Case 4.10

Business and Marketing Name: Course: Professor Name: (October 05, 2011) Executive Summary When there are financial crises, most organizations tend to find solutions that would ensure their survival in business as well as that can ensure maximum profits and good services. Medictest laboratory is a profit-making company with strongholds in Ontario and with branches in the larger Canada. The Company is well known for good decision making and one that derives pride from its high quality employees. It receives orders from public medical institutions and other private bodies; clients from government institutions have part of their testing bills subsidized by the government though an insurance plan. Increased populations and poor economic times make lead to the government`s decision of reducing the amounts of subsidies given to Meditest and other laboratories hence the labs are expected to work within tight budgets and also make profits. As a result, Medictest directors decide to delegate powers to Jean Kelly, the manager of South-Western Ontario to come up with new structures that can ensure empowerment, good leadership, cost-effectiveness and maximum profits for Sarnia laboratory which is more like the heart of Medictests business activities. Jean comes up with a structure that has to involve downsizing of employees; the structure is accepted by the directors and human resource managers at the head office. The major challenge lays on how to relay the message to the employees on who is leaving and those that survive without causing heartache to either of the groups. This paper will examine this case study in details; try to look at problems that may exist as a result of the restructuring process, discussion of the problems using relevant theories and possible alternatives and recommendations. Problem Statement The manager of South-Western Ontario region Medictest Laboratory, Jean Kelly has been given the responsibility to come up with a revised structure that would ensure the Sarnia laboratory performs well in terms of services offered to clients, profit margins and general competitiveness in the market despite meager resources from the government. Jean is able to come up with a new structure that will involve disposal of some of the supervisors-at least five; during the process of selecting new supervisors for the new structure, some staff and supervisors happen to have a glimpse of what would soon happen in the laboratory and this knowledge increases tension among the workers. The main problem is how Jean will come up with a plan that will clearly be understood by everyone and that will work out without affecting the performance of employees; the plan will include how to break the ice to the team officially on who will be leaving and who will stay, where the meeting will be held, who will convey the message and in what format, how the head office will participate among others issues. Problems, Sub-Problems/Issues 1 Merging of departments This will mean that new staffs have to integrate with others they have not worked with before and there can be anticipated new challenges in the new work environments. On the other hand, the appointed supervisors will definitely have a doub...