WOLLO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

THE ROLE OF MANAGEMENT INFORMATION SYSTEM IN

PROMOTING THE EFFECTIVENESS OF BANKING SYSTEM: THE
CASE OF ABYSSINIA BANK, DESSIE BRANCH

RESEARCH PROPOSAL SUBMITTED TO COLLEGE OF BUSINESS

AND ECONOMICS, DEPARTMENT OF MANAGEMENT IN PARTIAL
FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF ART IN
MANAGEMENT

BY

SARA MOGES ANAWTIE

ADVISOR: - AYENALEM NIGUSIE (MBA)

JANUARY, 2016

DESSIE, ETHIOPIA
 Table of Contents
Titles Page

Acronyms ---------------------------------------------------------------------------------------------------- I
Acknowledgments ------------------------------------------------------------------------------------------- II
Abstract ----------------------------------------------------------------------------------------------------- III
List of Tables ----------------------------------------------------------------------------------------------- VI
CHAPTER ONE -------------------------------------------------------------------------------------------------------- 1
1. Introduction -------------------------------------------------------------------------------------------------------- 1
1.1 . Background of the Study --------------------------------------------------------------------------------------- 1
1.2 . Statement of the Problem -------------------------------------------------------------------------------------------------- 2
1.3. Objective of the Study -------------------------------------------------------------------------------------------- 2
1.3.1 General Objective --------------------------------------------------------------------------------------------- 2
1.3.2. Specific Objectives ------------------------------------------------------------------------------------------- 2
1.4. Scope of the study ------------------------------------------------------------------------------------------------- 3
1.5. Operational Definition of Key Terms ------------------------------------------------------------------------- 3
CHAPTER TWO -------------------------------------------------------------------------------------- 6
2. Literature Review ---------------------------------------------------------------------------------- 6
2.1. The Importance of the Management Information System -------------------------------6
2.2. Information Requirement of an Organization ------------------------------------------------ 6
2.3. Information Requirement of Mangers -------------------------------------------------------- 6
2.4. Types of Information ---------------------------------------------------------------------------- 7
2.5. Information Integration in Business -------------------------------------------------------- 7
2.6. The Role of Management Information System in Business ----------------------------- 8
2.7. Information System Framework for Business Professionals ------------------------------9
2.8.The Fundamental Role of Information System Application in Business --------------- 9
2.9. The Role of Management Information System in Banking Sector ----------------------- 9
2.10. The Data Base and Database Management System Environment --------------------- 10
2.11. Network Basics --------------------------------------------------------------------------------- 11
2.12. Business Network ----------------------------------------------------------------------------- 11
2.13. Security Ethical and Societal Challenges ------------------------------------------------- 12

I
 1. CHAPTER THREE --------------------------------------------------------------------------- 14
3. Research Methodology --------------------------------------------------------------------------- 14
3.1 Research Design -------------------------------------------------------------------------------------- 14
3.2 Population Size --------------------------------------------------------------------------------------- 14
3.3. Sample and Sampling Techniques--------------------------------------------------------------- -- 14

3.3 Source of Data ---------------------------------------------------------------------------------------- 14

3.4 Method of Data Collection ------------------------------------------------------------------------ 14
3.5 Data Analysis Techniques ------------------------------------------------------------------------- 15
CHAPTER FOUR ----------------------------------------------------------------------------------------- 16

4. Data Presentation and Analysis------------------------------------------------------------------------16

4.1. Analysis of Open Ended Questionnaires ----------------------------------------------------------- 24

4.2. Results of Managers Response -------------------------------------------------------------------- 24

II
 Acronyms
MIS: Management Information System

DBMS: Data Base Management System

IS: Information System

IT: Information Technology

III
Acknowledgments

Fist and for most I would like to thank my almighty God for his protection and help at every step
of my life and success in my work. Next my deep gratitude goes to my Advisor Ms. Ayenalem
Nigusie for her constructive and critical comment, advice and guidance during the entire period
of my study. Honestly speaking, without her kind support this work would not have been
finalized. Next, I would like to extend warmest gratitude for my beloved husband Alemayehu
Erkihun who is always with me in every walk of my daily life. Lastly, my special thanks go to
those respondents for their honest response to the questionnaires prepared and interviews
forwarded by the researcher during data collection.

IV
Abstract

Management information system broadly refers to computer based system that provides
managers with tools to organize evaluate and efficiently manage department with an
organization. The study is conducted to explore the role of management information system in
enhancing the effectiveness of banking industry with particular reference to Abyssinia Bank,
Dessie branch. The research focused on identifying and clarifying the basic role of management
information system in Abyssinia Bank, Dessie branch. The major findings of this research show
that the role of management information systems is very high in order to facilitate work
efficiency of the employees and services facilitate of the Abyssinia Bank, Dessies Brach. The
manger recommended that to deliver the necessary material and electronic equipments, give
continuous training to employees in order to increase the bank services facility and customer’s
satisfaction. To conduct the study the researcher used primary and secondary source of data. To
this end open ended and close ended questionnaires and interviews were distributed to the
respondents. The researcher applied census technique; to collect full information from the total
53 target population that are measurable employees of the bank. Among the 53 total population
of the respondents, only 48 questionnaires are successfully filled and returned, while the other 3
respondents did not returned it because of the various personal reasons. The researcher used
descriptive analysis method with the help of tables and percentage to interpret the data into
meaningful form. The research findings met the research questions and objectives set out. Based
on the research findings conclusions and possible recommendations are forwarded to the
concerned body to improve the effectiveness of the banking sector.

