THE ROLE OF MANAGEMENT INFORMATION SYSTEM IN

ORGANIZATIONAL DECISION MAKING: (A CASE STUDY AT

ETHIO-TELECOM, DESSIE BRANCH)

This Research Paper is Submitted to the Department of

Management, Faculty of Business, Alkan Health Science
Business and Technology College in the Partial Fulfillment of
the requirement for the Bachelor of Arts (BA) Degree in
Management

Prepared By:
Name ID.No.
1. Abdu Wasye--------------------------------002/10
2. Foziya Ali-----------------------------------022/10
3. Birhan Asfaw------------------------------ 014/10
4. Gumataw Mekie----------------------------025/10
5. Mandefro Birhanu------------------------ 036/10
6. Foziya Mohammed-------------------------037/10
7. Rehima Mohammed------------------------052/10
8. Yitbarek G/Medhn------------------------- 067/10

Advisor: Arega. E (MA)

August 2020

Dessie, Ethiopia
Acknowledgment

First of all, we would like to thank GOD, for his unlimited willingness and the
almightily and the most pass not to finalize and perform this study. Secondly,
deepest gratitude goes to Arega.E (MA) for his wonderful consultancy and
effective advisory role throughout this study. Finally, our acknowledgment goes
to different individuals including the manager of Ethiopian Telecommunication
Dessie Branch and the employees for giving information and providing different
support for the study.
Table of Contents

Acknowledgment..............................................................................................2

List of Tables.....................................................................................................i

List of Figures...................................................................................................ii

Abstract............................................................................................................1

CHAPTER ONE.................................................................................................2

INTRODUCTION...............................................................................................2

1.1 Background of the study..........................................................................2

1.2 Statement of the problem.........................................................................3

1.3 Objective of the study..............................................................................5

1.3.1 General Objective...............................................................................5

1.3.2 Specific objectives..............................................................................5

1.4 Significance of the study..........................................................................5

1.5 Scope of the study...................................................................................6

1.6 Limitation Of the study............................................................................6

1.8 Organization Of the study........................................................................6

CHAPTER TWO..............................................................................................7

LITERATURE REVIEW...................................................................................7

2.1 Definition of information, system& information System...........................7

2.2.1 Information........................................................................................7

2.1.2 System...............................................................................................8

2.1.3 Information System...........................................................................8

2.1.4 Information system resources............................................................8

2.1.5 Types of information system............................................................10

2.2 Management information system...........................................................11

 2.2.1 Role of the management system.......................................................12

2.2.2 Database management system (DBMS)............................................13

2.2.3 Decision support system..................................................................13

2.3 Information Decision making.................................................................16

2.3 .1 Decision making.............................................................................16

2.3.2 Types of decision making.................................................................16

2.3.3 Levels of managerial decision making..............................................16

2.3.4 Characteristics of decision making...................................................18

2.4 Telecommunication................................................................................20

CHAPTER THREE...........................................................................................20

RESEARCH METHODOLOGY.........................................................................20

3.1 Research design and strategy................................................................20

3.2 Data source and type.............................................................................21

3.3 Sample and sampling techniques..........................................................21

3.4 Methods of data collection and instrumentations...................................22

3.5 Methods of data analysis & interpretation.............................................22

CHAPTER FOUR..........................................................................................23

4.0 DATA ANALYSIS, INTERPRETATION AND PRESENTATION....................23

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENT........................24

4.2 analysis of Part II questionnaires...........................................................26

CHAPTER FIVE...............................................................................................34

CONCLUSIONS AND RECOMMENDATIONS...................................................34

5.1 Conclusions...........................................................................................34

5.2 Recommendations.................................................................................36

Reference........................................................................................................38

Appendix........................................................................................................39
List of Tables
Tables
pages

Table 4.1 Distribution of respondents’ demographic characteristics -----------22

Table 4.2 Use of MIS in decision-Making Process----------------------------------24

Table 4.3 Individual’s Impact on the flow of information-------------------------24

Table 4.4 Current MIS practice and lower-level management-------------------26

Table 4.5 MIS to make helps to make reliable and fast decision----------------27

Table 4.6 response on the corporation skilled manpower and equipment ----27

Table 4.7 Response on the system to store data-----------------------------------29

Table 4.8 Response on the challenges and prospects Of

MIS practice in the branch ---------------------------------------------30

List of Figures
Fig.4.1 Respondent Current position-----------------------------------------------23

Fig.4.2 Response on the capacity database center ------------------------------25

Fig.4.3 Employee attitude towards MIS--------------------------------------------29

Abstract
The study focuses on identifying the role of MIS in organizational decision
making in Ethiopian Telecommunication, Dessie Branch. The objective of this
study is to assess the role of management information systems in organizational
decision making at Ethiopian telecommunication Dessie Branch. To answer the
basic questions of the study, the researchers used both primary and secondary
sources of data. The primary data was obtained using questionnaires, while the
secondary data sources were gathered from different books, websites, articles,
and documents. The sample size of the study was determined based on the
probability sampling technique from which stratified sampling was employed.
the corporation should bull its employee’s performance that is by giving training
and development on the management information system, and help them to get
access to the latest information.

To analyze the collected data from various sources, the researchers used
descriptive types of data analysis tools. Among those tools, the researchers used
tables, piecharts, bar graph hand percentages. Management Information
Systems is a useful tool that provided organized and summarized information in
proper time to decision-makers and enable making an accurate decision for
managers in organizations.

The corporation should also create a strong network among departments to have
a fast flow of information between them and avoid factors which are hindering
the flow of information that is poor interrelation among departments, time
constraint, frequent interruption of the network, poor relationship between
management and employee, limited access of internet and so on. The corporation
should also improve the decision store system from a manual system to a
computerized system because such a system is easily exposed to deterioration
and time consuming to assess the previous activities.
 CHAPTER ONE
INTRODUCTION

1.1 Background of the study

The development of advanced electronic equipment realized that organizations

cause computer-based information systems for planning, controlling, decision
making, and problem-solving rather than waiting for reports of the traditional
method. This new type of information usage in organizational decision-making
comes to be known as a management information system (MIS) or computer
information system (CIS). Each consists of five related components hardware
software procedure and database. The goal of a management information
system is to enable managers to make better decisions by providing quality
information (O, Brien, 1996).

In many ways, managers exert a lot of effort in making decisions or collecting

information to make decisions. Moreover, in many organization days to day
decisions embodied in the methodology, rule of the philosophy of the company
manager is encouraged to collect data and follows the decisions that resulted
from the experience. The decision process problem involves collected data,
identified problems, making choices, and implementation (post and Anderson,
1997).

MIS helps to decide structured or programmable decision and non structured

or non-programmable decision makings. A structured decision involves a
decision needed and that can be specified in advance. While unstructured
decision involves a situation where it is not possible or desirable to specified in
advance most of the procedures to follow (O Brien, 1996).

The development and usage management information system is modern and

recent phenomena in all organizations particularly Ethio- telecom is related to
the use of appropriate information that will lead the corporation to have better
planning decisions and results.

Decision making is the process of identifying and choosing alternatives choices

on the value and performance of decision-makers. Making a decision implies
that there are alternatives based on the values and preferences to be
considered, and in such a case we want not only identified as many as of the
alternatives as possible but to choose one that has the highest probability of
success. And that best fits with our goals, desires, lifestyle, values, and so on.

A meaningful decision making requires that workers can exercise some

influences over their work and condition under which they work. There are two
forms of employee involvement in decision making. The first one is direct
involvement refers to those forms of participation where individual workers are
involved in the decision making process that affect their every day works
particularly where the respective decision of the main body of workers
participation in strategic decision making ( O Brien,1996).

