05_AdditionalStudyQuestions - ACC 333(Farrell Class 05 Fall...

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ACC 333 (Farrell) Class 05 Fall 2011 Page 1 of 5 Additional Study Questions Decentralization 1. XYZ Corporation has created an Officer of Energy, whose prime responsibility is to conserve energy used in heating and air conditioning the company’s many buildings. The officer is not allocated a budget, and does not have any formal voice in the rewards of the managers of the producing divisions that occupy the buildings or the rewards of the managers in charge of physical plant heating and air conditioning. Division managers are given a fixed budget and rewarded on the basis of output. What organizational problems are likely to occur with this arrangement? Why are they likely to occur? 2. According to Jensen and Meckling, what are the “rules of the game” in a firm? 3. How would the optimal degree of centralization in an organization change in each of the following cases? Explain your reasoning. (a) As creativity and innovation become more desirable. (b) As the environment in which the organization operates becomes more stable.
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ACC 333 (Farrell) Class 05 Fall 2011 Page 2 of 5 4) When Doctors Slam the Door by Sandeep Jauhar, M.D., New York Times , March 16, 2003 When can a doctor refuse to treat a patient? Not surprisingly, there are rules. In 1987, Dr. John Bower, a kidney specialist at the University of Mississippi Medical Center, was sued after dismissing from his practice a patient who regularly missed dialysis appointments, verbally abused nurses and even threatened to kill Bower and a hospital administrator. Bower cited medical noncompliance and violent threats as grounds for terminating care. The Fifth Circuit Court of Appeals, in New Orleans, agreed with him, ruling that doctors can refuse to treat violent or intransigent patients as long as they give proper notice so that the patient can find alternative care. Forcing doctors to treat such patients, the court said, would violate the 13th Amendment, which prohibits involuntary servitude. Sometimes doctors can refuse to treat on the basis of conscience. I once took care of a man in his 50's who had metastatic tongue cancer and respiratory failure requiring a ventilator. His family refused to turn off the machine and let him die, choosing instead to escalate treatment with even more aggressive interventions. Medicine is a stochastic science -- no doctor can predict the future -- but in this case the outcome was never in doubt. Advanced cancer patients who end up on ventilators die during their hospitalizations. Life support was futile, and continuing to insert catheters and tubes into this man seemed inhumane. After the attending physician and I consulted with the hospital's ethics committee, we told the family that we could no longer obey their wishes. We gave them the option of transferring the patient to another hospital. They didn't want to do that; treatment was scaled back, and the man died a few days later. In rare cases, doctors have objected to treatment on moral grounds. In February 2001, it was reported that surgeons in Melbourne, Australia, were
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05_AdditionalStudyQuestions - ACC 333(Farrell Class 05 Fall...

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