The text expends considerable effort detailing the reengineering of a hospital. At the end of the case study, the text notes that the changes in process and structure inside the hospital were complementary. In the context of organizational architecture, what does this mean?
What will be an ideal response?
The key components of organizational architecture are decision rights, rewards, and performance evaluation. These components are complementary and depend on each other. For example, when the former functional structure in the hospital was abandoned in favor of small team-based, cross-trained units, decision rights were decentralized. In order for this restructuring to be effective in reducing costs and increasing the quality of patient care, the evaluation and reward system need to be tied to unit performance.
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Private businesses tend to spend too little on research and development, because ________
A) investments to increase the capital stock are a better way to boost productivity B) governments tend to spend too much on research and development C) patent laws make it difficult to reap the benefits of such spending D) technology is often nonexcludable
New social regulations usual are created as barriers to entry
Indicate whether the statement is true or false
The Fed's use of the interest rate it pays banks on their excess reserves
a. is a tool the Fed has used effectively over the past several decades to control the money supply. b. is a tool that can be used to reduce the supply of money, but it cannot be used to expand it. c. is a monetary tool that the Fed introduced in 2008 d. is a tool that could be used to expand the money supply, but it could not be used to reduce it.
The real risk-free interest rate is equal to:
a. Society's time preference for money. b. The tradeoff that society must make between buying a foreign or domestic product. c. For most nations, the rate at which financial institutions can borrow from each other when the expected inflation rate is equal to zero. d. None of the above is correct.