IMPACT OF DATABASE ON ORGANIZATIONAL PERFORMANCE IN AN INDUSTRY

1.1 Introduction

Database organizational performance has always had a significant influence on the actions of companies. One of the consequences of this influence is the increase in the number and variety of the means and methods to accurately measure the performance and, gradually establishing an important research field for both companies and academics. The last twenty years have, in effect, witnessed performance measurement (PM) (Metzger, 2007) gaining the interest of the academics in an ever-increasing number of research fields (Folan et al., 2005).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

Database organizational performance appraisal has attracted a great deal of attention, due to the under-performance of several banks which led to the winding down of some organizations. Annual database records of organizational performance appraisals enable management to monitor the standards, to agree on the expectations and objectives, and to delegate the responsibilities and tasks. The effect of the economic recession on the Nigerian economy has pushed banks to find ways to increase its level of employee productivity and maintain competitive advantage in the industry.

It is common knowledge that an organization’s effectiveness is determined by its decision-making capabilities, and decision-making is based on timely access to high-quality data. In order to carry out day-to-day operations, an organization’s transactions must be processed. Payroll must be prepared, and sales and account payments must be posted; these and other data processing tasks must be completed, but a database is more than just a data processing system. It’s a computer-assisted information retrieval system that provides data to managers and decision-makers (Journals, 2021).

Many businesses consider management of their information resource to be equal to their other key resources: properties, facilities, employees and capital. MIS is about analyzing and designing information system that fulfills those business requirements “Wherever people are active and working together in an organization, they work out some sort of system without the help of an analyst, through these systems, they get things done”. Such systems have been found to be frequently inefficient and sometimes even inadequate. It is really hard to imagine an industry or business that has not been affected by computer information systems and computer applications (Journals, 2021).

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Database on Organizational Performance in an Industry.

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1.3 Statement of Problems

Investigation revealed that managerial work has become increasingly information-intensive, and the world in which it is performed has become increasingly information-rich, thanks to modern trends. To summarize, any company that does not have a solid database will fail.

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1.4 Aim and Objectives of Study

The aim of the study is to examine the Impact of Database on Organizational Performance in an Industry. In achieving this aim, the following specific objectives were laid out as follows:

1. To investigate the factors inhibiting the database success on organization performance determination
2. To find out whether Database has any impact on organizational performance.
3. To determine whether database has any impact on management decision making.
4. To proffer relevant information as regards the impact of Database on organizational performance.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Does a database affect the success of an organization?
• Does the database influence the decision-making of the organization?
• Does Database have any impact on organizations performance ?
• Does database have any impact on organization decision making?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: Database has no effect on organizational performance.
• H1: Database has an effect on organizational performance.

Hypothesis Two

• H0: Information system has no impact on management decisions in an organization.
• H1: Information system has an impact on management decisions in an organization.

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1.7 Significance of Study

This research (project) is very relevant as it will provide first-hand information on the impact of information system on management performance in the oil industry.

The Oil Industry (NNPC): Management will be informed as regards how to effectively collect process, store and disseminate data at their disposal. This will lead to growth in the Nigerian National Petroleum Corporation and the oil industry in Nigeria.

The various investors (Potential and Existing) will benefit also as growth and development in the industry would mean growth in their investments.

As the industry advances due to proper management of information, it would be easy to discharge its corporate social responsibilities, thus, the society benefits.

Government: For environmental planning, military planning tax management, urban planning, rate management etc. All this can be made possible through Databases.

The research will also beneficial to future researches on this particular area of interest.

Where any similar research exists, it will add to the bank of knowledge for future studies.

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1.8 Scope of Study

The study focuses on the Impact of Database on Organizational Performance in an Industry. This research project will be carried out solely in the oil industry, Nigeria National Petroleum Corporation (NNPC) to be specific. It will be conducted only in Edo-State (Benin City) and will concentrate on information systems of management (one of the technologies designed to efficiently assist management in collecting and processing information).

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Research Methodology

The method to be used for collecting data for this project shall majorly be derived from two sources which are the primary and secondary sources.

The basic instrument for the collection of data shall be questionnaire. It is hoped that this medium will secure the needed information with great accuracy and will minimize cost and time.

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1.11 Definition of Terms

Computer: A computer is an electronic device that operates under instruction of stored programmes, accept input (data), process it according to specified rules, produces output (information) and store the result for future use (wisegeek, 2021).

Data: This could be defined as raw facts and figures that are not meaningful parse and cannot be used in making decisions until processed (Business, 2021).

Data Processing: Computer receives data as input, carries out manipulation on the data to give result (information) as output which is used for decision making. This process is referred to as data processing (Answers, 2021).

Files: Information held on backing storage (usually on magnetic discs or magnetic tapes) in order to enable it to persist beyond the time of extension of a single job and/or to overcome space limitations in memory (Wikipedia, 2021).

Information Technology: The practical application of science in various fields of learning, in transferring data or facts or information from one place to another. In relation to organization, information technology can be defined as the practical application of science in the production of goods and services in an industry (Webopedia, 2021).

Performance appraisal (PA): also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is the method by which the job performance of an employee is documented and evaluated.

Employee compensation plan: collectively refers to all the components in addition to the manner in which the compensation is paid and for what purpose employees receive case bonuses, salary increases and incentives.

Recruitment: this is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization.

Job Security: this is an assurance that an individual will keep his or her job without the risk of becoming unemployed. He/she will have continuity in employment and it may be from the terms of a contract of employment, collective bargaining agreement, or labor legislation that prevents arbitrary termination.

Effectiveness: The degrees to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs.

Efficiency: this is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste.

Performance: the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed.