MANAGEMENT AND PUBLIC SERVICE COLLEGE

DEPARTMENT OF HUMAN RESOURCE AND LEADERSHIP

PROGRAM: WEEK-END

“The Assessment of Management Information System & its impact for: The
Betterment of Managerial Decision Making
(In Case of Dashen Bank S.C In Jigjiga Branch)”
NO. NAME ID.NO.
1. MUSTAKIM MUBAREK HAJI WE/HRML/853/11
2. ABDIFATAH ABDULAHI ABDI WE/HRML/819/11
3. KIIN AHMED OMER WE/HRML/842/11
4. SHUGRI AHMED MUHUMED WE/HRML/865/11
5. NACIMA HASSAN SAID WE/HRML/855/11
6. ABDIRAHMAN ABDULAHI OSMAN WE/HRML/888/11
7. ABDIQADIR HASSAN SAMATER WE/HRML/821/11
8. AYAN FAYSAL MAHAMED WE/HRML/827/11
9. MUUMINA AHMED ABDI WE/HRML/887/11
10. NASRA MOHAMED YARAW WE/HRML/891/11
11. HODAN HASSEN YUSUF WE/HRML/837/11

Advisor’s Name: Mr. Yusuf A.

Signature: ________________

Jigjiga, Ethiopia
April 2021
Declaration
The Project is our own and has not been presented for a degree in any other college and all the
sources of material used for the project/thesis have been duly acknowledged. (name and
signature up to the number of the project group members).
Name Signature
1. Mustakim Mubarek Haji ………………
2. Abdifatah Abdulahi Abdi ………………
3. Kiin Ahmed Omer ………………
4. Shugri Ahmed Muhumed ………………
5. Nacima Hassan Said ………………
6. Abdirahman Abdulahi Osman ………………
7. Abdiqadir Hassan Samater ………………
8. Ayan Faysal Mahamed ………………
9. Muumina Ahmed Abdi ………………
10. Nasra Mohamed Yaraw ………………
11. Hodan Hassen Yusuf ………………
MANAGEMENT AND PUBLIC SERVICE COLLEGE
DEPARTMENT OF: HUMAN RESOURCE MANAGEMENT AND LEADERSHIP
PROGRAM: DEGREE
PROJECT TITLE: THE ASSESSMENT OF MANAGEMENT INFORMATION SYSTEM &
ITS IMPACT FOR: THE BETTERMENT OF MANAGERIAL DECISION MAKING (IN
CASE OF DASHEN BANK S.C IN JIGJIGA BRANCH)”
I certify that this project satisfies all the requirements as a project for the degree of Bachelor of
HRML.
NAME OF PROGRAM COORDINATOR: - ----------------------------- Signature: -------------
This is to certify that I have read this project and that in my opinion, it is fully adequate, in scope
and quality, as a thesis for the degree of Bachelor of Computer Science.
NAME OF ADVISOR: - MR. YUSUF ABDI Signature: ---------------------
Examining Committee Members Signature and Date
Name Signature Date
1. Chairman: ______________________ ____________ ___________
2. Examining 1: ____________________ ____________ ___________
3. Examining 2: ____________________ ____________ ___________
It is approved that this project has been written in compliance with the formatting rules laid
down by the school of the college.

I
ABSTRACT
The study was conducted on Dashen bank S.C in Jigjiga town. The main objective of this study
is to assess the role of management information systems for the betterment of manager’s
decision-making of the banking service.

Both primary and secondary data are used to accomplish the study. The researcher uses the
primary data collection method by using questionnaires to managers and employees of Dashen
Bank S.C in Jigjiga town and also uses secondary data collection method was used to collect
information about Dashen Bank S.C, such as books and journals; sample method was used as
sampling technique since the population is high and to collect accurate and reliable information.

i
ACKNOWLEDGMENT

First of all, We would like to express our sincere thanks to our advisor Mr. Yusuf Abdi who is
very much concernedly advised to complete our research from the beginning to the end and we
extremely appreciate his constructive correction to give genuine professional technical comments
and suggestions.

Secondly, We also wish to express my gratitude to Dashen Bank S.C in Jigjiga town manager
and employees who contribute to this paper by providing accurate information.

Finally, we would like extended special thanks to our parents for their unwavering confidence,
encouragement, and emotional support which was instrumental to the successful completion of
our bachelor's degree coursework, and to our classmates for their great help and for keeping us
some suggestions based on the research and others.
Acronyms and Abbreviations

