Management Information System Implementation in the Bank

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Table of Contents

Problems
Micro
Recommendations
Reference List

Problems

Macro

From a macro perspective, the current problem with the implementation of the new management information system is its adoption by the various managers of the bank. It is the assumption of this study that the source of this problem is connected to employee resistance to change.

This comes in the form of some managers at the bank being so set in their ways that they would prefer an old inefficient system that they are used to as compared to a new and more efficient one, albeit a system that needs a considerable degree of time and effort to gain familiarity (Li et al., 2012).

Humans are creatures of habit in that they enjoy daily routines and standards of procedure that do not constantly change on a daily basis, it is only in instances that change is introduced that it is met with significant resistance due to the inherent desire to keep things as they were. Such a case is often seen in various corporations wherein changes implemented by the company is often met with significant resistance due to the desire of employees to retain the operational procedures that they have grown accustomed to (Tiwana, 2010).

What you have to understand is that when employees are exposed to a particular procedural element for daily operations over an extended period of time they develop a certain sense of complacency in that they tend to prefer the current way of doing business. Employees in certain companies tended to oppose certain degrees of automation involving internal operational processes due to the perception that such changes would eliminate the need for their job.

Even if such changes would make their jobs easier changes within the company still continued to be met with significant degrees of scepticism and fear. It should also be noted that psychological resistance to change occurs not only in employees but in managers as well (Tiwana, 2012). It is often the case that managers fear change due to the fact that they fear losing power over their employees.

Managers perceive change as a negatively impacting their autonomy over their work place environments and the various factors that they have control over. In fact, it is at times perceived as a direct attack on the managers themselves despite the fact that nothing could be farther from the truth. It should also be noted that managers resist such changes due to their perception that they may lose their jobs as a direct result.

What must be understood is that change often comes with the implementation of new practices that managers may or may not be able to sufficiently cope up with. As such, those who are under the belief that they would be unable to adapt to the new changes are the most resistant to them being implemented since it would be likely that they would be replaced by another person that has the necessary capacity to implement the changes as need be.

It should also be noted that managers often suffer from the same perception regarding complacency and, as a result, are often sceptical when changes are implemented within the company.

They often view such changes as completely unnecessary with the potential to negatively impact the status quo within the office. Evidence behind these assertions can be seen in the survey results which show that 87 percent of the managers simply did not trust the MIS. Furthermore it was indicated in the case study that Mr. Swain, the president of the bank, actually liked the system.

This means that despite the various problems that it may have, the system does work to a level that is satisfactory enough that the president of the bank would approve of its use in making management decisions. What this is indicative of is that aside from issues related to the user interface, depiction of information and slight errors in information presentation, the system works and that people are simply reluctant to use it.

Micro

Based on the case data presented, the micro problems that have been identified entail issues with the user interface, depiction of information and slight errors in information presentation. This creates an unwieldy instrument to utilize or base decisions on resulting in low levels of user adoption.

In other studies that have examined similar cases, some common complaints that would normally impact the operation of a management information system range from the layout of the data fields, the interpretation of the data records, as well as the numerous categories, drop down menus and checklists that have to be selected which cause a considerable degree of confusion for the staff of a company.

Through further analysis of the case data, the issue behind the development of the management information system that the bank is utilizing is that it was created with insufficient input from the very users who are to operate the program on a daily basis. As a result, there is a significant level of disparity between the theoretical application of the management system in increasing work efficiency as compared to its actual performance in the field.

The view of Ms. Wyatt alone seems to show that the sheer amount of information that the average user is deluged with when using the system actually prevents normal staff and managers from utilizing it correctly resulting in fewer instances of actual use. Data needs to be interpreted properly, presented correctly, showcased understandably and be error free.

Such an unwieldy system that has multiple problems with the user interface and data presentation would cause managers and workers alike to operate slower and would increase the amount of time they spend merely inputting information on the fields and wading through the sea of data instead of actually addressing client concerns. This is a major problem since the management information system is meant to increase operational efficiency and not decrease it.

Causes

From a micro perspective, the cause behind the micro problems is due to the fact that the developers who created the management information system in the first place do not think in the same manner as bank managers or bank employees and, as such, this creates problems in the way in which information is presented and shared between financial institutions and bank facilities.

Through the work of Deng & Chi which investigated the use of management information systems in various banks in the U.S., it was seen that one of the primary complaints involving the use of management information systems was from a user operation standpoint (Deng & Chi, 2012).

