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THE ROLE OF MANAGEMENT INFORMATION SYSTEM ENHANCING BANKING

SERVICE : IN CASE OF COMMERCIAL BANK OF ETHIOPIA UNDER BURE DAMOT
BRANCH PREPARED BY: MULUNEH SHIFERAW

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THE ROLE OF MANAGEMENT INFORMATION SYSTEM
ENHANCING BANKING SERVICE : IN CASE OF
COMMERCIAL BANK OF ETHIOPIA UNDER BURE
DAMOT BRANCH

PREPARED BY: MULUNEH SHIFERAW

July 2022

I
Table of Contents
1. ACKNOWLEDGEMENT ...................................................... Error! Bookmark not defined.
Acronyms .......................................................................................... Error! Bookmark not defined.
Abstract ........................................................................................................................................... IV
CHAPTER ONE .............................................................................................................................. 1
1. INTRODUCTION ................................................................................................................... 1
1.1 Background of study .......................................................................................................... 1
1.2 Background of the organization ......................................................................................... 3
1.3. Statement of the problem .................................................................................................. 3
1.4 research questions .............................................................................................................. 5
1.5. Objective of the study ....................................................................................................... 6
1.6 Significance of the study ........................................................................................................ 6
1.7 scope of the study................................................................................................................... 7
1.8 Limitation of the study ........................................................................................................... 7
1.9. Organization of the paper...................................................................................................... 7
CHAPTER TWO ............................................................................................................................. 8
2. LITERATURE REVIEW ........................................................................................................ 8
2.1. Definition of management information system................................................................. 8
2.2. Information system resource and products ....................................................................... 8
2.3 Features of management information system .................................................................... 9
2.4 Information requirement of an organization ................................................................. 10
2.5 information requirement of manager ............................................................................... 11
2.6 Decision making and quality of information ................................................................... 12
2.7 The nature of decision making ......................................................................................... 13
2.8 Types of information system............................................................................................ 14
2.9 Importance of Information System .................................................................................. 19
2.10 Banking Information System (BIS) ............................................................................... 19
2.11 Empirical Review of the study ........................................................................................... 20
CHAPTER THREE ....................................................................................................................... 22
3. RESEARCH DESIGN AND METHODOLOGY ............................................................. 22
3.1 Research design ............................................................................................................... 22

II
 3.2. Population and sampling technique ................................................................................ 23
3.3. Types of data collected and collection method ............................................................... 23
3.4. Data analysis methods..................................................................................................... 23
CHAPTER FOUR.......................................................................................................................... 24
4. PRESENTATION AND ANALYSIS OF DATA ................................................................ 24
4.1 INTRODUCTION ........................................................................................................... 24
Table 4.1 demographic characteristics and the respondents .................................................. 24
Table 4.2 shortage of skilled man power in MIS, performance of managing information
system and current MIS. ........................................................................................................ 26
Table 4.3 the information development project ..................................................................... 28
Table 4.4 MIS delivery .......................................................................................................... 29
Table 4.5 the relationship between IT expert and other unit.................................................. 30
Table 4.6 five elements of MIS .............................................................................................. 31
Table 4.7 Error encountered while running the system ......................................................... 34
Table 4.8 information for decision making ............................................................................ 35
Table 4.9 management information system (MIS) problème ................................................ 36
Table 4.10 the consideration of employees to MIS................................................................ 37
Table 4.11 employee’s knowledge about MIS....................................................................... 38
Table 4.12 the commitment of top management about MIS .................................................. 39
The response for open ended questionnaires ............................................................................. 40
The respondents mention the basic obstacles are:- .................................................................... 40
The respondents mention the roles of MIS are:- ........................................................................ 40
The respondents mentioned how can they increase their knowledge of MIS ............................ 41
CHAPTER FIVE ........................................................................................................................... 42
5. CONCLUSON AND RECOMMANDATION ...................................................................... 42
Summary .................................................................................................................................... 42
5.1 Conclusions ...................................................................................................................... 42
5.2 Recommendation ............................................................................................................. 45
Reference ....................................................................................................................................... 46
APPENDIX 1 .................................................................................... Error! Bookmark not defined.

III
 Abstract
Banking industry plays a key role in investment and growth for the development of
different industries in our glob. Because MIS play a key role in determining the degree of
success and affect the competition position of commercial banks in the world, which has
connection with globalization, and thus, this issue needs investigation. Therefore , the main
purpose of this study was to examine the role Management information system enhancing
banking service in case of commercial bank of Ethiopia under Bure Damot branch in Bure
town.

In order to meet the objectives of the study, different statistical techniques were employed
on the basis of the basic questions stated and on the nature of the data collected.
Consequently, the data collected from the respondents were analyzed quantitatively and
qualitatively.

Finally, this study recommend some solutions to the problem identified in the study.

IV
 CHAPTER ONE

1. INTRODUCTION

1.1 Background of study

In modern days, a large number of organizations cannot operate successfully without the
proper implementation of MIS. With the help of MIS, organizations can get the right
information to improve the cooperation and intercommunication between institutions and
peoples (Mamary, Shamsuddin, &Aziati, 2014). MIS enables information to flow between
departments immediately, shortening the requirement for direct intercommunications
between members, thus MIS enables to increase the performance and effectiveness of the
organization (Nath, &Badgujar, 2013). MIS is certainly a major tool in each organization,
which intends to bring dependable, thorough, available, and accurate data to system’s user
on time. MIS facilitate tasks mechanization. Mechanization significantly improves
organizational workflow (Mamary, Shamsuddin, & Aziati, 2014). MIS has three
dimensions- organization, management, and information technology (Laudon, 2016).
Successful implementation of Management Information Systems primarily depends on
organizational factors, Management factors, and Technological factors. These three main
dimensions also interact with each other’s, and they cannot operate independently without
the help of another dimension.

The main motivation for this paper is based on the fact that many organizations are trying
to adopt Management Information Systems to increase their efficiency and improve their
decision making. Three factors named organization, management, and technological
factors affect the successful execution of MIS. This paper aims to make discussion on these
factors, and it demonstrates how they are interrelated with each other. Recently, due to a
significant decline in the cost of information technology (IT) and greatly improved speed
and power of computers, MIS moved from its traditional role as an application of back
office support to one offering opportunities for gaining significant competitive advantage.
It is being increasingly viewed as having the capability to alter core organizational
directions, reorient corporate strategy, and redefine industry structure.

