STUDENT ID :

13679

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LECTURER : Cilliers
Diedericks

WORD COUNT : 3273

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1 |Managing information system

 Contents

1. Topic………………………………………………………….1

2. Introduction…………………………………………………1

3. MIS in Banking Sector…………………………………….2

4. MIS in standard bank……………………………………..3

5. MIS in three tiers of

management………………………..7

6. Conclusion………………………………………………….10

7. Recommendation...…………………………………………10

8. Reference…………………………………………………….13

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 MANAGEMENT INFORMATION SYSTEM (MIS) IN
STANDARD CHARTERED BANK

1) MANAGEMENT INFORMATION SYSTEM (MIS) IN

VARIOUS DEPARTMENTS:

INTRODUCTION:

A MIS can be given as a system or process

which gives an information that is needed to run an business
in an effective way. The information generated and the system
is generally considered to be the most necessary component
of reasonable and prudent company decision. MIS used at
different levels of management by an organization. The MIs in
an organization must have a neat structure of policy or
practice, guidelines, procedures as well as standards. These
policies, procedure and guidelines should be followed
throughout the organization. An effective MIS will guide the
organization towards its goals and objectives. Laudon &
Laudon., (2007) (Web1, 2009)

MIS IN BANKING SECTOR:

The bank had using this idea of management

information system from 1980’s and they have been using this
system for generation various reports which acts as a basis for
the organizations decision making. The MIS is considered of
two different process such as data warehouse and data
removal. James A. O’Brien, (2005) Data warehouse can be

3 |Managing information system

given as the set of data from different source such as interior
source and exterior source, then the data collected from these
sources are placed in a form which will make it for suitable
process and this data will gain serious significance in the
process of data removal in which the unseen information are
extracted and analytical reports of quite a few types are
generated which won’t be available in the unique transaction
process system. (Web 11, 2009)

Banking sector is considered to be an

intensive industies and the building of MIS within a banks is a
huge task. This are most appropriate for the public banks
which are having a broad network of branch that are spreaded
overall the country. Chen, S., (2004). (Web1, 2009)

MIS IN STANDARD CHARTERED BANK:

The standard chartered company was originated

through the combination of two banks namely The Standard
Bank, (South Africa) which was formed in 1863 and the
Chartered Bank (India, Australia and China) which was formed
in 1853. This banks known as Standard Chartered Bank was
established in 1869. The banks have required its growth in
various residential countries, mainly in United States America.
In Pakistan, the standard chartered bank merged with Grind
lay’s operations, which made it not only the biggest foreign
bank in the country but also the one bank which is having
branches in all provinces.

This is an International bank which is

mainly focus on the well-known and emerged markets ( Asia,
Africa, the middle east countries and the Latin America). This
bank is having a vast worldwide network of about 600
branches in 50 countries. (Web 14, 2009) The three main big
business group is consumer banking, corporate & Institutional

4 |Managing information system

banking & Treasury. The main purpose of standard chartered
bank is to offer their customers an outstanding value provides
an efficiency, reliable & knowledgeable, cooperative, effective
and responsible manner. They are mainly focused on
customer satisfaction and they identify their customer needs
by knowing them in a better way and they provide with the
quality which suites their best. In, India the bank is having
about 25 branches and are located in places like Hyderabad,
Karachi, Gujarat, Multan etc. (Web1, 2009)

The main services are provided by the bank

 Consumer banking,

 wholesale banking,

 Islamic banking. (Web 15, 2009

Consumer Banking:
The standard chartered bank is providing
services like Mortgages, Auto loans, credit cards, Personal
Loans and wealth management products. The bank is offering
24 hours e- statement, SMS banking, ATM cards & VISA Debit
cards, online banking etc in order to make the most of the
customer convenient. (Web 11, 2009)

Wholesale Banking:
This banking service provides Corporate
finance, commodity finance, Deposit and foreign exchange
options, transactional banking, debt capital markets and
deposit products. (Web 11, 2009)

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Islamic banking:
Standard chartered bank has its origin from
Pakistan and thus they have dedicated a team for Islamic
banking and this team is providing an inclusive international
banking service and a broad range of financial product which
are base on Islamic value. The vision of this banks is to be the
preferred supplier of Islamic financial product in the market.
(Web 10, 2009)

The Standard chartered bank is use IT

since a business was started in Pakistan. The Information
Technology has created an growth in each and every
businesses throughout the whole world and in the banking
system. In the bank with the help of the Management
Information system the daily transactions are recorded and
processed in the computer in an efficient and quick manner.
(Web 13, 2009)The Online banking services provided by this
bank gives people a convenient and banking service which
ranges from every A/C transfer transaction to real time
precious financial information’s. The financial needs of the
people can be managed anywhere and anytime now a days.
(Web1, 2009)

The Transaction Process system (TPS), a kind

of Management Information system and it is used to gather,
store up, change and recover the transaction which are taking
place in an organization. The main function of this system will
manages data that should be left in a reliable state.

