CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The business world has been impacted by a variety of changes, population have been growing rapidly; markets have been expanding often to the multinational level; customer expectations have been rising and expanding,  government demands have been multiplying, social responsibility, ecological concern and public institutions have been growing. As might expect, such changes are creating intensive competitive pressure, posing complex decision situations and squeezing available resources.  Organizations have responded in various ways diversifying goods and services rearranging organizational structures. Incorporating new technology participating a community action programs and last but not least re-examine information systems.

Development in information related equipment techniques and concepts collectively called information technology have been occurring at a breathtaking pace new version of computers terminals, and other devices are announced almost daily in business new techniques for solving business problems, based upon such disciplines as communications theory and operations research  are described in various technical  journals. Many of these developments promise to improve the effectiveness of information system and the quality of managerial decision making.

These changes and developments have both stimulated the need for more useful information and provided the means of attaining it. Consequently information systems are exhibiting varied and interesting effects. For instance, computers and related equipment are being applied to the collection, processing and dissemination of information. Decision models are being employed to organized data for decision making reports are being tailor made for managers upon demand.

Other effects of an organizational nature are appearing, for instance information system functions are being organized to manage information system  also, functional information system are being installed alongside accounting and other  information systems e.g. personnel information systems.

Since each member of this combined group focuses upon information for managerial decision makers, the resulting combination is known as the management information system. The Management Information System is an important portion of a firm’s communication e.g. banks overall information system.

Management information system is a system stores and retires information and data, processes them and presents them to management as information to be used in decision making. It must serve the basic functions of management which include planning, organizing, staffing, directing and controlling.

Since the development of management information system there have been numerous challenges of business computers were brought in to solve specifically technological or organizational problem and their use was perfectly accepted. It improves organization junctions and affects the basic structure and principle of the organization. As data manipulation and information are critical in the management of organization, computers play a key role in storing, retrieving and manipulating of data they are essential in operation of the organization.

Corporate operations and decision-making are widely based on information that has been provided or generated by individual and specific Information Technology systems. Such systems are used to collect, harvest, organize, and generate an output that would back up fast and sound business decision. Firms adopt new management techniques and systems with the purpose of enhancing the decision-making processes, improve results and minimize output costs (Henry and Mayle, 2003; AlMaryani and Sadik, 2012). Consequently, this is a way to enhance company operation effectiveness. Various management techniques and management accounting practices improve financial performance if firms follow specific strategic priorities (Chenhall and Langfield-Smith, 1998; Naranjo-Gil, 2004).

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The business world has been impacted by a variety of changes, population have been growing rapidly; markets have been expanding often to the multinational level; customer expectations have been rising and expanding,  government demands have been multiplying, social responsibility, ecological concern and public institutions have been growing. As might expect, such changes are creating intensive competitive pressure, posing complex decision situations and squeezing available resources.  Organizations have responded in various ways diversifying goods and services rearranging organizational structures. Incorporating new technology participating a community action programs and last but not least re-examine information systems.

Development in information related equipment techniques and concepts collectively called information technology have been occurring at a breathtaking pace new version of computers terminals, and other devices are announced almost daily in business new techniques for solving business problems, based upon such disciplines as communications theory and operations research  are described in various technical  journals. Many of these developments promise to improve the effectiveness of information system and the quality of managerial decision making.

These changes and developments have both stimulated the need for more useful information and provided the means of attaining it. Consequently information systems are exhibiting varied and interesting effects. For instance, computers and related equipment are being applied to the collection, processing and dissemination of information. Decision models are being employed to organized data for decision making reports are being tailor made for managers upon demand.

Other effects of an organizational nature are appearing, for instance information system functions are being organized to manage information system  also, functional information system are being installed alongside accounting and other  information systems e.g. personnel information systems.

Since each member of this combined group focuses upon information for managerial decision makers, the resulting combination is known as the management information system. The Management Information System is an important portion of a firm’s communication e.g. banks overall information system.

Management information system is a system stores and retires information and data, processes them and presents them to management as information to be used in decision making. It must serve the basic functions of management which include planning, organizing, staffing, directing and controlling.

Since the development of management information system there have been numerous challenges of business computers were brought in to solve specifically technological or organizational problem and their use was perfectly accepted. It improves organization junctions and affects the basic structure and principle of the organization. As data manipulation and information are critical in the management of organization, computers play a key role in storing, retrieving and manipulating of data they are essential in operation of the organization.

Corporate operations and decision-making are widely based on information that has been provided or generated by individual and specific Information Technology systems. Such systems are used to collect, harvest, organize, and generate an output that would back up fast and sound business decision. Firms adopt new management techniques and systems with the purpose of enhancing the decision-making processes, improve results and minimize output costs (Henry and Mayle, 2003; AlMaryani and Sadik, 2012). Consequently, this is a way to enhance company operation effectiveness. Various management techniques and management accounting practices improve financial performance if firms follow specific strategic priorities (Chenhall and Langfield-Smith, 1998; Naranjo-Gil, 2004).