1
In recent years, there has been increased awareness among organizations of the potential
of IT and use of MIS to exploit its potential and use it effectively. Many successful local
financial institutions like Eastern Bank Ltd., The City Bank Ltd, Brac Bank have clearly
demonstrated that information systems and technologies can be a powerful competitive
weapon that can be used to capture market share, improve customer service, reduce
operating costs, and create new products and services. Currently, organizations are in the
race for enhancing their capability in order to survive in the competitions of the new
century global market. Therefore, organizations are attempting to advance their agility
level by improving the decision making process to be more efficient and highly effective
to meet the successive fluctuations of the market. In an effort to achieve this, many modern
organizations, either mid or large sized, have concerned with a cycle of progressive
investments in and adopted new management information system components.
During last decade, a high percentage of financial organizations frequently used
Management Information Systems to facilitate the provision of services; and that the speed
of the adoption is expected to grow further as the technology expands. In a Bank’s
information system, there is always a potential crisis which makes the bank endure an
insufficiency; thus, an advanced information system supported by a superior mechanism
control is required to make certain that an information system has achieved the required
processes. If the relevant information required in a decision-making process or an
organization planning is not available at the appropriate time, then there is a good change
to be a poor organization planning, inappropriate decision-making, poor priority of needs,
and defective programming or scheduling of activities (Adebayo, 2007).Information is
essential for the endurance of a financial organization in the global and competitive market.

The nature of globalization and competitiveness in the market stress on the importance of
developing an organization capability through better enhancing MIS. Accordingly, the
stored information must then be recalled and distributed for the use of an organization
leadership and top management as well as mid-level managers to take effective long term
(strategic) and short term (Tactical) decision-making. MIS is deemed to be a system which
provides organizations top management and, even lower level management, with
appropriate information based on data from both internal and external sources, to allow

2
them to make effective and timely decisions that best achieve their organization goals and
satisfy stakeholder requirements (Argyris, 1971).

1.2 Background of the organization

In 1942 marked the beginning of commercial bank in Ethiopia. The commercial bank in
Bure town, Bure Damot branch is found in Amhara region 411 kilo meters from the capital
city Addis Ababa. This branch is one of the branches established on January 15, 1987 E.C
in Bure town. Currently the bank has 39 employees. Before 12 years ago the management
information system of commercial bank of Ethiopia was not satisfactory. The management
information system was manually using personal computers and the connection was also
through Local Area Network (LAN). After six years, the management information system
becomes improved by using Wide Area Network (WAN). Now a day in management
information system, the use of computer in performing the administrative function
enhances the creation of files in the computer memory such as accounts report covering
receipt of payments income, expenditure balance sheet and security report files (Solomon
Eshetu, 2008).

1.3. Statement of the problem

Banking industry is consequently put into lot of pressures towards increase in global
competition. Different strategies are formulated to retain the customer and the key of it is
to increase the service quality level. Typically, customers perceive very little difference
in the banking products offered by banks dealing in services as any new offering is quickly
matched by competitors. Parasuraman (1985) and Zeithaml (1990) noted that the key
strategy for the success and survival of any business institution is the deliverance of
quality services to customers. The quality of services offered will determine customer
satisfaction and attitudinal loyalty (Ravichandra 2010).

The trade liberalization and globalization have resulted in keen competition among firms
and industries. The Ethiopian banking industry is not exempted especially with the
proliferation of banking and financial institutions in the country. With the availability of
goods and services, organizations need proactive strategies, the absence of which can lead
to a steady decline of market share (Collier, 2006).Before the developments of modern

3
information system, traditional decision making processes had been under taken in the
forms of haphazard management technique. Such kind of decision making which was
random selective alternative did not bring solution for management decision and identified
organization problems. This try and error activity in the past had resulted in bankruptcy to
organizational performances.

Now days, MIS provide regular information to managers to allow them to make decisions
based on data rather than guesses. Currently, in developed countries the way of doing
works and the managers‟ decision making processes has changed dramatically. As MIS
has developed, the availability and utilization of information for decision making processes
will increase efficiency and effectiveness of banking operation.

The information technology simplifies the use of decision making to integrate the
functional units of the organization and disseminate the information among each unit. The
concept of electronic banking services was benefited associated with electronic
transactions between banks and their clients, or, realizations of electronic system of
payment are developed specially in well developed countries. This is because bank
managers daily have to take job-related decisions in order to provide value-added services
to their clients. The development and uses of MIS is a modern phenomenon concerned with
the accessible and appropriate information that leads to better planning, better decision
making and better results in developing countries like Ethiopia. In spite of the management
information systems development, it is not well accepted due to different resistance which
arises from different factors. But it is not an exaggeration to state that MIS is the lifeblood
of management. Ajayi and Omirin (2007) investigated the use of MIS in decision-making
on longterm planning, short term planning and budgeting in the commercial banks of
Nigerian. The authors said that, “the use of management information systems has a great
importance in improving business operations in terms of reducing time and cost as well as
increasing competitiveness.” In the same way, in case of Commercial bank of Ethiopia, the
utilization of MIS in management decision making process has also great importance if
well available and utilized effectively and efficiently. But as current practice shows, there
is a gap in the availability and utilization of MIS in management decision making process
in Commercial Bank of Ethiopia. MIS has been viewed by its practitioners as playing only

4
a supportive role. Thus commercial bank of Ethiopia would have a lot of advantages if they
use management information systems effectively and efficiently. The Study of ( Karim,
2011) Title is " The Significance of Management Information Systems for Enhancing
Strategic And Tactical Planning ", this study investigates the contribution of management
information systems (MIS) only for decision making. the rest role of MIS has been missed
in the study. The gap of the study has initiated the researcher to assess how management
information systems availability and utilization affect management decisions making and
enhancing banking service.

Based on this, the rationale of this study was to find out the role of management information
systems in commercial bank of Ethiopia Bure Damot branch, which has tremendous
importance since they are blood vessels of the country’s economy and the use of
management information systems effectively and efficiently boost their performance. to
some lesser extent the study used to support researchers to address service excellence and
business growth problems.

1.4 research questions

This research answers the following questions

 What is the relationship between management information system and bank?

 How much consideration is given for management information system by banking

industry?

 What is the attitude (commitment) of top management towards the development of

management information system?

 How is the smooth relation with information technology and other department in
commercial bank of Ethiopia, Bure Damot branch?

5
 1.5. Objective of the study

1.5.1 General objective of the study

The general objective of the study is to investigate the role of management information
system (MIS) enhancing the effectiveness of the banking industry.

