This research work examined Management Information System as a tool for
decision making in banking industry.
The study laid emphasis in the rate with which management information
system has influence business organization is so great and the involving
technology has broadened the data processing beyond limit in electrical and
mechanical engineering contracting companion for this reason the need for
careful analyzing of the topic.
The Management information system as a toll for decision making with
reference to Wema Bank PIc. A total number of 50 respondents both females and
males with an average age of 21 years cutting across management team, senior
staff and junior staff who were selected through random sampling method. They
were given questionnaire to fill concerning their personal dispositions and
responses relating to Management Information System (MIS).
The data collected was analyzed using simple percentage and chi-square
test for goodness of it. Two hypothesis were tested; all were confirmed to be
significant. The result showed that:
decision making by the management, there must be adequate supply of information
in the organization.
ii) Management Information System facilitate and
enhance decision making in an organization to Improve productivity and
Finally, some recommendation were made in solving the identified
TABLE OF CONTENTS
of the Study
1.2 Purpose of
1.6 Statement of
1.7 Scope and
Limitation of Study
of the Study
of Information Function and Need
2.4 Function and
Value of Information
Information System and Organisation Structure
2.6 The Nature
of Planning of Control for Decision Making
Theory and Concept
2.8 Summary of
of Study Population
Designs and Procedures
of Data Collection Instrument
of Data Analysis
of the Methodology
DATA ANALYSIS AND HYPOTHESIS TESTING
Analysis According to Test of Hypotheses
CONCLUSION AND RECOMMENDATION
for Further Study
OF THE STUDY
Organizations are involved· in one form of data collection and processing
of the data, which vary considerably in size and structure. It is a common
expression nowadays to talk of providing solution to business problems. It must
be noted that organizational problems are not the same as mathematical problems
requiring set of equation with unique solutions instead, providing solutions to
organizational problems refers to the method of reducing the burden of a task
or avoiding calamity or destruction likely to take place as a result of certain
difficulties encountered by the organization.
Solutions to the problems of business organizations are provided by
highly organized system that have been carefully planned and operated. The
reason is that business problems are closely linked with the need for the
Information necessary to control the organizations activities.
Therefore, the aim of this project is to undertaken a critical study of
the assessment of management information system that is capable of providing
solutions to the various problems of business organization, to ensure effective
control, planning and decision making for its activities.
The solution to the business organization problems led to the
implementation of the electronic computers. Historically, the early man used fingers,
toes, sticks and even pebbles to perform operation which become sophisticated
and complex, it became necessarily to improve on the existing data processing
By the middle of the 20th century, several efforts made by
constructing machines to performed calculations easily and automatically some
"of the successful efforts include the following:-
The Chinese Abacus which was originated in China but, it is still use
until today in part of Asia. It is a mechanized pebbles counter which has been
in use in a variety of forms over the last 200 years. It is used to store
intermediate results off a series of calculation.
Furthermore, another French mathematics call Blaise Pascal developed the first
notable true calculating machine in 1642 which performs multiplication,
addition and subtraction and likewise Goot Yen Leibriz a German mathematician
invented a calculating machine which performs multiplication and division.
Moreso, another French man name Jacquard a textile manufacturer between
1802 and 1504 invented a mechanical means of automatically controlling weaving
looms to facilitate the production of woven cloth with complete patterns and
also a professor of mathematics in Cambridge University called Charles Barrage
developed the concept of an analytical machine in 1834 as a general purpose
In addition, a statistician called Herman Hollerith developed the punched
card and electrical tabulation machine for the United State Census in 1890, he
had his idea originated from the fact that census in 1890, he had his idea
originated form the fact that census questions were ''Yes'' or "No"
type. Tabulators were used to punch holes, automatic selecting and sorting of
cards. The census of 1890 on 63 million citizens took only 3 years to complete.
He set up his own company known as the computing tabulation recording company
which later became IBM (International Business Machine Corporation).
Lastly, John Neuman made a summary of the design requirements for the
modern computer in his reports in 1946 as follows: Binary codes should be used
for the representation of data and instructions in a way which make no
distinction between them to be stored together and shared the same storage
space within the computer should be able to process both data and instructions.
Generally, this research is carried out to really look into different
aspect of tools or instruments and concepts of management information system,
why it is a tool, what makes it a tool for decision making and finally how to
effectively make use of information and the categories of information users.
BACKGROUND OF WEMA BANK PLC
Wema Bank PIc. formerly known as Agbonmagbe Bank Limited was incorporated
on the 2nd of May, 1945 as a private limited liability commercial banking company
with an authorized share capital of
fully paid, jointly owned by Chief M.A. Okupe and Mr. A.A. Alade. The bank was
incorporated with the following objectives:
The creation of better condition of service for its
employees to ensure maximum job satisfaction consistent with the bank's overall
The provision of efficient and modern banking services to
Nigerian businessman, traders and craftsmen at a reasonable price, also
identification of the bank with the economic and ind ustrial aspirations of the
3. The assurance that the bank is operated on a purely commercial
basis to ensure that enough funds for expansion and modernization are readily
available when needed.
At the apex of the bank's organizational structure is the board of
directors to which the Chief executive reports. The management of the bank is
responsible for policy formulation and implementation is made up of the
managing director, general managers and assistant general managers.
The main structure of the bank consists of divisions within which are
departments. The divisions each headed by an executives director company of
administration, finance and operations.
However, there are some departments, which owing to the nature of their
duties are not grouped under any division. They are:
i. Corporate planning and development
ii. Audit and Inspectorate
iii. Legal/Company secretary
At Wema Bank, the operations division controls the actives involving
credit (loans and advances). Marketing, credit administration, corporate
finance, domestic operations and foreign operations.
