The Operation of Medictest Laboratories - Case Study Example

?MEDICTEST LABORATORIES   Executive Summary The case talks about creating a plan that would consider employees’ morale, productivity and motivation within Medictest Laboratories, a group of testing centers with satellite branches in Sarnia, Ontario under the supervision of a regional manager Jean Kelly. This is due to the government’s idea of a budget cut to the Ontario Health Insurance Plan (OHIP). As a result to this, the said testing centers need to cut cost in their operation. In particular, Medictest Laboratories in Sarnia, Ontario decided to redesign structure and pursue on empowerment. This means eliminating some of their best supervisors they have worked with for many years. The decision is final and the only way to settle this issue is through having the right communication process. A formal general meeting with the supervisors together with their chosen staffs should be conducted. In line with this, the information regarding some external factors may be well explained. Furthermore, the reason why there is a need to cut off and absorbed employees will be clearly discussed in detail. This has to be done by the Human Resources department to be backed up with the head office. In order to remarkably consider employees’ morale, productivity and motivation, it is good that the company will start informing the employees with their performance and appreciating them of a job well done if necessary. Furthermore, the company should continue enhance technical and leadership skills of the chosen supervisors as a way of empowering them and as a way to cope with the new company system structure. Problem Statement The case talks about the need to streamline the operation of Medictest Laboratories, a group of testing centers with satellite branches in Sarnia, Ontario under the supervision of a regional manager Jean Kelly. Due to the government’s idea of a budget cut to the Ontario Health Insurance Plan (OHIP), the said testing centers need to cut cost in their operation. In particular, Medictest Laboratories in Sarnia, Ontario decided to redesign structure and pursue on empowerment. This would mean coming up with few supervisors and empower them to work effectively and efficiently with the new system structure. However, this is not an easy thing task to do because with these changes are foreseen remarkable impacts on employees’ morale, productivity and motivation. Problems/Subproblems/Issues Jean wanted to create a plan that would consider employees’ morale, productivity and motivation. Thus, the heart of the said issue significantly concerns the following specific questions stated in the case: 1. How should the changes be conveyed to the supervisors leaving, to those who are staying, and to the staff? 2. Where should the discussion be held? 3. Who should communicate the decisions? 4. In what sequence? 5. What should be the physical set up? 6. How should head office be involved? Analysis The case of Medictest Laboratories in Sarnia, Ontario is a remarkable proof that the external environment has significant impact on an organization’s success. The budget cut that has to be implemented by the government is a significant external force that eventually would affect Medictest’s system structure. Although it is an integral part of its success, this is beyond the control of a business firm and it has nothing to do about it. What it can actually do with this is to consider its internal environment where it has substantial influence and this remarkably includes its human resource. The human resource is something that Medictest can influence in the midst of some impacts brought about by its external environment (Berger 2). The only way to influence the human resource is to create some changes within the firm and in the case of Medictest, its essential point would be to streamline its operation and move forward to empowerment of its personnel. This is the very core of the challenge that the said company must face. At this very point, the firm must choose the best among the best and it has specific criteria that need to be followed. In fact, Jean decided to retain supervisors with core technical competencies and appropriate leadership skills. Although the case stated that Medictest’s current supervisors are competent enough, the point is clear that those who can remarkably adapt to the new system structure are most preferable. This shows the fact that Medictest is just like hiring personnel that it must essentially address the following concerns. The first concern is to make it clear to its employees that there are external forces that move beyond the firm’s control, but the sad reality about it is that it can substantially create substantial impact on the company. Regarding this, the move to restructure the system would not be difficult to understand although it is not an assurance that specific level on employees’ morale, productivity and motivation will still be preserved. These aspects are highly influenced by human relations as stated in the human relations theories (Ashman and Hull 132). It is therefore important that the Human Resource department will strategically create moves that are said to take higher consideration on employees’ morale, productivity and motivation in great detail. As stated in the case, supervisors as well as their staffs are in anxiety and the only way to control this is through understanding important aspects in human relations. One important aspect is effective communication. The only way to do this is to understand what significant problems that may hinder good communication process (Griffin and Moorhead 300). In the case of Medictest, anxiety among its personnel brings significant contribution to their incapacity to understand the company’s stand on