THE EFFECT OF MANAGEMENT INFORMATION SYSTEM ON OPERATIONAL PERFORMANCE: THE CASE OF COMMERCIAL BANK OF ETHIOPIA IN GURAGE ZONE, ETHIOPIA

Abstract

During the growth of a competitive global environment, there is considerable pressure inmost organizations make their operational, tactical, and strategic processes more efficient and effective, the role of management information system (MIS) is vital now a day in an organization because it has evolved to become an integral part of its business operations. The main purpose of this thesis is to present the effect of MIS on operational performance in a case study of a commercial bank of Ethiopia in Gurage Zone, by identifying the key issues and components of MIS that integrate the business operation in the bank to successfully achieve high operational performance. Both descriptive and causal research design was employed. The study targeted 112 Respondents selected through simple random sampling and purposive sampling from employees at different operational positions of commercial bank of Ethiopia, in Gurage Zone. Both primary and secondary data were collected using a questionnaire, interview, and document analysis. The collected quantitative data was analyzed using descriptive statistics that include frequency, mean, standard, and inferential statistics including regression and correlation analysis. Documents analysis were also used to supplement the quantitative data and for triangulation purposes. Based on the analysis the study found that the MIS has a positive effect on the operational performance of the commercial bank of Ethiopia, in Gurage Zone and it supports the operational performance by providing better service for internal and external customers, collaborating with the core business operation one with another, increase bank profitability, and support overall managerial function and decision making. From the finding the study would like to recommend for further study even MIS has positively affected the operational performance of the bank, the application of MIS hasso various challenges and has factors that affect the application of MIS therefore it is best tostudy on challenges and prospects of MIS application.