EFFECTS OF MANAGEMENT INFORMATION SYSTEM ON SMALL

AND MEDIUM, ENTERPRISE PERFORMANCE, IN THE CASE OF

BORICHA WOREDA, SIDAMA REGIONAL STATE, ETHIOPIA

BY: NASSE FUTTANA

RIFT VALLEY UNIVERSITY

HAWASSA CAMPUS
DEPARTMENT OF BUSINESS MANAGEMENT
MBA PROGRAM

JUNE, 2023

HAWASSA, ETHIOPIA
Information System on Small and Medium, Enterprise Performance, In The
Case Of Boricha Woreda, Sidama Regional State, Ethiopia

A Thesis Submitted to Department of Business Management in Partial

Fulfillment of the Requirements for the Award of Master’s Degree in Business
Administration (MBA)

By:
Nasse Futtana
Advisor: Abayneh A
(MBA)

Rift Valley University

Hawassa Campus
Department of Business
Management MBA Program

June, 2023
Hawassa, Ethiopia

i
 DECLARATION

I hereby declare that this MBA thesis is my original work and has not been presented for a
degree in any other university, college, and all source of materials used for the thesis have
been duly acknowledged.

Name: Nasse Futtana

Signature:
Date:

ii
 ADVISOR APPROVAL SHEET

This is to certify that the thesis entitled “Effects of Management Information System on Small
and Medium, Enterprise Performance, In The Case Of Boricha Woreda , Sidama Regional State,
Ethiopia” submitted in partial fulfillment the requirements for the Degree of MBA, the Graduate
program of the Rift Valley University, Hawassa Campus and has been carried out by Nasse
Futtana under my supervision. Therefore, I recommend that the student has fulfilled the
requirements and hence hereby can submit the thesis proposal to the Department.

Name of Advisor Signature Date

iii
 POST GRADUATE GROGRAM
RIFT VALLEY UNIVERSITY
EXAMINERS’ APPROVAL SHEET

We, the undersigned, members of the Board of Examiners of the final open defense by Nasse
Futtana have read and evaluated his/her thesis entitled “Effects of Management Information
System on Small and Medium, Enterprise Performance, In The Case Of Boricha Woreda,
Sidama Regional State, Ethiopia”, and examined the candidate. This is therefore to certify that
the thesis has been accepted in partial fulfillment of the requirements for the degree.

Name of Advisor Signature Date

Name of Internal Examiner Signature Date

Name of External examiner Signature Date

PG Approval Signature Date

Final approval and acceptance of the thesis is contingent upon the submission of the final copy
of the thesis to the Post Graduate (PG) of the candidate’s department.

iv
 ACKNOWLEDGEMENTS

I am indeed grateful to God Almighty who gave me physical and mental strength and
knowledge to enable me complete this research work successfully.
I wish to render many thanks my advisor Abayneh A.(MBA) for his advice, suggestions and
guidance that he made in the writing of this thesis. Also my sincere and deepest gratitude goes
to my family and friends for their support and encouragement during my study.
It is a pleasure to convey my thanks go to employees and higher officials of Ethiopia Insurance
Hawassa district for their cooperation in providing me the necessary documents and reflections
required for the study.

v
 Contents
DECLARATION.....................................................................................................................................................ii
ADVISOR APPROVAL SHEET...........................................................................................................................iii
EXAMINERS’ APPROVAL SHEET....................................................................................................................iv
ACKNOWLEDGEMENTS.....................................................................................................................................v
Abstract...................................................................................................................................................................ix
CHAPTER 1.............................................................................................................................................................1
INTRODUCTION....................................................................................................................................................1
1.1. Background of the Study...................................................................................................................................1
1.2. Statement of the Problem..................................................................................................................................2
1.3. Research Questions...........................................................................................................................................3
1.4. Objectives of the Study.....................................................................................................................................3
1.5. Significance of the Study..................................................................................................................................4
1.6. Scope of the study.............................................................................................................................................4
1.7. Organization of the paper..................................................................................................................................4
CHAPTER 2
..................................................................................................................................................................5
2. LITERATURE REVIEW.....................................................................................................................................5
2.1. Management Information System...................................................................................................................7
2.2. Objectives of Management Information System............................................................................................15
2.3. Elements of Management Information System...............................................................................................15
2.4. Classification of a Good Information..............................................................................................................16
2.4.1. Characteristics of a Good Information System............................................................................................16
2.5. Problem of Implementing a Computer Based Management Information System..........................................17
2.6 Benefits of Management Information System.................................................................................................18
2.7 Concepts of Management Information System...............................................................................................18
2,8. Information Requirements for modern business.............................................................................................18
2.9. Types Of Information Management Systems...........................................................................................19
2.9.1. Management Information Systems and decision making...........................................................................20
2.9.2. Relationship between decision Support Systems and decision making.......................................................22
2.9.3.Role Of MIS In Improving Decision Making:..............................................................................................23
2.9.4. IS and organizational performance...........................................................................................................24
2.9.5. The impact of information system on organizational performance..........................................................25
2.9.6. Impact of IS on managers.........................................................................................................................25
2.9.7. Impact of IS on employees.......................................................................................................................26
2.10. The utility of the MIS................................................................................................................................26
2.11. Record Keeping Performance (RKP).......................................................................................................28
2.12. Opportunities of implementation of Management Information System...................................................29
2.13. Challenges Of Using Management Information Systems.........................................................................31
2.14. MSE PERFORMANCE............................................................................................................................32
2.15. Conceptual framework..............................................................................................................................32
CHAPTER 3...........................................................................................................................................................34
RESEARCH METHODOLOGY...........................................................................................................................34
3.1.Study Area........................................................................................................................................................34
3.2. Description of the Study Area.........................................................................................................................34
3.3.Research Design...............................................................................................................................................35
3.4. Sources of data................................................................................................................................................36
3.5. Sampling Design.......................................................................................................................................36
3.6. Target Population......................................................................................................................................36
3.6.1. Sampling size............................................................................................................................................36
3.7. Method of data collection.........................................................................................................................36

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3.8. Method of data analysis............................................................................................................................36
3.9. Ethics/ legal consideration........................................................................................................................37
CHAPTER FOUR..................................................................................................................................................38
4. PRESENTATION OF FINDINGS..................................................................................................................38
4.1.Introduction......................................................................................................................................................38
4.2. Respondents’ Profile.......................................................................................................................................38
4.3. MIS support decision making process......................................................................................................39
4.4. MIS enhance organizational effectiveness......................................................................................................40
4.5. Challenges of MIS...........................................................................................................................................41
4.6. Role of MIS in providing effectiveness..........................................................................................................42
4.7.Implementation of MIS....................................................................................................................................43
4.8 Extents the organization automates the system to current global changes......................................................44
4.9. Delay of information.......................................................................................................................................44
4.10 Employee training and use of MIS................................................................................................................45
4.10.1MIS Integration............................................................................................................................................46
4.11. Decision Support System........................................................................................................................46
4.12. level of decision making..........................................................................................................................46
4.13.Problem of MIS..............................................................................................................................................47
CHAPTER SIX......................................................................................................................................................50
5. CONCLUSION AND RECOMMONDATION............................................................................................50
5.1. CONCLUSIONS.............................................................................................................................................50
5.2. RECOMMENDATIONS.................................................................................................................................50
REFERENCES.......................................................................................................................................................52
Appendixes.............................................................................................................................................................56

vii
 Abstract

The role of Management Information Systems is described and analyzed in light of its
capability for decision making. Decision making process and its impact on top level
management in a business organization is explained with an emphasis on automated decision
making. Management Information System (MIS) is basically concerned with processing data
into information which is then communicated to the various Departments in an organization
for appropriate decision-making. MIS provides information which is needed to manage
organizations efficiently and effectively. It involves three primary resources: people,
technology, and information. Management information systems are distinct from other
information systems because they are used to analyze operational activities in the
organization. Academically, the term is commonly refer to the group of information
management methods tied to the automation or support of human decision making, e.g.
decision, expert systems, and executive information systems. Organizations still need different
types of MIS serving various organizational levels, functions, and business processes. These
needs create both opportunities and challenges. In this paper an attempt has been made to
study the role of MIS and opportunity and challenges in business.

Key words:-Information System, MIS, IT

viii
 Chapter One
Introduction
1.1. Background of the Study
Business managers today, are much more concerned about the effect of competition than they
were even a few years ago. They must react to the competitive threats not only from local
source but also from regional, national and international source; likewise they must seek to
explore all opportunities that are available in the immediate, national and Global environment.
Deregulation has also increased competitive pressure for organizations to survive, grow and
prosper. In such a competitive environment, managers must employ a lot of the resources at
their disposal as efficiently as possible so as to accomplish the objectives and goals of the
enterprise. Management Information System provides information in form of reports and
displays to managers and many business professionals. For example sales managers may use
their networked computer and web browser to get instantaneous display about the sales results
of their daily sales analysis report to evaluate sales made by each sales personnel.
Management Information System also takes into account integrative nature of information
flow as well as the structuring of the organization around decision centers. Standards of
performance are part of any good plans; hence, determination of standards like other aspects of
the planning process depends on the availability of relevant management information system.
Management information system aids the functioning and monitoring of an organization. It
also describes the components and resources to ensure the proper functioning of an
organization.
Small and medium-sized enterprises (SMEs) have long been viewed as an important source of job
creation and output growth (e.g. Birch, 1981; OECD, 2002; Hijzen et al, 2010; Criscuolo et al,
2014). However, as concerns about the UK’s persistently weak productivity growth deepen,
attention has increasingly turned to small firms’ over-representation within the long tail of low-
productivity firms (Aradanaz-Badia et al, 2017).
At the same time, a growing body of evidence has emerged to show that firms which engage in
more extensive use of data collection and analysis, target setting and performance-focused human
resource practices (such as training and incentive pay) are more productive – and have higher
levels of productivity growth – than firms with fewer of these formal management practices

