Reference no: EM132236302

Tracy McIntyre is a cost analyst with Global Insurance Company. Global is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards. Trey used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager, Carol Mann, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Carol and Trey 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, Trey wrote the following memo to the VP. To: T.J. Logan, VP of Operations From: Trey McIntyre RE: Standards in the Claims Processing Department As you know, Carol 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. Carol argues that 30 claims processed per hour would be more appropriate. I believe she is trying to “pad” the budget with some slack. I’m not sure what she is trying to get away with, but I believe a tight standard will drive efficiency up in her area. I hope you will agree when we meet with you next week. -Why do we want standards? -Why not? -Do they really help management or not?