Communicating During a Downsizing - Case Study Example

Communicating During a Downsizing Executive summary Following an impending downsize in our organization of 200 employees the main concern is to come up with a pan to address the issue while minimizing tension, and the down-time in the office. It is also significant to identify the methods of coping with post announcement effect on the employees as well as the hospital to maintain a positive image to all stakeholders. Most of the time is dedicated on finding best ways to meet the needs of those employees to be laid off. The image that will remain with the employees remaining about the hospital is of concern too. The desire is to make sure that the remaining employees see the laying off of their colleagues to have been a fair and an ethical step (Lehman & Dufrene, 2011). The slogan for the operation is “transformation with reaffirmation” meaning that change is inevitable but there is always a reason for it. Through a deep deliberation it is decided that the best method to inform the employees that they are being let go is the use of the face to face communication due to how serious the issue is. It is important to explain to the employees the need for change, the method of handling it, and the necessary support available to the hospital employees. Much control is to be given to the employees and for this reason the use of open communication. Employees willing to undergo early retirement are to forward their details. Basing on the respond the action can be taken to layoff those willing and save those willing to remain. Those laid off are to undergo counseling, attend workshops on resume building, issued with recommendations from the hospital, and anything that is of benefit to the career of the employee and life (Lehman & Dufrene, 2011). A clear timeframe for the layoff events is created so that everyone is aware of the sequence of events for the layoff. It helps in ensuring that everyone has the desired information about the process. A track record of how the employees are coping with the change is formulated through a series of records to ensure a seamless flow of events. It gives a control toll to help when need arises. However, the process is not expected to be definite as there is no easy layoff but the aim of the communication is to ensure that the employees understand the need for change. The plan is also to help the hospital maintain its reputation and do what it has do (Lehman & Dufrene, 2011). Analysis of the environment The hospital is faced with a situation where 200 employees out of 1500 should downsize. It is a fact that the hospital does not operate in isolation but in environment that needs consideration in effecting the step. The general public is another element to consider in effecting the issue. The government, the local community, the investors and other friends of the hospitals to be put into consideration (Clampitt, 2009). It is the task of the management to ensure that the process is carried out in a fair and an ethical manner. It is by the consideration of the operating environment (competitors, suppliers, customers, etc.) that the process can begin. The hospital management needs to ensure that there is minimum interference in the activities in the hospital that might arise due to down-time. The rising costs within the firm are also a factor within the hospital to consider. Another problem is ensuring that the information is communicated to the employees in manner that minimizes tension, friction and down-time. It is important that the information is communicated in a very clear manner and the decency of the hospital is maintained. The issue is very delicate because it is not a culture of any organization to fire its employees and also no employee expects to lose their job (Lehman & Dufrene, 2011). The layoff is to be done in a cross-sectional affecting the Internal environment (organization's finance, marketing, personnel, etc.). It is also important to come up with a clear strategy to implement the change using the available budget. The support to be offered to the affected employees should remain within the budget. Another issue is ensuring that by 30th the process should be completed and the hospital has completed the layoff process to concentrate on normal activities. Problem statement On analysis of the income statements of the hospital it has come to the knowledge of the management that cost of the firm is increasing. The increase in costs is paralyzing the delivery of quality and standard service to the dear customers of the hospital. Comparing the performance of our competitors it is evident that we need a competitive advantage to compete effectively. Being in the service industry the compensation package of our employees is majorly comprised of the service charge which increases with the increase in profits. For the last two years the service charge of our employees has dropped because the hospital has been making loses. It is the desire of the hospital to give the best to its employees and at the same time to the clients. This calls for change in the manner in which the hospital has been handling its affairs. Change is an inevitable phenomenon but we always strive to take advantage of any change. Alternative solutions to the high costs Downsizing the number of employees through an inclusive approach where the needs of the employees are considered. The strength of this alternative is giving the hospital employees control over the entire process. Another strength is that the benefits in the plan are open to all employees of the hospital. Also, there will be a seamless flow of events without affecting the operations of the hospital (assured by the work plan in the appendix). The weakness of this plan is that it will take more time due to the needed consultation. Before any employee is laid off those volunteering to retire early will have to be examined. Another weakness is people lose jobs, morale of hospital is lowered temporarily, and dissent among the remaining employees is probable, possibility that hospital’s credibility is damaged. Solution two Another possible solution to the hospital problem a slice in the income of the employee to the point whose value equal to laying off 200 employees. Weakness The living standards of the employees will be greatly affected affecting the job performance. Also, it might cause friction with the labor unions due to merger salary packages (Clampitt, 2009). Recommendation of the solution The company seeks to retrench 200 employees out of 1500 employees maintain the stands of the available workers. Further, an assistance plan is in pace for the all employees to ensure every worker is comfortable. Description of the solution (plan in the appendix) It necessary to cut costs of the hospital to achieve positive returns that accrues to all shareholders. The hospital has put in place strategies that are set to benefit all the employees as we adjust for the changes necessary. This is based on the fact that we value our employee more because they are responsible for the success of the hospital. On analysis of the cost elements that the hospital incurs, the wage bill forms a major component of the costs. There is going to be a well set out plan for a cross- section downsize in the number of employees with a package that is going to benefit all the employees (Clampitt, 2009). It is both a volunteer program as well as a tactical plan aimed at achieving the goals set by this activity. Much control is to be given to the employees and for this reason the use of open communication. Employees willing to undergo early retirement are to forward their details. Basing on the respond the action can be taken to layoff those willing and save those willing to remain. Those laid off are to undergo counseling, attend workshops on resume building, issued with recommendations from the hospital, and anything that is of benefit to the career of the employee and life. A clear timeframe for the layoff events is created so that everyone is aware of the sequence of events for the layoff. It helps in ensuring that everyone has the desired information about the process. A track record of how the employees are coping with the change is formulated through a series of records to ensure a seamless flow of events. There are identified employees willing to retire early who will be considered before any other employee is advised to leave work. On the tactical side it is important for the hospital to lay off the set number of 200 employees in the effort of implementing the needed change. However, there is no need for any employee to panic because the hospital will consider the effects of the move to the employees (Clampitt, 2009). An assistance program is in place to give help to any employee if need arises. Also, the time allowance for the process is large enough and it will be streamlined with the activities of the hospital. The process has a two months allowance period a time which the necessary adjustments will be implemented. After this briefing all employing are required to conduct their activities normally until advised otherwise. Summary of the analysis Laying off employees in the hospital to achieve positive results is not expected to be an easy task but can be made possible through the corporation of the employees with the management. The management has put in place an assistance plan to assists the affected employees but the palm also remains open to other employee. There was also an alternative of cutting the salary of the employee other than downsizing but due to statutory requirements it was not possible. The high hospital operating costs due to high wage bill informed the decision of the management (Clampitt, 2009). References Lehman, K. & Dufrene, W. (2011). Business communication. 6th edition. Cengage learning. Print. Clampitt, P. (2009). Communicating for Managerial Effectiveness. Sage Publications, Inc. Print. Appendix. Working plan to achieve the targets. Strategy: Tactics: Giving them notice, 2 months Notify employees 2 weeks in advance 200 employees Include facts: market data, politics, competitive information, economy Assistance plan. Package (outplacement services, job fair, counseling) 1,300 employee’s Information, economy. Changes will have to happen Retrenched employees The employees being affected have been notified Track record Identify deviations and offer needed help. Read More