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"COMPUTER ·APPLICATIONS IN BUSINESS MANAGEMENT

A SURVEY OF PRIVATE FIRMS IN NAIROBI,KENYA"//

BY

KHAWAJA ~

A MANAGEMENT PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS AND
.
ADMINISTRATION, FACULTY OF COMMERCE, UNIVERSITY OF NAIROBI .

..,
JUNE 1990.
 ABSTRACT

This study has been conducted to find out the extent to

which computers are applied in Business Management practices

in private se9tor firms in Nairobi, Kenya.

The literature review discusses the utilisation of computer-

based information systems in management. The management task

has been looked at from the decision-making point of view.

The specific areas of and scope for decision making using

computer-based information systems at the managerial

hierarchical levels and functional areas has been the main

focus of the literature review. In essence, the literature

review develops the case and justification for the

utilisation of computer-based information systems in the

Management process.

A questionnaire was employed as the major data collection

instrument, and was administered to 60 companies, out of

which 42 responded positively. Computer usage was prevalent

in all the firms sampled, and these varied in ownership from

local to foreign, to joint venture companies. A majority of

the companies acquired their computer facilities over the

last 10 years, and own in-house computer systems.

(ii)

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The findings of the study revealed that the widest area of

computer application in business management was at the

middle and lower management levels for tactical and

operational control purposes. Computer applications for

strategic control purposes were encouraging although the

figures were low.

In the functional field, computer usage was dominated by

Finance and Accounting applications, with Marketing,

Production and Personnel Management-fagging behind.

The m~jor reasons for undertaking computerisation were

attributed to the accuracy, speed and efficieny in

information processing as a result of innovations in

computer technology. More important management-related

reasons for computerisation included the need to free

management for more analytical tasks, and provide a system

for easy and speedy decision making.

Inspite of a few limitations, the findings of this study

provide an interesting synopsis of the management areas in

which computer-based information systems are actually

applied. The~e findings can provide an indication to

managers of where exactly they are falling short of

utilising their computer facilities optimally.

(iii)
The findings also act as indicators of the actual and

potential demand for computer products, and producers of

computer products would ,be wise to keep pace with such

studies.

Recommendations for increasing computer usage in business

management have been discussed, and include an impetus in

user-training and promotibnal efforts. Suggestions for

further in-depth research have also been made.

(iv)