Use Of Management Information System As An Aid To Management Decision In Small Scale Firms

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management is constantly faced with the problem of making alternative decisions due to limitations and scarcity of resources. And do not only see to ascertain cost of various stages in the process of providing product or services but also make proper accurate decision at all levels in the proper utilization of adequate and accurate management information system.
The development of manufacturing firms whether small or large and the activation of their potential depend on the existence of entrepreneurs with the present skills, capital and professional advice, which include accurate management information. Management information is a tool and like most tools cannot be of much help to those who are unable or unwilling to use or who misuse it. Despite the provision of management information system, managers find it difficult to plan accurately, resulting from not achieving the target. This is as a result of inadequate and inappropriate use of information through interpretation of accounts.
One may then ask, why does some manufacturing firms succeed and others fail? The answers are just the adoption of management practices which provides necessary management information system for the survival of any manufacturing firm concerned. That is to say that without good management information system no business venture can survive the test of time. It also implies that management information system guides management in making management decision, aids in measuring performance at all levels of profits, production and control maintenance and setting of standards.
In view of the role of management information as being indispensable in any business organization, this study will examine the use of management information system in manufacturing firms. It will also look at the constraints affecting the use of management information further gives a review of related literature which will discuss the nature and sources of information, the users and importance of management information to the manufacturers.
Research method will be adopted in the study with study of selected firms in Aba, findings properly analyzed with view of making recommendations on findings and suggestion on further study.

1.2 STATEMENT OF PROBLEMS
Business organizations are constantly faced with alternative course of action that are accompanied with risks and uncertainties. As a result of this, there is need for extra management skills on the part of managers if they are to bareness the opportunities that come with such alternatives.
The major use of management information system is minimization of risks and uncertainties that are accompanied bring about failure in business. This could possibly be achieved through proper use of accurate management information system.
The acquisition and lack of proper use of management information system in small scale manufacturing firms have arisen due to some problems. This is as a result of provision of information by unqualified and inexperienced accountants and staff, which are inaccurate and could not meet up the target. On the other hand when the accurate management data’s are made available, managers may not be able to interpret them and some may not be relevant for decision making. These problems are most cases make the firm to deviate from its normal course to attain a stated objective. This study will seek possible solutions to these identifiable problems.

1.3 PURPOSE OF THE STUDY
In this study, the ways which management information can aid small scale manufacturing firms in management decision making process will be examined. It will also re-ray the cause of failure in the attainment of organizational objectives, resulting from lack of adequate utilization of management information system. The limitations in the use of management information system by management will be explained.
The following issues that cause hindrances to the attainment of organizational objectives and the use of management information system in decision making will be addressed:
1. Inadequate management information
2. Inability to interpret account
3. Inadequate managerial expertise
4. Lack of simple and well published management records.
5. Lack of sufficient capital.
Also, the following recommendations at to the ways of improving the use of management information system will be examined.
1. How management data should be utilized for decision making.
2. The need for formal training in the interpretation of management information system is necessary.
3. Employing professional staff at the management level is very important.
4. The use of facilities that aids in the process of data is very important.

1.4 RESEARCH QUESTIONS
Based on the problems of definition and objective of study, the following research questions have been formulated:
1. Does management information system improve management decision making?
2. Does good use of management information system helps in achieving organizational objectives?
3. How relevant are management information system to the management decision making of small firms?
4. Is management decision making of manufacturing firms based on management information system?
5. Does poor interpretation of management information system affect decision making?

1.5 RESEARCH HYPOTHESIS
For empirical validation of study, the following research hypothesis has been formulated:
Ho: Management information system making does not improve management decision making in manufacturing firms.
Hi: Management information system improves management decision making in manufacturing firms.
Ho: Management information system has not been helping the manufacturing firm to achieve its goals and objectives.
Ho: Management information system has been helping the manufacturing firm to achieve its goals and objectives.
Ho: There is no significance relationship between management information system and organization objectives.
Hi: There is significance relationship between management information system and organization objectives.