Deng & Chi explained that despite the numerous certifications attached to a variety of developers of the programs that indicate that they can develop the needed systems efficiently and affordably, the fact remains that bank staff (even with training) continue to find aspects of the software to be unwieldy and results in operational inefficiency rather than operational efficiency.

The main issue originates from the manner in which program developers simply do not think in the same way as actual management practitioners. This is reflected in the sheer amount of fields and categories that program developers believed would help when it came to normal operations but in the end actually resulted in an increased workload for bank staff due to the sheer amount of data that they have to go through that was presented by the system.

Systems Affected

The primary system that has been affected is the management information system developed for the bank.

Alternatives

There are two possible alternative scenarios that can be pursued in this particular case. The first scenario involves going back to the old paper and filing system that the bank utilized prior to the establishment of the management information system.

Such a move would help to resolve issues related to employee resistance to change as well as would remove problems when it comes to the accuracy of the data presented. However, going down this route would entail having to utilize an outdated system that would result in other banks developing a better competitive advantage through the use of more efficient information management systems.

The second possible solution would be to merely keep on using the system that was created. This proposed solution would result in considerable employee resistance and could become the cause of several errors in management decision making due to problems with the interface.

Recommendations

Addressing the Issue of Employee Resistance to Change

The following are the recommendations developed by this paper to address the issue of employee resistance to change. It is anticipated that through the use of such strategies a greater degree of system adoption will come about.

Changing Staff Mindsets

One of the first techniques necessary in managing change is to change the way in which employees think about the way in which they work. It is often the case that employees develop a certain mindset regarding work which makes them far less apt to change when the need arises. In the case of bank staff this comes in the form of utilizing the management information system instead of the hardcopy paper records that they utilized before.

The problem though with this method is there would of course be a considerable level of initial resistance to change since the staff have already gotten used to and prefer the old system. It is based on this that what is needed is to slowly change internal bank policies and workplace culture so as to make it more amenable to the desired change rather than implement it all at once. This conforms to the first principle of change in which a person is adjusted via a change in the system that they work in.

Implementing a workplace culture of open communication

Earlier it was stated that people tend to resist change, while this is true the fact remains that there are actually method of mitigating this. One of them is implementing a workplace culture of open communication, by doing so not only can employee fears be addressed and taken into account when implementing change within the organization but it can be used as way in which to dampen the unforeseen and adverse effects the might happen should change be implemented.

Establish Goals/Purpose driven work

In their study examining record performance, it was discovered by Weiyin et al. that it is often the case that employees work better and adapt to change faster if there is a given goal or rather their work is driven by a specific purpose.

Taking the third principle of change into consideration, it can be assumed that by creating a defined vision by which employees can work towards not only would this result in a smooth transition during change within the organization but can actually result in improved employee performance as well (Weiyin et al., 2011).

Addressing the Issue of the Micro Issues

Another recommendation that this study proposes is that the development (i.e. revising of the current system) should be either supervised or assessed by a group of personnel that have a vested interest in the system and its use (i.e. bank employees and managers).

Based on the information that has been provided within the case, one of the problems with the present day management information system is that it is based on what the programmer thinks would be the most effective means of data presentation instead of what is considered standard practices in the bank. This results in financial practitioners who have been trained to transcribe or examine information in a particular fashion to have to get used to an entirely new method of data input which has the possibility of creating mistakes.

The researcher recommends that program developers focus less on creating a systematic method of information presentation. Instead, they should focus on creating one that is more in line with what managers want, namely a method of reviewing and inputting client information that is not “fussy”, can easily be used, and does not have the same level of restrictions and clutter seen in the present day system.

Reference List

Deng, X., & Chi, L. (2012). Understanding Post-adoptive Behaviours in Information Systems Use: A Longitudinal Analysis of System Use Problems in the Business Intelligence Context. Journal Of Management Information Systems, 29(3), 291-326.

Li, C., Peters, G. F., Richardson, V. J., & Weidenmier Watson, M. (2012). The consequences of information technology control weaknesses on management information systems: the case of sarbanes-oxley internal control reports. MIS Quarterly, 36(1), 179-204.

Tiwana, A. (2010). Systems Development Ambidexterity: Explaining the Complementary and Substitutive Roles of Formal and Informal Controls. Journal Of Management Information Systems, 27(2), 87-126.

Tiwana, A. (2012). Novelty-Knowledge Alignment: A Theory of Design Convergence in Systems Development. Journal Of Management Information Systems, 29(1), 15-52.

Weiyin, H., Thong, J. L., Chasalow, L. C., & Dhillon, G. (2011). User Acceptance of Agile Information Systems: A Model and Empirical Test. Journal Of Management Information Systems, 28(1), 235-272.

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