1.5.2 Specific objectives

The specific objectives of this study were

To assess the relationship between management information system and the bank

To assess the consideration given for management information system by banking industry

To know the attitude (commitment) of top management towards the development of

management information system

To know relationship with information technology and other department in commercial

Bank of Ethiopia, Bure Damot branch

1.6 Significance of the study

The important of management information system for banking industry has become
bromine factor for the economy as a whole. Since the financial sector one of the largest
income generation of the country economy, improving their profitability and service
become per amount important for the development of economy for the nation. Today banks
play vital role of the country’s economy by giving much needed competitive advantage for
the industry after this completion, this research paper would have the following
contribution.

Firstly it creates know how in such that, using management information system an
organization is able to establish its hierarchical structure and work flow chart. Secondly,
the companies operating procedures would be listed by management information system
and the preparation of audit also get simplified.

6
Thirdly every employee in the organization would know the employee he/she has the
authority over and to whom he is responsible for work and workers then progress without
interruption.

The finding of the research helps initial insight for other researchers who are interested to
go through a detailed study for the future.

1.7 scope of the study

Due to the lack of sufficient time, finance and other resource geographically, the study
would focused on the management information system development and information
technology department of commercial bank of Ethiopia, Bure Damot branch.

1.8 Limitation of the study

 Some of the respondents were not interested to fill open ended questions on the
questionnaire.

 The employees carelessly filled the questionnaire

1.9. Organization of the paper

The paper would be organized in to five chapters. The first chapter would deal with the
introduction part consisting of background of the study, background of the organization
statement of the problem, research questions, objectives of the study, scope of the study
and significance of the study.

The second chapter contains literature reviews related to the study. In this chapter various
theoretical concept that related with management information system would be discussed.
The third chapter would be about research methodology.

Analysis of collected data interpretation of the analyzed data would be presented in the
fourth chapter. And finally, the fifth chapter would presents summaries of major findings,
conclusion and the possible recommendations.

7
 CHAPTER TWO

2. LITERATURE REVIEW

2.1. Definition of management information system

A management information system is an organized integration of hardware, software
technologies, data, process and human elements designed to produce timely, integrated,
relevant, accurate and useful information for decision making process (Hossein bidgoli,
2012)

Some writers prefer alternative terminology for management information system such as
information processing system, information decision system, organizational information
system, information system which support the operations management and decision
making function of an organization. (Govdon B.davis and H.Olson 2010)

Management information system is an integrated computer based user machine system that
provides information for supporting operation and decision making (Walton, 1987)

According to Robert V.head management information system has been described as a

pyramid structure in which bottom layer consists information for transaction processing,
status in quires, etc. the next level consists information resources in support of day to day
operation and control, the third level consists of information system resource to aid in
tactical planning and decision making for management control and the top level consists
of information resources to support strategic planning and policy making by higher levels
of management (Robert V.head,1967).

2.2. Information system resource and products

1. People resources: - are required for the operation of all operation systems

Specialists: - system analyst, software developers, and system operator those are peoples
who develop and operate information system. The specialist design information system
based on the requirement end users.

8
End users: - are people who use information system or the information it produces. They
can be customers, sales persons, engineers, clerks, accountants or managers.

2. Hard ware resources: - include all physical devices and materials used in information
processing

Machines: - computers, video monitors, magnetic disk drivers, printers, optical scanners

Media: - floppy disk, magnetic tape, optical disks, plastic cards paper forms

3. Software resources: - includes all set of information processing instructions

Programs: - operating system program, spread sheet program, word processing programs,
payroll programs.

Procedures: - data entry procedures, error correction procedures, paycheck, distribution

procedures.

4. Data resources: - product descriptions, customer records, employee files

inventories data base.

5. Network resources: - communication media, communication processor, network

need and control software.

Information products: - are manager’s reports and business documents using text and
graphic displays, audio responses and paper forms that are easily visualize or display on
customers and employees that support the provision of service. (James A.0 Brien 2004)

2.3 Features of management information system

Management information system can be distinguished from anther information system
within organization by reference to the specific feather of the system.

Provision support for structured decision maker at all levels.

9
Provision of non-line cases to the transaction processing system of the organization to give
summarizes information on the performance of the organization.

Use of relatively simples to produce summaries and computations rather than more detailed
mathematical model, over static calculation techniques found in a decision support system
(Kothari, 2004)

2.4 Information requirement of an organization

Information is a data that has been processed in to a mining full format for use by decision
makers with an organization. So information is a vital resource to an important integrated
in day to day operator and it is also useful as a means of communication with another
organization and individual. (Maracas, 2006)

Historically the organization information needs were categorized as follows.

Information for planning

Information for monitoring performance

Information for controlling activities

Information for decision making

Information for recording and processing transaction

These lists to treat information as something to help management in the

organization, more and more organization see information as available
strategic resource which can help them again competitive advantage rather
than more aid management (Claudio Vicbera, 1998).

Information for planning process incorporates several strategies all at which require
information that means organization mission setting background, situation analysis
objective setting strategy information tactic setting implementing and control uses
information. Information for decision making manager were need information to help

10
decides what occurs of action is must like to bring a situation under control the decision
making process usually needs some information about the triples an event a piece of
information that participate the need for decision the better the information follow the
sooner the need for a decision is indicated and the more times the decision information is
called to help in making the right decision. If the nature of the decision that a manager is
like to face can be predicated then information can be controlled in absence, this is speed
up the decision making process and enable the manager to bring situation under control
faster(Mohamed Said, 1995).

2.5 information requirement of manager

The information requirement of manager is very depend on their specific role within an
organization; management is normally divided in to three levels strategic, tactical and
operational as you know the different level of management will be involved specific actives.
strategic level of management is concerned with monitoring and controlling organization
as a whole make decision in the area such as opening new shops and factories or investment
in new product lines is done strategic level. Tactical level management is involved with
implementing the decision of the strategic manager and ensuring that the different division
or department within the organization is operating correct. Operational level manager are
responsible for the control of the day to day operation of the organization, reporting
problem beak to tactical management for decisions as necessary, however the decision in
to these levels refers to types of activities and does not necessarily refer to divisions of
duties between staff. For example staff involved mainly in tactical level activity may also
participate in strategic decisions and may also certain routine operational level task of their
own all three level involve both the planning and controlling activities. (Walton, 1987).