MIS: Management Information System

IT: Information Technology

IS: Information System

Table of Contents
I
ACKNOWLEDGMEN…………………………………………………………………………………….II
Table of Contents...........................................................................................................................III
CHAPTER ONE..............................................................................................................................1
1 INTRODUCTION....................................................................................................................1
1.1 Background of the Study...................................................................................................1
1.2 Background of the organization........................................................................................2
1.3 Statement of the Problem..................................................................................................3
1.4 Basic Research Questions.................................................................................................3
1.5 Objectives of the Study.....................................................................................................4
1.5.1 General Objective......................................................................................................4
1.5.2 Specific objectives.....................................................................................................5
1.6 Significance of the Study..................................................................................................5
1.7 Scope of the Study............................................................................................................6
1.8 Limitation of the Study.....................................................................................................6
1.9 Organization of the paper..................................................................................................6
CHAPTER TWO.............................................................................................................................7
2 LITERATURE REVIEW.........................................................................................................7
2.1 DEFINITION OF MANAGEMENT INFORMATION SYSTEM (MIS).......................7
2.2 Information Requirement of an Organization...................................................................7
2.3 Information Requirement of Manager.........................................................................8
2.3.1 Strategic Management...............................................................................................9
2.3.2 Tactical Management.................................................................................................9
2.3.3 Operational Management.........................................................................................10
2.4 Decision making and Quality of Information.................................................................10
2.5 The Nature of Decision Making...................................................................................10
2.5.1 Structure Decision...................................................................................................11
2.5.2 Unstructured Decision.............................................................................................11
2.5.3 Semi – structural Decision.......................................................................................11
2.6 Types of Information System..........................................................................................11
 2.6.1 Executive Support System (ESS)............................................................................12
2.6.2 USES OF executive support system (ESS).............................................................13
2.6.3 Decision Support System (DSS ).............................................................................13
2.6.4 Knowledge Work System (KWS)...........................................................................14
2.6.5 Office Automation System (OAS)...........................................................................14
2.6.6 Transaction Processing System...............................................................................15
2.6.7 Expert System..........................................................................................................15
2.7 Role of Management Information System......................................................................15
CHAPTER THREE.......................................................................................................................17
3 RESEARCH METHODOLOGY...........................................................................................17
3.1 Research Design..............................................................................................................17
3.2 Sampling Size and Sampling Method.............................................................................17
3.3 Data Source and Collection Methods..............................................................................17
3.4 Data Analysis Methods...................................................................................................17
CHAPTER FOUR.........................................................................................................................18
4 DATA PRESENTATION ANALYSIS AND INTERPRETATION.....................................18
4.1 INTRODUCTION............................................................................................................18
4.2 Respondents Characteristics...........................................................................................18
Table 4.4, the conduct of information system for the development of project?............................23
Table 4.5, The MIS problem in running or delivering..................................................................24
CHAPTER FIVE...........................................................................................................................26
5 CONCLUSION AND RECOMMENDATION.....................................................................26
5.1 Conclusion......................................................................................................................26
5.2 Recommendation............................................................................................................27
Reference.......................................................................................................................................28
 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

The first step in learning how to apply information technology to solve problems would be to get
a broader picture of what is meant by the term management information system. Davis G.B and
Olson M.H (1985).

Management information systems or components of information systems consist of five related

components. These are hardware; software people, procedures, and connection of data (O’Brien,
1999)

Management information system integrates user-machine system for providing information to

support operations management and decision making functions organization the system utilizes
computer hardware and software manual procedure models for analyzing, planning, control and
decision making and database (O’Brien, 1999)

In 1970 managers realized that they could use computer-based information systems for planning
control and decision making and problem-solving rather than fast for reporting transaction this
new type of information system or management information system. The goal of a management
information system is to enable a manager to make a better decision by providing quality
information (Anderson, 2013) to create an effective information system you need to do more
than simply purchase the various components. Quality is an important issue in business today,
particularly as related to information systems (Anderson 2013) many successful financial
institutions have to demonstrate that information systems and technology can be the powerful
competitive weapon that can be used to capture market structure or share, improve customer
service reduce operating cost and create new product and potential of information system
(Anderson 2003)

The resolution in information and communication technology has become central for
development in banking and financial services. Most banking serviced analysis includes

1
technology change on the shortlist of important factors underling the dynamics in banking
services structure and performance (Lucas 1990)

In recent years, technology is becoming increasingly important to the evaluation of bank retail
delivery systems and the development of new electronic retail products (O’Brien 1990)

Modern banks must respond to challenges such as process automation, increased client
expectation at the same time bank must also manage risk harmonize their business operation with
the growing national and international regulations. Financial instruction is one of the largest
investors in information systems and according to a survey by Ernst and young (value journey
Ernst and young: 9780471352334).

The service information technology spending will have expected to reach unprecedented closed
to & 20 billion in information systems and technology to improve efficiency and enhance
customer services (Davis and Olson 1985).

Dashen Bank is a privately owned company established on Sep. 12, 1987, E.C by 50 million birr
capital in Jigjiga marking the introduction of private banking. In Ethiopia on Sep 12, 1987, E.C
and started normal business activities of the first head office in Jigjiga nowadays about 430
branches within a country.

Dashen bank in the Jigjiga area was established in 2006 E.C in Jigjiga town. since the bank was
lending different banking services or its customer such services are saving account, fixed
account, and current accounts. In deposit service and local transfer service which is considered as
transferring money. (Dashen Bank website)

1.2 Background of the organization

Dashen Bank is a privately owned company established on Sep. 12, 1987, EC by 50 million birr
capital in Jigjiga marking the introduction of private banking. In Ethiopia in Sep, 12,1987EC and
started normal business activities of the first head office in Jigjiga nowadays about 40 branches
within a country.

