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CHAPTER ONE
1.0 INTRODUCDTION
The researcher wants to investigate “the use of information system and business productivity” at
some selected water well drilling companies in Mogadishu. This chapter consists of eight
sections: first section presents background of the study, second section explains problem
statement, third section illustrates purpose of the study, fourth section lists the objectives of the
study, fifth section discusses the questions and hypothesis of the study, sixth section indicates the
scope of study, seventh section identifies the significance of the research and the last section
makes the operational definition of variables.
1.1 BACKGOUND OF THE STUDY
The use of the Information systems has evolved over a period of time comprising many unusual
sides of the organizational productivity. Information systems have been growing since the
appearance of the first applications of this information processing technology to support
organizational work in the 1950s.
According to A.Sarras (1999). Information systems are a necessity of all the
organizations. The initial concept of information system was to process data from the
organization and presents it in the form of reports at regular intervals. The system was largely
capable of handling the data from collection to processing. It was more impersonal, requiring
each individual to pick and choose the processed data and use it for his requirements in many
developed countries, the development process of IS relates with the long-term business plans of
the organizations and IS requires resources like capital, time and capacity.
Early IS were quite easy to describe and explain: there were several organizational
activities that involved carrying out some combination of arithmetic operations. Although the
calculations that had to be done were normally quite simple, the large amounts of information to
be processed made this procedures repetitive and error prone when carried out by humans.
Carvalho (2006).
However, the historical perspective of information systems at the side of productivity
cannot be ignored. This perspective gives a sense of how these systems have evolved, been
refined and adapted as new technologies have emerged, and how changing economic conditions
and other factors have influenced the use of information systems. Kolhapur (2011)
In developing countries, Most of the organizations do not recognize information as a
resource. They see information as a routine necessity. As an organization grows, the information
also increases manifold. The IS plans are developed concurrent to the business plans. An
organization of any size deals with numerous pieces of information. Jawadekar (2007)
In Somalia, since the fall down of central government in (1991), many businesses started
to boom up fast especially service industry. These organizations include water well drilling
companies which perform the drilling services to provide water to Somali society. The
fundamental issue they are focusing is to develop high productivity and carrying capacity of the
catchment whilst achieving acceptable environmental quality and protection of the land and
water resources through high quality of information systems.
In this study, information system is defined as a system which provides information
support for decision makes in the organization, integrated system of man and machine for
providing the information to support the operations, the management and the decision making
function in the organization Jawadekar (2007). The definition of information system of this
study is the adopted from Jawadekar (2007). Information system is integrated system of human,
hardware, and software and data resources for providing information to support operations. In
this study information systems will be characterized being a tool for decision making, perceive
information and to achieve success in productivity.
According to Sarras (1999) Productivity is a result of the capital, labor and technology.
The definition of productivity is adopted from sarras (1999). Productivity is the consequences of
organizational capital, human resources and technology.
Information system is combination of man and machine which consists of hardware and
its peripherals. Jawadekar (2007). Information systems are important for organizational
productivity because it provides managers a tool for proper decision making. Ideally,
Information system should affect organizational productivity directly due to its positive relation
with it. In Somalia service organizations especially water drilling companies use less effective
information systems and this may hinder their productivities.
On the other hand, productivity is the result of capital, labor and technology. Sarras
(1999). Ideally, productivity is the central aspect of business success and relates directly with the
use of information system as tool for decision making. In our context these may not happen due
in effective awareness.
1.2 STATEMENT OF PROBLEM
Information system is to provide information for a decision support in the process of
management. It should help in such a way that the business goals are achieved in the most
efficient manner. Since the decision making is not restricted to a particular level, the information
systems are expected to support all the levels of the management in conducting the business
operations. Oka,(2009)
In Somalia, especially Mogadishu during last decade, after preliminary study it was felt
that service organizations such as water well drilling companies use less effective information
systems to support their decisions and to use it as a tool for decision making. This indicates that
business goals are achieved in inefficient manner.
In view of this, the researcher recognized that there is a need to know the degree
relationship between information systems and organizational productivity in the context of
service companies especially water well drilling companies.
1.3 PURPOSE OF THE STUDY
The aim of this study is to explore the relationship between information systems and
organizational productivity and to apply decision making tool for the allocation and development
of water well drilling companies’ productivity.
