Accounting Information Systems

Accounting Information Systems

What is information overload? When information comes in faster than our brain can process it. Information overload occurs when the volume of the information supply exceeds the limited human information processing capacity. What causes it? Personal factors, information technology, organizational design, task and process parameters, and information characteristics. What are its affects? : Stress and confusion are some of the results. How can decision makers deal with information overload in their personal life? Allow more time to complete important tasks.

Compress, aggregate, categorize, and structure information Create small, self-contained tasks rather than trying to do everything at once Define decision models and rules for common decision contexts Focus on creating value added information B. Explain the idea of knowledge management. Knowledge management: The process through which organizations generate value from their intellectual and knowledge-based assets. Why is it important? It changes the way organizations and individuals function. It helps prevent people from satisfying and bounded rationality, as well as relapse errors. What are some techniques to manage knowledge?

To create knowledge repositories To improve knowledge access To enhance the knowledge environment To manage knowledge as an asset C. Summarize the ideas and steps associated with Wolcott and Lunch’s Steps for Better Thinking. Foundation: Knowing -? acquire background knowledge and skills Identifying – identifying the problem, relevant information and uncertainties Exploring – interpret and organize the information Proportioning -? prioritize factors to consider, choose, and implement solutions Envisioning – deal with limitations to solution and use information to inform future decisions. 5-4 The problem with the paper based accounting information system is that it is not the most accurate or efficient way of collecting and processing data. The paper system will make it harder to keep up with the growth of the organization. CT should consider an automated ASS if it is within the financial capacity 15-11 1 . Wolcott and Lynch -? The creators of Steps for Better Thinking 2. Satisfying – Simony’s notion that people will accept the first reasonable solution for a robber 3. Relapse errors – Tendency to make the same mistakes repeatedly 4.

Proportioning – Looking at information from multiple points of view 5. Knowledge management – A system for creating value from intellectual assets 6. Identifying – Starting place for Steps for Better Thinking 7. Exploring -? SUB step that involves identifying personal bias 8. Envisioning – The last step in SUB 9. Bounded rationality -? Human tendency to rely on rules for making decisions 10. Database – Software that can be used to implement a SMS 15-13 Statement evaluation A. A supportive organizational culture is an important step in knowledge management: Always true B.

Bounded rationality prevents people from making good decisions: sometimes true -? it does not always lead to bad decisions C. Breaking up a complex job into smaller tasks can help combat information overload: Always true D. Even the smartest human beings have a limited capacity for processing information: Always true E. Information characteristics can contribute to information overload: Always true F. Information technology is a cause of information overload: Sometimes true – information technology can, but is not always the cause of information overload G.

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