Maryland International College

Management Information System

By:- ID No

Betelhem Solomon MBA/A010/15

Biniam Mesfin MBA/A012/15

Mahlet Kiflesilassie MBA/B032/15

Meron Gastone MBA/B039/15

Michael Seife MBA/A039/15

Tekabe Teshome MBA/B060/15

Submitted to: Dr.

July 16, 2023

Addis Ababa, Ethiopia

 ABSTRACT
Management Information Systems (MIS) play a key role in determining the degree of success for an
organization globally. This case study investigates the implementation and utilization of management
information system in the commercial bank of Ethiopia. It explores the role of MIS in facilitating
data driven decision making process and enhancing operational efficiency within the senior
management team. Additionally, it examines the challenges faced during the implementation phase
and the subsequent benefits realized. Currently commercial banks in Ethiopia (CBE) are not fully
utilized MIS to enhance managers, decision effective. This indicates that there are gaps between the
current practice for MIS availability and utilization in the banking industry in Ethiopia. Hence, the
major objective of this case study was assessing the current practice of MIS availability and
utilization in CBE. This research was focused to study on decision makers in CBE. The selection was
based on their relevancy for MIS and decision-making process in the bank using simple random
sampling and purposive sampling techniques. In order to meet the general and specific objectives of
this study, a descriptive research method was employed. Documents were also analyzed to
supplement the quantitative data and for triangulation purpose. Collected data were also analyzed
using descriptive and inferential statistics. The major findings indicate that management information
systems are currently available and utilized in some aspects significantly and in other aspects
insignificant in CBE. The availability and utilization of MIS are moderately enhanced managers’
decision making in CBE. Therefore, Commercial Bank of Ethiopia have to give special attentions on
the gaps stated in the major findings and avail relevant MIS utilization to support managers’
decision-making effective.

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 INTRODUCTION
The senior management office at commercial bank of Ethiopia plays a crucial role in strategic
planning, decision making and resource allocation. To support these activities the implementation of
an effective MIS becomes imperative. This case study aims to shed light on the successful integration
of MIS within the senior management office outlined its impact on decision making and overall
organizational performance.
Management Information System (MIS). O’Brien and Maracas (2006) noted the computer systems
can clearly aid organizations in the processing of data into accurate, well presented, up-to-date and
cost-effective information. Currently to succeed in business world; companies require information
systems that can support the diverse information and decision-making needs of their managers and
business professionals. In this regard the role of MIS is very important since its main objective is
helping decision makers by providing accurate and time-based information to make the right
decisions in turbulent environment.
Currently the intimidations or threats associated with banking business operation especially in
developing countries like Ethiopia are enormous. Ait (2017) noted in his article review, banking
business related threats have adversely affected the quality of bank managers’ decision in the absence
of a well-structured management information system and it makes the function of the management to
have little impact on entire organization. This has led to the inefficiency and uncertainty of the
information and communication in organization even through such problems could be turned to
business opportunities. This is the reason why managers monitor and evaluate trends in their business
environment through internal and external channels of information available and accessible to them
by using modern information technology. Therefore, this research was conducted to determine or
assess the level of MIS availability and its utilization in commercial bank of Ethiopia with the
support from related secondary data sources such as books, reviewed journals and articles and
various web sites.

OVERALL, COMPANYS OVERIVEWS

The brief history of commercial bank of Ethiopia (CBE) was dated back to the establishment of the
State Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963 and in 1974
was merged with the privately owned Addis Ababa Bank. Since then, it has been playing a major role
in the development of the country. Currently this bank has opened more than 1,900 branches
stretched across the country. The bank has also more than 37.9 million account holders and 6.6

