Question

home / study / business / accounting / accounting questions and answers / randolph smithfield is a cost analyst with franklin insurance company. franklin is applying ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: Randolph Smithfield is a cost analyst with Franklin Insurance Company. Franklin is applying stand... Randolph Smithfield is a cost analyst with Franklin Insurance Company. Franklin is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards. Randolph used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager, Fred Jones, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Fred and Randolph were unable to agree, so they decided to discuss this matter openly at a joint meeting with the vice president of operations, who would arbitrate a final decision. Prior to the meeting, Randolph wrote the following memo to the VP. To: Linda Greene, Vice President of Operations From: Randolph Smithfield Re: Standards in the Claims Processing Department As you know, Fred and I are scheduled to meet with you to discuss our disagreement with respect to the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Fred argues that 30 claims processed per hour would be more appropriate. I believe he is trying to “pad” the budget with some slack. I’m not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week. Required: Discuss the ethical and professional issues in this situation. Who is more correct, Randolph or Fred? If you were Linda Greene, how would you handle this conflict?

Answer 1

For a good practice, it is always preferable that everyone has been provided an opportunity to be heard i.e. everyone can easily make his point for a specific task. in the given case, Randoph has tried to manipulate the decision of Linda by writing a letter as this is against the professional ethics. One can not manipulate the things or try to avoid the voice of another professional. The correct way in this situation is that both should have sat together and try to find the solution of this problem.

Fred is more correct in the given case as he argued in the professional manner and did not try to manipulate the decision of Linda.

Linda should call both and discuss the matter with the opportunities of being heard is to be provided to both so that both can let Linda understood their point which can help Linda to make the conclusion and convince the one who did mistake while calculating the claims processed per hour.