1.4 RESEARCH OBJECTIVES
1. To determine the relationship between information system and company productivity.
2. To examine effective decision making tool to increase productivity.
1.5 RESEARCH QUESTIONS
1. What type of relationship between information systems and business productivity?
2. What type of decision making tool to increase productivity?
1.6 SCOPE OF THE STUDY
Content scope
The study will focus on the use of information systems and business productivity.
Geographical scope
The researcher will study on water well drilling companies in Mogadishu.
Time scope
In terms of time, the study will be draw to a close at the end of this semester.
1.7 SIGNIFICANCE OF THE STUDY
This study is important for both contribution of additional knowledge in the use of information
systems and business productivity. And for potential researchers will use it as a base of their
research.
1.8 OPERATIONAL DEFINITIONS
1.8.1 Information systems are systems which provides information support for decision
Making in the organization.
1.8.2 Productivity is a result of the capital, labor and technology.
1.8.3 A DSS is a computer based system (an application program) capable of analyzing an
organizational (or business) data and then presents it in a way that helps the user to make
business decisions more efficiently and effectively.
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter discusses the literature related to “the use of information system and business
productivity” at some selected water well drilling companies in Mogadishu.” It mainly focuses on
the findings of previous researches. In this section, the research reviews key literature in the
following areas. First review is about decision support systems concepts. Second section is about
transaction processing system concepts. Third section presents the organizational productivity
concepts. Fourth section indicates the relationship between information systems and
organizational productivity while fifth section, presents summary and conclusion of the chapter.
2.1 DECISION SUPPORT SYSTEMS
According Jahangir (2005) A DSS is a computer based system (an application program) capable
of analyzing an organizational (or business) data and then presents it in a way that helps the user
to make business decisions more efficiently and effectively. Preliminarily, it is inherent to state
that decision making is an integral part of any business (The maniac, n.d.). This is because a
majority of operations in an organization revolve around decisions made by the management and
other key stakeholders in the organization. And in order for decision to be made adequately, it is
vital for there to be a good information system since decisions are based on information
available.
In relations to this, Jahangir (2005) states that based on the significant role that
information plays in choice of decision to be made, organizations must ensure that they have a
good management information system. As a notable general observation, a good MIS ensures
good decision making just in the same way bad MIS propel the making of bad decisions.
UStudy. in (2010) supports the above observation by saying that “The quality of
managerial decision-making depends directly on the quality of available information” and the
managers should therefore cultivate an environment that encourages the growth and viable
sprouting of quality information. Essentially, before deciding on which MIS strategy to use, it is
vital to ensure that the choice made is fully compatible with your current system. This will not
only help in avoiding erratic choices but it will also save you the time and money that would
have been otherwise wasted by that person (Rhodes, 2010; Jahangir, 2005). In addition to that, it
is noteworthy for the MIS strategy or tool used to be in line with the decisions that are to be
made. In other words, there should be a connecting point between the decision to be made and
the MIS to be used by individual or corporate business owners (Jarboe, 2005).
As a key consideration, Management Information Systems is a highly complex and
delicate arena that calls for a lot of caution to be taken by its managers. It is for this reason that it
is recommendable for organizations to ensure that they carefully select the individuals who are
placed to control the systems. The more cautious and professional a person is, the better the
person gets an assurance of positive prospects of in MIS with regards to decision making and
other related areas of business (Lingham, 2006).
Having clearly delineated that, what then are some of the scholarly arguments, facts,
opinions and observations made by various macroeconomists with regards to the roles of
Management Information System in improving decision making?
To begin with, MIS provides a fitting platform for good decision making (Kumar, 2006).
Essentially, without the established systems of getting information in MIS, it would be extremely
difficult for organizations to make their decisions. This is because they would be forced to
making baseless information due to the lack of confirmed information. Moreover, MIS normally
lays a firm foundation for the establishment of concrete decisions through its systematic tools,
timely information and adequate managerial policies and regulations.
Furthermore, Management information Systems’ statutes regarding businesses act as
guidelines to business owners when making critical decisions about their businesses. As a result,
managers and key decision makers are bridled from overstepping their boundaries or exceeding
their business mandate. This is very crucial as it helps in keeping businesses checked and
balanced thus ensuring that only proven decisions are considered while the untried ones are
thwarted. More importantly, the capacity to guide decision-making facilitates progress and
improvement of the operations in a company (Lingham, 2006; Chambers, 1964, p.15-20).