In a bank the successful

transaction processing system is implemented which offers
the enterprise a means to process the transactions very

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rapidly to make sure the even flow of the processed data and
the succession of the process right through the enterprises.
The Transaction process system use in this bank is accessible
and an employee in this bank can simply split the data and
this network is not costly compared to the other networks and
it is simply maintained and efficiently controllable. This bank
also provides with efficient flow of data across all
departments with the increase in the functionality of
organization. (Web1, 2009)

HR DEPARTMENT

Payroll TPS:

In a bank, the Transaction processing system

in payroll is planned to get the detailed data of employees.
These details are used to create the record of the employees
and this is helpful in calculating the employee’s monthly
salary along with the annual earning. The data about an
employee is got from the particular department and from the
general accounts maintained in the company. The TPS will
make record of the hours spent by the employees in a day and
the bank has its own setup named “LN” which use to record all
the transaction finished by an employee. it gives the working
efficiency of the employees. The information obtained is send
to payroll from where the TPS links a data with that of the
previous proof and a account is prepare and it is forward to
the management. (Web 4, 2009

This will be noticed by the management

as “LN” records of employee’s effectiveness to work and
based on this the employee may be declared with bonus or
other incentives. The report generated will be checked and
approved by the branch manager and after this checking
process only ,the check for the employees will be issued. After

7 |Managing information system

the issuing of check to the employees the record will be
simplified in the general accounts and as well as in the major
payroll (HUB). (Web 4, 2009

OTHER FINANCE DEPARTMENTS:

CAR FINANCING:

If a customer of this bank needs to lease new

car ,the account name and the down payment total will be
move to the HUB and the customer’s account will be verified
then a list will be made for leasing in a particular period of
time. (Web 4, 2009

REAL TIME BANKING:

From the past, a single problem associated

with the bank is speed. The TPS has made it easy for both the
customers and bank for the withdrawal or deposit of money
from their A/C. The transaction are processed and the
accounts are balanced are simplified as quickely as possible
and a new transaction will be copy to LN.

Advices:

In standard chartered bank, the records of an every

customers will be maintained in the major server called HUB.
If any one of the customers A/C balance is getting near to nil
balance, a system will automatically about and the concerned
manager will take manual action and will advice the customer
to check their account balance. (Web 6, 2009)

A/C Opening:

The Transaction process system is design for

the purpose of opening a new A/C in the bank. An entire
detail , income, NIC no and place name will be given as input

8 |Managing information system

and the system will save these details and this will be send to
the virses and as a result of this process new account will be
created in the bank.

2) MANAGEMENT INFORMATION SYSTEM (MIS) IN

THREE TIERS OF MANAGEMENT:

In any Organization, the management consists of three

levels such as

• Top level management(TLM)

• Middle level management(MLM)

• Lower level management(LLM) R.I.Tricker,

Richard J.Boland., (2006)

MIS IN LOWER LEVEL MANAGEMENT (LLM):

This level of management consist of

first level employees otherwise called as workers who may be
permanent or working under contract. In banks, the
employees at this level may narrowly focus on the internal
balancing of the organizations book to the general accounts
and other accounting subsystem. The entries such as accrual
adjustment, reconciling and correcting entries are done by
them to reconcile the financial system. (Web16, 2009) an
employee in this level of management will not use MIS to a
larger extent. They will stick to the double entry system or
book keeping system as the general accounts are not always
entered directly into other MIS. An effective MIS must support
the successful delivery of an organizations product and
9 |Managing information system
service. This system must be easily available and utilizable by
employees’ at all suitable levels of the organizations. Addition
of new customers to the existing customer records and leasing
of a new car to the existing customers is done this level of
employees with the help of MIS. (Web 4, 2009

The employees at this level will be reporting about

the loans to the insiders. Additionally the operational process
and comment device are knotted and could not be view
individually in this system. An professional and useable
Management Information System must be both operational
and informational. The transaction process has been planned
for each and every operation at the office level and the every
day-end balancing statements. The daily transaction is
entered by this level of employees. This entries made by them
should be accurate in order to maintain good records. Thus
Management Information system makes the work of these
employees very simple and the amount of time consumed is
also saved to a larger extent. (Web 4, 2009

MIS IN MIDDLE LEVEL MANAGEMENT (MLM):

This middle level of management

consists of manager of various departments who look after the
work done by the employees.

The main role in this management

level is played by the HR manager who is maintaining record
of the employees working in the organization. Payroll
Transaction Process System is planned to collect a data of an
employee from records maintained in the employees
department and also from the general ledger. The employees’
presence or absence and the number of hours an employee is

10 | M a n a g i n g i n f o r m a t i o n s y s t e m
present in the bank is recorded by the bank through general
setting called ”LN” . This LN setting is used to calculate the
working efficiency of the employees.

