Memoire Online - Managing information system for a better banking services

FACULTY OF ECONOMIC SCIENCES AND MANAGEMENT
DEPARTMENT OF MANAGEMENT
P.O.BOX. 2280 KIGALI - RWANDA

A dissertation submitted to the faculty of Economic Sciences and Management in partial fulfillment of the academic requirements for the award of a «Bachelor's» degree in Management.

To our beloved parents: Our Mother Leoncia MUGOYIKAZI and our grand-Mother Pricilla
NYIRABEZA

To FARG: The Genocide Survivors Assistance Fund of Rwanda
To our family;
To FINABANK Top Management;
To all of our friends and Colleagues,
We dedicate the result of our scientific research.

This work would never come to the end without the assist of many people. We are grateful to all who have contributed to the realization of this scientific research.

May, our deepest appreciations goes to the Government of Rwanda for their positive contemplation by creating fund as FARG is concerned; if it couldn't be their efforts we could never enter ULK's gates. Also our deepest thanks goes to our lovely Campus and his Excellency ULK president and founder, Prof, Dr. RWIGAMBA Balinda for the advices he gave us for each and every beginning of the academic year.

Our special thanks go to Mr. Okoko OSAMBO who supervised our entire research work and gave our good academic advices, as well as allowed our distressing his busy schedule to contact him anytime we needed his assistance to complete this work.

Finally, our thanks goes to «group number one of year four, Management, day session,» which we belonged, for provided us with moral support.

I, HABARUREMA Jean Damascene, declare that, except where otherwise indicated, this document is entirely my own work and has never been submitted in whole or in part to any other university.

ABSTRACT

The research study was on «Managing Information Systems for better banking services». It looks a case study of FINABANK SA Kigali main branch. The objectives were; to investigate upon the Management of Information System within FINABANK SA and to know whether the Management Information Systems contributes significantly to the better banking services of FINABANK for the 2004-2008 time frames. The hypothesis stated as «FINABANK SA manages effectively its Information Systems, means, in relation to the scientific theoretical presented framework and that the Management Information Systems contribute to the better banking services of FINABANK SA for the 2004-2008 time frame. The researcher used both the primary data by use of structured interviews, and observation techniques and secondary data gotten mainly from documentaries. Research findings revealed that FINABANK implements, as it should, the Management Information Systems and its components significantly contribute to the better banking services of FINABANK SA.

CHAPTER 3: BENEFITS OF MANAGEMENT INFORMATION SYSTEMS (MIS) TO FINABANK BETTER BANKING SERVICES 61

1. SIGNIFICANCE OF THE STUDY

According to LAUDON, K and LAUDON, JP, economies of different countries are facing the third economic revolution. During the first revolution, their economies have transformed themselves from an artisan one to an agrarian powerhouse, capable of feeding large segments of the world population. In the second revolution, they transformed themselves from an agrarian society to an industrial power based society.

Now, in the third revolution, in progress, these countries are transforming themselves into the knowledge and information based service economy, called «the knowledge and information based service economy»; an economy into which information, technology and systems take a great importance.¹

Today most people no longer work in farms or factories but instead they are located in sales, deliveries, education, healthcare, banks, insurance firms, law firms, etc.

The rhythm of these changes accelerates and continues, today does not look like yesterday and tomorrow will be completely different. The jobs will primarily involve working with information, managed by information systems.²

This study has been chosen so as to investigate upon the usefulness of Information Systems to the growth of FINABANK SA.

Richards M. stated that Management theory and practice have undergone radical
changes in the past two decades; these changes will inevitably continue and even
accelerate. It is no longer enough that managers be skilled in a functional specialty such

¹ LAUDON, K. and LAUDON, J.P. «Management Information Systems: Organization and Technology,» Prentice-Hall of India: New Delhi, 1999, p.6

S., CUMMING, M. and DAWKINS, J. »Management Information Systems for the Information Age,»: Edition, McGraw Hill/Irwin, Boston, 2000, p.14

as engineering or marketing and that they understand the traditional functions of planning, organizing, and controlling.³

Something more is needed, the systems approach to management, coupled with the ability to participate to the design and the utilization of computer-based information systems. Indeed, the systems approach is the new philosophy of managerial life. We are now in the «age of systems.

We are sure that this kind of research comes at right time and on right place because it leads to following results:

-Provide a more up-to-date and integrated treatment of organization and management, as well as emphasize the utilization of management information systems to improve the art of managing banking institution.

This kind of research is not only interesting for those initiate to computer system management but also for the computer specialist by improving the utility of the systems.

2. SCOPE OF THE STUDY

The study is restricted to the usage of Management Information Systems into banking institutions. It focuses on FINABANK SA as a case study, within a period of 5 years (2004-2008), year 2004 because it is from that period that owners of FINABANK SA have acquired BACAR (Banque Continentale Africaine au Rwanda) and that bank became FINABANK SA of Rwanda and years 2008 with the reason that any kind of decision to be taken should be based upon accurate information.

3 RICHARDS, B. «Inside Story: Intranets Foundation for Early Electronic Commerce,» The Wall Street Journal: Technology, June 17, 1996, p. 23

3. PROBLEM STATEMENT

In 1983, over 80% of colleges of business accredited by the American Association of Collegiate Schools of Business offered a degree program with major emphasis in information systems or planned to implement such program within the next three years.

More than half of all employed Americans now earn their livings as «knowledge workers,» exchanging various kinds of information.

In 1982 alone, more than 100 companies sold almost 3 millions of personal computers. Some 16,000 software programs are available for the Apple Personal Computer.

These headlines are interesting and fairly descriptive of the explosion in computer use during the recent past. But what does it means for today's student of management and the practitioners?

It probably means that managers who do not have the ability to use computers will become organizationally dysfunctional or worse, useless as decision makers.⁴

Several years ago the consulting firm of BOOZ, ALLEN, and HAMILTON conducted a comprehensive study surrounding computer usage and concluded that the modern-generation equipment was being used for first generation systems design.

At about the same time another respected consulting organization, McKinsey & Company, concluded that «in terms of technical achievement, the computer revolution in U.S. has been outrunning all expectations. In terms of economic payroll on new applications, it has rapidly lost momentum.»

⁴ LAUDON, K. and LAUDON, J.P. «Management Information Systems: Organization and Technology,» Prentice-Hall of India: New Delhi, 1999, p.6

These conclusions reflect the fact that for decades the focus on computer use has been on the machine itself rather than on the vastly more important dimension of application and software-the systems design capability-the «brainware» if you like.

This trend towards the use of computer is backed by one important tool, which is: an Information System, managing information output by the computer, briefly, managing largely the computer input and output.

It is exactly the same into this nation; the issue of information system is on the mind of several managers, even if some of them do ignore its contribution on the performance of their companies.

As it has been defined by GRAWITZ, hypothesis is a proposal response to an asked question related to the research object. Base on this we suggest the following:⁵

GRAWITZ, M. « Introduction to research methodology,» Edition, Wadsworth, Belmont, CA, 1994, p.12

4. OBJECTIVES OF THE STUDY

According to HEFFERMAN LINCOLN says that book and other sources used in research may be classified as primary or secondary. In this study, the researcher used both primary and secondary sources of data in relation with this topic.⁶

According to HEFFERMAN and LINCOLN, primary source is any first hand account of an experience or discovery. They go on stating that writings of this kind generally give firsthand information about a topic. BAIRLEY asserts that the primary data are eyewitness accounts written by people who experienced a particular event or behavior. He also says that primary documents include any origin document, which is not based or delivery from other documents.⁷

⁶ HEFFERNAN, L. «Research methodology,» Addison-Wesley, Cambridge, MA, 1982, p.428

BAIRLEY, M. « Research methodology, the basics,» Edition, HarperCollins, New York, 1987, p.28

Three techniques were used to get primary data used in this study: These are interview, observation techniques and questionnaire.

