An approach to the evaluation of the effectiveness of management information systems with particular application to public utilities and other organisations in nationalised industries within the United Kingdom

Abstract

The major objectives of this study are: (1) to develop a practical approach for evaluating, periodically and in quantitative terms, the effectiveness of management information systems; (2) to develop an evaluative device to check the results produced by the suggested approach. A modified semantic differential is developed and used for this purpose; and (3) to test the practicability and validity of the suggested approach by applying it on a sample of organisations for the purpose of evaluating the effectiveness of their management information systems. The foundation for the suggested approach is synthesised from the relevant literature. Specifically, a survey is undertaken of the literature in management information systems, accounting and psychology. The suggested approach assumes that users' satisfaction with the information provided by an information system indicates that the information is useful and consequently the system is effective. The approach takes also into consideration the views of both the providers of information and the persons affected by the decisions taken which are based, among other things, on the information provided by the system. A set of information criteria is developed to measure information utility and consequently the effectiveness of a management information system can be determined. To express the effectiveness in quantitative terms, a point scoring model is used so that the results can be compared from one period to the next. Also an operational framework of the suggested approach is developed. To evaluate the results produced by the suggested approach, the semantic differential is modified, based on the views of a sample of users of information and individuals involved in the preparation of management information, and is used as an evaluative device. As no similar research conducted on the effectiveness of management information systems in nationalised industries was found, it may be useful to test the suggested approach in this field. This application achieves two purposes: (1) primarily, to test the practicability and validity of the approach; and (2) to fill a gap in knowledge concerning the effectiveness of management information systems in nationalised industries. The results of this empirical study are based on the views of 198 individuals involved in the preparation of management information, who use the information and are affected by the decisions taken, which are based, among other things, on information.