Explore BrainMass

Give three examples of responsibility centers in the hospital business and how these responsibility centers interact.

I have been asked to speak about the topic of responsibility centers to a group of executives at a conference. I will speak about hospitals in general giving an overview. Give three examples of responsibility centers in this business and how these responsibility centers interact.

This is a management accounting class. PLEASE HELP with any ideas, scenarios you can provide.

Thanks in advance. All previous guidance has been right on target. I really appreciate the help.

Solution Preview

The purpose of the topic is to expose you to different issues related to responsibility centers.
The topic makes an assumption, it assumes a kind of homogeneity about the responsibility centers, this is not true, and there is a tremendous difference between a human resource responsibility center and a production responsibility center. The differences relate to its formation, its size, its functioning, its leadership, its budgets, its targets, its objectives and controls.
Given below is a template to help you answer the questions.

Topic of responsibility centers:
1. Talk about the importance of responsibility centers and their basic purpose of having one manager responsible for the activities, performance and effectiveness of one center.
2. The uses of responsibly centers including the use as a profit center and a means of controlling cost.
3. The fixing of responsibility as well as to identify the trouble spots in the company.
4. Use of responsibility centers in project management including the use of one responsibility center as one project as well as multiple responsibility centers in one large project.
5. Responsibility centers for the development of new products, including research and development and market research.
6. Responsibility centers as teams with strong cohesion and synergistic action, which makes them more effective than otherwise.
7. Responsibility centers as units of production, responsible for round the clock production and scheduling of production.
8. The authority that should be available to the responsibility centers for carrying out its objectives.
9. The responsibilities of time and resources, which are decided as close to the action as possible.
10. The use of responsibility centers for the marketing function including marketing research, sales, promotions, packaging, product development, distribution and logistics.
11. The used of responsibility centers as a more decentralized form of business organization.
12. Responsibility center as a leadership center.
13. Talk about responsibility centers as motivation centers and as a managing team.
14. Responsibility center improves communication within the organization and builds organizational culture.
15. The establishment of responsibility centers can be agents of organizational change.

You may take this approach for your speech

1. At the inception please define 'responsibility center' in a few words and describe the importance of responsibility centers. If you give more than one definition, it looks more impressive in a speech. You should then name three examples of responsibility centers.

2. Select a business you are familiar with. You must know or find out its business, its structure and its objectives. For example if you select an industrial marketing company, which has facilities for manufacturing BOPP tapes, strapping machines and steel strapping. ...

Solution Summary

You will find the answer to this puzzling assignment inside...