1
 (see Bloom et al, 2014, for one review). The evidence is particularly strong for manufacturing
industries, where the majority of these recent studies have been located, but it is growing for
service industries too (ibid., pp.23-24).
In recent times, the focus of business managers lays solidly on the effect of competition than it
was even a few years ago. Managers must reacts to the competitive threats not from the local
source but also from regional, national and international sources due to the changes as a result
of technological advancement. Business nowadays must seek to explore all the opportunities
that are available in the broad and task environments, this realization became evident
especially after the shift from traditional industry to an economy based on information
computerization as part of the knowledge based global economy. For enterprises to cope with
the changes, it must have adequate and timely information. Information is considered without
any doubt to be the main and foundational in managerial decision making in all organizations,
due to current challenges in this century. The concept of management information system has
received an observable and increased attention in different fields of...
In order to achieve the smooth functioning of management tasks, it is necessary to remove
the personal conflicts with the help of MIS a combined data is prepared and it is supplied to all
the departments as per their requirement. So, one department has not to depend upon other
department for its vital and critical information. They can access the same information in their
own department. It will remove interpersonal conflicts between different departments.
The management information systems (MIS) and its significant contribution towards small and
medium enterprises (SMEs) improvement is analyzed via sustainability. Corporate
sustainability along with its business significance is highlighted from new entrepreneur
perspective. SMEs and their susceptibility in this modern era with sustainability, call it
sustainable SMEs (SSMEs) is addressed. SMEs and their opportunity to work with large-scale
organization with the help of computer based systems are highlighted.
1.2. Statement of the Problem
In spite of the fact that management information system supplies decision makers with facts,
likewise, it supports and enhances the overall decision making process. MIS also enhance job
performance throughout an institution. At the most senior level it provides the data and
information to help the board and management to make strategic decisions(top management
decisions or long lasting decisions) and at other levels of management MIS provides the

2
means

3
 through which the enterprise activities are executed, monitored, controlled and information are
distributed to management, supervisors, employees and customers.
Effective MIS should ensure the appropriate presentation, formats and time frames required by
operations and senior management are met. MIS can be maintained, evaluated and developed
by either manual or automated systems or a Combination of both. It should always be
sufficient to meet an enterprise's unique business goals and objectives. Likewise it seeks to
explore all available opportunities that can be explored by the organisation in the immediate,
national and global economies. The effective delivery of an enterprise’s products and services
are supported by the MIS which has a great influence on the market share portion, revenue
generation, sales volume achieved, recruitment of best qualified candidates, the goodwill of
the enterprise and the customers’ perception about the organization and its output. These
systems should be comprehensive, accessible, flexible and useable at all appropriate levels of
the organization’s activities.
According to Barry (1988) information is a generic term, because it has been described as the
livewire of any enterprise (public, private, local firm, Multinational company, manufacturing,
merchandise, and franchise business, retailing stores, multiple chain stores or service oriented
organization). It provides the relevant concept and intelligence to enable the right thing to be
doneat the right time.
The problems to be studied are as follows:

 Is there any need for management information system in Nigeria business Organization.
 Does the status of a business determine the type of information system in it?
 Does MIS aid decision making in an organization?
 Could there be any room for development or improvement of MIS in Nigera?
1.3. Research Questions

1) How MIS policies or practices, processes, are undertaking?

2) What are the impacts of Management Information System on the Performance
enterprise?
3) Is there any whether MIS application and enhancement system exist to adequately
supports enterprise goals?
4) What are the determinants factors that influencing MIS process in the enterprise?

4
 1.4. Objectives of the Study
The aims of this study are to critically examine the impact of Management Information System
on corporate performance. The objective of the study includes:
1) To identify the MIS policies or practices, processes, in the enterprise
2) To identify the impacts of Management Information System on the Performance
enterprise?
3) To determine whether MIS application and enhancement system exist to adequately
supports enterprise goals.
4) To identify the determinants factors that influencing MIS process in the enterprise
1.5. Significance of the Study
Several empirical types of research have been carried out within Ethiopia on the impact of MIS
micro and small enterprises Performance .However the majority of the study focused on either
employment or working capital, or both to determine the growth level of MSEs. This study will
be significant in evaluating the growth of MSEs under manufacturing sector in combinations of
five growth indicator (employment, capital, sales volumes, profitability and productivity of
enterprises). This study will be significant in considering the size of enterprises during
analyzing surveyed data. This study is significant by giving detail information about and factors
affecting the growth of manufacturing sector of micro and small enterprises.
1.6. Scope of the study
The study is de limit scope in terms of time, boundary, area and content to be discuses and type
of data that helps to generalize the findings to a specified subject. Based on the notions, it delimit
on the Boricha Woreda. The extent of a given study and reviews will take from different points
of view which could be identified with the topic and perspectives of topographical
1.7. Organization of the paper
This research will organized into the following three important chapters. The first chapter
includes the introduction, the objectives, research questions and scope of the study. Chapter
two looks at existing literature on the growth of MSEs and endeavors to draw theoretical as
well as empirical evidence for the current study. Chapter three explores research design and
the method of selection of study population and sampling design, techniques of data collection
and procedures for data analyses, the fourth chapter presents the research finding,
interpretation, analysis and discussion. The last chapter deals with the summary of major
findings, conclusion and recommendations.
5
 Chapter two
Literature review
2.1. LITERATURE REVIEW
The system of Management Information System shows that communication is needed to carry
out the managerial functions and for linking the organizations with its external environment.
Management Information System provides communication link that makes the activities and
responsibilities surrounding management or managers possible, Burns, J.M.(1998).The focus
in Management Information System coupled with improved processing as led to the
reduction in bottlenecks attached to management process. Managers have re-organized for
years so that traditional accounting information aimed at the calculation of profit have been of
limited value for control. Yet in many companies, this has been virtually the only regular
collected and analyzed type of data. Managers need all kinds of non accounting information
about the external environment such as social, economic, political, and technical development.
In addition, managers need non accounting information on internal operations. The information
should be quantitative.
Weihrich and Koontz [2001] defined Management Information system as a functional system
of gathering, comparing, analyzing, and dispersing internal and external information to the
enterprisein a timely, effective, and efficient manner.
Management information system can be defined as a support to management to provide the
competitive advantage which must support the goals of the organization, Kenneth and Jane
Laudon (2003) Dos Santos (1991), Define Management information system as a planned
system of collecting, processing, storing, disseminating data in the form of information needed
to carry out the functions of management. It can also be documented reports of the
activities, plannedand executed.
Management information system use formalized procedures to provide management at all
levels in all functions with appropriate information based on the data from both internal and
external sources to enable them to make timely and effective decision for planning, directing
and controlling the activities for which they are responsible.
An effective management information system typically employs computer and other
sophisticated technology to process information that reflects the day to day operations of the

6
 company. Based on the above, management information system is an integrated manual
computer system that provides information to support the operations of managements and the
decisions making functions of a company. Management information system is also a collection
of people, procedures and devices organized to convert data from internal and external sources
into information and communicate such information in an appropriate form to management at
all levels.
In most organizations, the management information system involves at least three systems
which are likely to be the following:
1. Personal system: It traces flow of employees in the firm that is, those entering and leaving
thefirm, their pay, and even seniority location.
2. Commercial system: This traces the flow of material, sub-material e.t.c. into and out of
thefirms.
3. Financial system: This traces flow of money or fund into, through or out of the firm.
In some organizations, the Management Information System is manual with units submitting
reports to upper-level manager on a regular basis. In large organization many of the MIS is
computerized
A Management Information System [MIS] is a set of computer hardware and software,
gathered, organized, summarized, and reported information for use by managers, customers
and other users. The broad definition of MIS which includes use of information system to
provide value to external customers is consistent with essence of management that is, decision
making.
Management Information System is a system approach to management that aims to
continuously increase value of customers by designing and continuously improving
organization process and system. Thus the design and operation of MIS as key system that can
provide value to customers should be integrated to Total Quality Management [TQM] in the
organization.
Management Information System consists more than just the latest computer hardware and
software specification. Recently information technology as become combined with the
knowledge of telecommunication, videotext, video conference, cellular conference and PABX
[Private Automated Branch Exchange] are just a few examples of the application of the new
technology. Still picture phone have already been introduced different parts of the world.

7
 Historically, managerial uses of management information system were focused in making
internal operations faster, more accurate and more efficient. Today, the more exciting users
of management information system are those that provide additional values for external
customers. Those managers who find ways to bring additional values to their external
customers with thefirm management information system will gain additional market shares.

2.2. Management Information System

Management information systems (MIS) are not new; only computerization is. Prior to
computers, MIS techniques existed to provide managers with the information they needed to
plan and control business operations. A management information system is an abbreviation for
three words: management, information, and system. Management information system (MIS) is
one of the major computer-based information systems that aims to meet the general
information needs of all managers in the firm or in some organizational subunit of the firm. In
Shah (2014), Santos (1991) defined MIS as a planned system of collecting, processing,
storing, and disseminating data in the form of information required to carry out management
functions. It can also be a documented report of the activities that were planned and carried
out. MIS can be defined as a tool that assists management in providing a competitive
advantage that must support the organization's goals (Laudon & Laudon 2015). A management
information system is an integrated manual computer system that provides information to
support a company's management operations and decision-making functions. MIS is an
organizational method for providing historical, current, and projected information about
internal operations and external intelligence (Asemi, Safari &Zavareh 2011). It is also an
integrated set of components or entities that work together to accomplish a specific function,
objective, or goal (Okoye, Egbunike&Onyali 2013). As a result, it is a computer-based system
that provides information for decision-making on planning, organizing, and controlling the
operation of the firm's subsystem and, in the process, provides a synergistic organization.

A Management Information System (MIS) is a collection of computer hardware and software

that collects, organizes, summarizes, and reports data for use by managers, customers, and
other users. The broad definition of management information systems, which includes the use
of information systems to provide value to external customers, is consistent with the essence

8
of

9
management, which is decision making (Sonawane, 2016). MIS is a management system that
aims to continuously increase the value of customers by designing and improving
organizational processes and systems. Thus, the design and operation of MIS as a key system
that can provide value to customers should be integrated into the organization's Total Quality
Management (TQM) (Alzoubi, Alnazer&Alzoubi 2016).

In most organizations, the management information system involves at least three systems
which are likely to be the following:
(i) Personal system: It traces flow of employees in the firm that is, those entering and leaving the firm,
their pay, and even seniority location; (ii) Commercial system: This traces the flow of material, sub-
material e.t.c. into and out of the firms, (iii) Financial system: This traces flow of money or fund into,
through or out of the firm.

The broad definition of management information systems, which includes the use of
information systems to provide value to external customers, is consistent with the essence of
management, which is decision making (Sonawane, 2016). MIS is a management system that
aims to continuously increase the value of customers by designing and improving
organizational processes and systems. Thus, the design and operation of MIS as a key system
that can provide value to customers should be integrated into the organization's Total Quality
Management (TQM) (Alzoubi, Alnazer&Alzoubi 2016). Today's most exciting management
information system users are those who provide additional value to external customers.
Managers who use the firm management information system to provide additional value to
their external customers will gain market share.

