CHAPTER 1 = =
=
ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
= = = = =
=
SUGGESTED=ANSWERS=TO=DISCUSSION=QUESTIONS=
=
1.1=
The=value=of=information=is=the=difference=between=the=benefits=realized=from=using=that=in
formation=and=the=costs=of=producing=it.=Would=you,=or=any=organization,=ever=produce=inform
ation=if=its=expected=costs=exceeded=its=benefits?=If=so,=provide=some=examples.=If=not,=why=not?
=
=
=
Most=organizations=produce=information=only=if=its=value=exceeds=its=cost.=However,=there=are=t
wo=situations=where=information=may=be=produced=even=if=its=cost=exceeds=its=value.=
=
a. It=is=often=difficult=to=estimate=accurately=the=value=of=information=and=the=cost=of=producing=it
.=Therefore,=organizations=may=produce=information=that=they=expect=will=produce=benefits=in=
excess=of=its=costs,=only=to=be=disappointed=after=the=fact.=
b. Production=of=the=information=may=be=mandated=by=either=a=government=agency=or=a=private=o
rganization.=Examples=include=the=tax=reports=required=by=the=IRS=and=disclosure=requirement
s=for=financial=reporting.=
=
1.2 Can=the=characteristics=of=useful=information=listed=in=Table=1-
1=be=met=simultaneously?==Or=does=achieving=one=mean=sacrificing=another?=
=
=
Several=of=the=criteria=in=Table=1.1=can=be=met=simultaneously.=For=example,=more=timely=inform
ation=is=also=likely=to=be=more=relevant.=Verifiable=information=is=likely=to=be=more=reliable.=
=
=
However,=achieving=one=objective=may=require=sacrificing=another.=For=example,=ensuring=that=i
nformation=is=more=complete=may=reduce=its=timeliness.=Similarly,=increased=verifiability=and=reliabi
lity=may=reduce=its=timeliness.=
=
= The=decision=maker=must=decide=which=trade-offs=are=warranted=in=a=given=situation.=
=
1-1=
©2018=Pearson=Education,=Inc.=
,Ch.=1:=Accounting=Information=Systems:=An=Overview=
1.3 You=and=a=few=of=your=classmates=decided=to=become=entrepreneurs.=You=came=up=with=a=gre
at=idea=for=a=new=mobile=phone=application=that=you=think=will=make=lots=of=money.=Your=busi
ness=plan=won=second=place=in=a=local=competition,=and=you=are=using=the=$10,000=prize=to=sup
port=yourselves=as=you=start=your=company.=
=
a. Identify=the=key=decisions=you=need=to=make=to=be=successful=entrepreneurs,=the=infor
mation=you=need=to=make=them,=and=the=business=processes=you=will=need==to=engage=i
n.=
b. Your=company=will=need=to=exchange=information=with=various=external=parties.=Ident
ify=the=external=parties,=and=specify=the=information=received=from=and=sent=to=each=of
=them.=
=
= The=author=turns=this=question=into=an=in-
class=group=activity.=Students=are=divided=up=in=groups,=told=to=close=their=books,=and=given=15=minu
tes=to:=
=
a. Think=through=the=business=processes,=key=decisions,=and=information=needs=issues=in=their=
group.=
b. Identify=the=external=users=of=information=and=specify=the=information=received=from=and=sent=
to=each=of=them.=
=
One=group=is=selected=to=present=their=answers=to=the=class.=The=other=groups=are=told=to=challenge=th
e=group’s=answers,=provide=alternative=answers,=and=chip=in=with=additional=answers=not=provided=by
=the=selected=group.=Since=the=group=that=presents=is=not=selected=until=after=the=time=has=expired,=stu
dents=are=motivated=to=do=a=good=job,=as=they=will=be=presenting=to=their=peers.=
=
=
The=value=of=this=activity=is=not=in=arriving=at=a=“right=answer”=as=there=are=many=right=answers=
=and=student=answers=will=vary.=Instead,=it=is=in=thinking=through=the=issues=presented=in=Table=1-
2=(business=processes,=key=decisions,=and=information=needs)=and=Figure=1-
1=(interactions=with=external=parties).=Student=answers=should=contain=many=of=the=things=in=Table=
