MANAGEMENT INFORMATION SYSTEM UTILIZATION AND MARABA COFFEE COMPANY PERORMANCE, IN RWANDA

A Thesis

Presented to the School of

Postgraduate Studies and Research

Kampala International University

Kampala, Uganda

In Partial Fulfillment of the Requirements for the Degree

Master of Business Ad ministration

Option Management

By:

Domitille UWANYILIGIRA

Registration number: MBA/20030/82/DF June, 2011 DECLARATION A

“This thesis is my original work and has not been presented for a Degree or any other academic award in any University or Institution of Learning”.

omitille UWANYIRIGIRA

J ne, 2011

/ 4- I I R •\ DECLARATION B

“I confirm that the work reported in this thesis was carried out by the candidate under my supervision”.

Ylv~’ Name and Signature of Supervisor

Date APPROVAL SHEET

This thesis entitled “MANAGEMENT INFORMATION SYSTEM UTILIZATION AND MARABA COFFEE COMPANY PERFORMANCE IN RWANDA” prepared and submitted by Domitille UWANYIRIGIRA in partial fulfillment of the requirements for the degree of Masters of Business Administration, Option Management, has been examined and approved by the panel on or xamination.

N e and Sig. of Chairperson

~ndS~Jr~~ ~

Name and Sig. of Panelist Name and Sig. of Panelist

Date of Comprehensive Examinatiorr 2011

Grade:

Name and Sig. of Director, SPGSR

Name and Sig. of DVC, SPGSR DEDICATION

This thesis is dedicated to the Almighty God, my Children, my husband, my brothers and sisters in God and to all who contributed to my studies.

iv ACKNOWLEDGEMENTS

Researcher is highly grateful to God who granted me life, health and protection during the study and research.

Researcher also recognizes and appreciates the good roles of the lecturers, Staff members of postgraduate at KIU and colleagues for the rich ideas they have provided which were instrumental to the success of this work.

Researcher is highly grateful to all staff members of Maraba Coffee for the cooperation and steadfastness during the period of collecting data.

Researcher is highly grateful to DVC, SPGSR Novembrieta R. Sumil Ph.D., Chairperson of panel Dr. Manuel 0. Sumil and members of penal Dr. Kabir Haruna and Dr. Jones Orumwense for the correction ideas they have provided which rendered the high quality this research.

Researcher is very grateful to the supervisor, Mr. Malinga Ramadhan, for his invaluable criticisms and advice which gave him meaningful directions throughout the period of the research work.

Research is grateful to my family for the financial and to all persons who contributed to my studies.

V ABSTRACT

This research was carried out to contribute to the greater understanding of management information system utilization and Maraba coffee performance.

Despite the fact that Maraba coffee made tremendous progress in selling its products, it is still suffering from low internal and external information operation connected to its profitability.

This study was guided by three of the following objectives. The first is to determine profile of respondents, the second the level of management information systems used by various business units of Maraba coffee in the production operation. The third is to determine the extent of the company performance in Maraba coffee company, and the last is to determine if there is a significant relationship between MIS and the performance of Maraba coffee company.

The research used descriptive and correlational design, and used questionnaire and interview guide questions as instruments to collect data from sample size of 332 respondents derived from a total population of 1338 employees using stratified and random sampling method.

The findings discovered that business activities performance in which MIS is intensively used in the company are transaction processing, Products processing, information processing, and advertisement processing.

It was concluded that MIS application! operation and the performance of Maraba coffee company have significantly the relationship. This finding was supported by the findings which stated that there is a significant relationship between MIS application and organization performance.

vi TABLE OF CONTENTS

CHAPTER ONE 1 THE PROBLEM AND ITS SCOPE 1 Background Information 1 Statement of the Problem 2 Purpose of the Study 3 Objectives of the Study 3 Research Questions 3 Research hypothesis 4 Scope of the Study 4 Significance of the Study 5 Operational Definitions of Key Terms 5

CHAPTER TWO 7 REVIEW OF Related LITERATURE 7 Introduction 7 Concepts, Ideas, Opinions from Authors! Experts 7 Theoretical Perspectives 20 Related Studies 20

CHAPTER THREE 22 RESEARCH METHODOLOGY 22 Research design 22 Research Population 22 Sample Size 23 Sampling Procedures 23

vii Research Instruments 24 Validity and Reliability of research instruments 24 Data Gathering Procedures 25 Data Analysis 25 Ethical Considerations 25 Limitations of the Study 26

CHAPTER FOUR 27 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 27 Introduction 27 Profile of respondents 27 Results of research through questionnaire and interview 27 Description data by objectives 29 Pearson’s Linear Correlation Coefficient results correlating 40

CHAPTER FIVE 42 FINDINGS, CONCLUSIONS, RECOMMENDATIONS 42 FINDINGS 42 CONCLUSIONS 44 RECOMMENDATIONS 46 REFERENCES 48

viii LIST OF TABLES

Table Page Maraba coffee employees departments 22 The sample size of this study using Slovin’s formula 23 Profile of respondents 27 Level of MIS 29 Extent of company performance 32 Verify hypothesis: Pearson’s Linear Correlation Coefficient.~. 40

ix LIST OF ABREVIATIONS

MIS: Management Information System RWASHOSCCO: Rwanda Small Holder Specialty Coffee Company USAID: United States Agency for International Development SMEs: Small Medium Enterprises DSS: Decision Support Systems IS: Information Systems USA: United States of American IT: Information Technology US$: United States Dollar NUR: National University of Rwanda PEARL: Partnership for Enhancing Agriculture in Rwanda through Linkages TPS: Transaction Processing System ESS: Executive Support System SPSS: Statistical Package for Social Scientists C: the standard grade traded PLCC: Pearson’s Linear Correlation Coefficient

x APPENDIX

APPENDIX I: QUESTIONNAIRE FOR MANAGER,STAFF AND EMLPOYEES 52 APPENDIX II: INTERVIEW GUIDE 58 APPENDIX III: RESEACHERS CURRICULUM VITAE 60

xi CHAPTER ONE THE PROBLEM AND ITS SCOPE

Background Information of the study Steven, (2010) defined Management Information Systems (MIS) as being the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. According to Geerders, (2004) Management Information Systems (MIS) can be used to facilitate access to a wide range of integrated data sets however its application is something new that came with information technology to organizations, institutions and companies. MIS application involves some strategies that support data processing of information while operating in an organization (Steven, 2010).

Since 1900 Rwandans had no the strategies of MIS application for producing the commercial products. Thus, it leads to the majority of products to be below grade C (the standard grade traded) due to the lack of fine quality consistency of the products. According to Steven,(2010) the use of management information system were confined to specific business functional activities such as office operations only and not other production operations thus it lead to poor performance of Maraba coffee company.

