Capitation: developing partnerships for health care

As medical-surgical supply distributors begin to establish partnerships with hospitals, thus sharing financial risk, materiel executives must understand all potential contractual ramifications. This article will discuss the types and features of supply capitated contracts and the subsequent need to correctly assess new categories of contractual risk.     

CONVERTIBLE BOND PRICING MODELS

Convertible bonds are an important segment of the corporate bond market, with worldwide outstandings approaching US$235 billion. Simple pricing models value a convertible bond as being equivalent to a straight bond with an embedded option that enables the bond holder to convert to a specific amount of common stock. The straight bond is subject to both interest rate and credit risk, whereas the option to convert is dependent on the underlying stock price, which exposes the convertible bond holder to equity risk. The complexity of these features means that convertible bonds tend to be treated casually in major derivatives and corporate finance textbooks. This paper presents a survey of the theoretical and empirical aspects of convertible bond pricing. The limitations of these studies are highlighted to identify those areas of research that may improve the valuation process and facilitate the application of these securities for corporate financing.     

The employee selection interview: A fresh look at an old problem

This article takes a fresh look at employee selection interviews as they are practiced in most organizations. Interviewers' selection decisions are demonstrated to be idiosyncratic and it is concluded that variation in interviewers' decision processes jeopardizes organizational effectiveness. Practical recommendations for improving employment interviews are offered. © 1996 by John Wiley & Sons, Inc.     

An analysis of the drug testing decision

Two separate investigations were undertaken to better understand the factors that should be considered in the drug testing decision. In the first study, organizations were surveyed by telephone and were asked to identify the factors considered when making their decision. Safety seemed to be the most important reason for favoring a drug testing program, while employee rights was one of many reasons for not implementing a testing program. In the second study, the interest was in determining the impact of drug testing on the applicants' willingness to join the organization. It was found that salary was the most important factor, but that the drug testing policy did affect the job choice of about 20% of the students.     

Steady progress with Hazard and Operability Studies

The use of Hazard and Operability Studies is slowly spreading in the production areas of the chemical industry. Not only are applications more widespread within the originating company (ICI), but other companies both in the UK and in continental Europe, are starting to use this approach. The value of the technique in detecting operability problems as well as hazards is starting to be appreciated. Applications in the R&D area are also developing along similar lines although well behind the production area and possibly still confined to ICI. Various forms of training are becoming available and increasing interest is being shown by the regulatory authorities concerned with planning permission for chemical plants.     

From resource munificence to ecosystem integration: the case of government sponsorship in St. Louis

Government sponsorship of entrepreneurship has become a popular policy tool in the last 15 years. Despite this popularity, past academic studies have largely focused on firm-level survival rates and treated the effects of government sponsorship in isolation, which fails to capture the full effect of the sponsorship. That is, the objectives of the public sector include enhancing the macro-level entrepreneurial environment of the region as well as the success of individual firms. We expand research in this area through a case study in St. Louis, Missouri. We focus on the Arch Grants, a public–private coalition that provides $50,000 to 20 winners through their annual competition. Based on interviews of 46 recipient firms and 15 support organizations, we first demonstrate how government sponsorship can create a cohort of entrepreneurs who are able to learn from each other about business strategy, local mentors and other resources. Second, we uncover the process through which sponsorship can facilitate coordination among local entrepreneurship support organizations. Thus, we conclude that the evaluation of government sponsorship should go beyond the traditional firm-level performance measurement and consider the integration and enhancement of the local entrepreneurship ecosystem.     

Drug testing in the workplace: An overview of legal and philosophical issues

This article examines a range of legal and philosophical issues related to the drug-testing debate. The discussion of legal issues includes potential litigation on constitutional grounds (for public employees), statutory and tort grounds, or on the basis of civil rights legislation. Arbitration standards are also examined for situations involving unionized employees. The article further highlights pragmatic issues including the accuracy and costs (economic and noneconomic) of drug tests as well as the distinction between a positive drug test and impaired performance. Finally, the article addresses the delicate balance between an employer's right to unimpaired performance and an employee's right to privacy.     

Dealing with the process safety “management gap”

The Process Industry has Corporate Safety Policies, codes of practice, skilled engineers and safety specialists and powerful techniques for Hazard Identification, Assessment and Control. Despite the above and a strong commitment to safety, accidents still occur. Many accidents appear to be due to “gaps” in the management systems rather than to failures of professional skills or to a lack of commitment. This paper will review the many stages in designing, constructing and operating a facility between the initial appraisal of a potential project and the final taking out of service of a facility. The “primary” and “secondary” safety checks will be described. The paper will give examples of gaps in management systems which have led to problems. Finally the paper will suggest ways in which these gaps can be minimized.