6.1.1.1. Structured Interview Technique

The structures interview is an oriented and face to face conversation between an interviewer and a respondent which is conducted for the purpose of obtaining information on an issue. This technique is helpful only when if is flexible to use. It is appropriate to studying respondent's attitudes, values, beliefs and motives.⁸

In this research the interview was conducted face to face between me and respondents, mainly heads of some departments (Information Technology, Finance and Human Resources and Management Information Systems) of FINABANK SA.

6.1.1.2. Observation Technique

Observation involves data collection and other senses of human being based on nonverbal behaviors in a research.

The Observation technique used to help the researcher to make a follower-up upon the customer care in FINABANK SA within the period of internship.

BRENDA SPATT explains that the secondary source can be any commentary written
both after and about the primary source. In the present study, to get data of the style

from books, internet web site, annual reports, financial statements and other official documents, different techniques have been used:⁹

6.1.2.1. Documentary technique

This technique have been used to search written documents related the Management Information System.

For a better analysis and synthesis of several data collected, the researcher has used the following methods: Quantitative, Historical, Analytical, Comparative and Synthesis.

6.2.1. Quantitative methods

Quantitative methods are used in analysis and presentation of data. In the present study, data analysis and presentation were conducted using tables and figures. The statistical regression analysis enables the researcher to determine the relationship between MIS components and the performance of FINABANK SA using the coefficient of correlation analysis.

According to GRAWITZ M, «historical method fills the gap of facts and events, referring on time, can be artificially reconstructed, but ensuring continuity, trams of procedures.»

In this dissertation study, the present method has enabled the researcher to execute a back-analysis for the performance of the service into FINABANK SA.¹⁰

6.2.3. Analytical method

The analytical method has been used to analyze systematically all data collected during this research.

According to GRAWITZ M, «comparative helps a good analysis of data by providing differences and cooperation, of constant elements of the same type».

This method was useful to assess changes in management of information system in one side and change into quality of service provided by FINABANK during the range of 2004 up to 2008, in other way of thinking.

6.2.5. Synthetically method

The synthetically method has been used to summarize entire work into interesting conclusion and to make a short summary at the end of each chapter.

GRAWITZ, M. « Introduction to research methodology,» Edition, Wadsworth, Belmont, CA, 1994, p.157

7. CHAPTERIZATION OF THE STUDY

Apart from general introduction and general conclusion, the dissertation is made up three chapters as follows:

Chapter one is concerned by the literature review and shows exactly the Meaning and Role of Management Information Systems in organization.

The second chapter is related to implementation of «Management Information Systems» into FINABANK SA.

And the third chapter is concerned about the contribution of Management Information Systems to the better banking service of FINABANK SA.

1.1. INTRODUCTION

Despite the fact that the computer is nothing more than a tool for processing data, many managers view it as the central element in information system. This attitude tends to overrate and distort the role of the computer. Its real role is to provide information for decision and for planning and controlling operations.

Judging from the business press, the brave new world of management information systems (MIS) is upon the book written by Stephen Haag in his book with title «MIS for Information Age».¹¹

There is hardly a business magazine today that does not contain articles on Information systems, data banks, and related subjects. Despite this proliferation of books, articles, seminars, and courses surrounding this area, few efforts have managed to synthesize the separate subject of management, information, and systems and to show how these are related to computers. Among these few efforts we can highlight the book written by ROBERT G. MURDICK, Joel E. ROSS and JAMES R. with the title: Information Systems for Modern Management.¹²

It's in the same context that we are going, within this chapter, to define essential concepts in relation with our topic and clarify what «Management Information Systems» (MIS) is; mainly based on its five components which are: hardware, software, information, people and procedures.

This chapter made the part of this study to show the exact meaning and role of MIS as well as to define key concepts related to this topic.

S., CUMMING, M. and DAWKINS, J. «Management Information Systems for the Information Age,» Edition, McGraw Hill/Irwin, Boston, 2000, p.4

G, JOEL E. «Ross and James R: Information Systems for Modern Management,» Edition, McGraw Hill

1.2. MEANING AND ROLE OF MIS IN THE ORGANIZATION

«Management Information Systems,» as the stamina of our study, could be number one to be clarified but before one can explain it, the terms systems, information, and management must briefly be defined. Thus,¹³

Management has been defined in a variety of ways, but for our purposes it comprises the process or activities that describe what managers do in the operation of their organization: plan, organize, initiate, and control operations. One plans by setting strategies and goals and selecting the best course of action to achieve the plan. He/she organizes the tasks necessary for the operational plan, set these tasks up into homogeneous groups, and assigns authority delegation.

Management is usually defined as planning, organizing, directing, and controlling the
business operation. This definition, which evolved from the work of HENRI FAYOL in the
early 1900s, defines what a manager does, but it is probably more appropriate to define

MURDICK G., JOEL E. ROSS and JAMES R. «Information Systems for Modern Management,» Edition, McGraw

what management is rather than what management does. Management is the process of allocating an organization's inputs, including human and economic resources, by planning, organizing, directing, and controlling for the purpose of producing goods or services desired by customers so that organizational objectives are accomplished. If management has knowledge of the planning, organizing, directing, and controlling of the business, its decisions can be made on the basis of facts, and decisions are more accurate and timely as a result.

They control the performance of the work by setting performance standards and avoiding deviation from standards.

Because decision making is such a fundamental prerequisite to each of the foregoing process, the job of Management Information Systems becomes that of facilitating decisions necessary for planning, organizing, and controlling the work and functions of the business.

Information consists of data that have been retrieved, processed or other ways used for informative or inference purposes, argument, or as a basis for forecasting or decision making. An example here would also be any one of the supporting documents already mentioned, but in this case data could be used by internal auditor, or internal management service department of an external auditor, or internal management for profit planning and control or for other decision-making purposes.¹⁴

¹⁴ BAXTER, ANDREW, «Smart Response to a Changing Market», Financial Times, March 1, 1995, p. 13.

1.2.2.1. Dimensions of Information

As a knowledge worker this issue of information value is an important one. Because he/she works with and produces information as a product, information is one of his/her most valuable resources. So, how to determine the value of information? What makes certain information highly valuable and other information completely worthless? Unfortunately, it's impossible to put an exact dollar figure on the value of information. But what one can do, is defining his needs according to three dimensions of information-time, content, and form presented as follows¹⁵:

¹⁵ LAUDON, K. and LAUDON, J.P. «Management Information Systems,» Prentice-Hall of India: New Delhi, 1999, pp.67

Whether you're providing your customers with information about products and services or using information to make a decision, the time dimension of information is critical. The time dimension of information deals with the «when» of information aspect. Time characteristics of information include:

Timeliness: Information when you need it Currency: Information that is up to date

Timeliness means having Information when you need it. If you don't have the right information at the right time, it's almost impossible to make the right decision.

Currency means having the most recent or up-to-date information. In today's fast-paced business environment, yesterday's information is often obsolete and of no use to a knowledge worker.

«Content» is often considered as the most critical dimension of information. It deals with the «what» aspect of information, and its characteristics include

Completeness: Information that completely details what you want to know. - The Form Dimension of Information

The last dimension of information is the «form», which deals with the «how» aspect of information. Form of information include

Presentation: The information that is provided in the most appropriate form-narrative, graphics, color, print, video, sound, and so on.

A system can be defined as a set of elements joined together, interrelated, for a common objective. A subsystem is a part of a large system with which we are concerned. All systems are part of large systems. For our purposes the organization is the system, and the parts (divisions, departments, functions, units, etc.) are the sub systems.

