Chapter 12: Medford University
The Medford University case study should provoke you to explore what you would think about if you found yourself in a crisis similar to what the president of Medford University, Hiromi Kobayashi, currently finds himself in. As an extension of the questions provided to you in the case study, you should think about (a) why Hiromi would allocate decision management responsibilities related to cutting back the university’s fringe benefits plan to a committee and not the human resource’s staff, (b) whether Hiromi would want to allocate decision rights to the committee or does he want to retain them himself, (c) whether you think that the committee will always make a decision that is in the best interest of the university, and (d) why the president appointed his key assistant and chief administrator to powerful positions on the subcommitte. The key economic terms that you could integrate into your responses are as follows: (a) general versus specific knowledge, (b) allocation of decision rights and decision management and control, (c) tradeoffs, (d) the use of teams in decision-making, and (e) the appendix of the chapter has a good discussion about agenda control.
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