75%(4)3 out of 4 people found this document helpful
This preview shows page 8 - 10 out of 111 pages.
system. Finally, cost containment potentially restricts access not only to types of services but to minorities, underserved populations, and others who already have limited access. Continual emphasis on health care cost containment has reopened the issue of cost containment's relationship to quality of care and has created a need to understand the basic composition and nature of that relationship. For unless a new general approach is taken toward cost containment, continual emphasis could disrupt the delicate balance of the components that constitute quality of care and result in a deterioration of a standard level of care that the population has come to expect and that has taken decades to obtain. Litigation costs continue to rise year after year and are consuming an increasing percentage of revenue. According to a 2011 Fulbright & Jaworski study, 61% of respondents expect their litigation costs to remain the same and 28% expect them to rise substantially –as such, approximately 90% of the market, regardless of the vertical, see their litigation spend increasing. This challenge places greater demands for companies to control litigation spend. Much emphasis is spent on addressing the outside counsel ―billable hour‖ cost since it consumes a majority of legal budgets. First Legal Network has identified specific ineffectively resourced areas of spend where there are opportunities for significant savings realization. This report identifies where costs can be contained while delivering remarkable ROI to corporations.
9 | P a g e Accordingly, researchers suggest that firms should make trade-offs between revenue enhancement and cost containment strategic emphases (e.g. Anderson et al., 1997; Singh, 2000). However, research on the relative benefits of strategic profit emphasis is somewhat inconclusive. While Rust et al. (2002) report that firms with a revenue enhancement focus perform better than firms that emphasize cost containment or those that attempt to use a ―hybrid‖ approach, Mittal et al.‘s (2005)study indicates that it is possible for a dual emphasis to achieve long-term success, but that short-term success is uncommon. Rust et al. (2002) conclude that the two strategic profit emphases are distinct and differentially affect firm performance. Of the two strategic profit Inﬂuence of emphases, revenue enhancement is the most closely aligned with market orientation strategic profit and customer focus, both of which are linked to beneficial customer-related firm performance (Deshpande et al., 1993; Day and Nedungadi, 1994). Cost containment emphasis is independent variables. It‘s related to service climate because of organizational enhancement and job enhancement (Moderating variables). Organizational identification:Organizational identification refers to a form of social identification that describes the degree to which a member defines him/herself by the same attributes that he or she believes define the organization‖ (Dutton et al., 1994, p. 239). This according to early identification theorists elicits