Reference no: EM132750932

Case Study - Employee Layoffs at the University Medical Center

The University Medical Center is a medium-sized, 300 bed capacity hospital in Iligan City. The facilities have grown gradually over the years and considered one of the largest in the city. Although it is unionized, it has never experienced an employee layoff since its operation. Sister Lallaine Buenaobra, the Chief Executive Officer of the hospital for eight years, presented rather bleak financial picture during the most recent quarterly meeting of the board of directors or BOD.

This, according to her, is the result of the declining occupancy rate brought about by the opening of the biggest government hospital in the province. This has affected the income of the hospital posting a net loss in its latest income statement. Such declines have not been unusual for this industry because of increasing competition. So far, the only response to these changes has been a tightening of requirements for equipment and supply purchases. The projected deficit for the coming year is around P1,300,000.00 unless some additional revenues are identified or some additional savings found.

The BOD's recommendation is employee layoffs, which according to the board is the only realistic alternative. The recommend laying off is up to 25% of the hospital's employees. Melinda Dumael, the HR director of the hospital was given the task to implement the recommendation of the board. Help Melinda and Sister Lallaine solve this problem by following the steps:

1. State the main problem of the hospital

2. State the different areas of following the guide below. a. Strengths of the hospital b. Weakness of the hospital c. Opportunities d. Threats