1-2=and=Figure=1-
1=as=well=as=others=not=shown,=as=a=retail=operation=differs=from=an=application=development=enterpr
ise.=
=
= The=author=concludes=the=exercise=by=having=the=students=turn=to=Table=1-2=and=Figure=1-
1=while==he=emphasizes=the=need=for=owners,=managers,=and=employees=of=organizations=to=identify=t
he=information=needed=to=make=key=decisions=in=the=company’s=business=processes=and=the=key=infor
mation=interchanges=with=external=parties.=All=of=the=data=needed=to=produce=this=information=must=b
e=entered=into=the=AIS,=processed,=stored,=protected,=and=made=available=to=the=appropriate=users.=
=
=
While=this=active=learning=activity=takes=more=time=than=a=lecture=does,=it=drives=the=point=home=
much=better=than=a=lecture=would.=It=also=keeps=the=students=more=engaged=in=the=material.=
=
1.4=
How=do=an=organization’s=business=processes=and=lines=of=business=affect=the=design=of=its=AIS?=Gi
ve=several=examples=of=how=differences=among=organizations=are=reflected=in=their=AIS.=
=
= An=organization’s=AIS=must=reflect=its=business=processes=and=its=line=of=business.=For=example:=
=
• Manufacturing=companies=will=need=a=set=of=procedures=and=documents=for=the=production=cycle
;=non-manufacturing=companies=do=not.=
• Government=agencies=need=procedures=to=track=separately=all=inflows=and=outflows=from=variou
s=funds,=to=ensure=that=legal=requirements=about=the=use=of=specific=funds=are=followed.=Financial
=institutions=do=not=need=extensive=inventory=control=systems.=
1-2=
©2018=Pearson=Education,=Inc.=
, Accounting=Information=Systems=
• Passenger=service=companies=(e.g.,=airlines,=bus,=and=trains)=generally=receive=payments=in=adva
nce=of=providing=services.=Therefore,=extensive=billing=and=accounts=receivable=procedures=are=n
ot=needed;=instead,=they=must=develop=procedures=to=account=for=prepaid=revenue.=
• Construction=firms=typically=receive=payments=at=regular=intervals,=based=on=the=percentage=of=
work=completed.=Thus,=their=revenue=cycles=must=be=designed=to=track=carefully=all=work=perfor
med=and=the=amount=of=work=remaining=to=be=done.=
• Service=companies=(e.g.,=public=accounting=and=law=firms)=do=not=sell=physical=goods=and,=there
fore,=do=not=need=inventory=control=systems.=They=must=develop=and=maintain=detailed=records=o
f=the=work=performed=for=each=customer=to=provide=backup=for=the=amounts=billed.=Tracking=indi
vidual=employee=time=is=especially=important=for=these=firms=because=labor=is==the=major=cost=co
mponent.=
=
1.5 Figure=1-
4=shows=that=organizational=culture=and=the=design=of=an=AIS=influence=one=another.=What=doe
s=this=imply=about=the=degree=to=which=an=innovative=system=developed=by=one=company=can=b
e=transferred=to=another=company?=
=
=
Since=people=are=one=of=the=basic=components=of=any=system,=it=will=always=be=difficult=to=transf
er=successfully=a=specific=information=systems=design=intact=to=another=organization.=Considering=in=
advance=how=aspects=of=the=new=organizational=culture=are=likely=to=affect=acceptance=of=the=system=
can=increase=the=chances=for=successful=transfer.=Doing=so=may=enable=the=organization=to=take=steps=
to=mitigate=likely=causes=of=resistance.=The=design=of=an=AIS,=however,=itself=can=influence=and=chan
ge=an=organization’s=culture=and=philosophy.=Therefore,=with=adequate=top=management=support,=im
plementation=of=a=new=AIS=can=be=used=as=a=vehicle=to=change=an=organization.=The=reciprocal=effect
s=of=technology=and=organizational=culture=on=one=another,=however,=mean=that=it=is=unrealistic=to=ex
pect=that=the=introduction=of=a=new=AIS=will=produce=the=same=results=observed=in=another=organizati
on.=
=
1.6 Figure=1-