From the year 2000 the farmers were supported by the National University of Rwanda (NUR) and the partnerships who want to enhance agriculture in Rwanda such as United States Agency for International Development (USAID). These Partnerships supported Agriculture of Maraba coffee and improved the quality of the products but its aspects of MIS were ignored a bit. The products were going to the markets Union Hand Roasted Company based on the United Kingdom in England and other products to the Community Coffee Company based in Louisiana in United States of American. (Steven, 2010)

1 In the year 2003, the Maraba coffee made a progress and gained 35 000 $ net profits because of selling its products to these markets but its aspects of MIS is still ignored not well managed. The issue of MIS application is something new it came with information technology it is not used well in Rwanda .This research wants to establish effectiveness of management information system (MIS) utilization and the performance of Maraba coffee company. (Steven, 2010)

Maraba coffee products were among these products and were classed below Grade C (the standard grade traded) on the global coffee markets. The smallholders had no better means to prepare their coffee. This meant that the buyers paid only US$0.33 per kilogram of coffee, and the farmers were living in extreme poverty. Within the time limit the farmers needed to produce excellent coffee. They hoped that they would be able to increase their revenue by selling directly to the exporters in Kigali rather than having intermediary transports. (Steven, 2010)

Statement of the Prob’em

Since before and after the year 1900 lack of proper information processing facilities caused Rwandese farmers to get low price for their products. This situation worsened after the 1994 genocide, when the entire country’s social, economy and infrastructures broke down and placed the greater number of population into poverty. Thus, Maraba coffee production deteriorated as well (Janzen, 1999).

In the year 2000, Maraba coffee began to reform its products and has been supported by the National University of Rwanda (NUR) and the Partnership for Enhancing Agriculture in Rwanda through Linkages (PEARL).These efforts were

2 only done on aspect of financial aids for improving the productivity of Maraba coffee. (Janzen, 1999)

Although, Maraba coffee made tremendous progress in seWing its products, it is still suffering from low internal and external information management operations connected to its profitability. Furthermore there are no significant studies that have been done about its aspects of Management Information System (MIS) applications that can lead to its growing profit. Thus from the above account, the research conducted was to determine the relationship between MIS utilization/ operation and the performance of Maraba coffee,

Purpose of the Study The purpose of this research is to determine the relationship between MIS application/utilization and the performance of Maraba Coffee Company.

Objectives of the Study

General objective:

To investigate the correlation between management information system and performance of Maraba coffee company.

This study focus on the following specific objectives: 1. To establish the profile of the respondents in tirme of gender age, educational level in the organization 2. To determine the level of management information system used by various business units of Maraba coffee in the production operation. 3. To determine the extent of the company performance in Maraba coffee company.

3 4. To determine/establish if there is a significant relationship between Management Information System and the performance of Maraba coffee company.

Research Questions This study was guided by the following research questions: 1. What are the profiles of respondents? 2. What is the level of management information system used by various business units of Maraba coffee in the production operation? 3. What are the extent of the company performance in Maraba coffee company. 4. What is the relationship between Management Information System and the performance of Maraba coffee company.

Null hypothesis H0: There is no significant relationship between the level of Management Information System and the extent of performance of Maraba coffee company.

Scope of the Study This research is located in Huye district south province of Rwanda after 1994 genocide. It deals with the current management information system utilized at Maraba coffee company.

The scope of this study deals also with the total number of employees who is of about 1338. 814 are male and 498 are female, total number of the staff 20 are male 5 are female and manager is chosen for this study.

This study was guided by theoretical scope of the Small Medium Enterprises’ MIS (SMEs). Management information system used in Business Company is efficiently and effectively in that integrating a feedback of information from manager to the management levels. (Poutziouris, 2003)

4 Significance of the Study This study is significant because the benefits shall accrue from it are many. Specifically the findings provide the knowledge requirement for MIS utilization that must help manager, staff and employees for growing the products of company.

Furthermore, the concerned of Maraba coffee aware that there is relationship between MIS utilization and the perlormance of company.

Finally, Manager find the results of this study valuable after revealing the issue of management information system he will get some solutions. As the consequence, the products of company will be better grown.

Operationa~ Definitions of Key Terms The key concepts that are going to be analyzed are the following: MIS application, utilization and performance.

MIS appNcation/utiNzation is the use of information technologies to transform data into information useful for decision making and provide the tools necessary to gain a better understanding of the market as well as a better understanding management of the enterprise itself. MIS application utilization improves reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process MIS comes with the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Better MIS utilization enables a company to react more quickly to their environment, enabling to push out ahead of the competitors and produce a better service.

5 Utilization is the extent to which a given group uses particular services. It is also the extent to which the members of group use a program~

In business economics utilization is a concept which refers to the extent to which an enterprise uses its products. It refers again to the relationship between outputs that is produced with the equipments for growing this enterprise.

Performance is considered when there are more successful than its competitors in areas such as profitability, customer service and strategy of company~

Performance is centered on having definitive objectives, a well organized plan, and following up. Indeed, each component is vital in assessing current performance.

Performance can help to increase employees’ productivity. It is intentionally designed to bring out the best in people and thereby produces organization capacity that delivers sustainable business results.

6 CHAPTER TWO

REVIEW OF LITERATURE

Introductbn This chapter reviews the key issues that exist in literature on the topic of the study. Particularly this literature is from the different Authors and covers different views in the area of management information system.

Concepts, Ideas, Opinions from Authors! Experts

Terry, (2004) said that MIS application today can help an organization to manage powerfully Information Technology (IT) and secures mission data and systems to attain a higher level of reliability and more effectively collaborate with the customers and partners who are found in the global markets and MIS transforms business into solid advanced Networking Solutions for performing the products of the small business company than it used before.

Sheena, (2000) however argues that MIS is costly assets, and requires detailed planning if is designed, implemented and operated in an organization. The adequate introduction and performance of MIS require strong commitment consultation and coordination with all stakeholders.

Sheena, (2000) in his research found that a key issue for application of MIS is open distribution of information which causes an information imbalance between the partners, leading to less than optimal decisions.

Geerders, (2004) however argues that management information system refers to integrated data sources and information systems, which meet the particular needs and requirements of planning and decision-making that allow the relationship between MIS application and organization performance.

7 According to Terry, (2004) MIS is utilized to connect the database driven by website application designed and bring the customers, vendors and staff together.

From Wikipedia, the free encyclopedia (2005) Management Information Systems (MIS) can be used successfully to facilitate a wide range of integrated data sets and can become even more powerful tools for planning and decision-making.

Silver, (2001) however argues that there is little relationship between MIS application and organization performance.

Concepts Framework

Types of Information System

Furthermore, today, to manage information system is broadly used in a number of contexts that includes Decision Support Systems (DSS), Transaction Processing Systems (TPS) and Executive Support Systems (ESS).

Decision Support System (DSS)

Decision Support System (DSS) is a class of information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. (Keen, 1978)

Typical information that a decision support application might gather and present are:

8 o an inventory of all of your current information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), comparative sales figures between one week and the next, • Projected revenue figures based on new product sales assumptions.

DSS uses the communication-driven DSS, data-driven DSS, document-driven DSS, knowledge-driven DSS, and model-driven DSS.

• A communication-driven DSS supports more than one person working on a shared task; examples include integrated tools like MicrosoftTs NetMeeting A data-driven DSS or data-oriented DSS emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data. A document-driven DSS manages, retrieves, and manipulates unstructured information in a variety of electronic formats.

o A knowledge-driven DSS provides specialized problem —solving expertise stored as facts, rules, procedures, or in similar structures • A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation. (Keen, 1978)

DSS benefit is to improve personal efficiency, problems solving in an organization, facilitates interpersonal communication, Promotes learning or training, increases organizational control, Reveals new approaches to thinking about the problem space, and helps automate the managerial processes. (Keen, 1978)

9 Transactbn Processing System (TPS)

Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise. The success of commercial enterprise depends on the reliable processing of transactions to ensure that customer orders are met on time, the partners and suppliers are paid or can make payment. (Hopkins, 2000)

Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise.

TPS exhibits the following characteristics:

The rapid processing of transactions is vital to the success of any enterprise now more than ever, in the face of advancing technology and customer demand for immediate action. TP Systems are designed to process transactions virtually to ensure the customer data available to the processes that require it. (Hopkins, 2000)

Standardization of transactions must be processed in the same way each time to maximize efficiency. To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the customer.

Controlled access of TPS systems can be such a powerful business tool, access must be restricted to only those employees who require the use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process. (Hopkins, 2000)

While the transaction process must be standardized to maximize efficiency, the following are two broad types of transaction:

10 Batch processing is a resource-saving transaction type that stores data for processing at pre-defined times. Batch processing is useful for enterprises that need to process large amounts of data using limited resources.

Examples of batch processing include credit card transactions, for which the transactions are processed monthly rather than in real time. Credit card transactions need only be processed once a month in order to produce a statement for the customer. (Hopkins, 2000)

Real time processing, in many circumstances the primary factor, is speed.

TPS uses the files to store and organize its transaction data:

Master file: Contains information about an organization’s business situation. Most transactions and databases are stored in the master file, Transaction file: It is the collection of transaction records. It helps to update the master file and also serves as audit trails and transaction history. Report file: Contains data that has been formatted for presentation to a user. Work file: Temporary files in the system used during the processing. Program file: Contains the instructions for the processing of data. (Hopkins, 2000)

Executive Support System (ESS) Executive Support System (ESS) is a reporting tool (software) that allows turning your organization’s data into useful summarized reports. These reports are generally used by executive level managers for quick access to reports coming from all company levels and departments (Robert, 2004).

ESS is also software system under control of one of many decision-makers that assists in the activity of decision making by providing and organizing set of tools of the decision making situation. Sharing the same concepts of a DSS, an ESS

11 focuses more in the end-user requirements of maximum interactivity and user friendly. ESS can be understood as a friendly, fully customized and interactive. (Robert, 2004)

ESS focuses only on interactive and executive assessment tools, those which can be used personally by end-users. An ESS requires a previous expert work filtering information and knowledge into meaningful indicators and tools.

The Role of ESS in the organization is to execute information overload for making the right decision and summarizing information executives need and yet provide the opportunity to link data from various sources both internal and external. (Robert, 2004)

ESS benefit is to provide the information that helps to make the decisions and summarizes information, provides better understanding of information, and filters data for better time management. (Robert, 2004)

ESS Characteristic is a degree of use high consistent information, Computer skills required and control, (Robert, 2004)

Application of MIS in various business operations Business operations are the area of the business concerned with the production of the products and services. The products management of business operations involve ensuring the systems and processes of producing and delivering products and services that are the most efficient possible ,using as little resource as needed; whilst at the same time ensuring the end product or service is a high quality as possible, and hopefully exceeding your customers’ requirements. (Walker, 2003)

12 More efficient business operations examining the following steps the first inputs ( materials, labour, energy);the second conversion system and processes ( the methods of manufacturing or creating the service) and the last ,final products and services. (Walker, 2003)

Application of MIS in business operations requires a system to aid in gathering pertinent information about the company and making business decisions. Management information system can be manual or computerized process that completes the function. These systems can provide timely, accurate and relevant information for various business needs.

MIS application in business operations involves three following elements such as facts, features and effects, these elements are developed below. (Galliers, 1999) Facts Company often installs compute and business software in each department and division. This allows business and financial information to be transferred electronically to an end user, who can include owners, managers and employees. Features

Management information system is usually customizable to each company. This allows business owners and business managers to create specific reports that will automatically run once the system gathers all necessary information. Using an Internet-based information system can allow companies to gather information from several internal or external of company.

Effects Management Information system is an important business environment function today. Owners and managers must have the most up-to-date business information to make decisions and maintain the company’s competitive advantage. The gathering of information related to company processes can also

13 allow a company to correct negative situations quickly and minimize financial losses. (Galliers, 1999)

Performance of an organization as resuft of MIS utilization Organization performance of MIS utilization is characterized by the following elements such as operation levels, new products, services and business model, customer and supplier intimacy, improved decision making, competitive advantage, globalization, marketing, customer services and survival of an organization. (Barbara, 2005) These elements are developed below:

Operation levels Business improves the efficiency of its operations in order to achieve higher profitability. Management Information system is important tools available to manager for achieving higher levels of efficiency and productivity in business operations.

New products, services and business models Management Information system is a major tool for company to create new products and services, and also an entirely new business models. A business model describes how a company produces, delivers, and sells its products or service to create wealth.

Customer/supplier intimacy A company business serves its customers well, the customers generally respond by returning or purchasing more. This has impact of raising revenue or profits and the supplier can provide vital inputs. Improved decision making Management Information system helps manager to use the right information at the right time to make a decision.

14 Competitive advantage A company achieves one or more of the business objectives( operational excellence, new products, services, and business models, customer/supplier intimacy, and improved decision making) is already achieved a competitive advantageS Doing things better than your competitors, charging less for superior products, and responding to customers need and suppliers in real time add up to higher sales and higher profits.

GDobaflization By utilizing advanced and more efficient management information systems tools, company is able to expand internationally into new markets, thus increasing market share on a global scale. It may take awhile to gain an audience in a new country with awareness of the product.

Marketing Advanced management information systems can be used to help the marketing department to analyze both current and potential customers, consumers and improves the “quality” of products and Advertising increases consumer retention as well.

Customer Service As management information system is streamlined, data becomes more accessible, and company becomes more organized, it allows company representative the ability to quickly and effectively respond to customer inquiries. As customer service is more efficient and effective, customer loyalty will be gained and relationship will be spread. This is a significant way to increase market share. (Barbara, 2005)

15 Management Information System (MIS) Design MIS design operates in an organization is showed in the following diagrammatic with all influences: (Terry, 2004)

From Terry, (2004)

MIS design has the majority influences on an organization such as: planning requirements, organization structure, management style, use of information technology, legal requirements, control structure, primary function &size of organization and decision making requirements. These data of MIS design of company are explained in details below

Planning requirements of an organization is based on the different plans that are made during year by a Manager, the financial analysis that include the budget, expense and financial services. (Terry, 2004)

16 Use of information by leaders of an organization and decision making is taken by Manager after getting information from their different levels of management. Legal requirements regulate the salary of Manager, staff and employees.

External environment of company is based on the interaction with the markets and customers. Sizes of company include all levels of management that are involved in an organization.

Control and evaluation are based on the monitoring the revenue of company at the end of every year and control the operations of the products every day, monthly and year. (Terry, 2004)

Maraba coffee orga n~zatbn Structure Organization structure of Maraba coffee uses some the type of Management Information System (MIS) such as Decision Support Systems and Executive Support Systems that allow manager to take some decision.

