West End Hospital Was Concerned About Rising Costs for Patients

question 7

Multiple Choice

West End Hospital was concerned about rising costs for patients who have surgery for joint replacement. It tried rewarding staff in any quarter they met targets for lower use of supplies, but costs continued to rise. An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery. The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections. Which statement about gainsharing best supports this recommendation?

• A) With gainsharing, employees are freed to collaborate on how to improve performance.
• B) Gainsharing creates a competitive environment, so employees will try to outdo one another.
• C) Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards.
• D) Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards.
• E) The success of gainsharing requires management acceptance of employee input.

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Definitions:

International Trade Agreements

Treaties between two or more nations that outline the rules and regulations for trade between them, facilitating smoother and increased trade.

Monetary Unions

Monetary unions are agreements between two or more states to share a common currency and monetary policy, aimed at facilitating economic stability and integration, such as the European Monetary Union.

Currency Exchange Rate

The price of one country’s currency in terms of another country’s currency.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.