Identify a problem within an area of Management responsibility and create a
Decision Support System to solve it.
Managers are often faced with problems that may affect the flow of work. It is crucial that managers find the most suitable way of solving the problems they encounter. Some of the many problems encountered involve decision making, and managers need to come up with the most effective system in order to make decisions in a quick and effortless manner.
The decision support system is one such system. According to Laudon et al (2006), decision support systems are “information systems at the organization’s management level that combine data and sophisticated ...view middle of the document...
Loan application forms are first checked by Loans Officers, and then the General Manager, after which it is passed on to a Credit committee which meets once a week to discuss whether the loans should be approved or not.
This process can be tedious and often frustrating for members, especially because the committee is not always able to meet every week, and the loans cannot be approved or declined without the input of the committee.
The wait period experienced with the current approval system is a major disappointment for members who request the loans and need the funds urgently, and since there is no shortage of competitors in this financial arena, disgruntled members can easily approach any number of competitors in the field to access similar loans with shorter approval times.
Such drastic action by any number of members could spell potential doom for the Credit Union since the loss of members (especially those desiring loans) directly results in loss of revenue for the organization. A domino effect could result based on the fact that less income means fewer funds available to pay staff and cover other required expenditure. The company could be forced into lay-offs or to make staff redundant, or approach other possible cost cutting measures such as wage freezes. Such uncertain financial atmosphere could also affect staff morale and mental perception, especially in light of the ever increasing prices of food and other commodities, and this may lead to breakdown in the flow of work.
BENEFITS TO BE DERIVED FROM IMPLEMENTING AN AUTOMATED FEEDBACK SYSTEM
The system to be developed will provide benefits for members and the credit union at large. As previously mentioned, loans are the credit union’s best income generating product, therefore improvement in the loan approval process will give the credit union a better competitive advantage.
Faster turnaround times resulting in quicker confirmation of approval will mean greater satisfaction for members, and greater appreciation of the Credit Union’s ability to provide the services that members desire. Therefore word will spread on the excellent service being provided by the Credit Union, and more persons will be interested in becoming members with the desire to access loans as well as the other services offered. Increased membership coupled with greater numbers of disbursed loans will lead to greater revenue for the credit union.
Having this automated system for processing loans will mean that fewer staff will be needed to perform the preliminary required functions in the loan approval process, and these members of staff can function in other areas such as marketing to potential members utilizing electronic methods as well as face to face meetings. This will mean that the Credit Union will be able to reach a wider potential membership base especially those who may not just walk into the credit union to find out about the services offered.
PROPOSED PROCEDURE FOR...