For each module you will need to complete case study questions from your text Managerial Economics and Organizational Architecture. Read the scenario provided in the text and then answer the questions provided
• ” Chapter 2 “Analyzing Managerial Decisions: Interwest Healthcare Corp.”
If you can provide a complete, well-developed response in several paragraphs or a page that is acceptable (this means do not list answers in bullet points… you can separate the questions by number and in fact this does help me grade faster, but there should still be complete sentences). If it requires more than one page that is acceptable as well. Be aware that I will critique your written response not only on the technical part of your answer but also on the clarity and logical sequence of your response as well as grammar and spelling. I encourage and expect you to use textbook concepts as you attempt to explain in your own words the answers to the assignments. I will also be looking for word choice and sentence structure that is suitable for graduate level work.
ANALYZING MANAGERIAL DECISIONS: Interwest Healthcare Corp.
Interwest Healthcare is a nonprofit organization
that owns 10 hospitals located in three western states. Cynthia Manzoni is Interwest’s chief executive officer. Vijay Singh, Interwest’s chief financial officer, and the administrators of the 10 hospitals report to Manzoni.
Singh is deeply concerned because the hospital staffs are not being careful when entering data into the firm’s management information system. This data involves information on patient intake, treatment, and release. The information system is used to com- pile management reports such as those relating to the costs of various treatments. Also, the system is used to compile reports that are required by the federal government under various grant programs. Singh rea- sons that without good information, the management and government reports are less useful and potentially misleading. Moreover, the federal government periodically audits Interwest and might discontinue aid
if the reports are deemed inaccurate. Thus, Singh is worried about the managerial implications and the potential loss of federal funds.
Singh has convinced Manzoni that a problem exists. She also realizes the importance of an accurate system for both management planning and maintaining
federal aid. Six months ago, she invited the hospital administrators and staff members from the corporate financial office to a retreat at a resort. The purpose was to communicate to the hospital administrators the problems with the data entry and to stress the importance of doing a better job. The meeting was acrimonious. The hospital people accused Singh of being a bureaucrat who did not care about patient services. Singh accused the hospital staffs of not understanding the importance of accurate reporting.
By the end of the meeting, Manzoni thought that she had a commitment by the hospital administrators to increase the accuracy of data entry at their hospitals. However, six months later, Singh claims that the problem is as bad as ever.
Manzoni has hired you as a consultant to analyze the problem and to make recommendations that might improve the situation.
1. What are the potential sources of the problem?
2. What information would you want to analyze?
3. What actions might you recommend to increase the accuracy of the data entry?
4. How does your view of behavior affect how you might address this consulting assignment?