2.5.1 Strategic management

Strategic management mass involved in markup decision about the object rules of the
organization chance in these objectives the resource used to attain the objectives policies
governor’s action and suppository of these resources. Strategic planners is usually about
not always concerned with the term objective of an organization, for example a company
specialized in production and sale of tobacco product may forecast declining market for
these product and mass their fore decided to change its objectives to allow a progressive

11
change in the leisure industry, which is considers to be expanding strategic decision
involves the formulation of the new objectives and deciding on the manner in which the
new are already industry. Although strategic planning is concerned with long term goals,
it often involves the long term actions, for example the age is city on of a new company in
the leisure industries in made in order to fulfill a long term objective but, it refuse short
term planning control action all of which is classified under the head of strategic planners
(Evanston, 2005).

2.5.2 Tactical management

Decision taken by tactical manager are numerous these include pricks decision and ether
element of the market mix such as advertise and distribute decision relating to purchase
and suppliers stock levels and other aspect of workers capital and fixed asset replacement
decisions (Ladjo,2007).

2.5.3 Operational management

Operational management involved with day to day decision making concerning the detailed
transaction and the process within the organization, however, as more tasks are becomes
automated the human factor in operational control become less important. Many tasks are
subject to programmed control that is where the relationship between input and output
specified however, where process are carried out by people human factor s operational
control will always become important as people need to be motivated to perform routine
tasks to consistently high standard.(Robert V.krejce,1970).

2.6 Decision making and quality of information

To be useful information must possess certain quality such as time line and relating to the
area of business, the manager receiving the information is actually responsible for
information is said to be useful when if fulfillment the following characteristics.

 Relevance:- it reduce uncertainty by helping new product what happen or

confirm what already has happed

12
  Reliability it is dependable, that means free from error or pies faithful poor
trays events and activities

 Completeness it is dose not leave out anything that is important

 Time line to get it in time to make your decision

 Understandability it is presented in a manner the nature of information to

such that different people would tend to produce the same results

 Accessibility you can get it when you needed it and information you can
use (Mesfin 2008).

2.7 The nature of decision making

Decision can be broken down in to three main types those which can be made the following
set of rule and procedure (structural decision ) those which can be made by using some
predetermined rule and procedure (non-structural ) and those which can only be made
subjectivism (unstructured decision).

2.7.1 Structured decision

These mean that:-

 Decision can be taken objectiveness

 There is clear defined method of solving the problems

 Generally there is right answer An example of structural decision would

be deciding on the minimum price of which product should be sold the
minimum price should equal the marginal cost of the product (Davis.GB.
and MH, 1985)

2.7.2 Unstructured decision

This sort decision can only be reach subjectively and example would be the hiring of new
employee would they fit in the company existing practice at what price a product should

13
would be sold high price low volume or low volume /high price. Effort is often made to
turn unstructured decision in to structure one by setting hard and fast criteria. This practice
is ginning ground in such filed as requirement and granting credit facilities. (Claudio,
Vcibora, 1998).

2.7.3 Semi structure decision

The line between structured and unstructured decision some part the decision making the
process are programmable (structured) other are not for example deciding how much
stocked to maintain for products are involve an analysis of prior usage (programmable) but,
this mass then have to be adjusted if competitor has recently gone out of a business and we
expect additional, but unknown demand (Claudio Vcibora, 1998).

2.8 Types of information system

As you have seen each of the management level within an organization used different types
of information system. The individual system is focused on the need of management within
each level and so they have different information and tend to present that information in
different system can be provided as the follower operation level. The system can be
provided to support operational managers be tracking the individual sale invoice. Cash
precept, species good to sold to customer etc. would be found within this system. All the
data were be collecting in to the transaction processing system.

Management levels: - the management level with an organization is designed to assist with
the monitoring and control of other system they are tend to provide report on an
examination basis to support the decision making of more senior manager. Decision
support system (DSS) is used to provide summaries information, while management
information system provides summaries of the transaction data from the transaction
processing system (TPS).

Strategic level:- the strategic levels system help management address more long term issues
and problems such as the overall strategic direction and product, like the production of five

14
year plans, the executive support system provide management with the summarized
strategic information needed to make decision (Walton,1987).

2.8.1 Executive support system (ESS)

An executive support system (ESS) is types of decision support system oriented to the
needed senior executive. Incorporate a work station programmed to minimize the
procedure for obtaining management information. It May have access to external database
such as new and stock exchange date in order to gain up to date information that may have
an impact on the organization. Executive support system needed deal with strategic
decision that are difficult to plan for in advanced it is unusual to find any routine report
bring product to plan for in advance. It is unusual to find any routine report being produce
on paper. In effect the need for executive information system from the short coming of
management information system. Most management information system produce
voluminous printed reported at fixed intervals executive level used their report because this
find that those do not help to answer the question that concern senior management (Walker
and Damapour, 1998).

The Uses of ESS:

While the image of senior executive is that of people concerned with the longer strategic
issue, the reality is that they are often very concerned about the short term performance of
the organization. It is monitoring of this kind of information which executive information
system are typically put to the nature of the war in which an executive may every system
particularly suits this kind of reporting need if sale are down lost month, he or she can
quickly find out the area which require action. This help the executive keep the
organization within budget.

2.8.2 Decision support system (DSS)

Decision support (DSS) is a form of management information system. It is also software
which create model of what is known as best current practice and it is consulted to obtain
specialist assistance decision modeling decision theory and decision analysis attempt to

15
make model from which the best decision can be taken. DSS give the decision maker the
access to this type of model but, the intelligent intuition and judgment of the decision
making are integral part of the system. A good DSS should have balance among the three
capabilities. It should be easy to use, to support the interaction with non-technical user. It
should have access to avoid variety of data and it should provide modeling and analysis in
many ways. In summary DSS is not concerned with the routine processing of transaction
recording keep or reporting (O, Kendie and S. Yusuf, 2002).

Characteristics of decision support system

Further characteristics of decision support system include:-

 Broad base approach to supporting decision making those help to identify important
further trained, obtaining the organization to changing condition.

 Decision making retain control over the decision making. It allowed the
capability of restrictive manipulate present and store data.

 Utilization of appropriate mathematics and statics model to assist the

decision maker in evaluating the alternative solution.

 Every capability to obtain information by request the interactive model

of the system extends the individual reasoning process.

 Output directed to organization personnel at all level, it also provide

 Integrated sub systems allow manager and personnel to retrieve and

manipulate information to support decision.

2.8.3 Knowledge work system (KWS)

Knowledge work means creating new knowledge of information by reach experimentation
and investigation in to existing trend and product those are many different area of
knowledge each one can be support by its own knowledge.