Dashen bank in Jigjiga area was established in 2008 EC in Jigjiga town .since the bank was
lending different banking services or its customer such services are saving account, fixed
account, and current accounts. Deposit service and local transfer service which is considered as
transferring money.

1.3 Statement of the Problem

In tomorrow’s business world, there will be varieties of information systems it existed such a
Transaction process system (TPS), decision support system (DSS) and executive supportive
system (ESS), etc.

Each plays a different role in the organization hierarchy and decision-making process
organization would have multiple function systems. These include sales systems, call center
systems, financial systems, and inventory systems (Davis and Olson, 1995).Management
information systems as organization methods of providing past-pre and external intelligence. It
supports the planning control and operation function organization furnishing uniform
information in the proper time frame to assist the decision-maker (Watson, 1967, p-134)

A management information system, therefore, produces information that supports the

management function of an organization (Davis and Olson 1985, luces 1990 information
considered to be an important asset for any company, in the modern competitive world is
banking services and the consumer buying trends and behaviors can be predicted by its analysis
of sales and revenue report. For each operating region of the company but they failed to meet the
increasingly complex demands by clients and the market. The need for automatic business
operations more efficient process management and control of contemporary banking services
(Watson and Mann R. 1987).These necessities of the study on the role of management
information system in betterment managerial decision making in Dashen Bank service.

Information system would milestones in banks to words computerization processing of all

operations to make better decisions effectively and efficiently. But many Dashen Banks in
Ethiopia, particularly Jigjiga used some types of information system because of this it will
imperative the bank's information

1.4 Basic Research Questions

This paper would try to look at the following proposed question to be answered by the study:
 What would be the roles of the management information system?
  How much consideration would have been given for the management information system
by the Dashen Bank S.C in Jigjiga Ethiopia?
 What would be the relationship between management information systems and business
goals?
 What would be the impact of the management information system or betterment for
Managerial Decision Making towards the development of the management information
system?

1.5 Objectives of the Study

1.5.1 General Objective

The general objective of this study is to assess the role of management information systems in
the betterment of managerial decision-making in Dashen Bank S.C in Jigjiga.

1.5.2 Specific objectives

The specific objectives of this study are:

 To identify the role of management information systems for the betterment of decision-
making purposes.
 To assess the alignment between information systems and business goals.
 To ascertain the important challenges posed by the bank supervisor for the rapid
advancement of technology.

1.6 Significance of the Study

The importance of management information systems for banking services is the main factor of
the economy as a whole since the financial sector is one of the largest income-generating factors
for the economy. Improving their profitability and service becomes generation for the country
economy paramount important for the development of the nation tomorrow banks play a vital
role of the country economy by giving much needed competitive advantage for the service
completion.
This research paper would contribute:

Firstly, it creates good know-how in such that using management information system an
organization will establish its hierarchal structure and workflow chart. Secondly, every employee
in the organization will know the employee would have authority over and to whom he is
responsible for work and works then progresses without interruption. Thirdly, the company
operating procedures would be listened to by the management information system and the
preparation of audit also gets simplified.

The finding of the study would have help initial insight for other researchers who would have the
interest to go through a detailed study for the future.

1.7 Scope of the Study

The study was confined and concentrated on the management information system role to make
better decision making in the case of Dashen Bank S.C in Jigjiga.

The issue of this researcher is what would be the impact of management information system for
betterment for Managerial Decision Making towards the development of management
information system and how much consideration would have given for management information
system by the Dashen Bank S.C in Jigjiga branch.

1.8 Limitation of the Study

The basic limitation of the study was the finance, time, and energy to accomplish this paper. And
also the absence of recent data by Dashen bank in the Jigjiga branch. It was the main constraint
since to compare and have detailed investigation on the role of management information system.
In addition to this, the respondent filled the questionnaire by fearing or they fear for other
purpose using of the data by the researcher.

1.9 Organization of the paper

This paper contains five chapters, The first chapter deals with the introduction part consisting
background of the study, background of the organization, statement of the problem, research
question, objective of the study, the significance of the study, the scope of the study, and
limitation of the study.
The second chapter consists of literature of reviews that are related to the study. In this chapter, a
various theoretical concept that relates with management information system is discussed.

The third chapter describes the research methodologies including the overall strategies and
methodologies, whereas the analysis of collected data, interpretation of the analyzed data are
presented in the fourth chapter and finally the fifth chapter has presented a summary of major
findings, conclusion, and puts the possible recommendation.
 CHAPTER TWO

2 LITERATURE REVIEW

2.1 DEFINITION OF MANAGEMENT INFORMATION SYSTEM (MIS)

There are many different management information systems. Some choose to emphasize the word
management and hence make a distinction between management and transaction ateliers another
looks on to the word system and point to a wider framework beyond computer-based activates.
The following definition is very wide and covers the entire portico of the computer-based system
and its complementary manual procedures. (MIS,6th edition)

A management information system is an integrated computer-based user-machine system that

provides information for supporting operation and decision making. (Mesfin, 2008, p-12 and
O’Brien James, 1990)

Features of a management information system

The management information system can be distinguished from the author information system
within the organization by reference to the specific feature of that system.
 Provision of support for structure decision-makers at all management levels.
 Provision of online access to the transactional processing system (TPS) of the organization
to given summaries’ into More on the performance of the organization
 Provision of more detailed information on the organization's operation has refueled this
drill down, a facility so often associated with management information systems (Mesfin,
2008; p-13 and Davis G.B).