The primary goals of a MIS are to assist executives in making decisions that advance the
organization's strategy and to implement the organizational structure and dynamics of the
enterprise for the purpose of better managing the organization for a competitive advantage
(Yusuf, Sanni&Kazeem 2014). The following are the objectives of MIS.
i. Data Capturing: MIS collects data or operational information from various internal and external
sources of the organization to aid in decision making. Data collection can be done manually or
through computer terminals (Obasan&Soyebo 2012).
ii. Data Processing: One of the primary goals of MIS is to make it easier to collect and process data
10
 for use within the company. MIS can not only automatically collect data from internal sources
such as sales transactions and inventory orders, but they can also work with external sources such
as industry databases and market research (Al habri&Sonawane 2015). The captured data is
processed to create the necessary information for strategic, tactical, and operational planning,
organizing, coordinating, directing, and controlling functions. Processing of data is done by such
activities as calculating, sorting, classifying, and summarizing.
iii. Information Storage: MIS stores processed or unprocessed data for future use. If information is
not required immediately, it is saved as an organization record for later use.
iv. Information Retrieval: MIS retrieves information from its stores as and when it is required by
various users.
v. Information Dissemination: Information, which is a finished product of MIS, is disseminated to
the organization's users. It is done on a regular basis or online via a computer terminal.

System Approach: The information system adheres to a System approach. The system
approach implies a holistic approach to the study of the system and its performance in light of
the goal for which it was created (Kumar 2020).

Management Oriented: When designing the MIS, the top-down approach must be used.
According to the top-down approach, system development begins with determining
management needs and overall business objectives. The overall business plan should be used to
develop the MIS development plan. The management-oriented feature of MIS also implies that
management actively directs system development efforts (Sonawane 2016).

Need-Based: MIS design and development should be based on the information needs of
managers at various levels, such as strategic planning, management control, and operational
control. In other words, MIS should address the specific needs of managers at various levels of
an organization's hierarchy (Kumar 2020).

Exception-Based: MIS should be built on the exception-based reporting principle, which

means that an abnormal situation, i.e. the maximum; minimum; or expected values vary
beyond tolerance limits, should be avoided. In such cases, there should be adequate exception
reporting to the decision-maker (Kumar 2020).

11
Future-oriented: In addition to exception-based reporting, MIS should consider the future. In
other words, MIS should not merely provide past or historical information; rather, it should
provide information based on projections that can be used to initiate actions.

Integrated: Management information systems (MIS) are rationally integrated. Integration is a

required feature of a management information system. Integration is important because it
allows for the generation of more meaningful data. While integration improves information
processing efficiency by reducing intermediate processing and the occurrence of multiple
departments independently generating the same data, an even more important benefit is that it
provides more timely, complete, and relevant information (Kumar 2020). To create an
effective production scheduling system, for example, it is necessary to balance factors such as
setup costs, workforce, overtime rates, production capacity, inventory level, capital
requirements, and customer services.

Long-Term Planning: MIS is created over a long period of time. A system like this does not
emerge overnight. There is a significant amount of planning involved. The MIS designer must
consider the company's long-term goals and needs (Sonawane 2016).

Sub-System Concept: Because the process of developing MIS is quite complex and one is
prone to losing insight on a regular basis, the system is composed of sub-systems or quasi-
separate component systems that are part of the overall unified system. Each of these systems
shares the management information system's and the organization's goals. Some systems serve
only one activity or level within the organization, whereas others serve multiple levels or
multiple activities. As part of long-term system planning, the overall structure of the various
systems should be carefully established (Kumar 2020).

12
Central Database: A central database is a mortar that holds the functional systems together.
Each system requires access to the master file of data covering inventory, personnel, vendors,
customers, etc. It seems logical to gather data once, validate it properly and place it on a
central storage medium, which can be accessed by any other subsystem.

Figure 1: Characteristics of MIS (Source: Kumar 2020) Customer Relationship Management

(CRM)

A CRM system stores critical customer information such as previous sales, contact
information, and sales opportunities. CRM is frequently used by marketing, customer service,
sales, and business development teams. CRM is one of the MIS classifications that has recently
become one of the most contentious issues in the business world. It is worth noting that
customer relationship management is primarily based on the belief that establishing a long-
term relationship with customers is the foundation for acquiring loyal customers who are far
more profitable than non-loyal customers (Ping & Mohamed 2015) In this regard, the
successful implementation of CRM would be of great benefit to the organizations. By adopting
it, such organizations can secure the benefit of increasing sales through better market
segmentation, modifying products and services, achieving higher quality products, gaining
access to information and employee satisfaction, and, most importantly, warranting ongoing
customer retention and loyalty. Customer Relationship Management (CRM) is a strategy that
enables businesses to analyze customer profiles, identify their needs and potential profit areas,
and implement the necessary actions to achieve customer satisfaction, competitive advantage,
and thus profitability (Stone, Woodcock, Ekinci, Aravopoulou& Parnell 2019).

13
2.3. Financial Management Information System

The FMIS is an information system subsystem that can be integrated with other information
systems. FMIS is the computerization of public expenditure management processes such as
budget formulation, budget execution, and accounting using a fully integrated system for
financial management of line ministries and other spending agencies (Omokonga 2014). This
MIS is designed for finance and accounting departments such as accounts payable (AP) and
accounts receivable (AR) (AR). It provides financial information to managers to aid in the
financial function's decision-making process. It also provides information on how to invest in
funds. The FMIS provides managers with accurate reports and decision-making procedures, as
well as simplifies administration work for employee benefits and improves schedules and
forecasting capacity (Sonawane&Alhabri 2016).

The ability to integrate all financial resources to speed up the financial process via FMIS
enables managers to handle all financial management activities effectively. FMIS is made up
of several elements, each with its own function. These components can be represented as
modules or sub-subsystems. General ledger, budgeting accounting, accounts payable, and
accounts receivable are the four. Credit applications, billing, payment, journal, ledger entries,
and other types of transactional data are all examples of transactional data. Financial
intelligence data is gathered from banks, the stock market, the government, and other sources,
as well as payments made to suppliers and other financial institutions. Receipts from
customers and employees can be a valuable source of information for the financial
management system (Kumar 2020).

2.4.Management information system and Organizational Performance

MIS is very important in the organization; it has an impact on the functions, performance, and
productivity of the organization. The impact of MIS on functions is in its management; with a
good MIS, marketing, finance, production, and personnel management become more efficient.
Tracking and monitoring functional targets becomes simple. The functional managers are kept
up to date on the activity's and targets' progress, accomplishments, and shortfalls. The manager
is kept alert by providing specific information indicating and possibly indicating trends in
14
various aspects of business. This helps in forecasting and long-term perspective planning. The
manager’s attention is bought to a situation which is expected in nature, inducing him to take
an action or a decision in the matter (Smyth 2019).

MIS is very important in the organization; it has an impact on the functions, performance, and
productivity of the organization. The impact of MIS on functions is in its management; with a
good MIS, marketing, finance, production, and personnel management become more efficient.
Tracking and monitoring functional targets becomes simple. The functional managers are
kept up to date on the activity's and targets' progress, accomplishments, and shortfalls. The
manager is kept alert by providing specific information indicating and possibly indicating
trends in various aspects of business. It improves the administration of the business by
bringing a discipline in its operations as everybody is required to follow and use systems and
procedures (AL-Gharaibeh&Malkawi 2013). This procedure instils a high level of
professionalism in business operations. The MIS goals and objectives are by-products of
business goals and objectives. It indirectly helps to pull the entire organization in the same
direction toward the corporate goals and objectives by providing relevant information to the
organization (Okoye, Egbunike&Onyali 2013).

A well-designed system that focuses on the manager improves managerial efficiency. An

abundance of information motivates a wise manager to employ a variety of management tools.
It enables him to engage in activities such as experimentation and modeling. He is able to use
tools and techniques that would be impossible to use manually thanks to the use of computers.
This task is made easier by the ready-made packages. The impact is on managerial performance
because it improves decision-making ability (Hashim, Yousaf, Jehangir, Khan &Hadi 2012).
The MIS work on the basic system, such as transaction processing and database, results in the
drudgery of clerical work being transferred to the computerized system, relieving the human
mind for better work. Recording, searching, processing, and communicating take up seventy
percent (70%) of the time. This MIS has an immediate impact on the overhead. It fosters an
information-based working culture within the organization (Yusuf, Sanni&Kazeem 2014).

15
Resource Based Theory
Resource Based Theory arose from Edith Penrose's (1959) theory of firm growth, was
introduced by Birger Wernerfelt (1984), and was popularized by Jay Barney (1991).
According to the resource-based view, firms have resources, a subset of which allows them to
gain a competitive advantage and a further subset of which leads to superior long-term
performance (Barney 1991; Wade &Hulland 2014). The foundation of a company's survival
and profitability is its resources. Human or material resources could be used. When assessing a
company's resources, a distinction must be made between resources and capabilities.
Resources are inputs into the manufacturing process and are regarded as the fundamental unit
of analysis (Gupta, Tan, Ee&Phang 2018). The resources of a firm include items such as
information systems, capital equipment, patents, brand names, the skill associated with
individual employees, finance and so on. Independently, fewer resources are productive
(Ravichandran, Lertwongsatien&Lertwongsatien 2014).

Any productive activity necessitates the coordination and cooperation of resource teams,
whereas a capability is defined as the ability or capacity of a resource team to perform a
specific activity or task. As a result, resources are the sources of a given firm's capability
(Grant, 2001). According to Gupta, Tan, Ee, and Phang (2018), information systems are an
internal firm resource because the acquisition, integration, and usage of its interconnected
components are owned and controlled by firms, whether through access (e.g. lease,
subscription), progressive ownership (e.g. hire purchase), or total ownership. Empirical studies
of firm performance using the RBV have discovered differences not only between firms in the
same industry but also between firms in different industries (Hansen &Wernerfelt 1989). but
also within the narrower confines of groups within industries (Cool & Schendel 1988). This
suggests that the effects of individual, firm-specific resources on performance can be
significant (Mahoney & Pandian 1992).