Knowledge work system is a computerized package designed to provide knowledge works

which means to create and integrate new knowledge in to an organization. Knowledge

16
works themselves perform many essential taken within an organization including ,Keeping
the organization up to date with new knowledge as it develops outside the company, area
such technology science and humanities ,Providing advice inside the organization, acting
as change agent by actually recommending and implementing changes within an
organization(Kothari ,2005).

2.8.4 Office automation systems

The main aim of office automation (OAS) is to capture and then distribute knowledge
around an organization. The system does not nieces serials assist in the production of new
knowledge but, it help facilitate these process by offering communication and processing
spreads sheet and other application that all employee within an organization is use
(Atkinson, 2007).

2.8.5 Transaction processing system (TPS)

Transaction processing system is the main system serving the operational level of the
organization. It recording all of the daily routine transaction that take place within the
organization and is used primarily by clerks and operation staff that either input or maintain
the data on the system the recording of the individual sale in necessary for the production
of invoice and as base for company accountant means of the decision made are automatic
and can be delegated to computer. The stock reordering process, for example the triggered
when stock levels fail bellow the reorder level. These tasks are routine but, are made more
efficient and cost effective by the use of computers. Once date has been put on to the
computer, it can easily be manipulated and used to produce additional information.
(McGraw-Hill, 1984).

After the data has been computer by TPS, the MIS and other strategic system can then use
it. There is often be directed links from the TPS to the MIS. With the later effectively
summarizing from the TPS to show totals for a week’s month or even years the
summarization process allows trend to be established and helps with strategic planning.

2.8.6 Expert system (ES)

Expert system are mentioned here because they provide useful information to management,
even though, they are not part of the hierarchy of information system discussed previously

17
expert system store the knowledge and experience of the number of expert in structured
data base known as knowledge often on line or by frequently up grade. Expert system can
be used at variety of different levels at the simplest level they can give factual answer to
technical question and at more complex level they can suggest how decision should be
recommending course of action( Atikson,2007)

2.8.7 Management information system (MIS)

Management information system has a significant role in the success of service and other
organization. According to O Berien the role of management information system is
classified in into three (O Berien, 1990).

i. Support of business operation iii. Support of management decision

ii. Support of competitive advantage

Support of business operation by processing data with more speed and more capacity
generated by and used in business operation. They recorded and process data resulting from
business transaction. Update database and produce various documents and reports to speed
up business operation and hence decision making would be on time. Information system
plays a great role by providing reports and critical information to mangers. They also give
advice and interaction support for manager. It are achieves this role by improving
operational efficiency of the organization, promoting business information and building
strategic information.

According to O Berien, the main role of management information system in business:-

 To produce necessary infrastructure

 To create user awareness

 To monitored the financial and capital requirement.

 To inter-link varies business activities

18
 2.9 Importance of Information System
It would be repetitive to say that IS or information technology (IT) are playing vital and
expanding role in business. However, making a short last of the benefit is enable to better
demonstrate the significance of IS.

AS O’Brien, stated it is important to study and know the IS of an Organization because

Information system is:-
 A major functional area of business that is as important as to business success.
 An important contributor to operational efficiency, employee productivity and
morale, and customer service and satisfaction.
 A major source of information and support needed to promote effective decision
making by managers.
 An important ingredient in developing competitive products and service that gives
an organization a strategic advantages in the global market place.
 A port of resources of an enterprise and its costs of doing business, thus posing a
major resources management challenge.
 A vital dynamic and challenging career opportunity for millions of men and women.
In short IS can help kinds of business to improve the efficiency and effectiveness of
business process by eliminating data inconsistencies, enhancing managerial decision
making by maintain high degree of accuracy and timely reports and work group
collaboration.
Thus it cans strength their competitive position in a rapidly changing market place is used
for strategic success of the organization. Among these organizations the major is banking
(Ibid, 1999).

2.10 Banking Information System (BIS)

Banking information system can be viewed as an arrangement of software, hardware,
database, telecommunication and network, peoples and procedure to collect manipulate,
store data and procedure output in a bank (koch, 1995)

19
2.11 Empirical Review of the study
Through the following presentation, the researcher arranged previous studies related to the
subject of study in descending order.

The Study of ( Reddy..et..al, 2009) Title is " Management Information system to help
managers for providing decision making in all organization " ,this study investigate in
provides management information system (MIS) information on the administrative
activities of the organization. The main purpose of this research is, MIS provides accurate
and timely information necessary to facilitate decision-making and enable organizations
planning and control the executive and the tasks to be carried out effectively process.
Management Information System (MIS) is mainly concerned with the processing of data
into information and then is transferred to different departments in the organization to take
the appropriate decision. MIS is a subset of the overall planning and monitoring, which
covers the application of human beings, techniques, and procedures of the organization's
activities.

Study of ( Karim, 2011) Title is " The Significance of Management Information Systems
for Enhancing Strategic And Tactical Planning ", this study investigate in management
information systems (MIS) is a key factor to facilitate the achievement of the efficiency of
decision-making in the organization. This paper explores the extent to implement systems
to make successful decisions in two of the selected financial organizations and
administrative information. Research examined whether the selected financial institutions
in Bahrain vary regarding the use of the leadership of management information systems
for the purposes of making strategic and tactical planning decision. Conditioning research
and quantitative research designed to examine two hypotheses. It was distributed to a total
of 190 questionnaires equally to those who work in the various administrative levels in the
selected organizations. Search Results showed that the MIS was used primarily to enhance
the strategic planning in the financial institutions. Regression analysis revealed that the
tactical planning and found to have no effect on the decision-making, while the strategic
planning have a clear impact on the effectiveness of decision making in both organizations
and the study showed no differences in terms of gender and experience variable.

20
Study (Jane..et..al, 2013) entitled " Management Information System as a Technique in the
Administration of Secondary Schools in ABA Zone South East Nigeria", this paper has
investigation information management system as a tool in secondary schools in the ABA
Education Management District, southeast Nigeria. The descriptive study to determine the
extent of the official high school use of management information systems management tool.

21
 CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

Research is a systematic investigation that is used to find the answers for questions
raised, whereas methodology is a system of rules that are explicit and built up on which
the research is based and against which the claims for knowledge are usually evaluated
(Nachamias, 1996). Research is conducted based on theory which is extracted from deep
literature study and it helps to interpret and collect the data. The theory basically serves
as a foundation to conduct the research.

Research methodology defines the systematic and scientific procedures used to arrive at
the results and findings for a study against which claims for knowledge are evaluated
(Cooper & Schindler, 2006; Saunders, 2000). A methodology is therefore shaped by the
perspectives the researcher chooses to approach a study.

