Business Case: Health Care

Topics: Decision making Pages: 5 (1648 words) Published: November 22, 2011


Executive Summary
Medictest Laboratories is a clear-cut case of how to perform a dismissal without affecting productivity, morale and motivation. Jean Kelly is required to dismiss five long-term employees due to cost reduction. She must do this without major losses in productivity or morale. The head office and Medical Director approved the changes and dismissals, so Jean must go ahead with the dismissals, and do them according to the company’s values. These include: caring, showing genuine concern for others; respect for the individual; and mutual trust and openness. As the supervisors and employees are quite close, and there is a lot of anxiety and stress over the changes in both, she must exercise a lot of caution in the matter. Three alternatives discussed include individually asking the supervisors to be involved in the restructuring before they leave with the option to tell their own employees of the situation and what it means to them. The second involves notifying them by letter and escorting them off the property, with the new supervisor to tell the employees about the restructuring. The third is to have a group meeting discussing the changes and dismissals with all supervisors. The first alternative was chosen, as it was most in line with company values, and showed the most respect for the supervisors and what they had given to the company during their service. Jean and human resources will be ready for some loss in productivity and morale, but will work hard to boost morale after the dismissals and integrate the new supervisors with their new employees as soon as possible.

Problem Statement
Jean Kelly is responsible for dismissing five long-term supervisors at the Sarnia location of Medictest Laboratories in order to implement a new organizational structure she had designed herself. The supervisors were made aware that changes were being made and would affect their positions, and as the announcement of the changes was delayed, they became anxious and stressed. Other employees learned of the changes as well, and became concerned that their jobs might be in jeopardy as well. Jean must find a way to notify all the supervisors and staff of the changes without detrimentally affecting productivity and morale within the Sarnia location. Analysis and Sub-problems

Medictest considers employee development and advancement as quite important, and employees across the many different labs are familiar and close with one another. At the Sarnia location itself, many of the supervisors and employees have been working for almost 20 years since the subsidiary opened.

Jean faces problems, first and foremost, in choosing the correct supervisors for the new organization. She must select the people who were most appropriate for the new direction in which the company was heading. Jean did give the supervisors the option to take part in the restructuring, but they chose not to and to be notified of the changes after. They did not become aware that the changes would affect their positions until late into the analysis. The biggest implications for the supervisors are simple. Either they will be asked to stay or go, and if they stay, they will take on twice the workforce, with many employees that did not work under them before. For those who go, they will be offered a severance or retirement package, the details of which are unknown.

Jean completed her analysis with the knowledge of the supervisors, but without the knowledge of the other employees. They later found out about the upcoming changes. In addition to their knowledge of possible supervisory changes, they were aware of expansions underway at the London location, with increasing automation. The implication here is fear and anxiety for their jobs. The employees do not know how the...
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