VIEWS: 325 PAGES: 53 POSTED ON: 6/9/2011
MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT (A CASE STUDY OF BURSARY DEPARMENT FEDERALPOLYTECHNIC EDE OSUN STATE) PREPARED BY YUSUFF MUSIBAUDEEN ADETUNJI MATRIC NUMBER: 2007224010254 A PROJECT REPORT SUBMITTED TO DEPARTMENT OF ACOUNTANCY FACULTY OF FINANCIAL MANAGEMENT STUDIES THE POLYTECHNIC IBADAN, IBADAN. IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOIR THE AWAED OF HIGHER NATIONAL DIPLOMA IN ACCONUTANCY NOVEMBER, 2010 1 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CERTIFICATION This is to certify that this research work was carried out by YUSUFF MUSIBAUDEEN ADETUNJI Matric Number 2007224010254 the department of Accountancy, Faculty of Financial Management Studies, the Polytechnic Ibadan, Ibadan Oyo State. ____________________ _____________________ (SUPERVISOR) DATE ____________________ _____________________ H.O.D. DATE 2 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. DEDICATION This research work is dedicated, of course to the glory of Allah (SWT the fashioner, creator of the whole universe. Who has completed the journey even before embarking on it. And to all that contributed to the life of people positively, and to my reserved loving parents Mr. & Mrs. Yusuff. 3 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. ACKNOWLEDGEMENT All praises and adoration are due to Almighty Allah who has compassionately granted me the favour of completing this project and I thank Him for His divinely assistance for the successful completion of this programme. I beseech Him to bestow on me divine guidance in all my endeavours. I acknowledge with thanks the direct and indirect contribution of my supervisor Mrs. Akande for scrutinizing the project, and for her comment and criticism which make the project to see the light of the day. I say a big thank you. My unflinching appreciation goes to my loving and caring parents Mr. & Mrs. Yusuff for the moral and spiritual upbringing they gave me. I pray Allah to reward my father with paradise. I am eternally indebted to my reserved loving mother, Mrs. Yusuff who has been trying tooth and nail to ensure my success I beseech Allah to grant her sound health and long life and make her reap the fruits of her labour (Amin). Not forgetting my wife Kuburat for her word of encouragement and motivation. I say God bless you. I cannot but appreciate the efforts of all my respondents especially staffers of bursary department Federal polytechnic EDE. Thank you all. My profound appreciation goes to those that have in one way or the other contributed to my life. Permit me to mention few names: Mr. Farinde, Mrs. Owoyemi, Alfa Wale, Daddy Aisha, Mr. Ifede, Allah knows you all. May He reward you abundantly. A friend in need is a friend indeed says an adage, for this I am highly grateful to the following intimates colleagues, Semiu, Ally, Ismail, Tesleem, Abu Aminat, Muhydeen Oyeleye, Lanrewaju, Ibrahim, Sulaimon, Abdullahi, Olagbaje, Femi, Toyin, Kanmi, Taiwo, Mubarak and others for their love perseverance and tolerance towards humanity and their commitment to reach a greater height. I do also thank with dignity, the Muslim Student Society of Nigeria Polytechnic Ibadan branch, The Muslim Congress,for their spiritual advise I say Jazakumullah Kaeran. 4 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. My trhanks will be incomplete if I fail to appreciate the support of my boss and father and mother in my office, Aunty Bisi, kayode Mr. Otunuga, Mrs. Olaniran, Mr. Olalere, Mr Akin Amole, Mrs. Oni, Mrs. Opaogun, Iya Ibadan, Mrs Kolawole, my HOD Mrs. Owoyemi and others too numerous to mention. And the management of Federal Radio Corporation of Nigeria Ibadan for giving me time to complete my study out of the tight schedule. Thank you. Finally, I must not forget to mention my simblings at home for their patient, tolereance and understanding Asifa, Fatimoh, Amidu, Saheed, sarafa. May God plead their course. Amin. 5 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. ABSTRACT The title of the study is Management Information System in an Accounting Environment Case Study Federal Polytechnic Ede Osun State. The Objective of the study is to examine the process and importance of management information system in an accounting environment and to examine the effect of timely information as a basis for decision making towards actualizing organization objective. Primary and secondary data were collected to help achieve the objectives. The sample size chosen was Bursary department of the federal polytechnic ede osun state being an academic environment. Questionnaire was used to collect data and the questionnaire was randomly distributed to the respondents, percentage comparison method and chi square methods were used in analyzing the data collected. It was revealed in the study that effective decision making and organizational efficiency relies heavily on the quantum of quality information made available, hence the need for appropriate management information system. Accounting environment just like any other business environment requires information to enable actualization of the organization objective. Preparation Financial statement does not come as a single entity but as a direct outcome of the basic accounting information. In the case of bursary department EDE basic accounting information includes school fees which form the basic revenue of an Academic institution, wages of teaching and non teaching staff which also form the core of expenditure as well as stationeries, medical fee, graduation fee, etc. The study concluded that adequate attention must be focused on the need for an effective and efficient management information system. Management commitment, skilled Information technology compliance staff, necessary gadgets 6 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. and equipment system review must all exist to attain and derive fully the benefits of management information system. It was recommended that the support of all stakeholders must be sought before installing management information system; this will help realize the objective of installation as there will not be need for sabotage. This research work is segmented into five chapters, each of which focuses on the relevant part of the study. Chapter one is on the introduction to the study. Chapter two addresses review of relevant literature; write up, journals, which are of interest to the study. This is done with a view to obtain more information. Chapter three shows how the research was carried out with an in-depth in to the case study. Chapter four includes data collection, instruments used, administration and interpretation. Chapter five includes summary of the finding in the research work, conclusion and recommendation based solely on the research findings. It also covers areas which may be of interest for further research work. 7 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. TITLE PAGE i CERTIFICATION ii ACKNOWLEDGEMENT iii ABSTRACT iv-v TABLE OF CONTENTS vi CHAPTER ONE 1.0 INTRODUCTION 1-2 1.1 BACKGROUND INFORMATION 2 1.2 STATEMENT OF THE PROBLEM 3 1.3 OBJECTIVE OF STUDY 4 1.4 RESEARCH QUESTIONS AND HYPOTHESIS 4 1.5 SIGNIFICANCE OF STUDY 5 1.6 REASEARCH METHODOLOGY 5 1.7 SCOPE AND LIMITATION OF STUDY 6 1.7.1 SCOPE 6 1.7.2 LIMITATION 6 1.8 PLAN OF STUDY 6 1.9 DEFINITION OF TERMS 7 CHAPTER TWO 2.0 INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM 8 2.1 HISTORICAL DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM 9 8 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.2 HISTORY OF BURSARY DEPARMENT POLYTECHNIC, EDE 9-11 2.3 FUNCTION OF BURSARY DEPARMENT 11 2.4 CHALLENGES OF BURSARY DEPARMENT 11 2.5 BOOKS MEAINTANIED IN BURSARY DEPARTMENT 11-12 2.5.1 INFORMATION VERSUS DATA 13-14 2.6 VALUE OF INFORMATION 14 2.7 IMPORTANCE OF MANAGEMENT INFORMATION SYSTEM 15-16 2.8 DEVELOPING AN EFFECTIVE MANAGEMENT INFORMATION SYSTEM 16-18 2.9.0 COMPUTER AND INFORMATION NEEDS MANAGEMENT 18 2.9.1 THE COMPUTER CAPABILITIES 19 2.9.2 CO MPONENTS OF COMPUTER 20 2.9.3 INFORMATION NEEDSOF MANAGEMENT 20-21 2.9.4 CHALENGES OF MIS 21 2.9.5 SYMPTOMS OF INADEQAUTE MANAGEMENT INFORMATION SYSTEM 2.9.6 GUIDELINES FOR IMPROVEMENT MANAGEMENT INFORMATION SYSTEM CHAPTER THREE 3.0 RESEARCH METHODOLOGY 23 3.1 RESEARCH DESIGN 23 9 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 3.2 SAMPLE SIZE 23 3.3 SOURCE OF DATA COLLECTION 24 3.3.1PRIMARY SOURCE 24 3.3.2 SECONDARY SOURCE 24 CHAPTER FOUR 4.0 DATA PRESENTATION, ANALYSIS AND INTERPETATION 25 4.1 DATA PRESENTATION 25-27 4.2 DATA ANALYSIS 27-33 4.3 FINDINGS 34 4.4 FINDINGS CHAPTER FIVE 5.0 INTRODUCTION 35 5.1 SUMMARY 35-36 5.2 RECOMMENDATION 36-37 5.3 CONCLUSION 37 QUESTIONNAIRE REFERENCES 10 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CHAPTER ONE INTRODUCTION All businesses share one common asset, regardless of the type of business. It does not matter if they manufacture goods or provide services. It is a vital part of any business entity, whether a sole proprietorship or a multinational corporation. That common asset is information. Information enables us to determine the need to create new products and services. Information tells us to move into new markets or to withdraw from other markets. Without information, the goods do not get made, the orders are not placed, the