Sub-systems in accounting

Katz and Kahn in The Social Psychology of Organizations (1966) cite five generic types of sub-system to meet an organization’s functional needs:

1. The production or technical sub-system, concerned with the work done on the throughput

2. The supportive sub-system, concerned with obtaining inputs and disposing of outputs.

3. The maintenance sub-system, which ensures conformance of personnel to their roles through selection, and through rewards and sanctions.

4. The adaptive sub-system, ensuring responsiveness to environmental variations.

5. The managerial sub-system, which directs, coordinates and controls other sub-systems and activities through various regulatory mechanisms.

Required

Identify these sub-systems in accounting terms and give an example of how the accounting information system obtains and supplies information for each of these sub-systems.

Solution:

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