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List of tables

Table 4.1 presentation of personal information---------------------------------------------16

Table 4.2 Distribution of information -------------------------------------------------------17
Table 4.3 Organizational equipment provide MIS------------------------------------------18
Table 4.4 Employees knowledge and skill--------------------------------------------------19
Table 4.5 Awareness of MIS-----------------------------------------------------------------20
Table 4.6 Equipment of the bank employee knowledge skill------------------------------21
Table 4.7 Change of technology -------------------------------------------------------------21
Table 4.8 Employee effectiveness, information and role of MIS-------------------------22

VI
VII
 CHAPTER ONE
2. Introduction
1.3 Back ground of the Study

Management information system refers to computer based system that provides mangers with
tools to organize evaluate and efficiently manage department with in organization. It provides
software that helps in decision making and data sources such as data bases that hard ware of
resource of system, decision support system, people management and project management
application and any computerized process that enables the department to run efficiently
(O’Brien, 2006, p, 328).

Management information system provides mangers with reports and in some case, on line access
to the organizational current performance and historical data record management information
system primarily serve the function of planning controlling and decision making of management
level (O’Brien, 2006, p, 36).

The information system is nervous system which allows on organization to respond opportunities
to be effective it must reach in to further extremities of the organization. The banks have demand
for improved management information system and the policy develop the improvement of
information technology in Ethiopia. Now a day the world is dominated by the provinces of
competition (Wilson, 1997, p, 46).

The role of management information system is as a catalyst to organizational performance in the

21st century. The result obtained indicated that management information system is very important
in organization because no organization can survive expand and attain meaning development
without information (O’Brien, 2008, p, 86).

Thus, to address the most constraint factor, management information system can be considered
as taking the other factors of banking industry. To deal with this issue, one should understand
how the Abyssinia Bank is applying the management information system. Hence, this research
will be conducted to assess the role of management information system in enhancing
effectiveness of banking industry in Abyssinia Bank.

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 1.2. Statement of the Problem
In order to update the organizational performance with the changing business world
environment, the information management system is very important. This imperative that the
banking information system need to deliver quality and timely information system in enhancing
effective practice critical development activity is essential.

Now a day the role of management information system has positive effect on organizational
performance. Therefore, this study will be carried to assess the role of management information
system in enhancing the effectiveness of banking industry by using pilot study seam times shows
delayed services facility in Abyssinia bank, Dessie Branch. The aim of this study is not filling
the gaps of the previous study rather it will investigate what roles management information
system play in enhancing the banking system.

The study has answered the following basic research questions:-

1. What was the current contribution of management information system in enhancing
the effectiveness of Abyssinia bank?
2. How technologies can change effectiveness of Abyssinia bank?
3. What were the prospects of the management information system practice in
Abyssinia Bank?
4. What was the chain/structure of Management Information System in order to
facilitate work efficiency in Abyssinia bank, Dessie branch?
1.3 Objective of the Study

1.3.1 General Objective

The general objective of this study was to investigate the role of management
information system in enhancing the effectiveness of Abyssinia banking system: the case of
Abyssinia Bank, Dessie Branch.

1.3.2. Specific Objectives

The specific objectives of this study were:-
 To identify the current contribution of management information system for the
effectiveness of Abyssinia bank.

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  To assess how technologies are likely to change the activity of Abyssinia bank,
Dessie Branch Ethiopia
 To identify the prospects of management information system practice in Abyssinia
Bank.
 To explore the chain/structure of management information system in order to
facilitate work efficiency in Abyssinia bank, Dessie Branch.
1.4 Scope of the study

This study was focused on the role of management information system to enhancing the
effectiveness of banking system in Abyssinia bank, Dessie branch. The other private and
government banks that are found in and around Dessie town were not included in the study.
This was done considering the budget and time needed to accomplish the research works.
1.5. Operational Definition of Key Terms
In order to understand the meanings of some of the terms, the definitions and concepts are given
below.
Management:-Management is the process of planning organizing, Leading, and controlling the
efforts of organization members and of using all other organizational resources to a chive stated
organizational goals (James, 2005, P, 10).
A process is a systematic way of doing things. We refer to management as a process to
emphasize that all managers, regardless of their particular aptitudes or skills, engage in certain
interrelated activities in order to a chive their desired goals.
Strategic level Management:- concerned with monitoring and controlling organization as a
whole making decisions in the areas such as opening new shops and factories or investment in
new product lines is done at strategic level. Mangers concern is at long term objectives and
position of the company (Mesfin, 2008, P, 6).
Tactical Level Mangers: - are involved with implementing the decisions of strategic mangers
and ensuring that the different divisions or department within the organization are operating
correctly.
Operational level Mangers: - are responsible for control of the day-to –day operations of the
organization, reporting queries or problems back to tactical management for decision as
necessary (Mesfin, 2008, P, 7-8).

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Information system. An information system can be organized combination of people , hardware
, software communication network and data resources that collects transforms and disseminates
information in an organization people have relied on information system to communicate with
each other using with a Varity of physical device (hard ware) information processing instruction
and procedures ( software) communication channels ( networks) and stored data ( data resource)
since the daun of civilization ( O’Brien 2004 , p, 7).

