INSTITUTE OF MANAGEMENT STUDIES

UNIVERSITY OF PESHAWAR
(IMS)

Management Information System

Assignment Topic: HABIB BANK LIMITED

HABIB BANK LIMITED:

Because executives deal primarily with data about the external environment and data that come
from informal sources, they are usually less reliant in direct contact within formation technology
than other types of managers. When information from their company’s computers is needed,
many chief executive officers make their subordinates retrieve that information. Because
executive information needs are more ambiguous that those of other levels of Management,
computers have historically been less useful to executives. Many executives have little hands –on
experience with computers and don’t fully appreciate how information technology can improve
their personal productivity and decision-making skills. ESS is for executives e.g., Retail General
Manager (RGM) b/c executives are non-technical people so a very user friendly system is made
for them to make their decision making process easy and feasibility, for this purpose reports are
generated to give easy access to information.

OFFICE AUTOMATION SYSTEM:

OAS is the use of computer systems to execute a variety of office operations, such as word
processing, accounting, and e-mail. Office automation almost always implies a network of
computers with a variety of available programs .Office Automation has traditionally referred to a
wide variety of computer- based technologies that make office workers more productive. The
diverse set of OA tools that enhance office productivity, efficiency and effectiveness are often
collectively called information systems. Many office systems can also be classified as decision
support systems or DSS tools (such as spreadsheets), which can make office workers more
productive and also help managers make better decisions. The blurry line between decision
support systems and Office Automation System should be expected because most decisions
makers work in some type of office environment. Another example of ambiguity, a database
management system that manages data for a firm might also offer some decision support. Some
of the Office Automation Systems used in Habib Bank are:

CPU’s Management Information Systems

Monitors

Fax
 Scanners

Printers

Keyboards

Mouse

INFORMATION SYSTEM OF HABIB BANK:

Habib Bank has different banking sectors these include:

International Banking

Retail Banking

Treasury

Corporate

Global & Overseas banking however this report is going to focus on Retail Banking of Habib
Bank, however corporate Banking in which DSS and ESS is used has also been discussed.

System Development Life Cycle Feasibility report:

The MIS manager prepares the Feasibility Report to check cost effectiveness and the required
results of developing software.

Specification Requirement:

MIS manager sees what is required for making system i.e., staff, time, programmers and
programmers, PC’s and its peripherals. The previous system is analyzed to check what were the
short comings due to which new software is required.

SYSTEM DESIGN:

At this stage no actual programming is done but you will design the required fields i.e., what are
the fields for which entry of data is necessary e.g. name, address etc and then their queries are
designed, modules are formed, data entry forms are made. It is just paper work.
SYSTEM CONSTRUCTION:

At this stage actual programming is done. A skeleton of system is made and the programmer
programmed the software exactly up to the requirement of the MIS manager.

SYSTEM IMPLEMENTATION:

After testing and debugging, the system is implemented, when MIS manager is fully satisfied.

POST IMPLEMENTATION SUPPORT AND TESTING:

The problems are reprogrammed again.

INFORMATION RESOURCE MANAGEMENT

.The term used to describe this view of information is information

RESOURCE MANAGEMENT (IRM):

A concept that recognizes information as a key resource that should (as should any vital
resource) be properly managed. Other fields also think of their assets in this way. MIS is
perceived as an area that can generate opportunities or value for the organization, not mainly as a
source of problems. Because MIS is seen as a playing a pivotal role in the future successes of
IRM-oriented firms including Banks. The person in charge of the MIS area is often found at the
middle managerial level. In this position the information system department participates in
strategic planning and other key decisions that are made by the organization’s top level
managers.

MIS PERSONNEL:

The MIS personnel can or cannot be non IT persons. The Information System Manager is present
in all department of the bank. The Management Information System (MIS) Manager looks after
the I.T Staff and controls their operations, the planning

They manage information inflow from start of any work to its final destination and scrutinize
all the information.
 They generate report for a top manager e.g. is target matched or not?

Audit:

They securitize the systems that are already present for the purpose of compliance of system in
bank.

Payrolls: It is made on MIS. In it information about employees, his salary allowances,

deductions, provided fund, tax, net and gross salary is recorded and is given to employees in
printed form.

COMMUNICATION:

E-mail is used with URL i.e., www.hblpk.com

Through PTCL lines.They don’t use a secret net connection because they don’t have web-based
server and they use dial-up connection.