3.1 Research design

Research Designs are the plans and the procedures for research that span the decisions from
broad assumptions to a detailed methods of data collection and analysis. This plan involves
several decisions and they need not to be in the order in which they make sense to me and
the order of their presentation. The overall decision involves which design should be used
to study for the topic. Informing this decision should be the world view assumptions the
researcher brings to the study; procedures of enquiry and specific methods of data
collection, analysis and interpretation. The selection of the research design is based on the
nature of research problem or issue being addressed, the researchers personal experience,
and the audiences for the study.

(Cress well, 2003). Based on this research is a systematic inquiry aimed at providing
information to solve problems. So that, In order to solve the problem or answer the research
questions appropriate methodology should be designed in order to show how research
questions will be answered in the most rigorous method.

22
The study was conducted in commercial bank of Ethiopia, Bure Damot branch in order to
get the required data appropriate source of data was employed. The study would employed
descriptive survey research design to carry out the research to describe the issue and came
up with the relevant solution. The main purpose of such research is to describe the state of
nature and affairs as if it exists at present to report what would happen or would be
happening.

3.2. Population and sampling technique

Commercial bank of Ethiopia, Bure Damot branch has total number of 39 employed and
the study would take 39 employees of the target population. Since the population is
manageable, the researchers used census to conduct the study.

3.3. Types of data collected and collection method

This study was used both primary and secondary source of data. In which the primary data
would be collected by using questionnaires of bank workers. The secondary data would be
gathered from manuals of banks books, documents and others.

3.4. Data analysis methods

Different statistical techniques were employed on the basis of the basic questions stated
and on the nature of the data collected. Consequently, the data collected from the
respondents were analyzed quantitatively and qualitatively. In analyzing the quantitative
data, respondents were categorized and frequencies is tallied.

After collection of all questionnaires from the respondents using the above method of data
collection and census method data analysis would be done. The data gained from the study
or collected from the respondent would be analyzed using descriptive analysis which uses
tabulation, percentage and statements.

23
 CHAPTER FOUR

4. PRESENTATION AND ANALYSIS OF DATA

4.1 INTRODUCTION
This chapter deals with the description of the sample population, presentation, analysis and
interpretation of the data based on the information obtained from the questionnaire,
interview, and documents. The primary focused of this study is to assess the role of
management information system in enhancing the effectiveness of commercial bank of
Ethiopia Bure Damot branch. Out of 39 questionnaires distributed to the respondent of
commercial bank of Ethiopia, the complete responses were returned from the bank
employees.

Table 4.1 demographic characteristics and the respondents

S. No Item Measurement Respondent

No %

1 Sex Male 34 87

Female 5 13

Total 39 100

Age group 18-25 16 41

26-33 14 36

34-41 8 21

42-49 1 2

Above 40 - -

Total 39 100

24
 Educational Diploma 4 10
status

Degree 19 49

Master 16 41

PHD - -

Other - -

Total 39 100

Work Bellow 2 years 4 10

experience

2-5 years 7 18

6-9 year 18 46

Above 10 years 10 26

Total 39 100

Source:-questionnaires 2022

As it is clearly indicated in table 4.1, the number of male respondents are 34(87%) whereas
the numbers of female’s respondent is 5(13%) out of the total respondents 39(100%). This
implies that most of the respondents are male.

The second items of the table 4.1 shows the age distribution in the bank out of the total
respondents 16(41%) are found between the age interval of 18-25 years,14(36%)
respondents found between 26-33 years and 8(21%) respondents are found between the
age of 34-41 years and 1(2%)is found between age of 42-49.
The educational status of respondents of the above table shows that 19 (49%) are first
degree holder, 16(41%) are master degree holders and 4 (10%) is diploma. This indicated

25
that most of the bank employees are educated and they can easily understand the
management information system.

As the above table has depicted with regard to work experience of the employees, 4(10%)
of the respondents serve the organization for less than 2 years, 7(18%) of the respondents
serve the organization for 2-5 years, 18(46%) respondents have 6-9 work experience and
the last who have more than 10 years’ work experience is 10(26%). This implies that the
majority of employees are experienced.

Table 4.2 shortage of skilled man power in MIS, performance of

managing information system and current MIS.
NO Item Measurement Respondent

No %

1 Is their shortage of man power in MIS on the Yes 19 49

processing of information system

No 20 51

Total 39 100

2 The performance of managing information system High 15 38

of Bure Damot branch

Medium 16 41

Need 8 21
improvement

Total 39 100

3 The current management information system of Very Good 20 51

the bank is

Good 12 31

26
 Medium 7 18

Poor - -

Total 39 100

Source: - questionnaires 2022

As the above table has depicted with regard to shortage of manpower on processing of
information system out of the total respondents 19(49%) said yes, and 20(51%)
respondents said no. This implies that there is shortage of skilled man power in MIS on
process information system. The manager of the bank should give appropriate training.

With regard to the performance of managing information system, 15(38%) respondents

replied that the performance of management information system is high , 16(41%)
respondents replied that the performance of management information system is medium
and 8(21%) replied that it needs improvement. This implies that the managing and control
of performance of MIS in commercial bank of Ethiopia, Bure Damot branch is mostly
medium and it needs improvement to have high performance.

As indicated in the table 4.2, out of 39 respondents 20(51%) said very good about the
current management information system of the bank is 12(31%) said good and 7(18%)
respondents said medium. This implies that the current management information system
performance of CBE Bure Damot branch is very good, good and medium; it is also needs
some improvement.

27
Table 4.3 the information development project
S. No item Measurement Respondents

No %

1 Who conduct the Internal staff 22 56

information development
project?

External staff -----

Both 17 44

Total 39 100

Source: - questionnaires 2022

As shown in table 4.3, 22(56%) of the respondent said that the information development
project is conducted by internal staff and 17 (44%) said conducted by both internal and
external staff. This implies that majority of Information development project is conducted
by known and skilled man Power which is related to the activities from the organization
and outside staff or both.

28
Table 4.4 MIS delivery
S No Item Measurement Respondents

No %

1 The information delivery of Very good 14 36

commercial bank of Ethiopia,
Bure Damot branch at the right
time to the right people

Good 18 46

Medium 6 15

Poor 1 3

Very poor - -

Total 39 100

Source: - questionnaires 2022

As indicated in table 4.4, employees were asked about the service delivery of commercial
bank of Ethiopia at the right time to the right people. From the entire respondents, 14(36%)
said very good service delivery, 18(46%) said good service delivery, 6(15%) medium
service delivery of the bank and 1(3%) of the respondents said at the right time to the right
people is poor. This implies that the service delivery of the bank at the right time to the
right people is good.

