Session 8

Wednesday, 20 October 2004

Control Management I - Prof. Antoni Garcia Prat

 

Prepare	Case: North Lake Medical Centre

Assignement Questions

1. What kinds of responsibility centers are the divisions? The support departments? Are they designed according to the criteria discussed in Chapter Five?
2. How does the Department of Pediatrics at NLMC build its budget? Please be specific, using the appropriate exhibits as references.
3. How does the Chemistry Lab build its budget? How does its budget relate to the budgets prepared by the divisions?
4. What options are available to a responsibility center in NLMC to reach its contribution objectives? How do these options differ between a clinical department (such as Pediatrics) and a support department (such as the Chemistry Lab)? How does the choice of responsibility centers affect these choices?
5. What changes might be made to deal with the concerns Mr. Grant has expressed about the new system? What changes should he make?