SOFTWARE USED BY HABIB BANK:

“Set of instructions given to the computer to solve a problem. The term software refers to
computer programs and the manuals that support them. Computer programs are machine-
readable instructions that direct the circuitry within

MANAGEMENT INFORMATION SYSTEMS:

”the hardware parts of the CBIS to function in ways that produce useful information from data

OPERATING SYSTEM SOFTWARE:

UNIX is being used as the main operating system in Habib Bank according to them it is more
powerful than Windows. Having built-in office and e-mail (external & internal).

MULTI-USER ONLINE BANKING (MOB):

The main system used by the bank is called Multi-user Online Banking (MOB).This is the main
system through which all of the branches of Habib Bank are linked together. This system has
many sub systems of which the foremost and important is Management information system.
Multi-user Online Banking (MOB) works in such away that for example if customer opens an
account in Habib Bank once that information is fed into the system then that information will
become available to all the braches of Habib Bank located in Pakistan. For instance if the
account has been opened in Islamabad the customer can deposit and withdraw money from
wherever in Pakistan from an on-line branch, this is mainly possible through Multi-user Online
Banking (MOB).Multi-user Online Banking (MOB) is a customer made software and the
computer language that has been used to develop is Common Business Oriented Language
(COBOL).The software of MOB has been kept different from same type of software so as to
prevent unauthorized entry. Habib Bank used Kindle Banking System until 2001 in their Retail
Banking sector.

MANAGEMENT INFORMATION SYSTEM IN HONDA:

•Helps in decision making with the presence of computer everywhere, it is hard for any business
to escape from the use of IT systems. Some of the fields or departments are there in HONDA
where MIS is priceless.

While computers are not able to create strategies of their own but still they can help mangers of
the organization in efficient decision making process and make them understand the usefulness
of strategies. MIS is capable of converting data into useful information which can be employed
in decision making. Even, MIS assists Honda in providing performance reports and financial
statements which is functional for planning, supervising and implementation of plans. MIS also
aids Honda in collating valuable information and transform it into rational reports which
otherwise be useless as it is impossible to manage volumes of data manually. With the help of
these reports, Honda can recognize trends and patterns which would be impossible if all the work
is done physically. MIS systems make use of the raw data to run replication and answer a variety
of theoretical questions such as ‘what if’ concerning modification in strategies. For instance,
MIS can tell Honda about the effect of alterations in price on the sales of their cars. Due to the
Decision Support Systems, Honda can be enabled to make more of the informed decisions within
the organizations which otherwise would be impossible without MIS.

•Data collection even though MIS helps in collating numerable amounts of business information,
but they are also useful for providing saving time benefit to the employees. In contrast with the
past where files are to be handled manually, now MIS quickly examines the data after entering it
into the computer through data processor. Thus, enhancing faster decision making in the
organization which is reflect in the efficient working.

•Information system Everyday business require some or the other kind of information system in
the organization. With the computerized system recording and business process management is
vital to run the company at a profit as well as responding to the fluctuations in the market.
Management information system, however, are perfect for gathering and reporting information
related to the company’s business process. MIS enables Honda to review the data and make use
of the information for achieving the company’s objectives. (Clarke, 2007)

•Management methods the information provided by the MIS help the managers to look at the
areas or departments where there is need for the improvement (Pearlson, nd). What will be the
techniques and approaches for correcting the business activities will lie on the part of mangers
abilities and style of management that is practiced in the organization. By making use of de-
centralized management approach, line mangers are able to make corrections quickly as it
requires a great amount of autonomy in the management process. With the centralized
management approach, the power and authority lies with the top management only so that they
can take decisions (Stone, 2002).

•Resource management MIS system allows Honda to look at the utilization of resources and see
if they are making use of the resources in a proper and efficient manner. Equipment, raw
materials, assets, labor and some other are the examples of management resources that must be
supervised and monitored regularly by the organization. With an inefficient use of resources
company may be pulled back in the competitive environment and may loose competitive edge
over the competitors. This also leads to the losses for the company by reducing profit margins
and lessening sales.

•Decision process Many of the companies make use of some sort of decision processes when
they gathered information from the MIS system. Every single unit of data is reviewed and is used
to make decisions regarding operational activities, market trends, profit margins etc. the process
of decision making consists of all the levels of management, tends to generate most well-
informed decisions (Wright, 2009).