In this context, resource-based theory is used to include the cognitive ability of individual
business managers in order to ensure effective decision-making and, ultimately, leading
organizational performance. This implies that MTN Nigeria has individual-specific resources
that facilitate and ensure the recognition of new opportunities, effective resource gathering, as
16
 well as the mentality of handling all activities in an efficient manner, seeking and requiring

information that can help in decision making, problem solving, strategic planning, and
management control. In order for those issues to be effective, information must be accurate,
timely, and relative (Laudon & Laudon 2015). MIS is an integrated set of resources that work
together to accomplish a specific function, objective, or goal. It is a computer based system
that provides information for decisions making on planning, organizing and controlling the
operation of the sub-system of the firm and provides a synergistic organization in the process
(Shah 2014).

2.4. Objectives of Management Information System

Professor Robert J. Of Carew school of business, Arizona state university (2000). explain the
objectives of management information systems as the provision of information to all levels
management at the most appropriate time at an acceptable level of accuracy and at an
economical cost, such information is used in the decision making process for modifying the
state of system by taking appropriate action. An essential requirement of MIS is feedback
which is the process of communicating a system measured output to control system which
generates effective control system, normally a manager in respect of business system. It is
these factors which allow the state of a system to be modified.
The followings are the objectives of the MIS

 To provide an overview of the information requirements of organizations.

 To analyze the role of management and its dependency on information.

 To discuss the role of information in the decision making process.

 To indentify the need for information in the day-to-day operations of the an organization
2.5. Elements of Management Information System
The elements of Management Information System are the inputs/outputs control, storage and
process.
Input: This includes the keyboard, the data users, punch cards, computer operation and
programmes.
Processing: Processing refers to the task performed before the input is generated into output.
Output: This is the result generated after processing the input [data].

17
 Storage: Storage refers to the main and auxiliary memory. The storing of data is the basis of
the information system.
Control: This refers to the various measures taken to ensure timeliness, accuracy, and cost
effectiveness
2.4.1 Classification of a Good Information
According to Bardhan I.and Whitaker (2006). Information has many characteristics and can be
classified in many ways. The following gives some examples of such classifications.
1. By sources: This relates to where the origination of such information emanates. It may be
internal, external, primary, and secondary or government reports and so on.
2. By nature: Here, information classification is viewed in the way in which its form is being seen.
It can be quantitative, qualitative, formal, or informal.
3. By time: This type of classification focuses attention on the question e.g. when was the
information produced? Or the period it is needed. It can be historical, present, or future.
4. By use: This classification refers to the use the information can be put especially in management
process, which can be planning, or control of decision making.
5. By form: This classification explains the explicit pattern under which information is being gotten
and made to flow [transfer from one location or one person to another] such information could be
written, oral, visual, sensory e.t.c.
2.4.2. Characteristics of a Good Information System
According to Kenneth hamlet (2002) Effective management information system posses
numerous qualities among which are the following:
1. Relevance: This type of information characteristics is of the truth. The overriding quality
information must be relevant to the problem being considered; though information may take
different forms. Examples are: reports, messages, tabulation e.t.c. The positive effect it has on
the problem or needs at hand will mainly be the functions of its relevance otherwise. The
absence of this quality relevant will make understanding of the message more difficult and may
eventually cause frustration to the user.
2. Accuracy: Information should be sufficiently accurate for it to be relied upon by those in the
management team and for the purpose for which it is intended. Even though absolute accuracy
may not be obtainable, yet the level of accuracy must be related to the decision level involved.
Also, accuracy should not be confused with precision. Information may be inaccurate but precise
or vice-versa.
18
 3. Time: Good information is that which is communicated in time to be used. The time of regular
produced information is essentially important in this regards. In fact, information should be
produced at a frequency which is related to the type of decision or actually involved.
4. Details: Information should contain the least amount of details consistent with effective decision
making. The level of details usually varies with the level in the organization.
2.6. Problem of Implementing a Computer Based Management Information System

Dickson [1970] identified some major factors that determine whether the implementation of a
new MIS will be resisted and to what event they are:
1. Disrupting of established departmental boundaries: The establishment of a new MIS often
results in change in several organizations units.
2. Participation: In designing and implementing MIS features users should be made members
of the MIS team operating mangers, in particular they should have a particular say in the item
to be included. The disposition of the entire information and possible job modification, if the
entire design and implementation process is taken over by technology.
3. Communication: The aim and characteristics of the system should be
communicated to all members of the MIS team as well as the users.
4. Redefinition of performance measurement: A new MIS may modify a manager’s job to the
point where old methods of performance evaluation no longer apply or is no longer
applicable. For this reason MIS calls for proper evaluation.
Although information system plays a vital role in modern organizations, they are not with their
limitations. In particular, information systems have some basic limitations. kenneth and jane
laudon(2001).
1. Information systems are expensive and difficult to develop and implement.
2. Information systems are not suitable for all tasks or problems.
3. Information provided to managers may not be as accurate, timely, complete or relevant as it
appears.
4. Managers may have unrealistic expectations of what information systems can do.
5. The information system may be subject to sabotage, computer viruses or down time.

19
 Therefore, a new MIS may liberate middle managers from many boring and routine task and
may also give them the opportunity to use the information provided by the system in more
creative andproductive ways.
2.7. Benefits of Management Information System

Linda banks (2003) propose that Successful implementation of MIS would possibly bring the
following:
1. Possible clerical cost reduction
2. Improved processing demonstrated by more accurate results.
3. Intangible benefits such as customer relationship.
4. Improved work environment and job satisfaction.

2.8. Concepts of Management Information System

MIS has been understood and described in a number of ways. It is also popularly known as the
Information System, the Information and Decision System, the Computer-based Information
System (Tripathi 2011). The MIS has more than one definition, some of which are given
below:
 The MIS is defined as a system which provides information support for decision making in
the organization.
 The MIS is defined as an integrated system of man and machine for providing the information
to support the operations, the management and the decision making function in the
organization.
 The MIS is defined as a system based on the database of the organization evolved for the
purpose of providing information to the people in the organization.
 The MIS is defined as a Computer based Information System.

2.9. Information Requirements for modern business

Information system produces information to satisfy the needs of both the management and
operations subsystems, as well as the need of parties external to the organization. This

20
 information reflects the internal activities of the organization, competitive actions,
environmental and sociological interests and political and financial trends. It must represent
what has happened, what is happening and perhaps most important of all, what will happen.
This information requirement exists with equal importance in private industry, educational
institutions, governmental organizations and other organizations.
With the growth of data and information processing is related directly to the growth of the
organizations which comprise society in general. So, it became important for the organization
to manage or process its information in better ways. MIS helps the organization to access its
critical information (Wadhwa 2006).
2.10. Types Of Information Management Systems

There are many types of information management systems in the market that provide a
widerange of benefits for companies.

Transaction processing systems (TPS) collect and record the day to day dealings of an
organization. This system is mostly used at lower level of management. Management
information systems (MIS) produce fixed, regularly scheduled reports based on data extracted

21
 and summarized from the firm’s underlying transaction processing systems (TPS) helps to
middle and operational level managers to provide answers to structured and semi- structured
decision problems.
 Decision-support systems (DSS) are mainly computer program applications used by
middle management to compile information from a wide range of sources to solve
problems and make decisions. These decisions are taken by top level management
executives.
 Executive support systems (ESS) is a reporting tool that provides quick access to
summarized reports coming from all levels of organization and departments such as
accounting, human resources and operations. This system provides critical information in a
wide range of internal & external source in easiest way to use display to manager and
executives.
 Knowledge management system (KMS) is a knowledge based information system to
support creation, organization and disseminating business knowledge to employees and
manager throughout the company.
 Strategic information system (SIS) applies Information Technology (IT) with firm’s
product, service and business process to help the organization to gain a strategic advantage
over competition.
 Functional business system (FBS) it focuses on operational and managerial application in
support of business function like accounting and marketing etc.
Management Information Systems and decision making
Barney (2011) finds that despite the challenges inherent in systems development, h owever, MIS
also offer businesses a number of advantages. “Today, leading companies and organizations are
using information technology as a competitive tool to develop
new products and services, forge new relationships with suppliers, edge out competitors, and
manage costs. For example, using MIS strategically can help a company to become a market
innovator. By providing a cost effective product or service to meet the economic convenience of
customers, a company can raise the cost of market entry for potential competitors and thus gain a
competitive advantage Kruller
(2013). Another strategic use of MIS involves forging electronic linkages to customers and
suppliers which also reduces the cost burden to both the company and the customer. This can

22
help companies to lock in business and reduce switching costs.
Finally, it is possible to use MIS to change the overall basis of competition in an
industry. For example, in an industry characterized by price wars, a business with a new
means of processing customer data may be able to create unique product features that
change the basis of competition to differentiation (Barney, 2011).
Kellerman (2010) argues that the impetus to develop a new information system can grow out of
end-user demands, the availability of new technology, or management strategy. But the end
result is usually to help in streamlining the costs that a business incurs in the course of its
operations. According to Benson (2010), a variety of tools exist for analyzing a company’s
information needs and designing systems to support them. The basic process of systems
development involves defining the project, creating a model of the current system, deriving a
model for the new system, measuring the costs and benefits of all alternatives, selecting the best
option, designing the new system, completing the specific programming functions, installing and
testing the new system, and completing a post-implementation audit. When this is done, the
management of costs in a commercial entity becomes facilitated (Kellerman, 2010 and Benson,
2010).
Malz (2011) argues that information systems designers, whether internal to the company or part
of an outside firm, a~e generally responsible for assuring the technical quality and cost
effectiveness of the new system. They also oversee the process of system design and
implementation, assess the impact of the new system on the organization, and develop ways to
protect the system from abuse after it is installed. But it is the responsibility of small business
owners and managers to plan what systems to implement and to ensure that the ultimate systems
serve the purposes of minimizing costs of businesses.
Meredith and Mantel (2006) found that utilizing Information technology (IT) has major impact
in solving all difficulties, which may appear during project lifecycle phases, by presenting a
crucial computer application, project management software such as, which may help in
decreasing the time and cost that are required to use precise clarifications for project planning,
scheduling, monitoring, and controlling. Thus, retailers provided extra support for the key phases
of the project lifecycle such as project risk management and created knowledge management to
strength not only individual but the monitoring and controlling the whole organization.
Essentially, the task of Project Management Information System have been described as

