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THE INFLUENCE OF MANAGEMENT INFORMATION SYSTEM AND EFFECTIVENESS OF THE LGEA AND EDUCATION DISTRICT IN EPE LOCAL GOVERNMENT

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Business managers today, are much more concerned about the effect of competition than they were even a few years ago. They must react to the competitive threats not only from local source but also from regional, national and international source; likewise they must seek to explore all opportunities that are available in the immediate, national and Global environment. Deregulation has also increased competitive pressure for organizations to survive, grow and prosper. In such a competitive environment, managers must employ a lot of the resources at their disposal as efficiently as possible so as to accomplish the objectives and goals of the enterprise. Management Information System provides information in form of reports and displays to managers and many business professionals. For example sales managers may use their networked computer and web browser to get instantaneous display about the sales results of their daily sales analysis report to evaluate sales made by each sales personnel.

Management Information System also takes into account integrative nature of information flow as well as the structuring of the organization around decision centers. Standards of performance are part of any good plans; hence, determination of standards like other aspects of the planning process depends on the availability of relevant management information system. Management information system aids the functioning and monitoring of an organization. It also describes the components and resources to ensure the proper functioning of an organization.

Management information system has changed the physical layout of offices to accommodate local networks and departmental integrated systems. It is also a formalized procedure to provide management at all levels and in all functions with appropriate information from all relevant source to enable them make timely and effective decisions for planning, directing, evaluating, and controlling the activities for which they are responsible. A major task also facing management in almost every field of Endeavour is to plan carefully so that the quantity and quality of information obtained will be adequate to meet its needs.

One potentially powerful resource available to managers is Information Technology (IT), though it could also serve as a threat/problem, but the Top management has to be creative and strategic enough through their conceptual and intellectual capacity to explore full opportunities in all strategic decisions of the enterprise which affect the long term objectives of the Organization. More reports has shown how Information Technology has successfully given some companies an advantage over their competitors both in the National and Global Markets.

A Management Information System (MIS) is a subset of the overall internal control of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.

Financial accounting system is an important functional element or part of the total management information system structure. However, they are more narrowly focused on the internal balancing books to generate ledger and other financial accounting system. For example, accrual adjustment reconciliation and correcting entries used to reconcile the financial system to the general ledger are not always immediately entered into other management information systems. Accordingly, although management information systems and accounting reconciliation totals for related listing and activities should be similar, they may not necessarily balance.

Institutional management information systems should be designed to achieve the following;

       Enhance communication among employees.

       Deliver complex materials throughout the institution.

       Provide an object system for recording and aggregate information.

       Reduce expenses to labour intensive manual activities.

       Support the organizations strategic goals and direction.

In spite of the fact that management information system supplies decision makers with facts, likewise, it supports and enhances the overall decision making process. MIS also enhance job performance throughout an institution. At the most senior level it provides the data and information to help the board and management to make strategic decisions(top management decisions or long lasting decisions) and at other levels of management MIS provides the means through which the enterprise activities are executed, monitored, controlled and information are distributed to management, supervisors, employees and customers.

Effective MIS should ensure the appropriate presentation, formats and time frames required by operations and senior management are met. MIS can be maintained, evaluated and developed by either manual or automated systems or a Combination of both. It should always be sufficient to meet an enterprise’s unique business goals and objectives. Likewise it seeks to explore all available opportunities that can be explored by the organisation in the immediate, national and global economies. The effective delivery of an enterprise’s products and services are supported by the MIS which has a great influence on the market share portion, revenue generation, sales volume achieved, recruitment of best qualified candidates, the goodwill of the enterprise and the customers’  perception  about  the  organization  and  its  output.  These  systems  should  be comprehensive, accessible, flexible and useable at all appropriate levels of the organization’s activities.

MIS is a critical component of the institution’s overall risk management strategy; it supports management’s ability to perform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk Management involves four main elements, which include:

Policies or practices. Operational processes. Staff and management. Feedback devices.

Frequently, operational processes and feedback devices are intertwined and cannot easily be viewed separately. The most efficient and useable MIS should be both operational and informational. As such, management can use MIS to measure performance, allocate, manage and control resources, and help an institution comply with regulatory requirements. One example of this would be the managing and reporting of loans to insiders. MIS can also be used by Management to provide feedback on the effectiveness of risk controls.

1.2    Statement of the Problem

According to Barry (1988) information is a generic term, because it has been described as the livewire of any enterprise (public, private, local firm, Multinational company, manufacturing, merchandise, and franchise business, retailing stores, multiple chain stores or service oriented organization). It provides the relevant concept and intelligence to enable the right thing to be done at the right time.

The problems to be studied are as follows:

       Is there any need for management information system in Nigeria business  Organization.

       Does the status of a business determine the type of information system in it?

       Does MIS aid decision making in an organization?

       Could there be any room for development or improvement of MIS in Nigera?

1.3    Objectives of the Study

       To determine if MIS policies or practices, processes, objectives and internal control are adequate for effective administration of local governments

       To evaluate whether MIS application provides users with timely, accurate, consistent, complete and relevant information for effective administration of local governments

       To  determine  whether  MIS  application and enhancement  system exist  to adequately

supports corporate goals for effective administration of local governments

       To identify the determine factors influencing MIS process in for effective administration of local governments

1.4    Research questions

       What if MIS policies or practices, processes, objectives and internal control are adequate for effective administration of local governments

       Can we evaluate whether MIS application provides users with timely, accurate, consistent, complete and relevant information for effective administration of local governments

       Can we  determine  whether  MIS  application and enhancement  system exist  to adequately

supports corporate goals for effective administration of local governments

       Can we identify the determine factors influencing MIS process in for effective administration of local governments

1.5 Research hypothesis

H0: Management information system does not have no significant effect on the effective running of local governments

H1: Management information system have no significant effect on the effective running of local governments

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