The systems concept of MIS is therefore one of optimizing the output of organization by connecting the operating subsystems through the medium of information exchanges.¹⁶

1.3. COMPONENTS OF MIS

As it has been defined by LOOIJEN, M, Management Information Systems (MIS) is all hardware with the relevant basic software and application software, dataset and people involved into producing information for the purpose of right decision making.» 17

¹⁶ SPROUT, A., «The Internet inside Your Company,» Fortune, November 27, 1995, pp.161-162

MURDICK G, JOEL E. «Ross and James R: Information Systems for Modern Management,» Edition, McGraw

In other words, MIS is a set of five following components: Hardware, Software, Data, Procedures and People necessary to produce information, useful for decision making. This can be presented into the follow drawing:

Hardware is the mechanical and electronic parts that constitute a computer system, as distinguished from the computer programs (Software) that drive the system. The main hardware elements are the Central Processing Unit, Disk or magnetic tape data storage devices, Cathode-Ray Tube display terminals, keyboards, and Printers.¹⁸

¹⁸ STEWART, THOMAS, «What Information Costs,» Fortune, July 10, 1995, pp.86

A computer is a machine that can be programmed to accept data (input), process it into useful information (output), and store it away (in secondary storage devise) for safekeeping or later reuse. Equipment associated to that computer is called hardware and consist of the central processing unit, primary storage, secondary storage, input devices, output devices, and communications devices.

The CPU is the computing part of the computer. Also called the processor, it is made up of the control unit and ALU. Today, the CPUs of almost all computers are contained on a single chip. The CPU, clock and main memory make up a computer.

¹⁹ HAAG, S. « Information Technology: Tomorrow's Advantage Today,» McGraw-Hill, New York, 1996, p37

Micro, or personal, computers use microprocessors that run at approximately 500 megahertz per second. Mainframe computers measure their speed in millions of instructions per second.

Random access memory (RAM) consists of microchips that allow for the temporary storage of data. RAM functions as the workspace for the CPU. The "workspace" temporarily holds the program and the active calculation before deriving an outcome. One example would be using a word processor's spelling check tool on a document. The words being checked and the program would be temporarily stored in RAM.

Computers receive information from a variety of sources. The most common input device is a keyboard, but the pointing device (mouse or trackball) is equally important with today's GUI interface. Other input devices include video cameras, scanners, microphones, digital cameras, CD-ROMs, and voice commands that operate the computer.

The computer monitor is an output device that is changing rapidly. For several decades computer screens only displayed letters or numbers onto a green or amber screen. As computers began using GUIs, the display device took on greater significance. The success of Apple's Macintosh computer with the graphical user interface caused Microsoft to come out with their GUI, called the Windows Operating System. Thus, all current operating systems use GUI and color for both print and images.

The standard monitor for many years has been a cathode-ray tube (CRT). CRT monitors are still very common, and they are capable of high-quality pictures. However, they are inherently bulky and relatively heavy. Portable computers became possible only when smaller and lighter-weight and display units became available. Current portable or laptop computers use LCD (liquid crystal display) panels, which are flat. LCD panels are now also being used for desktop monitors. LCD units cost about three times what comparable CRT units do, but they occupy far less space and have a very bright picture.

Computer projectors are commonly used to display data or information onto a large screen. This setup can be used to demonstrate programs, provide visuals for training, or show Web sites to large groups of people. Many businesspeople travel with both a portable computer and a computer projector to visually display information for training or to aid in sales.

The GUI and the general popularity of computers have caused significant changes in the hardware available for printing. The earliest printers were essentially automatic typewriters and had little flexibility. Today, there are wide variety of printers currently available that are capable of nearly professional-quality output.

Laser printers, which first became available in the early 1980s, had an inherent
advantage over earlier computer printers; that is, the laser beam could place tiny ink dots
anywhere on the page. In practice, this means that laser printers can print fonts of any

size or typeface. Further, they can print text in any direction and also print pictures. Current laser printers print at a very crisp 1200 dots per square inch and are considered to be very reliable. Color laser printers are also available, though they are much slower and also more expensive than black-and-white printers.

Ink-jet printers essentially spray ink onto the paper. They are normally very quiet, are relatively inexpensive, and have high-quality output. Further, all the newest ink-jet printers offer reasonably high-quality color printing. Both the in creased use of the Internet to download color pictures and the prevalence of digital cameras have significantly increased the popularity of color ink-jet printers.

Partially because of the popularity of the Internet, more and more computers of all kinds have some means of connecting to other computers. For desktop computers in schools and businesses, a network interface card (NIC) is frequently used. Portable computers and home desktop units typically use a modem as a connection device. Modems connect a personal or portable computer to dial-up networks through a regular telephone line. This connectivity has served as a boon to telecommuting and changed the way work is

performed in organizations. Modems and NICs can serve as both input and output devices, depending on whether the computer is receiving or sending information.

Today, any multi-media computer contains a device to reproduce sound. Typically this means that computers have a sound card that contains a mini-amplifier and connects to speakers. Sounds can also come from programs, from the Internet, and from participants in desktop teleconferences. A sound card can also function as an input device when it utilizes a microphone.

The number and size of storage devices are increasing. Floppy disks are portable, but they can store only a relatively small amount of information compared to the newest storage units, Zip disks, which are also portable and small. A Zip disk has about a hundred times the storage capacity of a floppy disk. Hard drives are internal storage devices that hold the computer's operating system, the application software, and other files.²⁰

There are three main classifications of computers: mainframe, minicomputer, and microcomputer. The major categories can only be used as general guidelines because of the huge variety in product lines. Computer "servers" have also been included in this discussion because of their important role in networking and Internet applications.

A mainframe computer is any large computer system, such as that used by the Internal
Revenue Service. Another typical use of a mainframe computer would be for an airline

²⁰ STEWART, T. «What Information Costs,» Fortune, July 10, 1995, pp.119-121

ticketing system, which can have thousands of users connected to one computer. The next smaller-sized computer is termed a minicomputer. It is of medium scale and can serve up to several hundred users. The microcomputer is the smallest in size and power, and the term is "generally synonymous with personal computer, such as a Windows PC or Macintosh, but it can refer to any kind of small computer". Very small computers include hand-held units and pen computers that store information the user enters with a stylus rather than a key board.

A "server" computer is one that is used to connect a cluster of personal computers through using a local area network (LAN). World Wide Web pages are also stored on a "Webserver," which is typically a dedicated personal computer.

Scientists give us the following technical characteristics of a Personnel Computer according MIS discipline's norms:

- The speed of data processing: more or equal to 1GHZ - The local disc storing capacity: more or equal to 10GB - The temporally Memory (essentially RAM): more or equal to 100MB

The software is the set of instructions that cause a computer to perform one or more tasks. The set of instructions is often called a program or, if the set is particularly large and complex, a system. Computers cannot do any useful work without instructions from software; thus a combination of software and hardware (the computer) is necessary to do any computerized work. A program must tell the computer each of a set of minuscule tasks to perform, in a framework of logic, such that the computer knows exactly what to do and when to do it.

There are two major types of software: system software and application software. Each kind performs a different function.

System software is a set of generalized programs that manage the computer's resources, such as the central processor, communications links, and peripheral devices.

Application software describes programs that are written for or by users to apply the computer to a specific task. Software for processing an order or generating a mailing list is application software.²¹

²¹ LAUDON, K. and LAUDON, J.P. : Management Information Systems, Prentice-Hall of India: New Delhi, 1999, pp.127

Data must be distinguished from information (as defined before), and this distinction is clear and important for our purposes. Data are facts and figures that are not currently being used in a decision process and usually take the form of historical records that are recorded and filed without immediate intent to retrieve for decision making. An example would be any one of the supporting documents, ledgers, and so on that comprises the source material of profit and loss statements. Such material would only be of historical interest to an external auditor.

