Review Exercise 25: Employee Layoffs at St. Mary’s Hospital on pages 83–85 of Nkomo, Fottler & McAfee (2011), Exhibit 2.1 Excel document and Exhibit 2.2 Excel document. Then, using the Excel documents and case study, respond to the following bullets points:
- Identify the major problem or problems at St. Mary’s Hospital and the causes.
- What are some alternatives for dealing with these problems?
- How many months would it take to realize the savings if St. Mary’s relied on attrition (turnover) only?
- What other cost savings ideas might be implemented to realize the target savings?
- Develop a downsizing plan for implementing that will generate $7 million in annual savings. Give specific details concerning departments affected, the number of employees affected in each department as well as the savings by department. Also, discuss the use of seniority versus merit, the amount of notice, and out-placement activities. Provide a rationale for each recommendation, together with reasons why other alternatives were not chosen
- What might be the effects of a downsizing plan on ‘‘survivors’’ in terms of morale, job security, quality, turnover, and productivity? How could you avoid or minimize any potential problems in these areas? (For this question cite at least one resource found in the course readings or in the Walden Library.)
- Identify two possible long-term solutions for St. Mary’s Hospital once it gets its cash flow problems under control and eliminates its deficit, consider trends in the medical field to support your recommended solutions.
- What limitations exist in using performance data as a criterion for downsizing? How can such limitations be overcome? (For this question cite at least one resource found in the course readings or in the Walden Library.)