CHAPTER ONE

GENERAL INTRODUCTION

1.1 Introduction

During the growth of a competitive global environment, there has been a considerable pressure on most organizations to make their operations, tactical and strategic processing more efficient and effective.  An information system (IS) is a group of components which can increase competitiveness and gain better information for decision making. Therefore, various organizations around the world have chosen to apply this group of components in their associations (Spalding, 1998). Consequently, the organizations decide to implement IS in order to improve effectiveness and efficiency of the organizations. Information systems have become a major functional area of business administration especially in Arica. The systems nowadays play a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of the business (Havner et al, 2004).

According to Ein-Dor and Segev (1978), information systems become a management information system (MIS) when is applied to improve management by directors of the organization. This system can improve the performance of the management. MIS is a collection of Manpower, tools, procedures and software to perform various business tasks at various levels in the organization (Tripathi, 2011). This system has three basic levels: operational, middle management, and top management where the information is passed from bottom to top (Tripathi, 2011). Moreover, MIS is one of the important functions of management which plays an important role in providing information that is required for crucial decision making which directly affects the performance of the organization (Murthy, 2006).

The addition of information technology (IT) to the human resource industry has revolutionized the contemporary workplace. Human resource (HR) professionals now have an increased capacity, not only to gather information, but also to store and retrieve it in a timely an effective manner. This has not only increased the efficiency of the organization but also the effectiveness of the management functions. The twenty first century is characterized as the knowledge century (Chin-Loy and Mujtaba, 2007).

Moreover, information systems produce information to satisfy the needs of both the management and operations systems as well as the need of parties external to the organization. This information reflects the internal activities of the organization, competitive actions, environmental and sociological interest and political and financial trends. It must represent what has happened, what is happening, and perhaps most important of all, what will happen. These information requirements exist with equal importance in private industry, educational institutions, governmental organizations, and other organization.

 The growth of data and information processing helps in the growth of organizations especially Tikar Cooperative Credit Union (Tccul) hence, the management processing of information can be done in better ways. MIS helps the organization to assess its critical information (Wadhwa 2006).what makes management systems the most exciting topic in business is the continual change in technology, management use of the technology, and the impact on business success. New businesses and industries appear, old ones decline, and successful firms are those that learn how to use the new technologies.

There are three interrelated changes in the technology area; the emerging mobile digital platform, the growing use of ‘big data’ and the growth in ‘cloud computing’ where more and more business software runs over the internet. IPhones, iPads, BlackBerrys and Andriod tablets and smartphones are not just gadgets or entertainment outlets. They represent new emerging computing platforms based on an array of new hardware and software technologies. Managers routinely use online collaboration and social technologies in order to make better, faster decisions. As management behavior also changes. By connecting employees working on teams and projects, the social network is where work gets done , where plans are executed , and manage. Collaboration spaces are where employees meet one another even when they are separated by continents and time zone. The strength of cloud computing of the mobile digital platform allow organization to rely more on telework, remote work, and distributed decision making. This same platform means firms can outsource more work, and rely on marketers to build value. It also means that firms can collaborate with suppliers and customers to create new products, or make existing products more efficiently. You can see some of these trends at work in the interactive session on management. Millions of managers rely heavily on the mobile digital platform to coordinate suppliers and shipments, satisfy customers, and manage their employees. A business day without these mobile device or internet access would be unthinkable. As you read this case note how the emerging mobile platform greatly enhances the accuracy, speed, and richness of decision making.

1.2 Statement of the Problem

Numerous research and case studies have indicated a high rate of failure among many organizations adopting management information system. MIS projects are known to have a high cost and time involved. Many organizations worldwide that have adopted MIS have not realized the benefits of their systems. Furthermore, the issue of inadequate facilities for proper MIS implementation have made communication challenging at Tccul and this has greatly delayed the growth of this organization, equally, the lack of sufficient funds to hire MIS specialist to install good MIS systems for Tccul has led to the constant failure of operations and the growth of this organization has been seriously delayed.

1.3 Research Questions

1.3.1 Main Research Question

What is the impact of Management information system in organizational performance?

1.3.2 Specific Research Questions

1. What is the role played by MIS in time management at Tikar cooperative credit union Ltd?
2. What is the role played by MIS in record keeping at Tikar cooperative credit union Ltd?
3. What is the role played by MIS in decision making at Tikar cooperative credit union Ltd?
4. What role played by MIS in improving work efficiency at Tikar cooperative credit union Ltd?

1.4 Research Objectives

1.4.1 Main Research Objective

To assess the impact of Management information systems in the growth of Tikar cooperative credit union Ltd.

1.4.2 Specific Research Objectives

• To examine the role played by Management information system in time management at Tikar cooperative credit union Ltd.
• To evaluate the role played by MIS in record keeping at Tikar cooperative credit union Ltd.
• To assess the role played by MIS in decision making at Tikar cooperative credit union.
• To investigate the role played by MIS in improving work efficiency at Tikar cooperative credit union Ltd.