Control_Mechamisms

Control Mechanisms Paper Andrea Clair Darryl Burt II Valerie Bender Robert Larry Jr. Quentin Austin University of Phoenix Control Mechanisms Paper Economic challenges and competition requires organizations to use new methods of control in making decisions, sharing information, and soliciting ideas. This means managers must learn how to control and master the operational and strategic processes and people. According to Bateman and Snell, “Control is defined as any process that directs the activities of individuals toward the achievement of organizational goals” (2009, p. 574). At Palmetto GBA, managers must ensure that control mechanisms are in place, to properly carry out the plans and strategic goals of the company. The strategic drivers used at Palmetto GBA, compliance, cost management, innovation, marketing and business development capability, people, performance ownership, and quality, are the tactics used to measure and score organizational performance and to implement actions as needed by managers (Palmetto GBA, 2009). In addition, many organizations like Palmetto GBA seek means for using control mechanisms creatively and flexibly by sharing control with employees to build trust and commitment. Types of Control Mechanisms Different types of control mechanisms are established to assure that processes are effective and for dealing with unexpected situations by the use of continuous audits and quality improvement procedures. The categories of control vary greatly among organizations. According to Koskiniemi, many organizations have adopted the approach of Merchant (1985) in which controls are classified into the following three categories: action controls, personnel and cultural controls, and result controls (Koskiniemi, 2009, p. 14). At Palmetto GBA, the controls are represented by goals that have to be accomplished to be successful, which include financial objectives, revenue and growth, and the drivers mentioned earlier to measure each performance level. The types of mechanisms used at Palmetto GBA include performance controls to help employees make the most of their abilities and to take on new responsibilities, cost controls to ensure services are competitive, procedure control to maintain high standards of ethics and to analyze processes, and business development controls to identify new business opportunities. All stakeholders involved influence the organizational control mechanisms. Compare and Contrast of Control Mechanisms In December 2003, Congress enacted the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA). Among other things, this legislation requires that CMS use competitive procurement procedures, pursuant to the Federal Acquisition Regulation (FAR), to replace the fiscal intermediaries and carriers on whom CMS has historically relied for claims processing services, and who have been selected under other than competitive procedures (Palmetto GBA, 2007). The replacement contractors under the MMA are referred to as “Medicare Administrative Contractors” (MACs). The procurements for each jurisdiction were conducted as separate competitions, but offertories were permitted to submit proposals for any or all of the jurisdictions (Palmetto GBA, 2007). The solicitation provided that the source selection decision for each jurisdiction would be made on the basis of the proposal offering the best overall value to the government, considering cost/price and the following non-cost/price factors, listed in descending order of importance: offeror capability, implementation, quality control plan, corporate experience, past performance, and small disadvantaged business utilization plan (Palmetto GBA, 2007). Effectiveness of Control Mechanisms Quentin Positive and Negative Reactions of Controls Valerie How Controls affect the functions of Management Darryl Conclusion Darryl Compare and Contrast of Control Mechanisms In December 2003, Congress enacted the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA). The replacement contractors under the MMA are referred to as “Medicare Administrative Contractors” (MACs) [1](2007). Congress has set up all these procedures to replace the one they have in place now. Congress needs a company that will take over all the services that they provide for Medicare & Medicaid Services. That legislation wanted than to use competitive procurement procedures, pursuant the Federal Acquisition Regulation, to replace the fiscal intermediaries and carriers on as CMS has. Once the replacement contractors have been referred to as Medicare Administrative Contractors the proposal for contractor will begin. In April 2005, CMS issued RFP No. CMS-2005-0012, seeking proposals, for each of four geographic jurisdictions, to provide specified health insurance benefit administration services, including Medicare claims processing and payment services related to durable medical equipment, prosthetics, orthotics and supplies (DMERFP sect. B.1. The RFP anticipated the award of a cost-reimbursement plus award-fee contract, with a 1-year base performance period and four 1-year option periods (2007). Congress was in needs of a insurance company to take over the four geographic jurisdiction, they needs to provide health insurance benefits to that jurisdiction, the company also need to set up a call centers for the billing and payment services. In June 2005, CIGNA and Palmetto each submitted proposals to perform the “core” DME requirements in jurisdiction C. In addition, Palmetto submitted a proposal to perform the non-mandatory optional/specialty services, including MEDIS, in all four jurisdictions; CIGNA submitted a proposal to perform the “core” DME requirements in jurisdiction C, but not for the non-mandatory optional/specialty services (2007). During this time Palmetto and GIGNA was submitting proposal for a government contract to take care the four jurisdictions in which detail how they will provided acquire care for the peoples. In January 2006, the agency awarded Palmetto the DME MAC contract for performance of the “core” services in jurisdiction C; at that time Palmetto was also awarded the contract to perform the optional/specialty services in all four jurisdictions. Thereafter, CIGNA filed a protest, challenging the award of the DME contract to Palmetto for jurisdiction C.[7] Our Office sustained that protest, concluding that the agency had conducted improper discussions with Palmetto regarding its price proposal. See CIGNA Gov’t Servs., LLC, B-297915.2, May 4, 2006, 2006 CPD para. 74. CIGNA’s protest of the award to Palmetto resulted in a stay of performance with regard to Palmetto’s jurisdiction C DME contract; because of the requirement that the contractor for the optional/specialty services be one of the four DME MACs, performance of Palemtto’s contract for the optional/specialty services was also suspended (2007). References Bateman, T.S., & Snell, S.A. (2009). Management: Leading & Collaborating in a Competitive World (8th ed.). New York, NY: McGraw-Hill/Irwin. Retrieved October 24, 2009, from University of Phoenix, MGT/330. Koskiniemi, T. (2009). Interplay of control in a contemporary organization. Retrieved October 25, 2009, from http://hsepubl.lib.hse.fi/FI/ethesis/pdf/12078/hse_ethesis_12078.pdf Palmetto GBA, (2009). Partners in Excellence. Retrieved October 25, 2009, from http://www.palmettogba.com/palmetto/aboutarea.nsf/quality.htm www.gao.gov/decisions/bidpro/298962.htm