Information technology. Business professionals rely on many type of information system that
use a variety of information technology computer based information system that use computer
hard ware and software, the internet and other telecommunications networks, computer based
data resource management technology and many other computer based information technologies
to transform data resource in to endless variety of information products for customer and
business professional (Ibid).

System concepts. System concept underline the field of information system understanding
system concepts will help to understand many other concepts in the technology, application,
development, and management information system.

The following generic system concept provides a more appropriate foundation concept for the
field of information system. System is group of interrelated components working together toward
a common goal by accepting in puts and producing out puts an organized transformation process
such system ( sometimes called a dynamic system) has three basic interacting components or
functions.

Input. It involves capturing and assembling elements that enter the system to be processed for
examples, raw materials energy, and data, human effort must be secured and organized for
processing

Processing. It involves transformation process that converts input in to output. Examples are a
manufacturing process, human breathing process or mathematical calculation.

Output. It involve transforming elements that have been produce by a transformation process to
their ultimate destination for example, finished products , human resource and management
information must be transmitted to their human uses.

4
Feedback and controls. The system concept becomes even more useful by including two
additional components feedback and control. A system with feedback and control components is
sometimes called a cybernetic system that is a self-monitoring self-regulating system.

Feedback is data about the performance of a system for example; data about sales performance
is feedback to sale manager.

Control Involve monitoring and evaluating feedback to determine whether a system is moving
toward the achievement of its goal. The control function then makes necessary adjustment to a
system’s input and processing components to ensure that it produces proper output (O’ Brien ,
2004 , p 8-9).1

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 CHAPTER TWO

3. Literature Review

2.1. The Importance of the Management Information System

Revolutionary advances in information technology reinforce economic and social changes that
are transforming business and society. From this revolution emerges a new kind of economic
interest transformed the business processes. Information is the critical resource and basis for
completing old ways & doing business will be challenged and sometimes deferred. In line with
this as stated by (Mesfin, 2008, P, 4) in passive time.

 Information revolution is occurring

 Information revolution magnifies and accelerates economics transformations.
 Information revolution fuels social transformation.

3.2. Information Requirement of an Organization

K8Information is a data that has been processed into a meaningful format for use by decision
makers on organization. Information is a vital resource to an organization. It is important
ingredient in day-to- day operations. It is also useful as a means of communicating with other
organization and individuals. Historically the organization’s information needs were categorized
as follows (Mesfin, 2008, P, 4-5).

 Information for Planning.

 Information for controlling activities.
 Information for monitoring performance.
 Information for decision making.
 Information for recording and processing transactions.
 Information for communication.
This list tends to treat information as something to help management in the organization.

2.3. Information Requirement of Managers

The pyramid of management decision making and control: before considering the
information requirement of management, the different level of management must be explained.

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The information requirement of mangers will depend their specific role. Within an organization,
management is normally divided in to three different levels strategic, tactical, and operational.

2.4. Types of Information System

Each of the management levels within an organization uses different types of information. The
individual system is focused on the needs of management within each level and so they have
different objectives, contain different information and tend to present that information in
different ways (Mesfin, 2008, P, 11).

Operation Level – These systems are provided to support operational manger by tacking the
individual transaction that occurs within an organization. Detail such as individual sales, cash
receipts, is people goods sold to customer, etc. will be found with this system. All the data
collected in to transaction processing system.

Management Level- It is designed to assist with the monitoring and control the systems. They
will tend to provide reports on an exception basis to support decision making of more senior
managers. Decisions support system (DSS) are used provide this summary information while
management information system provided summaries of the transaction data for TPS.

Strategic Level:- Finally strategic level system help management address more - long- term
issues and problem. Such as the overall strategic direction and products, or production of five -
year plans. The educative support system will provide management with the summarized
strategic information needed to make decision.

2.5. Information Integration in Business

For a business to be successful it needs to integrate information from all aspects of the
organization. Modern management techniques of just in time production and mass customization
require high degree of internal integration, as well as strong links to suppliers and customers
(Gerald V.post, 2003, P, 251).

Computer use in most companies began with transaction processing system because transaction
system is structured and there is considerable experience, it is a logical place to begin. However,
it is also tempting to treat each transaction separately.

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2.6. The Main Role of Management Information System in Business
The development and use of management information system in modern phenomenon concerned
with the use of appropriate information that will lead to better planning better decision making,
and better results. Information system is a professional and academic discipline concerned with
the strategic managerial and operational activities in the gathering, processing, storing,
distributing and use of information, and its associated technologies in society and organization
information system are implemented within an organization for the purpose of improving the
effectiveness and efficiency of that organization.

Management information system is a process that provides information needed to mange

organizations effectively. Management information system are regarded to be a subset of the
overall internal control procedures in business, which cover the applications of people ,
documents, technologies, and procedures used by management accountants to solve business
problem such as costing a product, service or a business wide strategy. Management information
system is distinct from regular information system applied in operational activities in
organization. An institutions management information system Should be designed to achieve the
following goals.

 Enhance communication among employees.