Organization structure of Maraba coffee company is the following:

17 General Committee

From Maraba coffee organization structure document, (2000)

Organization structure is based on management levels, the members committee and the leaders that include the Manager, staff and employees. (Maraba coffee organization structure document, 2000)

18 Maraba coffee Information Processing There is a way to manage Information processing from the Manager to the stations. This is presented below to the cycle’s diagram:

From Manager to the stations

3

From Maraba coffee documents, (2000)

This cycle diagram shows that the information is from Manager and passes through to the chief of the stations who give the report to the Manager as a feedback. The information is followed up, stored for decision making by Manager. The files contain the data are classified according the months and years. The lack of the safety places can cause the destroyed of some information no stored. The storage room of information is not arranged only one table, one shelf and no electronic storage of information that is available.

19 Terry, (2004) wrote that “the value of information derives from the value of the change in decision behavior.” This means that there is a tendency to assume that after receiving all information Manager can change or modify some decisions which are appeared wrong in an organization.

Theoreticall Perspectives This study was guided by the theory of the Small Medium Enterprises (SME5). According to Poutziouris (2003) this theory of SMEs has baseline on MIS that performs business activities and operations. The SMEs’ MIS should be designed to achieve the following goals: growth of the products of enterprise, communication among the managers of the departments, staff, employees, complex information through management levels and operational levels.

Management information system used in Business Company is efficiently and effectively in that integrating a feedback of information from manager to the management levels. (Poutziouris, 2003)

This theory has been judged useful to regard this study. (Nasser, 2006)

R&ated studies Lev& of management information system used by various business units Walker, (2003) asserted in his investigation that the level of management information system used by various business units based on the following elements: Internal and external control over data integrity in an organization, decision-making processes in company, Monitoring and controlling of information of company.

20 Company performance Barbara, (2005) asserted in his investigation that company performance management information system reduces the risk management and improving decision —making of organization on business management performance.

Company performance management influences organization sustainability in improving services to customers, company’s progress toward accomplishing its goals. Through perlormance measurement, an organization can assess how well its operations are aligned with business strategy.

Rdationsh~p between management information system and performance Geerders, (2004) found in his investigation that there is a significant relationship between the uses of management information system and performance of an organization. These relations based on business activities, international and local 88markets integrated across the organization and maintain an enterprise wide focus during the planning process and heed the impudence of each unit’s plans for cross-functional operations. Units must work together in areas where they overlap to ensure that individual plans do not contradict each other.

21 CHAPTER THREE RESEARCH METHODOLOGY

Research design This research design is descriptive and correlation as well, The data are calculated by using the means and percentages.

Research Popu’ation The population of this research is the number of all Maraba coffee company staff and employees who are in investigation of this study. Maraba coffee has the departments of production, products, finance, techno center, sales and marketing departments. According to the departments Maraba Coffee employees are below in the table.

Maraba coffee emp~oyees departments Emp~oyees departments Frequency Production department 1000 Product department 148 Financial department 80 Sales department & Marketing 100 Techno center department 10 Tota~ 1338 From Maraba coffee documents, (2000)

The total number of population is 1338. Production department the employees are 1000, Product department employees are 148, financial department employees are 80 Sales department & Marketing employees arel00and Techno center department employees are 10. In addition, Manager is chosen for this study.

22 Samp~e Size To determine the ideal sample size of population, Slovin’s formula is used:

n = N/ (1 + N*e2) Where: n = number of samples

N = total population e=margin of error (e=5%=0.05).

For this research, twenty four (24) staff has been selected and 307 employees have been selected in the sample size. In addition, Manager has also been chosen for this study. The sample size is presented in the table by using Slovin’s formula.

The samp~e size of this study using Sbvin~s formub

Category Popu~ation Samp~e size Tota~

Manager 1 1 1

Staff 25 24 24

Employees 1312 307 307

Tot& 1338 332 332

SampNng Procedures

This research used both stratified sampling and simple random sampling method. Whereby the stratified sampling method divided the population into homogenous groups such as manager, staff and employees based on characteristics one considers important, and simple random sampling techniques ensured that every group in a sample has an equal chance of being selected in the sample (Patton, 1990).

23 Research Instruments This study uses two kinds of instruments questionnaires and interview guide. The questionnaires used are 332, 3O7for employees, 24for staff and iquestionnaire for manager. Interview guide is used of gathering data.

Va~idfty and ReNabWty of research instruments Data collected refer to the validity and reliability of the instruments used during conducting the research. The research instrument of validity that the researcher used was questionnaire. Before carrying out the study, the researcher consulted the supervisor to make sure that the instrument generated relevant information during the study. To test and improve on the research instrument of the reliability of the questionnaire, the Content Validity Index (CVI) was calculated from the formula below: CVI= n/N Where, CVI: Content Validity Index, N: 8 (Total number of items in questionnaire), n: 6 (number of relevant items in the questionnaire) CVI= 0.7 Since the CVI of research instrument was greater than 0.7, then the instrument was declared content valid.

After calculation the reliability CVI was 0.77 and 0.78 for employees and the staff respectively. It is to note that when this formula is used, the instrument is reliable when the reliability calculated range between 0.60 and 0.80 or above. The nearer the value calculated is to 1.00, the higher the reliability of the instrument: the higher it is consistent in measuring what it is intended to measure.

This research represents the content that is consistent so that gives the results and conclusions of this study credibility.

24 Data Gathering Procedures An introduction letter from the Director of the School of Post Graduate Studies of Kampala International University is given to the researcher to introduce her to the Manager of Maraba coffee company asking for permission to collect data to the staff and employees of Maraba coffee company. After, the researcher made the first contact with the respondents before administering the questionnaires in order to ensure the harmony.

The researcher used the questionnaires distributed to the target respondents, documentation and the interview guide used for capturing the feelings and opinions of the respondents. Data were analyzed by using SPSS

Data Anallys~s This study uses Statistical Package for Social Scientists (SPSS) to analyze data by using simple and complex frequency tables. The same package used to analyze the means, correlation and the ranks. Data of this research is relevant with the statistical based on the research objectives: to determine the type of management information systems applications used by various business units of Maraba coffee in the production operation, to determine the business activities in which MIS is intensively used in Maraba coffee company, and to establish the relationship between MIS application /operation and the performance of Maraba coffee company.

Ethkafl Considerations The principle of anonymity is respected and the researcher tried her best to handle the respondents to give their information they should be given. The researcher kept confidential information of the respondents and associated with them during gathering data session.

25 Limitations of the Study The anticipated threats to validity in this study were as follows: Intervening or confounding variables which were beyond the researchers control such as honesty of the respondents and personal biases. To minimize such conditions, the researcher requested the respondents to be as honest as possible and to be impartial / unbiased when answering the questionnaires.

The research environments were classified as uncontrolled settings where extraneous variables may influence on the data gathered such as comments from other respondents, anxiety, stress, motivation, on the part of the respondents while on the process of answering the questionnaires. Although these were beyond the researcher’s control, efforts were made to request the respondents to as objective as possible in answering the questionnaires.

