Literacy: a problem that managers must handle

Patient and employee illiteracy is a problem that health care managers must deal with. More than half of all Americans may be unable to read and understand written materials used in hospitals, clinics, and other health care facilities. There is a mismatch between employees' and patients' reading level and the reading level of most written materials used by health care facilities. This can lead to noncompliance with treatment, missed appointments, wrong dosage of medications, uninformed consent, and undo fear among patients. Employees who are unable to read directions or policies and procedures are not able to do their jobs efficiently. There are things that managers can do to make written materials more user-friendly.     

Interpretive management: what general managers can learn from design

The past two decades have seen a dramatic acceleration in the pace of marketplace change. Companies have abandoned the old hierarchical model, with its clean functional divisions and clear lines of authority, and adopted flatter, less bureaucratic structures. But if most organizations have begun to adapt to the uncertainty of rapid change, most managers have not. They remain locked into the mechanical mind-set of the industrial age--that is, they assume that any management challenge can be translated into a clearly defined problem for which an optimal solution can be found. That approach works in stable markets and even in markets that change in predictable ways. Today's markets, however, are increasingly unstable and unpredictable. Managers can never know precisely what they're trying to achieve or how best to achieve it. They can't even define the problem, much less engineer a solution. The challenges facing the general manager in these circumstances, the authors argue, resemble those typically confronted by design managers. In the unpredictable world of research and design, neither the flow of the development process nor its end point can be defined at the outset. Rather than the traditional analytical approach to management, the design world requires an interpretive one. And that approach is equally well suited to rapidly changing, unpredictable markets. The authors describe how companies such as Levi Strauss & Company and Chiron Corporation have stayed at the top of their industries by adopting just such an interpretive approach to management.     

TESTING THE CONTINGENCY «FIT» BETWEEN MANAGEMENT ACCOUNTING SYSTEMS AND MANAGERIAL PERFORMANCE: A RESEARCH NOTE ON THE MODERATING ROLE OF TOLERANCE FOR AMBIGUITY

This study examines the moderating effect of tolerance for ambiguity, a personality variable, on the relation between management accounting systems (MAS) design and managerial performance. MAS design was defined in terms of the extent to which managers» use of broad scope MAS information for managerial decision making. The responses of 63 managers, drawn from a cross-section of Australian manufacturing companies, to a questionnaire survey were analysed by using a multiple regression technique. The results indicate that the use of broad scope MAS information interact with tolerance for ambiguity to affect managerial performance. The results indicate that an appropriate «fit» between manager's personality variable of tolerance for ambiguity and the extent of use of broad scope MAS information for managerial decisions will lead to improved managerial performance.     

Simultaneous Pooled Auctions

Suppose a seller wants to sell k similar or identical objects and there are n > k potential buyers. Suppose that each buyer wants only one object. In this case, we suggest the use of a simultaneous auction that would work as follows. Players are asked to submit sealed bids for one object. The individual with the highest bid chooses an object first; the individual with the second-highest bid chooses the next object; and this process continues until the individual with the kth highest bid receives the last object. Each individual pays the equivalent to his or her bid. When objects are identical, we show that the proposed auction generates the same revenue as a first-price sealed-bid sequential auction. When objects are perfectly correlated, there is no known solution for sequential auctions, whereas we can characterize bidding strategies in the proposed auction. Moreover, the proposed auction is optimal (given an appropriately chosen reserve price), and it may be easier and cheaper to run than a sequential auction.