23
‘subservient to the attainment of project goals and the implementation of project strategies’, it
supply project managers by “essential information on the cost time performance parameters of a
project and on the interrelationship of these parameters.
The proposed MIS model is mainly constructed based on the review of literatures that is related
and a number of qualitative empirical materials, which were based on the model of DeLone and
McLean as well as Sabherwal (2006), and Almutairi and Subramanian (2005). This model will
be empirically tested to measure the PMIS factors that influencing the Management information
system through a survey which was conducted and analyzed during the first quarter of year 2011,
effective and efficient project management decision making process is influenced by set of
independent variables: Information quality, analytical quality, system quality, technical quality,
communication quality, decision makers quality and problem characteristics. The independent
variables are believed to be the variables that have association with the dependent variable
(Effective and efficient Project Management Decision Making) in a positive manner.
2.11.Relationship betwene decision Support Systems and decision making
Ash-Edmunds (2015) relates that other methods of cost control do not consider at a macro level
the influence of many important attributes such as waste, project management practices, change
orders, and error/rework on the line items and thus on the total cost. That is, they make efforts
identify and control the symptoms rather than making efforts to identify and control the cause
.To help management in this aspect a prototype Decision Support Systems (DSS) have been
developed. Such computerized Decision Support Systems assist management, before and after
the project has started, in identifying attributes which might cause potential project cost
escalation and in formulating a project cost control strategy. The attributes identified on the cost
control strategy, if controlled, would minimize the expected loss (i.e., project cost escalation). To
evaluate the probable cost escalation in the new project and to formulate a cost control strategy,
the system allows tne constructors to utilize their experience and past
project performance data.
Hamilton (2010) writes that decision support systems (DSS) are commonly understood to be
computerized management information systems designed to help business owners, executives,
and managers resolve complicated business problems and/or questions. Good decision support
systems can help business people perform a wide variety of functions, including cash flow
analysis, concept ranking, multistage fore casting, product performance improvement, and

24
 resource allocation analysis. All these
functions are vital to the management of organizational costs. In fact, as Chen at al., (2013)
explain, they are the core elements of contemporary cost problems in organizations today.
Previously regarded as primarily a tool for big companies, DSS has in recent years come to be
recognized as a potentially valuable tool for managing costs in small business enterprises as well.
In previous research it was shown Bragg (2010) that addition of Geographic information
Systems (GIS) technology to a business decision making environment improves the performance
of the decision-maker. Therefore, we argue that the hotel price management system should at
least provide support to input spatial data, to represent complex spatial relations, to analyze
spatial data, and to output spatial data in the forms of maps.
Zeleny (2009) argued that the knowledge-based DSS include a knowledge management
component which stores and manages a new class of emerging AT tools such as machine
learning and case-based reasoning and learning. These tools can obtain knowledge from prior
data, decisions and examples (cases), and contribute to the creation of DSS to support repetitive,
complex real-time decision making. Machine learning refers to computational methods/tools of a
computer system to learn from experience (past solutions), data and observations, and
consequently alter its behavior, triggered by a modification to the stored knowledge. Artificial
neural networks and genetic algorithms are the most notable approaches to machine learning.
The role of knowledge-based DSS should be to allow experts to broaden and expand
their expertise, not to narrow it down. Zeleny suggests the important future direction of
knowledge-based DSS development in this way.

2.11. Role Of MIS In Improving Decision Making:-

Decision making is an essential part of any business. This is because a majority of operations
in an organization turn around decisions made by the management. In order to make
decisions more effectively, it is very important to have a good management information
system since decisions are based on information available. The effectiveness of every business
information dependent on the timing and content of the business information presented and
management actions. The need for management information system is felt when the
managers have to make proper business decisions, the manger will have to rely on his
judgment but he must have information on the basis which he arrives at business decisions. If

25
 an organization have a significant management information system, it is easy for an
organization to take decision on the basis of available information. Good MIS ensures good
decision making just in the same way bad MIS drive the making of bad decisions.
MIS plays a crucial role in decision making through its systematic tools, timely information
and adequate managerial policies and regulations. The quality of managerial decision-making
depends upon the qualitative information and the managers should therefore develop an
environment that encourages the growth and quality information. Management information
systems give managers fast component to information. It includes interaction with other
decision support systems, information examination, cross referencing of external information
and possible data removal techniques. These systems provide information and strategic
technique with practical decisions. Finally, Management Information systems play the crucial
role of providing a wide range of alternatives from which decision- makers are able to make
their preferred decision. This is important for companies in the modern- day generation where
any minor fall in decision making can lead to very infinite losses.
2.12. IS and organizational performance
An information system (IS) in an organization is like the nervous system in the human body: it
is the link that connects all the organization's components (human resource, marketing,
accounting and finance, operations (i.e. production and service) etc.) together and provides for
better operation and survival in a competitive environment. Indeed, today's organizations run
on information (Dandago, 2012)
Moreover, Managers need rapid access to information to make decisions about strategic,
financial, marketing and operational issues and they are successfully handle information and
applied it when making decisions. They see information as valuable asset, creation of
information ethos is one part of ongoing process, and those companies which have
successfully implemented change and created an information ethos have done so with the
backing and leadership of the senior managers, and the CEO in particular (Owens et., al 1995).
Timely availability of relevant information is vital for effective performance of managerial
functions such as planning, organizing, leading, and control. An information system in an
organization is like the nervous system in the human body: it is the link that connects all the
organization's components together and provides for better operation and survival in a
competitive environment. Indeed, today's organizations’ managers run on information (Ibid).

26
 (Turban, 2001) Information systems affect individuals in various ways. An IS has great
contribution to complete career effectively, to reduce error, reduce time to search documents,
enhance productivity and supply quality information to make decision and to set plan (short
term and long term). (Baker, 1993 ), Each day computers help millions of people do their jobs
more effectively. For example, they can help managers decide on what action is most effective
for the organization, computers assist in planning of future activities, and also assist in follow-
up and control of activities in process. By using facts supplied by computers that are timely,
relevant, and accurate, a manager can do a better job of identifying problems, opportunities,
and solutions.
2.13. The impact of information system on organizational performance

Kehinde and Yusuf (2012) Information System is very important in an organization because
no organization can survive without information. Hence, the importance of Management
Information System cannot be over emphasized in the 21St Century the world over.
According to (Caranana, 2012), Information enables organization to make more accurate
decisions. For this reason, the right amount of information at the right time is a key factor for
every organization. Company managers take decisions, prepare plans and control their
company’s activities using information.
An IS plays a very important role in the organization, it creates an impact on the organization’s
functions, performance and productivity. The impact of IS on the functions is in its
management. With a good support, the management of marketing, finance, production and
personnel become more efficient. The IS creates another impact in the organization which
relates to the understanding of the business itself (Everest, 1976).
Since the IS works on the basic systems such as transaction processing and databases, the
drudgery of the clerical work is transferred to the computerized system, relieving the human
mind for better work and It creates an information- based work culture in the organization
(mu.ac.in/mis).

2.13.1. Impact of IS on managers

Turban (2010) the use of computers and information technology/information system has
brought many changes to organizations. These changes are being felt in different areas
including the manager’s job, structure, authority, power, and job content; employee career
27
 ladders and supervision. The most important task of managers is making decisions. Sekhar
(2012) IS can change the manner in which many decisions are made, and consequently change
managers’ jobs. Many managers have reported that the computer has finally given them time
to “get out of the office and into the field.” Akewukereke et al (2010) Every organization’s
management makes decision, prepare, plans, and controls activities by using information
which is obtained from two major sources namely: formal and informal sources such as face-
to-face conversations e.g. telephone calls, social contacts and so on.

2.13.2. Impact of IS on employees

Caranana (2012) every person in the company needs or generates information, and therefore
no person in an organization can be totally detached from its information system. (Baker,
1993) Each day computers help millions of people do their jobs more effectively. For example,
they can help managers decide on what action is most effective for the organization, computers
assist in planning of future activities, and also assist in follow-up and control of activities in
process. By using facts supplied by computers that are timely, relevant, and accurate, a
manager can do a better job of identifying problems, opportunities, and solutions.
According to Senn (1990), People in all jobs benefits in many ways from information system
even they are not computer specialists. Each day IS helps a million of peoples do their jobs
more effectively with greater efficiency, higher quality product or services, better information
retrieval, eliminate paper works, instant share ofinformation etc.
In spite of its positive impact information system has its own negative impact. The major
limitation or negative impact of IS includes displace employees (eliminate jobs), violate
privacy, information anxiety i.e. frustration, stress, injuries etc. (Ibid).

2.14. The utility of the MIS

The researchers include following indicator variables to capture the overall influence or utility
or usefulness of the management information system namely (a) scope (b) value additions and
(c) business support. These are viewed as the exogenous variables (incoming or independent
variables) as far as the research is concerned.
a) Scope
The scope of this research is to satisfy all the information needs of the impact of a
management information system on business performance. This will depend on the type of
28
information provided. An MIS is good at providing regular formal information gleaned from
normal commercial data (Karim, 2011; Economics Discussion, 2020).
b) Value addition
The impact of management information system has a good value addition on businesses. The
addition of information system introduces to SMEs businesses have impacted greatly and
raising the value of the business to some standards. Information management creates business
value indirectly but creates business costs directly, making the evaluation and measurement of
information management and the benefits thereof difficult for organizations (Karim, 2011;
Turban, Efraim andVolonino, 2010).
c) Business Support
To what extent the management information system attempts to build competitiveness to
support the business in terms of streamlining the core business operation (Karim, 2011;
Turban, Efraim and Volonino, 2010). As the researchers
have already stated that the context here is specifically on manufacturing and manufacturing-
related.
The business performance
Small and medium-sized enterprises are the backbone of Ghana’s economic and social
development for the past decades. They’re the most important actuation for business
development, employment creation, production of products and services in Ghana.

In this research, the utility of the management information system is related to business
performance, the endogenous (dependent variable). The overall business performance is
measured based on (a) Increase in Total Revenue (b) Gained Market share and (c) Profit
margin.

a) Increase in Total Revenue.

Producing total revenue is critically important for manufacturing organisation to determine
their cash flow. Relatively, Increase in total revenue leads to many desirable business
performance. Thus, the researchers attempt to establish the direct influence of the management
information system on producing the total revenue (Laudon and Laudon, 2013; Pathak,
Krishnaswamy and Sharma, 2019).