So it can be said that decision making is a process that depends on the

information system. This information system can be established either
manually or by using a computer. Effective decision making is the precondition
of organizational success and it relies on efficient information systems. An
efficient information system means information systems that reduce time, cost,
complexity, and data redundancy. To design an information system, the system
designer should consider the factors that may make a system efficient.

Therefore, this study tried to assess the role of management information

systems in organizational decision making in the case of Ethio-Telecom, Dessie
Branch.

1.2 Statement of the problem

Management information system plays a crucial role In decision making and

other activities in the living world, we are living in an emerging global
information society with the global economy, that increasingly dependent on
the creation management and distribution of information is a basic in today
society, people & many nations no longer live in an agricultural society, where
the majority of the workforce consists factory workers (O Brien, 1996).

MIS is important in such an atmosphere for decision making for public and
private, as well as government organizations. It assists or helps managers in
decision making and problem-solving (Academia/2014).

MIS examines obstacles that limit the role of MIS in decision making during a
crisis (Citesesrx/2014). MIS performs vital roles in any types of organization:
support business operation and it helps store management where better
decision and attempt to gain a strategic competitive advantage, for example,
the decision on what lines of merchandise need to be added or discontinued or
on what lines of merchandise need to be added or made after an analysis
provided by MIS. This is not only the way to gain an advantage over other
retailers in the completion of customers (O Brien, 1996).

The MIS department headed by a single manager that person often is called the
chief information officer (CIO). The CIO position might be advice president or
one level below that. A major portion of this job involves searching for many
ways in which the information system can help the company. In particular, the
CIO searcher for and advocates the strategic use of MIS.
The goal is to use the computer in some way that Affects customers to provide
an advantage over the competitors. CIO is although responsible for organizing
the MIS department to fit the need of the company. If no one in this advocacy
evaluates the existing system and comparing them to new products, an
organization is probably not often going to get new equipment. Even when
many users are dissatisfied with an existing system, they will have a better
chance of acquiring new technology if they can voice their complaints through
on highly place person. Along these lines, the CIO is responsible for long-run
planning in terms of information technology (Anderson, 1997).

In many organizations, massive data is stored on a centralized computer. This

basic data is often mentioned by them MIS department users that lead this
data for various reports. In terms of hardware, the MIS department is
responsible for providing the Physical connections between the machines.
Besides the initial installation, the considerable effort can be required to
maintain these networks. Modern local area networks have many components
scattered throughout the firm’s buildings, maintenance, and correct the
problem that arises. In terms of software, the MIS department has to make
sure that the information is providing information that can be certain the users
are authorized to access the data (Ibid).

Throughout the organization, the management information system faces a lot

of constraints to play a role in decision making. For example, lack of awareness
in using MIS, Lack of Skilled manpower, MIs requires a huge amount of costs,
Lack of enough computers, using the manual and traditional system, less
adaptation with the latest technologies, and poor interdepartmental
relationships. Regardless of this, obtain basic information with the role of MIs
in organizational decision making is found to be critical. Therefore, this study
is tried to assess the role of management information system in organizational
decision making in the case of the Ethiopian telecommunication Northeast
region, Dessie Branch, and tried to answer the following basic questions.

Basic Research Questions

  How does information flow in each department to support decision
making?
 How does the corporation know whether the decision is held effectively or
not?
 What are the challenges and prospects of MIS practices in the branch?

1.3 Objective of the study

1.3.1 General Objective

The main objective of this study is to analyze the role of management

information system (MIS) in organizational decision making of Ethio- telecom,
Dessie Branch.

1.3.2 Specific objectives

The specific objectives of this study are:
 To identify the challenges and prospects of MIS practice in the branch
 To identify how information flow in each department to support decision
making
 To assess how the organization know whether the decision is held
effectively or not

1. Significance of the study

This study has a pivotal role in the Ethiopian telecom Dessie branch as well as
different corporation owners. The finding of this study may help the
corporation to undertake appropriate measures in dealing with a problem
related to the use of MIS in organizational decision making. Moreover, this
study may contribute a piece of knowledge to the literature on the role of MIS
in organizational decision making. Furthermore, the finding of this study might
be helpful for policymakers and practitioners in their attempt to promote the
use of technology in organizational decision making. Finally, this study may
also serve as a reference for other researchers who were interested in related
topics. In general, this study will be used for the following bodies:

 For the government

  The ability to responding quickly to any unexpected
situations.
 The ability to save time and cost.
 For policymaking

 For society
 Society needs to get valuable, timely, and accurate
information.
 For the different researchers as a reference
 It is important for other researchers as a reference, guidance, and
base for conducting other related researches.
 For the researcher
 It is important for getting knowledge, experience, skill, and
ability…about research. Moreover, the researcher translates
theoretical knowledge into practice.

1.5 Scope of the study

This study had geographical, conceptual, and methodological delimitations.

This study was conducted on Ethio Telecom Dessie Branch, South Wollo of
Ethiopia with a specific title of the role of MIS in organizational decision
making. It provides the right information needed in the decision-
making process and helps the organization control, planning, and
operational functions to be carried out effectively. It produces fixed, regularly
scheduled reports based on data extracted and summarized from the firm's
underlying transaction processing systems (TPS) helps to middle and
operational level managers to provide answers to structured and semi-
structured decision problems.

1.6 Limitation Of the study

Like other studies, this study was also not done without limitations. One of the
limitations was its design. In a sense, the cross-sectional survey design in
which the data to be used for the study was gathered at one point in time from
employees of Ethio telecom Dessie Branch. Because of the time and financial
constraints, it was better to employ a longitudinal survey design to collect data
from employees of the Ethio telecom Dessie branch at different times during
their stay in the organization may vary.

1.7 operational definitions of key terms

 Transaction Processing System (TPS) This is also referred to as the
data processing system. It performs the essential role of collecting and
processing the daily transactions of the organization. They serve at the
operational levels of the organization. Examples of transactions include
purchase payroll, reservation, invoices, payments, shipping,
registrations, orders, and sales.
 Expert System (Specialist) (ES) is an extension of the decision support
system. It is a programmed decision-making information system that
captures and reproduces the knowledge and expertise of experts and
then simulates the thinking or actions of that expertise to help users
with less expertise.
 MANAGEMENT INFORMATION SYSTEMS (MIS) is an information
system application that provides for management-oriented reporting.
These reports are usually generated on a predetermined schedule and
appreciate a pre-arranged format. It serves the management level of the
organization with online access to the organization’s current performance
and historical records. MIS primarily serves the functions of planning,
controlling, and decision making at the management level.
 EXPERT SYSTEMS (ES) Expert systems are programmed decision
making information systems that capture and reproduce the knowledge
and expertise of an expert problem solver or decision-maker. It is
implemented with artificial intelligence that captures, stores, and
provides access to the reasoning of the experts like a human being.

CHAPTER TWO

1.8 Organization Of the study

This study is organized into five chapters. The first chapter discusses the
background of the study, the statement of the problem, research questions, the
objective of the study, the significance of the study, the scope of the study, and
limitations of the study. The second chapter deals with the literature review.
The third chapter contains methodology, research design, sample and sampling
technique, source of data, method of data collection, and instrument. The
fourth chapter deals with data analysis and interpretation and the fifth chapter
studies about conclusions and recommendations.

