Part 1 Should be at least 2 references that are based in the United States and they should be websites. The total amount of words should be 750-1000. Use in text citations.

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 face 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 current 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 current 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 submitting their proposal to the University’s Board of Trustees or does she want to reserve the right to make modifications? Explain.
5. Why did the president appoint a key assistant as secretary of the task force?

Part 2(a) Respond with 200-500 words to the discussion topic. Please use at least two references that are based in the United States and are websites. Also, please use in text citations. Please elaborate what was already stated or add to the discussion.

Decision management and decision control should be separated because when an employee is given both then it could be the cause of dysfunctional behavior (Brickley et al., 2021). For example, if I was a manager of a jewelry store and making pricing decisions and no one was monitoring that, then I could sell jewelry to my friends for a very cheap price. Correctly separated would be shareholders letting the board of directors make the decisions that might profit the shareholders. Shareholders are residual claimants which means if they make decisions, it might be to benefit themselves. So, to take that problem out, they let the board of directors make the decisions (Savory, 2021). Where it resides with the same individual correctly would be small businesses where the owner is the one who has decision management and decision control. Plus, the owners are going to know best the resources and contracts that are needed for their business. If they know the ins and outs of the business, then it might better to handle items themselves than to delegate.

Brickley, J.A., Smith, C.W. & Zimmerman, J.L. (2021). Managerial Economics and Organizational Architecture. 7th Ed. McGraw-Hill Education

Savory, L. (2021, November 18). Decision making within a company. Tiger Law. Retrieved April 18, 2022, from https://tiger-law.com/decision-making-within-a-company/

Part 2(b) Respond with 200-500 words to the discussion topic. Please use at least two references that are based in the United States and are websites. Also, please use in text citations. Please elaborate what was already stated or add to the discussion.

With decision management and decision control the best thing is to keep them separate. One of the most important things as stated in our textbook is the principal of separation of decision management and control helps explain the widespread use of hierarchies within organizations and with hierarchies, decision manage is formally separated from decision control (Brickley, et al., 2021).

The way that I think about this is a person owning their own business and maybe being their own employee or having a few people under them. But because they don’t have a huge corporation and there are no hierarchies the owner will have the fill decision management and control. Because they can set prices however they want, pay themselves however and manage the company however, etc. But when we talk about a large corporation for example for me, I work at a large company there are hierarchies within the organization and everyone playing their own part. I as an employee do not have decision management nor control but neither does the CEO. Management hierarchies and incentive structures that encourage mutual monitoring are ways of monitoring decision making. Hierarchies create competition within organizations (Maloney , 2001).At each level, the decision management is controlled by the next highest level. The board of directors is the highest forum for monitoring decision management. The board of directors is the ultimate form of decision control (Maloney , 2001).

References:

Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2021). Managerial Economics and organizational architecture. McGraw-Hill.

Maloney . (2001, February 7). Corporate Management – Clemson University. Retrieved April 22, 2022, from http://maloney.people.clemson.edu/306/9.pdf