern or update technology
advisable to use. Then the technology may be improved the existing network
using decision support system, executive information system etc.

Flexibility system of each division or department for receiving and disseminate

of information’s are more valuable for the concerned parties.

The current employees’ attitude towards MIS is satisfactory because of the

employees having good knowledge; accessibility of latest information in the
organization is high, and the employees’ high skilled about modern way of
information management.

So, the corporation should be continue its employee’s performance by giving

additional training and development on the management information system,
and help them to get more access of latest information etc.

The corporation should prepare themselves to avoid any factors which may
hinder their flow of information in the future by creating inter relation among
departments, more relationship between management and employee, more
access of internet and so on.
 BIBLIOGRAPHY

 Bantie Eorku, Meseret Melese, Ygermal Adal (2004) introduction to

management

 Jems.O,Brien (1993, 1996) edition two management information system

 Jems.O,Brien(2003) edition eleventh management information system

 Mcleod(1998)edition ninth information management system

Internet source
 Lingham (2006) http://en.allexprts.com) managing business
 OBI (2003) http://www.ccentorganization) management information
system.

 Rhodes (2010) http://www.ehow.com) Role of management information

system.

 http://en.www.wikipedia.organization/wiki management information

system.

 www.Mhhe.com management information system.

 Indienmba. (2014) management information system.

 Post and Anderson, (2014)

http://allmanagemnt-books.com/main/3064/management information
system.
 Appendix
Gondar University

College of business and economics

Department of management

This questionnaire is to be answered by the employees of Ethio-telecom Gondar

branch. The purpose of this questionnaire is to collect reliable information on
the role of management information system in organizational decision making
in case of Ethio-telecom Gondar branch. The information which is provided to
you is only to be used for academic purpose which is very important for overall
success of this paper. Therefore you are requested to fill and return the
questionnaire.

General instruction

 You are not expected to write your name

 Write short & precise answer for open-ended questions
Write a tick mark (√) for closed-ended questions

1. Sex male female

2. Age 18-25 26-30 31-40 above 40

3. Educational level 10th-12th completed diploma BA degree

MA degree above

4. Your current position in the organization

 top management
 senior management
 middle management
 line management
 Part II

II. Different questions related to the role of management information system is

organizational decision making

5. Do you think the corporation has adequate and well organized data base
center?

A. yes B. No

6. If your answer for question number five is yes, how often the corporation
use data base center?______________________________________

7. Do you think that the current management information system practice is

satisfactory? A. yes B. No

8. Do you think that management information system helps the corporation to

make fast and reliable decision on time?

A. yes B. No

9. Which is the following system the corporation use to store different

decision?

A. manual file system B. data base management system

C. both D. others

10. Can we say the corporation has enough computers or equipment's that are
necessary use to management information system?

A. yes B. No

11. What looks like the attitudes of employees towards the role of
management information system in the organizational decision making?

A. very good B. unsatisfactory C. good D. low

12. Would you say that the corporation has enough skilled man power to
operate the data base center? A. yes B. No
 13. Do you think that the participation of lower level manager has an impact
on the process of decision making? A. yes B. No

14. Do you think that employees of organization have a good attitude towards
the role of MIS in decision making? A. yes B. No

15. How does the corporation can know either decision effectively or not?
-----------------------------------------------------------------------------------

16. Do you think that the flow of information affected by individual

participation? A. yes B. No

17. How does information flow in each department support decision making?
----------------------------------------------------------------------------

18. What is the attitude of the top management of the organization towards
the current role of management information system? ------------
------------------------------------------------------------------------------------
 Acknowledgment
First of all, we would like to thank our GOD, for his unlimited willingness and

the almightily and the most pass not to finalize and perform this study.

Secondly our deepest gratitude goes to our advisor Alem G/medhin( MA) for his

wonderful consultancy and effective advisory role throughout this study.

