Instructions:
Please, read the case below and respond to the situation/question using concepts from Chapter 12 (See screenshots below). This assignment should be around 500 words including only the answers. I have added Chapter 12 to use for text citation and concepts. Please, one or two citations from chapter 12.
Professor’s instructions: Prior to your analysis, you should provide a
ief summary of the case, a paragraph or so in your own words with in text citations. You then can choose to answer the questions in paragraph form or type the question and then answer it. Either way is fine, but I do require that your answers have in text citations to support what you are saying. Some of the questions are your opinion, but you should also support that with concepts from the text. Format should be APA.
Citation will be:
Brickley, J., Smith, C., & Zimmerman, J. (2016). Managerial economics and organizational architecture (6th ed.). New York: McGraw-Hill Education.
ANALYZING MANAGERIAL DECISIONS: Medford University
Medford University is a research university with about 10,000 students. It has a good liberal arts undergraduate program, a top-rated medical school, and a fine law school. It employs about 12,000 people. A majority of these employees work at the university hospital. Lately, the university has faced significant financial pressures. It is in intense competition for quality students with other colleges. Recent financial donations have been small. The hospital is under intense pressure to reduce costs because of changing health care regulation and insurance coverage.
The university cu
ently spends about $100 million annually on fringe benefits (health insurance, retirement plans, and so on). It also faces large future payments of promised medical benefits to cu
ent and future retirees. The president of the university, Hiromi Kobayashi, has appointed a task force to design a new fringe benefit package. The task force consists of faculty and staff from departments throughout the university. The task force has been asked to consider the university’s tenuous financial condition. President Kobayashi wants to reduce expenditures on fringe benefits (while maintaining the quality of the faculty and staff). The president has appointed the chief administrator of the hospital as the chair of the task force. The president also has appointed one of her key assistants, the vice provost, to serve as secretary of the task force (to take minutes and coordinate meeting schedules).
1. Why did President Kobayashi appoint a task force to consider the issue of fringe benefits? She could have asked the university’s human resources department to design a plan.
2. Should the president anticipate that all members of the task force will strive to cut university expenses? What actions can the president take to increase the likelihood that the task force members have this objective as a major priority?
3. Why did the president appoint the administrator of the hospital as the chair of the task force? The chair, in turn, has delegated much of the work to subcommittees (a health insurance committee, a retirement committee, and so on). What advice would you offer the chair in appointing subcommittee chairs? Explain.
4. Does the president want to commit to accepting the committee report or does she want to re- serve the right to make modifications? Explain.
5. Why did the president appoint a key assistant as secretary of the task force?
Chapter 12: