Managment Information System Group Assignment Final -2017 PDF

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Summary

Management Information Systems is a very descriptive subject. is a boring follow our assignemtn...

Description

Department of Human Resource Management Faculty of Management and Finance

University of Ruhuna

Course Code

BBA 31013

Course Title

Management Information Systems

Course Coordinator

Dr. Jayarani Ramawickrama

Submission Due on

02/05/2020

Type of Assignment

Group Assignment

Title of the Assignment

Importance of using Management Information Systems in Sri Lankan organizations.

No. Name of the student 1

Wanniarachchi W.T.N.M.

Student Reg. No. MF/2017/4906

2

Madushani P.G.S.

MF/2017/4913

3

Maduwanthi P.N.W.

MF/2017/4918

4

Priyadarshana H.G.C.

MF/2017/5018

5

Jayarathna H.K.T.I.E.

MF/2017/5034

6

Jayasinghe J.D.O.S.

MF/2017/5043

7

Jayaweera K.V.N.K.

MF/2017/5113

8

Rathnayaka G.M.M.K.

MF/2017/5123

Office use only:

Date Stamp

Student’s Signature

Remarks

Declaration

I/We hereby declare that this assignment is my/our own work and effort and that, to the best of my/ our knowledge and belief, it contains no material previously published or written by another person nor material which has been accepted for the award of any other degree or diploma of the university or other institute of higher learning, except where due acknowledgment has been made in the text.

No. Name of the student 1 Wanniarachchi W.T.N.M.

Student Reg. No. Student’s Signature MF/2017/4906

2

Madushani P.G.S.

MF/2017/4913

3

Maduwanthi P.N.W.

MF/2017/4918

4

Priyadarshana H.G.C.

MF/2017/5018

5

Jayarathna H.K.T.I.E.

MF/2017/5034

6

Jayasinghe J.D.O.S.

MF/2017/5043

7

Jayaweera K.V.N.K.

MF/2017/5113

8

Rathnayaka G.M.M.K.

MF/2017/5123

ii

Table of content

Declaration ...............................................................................................................................ii EXECUTIVE SUMMARY .................................................................................................... iv ABBREVIATIONS .................................................................................................................. v CHAPTER ONE: REPORT INTRODUCTION .................................................................. 1 CHAPTER TWO: THEORITICAL BACKGROUND ........................................................ 2 2.1 Definitions and Evolution of MIS .................................................................................... 2 2.2 Evolution of MIS.............................................................................................................. 3 2.3 Importance of MIS ........................................................................................................... 4 2.4 Functional aspects of MIS ................................................................................................ 5 CHAPTER THEREE: DATA ANALYSIS AND DISCUSION .......................................... 7 3.1 Introduction of organization ............................................................................................. 7 3.2 How to affect level of Management and Information System in People’s bank.............. 8 3.2.1 Transaction Processing System (TPS)....................................................................... 8 3.2.2 Management Information System (MIS)................................................................... 9 3.2.3 Decision Support System (DSS)................................................................................ 9 3.3 How to Effect MIS Functions to the Peoples bank ........................................................ 10 3.3.1 Accounting Management Function ......................................................................... 10 3.3.2 Human Resources Management Function ............................................................... 11 3.3.3 Marketing Management Function ........................................................................... 11 3.4 SWOT analysis of usage of information system in Peoples bank.................................. 12 3.4.1 Strengths or benefits of using MIS in People’s Bank.............................................. 12 3.4.2 Weakness of using MIS in People’s Bank............................................................... 13 3.4.3 Opportunities of using MIS in People’s Bank ......................................................... 13 3.4.4 Threats of using MIS in People’s Bank ................................................................... 13 CHAPTER FOUR: CONCLUSION AND RECOMMANDATION................................. 14 LIMITATION OF THE STUDY.......................................................................................... 15 REFERENCE ......................................................................................................................... 15

