ABSTRACT
This study is an exploratory study, which attempts to examine if Organizational Decision Making could be improved by proper implementation of Management Information System. An organization needs information on which to base decisions concerning the current operations and future plans. In this dispensation of modern business, information are required to be cheap, accurate and timely, and it is only a computer based technology that possesses the speed and capability to provide this kind of information which is an invaluable tool for an organization’s management decision making. The methodology adapted involves the use of primary data, through structured questionnaire collected from sample of 72 respondents randomly selected and analyzed using the descriptive method to express the relationship among variables. The data were further subjected to chi-square statistical tool in testing the hypothesis from which the position of the research study was established. The result obtained showed that Organizational decision making could be improved by proper implementation of Management Information System. As such, we can deduce that proper decision making resulting from the implementation of a sound and functional Management Information System can go a long way in ensuring the survival of an Organization. It is vital to remember that, improvement in decision making is fundamentally meant to ensure customer satisfaction while organizations continue to flourish in success.
CHAPTER ONE
1.3 BACKGROUND OF THE STUDY
The rate at which public organizations are winding up these days is a serious signal that something is wrong with their decision making system. The deplorable state of majority of these public organizations such as the Power Holding Company of Nigeria (PHCN) in spite of the billions of naira being injected into the Power sector annually is having a ripple effect on the economy of Nigeria. A good number of these organizations have either been closed down owing to the fact that they could no longer fulfill the purpose for establishing them or have been privatized with the intent to address the anomaly as this has greatly increased the rate of unemployment and caused a sharp decline in the standard of living.
In recent past, a lot of measures such as downsizing and mere introduction of computers in the work place considered ideal to address this problem were initiated by the federal Government, but it yielded little or no results while the problem persists. This clearly points to the fact that, the managers charged with the corporate responsibility of making dynamic decisions that would put this organization on the path of sustainable growth and quality service delivery are not making the right decisions or do not have access to accurate, timely and quality information.
Managers and business leaders have to accomplish several functions and perform different roles. These roles are connected to communication, information and decision making. The decision
managers make often influence the lives of many individuals, business and even the whole society.
Decision making is one of the primary responsibilities of being a Manager. The quality of a manager’s decision is important for two principal reasons. Firstly, the quality of a Manager’s decisions directly affects his career opportunities, rewards and job satisfaction. Secondly, managerial decision contributes to the success or failure of an organization, (Cole,1996). It is against this backdrop that, Management Information System is considered as a veritable tool in addressing the issue of Poor Organizational Decision Making. Though, it is an established fact that, MIS may not always provide all the solutions to organization’s poor decision making, but it sure goes a long way in addressing it as far as the success of every organization is tied to the quality of Information available to the decision makers in the organization, (Harvey, 1994).
1.4 STATEMENT OF THE PROBLEM
The statement of problem in this study is to find out if organizational decision making can be improved by proper implementation of Management Information System in PHCN. In Nigeria today, a lot of business organizations are winding up. This no doubt, is as a result of the poor decisions made by those charged with the responsibility of managing such organizations. Over the years, the decision-making efforts of professionals and conventional managers have yielded little or no result as solution to the cause of this trend is not even in view.
Equally, managers’ functions, be it managerial or operational revolve around decision making. In view of this, any decision not carefully made may eventually lead to organization’s failure. This is where the problem of the study lies. It constitutes an inquiry into why managers make
poor decisions and also, to ascertain whether proper implementation of management Information system (MIS) can improve decision making in PHCN.
1.3 OBJECTIVES OF THE STUDY
1. To identify the MIS used by PHCN.
2. To assess the effectiveness of the MIS used by PHCN in Decision making.
3. To highlight the challenges faced by PHCN in the use of their current MIS.
4. To identify the other factors that makes for effective Decision making in PHCN.
5. To examine the importance of MIS on Decision making and organizational productivity.
1.4 RELEVANT RESEARCH QUESTIONS
Some of the questions addressed by this study include:-
1. What type of Management Information System does PHCN use?
2. What is the effectiveness of the MIS used by PHCN in Decision making?
3. What are the challenges of the current MIS faced by PHCN?
4. What other factors can make for effective Decision Making in PHCN?
5. What is the importance of MIS on Decision Making and Organizational productivity?
1.5 TEST OF HYPOTHESES Hypothesis One
Ho: PHCN does not use the Decision-Support-System. H1: PHCN uses the Decision-Support-System. Hypothesis Two
Ho: The use of computer based information does not guarantee effective decision making in
PHCN.
H2: The use of computer based information guarantees effective decision making in PHCN.
Hypothesis Three
Ho: The Decision-Support-System used by PHCN does not pose the challenge of centralized
Decision Making.
H3: The Decision-Support-System used by PHCN poses the challenge of centralized Decision
Making.
Hypothesis Four
Ho: Participative decision making is not an alternative factor that makes for effective Decision
Making in PHCN.
H4: Participative decision making is an alternative factor that makes for effective Decision
Making in PHCN.
Hypothesis Five
Ho: The use of Decision-Support-System does not improve the productivity of PHCN
H5: The use of Decision-Support-System significantly improves the productivity of PHCN.
