McCumber Company employs a computer-based data processing system for maintaining all company records. The present system was developed in stages over the last five years and has been fully operational for the last 24 months. When the system was being designed, all department heads were asked to specify the types of information and reports they would need for planning and controlling operations. The Systems Department attempted to meet the specifications of each department head. Company management specified that certain other reports be prepared for department heads. During the five years of systems development and operations, there have been changes in the department head positions due to attrition and promotions. New department heads have often requested additional reports according to their specifications; the Systems Department has complied with all these requests. Consequently, the data processing system generates a large quantity of reports each period. Occasionally a report has been discontinued at the request of a department head, but only if it was not a standard report required by executive management.
Company management became concerned about the quality of information being produced by the system, and the Internal Audit Department was asked to evaluate the effectiveness of these reports. The audit staff noted the following reactions to this information overload:
(a) Many department heads would not act on certain reports during periods of peak activity. The department head would let these reports accumulate with the hope of catching up during a subsequent lull.
(b) Some department heads had so many reports that they did not act at all on the information or made incorrect decisions because of misuse of the information.
(c) Frequently, action required by the nature of the report data was not taken until the department head was reminded by someone who needed the decision. These department heads did not appear to have developed a priority system for acting on the information produced by the data processing system.
(d) Department heads often would develop the information they needed from alternative, independent sources, rather than use the reports generated by the data processing system. This was often easier than trying to search among the report for the needed data.
Required:
(1) Explain whether each of the observed reactions is a functional or dysfunctional behavioral response.
(2) Recommend procedures that the company could employ to eliminate any dysfunctional behavior and to prevent its recurrence.