,HRM3701 Assignment 2 (100% COMPLETE ANSWERS)
Semester 1 2025 (340554)- DUE 27 March 2025; 100%
TRUSTED Complete, trusted solutions and explanations
ALL QUESTIONS ANSWERED CORRECTLY
Employee layoffs at Hope Regional Medical Centre Hope
Regional Medical Centre is a medium-sized, 400-bed hospital in
Johannesburg. It was established in 1908 by a group of doctors.
The facility has grown gradually over the years and is now the
third largest medical facility in the city. It is entirely nonunion
and has never experienced an employee layoff since its
inception. Robert Perry has been the CEO of the Hope Regional
Medical Centre for 11 years. Eight years ago, he hired Sharon
Dlamini as director of human resources. Dlamini has an MA in
Human Resource Management and has been instrumental in
formalising the institution's human resources’ policies and
procedures. Occupancy rates in Hope Regional Medical Centre
ranged between 76 and 82 percent from 1990 to 2002. However,
since then, occupancy has fallen to 57 percent. This decline has
been experienced throughout the industry and is the result of
changing reimbursement policies, emphasis on outpatient
services, increasing competition, and the financial meltdown of .
The declining occupancy rate has affected this hospital's
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,
Perry presented the rather bleak financial picture. The projected
deficit for the coming year was R3,865,000, Unless some
,additional revenue sources were identified or some additional
savings were found. The Board's recommendation, based on the
immediate crisis and the need to generate short- term savings,
was to lay off employees. They recommended that Perry
consider laying off up to 10 percent of the hospital's employees
with an emphasis on those in “nonessential” areas. Perry
responded that the centre’s employees had never been laid off in
the history of the institution. Moreover, he viewed the
employees as “family” and would have great difficulty
implementing such a layoff. Nevertheless, since he had no
realistic short-term alternative for closing the “revenue gap”,
Perry reluctantly agreed to implement a layoff policy that would
be as fair as possible to all employees, provide a guarantee
agreement requirement for those laid off, and find additional
revenue sources so that layouts would be unnecessary in the
future. Perry then called Sharon Dlamini into his office the next
morning, shared his concerns, and asked her to prepare both a
short-term plan to save R 3,000,000 over the next year through
staff layoffs, as well as a long-term plan to avoid layoffs in the
future. Dlamini’s concerns were that the layoffs themselves
might be costly in terms of lost investment in some of the laid
off employees, higher turnover costs, lost efficiency, potential
lawsuits, and lower morale. She was concerned that the criteria
for the layoffs not only be equitable but also appear to be
equitable to the employees. She also wanted to make sure that
those being laid off received “adequate” notice so that they
could make alternative plans or so the hospital could assist them
with finding alternative employment. Since the hospital had no
previous experience with employee layoffs and no union
, contract constraints, her feeling was that both seniority and job
performance should be considered in determining who would be
laid off. Dlamini knew the hospital's performance appraisal
system was inadequate and needed to be revamped. While this
task was high on her “to do” list, she also knew she had to move
ahead with her recommendations on layoffs immediately. The
present performance appraisal system is a traditional checklist
rating scale with a summary rating since there is no forced
distribution, the average ratings of employees in different
departments vary widely. Table 1 shows the summary ratings of
employees in each department. Most supervisors across all
departments rate many of their subordinates either “satisfactory”
or “outstanding”. Dlamini has done a quick review of those
employees whose overall ratings were “unsatisfactory” or
“questionable”. Most are employees with less than three years of
seniority, whereas the “satisfactory” employees have worked in
an average of seven years for Hope Regional Medical Centre.
Table 2 provides a summary of the distrib
1: Percentage Distribution of Performance Appraisal Summary
Ratings by Department in Hope hospital Department
Unsatisfactory: Needs to Improve Substantiality Questionable:
Needs Some Improvement Satisfactory: Meets Normal
Expectations Outstanding: Substantially Exceeds Norms
Nursing 6.4 6.4 54.2 33.0 Allied Health 5.7 6.2 47.8 40.3
Central Administration 2.7 3.1 67.5 26.7 Dietetics/Nutrition 2.1
6.2 68.3 23.4 Housekeeping/Maintenance 7.8 12.4 54.6 25.2
Medical Staff 1.1 6.2 63.8 28.9 Table 2: The Distribution of
Employment and Payroll Expenditures at Hope hospital
Semester 1 2025 (340554)- DUE 27 March 2025; 100%
TRUSTED Complete, trusted solutions and explanations
ALL QUESTIONS ANSWERED CORRECTLY
Employee layoffs at Hope Regional Medical Centre Hope
Regional Medical Centre is a medium-sized, 400-bed hospital in
Johannesburg. It was established in 1908 by a group of doctors.