LITERATURE REVIEW

2.1 Definition of information, system& information System

2.2.1 Information

Information is data that has been processed into a form that is meaningful to
the recipient and is of real perceived value in the current perspective decision,
Information is more than raw data (Luicas, 1999:p.23) Information is data that
has been processed a great use. That purpose might be to affect the
information for values or causes be statutory requirements but in variability, it
is to aid save kind of decision (Zwass, 1998:p.5).

2.1.2 System

A system is a group of interrelated components working together towards a

common goal by accepting input and producing output in an organized
transformation process such system save times called dynamic system which
has three components or functions. Input involves capturing and assembling
elements that enter the system to be processed. For example, row material,
energy, data, and human effort, must be secured and organizes for processing.
Processing involves an information process that converts inputs into outputs.
Examples are the manufacturing process, human Breathing process. Output
involves transforming elements that have been producing at the transformation
process that ultimate destination. For example, finished products and
management information must be transmitted to their human users. Feedback
is data about the performance of a system. For example a data about sales
performance (Oberlin, 2003:p8)

2.1.3 Information System

An information system is an organized combination of people, hardware &

software, communication networks, and data resources that collects, and
disseminates information in an organization. People have relied on information
systems to communication channels or networks and stored data or data
resources) since the dawn of civilization. (A.O, Brien, 1996:p.6)
2.1.4 Information system resources

The basic information system shows that an information system consists of

giving major resources, peoples, hardware, software data & Networks.

1. People resource: People are required for the operation of all information
systems. These people resource include end-users is specialists.

 End users also called users or clients: are people who use the
information system of the information it produces. They can be
accountants, salespersons, engineers, or managers. Most of us are
information system end-users.
 Is a specialist are people who develop and operate information system
they include system analysts, programmers, computer operators, and
other Managerial, technical and clerical IS personnel.

2. Hardware resource: hardware resources include al physical device and

materials used in information processing specialty it includes not only
machines such as computers and other equipment, but also data media that is
tangible objects on which data are recorded from sheets of people to magnetic
or optical disks. Examples of hardware in the computer-based information
system are

 Computer system: - which consists of central processing units containing

a microprocessor and a Variety of interconnected peripheral devices
 Computer peripherals: - which are devices such as kea board electronic
mouse for the input of data and commands, a video screen or printer for
output of information, and magnetic or optical disk for storage of data
resources

3. Software resource: all set of the information processing instruction. This

generic concepts of the software include not only the set of operation
instruction called programs which direct and control hardware, but also the set
of information processing instructions needed by people, called procedures
4. Data resources:- data is more than raw materials of information systems.
Managers and information system professionals here broadened the concept of
data resources.

5. Network resources telecommunication networks like the internet, intranet,

and extranet have become essential to the successful operation of all types of
organizations and their computer-based information systems.
Telecommunication networks consist of: computers, communication
processers, and other devices interconnected by communication, media, and
controlled by communications software. The concept of network resources
emphasizes that communication networks are fundamental resource
components of all information systems.

6. Communication media:- Example includes twisted-pair wire, coaxial cable,

fiber optics cable, microwave systems, and communication satellite systems.

7. Network support: This includes all of the people, hardware, software, and
data resources that directly support the operation and use of communication
networks. The concept of network resource emphasizes that communication
technologies and network are the components of a fundamental resource of all
information system (A.O, Brien, 2003:p.11-14)

2.1.5 Types of information system

Operational support system (OSS) information systems have always been

needed to process data generated by and used in operations. Such an
Operations Support system produces a variety of information on products for
internal and external use. However, they do not emphasize on producing for
the specific information products that can best be used by managers. The role
of a business firm’s operation support system is to efficiently process the
business transaction, control the industrial process, support enterprise
communication, and collaborations and update the corporate database.

Transaction operation system (TOS) an important example of an operation

support system or OSS that records and processes data resulting from a
business transaction. The process transaction in two basic ways. In batch
processing, transaction data are accumulated over some time and process
periodically. In real-time or online processing data are processed immediately
after a transaction occurs.

Process control system (PCS) Monitor and control physical process for an
Example petroleum refinery uses electronic sensors linked to computers to
continually monitors chemical processes and make instant or real-time
adjustments that control the refinery process.

Management support system (MSS) it provides and support for decision

making by all types of management or mangers and business professionals is a
complex risk: Conceptually several major types of information system support
a variety of decision making responsibility.

The management information system provides information in the form of

reports and displays to managers and many business professionals. Decision
support systems (DSS) give direct computer support to managers during the
decision-making process.

Executive information system (EIS) provides critical information from a wide

variety of internal and external sources in easy to use displays to executives
and managers. (A, O’ Berline, 1996) Other classification of information system

Expert system: the frontiers of an information system are being affected by

development in artificial intelligence (AI). Artificial intelligence is an area of
computer science whose long-range goal is to develop a computer that can
think as well as see, hear, walk, talk, and feel. One of the most practical
applications of AI is the development of an expert system is a knowledge-based
information system; that uses its knowledge about the specific area to action
an expert consultant to users

Knowledge management system many organizations are developing Knowledge

management system KMS to manage organizational learning and business
know-how KMS helps knowledge workers create, organize and share important
business knowledge where ever and whenever it is needed.

Strategic information system: the strategic role of information system involves

using information technology to develop products, services, and capabilities
that give a company strategic advantage over the competitive forces it faces in
the global market place. This creates a strategic information system, an
information system that supports or shape the competitive position and
strategies of an enterprise.

Business information system: as feature managerial and end-user, it is

important for you to realize that information system direct support both
operations and management activities in the system direct support both
operations and management activities in the business function of accounting,
finance, human resource management, and marketing, marketing & operation
management. Such a business information system is needed by all business
functions.

2.2 Management information system

A management information system (MIS) is a system that provides information

to manage organizations effectively.MIS is regarded to be a subject of the
overall internal control procedures in a business, which cover the application of
people, document, technologies, and procedures used by management
accountants to solve business problems such as costing a product, service, or
business-wide strategy

Management information systems are distinct from regular information system

in that they are used to analyze another information system in that they are
used to analyze other information system applied in operational activities in
the organization (Http:llen .wikipedia.org/wiki management information
system)
Now a day the term is almost exclusively reserved for the computerized system.
These consist of hardware and software that accept data and store, process,
and retrieve information. ( Curtis and CObham 2002 p.24)

2.2.1 Role of the management system

Management Information system roles Information systems don’t magically

appear in the organization. Considerable efforts, time, and resources must be
devoted to building and maintaining information systems. One of the most
important considerations in designing an information system is to solve the
right problem. Identifying the business problem and potential solution is the
main purpose of system analysis.

Good information system does not simply materialize from thin air providing
timely, accurate

, and relevant information requires careful planning and support. Creating

effective information involves maintaining hardware, providing software
training and support, supporting and user development, defining and
controlling access to databases, establishing corporate standards, and
researching the competitive advantage of new technologies.

The basic roles of MIS are Hardware administration

Managers should not have to be computer experts to use their computers to

consider the work involved in buying a new computer. The computer industry
has been changing rapidly. Both with personal computers and large computers
major changes occur in computer hardware continually

Software support Software generally requires more support than hardware. Is

staff can help users decide which software to purchase and can install it. Users
need to be trained to use various software features. Whenever workers change
jobs or a company hires new workers they need to be trained similarly
commercial software versions changes almost every year implying more
training for use. Additionally, someone has installed the new copies on the
machines, manuals have to be distributed, and data files sometimes have to be
converted.

Data and database administration

The database is critical to the operation of any company keeping the database
up to date the accurate does not happens by chance large organization employ
a database administrator (DBA) to be responsible for maintaining the corporate
database. The DBA is responsible for maintaining the database, monitoring the
performance of the database management system, and solving day to day
problems that arise with the database.

