Case Study On HR Planning
(HR Planning)
Employee Layoffs at Sta. Filomena District Hospital
(adapted with revisions for class purposes)
St. Felomina District Hospital is a medium-sized, 500-bed hospital in the Province of Agusan.
It was established in 1968. The facility has grown gradually over the years and is now the largest hospital in the province. It has never experienced an employee lay-off since its inception.
Dr. Mides Ignacia has been the Hospital Director 15 years. She hired Tess Bernales as
Director of Human Resources 13 years ago. Ms. Bernales has an MBA-Human Resources
Management from Winston Churchill University and has been instrumental in formalizing the institution's human resources' policies and procedures.
Occupancy rates in the hospital had run between 76 and 82 percent from 1987 to 2012.
However, since then, occupancy has fallen to 57 percent. Such declines have not been unusual for this industry during this period due to the emphasis of on outpatient services and increasing competition. However, the declining occupancy rate has affected this hospital revenues to such an extent that it ran a deficit for the first time last year. The only response to these changes thus far has been a tightening of requirements for equipment or supply purchases.
At the most recent quarterly meeting of the Board of Directors on July 31, 2013, Dr. Mides
Ignacia presented the rather bleak financial picture. The projected deficit for 2013 was PhP
3,865,000.00 unless some additional revenue sources were identified or some additional savings were found. The Board's recommendation, based on the immediate crisis and need to generate short-term saving, was that employee layoffs were the only realistic alternative. They recommended that Dr.
Mides Ignacia consider laying-off up to 10 percent of the hospital's employee's with an emphasis on those in “non-essentials” areas.
Dr. Ignacia responded that the hospital employees had never been laid off in the history of the institution. Moreover, she viewed
Employee Layoffs at Sta. Filomena District Hospital
(adapted with revisions for class purposes)
St. Felomina District Hospital is a medium-sized, 500-bed hospital in the Province of Agusan.
It was established in 1968. The facility has grown gradually over the years and is now the largest hospital in the province. It has never experienced an employee lay-off since its inception.
Dr. Mides Ignacia has been the Hospital Director 15 years. She hired Tess Bernales as
Director of Human Resources 13 years ago. Ms. Bernales has an MBA-Human Resources
Management from Winston Churchill University and has been instrumental in formalizing the institution's human resources' policies and procedures.
Occupancy rates in the hospital had run between 76 and 82 percent from 1987 to 2012.
However, since then, occupancy has fallen to 57 percent. Such declines have not been unusual for this industry during this period due to the emphasis of on outpatient services and increasing competition. However, the declining occupancy rate has affected this hospital revenues to such an extent that it ran a deficit for the first time last year. The only response to these changes thus far has been a tightening of requirements for equipment or supply purchases.
At the most recent quarterly meeting of the Board of Directors on July 31, 2013, Dr. Mides
Ignacia presented the rather bleak financial picture. The projected deficit for 2013 was PhP
3,865,000.00 unless some additional revenue sources were identified or some additional savings were found. The Board's recommendation, based on the immediate crisis and need to generate short-term saving, was that employee layoffs were the only realistic alternative. They recommended that Dr.
Mides Ignacia consider laying-off up to 10 percent of the hospital's employee's with an emphasis on those in “non-essentials” areas.
Dr. Ignacia responded that the hospital employees had never been laid off in the history of the institution. Moreover, she viewed