Question: At the claims - processing office for Allstate Insurance, 2 5 employees process 2 , 5 0 0 claims a day. The claims - processing

At the claims-processing office for Allstate Insurance, 25 employees process 2,500 claims a day. The claims-processing office for Blue Cross Insurance uses a state-of-the-art computer system, and its 15 employees process 3,000 claims a day.
1. Which office is more productive? Explain in a narrative, and numerically your selected answer.
2. At which office would you expect that employees are paid more? Why? In your answer, factor in both direct, and indirect costs
3. Suppose that half the claims processed by the employees at Blue Cross contain errors and all of the claims processed at Allstate are done correctly. Which office would you say is more productive? Why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!