The Effects of Management Information System on Organizational Performance: In case of Commercial Bank of Ethiopia, Hossana town

Abstract

The main aim of this study was to examine the effects of Management information system on the organizational performance of CBE, Hossana town. The descriptive and explanatory research design was used and analyzed quantitatively by SPSS (V23). All (10) branches of CBE were used to take an adequate sample size and 156 employees selected by Yamane's (1967) formula from the total of 255 employees through systematic sampling method. Primary sources of data were used through questioner based on a 5point Likert scale that range from strongly disagree to strongly agree. Descriptive and inferential analyses such as standard deviation, mean, Pearson correlation and linear regression analysis were used. All MIS indicators have a positive and strong effect on organizational performance of CBE, Hossana town at α = 0.05 and the developed hypothesis confirmed that MIS has an effect on organizational performance. Further, system quality, intension to use, net benefit, and user satisfaction were found to have a high significant effect on organization performance of CBE, Hossana town at a p-value of .000 while the left of two variables information quality and service quality has an effect on organizational performance of CBE, Hossana town at α =.05 with a p-value of .012 & .010 respectively. Based on the research result it is recommended for CBE, Hossana town should make MIS of the bank always available to system users, hiring and training MIS specialists, providing material and human resources supporting MIS and assess the overall practice of MIS from time to time.