BUSINESS ADMINISTRATION II
Case Study: "One Stop Centre"
Business Administration students were given a research project to investigate the business activities of any local company of their choice. The purpose of the project was to give students an opportunity to gain practical and first-hand experience in understanding and solving administrative-related problems. Each group of students was accompanied by a senior lecturer during their visits to the companies of their choice. Companies have been invited to ask the assistance from the lecturers and students with any problems experienced.
One of the groups decided to investigate a private company that was established by four graduate students who all obtained an Office Management and Technology diploma. The company is called One Stop Centre (OSC). John is the company's chief executive officer (CEO), assisted by founding members Grant, Melissa and Lungile as directors. Each director is assisted by a supervisor and five administrators. The company, which is only three years old, was formed to provide centralised information and administrative support services to medical aid companies. The services offered by OSC allow medical aid companies to channel all their medical aid applications through this centre. With just one application form, medical aid applicants can choose from different options offered by different participating medical aid companies. OSC is responsible for handling the routine activities of receiving the application forms, processing of the forms, responding to application requests and answering questions on the status of applications.
When an application form is delivered by the Post Office, the receiving administrator in the mailroom unit (Grant) of OSC, scans the application for completeness. If the application form has not been completed in full, the applicant is contacted to obtain the missing information. Thereafter, a text message is sent to the applicant to acknowledge receipt of the application. The processing unit (Melisa) is responsible for capturing, processing and storing of data from the application forms. Medical aid companies are then provided with online access to the stored information to enable them to respond with an offer as per the needs of the applicants. The communication unit (Lungile) is responsible for updating the applicants by means of emails about the results of their applications after offers have been made by different medical aid companies. Lungile has to request a "read receipt" in order to ensure that the applicants did receive and read the feedback from the medical aid companies. However she often forgets to do it. The roles and responsibilities of employees are not clearly defined in this company. As a result, an employee gets to do whatever lands on his/her table or what the supervisors or directors request be done at a given time.
This centralised application processing service is supposed to offer benefits like greater efficiency in the applicationprocessing function. However recently, prospective clients and participating medical aid companies have been dissatisfied with the services offered by OSC.Firstly, most applicants complain about lack of communication and failure on the part of OSC to specify when application results would be communicated to the applicants.This situation means that applicants are left confused and unsure about what to expect after they have applied.Secondly, the application forms are not user friendly because there are too many items covered in one form. Each form covers the requirements and offerings of all participating medical aid companies. Moreover, when applicants call in to check on the status of their applications, telephones are not answered on time; sometimes there are long waits during calls as applications are most often not traceable.
One by one, participating medical aid companies are not renewing their contracts with OSC as they are losing potential clients and thus struggling to reach their new client targeted margins. Everyone involved is quite surprised with the performance of OSC as it started off so well.
Compiled by: ZP Ndaba-Thobela, 2016.
Use the information gathered in this research project to answer the questions below.
QUESTION 1
1.1 Draw the organisational structure of OSC as indicated in the case study.
1.2 Identify and criticise four principles of organising that are not applied at OSCresulting in the situation indicated in the case study. Also provide examplesidentified in the case study to support your answer.
1.3 Due to the identified problems in question 1.2 with the application of the principles of organising, OSC is consistently losing clients and profits. The CEO requested the lecturer and studentsto discuss the functional authority that the mailroom director, Grant holds over the communication unit's director and supervisorat OSC with regard to incomplete application forms. Supply an example to illustrate your understanding of this authority.
1.4 Advise why it is important for the CEO (John) to know about the informal groups that exist within OSCby explaining four advantages of informal organisation.
1.5 OSC uses the concept of centralisation of medical aid application as their core service offering. Explain the following, to create a clear understanding of this centralisation concept.
1.5.1 Geographical centralisation
1.5.2 Functional centralisation
1.5.3 Centralisation of authority
1.5.4 Advantages of centralisation
QUESTION 2
2.1 In an effort to improve communication at OSC, compose an email to be sent to all the employees of OSC. This email needs to include 2topics:
2.1.1 a description ofelectronic recordsand
2.1.2 the procedure for organisingrecords electronically.
STUDENTS - after you have composed this email on your computer, you should print screen and submit it as the answer to this question.
QUESTION 3
OSC is responsible for handling the routine activities of receiving the application forms, processing of the forms, responding to application requests and answering questions on the status of the medical aid offers.
The following procedure outline the present steps involved in the processing of the medical aid applications:
1. Mail clerk receives and opens the application forms delivered by the post office (ordinary mail).
2. Mail clerk scans the application form for missing information.
3. Mail clerk takes the application forms to a supervisor for signature, a distance of 400 meters.
4. Applicant is contacted for any missing information or documentation.
5. A text message is sent to the applicant when the form is ready for processing.
6. Application form details are captured on the electronic system.
7. A text message is sent to inform applicant that their application has been captured.
8. Application form is stored electronically.
9. An email is sent to medical aid companies to make anoffer as per the needs of the applicants.
10. OSC waits for all medical aid companies to respond, waiting period is about a week.
11. OSC informs applicants of the various offers by means of e-mail.
3.1 Chart the present steps involved in the processing of the medical aid applications by using the attached flow process chart.
3.2 In the modification of the present system, you should propose a system that is done completely online. The whole process should be done electronically. Suggest how this process can be simplified to enhance the quality and efficiency of services that are offered by OSC.
QUESTION 4
4.1 Due to the recurring problems from the lack of information on the application form, John (CEO) has asked your group to design a comprehensive application form to include all the necessary items that are needed by all the various medical aid companies.
The form should be divided into 5 parts to be titled as follows:
(Title, name, surname, gender, ID no, residential address, postal address, contact numbers, email address, gross monthly income)
o Spouse
(Title, name, surname, gender, ID no, residential address, postal address, contact numbers, email address, gross monthly income)
o Dependants
(Title, name, surname, gender, ID no, relationship)
- Details of your general practitioner
- Medical questionnaire
- (Please tick the medical condition you have been diagnosed with from the following: Blood disease; neurological disease; psychological condition; any transmissible disease; any affection of the heart)
- Document checklist
- (To facilitate quick and efficient processing of your application, use the tick boxes below to ensure all the applicable documentation accompany your application form:Copy of principal member's ID; Copy of spouse/partner's ID; Copy of latest pay slip; Proof of residence).
- Declaration
- I am applying for medical aid and declare that the information given and statements made herein, whether entered on the form by me or on my behalf are correct and complete (Provide a space for applicant's signature).
4.2 Your group decided to clarify the basic concepts of a system to all the directors by using a real situation as it appears at OSC.
- Draw a diagram to illustrate and describe all the elements of a system. (5)
- Clearly indicate the flow between the elements of a system. (1)
- Discuss each element briefly with an example from the case study to indicate your understanding. (5)