29
 a) Market Share
Market producing total revenue is critically important for a manufacturing organisation to
determine their cash flow. Relatively, Increase in total revenue leads to much desirable
business performance. Thus, the researchers attempt to establish the direct influence of the
management information system on producing the total revenue (Laudon and Laudon, 2013;
Pathak, Krishnaswamy and Sharma, 2019).

b) Profit Margin
Market share is another vital key performance indicator which determines the business
performance in most of the regions. This also enables the business sustainability or in other
words, enables the organisations to consistently produce greater output and retain business
performance. However, as researchers, we attempt to explore how the applicability of
management information system, in turn, enables to develop market share by leveraging
operational and business capabilities (Pathak, Krishnaswamy and Sharma, 2019).
2.15. Record Keeping Performance (RKP)
Performance of a company indicates the capability to mitigate the necessary
standards, increase market split, develop amenities, making sure proper returns on
investments and decrease of waste and inefficiency and once those requirements are
fulfilled, an organization is supposed to be operating successfully (Brignall, Fitzgerald,
Johnston, & Silvestro, 1991). Performance in general refers to an ongoing process
involving the managerial and non-managerial conditions for an organization, group or
scheme can be held responsible. Characteristically, such conditions can be presented as
constituent elements of an interior system and indicate organization’s ability to control
operational expenses, motivating the employees, drive well-timed executions and react to
aimed group reactions (Nyathi et al., 2018).
Brignall et al. (1991) further stated that organizations must develop production if they
supposed to successfully race in this era of rapid monetary and technological change.
Enhanced output requires both financial resources and a skilled work group that has the
adaptability to obtain new skills resultant from rapid developments in the economic
systems. Bititci, Suwignjo, and Carrie (2001) further declare that successful performance is

30
 the ultimate outcome of employees’ contribution as they offer the toughest connection to
tactical goals of the firm, customer pleasure and economic contribution that impact the
organizations. Therefore, addressing the manner in which an action is conducted
specially and the height of standards to that a job is done inside the boundary of the
working surroundings can be called performance. Therefore, keeping proper records is a
fundamental pre-condition for the victorious performance of a firm.
A complete and efficient record keeping performance (RKP) helps it promising for
enterprises to expand precise and suitable financial reports that depict the development
and existing state of the organization. Taking the help of proper financial reports derived
from a good record keeping system, performance of one period (month, quarter or year)
with another one can be compared. A precise record of the enterprise’s financial
performance is a tool to check performance in a particular area and definite time period.
Accounting records offer a preliminary position for absolute and precise income tax
calculation, a foundation for resonance preparation for the future and a root for
conversation with associates, possible investors and loan providers (Nyathi et al., 2018).
All such aspects are crucial to enhance performance of a business. Managers further
depend on correct accounting records to make correct financial and strategic decisions.
Therefore, proper record keeping performance (RKP) will assist competent, appropriate
and timely decision making that can improve the overall performance (OP) of small
enterprises.

Opportunities of implementation of Management Information System

Modern businesses simply cannot compete without the power of management information
systems. The dynamic nature of our current business environment dictates that all areas
of business including accounting, finance, management and human resources force the power
of information systems to perform effectively. Therefore, the ability to successfully design and
implement management information systems has become a cornerstone in most of the
organization. So, MIS play a highly strategic role in all businesses through the integration of
people, process and information technology. This fact creates unique opportunities for
management information systems. A business can attain following advantages with the
implementation of MIS.

31
Economy of scales
Generally economy of scale refers to the facts that the collective costs of several combined
operations may be less than the sum of the cost the individual operations. With the help of
MIS all operation of the business can be combined and information can be supplied at the very
fast rate from one department to another.
Getting more information from same amount of data
The primary goal of a MIS is to turn data into information. Even though all the data that
manager needed for decision making, was in unstructured forms. MIS organized the data in
such a manner that it becomes information for the managers and they can easily use this
information for decision making in vital business projects.
Sharing of data
With the use of MIS data can be shared among authorized users, allowing users access to more
of the data. Several users might have access to the same piece of data. Further new data can
easily be added to the old one and combined results can be found easily.
Balancing conflicting requirements
In order to achieve the smooth functioning of management tasks, it is necessary to remove the
personal conflicts with the help of MIS a combined data is prepared and it is supplied to all the
departments as per their requirement. So, one department has not to depend upon other
department for its vital and critical information. They can access the same information in their
own department. It will remove interpersonal conflicts between different departments.
Enforcement of Standards:-
MIS helps the organization to enforce standards for its data. It ensures that standard for such
things as data names, usages and formats fare followed uniformly throughout the organization.
Control Redundancy
Since data was kept separate in file oriented system is now integrated into a single database,
there is no longer need of multiple copies of the same data. So repetitious of the data and
control redundancy will be reduced, because there is no need to check data againand again.
Integrity
One of the better opportunities for the organization for the implementation of the management
information system is that it integrates the data of various places and department as whole and
also kept separate records. It becomes easy for the mangers to access whole data of the
organization.
32
 Consistency
MIS leads to the consistency and accuracy of the data. Data with the confusion and same
alphabets can’t be recorded wrongly because MIS detects these type of errors, while feeding
the data into the system.
Security of information
Security is the prevention of access to the data by unauthorized users with the use of MIS in
the business. Since, MIS has control over the operational data; it can define authorization
procedures to ensure that only legitimate users access the data.
Flexibility and Responsiveness
Since the data that was previously kept in several different files by several different user areas
is now in the same database, it is possible to respond to request for data from multiple areas in
much easier and more flexible way.

2.16. Challenges Of Using Management Information Systems

Organizations still need different types of information systems serving various organizational levels,
functions, and business processes, and they increasingly need systems providing enterprise-wide
combination. These needs create both opportunities and challenges. There are various types of
problems faced by company after applicable information system i.e.,
Development of new computerized based information system is a problem for the organization due to
the cost factor and it creates problems, because with the change of time there is need of up-to-date of
the information system. Employees should also be up- to- date about all changes on companies
websites.
Employees should have the capacity of learning of the information system with the changing
competitive and business environment; otherwise it will be difficult for the organization to stay in the
market.
Sometimes problem arises due to server crash and website crash. Some time it leads to the loss of
information and further Employee resistance to adopt the information system is also a problem. When
a new technology is introduced, employees resist it because they do not want to go with new system,
they want to proceed in old pattern which they are doing from many years and they are master in it.

33
 Cost of the implementation of the information system in the organization and its integrity with
the various department. Life of software system is also a challenge for the organization that
which system would suit to the requirement of the organization because every system has its
limited scope and with the passage of time, new inventions in technology are occurring. They
have to implement the new changed technology which would lead to the cost of Information
system.
2.17. MSE Performance
Performance or performance aims to determine how a company achieves goals or objective
standards (Okayyo et al, 2016). In business research, the definition depends on the discipline or
field of study. Wu (2009) relates performance to the value of customers and other stakeholders
of a company. Performance means achieving stakeholder interests in a way that is superior to
competitors (Okayyo, et al. 2016). Therefore, having superior performance requires an
organization to achieve its goals effectively and efficiently (Gathungu et al, 2014). Efficiency
and effectiveness have become popular measures and a series of measures in manufacturing,
finance, and marketing have been used in the past. In manufacturing, Kombo, K'Obonyo, and
Ogutu (2015), Atalay, Anafarta, and Sarvan (2013), Wu (2009), have advocated measuring
five key dimensions consisting of reliability, quality, product price or cost, and flexibility to
determine performance. The aim is to use a multi-dimensional approach that takes into account
the combination of various factors that affect performance, thereby combining the interests of
shareholders and stakeholders (Okayyo, et al. 2016).
Operationalization of performance remains a problem in academic research until this research
was written. Information is usually considered a contextual issue. The measurement therefore
becomes more of a factor than what is being determined and even where and when it is
measured. In business in general and in more specific fields such as entrepreneurship, there is a
general consensus that the main concern of a company is performance (Gathungu, et al. 2014).
Despite this consensus, there is no agreed-upon performance measure. According to Odhiambo
(2015), previous research has been carried out to justify the selection of indicators to measure
performance and tends to follow tradition. Performance measurement has finally changed in
the last few decades, from purely financial indicators to also non-financial performance (Okeyo, et
al. 2016).

34
2.20 conceptual framework

IS Top
Facilities Management
Commitment
Organizational
Performance
Skilled IS Effectiveness
Manpower

Information
Ethos Quality Users
system Perception

Source : (Hurber’s , 1990)

Figure 2.1. Framework of the study: (This conceptual framework is built on Hurber’s
(1990))
From the above model we can observe that different organizational characteristics/factors i.e.
Top management commitment and support, IS facilities, organization information ethos, skilled
manpower, quality system and information and others can make information system effective on
the organization to have effectiveness and efficiency. Hurber 1990 was treat IS as moderator
variable but here it is independent variable and organizational factors as influential variable and
organizational performance as dependent.

35
 CHAPTER 3
RESEARCH METHODOLOGY
3.1. Study Area
Description of the Study Area
This study was carried out in Boricha Woreda which is found in Sidama Region within Ethiopia, look at fig.
3.1. Boricha Woreda geographically is bordered on the south, by Loka Abaya Woreda, on the west by the
Wolayita Zone, on the northwest by the Oromia region, on the northeast by Hawassa Zuria Woreda, on the east
by Shebedino Woreda, and on the southeast by Dale Woreda. It has an estimated area of 588.05sq km,
comprising 39 Kebeles of which 3 Kebeles are urban Kebeles and the others are rural. It extends from the
lowest point at south west of the mouth of tributary of Bilate river 1320m.a.s.l to north east 2080m.a.s.l
(Bechaye, 2011). Boricha woreda has a total population of 250,260, of whom 125,524 are men and 124,736
women. Only 10,402 or 4.16% of its population are urban dwellers. The main land use of the Woreda is
dominated by rain fed agriculture which is owned by smallholder producers. The major crops by coverage are
maize, haricot bean, coffee, horticultural crops and teff (CSA, 2007). The study area has undertaken high extent
of maize production. However, use of agro chemical, irrigation and manure for soil fertility practices and maize
production is very low. In this area, cultivation of maize crop occupies much share in the crop production.

36
 Figure 3.1: Administrative map of the Boricha Woreda
Source: Bechaye (2011)

3.2. Research Design

Research design is the vital plan that indicates an overview of activities that are necessary to
implement research project. In order to address the research problem, the study will use both
descriptive and explanatory research design with mixed approach of Qualitative and Quantitative
in study.. This design is select because the researcher to predict the relationship, direction and
effect of independent variable on dependent variable. This is to conduct an intense investigation
of problem solving solution that to be used for present research problem.
This study will conducted by using cross sectional type of study by collecting data from
respondents at a time. This will select by the researcher to describe the current and empirical
situations and relationship between independent variable and dependent variable under the study.
To obtain data at one point in time from a sample select relevant for the investigation of
determinants to growth of MSEs, used by descriptive analysis methods. This study wills prepare
with structure questionnaires, which administered through distributing to sample of MSEs in
Boricha Town. The questionnaire will prepare and distribute to ensure fair and equitable
distribution and response from the respondents which is expected to give a true or fair
representation of the views of the respondents to allow for generalization in the final analysis..
The choice of the research design depends on the objectives of the study, the available data
sources, and the cost of obtaining the data and the availability of time by using research tools
like interviews, and Observations, survey that helps to get an understanding of underlying
reasons, opinions, and motivations. It provides insights into the problem or helps to develop
ideas for potential quantitative research.

A quantitative method is applies to quantifiable data that involve numerical and statistical
explanations. It is use to quantify the problem by way of generating numerical data or data
that can be transform in to usable statistics. As well as it is use to quantify defined variables–
and generalize results from a sample of population. Additionally, Correlation/Regression

37
 Analysis research method could be involved because it helps researcher to determine the
strength of the relationship between variables.
3.3. Sources of data
In this study both primary and secondary sources of data will used as sources of data. The
primary data will collect from MSEs owners/managers/ operators through a structured
questionnaire that will contain both open end and close end. And also face-to-face interviews
with selected local MSEs officials and experts will undertake questionnaire that designed by
understandable language in area suchlike( English, Sidama or Amharic) the researcher should
have choose two or more among this Three language because this will help researcher to create
proper report and gain better response. Additionally he/she will use office reports, government
documents, books, journals, published and unpublished research papers for analysis of
secondary data .
3.4.Sampling Design
3.4.1. Target Population
The target population for this study will take from managers of manufacturing Micro and Small
enterprises such like: Garment, Wood work, Metalwork, and Food processing that found in the
Yirba town.
3.4.2. Sampling size
Yirba Town administration has 2 kebeles, i.e 01 and 02. Researcher study target both 01&02
kebele because all MSEs of manufacturing sectors are evenly distributed in these two
Keeble’s so the researcher should have to select this Two Kebeles(Kebeles01and02)
according to there are 14 enterprises that operating in these areas. As Yirba Town, Mses office
report All sectors are operated in 01 and 02 Kebeles (100%). However this study will focus on
an employee of all sectors which are working in Four operational subsectors such as, Wood
work , Metalwork and Food processing and garment.
3.5.Method of data collection
Both primary and secondary data collection will used through simple random sampling selection
method because this is help to give equal chance for respondents and The method of data
collection will through structured Questionnaire for managers and interviews of experts.
3.6.Method of data analysis
Based on the nature of research variables and experience of researcher data will analyze in

38
 both qualitative and quantitative which are collect from respondents.
The data collected from primary and secondary sources obtained from the respondents, edited,
coded, classified, tabulated and analyzed by using some of the list like tables, frequencies and
percentages. Descriptive and explanatory statistics, frequencies and percentile used as
analytical methods and the practicable statistical package for social science (SPSS) version 20
was also used.
3.7.Ethics/ legal consideration
In case of researchers designing and conducting studies using human data he/ she should have
consider the values and principle of Ethics like using Author name.. Any researcher should have
to introduces himself and explain for what purpose he /she come to their organization ,important
of his/her study , giving awareness for participants , telling how his/her research haven’t any
problem on their organization and explain what problem he / she will solve for society before
starting his work. This issue is important for researcher to get more information that is free from
bias.

39
 CHAPTER FOUR
PRESENTATION OF FINDINGS
4.1. Introduction

The chapter presents the findings that have been obtained in the field. These study findings
have been extracted from the study objectives namely: To identify the MIS policies or
practices, processes, in the enterprise, to identify the impacts of Management Information
System on the Performance enterprise, To determine whether MIS application and
enhancement system exist to adequately supports enterprise goals, and To identify the
determinants factors that influencing MIS process in the enterprise
4.2. Respondents’ Profile

Seventy six (76) questionnaires were distributed to employees but 8 questionnaires were
unreturned by some employees, therefore 68 questionnaires were collected properly.

Table.1. Personal Information of the Respondents

Item Description No. of Percentage

respondents
Male 36 53%
Sex Female 32 47%
Total 68 100%
Grade 12 3 4.4%
Certificate 8 11.76%
Education Diploma 15 20%
Degree 42 61.76%
Above degree 0 0%
Total 68 100%
< 30 18 25%
31-40 38 56%
Age 41-50 9 14%

40
 51 above 3 5%
Total 68 100%

0-3 year 6 9%
3-6 year 14 20.58%
Experience 6-9 year 20 29.42%
Above 28 41%
Total 68 100%
Source: Survey Result 2023
According to the Table.1 item 1, male and female respondents were 36 (53%) and 32 (47%)
respectively. This implies that the numbers of males are greater than females. From the Table.1
item 2, the education of respondents were 3 (4.4%) were < 12, 8 (11.76%) were certificate
15 (20%) were diploma, 42 (61.76%) were degree, this shows that most of the employees are
above diploma. from the above table of Table.1 item 4, shows that 18 (25%) of the employees
were less than the age of 30,38 (56%) were between the age of 31 40, 9 (14%) were between
the age of 30, 38 (56%) and 3 (5%) were above the age of 51. This indicates that most of the
employees are greater than the age of 30. As the Table.1 of item 4, shows that the experience
of the employees were 6 (9%), 14 (20.58%) 20 (29.42%) and 28 (41%) for 0-3 year, 3-6 year,
6- 9 years and above respectively. This implies that the majority of the employees were above
9 years’ experience. This might help them to understand the role of management information
system in the organization.

4.3. MIS support decision making process

According to the data presented in the Table.2, 38 (55.88) were employees they say strongly
agree in which MIS support decision making process 19 (27.94%) were say agree, 4 (5.88%)
were neutral, 5 (7.35%) were disagree and 2 (2.94) were strongly is agree. This indicates that
MIS support decision making process.

41
 Table.2. MIS support decision making

Item No. of respondents Percentage (%)

Do MIS supportdecision making
process?
Strongly agree 38 55.88%
Agree 19 27.94%
Neutral 4 5.88%
Disagree 5 7.35%
Strongly disagree 2 2.94%
Total 68 100%
Source: Survey Result 2023

4.4. MIS enhance organizational effectiveness

From the Table.3, 40 (58.82%) were strongly agree, 19 (27.94%) were agree, 2 (2.94%)
were neutral, 3 (4.4%) were disagree and 4 (5.8%) were strongly disagree in that MIS enhance
organizational effectiveness. This implies that most of employees are strongly agree with that
of MIS can enhance organizational effectiveness.

Table.3. MIS enhance organizational effectiveness

Item No. of Percentage

respondents (%)
Do MIS enhance
organizational
effectiveness?
Strongly agree 40 55.82%
Agree 19 27.94%
Neutral 2 2.94%

42
 Disagree 3 4.4%
Strongly disagree 4 5.8%
Total 68 100%
Source: Survey Result 2023
4.5. Challenges of MIS
Table.4. Challenges regarding the application of MIS

Item No. of Percentage

respondents (%)
Is there any challenges
regarding the application
of MIS?
Yes 50 73.6%
No 18 26.4%
Total 62 100%
Source: Survey Result 2023
As clearly depicted in the Table.4, 50 (73.6%) of the respondents replied those answers on the
questionnaire to the researcher there are prevailing challenges regarding the application of
MIS, were as 18 (26.4%) of the respondents replied that there is no challenges regarding the
application of MIS. Thisimplies that there are challenges regarding the application of MIS.
Regarding this, those respondents, 5 (7.4%) replied that the organization challenge is shortage
of computer, 30 (44.1%) replied that leak of computer professional, 3 (4.4%) replied that the
challenge of the organization is leak of data storage device and 30 (44.1%) replied that shortage
of finance. This shows that the organization problems answer from lack of computer professional
and shortage of finance to run the business.
Table.5. Identification of challenges

Item No. of Percentage(%)

responders

43
 If your answer is “yes” forquestion no 3,
What are the challenges?
Shortage of computer 5 7.4%
Lack of computer professional 30 44.1%
Lack of data storage device 3 4.4%
Shortage of finance 30 44.1%
Total 68 100%
Source: Survey Result 2023

4.6. Role of MIS in providing effectiveness

Table.6. Level of satisfaction with the role of MIS

Item No. of Percentage

respondents (%)
To what extent are you
satisfied with the role of MIS
providing
effectiveness?
very low 8 12%
Low 12 17.6%
Moderate 32 47%
High 6 8.8%
very high 10 14.6%
Total 68 100%
Source: Survey Result 2023
From the Table.6, 8(12%) replied that the role of MIS in the organization have very low 12
(17.6%) responded that low satisfaction with the role of MIS 32 (47%) replied that moderate, 6
(8.8%) replied that high and the remaining has 10 (14.6%) replied that very high.
The Table.6 shows that the role of MIS has a moderate role in terms of service and of
employment growth in the organization. This implies that Boricha woreda administration

44
 revenue office employees who are operate the day to day activities in theses organization have
moderate satisfaction with the role of MIS to the organization.
4.7. Implementation of MIS

Table.7. Performance changes after implementation of MIS

Item No. of Percentage

respondents (%)
Did you agree that appositive change
in your performance after the
implementation of MIS in the
organization?
Yes 48 70.6%
No 20 29.4%
Total 68 100%
Source: Survey Result 2023
From the Table.7, 48 (70.6%) of respondents supports those idea and the remaining 20
(29.4%) replied that MIS have no any contribution to the change in performance. From the
data the respondents answer shows that the implementation of MIS has appositive impact and
plays a vital role for increasing performance of employees in terms of quality and satisfaction
of customers.
Table.8. what are these changes that have seen

Item No. of Percentage

respondents (%)
What are the changes that have seen
in your performance after the
implementation of MIS in the
organization?

45
 Improve efficiency 18 26.47%
Decrease workload 30 44.12%
Increase productivity 20 29.41%
Total 68 100%
Source: Survey Result 2023
According to the Table.8, 18 (26.47%) of the respondents were replied that improve
efficiency, 30 (44.12%) replied decrease workload. And 20 (29.41%) replied increase
productivity. This indicates that decrease work load is changes that have seen in employee’s
performance after the implementation of MIS in the organization.

