Analysis of Managerial Decisions: Medford University
Case Study Analysis 03
Analyzing Managerial Decisions – Medford University
Kajli Agrawal
University of the Potomac
BUS502-Managerial Economics
January 25, 2015
Professor Geraldine Cameron
Abstract
Medford University is up against a financial crises and the management have found the need to tackle the crises on high priority. The primary focus is to tackle the considerable cost of fringe benefits and retirement benefits offered by the university to its employees. A whooping $100 million is spent annually by the management towards the fringe benefits for the employees (Brickley, Smith, & Zimmerman, 2009). In an attempt to find a solution for reducing these costs, the management could have approached the Human Resources department to analyze the issue on hand and provide a revised plan for the employees’ fringe benefits. Instead the management has taken a decision to create a task force to analyze the financial crises in hand and come up with a solution to help reduce the fringe benefits costs to the university.
Medford University, a prestigious research university, with over 10,000 students and over 12,000 employees, is faced with a significant financial crisis (Brickley, Smith, & Zimmerman, 2009). University management has cornered the huge costs burdened by the university on the fringe benefits to the employees. This contributes to over $100 million annually (Brickley, Smith, & Zimmerman, 2009). Not to mention the retirement benefits promised to the retiring employees. The university, however, off late have been faced with serious financial crises. The fringe benefits costs have been contributing to the major expense faced by the university. The management is hence faced with an immediate action plan to tackle these financial crises to salvage the future of the university and its employees. Now the solution depends widely in changing the current fringe benefits plan and for this the management could approach
Analyzing Managerial Decisions – Medford University
Kajli Agrawal
University of the Potomac
BUS502-Managerial Economics
January 25, 2015
Professor Geraldine Cameron
Abstract
Medford University is up against a financial crises and the management have found the need to tackle the crises on high priority. The primary focus is to tackle the considerable cost of fringe benefits and retirement benefits offered by the university to its employees. A whooping $100 million is spent annually by the management towards the fringe benefits for the employees (Brickley, Smith, & Zimmerman, 2009). In an attempt to find a solution for reducing these costs, the management could have approached the Human Resources department to analyze the issue on hand and provide a revised plan for the employees’ fringe benefits. Instead the management has taken a decision to create a task force to analyze the financial crises in hand and come up with a solution to help reduce the fringe benefits costs to the university.
Medford University, a prestigious research university, with over 10,000 students and over 12,000 employees, is faced with a significant financial crisis (Brickley, Smith, & Zimmerman, 2009). University management has cornered the huge costs burdened by the university on the fringe benefits to the employees. This contributes to over $100 million annually (Brickley, Smith, & Zimmerman, 2009). Not to mention the retirement benefits promised to the retiring employees. The university, however, off late have been faced with serious financial crises. The fringe benefits costs have been contributing to the major expense faced by the university. The management is hence faced with an immediate action plan to tackle these financial crises to salvage the future of the university and its employees. Now the solution depends widely in changing the current fringe benefits plan and for this the management could approach
References: Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009). Managerial economics and organizational architecture. Chicago: Irwin.