The term «database» is perhaps one of the most overused and misunderstood terms in today's business environment. Many of people will tell you that they have a database, in fact, have only files. Others simply refer to a gathering of information as a file. In reality, many of these files are probably databases. Consider these definitions of a database:

Collection of data organized to serve many applications Collection of related files

This is why it's easy to misunderstand the database concept. Each definition refers to a database as a «collection,» but describes the collection differently. Let's adopt the following definition of a database:

A database is a collection of information that you organize and access according to logical structure of that information.

A procedure is a specified series of actions or operations which have to be executed in the same manner in order to always obtain the same result under the same circumstances. Less precisely speaking, this word can indicate a sequence of activities, tasks, steps, decisions, calculations and processes, that when undertaken in the sequence laid down produces the described result, product or outcome. A procedure usually induces a change. It is in the scientific method.»²² Procedures can differ from one organization to other; it depends on the industry in which the firm operates.

It's true that any individual who works in Human Resources must be a "people person." Since anyone in this department deals with a number of employees, as well as outside individuals, on any given day, a pleasant demeanor is a must.

None can talk about employee in organization and forgets to talk upon motivation because in today's turbulent, often chaotic, environment, commercial success depends on employees using their full talents. Yet in spite of the countless of available theories and practices, managers often view motivation as something of a mystery. In part this is because individuals are motivated by different things and in different ways.²³

In addition, these are times when delivering and flattening of hierarchies can create insecurity and lower staff morale. Moreover, more staff than ever before are working part time or on limited-term contracts, and these employees is often especially hard to motivate.

²² KEOHAN, M. «The Virtual Office: Impact and Implementation,» Business week, September 11, 1995, pp.95-98

²³ BARLEY, D., «Groupware and Your Health,» Health Management Technology, Forbes, September 1995, pp.20-22

A positive motivation philosophy and practice should improve productivity, quality, and service. Motivation helps people:

Among various behavioral theories long generally believed and embraced by businesses are that of Abraham MASLOW.

MASLOW, a behavioral scientist and contemporary of HERZBERG's, developed a theory about the rank and satisfaction of various human needs and how people pursue these needs.

In 1954, MASLOW first published Motivation and Personality, which introduced his theory about how people satisfy various personal needs in the context of their work. He postulated, based on his observations as a humanistic psychologist, that there is a general pattern of needs recognition and satisfaction that people follow in generally the same sequence. He also theorized that a person could not recognize or pursue the next higher need in the hierarchy until her or his currently recognized need was substantially or completely satisfied, a concept called prepotency. MASLOW's hierarchy of needs is shown in table-1. It is often illustrated as a pyramid with the survival need at the broad-based bottom and the self-actualization need at the narrow top. 24

²⁴ STODGILY, R. «One Company, Two Cultures,» Business Week, January 22, 2004, p.68

On basis of various literatures about motivation, individuals often have problems consistently articulating what they want from a job. Therefore, employers have ignored what individual say that they want, instead telling employees what they want, based on what managers believe most people want under the circumstances. Frequently, these decisions have been based on MASLOW's needs hierarchy. As a person advances through an organization, his employer supplies or provides opportunities to satisfy needs higher on MASLOW's pyramid.

The present chapter has the objective of investigating upon the Management of Information Systems within FINABANK SA, for the 2004-2008 time frames. Referring to the simplest definition of Management Information Systems brought out by LOOIJEN (located in the first chapter), this analysis is based on five MIS components (Hardware, Software, Data, Procedures and People). Prior we do that, let's first present briefly the organization on which the study has been curried out:

In 2004, FINABANK acquired a formerly insolvent privately-owned commercial bank known as BACAR, transforming it into a major commercial bank. The bank which had obtained a full banking license in 1983 and was one of the first privately owned banks formed in the country had been under central bank supervision due to managerial issues. Following extensive renovations, the bank was formally launched in 2008 with the redesign and renovation of the new Head Office along with the formation of the new SME department.

The bank's principal activities comprise corporate banking, international trade financing and retail banking financial services and products to corporate and established medium and small businesses as well as salaried workers.

The bank has revamped all its operations and seeks to become a leader in small and medium business banking. FINABANK was the first Kenyan bank to venture into the Rwandan market and its entry into the market is part of an ambitious expansion plan that seeks to see it becomes the regional SME bank of choice through its excellent customer service, cross-border products and modern look branches countrywide. Since its entry

into the Rwandan market, FINABANK has come to be regarded as a leader among its peers. 25

The Bank pursues policies and strategies aimed at entrenching sound corporate governance practices. In doing this, the Bank benchmarks itself with best practice as per statute, prudential requirements and world class practice.

The Board of Directors is responsible for the governance of the Bank. To discharge its mandate effectively, the bank delegates its authority to Board Committees which meet quarterly or on ad hoc basis whenever need arises. The authority for the day to day running of the Bank is delegated to the Managing Director.

Currently, the Bank has four Board Committees, namely Board Risk Management, Board Audit, Board Credit and Board Assets and Liabilities (ALCO). All these committees operate as per the provisions of the country's Prudential Guidelines. In line with the Corporate Governance requirements under the Prudential Guidelines the Bank has ensured compliance in the following ways:

5. With the Board and Directors Charters in place, the Board conducts an annual Board Evaluation and Directors Peer Evaluation.

The Board also ensures that effective communication with the stakeholders is upheld. This is done through holding of AGM with full compliance of the requirements of the Companies Act and provision of annual Report and financial statements. Considering, ones financial services are provided to; FINABANK produces financial products into four categories.²⁶

«To be recognized as the leading SME bank that encourages entrepreneurship, with a reputation for providing a proactive and personalized service while practicing the highest standards of integrity in all that we do.»²⁷

Corporate Social Responsibility (CSR) has over the years been embraced by organizations that seek to make a difference in the community they serve. CSR is important as it enhances a good relationship between the organization, its clients and the community. Through CSR, the organization continues to communicate that it is interested in the needs of its clients and the community they serve. FINABANK is committed to growing the face of its CSR programs through its continued focus on partnering with others to meet the real needs of the society rather than the perceived needs. In addition to supporting children and health programs, we also seek to give back directly to our clients through free business workshops for our Small and Medium Enterprises (SME) clients in addition to sponsorship of various activities that influence the community.

Within FINABANK, hardware is composed by all tangible machinery allows the bank: capturing, conveying, creating, treating, cradling, storing and communicating information to internal as well as external users.

As particularity of FINABANK, this one has many subsystems under Management information systems and all putted together enable this bank to provide services of quality to its clients at right time. Among these subsystems we can say: EQUINOX Banking System, Video Surveillance System, Queue Management System, Network Communication System, Hard Communication System, Wireless Access System and Fire Safety System and each system requires its own and specific hardware.

EQUINOX is the Banking System currently used by FINABANK to handle all problems related to the daily banking activity. Computer provides the underlying physical foundation for the FINABANK's IT infrastructure means that it is the principal hardware tool used by this system.

The following table indicates the situation of current hardware used by EQUINOX Banking System within FINABANK:

No	Description	Quantity	Brand name
1	File Servers	6	HP
2	Database Servers	3	DELL
3	PCs Client Workstations	120	HP & DELL Optimplex 320
4	Laptops	54	HP & DELL Presario
4	Printers	42	Ecosys FS1030D
5	Copy Machine	30	KYOCERA KM1650
6	ATM	2	DIEBOLD
7	Counter Machine	40	CASIO
8	Check verifier	5	-
9	Bar Code Leader	1	SIMBOL
10	Scanners	20	HP Scan jet G2710
11	Check certifier	5	NSI
12	Generator	1	SDMO

Client/Server computing systems is the architecture of choice for helping organizations control costs and remain competitive in the ever- changing global economy.