If no one in this advocate role evaluates the existing systems and comparing
them to new products, an organization Is probably not often going to get new
equipment. Even when many users are dissatisfied with an existing system,
they can voice their complaints through one highly place person. Along these
lines, the CIO is responsible for long-run planning in terms of information
technology (post-Anderson, 1997; p615-618).

2.2.2 Database management system (DBMS)

The database management system is considered an important system software

packages that control the development, uses, and maintenance of the database
of a computer using an organization. ADBMS program helps an organization
uses its integrated collection of data records and files known as the database.
It makes it easy for an employee database to be accessed by payroll, employee
benefits, and other human resources programs. It also amplifies the process of
retrieving information from the database in the form of displays and reports
(MC Leod 1998:P-345)

2.2.3 Decision support system

It is described as the next evolutions that are stepped after the management
information system.MIS support decision making is both structured and
unstructured problem environments. It supports decision making to be
implemented at all levels of the organization ( Indienmba / 2014).

The decision support system is designed to support semi-structured decisions

in a situation in which information is complete and was satisfying is a goal. A
DSS should enable the decision-maker to apply the right decision rules to a
problem rather than using standard rules that may not apply because of
changing conditions.

2.2.3.1 The benefit of decision support system (DDS)

Investment in DSS technology development efforts and support are grown

substantially. Because the new version of DSS is constantly involving, their
costs are difficult to quantify measuring the benefits of DSS also is Difficult
because many of these benefits are qualitative. Some of the benefits are

 The ability to examine more alternatives

 The ability to achieve a better understanding of the business
 The ability to respond quickly to an unexpected situation
 the ability to carry out adhoc types of reporting and analysis
 The ability to provide timely information for control of the operation
 The ability to save time and cost
 The ability to make a better decision. (Schultheis and
Sumner,1998:p477)

2.2.3.2 Decision Support system (DSS) objectives

The major Objectives of DSS are

 Assist managers in deciding to solve the semi-structured problem

 Support the manager’s judgment rather than try to replace it
 Improve the managers’ decision making effectiveness rather than its
efficiency

These objectives are correlated with three fundamental principles of DSS

concepts: problem structure, decision support, and decision effectiveness.
Problem structure: it is difficult to find completely structured problems. The
vast majority are semi-structured this means that the decision support system
is aimed at the area where most problems are found.

Decision support the DSS is not intended to replace the manager. As the figure
below shows the relationship between problem structure and the degree of
support that the computer can provide the computer can be applied to the
structured portion of the problem, but the manager is responsible for the
structured portion applying judgment or institution and conducting analyses.

The manager and the computer work together as a problem-solving team in

solving a problem that falls in the large semi-structured area.

Managers Manager
& Solution
Computer
Computer
Solution
Solution

Structured semi structured unstructured

Degree of problem structure

Decision effectiveness: The objective of DSS is not to make the decision-making

process as efficient as possible. The managers time is valuable and shouldn’t
be wasted but the minimum benefit of using a DSS is a better decision (Mc
leod, 1998: p390)

2.2.3.3 Group decision

A deferent type of groupware tool is designed specifically to help group (teams)

make decisions. Many business decisions involve a group of people. Often, one
person might be responsible for the final decision but meetings are used to
enable everyone to have a say, analyze the potential effects on each area, and
pursued others to accept a decision. Decisions that involve a group of people
have additional completions. Someone has to organize and control the meeting.
During the meeting, people compute to make comments and getting their
opinions heard. Someone has to take not on the meeting and votes have to be
counted.

Bulletin boards can be used to lets everyone express opinions and evaluations.
In the 1980s an additional tool known as a group decision support system
(GDSS) was defined A.GDSS is designed to help managers and reach a
consensus during the meeting (Post Anderson, 1997 p.335).

Information and decision making

According to Hebert A. Simon nobles prize-winning economist and scholar of

management decision making process devices into four activities

 Intelligence activities: search the environment and identify events and

conditions requiring decision.
 Design Activities Develop and evaluate possible course of action
 Choice activities select a particular course of action
 Implementation Activities: Implement the decision and monitoring its
success.

Decision Information Characteristics Ad hoc unscheduled

Unstructured wide scope Strategic

decision
Semi structured decision on permanent

Tactical Decision
Narrow scope

Structured Specified Detailed Operational Decision

Figure 2 relationships between information and decision

2.3 Information Decision making

2.3 .1 Decision making

Making a decision is not a simple activity that takes place all at once. It
consists of several different activities that take place at a different time once a
problem occurred have to be perceived and understood, once a perceive
solution must be designed, choices have to be made about a particular
solution, finally, the solution has to be carried out and implemented (centric
and Tone p.133).

Decisions are made to solve the problem. While solving a problem the problem
solver may make many decisions. Decisions are courses of action that are
taken to avoid or reduce effects or to take advantage of the opportunity.
Decision making is a process of sufficiently reducing uncertainty and doubt
about alternatives to allow reasonable choose to be made from among them
these definition stresses the information-gathering function of decision making.
It should be noted here that uncertainty is reduced rather than eliminated.
Very few decisions are made with absolute certainty because complete
knowledge about all the alternatives is seldom possible. Thus every decision
involves a certain amount of risk. If there is no uncertainty, you do not have a
decision. You have an algorithm asset of steps that are followed to bring about
a fixed result (Harries, 2009).

2.3.2 Types of decision making

According to Norbert Asimov decisions exist on a continuation, with

programmed decisions at one end and non-programmed decisions at other.
Programmed decisions are “repetitive and routine to the extent that definitive
procedures have been worked out for handing them. So that they do not have
to be treated Donavon (as anew) each time they occur”(Mc leod, 1998:p356).

2.3.3 Levels of managerial decision making

Operational level: - consists of day to day operations can decisions. IT at this

level is used to collect data and perform well-defined computation. Most of the
tasks and decisions are well structured in the sense that they can be defined
by an asset of rules or procedures. An important task of the operation level is
to collect data on transactions and operations: hence the transaction
processing system is a crucial component of the organization Is.

An important characteristic of a transaction process system is the ability to

provide data for multiple users at the same time. A special class of TPS
software designed for factory operation is called process control software. This
is concerned with the decision made in the norms day to day operations within
the business. The decision in this area decision is designed to ensure the
effective and efficient use of existing resources to realize budget objectives.

These decisions may involve the treatment of personnel (pre-exam, Hiring and
tiring, the control of inventory and production levels, pricing decision and
aspect of credit control over customer and other forms of accounting and cash
control. Information for operational planning and control is detailed and
immediately relevant (Ulritis and Cobham, 2002p5-9).

A tactical-level decision typically involves time frames of less than a year these
decisions usually results in making decision relatively major chances but stay
within the existing structured of the organization

Most of the information for making a decision which is tactical comes. From
that transaction records that existing structure of the organization and that
has been stored in the computer.

This is a managerial activity normally associated with the middle echelons of

management. Tactical management may involve the allocation of resources
within the departments’ budgets edition on medium-term work scheduling and
forecasting and planning medium-term cash flows.

Information for decision at the tactical level refers to die medium-term between
now and the next few months or year. It will be mainly generated internally
within the organization, although some external information may be necessary
(Curtis and Con ham 2002:p8-9).
Strategic level:- top executives develop overall organizational goal strategies
policies and objectives through long-range strategic planning. They also
monitor the strategic performance of the organization and its overall direction
(A, O’ Berline, 1996:p359).