 Deliveryk complex material through the institution.
 Provide an objective system for recording and aggregating information.
 Reduce expenses related to labor- intensive manual activities.
 Support the organizations strategic goals and direction.
Because management information system supplies decision makers with factors, it support and
enhance the overall decision making process. Management information system also enhances job
performance throughout on in situation. Management information system have changed the
dynamic of running business efficiently (http://www.ask.com> Business> management and
corporate operation).

2.7. Information System Framework for Business Professional

The field of information system encompasses many complex technologies, abstract behavioral
concept, and specialized application in countless business and non business areas. The five areas
of information Knowledge are.

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 1. Foundation Concept: - fundamental behavioral, technical, business and managerial
concepts about the components and roles if information systems.
2. Information Technologies: - Major concepts, developments, and management issues in
information technology- that is, hardware, software, network, data resource management,
and many internet- based technologies.
3. Business Application. The major uses of IS for operations, Management and cooperative
kadvantage of business, including electronic business, commerce, collaboration, and
decision making using internet, intranets, and extranets.
4. Development process. How business professionals and information specialists plan,
develop, and implement to meet business opportunities using several application
development approaches.
5. Management challenges. The challenges of effectively and ethically managing
information technologies, strategies, and security at end user, enterprise and global levels
of a business (O’ Brien, 2004, P 6-7).

2.8 The Fundamental Role of Information System Application in Business

There are three fundamental reason for all business application of information technology they
are found in the three vital roles that information system for a business enterprise.

 Support of its business process and operations.

 Support of decision making by its employees and manger
 Support of its strategies for completive advantage ( http/com. Bankee.com).

2.9. The Role of Management Information System in Banking Sector

1. Management information system is always management oriented and keeps in view every
level of management and gets the desired information.
2. Integrated- refers to how diff components (sub systems) are actually ties up together.
3. useful for Planning – as every organization making long- term and short- term plans with
the help of information like sales and production, capital investment, stocks etc.
4. Effective management information system helps the management to know derivation of
actual performance from pre- set targets and control things,
5. It’s Important for increasing efficiency.

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 6. Management information system provides updated result of various departments to
management.
7. Management information system adds to the intelligence, alertness, awareness of
mangers by providing them information in the form of progress and review reports of an
ongoing activity.
8. Management information system is high computerized so it provides accurate results.
9. Helps manger in decision making

The overall purpose of management information system is to provide profitability and staff
understands business performance and plans its future direction (Ibid).

2.10. The Database and Database Management System Environment

Most organization data base management system provides the foundation for organizing,
managing and working with information. In data base and data base management system
environment the data base contains the information and the data base management system is the
collection of soft ware tools the supports management of a data base and information of OLTP
and OLAP functions (Haag, 2002, p, 86).
What is data base?
The term data base is perhaps one of the most over used and management information system
understood term in to day’s business environment. Many of the people who will tell you they
have a data base , infect, have only files . Other simply refer to gathering of information as a file
consider definition of data base
 Collection of data organized to serve many application
 Collection of related files
 Integrated collection of computer data
 Collection of files
 Superset of related files

Important characteristics of database

 Collection of information
 Logical structure

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  Logical ties in the information
 Built integrity constraint
What is data base management system (DBMS)?

DBMS is the software you use to specify the logical organization for data base and access it. A
DBMS contains five important software. These are:-

 DBMS engine
 Data definition subsystem
 Data manipulation subsystems
 Application generation subsystem
 Data administration sub system (Ibid)

2.11. Network Basics

When you connect computer so that they can share information, software and hardware you have
created network a computer network ( which we simply refer to a network two or more
computers connected so that they can communicated with each other and share information,
software, peripheral devices and processing power ( Haag, 2002,p,90).

2.12 Business Network

A business network business with very few computers, you had probably use a client / server
network instead of peer to peer network. It is networks in which one or more computer are server
provide service to the other computer which are called clients. The servers have hard ware,
software and information that the client computer can access.

Client / server networks differ cording to three factors

1. Where the processing for the presentation of information occur that is where the
information
2. Where the processing of logic or business rule occur logic deal with processing that the
software implement.
3. Where the data management & information (data base) are located or put another way,
how information in the data base is stored and retrieved ( Haag , 2002, p, 91)

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2.13 Security Ethical and Societal challenges of IT

There is no question that the use of information technology in business presents major security
challenges poses serious ethical question and affects society in significant way .

Business/ IT security, Ethics and Society

The use of IT in business has had major impacts on society and thus rises ethical issues in the
areas of crime, privacy, individuality, employment, health and working condition.

It important to understand that IT has had beneficial results as well as detrimental effects in
society and people in each of these areas.

As a business professional, you have a responsibility to promote ethical use of information

technology the work place. Whether or not you have managerial responsibility, you should
accept the ethical responsibilities that come with your work activity. That includes properly
perfuming your role as a virtual human resource in the business or take home copies of soft ware
for their personal use? Should you fell customer information extracted from transaction
processing system to other companies? There are few examples of the types of education you
will have to make that have an ethical dimension so, let’s take closer look at several ethical
foundation in business and on information technology (O’ Brien, 2008,p, 530).