4.8 Extents the organization nautomates the system to current global

changes Table.9. Automation of current system and its problems

Item No. of Percentage(%)

respondents
To What extent the organization
automates the system to current global
changes?
Low 20 29.42%
Moderate 40 58.82%
High 8 11.76%
Total 68 100%
Source: Survey Result 2023

Delay of information
Table.10. Delay of information

Item No. of Percentage(%)

respondents

46
 How the organization did reply
whenthe delays of information
happen?
Low 40 58.82%
Moderate 28 41.18%
High 0 0%
Total 68 100%
Source: Survey Result 2023
As shows on Table.9, 20 (29.42%) responded that the organization automation the system to
current global changes are low, 40 (58.82%) replied that the organization automates the system
is moderate and the remaining 8 (11.76%) responds that the organization automates the system
are high. since this idea is supported by 58.82% of respondents evolved in the researcher
questionnaire. This indicates that the organization auto mates to current global changes
moderately. So the organization should beautomating the system.
From the Table.10, 40 (58.82%) of respondents replied very low 28 (41.18%) answered that
the organization moderate when the delay of information occurred, this shows that
organization reply very lately when delay of information occurs.
Employee training and use of MIS
Table.11. Training of employees and use of MIS

Item No. of Percentage

respondents (%)
Did get any training
abouthow to use MIS in
the organization?
Yes 14 20.60%
No 54 79.40%
Total 68 100%

Source: Survey Result 2023

As depicted the Table.11, 14 (26.60%) of total respondents replied that the organization given
47
48
 training about how to use the systems, the remaining 54 (79.40%) replied that they have not
get training. This shows that the organization does not give training about how to use the
system. As a result the effectiveness of employees is not increased that much as expected.
MIS Integration
Management information system was overall at the mean of 2.84, interpreted as fairly good. These is
based on the issues of MISs are well integrated with other information systems in your organization had
2.83 mean. The information given by MISs is quite reliable in empowering management had 3.30,
Reports offered by your MISs are concise to facilitate proper understanding had 3.13 and the use of MISs
is effective relative to other options available had 3.01 mean interpreted as fairly good while concerning
MISS give timely reports on the progress of business aspects of your organization had 1.95 interpreted as
poor.
Decision Support System
The decision support system was entirely fairly good at 3.032 interpreted as fairly good
based on the DSSs are well integrated with other information Systems used in your
organization had 3.07, Your DSSs tap into reliable databases both internal and external
had 354, Your DSSs are majorly task-oriented had 3.19, Your DSSs only serve as
ancillary to most of the management decision processes had 2.86 and finally DSSs are
used to enhance management decision making had 2.50 interpreted as Poor.
Level of decision making
The dependent variable in this study was decision making in enterprises are Limited for which
respondents were required to ascertain the extent to which they agree or disagree with the items or
statements by indicating the number which best describes their perceptions. This variable was measured
using questions with response rate ranging between 5=strongly agree, 4-=agree, 3=Not sure 2=Disagree
and i=strongly disagree. The responses were analyzed and described using means as summarized below in
table:
Mean Interpretation
We have effective decision making 2.56 Fairly good

Our organization conduct through analysis 2.76 Fairly good

for decision making

We have competent forecasting for 2.75 Fairly good

decision and planning

Our decision making is influenced by 2.85 Fairly good

49
 politics and politicians
We have ~ws governing our decision 3.15 Fairly good

making
Planning is done before decisions are made 3.56 Fairly good

Decisions made enable expenditure of little 3.74

Fairly good
revenues
Average Mean 2.75 Fairly good

Source: field source 2023

The study results on the level of decision making in MSE Limited the study reveal that
overall decision making in MSE Limited was fairly good. The results are based on the
individual responses whose arguments provide a response on the same. Concerning the
responses on We have effective decision making had the mean of 2.97, fairly good while
the organization conduct through analysis for decision making had 3.08, We have
competent forecasting for decision and planning had 3.14 Our decision making is
influenced by politics and politicians had 2.66 interpreted as fairly good. Concerning
having laws governing our decision making had the mean of 2.97 interpreted as fairly
good. Planning is done before decisions are made had mean of 2.45 as poor. Decisions
made enable expenditure of little revenues had 2.69 and final all employees contribute to
the decision making had 3.31 interpreted as fairly good
4.13.Problem of MIS
Table.12. Problems of MIS

Item No. of Percentage(%)

respondents
What are the problems currently
faced with in the organization
regarding MIS?
Delaying data processing 37 54.40%

50
 Data redundancy 8 11.76%
Data inconsistency 12 17.64%
Information overload 11 16.2%
Total 68 100%
Source: Survey Result 2023
4.14 Effect of MIS on Decision Making
Table.13. Decision making

Item No. of Percentage

respondents (%)
Are MIS helps to make
effective decision making?
Yes 64 94.2%
No 4 5.8%
Total 68 100%
Source: Survey Result 2023
As depicted from the Table.12. there are problems which affects the organization to run the
system effectively as per employees of the organization required depends up to these
problems 37 (54.40%) of respondents replied that the organization major problem is comes
from delay in data processing 8 (11.76%) responds that the organization problem is a result of
data redundancy, 12 (17.64%) replied that the organization problem is arising because of data
inconsistency and the remaining 11 (16.2%) argued that problems that affect the current
system are resulted from information overload This shows that the problem currently affects is
delay in data processing.
According to the respondents, that replied Table.13 show that 64 (94.2%) of respondents
suggests that MIS plays a vital role for effective decision making and the remaining 4 (5.8%) of
respondents replied that MIS have no any advantage for effective decision making, the above
table shows that management information system plays or helps to make effective decision
making.

51
Table.14. Networking of computers

Item No. of Percentage(%)

respondents
Does the organization networking the
application ofcomputer?
Yes 16 23.53%
No 52 76.47%
Total 68 100%
Source: Survey Result 2023
According to the data presented in the Table.14, 16 (23-53%) respondents replied that the
organization are networking computers and the remaining 52 (76.47%) of respondents replied
that the organization are not networking the application of computers. These data shows that
the organization does not networked computers.

52
 CHAPTER FIVE
CONCLUSION AND RECOMMONDATION

5.1 CONCLUSIONS

Networking of computer is not enough to delivery of information to the right users. MIS plays
a vital role for good decision making through providing relevant, accurate and consistent
information to the managers. Concerning the main challenges regarding application of MIS are
lack of computer professional and lack of finance to run the business. The application of MIS
has its own paramount effect for the increasing operating performance of employees.
Concerning the extent employees satisfied with the role of MIS is moderately in day to
activities of the organization.
The overall problems of MIS are data redundancy, delaying data processing, data
inconsistencies and other problems mostly which affect to run the system effectively is
delaying in processing data due to bulky information processed and the existing system cannot
accommodate. Since, MIS as a current emerging system of managerial tool for employees. So
the employee requires an intensive training about how to use and operate the system. But, the
organization is not giving much emphasis requiring to employee training about how to use the
system.
5.2. RECOMMENDATIONS

Networking of computer is essential not only in the organization but also in the country levels
so it is better to the organization to apply in each woreda. Since skilled manpower is essential
to the given organization, giving of training about how to use MIS is better to solve lack of
computer professionals. The existing problems delay in processing data redundancy, data
inconsistency would be better solved as soon as possible by design specific procedures and
using advanced technology.
The organization is essential by expanding and develops MIS department for developing new
system not only request basis for assessing and acquiring new technology, for assessing

53
corporate information need and the like. The organization has successful and it is better than
the current decision making process by designed well organized and developed MIS to make
appropriate decision making. The organization should give training for employees about how
to use management information system.

54
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 Appendixes

RIFT VALLEY UNIVERSITY, HAWASSA CAMPUS

GRADUATE PROGRAM
MASTERS O F B U S I N E S S ADMINISTRATION
Dear Respondents

This questionnaire is aimed in preparing a thesis for masters of business

administration at Rift Valley University on the title of Effects of Management
Information System on Small and Medium, Enterprise Performance, In The
Case Of Boricha Woreda” ” The information that you share with me will be
kept confidential and only used for academic purposes and cannot affect you in
any case. So, your genuine, honest, and timely response is vital for the
accomplishment of this study on time. Therefore, I kindly ask you to give your
response to each item/question carefully.

Instruction

or multiple-choice questions indicate (√) sign in the appropriate block.

scale type statements mark (√) sign only once for the given variables
depending onyour level of agreement.
Part-I: Demographic Characteristics of Respondents

1. Gender: A. Female B. Men

2. Age: A. 18-25 B. 26-30 C. 31-40 D. 41-60 E. > 60

3. Educational qualification: A. No formal education B. Primary C. High

School
D. Diploma E. Degree F. MA/MSc G. PhD

4. The main activity of the enterprise? A. Manufacturing B. Construction C. Trade

D. Agriculture E. service F. mining and quarrying G. others, specify
59
5. Current Status of the enterprise? A. existing B. closed
Part-II: Please indicate your opinion regarding the following statements
(1.Strongly Disagree(SD), 2.Disagree (D), 3.Neutral (N), 4. Agree (A), 5.
Strongly Agree (SA)).

No Please indicate your opinion as per the level of disagreement

Disagree
Strongly

Strongly
Neutral
Agree
or agreement with an outline statement using 1 to 5 scale
guideline. Your assessment shall be based on the firm’s
5 4 3 2 1
characteristics on SMEs.
Transaction processing system
1 Transaction processing system involve both real time and batch
transaction in putting TPSs

2 There is good integration between real time and

batch

3 Information processed on TPSs se~es as input to other

information systems
4 All errors are detected, reported and
corrected in the automatic manner.

5 The TPSs allow multiple users to work on the

systems Concurrently

Management Information system

5 MISs are well integrated with other information systems in

your enterprise
6 MISs give timely reports on the progress of
business aspects of your enterprises
7 The information given by MISs is quite reliable in
empowering management
8 Reports offered by your MISs are Concise to facilitate proper
understanding
9 The use of MISs is effective relative to other options
available
Decision support system
10 DSSs are well integrated with other information
systems used in enterprise
11 Your DSSs tap into reliable databases both internal and
external
60
12 Your DSSs are majorly task-oriented
13 Your DSSs only serve as ancillary to most of the
management decision processes
14 DSSs are used to enhance management decision making

Decision Making
16 We have making effective decision
17 Our organization conduct through analysis for decision making

18 We have competence forecasting for decision and planning

19 Our decision making is influenced by politics

and politicians
20 We have laws governing our decision making

21 Planning is done before decisions are made

22 All employee contribute to decision making

61