materials are not procured, the shipments are not delivered, the customers are not billed, and the business cannot survive. But information has far lesser impact when presented as raw data. In order to maximize the value of information, it must be captured, analyzed, quantified, compiled, manipulated, made accessible, and shared. In order to accomplish those tasks, an information system (IS) must be designed, developed, administered, and maintained. Therefore an information system (IS) is any combination of information technology and people's activities using that technology to support operations, management, and decision-making. In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also the way in which people interact with this technology in support of business processes Some make a clear distinction between information systems, and computer systems ICT, and business processes. Information systems are distinct from information technology in that an information system is typically seen as having an ICT component. Information systems are also different from business processes. Information systems help to control the performance of business processes. At the start, works in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting 11 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the collection of mass of data, important and to the point data that is needed by the organization was stored. Early on, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time these applications became more complex and began to store increasing amounts of information while also interlinking with previously separate information systems. As more and more data was stored and linked, man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term "MIS" arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. 1.1 BACKGROUND INFORMATION A Management Information System (MIS) is a system or process that provides information needed to manage organizations effectively. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used 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. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making,. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. 12 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Any successful MIS must support a business‟s Five Year Plan or its equivalent. It must provide for reports based upon performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time. Professor Allen S. Lee states that "...research in the information systems field examines more than the technological system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge when the two interact Therefore, Management Information System in an Accounting Environment, the case study of Bursary Department, Federal Polytechnic, Ede, Osun State deals with the process of disseminating managerial information from the top hierarchy staff down to the low hierarchy staff in this department, which is depicted in an organizational chart of this department to be shown in Chapter 3 of this project work. 1.2 STATEMENT OF THE PROBLEM Numerous studies have been carried out around the world on the introduction and the use of MIS in organizations. From the finding of these studies, it would appear that where difficulties have been encountered, it is usually due to the following factors: a. Lack of senior management commitment. b. Lack of management or users involvement with the design of the system. c. Management(s) lack of computer skills. d. Management not being aware of the full facilities available and how they can be used. e. Communication problems between users, management and designers, due to lack of appreciation to relative expertise. f. Concentration on using computer for operational or administration tasks rather than tactical or strategic tasks. 13 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. g. Resistance to change 1.3 OBJECTIVE OF STUDY The main objective of this study centers on the need for management information system in organization. The necessity of information especially good Management Information System (MIS) in an Accounting environment of which Bursary Department is our sampling is not something to be overlooked. The following are the aims of this research work a. To assist management to plan the most effective use of resources in generating information which are needed for effective decision making? b. To assist management to choose between alternative course of action. C. To aid management in controlling day-today operation, e.g. comparison statement between actual results achieved and those planned. 1.4 RESEARCH QUESTION AND HYPOTHESIS This study intends to test the level of effectiveness and reliance on Management Information System in an accounting environment. For this purpose, the research questions and relevant hypothesis will be formulated, the research questions are: What are the impacts of sound MIS in an accounting environment of any organization? What are the hindering factors on MIS? The relevant hypothesis base on which the data collected will be analyzed are propounded below: Ho: Does the qualification and experience of staff have impact on sound MIS. Hi: The qualification and experience of staff does not have any impact on sound MIS. 14 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 1.5 SIGNIFICANCE OF STUDY Provision of good Management Information System (MIS) which should be reflected from an organizational structure of any establishment especially Accounting Environment of such establishment is of relative importance. MIS which provide direct link between the management committee for the purpose of running the activities of the organization in and efficient ways and providing permanent solution to any shortcomings whatsoever that may erupt. Many systems have been developed and applied in transmitting meaningful information to produce the desired goals. Significance of this study is to examine the impact both favorably and unfavorably, that the application of sound MIS has in an Accounting environment. Its contribution to the development of organization. This study will be of help to business oriented in Nigeria on the need to continually assess their information system to determine its strict application, identify any shortfall and to instantly correct such deviation. The study will also undoubtedly be of important to some newly developed firm and infant industry to be aware of importance of sound MIS in an organization and take advantage of technological innovation for rapid development. 1.6 RESEARCH METHODOLOGY The study was carried out through a review of relevant literatures. The World Wide Web (internet), Textbooks, The Polytechnic Ede portal was consulted to get relevant information on the research topic. In addition, questionnaire and structured oral interview method were used as data collection techniques in order to obtain necessary information. The questionnaires were distributed to the staff of Bursary Department, Federal Polytechnic, Ede Osun State. 15 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 1.7 SCOPE AND LIMITATION OF STUDY 1.7.1 SCOPE This project focuses on the Management Information System in an Accounting environment. Since the MIS being employed is different from one organization to another, due to level of technological advancement and technical know how from one country organization to another. Therefore, it proves somehow difficult and impossible to cover all organization with modern MIS in Nigeria. Thus, the sample frame of BURSARY DEPARTMENT OF FEDERAL POLYTECHNIC, EDE, OSUN STATE, NIGERIA is considered appropriate being an academic environment of Federal myth. The findings obtained from this study will then be generalized to the accounting environment of any establishment in Nigeria. 1.7.2 LIMITATION It is only a sample that will be selected and findings generalized over all other accounting environment in any organization. This is due to limited financial resources, time factor and availability of respondent. However, the limitation will not in any-way have adverse effects on the study, since any Organization must have sound MIS, though there may be slight difference in MIS from one organization to another. Every effort within our efforts is therefore gathered towards the realization of set objectives. 1.8 PLAN OF STUDY This research work comprises of five chapters which are logically arranged to suit the purpose of our study. Chapter one introduces the topic extensively, chapter two deals with the reviewing of relevant literatures while chapter three is based on the case study and instruments of research. Data presentation, analysis and comment are done in chapter four, while summary, recommendation and conclusion is done in the last chapter. 16 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 1.9 DEFINITION OF TERMS 1. DATA: According to “WIKIPEDIA” Data refers to qualitative or quantitative attributes of a variable or set of variables. Data (plural of "datum") are typically the results of measurements and can be the basis of graphs, images, or observations of a set of variables. Data are often viewed as the lowest level of abstraction from which information and then knowledge are derived. Raw data refers to a collection of numbers, characters, images or other outputs from devices that collect information to convert physical quantities into symbols, which are unprocessed. 2. INFORMATION: According to “BUSINESS DICTIONARY” information In general, is raw data that has been verified to be accurate, timely, specific and organized for a purpose. It is presented within a context that gives it meaning and relevance, and which leads to increase in understanding and decrease in uncertainty. 17 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CHAPTER TWO 2.0 INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM No effective decision can be taken and implemented to solve any problem, unless the full information relating to the problem and its surroundings is made available to the management. Not only should this information be made available, but it must be made available quickly. The right information at the right time reduces the risk of wrong decisions. The proper collection, handling and providing the necessary information to the right managers as soon as possible could be a tremendous boom to the control function. Management Information System (MIS) can be defined as “a formal method of collecting timely information in a presentable form in order to facilitate effective decision making and implementation in a presentable form in order to facilitate effective decision making and implementation in order to carry out organizational operations for the purpose of achieving the organizational goals. A little more complete definitions of MIS has been developed by the Management Information System committee of the Financial Executive Institute which defined MIS as “a system designed to provide selected decision – oriented information needed by management to plan, control and evaluate the activities of the corporation”. It is designed within a framework that emphasizes profit planning, performance planning and control at all levels. It comprises the ultimate integration of acquired business information sub-system both financial and non- financial within the company. Due to government regulations and the complexity of business and industrial operations with their attendant paperwork have created a tremendous amount of information that must be handled and used. The entire paperwork involved in each transaction, paperwork required in ordering each item in the inventory from the manufacturers, filling of all this information for easy access, can give us some ideal about the information requirements of modern day businesses. 18 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.1 HISTORICAL DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM The role of business information system has changed and expanded over the last four decades. In the incipient decade (1950‟s and ‟60), “electronic data processing system” could be afforded by only the largest organizations. They were used to record and store book keeping data such as journal entries, specialized journals, and ledger accounts; this was strictly an operations support role. By the 1960s “Management Information System” were introduced or used to generate a limited range of predefined report, including income statement (they were called profit and loss back then), balance sheet and reports. They were trying to perform a decision making support role, but they were not up to the tasks. By the 1970s “decision support system role, were introduced. They were interactive in the sense that they allowed the user to choose between numerous operation and configuration. Not only was the user allowed to customize outputs, they also could configured the programs to their specific needs. There was a cost though. As part of your mainframe leasing agreement, you typically had to pay to have an IBM system developer permanently on site. The 1980s also saw the first commercial application of artificial intelligence techniques in the form “Expert System” The 1990s saw the introduction of “Strategic information system”. This was largely because of developments in the subject of strategic management by scholars M. Porler, T. Peter e.t.c in the 1980s. Competitive advantage becomes a hot management topic and software developers were happy to provide the tools. The role of business information system had now expanded to include strategic support. The latest step was the commercialization of the Internet and the growth of intranets and extranet at the turn of the century. 2.2 HISTORY OF BUSRARY DEPARTMENT POLYTECHNIC EDE The Federal Polytechnic Ede, Osun state, Nigeria is a technological institution engaged in education, research and training targeted at sustainable development of the nation. The institution was established as a tertiary educational institution for the provision of courses of instruction, training and research in areas of science, technology, management and other fields of applied learning relevant to the human resource needs of the nation. 19 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. The institution came into existence in February 1992 via Decree No. 33 of 25th July, 1979 as amended by Decree 5 of 1993. The function of the institution as specified in the decree are as follows. 1. To provide full-time or part-time courses of instruction and training in: (a)Technology, Applied Science, Commerce and Management; and (b) Such other fields of applied learning relevant to the need of the Federal Republic of Nigeria in the areas of industrial and agricultural production, distribution and for research in the development and adoption of techniques as the academic Board and the Council may from time to time determine. 2. To arrange Conferences, Seminars and Study Group relative to the field of learning specified in paragraph one above. 3. To perform such other functions as in the opinion of the Council which may serve to promote the objectives of the Polytechnic. The Polytechnic took over the old Baptist Teachers College from the National Youth Service Corps (N.Y.S.C.) which served as the Orientation Camp for Corps members. This was achieved with the cooperation of Ede Local Government and Osun State Ministry of Education. The responsibility for establishing and planning the take-off of the Polytechnic was vested in the Task Force Committee constituted by the Federal Ministry of Education and headed by Engr. Musa Abdullahi. In October 1992, interview for Senior Staff was conducted at the Industrial Training Fund (ITF) Office, Ibadan, by the Task Force. With the arrival of the Pioneer Rector, Chief Jimi Bamgbose from the United States of America, the Polytechnic took off properly in January, 1993 and this subsequently paved way for the admission of 847 Students (pioneer students) on 13th April, 1993. Since then, the Institution has grown from strength to strength. The department took off with the following departments/officers Bursary office Cash office Expenditure control 20 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Store Main account. Early 1994, the bursary expanded which increases the numbers of unit. In addition to the above are: Student Account Loan and advance and Final Account. However, in December 1993, the number of staff was thirteen (13), the composition of seven (7) senior staff and six (6) junior staff but as at to 2010, there are over twenty (20) member of staff in the department. 2.3 FUNCTION OF BUSARY DEPARTMENT Provision of statutory account for external auditor Provision of information on finance for management uses Raising of local purchase order(LPO) Custodian of institutional funds. Financial advisory service to management in compliance with relevant statute and in reflection of economic reliance. Preparation of sturdy financial returns and report to external agencies e.g. Education Trust Fund, Osun State Government, National Board for Technical Education, Tax Authority, e.t.c. 2.4 CHALENGES OF BURSARY DEPARTMENT In the year bursary department tart their function, they encounter the following difficulties. Inadequate member of staff Lack of equipment Lack of furniture Personnel problem. 2.5 BOOKS MAINTAINED IN BURSARY DEPARTMENT Bursary department operates government accounts, various book and records are maintained for the purpose of collecting, sorting, analyzing and summarizing relevant accounting data and eventual preparation of final account. The books and records maintained can be broadly categorized as follows: Cash book 21 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Abstract book Memorandum accounts Journal entries Ledger accounts a. CASH BOOK:- The following cash book are usually maintained; I. Petty cash book II. Main cash book Primarily, cash book is the record of day to day activities of transactions of the organization. b. Abstract Book: - These are book used to classify expenditures according to subheads. The expenditure classify can in totals be conveniently used for posting into the ledger account or for extraction into transcripts or both. c. Memorandum Accounts: - These accounts do not form part of double entry system. As a result of government accounting system which is mainly on cash basis in recording transactions and events, the book are often used as a supplement to the system. d. Journal Entries: - This is used to enable transfers to be made from one account to the other. e. Ledger Accounts: - They are of three types: Main General and Subsidiary ledger Main Ledger contains the following account : Grant Release Requisitions Head Expenditures e.t.c General Ledger: - This is also an annual ledger which records the net transaction or a particular head of accounts month to month. It is the summary of the main ledger. Subsidiary Ledger:-This ledger contains account for each sub-head of expenditure in respect of which the Accounting Officer is required to render appropriate accounts. 