Client/Server allows an organization to store data centrally, but share processing between the server and PC client workstations so that they can run many applications and process work simultaneously.²⁸

²⁸ FINABANK, «Equinox Banking System: The back Office Processing,» Kigali, 2008, pp.2

Figure 8: Equinox Banking System
Source: FINABANK: Equinox Banking System manual, 2008

As seen from the illustration above, there are three basic hardware components that work together in the Client/Server environment in FINABANK:²⁹

A file server is a computer attached to a network that has the primary purpose of providing a location for the shared storage of computer files (such as documents, sound files, photographs, movies, images, databases, etc.) that can be accessed by the workstations that are attached to the computer network. The term server highlights the role of the

machine in the client-server scheme, where the clients are the workstations using the storage. A file server is usually not performing any calculations, and does not run any programs on behalf of the clients. It is designed primarily to enable the rapid storage and retrieval of data where the heavy computation is provided by the workstations.

The File Server houses the applications and handles network administration. The Equinox Banking System application software is stored on the file server. Additionally, the file server directs the paths on which message requests travel. For example, if a teller requests an account balance, the message requesting the balance goes from the PC Client Workstation, through the File Server, then to the Database Server. In response, the Database Server finds the balance, sends it back through the File Server to the PC Client Workstation.

2.3.1.2. Database Server

The Database Server houses the files and records of bank products, services and customers. It shares application processing with the PC Client Workstations. It performs database searches and retrieves customer information and/or files. Additionally, the Database Server stores the code that executes the nightly update processing tasks when instructed by the Nightly Processing module.

2.3.1.3. PC Client Workstations

The PC Client Workstations are used for shared application execution with the Database Server and also serves as a display to view the information and is also a data entry and manipulation point. 120 PCs used by FINABANK's Management Information System, present the following technical capacities: 1.80GHZ possessing capacity of CPU, 0.98GB of RAM and 150GB of Local Disc capacity storing.

FINABANK, considered as a big company, takes seriously the issue of security. Once you observe carefully into corners of FINABANK's building, one can difficultly notice that there are small and small cameras deployed any where capturing images and conveying them through appropriate cables up to the wide video surveillance screen as well as storing that serous information in database server for the future use. The following is hardware used by FINABANK Video Surveillance System:

A camera records images, either as a still photograph or as moving images known as videos or movies. The term comes from the camera obscura (Latin for "dark chamber"), an early mechanism of projecting images where an entire room functioned as a real-time imaging system; the modern camera evolved from the camera obscura.

Cameras may work with the light of the visible spectrum or with other portions of the electromagnetic spectrum. A camera generally consists of an enclosed hollow with an opening (aperture) at one end for light to enter, and a recording or viewing surface for capturing the light at the other end. A majority of cameras have a lens positioned in front

of the camera's opening to gather the incoming light and focus all or part of the image on the recording surface. The diameter of the aperture is often controlled by a diaphragm mechanism, but some cameras have a fixed-size aperture.

Category 6 cable, commonly referred to as Cat-6, is a cable standard for Gigabit Ethernet and other network protocols that is backward compatible with the Category 5/5e and Category 3 cable standards. Compared with Cat-5 and Cat-5e, Cat-6 features more stringent specifications for crosstalk and system noise. The cable standard provides performance of up to 250 MHz and is suitable for 10BASE-T, 100BASE-TX (Fast Ethernet), 1000BASE-T / 1000BASE-TX (Gigabit Ethernet) and 10GBASE-T (10-Gigabit Ethernet). Category 6 cable has a reduced maximum length when used for 10GBASE-T; Category 6a cable, or Augmented Category 6, is characterized to 500MHz and has improved alien crosstalk characteristics, allowing 10GBASE-T to be run for the same distance as previous protocols. Category 6 cable can be identified by the printing on the side of the cable sheath.

VDR (Video Disk Recorder) is an open source application for Linux designed to allow any computer to function as a digital video recorder, in order to record and replay TV programming using the computer's hard drive. The computer needs to be equipped with a digital TV tuner card. VDR can also operate as an mp3 player and DVD player using available plugins

The problem of long lines made up people need to be served by the bank, was on mind of several managers as well as researchers. Now the queue Management system is the appropriate response to that particular challenge faced by FINABANK since long time ago. This equipment is made up following hardware:

The first objective of any queue management system is to achieve a better quality of service to customers. In its most basic form, a queue management system will issue a queue ticket to an arriving customer and later call the ticket when service is available, eliminating the need to stand in line while waiting. In this way, queue management systems help to provide comfort as well as fairness to customers, by allowing them to maintain their position in the queue while they are seated comfortably or engaged in constructive activity.

FINABANK grows continually and opening branches in different provinces constitute in this nation. These branches are interconnected dispute the long distance, through the Network Communication. Helped by Rwanda tell and MTN Rwanda cell Companies, FINABANK uses following hardware to link various activities performed by its branches.

A router is an equipment of a network interconnection enables to determine the path of data by joining packages within two or more networks.³⁰

A switch is an electronic equipment help to connect more segments to one network.

Access Control System in FINABANK is composed mainly by two kinds of hardware: One Card reader Machine and six accesses scanner machines.

Among many serous risks that can affect the bank, we can highlight fire. The fire safety system is not only the voluptuous choice of FINABANK by it is also the recommendation from the insurer. To handle this problem, FINABANK does its best to protect its assets, data and people by combining following hardware:

Smoke Detector: helps to notice in advance the fire by distinguishing smoke. Fire alarm: helps to inform others on the mater.

To play a useful role in the firm's information technology infrastructure, computer hardware requires computer software. As it has been defined by KENETH C. LAUDON in his book named Management Information Systems, the computer software is a detailed instruction that control the operation of computer system. 31

³¹ LAUDON, K. and LAUDON, J.P. «Management Information Systems: Organization and Technology,» Prentice-Hall of India: New Delhi, 1999, p.89

As a reference to the first chapter, FINABANK has also two kinds of software: Application and operating software:

Are called System Software (as well explained in the literature review), ones coordinate other software in a computer, put in relation the hardware and application software and perform several tasks like DVD playing, keeping and manage files, etc. Within this context, FINABANK has the following operating system software.

The Windows XP used by FINABANK is Reliable, robust operating system for powerful PCs with versions for both home and corporate users. Features support of the internet, multimedia, and the group collaboration, along with powerful net working, security, and corporate management capacities.

The Windows Saver supports multitasking, multiprocessing, intensive networking, and internet services for corporate computing.

The UNIX Used by FINABANK for powerful PCs, workstation and servers. Supports multitasking, multiprocessing, intensive networking. It is portable to different models of computer hardware.

Application soft wares are software conceived to perform a given and specific task. Software of this kind held by FINABANK are the following:

Activities of FINABANK are linked, complete each other and this happens through the software named «EQUINOX» includes at least main activities performed by the bank. Here is EQUINOX main interface:

Changes in the current business climate around the world place pressure on industry and commerce. Cyclical boom, bust economic conditions and the rising global economy place demands on banks and all commercial ventures to increase productivity, cut costs and be flexible. All of the above are on the base of shifting from MICROBANKER to EQUINOX Banking System.

FINABANK uses Equinox Banking System to perform and deriver services to customers. This software has replaced MICROBANKER in 2008 because it is more advantageous than the last one. EQUINOX is considered as a friendly user based on its graphical user interface whereas MICROBANKER was a command line.