This was carried out by the most senior management and well deal with broad
issues concerning an organization's development over the long term. To make
strategic decisions senior management needs the information because strategic
planning has a long term time horizon. Much of this information will relate to
the future rather than the present. The characteristics of information are
strategic planning are external sources, highly uncertain, and summarized
rather than highly detailed (A, O’ Berline, 1996).

2.3.4 Characteristics of decision making

2.3.4.1 Phase of decision making

According to Simon (1960) and Mintzberg, laisingrhani, and Theoget (1976),

decision making involves three phases during the first phase, the sales agency
decision-maker reaches for condition cashing for decision. The decision-maker
may be reacting to a problem or may recognize opportunities. In either case, a
gap between the existing state and the assigned state is a necessary condition
for the existing decision problem.

Design is the second phase of decision making during design the decision-
maker develops and analyzes the alternative course of action by either
researching for readymade alternatives or developing an accustom made
solution.

The third phase of decision making is choice during this phase the decision-
maker selects the best alternatives. For a decision situation to occur the
decision making must be aware of the gap between the existing and the desired
state must be monitored to solve the problem and must have the resources to
do so. The type of decision problem and attribute of the decision make both
influences the decision making strategy. (Schulte’s and summer, 1998:p.461)
2.3.4.2 Attributes of decision making

The attributed of decision-makers also affect the type of decision strategies

used. These attributes include perceptual ability, information capability, risk-
taking propensity, and operation level. Perceptual ability many decision-
makers perceive a decision problem. If a decision-maker his experiences
dealing with similar problem-solving situations will not see as complex and as
uncertain as in the care where her background with a similar situation is
limited.

Achieve an optimal standard and prior experience of success or value and

knowledge of results influence this standard. Training young people and
employing them is one way to achieve the organization's objectives because in
long term these people will challenge different obstacles (Schuette's and
summer, 1998:.461).

2.3.4.3Strategies of decision making

The type of decision problem and attributes of the decision-maker influence

whether the decision-maker use maximizes satisfying or incremental zing
strategy (Mac grim man and Tylor.1976). Maximizing without comes of decision
is clear and the alternatives are well established the decision-maker will make
the decision that maximizes the desired outcome. Satisfying because many
decisions are made in a situation of uncertainty, Decision makers are willing to
settle for less than minimum utility. According to Simon, decision making
displays rationally busy while future limits are purposed by experience,
background, and awareness of alternatives in a given decision situation level. A
decision-maker will set up a reasonable organization level & search for possible
alternatives until the final one that achieves this level.

Incrementally the decision-makers attempted to take small steps away from the
existing state toward the desired state. This approach may reflect important
outcomes because alternatives considered are generally familiar to the
decision-maker. (Schulte’s and summer 1998:p.46)
2.3.4.4 Process of decision making

A significant part of the decision making knowing skills is knowing and

practicing good decision-making techniques. One of the most practical
decision-making techniques can be summarized in those simple decision
making steps.

1. Identifying the purpose of role decision. What is exactly the problem to

be solved? Why it should be solved?
2. Gather information. What factors does the problem involve?
3. Identifying the principles to judge the alternatives. What standards and
Judgment criteria should the solution meet?
4. Brainstorm & list the different possible choices, Generate ideas for
possible solutions see more an extending your option for your decision
on my brainstorming tips page.
5. Evaluate each choice interview of its consequences.
6. Determine the best alternatives.
7. Put the decision into action.
8. Evaluate the outcome of your decision & action steps.

2.4 Telecommunication
Telecommunication is a highly technical, rapidly changing field of information
system technology. The communication network is an arrangement where the
sender transmits in a message to a receiver over a channel consisting of some
types of medium.

Telecommunication Network consists of five basic categories

 Terminals: - such as radial play terminals, & others and users.

 Telecommunication processer who support data transmission and
reception between terminal & computers.
 Telecommunication channel and media over which data are terminated
and received.
 Telecommunication channels use a combination of media such as
copper wires, coaxial cables, fiber optic cables, Microwave systems, and
 communication satellites, to interconnect the other components of the
telecommunication network.

Computers of all sizes and types are interconnected by telecommunication

networks So that they can Carrey out their information processing assignments
(A, O’ Berline, 1996).
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design and strategy

The researcher used a descriptive type of research design. This paper is
prepared mainly based on secondary information gathering, reviewing, and
analyzing. Researchers’ observations at different times have been taken into
consideration for insight vision of the study. Primary sources were employees of
the organization, whereas secondary sources were written documents and
some other observed materials of the organization working environment. These
data were collected by using a questionnaire for employees. However, some of
the managerial level employees of different well-reputed organizations have
been consulted through convenience sampling with a set of an unstructured
questionnaire related to information systems. Then the researcher forwarded
conclusions and recommend the organization based on the analyzed data.

3.2 Data source and type

The study intended to use both quantitative and qualitative types of data which
were collected from primary & secondary sources. The primary data were
obtained using questioners. While the secondary source likes books, the
internet and published articles were used as a reference to substantiate the
primary data collected. And also secondary sources of information are required
more for addressing the objectives of the study since it is a basis for
constructing the conceptual framework of the study and questionnaire design.
3.3 Sample and sampling techniques

To draw sample respondents from the total population the study was intended
to utilize probability sampling techniques. From probability sampling
techniques the study used a stratified sampling technique towards selecting
respondents from employees of the Ethio telecom Dessie branch. The sample
size for the study was determined based on the following simplified formula
(statistics for management books) used because it is one of the best methods in
determining the sample size in probability sampling. Based on this formula
and assuming the sampling error 3% and 97% reliability a sample of 63 Ethio
telecom Dessie branch employees randomly selected out of 200 employees. It
was assumed that the standard value at 3% or 0.03.

Then the sample size for this study was computed as follows.

NZ + ( E )2 × ( 1−P )
N=
NZ+22 × Z ( 1−P )

Where N = sample size

N = total no of proportion

Z= the standard rub (Z:32) of the level of probability with 0.97

reliability
200 ( 2.3 ) +(0.03)2 ×(1.0 .5)
E= =62.9=63
200 ( 0.03 ) +(2.30)× 0.5(1.0 .5)

Moreover, the study was utilized stratified sampling with proportion to select
sample respondents. The total population of the study was stratified based on
the department in the Ethio telecom Dessie branch. To end, the department
divided into three which were considered as three strata departments of MIS,
Department of Marketing, and Department of Finance. Then to ensure the
responsiveness of each stratum, the number allocated proportionally to the size
of the population in each stratum using formula.

A = 63Bi Where B = the no of department

200 A = the no of members that will be selected to the sample size
Therefore the sample size in different strata (department) will be shown in the
following table.

Table 1 Sample size determination

NO Department Total The sample will be drawn

1 MIS 110 35
2 Marketing 70 22
3 Finance 20 6
TOTAL 200 63

3.4 Methods of data collection and instrumentations

Data and information in this research were gathered from two main sources
such as the primary and secondary sources of data. Primary data were
collected using self-administered questionnaires. The self-administered
questionnaire was selected because it has the advantages of low cost, saving in
time; respondents have adequate time to give well through answers, validity,
and accuracy. The self-administered questionnaire has both open and close-
ended questionnaires. Open-ended questions offer the advantage that the
respondents were given their own words. Close-ended questions are very
convenient for collecting factual data and easy to analysis; since the range of
potential answers is limited.

The secondary sources of data were acquired from the existing document and
publisher materials within the organization. The procedures for administering
the above tools of data collection were systematically managed by the
researcher.