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million numbers of Mobile and 37000 Internet Banking users . Active ATM card holders of the bank
reached 8.3 million. The ATM and POS machines of the bank as of June 30, 2018 were 1,708 and
11,796 respectively. CBE has strong correspondent relationship with more than 50 renowned foreign
banks and has a SWIFT bilateral arrangement with more than 700 other banks across the world. It
combines a wide capital base with more than 33,000 talented and committed employees (CBE
Company Profile June, 2018).
VISION
A world-class commercial bank financially driving Ethiopia's future..
MISSION
We are committed to realize stakeholder’s values through enhanced financial intermediation using
the best professionals and technology.
VALUES
Integrity Service Excellence
Professionalism Empowerment
Innovative Organization Teamwork
Respect for Diversity Corporate Citizenship
Strategical themes are business growth, business excellence and Digitalization

OBJECTIVES

The main purpose of commercial banks is to provide financial services to the general public and also
provide loan facilities to the business which helps in ensuring economic stability and growth of the
economy. Therefore, we can say that credit creation is the most important purpose of commercial
banks.
PRODUCT AND SERVICE OF CBE
CBE provides credit for working capital and expansion and facilitation of local and international
trading activities.
Commercial banks' primary duties include receiving deposits, giving loans, advances, cash, credit,
overdraft, and bill discounting. – Secondary tasks include granting letters of credit, safe custody of
assets, consumer financing, educational loans, and so forth.

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PROBLEM STATEMENT
In a scientific decision-making process; decision should be based on data concerning the past
performance viewed in the present situation and projected for emerging future trends. This type of
decision is arrived after collecting, processing, analyzing data and only then providing information.
Hence, management information system (MIS) is the tool, which helps the management by providing
the relevant information in the right form to the person and at the right time. By bringing together
information from a variety of sources in one database and provide the information in a logical way,
MIS can also provide managers with everything they need to make informed decisions and very in-
depth analysis of operational issues.
Related to identifying the gap in the statement of the problem in this study, data have been collected
from various secondary sources in commercial bank of Ethiopia (CBE) such as internally published
Journals and article reviews. Such assessed documents are showed all the modern MIS component
criteria noted are exist in CBE and organized as department or unit level. Therefore, the aim of this
case study was assessing and this is also evidenced by the organizational structure of the bank which
clearly indicates the existences of each of these modern MIS components are organized as
department or unit in CBE. But in the assessment, it was difficult to find the fact that such given
department and unit are organized functionally with expertise and adequate manpower, having
modern equipment’s, devices, networking and application software, having working procedure and
manuals etc., to produce information accurately and timely in order to enhance managers’ decision
making effective such as the availability of feasible MIS procedure and its utilization are currently
exist and practiced in each of this department or unit in CBE to enhance managers decisions
effectively.

Objective of the Study General Objective of the study

The general objective of this study was to assess the existence of effective Management Information
systems availability and utilization in Commercial Bank of Ethiopia.

Specific Objectives of the study

This study was attempted to achieve the following specific objectives in commercial bank of
Ethiopia.

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1. To determine whether management information systems are Available currently in commercial
bank of Ethiopia as per MIS theory.
2. To explore whether currently available management information systems are utilized effective in
commercial bank of Ethiopia.
3. To examine whether the available management information systems and utilizations in commercial
bank of Ethiopia are enhancing managers’ decision effectively based on time, accuracy,
completeness, relevancy, and reliability criteria.

Analysis for the Independent Variables Independent Variables Analysis

Based on Frequency and Percent
The assumptions stated in the frame work of this study articulates that effective managers’ decisions
in commercial bank of Ethiopia is measured through the existence of five independent variables such
as Availability of Expertise and Adequate manpower, Availability of Modern Equipment’s and
Devices, Availability of up to date Network and software applications, Availability of Feasible MIS
procedure and Utilization of all available MIS.
1: The Availability of Expertise and Adequate Manpower
Currently only few of the available manpower in CBE MIS department is motivated. This implies
that the current available manpower in CBE MIS department is motivated insignificantly or not
fairly. Further, motivation comes from various aspects such as promotions, recognitions, rewards,
age, salary increments etc. Hence, the cause for majorities de motivations in CBE staffs has to be
identified to enhance their motivation back. Therefore, currently the number of manpower available
in CBE MIS is significant or fairly exists.
2: The Availability of Modern Equipment’s and Devices
Related with identifying the availability of appropriate (modern, high storage capacity and speed)
Equipment’s and Devices in CBE. Currently some of the available Equipment’s and Devices in CBE
MIS department exist moderately. Therefore, the available Equipment’s and Devices in CBE have
enough spare parts and maintenance exists significantly or fairly.
3: The Availability of up-to-date Network & Software Applications
The available network installation in CBE were adequately installed or exists significantly or fairly
but Related with the availability of uninterrupted telecommunication networking service currently in
CBE currently the existing available telecommunication network services in CBE are uninterrupted

