In the following problem you will be applying what you have learned to a service organization...

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In the following problem you will be applying what you have learned to a service organization - a hospital, an organization with which you each should have some knowledge and thus some general understanding of the mission and strategic goals of the organization. Keep in mind that while most hospitals are not-for-profit entities, they would still have "financial" goals of some sort and often similar to a for-profit entity. Being a non-profit entity does not mean you can't make a profit it means that profitability is not your primary goal. Primary goals can vary but improving patient care, lowering mortality rates, meeting costs, etc. are typical obvious goals of a hospital. Note: The information needed for this problem was not contained in the textbook and is only in the lecture notes and was only discussed briefly. However, understanding of this topic helps you to understand the importance of a Management Control System. You should be able to rely solely on the definitions below and with some thought, apply those definitions to the assignment. In the lecture notes I mentioned there are three types of controls that will be implemented through the MCS to help guide decision making so that the goals of the worker (manager/employee) align with the goals of the company (profitability/growth). Those three types of controls are: People Controls: Matching the right person with the right job/position Inherent nature of individuals to do the right thing Establishing a corporate culture; mission statements; policies and procedures on appropriate corporate behaviors such as statements defining what is sexual harassment in the workplace Action Controls: ● ● ● Mechanisms (rules, physical boundaries, etc.) that limit an employee's actions/behavior Mechanisms (rules, physical boundaries, etc.) that force a certain (desired) behavior to occur Results Controls: Mechanisms (rewards, targets) put into place to direct employee's decisions. Note: Employee's actions to reach the target are typically not limited (do whatever is needed to meet the goal) except within the bounds of legal limits or other controls implemented by the organization Part A: Remembering that our organization for this assignment is a hospital, for each of the items listed in the "control mechanism" column, indicate the type of control by checking the appropriate column. Though some controls can be designed to meet two of the control categories, all of the controls listed here for our hospital will fit into one type of control category better than the other categories. Control Mechanism Patient's ID band must be checked and compared to Rx order before any medications are given Number of "in-network" referrals to specialists (in-network means within the same hospital system) All intravenous medication labels must be scanned and into patient care system and verified immediately prior to administering to patient Background checks are performed on all new hires Employee ID badge must be scanned prior to accessing electronic patient record Drug screening performed on each new hire. Job/position postings must contain hospital mission statement, detailed list of job duties, and detailed list of desired employee qualifications Number of scans (MRI, Xray, CAT, etc.) taken per certain diagnosis Drug screening performed periodically and randomly on each employee. Signature/approval of both Controller and Treasurer required on all payments made by hospital. Hiring process for all medical personal involves at least three rounds of interviews. Policy and Procedures Manual updated quarterly Number of days patient stays in the hospital Percentage of readmissions within 30 days of first visit People Action Results Hospital Mission Statement visible posted on each floor of hospital in a conspicuous location Keeping unused food thrown out at end of shift to less than 2% of amount produced by cafeteria during that shift Part B: Try to think of one more control in each of the three control categories that you think would be useful to add to the above list of controls for a hospital setting. Additional People Control: Additional Action Control: Additional Results Control: In the following problem you will be applying what you have learned to a service organization - a hospital, an organization with which you each should have some knowledge and thus some general understanding of the mission and strategic goals of the organization. Keep in mind that while most hospitals are not-for-profit entities, they would still have "financial" goals of some sort and often similar to a for-profit entity. Being a non-profit entity does not mean you can't make a profit it means that profitability is not your primary goal. Primary goals can vary but improving patient care, lowering mortality rates, meeting costs, etc. are typical obvious goals of a hospital. Note: The information needed for this problem was not contained in the textbook and is only in the lecture notes and was only discussed briefly. However, understanding of this topic helps you to understand the importance of a Management Control System. You should be able to rely solely on the definitions below and with some thought, apply those definitions to the assignment. In the lecture notes I mentioned there are three types of controls that will be implemented through the MCS to help guide decision making so that the goals of the worker (manager/employee) align with the goals of the company (profitability/growth). Those three types of controls are: People Controls: Matching the right person with the right job/position Inherent nature of individuals to do the right thing Establishing a corporate culture; mission statements; policies and procedures on appropriate corporate behaviors such as statements defining what is sexual harassment in the workplace Action Controls: ● ● ● Mechanisms (rules, physical boundaries, etc.) that limit an employee's actions/behavior Mechanisms (rules, physical boundaries, etc.) that force a certain (desired) behavior to occur Results Controls: Mechanisms (rewards, targets) put into place to direct employee's decisions. Note: Employee's actions to reach the target are typically not limited (do whatever is needed to meet the goal) except within the bounds of legal limits or other controls implemented by the organization Part A: Remembering that our organization for this assignment is a hospital, for each of the items listed in the "control mechanism" column, indicate the type of control by checking the appropriate column. Though some controls can be designed to meet two of the control categories, all of the controls listed here for our hospital will fit into one type of control category better than the other categories. Control Mechanism Patient's ID band must be checked and compared to Rx order before any medications are given Number of "in-network" referrals to specialists (in-network means within the same hospital system) All intravenous medication labels must be scanned and into patient care system and verified immediately prior to administering to patient Background checks are performed on all new hires Employee ID badge must be scanned prior to accessing electronic patient record Drug screening performed on each new hire. Job/position postings must contain hospital mission statement, detailed list of job duties, and detailed list of desired employee qualifications Number of scans (MRI, Xray, CAT, etc.) taken per certain diagnosis Drug screening performed periodically and randomly on each employee. Signature/approval of both Controller and Treasurer required on all payments made by hospital. Hiring process for all medical personal involves at least three rounds of interviews. Policy and Procedures Manual updated quarterly Number of days patient stays in the hospital Percentage of readmissions within 30 days of first visit People Action Results Hospital Mission Statement visible posted on each floor of hospital in a conspicuous location Keeping unused food thrown out at end of shift to less than 2% of amount produced by cafeteria during that shift Part B: Try to think of one more control in each of the three control categories that you think would be useful to add to the above list of controls for a hospital setting. Additional People Control: Additional Action Control: Additional Results Control:

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This exercise involves classifying various control mechanisms within a hospital setting into three categories People Action and Results controls as de... View the full answer