2.2 Information Requirement of an Organization

Information is data that would be processed into a meaningful format for use by decision-makers
with an organization. Information is a vital route to an important ingredient in day to day
operators and it is also useful and a means of communicating with another organization and
individual, (Lucas, p-64)
Historically the organization information needs categorizing as follows:

 Information for planning

 Information for monitoring performance
 Information for controlling the activity
 Information for decision making
 Information for recording and processing transaction
 Information for communication
 This list leads to treating information as something to help management in the organization's
accounting system. For example, focus into this category however more and more
organization sees information as valuable strategic resources which can help them gain
competitive advantage rather more aid management. (Watson and Mann R.I. 1987)

 Information for the planning process incorporates several strategies all of which require
information i.e. organization mission setting strategy, formulation tactics, setting
implementation, monitoring, and control use of information

 Information for the decision-making manager was needed information to help decides what
course of action most is like to bring a situating under control. The decision-making process
usually needs some information about the trigger of an event or pieces of information that
participate in the need for a decision. The better the information flow the stronger the need
for a decision is indicated and the more times the decision information is called to help in
making the right decision. If the nature of the decision that a manager is like to face can be
predicted then information can be collected in advance. This will speed up the decision
making process and enable the manager to bring the situation under control faster (Anderson,
2003, p-33 and Mesfin, 2008, p-6)

2.3 Information Requirement of Manager

The information requirement of managers will vary depends on their specific role within the
organization management is divided into three different levels. These are strategic, tactical, and
operational as you know the different levels of managing would be involved in specific actively
The strategic level of management is concerned with monitoring and controlling the
organization. As a whole making decision in the area such as opening new shops and factories or
investing in new product lines is done strategic level.

Tactical level management is involved with implementing the decision of the strategic manager
ensuring that the different departments within the organization are operating correctly. (Mesfin,
208, p-7)

Operational: - level management is involved with day to day decision making concerning
however as more transaction processes within the organization

2.3.1 Strategic Management

Strategic management must be involved in markup decisions about the objective rules of the
organization's chances. In these objectives, two resources are used to attain the objective policies
govern action. Use and suppository of this resource may forecast decanters market for these
products and mass. Therefore decide to change its objectives to allow a progressive move into
the leisure industry. Which is considers to be expanding strategic decision involve the formation
of new objectives and deciding on how there new are already established in the industry or by
starting a new business (Davis, and Olson, 1985) Although strategic planning is concerned with
long term goals, it often involves the term action. For example, the Eagles citron of a new
company in the leisure industry is made to fulfill long term objectives but it refuses short term
planning control action all of which is classified under the header of strategic planning
(Anderson, 2003, p-345)

2.3.2 Tactical Management

Decisions taken by tactical managers are numerous. These include pricks decision and other
elements of the market mix such as advertise in promoter and distributor, the decision relating to
purchase and suppliers stock levels and other aspects of workers capital management and fixes
asset replacement decisions.

The decision of this level arousals based on financial analysis money being the common write of
measurement of resources the control system are performance reports relating to profit cost or
revenue centers. (O’Brien, 1990)
 2.3.3 Operational Management

Operational management is involved with day-to-day decision-making concerning the detailed

transaction process within the organization. However, as faster became automated the human
factor in operational control become less important

Many takes are subject to programmed control that is the relationship between input and output
is clear in specified. However, processes are carried out by people who need to be motivated to
perform routine tasks to consistently high standards. (Mesfin, 2008 p-8 and O’Brien, 1993).

2.4 Decision making and Quality of Information

To be useful information must process certain qualities such as being timeliness and relating to
the area of business that the manager receiving the information is usually responsible for. For
information is said to be useful when it fulfillments the following characteristics nature

 Relevance: it reduces uncertainly by helping you predict what will happen or confirm
what already has happened
 Reliability: it is dependable i.e. free error or bias faithfully portrays event and activity
competencies; it doesn’t leave out anything that is important.
 Timeliness: you get it in time to make your decision
 Understandability: it is presented in a manner you can comprehend and use a consensus
nation the nature of information is such that different people would tend to produce the
same results.
 Accessibility: you can get to it when you need it and in the format, you can use. (Mesfin,
2008, p*8)

2.5 The Nature of Decision Making

The decision can be a brake into three main types, those which can be made following a given
set of roles in (structural decision) those which can be made by using some predetermined role
and procedure is (some structural) and those which can only be made subjectivism is
(unstructured decision).
 2.5.1 Structure Decision

These means that

 The decision can be taken objectiveness
 There is a clearly defined method of solving the problem
 Generally, there is a right answer
An example of a structured decision would be deciding on the minimum price at which a product
should be sales the minimum price should equal the managerial cost at the product. (Mesfin,
2008, p-9).

2.5.2 Unstructured Decision

This sort of decision can only be reaching subjectively and an example would be tethering of
new employees. They would be fit in company ethos and existing practice at what price shall a
product be sale high price (low volume or low price/ high volume.