22 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.5 INFORMATION VERSUS DATA Information must be differentiated from data. Data are facts that are not currently being used for decision making purposes. Typical data may include records about payroll, account receivables data on personnel in personnel files e.t.c Information, on the other hand, is processed data which is directly used in the decision making process. For example; a customer‟s invoice in itself is data. However, if we take this data from the customer‟s invoice and process it in such a form so that it can be used in sales analysis and inventory management, then it and control of sales and inventory. The transformation from data to information involves six functions. This concept is displayed as follows: Source Management Output Assembly Processing Analysis Storage Data Storage and Retrieval Information Evaluation Dissemination Source: Adapted from Keith K. Cox and Ben M. Enis, “The marketing Research Process,” Good year publishing company, 1972, P.19. I n the above system: Assembly means finding and gathering data together into one file. Processing means that the data has been summarized, edited and processed. Analysis means that data has been analyzed and treated to yield useful statistics such as percentages, ratio e.t.c. 23 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Storage and Retrieval means that such data has been properly indexed, coded for identification, field and provisions made for its quick relocation and retrieval when it is necessary. Evaluation means the determination of the usefulness of such processed data. Such evaluation and its degree of accuracy would depend upon the needs of the decision maker. Dissemination means the sending of such evaluated information to decision maker. 2.6 VALUE OF INFORMATION To be useful, the information must be available, in the desirable quality and quantity and at the time when needed. Each of these factors is explained further as follows: a. Availability: - All decision is based upon information. The more accurate an information is the better the quality of decision. Sometimes, when the information is not available, the decision cannot be made, but these decisions are highly subjective in nature and the results highly uncertain. Information reduces uncertainty. The more relevant information is available to the managers for decision making, the more certain are the outcomes of such decision. b. Quality: - Quality of information describes its compactness and accuracy. Inadequate, incomplete or incorrect information should be avoided. c. Optimal Quantity: - Too much information is a big burden on management and cannot be processes in time and accurately due to “bounded rationality”. Bounded rationality the limit of the thinking process which cannot sort out and process large amounts of information. On the other hand, too little information may leave out some important aspects that are necessary input to useful decision making. d. Timelines: - Information must be available when needed. Sometimes some crucial decision can be delayed because proper and necessary information is not available in time resulting in missed opportunities. 24 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.7 IMPORTANCE OF MANAGEMENT INFORMATION SYSTEM It is very important to set up effective management information systems for the following reasons. 1. Most organization have grown in size and complexity: - These results in management being removed from the scene of the operation and hence must rely on the information provided to them by the line supervisors about any operational problems needing attention. The dynamic of the environment further adds to the complexity of organizational operations. Some of the continuously changing factors affecting the amount and type of information handled are: Economic: - These include sudden changes in the economic structure in any part of the world, sudden energy crisis, world wide inflation rate, higher interest rates, unemployment rate, and changes in GNP. All or some of these factors may affect a given organization, thus requiring the organization to process the information in these areas. Technological changes: - These include new technical inventions in he area of micro-computers, use of satellites in communications, audio visual and world processing developments e.t.c. Social changes: - These include shifting of work-force blue collar to white collar work-force, higher level of education, computer sue at home, population problems, changes in consumer tastes e.t.c. Political-Legal changes: - Many new laws affecting the organizations system have been initiated. These include privacy laws, liability laws anti-monopoly laws, truth in lending, truth in advertising, minimum wages, standard laws e.t.c. 2. The second reason for growth in MIS is the need to control management‟s decision: - More and more, the complex organization is decentralizing their operations so that more, the information is needed abut the operations of the unit managers. The performance is below expectations. This means that some new training programs needed to be initiated. MIS can be effectively used for measuring performance and bringing about any necessary changer in accordance with the organizational goals and plans. 3. The third reason for the rapid growth in the field of MIS is the widely spread use of computer capability: - The computers are becoming less expensive to 25 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. operate and have more capacities to store and retrieve more information. This has made information handling easier. 4. It supplies complete, accurate and timely data, so that can be used for effective planning and decision making. This would result in elimination of problems associated with inconsistent, incomplete, and inaccurate data. 5. It identifies and qualifies the inter-related operational and performance variables and develops a relationship of these variables which can projected to forecast future trends. 6. It facilitates control of present cost by merging the financial and production data to produce measures of performance which can be closely monitored. 7. It identifies the separate needs of all units of a decentralized organization in a cohesive manner so that these needs can be attended to without duplication and waste of effort. 8. It requires that the data to be presented is presented in a summarized from and in a manner so that action can be initiated without further interpretation and analysis. This reduces the time as well as the volume on information required and only the exceptional issue will receive the attention of top management. 9. It provides flexibility so that the system can be change and adapted to the change, when necessary. 2.8 DEVELOPING AN EFFECTIVE MANAGEMENT INFORMATION SYSTEM. Stroller and Van Horn indicate that since the purpose of the management information system is to provide the necessary information for decision making purposes, the design and development of an effective MIS should start with an analysis of the types of decision and types of supporting situation in which the manager generally get involved. These authors further suggest four steps in the process of MIS development. These are: Defining and analyzing various types of decisions that are made, both operational and tactical. Determine the types of existing policies that influence or put constraints on the ways the decision re being made or should be made. Identifying and isolating the type of data that is relevant and needed for making these decisions. 26 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Establishing a mechanism and a set of procedures for gathering such data and appropriately processing this data into useful information. While there may be different approaches to designing an effective MIS, it is necessary to have a central location for processing all the information. This is a kind of Management Information Center. The Center has hardware, software and all technical help necessary to gather all information at one location and sort it out, so that the mangers can find facts, and turn these facts into information. With this information center, the managers themselves sort out the facts in order to formulate information, as against the information being given to them by their subordinates; the basic philosophy of MIS remains the same. Some key element and some guidelines for an effective MIS may be considered as follows: 1. The decision system must be thoroughly analyzed: - This would require the study of priorities of the decision maker and the level of the decision makers, so that the appropriate information is directed towards the right decision maker and in order of needed priority. This would require that the operational managers have some input into the designing of MIS, requiring the managers to understand the structure of the system so that they can make any changes to include any specific activities or measure that they require. 