Case Study
“Outsourcing of Hospital Services”
1. In some instances the outsourced service occurs in a different location, while in others it takes place inside the organization doing the outsourcing, ad the food service did in this case. What advantages were there in having the outsourced work performed within the hospital? Suppose a different hospital outsourced its food service but decided not to have the work performed in- house. What might its rationale be? The advantages in having the outsourced work performed within the hospital were mostly related with the satisfaction of the workers, when the hospital outsourced its cafeteria food services; the employees felt a sense of ownership of their jobs and felt connected to the hospital because of the family atmosphere in the kitchen and cafeteria. When a different hospital outsourced its food service but decided not to have the work performed in-house then they might have to face a problem of employee turnover because the employees might lose the feeling of being connected to the work. Their interest in job will reduce which in future might lead to the problem of employee turnover which won’t be beneficial for the hospital
2. In the housekeeping situation, why not just forget about outsourcing, especially since the hospital ended up rehiring its employees anyways?
When the hospital tried the same thing with housekeeping, it didn’t work because employee turnover became a problem. After the investigation, they found out the reason for employee turnover which is, because of the housekeeping employees were more isolated in their work, they lost their feeling of being connected to the hospital they had. So, for the benefit of the hospital they ended up rehiring its employees using outsources company to manage housekeeping. These days financial pressures are not the only reason for the outsourcing, hospital executives are finding more reasons to consider outsourcing. The desire to focus on core competencies and the need
1. In some instances the outsourced service occurs in a different location, while in others it takes place inside the organization doing the outsourcing, ad the food service did in this case. What advantages were there in having the outsourced work performed within the hospital? Suppose a different hospital outsourced its food service but decided not to have the work performed in- house. What might its rationale be? The advantages in having the outsourced work performed within the hospital were mostly related with the satisfaction of the workers, when the hospital outsourced its cafeteria food services; the employees felt a sense of ownership of their jobs and felt connected to the hospital because of the family atmosphere in the kitchen and cafeteria. When a different hospital outsourced its food service but decided not to have the work performed in-house then they might have to face a problem of employee turnover because the employees might lose the feeling of being connected to the work. Their interest in job will reduce which in future might lead to the problem of employee turnover which won’t be beneficial for the hospital
2. In the housekeeping situation, why not just forget about outsourcing, especially since the hospital ended up rehiring its employees anyways?
When the hospital tried the same thing with housekeeping, it didn’t work because employee turnover became a problem. After the investigation, they found out the reason for employee turnover which is, because of the housekeeping employees were more isolated in their work, they lost their feeling of being connected to the hospital they had. So, for the benefit of the hospital they ended up rehiring its employees using outsources company to manage housekeeping. These days financial pressures are not the only reason for the outsourcing, hospital executives are finding more reasons to consider outsourcing. The desire to focus on core competencies and the need