Efforts are often made to turn unstructured decisions into structured ones by setting hard and fast
criteria. This practice is gaining ground in such fields as a requirement and granting credit
facilities. (Davis G.B, Olson, M, H, 1985)

2.5.3 Semi – structural Decision

There lie between structured and unstructured decision some part of the decision making the
process is programmable (Structured) other are not. For example, deciding how much stocked to
maintain for the product will involve an analysis of prior usage (programmable) but this mass
then has to be adjusted unknown demand. (James 1990, p-10)

2.6 Types of Information System

As you have seen each of the management levels within an organization used different types of
information systems. The individual system is focused on the need for management within each
level. And so they have different objectives, contain different information, and tend to present
that information in different ways. The summary of these systems can now be providing as
followers operational managers by tracking the individual sales invoice. Cash receipts and
species good sale to one customer, etc would be found within this system. All the data would be
a collection into the transaction processing system. (Lucas, 1990).

Management level the management level within an organization is designed to assist with the
monitoring and control of other systems. They will tend to provide reports of an exemption basis
to support the decision-making of the organization's senior managers. A decision-making support
system (DSS) is used to provide summary information while a management information system
provides summaries of the transaction data from the TPS. (Davis and Olson, 1985)

Strategic level finals the strategic level help management address more long term issues and
problems such as the overall strategic direction and products or the production of five years plan
the executive support system will provide management with the summarized strategic
information needed to make decisions (O’Brien, 1990, p-351)

2.6.1 Executive Support System (ESS)

An executive support system (ESS) is a type of decision support system that is oriented to the
needs of a senior executive. It incorporates a workstation programmed to minimize procedures
for obtaining management information

It may have access to external databases such as news and stock exchange rates to give up-to-
date information that may have an impact on the organization.

The need for the executive on the organization

Because executive support systems deal with strategic decisions that are difficult to plan for in
advance. It is unusual to find any routine report bring the product on paper. The need for
executive information systems will come from how executives use and demand. (Mesfin, 2008,
p-29)

Information detail with different data furthermore the executives often that after a relatively short
period reporting against the original criteria is no longer relevant. In effect, the need for
executive information systems forms the shortcoming of management information systems. Most
management information systems produce voluminous printed reports at fixed intervals
executives service used their reports because the fund that these do not help
Answer the question that concern senior management, (O’Brien, 1993, p-152)

2.6.2 USES OF executive support system (ESS)

Whilst the image of senior executives is that of people concerned with longer time strategic
issues. The reality is that they are often very concerned about the short–term performance of the
organization. It is the monitoring of this kind of information which executive information system
is typically put to the nature of how an executive may every system particularly suits this kind of
reporting need is sales are down month. He/she can quickly find out the area which requires
action this helps the executive keep the organization within budget. (Mesfin, 2008, p+22)

2.6.3 Decision Support System (DSS )

A decision support system (DSS) is a form of the management system. It is software that creates
a model of what is known as best current practice and is consulted to obtain specialists'
assistance decision modeling. Decision theory and decision analysis attempt to make a model
from which the best decision can be taken DSS gives the decision-maker to accesses this type of
model but the intelligent intuitions and judgment of the decision-maker are an integral part of the
system. A good DSS shall be balanced among the three capabilities. It should be easy to use to
support the interaction with non-technical users. It should have access to avoid a variety of data
and it should provide modeling and analysis in ways in summary. DSS is not concerned with the
routine processing of transaction record keep or reporting (O’Brien p-32).

Characteristics of decision support system

Further characteristics of decision support include.

Road-based approach to supporting decision-making help to identify important future train
adopting the organization to the changing condition.
 Decision-making retains control over the decision-making process it allowed the
capability of retrieve, manipulate, present and store data.
 Utilization of appropriate mathematics and statistical models to assist the decision-maker
in evaluating an alternative solution.
 Every capability to obtain information by request the interactive model of the system
extends the individual reasoning process.
  Output directed to organization personal at all level it can also provide
 Integrated subsystems allow managers and personnel to retrieve and manipulate
information to support the decision.

2.6.4 Knowledge Work System (KWS)

Knowledge work means creating new knowledge of information by research, experimentation,

and investigation into existing trends and products. There are many different areas of knowledge
work and each one can be supported by its collection of knowledge (KWS). (O’Brien, 1993, p-
156)

A knowledge works system is a computerizing package designed to provide knowledge workers

is with the means to create and integrate new knowledge into an organization. Knowledge
workers themselves perform many essential tasks within an organization including.

 Keeping the organization up to date with new knowledge as it developed outside the
company in areas such as technology science and the humanities.
 Providing advice inside the organization on the use of new knowledge
 Acting as a change agent by actually recommending and implementing changes within an
organization. (O’Brien, 1993, p-93)

2.6.5 Office Automation System (OAS)

The main aim of an office automation system (OAS) is to capture and then castrate knowledge
around an organization. The system does not necessarily assist the production of new knowledge.
But helps facilitate this process by offering, communication word processing spreadsheets, and
other applications that all employees within an organized will use, (Mesfin, 2008 p-14)

2.6.6 Transaction Processing System

A transaction processing system (TPS) is the main system serving the operational level of the
organization. It recording the entire daily routine transaction that takes place within an
organization and is used primarily by clerks and operation staff’s that either input or maintains
the data on the system. The recording of individual sales is necessary for the production of
invoices and as a base for a company’s accounts main of the decision made by automatic and can
be delegated to a computer the stock re-ordering process, for example, would be triggered to a
below the recorder level. (Lucas, 1990, p-64)

These tasks are routines but are made more efficient by the use of computers. Once data would
be put on to the computer it can easily be manipulated and used to produce additional
information. For example, a sales ledger may have been computerized to ease recording of sales
ledger may have been captured by the TPS, the MIS and other strategic systems can then use it.
There will often be direct links from the TPS to the MIS. With the letter effectively summarizing
from the TPS so show totals for weeks, months, or even years the summarization process allows
trends to be established and help with strategic planning (O’Brien; 1990, p-9)

2.6.7 Expert System

Expert system is mentioned here because they provide useful information to management even
though they are not part of the hierarchy of information system discarded. Previously expert
systems store the knowledge and experience of the number of experts in a structured database
known as knowledge often online or by frequency upgrade.

The expert system can be used at a variety of different levels at the simple level. They can give
factual answers to technical questions and at a more complex level. They can suggest how a
decision should be made recommending a course of action. (O’Brien James, 1990)

2.7 Role of Management Information System

MIS has a significant role in the success of service and other organizations according to O’Brien,
the role of MIS is classified into three. (O’Brien, 1990, p-196)

 Support of business operation

 Support of management decisions

 Support of competitive advantages

I. Support of business operation

Information systems support business operations by processing data with more speed and more
capacity generated by and used in business operations. They record and process data resulting
 from business. Updated bases and produce various documents and reports to speed up business
operation and hence decision making would be on time.

II. Support of management decision

Information system plays this role by providing reports and critical information to managers,
they also give advice and interaction support for the manager.

III. The strategic role of information system

It achieves this role by improving the operation and efficiency of the organization, promoting
business information, and building strategic information. According to O’Brien, the main role of
MIS in business

 To produce necessary infrastructure

 To create uses in awareness

 To monitor the financial and capital requirement

 To interlink business
 CHAPTER THREE

3 RESEARCH METHODOLOGY

3.1 Research Design

The study would have descriptive types of study because it would have qualitative and
quantitative nature, the situation in terms of characteristics and gives a verbal or numerical
picture of the study.

3.2 Sampling Size and Sampling Method

Dashen Bank S.C Jigjigabranch has a total number of 14 employees would be taken as all and
the researcher would take 14 employees of the organization is a small population, since the
population would be manageable thus, the researcher uses census technique.

3.3 Data Source and Collection Methods

The data type that would be used in this research paper is both qualitative and quantitative data
type, and the study largely depends on primary data source.

However this study the data were collated from both primary and secondary sources of data, in
which the primary data was collected by using questioners in both open-ended and close-ended
question and secondary data, which would be gathered from manual report of the bank
document.

3.4 Data Analysis Methods

The data gained from the study or collected from the respondent by distribution a questioner and
then the researcher analyzed by using the descriptive static methods, like mean percentage, and
frequency.
 CHAPTER FOUR

4 DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

This chapter presents the analysis of results obtained through self-administered questioners. Of
the 14 questionnaires distributed to various employees within the bank, 12 usable questioners
were returned. An A85.71 percent response rate is fairly satisfactory given the descriptive nature
of the study and the shortage of time. Hence conclusion drawn from such a large response rate
can fairly be taken as representative.

4.2 Respondents Characteristics

Table 4.1. The demographic data of respondents

NO Item Measurement Number

1 Gender Meal 10 83.33
Female 2 16.67
Total 12 100
2 Age 18-25 2 16.67
25-33 4 33.33
33-41 6 50
Abave41 - -
Total 12 100
3 Educational level BAdegree 11 91.67
Master 1 8.33
Total 12 100
4 Work experience 0-5 5 41.67
6-10 6 50
11-15 1 8.33
Total 12 100

Employees of the Dashen Bank were male 10(83.33%) and the rest of the employees were
female 2(16.67%) so we can conclude that the employee of Dashen Bank s.c in Jigjiga town is
almost male employees. The above table also shows that the most of employees of Dashen bank
 S.C in Jigjiga are at the age of 18-25 2(16.67%), between26-33 4(33.33%), and between34-
416(50%). Based on these data most of the workers are between 34-41 in Dashen bank S.C.They
are relatively young to perform their work effectively and improving their knowledge concerning
age. Concerning the education level of the respondent, the above table showed that 10(83.33%)
have BA degree holders whereas 2(16.67%) have master holders. This indicates that most bank
employees are adulated and have a good understanding of the role of MIS. Concerning the work
experience of respondents, the above table showed that below 0-5 years 5(41.67%), 6-10 years
6(50%) and 11-15 years 1(8.33%) thus from the above data it can be that the respondents of the
bank have a good money experience.

