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Question Refer to the Metropolis Health System case study appearing in Chapter 25. Read about the various types of services offered by MHS. The MHS organization chart has seven major areas of responsibility, each headed by a senior vice president (refer to page 291). Select one of the seven areas (Information Systems, Finance, Human Affairs, etc.) and indicate the additional levels of management that would fall under this area. Examples of organizational charts are located in Figure 1-2 (pg. 7) and Figure 25-1 (pg. 290). Do you believe your design of the detailed organization chart indicates centralized or decentralized lines of authority for decision making? Can you explain your approach in one or two sentences?
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Question Refer to the Metropolis Health System case study appearing in Chapter 25. Read about the various types of services offered by MHS. The MHS organization chart has seven major areas of responsibility, each headed by a senior vice president (refer to page 291). Select one of the seven areas (Information Systems, Finance, Human Affairs, etc.) and indicate the additional levels of management that would fall under this area. Examples of organizational charts are located in Figure 1-2 (pg. 7) and Figure 25-1 (pg. 290). Do you believe your design of the detailed organization chart indicates centralized or decentralized lines of authority for decision making? Can you explain your approach in one or two sentences?

by Chief OxMay 22, 2020

Solution

            I would select the financial area of responsibility. Under the Senior Vice President – finance/CFO, we have the following modules and the following additional levels of management falling under the area:

  • Central Business Office
    1. Director
      1. Manager
  • Finance
    1. Director
      1. Associate Director
  • Insurance
    1. Director
      1. Associate Director
        • Manager
  • Managed Care
    1. Director
      1. Associate Director
        • Manager
  • Real Estate Facilities/Development
    1. Director
      1. Associate Director
        • Manager

The above approach is highly de-centralized in that each module is being governed by its own set of officers. Each situation merits a solution catered to its special needs. A decentralized system is best here because there was need for greater individual accountability while also making the process easy, smooth and free of red tape and bottlenecks. Thus, a decentralized approach is best, as above.

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Chief Ox

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