The bank is pursuance of its expansion programmed, presently has over 90
branches spread all over the country. This is so in order to relate branch
location to market segment identified and spread nationwide without
compromising profitability. The assets of the bank worth over
N70 billion and N800,015,068 shares through Odua Investment Company Limited having
40% while other Nigeria shareholders having 60% as at 2003.
The bank adopted the CBN policies in the preparation of its financial
statement in lieu of loans and advances are stated net of provision for
doubtful debts. The provision is determined in accordance with the central bank
of Nigeria's prudential guideline from a specific assessment of each customers
account. A general provision of 15% is also made on loan and advances which
have not been specially provides for.
1.2 PURPOSE OF STUDY
The main purpose of study of this research project is to give overview
knowledge into different aspects of an instrument or tool of management
information "system as it is observed that modern day organization going with the dynamism m business environment needs" information for
planning, control and decision making.
Also, with the global change in business environment due to changes in
information system, the project will further enhance the reader's knowledge
concerning information for planning, control and decision making.
Finally, the project is to booster decision-making in the organization
through the need or use of the information.
1.3 SIGNIFICANCE OF STUDY
The project examines the tool for management information system for
decision making, revising the review, need and importance of management
information system in: relation to decision in an organization.
The study will look at the nature and scope of information management and
its system, examining the weakness and opportunities, threat and strength in
the organization. The project will also appraise management function and its
information needs, also the characteristic of good management information system.
The nature of decision-making tools for management information system
will be diligently examined in this project. In order to find a solution and
ease decision of study will include literature review, determination of sample
size and data collection, presentation of data analysis and recommendation that
is widely spread throughout the chapters.
1.4 RESEARCH QUESTION
In the process of the research, the under listed question has designed to
be focused and they are:
What types of control can we put in place to achieve
adequate planning and decision making on management information system in an
What forms of internal controls do we need in management
information system department or proper assessment?
Is the corrective measures are in place to appraise the
performance of various sections and sub-section in management information
What forms of recommendation do we need to achieve
adequate decision making in management information department?
What types of measure' are needed for the efficacy of
various methods used to source for data in decision making to enhance adequate
planning and controls?
Is planning, control and decision making required in
management information system department?
What are the limitations of the various techniques used In
management information system for decision making?
1.5 RESEARCH HYPOTHESES
The research hypotheses that would be tested in this project are:
Hi: For effective decision making
by the management, there must be adequate supply of information in the
Ho: For effective decision making by the
management, there is no need for adequate supply of information in the
information system facilitate and enhance decision making in an organization to
improve productivity and performance.
information system does not facilitate and enhance decision making in an
organization to improve productivity and performance.
1.6 STATEMENT OF PROBLEM
Management Information system entails the provision of necessary
information to individual managers in an organization in order to improve their
degree of efficiency and effectiveness in the attainment of the overall
objectives of the organization, which are profitability, market standing
productivity innovation, employee’s satisfaction and social responsibility. In
the development of management information system. It is necessary to have
proper understanding of:
What is involved in managing a business?
The factors affecting the type of information required.
Identification of the appropriate information.
The method involved in presenting information effectively.
Any management information system that does not recognize what managing a
business entails would be without direction and therefore not capable of
playing the supporting role is meant to secure. Afterall, management
information system seeks to provide effective support to managers so as to
ensure efficient management.
1.7 SCOPE AND LIMITATION OF
The scope of the study will give a general view of Management Information
System in the worth of decision making and how management information system
affect the decision making of every organization.
The limitation of the study may be as a result of the retrieval of
questionnaire to be distributed out to the respondent, the time factor is also
a limitation to be study as in period of writing the research project and also
the study could be limited through financial resources. In this case,
transportation cost to the libraries and place understudy, printing of questionnaire
to the respondents.
1.8 ORGANIZATION OF THE STUDY
The study is presented in five chapters namely:
The chapter one contains introduction, statement of problems, purposes of
study, significance of study, research question, research hypotheses, scope and
limitation of study, conceptual framework.
Chapter two comprises of background, current literature review etc. Chapter three
comprises of introduction, research design, characteristics of the study,
sample designs and procedures, data collection instrument etc.
Chapter four consists of data analysis, review etc. While chapter five
will consists of summary, conclusion, recommendation and suggestion for future
1.9 CONCEPTUAL FRAMEWORK
Data: This is the raw
facts and figures pertaining to the day to day activities of an organization.
Data do not enhance decision making because they' have no meaning.
Information: This represent
data that has been processed. It is also data have been interpreted and
understood by the recipient of the message.
Planning: This is a
decision taken before one takes an action. It is an attempt at coping with
uncertainties by thinking of what, how and when a future course of action would
Information System: This entails the provision of necessary information or report
to individual managers in an organization in order to improve their degree of
efficiency and effectiveness.
System: This refers to a set of Information connected or inter-dependent, so as
to form a complex parts in an orderly arrangement according to some plan.
Information System Strategies: This is defined as the long term
directional plan. It is seen to be business led, supporting business strategies or creating new strategy
Information Technology: This is the contribution of science and
technology towards effective and efficient production and dissemination of
information to the users accurately and timely.
Information Technology Strategy: this deals with technology having great in t1uence on all
aspect of organization systems which include computer, communication, data and
Management Report: The Information produced for managers and the
utilization of it by individual manager varies from one organization to another.
Feedback: This is the communication of a system measured output to a
comparator so as to detect deviation. It is an essential output signal causing
error signals to be generated as a basis of adjusting the input to a system
which is in respect of an automatics control system and is achieved by an
in-built control mechanism.
File: This is a collection of data, which consist of a number of
related sets of data called records.
System Analysis: This may be
defined as a method of determining how best to use computer with other
resources to perform tasks, which meet the information needs of an
Controlling: This is the comparison: of actual performance with plans
take necessary corrective measures.