Table 4.2, General information of respondents regards to MIS by the level of scale

Likert Scale: very high=5 high=4, medium=3 low =2 & very low respects =1

Ref Items 5 4 3 2 1
no
No % No % No % No % No %
1 The role of MIS managerial 6 50 4 33.4 2 16.7 - - - -
decision making is.
2 Do the information that you 2 16.7 6 50 3 25 1 8.33 - -
get is sufficient for decision
making
3 Consideration given to MIS is 4 33.3 5 41.7 2 16.7 1 8.33 - -
4 Who looks at the delivery of 3 25 7 58.3 2 16.7 - - - -
services to customers
concerning the time, places,
and persons
5 How Mach smooth is the 3 25 6 50 2 16.7 1 8.33 - -
relationship between expertise
and other user units
6 How does the Time 4 33.3 7 58.3 1 8.33 - - - -
Dashen bank
practice the
delivery of MIS
Accuracy 5 41.7 6 50 1 8.33 - - - -
Completen 3 25 7 58.3 2 16.7 - - - -
ess
 Consistenc 5 41.6 6 50 1 8.33 - - - -
y 7
Relevancy 5 41.6 5 41.7 2 16.67 - - - -
7 The - 8 66.6 2 16.67 1 8.33 1 8.33
performances of
MIS in Dashen
bank
8 How to look at 6 50 4 33.3 2 16.7 - -
the commitment
of top
management on
MIS
improvements
9 The approaches 7 58.3 3 25 2 26.7 - - - -
of employees for
MIS
10 How to look at 8 66.6 3 25 1 8.33 - - - -
the
implementation
of MIS in
Dashen bank

Source:-own survey 2021

As it is indicated in table 4.2.,6(50%) replied that the role of MIS for decision-making is very
high,4(33.33%) replied that high, 2(16.67%) replied medium. Then the above data shows that the
role of management information systems for decision-making is very high.

As it is indicated in table 4.2, 2(16.67%) of respondents replied very high enough,6(50%)of

respondents replied that high, 3(25%)of respondents replied moderate enough and 1(8.33%) of
respondents replied that low. Then the above data shows that the respondents getting for
decision-making is mostly high and moderately enough decision making performed based on full
of information to be accepted the decision with other, people using that half information for
decision making leads to last accepted of the decision by other.
As is indicated in table 4.2. Above 4(33.33%) of the respondent responds that very high,
5(41.67%) of the respondent responds that high, 2(16.67%) of the respondents responds that
medium and 1(8.33%) of the respondents responds that low. This shows that most of the
respondents of the total respondents that the consideration gives to most are high.

As shown in table 4.2 the collected data from the respondents shows that from the total responses
3(25%) of respondents shows that very good, 7(58.33%)of respondents shows that good and
2(16.67%)of respondents shows that medium. The above data shows that the service delivery of
Dashen Bank at the right time, place, and person is good.

As shown in table 4.2 the relation with information system experts and with other units the
respondents replied shows that 3(25%) very high positive related, 6(50%) shows that positive
related, 2(16.67%) show that medium related, 1(8.33%) show that poor related. This shows there
is positive relation with information system experts and other user units so this indicates it
creates an attractive work environment and it has contributions for better bank service delivery.

As shown in table 4.2 the five elements of MIS are relatively the same level concerning timely
the respondents shown that 4(33.33%) very good, 7(58.33%) good,1(8.38%)shows that medium
related. This shows the managing and processing of information based on time value is the
traditional level most of the employee is not punctual, information has advantage and
disadvantage based on the time the Dashen Bank should improve timely usage of information
Concerning accuracy the respondent response show that 4(41.67%) very good, 6(50%) good,
1(8.33%) this data shows a good practice. For accuracy information which is managed based on
accuracy developed a good communication within and out of the bank and creates honesty and
integrity

Concerning completeness the response shows that 3(25%) are very good, the response shows that
7(58.33%) are good, and the respondent shows that 2(16.67%) are medium. This data shows a
good practice for completeness of MIS service delivery to enhancing service delivery acceptance
but it needs some improvement, as we can see from the table the performance or completeness is
also similar to the above timely and accurate MIS is performance completely to support other
activity.
Concerning consistency the data shows that 5(41.67%) of the respondents show that very good,
6(50%) of the respondents show that good and 1(8.33%) of the respondents show that medium.
This data shows a good practice concerning consistency that is50%% of the respondents.

Concerning relevance, the data show that 5((41.67%) of respondents show that very good,
5(41.67%) of the respondents show that good, and 2(16.67%) of respondents show that medium.
this data shows that the relevance between very good and good have similar performance.

The Dashen Bank S.C shows to improve the performance of effective level of those MIS
elements.

As indicated the above table 4.2, regarding the performance of managing information system
shows that 8(66.67%) respondents replied that high performance,2(16.67,%) of respondents
replied that medium performance, 1(8.33%) of respondents replied that there is need little
improvement and 1(8.33%) of respondents replied that need much little improvement. This
analysis shows that the management and control of the performance of MIS in Dashen Bank is
mostly high performance and it needs much improvement.

As it is indicated in the above table 4.2, 6(50%) respondents replied that very high commitment,
4(33.33%) respondents replied that high commitment and, 2(16.67%) respondents replied that
medium. So the above data shows the management commitment to MIS is a very high
improvement.