The TPS links the information

with that of the previous records and a report is prepared and
if forward to the management. An organization will go through
“LN” efficiency to work and may provide the employees with
added bonus or incentive based on their work efficiency. This
report will be check and approve by the branch manager after
which the checks will be issue to the employees. After the
check is converted to cash, the record will be simplified in the
general accounts as well as HUB. (Web 9, 2009)

The transactions which are

capture at the branch level will be consolidate at a middle
location and is referred to as the data warehouse of the
concerned banks and is maintained by the middle level
managers. The connectivity between the different branches
and the data ware house of the bank should be established in
a proper manner. But for the banks with large number of
branches such as Standard chartered bank, its not desirable
to consolidate the details of transactions at a single place. In
such cases the process can be decentralized by locating these
services on regional basis. These processes are monitored and
regulated by the branch managers at different locations. This
TPS is also helpful in generating reports like balance sheet and
profit &loss statement instantaneously for any desired period
or date. (Web 4, 2009

MIS IN TOP LEVEL MANAGEMENT:

The Management information

system is most important for the top level managers as the
information provided by the system is used in the decision

11 | M a n a g i n g i n f o r m a t i o n s y s t e m
making process. The top level managers should be aware that
the MIS should be designed to achieve (Web 2, 2009)

 Proper communication among the

employees..

 It should reduce the expenses related to

labor activities.

 The main function of the system is to

support the organizations strategic goals.

These activities performed by the MIS helps

the top level management to achieve the organizational goal.
The MIS supplies the decision makers with large amount of
real facts and it supports and enhances the overall decision
making process of the organization. It provides a means
through which the organizations activities are monitored by
the top level management(tlm) and the information is
distributed to the management, employees and customers.
(Web 2, 2009)

CONCLUSION

Finally, The standard chartered bank gives good

information of customers and how strongly management
information system (MIS) was implemented in all department
of a bank. A new innovation and implementation of an MIS will
give strength to a bank. Implementing management
information system (MIS) is useful for safe and secure of data
in a bank for future and present.

3) RECOMMENDATIONS:

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 Management Information system is now gaining
more importance in all industries. At current, bank generated
MIS information mainly from paper news or statement which
are periodic in nature and are submit by the branch office and
regional or zonal office. The technology is used in a big way
only in few banks and the reports available with these banks
are in a substantial time lag. The reports which are generated
by this method has a very higher boundary of error due to the
data entrie process being done at a variety of levels and the
probability of varying interpretation at singular levels of
management. The MIS requirements in the bank are not fully
addressed to till now. (Web 2, 2009)

The TPS system is being used in

Standard Chartered Bank. The Total Branch Computerization is
a software package and is transaction process orient. These
are planned mainly for every day operation and these cannot
be interfaced with the computer system at head office. This
are only few packages which are use to limited number of the
branch office and in those branches alone the software can be
easily accessed the systems at head office and these only
have the capability to generate MIs data. The lack of
implementation of these packages in this bank is partly due to
high cost and partly because of the lack of the tactical plan to
integrate the gathered data at the corporate level using the
Total Branch Computerization package.

Application of a data warehouse

and data removal technique to this organization appears to be
the appropriate solution. This doesn’t looks well for the
banking sector which is mainly concerned with the dealing of
facts and figures. At the individual bank level, a robust
Management Information System found on data removal and
data warehouse is necessary. The design and the structure of

13 | M a n a g i n g i n f o r m a t i o n s y s t e m
the data ware house might different from one bank to another
bank. The bank need not wait for all of its other branches to
get computerized for situation up of data warehousing. It is
not essential for all of the branch office of standard chartered
bank to contain the same total branch computerization (TBC)
process. (Web 2, 2009)

Therefore the data formats

must be standardized in the banks and the data should be
supplied on a permanent base from the branch which had
already computerized. The databases at the being customer
level can be builded within a bank level. (Web 8, 2009

The implementation of
Management information system in an organization may result
in significant benefit of cost and time savings. The time
consumed for transaction process is reduced to a greater
extent. The manual maintenance of records has been replaced
with the computer ant the manpower requirement is also
reduced. The productivity gain is also achieved through the
implementation of the management information system.
There are also processes re-engineering opportunity which are
connected with the use of data warehousing for the process of
information. Information can be simply access and analyzed
with the manipulation and time consuming process without
more time consumption. The data gathered and the report
generated by the system are time-relevant and accurate and
the decisions are made by the management very quickly and
this integrated information can also be kept by this bank that
will be meaningful to the profitable operations in future.

This data generated by the data

ware house and the availability of historical data are mainly
used for analyzing and predicting the trends. This analysis

14 | M a n a g i n g i n f o r m a t i o n s y s t e m
assures that the same data is used at same level by all the
other competitors and this results in the elimination of
incompatible logical results and also the influence regarding
the quality and source of data use for the trend investigation.
In short, the data warehousing enable the process of
information to be completed in an efficient and convincing
manner.

The bank must capture 100%

of their businesses through the asset and liability
management system by April 1st as per the Assets and
Liability Management (ALM) rule implement by the reserve
bank RBI. This is needed mainly for the timely submission of
balance sheet and profit &loss account and also for the Inter-
Branch reconciliation of accounts in a definite time frame.

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15 | M a n a g i n g i n f o r m a t i o n s y s t e m
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16 | M a n a g i n g i n f o r m a t i o n s y s t e m
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18 | M a n a g i n g i n f o r m a t i o n s y s t e m