1.6 SIGNIFICANCE OF THE STUDY
It is a fast that an effective use of management information system is very necessary in management decision making. In view of this, this study will enable management to identify the use of management information system for effective and efficient management of small scale manufacturing firms.
Users of management information system will find this study beneficial and make them appreciate, the importance of quality management information system in the management information system to realize the importance of accurate information and dangers of in accuracy to management, thus improving the quality of their services.
This study will also serve student and researchers of related field who might conduct similar enquires into this topic as a frame of reference.

1.7 SCOPE OF THE STUDY
There are many manufacturing firms in Aba but this study will use three (3) selected firms as a case study. The study will try to find out whether adequate study and accurate management information system is supplied and used by management in decision making. There will also be distribution of questionnaires to these selected firms which will cover few decision making areas as regards planning, control and costing.

1.8 LIMITATIONS OF THE STUDY
It is observed that certain manufacturing firms’ services are for immediate consumption and demand of their products are for local environment. As a result of this, the owners are conservative and suspicious, unwilling to release information about their business for fear of taxation and run wanted competition.
Also people’s attitude towards questionnaire completion and studies of this nature are often considered sensitive and looked upon with suspicious by some personnel.
There are also low level of managerial skill by operators, in adequate marketing information and strategies, low technological base and lack of technical know-how.
Finance is a major constraint since the cost has borne by the researcher. Several trips were made to the companies some of which are located at obscure places etc.

1.9 DEFINITIONS OF TERMS
Management: Management is defined as the combination of material and human resources to achieve goals, according to Mauser and Schwartz (1979:209).
Information: Information is anything capable of affecting the uncertainty associated with a given situation (Hayes, 1976:801).
System: A system is a means of which an organization achieves its goals. It could also be seen as an established or organized procedure or a method.
Organization: An organization is the internal environment where business activities are carried out. It consists of units with a clear out division of labour and expect employed and trained for different business function.
Objectives: Are board and qualitative statement about the organizations performance target. Objectives are integral to plans because they specify future conditions that the planner deems satisfactory.

1.10 ORGANIZATIONAL PROFILE
Anzzy Industrial Company (Ltd.) Aba
The company was incorporated in 1983 and started its full production in 1984 with forty (40) staff. It is located at No. 158 Old Express Road by Semek Junction Faulks Road, Aba, Abia State.
Anzzy Industrial Company (Nig.) Ltd. Is a private limited company with ordinary share capital of 500,000 incorporated to produce shoes, bags, belts and other leather accessories. The raw materials for their production are imported.
The company changes its production to shoe, gums and other shoe accessories in the year 2003. It produces thirty seven thousand (37,000) drums of gum in a week and their staff has increased to one hundred and forty two presently was sectional heads. The company has three (3) branches in the same town. The company’s turnover is about twenty-six million naira (N26.0m) only.
J and J Paints Manufacturing Company Aba
The company was incorporated in 1993 but operation started in 1995 after other formalities. The company is like a private limited company.
It is located at No. 19 Afor Ule Market Avenue, Abayi, Osisioma Ngwa Local Government Area, while its head office is at No. 2 Market Road, Aba. The company is an indigenous company, which implies that there are no foreign partners. All the raw material for operation is locally purchased in the country.
Its turnover is about sixty thousand naira (N60,000) only and produces about fifty thousand brackets of paint in a week. The staff of the firm are few and made up of both skilled and unskilled labourers. The product is locally purchased.
Korama Clover Industrial Ltd Aba
This company is located at Kilometer 6 Old Aba-Owerri Road, Osisioma Local Government Area, Abia State. A medium scale manufacturing firm incorporated in 1980 and started its full operation later after.
Formerly, the company was situated at Port-Harcourt Road in a warehouse before they moved to their permanent site at Osisioma Ngwa Local Government Area.
The company has a section for the production of car paint called Sinclair synthetic car paint and section for the production of plastic or storing the paints. It established depots which serve as outlets for their products at different located in any of the marketing regions.
The company employed more than one hundred (100) workers both skilled, semi-skilled and unskilled.