29
Table 4.5 the relationship between IT expert and other unit
S No Item Measurement Respondent

No %

1 How is the . Highly positive 17 44

smooth relationship related
between IT and other
expert

Positive related 13 33

satisfactory related 9 23

Poor related - -

Very poor related - -

Total 39 100

Source:-quaternaries 2022

Information technology experts should have relation with other unites. As shown in the
table 4.5 the relationship between IT expert and other unit, out of the total respondent
17(44%) said very high positive relationship,13(33%) said positive relationship and 9(23%)
said satisfactory related. This implies that information technology and other units have
highly positive relationship.

30
Table 4.6 five elements of MIS
NO Item Measurement Respondents

No %

1 How does the Timely Very good 11 28

commercial bank of
Ethiopia practice the five
elements of MIS?

Good 18 46

Medium 10 22666

Poor -- --

Very poor - -

Total 39 100

Accuracy Very good 4 10

Good 15 39

Medium 20 51

Poor -- --

Very poor - -

Total 39 100

completenes Very good 3 8

s

Good 18 46

Medium 16 41

31
 Poor 2 5

Very poor - -

Total 39 100

Very good 5 13
Consistency

Good 20 51

Medium 14 36

Poor -- --

Very poor - -

Total 39 100

Relevance Very good 5 13

Good 22 56

Medium 12 31

Poor -- --

Very poor - -

Total 39 100

Source:-questionnaires 2022

Employees of the bank were asked about the practice of Management information system
elements. As shown in the table 4.6, item 1, with related to timely practice of management
information system, out of the total respondents 11(28%) said very good, 18(46%) said
good and 10(26%) said medium. This implies that the majority of timely practices of
management information system perform at good and very good level. This indicates that
the managing and processing of information based on time value is in good level. The

32
commercial bank of Ethiopia, Bure Damot branch should improve timely practice of
information to support the planning, controlling and operation function of the organization
furnishing uniform in the prepare time frame to assist the decision makers.

Accordingly to the above table out of 39 respondents, 4(10%) said very good, 15(39%)
said good and 20(51%) said medium practice of management information system. This
implies that the bank has medium accuracy practice of management information system
but, it needs improvement.

With regard to the completeness practice of management information system out of the
total respondents, 3(8%) said very good, 18(46%) said good, 16(41%) said medium and
2(5%) said poor practice for completeness but, it need improvement as I can see from the
table the performance of completeness also similar to the above time and accuracy MIS is
performed in complete manner to support other.

With regard to consistency practice of management information system out of the total
respondent, 5(13%) said very good, 20(51%) said good and 14(36%) said medium level.
The finding of the study shows consistency shows good and needs some improvement.

With regard to relevance 5(13%) said very good, 22(56%) said good and 12(31%) said
medium level. This indicates that the relevant practice of MIS is good in Bure Damot
branch and it needs improvement. This impels that the consistency and relevance practice
of management information system performed at good and medium level, but it needs some
improvement. The CBE, Bure Damot branch should improve the performance of each
element of management information system to in enhancing managerial decision making
by maintain high degree of accuracy and timely reports and work group collaboration.

33
Table 4.7 Error encountered while running the system

no Item Measurement Respondent

No %

1 How often do you face difficulty Always 1 3

or error in running the system?

Often 14 36

Sometimes 22 56

Never 2 5

Total 39 100

Source:-questionnaires 2022

As it is shown in table 4.7 above out of the total respondents 1(3%) said always, 14(36%)
said often, 22(56%) said sometimes and 2(5%) said never in running the system. The
researchers conclude that most of the bank employees face difficulty in running the system
due to in adequate training the managers of the bank should improve the development and
training program effectively, so as to address main useful and update information for
employees and develop well linked information system within employees.

34
Table 4.8 information for decision making
NO Item Measurement Respondents

No %

How is the sufficiency of very high 3 8

information that you get for
decision making

High 18 46

Medium 16 41

Low 2 5

Very low - -

Total 39 100

Source:-questionnaires 2022

It would be repetitive to say that sufficient information system or information technology

are playing vital and expanding role in business. As the above table depicts with regard to
sufficiency of information employees gets for decision making, out of the total respondents
3(8%) said very high, 18(46%)said high, 16(41%) respondents said moderate and 2(5%)
said low. This implies that the respondents get sufficient information at moderate and high
level. The organization should be providing sufficient information to its employees in order
to make appropriate decision which is better than the current decision-making process. In
short MIS can help kinds of business to improve the efficiency and effectiveness of
business process by eliminating data inconsistencies, enhancing managerial decision
making by maintain high degree of accuracy and timely reports and work group
collaboration.

35
 Table 4.9 management information system (MIS) problème
NO Item Measurements Respondents

No %

1 What are the MIS problem in commercial Delay in processing 20 51

bank of Ethiopia

Delay in 8 21
communication

Often redundancy 6 15

Inconsistency 5 13

Total 39 100

Source:-questionnaires 2022

A good managers or supervisors should be hard worker to reduce management information

system problems. As it is indicated in table 4.9, out of the total respondents 20(51%) replied
a problem of delay in processing, 8(21%) replied a problem of delay in communication,
6(15%) replied a problem of redundancy, and 5(13%) replied a problem of inconsistency.
This implies that the commercial bank of Ethiopia, Bure Damot branch face the following
management information system problems, this are delay in processing, delay in
communication, often redundancy and inconsistency. The performance of the bank
crippled by slow processing of business, which limit employee’s efforts and hurts
customer’s services For this reason the quality of information system and the organization
service delivery have severed. So the top managers should be addressed main useful and
update information for employees and as well as their must be create well linked
information within the organization.

36
Table 4.10 the consideration of employees to MIS
NO Item Measurement Respondents

No %

1 The consideration of employee for Very high 7 18

MIS

High 22 56

Medium 7 18

Poor 3 8

Very poor - -

Total 39 100

Source:-questionnaires 2022

As the above table has depicted with regard to consideration of employees for
management information system, out of the total respondents 7(18%) said very high,
22(56%) said high,7(18%)said medium 3(8%) said poor. This implies that the majority of
employees have high consideration of management information system. This indicates that
employees are understand the role of management information system in support the
planning, controlling and operation function of organization furnishing uniform
information in the proper time frame to assist decision making.