Finally, our acknowledgment goes to different individual’s including the HRM

manager of Ethiopian Telecommunication Gondar branch and the employees

for giving information and providing different support for the study.

i
 Abstract
The study focuses on identifying the Role of Management information system in
organizational decision making in Ethiopian Telecommunication Corporation
Gondar branch. The objective of this study was to analyze the role of
management information system in organizational decision making in
Ethiopian Telecommunication Corporation Gondar branch. In order to answer
the basic Question of the study used both primary and secondary sources of
data. The primary data was obtained using questionnaires, while the secondary
data sources were cited from published books, articles through observing those
documents. Sample size of the study was determined on the basis of
probability sampling technique from which stratified sampling was employed.
In order to analyze of the collected data from various sources, the researcher
used descriptive type of data analysis tools. Among those tools, the researcher
used tables, pie charts, bar graph and percentages. Finally the researcher
forward conclusion and recommendation based on the study findings

ii
 TABLE OF CONTENT

Title page

Acknowledgment ------------------------------------------------------------------------- I

Abstract ------------------------------------------------------------------------------------II

Table of content --------------------------------------------------------------------------III

List of Tables-------------------------------------------------------------------------------V

List of figures ----------------------------------------------------------------------------- V

CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study -------------------------------------------------1

1.2. Statement of the problem-------------------------------------------------3
1.3. Basic research question--------------------------------------------------4
1.4. Objective of the study-----------------------------------------------------4
1.4.1. General Objective --------------------------------------------------4
1.4.2. Specific Objective--------------------------------------------------4
1.5. Significance of the study-------------------------------------------------4
1.6. Scope of the study---------------------------------------------------------5
1.7. Limitation of the study ---------------------------------------------------5

CHAPTER TWO

2. LITREATURE REVIEW
2.1. Definition of information ,System & information System-----------6
2.1.1. Information----------------------------------------------------------6
2.1.2. System ---------------------------------------------------------------6
2.1.3. Information System------------------------------------------------7
2.1.4. Information System Resource------------------------------------7
2.1.5. Types of Information system--------------------------------------9
2.2. Management information system---------------------------------------11
 iii
2.2.1. Management Information System roles------------------------11
2.2.2. Data base management system --------------------------------12
2.2.3. Decision Support system-----------------------------------------13
2.2.3.1. Benefits of decision support system-------------------------------13
2.2.3.2. Decision support system objectives--------------------------------14
2.2.4 Information Decision Making --------------------------------------15

2.2.4.1Decision Making---------------------------------------------------15

2.2.4.2 Types of decision making --------------------------------------16

2.2.4.3 Process of decision making-------------------------------------16

2.3 Tele communication---------------------------------------------------------17

CHAPTER THREE

3. RESEARCH METHDOLOGY
3.1. Research design and strategy-------------------------------------------18
3.2. Data source & type-------------------------------------------------------18
3.3. Sample size ---------------------------------------------------------------18
3.4. Sampling technique------------------------------------------------------19
3.5. Method Of data collection and instrument---------------------------20
3.6. Method of data analysis and interpretation---------------------------21
3.7. Organization of the study-----------------------------------------------21
CHAPTER FOUR
4. Data analysis and interpretation --------------------------------------------22

CHAPTER FIVE
5. Conclusion and Recommendation --------------------------------------------32

5.1Conclusion-------------------------------------------------------------------32
5.2 Recommendation-----------------------------------------------------------34
Bibliography----------------------------------------------------------------36
Appendixes ----------------------------------------------------------------37
 iv

List of tables

List of Tables
Page

Table 4.1 Distribution of respondent demographic characteristics -------------23

Table 4.3 Current MIS practice and lower level management--------------------26

Table 4.4 Individual’s Impact on the flow of information--------------------------27

Table 4.5 MIS to make helps to make reliable and fast decision-----------------27

Table 4.6 response on the corporation skilled man power and equipment ---28

Table 4.8 Response on the system to store data------------------------------------30

Table 4.9 Response on employee organization have a good attitude

towards the role of MIS in decision making ------------------------------31

List of Figures

Fig.4.1 Respondent Current position-------------------------------------------------24

Fig.4.2 Response on the capacity data base center --------------------------------25

Fig.4.7 Employee attitude towards MIS----------------------------------------------29

 v

GONDAR UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

By: FITALEW

Approved by a board of examiners

_______________________________ ________________________
Advisor Signature

_______________________________ ________________________
Examiner Signature

_______________________________ ________________________
Examiner Signature

JUNE 2007 E.C

Gondar, Ethiopia