2. Match the costs to the benefits derived out of the system: - The design of the system should be such that the benefits outweigh the cost of collecting and presenting information. Thus the information must be relevant, precise and to the point. Depending upon the size of organization, alternative means of presenting data should also be studied. However, it must note that an effective MIS will not only evaluate information for so that unnecessary data is eliminated, but it will also summarize and condense information so that it can be quickly absorbed and a decision can take. 3. The system must be pre-tested and operated and operators properly trained: - If the system is not pre-tested before operations. Then softly problems can arise and changes at that level may prove too expensive. Also, the managers should be trained to understand the system, so that they can control if it becomes necessary. Only then can the system be most effective. 4. The information should be disaggregated and the similar decision should be aggregated: - All information should be stored in disaggregated files. New data is added to the existing data in a given category as it is received. Similarly, the different areas of the decision makers should be identified with similar informational requirement, so that similarly decision 27 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. can be grouped together for a single manager. This would avoid duplication and waste. 5. The actual mechanical methods for information processing are designed and the controls of the system are developed: - This involves the establishment of steps for the purpose of collecting, storing, sorting, evaluating, transmitting and retrieving information. Additionally, a system of controls must be developed so as to identify and correct any deficiencies that might occur in the system. 2.9.0 COMPUTER AND MANAGEMENT INFORMATION The amount of data available for processing for decision making would be impossible to handle by the decision maker without the vast information handling capability of the present day computers. Computers have the capability of treating billion of pieces of information in a pre-detected manner; there are three approaches to the use of computer in MIS. These are: The separate application approach; The integrated application approach; and The data base approach. The Separate application approach: Here the computer was put to use as a piecemeal application, it served as a single information subsystem, e.g. payroll The Integrated application approach: An integrated application is a system where one set of data is used for more that one application. It connotes a centralized database and reference data where various users can access and share from. The greatest benefits of using a computer arise from the introduction of integrated systems in which the procedures for several separate applications, which are some way, related, are planned as whole and developed as a closely-knit group. The database approach: This is a collection of different types of data with a structure that removes the need for the duplication of files and meets the information needs of large section of an organization. 28 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.9.1 THE COMPUTER CAPABILITIES Computer is widely as an aid for management planning, decision making and control have stemmed from the following specific advantages offered by computers. 1. High speed processing: - Computer has the capability of performing calculations, processing large amounts of data in a relatively short time. The access to such information is also very fast. Some high speed computers can perform as many as 6-8 million iteration per second. The information retrieval in some computers is almost instantaneous. Some printers, even though not very fast can print over 2000 lines per minutes. Just to have some idea about computer capability, a computer can process 4000 cheques in a second or store 300,000 examination answers sheet at the same time. It can be used to process wages of staff of poly EDE. 2. Handle large volumes of repetitive tasks: - Computers are highly useful in handling routine, respective, high volume tasks such as processing payrolls or income tax returns. The receptivity tasks are in predetermined and pre- assigned categories. For example, in the payroll processing the computer must calculate for each person the hours worked, rate per hour, total wages, various deductions and net wages. 3. Computer can be self directing: - Even through a computer cannot think for itself, it can be programmed to make limited logical decision based upon certain conditional situations. It can follow directions in the form of a „‟ Computer program‟‟ and continue to perform accordingly without any further intervention. 4. Logical ability: - The computer has a built-in logical ability to distinguish between two numbers and decide which one is large. It can also perform most of the mathematical functions such as addition subtraction, multiplication and decision and also determine if a number is positive or negative. 5. Remote processing: - Through time-sharing and telecommunication, many person at different locations can use the same computer at one location for information processing facilities. Similarly, through telephone or teletypewriters, a manager can obtain information directly from various plants and offices around the country or around the world and process it at one central location in order to make fast decisions. 29 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.9.2 COMPONENTS OF A COMPUTER Basically, the main elements of the computers are hardware (equipment) and software (computer programmer). They basically perform the following functions. a) Input: - The input devices receive instruction and for purpose of analyzing the data and storing and processing e.t.c. b) Storage function: - This function is involved with retaining the material after it has been received from the input devices. This material is stored in the „‟ „‟memory‟‟ of the computer until it is needed for processing. This data may be in the form of historical records forecasters, decision riles, model e.t.c c) Processing: - This is also known as mathematical/logic unit where most of analysis and „‟decision making‟‟ takes place. The data is processed into information. d) The control function: - This is the ability of the computer to follow the instructions and commands that have been programmed into the computer and perform the desired functions. These instructions may dictate when and how the data is to be analyzed and when it is to be retrieved after storage. e) Output: - The output devices enable the results of the analysis of the data be transmitted to the decision maker, usually in the form of a printed paper tape. The most important element of the entire system is the involved with designing and operating the computer systems. They are system analysts, programmer and operation of the hardware. They design the management information systems and they are the final decision makers and the user of the information. 2.9.3 INFORMATION NEEDS OF MANAGEMENT 1. Internal Information Needs:- These needs comprises of: a. Activity Information: - This information involves techniques that evaluate the activities in the overall operations of the business. b. Status Information: - This information is about the status of certain activities as they are at given points in time and include for example work in process or project completion reports e.t.c. c. Resource Information: - This involves the statues of resources such as capital, personnel, material e.t.c. 30 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. d. Research Allocation Information: - this involves information regarding the allocation of scarce resources to the various competing needs and activities of the business. e. Planning and control Information: - This involves information and techniques required to produce plants, budget forecasts, scheduling e.t.c. These may be generated through mathematical models or computer simulation. 