Testing: The use of research assistants may render inconsistencies such as difference in conditions and time when the data was obtained from respondents. This was minimized by orienting and briefing the research assistants on the data gathering procedures.

Instrumentation: The research tools was no standardized hence a validity and reliability test were done to arrive at a reasonable measuring tool.

Attrition: A representative sample may not be reached as computed due to circumstances within the respondents and beyond the minimum sample size will be done by the researcher to avoid this situation.

26 CHAPTER FOUR PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Introduction In this chapter the data for this research are presented, analyzed, and interpreted based on the results obtained from the research questions and interview guide.

Profile of respondents Resufts of research through questionnaires and interview The Respondents of this study included manager, staff and employees of Maraba coffee company. The respondents’ description involved gender (male and female), age, different education levels, and employees departments.

Demographic data Description of empbyees by sex Employees’ description by sex Statement Frequency % ~ Male 220 62.5 ~ Female 112 37.5 Total 332 100.0 Source: Primary data 2011

The findings of the study indicated that majority of employees were males represented by 62.5% while females were minority represented by 37.S%.

Description of employees by age The researcher described employees according to their age in order to establish the effect it might have on performance of Maraba coffee.

27 Age of employees Statement [ Frequency 20 -29 years 100 30.1 30 -39 years 180 54.2 40 -49 years 50 15.0 50 years and above 2 0.7 Total 332 10O~0 Source: Primary data 2011

The findings of the study indicated that majority of employees represented by 54.2% were of age bracket 30-39 and 30.1% were of age 20-29, minority represented by 15.0% were of the age bracket 40-49 years and 0.7 above.

Description of Academic qualification of employees The researcher described employees according to their education level in order to establish the effect it might have on their perrormance. Education level of em~lovees

Level - Frequency - %

0 — Level and below 80 24.0 A—Level 200 60.2 secondary education 36 10.8 University education 16 5.0 Post graduate education 0 0 total 332 100 Source: Primary data 2011

The findings of the study revealed that the majority of the employees in the sample size have low level of education, 60.2% at A- level and 24.0 % at the 0- level and below. These percentages of employees affect negatively MIS and ignored its operation/application. The percentage 1O.8% secondary school and 5% university degree of employees is too low to determine all aspects application of MIS in Maraba coffee company. 28 Description by department The researcher described employees according to the department in order to Establish the impact it might have on performance of Maraba coffee. Emp~oyees by departments Statement Frequency % Production department 200 60.2 Product department 106 31.9 Financial department 2 0.6 Sales department & Marketing 20 6.2 Techno center department 4 1.1 Tota~ 332 100,0 Source: Primary data 2011

The findings of the study revealed that the majority of the employees are in production department represented by 60.2% and 31.9% in the department of product, while minority of the employees 0.6% are in financial department and l.l% in department of techno center department, 6.2% are in department of sales & marketing. These percentages above of employees specifically techno center allow mismanagement of MIS during its application.

Description data by objectives The researcher determines an effectiveness level and the type of management information systems applications according to the following tables, then the responses were analyzed using SPSS’s summary statistics showing the means and interpretation.

Objective2: To determine the ~eve~ of management information system used by various business units of Maraba coffee in the production operations

29 Qi. The level of MIS in Maraba coffee is based on: Lev& of MIS in Maraba coffee company Leve~ of MIS Mean Interpretation Internal and external control over data integrity 1.76 high Decision-making 1.98 high Monitoring and controlling of information 1.90 high Planning of MIS 1.87 high Average 1.87 high Source: data collected

The means of the table show that specifically 1.76 of respondents are agree with the level of internal and external control over data integrity. The mean 1.98 of the respondents are agreeing with effectiveness level of decision- making. The mean 1.99 shows that the respondents are agree with effectiveness of monitoring and controlling information. The mean in table 1.87 of the respondents are agreed with the level planning of MIS.

Q2: The type of management information systems applications used by various business units of Maraba coffee in the production operation are the following: Type of management information systems appNcations used by various business units of Maraba coffee in the production operation

Items Mean Interpretation Transaction Processing Systems(TPS) 1.99 high Management Information Systems(MIS) 1.99 high Decision Support Systems (DSS) 2.05 high Executive Support Systems(ESS) 1.91 high Average 1.99 high Source: data collected

The types of MIS the table above shows that specifically 1.99 of respondents are highly agree with transaction Processing Systems (TPS) and Management Information Systems(MIS) used by various business units at Maraba coffee. The mean 2.05 of respondent are highly agree the used of Decision Support Systems

30 (DSS) and 1.91 of respondents are agree the used of Executive Support Systems (ESS)

Q3~ Manager interacts with the staff and employees by using: Manager interacts with the staff and emp~oyees. Media Mean Interpretation Mobile 3.08 Low use Internet 3.19 Low use Visiting them 3.00 Low use Average 3.09 Low use Source: Data collected.

The means in table show that most of respondents are disagree with the media used of information processing. The mean 3.08 confirm low use of mobile phone, 3.19 confirm low use of internet, 3.00 confirm low use of field visiting and3.09 confirm low use the media of information processing in general. The means above confirm the low use of management information system due to sometimes lack of connection.

The findings revealed that mobile phones are not enough, Internet is sometimes no connected and field visiting sometimes manager lacks the transports only there two cars for all company. This can disturb the process of information when information is needed about the growth of the products in real time. The results on this research go hand in hand with the writings of Terry, (2004) who found that the highest management information system is concerned with the information that is communicated in time for its purpose, and the requirements of some equipment.

31 Objective2: To determine the extent of the company performance in Maraba coffee company.

The study revealed that company performance based on business activities performance in which MIS is intensively used in company. The table below shows:

Qi: Company performance business activities in which MIS is intensively used in Maraba coffee company are: Company performance business activities of Maraba coffee company Company performance business Mean Interpretation activities Transaction processing 1.77 high Information processing 1.99 high Products processing 1.90 high Advertisement processing 1.88 high Average 1.88 high Source: data collected The mean in table 1.77 of the respondents are agree with transaction processing business activities in which MIS is intensively used in Maraba coffee. The mean 1.99 shows that the respondents are high agree with information processing business activities in company and the mean 1.90 of respondents are agree with products processing business activities of Maraba coffee. The mean 1.88 of the respondents agree with advertisement processing business activities in Maraba coffee.

Transaction processing business activities performance of Mara ba coffee The mean= 1.77 of transaction processing business activities performance Q2: There are international markets and local markets. International markets are:

32 Internationaa markets and lloca~ markets Item Mean Interpretation International markets Sufficient 3.01 Low Insufficient 2.01 high Average 2.51 high Local Market Sufficient 3.01 Low Insufficient 2.01 high Average 2.51 high Source: Data collected The means 3.ol of respondents confirmed insufficient with international markets and local markets. The means 2.01 of respondents confirmed international markets and local markets are insufficient. The average 2.51 of respondents shows that international markets and local markets are insufficient.

The findings discovered that transaction processing the products of company has only three markets which are international such as Community Coffee Company of USA, Union Hand Roasted of England and Shetora Trading of Japan. This indicates that there is a lack of international markets due to the products of coffees that are produced during year (Mean= 2.01). Researcher found that management information system trough international markets are based on the quality and quantity of green coffees which are packaged for these markets.

