and foremost, management is tasked with the responsibility of decision making
for EJ plc. These decisions are not just made in vacuum but rather, management
relies on factual information in that influences these decisions.
Management information is significant to the
customer acquisition and retention strategies of EJ plc. This means that it
would influence decisions which would involve understanding customer behaviours
in purchasing insurance in the first place. Information such as potential
customers are more prone buy insurance if the EJ plc runs a promotion to reward
new customers and renewal customers for coming to buy and renew respectively.
This information however would be made available to management from the
management information system of EJ plc and also surveys undertaken to acquire
this information from the public point of view. This would assist EJ plc tailor
make policy packages and promotions that would attract more customers.
Information on the human resource available to EJ plc would influence decision
such as allocation some employees to personally handle some profitable customer
accounts to establish that relationship with the company.
On the other hand, Lee, (2001) defined MIS
as a system or process that provides information needed to manage organizations
effectively (Lee, A.S., (2001), Editorial. MIS Quarterly, 25(1), iii-vii). Management would require report
providing factual information that would be significant to EJ plc to enable them
make decisions to harmonize existing strategies with new strategies to be
formulated. This would go a long way to prevent decisions that is aimed at
retaining customers from conflicting or underserving the best interest of EJ
plc. Retaining the business of a customer who has a myriad of insurance
policies would be essential to EJ plc. This means that EJ plc would have to
satisfy the needs of the customer to ensure he or she is retained. EJ plc would
not take actions to serve the interest of customers at the detriment of the organisation.
Decisions such as managing cover for flood prone areas which would serve the
interest of the client at the expense of EJ plc. This information would be acquired
through the claims report of customers who have made flood claims in certain
areas frequently. Information as such would influence decisions such as
limiting cover or denying cover completely for flood in these areas.
Management Information is which influences
management decision making takes inconsideration the resources available and how
best management can use these resources to achieve the corporate objective. Management
of resources such human and financial resources.