1.6 SIGNIFICANCE OF STUDY
The study seeks to explain in a simple language how Managers of PHCN could improve on their Organizational Decision Making which will help them in the smooth running of the Organization through proper implementation of an up-to-date Management Information System in PHCN.
Also, this study is expected to offer recommendations based on the findings and conclusions and to encourage further research in the subject area.
1.7 SCOPE OF THE STUDY
For the purpose of this study, the researcher’s efforts will be limited to Power Holding Company of Nigeria (PHCN), Enugu Business Unit. Questionnaires will be limited to the sample population made up of Management and staff of the case Organization, with questions drawn to reflect the key variable to evaluate how proper Management Information System could improve the Organizational Decision Making of PHCN.
1.8 DEFINITION OF TERMS
ANALYST– An analyst is an experienced programmer who is able to understudy an environment and make recommendations on the suitable application programme that could be developed to automate the activities of such environment.
BACKUP– The process of transferring all data contained in online mass storage devices to offline mass storage devices for safe keeping.
COMPUTER– An electronic device engineered to accept input in form of data which it manipulates using list of instructions called programs to give an output in form of information. DATA– Collection of stored facts (Information in raw form)
DATABANK– A large collection of information which can be searched quickly especially through a computer.
ENTROPY– The rate of transfer of information in a message. It also measures the degradation or disorganization of a system.
HARDWARE– The physical components of the entire computer environment, that is, things that can be seen and touched.
HIERARCHY– Grades or classes ranked above one another.
INFORMATION– Specific human meaning given to data (processed data)
SYNERGY– The sum total performance of sub-system when achieved in harmony and greater than individual performances put together.
SYSTEM– An arrangement of many parts that work together to achieve a common goal.
SOFTWARE– The list of instructions that the computer uses.
SYSTEM BOUNDARY– The features that defines and delineates a system.
SUB–OPTIMALITY– Subsystem acting contrary to the goals of the whole system.
SUB-SYSTEM– The component parts that make up a system.
1.10 PROFILE OF POWER HOLDING COMPANY OF NIGERIA
The Power Holding Company of Nigeria (abbreviated PHC or PHCN); formerly the National Electric Power Authority (abbreviated NEPA) is an organization governing the use of electricity in Nigeria. The history of electricity development in Nigeria can be traced back to the end of the
19th century when the first generating power plant was installed in the city of Lagos in 1898. From then until 1950, the pattern of electricity development was in the form of individual electricity power undertaking scattered all over the towns. Some of the few undertakings were
Federal Government bodies under the Public Works Department., some by the Native Authorities and others by the Municipal Authorities, Electricity Corporation of Nigeria (ECN). By 1950, in order to integrate electricity power development and make it effective, the then colonial Government passed the ECN ordinance No. 15 of 1950. With this ordinance in place, the electricity department and all those undertakings which were controlled came under one body.
The ECN and the Niger Dam Authority (NDA) were merged to become the National Electric Power Authority (NEPA) with effect from the 1st of April 1972. The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed. Despite the problems faced by NEPA, the Authority has played an effective role in the nation’s socio- economic development thereby steering Nigeria into a greater industrial society. The success story is a result of careful planning, computerization of activities and hard work. The statutory function of the Authority is to develop and maintain an efficient co-ordinate and economical system of electricity supply throughout the Federation. The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organizations. This however, does not prevent private individuals who wish to buy and run thermal plants for domestic use from doing so. NEPA, from 1989, has since gained another status that of quasi-commercialization. By this, NEPA has been granted partial autonomy and by implication, it is to feed itself. The total generating capacity of the six major power stations is
3,450 megawatts. In spite of considerable achievements of recent times with regards to its generating capability, additional power plants would need to be committed to cover expected future loads. At present, efforts would be made to complete the on-going power plant projects. Plans are already nearing completion for the extension and reinforcement of the existing
transmission system to ensure adequate and reliable power supply to all parts of the country. By
1970, the Military Government appointed a Canadian Consultant firm “Showment Ltd” to look into the technical details of the merger. The report was submitted to the government in November 1981. By Decree No. 24 the ECN were merged to become the NEPA with effect from April 1, 1972. The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed. The day-to-day running of the Authority is the responsibility of the Managing Director.
In the early 1960s the Niger Dam Authorities (NDA) and Electricity Corporation amalgamated to form the Electricity Corporation of Nigeria (ECN). Then, immediately after the Nigerian civil war, the management of ECN changed its nomenclature to NEPA. What is currently referred to as the Power Holding Company of Nigeria was formally known as National Electric Power Authority.
For several years, despite consistent perceived cash investment by the Federal Government, power outages have been the standard for the Nigerian populace, however citizens of the country still do not see this as normal.
Generally, the tariff has been criticized as being too low compared to the cost of generating power. The federal government of Nigeria has increased the tariff to attract foreign investors since the 1st of July, 2010 in order to meet the growing concern for foreign investors into the electricity sector.
This material content is developed to serve as a GUIDE for students to conduct academic research
MANAGEMENT INFORMATION SYSTEM AND ORGANIZATIONAL DECISION MAKING (A STUDY OF POWER HOLDING COMPANY OF NIGERIA)
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