iii

EXECUTIVE SUMMARY The information and the advances in technology has lived to be a critical component that has greatly influenced the direction of corporate sector management in the past decade. The importance of information is essential for the achievement of short-term, intermediate and long-range goals. The adoption of Integrated Management Information Systems (IMIS) has shaped the strategies that corporate organizations have been implementing as mechanisms for the realization of operational efficiency improvement and other management practices. The introduction of MIS platforms in corporate scene has turned to be the driver and enabler of business strategy for numerous corporate organizations. Corporate organizations critical challenge is sustaining and consistent improvement of organizational performance. Proper information flow is vital and MIS platforms enable corporate entities harness the power of information in enhancing its performance. Information is a primary and essential tool in management and a common thread that ties together the cycle of management that is planning, execution and control. Information consists of data that have been processed and are meaningful to a user. A system is a set of components that operate together to achieve a common purpose. Thus, a management information system collects, transmits, processes and stores data on an organization’s resources, programs and accomplishments. The system makes possible the conversion of these data into management information for use by decision makers within the organization. A management information system, therefore, produces information that supports the management functions of an organization. For the purposes of this study, a management information system is the series of processes and actions involved in capturing raw data, processing the data into usable information, and disseminating the information to users in the form needed. However, the importance of maintaining improved mechanisms to the development, use and review of MIS systems within the organization must be an ongoing concern of any organization management. The organization’s MIS should have a clearly defined framework of guidelines, policies or practices, standards and procedures, which should follow throughout its development, maintenance and use. MIS can be developed and maintained by either manual or automated systems or a combination of both. These systems should be accessible and useable at all appropriate levels of the organization.

iv

ABBREVIATIONS

MIS

Management Information System

TPS

Transaction Processing System

DSS

Decision Support System

IMIS

Integrated Management Information System

PB

People’s Bank

AMIS

Accounting Management Information System

HRMIS

Human Recourse Management Information System

CRM

Customer Relationship Management

MoU

Memorandum of Understanding

v

CHAPTER ONE: REPORT INTRODUCTION Management Information System (MIS) is a management system that is used by many banks in development countries nowadays to improve the banking service and support decisionmaking process. The internet banking is considered as one of the fast-growing industries in the financial and banking sector. The study will explore the impact of Management Information System on improving the banking service and identify the main obstacles those hinders the implementation of MIS in banking sector in Sri Lanka. The finding of this paper shows that Sri Lankan financial institutes need proper research to implement MIS and shown the importance of usage of MIS in Sri Lankan context. Management Information System is a system used by most of modern banks nowadays to provide information at high quality and precision needed to manage the bank effectively. Management Information System provides the necessary reports and summarizes the bank’s basic operations to the senior managers in the bank and support decision-making process. Other advantages of MIS are transparency and efficiency of information provided for bank’s clients. Management Information Systems are not new to the banking sector. Since the early 90s, banks have been using this terminology to refer to the process of generating various reports and analyses at the Corporate/Head offices for their decision making for own use as well as for conveyance to authorities in charge of regulation. MIS in the present context of high availability of voluminous data on electronic media at diverse locations and on diverse platforms, has become more pertinent to banks’ decisionmaking process, thanks to the availability of new tools of technology such as data warehousing, data mining. There are several definitions of the concept of MIS and may vary in expressions, but correlate in the connection and implications, actually there is no explicit agreement among most researchers and experts in the field of management science on one comprehensive definition for MIS. Finally, we selected in People’s Bank to represent in an importance of usage of Management Information Systems in Sri Lankan context.

1

CHAPTER TWO: THEORITICAL BACKGROUND 2.1 Definitions and Evolution of MIS The MIS is method for collecting information from the internal and external source and processing this information for the purpose of facilitating the process of decision-making function of the business. Management Information System is not a new concept, before using computers MIS techniques existed to supply to the managers with the information that would permit them to plan and control business operations. The computer has basically added on more dimensions such as speed, accuracy and increased volume of data that permit the consideration of more alternatives in decision-making process. Management Information System is generally defined as an integrated user-machine system for providing information to support operations, management and decision-making functions in an organization. The system utilizes computer hardware and software, manual procedure, models for analysis. An organization with a well-defined information system will generally have a competitive advantage over organization with haven’t Management Information System. There are lots of researches on the approaches, techniques and technologies for the design and development of MIS in an organization. However, we analyze few articles for understanding this concept in very well. Then we can see, there are no universally accepted definitions of MIS and that exist in literatures are just prejudices of the researchers. In their study, Laudon and Laudon (2003) have defined MIS as "the study of information systems focusing on their use in business and management". The above-mentioned definition shows that MIS has underlined the development, application and validation of relevant theories and models in attempts to encourage quality work in the particular area. Another useful definition emanates from Thierauf (1984) defined “MIS is the system is capable of converting the collected data from the routine user and machine interactions in to the effective information which later on is used by the decision makers to make efficient decisions. The specialized systems that are being used for decision making for the management at all levels are generally known as management information systems” (Thierauf, 1984). Referring to the above literature quotations, simply we can build a theorical knowledge about Management Information Systems (MIS).

2

2.2 Evolution of MIS Kenneth C. Laudon and Jane Laudon (2012- 12th edition) identify five eras of Management Information System evolution corresponding to the five phases in the development of computing technology: such as 1.

