Role Of Computers In Management Information System
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INTRODUCTION
1.1 THE EVOLUTION OF MANAGEMENT INFORMATION CONCEPT
For as long as men store to accomplish task, make decision about scares resources in uncertain situations management will continue to need information.
In this managerial world of increasing uncertainty due to rapid change, information becomes the key to management effectiveness. Today’s manager faces a confusion of potential sources of information, he has to determine what information he needs. This is now a new and crucial management function. The idea of an information system to support management and decision making pro-dates the use of computers, which have extended the organizational capabilities for implementating such a system. One can conveniently discuss management information system without computers, but it is the power of the computer which makes management information possible. The question is not whether a computer shall be used in management information system but the extent to which various processes shall be computerized.
As organizations have increased in complexity the heed for co-ordination of the different parts arises. These parts must be properly coordinated so that it makes a meaning whole. As competition has increased and resource scarcity has left organizations on the premise of failure, the use of efficient information as a criterion for the evaluation of organizational effectiveness has gained momentum. The changing environment of organizations and the resultant uncertainty has brought about renewed effort for effective information management. In order to achieve this effective information management, the information system has to be computer based.
Computers are basically electronic device which are capable of storing data, performing arithmetic and logical operations and specific operations. They are used in such important areas like – Accounting, Banking, Business organization etc. Ti provides information in area such as payroll, payslip, stock-keeping and many other information relating to the entire organization. There are various ways in which computer can be used to provide information for a business organization.
Information provided by the computer can used in the present day to day running of the business and for futuristic purpose that is predict or for forward looking, for the basis of trends and forecast derived from the use of forecasting technique and the it also serve as a means of responding to changes at the right moment. It also serves as a means of providing brother internal, external, strategic operation of the organization.
The idea of a computer-based information systems does not mean complete automation. The man-to-machine system concept implies some tasks are best perfumed by man, while others are best done by machine. For many problems, the man and machine form a combined system to get them completely sowed.
the fact that management information system is computer-based means that designers must have a good knowledge of computers and their use in information processing. The man-to-machine concept means that the designer of management information system should understand human capabilities as information processors and human behaviours in decision making.
1.2 STATEMENT OF THE PROBLEM
Initially, data processing was done manually. This was however flawed with a lot of errors and did not keep to time. With the invent of the computer, things changed. Therefore, it is now necessary to know how computers, are used in the processing of data and what role it plays.
How should the information be provided to help the manager in achieving their set objectives? What are the strength of computer? These are the cases this study intend to look into.
1.3 SCOPE AND LIMITATIONS OF THE STUDY
The scope and delimitation’s of this study is limited to a case study of National Fertilizer company of Nigeria (NAFCON) onne. Even within the company, only those workers whose jobs are in one way or the other related to the use of computers were involved in the interview and the questionnaire. Other information were obtained from textbooks, journals, magazines and unpublished handouts.
1.4 OBJECTIVES OF THE STUDY
The objectives of the study is to find out the following
1. What management information system is all about.
2. what are the difficulties usually encountered in trying to gather data for management usage
3. what role has the computer come to play in management information system.
4. whether to encourage or discourage companies for processing their data.
5. to find out the problem usually associated with management information system.
6. to survey other types of information system and their characteristics.
7. to find out the role of management in the development, implementation and use of computerized information system..
8. to find out the attitude of users to the computerized system.
9. to examine different application packages that could be used in processing storage and retrieved of information for management consumption
HYPOTHESIS
1. The role of computers in management information system.
2. Smaller organizations should not be encouraged to use computers except it is most relevant.
3. The disadvantages of the use of computers in general is legible.
SOURCES OF DATA
Data here obtained from the following sources
1. THE CLOSED QUESTIONNIRE
Where the respondent’s answers will be restricted to the answers provided and a space provided against, which he ticks his answers.
2. THE OPEN QUESTIONNAIRE
Where the respondents is allowed to express his or her view about the questions asked. Some spaces will be left for such answers.
3. THE FACE-TO-FACE INTERVIEW
This involves only the unstructured interview where the questions emerge from the answers given to the previous questions.
1.5 DEFINITION OF TERMS
Management information system is made up of, three important concepts, namely MANAGEMENT, INFORMATION AND SYSTEM. Efforts shall be made to define and elaborate on each of these terms.
1. MANAGEMENT
Management has been defined by several authors in different ways. However, Richard D Brown and George J. Petrello (1979), defines it as:
“The process by which those in authority plan, organize, and control a business in an effort to make it successful:.
Jerry M. Rosenbery (1983) in his book Dictionary of Business and Management defines it under two sub-headings.
GENERAL: The individual or group of individual responsible for studying analyzing, formulating decisions, and initiating appropriate actions for the benefit of an organization.
ADMINISTRAION: The above authors have defined management in their diverse ways, but they are all talking about the same thing. Hence management can be defined more embarking as:
“The factor of production which is responsible for planning, organizing, staffing, directing and controlling all other aspects of production such as land, labour, capital, machine and materials.