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whereas the interrupted networking services availability currently in CBE are indicates there are
significant interruptions of network supply exists in CBE.
The availability of advanced and user-friendly networking and software system in CBE. Therefore,
currently the existing available network and software system in CBE are advanced and user friendly
with a significant rate or we can say that currently advanced network and software applications are
exist fairly in CBE. The availability of satisfactory network and software repair and maintenance in
CBE. Therefore, the existing available network and software repair and maintenance in CBE were
satisfactory at a significant rate or the existing network and software maintenances are fair. the
existing available software applications in CBE are easy customized with a significant rate or
existing software applications are fairly customized in CBE.
4: The Availability of Feasible MIS Procedure
The existing available MIS procedure in CBE is timely revised with a significant rate or timely
revisions of MIS procedure fairly exist in CBE. Available MIS procedure in CBE is significantly
understandable or currently MIS procedure in CBE is fairly understandable.
The availability of MIS procedure clearly shows the work flow of the department in CBE. the
existing available MIS procedure in CBE shows significantly the work flow of the department or
current MIS procedure in CBE indicates fairly the work flow of the department.
5: Utilization of all the Available MIS Components
The available employee skills and knowledge are utilized effectively in CBE, Therefore, currently
only some of the existing available employee skills and knowledge in CBE are utilized significantly
or fairly.
Effective utilization of the available Equipment’s and Devices in CBE. Therefore, currently the
existing available Equipment’s and Devices in CBE are utilized significantly.
Analysis for the Dependent Variable
Dependent Variable Analysis Based on Frequency and Percent
The dependent variable managers’ decision making based on time, accuracy, reliability, relevance
and completeness of decisions made in commercial bank of Ethiopia.
1: “There are timely decisions of managers in CBE”
The fact that the existence of timely managers’ decisions at which is significant in CBE may be as a
result of either there were timely information flows from MIS to decision makers or the existing
issues were demanding immediate decisions with or without adequate available information. This

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might be as a result of such respondents or managers were either do not have enough knowledge
about the decisions made in CBE or involving less in the decision-making processes of the bank.
Sometimes this situation has happened because the respondents’ current organizational status may
demand less/no at all MIS information to making decisions or such managerial positions may be
formed to accomplish other than decision making in the bank.
2: “There are accurate decisions of managers in CBE”
The current managerial decisions accuracy level in CBE is significant.
3: “The Manager’s Decisions in CBE are Relevant”
To test the relevance of managers’ decisions in commercial bank of Ethiopia through the statistic tool
called frequency analysis. As a result, all the respondents or decision-making managers in CBE were
accepting significantly at 100 %(Agree) the existence of relevant managers’ decisions.
4: “The Manager’s Decisions in CBE are Complete”
Currently managers’ decisions in commercial bank of Ethiopia are complete insignificantly. This
might happen as a result of perception about the concept completeness. If there is no common
measurement trained for completeness, reliability or relevance at bank level, individuals may get
difficulty to respond related questions as per the required.
5: “The Manager’s Decisions in CBE are Reliable”
The existence of reliable managers’ decision in commercial bank of Ethiopia is significant. Finally,
based on the evidence collected from the respondents, the frequency statistical analysis of the
dependent variable focused on the five descriptive criteria for effective managerial decision such as
timely, accuracy, relevancy, reliability and completeness
The success of any organization in different aspects is critically linked with the effectiveness of
managers’ decision making. For the managers decisions to be valuable, organization have to be
developing MIS (a system that generates accurate, relevant, complete and reliable information and
delivers timely) that really supports the management decision. Hence, decision has to be made
effective when it is timely, accurately, reliably, completely and relevantly presented for the decision
maker.
Dependent & Independent Variables Analysis
The intent for this sub section is to assess the degree of influence that independent variables “MIS
availability and utilization” have on the dependent variable “managers’ decisions making” in this
study. From the frame work designed in the study, we can also clearly realize that the dependent