3.5 Methods of data analysis & interpretation

The analyzing parts were done based on the source of data. After gathering the
data, the researchers arranged the collected data in the form of a group and
summarized the data by using the descriptive technique. The collected data
were represented in the form of tabulation, figures, pie charts, bar graphs, and
a simple percentage. And also the study used both qualitative as well as a
quantitative method of data analysis.
 CHAPTER FOUR

4.0 DATA ANALYSIS, INTERPRETATION AND PRESENTATION

This chapter is developed to analyze the data gathered through questionnaires

to assess the actual situation and to gather opinions of respondents about the
role of management information system in organizational decision making in
Ethio telecom Dessie Branch. Questionnaires were distributed for employees
under deferent departments or staff of the organization MIS unit, and Database
officer. To get the data, 63 questionnaires were distributed to the employees
and all have been fully completed and returned timely. The collected data are
briefly analyzed and interpreted using a table, bar graphs, pie chart, and
percentages in the following sections.

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENT

The demographic information of sample respondents who completed the

questionnaire in this study is illustrated in the table and pie chart bar graph
and percentage. Demographic characteristics of a given organization are very
important for the success of an organization, for example, if a given
organization has more adult than others, the organization becomes more
successful than others.
Table 4.1 Distribution of respondent demographic characteristics

NO Item Respondent

Number Percent

1 sex Male 41 65

Female 22 35

2 age 18 – 25 24 38

26 – 30 17 27

31 – 40 15 24

Above 40 7 11

Total 63 100

3 Education Level Grade 10 & 12 completed

Diploma 7 11

First degree 32 51

Second degree 24 38

Total 63 100

As it can be shown from table 4.1, item 1 regarding the sex of the sample
respondent. Out of 63 respondents, 65 %( 41) of the respondents are males
and the rest 35 %( 22) are female employees. Therefore, this data indicates that
the Ethio telecom Dessie branch has more male employees than females. From
the same table item, No 2 concerning the age of respondent,24(38%) of the
respondents have an age from 18-25 years,17 (27%) of the respondent are
between26-30,15(24%) of them are between 31-40 years and 7(11%) of the
respondents have been within the range of above 40 years. This informs us
that the majority of the employees are young enough to produce and improve
the performance of the organizations to achieve their objectives. According to
(shelties and Sumner, 1998), if organizations give opportunity and empower
young people in the long term, the organization was beneficiary; because young
people are highly motivated than the old ones as we know.

From the given item No 3 regarding the educational level of respondent

7(11%)of them were 10th and 12th Completed,32(51%) of them were diploma
certified,24(38%) of them were first degree holders
and none of them are second degree and above. Therefore, it is possible to say
most of the employees of Ethio telecom are diploma holders and within some
first degree certified.

Pie chart 4.1 Respondent Current position

Respondent status

Top Manager
Senior Managers
Middle Manager
Lower level
Other

The above pie chart 4.1 shows as the respondent status 1(2%) of the
respondent is a top manager in Ethio telecom,4(6%) of the respondents are
senior manager 8(13%) of them are currently middle managers, the majority
means 28(44%) of the respondents are line or lower-level managers and the
remaining 22(35%) reply for the question their current position is out of the
alternatives. From this data, we can say that majority of the respondent are
line or lower-level managers.
4.2 analysis of questionnaires

MIS is a system that provides information needed to manage organizations

effectively. MIS is regarded to be a subset of the overall internal control
procedure in the business. MIS provides information for decision making on
planning, initiating, organizing, and controlling the operation of the subsystem
and to provide a synergetic organization in the process. “Very few decisions are
made with absolute certainty because complete knowledge about all the
alternatives is seldom possible. Thus every decision involves an uncertain
amount of risk. If their no uncertainty, you do not have a decision. You have an
algorithm asset of steps that are followed to bring about a fixed result (Harries,
2014).

Table 4.2 use of MIS in decision-Making Process (Source: Own Computation,

2020)

No Item Respondent
1 How you measure the Number percent
Ethio Telecom Desse
branch in using MIS for
organizational decision
making.
Very good 8 13
Good 19 30
Not Satisfactory 33 52

Can Not Say (poor) 3 5

Total 63 100
Table 4.2 depicted above item No 1 concerning to what degree the corporation
uses MIS in its decision-making process. From all sample respondents 8(13%)
response, the corporation uses MIS very well in its decision process, 19(30%)
reply good, the majority 33(52%) of the respondents replies the usage of MIS in
the decision making process is not satisfactory and the remaining 3(5%) say
poor. According to this data that is possible to say that the application of MIS
in decision making is not satisfactory.

The individual impact of information flow in dividable can be considered as

information system recourse, they are required for the operating system or the
information they produce.

Table 4.3 Individual’s Impact on the flow of information

NO Item Respondent

1 Do you think that the flow of Number percent

information is affected by the
individual participant?

Yes 37 59

No 26 41

Total 63 100

The above table 4.3 may simplify, the question of do you think that individual
participation has an impact on the flow of information? 37(59%) of the
respondent replied that individual participants have an impact on the flow of
MIS. Some of the respondents answered for the question, is the individual
participation influence the flow of information? 26(41%) respondents replied
“No”

The capacity of the database

The database is crucial to the operation of any company, keeping that database
up to data accurate does not happen by chance larger organization. Employee
database administrator to be responsible for main in the corporation database,
monitoring the performance of the database management system, and solving
day to day problems that arise with the database.

“An information system is an organized combination of people, hardware and

software communication networks and data resources that collects, and
disseminates information in an organization. People have relied on information
systems to communication channels or networks and stored data or data
resources since the dawn of civilization (A.O Brien;.2014).

Pie chart 4.2 response to the capacity database center

Response

Yes
No

Source: Own survey, 2020

The above pie chart 4.2 is concerning with the current capacity of the database
center in the corporation, most of the respondents 40(63%) response the
capacity and adequacy of the database center are good and the remaining
23(37%) answers the corporation’s database is capable and adequate.

Management information system practice

Management Information System is a comprehensive and coordinated set of

information subsystem which is rationally integrated and transform data into
information in a variety of ways to enhance productivity in conformance
managers style and characteristics based on established quality criteria (Scott,
1986) Employee’s, lower-level manager, system analysts, programmer,
computer operator and other and another manager, technical and clerical are
personal develop and operate information system.

Table 4.4 current MIS practice and lower-level management

No Item Respondent

Number percent

1 Do you think that the current Yes 32 51

MIS practice is satisfactory?

No 31 49

Total 63 100

2 Do you think that the Yes 43 68

participation of a lower-level
manager has an impact on the
process of decision marking?

No 21 32

Total 63 100

Table 4.4, No 1 regarding with current practice of MIS in the corporation, out of
63 respondents half of them 32(51%) replied for the question is the current MIS
practice is satisfactory, and the remaining half 31(49%) replied the current
practice of the corporation is not satisfied. This data indicated the current
practice of MIS must be improved to ensure effective operations. When do the
respondents reply to the open-ended question what factors are hinder
satisfactory MIS practice in the corporation? Currently, Ethio-telecom is on the
transition period; due to this the current MIS practice is not well defined. Also
  Lack of well-organized way of gathering processing information
 Lack of skilled manpower
 Lack of information system (DSS)
 Lack of sufficient budget etc

From the same table, No 2, 43(68%) replied that the participation of lower-level
managers in decision making has its impact, and the remaining 20(32%) said
no impact. Therefore, it is possible to say that lower-level management
participation has an impact on the process of decision making.

“The goal of MIS is to use the computer in some way that attracts the customer
to provide an advantage over the competitors.” As DuPont (Reality Bytes,13-3),
and also CIO (Chief Information Officer). It is responsible for organizing the MIS
department to fate the need of the company.