In addition, most MIS programs are endowed with the capacity to give real-time updates
of the occurrences in company or system. By real-time, scholars simply refer to immediate
updates of occurrences in a system. These immediate updates help mangers to take necessary
actions as soon as is deemed appropriate—especially during the discovery and management of
crises. This augments progress and improvement in company operations through timely decision
making. This is important for companies in the modern-day generation where any slight lapse in
decision making can lead to very huge losses (Allen, et al., 2010)
2.2 COGNITION SYSTEM
Cognition systems Acknowledging that IS deal with knowledge opens up a whole new
perspective for looking at IS in organizations: organizations as cognition systems, i.e., systems
that exhibit cognition features similar to those that can be found in humans Chambers (1964). In
fact, organizations can be viewed as collective enterprises where purposeful action is carried out.
This action can correspond either to operational action (action to produce the results it is
supposed to produce according to its purpose) or to managerial action (action to guarantee the
organization’s survival and well being). Action demands acting capabilities that, for the cases of
intellectual/mental/cognitive action, can be presented as composed by knowledge and
intelligence (Allen, et al., 2010). Knowledge corresponds to images of the internal and external
state of affairs, models of the dynamics of the world and other mental images created based on
the others forms of knowledge. Intelligence might include capacities such as to perceive, to
memorize, to reason, to imagine, to solve problems, to plan a desired future Chambers (1964).
2.3 IMPORTANCE INFORMATION SYSTEMS
Management Information systems play the crucial role of providing a wide range of streamlined
options from which decision-makers are able to make their preferred choices Vittal & Shivraj
(2008, p.359-361). Vitally, this ensures that whatever choices are made by decision makers, the
outcome, more often than not, becomes positive. This, as a matter of fact, is the reason why
many decision makers tend to prefer using MIS tools when making tough business choices. And
as renowned concept, having good decision choices guarantees viable decisions in our businesses
(Vittal & Shivraj, 2008, p.360-365; Jawadekar, 2006, p.356-359).
2.4 SUMMARY/ CONCLUSION
In summary, this chapter discovers on main literature relating to the use of information systems
and organizational productivity with specific guideline from the problem statement and research
objectives of the study. We covered this chapter the key literature related in: prior DSS concepts,
cognitive system concepts, and importance of information systems (IS) concepts.
In the review of the literature showed above indicates that the use of information system
has a positive impact on organizational productivity, but the degree of such impact has not been
explored in Mogadishu. Therefore, this study will examine the possible relationship between the
uses of information systems on organizational productivity at some selected water drilling
companies in Mogadishu.
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter presents a detailed description of the research methodology. Methodology refers to
the detailed procedures to be followed to realize the research objectives. the objective of this
chapter is to discuss the seven sections by describing research design, research population such
as sample size & sample procedures , research instrument by identifying the reliability and
validity of data, procedures of gathering data ,As well as data analysis techniques , making
ethical considerations and describing research limitations.
3.1 RESEARCH DESIGN
This study will be conducted through correlation research design. correlation is a research design
that researcher determine whether or not, and to what extent an association exist between two or
more paired and quantifiable variables. (Oso & Onen, 2008,p.71) . the main purpose is to
explain the relationship between two variables , the use of information system and business
productivity. (Oso & Onen, 2008,p.71). This design is considered to be suitable for because is to
determine whether and to what degree a relationship exists between quantifiable variables. So
that questionnaire technique will be used in collecting the data.
3.2 RESEARCH POPULATION
The population of this study will be derived from some selected water well drilling companies in
Mogadishu. And the target population will be 130 employees of water well drilling companies in
Mogadishu.
3.2.1 SAMPLE SIZE
The sample of this study that select form target population were of employees of water well
drilling companies and will be distributed about 98 questionnaire to the respondents. The study
will use questionnaire to one primary group of employees.
To determine the ideal sample size for a population, the study will use Slovene’s formula
which is n=N/ (1+ (N*e^2)), where n= sample size, N= population size, 130 and e = margin of
error of 5 %. n=130/ (1+ (130*0.0025)) = 98 subjects.