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variable is “effective managers’ decision making” and the influencing or enhancing factors are
independent variables such as the Availability of MIS (which includes Availability of expertise and
adequate manpower, Availability of modern Equipment’s and Device, Availability of updated
Network & Software Applications and Availability of feasible MIS Procedure) and the Utilization of
these Availability components.
Availabilities of MIS in CBE
The Availability of MIS represents the availabilities of four components such as Availability of
expertise and adequate Manpower, Availability of modern Equipment’s and Devices, Availability of
up-to-date Network and Software applications and Availability of feasible MIS Procedure that
assures the presence of MIS in CBE MIS department. Therefore, majorities of the respondents were
fairly accepting the availability of MIS currently in CBE at agreeable stage.
Utilizations of MIS in CBE
In this scenario, utilization of MIS is expressed based on utilizations of all the available MIS
components such as Availability of expertise and adequate Manpower, Availability of modern
Equipment’s and Devices, Availability of up-to-date Network and Software applications and
Availability of feasible MIS Procedure. Therefore, majorities of the respondents were fairly
accepting the utilization of MIS components currently in CBE at agreeable stage.

1. Accounting information system

An accounting information system offers managers transaction processing services, reporting, and
information for effective decision-making purposes. As explained by: Financial Recordkeeping
(recording deposits, withdrawals, loans, interest, and other financial activities), Payroll (Records employee
work and compensation data), Customer Account Management (recording account activities, updating
balances, generating account statements), General Ledger (periodic financial statement and reports for the
business) AIS comprises three main subsystems:
(1) the transaction processing system that supports organizations in recording of daily business activities
and produces reports to various users for decision making;
(2) the general ledger/financial reporting systems that assists organizations in producing traditional
financial statements that include income statements of cash flow, balance sheets, and other reports
mandated by law; and
(3) the management reporting system that provides special-purposes information (reports) to internal
managers for effective decision making.

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2. Marketing Management Information Systems
Marketing is concerned with planning, promotion and sale of existing products in existing markets, and
development of new products and new markets to better serve present and potential customers.
Advertising and Promotion (Value-Based) Help to select media and promotional methods and control
and evaluate advertising and promotion results

3, Manufacturing information systems

Computer Integrated Manufacturing Systems: It has three fundamental purposes. Simplify
(reengineer) production process, product designs. Automate production process and the business
functions that support them with computers and robots. Integrate all production and support process
using computer and telecommunication network
CAE (Computer Aided Engineering) AND Robotics Used to simulate, analyze and evaluate the models
of product designs so that the products will be manufactured based on required specifications. E.g ATM
POS.

4. Human Resource Information Systems

HRM involves the recruitment, placement, evaluation, compensation and development of employees
of an organization. HRIS support: Recruitment, selection and hiring Job placement, Performance
appraisals Employee benefit analysis Training and development Health safety and security

5. Finance Information Systems

Cash and Security Management Forecasts cash receipts and disbursements (Cash Flow) and manage
investment in short term securities. Capital Budgeting Evaluate the profitability and financial impact of
proposed capital expenditure
SUMMARY OF THE CASE STUDY FINDINGS
The purpose of this study was to assess the Management Information Systems availability and
utilization in the case of commercial bank of Ethiopia (CBE). This assessment study of MIS
availability and MIS utilization in CBE was limited to managerial positions or decision makers
within the geographical location of Addis Ababa city only. Further, department wise this study was
focused on managerial positions found on MIS department and core processes of the bank like
Customers Accounts and Transactions, Finance, Credit and International banking departments and
managerial positions in North, South, East and West District offices and selected grade three, four
and special grade branch managers under these district offices found in Addis Ababa. The selections