Mainframe computing era

2.

Personal computers era

3.

Client/server network era

4.

Enterprise computing era

5.

Cloud computing era.

They defined the first era (Mainframe) was ruled by IBM and their mainframe computers. These computers would often take up whole rooms and require teams to run them. As technology advanced increasing, these computers were able to handle greater capacities and therefore reduce their cost. The second era (Personal computers) began in 1965 as microprocessors started to compete with mainframes and minicomputers and accelerated the process of decentralizing computing power from large data centres to smaller offices. In the late 1970s minicomputer technology gave way to personal computers and relatively low-cost computers were becoming mass market commodities, allowing businesses to provide their employees access to computing power. As technological complexity increased and costs decreased, the need to share information within an enterprise also grew, giving rise to the third era (Client/server network), in which computers on a common network access shared information on a server. This lets thousands and even millions of people access data simultaneously. The fourth era (Enterprise computing) enabled by high speed networks, tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure. The fifth era (Cloud computing) is the latest and employs networking technology to deliver applications as well as data storage independent of the location or nature of the hardware. This, along with high speed cell phone and Wi-Fi networks, led to new levels of mobility in which managers access the MIS remotely with laptop and smart devices. 3

2.3 Importance of MIS There is huge amount of information available to today’s organization managers and this had meant that managers are increasingly relying on management information system to access the exploding information. Management Information Systems helps manager to access relevant, accurate, up-to-date information which is the surer way of making accurate decisions. In other way Management Information System helps to clients to entering accurate and simple way in business transactions. When we analyze the research articles, we can see various prejudices about impact of MIS of the researchers in the past decades. Referring to the that literature quotations, simply we can build a theorical knowledge about importance of Management Information Systems (MIS). “Management Information System will give the management a new dimension in managing its knowledge and help in carrying out and maximizing the management’s initiatives in harmonizing the appropriate strategies in the short and long planning”. (Edmondson, 2002) “Organizations that do not have formal Information sharing practices will fail to leverage their managers intellectual capital for business innovation and growth” (O'Neill & Adya, 2007). From above the literatures we can easily perceive that the importance of the role of both middle and top management to maintain a consistent approach to develop, use, and evaluate MIS systems within the any organization. MIS is used at various levels by top-management, middle and even by the operational staff as a support for decision making that aims to meet strategic goals and strategic objectives.

4

2.4 Functional aspects of MIS Most organizations are structured along functional sectors of the organization. These functional structures are usually apparent from an organizational chart, which fundamentally shows authorities and responsibilities of organizational members. Typical functional areas in most organizations are: Accounting, Marketing, HR, Production and so on. The MIS of an organization can be divided along these sectors to produce effective outcomes. We shall briefly discuss a few in the ensuing that functions using of MIS.

•

Accounting Management Information Systems - The AMIS is a subset of an organization’s MIS that provides accounting and financial information plus other information obtained in routine processing of accounting transactions. This subsystem is used to produce external reports, decision support, planning and control, etc.:

•

Human Resources Management Information Systems - The HRMIS plays valuable roles in ensuring organizational success through effective handling of information relating to the personnel in the organization. Issues covered herein include: workforce analysis and planning, hiring, reports, training, job task assignments and many more. Outputs of the HRMIS are in the forms of reports like human resources planning reports, job application reviews profiles, training and skills inventory reports, scheduling and job placement, wage and salary administration and others.

•

Marketing Management Information Systems - This function supports managerial activities in product development, distribution, pricing decision, promotional effectiveness and sales forecasting.

•

Manufacturing Management Information Systems - This is deals with information relating to production process such as the monitoring and controlling of materials, products and services throughout the organization.

Furthermore, the Management Information System has become a vital component of any successful business and is regarded as major functional areas just like any other functional area of a business organization like marketing, finance, production and HR. Thus, it is important to understand the area of information system just like any other functional area in the business. Rather than using above Information Systems in single manner it is good to use Integrated MIS. 5

It is important because all businesses have a need for information on the tasks which are to be performed.

•

Integrated Management Information Systems (IMIS) denotes an “expanded information system that is achieved through systems design of an improved capability by functionally more information systems, or by incorporating a portion of the functional elements of one information system into another”. (Rao et al., 2007).

Therefore, IMIS help managers and workers to analyse problems and visualize complex subjects because it contains information about significant people, places and things within the organization or in the environment surrounding it was a resource like any other commodities. IMIS is used as a tool for solving problems and providing opportunities for increasing productivity, quality and automating the system. An automated system would help management apprec...