2. External Information Needs: These involve: a. Polities and government: - This involves information about general political, fiscal policies- whether socialist in nature and legal developments in the form of laws and regulations. b. Social: - These involve demographic movement, social changes, and changes in consumer tastes. c. Economic condition: - Information about GNP, inflation rate, interest rate, currency strength e.t.c. d. Technology:-Information about any development of new products of process, especially of any technological breaks through. e. Competition: - Information regarding the completive techniques in promotion as well as the ability to influence the availability of such scarce resource as labour, energy, capital e.t.c. 2.9.4 CHALLENGES OF MIS MIS and specially the computer based MIS has been hailed as the most important contribution to the process of managerial decision making. However, a decision is as good as the information it is based upon. Some of the common challenges and misconception about MIS are as follows 1. More information is better for effective decisions: - This is a fallacy, since the information to be processed should be relevant and not more. Simply more information will overburden the manager (user) as he will not be able to absorb and then sort out all the data. This process may be further complicated since the manager may not know precisely as to what information he wants and hence he may ask for,‟‟ all the available information‟‟. This problem must be seriously addressed so that the system is designed in such a manner as to assimilate pertinent information from all the data. 31 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2. Lack of managerial involvement: - some of the companies who have successfully utilized MIS have encouraged the manager – (user) to become involved in the design of their own system also, the system itself must have the full support of top management. Since computer has become one of the largest single items of capital budget with utility on all operating systems. It is highly desirable that these facilities be used in an optional manner in order to save time and effort. 3. Failure of proper communication: - More communication does not mean better performance. Excessive inter-departmental communication dose not necessarily established a foundation for mare effective decisions. While the managers must be provided with relevant current information, they do not always have to know what other managers and their divisions are involved with. In the other areas of communication the managers and the system design specialist must work together. The manager must be trained to recognize the basic future and utility of computers and the computer specialist must design the system specifically to provide information for decision making and not simply generate data for processing purposes. He would become familiar with identifying the information needs of the manager- (user) so that the communication between them becomes easy and useful. 4. Computers cannot do everything: - It must be recognized that the computer are not the panacea for all ills. Even though computers have become highly sophisticated, capable of handling tremendous amount of data in a comparatively short time, it does not compensate for managerial judgment. Accordingly, computers can only be utilized as tools and complement the managerial decision making and action. 5. Human acceptance: - The success of the MIS program depends upon the acceptance and involvement of the personnel. User attitude of the important factors affecting the MIS development. Organizational behaviorists Christ Argyris suggested that there is a potential for conflict between human emotions and personal relations and MIS rationality and non-personal mechanization. People, both at high and low level, resist the MIS application and try to actually sabotage it or work around it or aggressively fright it. This resistance may due to economic threat to clerical workers because they fear losing their jobs or changes in their job patterns. It may be due to threat to managerial ego and loss of autonomy and control because the manager‟s job skills become less important and planning and control functions are largely taken over by new MIS. 32 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2.9.5 SYMPTOMS OF INADEQUATE MANAGEMENT INFORMATION SYSTEM A list of such symptoms has been developed by Bertram A. Colbert who divided these symptoms into three district categories. These categories are: a. Operational Symptoms: - The operational symptoms relate to the physical Operations and activities and the results of such activities within the organization. These symptoms include: capital expenditure overruns. Unexplainable cost variances, insufficient knowledge about completion. Inability of executives to explain changes from year to year operating results and uncertain direction of company growth. b. Psychological Symptoms: - These symptoms deal with the out-look of the Management and their attitude towards MIS. These symptoms reflect lack of Concern on the part of management about the success of MIS program, possibly due to lack of experience in appreciating the value of MIS. Some of the symptoms are: surprise at financial results as if they were unexpected, poor attitudes of executives about the usefulness of information because it may conflict with their own experienced judgment, executives overburdened by excessive information to be sorted out, while the system should sort it out before passing it on to the executive e.t.c. c. Report content symptoms: - These symptoms relate to the actual content and format of the information generated by MIS. These symptoms include: 33 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Inaccurate information, lateness of reports, too little or too much information, lack of standards for comparison, failure to identify variances by cause and reasonability, multiple preparation and distribution of identical data e.t.c. 2.9.6 GUIDELINES FOR IMPROVEMENT IN MANAGEMENT INFORMATION SYSTEM 1. Involve top management in the design of Management Information System. This involvement would mean greater acceptance and commitment resulting in overall commitment to the program by all level users. 2. Building co-operation between designers and the users of the program. This cooperation will result in proper feed back on the quality of information being received so that any necessary changes in the design can be made. This cooperation will result in improvements in the effectiveness of MIS. 3. Develop a master plan. All planning should be adequate and projected as far into the future as feasible. The master plans should be developed with careful analysis of the current needs and forecasted needs. This plan will avoid any uncertainties associated with MIS development and serve to focus on MIS objective as well as control the progress towards these objectives. 4. Both designer and users be held responsible and accountable for the success of MIS on a cost-benefit basis. This accountability consistently reminds them to be cost conscious such that benefit achieved must exceed the cost incurred. 5. Consider the social and behavioral aspects of the system design and Implementation. All efforts should be made to ensure that all people accept it as an aid rather than a replacement and that they do not resist it in anyway. 34 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CHAPTER THREE 3.0 RESEARCH METHODOLOGY According to „‟oxford dictionary‟‟ Research methodology can be described as systematic procedures for investigating research problems. Education.com defines Research Methodology as “Procedures used in making systematic observations or otherwise obtaining data, evidence, or information as part of a research project or study” Good and Hait‟ defines it as “the logic of scientific investigation of study and the system of research procedure and technique. As defined by Fred N. Kelinger, methodological researches is controlled investigation of the theoretical and applied aspect of measurement, mathematic, statistics and ways of obtaining and analyzing data. 3.1 RESEARCH DESIGN Research design is the plan, structure and strategy of investigation to obtain answers to the research questions and solution to the research problems. It is the process of gathering information and analyzing it with a view to tackle the research problem. According to DONALD S. TULL AND HAWKINGS (1984), research design can be defined as the specification of procedures for collecting and analyzing the data necessary to help in solving the problem at hand. Therefore, this study employs the descriptive research design to overview the management information system in place in the Bursary Department of Federal Polytechnic Ede, Osun State. 3.2 SAMPLE SIZE Sample size is a collection of sampling units drawn from a population and examined in details so that valid conclusions about the phenomenon can be inferred. In this case our population is the entire business organization, but due to inability to study the entire population. Bursary department of Federal Polytechnic Ede was used as our Sample study. 35 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 3.3. SOURCE OF DATA COLLECTION Data needed are obtained from observation or experiment carried-out concerning the phenomenon of interest. There are basically two sources of data collection namely: Primary source and secondary source, depending on the way it is collected. 3.3.1 PRIMARY SOURCE Primary data are those data which are collected for the first time, taking a sample, representing a population. It is not a published data, it is problem specific data collected by the researcher, first time. When primary data is published by researcher, it becomes the secondary data for everybody, other than the researcher. 3.3.2 SECONDARY SOURCE Secondary data are data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. In our case study „Bursary department, Federal polytechnic Ede, Osun state, personal interview and questionnaire were used for this purpose. PERSONAL INTERVIEW METHOD: - The researcher interviewed two (2) top management personnel i.e the Bursar and the Head of Accounting section of the department. During the interview, varieties of question relating to the subject matter i.e. „‟Management information system in an Accounting Environment‟‟ were asked. QUESTIONNAIRE METHOD: - In this regards, questionnaire were distributed at the bursary department with some questions on it to generate vital information needed for our data presentation, analysis and interpretation. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. The objective is to illicit response from the respondent and interprets the responses to form an inference from wok being carried out. 36 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CHAPER FOUR 4.0 DATA PRESENTATION, ANALYSIS AND INTERPRETATION This chapter focuses attention on presentation, analysis and interpretation of the various data that were collected from the field. This is with a view of showing clearly what deductions are made with regard to the questions in the questionnaire. In collecting the data, a total number of twenty (20) questionnaires were distributed and administered to the staff of the department (I.e. Bursary department Federal polytechnic Ede). Out of the questionnaires distributed, only twelve (12) were correctly filled in. This represents 60% response rate. 4.1 DATA PRESENTAION In this section, an attempt is made to explain the social and social and demographic characteristics of the sample of the staff of Bursary department federal polytechnic Ede, Osun state, who were interviewed in the course of carrying out the study. Question 1: DISCIPLE Course of study Number of Respondents Percentage of Respondent Accountancy 11 91.7% Other 1 8.3% TOTAL 12 100% 37 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. ANALYSIS: It shows from the table that the department is dominated by those who study Accountancy as a course in trials institution. It is highly encouraging since there will not be misplacement of priority. Question2: LEVEL OF EDUCATION Level of Education Number of Respondents Percentage of Respondent HND&B.SC. 9 75 % M.SC.& M.B.A 3 25% TOTAL 12 100% ANALYSIS:-It can be seen from his table that there are HND/B.SC.holders in this department of 75% when compared with M.SC. & M.BA holders of 25%. This indicates the level of skill and quality of job. Question 3: POST OCCUPIED Post Occupied Number of Respondents Percentage of Respondents Accountant 3 25% Secretaries 3 25% Others 6 50% Total 12 100% ANALYSIS: Here the percentage of Accountants responded to the interview is 25% while secretaries as well are 25% other is 50%. Other in this table comprised of staff of supply division, purchasing section, store section etc. 38 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Some of the question in part “B” in the questionnaire will be tabulated and evaluated very vividly to show the outcome of the reponse. Only questions for which boxes have been provided and have been appropriately ticked will be analyzed. Structure/composition Number of Respondents Percentage of Respondents Well Structured 10 83.3% Barely structured 1 8.3% Not quite Structured 0 0 Not sure 1 8.4% Total 12 100% ANALYSIS: From the table above, it is apparent that the number of staff which agreed that the department is well structured is very high. This is enough for us to accept that the department is well structured. 4.2 DATA ANALYSIS QUESTION: How would you describe the structured/composition of the department. ANSWER: Ho: The department is not well structured. Hi: The department is well structured. At significance level of 5%. DECISION RULE. 1. Reject x2t>x2c (i.e. if the table value is less than calculated value). 2. Accept H if x2t>x2c (i.e. if the table value is greater than calculated value). 39 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Chi-square (x2) is chosen to evaluate and analyze each of the questions picked. FORMULAR: X2c=∑ (Oi-Ei) 2/Ei= (Oi1-E i2)2 / Ei2 Where Oi=Observed frequency/ value under distribution. Ei = Expected frequency/ value under distribution From table above VARIABLE 0i Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei Well 10 6 4 16 2.667 Structured Not Well 2 6 -4 16 2.667 Structured TOTAL 5.334 Therefore, expected frequency=12= (10+2)/2=12/2=6 . .x2c= ∑ (Oi-Ei) 2/Ei=5.334 Degree of freedom =K-1= 2-1=1 Confidence level of 95% i.e. 5% level of significance. 40 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Then, x2t=3.841 and X2c=5.334. Decision: Reject null hypothesis and accept alternate hypothesis, X2t< x2c (i.e. 3.841) Conclusion: This means that the department is well structured. Note: x2t means value of chi-square from the table X2c means value of chi-square calculated. Ho mean null hypothesis HI means alternate hypothesis. Question 5: Do you think the department organizational chart shows well defined line of authority responsibilities and reporting. Variables Number of Respondents Percentage of Respondents It shows 10 83.3% It does not show 0 0 Not 2 16.7% Total 12 100% ANALYSIS: From this table above, the number of respondents that agree that the department organizational chart shows well defined line of authority, responsibilities and reporting is higher. Almost all the questions in part “e” of the questionnaire will be analyzed and evaluated here extensively to support the conclusion made on the findings. 41 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. This part deals with management information system in the department. All the questions were provided a box in front of suggested answers to choose among them. Therefore the responses are as follows: Question 6: How can you describe the line of reporting in relation to dissemination of managerial information? Variables Number of Respondents Percentage of Respondents Top level to low level 5 41.7% Top level to low level 7 58.3% Total 12 100 ANALYSIS: This percentage of those who agree that the line of reporting in relation to low level staff is less than those who said is top level to middle level staff down to low level staff of 58.3% Question 14: What is/are the system adopted by the department in dissemination of managerial information? Question: can you say there is no break/impediment in information dissemination system of the department. Variables Number Of Percentage Of respondents Respondents MAILING SYSTEM 8 66.7% TELEPHONE 3 25% SYSTEM 42 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. ELECTRONIC 1 8.3% SYSTEM TOTAL 12 100% ANALYSIS: The above table shows that number and percentage of respondents who chosen that mailing information dissemination system is being adopted is 8 and 66.7% while those chosen telephone system is 3 and 25%. A respondent chosen that electronic system is adopted of 8.3%. Question 15: Can you say there is no break/impediment in information dissemination system of the department. Variables Number of Respondents Percentage of Respondents There is break 6 66.7% There is no break 4 33.3% Total 12 100% ANALYSIS: - It is obvious from the table above that we recorded the highest percentage of respondents who agree that there is break/impediment in the system of information dissemination of the department over those who do not agree. 4.3 HYPOTHESIS TESTING 11 Question: can you say there are no break/impediments in information dissemination system of the department. ANSWER: Ho: There is break/impendent in the department information dissemination system. DECISION RULE: 1. Reject Ho if x2t<x2c 43 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 2. Accept Hi if x2t>x2c FORMULAR: X2c=∑ (oi-Ei) 2/Ei Then, from table XIV VARIABLE Oi Ei Oi-Ei (Oi-EI)2 (Oi-Ei)2/Ei There is 8 6 2 4 0.667 break There is no 4 6 -2 4 0.667 break TOTAL 12 1.334 Expected frequency/value as usual is the average of observed frequency/ value which is equal to (8+4)/ 2=6 Therefore, x2c= ∑ (0i-Ei) 2/Ei=1.334 At the degree of freedom =K-1=2-1=1 and Confidence level of 95% which equals 5% level of significance. X2t=1, 0.05=3.841. Decision: Reject alternate hypothesis (Hi) and accept null hypothesis (Ho) Since, x2t <x2c (i.e. 3.41. < 1.334) Conclusion: This means that there is break/ impediment in the information disseminates system as a result of organizational activities. 44 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. Question 16: What problem(s) do you notice in the Management information system as a result of organizational activities? Variables Numbers of Percentage of Respondents Respondents Bureaucracy 4 33.3% Abuse of Authority 2 16.7% Span of control 4 33.3% Delegation of Authority 2 16.7% TOTAL 12 100% ANALYSIS: From this table, it can be seen that equal percentage (33.3%) of respondents chosen bureaucracy and span of content as a result of organizational activities while equal percentage (16.7% as well chosen span of control and delegation of authority. Question 17: what problem(s) do you notice in the managetme4nt information system of the department as a result of technological advancement? Variables Number of Respondents Percentage of Respondents Lack of funds 3 25% Unawareness of staff 5 41.7% Lack of research 4 33.3% TOTAL 12 100% ANALYSIS: From table above, while 25% of the respondents noticed lack of funds as the problem, 41.7% noticed unawareness of some staff as the problem and lastly 33.3% noticed the problem of management information system as a result of technological advancement to be lack of research. 45 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. 