Business ethics is concerned with numerous ethical questions that managers must confront as
part of their daily business decision making however, the social contract theory state that
companies have ethical responsibility to all number of society, which allows corporation to exist
based on a social contract. The first condition of the contract requires campaniles to enhance the
economic satisfaction the consumers and employees. They must do that without polluting the
environment or depleting. They must do resource, misusing political power, or subjecting their
employees to dehumanizing working conditions. The second condition requires companies to
avoid fraudulent practices, how respect for their employees as human being and avoid practices
that systematically worsen the position of any group in society.

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The stakeholder theory of business ethics maintains that managers have an ethical responsibility
to manage a firm for the benefit of all stakeholders, that is all individual and groups that have a
stake in claim or claim, a company. This usually includes the corporation’s stockholders,
employees, customers, suppliers and local community (O’ Brien ,2008, p, 533).

CHAPTER – THREE
3. Research Methodology
3.1 Research Design

This study intends to describe the role of management information system in enhancing the
effectiveness of Abyssinia Bank, Dessie branch. Hence in order to achieve the objective of the

13
study descriptive method will be employed. This will be done to describe the existing situation
and to come up with certain possible recommendations.

3.2. Population Size

The data for this study was collected from Abyssinia Bank Dessie branch. All the populations of
the study were sources of data for this research. There are about 53 employees of the Abyssinia
Bank, Dessie Branch including managers (two in number). All the populations of the study area
are sources of data because it is manageable.

3.3. Sample and Sampling Technique

To conduct this study the researcher used descriptive method. This is because the researcher
wanted to acquire reliable and accurate information from each employee in the bank. In addition,
since this population is small and measurable all element of the population will be taken. So, the
total 53 employees including two managers were target population of this study.

3.4. Source of Data

The sources of data include both primary and secondary sources. The primary data was collected
from the employee of the bank through open and close ended questionnaires and interviews.
Secondary sources of data such as different published or unpublished documents were reviewed
to fill the gas.

3.5. Method of Data Collection

The instruments which was used to gather the required data includes interviews and
questionnaires, both open-ended and closed ended forms. Open ended questionnaires were used
to enable the respondents in expressing their opinion about the problem. Secondary source of
data gathering looks like written reports and documents and other materials were used to conduct
the research.

3.6. Data Analysis Techniques

The data collected from both primary and secondary source of data was analyzed and examined
to detect error and management information systems for further correction. This was done after
gathering all the required qualitative data and quantitative data. The data that the researcher

14
collected from respondents by using questionnaires were interpreted using tables and
percentages.

CHAPTER FOUR
4. Data Presentation and Analysis
The study tries to show the role of management information system in enhancing the
effectiveness of banking industry in Abyssinia Bank, Dessie branch. This analysis is based on
primary data collected through questionnaires and interviews about information processing in
Abyssinia Bank, Dessie branch. To come up with the required result, the researcher has used the
questionnaire as a data collection tool and distributed to each employees of the bank. The

15
questionnaire was distribution to 53 respondents and 48 of them have fully completed and
collected. Those give the response rate of 90.56% and the rest 9.44% questionnaires were failed
to collect because of various reasons. In this part of the study the data collected through
questionnaire are presented and analyzed. The researcher presented and analyzed the data based
on the number of questionnaires correctly filled and returned from respondents.

Table 4.1 Presentation of personal information

No Item Number %
Sex
Male 35 72. 91
1 Female 13 27.08
Total 48 100
Age
Less than 25 13 27.08
26-35 27 56.25
2 36-45 4 8.33
45-50 3 6.25
Greater than 50 1 2.08
Total 48 100
Level of education
12 Grade completed - -
Certificate - -
College Diploma 7 14.58
3 First Degree 39 81.25
Second degree 2 4.16
If Other specified - -
Total 48 100
Source: survey result, 2016

Based on the above data presented in table 4.1 the following respective analyzed and
interpretation is given. Concerning item 1, out of 48 respondents 35 (72.91%) of them are males
and 13 (27.08%) of them are females. According to employees profile the Abyssinia is

16
dominated by males. Therefore, the organization expected to balance the sex ratio of employees
reflected between males and females because males and females have equal capacity to do in the
bank, it is no need of more power from male.

Concerning the age of the respondents item 2, shows that 13 (27.08%) of respondent are less
than 25 years old, 27 (56. 25%) of them are 26-35 years old, 4 (8. 33%) of them are 36-45 years
old, 3 (6.25%) of them are 45-50 and the rest 1 (2.08%) of them are greater than 50 years old.
This shows that most of employees in Abyssinia Bank are young age working forces that have
the potential people which in return imply a potential gains for Abyssinia Bank.

Regarding item 3 of table 4.1 concerning the level of education of respondents, out of the total
respondents there are no 12 grade competed, certificate, and others. On the other hand, 7
(14.58%) of the respondents are college Diploma graduates, 39 (81.25%) of the respondents are
first degree holder and the rest 2 (4.16%) of them are second degree holders. From these, one can
conclude that the Abyssinia Bank has adequate man power in terms of educational qualification
because majority of the respondents are at list first degree holders.

Table 4.2 Are the necessary information distributed

No Item Number %
Are the necessary information were distributed
by bank to employees
1 Yes 42 87.5
No 6 12.5
Total 48 100
If the answer is ‘No’ for the above question
which type of information are not distributed for
you
2 Current 2 33.33
Past 3 50
If others, specify 1 16.67
Total 6 100
Source; survey result, 2016

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Based on the above table 4.2, 42(87.5%) of respondents believed that necessary information
were distributed by bank to employees, and the rest 6 (12.5%) of respondents stated as no
necessary information were distributed by bank to employees. This shows there is no weakness
in distribution of information to employee by bank because majority of the respondents get
timely necessary information offered by the bank.