4=shows=that=developments=in=IT=affect=both=an=organization’s=strategy=and=the=design=of=its=A
IS.=How=can=a=company=determine=whether=it=is=spending=too=much,=too=little,==or=just=enough=
on=IT?=
=
There=is=no=easy=answer=to=this=question.=Although=a=company=can=try=to=identify=the=benefits=of=a=n
ew=IT=initiative=and=compare=those=benefits=to=the=associated=costs,=this=is=often=easier=said=than=don
e.=Usually,=it=is=difficult=to=measure=precisely=the=benefits=of=new=uses=of=IT.=Nevertheless,=compani
es=should=gather=as=much=data=as=possible=about=changes=in=market=share,=sales=trends,=cost=reductio
ns,=and=other=results=that=can=plausibly=be=associated=with=an=IT=initiative=and=that=were=predicted=in
=the=planning=process.=
=
1.7 Apply=the=value=chain=concept=to=S&S.=Explain=how=it=would=perform=the=various=primary=an
d=support=activities.=
=
= The=value=chain=classifies=business=activities=into=two=categories:=primary=and=support.==
=
= The=five=primary=activities=at=S&S:=
a. Inbound=logistics=includes=all=processes=involved=in=ordering,=receiving,=and=temporarily=stor
ing=merchandise=that=is=going=to=be=sold=to=S&S=customers.=
b. S&S=does=not=manufacture=any=goods,=thus=its=operations=activities=consists=of=displaying=me
rchandise=for=sale=and=protecting=it=from=theft.=
c. Outbound=logistics=includes=delivering=the=products=to=the=customer.=
d. Sales=&=marketing=includes=ringing=up=and=processing=all=sales=transactions=and=advertising=
products=to=increase=sales.=
1-3=
©2018=Pearson=Education,=Inc.=
, Ch.=1:=Accounting=Information=Systems:=An=Overview=
e. Service=includes=repairs,=periodic=maintenance,=and=all=other=post-sales=services=offered=to=
customers.=
=
= The=four=support=activities=at=S&S:=
a. Firm=infrastructure=includes=the=accounting,=finance,=legal,=and=general=administration=funct
ions=required=to=start=and=maintain=a=business.=
b. Human=resource=management=includes=recruiting,=hiring,=training,=evaluating,=compensatin
g,=and=dismissing=employees.=
c. Technology=includes=all=investments=in=computer=technology=and=various=input/output=device
s,=such=as=point-of-sale=scanners.=It=also=includes=all=support=activities=for=the=
technology.=
d. Purchasing=includes=all=processes=involved=in=identifying=and=selecting=vendors=to=supply=go
ods=and=negotiating=the=best=prices,=terms,=and=support=from=those=suppliers.=
= =
1.8=
IT=enables=organizations=to=easily=collect=large=amounts=of=information=about=employees.=
Discuss=the=following=issues:=
=
These=questions=involve=traditional=economic=cost/benefit=issues=and=less=well-
defined=ethical=issues.=
=
a. To=what=extent=should=management=monitor=employees’=e-mail?=
=
Generally,=the=courts=have=held=that=organizations=have=the=right=to=monitor=employees’=email.=S
uch=monitoring=can=have=disastrous=effects=on=employee=morale,=however.=On=the=other=hand,=it=
might=provide=legitimate=information=about=group=members’=individual=contributions=and=produ
ctivity.=
=
b. To=what=extent=should=management=monitor=which=websites=employees=visit?=
=
Students=are=likely=to=argue=whether=or=not=this=should=be=done.=One=potential=benefit=that=could
=be=argued=is=the=likelihood=that=if=employees=are=aware=that=they=will=be=monitored=they=will=be
=less=prone=to=surf=the=Web=for=non-work-related=uses.=
=
c. To=what=extent=should=management=monitor=employee=performance=by,=for=example,=usin
g=software=to=track=keystrokes=per=hour=or=some=other=unit=of=time?=If=such=information=is=
collected,=how=should=it=be=used?=
=
Arguments=pro=and=con=can=be=generated=about=the=effects=of=such=monitoring=on=performance=a
nd=on=morale.=Clearly,=the=specifics=of=any=incentive=schemes=tied=to=such=metrics=are=important.