For Community Coffee Company of USA receive one container and half means that it takes 18 000Tones and half which contains 9 000 Tones of green coffees, Union Hand Roasted of England receive two containers which take 36 000 Tones of green coffees and Shetora Trading of Japan receive few quantity of green coffees because of this moment doesn’t pay the money for the quantity that it had received before so that this time no green coffees have been sent for this market.

33 The results of this study found that there are the issue about pay back of money and waiting a long time of payback for some international markets. It has also been noticed by researcher, management information system trough international markets is supported by Rwanda Small Holder Specialty Coffee Company (RWASHOSCCO) for performing the products that is based at Kigali as Warehouse. It packages the green coffee into the containers, Blanding them and sending these containers to the Mombassa port, then, to these international markets. These findings are supported by Terry, (2004) who discovered during his investigation about MIS of transaction the Warehouse receives business order; order processing and the customer send the order. He summarizes this by following diagrams:

Products packaged delivery Warehouse MIS ______Customers processing Order & Markets processing processing dOrder sent Order

Although MIS is utilized in business activities for growing company profitability and performance, the findings discovered that there is the lack of information communication due to the connection that is still not working sometimes.

The findings discovered that the local markets are available but not enough (mean=2.01table10a)~ There are at Kigali city, Butare town, Gitarama town and Bukavu in Republic democratic of Congo near the border of Rwanda.

Products processing business activities performance of Maraba coffee The respondents confirm that the information is based on the products processing business activities of company (mean =1.90). The quantity of

34 products is classified according the years, the quantity of the products of coffee that is calculated in kilogram or Tone and the price of coffee per one kg (1/ kg). The price is skinning into the dollars. The following are the data of the productions within the years of 2002-2008.

Before MIS application

Products processing business activities within the years 2002-2008 Years Quantity/kg or T Price/Dollars/lkg Income % 2002 30120kg 8.37% 2.65$ 79818$ 22.18% 2003 37200kg 10.33% 2.87$ 106764$ 29.67% 2004 68 760kg 19.11% 2.98$ 204904$ 56.94% 2005 60540kg 16.82% 3.41$ 206441.4 57.37% $ 2006 52500kg 14.59% 3.61$ 189525$ 52,67% 2007 46420kg 12.91% 3.80$ 176396$ 49.02% 2008 64260kg 17. 85% 4.21$ 270534.6 75. 19% $ Total 7years 359800kg 14.28% 1 234 383.8$ 49.01%earnigs Source: data collected

Above table9b information about quantity produced of coffee which is stored into the file shows that during 7 years the production was 14.28% and income were 49.Ol%. This means that a company comforts the challenges about the lands that are small for the plantation of coffee, insufficient of the seed of coffees which must be planted, few chemical fertilizers used for raising the plantations and the insufficiency of the medicines to protect the coffee plantations during the disease. These issues allowed a few earnings and few quantities of the products. It means that before using MIS, company profitability of the products was very few according to the output earnings of 49.0 1%.

35 Q3: The information managed is about: Managing information Item Mean Interpretation Quantity of Maraba coffee products 2.00 high Quality of Maraba coffee products 1.75 high Employees ofMarabacoffee company 1.96 high Average 1.90 high Source: Data collected

The mean in table shows that 2.00 are high agreed with quantity of Maraba coffee products information. The mean 1.75 of respondents are high agreed with quality of Maraba coffee products information. The mean 1.96 of respondents are high agreed with employees’ information of Maraba coffee.

Q4: The quality of the products after MIS application is:

After MIS appNcation

Qua Ntv of the products Statements Mean Interpretation The quality of the products is 1.90 High Excel lent The quality of the products is 1.75 High Normal The quality of the products is 1.96 High Ordinary Average 1.87 High Source: Data collected The most of respondents (mean =1.90) are highly agree with the quality of the products that is excellent. The mean 1.75 of respondents are highly agree with

36 the quality of the products that is normal and the mean 1.96 of respondents are agree with the quality of the products that is ordinary. The most of respondents agree the quality of the products is high. (Mean= 1.87)

The findings discovered that Maraba coffee has a laboratory and three mills (Catador, gradeur and a miii like table for sorting the green coffee).These Categorize the coffees into the grades. The best coffee (green coffee) Is called fifteen plus (15”) and good coffee is called fifteen minus (15 ). The best coffee has a grade of excellent (mean= 1.90) and the good coffee has a grade of normal (mean= 1.75). The Information about the quality of the products Is based on the packages of 60 kIlograms or Tones of excellent coffee (15’) and normal coffee (15) sold for the international markets.

Advertisement processing business activities performance of Martha

The respondents are agree with advertisement processing business activitIes performance (Mean=1.88). The findings discovered that Maraba coffee has web site and E-mail ([email protected]) for advertising Its products so a company has been gained three cups. Two cups are from President of Rwanda, Paul Kagame, and other one Is from the country of Swaziland, according to the quality of the products that is excellent for the green coffee (Mean =1.90) performIng Into the world markets.

Information processing business activities perfonnance of Maraba

The respondents are agree with information processing business activities (mean= 1.99). The findings are supported by Terry, (2004 who said that information system is viewed as a means of processing data which is

37 transformed into information that is used for decision making in business activities. He summarizes this into the following diagram:

Decision

Objective3: To determine/ estabhsh if there is a significant r&ationship between Management Information System and the performance of Maraba coffee company~

Q: The relation between MIS application! operation and the performance of Maraba coffee company: MIS Application in Maraba coffee company Statements Mean Interpretation Maraba coffee uses MIS in its 2.02 High appreciated departments MIS is necessary for maraba coffee 1.75 High appreciated MIS improves maraba coffee products 1.90 High appreciated Average 1.89 High appreciated Source: Data collected

The mean 2.02 of the respondents agree with the use of MIS in the departments of M araba coffee. The mean 1.75 of the respondents is high appreciated MIS is necessary in Maraba coffee. The mean 1.90 of the respondents are agree MIS improves maraba coffee products. The most of the respondents agree high application of MIS in Maraba coffee company. (Mean= 1.89)

The findings discovered that the respondents accept management information system with the combination of the departments (mean=2.02) and MIS

38 operation /application with the departments of Maraba coffee company is like the following:

Production department I Financial I MIS Sale Department [~ ~ application & ~ ~ department ~ Operation I Products department

The findings are supported by Terry, (2004) who discovered during his investigation about MIS application by nature, draws upon wide range areas of knowledge which are considered to be the most important in its development and its operations. These areas are not independent but interact with and complement each other.