Concerning the status of distribution of information, 2 (33.33%) of respondents stated no

distributed of current information, 3 (50%) of respondents stated that no past information
distributed, and the rest 1(16.67%) of them believed that no others specify necessary information
distributed by bank to employees. Therefore, majority of employees are not geting past
information than the current and others. It shows that the bank did not focus on the past
information.
Table 4.3 Organizational equipment to provide MIS
No Item Number %
Organization , equipment used to provide MIS
Very high 13 27.08
1 High 27 56.25
Fair 5 10.41
Low 3 6.25
Very low - -
Total 48 100
Source: survey result, 2016

From the above table 4.3 organizational equipment used to provide MIS, 13 (27.08%) of
respondents responded very high, 27 (56.25%) of respondents believed that the organizational
equipment used to provide MIS are high, 5 (10.41%) of respondents believed that fair
organizational equipment provide MIS and the rest 3(6.25 %) believed that low organizational
equipment provide MIS and no one believed that very low organizational equipment is used to
provide MIS. Therefore, this shows that the bank has high information provider of the
organization, equipment to provide management information system.

Table 4.4 Employees Knowledge and Skill

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 No Item Number %
Employees knowledge used to perform
information system
1 Very high 9 18.75
High 31 64.58
Fair 3 6.25
Low 3 6.25
Very low 2 4.16
Total 48 100
Employee skill to perform information system
Very high 8 16.66
High 32 66.66
2 Fair 4 8.33
Low 3 6.25
Very low 1 2.08
Total 48 100

Source: Survey result 2016

As shown in the above table, from the total respondents 9 (18.75%) very high, 31(64.58%) high,
3(6.25.35%) fair, 3(6.25%) low ,and the rest 2(4.16%) of the respondent believed that very low
regarding knowledge of employees to perform information system .From this one can conclude
that the employees knowledge to perform information system are enough to do expected work in
Abyssinia Bank, because majority of employees have high and fair knowledge about information
system performance.

Under item 2, in table 4.4 related to skill to perform information system, 18 (16.66%) of the
respondents believed it as being very high, 32 (66.66%) high, 4(8.33%) fair, 3 (6.25%) low the
rest 1(2.08%) very low. Respondents gave different responses on the issues of the skill of
employees need to perform information system. From these data skill of employees are not much
more enough to perform information system in the bank.

Table 4.5 Aware of MIS provide

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No Item Number %
Are you aware of all MIS provided by bank
when you join the bank
1 Yes 22 45.83
No 26 54.16
Total 48 100
If your answer for the above question is ‘yes’
what were your source of MIS
Customers 7 14.58
2 Employees 30 62.5
Other similar bank 10 20.83
Others, specify 1 2.08
Total 48 100
Source: Survey result, 2016

According to table 4.5 item 1, 22 (45.83%) of the respondents believed that all MIS provided by
bank and the rest 26 (54.16%) of the respondents awarded by that similar bank employees and by
other MIS providers. These shows that almost equal distribution of MIS a ware to employees by
bank and by other related source of MIS aware activities.

Concerning item2, in table 4.5, about 7 (14.58 %) of respondents stated that customers provide
aware of MIS, 30 (62.5 %) stated that employees are source of MIS, 10 (20.83%) of respondents
replied that other similar bank are source of MIS, and the rest 1(2.08 %) of respondent are
specify other sources that are information center, and producers, all of these are source of MIS
for the respondents. These show that majorities of respondent believed that aware of MIS
provided by employees than the other aware of MIS provided. This indicates that the bank
commitments taken by the employees are more sources of MIS.

Table 4.6 Equipment of the bank to deliver information

No Item Number %
Is the bank fulfilling all equipment that is
necessary to deliver enough information to

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1 customers
Yes 41 85.41
No 7 14.58
Total 48 100

Source: survey result, 2016

Based on the above table 4.6, 41 (85.41%) of the respondents believed that the bank fulfilled all
equipment that is necessary to deliver enough information to customers and the rest 7(14.58%)
of the respondents believed that the bank do not fulfilled all equipment used to deliver enough
information system to customer. Therefore, the respondents stated that not deliver equipment like
enough access of internet connection, ATM Card, media, and other expected equipment to be
fulfilling the bank can satisfy their own customers. This shows that even if the bank has better
condition, there is a problem of fulfilling equipment to deliver information to customers.

Table 4.7 Change of technology

No Item Number %
Is the technology changed the information system of the bank
Yes 48 100
1 No - -
Total 48 100
Information system about critical use in evaluation for bank work
performance
Excellent 11 22.91
2 Very good 30 62.5
Need some amendment 4 8.33
All should be revised 3 6.25
Total 48 100
Source: Survey result, 2016

Based on the above table 4.7, 48 (100%) of total respondents stated that information system to
the bank activities are changed when the technology are changed, no one believed that there will
not be change without using technological information.
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Therefore, the respondents response shows that the technologies are changed, the information
systems also changed, because by using technology they can improve their services facility
effectively in Abyssinia Bank.

