The Impact Of Information System (IS) On Organizational Productivity

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The Impact Of Information System (IS) On Organizational Productivity


Abstract


This study was carried out on the impact of information system (IS) on organizational productivity using NNPC, Benin City, as case study. To achieve this, two significant research objectives were formulated. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of all the staff of NNPC, Benin City, Edo State. In determining the sample size, the researcher conveniently selected 67 respondents while 50 were received and validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage. While the hypotheses were tested using Chi-square statistical tool. The result of the findings reveals that management information system has an effect on organizational performance. Also, information system has an impact on management decisions in an organization. In regard to the findings, the study recommends that organizations should suitably align their strategies with adopted management information. This will enable management to track the changes in the competitive environment; it is essential for businesses to keep in line with developments in technology, information, and communications in order to improve their management information system and consequently the decision-making process; corporate managers should also ensure that other organizational success factors are evaluated to compliment the contributions of the management information system to the success of their organization; organizations must implement management information system to each and every department of the organization on automation because anyone in the organization could use information to make timely decision based on that information at different levels; and organization must use IS to eliminate the communication gap between top levels management, middle level management and lower level management.


Table of Content


  • TITLE PAGE
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research Hypotheses
  • 1.5 Significance of the Study
  • 1.6 Limitation of the Study
  • 1.7 Scope of the study
  • 1.8 Research Methodology
  • 1.9 Definition Of Terms

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Chapter Summary

Chapter Three:

Research Methodology

  • 3.1 Area of Study
  • 3.2 Research Design
  • 3.3 Population of the Study
  • 3.4 Sample Size Determination
  • 3.5 Sample Size Selection Technique and Procedure
  • 3.6 Research Instrument and Administration
  • 3.7 Method of Data Collection
  • 3.8 Method of Data Analysis
  • 3.9 Validity of the Study
  • 3.10 Reliability of the Study
  • 3.11 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2. Test of Hypothesis

Chapter Five:

Summary Conclusion and Recommendation

  • 5.0 Summary
  • 5.1 Conclusion
  • 5.2 Recommendation
  • REFERENCES
  • APPENDIX 

Chapter One


Introduction

1.1 Background of the Study

It is a well known fact that the success of any organization is dependent on its decision-making potentials, and decision making is dependent on timely availability of quality information.

An organization has transactions that must be processed in order to carry out its day-to-day activities. The payroll must be prepared, sales and payments on account must be posted; these and others are data processing tasks, but a management information system performs other tasks as well as is more than a data processing system. It is an information processing system applying the power of the computer to provide information for management and decision makers (www. Journals, information and organisation).

It is really hard to imagine an industry or business that has not been affected by computer information systems and computer applications. Many businesses consider management of their information resource to be equal to their other key resources: properties, facilities, employees and capital. IS is about analyzing and designing information system that fulfills those business requirements. (www. Journals, information and organisation)

“Wherever people are active and working together in an organization, they work out some sort of system without the help of an analyst, through these systems, they get things done”. Such systems have been found to be frequently inefficient and sometimes even inadequate.

Information system (computer oriented has evolved to reduce the inadequacies of the traditional information system).


1.2 Statement of Research Problem

Due to the trends of modern times, the work of managers in organizations has become very information-intensive and the environment in which it is done is very information-rich. Suffice it to mention that any organization without a sound management information system will not thrive, it therefore becomes pertinent to address the following issues: (www. Journals, information and organisation)

  1. Does management information system has any impact on organizations performance.
  2. Does information system has any impact on organization decision making?

1.3 Aims and Objectives of Study

The major objective of this research/project is to provide relevant information as regards the impact of information system (IS) on organizational productivity and also to add to the bank of knowledge where any similar write-up-exists.

The objective could be broken down as follows:

  1. Examine whether IS has any impact on organizational performance.
  2. Determine whether IS has any impact on management decision making.

1.4 Statement of Hypotheses

  1. H01: Information system has no effect on organizational performance.
    HA1: Information system has an effect on organizational performance.
  2. H02: Information system has no impact on management decisions in an organization.
    HA2: Information system has an impact on management decisions in an organization.

1.5 Significance of the Study

This research (project) is very relevant as it will provide first-hand information on the impact of information system on management performance in the oil industry.

  1. The Oil Industry (NNPC): Management will be informed as regards how to effectively collect, process, store and disseminate data at their disposal. This will lead to growth in the Nigerian National Petroleum Corporation and the oil industry in Nigeria.
  2. The various investors (Potential and Existing) will benefit also as growth and development in the industry would mean growth in their investments.
  3. As the industry advances due to proper management of information, it would be easy to discharge its corporate social responsibilities, thus, the society benefits.
  4. Government: For environmental planning, military planning tax management, urban planning, rate management etc. All this can be made possible through management information systems.
  5. The research will also beneficial to future researches on this particular area of interest.
  6. Where any similar research exists, it will add to the bank of knowledge for future studies.