•Communication Appropriate communication allows managers to take decisions for the

organizations based on the information provided by the MIS. Communication system permits
top-level managers to discuss the data from the front-line managers and department level
managers, thus, creating downward flow of the communication for making decisions. Upward
flow of communication is also important for the decision making process which allows front-line
managers to have an opportunity to discuss the information from MIS with the top level
management. Open communication flow allows Honda to obtain input or information from all
the levels of the management to make informed decisions obtained from the MIS system.

•Environmental management With the establishment of the business in the global environment,
Honda is planning to introduce environmental management system for continually improving the
practices to be done for the protection of environment. With the MIS system, Honda is getting
proactive to acquire environmental management ISO 14001 certification for the production
processes and other services. (Garson, 2003)

KINDS OF MIS:

•Financial MIS – this MIS states the past and present records of the Honda and its activities. The
financial MIS shows the profits and losses of Honda, its financial records to represent how well
company is going, decisions regarding control of the cost and spending of funds.

•Manufacturing MIS – this MIS monitors the flow of goods and services, raw materials and
components of Honda. Raw goods which are processed on Honda get monitored by this
manufacturing MIS. In this way, Honda with the aid of manufacturing MIS can reduce and
control the cost of goods and services.

•Marketing MIS – this MIS is created for handling all the aspects of marketing like prices, sales,
advertisements, product innovations, future decision making etc. Marketing MIS aids decisions
regarding product appearance of the Honda. It helps the company in enhancing customer
contacts by preparing questionnaires for the feedback by customers about the services of Honda
and tracks out the spending habits of the customer.

•HUMAN RESOURCE MIS:

HR MIS helps Honda in recruiting and selection of candidates. Human Resource views the
requirements of the workers, hiring procedures, workforce rules, and training and performance
assignments. The task for the Honda’s Human Resource MIS is to look at MIS also deals with
the external and internal information or data. The information regarding the internal working of
the Honda can be easily available from the company’s network, for e.g., sales for each car. The
information of the external environment can be collated from: MIS is however, different from
information system and data processing system (Lauden, 2007).

Operational information systems just read the collated data and perform the tasks like producing
lists of stuff that are required for re-ordering. Data processing systems helps in recording daily
transactions like sales of Honda cars in a particular month.Where as MIS assist the managers in
analyzing and evaluating the data related to the sales to show the pattern and trends of diverse
product lines, enabling them to make efficient decisions regarding the product and its promotion
or whether the promotion should be discontinued. It even collects the external data:

•Data on the population shifts – with the increase in age of the people, they are less likely to be
interested in customizing cars.

•Intelligence about competitor’s activities – this information can be gathered from the
newspapers, articles or from market intelligence.

•Government Legislation – if there is increase in minimum wages, then financial condition

would change.

•Economic and Social Factors – sales for the cars would fall in a particular area where the
employer had closed its plant. MIS even collates the data regarding formal and informal flow of
the information

Formal Flow of information is the one in which a process is accepted, e.g. downloading the sales
figures across the several branches. External information can be gathered through data collection
agencies like Bradstreet and Dun which provides economic data for the commercial and
academic organizations. Formal flows of information can also be collected from the people who
are working on the similar document at different locations, by making use of company intranets
and e-mails.

•Informal flows of information are provided through reading newspapers or articles, chance
meetings, or by watching news. The medical care and payroll of the employees.
RECOMMENDATIONS:

Honda and all other similar big organizations that thrive in the market and work for success and
leadership should understand the importance of managing information system. The overall
impact of the information system is far reached. Information system management has become a
need of the time. The organizations have to understand the strategies that can effectively help in
management and benefit from the same. The problems and issues faced by information system
have to be managed and risks should be minimized. Through planning and decision making can
help with the same.

CONCLUSIONS:

Every organization consists of one or more than one core competency, that is, to have a
competitive edge over their competitors. With the application of proficient management
information system, Honda has better chances to be ahead of their competitors. MIS provides
necessary tools to Honda to better understand the enterprise and the external environment or the
market. Management information system is an approach set out of internal control that helps
Honda management in operating business day after day. It is just not a tool used for collating the
information but allows the managers of Honda in the process of decision making that are used by
the management. With the employment of MIS in the organization, Honda has found many
benefits of it in the system

.MIS assist Honda in describing its objectives and its resources. It even permits the managers of
Honda for creating reports about the activities of the company regarding products and services,
business partners, people, employees and inventories. It helps in keeping the resources of Honda
in an organized manner. MIS track the records of resources and maintain the in an organized
way.