=
=
d. Should=companies=use=software=to=electronically=“shred”=all=traces=of=e-mail?=
=
Arguments=can=be=raised=on=both=sides=of=this=issue.=Try=to=get=students=to=go=beyond=the=legal=r
amifications=of=recent=news=stories=and=to=explore=the=ethical=implications=of=destroying=differe
nt=kinds=of=email.=
=
e. Under=what=circumstances=and=to=whom=is=it=appropriate=for=a=company=to=distribute=info
rmation=it=collects=about=the=people=who=visit=its=website?=
=
Direct=students=to=the=guidelines=followed=by=organizations=that=certify=how=various=websites=us
e=the=information=they=collect.=Students=are=likely=to=make=the=argument=that=personal=informati
on=is=inherently=private=and=sacrosanct.=To=challenge=that=view,=ask=them=about=the=legitimacy=o
f=developing=and=maintaining=a=reputation.=Doesn’t=that=involve=the=divulgence=and=sharing=of=p
ersonal=information=among=strangers?=Ask=the=class=if=it=is=feasible=(or=undesirable)=to=totally=pr
event=or=prohibit=such=sharing=of=information.=
=
1-4=
©2018=Pearson=Education,=Inc.=
=
ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
= = = = =
=
SUGGESTED=ANSWERS=TO=DISCUSSION=QUESTIONS=
=
1.1=
The=value=of=information=is=the=difference=between=the=benefits=realized=from=using=that=in
formation=and=the=costs=of=producing=it.=Would=you,=or=any=organization,=ever=produce=inform
ation=if=its=expected=costs=exceeded=its=benefits?=If=so,=provide=some=examples.=If=not,=why=not?
=
=
=
Most=organizations=produce=information=only=if=its=value=exceeds=its=cost.=However,=there=are=t
wo=situations=where=information=may=be=produced=even=if=its=cost=exceeds=its=value.=
=
a. It=is=often=difficult=to=estimate=accurately=the=value=of=information=and=the=cost=of=producing=it
.=Therefore,=organizations=may=produce=information=that=they=expect=will=produce=benefits=in=
excess=of=its=costs,=only=to=be=disappointed=after=the=fact.=
b. Production=of=the=information=may=be=mandated=by=either=a=government=agency=or=a=private=o
rganization.=Examples=include=the=tax=reports=required=by=the=IRS=and=disclosure=requirement
s=for=financial=reporting.=
=
1.2 Can=the=characteristics=of=useful=information=listed=in=Table=1-
1=be=met=simultaneously?==Or=does=achieving=one=mean=sacrificing=another?=
=
=
Several=of=the=criteria=in=Table=1.1=can=be=met=simultaneously.=For=example,=more=timely=inform
ation=is=also=likely=to=be=more=relevant.=Verifiable=information=is=likely=to=be=more=reliable.=
=
=
However,=achieving=one=objective=may=require=sacrificing=another.=For=example,=ensuring=that=i
nformation=is=more=complete=may=reduce=its=timeliness.=Similarly,=increased=verifiability=and=reliabi
lity=may=reduce=its=timeliness.=
=
= The=decision=maker=must=decide=which=trade-offs=are=warranted=in=a=given=situation.=
=
1-1=
©2018=Pearson=Education,=Inc.=
,Ch.=1:=Accounting=Information=Systems:=An=Overview=
1.3 You=and=a=few=of=your=classmates=decided=to=become=entrepreneurs.=You=came=up=with=a=gre
at=idea=for=a=new=mobile=phone=application=that=you=think=will=make=lots=of=money.=Your=busi
ness=plan=won=second=place=in=a=local=competition,=and=you=are=using=the=$10,000=prize=to=sup
port=yourselves=as=you=start=your=company.=
=
a. Identify=the=key=decisions=you=need=to=make=to=be=successful=entrepreneurs,=the=infor
