CASE: Employee Layoffs at the University Medical Center 1. State the main problem of the hospital. a. Firstly, the hospital is experiencing a net loss in its profit because of the declining occupancy brought about by the opening of the biggest hospital in the province. b. Secondly, the hospital’s proposal for employee layoffs is very difficult to execute as employees will not be receptive about it which can eventually cause a possible trouble in the long run. c. Third, hence, if the hospital implements layoff, it will surely create a negative impact on its image, thus losing its competitiveness. d. Since the hospital has never experienced an employee layoff, it would surely have difficulty implementing such layoff. Furthermore, since it would be its first time to execute an employee layoff, the hospital does not have adequate criteria of executing it. Even though the hospital has a performance appraisal system, the criteria would surely not be acceptable to the employees. It is quite evident that the hospital lacks strategy, as well as HR planning. 2. State the different areas of consideration following the guide below: a. Strengths of the hospital Considering the fact that the hospital is considered as one of the largest in the city, it has the following strengths: Special expertise Good and extraordinary reputation Cultural connections, and Facilities have grown gradually over the years. b. Weaknesses of the hospital
The hospital needs to address and overcome the following: No established specific short-term and long-term marketing plan No established annual HR planning model, and No differentiation of service lines
c. Opportunities of the hospital The following are the opportunities of the hospital despite the issue confronting it: a. Improve facilities and equipment b. Expansion of building c. Renovation of building, and
d. Improve quality of health care services 3.
Avoiding Layoffs – Alternative Strategies / ACA
After assessing the hospital downturn and the BOD’S recommendation layoffs up to 25 % and likely duration of the strategy to be implemented, evaluating the costs and savings, and considering any legal ramifications, an employer next must decide on what strategy(s) will best address its situation. a. Communicate with Employees to Gain their Support and Obtain their Ideas
No matter what strategy an employer utilizes, results will hinge on the level of communication with the workforce. As early as possible after the necessity for cost-saving measures is identified, educate employees about the state of the company and possibly about what alternatives to layoff are being considered. Ideas about what could shave expenditures should then be solicited from the employees through surveys, emails, focus groups and interviews.
Not only do employees often offer innovative ideas when their jobs are directly implicated, but morale will be bolstered by management’s display of confidence in the workforce. The stronger the communication process, the less likely that employees will choose to leave the company.
Loyalty is generated in employees who feel that their employers hear their voices and care about their jobs.
b. Restructuring
Restructuring efforts that could preempt a layoff would include closing of obsolete plants or branches, administrative overhauls, selling of non-core operations and improving internal processes. As to the latter, employees often have the best ideas about how their jobs could be performed more effectively and/or efficiently.
c. Hiring Freeze and Internal Shift to Cover Open Responsibilities
In a seemingly ironic practice, employers often continue to fill vacant positions while introducing significant layoffs. This practice sends employees the message that their needs and livelihoods are unimportant to the organization.
By simply placing a freeze on all hiring and then shifting employees internally to cover all functions, savings are coupled with improved morale. This option, like the other ways to reduce headcount discussed below, carries the advantages of minimal risks and costs and is less likely to diminish employee morale.
However, the disadvantages are that longer time commitments are required to realize somewhat limited savings and the internal shifting and reassignments will cause some level of disorganization.
d. Ensure that procedures used to make decisions are seen as and fair.
This is known as procedural justice. When laid off employees perceive downsizing procedures to be fair, they tend to file fewer claims of wrongful termination, and voluntary turnover among surviving employees is much less frequent.
e. Be transparent about the current conditions that the organization faces and the potential impact on the workforce.
f.
Employees want to hear the truth, and they want to hear it from the CEO. Pretending things are fine will only hurt a leader’s credibility. Provide regular updates at least every four to six weeks, including reports on year over- year revenue, net income, current business strategy and future prospects.
Be able to justify the layoff.
A company has to demonstrate a financial loss for several quarters, not just a generalized sense that the economy is turning down, before laying off workers.
4. State your recommendations base on your ACA
Cut temporary staff. Eliminate overtime. Offer voluntary retirement. Freeze salaries. Cut salaries. Freeze hiring. Reduce work hours. Use temporary layoffs (furloughs). Use furloughs with incentives. Cancel business trips and costly perquisites.
Reduce or suspend matching contributions to company-sponsored savings plans. Raise employee contributions to benefits plans. Postpone or eliminate bonuses
5. Provide a conclusion/detailed action recommendations using the guide below Specific Activity Work Attitude and Values Enhancement
Identify departments and functions that are strategically critical, along with critical employee skill sets going forward.
Identify criteria that reflect legitimate business needs.
Document the criteria and processes
Person Responsible LALLAINE BUENAOBRA CEO MELINDA DUMAEL HR DIRECTOR
Time Frame
to
implement
your
Budgetary Requirements
used.
Conduct analyses to ensure that there is not a disproportiona te effect of layoffs on members of protected classes and have all analyses and documentatio n reviewed by an attorney.
CASE: The Unsatisfied Department Chair