MICROBANKER was the bank system used by FINABANK until 2008, to handle all business problems in the banking industry, but it has been replaced by EQUINOX Banking System because it was no longer compatible with the volume of the bank activities. This application was able to receive a limited number of users at a once while the number of employees in need was growing as the business grows. In addition, This system was a command line, what was somehow complicated to some users, but is very different from EQUINOX Banking System, currently in use, has a friendly interface, what to say, instead of commanding the system what to do, it gives to the user various options and he/she selects the best one.

This software is used by FINABANK to send and receive transfers between banks either locally or internationally.

They use MEGA System to handle problems related to checks, and to prepare the clearing list to NBR.

They use CRI System to create, analyze and submits a report, related to Risk and Arrears Centralization, to NBR.

BNR System Software is a proper version to create and submit reports, but as these reports are so official and has to be well done; other software has putted in place as the draft to perform these reports. The following are interfaces of CRI software related to report to be done:

After daftly processing this declaration of new credit the statistician transfers the report created from CRI system into BNR system which has the following interface:

Source: FINABANK, back office processing, 2009
Figure 12: Risk situation interface from CRI system Software:

After getting the required information through different ways of CRI system, it has to be converted into following BNR System's interface:

The interface bellow enables the statistician to perform the situation of credit arrears in BNR system:

It is the SME bank with the advertisement sport: «Your partner in growth and development,» FINABANK makes growing and developed businesses by providing to them lease loans. To provide loan is one thing and to manage it is another one, which is some how more complicated. To handle this, FINABANK has appropriate and qualified software called «LEASEPAC.» The following is its main interface:

This software (LEASEPAC) contributes on FINABANK's performance in the way that allows the user to collect any desired information from the applicant himself and his business as well as to manage the loan. By example the following is the interface helps the user to collect the information related to the applicant:

FINABANK uses BNR System to perform, in an appropriate way, monetary reports to NBR.

NBR has in its responsibilities, to keep stable the Rwandan currency. So, each and every financial institution, including banks, has to report, weekly and monthly, to Rwandan Central Bank (NBR). It's in this regard that National Bank of Rwanda has provided particular software to bank for good preparing these reports. The following is the main interface of that kind of software:

They use ASETWARE to manage adequately bank assets. 2.4.2.10. Internet Explorer

They use Internet explorer to find and to display information and web site in order to communicate, publish, and advertise what they do as well as to update the knowledge of personnel.

FINABANK performs calculations, analyzes information, and visualizes data in spreadsheets by using Microsoft Office Excel.

They send and receive e-mail; manage your schedule, contacts, and tasks; and record their activities by using Microsoft Office Outlook.

They create and edit presentations for side shows, meeting, and web pages by using Microsoft Office PowerPoint.

They create and edit professional looking documents such as letter, papers, reports, and booklets by using Microsoft Office Words.

DATA are any raw facts or observations that describe a particular phenomenon. For example, the cash in hand, the cost of transport of personnel, and a picture captured all are data.³²

In business, for instance, the cost of merchandise may be information to buyer, but it may represent only data to an accountant who is responsible for determining the value of current inventory levels. The current value of inventory for that merchandise is the information the accountant derives from the two pieces of data and it will be useful to take decision when selling.

Within FINABANK, data are raw facts or observations that describe money deposed or withdrawn, given as loan, gotten as loan repayment to or from customers, disbursed as salary to employees or as the cost of bank's assets.

³² ROBINS, G., «Data warehousing: Retailers on the cutting Edge,» STORES, September 1995, pp.19, 24-28

These facts are key resources to FINABANK, because our economy tends to base on the knowledge and information as it has described by our general introduction.

In FINABANK, databases and database management systems provide the foundation of organizing, managing, and working with the information. In a database and database management system environment, the database contains the information, and the database management system is the collection of software tools that supports management of a database and performance of the bank. Employees of FINABANK throughout the organization's knowledge workers or IT specialists, interact with a database by using a database management system software tools.

Data processing can be speeded up by several processors to work simultaneously on the same task.

As it is appearing on following figure, FINABANK uses simultaneously parallel processing (online processing) and serial processing (batch processing) in data processing. In parallel processing, multiple processing units (CPUs) break down a problem into smaller part and work on it simultaneously. Getting a group of processors to attack the same problem at once requires both rethinking the problems and special software that can divide problems among different processors in the most efficient way possible, providing the needed data, and reassembling the many subtasks to reach an appropriate solution.

Massively parallel computers have huge networks of processor chips interwoven in
complex and flexible ways to attack large computing problems. As opposed to parallel
processing, in Sequential or batch processing, where small numbers of powerful but

expensive specialized chips are linked together, massively parallel machines link hundreds or oven thousands of inexpensive, commonly used chips to break problems into many small pieces and solve them.

The capabilities of computer systems depend not only on the speed and capacity of the CPU but also on the speed, capacity, and design of storage, input and output technology.³³

The following figure gives an image of how FINABANK stores data at the same time using it in what they call Storage Area Network:

The SAN of FINABANK consists of a server, storage devices and is used strictly for storage. The SAN stores data on many different types of storage devices, proving data to the users in the bank. The SAN supports communication between any server and the storage unit as well as between different storage devices in the network.³⁴

HAAG, S. «Management Information Systems for the Information Age,» Edition, McGraw Hill/Irwin, Boston,

In field of MIS, FINABANK undertakes several procedures to meet its objectives both effectively and efficiently. Among these procedures we are going to analyze, in this section, four most important of them which are: account opening procedure, employee recruitment procedure, credit analysis procedure and the fire safety procedure.

To create an account into FINABANK, the following procedures have first to be undertaken:

For a corporate business wants open an account requirements are: A notified copy of the startup contract, the trade license or the RDB permission, on photo and specimen of each of company representatives.

When the client to be served is an individual, he/she is asked to bring the copy of his/her ID card, one photo and fill the application form. For these two categories of client, to open their accounts it's made for free of charge.

Prior the right employee arrive in the right place, the following procedure in FINABANK must be respected:

The department, in need of an employee, makes a requisition to the Human Resource Management Department, and this one recruits a desired one through new times, IMVAHO news paper or specialized institutions. The department prepare and give practically and theoretically an exam to candidates. The candidate succeeded the both tests (written and interview) is hired by the department in charge of recruiting and hiring (HR), the new employee get a concise training in relation with the job he/she is going to

perform. After the training, the new employee sign a temporary contract (3 to 6 months), if well finished, a definitive contract is signed between the bank and its employee.

To minimize damages that can be caused by fire in FINABANK, here's the fire safety procedure to undertake whenever fire occurs in the bank:

2.6. THE «PEOPLE» COMPONENT OF FINABANK'S INFORMATION SYSTEM 2.6.1. Introduction

We were discussing hardware, software, data and procedures; all of this was to give us a broad overview of the nature of MIS components within FINABANK. Let's now turn our attention to the most important resource in the business, especially for Management Information Systems-people as the knowledge worker. 35

Recall that, as a knowledge worker, FINABANK's employees work with and through
produces information as a product. And it really doesn't matter if they use a high-powered

³⁵ MARTIN, J. «Are You as Good as You Think You Are?» Fortune, September 30, 1996, pp.142

workstation or calculator; they are still a knowledge worker, responsible for processing information that their business (FINABANK) want to survive.

To succeed, as a knowledge worker in today's information-based business environment, FINABANK do its best to make its personnel understanding the true nature of information, what means to be an information-literate knowledge worker, and to assume the ethical responsibilities of working with information.

An information-literature knowledge worker must define what kind of information is needed, knows how and where to obtain that information, understands the meaning of the information once received, and can act appropriately, based on the information, to help the organization achieve the competitive advantages.³⁶

Knowing the appropriate time, content, and form dimensions of information needs is a major step toward becoming an information-literate knowledge worker in FINABANK. But it doesn't stop there-knowing what they need is only part of the information equation. They also do their best to know such things as how and where to obtain that information and what the information means once you receive it.