The facility has grown gradually over the years and is now the
third largest medical facility in the city. It is entirely nonunion
and has never experienced an employee layoff since its
inception. Robert Perry has been the CEO of the Hope Regional
Medical Centre for 11 years. Eight years ago, he hired Sharon
Dlamini as director of human resources. Dlamini has an MA in
Human Resource Management and has been instrumental in
formalising the institution's human resources’ policies and
procedures. Occupancy rates in Hope Regional Medical Centre
ranged between 76 and 82 percent from 1990 to 2002. However,
since then, occupancy has fallen to 57 percent. This decline has
been experienced throughout the industry and is the result of
changing reimbursement policies, emphasis on outpatient
services, increasing competition, and the financial meltdown of .
The declining occupancy rate has affected this hospital's
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,
Perry presented the rather bleak financial picture. The projected
deficit for the coming year was R3,865,000, Unless some
,additional revenue sources were identified or some additional
savings were found. The Board's recommendation, based on the
immediate crisis and the need to generate short- term savings,
was to lay off employees. They recommended that Perry
consider laying off up to 10 percent of the hospital's employees
with an emphasis on those in “nonessential” areas. Perry
responded that the centre’s employees had never been laid off in
the history of the institution. Moreover, he viewed the
employees as “family” and would have great difficulty
implementing such a layoff. Nevertheless, since he had no
realistic short-term alternative for closing the “revenue gap”,
Perry reluctantly agreed to implement a layoff policy that would
be as fair as possible to all employees, provide a guarantee
agreement requirement for those laid off, and find additional
revenue sources so that layouts would be unnecessary in the
future. Perry then called Sharon Dlamini into his office the next
morning, shared his concerns, and asked her to prepare both a
short-term plan to save R 3,000,000 over the next year through
staff layoffs, as well as a long-term plan to avoid layoffs in the
future. Dlamini’s concerns were that the layoffs themselves
might be costly in terms of lost investment in some of the laid
off employees, higher turnover costs, lost efficiency, potential
lawsuits, and lower morale. She was concerned that the criteria
for the layoffs not only be equitable but also appear to be
equitable to the employees. She also wanted to make sure that
those being laid off received “adequate” notice so that they
could make alternative plans or so the hospital could assist them
with finding alternative employment. Since the hospital had no
previous experience with employee layoffs and no union
, contract constraints, her feeling was that both seniority and job
performance should be considered in determining who would be
laid off. Dlamini knew the hospital's performance appraisal
system was inadequate and needed to be revamped. While this
task was high on her “to do” list, she also knew she had to move
ahead with her recommendations on layoffs immediately. The
present performance appraisal system is a traditional checklist
rating scale with a summary rating since there is no forced
distribution, the average ratings of employees in different
departments vary widely. Table 1 shows the summary ratings of
employees in each department. Most supervisors across all
departments rate many of their subordinates either “satisfactory”
or “outstanding”. Dlamini has done a quick review of those
employees whose overall ratings were “unsatisfactory” or
“questionable”. Most are employees with less than three years of
seniority, whereas the “satisfactory” employees have worked in
an average of seven years for Hope Regional Medical Centre.
Table 2 provides a summary of the distrib
1: Percentage Distribution of Performance Appraisal Summary
Ratings by Department in Hope hospital Department
Unsatisfactory: Needs to Improve Substantiality Questionable:
Needs Some Improvement Satisfactory: Meets Normal
Expectations Outstanding: Substantially Exceeds Norms
Nursing 6.4 6.4 54.2 33.0 Allied Health 5.7 6.2 47.8 40.3
Central Administration 2.7 3.1 67.5 26.7 Dietetics/Nutrition 2.1
6.2 68.3 23.4 Housekeeping/Maintenance 7.8 12.4 54.6 25.2
Medical Staff 1.1 6.2 63.8 28.9 Table 2: The Distribution of
Employment and Payroll Expenditures at Hope hospital