Under item 2, regarding with information systems evaluation work performance of the bank,
11(22.91%) of the respondents respond that the information system given by the bank is
excellent, 30(62. 59%) of them are started that very good, 4(8.33%) of them are replied that
information evaluate banks work performance needs some amendment, and the rest 3 (6.25%) of
them are replied that the information system criteria used to evaluate the bank work performance
should be revised.

Therefore, based on the respondents response one can conclude that the information system
criteria used to evaluate the bank performance activities is very good.

Table 4.8 Employee effective, information provide by bank and role of MIS

No Item Number %
Employee effective by information technology
Yes 38 79.16
1 No 10 20.83
Total 48 100
Are all information provided by the bank effective
for you
2 Yes 36 75
No 12 25
Total 48 100
The rule of MIS in order to facilitate work
efficiencyk2
Very high 36 75
3 High 6 12.5
Fair 5 10.41
Low 1 2.08
Very low - -

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 Total 48 100
Source; Survey result, 2016

From the above table 4.8 item 1, 38 (79.16%) of the respondents replied that employees are
effective by information technology but 10(20.83%) of the respondents are not effective by
information technology. Therefore, employees effective by information technologies are
important to do more in the bank because majority of work in the bank are related to the
information technologies.

Under item 2, table 4.8, 36 (75%) of respondents stated that all information provided by the bank
is effective with the activities of bank, and the rest 12(25%) of the bank respondents reveals that
the information do not provide by the bank effective on their employees. Therefore, from the
majority respondent’s response it is possible to conclude that the information provided by the
bank is effective with the activities.

Under item 2 table 4.8, 36 (75%) of the respondent believed that the role of MIS to facilitate
work is very high, 6 (12.5%) of the respondents stated that MIS used to facilitate work are high,
5 (10.41%) of the respondents stated that the role of MIS to facilitate work efficiency are fair and
the rest 1(2.08%) of them are believed that role of MIS to work efficiency are low and no one
said no facilitate work efficiency by MIS. Therefore, the role of the management information
system is very high in order to facilitate work efficiency of employees to run the bank activities.

4.1 Analysis of open-ended questionnaires of employees shows as follow.

Q15. Mention any possible obstacles of the successful implementation of MIS at Abyssinia
Bank?

As the majority of respondents give their response related to obstacles of MIS implementation in
the Abyssinia Bank, there is no enough connection facility of network, the skill problem of
employees related to MIS, Lack of modern technologies that would improve customer image
towards the bank, misunderstanding of MIS for some employees or in others sense lack of
knowledge and skill of some respondents related to MIS and load of work for employees.
Therefore, these problems affect negatively the bank service facility, employees work
performance and customers satisfaction.

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Q16. List the major weakness of Abyssinia Bank related to managing information system?

The majority of respondek2nts of Abyssinia Bank stated that the weakness of the bank related to
managing information system are the insufficient infrastructure of the organization, lack of
training in performing MIS, some of data are managed manually rather than data base
management information. Therefore, this impels that some weaknesses are shown in this
organization related to managing information system. So, the organization need to arrange the
strategies to avoid or reduce these weaknesses as fast as possible

4.2 Results of manager’s response

The interview questions are prepared to collect information related to MIS from Abyssinia Bank,
Dessie branch.

Q1. How you evaluate the current information in the bank?

As a managers stated about evaluation of information system of the bank, there is fast delivery
system in the bank activity, application of new working system to improve quality service, the
old system replaced by new special system.

Q2. What are the main roles of MIS in the bank?

According to the views of manager MIS plays key role to deliver right information to the
employees of the bank, to available the qualified information process, and to facilitate a day to
day activity. In general MIS is a back bone of the bank, as the manager believed.

Q3. What types of information should be taken more of attract commercial bank?

As managers stated about types of information that are to be used in more attractive way to
Abyssinia Bank, the current information of the banking system is fast system to support current
information and also multiple information for the banking activity.

Q4.What is your recommendation recording the way to effective information?

The manager of the bank recommends the following idea to develop employees for effective
information. Training and updating employee’s knowledge, using new technology to be
effective, using time properly and delivery appropriate information for employees.

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Q5. What is the role of MIS in enhancing the performance of banking industry to contribute
information system? As the manager of the bank said that the contribution of MIS in banking
industry are to encourage the employees work performance and solve the problem, to develop
and gain perfect information in the banking system, and to increase the relationship between
customers and employees in the bank.

Q6. How employees and their administrative management (managers) strengthen their
information?

The managers believed that using new technology to develop their work performance; doing
together to help their customers and in general create close relation to fast banking work
performance system are very important to strengthen their information and administrative
system.

CHAPTER - FIVE

5. Conclusions and Recommendations

This chapter concentrated on the conclusions and recommendations based on the finding.

5.1 Conclusions.
 Most of the employees of Abyssinia Bank are first degree holder and they are found in
the productive age group. Most of them are male and younger.
 Concerning the availability of distribution of MIS, the bank has sufficient for employees.
According to this study the employees used to effective information system and that
provide by bank.
 The overall problems of information system in management information system are
material equipment, electronic equipment, past information, network facility and not
frequent training to employees.