IT tools are great for helping FINABANK'S employees through the problem-solving or advantage-realizing process. In fact, many IT-based systems are designed specifically to help them solve a problem or take advantage of an opportunity.

HAAG, S. «Management Information Systems for the Information Age,» Edition, McGraw-Hill, Boston, 2000,

Twyla Dell writes of motivating employees, "The heart of motivation is to give people what
they really want most from work. The more you are able to provide what they want, the
more you should expect what you really want, namely: productivity, quality, and service."

2.6.3. 2. How Maslow's Needs Hierarchy helps to motivate FINABANK's personnel

As MASLOW's theory is true, there are some very important leadership implications to enhance workplace motivation. The Human Resource Department profits from these staff motivation opportunities to motivate each employee through FINABANK style of management as follow:

For large commercial organizations, data security is not only a corporation option, it's the law. Losing sensitive data by way of natural disasters or physical robbery can have severe consequences on FINABANK, possibly demolishing entire organization.

product descriptions and business outline all qualify as priceless information. These critical details are somehow secured at all times to ensure the integrity and confidentiality of FINABANK. This information is the core of FINABANK and without it, it can't operate. If a criminal is able to access this data, there is no limit to the damage they can inflict.

FINABANK recognizes that its data is vulnerable and can be compromised in the following ways:

Virtual attack - This could be an industry rival that learns to bypass security and gains access to competitive data. It could also be a malicious attack that purposely corrupts data.

Physical attack - Perhaps a disgruntled employee is seeking ways to damage the company by stealing files or purposely destroying data.

For these problems, FINABANK implements multiple forms of security by using hardware solutions such as routers and firewalls. These devices protect essential data by keeping external threats out of the network. Unfortunately, intruders employ numerous attacks, specifically targeted at that information but FINABANK does all its best, so attackers couldn't find a way to penetrate its first line of defense.

3.4. BENEFITS OF «PROCEDURES» FOR FINA BETTER BANKING SERVICES

Some people say that procedures help guide employees when decisions need to be made without involving upper management. To some extent is true, FINABANK's employees follow the procedures put in place and base the majority of their decisions on them, then it tends to remove upper-management from the day to day, micromanaging of employees and allows them to focus on the long-term aspects of the firm such as revenue growth, operations analysis and culture. Another benefit to having procedures is they help add an element of scalability to FINABANK.

Especially in this type of industry - where they basically sell «service» - structure and having a clear understanding of the «steps (procedures)» that help arrive at the performance, is very much needed.

FINABANK has putted in place several procedures to strengthen these benefits and they individually contributed to the FINABANK's performance as follows:

To open an account for a client, based on procedure used by FINABANK, it's an issue of less that 10 munities based on advanced technology and it is done by one person for shortening the process. This service is very appreciated by clients and contributed to the competitiveness of the bank. In absence of this procedure, a client cannot have an access on the following:

+ Deposing or withdrawing cash because both are made after having an account + Get or repay a loan within FINABANK because both require having an account + Receive or Send cash using SWIFT procedure

+ Be paid as the supplier because all disbursements are done through an account + Each and every correspondence with FINABANK is based on having an account.

Before the restructuring, one side, the process of analyzing client application could take at least one month, but now the procedure has been revised and the same activity cost only 3 days maximum to approve or reject client's proposal. What to say services have become so quick and more appreciable by beneficiaries.

Other side, this procedure is so crucial to the bank, be cause the act of playing the role of financial intermediation is so riskier reason why the bank has to analyze both quickly, to provide the services of quality, and carefully, to minimize risks.

The procedure of recruiting employees within FINABANK is some how special and appreciable. As it has discussed in second chapter, its procedure enables FINABANK to recruit the qualified people trough universities, specialized companies and sometimes in news papers. Employees recruited, trained and managed in good ways. They are on the base of today FINABANK's success.

This procedure enables FINABANK hiring desired people, at right time and places them in the right places. That is why they contribute more in FINABANK's success as the following section details.

The fire safety procedure is among very important procedure within FINABANK. Its benefit is one of protecting the bank against fire. Fire is more treacherous to bank and can be caused by different things that the bank can or not prevent. But this procedure helps the bank to be prepared in advance to fight against when fire appears.

3.5. BENEFITS OF «PEOPLE» FOR FINA BETTER BANKING SERVICES

Personnel management is not the sole responsibility of the personnel department, with in FINABANK. It is the business of all managers. All levels of management from first line supervisors up to and including the CEO are in tune with and manage FINABANK's employees in a manner consistent with published practices, policies and procedures which are in harmony with the needs of the workforce. All functions related to people management are co-ordinated, follow a common philosophy and be part of a process that effectively contributes to the achievement of the goals of FINABANK.

The only competitive advantage FINABANKA has the ability to improve the performance of its people at all levels. Therefore HR management always takes on a whole new meaning and is regarded by senior management as a key component of FINABANK's activities and is given the requisite high profile in the development of its long term strategies.

In the years ahead, in addition to increasing business competitiveness there will be increasing competition for a shrinking workforce. Employees will be attracted to organizations which practice imaginative and enlightened management and avoid "management by best-seller" which gives rise to the contradictions discussed earlier.

Within FINABANK, when revising, updating and redefining the roles of employees and development training plans, particular attention is paid to the people at the lower levels. It is the customer service reps, drivers, order clerks and receptionists who frequently are the first interface with the customers.

No matter how wise the CEO, or how great the product or service, the battle for customer loyalty is fought by FINABANK front-line troops - those employees at the lower levels of the organization structure. Hence it is critical that due care and consideration be given those employees when developing HR policies and training programs.

To become more productive, employees have to be motivated. In this context, FINABANK after applying MASLOW's Needs Hierarchy as the motivation tool, as presented in the second chapter, employees became more productive as it is illustrated in the following figure:

As it is shown by the above figure, FINABANK has spent, in one hand, more on its personnel in 2005 (749,804,000Rwf) than the previous year 2004 (562,854,000Rwf) that's to say an increase of 33.21% and the same during the following years cost on staff has been increased as far as the company grows: 940,372,000Rwf; 1,193,757,000Rwf and 1,555,544,000Rwf respectively for years 2006, 2007 and 2008 what determines respectively an increase of 25.42%, 26.95%, 30.31%.

In other hand, FINABANK has gained positively in 2005 (40,418,000Rwf) compared to year 2004 where it loosed (360,505,000Rwf) but the following year (2006) its profit has decreased to 30,534,000Rwf and it has recorded an increase in profit of 251,016,000Rwf, 581,249,000Rwf respectively for years 2007 and 2008 what determines an increase of 722.09% and 131.56% respectively.

FINABANK has recorded a high difference in profit between 2006 and 2007, as it comes to be presented, from 30,534,000Rwf to 251,016,000Rwf; because in 2005 and 2006 had to cover first the big losses registered in previous years.

Statistically, FINABANK roughly spent 1,000,466,200Rwf on its personnel and gained 108,542,400Rwf, annually. The standard deviation of that cost is 388,400,562Rwf and the one of profit is 344,413,256Rwf. The more money spent on staff is 1,555,544,000Rwf and the more money gained is 581,249,000Rwf while the less amount of money spent on staff is 562,854,000Rwf and the less profit recorded is the loss equal to -360,505,000; all of this, is in the range of 2004 to 2008, the interval of this research.

So, as it was well presented on the above graph, as far as the cost of staff increases, the profit of that year increases also, because the personnel is motivated and produces more to generate the high profit; what to say, there is a significant and positive correlation of 0.966120088 between cost on FINABANK's staff and the profit recorded in the period of 2004 up to 2008.