mation=you=need=to=make=them,=and=the=business=processes=you=will=need==to=engage=i
n.=
b. Your=company=will=need=to=exchange=information=with=various=external=parties.=Ident
ify=the=external=parties,=and=specify=the=information=received=from=and=sent=to=each=of
=them.=
=
= The=author=turns=this=question=into=an=in-
class=group=activity.=Students=are=divided=up=in=groups,=told=to=close=their=books,=and=given=15=minu
tes=to:=
=
a. Think=through=the=business=processes,=key=decisions,=and=information=needs=issues=in=their=
group.=
b. Identify=the=external=users=of=information=and=specify=the=information=received=from=and=sent=
to=each=of=them.=
=
One=group=is=selected=to=present=their=answers=to=the=class.=The=other=groups=are=told=to=challenge=th
e=group’s=answers,=provide=alternative=answers,=and=chip=in=with=additional=answers=not=provided=by
=the=selected=group.=Since=the=group=that=presents=is=not=selected=until=after=the=time=has=expired,=stu
dents=are=motivated=to=do=a=good=job,=as=they=will=be=presenting=to=their=peers.=
=
=
The=value=of=this=activity=is=not=in=arriving=at=a=“right=answer”=as=there=are=many=right=answers=
=and=student=answers=will=vary.=Instead,=it=is=in=thinking=through=the=issues=presented=in=Table=1-
2=(business=processes,=key=decisions,=and=information=needs)=and=Figure=1-
1=(interactions=with=external=parties).=Student=answers=should=contain=many=of=the=things=in=Table=
1-2=and=Figure=1-
1=as=well=as=others=not=shown,=as=a=retail=operation=differs=from=an=application=development=enterpr
ise.=
=
= The=author=concludes=the=exercise=by=having=the=students=turn=to=Table=1-2=and=Figure=1-
1=while==he=emphasizes=the=need=for=owners,=managers,=and=employees=of=organizations=to=identify=t
he=information=needed=to=make=key=decisions=in=the=company’s=business=processes=and=the=key=infor
mation=interchanges=with=external=parties.=All=of=the=data=needed=to=produce=this=information=must=b
e=entered=into=the=AIS,=processed,=stored,=protected,=and=made=available=to=the=appropriate=users.=
=
=
While=this=active=learning=activity=takes=more=time=than=a=lecture=does,=it=drives=the=point=home=
much=better=than=a=lecture=would.=It=also=keeps=the=students=more=engaged=in=the=material.=
=
1.4=
How=do=an=organization’s=business=processes=and=lines=of=business=affect=the=design=of=its=AIS?=Gi
ve=several=examples=of=how=differences=among=organizations=are=reflected=in=their=AIS.=
=
= An=organization’s=AIS=must=reflect=its=business=processes=and=its=line=of=business.=For=example:=
=
• Manufacturing=companies=will=need=a=set=of=procedures=and=documents=for=the=production=cycle
;=non-manufacturing=companies=do=not.=
• Government=agencies=need=procedures=to=track=separately=all=inflows=and=outflows=from=variou
s=funds,=to=ensure=that=legal=requirements=about=the=use=of=specific=funds=are=followed.=Financial
=institutions=do=not=need=extensive=inventory=control=systems.=
1-2=
©2018=Pearson=Education,=Inc.=
, Accounting=Information=Systems=
• Passenger=service=companies=(e.g.,=airlines,=bus,=and=trains)=generally=receive=payments=in=adva
nce=of=providing=services.=Therefore,=extensive=billing=and=accounts=receivable=procedures=are=n
ot=needed;=instead,=they=must=develop=procedures=to=account=for=prepaid=revenue.=
