When does goal congruence occur in a system?
when a subsystem achieves its goals while contributing to the organisations overall goal. The larger the organisation & the more complicated the system the more difficult it is to achieve goal congruence.
System aspects in designing a system?
- Simplicity - Performance - Economy -----> this results in good design
How can you define good design?
an absence of 'wrong things'
a set of facts that are collected, recorded, stored & processed by an information system
data that has been organised & processed to provide meaning & improve decision-making processes
this occurs when there are limits to the amount of information a human mind can absorb and process are pasted. Resulting in a decline in decision-making quality & an increase in the cost of providing that information
Value of information
the benefit produced by the information minus the cost of producing it
Benefits of quality information
- reduced uncertainty - improved decision - improved ability to plan & schedule activities -----> resulting in lower organising costs
the time & resources spent to produce, store & distribute information
Characteristic that make information useful & meaningful?
- relevant - reliable - existance - valid - complete - timely - measureable - understandable - verifiable - accessible
Characteristics of useful information?
viewed as the "wrongness" that must be avoided to achieve a good design system
reduces uncertainty, improves decision-making, or confirms or corrects prior expectations
free from error or bias; accurately represents organisations events or activities
the transactions, assets, obligations & equity generated in the system exist
only those transactions & reports that are authorised by the firm should be processed
does not omit important aspects of the events or activities it measures
provided in time for decision-makers to make decisions
transactions, assets, liabilities, & equities processed in the system are measured accurately
presented in a useful & intelligible format
two independent, knowledgeable people can produce the same information