As indicated in the above table 4.2 Concerning the respondents shows that7 (58.33%) of
respondents replied very high approach, 3(25%) of respondents replied that high approach and
2(16.67%) of respondents replied that medium approach. Thus the table shows that the approach
of employees for MIS is very high. The management of the bank should be supported and
motivated the employees to change the very high approach of the employee for MIS into
practical application to improve the performance.

As it is indicated in table 4.2, 8(66.67%) of respondents show very high implementation, 3(25%)
of respondents show that high implement and 1(8.33%) of respondents show that medium
implementation of MIS in Dashen Bank S.C. This shows that employees have a very good
implementation of MIS in Dashen Bank S.C.
Table 4.3 the shortage of skilled manpower and MIS in processing information.

Ref Items Yes No

no No_ % No_ %
1 Is there a shortage of skilled 3 25 9 75
manpower in MIS processing
information
Source:-own survey 2021

As it is related to table 4.3 above; 3 (25%) of respondents replied that yes and the
remaining;9(75%) of respondents replied that no. This shows that most of the respondents75% of
the total respondents respondent that there is no shortage of skilled manpower on the processing
and organization information system.

Table 4.4, the conduct of information system for the development of the project?
Ref Items Internal staffExternal both
no_ staff
No_ % No_ % No_ %
1 Who conducts the information 4 33.33 2 16.67 6 50
development project?

Source of survey 2021

As regard to conduct information development project 4(33.33%) of the respondents said that the
information development projects conducted by MIS most employees were internal staff,
2(16.67%) of the respondents said that the information development project are conducted by
external staff and 6(50%) said conducted both internal& external staff. The finding shows is
Dashen Bank there is a shortage of understanding which activity is performed by who
information development project should be known and skilled manpower which related to the
activities of both internal and external staff.

Table 4.5, The MIS problem in running or delivering

Liker Scale: delay in processing=4, delay in communication=3 offer redundancy=2 &

inconsistency=1

Ref Items 4 3 2 1
 no_ N % N % N % N %
What are the MIS problems 7 58.33 3 25 2 16.7 - -
1 in Dashen Bank?

Source of survey 2021

As it is indicated in table 4.9, 7(58.33%) of respondents replied that a problem of delay in
processing 3(25%) of respondents replied that a problem of delay in communication and
2(16.67%) of respondents that a problem of redundancy.

The finding of the study shows that in Dashen Bank S.C have the following common problems
among of them are delaying in processing this is one of the most problem using the information
on time, delay communication this is the second problem that information, not facilities the
communicate result for poor performance often redundancy is also another problem result costly
by using time usage

The response of open-ended questioner

- Mention any possible obstacle for the successful implementation of MIS at Dashen Bank

The respondents mention the basic obstacle for the implementation of MIS.

 Data redundancy
 Unskilled manpower
 The problem of decision making
 Delay of fast response
 Improper management of information
 Less awareness of the society about the MIS.
 The demography of the society's life standard.
-Mention the role of MIS for the betterment of managerial decision making
The respondent mentions the following roles of MIS for better decision making
 For support management decision
 For consistency
 For excellent customer service
 For customer satisfaction
 For the development of modernization
 For creating a loyal customer
 For honesty and integrity
 For effective performance
 For the positive relationship between the bank and customer
For support bank operation
 CHAPTER FIVE

5 CONCLUSION AND RECOMMENDATION

Based on the analysis and interpretation made by the previous chapter the following conclusion
and recommendation are made.

5.1 Conclusion
Based on the objective that is identified in chapter one of the following conclusion are obtained.
There is a shortage of skilled manpower in management information systems on processing and
organizing of information. The managing and controlling performance of management
information systems are mostly of medium level.

The employees have a clear understanding of by whom the information development project
should conduct and service delivery was performed.

There is a positively smooth relationship between information technology experts and other user
units the five elements (time, accuracy, completeness, relevance, and consistency) of
management information system as practical near is and relatively at medium level
The employees of the bank face error difficulty to perform the information system correctly and
effectively.
The employees of the bank have to get information at a medium level for their day-to-day
decision-making.
The major problems of the management information system are
 Delay in processing
 Inconsistency
 Often redundancy
 Delay communication
Employees have a high attitudinal approach for management information system
 5.2 Recommendation
Based on the finding of the study the following recommendation has been forward:

 As the researcher see from the finding the bank has no adequate training program so it should
improve the development and training program effectively, to become competitive
 The study has been to recruit a qualified and competent employee to increase the
organization loyalty and effectiveness for the customer, as well as there must be would
linked information system within employees
 The bank should be addressed the main useful and update information for users.
 The top manager should effectively be supported and maintained the employee's morale to
enhance their imitativeness towards their work environment
 In short, the management of the organization should have to avoid the main obstacles for the
successful running of the organization like
 Skilled manpower
 The problem of decision making
 Delay of fast response
 Shortage of training about MIS
 Improper managing of information
To improve the main role of management information system
 To support bank operation
 To support management decision making
 For two way communication
 Review and update the system
 To create users awareness
 To create a loyal customer
 For excellent customer service
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