Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying sta
ID: 2393691 • Letter: D
Question
Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying standards to its claims payment operation. Claims payments is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The claims processing department manager, Henry, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the vice president (VP) of operations, who would arbitrate a final decision. Prior to the meeting, Dash wrote the following memo to the VP: As you know, Henry and I are scheduled to meet with you to discuss our disagreement with respect to the appropriate standards for the claims processing department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to 'pad' the budget with some slack I'm not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week. Discuss the professionalism of the memo to the vice president. Is this deemed appropriate, why or why not? Should this have been worked out between the two employees? Between Dash and Henry, which side are you on? Support your thoughts and reasoning. How does ethics play a role in this situation? What about the discrepancy in the number of claims (30 versus 36)? Is there a problem there also?Explanation / Answer
Time and motion study is a system created to determine the correct time it takes to complete a certain task. to set the one best way to perform a task and all with the objective to reduce wasteful time and subsequently money,maximising productivity.
This is implemented in industries sectors,involving redundant processes which is repetative and work flows.Insurance claims processing is an example of such an information-intensive, document-driven workflow, by and large repetitive in nature.
It is perfectly alright in deciding to discuss openly with the VP(Operations) as there is a difference in the standard figure. Dash has done a thorough scietific study and has figures in support. In contrast, Henry has immense practical experience and can be more attuned to reality and on the job possibilities , taking both men and machines into consideration.The two of them discussed and failed to reach an agreement over the standard number of claims per hour.
Having created a possibility to sort out the issue with a higher authority, it is certainly unprofessional , to attempt to voice personal views, in the absence of Henry. This should be raised in the presence of Henry , so that he can react/give explanations ,as he deems fit.Leave alone the number- this in itself , is a breach of agreement on the part of Dash.
Any scientific study is undertaken for the sole purpose of implementation /putting into practice. It certainly follows that a thorough investigation of what is already in practice, is very essential. for knowing what can be insisted and implemeted. So, it goes without saying that a cost analyst and a claims processing manager have to work in close unison with one another, to establish a meaningful and achievable standard. A standard cannot be too rigorous nor too slack. It has to allow for human discrepancies.Both Dash and Henry are equally correct . May be, Henry a little bit more. There can be some mid-standard figure agreed- between 30 and 36.
Business ethics is maximisation of wealth by optimal utilisation of resources including men and machines .Relying or giving importance to only mathematical figures too rigidly , without humanitarian considerations , means lack of ethics.
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