Abstract
Cost shifting strategy in service organizations causes difficulties between co-existing internal business units each competing for scarce resources. Within regulatory and legal constraints, cost shifting between business units instigates concomitant changes to each unit's profitability/budget-surpluses. For internal monopoly and competitive units, this strategy has shortcomings. Through management sponsored training programs, employee learning and productivity improvements offer a long-term approach to better address this short-term cost shifting problem. We mathematically model this solution, and outline further research that builds on this long-term cost shifting approach.
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