In 1967, Russell Ackoff presented a classical analysis of misinformation in management ( Ackoff’s Management Misinformation Systems , Case 1-1, pg. 21 of the text). Now, you need to fast-forward to...

Case Study
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Case Study
1) It is obviously important for the management of any kind of a company to make
certain assumptions regarding the accounting principles and conventions. Without the
help of these assumptions, the company will not be able to maintain its records of
transactions and this will lead to a difficulty in the survival of the company. For this
eason, the management system has to make certain assumptions for the regular
workings of the company.
But not all the assumptions as made by the management are viable. At times these
assumptions can be improper and it may also lead to an adverse effect for the company in the
long run. The following are the five assumptions which are not justified as adopted by the
management system of the company:
 The critical and significant deficiency under which most of the managers and
directors of the company are not provided, with relevant information so that proper
decisions can be taken as per the needs and the mission of the company.
 The managers and the directors want the information as per his needs and all those
information which makes it possible for him to take proper decisions.
 If the managers and the directors are provided with the information as needed by him,
then it is very much viable that they will take up accurate and good decisions.
 Better communication between the managers and the directors will lead to a situation
of improved and proper performance of the organisation or the company.
 A manger of the company is not required to understand as to how his information and
the decisions are working in the organisation. His main motive is to know how the
information and the decisions are being used.
As mentioned above the foremost assumption which is harming the company and
the organisation is the fact that the managers and the decision makers of the company will
have to be equipped with proper information as per the needs. All the companies believe
that the information as provided by them to the decision makers is relevant and adequate
in order to take up certain decision. But generally, the information as provided by them is
of no use to the managers and the decision makers of the company. The managers are not
provided with ample information which may lead to in accurate decision making. The
thing which is to be observed in this particular case is the fact that the managers are not
provided with proper information, but they are provided with information which is very
much i
elevant in the process of decision making. Therefore, it is very much
ecommendable for the company to provide the managers with ample and with those
information as required by the managers.
For the second point, the...