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  The bank delivers necessary information to the customers. The finding of this study
shows that the technologies can change management information system.
 The importance of technologies can shift the information system of the bank when the top
management is committed to improve the existing of MIS and provides necessary
information for employee to do more.
 The management information system is used to evaluate work performance.
 The roles of management information system are very high in order to facilitate work
efficiency of the employees in Abyssinia Bank.

5.2 Recommendations
Having gone through this management information system of activities in Abyssinia Bank,
Dessie branch the following recommendations are given.
 Abyssinia Bank prime focuses should be given to practice the basic MIS since these are
major information system to stand as banking industry. Therefore, top management should
give additional emphasis to improve MIS.
 The bank should pay attention to evaluate employees work performance.
 The bank should provide the information system to employees for the successful of banking
industry.
 The bank should deliver the necessary materials and electronic equipment to increase
employees’ service quality because necessary equipment delivery can facilitate the bank
activity and create satisfaction to the customers.
 The Abyssinia Bank should distribute the MIS for its employees without any discrimination.
Because all employees are responsible for the success of the bank.

26
 The organization should provide all information to its employees. Because without
knowledge and skill of employees the information systems cannot do more for the bank,
without this the bank cannot achieve its mission and objectives.
 The bank has not enough network facility therefore; the bank is advisable to arrange the
network accesses. Because without network connection bank activity is not sucessful.
 The manager should be use additional modern technology in order to minimize work load of
employees.

References

David A.Willson,(1997), Management Information System, 2nd edition, Great Bruam.

Edition, Boston Burr Ridge.

Gerald V. Post (2003), Management Information System, 3rd edition, New york.

HTT://WWW.ask com > Business > management and corporate operation.

HTTP:// WWW. Management information systemys.com/ banking/on line.

James A. O’ Brien (2006) Management Information System, 7th edition. New York.

James A. O’Brien (2004). Management Information System, 6th edition. New York.

James A.F, (2005), Management Information System, 6th edition, New York.

James A.O Brien,(2008), Management Information System, 8th edition, Francisco

Mesfin Fiker, (2008), Management Information System. 1st edition, Addis Ababa.

27
Stephen Haang (2002). Management Information System for the Information Age, 3rd

APPENDIXES I

WOLLO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Questionnaire to be filled by employees

This is Sara Moges, Year IV extension student at Wollo University in the Department of
Management. Currently, I’m conducting Senior Essay on “The Role of Management
Information System in Promoting the Effectiveness of Banking System: The Case Of
Abyssinia Bank, Dessie Branch” for partial fulfillment of the requirement for the award of B.A
Degree in Management.

28
Thus, I’m kindly requesting respondents to provide me with relevant data for this study. Dear
respondents, your genuine data is very helpful for the successful completion of this research
work.

Thank you in advance for you kind cooperation!

General Instruction

Dear respondents,

 No need of writing your name.

 Put an “X” mark for your choice in the box provided.

Part I. General Information

1. Sex: Male Female

2. Age: < 25 26-35 36-45 45-50 > 50
3. Level of Education
k812 Grade completed Certificate First Degree
College of Diploma Second Degree If Others, Specified________

Part II: The Role and function of Management information system

1. Do you think that the necessary information was distributed by bank to employees?

Yes No

1. If you answer is “No” for the above question which type of information are not
distributed for you?
Current Past If others,
Specify-----------------------------------------------------------------------------------------
------------------------.
2. The status of the your organizational equipment used to prove management information
system

Very High high Fair Low Very Low

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3. Employees Knowledge to perform information system?
Very High High Fair Low Very Low
4. Employee skill to perform information system?
Very High High Fair Low Very Low
5. Are you aware of all management information system to provided by the bank, when
you join the bank?
Yes No
6. If your answer for the above question is “Yes” what were your source of MIS?
Customer Employees other similar bank
If others, Specify ________________________
7. Is the bank fulfilling all equipment that is necessary to delivery enough information
system to customers? Yes No
8. If your answer for the above question is “No” which type of information system needed
to fulfill? ________________________________________________________
9. Is the technology were changed the information system of the bank?
Yes No
10. Information system about criteria used in evaluation for Bank work performance?
Excellent Need some amendment
Very good all should be revised
11. Employees effective by information technology?
Yes No
12. Are all information provided by the bank effective for you?
Yes No
13. The role of MIS in order to facilitate work efficiency?
Very high High fair low very low
14. Mention any possible obstacles that affect successful implementation of MIS at
Abyssinia Bank, Dessie branch?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________

30
 15. List the major weakness Abyssinia Bank, Dessie branch related to managing
information system?
________________________________________________________________________
________________________________________________________________________
_______________________________________________________________________
16. Any remark that you would like to add?

______________________________________________________________________
_____________________________________________________________________

APPENDIXES II

WOLLO UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

INTERVIEW QUESTION FOR MANGERS

This question is prepared to collect important data regarding to “The Role of Management
Information System in Promoting the Effectiveness of Banking System: The Case Of
Abyssinia Bank, Dessie Branch”.

31
 1. What are the main roles of MIS in the bank?
2. How you evaluate the current MIS in the bank?
3. What type of information should be taken more of attract commercial bank?
4. What is your recommendation regarding the way to effective information?
5. What is the role of MIS to enhancing the banking industry in Abyssinia Bank, Dessie
Branch?
6. How employees and their administrative management (Manager) strengthen their
information?
7. Any remark that you would like to add?

______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________

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