Case Study - Hospital

“Employee Layoffs at St.
Andrew Medical Center”

1. State the main problem faced by the hospital:
Mainly the problem of the hospital is experiencing a net loss in its profit because
of the declining occupancy brought about by the new opened biggest government
hospital in the province. Another reason to be a problem is the recommendation of the
Board for employee layoffs, it is very difficult to execute because employees will not
accept about it which can eventually cause a problem in the organization and it will
surely create a negative image outside the organization and lose its competitiveness to
its other competitors.
Lastly, if they proceed on its employee layoff that although according to the
history’s hospital it has never experienced an employee layoff ever since its inception.
To think it is their first time implementing an employee layoff, the hospital does not have
acceptable criteria on how to formally execute the Board’s plan. It is quite evident that
the hospital has lacks of strategy planning including the HR department regarding to this
problem even if they create greater performance appraisal system in the city.
2. State the different areas of consideration by presenting a SWOT ANALYSIS:
Strengths Weaknesses
The largest hospital that can The hospital needs to address and
accommodate 300 bed capacity of overcome the following:
patients and have more health care  They have no common specific
providers has the following strengths: short-term and long-term
 They have special expertise. marketing plan.
 They have good and extraordinary  They have no traditional annual
reputation in the city. HR planning model.
 Facilities have grown gradually  They also have no delimitation of
over the years. service lines.
Opportunities Threats
Despite the issue confirming of employee  The hospital is experiencing
layoffs, the hospital have the following financial difficulties.
opportunities:  Lack of employees if they will
 Improved facilities and pursue on employee layoffs
equipment’s
 Improve quality of health care
services
 Renovation and expansion of
building
3. Give your proposed solutions/interventions and alternative courses of action

(minimum of 3) to help St. Andrew’s Hospital overcome this problem.
An employer must next determine which strategies would best address its situation after
examining the hospital downturn, the BOD's suggestion of layoffs up to 25%, the
expected period of the strategy to be followed, calculating the expenses and savings,
and taking any potential legal repercussions into account.
a. Engage with employees to get their ideas and win their support.
To inform the workforce about the situation the business is in and perhaps discuss
potential alternatives to layoffs, there must be some sort of communication. When their
jobs are immediately at stake, employee communication frequently offers creative
solutions, but morale will be boosted by management's show of confidence in the
workplace.
b. Internal shift and hiring freeze to fill vacant positions
Employers frequently fill open positions while also making substantial layoffs, which
may appear ironic. Savings can be achieved while also raising morale by simply putting
a freeze on all hiring and then moving personnel internally to cover all functions. In this
approach, headcount can be decreased while still benefiting from low risks and
expenses and posing less of a threat to worker morale.
c. Make sure the decision-making processes are respected and considered fair.
When employees are laid off, the procedure should be sufficiently justifiable. Employees
who are laid off tend to submit fewer claims of unfair termination and exhibit less
voluntary turnover among the surviving staff when they believe that downsizing
procedures are fair.
d. Be open and honest about the challenges the organization is now facing and how
those challenges may affect the workplace.
The truth is something that employees like to hear, especially from top management like
the CEO, delivering frequent updates, at least once every four weeks, that include
information on the company's current business strategy, net income, sales growth over
the previous year, and long-term goals.
e. Be able to justify the layoff.
Before laying off employees, a company must prove that it has been experiencing a
financial loss for multiple quarters, not merely a generic perception that the economy is
weakening. When dealing with their employees and informing them of their layoff plan,
they should conduct themselves professionally.
4. State your recommendations base on your ACA

 Cut temporary staff
 Offer voluntarily retirement
 Cut salaries
 Freeze hiring
 Reduce work hours and eliminate overtime to lessen the expense of salaries
 Reduce or suspend matching contributions to company-sponsored savings plan
 Raise employee contribution to benefits plan
 Postpone or eliminate bonuses
5. Provide a conclusion/detailed action to implement your recommendations using the
guide below:
Specific Activity Person Time Frame Budget
Responsible Requirement
Working Attitude and Value
Enhancement
 Identify departments
and functions that
are strategically
important, as well as Human As soon as
the essential Resource possible
employee skill sets Department
for the future.
 Identify the criteria
Top Paid salaries for
that correspond to As soon as
Management meeting the top
valid business possible
and HR Manager management
requirements.
 Document the Every process
criteria and HR employees should be
processes used. documented
 Conduct analysis to
make sure that
members of
designated groups
are not being
affected Human
Resource Payment for the
disproportionately
Department attorney
by layoffs, and have
all analysis and
documentation
evidence verified by
an attorney.

Case Study - Hospital

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“Employee Layoffs at St.

Andrew Medical Center”

3. Give your proposed solutions/interventions and alternative courses of action

4. State your recommendations base on your ACA

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