Answer To: You are required to undertake an in-depth study of one organization of your choice, so as to cover...
Shikha answered on Oct 02 2021
Student Name
Student ID 2
Management Information System
(SBM Bank)
Submitted By
Course
Professor
Date
Table of Contents
1. Introduction 3
1.1. Company Background 3
1.2. Organizational Hierarchy 4
1.3. Management Style 4
2. What is business information. why is it needed and what purpose does it serve in the organization? 5
2.1. The need for internal & external business information 6
2.1.1 Explain the strategic level 7
2.1.2 Tactical level 7
2.1.3 Operational level 7
2.2 Explain the uses of business information 8
3.0 An analysis of Information system and management information system 8
3.1 SMB’s current practice of MIS 9
3.2 Current mechanism of IS planning 9
3.3 Contributions & Limitations of MIS in improving the business information 10
3.3.1. Contributions 10
3.3.2. Limitations 11
3.4 The impact of MIS in the organisation 12
3.5 MIS Contribution in improving business information needs 13
3.6 Impact of IT on MIS & Org Performance 14
1. Introduction
In the digital world, organizations are continuously improving their ability so as to be competitive in the global market. These organizations are continuously endeavouring to propel their spryness level by improving the dynamic cycle to be more proficient and exceptionally compelling to meet the progressive changes of the market. With an end goal to accomplish this, many organizations are concerned about a pattern of reformist interests in the new management information systems. Management Information Systems (MIS) is considered as the key factor to implement an effective the decision-making process in an organization. It has been found that a high level of financial organizations often utilized Management Information Systems to encourage the provision of its services. In case of a bank, there is continuously existence of crisis because of its inefficiency in managing critical data (Karim, 2011). Hence, a management information system (MIS) is required to automate all its processes and to maintain the financial data of the customers. MIS helps in enhancing the speed of business processes with the adoption of technology in every field. In this report, we will consider the financial organization SBM bank. The main objective of the paper is to analyze the effect of MIS on overall performance of the banking organization. We will discuss here the contribution and limitations of MIS in banking sector.
1.1. Company Background
SBM Bank Ltd is one of the strongest financial organization of Mauritius which was established in 1973. The bank is comprised with 40 branches in Mauritius and Rodrigues. The number of employees in the bank are 1,532. The vision of the bank is to be one of the most trusted provider for financial services. The organization treats its customers with top most priority. The bank has the most established staff welfare including efficient training programs, skill upgrading and organizing sports events for staff. The organization’s objective is to set highest ethical standards by treating its employees with full integrity as well as respect. The stakeholders of the bank include shareholders, customers and the communities. The bank includes various modes of the transactions like ATM, POs, e-commerce, cards, cash handling and so on. With the increase in number of customers and daily transactions, it becomes difficult for the bank staff to handle all transactions effectively. It further, affects the decision-making process of the management. Hence, there is a need of implementation of MIS in the organization for effectively managing all business processes (SBM BANK (MAURITIUS) LTD, 2019).
1.2. Organizational Hierarchy
Source: (SBM BANK (MAURITIUS) LTD, 2019)
1.3. Management Style
SBM Group is comprised of a high caliber management team and that team provides the strategic direction in order to get the long-term success in every business sector, they serve. The Board of Directors is responsible for the vital direction of the bank and its long-term progress locally. The management team further develops the business strategies for each branch in order to get the best return for the shareholders and also provides consistent customer care. Management has the responsibility of providing effective leadership and responsibility for the issues of the Bank. Further, all strategies and analyzing financial affairs are checked by the Board of Directors. BOD is also responsible in providing corporate governance, risk management, any internal controls and all consistence issues. The high standards of integrity as well as transparency are provided by the management.
The management collects data from every department through various business processes and use this data in decision-making process. There is a process of motivating the employees by rewarding the ‘employee of the month’ award to most suitable and eligible employee. The management team always use its leadership qualities for effectively managing its team (SBM BANK (MAURITIUS) LTD, 2019). Also, Senior Management team also supports Chief Executive in daily activities like providing daily finance reports and suggesting CEO for further actions.
2. What is business information. why is it needed and what purpose does it serve in the organization?
Business information in case of SBM bank is the confidential financial details of its customers and stakeholders and their transactions in the bank. This is the information collected by the staff of the bank staff while attending customer or shareholders. Because of business elements and complexities, adjusting data frameworks to the organizational objectives has seemed to be a matter of concern for analysts and specialists in the course of the most recent decade. This challenge is severe that needs to be resolved with the implementation of an effective management information system (MIS) in the organization. It has been observed that making an effective decision in the organization is very critical for the success of the organization. The decisions will be effective if the information available is accurate and can be easily retrieved. The viability of each business data is reliant on the circumstance and substance of the business information system (Telbany and Elragal, 2014).
2.1. The need for internal & external business information
Internal data collected by the organization is the data that is collected by the company for better decision making and maintaining successful business operations. It will help in analyzing the strategies made by the bank are in the right direction or not. Four areas that are used to gather internal data include - sales, finance, marketing and human resources. The main reason for internal business information is to get the exact overview of case inflow and case out flow. It will help in maintaining the customers’ transactions details so that the same can be found whenever there is a need of it. These financial details will be maintained in order to use the available cash in an effective way. The number of hours worked by an employee in the bank will help in developing the correct payroll by calculating number of hours. Without the internal business information in SBM, the data will be saved on papers or the excel sheets. The redundancy of data will increase will the time taken for each process will increase that will bother the customer. Cash flow will provide the details of cash accepted in a particular period of time (Lofgren and Gravem, 2011).
The source of external information in SBM includes printed material, broadcast reports and online dissemination. It consists of information and business communication made with the external entities like shareholders, or any third-party external auditors. The main reason for maintaining external business information is to make a record made by any external entity so that same can be retrieved (EDITORIAL, INC., 2020).
2.1.1 Explain the strategic level
The main part of the business information is its strategic level which is mainly used at higher management levels in the organization. In case of SBM, it includes chief executives or directors or the management as the management is responsible for making decisions. It is the broad level of managing business information. As discussed above, SBM will include both internal as well as external business information. The strategic level in SBM will be on daily and monthly basis as cash inflow and outflow will be calculated on daily and monthly basis. The strategic planning will be done on monthly basis. These plans will be hidden from the staff and the management team will be responsible for the implementation of strategic planning because of confidential information that the bank consists of.
2.1.2 Tactical level
The next level to be considered in the organization is the tactical level which includes information planning and better decision making. The level of decision making will depend on strategic planning. It includes internal information and a few external components. Internal information is probably going to be work related like the total amount deposited by customers. The middle management will use this data for planning the next steps to increase the number of customers. The...