CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Decision making is the process of selecting the best Solution among alternatives in order to solve problems. A model for practical, effective, strategic decision making and the importance in getting decisions approved, is to understand the practice of organizations decision making processes and to fit the strategic proposal within that framework. Decision making, however, often tends to vary from one decision making orbit to another, providing hope for any new proposal, but gloom for those seeking consistent, rational, just and equitable decisions. As it sounds, strategic decision making is unique by its nature. (www.pearsoned.com.ac/hubbard)

In ancient Greek, ‘Stratos’ was the term for the army and so in Military term ‘Strategy’ referred to the act of the general. So the origins of ‘strategy-comes from the Military arena.

According to Alfred Chandler (1962), strategy is defined as “the determination of the basic-long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals”. Porter relates strategy to the success or failure of a Company “obtaining competitive position or series of competitive positions that lead to superior and sustainable financial performance (Michael E. Porter, 1991).

Strategy nowadays therefore is big. The top levels of the Organizations are generally involved in preparing plans for the future –for finance, and growth by acquisitions, innovation in products, developing new markets and increasing internal efficiency. Therefore, because of recent technological and social changes and competition from rival organizations, there is a need in modern times for strategies to achieve agreed goals and objectives, giving a sense of purpose and direction to the organization. (Neil Ritson, Strategic Management bookboon.com)

The quality of a company’s decision making helps it gain an advantage over competitors. Business decision must reflect an organization’s aims, its purpose, such as to maximize returns for its shareholders. They also relate to its objectives, its goal, such as to be the market leaders in its field. To achieve its aims and objectives, a business puts in place strategies. This approach applies regardless of the size of the organization

Management information system is a flow of procedures for data processing based on the computer, and integrated with other procedures in order to provide information on a timely and effective manner to support decision making and other management functions. The use of management information systems for more effective decision is a key factor for the production of new products and services, to collect information on activities, products produced, productivity, hiring new employees, tracking stock and setting target of performance. The goals and objectives of the Management Information system are the products of business goals and objectives. It helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the organization.

An essential factor playing a role in the process of decision-making is the information on the internal and external environment of the organisation, relevant to the situation to be considered. Precisely there, in the availability of information, a revolution has taken place in recent years with new information acquisition and analysis methods such as the Internet becoming common practice, often called the ‘third industrial revolution’ (Smith, 2001). The diversity of information sources offered by news agencies, business information publishers, patent offices, etc., may benefit from a better understanding of the actual use made by an influential section of their clientele.

There is an extensive literature available on the subject of strategic decision-making focusing on studies of the psychological and sociological motivation of group decision making; of the choice behaviour in these processes using modelling techniques from mathematics and statistics and on analysis of the influences exerted on the decision makers such as company politics and power clashes. But this study, however, focuses on factual accounts of the way executives reach these decisions and the information used in this process

1.2 STATEMENT OF PROBLEM

In spite of many studies that have been carried out in the area of strategic decision-making especially during the 1990's, we still know little about strategic decision-making process and factors affecting it. This paper builds on previous theoretical and empirical studies to determine the extent to which contextual factors and management information system impact the strategic decision-making processes, hence, the study is on the role of management information system and factors influencing strategic decision making process in an organization

1.3 OBJECTIVE OF THE STUDY

The aim of this research is to find out the role of management information system and factors influencing strategic decision making process in an organization. Other objectives include;

1. To analyze the relationship between management information system in decision making in organizations

2. To know how management information system affects the role of decision making in an organization

1.4 RESEARCH QUESTIONS

1. What is the role of management information system and factors influencing strategic decision making process in an organization?

2. How important is information, both from within the organization and external from the environment of the organization as a basis for the taking of strategic decisions by executives?

3. What is the relationship between management information system and decision making in an organization?

4. How does management information system affects the role of decision making in an organization?

5. Does the enhanced availability of information resources and information acquisition and analysis methods predominantly through new information services such as available on the Internet, have a noticeable effect on the quality of the strategic decision-making process?

1.5 SIGNIFICANCE OF THE STUDY

The research work which is based on the role of management information system on decision making in the organization will be vital to executives, heads of departments and the organization at large in making strategic organizational decisions.

It will also serve as a source of reference to future researchers as it will provide tangible information on related study

1.6 RESEARCH HYPOTHESIS

Hypothesis 1

H1: management information system has significant effect on strategic decision making in an organization

H0: management information system does not have significant effect on strategic decision making in an organization

Hypothesis 2

H1: management information system has a direct positive relationship with decision making in an organization

H0: management information system has a direct negative relationship with decision making in an organization

1.7 LIMITATIONS OF THE STUDY

The research work was conducted on the topic the role of management information system and factors influencing strategic decision making process in an organization , considering KPMG and ARM life Plc as its case study.

1.8 DEFINITION OF TERMS

i. Management Information System (MIS); broadly refers as computer base system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization in order to provide past, present and prediction information.

ii. ORGANIZATION; a social unit of people that is structured and managed to meet a need or to pursue collective goals

iii. TECHNOLOGY; a branch of knowledge that deals with the creation and use of technical means and their interrelation with life, society and the environment.

iv. DECISION MAKING; the act or process of deciding something especially with a group of people.

TABLE OF CONTENTS

Table of Contents

Title Page…………………………………………………………………….

Certification ………………………………………………………………….ii

Approval Page…………………………………………….…….……….……iii

Dedication………………………………………….……………………........iv

Acknowledgements……………………………….…………………………...v Abstract …………………………………………………….……………........

Table of Contents……………………………………………………..….......

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of problem

1.3 Objective of the study

1.4 Research questions

1.5 Significance of the study

1.6 Research hypothesis

1.7 Limitations of the study

1.8 Definitions of terms

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

2.2 Information as a factor in the strategic decision-making process

2. 3 Strategic decision-making

2.4 Factors affecting strategic decision-making process

2.5 Role of the management information system in decision making

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

3.2 Research design

3.3 Area of the study

3.4 Population of the study

3.5 Sample size/sampling techniques

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction

4.2 Result and analysis

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

5.2 Conclusion

5.3 Recommendation

BIBLIOGRAPHY/REFERENCE

APPENDIX

QUESTIONNAIRE