3.6. CHAPTER 3: SUB CONCLUSION

The third chapter analyzes benefits and contribution of MIS components to the FINABANK's better banking services. To do so, a qualitative and quantitative analysis have been made and show that FINABANK hardware, software, information, procedures and people have contributed significantly to the bank better banking services by enabling to collect, process, storing and communicating information for intention of a good decision making. From that information the researcher proved the second hypothesis.

For this study, with title «Managing Information Systems for batter banking services,» two objectives were sated out: The fist one was to investigate the Management of Information System within FINABANK, while the second one was to investigate upon the contribution of Information Systems upon FINABANK's performance, both for the 2004-2008 time frame.

To reach on these objectives and based on problem statement of our study, two questions were formulated:

In order to verify these hypotheses, the researcher has collected data through interview, observation, questionnaire and documentary techniques as well as website browsing. The researcher has analyzed this data from side to side various methods like historical, quantitative, analytical, synthetically and comparative methods.

This study has been subdivided into three chapters apart from general introduction and general conclusion and these chapters have been analyzed and concluded as follows:

Management Information Systems (MIS)	MIS LITERATURE REVIEW (Chapter 1)	MIS IN FINABANK (Chapter 2)	MIS BENEFITS (Chapter 3)
H A R D W A R E	A computer is a machine that can be programmed to accept data (input), process it into useful information (output), and store it away (in secondary storage devise) for safekeeping or later reuse. Equipment associated to that computer is called hardware and consist of the central processing unit, primary storage, secondary storage, input devices, output devices, and communications devices Technical Capacities to judge a PC are: The speed of CPU processing: more or equal to 1GHZ The had disc storing capacity: more or equal to 10GB *The temporally Memory (essentially RAM): more or equal to 100MB	(1) Equinox Banking Hardware: 6 HP File server, 3 DELL Database Servers, 120 HP & DELL PCs Client, Workstations, 54HP & DELL Laptops, 42KYOTERA KM1650 Printers, 30KYOTERA Copy Machine, 2DIEBOLD ATM, 40 Counter Machine, 5 Check verifier, 1 SIMBOL Bar Code Leader, 20 HP Scan jet G2710 Scanners, 5NSI Check Certifier, 1SDMO Generator (2) Video Surveillance Hardware: 15 SOME Cameras, 1 IRIS Frat screen monitor, CAT6 Cables, 1 IRS Disc Video Recorder (3) THE Queue Management Hardware: 5QM Queue Management, machine, 40QM Black Screen, CAT6 Cables, 40 QM Number caller button, 40 Satisfaction test button (4) Network Communication hardware: 6 SISCO Routers, 14 SISCO Switchers, CAT6 Cables (5) Fire Safety Hardware: One Card reader Machine and 6 accesses scanner machines (6) Access Control Hardware: 30 Fire extinguishes , 80 Smoke Detector, 6 Fire alarm and 20 Speaker	All of this hardware enables FINABANK to process massively and rapidly data and transform them into information on which decision making will base.
S O F T W A R E
The software is the set of instructions that cause a computer to perform one or more tasks. In Management Information Systems we have two major types of software: «system software» and «application software»
Application software: EQUINOX Banking System, CRI System, LEASEPAC, BNR System ASETWARE, MEGA System, Internet Explorer MICROBANKER, SWIFT System, Microsoft Office 2003 & 2007. System software: UNIX, Windows saver Windows XP Professional
			routine tasks *Improving customer service levels, perhaps by using ATM that customers can access some financial services- eg allowing customers to withdraw money without needing to contact any member of staff directly
D A T A & I N F O S	Data are facts and figures that are not currently being used in a decision process while Information consists of data that have been retrieved, processed for inference purposes of decision making. In MIS, information has to march to following dimensions: What? (Content), When? (Time), How? (Form).	Within FINABANK, data are raw facts or observations that describe money deposed or withdrawn, given as loan, gotten as loan repayment to or from customers, disbursed as salary to employees or as the cost of bank's assets. Data are processed in two ways: sequential and parallel and storage at the same time used in the Storage Network Area	Data help to ensure the integrity and confidentiality of FINABANK. The information is the core of FINABANK and without it, it can't operate. If a criminal is able to access this data, there is no limit to the damage they can inflict Losing sensitive data by way of natural disasters or physical robbery can have severe consequences on FINABANK, possibly demolishing entire organization
P R O C E D U R E S	A procedure is a specified s eries o f actions or operations which have to be executed in the same manner in order to always obtain the same result under the same circumstances	Account opening procedure, employee recruitment procedure, credit analysis procedure and the fire safety procedure are main procedures used in FINABANK	Procedures help guide FINABANK's employees when decisions need to be made without involving upper management. They help add an element of scalability to FINABANK. Especially in this type of industry - where they basically sell «services» - structure and having a clear understanding of the «steps (procedures)» that help arrive at the performance, is very much needed.

P E O P L E	Human Resources may be the most misunderstood of all corporate departments, but it's also the most necessary. Those who work in Human Resources are not only responsible for hiring and firing, they also handle contacting job references and administering employee benefits. In MIS, employees must be Information-literate knowledge workers, social responsible at the same time being motivated.	FINABANK had 135, 140, 136, 151, 174 employees-respectively for years 2004, 2005, 2006, 2007, 2008-motivated, socially responsible, and considerable as veritable Information-literate knowledge workers FINABANK implements Maslow's Needs Hierarchy to motivate its employees: Physiological Motivation: FINABANK provides ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials. Safety Needs: FINABANK provides a working environment which is safe, relative job security, and freedom from threats. Social Needs: FINABANK generates a feeling of acceptance, belonging, and community by reinforcing team dynamics. Esteem Motivators: FINABANK recognizes achievements, assigns important projects, and provides status to make employees feel valued and appreciated. Self-Actualization: FINABANK offers challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.	. Employees are looking for more responsibility and more involvement in decisions - particularly those which directly affect them The only competitive advantage many organizations have is the ability to improve the performance of their people at all levels Therefore HR management has to take on a whole new meaning and be regarded by senior management as a key component of the organization's activities and be given the requisite high profile in the development of its long term strategies. No matter how wise the CEO, or how great the product or service, the battle for customer loyalty is fought by the front-line troops - ^thoseemployees at the lower levels of the organization structure. Hence it is critical that due care and consideration be given those employees when developing HR policies and training programs
C	Managers who do not	The first hypothesis related to the	The second hypothesis
O	have the ability to use	implementation of MIS in	related to the benefits
	computers will become, in	FINABANK, has been verified and	and contribution of MIS to
N C	few coming days, organizationally	confirmed.	the FINA better banking services, has been
L U S	dysfunctional or worse, useless as decision makers		verified and confirmed.
I
O
N

Observations and suggestions from the researcher are also given below: OBSERVATIONS:

v' They can establish statistics based on issues handled about subjects, branches, departments, resources, etc.

v' Based on those statistics, they can establish where to put more emphasis, like if a problem is recurrent, how to tackle it differently

v' Users can follow online and real-time the issues they handed-over to IT, without going physically to check by themselves.

v' Issues already fixed are in records and can be retrieved later to fix similar cases.

v' It's easier to streamline resources available and determine profiles required. v' It's easier for user and managers to follow up and plan accordingly.

5. According to the Sever Room and the IT room in general, Data server room should only contain the Racks, Servers, Routers, Switchers, Firewalls, or other equipment with direct connection to these. Even for IT Team, remote access from their workstations should be privileged over physical presence in the room. Frequent accesses don't help anymore.

By here, I come to the end of my dissertation and offering the perspective researchers the chance of carrying on this study and provide their contribution about «Managing Information Systems for better banking services.»

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