• Construction=firms=typically=receive=payments=at=regular=intervals,=based=on=the=percentage=of=
work=completed.=Thus,=their=revenue=cycles=must=be=designed=to=track=carefully=all=work=perfor
med=and=the=amount=of=work=remaining=to=be=done.=
• Service=companies=(e.g.,=public=accounting=and=law=firms)=do=not=sell=physical=goods=and,=there
fore,=do=not=need=inventory=control=systems.=They=must=develop=and=maintain=detailed=records=o
f=the=work=performed=for=each=customer=to=provide=backup=for=the=amounts=billed.=Tracking=indi
vidual=employee=time=is=especially=important=for=these=firms=because=labor=is==the=major=cost=co
mponent.=
=
1.5 Figure=1-
4=shows=that=organizational=culture=and=the=design=of=an=AIS=influence=one=another.=What=doe
s=this=imply=about=the=degree=to=which=an=innovative=system=developed=by=one=company=can=b
e=transferred=to=another=company?=
=
=
Since=people=are=one=of=the=basic=components=of=any=system,=it=will=always=be=difficult=to=transf
er=successfully=a=specific=information=systems=design=intact=to=another=organization.=Considering=in=
advance=how=aspects=of=the=new=organizational=culture=are=likely=to=affect=acceptance=of=the=system=
can=increase=the=chances=for=successful=transfer.=Doing=so=may=enable=the=organization=to=take=steps=
to=mitigate=likely=causes=of=resistance.=The=design=of=an=AIS,=however,=itself=can=influence=and=chan
ge=an=organization’s=culture=and=philosophy.=Therefore,=with=adequate=top=management=support,=im
plementation=of=a=new=AIS=can=be=used=as=a=vehicle=to=change=an=organization.=The=reciprocal=effect
s=of=technology=and=organizational=culture=on=one=another,=however,=mean=that=it=is=unrealistic=to=ex
pect=that=the=introduction=of=a=new=AIS=will=produce=the=same=results=observed=in=another=organizati
on.=
=
1.6 Figure=1-
4=shows=that=developments=in=IT=affect=both=an=organization’s=strategy=and=the=design=of=its=A
IS.=How=can=a=company=determine=whether=it=is=spending=too=much,=too=little,==or=just=enough=
on=IT?=
=
There=is=no=easy=answer=to=this=question.=Although=a=company=can=try=to=identify=the=benefits=of=a=n
ew=IT=initiative=and=compare=those=benefits=to=the=associated=costs,=this=is=often=easier=said=than=don
e.=Usually,=it=is=difficult=to=measure=precisely=the=benefits=of=new=uses=of=IT.=Nevertheless,=compani
es=should=gather=as=much=data=as=possible=about=changes=in=market=share,=sales=trends,=cost=reductio
ns,=and=other=results=that=can=plausibly=be=associated=with=an=IT=initiative=and=that=were=predicted=in
=the=planning=process.=
=
1.7 Apply=the=value=chain=concept=to=S&S.=Explain=how=it=would=perform=the=various=primary=an
d=support=activities.=
=
= The=value=chain=classifies=business=activities=into=two=categories:=primary=and=support.==
=
= The=five=primary=activities=at=S&S:=
a. Inbound=logistics=includes=all=processes=involved=in=ordering,=receiving,=and=temporarily=stor
ing=merchandise=that=is=going=to=be=sold=to=S&S=customers.=
b. S&S=does=not=manufacture=any=goods,=thus=its=operations=activities=consists=of=displaying=me
rchandise=for=sale=and=protecting=it=from=theft.=
c. Outbound=logistics=includes=delivering=the=products=to=the=customer.=
d. Sales=&=marketing=includes=ringing=up=and=processing=all=sales=transactions=and=advertising=