Categories Population Sample Size
Telecom 100 60
Nation link 30 38
Total 130 98
3.2.2 Sample procedures
This study will employ non- probability sampling and technique will be used for purposive
sampling to select the sample size. During the purposive sampling the researchers consciously
decides who will include the sample, the main purpose of purposive sampling is that it designed
to collect focused information. It is preferred for this study because of its efficiency particularly
it saves time and money.
3.3 RESEARCH INSTRUMENT
This study will be use adapted questionnaire as the main tool for collection data. Questionnaire
may be defined a technique of data collection in which each person is asked to respond to the
same set of questions in prêt ermined order (soundrs et al, 2009). The selection of this tool has
been guided by the nature of data to be collected , the time available as well as by the objectives
of the study and the overall aim of study is to investigate the impact of customer satisfaction on
customer loyalty. And questionnaire techniques have been adopted in collecting primary data as
it provides and efficient way of collecting responses from a large sample size. the researcher
will use questionnaire of this study because of the population is literate , , time constraints and
information needed can be easily described in writing. (Oso & Onen, 2008,p.85).
3.3.1 Validity and reliability of the instrument
The most important issue in the research is to ensure reliability and validity. Joppe (2000)
defines reliability as: “The extent to which results are consistent over time and an accurate
representation of the total population under study is referred to as reliability and if the results of a
study can be reproduced under a similar methodology, then the research instrument is considered
to be reliable” (p.36). Before distributing the questionnaire, the research team will do pilot-
testing with 3 experts including the supervisor. The slightly modification of questions and
possible answers will make as the result of this pilot test. Therefore, Reliability is defined as the
extent to which a questionnaire, test, observation or any measurement procedure produces the
same results on repeated trials (Miller, nd). So, to increase reliability and validity, the study will
adapt questionnaire by making slightly modification.
Validity refers to the extent to which data collection method accurately measures what it was
intended to measure or to the extent to which research findings are about what they are claimed
to be about (Saunders et al., 2009). To establish validity the instrument will be given to three
experts to evaluate the relevance of each item in the instruments to the objective. Therefore, the
next section will shed more light data gathering procedure.
3.4 DATA GATHERING PROCEDURES
In this study the data will collected from the sample size respondents from the target population
during 2012. Data will collected by self-administered questionnaire as measuring instrument.
This technique of self- administered give respondents time to thing and use resources
(nolinkske,2008,p.10) . The questionnaire will be distributed and collected by the hand of the
researchers and help to respondents to answer the questions without any bias.
3.5 DATA ANALYSIS
Data will be analyze by using statistical package of social science (SPSS.Version 16. 0) that will
measure the degree of relationship between customer satisfaction and customer loyalty. Also
researchers will be use correlation in order to explain the relationship between customer
satisfaction and customer loyalty
3.6 ETHICAL CONSIDERATIONS
In this study the researchers should keep on the ethical issues through the research project by
keeping the privacy, confidentiality and anonymity of respondents. To maintain ethical issue the
researcher will request to company’s administration to permit to distribute questionnaire to their
employees and also tell them that the information use only for academic purpose . and will keep t
the privacy, confidentiality and anonymity of respondents.
3.7 EXPECTED LIMITATIONS
The major expect limitation of this study are the first one that sample size is less, so the sample
size may not generalized of population
Second expect limitation there is language barrier which deteriorate the understanding of
respondents to the questionnaire, to enhance the validity of the study the researchers translate the
questionnaire into Somali language.
Third, the use of simple random sampling to obtain the samples for service company’s staff may
limit the generalizability of the results.
APPENDIX A
TIME FRAMEWORK
S/N Time frame Activities
1 March 10 /2012 – April 30/2012 Reviewing related literature
2 May 02/2012 – July 02/2012 Proposal writing
3 July 15 – 29/2012 Sending questionnaires and
gaining access of study sites
4 Aug 05 – 25/2012 Data inputs, data analysis
5 Sep 05 – 20/2012 writing the report and for oral
presentation
APPENDIX B
BUDGET
N
O
Items Amount in dollar
1 Carrying /Transportation cost $ 85
2 Printing and binding $ 60
3 Stationary and supply material $ 35
4 Accommodation $ 80
5 Internet access 50 $
Total 310$