FUNCTIONS OF MANAGEMENT
The functions of management regardless of the level are as follows:
1. PLANNING:
This is a mental managerial activity involving the arrangement of multiple linked decisions on ends and on means to accomplish a long-range, or major objective. Planning involves two key concepts. Developing the goals an organization seeks to attain, and deciding on the meas to achieve them.
ii. ORGANIZING
This involves the development of a structure which groups, assigns and co-ordinates activities by delegating authority, offering responsibilities, and requiring accountability.
iii. STAFFING
Staffing involves selecting, training and assigning of personal to specific organizational activities.
iv. DIRECTING
It simply means “putting plans” and people in motion. Outstanding plans and an excellent organization will accomplish noting unless people are actually put to work, doing the right job and going it correctly. Directing is a process of guiding and motivating people in the organization to do work needed to accomplish the company goals. It in dudes telling and showing subordinates what jobs to do and how to do them and detecting errors and seeing that they are corrected.
V. CONTROLLING
The final function of management is controlling. It is mainly a feedback process. It involves evaluating the performance of the firm and its parts and making changes to improving operations.
TYPES OF STSYEMS
1. PHYSICAL AND ABSTARCT SYSTEM
A physical system is a set of element which operates together to accomplish an objective.
An abstract system on the other hand is an orderly arrangement of independent ideas or construct.
2. DETERMINISTIC AND PROBABILISTIC SYSTEMS
A deterministic system is one which operates in a perfectly predicable manner. The interaction among the parts is known with certainly. An example of this, is a computer programme which operates strictly according to instruction.
The probabilistic system can be described in terms of probable behaviour but a certain degree of error is always attached to the prediction of what the system will do. An inventory system is an example of a probabilistic system because the quality of stock at any given time cannot be know but the number of order can be known.
3. CLOSED AND OPEN SYSTEM
A closed system is defined as a set of interacting elements operating without any exchange with the environment in which they exist. A computer program is an example of this because it accepts only previously defined inputs, process them and provided a previously defined output.
An open system is the reverse of the closed system because it exchanges and interacts with the external environment
DEFINITION OF MANAGEMENT INFORMATION SYSTEM
According to Joseph T. Straub (1979) Management information system is:
“A system which provides managers with information to help them control operations”
it is also defined as:
“A formal method of making available to management the accurate and timely information necessary to facilitate the decision making and enable the organization’s to be carried out effectively “.
(James A.F. Stoner)
Harld Koontz and Heinze Wethrich defines it as:
“Any formed system to gather, integrates compare, analyze and disperse information internal and external to the enterprise in a timely and external to the enterprise in a timely effective and efficiencies manner”.
For the purpose of this project work however, Management information system shall be defined as:
“The formed method by which management gathers, compares, analyses, processes, stores and retrieves accurate information in a timely, effective and efficient manner to aid in the decision making process of an organization”.
STRUCTURE OF THE MANAGEMENT INFORMATION SYSTEM
The four major components of the above model are the internal report system, the management intelligence system, the research system and analytical system.
THE INTERNAL REPORT SYSTEL
This is the most basic sources of information, it concludes reports on orders, sales, inventory levels, receivable, payable. Analysis of information from this source enables management to spot important opportunities and problems.
THE INTELLIGENCE SYSTEM
This is used by managers to get information about pertinent development in the environment.
THE RESEARCH SYSTEM
This is done by surveying in a focused study on specific problems and opportunities.
THE ANALYSIS SYSTEM
This is the most modern source of information retrieved of stored information from computer and also the analysis of some via programmed models.
CERTIFICATION III
DEDICATION IV
ACKNOWLEDGEMENT V
TABLE OF CONTENTS VIII
CHAPTER ONE
INTRODUCTION 1
1.1 THE EVALUATION OF MANAGEMENT INFORMATION CONCEPT 1
1.2 STATEMENT OF PROBLEM 4
1.3 SCOPE AND LIMITATIONS OF THE STUDY 4
1.4 OBJECTIVES OF THE STUDY 5
HYPOTHESIS 4 6
SOURCES OF DATA 6
1.5 DEFINITION OF TERMS 7
I. MANAGEMENT 7
Function of Systems 8
2. INFORMATION
Types of Systems
DEFINITION OF MANAGEMENT INFORMATION SYSTEM STRUCTURE OF THE MANAGEMENT INFORMATION SYSTEM
CHAPTER TWO
LITERATURE REVIEW 15
HISTORICAL BACKGROUND 15
INFORMATION AND ORGANIZATION 17
HUMAN AS INFORMATION PROCESSORS18
OTHER FORMS OF INFORMATION SYSTEM 21
CHAPTER THREE
INFORMATION 35
CHAPTER FOUR
RESEARCH METHODOLOGY 55
CHAPTER FIVE
PRESENTATION AND ANALYSIS OF DATA 58
DISCUSSION OF FINDING 83
RECOMMENDATION 84
CONCLUSION 85
BIBLIOGRAPHY 88
APPENDIX 90