4.4 FINDINGS From this study and from the data collected, tabulated, analyzed and interpreted and from the hypothesis tasted, the following findings are revealed: That the department is well structured. That the department organizational chart shows well defined line of authority, responsibilities and reporting. That the managerial information is being disseminated from the top level staff to middle level staff and down to low level staff. That mailing sy0 stem constitute the major information dissemination system of the department. That there is break/impediment in the information dissemination system of the department. That major problems of the department in MIS as a result of organizational activities are lack of research, of funds and unawareness on the part of staff. 46 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. CHAPTER FIVE 5.0 INTRODUCTION This chapter deals with the summarization of all the information or data collected during the investigation. It as well entails recommendation for those who may be concerned to prevent future occurrence of the break in information system and as well put in place sound and standstill MIS (Managements information System) in an accounting environment of any organization. This recommendation is also generalized on all other problems which may be encountered in the process of investigation. It is rounded off with the conclusion which is the opinion of the point gathered in the course of study. 5.1 SUMMARY In an attempt to determine effective Management information system in an accounting environment of Bursary Department Federal polytechnic, Ede, we stumbled on some problems hindering our objectives. They are as follow: a. SPAN OF CONTROL:-This is one of the internal problems which explain the number of subordinates along in terms of MIS. This as well is coupled with shortage of manpower in the department. b. ABUSE OF AUTHORITY: - This can also be described as misuse of authority or power vested in the hands of some officials. Most of these officials usually take law into their hands by not communicating those who should be communicated officially to allow for smooth dissemination of information. It is as well the internal constraints of the department. 47 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. c. UNWARENESS OF STAFF: - With the trend of things nowadays one needs to keep abreast of time in relation to technological advancement. It is discovered that most staff are inexperience in the area of use and application of computers to disseminate meaningful information from within or outside the department. There will be effective information dissemination system if computer is strictly applied and used in the day to day activities. d. INADEQUACY OF FUNDS: - This is the most active of the problem. Better communication equipment or gadget like intercom, mobile phone, electronic computer etc. are not properly functioning; some have suffered diminishing return and needed to be replaced. All these usually lead to break in information dissemination. e. OTHERS: - Quite a number of factors like lack of research, lack of good communication network, bureaucracy, delegation of authority, lack of well defined line of reporting and a host of others are the constraints in dissemination of meaningful information. 5.2 RECOMMENDATION In relation to all the problems encountered in dissemination, the following is recommended as remedy to any organization. It is believe to be sitable for restructuring MIS in an establishment if handled properly. a. EMPLOYMENT OF SKILLED MAN POWER: - More newly trained experienced and skilled people should be compliment the effort of the existing staff and to rectify the problem of MIS from this aspect. It should be noted that those to be employed should possess vast knowledge in the area of computer application and usage to disseminate. b. STIFF CORRECTIVE MEASURE; - Stiff and deterrent should be imposed on those who found guilty of abusing power or authority to serve as scape goat and let others lean their lesson. Also, staff must be monitor adequately to make them loyal and dedicated in the discharged of their duties and responsibilities towards the organization. c. ORGANISATION OF SIMINARS:- There should be established a kind of avenue or forum to teach the staff (existing) on how to use, modern communication gadgets to generate and disseminate meaningful information for managerial purpose. There newly employed should be oriented on Management information System of any organization. d. PROVISION OF BETTER COMMUNICATION DEVICES:- There should be adequate source of generating funds to acquire better 48 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. communication gadgets, repair and replace existing ones. This is very important because information can be disseminated without means of disseminating it. e. OTHERS: There should be encouragement of research, improved communication network, bureaucracy should as well addressed, line of report should be well defined, delegated legislature as in those who power is being delegated to should be properly monitored, and other ways of management information system in any establishment. 5.3 CONCLUSION From the above discussion, it can be adequately concluded that the role of sound Management information system in any organization is not to be overlooked. Therefore, every machinery must be put in place to develop good MIS in order to achieve and attain organizational objectives. These can not be achieve without giving proper devotion to the recommendation above to reduce or if possible proffer solution to problem of break in information dissemination. 49 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. QUESTIONNAIRE EXTRACT: “MANAGEMEN INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT” A case study of Bursary Department Federal polytechnic, Ede. SECTION A It deals with respondent‟s personal data I. DISCIPLINE:………………………………………………………… II. LEVEL OF EDUCATION: …………………………………………... III. POST OCCPIED:……………………………………………………... SECTION B It deals with background information about the department. Fill in as appropriate. I. When was the department created? :………………………………………………………………………….. II. What are the functions of the department (as many as possible) a) ……………………….. b)…………………………. c) ……………………….. d) …………………………. III. How would you describe the structure/composition of the dept? Well structured Barely structured Not quit Not sure 50 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. IV. Do you think the department organization chart shows well defined line of authority, responsibilities and reporting? It shows It dosae not show It dose not show Not sure V. What are your observation of provision of information a. ………………………….. b. ………………………….. b. ………………………….. d. …………………………… VI. Suggest any problem(s) you think is facing the department and as well the way out. a. ………………………….. a. …………………………... b. ………………………….. b. …………………………... c. ………………………….. c. …………………………... d. ………………………….. d. …………………………... SECTION C It deals with Management Information System in the department. Here you tick as appropriate by putting “ˇ “sign in the box provides. I. How can you describe the line of reporting in relation to dissemination of managerial information? a. From top level staff down to low level staff b. form top level staff to middle to low level c. others specify II. What is/are the system adopted by the department in dissemination of managerial information? 51 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. b. Telephone System a. Mailing System c. Electronic System d. Other Specify III. Can you say there is no break/impediment in information dissemination system of the department? a. There is b. There is not c. Other Specify IV. What problem(s) do you noticed in the management information system as a result of organizational activities? a. Bureaucracy b. Abuse of Authority c. Span of Control d Delegation of Authority e. Other Specify V. What problem(s) do you notice in the management Information System of the department as a result of technological advancement? a. Lack of funds b. Unawareness on the part of staff c. Lack of research d. Others specify 52 MANAGEMENT INFORMATION SYSTEM IN AN ACCOUNTING ENVIRONMENT CASE STUDY FEDERAL POLYTECHNIC EDE. REFERENCES 1. Best J. W (1970) Research in education, first edition prentice Hall Eagle Wood Cliff, New Jersey. 2. “Helping Decision Makers Get a Data,” Business Week, Sept.19, 1982. PP. 119. 3. Holmes, Robert W., “Twelve Areas to Investigate for Better MIS”, Financial Executive, July 1970,P.24. 4. Ican Study packs (2005) PE, Management Information System. 5. Kennevan, Walter S. “Management Information System”, Data Management, Vol.8. No 8. No.9 (Sept. 1970), Pg 52-64. 6. Kennevan, Water J., “Management Information system”. Data Management, Vol. 8, No. (Sept. 1970), pp. 62-64 7. Murdick, Robbers G.”MIS Development procedures,” Journal of Systems Management. Vol. 21, (Dec. 1970), PP.22-26. 8. Neuschel, R.F., “Management System for profit and Growth,” Mchraw Hill, 1976, P.270. 9. Research Work Survey 2003. 10.Scott-Poole, Marshall,” An Information-Task Approach to organization Communication,” Academy of Management Review (July 1978), PP. 498- 503. 11.Steller, David S. and Richard L. van Horn. “Design of a Management Information System,” The Rand Corporation, 1958. 53
"MIS MANAGEMENT INFORMATION"