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have been made based on purposive and simple random sampling techniques. Managers’ Decision
Making was taken as the dependent variable and variables such as Availability of Manpower,
Availability of Equipment’s and Devices, Availability of Network and Software Applications,
Availability of MIS Procedure and Utilizations of the Available variables were considered as the
independent variables in this study. The basic questions of this study were focused on 1) The
availability of expertise and adequate number of manpower in CBE MIS department, 2) The
availability of modern and adequate Equipment’s and Devices with sufficient repair and
maintenances in CBE, 3) The availability of updated network and software Applications with
sufficient maintenance and less interruptions of telecom network services in CBE 4) The availability
of feasible MIS procedure presented in easily understandable way and timely revised in CBE 5)
Utilizations of all the availabilities presented above. Hence from the data analysis and interpretation
parts made in chapter four of this study, the following summaries of the major research findings were
presented

When the availability and utilization of MIS in CBE is reviewed how it was enhancing managers’
decision making in CBE based on time, accuracy, relevancy, reliability and completeness, statistical
data analysis determines that currently accurate, reliable and relevant decisions have been taken place
timely by the decision makers in CBE. However, the completeness of the decisions made was
insignificant or decisions are drawn currently in CBE timely, accurate, reliable and relevant at
reasonable rate but not complete.

The availability of modern network installations and software applications in CBE were also assessed
in this study. The analyzed data based on descriptive statistic technique indicates that existing
available network and software applications in CBE were installed and deployed adequately at a
significant rate of percentage. The available network and software applications are also advanced and
user friendly. The Network and software Application repair and maintenance in CBE exist fairly.
Systems can also customize easy and have standards to detect errors at reasonable rate of
percentages.
Hence, the network interruptions exist in CBE at a significant rate which negatively affects the
delivering time and the accuracy of information in MIS and other organs of the bank to support
decision makers.
Currently the existing variables that affects the production of information effectively and efficiently
for managers decision making such as the available employees’ skill and knowledge, the available

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Equipment’s and Devices, the available network and software applications and the available MIS
procedure are fairly or reasonably utilized to produce MIS data or reports in CBE.
CONCLUSIONS

Currently Managers Decision Making process in CBE is made timely and accurately and it is also
reliable and relevant reasonably. Whereas the completeness of managers decision is insignificant
because timely produced and delivered MIS information to decision makers are not complete. As a
result, no complete decisions are made by managers. Therefore, CBE has to deal strong to enhance
the completeness of MIS information by organizing adequately and sufficiently all the modern MIS
components or organs in the bank and make them to perform their duties computerized with the
available equipment’s, network and application software and expertise manpower.
The availability of modern Equipment’s and Devices in CBE are appropriate, having enough spare
parts and maintenance room and exists adequate in number reasonably. In the same way the
availability of up-to-date network installations and software applications are exist fairly. Network and
Software applications deployed by the bank to support the MIS are also advanced, applications are
user friendly and there exist adequate repairs and maintenance. The bank avails easy customized
software applications and has the standards to detect errors reasonably. CBE has also invested huge
money on technology infrastructures to facilitate the information flows and for effective customer
servicing in the bank. However, the MIS department has not as such organized to produce all the
necessary information for managers’ decisions in the bank. Mostly the MIS department produced
financial data by consolidating various department transactions in to corporate level financial reports
and some other exceptions report. On the other hand, the existing available telecom networking
service which is provided from Ethio Telecom is highly interrupted (network service become on and
off frequently), which is negatively affects the quality of information or accuracy and delivery time
from MIS and other organs of the bank to the decision makers. Thus, decisions may not be made
timely and effectively as a result of the information flow delayed. Even it affects highly the banking
service deliver time or service quality and resulted high customers complain on the bank’s service.
Utilizations of the available expertise and adequate Manpower, Modern Equipment and Device,
Network and Software Applications, MIS Procedure, timely and accurately producing of reliable and
relevant information in the decision-making process in CBE are all practiced currently in CBE
moderately or fairly. Hence, existing available MIS components are utilizing currently at a minimum
moderate but not at its maximum percentage as compared to the high investment costs spend on
especially on the information technology infrastructures deployed by the bank. So, it can be