certain issue. It could be that employees will be preoccupied with the thought of losing their jobs if the right communication with them regarding the whole situation will not be properly explained. The second point is to establish the fact that the company needs to hire new set of employees from its existing supervisors, particularly those with core technical competencies, and appropriate leadership skills. This remarkably talks about the basic of hiring process. The hiring process is one of the Human Resources department’s integral parts of its role (Barker 82). Part in this activity is to consider the important qualifications of an employee prior to hiring. In fact, a certain job would require significant requirements or criteria that those who possess them have the chance to be chosen. This is part of the employment process and in the case of Medictest, selection and placement need to be initiated (Riccucci 249). In the case of Medictest, the employees to be hired are already part of the company so the Human Resources department would not be having hard time choosing the best person for the job. Remarkably, Jean would be able to help the Human Resources department because she actually got the required information about each of supervisor’s performance with the company. Some of them have been working in the company for 18 years and perhaps it would be important to include in the hiring criteria the span of service of the candidates. What is important in this case especially in hiring or selection process is to remarkably inform the basic criteria or requirements needed regarding the firm’s idea of restructuring its system and empowerment of its personnel. Alternative Analysis At this point it is important to understand alternative courses of actions based on the following issues stated above. 1. How should the changes be conveyed to the supervisors leaving, to those who are staying, and to the staff? 2. Where should the discussion be held? 3. Who should communicate the decisions? 4. In what sequence? 5. What should be the physical set up? 6. How should head office be involved? The first alternative course of action regarding this matter would be to allow the employees know everything when the new structure is already implemented. The advantage for the mean time of this approach is to give everyone a chance to work as how they do in a regular manner. However, knowing that there was a hint of information on the change of system structure and speculations among employees, this approach may just leave many questions among employees regarding the company’s decision. At this point, employees may not be given the right perspective regarding the company’s approach or related steps. As stated earlier, the right communication process is a must. The changes within the company’s system structure must be conveyed through a formal general meeting with the supervisors together with their chosen staffs. In line with this, the information regarding some external factors may be well explained. Furthermore, the reason why there is a need to cut off and absorbed employees will be clearly discussed in detail. There are many good places to choose as to where the discussion should take place. One important consideration is to consider focus among concerned employees and ensure effective communication process. The decisions would be better understood if it has to be explained by the Human Resources department in the sequence starting from external forces currently affecting the firm and the discussion on what basis employees to stay with the firm were evaluated. This set up may be good if the company will discuss its point first and later allow employees to raise important points. The Human Resources department should be backed up with the head office. The ultimate disadvantage or risk about this set up would be poor dissemination of information and achieving negative reaction from the employees if it is done through a poorly structured communication process. Decision/Recommendation A general meeting involving concerned personnel should be initiated with excellently structured communication process. This will give the concerned employees chance to think that the company is just doing the right thing and in the right process. For the mean time, it is good that the company will start informing the employees with their performance and appreciating them of a job well done if necessary. This is a way of giving them the chance to prove their worth and at the same time giving their best shot for the company. The long-term recommendation would be to continue enhance technical and leadership skills of the chosen supervisors as a way of empowering them and as a way to cope with the new company system structure. In fact, the only way that all of them will be given equal chance to be absorbed is to undergo further training as a way to find out who among them has technical competencies and promising and appropriate leadership skills. All of these would remarkably consider employees’ morale, productivity and motivation since at this point they would feel they are valued. References Ashman, Karen K. Kirst Jr., and Grafton H. Hull. Generalist Practice with Organizations and Communities. 5th ed. California: Cengage Learning. Barker, Kathy. At the helm: a laboratory navigator. New York: CSHL Press. Berger, Alexander. Contemporary Development in Business and Management. Norderstedt: GRIN Verlag. Griffin, Ricky W., and Gregory Moorhead. Organizational Behavior: Managing People and Organizations. 9th ed. Ohio: Cengage Learning. Reid, Francis. The stage lighting handbook. 4th ed. London: A & C, 1992. Riccucci, Norma, Katherine C. Naff, Jay M. Shafritz, and David H. Rosenbloom. Personnel management in government: politics and process. Pennsylvania: CRC Press. Read More