The case of the team-spirit tailspin

Richard Johnson, newly appointed president of Century Airlines, knew the company's survival depended on customer service, which in turn depended on motivated employees. So he created the Century Spirit program to build team spirit by encouraging employee participation, individual initiative, and open communication. Among the program's early successes was a newspaper started by a group of flight attendants. The Plane Truth published information about benefits and work conditions as well as feature stories and humorous articles. It quickly became popular not only with flight attendants but also with pilots, machinists, and baggage handlers. As time went on, though, the Plane Truth began to run articles critical of the company. When management cut back workers' hours, the newspaper questioned what sacrifices the executives were making. When technical services released figures showing long turnaround times, the paper questioned the machinists' work ethic. Worried that customers might see the newspaper, Richard Johnson wanted to cancel it. The president of the flight attendants union also wanted to see it go because it was stirring up trouble with the machinists. Joan Raffin, Century's human resources director, was asked to stop the publication. But she hesitated. She knew that employee morale was on the brink, but she didn't know whether the newspaper was venting workers' frustrations and reinforcing team spirit or stirring up old animosities and bringing the whole company down. Was it creating more tension than unity or vice versa? Experts on organizational change, motivation, and management analyze the situation and make recommendations for what Joan Raffin should do.     

Managing unofficial inventory: a piece of the materiel management foundation

The implementation plan will remain the same: target an area of opportunity, measure and document the amount and value of the unofficial inventory, establish PAR levels, implement the use of hand-held terminals to assist in inventory control, and integrate inventory control with the implementation of new programs that will impact ordering, receiving, distribution, and invoicing. It is anticipated that the inventory in the main OR alone can be reduced by $1.5 million if we move forward with a stockless JIT system. This would reduce the days of inventory on hand from approximately 100 days to between 7 and 14 days. This could also mean a holding cost reduction of $150,000. The merit of reducing unofficial inventory is evident. Managing unofficial inventory is merely one piece of the successful materiel management foundation. The other foundation pieces include contract compliance and price negotiations, systematic methods of ordering products, and timely distribution of products to the end user. PHS cannot effectively move forward to a new, innovative materiel system for the future until we first measure, analyze, and document the present conditions. Once the foundation is laid by improving present business practices, then the framework of the structure can be designed and constructed. The goal is to implement a system that utilizes the full potential of people, equipment, logistics, and information so that our customers, the patient caretakers, do not have to worry about anything except the delivery of quality care.(ABSTRACT TRUNCATED AT 250 WORDS)     

Managing materiel in a multidivisional corporation

By using centralized purchasing and prime vendor contracts, the Allied Services material management department has been able to handle very effectively the purchasing needs of this multidivisional health care complex. Through active enforcement of Allied Service's materiel management policies and procedures, the department continues to be able to acquire the products and services that are necessary to keep the many programs running. Most importantly, these products and services continue to be acquired while the three significant attributes of materiel management--quality, availability, and service--are maintained.     

Onsite concurrent review: impacts on utilization, medical complications and expense

An evaluation of onsite concurrent review over and above the effects of Aetna's precertification program demonstrated reduced utilization and expenses, especially for ancillary services, and no adverse effects on rates of medical complications.     

The welfare effects of import “subquotas” on heterogeneous product categories

In spite of its importance to policy makers, surprisingly little attention has been paid to the welfare effects of one aspect of trade policy-how to implement an import quota that applies to a heterogeneous product category. The government can impose a simple quota that applies indiscriminately to all goods within the product category or it can divide the quota among them with subquotas. In this paper, we analyze the welfare effects of subquotas. Under certain simplifying assumptions we find that a system of subquotas nearly always exists that provides greater welfare than a simple quota for a large country that retains quota rights or for a large or small country that gives quota rights away to foreigners. However, subquotas cannot increase the welfare of a small country that retains quota rights. The difference lies in the effect of imports on the home country's terms of trade.The views expressed in this paper are those of the authors and do not necessarily reflect the opinion of the US International Trade Commission. The authors are grateful for helpful comments on an earlier draft by anonymous referees.     

In-house versus off-site sterilization

After a comprehensive review of in-house costs versus off-site sterilization costs, and considering financial and physical constraints, the decision was made to use the contracted service. Through the incorporation of the innovative concept of off-site sterilization. Flushing Hospital Medical Center was still able to provide a high standard of quality care as well as realize a significant cost savings. As hospitals face increasing demands to control costs, they may be forced to explore "uncharted waters" and give serious consideration to the use of outside services for a more efficient and effective CSS department.     

Reactions to ethical dilemmas: A study pertaining to certified public accountants

This study discusses how perceptions of ethics are formed by certified public accountants (CPAs). Theologians are used as a point of comparison. When considering CPA ethical dilemmas, both subject groups in this research project viewed confidentiality and independence as more important than recipient of responsibility and seriousness of breach. Neither group, however, was insensitive to any of the factors presented for its consideration. CPA reactions to ethical dilemmas were governed primarily by provisions of the CPA ethics code; conformity to that code may well be evidence of higher stage moral reasoning.Gregory A. Claypool is Associate Professor of Accounting and Finance at Youngstown State University.David F. Fetyko is Professor of Accounting at Kent State University. Michael A. Pearson is Professor of Accounting at Kent State University. He is the author of Enhancing Perceptions of Auditor Independence, Journal of Business Ethics 4 (1985), 53–6, and Auditor Independence Deficiencies and Alleged Audit Failures, Journal of Business Ethics 6 (1987), 281–7.