MIS helps to make a reliable and fast decision

Making a decision is not a single activity that takes place at one. It consists of
several different activities that take place at different times.MIS helps to make
reliable and fast decisions by providing appropriate information.

Table 4.5 MIS to make helps to make a reliable and fast decision

No Item Respondent
Number percent
1 Dose MIS help the operation to Yes 63 100
make a reliable and fast
decision?
No 0 0
Total 63 100
Source: own computation, 2020

Regarding table 4.5, all respondent 63(100%) replied that MIS helps the
corporation better, reliable and fast decision. This implies MIS has a high
influence on the decision making process.
“MIS support decision making is both structured and unstructured problem
environment. It supports decision making to be implemented at all levels of the
organization. (.Indian Mba.Com | Facility Column /2014).

“Decision support system or DSS is one branch or part of MIS that is the way
or the ability to make better decisions (Schulthies and Sunner, 1998:p477).

“The objective of the decision support system (DSS) is not the decision-making
process as efficient as possible. The manager's time is valuable and should not
be wasted but the minimum benefit of using a DSS better decision (Mc Leod,
1998:p390).

Skilled manpower and equipment

Skilled manpower plays a significant role to apply MIS appropriately in decision

making, like a computer, database management system becomes important to
make a reliable decision.

Table 4.6 response on the corporation skilled manpower and equipment

No Item Respondent
Number Percent
1 Would you say that corporation Yes 25 40
has enough skilled manpower
to operate the database center?
No 38 60
Total 63 100
2 Can you say that the Yes 24 38
corporation has enough
computers or other equipment
that are necessary to use MIS?
No 39 62
Total 63 100
Source: own computation, 2020

From Above table 4.6 No1, it is possible to see out of the respondents 38(60%)
replied corporation does not have enough skilled manpower to operate the
database center, whereas the remaining 25(40%) replied that there is enough
skilled manpower depend on the respondents answer what should do the
corporation to fill such gaps are:

 Train existing employees

 Recruit skilled people from outside I.E chief information officer (head of
MIS) who has an advocacy role means responsible for organizing the MIS
department to fit the need of information to the company (Post Anderson,
1997).
 Assign a responsible body for the flow of information

In the same table, No 2 relates to the corporation’s capability of the necessary

equipment to run MIS effectively. Out of 63 sample respondents 24(38%) of the
replies the corporation has enough computers and other equipment to run MIS
effectively, the remaining 39(62%) respondents the corporation do not have
enough such equipment. From this table that is possible to say that the
corporations, equipment are not enough as it needed to operate MIS efficiently.

How the corporation can know either the decisions are made effectively or not?
The respondent replied that the corporation knows through the following ways
of evaluation.

 Report
 Observing the actual work
 Looking at the result of decisions
 Making clear and participatory meeting
 Assessing the database management system frequently etc: are among
the ways to know either the decision made correctly or not.

How does information flow in each department to support decision making?

As the respondents replied that, in most of the department's information flow is

important to support decision making. Since information and decision have a
linear relationship, they are interdependent. If the information is full, the
decision is certain and if it is some or fifty percent, the decision is under risk
and if it is few or having below fifty percent, the decision is uncertain. From
this, we can infer that information and decision have an appositive
relationship.

Bar graph 4.1 Employee attitude towards MIS

The attitude of the employee plays a significant role to apply MIS effectively in
organizational decision making i.e. if Employee has a good attitude it is easy to
apply MIS in the organization.

Employees alttitude towards MIS in %

60

50

40
Employees alttitude towards
MIS in %
30

20

10

0
Very good Good unsatsfactory low/poor

Source: own survey, 2020

As shown in the above graphical 3.1 presentations of employees' attitudes
towards MIS in the given corporation.30 (48%) of the total sample size replied
that their attitude is the poor attitude towards MIS because most of the
employees lack knowledge, accessibility of the latest information in the
organization is poor and the employees less skilled about modern way
information management 17(27%) of respondent replied that there is a
satisfactory level of attitudes towards MIS. Whereas, 10(16%) of respondents
said that there is a good attitude towards MIS and the other 6(9%) of the
sample population has a very good attitude towards MIS.
The database management system is considered an important system software
package that controls the development, use, and maintenance of the database
of computer using organization. A DBMS program helps an organization uses
its integrated collections of database records and file know as database
Table 4.7 response on the system to store data

No Item Respondent
Number Percent
1 Which of the following Manual File System
system do corporations
use to store different
decisions?
Database 20 32
Management system
Both 43 68
Other 0
Total 63 100

Source: own computation, 2020

As mentioned in the above 4.7 No 1 respondents are asked to give their
responses to the mechanisms to store decisions. Accordingly out of the
63sample respondent's none of the respondents replied the corporation used a
manual file system, 20(32%) of respondents said that the corporation uses
database system only and 43(68%) of respondents respond that the
corporation uses both the manual file system and database system to store
decisions. It is possible to say the corporation uses both a manual file system
and a database system to store decisions.
“Database management system makes it easy for an employee database to be
accessed by pay role employee benefits and other human resource programs.
It also amplifies the process of retrieving information from a database in the
form of displays and reports (MC Leod 1998:p345)

Table4.8 Response on the challenges and prospects Of MIS practice in the

branch

No Item Respondent
Number Percent
1 Do you think that are challenges and Yes 43 68
prospects of MIS practice in the branch?
NO 20 32
Total 63 100
Source: own computation, 2020

From the above table 4.8 No1, it is possible to see out of the respondent
43(68%) respondents that there are challenges and prospects in the branch
whereas the remaining 20(32%) answers there are no challenges and
prospects in the branch. This implies that there are different challenges and
prospects of MIS practice in the branch.
 CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions
Efficient managers are those whose decisions are effective. To do this,
managers have to have insights and foresights on today’s global information
systems. Management Information System is an important weapon for the
global world business managers to see the success of their organizations on the
nearest day. MIS plays a vital role in the organization for taking the right
decision in a short time based on gathered information from the operation level
of the organizations. Not only that but also it helps the strategic manager to
take strategic decisions with the assistance of DSS and ESS. But, an important
fact is that they must maintain to make a balance between the objective of the
organization and the technological capabilities of the organization. So, MIS is a
vital component of the decision-making task of management in the
organization in the global business and information world.

The major emphasis of the study has been on assessing the role of
management information system organizational decision making in the Ethio-
telecom Dessie branch. Based on the analysis of data the following conclusions
are drawn. The application of MIS at the corporation is to draw short-term,
medium, and long-term planning, to make reliable and appropriate decisions
depend on the flow of information (maybe structured and unstructured
decisions), to craft strategies and the like. To do this the corporation advised
assessing its material and human capacity and capability.
Regarding the application of MIS, it is having an inefficient flow of information.
I.e. lack of properly organized information (reports and data), and lack of
skilled operators. In the corporation, misunderstanding of information
interpreted their point of view, updated technology is not available and
technical failures of the system are the main cause of the problem.
Finally, the lacks of skilled manpower create difficulties for better application of
the system. This problem can be solved based on the following bases. As
respondents replied that filling the gap of skilled professionals by hiring
(recruited) for better application of the system. Besides, gathering information
from internal sources can be an implication or indicators of internal weakness.
As a result of this, the organization dig out those problems and made possible
solution that hinders the over the performance of the organization.

