Characteristics of MACS design: types of information Chow Company is an insurance company in Hong Kong. Chow hires 55 people to process insur¬ ance claims. The volume of claims is extremely high and all claims examiners are kept extremely busy. The number of claims that have mistakes runs about 10%. If a claim has an error, it must be corrected by the claims examiners. After looking at the data, Judy Choy, senior manager of the division, was not satisfied with the volume of claims processed. She instructed Anne Wu, the manager, to motivate the claims examiners to work faster. Judy believes'that the claims examiners are working as fast as they possibly can. She is also con¬ cerned that, by working faster, the examiners will make more errors.

REQUIRED

(a) How should Anne Wu handle this situation?

(b) On what performance measures is the organization relying?

(c) What performance measures should the organization use?

LO1