Performance of Maraba coffee com~anv Performance Mean Interpretation Profit of Maraba coffee is growing 1.94 High performance Maraba coffee products is increasing 1.84 High performance Quality of maraba coffee products is standard 1.93 High performance Average 1.90 High performance Source: Data collected

The mean 1.94 of the respondents agree with profit of Maraba coffee is growing up. The mean 1, 84 of the respondents agree with Maraba coffee products are

39 increasing. The mean 1.93 agree with the quality of Maraba coffee products is standard. The most of the respondents agree high performance of Maraba coffee company (mean= 1.90)

Pearson’s Unear Corrdation Coefficient corr&ating the resufts between MIS appNcation/operation and the performance of Maraba coffee company

The third objective of the study was to establish whether there is a relationship between MIS application! operation and the performance of Maraba coffee company, for which it was to verify hypothesis of research. To test the hypothesis, the Pearson’s Linear Correlation Coefficient (PLCC) was used to correlate the variables. The results of this test are indicated in table 13;

Verify hypothesis: Pearson’s Linear Corr&ation Coefficient corrdating the resufts between MIS appNcation/operation and the performance of Maraba coffee company

VariaMes Correlated r- Sig, Interpret Decision value value ation on H0 MIS Vs Performance 0.408 0.000 Significant Rejected Interaction Vs Performance 0.127 0.000 Significant Rejected Business activities Vs Performance 0.246 0.000 Significant Rejected International markets Vs Performance 0.566 0.000 Significant Rejected Local markets Vs Performance 0.567 0.000 Significant Rejected Information Vs Performance 0.689 0.000 Significant Rejected Source: SPSS data collected

The r- value 0.4OSand sig. (0.000) in table 10 indicates positive correlation MIS Vs performance. Interaction Vs performance is significantly a positive correlation (r-value=0. 127, sig=0.000), Business activities Vs Performance (r-value=0.246, 40 sig=0.000), International markets Vs Performance(r- value=0.566, sig. =0.00) and Local markets Vs Performance(r- value=0.567, sig. =0.000) are positive correlated and significant. Information Vs Performance(r- value =0.689, sig. =0.000) indicates a positive correlation.

The significant values indicate that the relationship between MIS Vs performance is correlated so that to increase MIS application is significantly increased performance of Maraba coffee company. Hypothesis of study which was, there is no significant relationship between MIS utilization/operation and the performance of Maraba coffee company, is rejected. (Decision on H0 Rejected)

41 CHAPTER FIVE

FINDINGS, CONCLUSIONS, RECOMMENDATIONS

This chapter presents findings, conclusions and recommendations to the major findings of the study in light of objectives. The section suggests some areas that need further investigations.

FINDINGS

This study set to establish whether there is a significant relationship between MIS application/operation and the performance of Maraba coffee company. It was guide by four specific objectives that included Profile of respondents, determining the level of management information systems used by various business units of Maraba coffee in the production operation (2), determining the extent of the company performance in Maraba coffee company (3), and to determine if there is a significant relationship between management information system and the performance of Maraba coffee company (4).

Data analysis using SPSS showed that the level of effectiveness of MIS in Maraba coffee is based on internal and external control over data integrity (meanl.76), decision-making (meanl.98), Monitoring and controlling of information (meanl.90) and planning of MIS (meanl.87).

The type of management information systems applications used by various business units of Maraba coffee in the production operation are Transaction Processing Systems (mean= 1.99), Management Information Systems (mean=1.99), Decision Support Systems (mean=2.05), and Executive Support Systems (Mean= 1.91)

42 Data analysis using SPSS showed that business activities performance in which MIS is intensively used in Maraba coffee company are transaction processing (mean= 1.77), information processing (mean= 1.99), products processing (mean= 1.90), and advertisement processing (mean= 1.88). The findings of this study discovered that international markets and local markets of maraba coffee are insufficient (mean=2.01) such as Community Coffee Company of USA, Union Hand Roasted of England and Shetora Trading of Japan. The quality of the products is classified into the grades of green coffees: the best green coffees that called fifteen plus (15j is excellent (mean= 1.90), good green coffees that called fifteen minus (15 ) is normal (mean=1.75 tablelOd) and green coffees that are ordinary. (Mean= 1.96) The most of respondents agree the quality of the products is high. (Mean=1.87). The findings are in line with the writings of Terry, (2004) who found that the highest quality of the products is concerned with the markets of enterprise.

The results of this research are also in line with the findings of Terry, (2004) who found that by the nature Management information system trough international markets are based on the quality and quantity of green coffees which are packaged for the markets.

Results using Pearson’s Linear Correlation Coefficient (PLCC) found that there is a significant relationship between MIS application/operation and the performance of Maraba coffee company. The table r- value= 0.408, sig. (0.000) indicate positive correlation MIS Vs performance. Interaction Vs performance is significantly a positive correlation (r-value=0.127, sig=0.000), Business activities Vs Performance (r-value=0.246, sig=0.000), International markets Vs Performance(r- value=0.566, sig. =0.00) and Local markets Vs Performance(r value=0.567, sig. =0.000) are positive correlated and significant. Information Vs Performance(r- value =0.689, sig. =0.000) indicates a positive correlation.

43 The findings are also in line with the findings of Geerders, (2004) who found that there is a significant relationship between MIS application and organization performance.

The relationship between MIS Vs performance is significantly a positive correlated. Hypothesis of study which is to determine when there is no significant relationship between MIS utilization/operation and the performance of Maraba coffee company, is rejected (Decision on H0 Rejected)

CONCLUSIONS

In this section, the researcher gives conclusion to the study findings in relation to the objectives.

The respondents (sample size=332) was dominated by male (62.5%) while the females loped behind (37.5%).The study demonstrated that majority of the employees are in the age bracket of 30-39years(54.2% ), 20-29 years(30.1%), 40-49 years(15.0%),and Soyears and above(0.7%).

The findings showed that the majority of respondents are A — Level (60.2%), 0 — Level and below (24.O%), secondary education (10.8%), University education (5.0%), and post graduate education (O%) this disclosed that employees haven’t enough knowledge to MIS application/utilization. Majority of the employees in table6 are in production department represented(60.2% ) and 31.9% in the department of product, while minority of the employees 0.6% are in financial department and 1.l% in department of techno center department, 6.2% are in department of sales & marketing. These percentages above of employees specifically techno center allow mismanagement of MIS during its application.

44 The second objective was to determine the level of management information systems used by various business units of Maraba coffee in the production operation, the researcher concludes that the level of MIS in Maraba coffee is based on internal and external control over data integrity (meanl.76), decision- making (meanL98), Monitoring and controlling of information (meanL9O) and planning of MIS (meanl.87).

The types of management information systems applications used by various business units of Maraba coffee are: Transaction Processing Systems (TPS), Decision Support Systems (DSS), and Executive Support Systems (ESS)

The third objective of this study was to determine the extent of the company performance in Maraba coffee company for which it was found that business activities performance in which MIS is intensively used in company are transaction processing, Products processing, information processing. and advertisement processing,

The four objective of this study was to establish whether there is a significant relationship between MIS and the performance of Maraba coffee company, for which it was found that relationship between MIS application! operation and the performance of Maraba coffee company is significantly correlated.

Finally, basing on this general findings, the researcher concluded that MIS Vs performance is correlated so that to increase MIS application is significantly increased performance of Maraba coffee company. Hypothesis of study which was, there is no significant relationship between MIS utilization/operation and the performance of Maraba coffee company, is rejected. (Decision on H0 Rejected)

45 RECOMMENDATIONS

This section deals with recommendations arising from the pertinent findings and conclusions of this study, and the study objectives, for which the following recommendations are made;

Based on the findings of the second objective, the researcher recommends that the effectiveness and types of management information systems applications used by various business units of Maraba coffee contribute more to enhancement Maraba coffee performance, manager should note the following;

1. There is a need in collaboration with the government and other partnership to increase MIS effectiveness application that is used in this company by providing the provision for training the employees.