5.2 Recommendations

The importance of management information systems has been recognized in

modern societies. A management information system is becoming, a
dispensable factor for the success of an organization. Where this study was
conducted to take a series of measures to the significance of management
information system on the decision making process in the corporation. The
overall application of MIS in the corporation has been analyzed based on the
sample respondents’ responses. The researcher would try to recommend the
following general suggestions:

Since the corporation’s employees are well educated and young enough, the
corporation should keep these young employees and train them to improve
their ability and skill because it will benefit in the future operations that are
will have good control and operating over the database center. Based on the
collected data, it shows one of the problems was the inefficient flow information
within the corporation. So it is advisable that information should flow and
disseminate of information should be adequate and properly organized.
Decentralized management and proper delegation of authorities for each
authority’s divisional worker should be applied or assigned responsible person.
On the other hand, for factors that affect the application of MIS in the prospect
corporation, the researcher suggests that: Modern or update technology
advisable to use. Then the technology may be improved the existing network
using a decision support system, executive information system, etc. Hiring
chief information officer, well-trained employees assign for each department.
There should be increased monitoring of MIS to avoid falling victims of
unobserved MIS which has dire ramifications.
 Managers and business owners should find a way of tailoring
information in a way that it fits various decision-making processes in
various businesses.
 The management should encourage the effectuation of a mutually
interdependent and balanced MIS where workers and automated
systems are handled with due respect.
 Business entities should find a way to inculcate teachings about new
MIS to reduce the trend of businesses being left behind on new
inceptions.

The flexible system of each division or department for receiving and

disseminating information is more valuable for the concerned parties.

The current employees’ attitude towards MIS is unsatisfactory because of the

employees having a lack of knowledge; accessibility of the latest information in
the organization is poor, and the employees’ less skilled about the modern way
of information management. So, the corporation should bull its employee’s
performance that is by giving training and development on the management
information system, and help them to get access to the latest information, etc.

The corporation should also create a strong network among departments to

have a fast flow of information between them and avoid factors which are
hindering the flow of information that is poor interrelation among departments,
time constraint, frequent interruption of the network, poor relationship
between management and employee, limited access of internet and so on. The
corporation should also improve the decision store system from a manual
system to a computerized system because such a system is easily exposed to
deterioration and time consuming to assess the previous activities.

The investigated data shows for the less skilled manpower problems. Due to
this, the researchers also advise the HR department that: properly recruit or
select more qualified employees as well as highly competent individuals using
an internal sources of information to a better understanding of internal
weakness, and train employees and also assess their day to day activities,
performance, etc.

Finally, the company is advised to hire and assign employees to their

profession and install modernized equipment that is computers, to increase the
performance of the database center and other information systems. In addition
to this, it should allow the participation of lower-level managers in decision
making, because in the future they may be experienced in such activity and
will contribute their effort and knowledge to the corporation.

Reference
1. O’Brien, J. A. Management Information Systems: Managing Information
Technology in the Internetworked Enterprise, Boston: Irwin McGraw-Hill
1999.
2. Bharati, P., & Chaudhury, A. (2004). An empirical investigation of
decision making satisfaction in web-based decision supports systems.
Decision Support Systems, 37 (2), 187-197,
3. Asefeh Asemi, Ali Safari, Adele Asemi Zavareh, the Role of Management
Information System (MIS) and Decision Support System (DSS) for
Manager’s Decision Making Process, International Journal of Business
and Management Vol. 6, No. 7; July 2011.
4. Barton J., Parolin B., Weiley V., A Spatial Decision Support System for
the Management Of Public Housing, in Recent Advances in Design and
Decision Support Systems in Architecture and Urban Planning, Springer
Science and Business Media, 2005, p. 69&84
5. Bendoly E., Excel Basics to Blackbelt. An Accelerated Guide to Decision
Support Designs, Cambridge University Press 2008
6. Banerjee, U. K., and Sachdeva, R. K. (2002), Management Information
Systems, 2 nd revised edition, Associated Business Corporation, Dhaka,
pp. 9-16.
7. Dixon, P. (2004), “Impact on New Technology on Consumer LifeStyles
and Business Strategy”, IBS Global Executive Summit, Stockholm,
September 2004. http://www.globalchange.com/ppt/ibs/index.htm,
Retrieved on January 25, 2012.
8. Islam, M. B., and Haque, M. M. (2003), “Information Systems and Its
Application in Managerial Decision Making”, Business Review (A Journal
of Business Administration Discipline, Khulna University, Khulna), Vol.
3, No. 2, July–December, pp. 43-49.
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Systems, 7 th edition, Pearson Education, New York.
10. Mason, R. O., and Swason, E. B. (1981), Basic Concepts for
Designing MIS in Measurement for Management Decision, Addison-
Wesley Publishing Co.
11. O’Brien, J. A. (2002), Management Information Systems, 5 th
edition, McGraw–Hill Irwin, New Delhi, pp. 4-11. Skinner and Ivancevich
(2004), Business for the 21st Century.
12. Steven, A. (1980), Decision Support Systems: Current Practice and
Continuing Challenges, Addison wisely Publishing Co., p. 9.
13. Weihrich, H. and Koontz, H. (2000), “Management– A Global
Perspective”, 10th edition, McGraw-Hill Publishing Co., Singapore, pp.
212-213.
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Analysis and Design Methods, 5 th edition, Tata McGraw–Hill Publishing
Company Limited, New Delhi, pp. 8-49.
Appendix
Alkan Health science Business and Technology College

College of Business Department of Management Questionnaire

This questionnaire is to be answered by the employees of the Ethiopian

Telecommunication Dessie Branch. The purpose of the questionnaire is to
collect reliable informationon the role of MIS inorganization in decision making
(incase of Ethio-telecom Dessie branch). The information which is provided to
you is only to be used for academic purpose, and it is very important for the
overall success of the paper. Hence you will be requested to fill and returned
the questionnaire. The information finished by you will be kept in strict on
fidence and you are not expected to write your name on a place on this
questionnaire; rather just put the tick mark(/) in the appropriate box
representing choose.
Thank you in advance!!

1. sex Male Female

2. Age 18-25 26-30 31-40 above 40
3. Educational Level: 10th and 12th completed Diploma
First Degree Second Degree Above
4. Your content position in the organization: Top Management
Senior Management Middle Management Line
Management
Part II Different questionnaires related to the role of Management
information system in organizational decision making:
5. How you measure the Ethio-telecom Dessie branch is using MIS for
organizational decision making? Very Good Good
Not Satisfactory Poor
6. Do you think the corporation has an adequate and well-organized
database center?
A Yes B, No
7. If your answer to question no. six is yes, how often the corporation use
database center?

8. Do you think that the current MIS practice is satisfactory? A. yes

B. No

9. Do you think that MIS helps the corporation to make a fast and reliable
decision on time?
A. yes B. No

10. Which of the following systems does a corporation use to store

deferent decision?
A. Manual File System B. Data Base Management system
C. Both
D. Others
11. Can we say the corporation has enough computers and equipment
that are necessary to use MIS? A. yes B. No
12. What looks like the attitudes of employees towards the role of MIS
in organizational decision making? A. Very Good B. Un
satisfactory C. Good D. Low
13. Would you say that the corporation has enough skilled manpower to
operate the database center? A. yes B. No
14. Do you think that the participation of lower-level Managers has an
impact on the process of decision making? A. yes B. No
15. Do think that employees of the organization have a good attitude
towards the role of MIS in decision making? A. yes
B. No
16. How does the corporation can know either the decision made
effectively or not?

17. Do you think that there are any challenges and prospects of MIS
practice in the branch?
 A. Yes B. No
18. If you say ‘’yes’’ in question no. 17, what are those challenges and
prospects of MIS practice?

19. Do you think that the flow of information is affected by individual

participation?
A. Yes B. No
20. How does information flow in each department to support decision
making?