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generalized that the bank is not efficiently and effectively utilized the available information
technology infrastructures in the MIS to enhance managers’ decisions maximum and as a result to
benefit the bank and the stakeholders’ maximum. The Pearson correlation between Managerial
Decision with MIS utilization and Managerial Decision with MIS availability are correlated positive.
Consequently, the Pearson correlation between Managers Decision and MIS Availability was strong
and positive. In the same way the Pearson correlation between Managers Decision and MIS
Utilization was weak but positive. From these points of view, we can conclude that the availability of
MIS was significantly enhanced managers’ decision, but the utilization of MIS was less significantly
enhanced managers’ decision in CBE.

RECOMMENDATIONS

In order to improve the organizational capability and its level of competition in the market, financial
organizations should understand the dimensions of the information management and clearly define and
develop the resources in case of human, technological and internal operations among others and manage
them well across the organizational boundaries. However, establishing the link between MIS and
decision-making is, at its best, complicated. Hence, on the basis of the major research findings and the
conclusions drawn, the following recommendations are forwarded.
The available manpower in the MIS department has the skill and knowledge for MIS, has the working
experience and commitment and is existed adequately in number at a significant level. Whereas the
motivational level of these staffs is insignificant. Hence, enhancing the motivation rate of these working
groups through various incentive mechanisms will help the bank to maximize the accuracy, reliability,
relevance and completeness of the information (data) produced on time in the MIS and as a result
effective information have been delivered to decision makers.
Currently in CBE the available network installations and software applications are exist fairly, adequate
and up to date. Advanced and user-friendly software applications are deployed at bank level. The repairs
and maintenance for the network and software applications are also reasonably available. The bank also
avails easy customized software applications which have standards to detect errors comparatively.
Although the bank has spent high costs on deploying modern Equipment’s and Devices and Network and
Software Applications, the available network supply from the vender is interrupted or not sufficient and
efficient to generate quality MIS information. This is because, the frequent network interruptions have
interrupted the accuracy and delivery time of the information flows between various departments and
units of the bank. Interrupted network services are also affected negatively the service quality of the bank
as a whole. Therefore, the bank has recommended to deal strongly with the concerned organs to minimize

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the network interruptions at significant level through either investing on high-speed fiber and broad band
lines and arranging especial agreements with Ethio-Telecom to have a 24/7 hours uninterrupted network
service supply with full maintenance agreement or by arranging other sources for network supply in
addition to the service obtained from the existing company.
The available MIS components or variables in the study are currently utilized in CBE to enhance
managers’ decisions making fairly or reasonably. This means that, not all the available MIS components
are utilized in CBE to enhance managers’ decision making effective. There are MIS components currently
available in CBE but not utilized well enough. Hence the bank has to assess periodically which available
MIS components of the bank are not utilized enough to enhance more effectively managers’ decision-
making process and invest on it to maximizing the benefits of the bank and stakeholders as a whole. The
existing information technology used in CBE MIS practices indicates more for transaction processing
system. Thus, the bank should have to work with its information system to extend further utilization of
the existing modern information technology deployed at bank level with high investment costs to support
the management decisions and gets full advantages or benefits of the current technology on hand.
Finally, because effective decision-making process cannot fully be realized without MIS developments
and improvements through time, research study has to be undertaken and the bank has to promote the
importance of quality MIS information at management level for decisions to be made effective.

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