Wright Company’s information system was developed in stages over the past five years. During the design process, department heads specified the information and reports they needed. By the time development began, new department heads were in place, and they requested additional reports. Reports were discontinued only when requested by a department head. Few reports were discontinued, and a large number are generated each period.
Management, concerned about the number of reports produced, asked internal auditing to evaluate system effectiveness. They determined that more information was generated than could be used effectively and noted the following reactions:
• Many departments did not act on reports during peak activity periods. They let them accumulate in the hope of catching up later.
• Some had so many reports they did not act at all or misused the information.
• Frequently, no action was taken until another manager needed a decision made. Department heads did not develop a priority system for acting on the information.
• Department heads often developed information from alternative, independent sources. This was easier than searching the reports for the needed data.
REQUIRED
a. Explain whether each reaction is a functional or dysfunctional behavioral response.
b. Recommend procedures to eliminate dysfunctional behavior and prevent its recurrence. (CMA Examination, adapted)
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