1.6 Scope of Study

This research project will be carried out solely in the oil industry, Nigeria National Petroleum Corporation (NNPC) to be specific.

It will be conducted only in Edo-State (Benin City) and will concentrate on information systems of management (one of the technologies designed to efficiently assist management in collecting and processing information).


1.7 Limitations of the Study (Constraints)

Certain factors could possibly hamper and affect the success of this research project. Not enough time, funds, materials, too large a distance to be covered, might not allow for a very elaborate study to be conducted. Hence, the study might be of less meaning compared to its significance in order to save time, cost, effort and reduce stress, a company in the oil industry (Nigerian National Petroleum Corporation) has been selected as a case study.


1.8 Research Methodology

The method to be used for collecting data for this project shall majorly be derived from two sources which are the primary and secondary sources.

The basic instrument for the collection of data shall be questionnaire. It is hoped that this medium will secure the needed information with great accuracy and will minimize cost and time.


1.9 Definition of Terms

Computer:

A computer is an electronic device that operates under instruction of stored programmes, accept input (data), process it according to specified rules, produces output (information) and store the result for future use. It could also be seen as an electronic device that accepts data, process data in a prescribed format and produce result in a specified format. They (computers), work under the influence of stored programmes, automatically accepting, storing and processing. Data to produce information that is the result of the processing. (www.wisegeek.com/whatisacomputer.com).

Data:

This could be defined as raw facts and figures that are not meaningful parse and cannot be used in making decisions until processed. (www.business dictionary.com/definition of DATA.com).

Data Processing:

Computer receives data as input, carries out manipulation on the data to give result (information) as output which is used for decision making. This process is referred to as data processing. The process of collecting items of source data together and converting them into information. (www.answers.com/topic/dataprocessing).

Files:

Information held on backing storage (usually on magnetic discs or magnetic tapes) in order to enable it to persist beyond the time of extension of a single job and/or to overcome space limitations in memory. (en.wikipedia.org/ wiki/files…(computer).

Hardware:

These are the physical parts of the computer system. They comprise of the input unit, system unit and the output unit. It also includes the storage unit e.g. memory. They are parts which can be seen, felt and touched. Examples are: keyboard, printer, mouse, monitor etc. (www.webopedia.com/hardware.html).

Information:

This can be defined as data processed for a purpose. It is simply data processed to have a particular meaning, relevance and usage within a specific context. Kenneth and Norwich (2003).Davis (1974:85), defined information as data that have been possessed into a form meaningful to the recipient and perceived valuable in current or prospective decisions.

Information Technology:

The practical application of science in various fields of learning, in transferring data or facts or information from one place to another. In relation to organization, information technology can be defined as the practical application of science in the production of goods and services in an industry. (www.webopedia.com/information technology.html).

IS:

An “IS” is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. It is a computer based system that optimizes the collection, transfer and presentation of information throughout an organization by using an integrated structure of data bases and information flow. O’Brien (1999), Long and Long (2004).

Records:

A record is a collection of data handled together in transfer to and from peripheral devices. It is also a collection of related fields describing an event or item or transaction. (Database.about.com/../records.html).

Software:

These are the instructions which the computer system (hardware) follows to carry out a particular task. They are made up of series of programmes, hence, they are programmes which drive the hardware. (www.webopedia.com/ software.html).


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the effect of information system on organisational productivity using NNPC, Benin City, as case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was on the effect of information system on organisational performance using NNPC, Benin City, as case study. The study is was specifically focused on examining whether IS has any impact on organizational performance and determining whether IS has any impact on management decision making.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of NNPC, Benin City.


5.3 Conclusions

The increasing need for information in today‟s world requires the development of information systems. It is important that enterprises monitor the news on the latest information technology solutions for business management that appear on the market and offer to improve business management methods and operational productivity, thus increasing competitive advantage. Hence, in the light of the analysis carried out, the following conclusions were drawn.

  1. Information system has an effect on organizational performance.
  2. Information system has an impact on management decisions in an organization.

5.4 Recommendation

Based on the findings the researcher recommends that;

  1. Organizations should suitably align their strategies with adopted management information.This will enable management to track the changes in the competitive environment.
  2. It is essential for businesses to keep in line with developments in technology, information, and communications in order to improve their management information system and consequently the decision-making process.
  3. Corporate managers should also ensure that other organizational success factors are evaluated to compliment the contributions of the management information system to the success of their organization.
  4. Organizations must implement management information system to each and every department of the organization on automation because anyone in the organization could use information to make timely decision based on that information at different levels.
  5. Organization must use IS to eliminate the communication gap between top levels management, middle level management and lower level management.

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