37
 Table 4.11 employee’s knowledge about MIS
NO Item Measurement Respondents

No %

1 The knowledge of employees about Very High 7 18

MIS

High 12 31

Medium 15 38

Poor 5 13

Very poor - -

Total 39 100

Source: - questionnaires 2022

Good knowledge of employee’s about MIS plays a vital role for good decision making
through providing relevant, accurate and consistence information. The knowledge of
management information system is important for providing information inside the
organization and keeping the organization up to date with as it develops outside the
company.

As the above table has depicted with regard to the knowledge of employees about MIS are,
7(18%) of the respondent said very high, 12(31%) of the respondent said high, 15(38%)
said medium and 5(13%) said poor. This implies that the knowledge of employees about
MIS is medium and it needs some improvement to have high knowledge. MIS plays a vital
role for good decision making through providing relevant, accurate and consistence
information to the managers.

38
 Table 4.12 the commitment of top management about MIS
NO Item Measurement Respondents

No %

The commitment of top management to Very high 8 21

MIS

High 18 46

Medium 8 21

Poor 5 12

Very good - -

Total 39 100

Source:-quaternaries 2022

The bank manager should have often an intuitive understanding of the power and potential
of information system, those propelling many companies’ institutional system and
information technology. As indicated in table 4.12, out of 39 respondents 8(21%) said very
high about the commitment of top management in MIS, 18(46%) said high, 8(21%) said
medium and 5(12%) said poor. This implies that the commitment of top management
towards management information system is high.

39
The response for open ended questionnaires
Mention any possible obstacle for the successful implementation of MIS in commercial
bank of Ethiopia, Bure Damot branch?

The respondents mention the basic obstacles are:-

 Data redundancy

 lack of Skilled man power

 Problem of decision making

 Delay of fast response

 Improper management of information

 not giving high emphasis

 lack of skill in analyzing

 lack of materials

Mention the role of management information system in enhancing the effectiveness of the
bank industry service delivery?

The respondents mention the roles of MIS are:-

 improved operations’ efficiency

 Facilitate planning

 effective utilization of resource

 minimization information overload

 it brings coordination

 it makes control easier

40
  it assembles, processes, stores, retrieves, evaluates and disseminates
information

 it encourages decentralization because of easy for monitoring

operations at lower level

 ensures that appropriate data is collected from various sources,

processed and sent further to all the needy destination

 communication become cheaper, quicker and more efficient

 For support management decision

 For competitive advantage
 For two way communication
 Review and update the system
 To create users awareness
 To create loyal customer
 For excellence customer service
 For consistency
According to your perception how can you increase your knowledge of MIS or give
recommendations about problems of MIS that you saw in the bank?

The respondents mentioned how can they increase their knowledge of

MIS
 by training given by the office through ongoing and off going training
 discussions
 learning MIS formally or informally
 by using MIS in day to day activity

41
 CHAPTER FIVE

5. CONCLUSON AND RECOMMANDATION

Summary
The main objective of the study was to analyze the role of MIS in enhancing the
effectiveness of banking industry in commercial bank of Ethiopia, Bure Damot branch in
this regard primary data such as questionnaires and secondary data been intensively
reviewed.

In making analysis of the data, simple statistical measures such as percentage, frequency
and table have been used. Based on data analysis and findings the following conclusions
and recommendations are forwarded.

Based on Analysis and interpretations made at the previous chapter the following
conclusion and recommendation are made.

5.1 Conclusions
The achievement of the organizational goals largely depends on the managers’ ability to
plan, organize, direct and control both the human and material resources as efficiently as
possible. Besides, special attention shall be given to the role of management information
system for it is an engine to all other elements of a system to function properly. Based on
the findings the following conclusions are made to achieve the objectives of the study.

From this study the researchers conclude that, there is a shortage of skilled man power in
management information system on processing and organizing of information system

The current management information system performance of CBE Bure Damot branch
needs some improvement.

Information development project is conducted by known and skilled man Power which is
related to the activities from the organization and outside staff

42
The overall problems of MIS are lack of skilled man power, problem of decision making,
delay of fast response, lack of materials, data redundancy, delaying of data processing, and
delay in communication, inconsistency and improper management of information.

The organization is not give much emphasis regarding to employee training about how to
use the system, because MIS as a current emerging system of tool, so it requires an
intensive training about how to use and operate the system.

MIS plays a vital role for good decision making through providing relevant, accurate timely
and consistence information to the managers.

The consideration of employees and commitment of top management to management

information system is medium.

The information technology experts and other units have positive relationship.

The five elements of management information systems practiced s nearly at good level.

The employees of the bank faced difficulty or error in running the system.

Employees get information at medium level for their own day to day operation and decision
making.

The respondents mention the basic obstacles are:-

 Data redundancy

 lack of Skilled man power

 Problem of decision making

 Delay of fast response

 Improper management of information

 not giving high emphasis

 lack of skill in analyzing

43
  lack of materials

The main role of management information system in the organization:-

 improved operations’ efficiency

 Facilitate planning

 effective utilization of resource

 minimization information overload

 it brings coordination

 it makes control easier

 it assembles, processes, stores, retrieves, evaluates and disseminates

information

 it encourages decentralization because of easy for monitoring

operations at lower level

 ensures that appropriate data is collected from various sources,

processed and sent further to all the needy destination

 communication become cheaper, quicker and more efficient

 For support management decision

 For competitive advantage
 For two way communication
 Review and update the system
 To create users awareness
 To create loyal customer
 For excellence customer service
 For consistency

44
Employees of the bank increase their knowledge through;
 by training given by the office through ongoing and off going training
 discussions
 learning MIS formally or informally
 by using MIS in day to day activity

5.2 Recommendation
Based on the above conclusion the following possible solution for the problems which were
raised by respondents of the commercial bank of Ethiopia, Bure Damot branch employees
are forwarded as follows:

The existing problems delaying in processing data redundancy, data inconsistency should
be solved as soon as possible by design specific procedure and using advanced technology.

The organization should established MIS department for developing new system not only
requested basis for assessing and acquiring new technology, for assessing corporate
information need and the like.

The organization should be designed well organized and develop MIS to make appropriate
decision which is better than the current decision-making process.

The organization should be providing sufficient information to its employees in order to

minimize errors in running the system or give much emphasis regarding to employee
training about how to use the system, because MIS as a current emerging system of tool,
so it requires an intensive training about how to use and operate the system

The Bank should adjust its, policy in order to provide opportunities like further education
and training, and the Bank needs to be sensitive in designing and revision jobs to maximize
skill variety, task significance, opportunities for learning and growing.

45
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