Management Information System Report: Banking Challenges

This report examines the management information system (MIS) of a struggling bank, identifying key issues such as poor customer relations, outdated technology, and ineffective management strategies. The analysis reveals the detrimental effects of these problems, including increased customer complaints, market share decline, and employee layoffs. The report delves into the root causes, including poor planning, inadequate resource management, and a lack of technological advancement. It proposes solutions centered on improved strategic planning, enhanced customer relationship management (CRM), and technological upgrades to boost the bank's competitiveness. Furthermore, the report emphasizes the importance of effective leadership, employee management, and communication to achieve organizational goals and improve overall performance. The analysis includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, offering a comprehensive approach to revitalize the bank and improve its position in the competitive banking industry.

Running head: Management Information System 1
Management Information System
Name
Institution Affiliate

Management Information System 2
Management information system
Introduction
Banking and insurance companies are very competitive service industries organizations;
this is where changes in the market occasionally happen as it occurs in the world. The bank
organization of which I have been a client for several years is having a series of predicaments
such as its rise of customer complaints due to the poor services that have greatly increased and
downfall in the market shares due to continuous losing events. It is one of the oldest banking
industries in Australia and has been able to survive in the service industry till the recent times; it
has been overwhelmed by occasional current change occurring in the economic world (Menor &
Roth, 2008).
The organization poor performance indicators
The main cause of the poor performance is due to the poor and unresponsive management
planning and poor customer relation and satisfaction. The most evident results reveal that poor
management and lack of customer satisfaction are continuous customer complaints without
changes, mismanagement of funds and resources thus leading to withdrawals of investors due to
fear of loss. Also, the bank has faced some other challenges like losing of its clients to other
banks, and a high number of employees lay down due to the shut down of its various branches.
The organization management has failed due to various reasons such as poor planning and
timeworn methods of management, poor resources management leading to the growth of debts
and scarring of the investors due to mismanagement of funds. Poor staff management and
coordination of staff or employees, and poor problem-solving techniques that have led to piling
up of challenges in operation of the system (Belkhir, 2009).

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The information management within the organizational structure and to the clients also
has been a great problem in the organization this has led to poor customer relation and
satisfaction. The poor or bad customer relation has been contributed to various causes such as
poor marketing strategies that can be able to compete effectively with the competitors thus
causing a lot of loss of customers. The banking system has made tremendous changes in the
technology advancements; some of the changes are customer ability to access information and
services online or even able to control over their accounts via mobile phones. The organization
has been too slow or unable to move with the technological advancements: this has given the
competitors much more advantage in the marketing of their businesses. Apart from the disability
of bank to cope with technology changes the banking system has been unable to move with the
current quality of customer expectations thus leading to poor customer satisfaction (Verhoef et
al., 2009).
Main matters to be considered
According to Kumar, (2010) he argues that any organization mainly relies upon a very
effective management that one that can have over view of the whole industrial operation of the
organization running efficiently. The main cause of the bank problems is through poor leadership
and lack of proper strategic plans that enable the business structure to achieve the best standards
of service to the customers. Good strategic plans and policies of an organization are very useful
in goal targeting and in giving the direction to an organization on the path to being followed for
achieving its objectives. Another problematic requirement that has hindered the poor
performance of the organization is the lack of technology improvement as compared to the
growth of the organization and change with the economy. Through this dormant growth of

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technology it has led the services of the organization to become outdated, and thus the
organization is unable to compete effectively in the market.
Management strategies and planning
The bank management system can effectively operate by first drafting business policies
and plans that would help in the meeting the objective of the business. The policies should be
able to cover the employee management where they will perform effectively by the organization
requirement and also be able to enjoy the full benefits of employment. The communication
structure should be very effective this will be able to eliminate the poor problem solving; through
this, even the customer's issues can easily be looked upon or solved. The plans and policies of
the organization should also consider after SWOT analysis of the business and also through
proper analysis in the market (Linoff & Berry, 2011). The organization situation analysis SWOT
(strength, weakness, opportunity, and threat) enable it to identify its problems and how best to
curb the situations. The SWOT analysis also helps the organization to identify its strength and
opportunities thus its ability to maximize its potential in the business operation.
Goal and objectives of any organization are very crucial in the establishment of business
plan and policies, and plans. The effective growth of an organization is well-known by analyzing
the achieving rate; the organization should have key indicators that will show the trend of the
organization and mostly the most effective ways of addressing the issues. An example of such
indicators in the bank would be the rate at which its market shares are trading in the stock
market, customer satisfaction clarification and ability to maintain good relationships with the
customer and loyalty (Buttle, 2009).

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The organization should also consider improving its service standards through
recruitment of more qualified personnel’s that can offer more efficient customer service. The
bank should sell its brand more efficiently through more advertising which would give the
organization much better platform against its competitors. Through the recruitment of more
qualified staff, the organization can implement a much more improved system communication
upgrade that would be able to serve the customers more efficiently as to the required standards.
Advancement in the technology will be a very efficient means of the operational management; it
enhances more communication system of the organization where the top managers can be able to
participate in the business operation with ease (Young, O'byrne, Young, Young, & O'Byrne
Stephen, 2000).
Also, leadership is an essential strategy in any organization through which every
employee can perform effectively by the requirement and policies of the organization.
Leadership may differ from managerial duties where it’s an objective of every employee to able
to have good leadership qualities such as integrity, commitment, accountability, and all the
required business ethics. Integrity is one of the virtues in every organization and mostly in the
service industry such as the banks. An employee should be able to portray the type of leadership
skills and mostly his commitment and accountability to the organization best outcomes and
service to the customers (King & Burgess, 2008).
Conclusion
In summary, the basic problem faced by the organization was poor management and lack
of organization strategies that enabled the organization to operate effectively and be able to
withstand the challenges faced by the organization. Through proper implementation of good

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management strategies, and effective policies and plans organization can operate to its potential
best: The organization (bank) can show very drastic recovery from the poor performance.
Another change that will greatly increase the potential of the business and enhance its mode
communication and service to the customer is the advancement in the organization technology
and its ability to keep up information technology changes (Stevenson & Hojati, 2007).

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References
Belkhir, M. (2009). Board of directors' size and performance in the banking industry.
International Journal of Managerial Finance, 5(2), 201-221.
Buttle, F. (2009). Customer relationship management: concepts and technologies.
Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
King, S. F., & Burgess, T. F. (2008). Understanding success and failure in customer
relationship management. Industrial Marketing Management, 37(4), 421-431.
Kumar, V. (2010). Customer relationship management. John Wiley & Sons, Ltd.
Linoff, G. S., & Berry, M. J. (2011). Data mining techniques: for marketing, sales, and
customer relationship management. John Wiley & Sons.
Menor, L. J., & Roth, A. V. (2008). New service development competence and
performance: an empirical investigation in retail banking. Production and
Operations Management, 17(3), 267-284.
Stevenson, W. J., & Hojati, M. (2007). Operations management (Vol. 8). Boston:
McGraw-Hill/Irwin.

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Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., &
Schlesinger, L. A. (2009). Customer experience creation: Determinants,
dynamics, and management strategies. Journal of Retailing, 85(1), 31-41.
Young, S. D., O'byrne, S. F., Young, D. S., Young, S., & O'Byrne Stephen. (2000). EVA
and value-based management. McGraw-Hill Professional Publishing.