2. The effectiveness and type of management information system must be taken care, and its aspects, to enhance the resources available that are managing information processing such as internet networking, network connected, which are insufficient. Based on the findings of the third objective, the researcher recommends that if the business activities performance in which MIS is intensively used in Maraba coffee company contribute more to Maraba coffee performance, manager and government should note the following;

1. The management information system through markets must be performed because of new business activities is transformed into rock solid by using advanced Networking Solutions and develops the web applications that serve to the customers faster and more efficiently than ever before for facilitating the purchase of the products.

46 2. Manager should know that business activities performance must be a wide range of business activities application of technology for performing the quality of products and benefits.

Based on the findings of the four objective, the researcher recommends that if there is a significant relationship between MIS application! operation and the performance of Maraba coffee company, manager should note the following;

The relationship between MIS application! operation and the performance of Maraba coffee company are significantly correlated, so that should bring out a set of operating guidelines of MIS application and Maraba coffee performance.

As my work is not exhaustive, future studies would be concerned with the following areas:

- Assess the extent to which MIS design employed to enhance business of a com pa ny~

- Management information system of institution performs the highest business activities in Rwanda.

- Explore the issues that affect MIS in business activities of any company.

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51 APPENDIX: RESEARCH INSTRUMENTS

APPENDIX I: QUESTIONNAIRE FOR MANAGER, STAFF AND EMPLOYEES

Dear Respondent, Manager, staff and employees

I am student at Kampala International University, studying Master of business Administration Management. This is questionnaire on the study “MANAGEMENT INFORMATION SYSTEM UTILIZATION AND MARABA COFFEE COMPANY PERFORMANCE IN RWANDA”~ I hereby request you to participate in this study by responding to the questions. The information you provide through this questionnaire will only be used for academic purpose and your response will be kept completely and treated confidential.

Thank you for your collaboration.

52 Question na re

Part I: Demographk data Direction: please indicate in the box provided as your response:

Your sex Female Male

Your age 20-29 30-39 40-49

50 - above

Your quallfication 0-level and below A-level Secondary education University education Postgraduate

Empbyees by departments

Production department ______

Product department ______

Financial department ______

Sales department & Marketing ______

Techno center department ______

53 Part II: Objectives Data Instruction: please indicate your response mode by ticking the box provided at the end statement Strongly Agree (SA) =1, Agree (A) =2, Disagree (D) =3, Strongly Disagree (SD) =4 Response mode Interpretation Strongly Disagree(SD) Disagree with no doubt at all Disagree(D) Disagree with some doubt Agree(A) Agree with some doubt Strongly Agree(SA) Agree with no doubt at all

Objective2: To determine the ~eve~ of management information systems used by various business units of Maraba coffee in the production operation

QL The level of MIS in Maraba coffee is based on:

Levd of MIS SD D A SA Internal and external control over data integrity Decision-making Monitoring and controlling of information Planning of MIS

Q2: The type of management information systems applications used by various business units of Maraba coffee in the production operation are the following: Statement SD D A SA Transaction Processing Systems(TPS) Management Information Systems(MIS) Decision Support Systems (DSS) Executive Support Systems(ESS)

54 Q3: Manager interacts with the staff and employees by using: Statements SD D A SA Mobile Internet Physical meeting

Objective3: To determine the extent of the company performance in Maraba coffee company~

QI: The business activities performance in which MIS is intensively used in Maraba coffee company are:

Business activities performance of Maraba coffee Statement SD D A SA Transaction processing Information processing Products processing Advertisement processing

Q2: There are international markets and local markets.

International markets are: Statement SD D A [SA Sufficient Insufficient Local markets are: Statement SD D A SA Sufficient Insufficient

55 Q3: The information managed is about: Statements SD D A SA Quantity of Maraba coffee products Quality of Maraba coffee products Employees of Maraba coffee company

Q4: The quality of the products after MIS application is: Statements SD D A SA Excellent Normal Ordinary

Objective4: To determine if there is a significant r&ationship between Management Information System and the performance of Maraba coffee company~

Q: The relationship between MIS application! operation and the performance of Maraba coffee company are:

MIS Application in Maraba coffee Statements SD D A SA Maraba coffee uses MIS between its departments MIS is necessary for maraba coffee MIS improves maraba coffee products

56 Performance of Maraba coffee company Statements SD D A SA Profit of Maraba coffee is growing Maraba coffee products is increasing Quality of maraba coffee products is on the standard grade traded(C)

57 APPENDIXII: INTERVIEW GUIDE

L The level of MIS in Maraba coffee is based on:

Level of effecUveness of MIS SD D A SA Internal and external control over data integrity Decision-making Monitoring and controlling of information Planning of MIS

2. The type of management information systems applications used by various business units of Maraba coffee in the production operation are the following:

Statement SD D A SA Transaction Processing Systems(TPS) Management Information Systems(MIS) Decision Support Systems (DSS) Executive Support Systems(ESS)

3. The business activities performance in which MIS is intensively used in Maraba coffee company are:

Business activities perforamance of Maraba coffee company Statement SD D A SA Transaction processing Information processing Products processing Advertisement processing

4. The relationship between MIS application! operation and the performance of Maraba coffee company are:

58 MIS Application in Maraba coffee company Statements SD D A SA Maraba coffee uses MIS between its departments MIS is necessary for maraba coffee MIS improves maraba coffee products

Performance of Maraba coffee company Statements SD D A SA

Profit of Maraba coffee is growing — Maraba coffee products is increasing Quality of maraba coffee products is on the standard

59 From 2000 to 2005: National University of Rwanda: Faculty of Education: Bachelor Degree From 1999 to 2000: Modern Languages and Practice. (E.P.L.M) Frpm 1984 to 1991: Secondary School. Diploma of Humanity Pedagogy From 1978 to 1984: Primary School de Rusongati

Work Experience

From June and July, 2010: I was in Ministry of Trade and industry (MINICOM) for internship where I was in department of industry, service of Small Medium Enterprises and Cooperatives development. I analyzed the actions plan, business plans, and I did Monitoring & Evaluation progress of action plan and I verified when the results are achieved of the following cooperatives: COTAGIRWA, KABU, CON FIGI, BAGENGE JUS, TANTUMERGO and others. Then I wrote the report meeting the industry unit and the report meeting of the cooperatives members with the coordinator of the industry. Also I wrote the internal memo and I was done on the project plan of Packaging of Excellence Center in Rwanda and so on.

From 2005 to 2007: Teacher of French & Kinyarwanda at School of parents From 1997 to1999: Teach of French & Kinyarwanda at Official School of Butare (G.S,O.B.) From 1993 to April 1994: Teacher of Center Arts From 1991to 1993: Teacher of Primary school of Rusongati

Other Relevant Data

June18t~~, 2010: I was participated in accountability day of MINICOM.

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