products=to=increase=sales.=
1-3=
©2018=Pearson=Education,=Inc.=
, Ch.=1:=Accounting=Information=Systems:=An=Overview=
e. Service=includes=repairs,=periodic=maintenance,=and=all=other=post-sales=services=offered=to=
customers.=
=
= The=four=support=activities=at=S&S:=
a. Firm=infrastructure=includes=the=accounting,=finance,=legal,=and=general=administration=funct
ions=required=to=start=and=maintain=a=business.=
b. Human=resource=management=includes=recruiting,=hiring,=training,=evaluating,=compensatin
g,=and=dismissing=employees.=
c. Technology=includes=all=investments=in=computer=technology=and=various=input/output=device
s,=such=as=point-of-sale=scanners.=It=also=includes=all=support=activities=for=the=
technology.=
d. Purchasing=includes=all=processes=involved=in=identifying=and=selecting=vendors=to=supply=go
ods=and=negotiating=the=best=prices,=terms,=and=support=from=those=suppliers.=
= =
1.8=
IT=enables=organizations=to=easily=collect=large=amounts=of=information=about=employees.=
Discuss=the=following=issues:=
=
These=questions=involve=traditional=economic=cost/benefit=issues=and=less=well-
defined=ethical=issues.=
=
a. To=what=extent=should=management=monitor=employees’=e-mail?=
=
Generally,=the=courts=have=held=that=organizations=have=the=right=to=monitor=employees’=email.=S
uch=monitoring=can=have=disastrous=effects=on=employee=morale,=however.=On=the=other=hand,=it=
might=provide=legitimate=information=about=group=members’=individual=contributions=and=produ
ctivity.=
=
b. To=what=extent=should=management=monitor=which=websites=employees=visit?=
=
Students=are=likely=to=argue=whether=or=not=this=should=be=done.=One=potential=benefit=that=could
=be=argued=is=the=likelihood=that=if=employees=are=aware=that=they=will=be=monitored=they=will=be
=less=prone=to=surf=the=Web=for=non-work-related=uses.=
=
c. To=what=extent=should=management=monitor=employee=performance=by,=for=example,=usin
g=software=to=track=keystrokes=per=hour=or=some=other=unit=of=time?=If=such=information=is=
collected,=how=should=it=be=used?=
=
Arguments=pro=and=con=can=be=generated=about=the=effects=of=such=monitoring=on=performance=a
nd=on=morale.=Clearly,=the=specifics=of=any=incentive=schemes=tied=to=such=metrics=are=important.
=
=
d. Should=companies=use=software=to=electronically=“shred”=all=traces=of=e-mail?=
=
Arguments=can=be=raised=on=both=sides=of=this=issue.=Try=to=get=students=to=go=beyond=the=legal=r
amifications=of=recent=news=stories=and=to=explore=the=ethical=implications=of=destroying=differe
nt=kinds=of=email.=
=
e. Under=what=circumstances=and=to=whom=is=it=appropriate=for=a=company=to=distribute=info
rmation=it=collects=about=the=people=who=visit=its=website?=
=
Direct=students=to=the=guidelines=followed=by=organizations=that=certify=how=various=websites=us
e=the=information=they=collect.=Students=are=likely=to=make=the=argument=that=personal=informati
on=is=inherently=private=and=sacrosanct.=To=challenge=that=view,=ask=them=about=the=legitimacy=o
f=developing=and=maintaining=a=reputation.=Doesn’t=that=involve=the=divulgence=and=sharing=of=p
ersonal=information=among=strangers?=Ask=the=class=if=it=is=feasible=(or=undesirable)=to=totally=pr
event=or=prohibit=such=sharing=of=information.=
=
1-4=
©2018=Pearson=Education,=Inc.=
