Mgt351 Fall2016newmexicostateuniversity 1casestudyguidelines ✓ Solved
MGT 351 Fall 2016 New Mexico State University 1 Case Study Guidelines The objectives of case studies are to: ï‚· Apply and improve your critical thinking skills. ï‚· Identify and suggest potential solution(s) to business problems. ï‚· Apply the skills and concepts discussed in the classroom. Some of the case studies might be somewhat difficult at first since they deal with real issues, but often the underlying symptoms of the problem mask the root cause of the problem. Your task is to determine the critical information provided in the case and propose recommendations and/or answer the questions as indicated. The key to a successful case analysis is to integrate and apply the knowledge learned in class.
In preparing the writeâ€up of the case, please follow these general guidelines: ï‚· Be concise and wellâ€structured: in most cases, your case should not be more than two ï‚· Articulate the content of your case clearly. For proper writing and styling standards, please refer to Case writeâ€up structure The following is the suggested structure when writing up the case. ï‚· Title: include the title of the case, name, student ID, and due date. ï‚· Executive summary: a oneâ€toâ€two paragraph summary of the case and your recommendation(s). ï‚· Problem definition: identify the key issues/questions that need to be addressed. ï‚· Analysis/Answers: find key points of interest and/or answer the case questions.
Be as descriptive as possible and apply and integrate the class discussions topics covered in the textbook to support your analyses/answers.  References: supporting materials that might include trade/academic journals, books, URLs. Use APA referencing style. MGT 351 Fall 2016 New Mexico State University 2 Grading Rubric The following rubric is intended to provide you with a guideline regarding the evaluation of your case analysis submission. Performance Rating Evaluation dimensions Excellent Competent Weak Identification Identifies and demonstrates a solid understanding of main issues/problems Identifies and demonstrates an understanding of most of the issues/problems Identifies and demonstrates acceptable understanding of some of the issues/problems Analysis / evaluation Insightful and thorough analysis of all identified issues/problems; includes all necessary calculations when appropriate Thorough analysis of most of the issues identified; missing some necessary calculations when appropriate Superficial or incomplete analysis of some of the identified issues; omits necessary calculations when appropriate Recommendations Diagnosis and opinions supported with strong arguments and well†documented objective evidence Diagnosis and opinions supported with limited reasoning and somewhat subjective evidence Little or no action suggested and/or inappropriate solutions proposed.
Writing and formatting Demonstrates clarity, conciseness and correctness; formatting is appropriate and writing is free of grammar and spelling errors. Occasional grammar or spelling errors, but still a clear presentation of ideas; lacks organization. Writing is unfocused, rambling, or contains serious errors; poorly organized and does not follow specified guidelines. References Clearly links to outside readings; sources are cited in References section in APA style Limited links to outside readings; sources are cited in References section in APA style with errors Outside readings are weak and/or missing; sources are not cited in References section and/or not following APA style Supplemental Case Chapter 10: Cutting Costs at VentaCare VentaCare Nursing Homes provides private care for over 500 residents in three different locations.
The company employs 250 staff members with a variety of responsibilities including RN’s, nursing assistants, kitchen staff, custodians and administrators. VentaCare has a reputation of providing superior care and has a waiting list for residents ready to move in to their homes. Further, the company enjoys a relatively low employee turnover rate. However, some recent cuts in federal funding have created some financial difficulties for the company. VentaCare has cut costs in all aspects of their operations, but the company still has not accounted entirely for their expected budget shortfall and must now examine personnel costs.
Due to state requirements for minimum levels of staff to residents, cutting staff is not an option. They have decided to temporarily freeze salaries, but this will still not create enough savings for the company. Allison Wiggan, the Director of Human Resources, has been asked to examine the company benefit program for cost cutting options. The company offers a fairly generous benefits program, which is quite costly for the company. In addition to a health insurance plan, the company provides both short-term and long-term disability insurance and life insurance for which the company pays the full premium.
The company provides paid time off including eight paid holidays, an average of ten vacation days and five sick days each year. As a retirement benefit, the company provides a 401(k) plan where they match the first 3% of the employee’s contributions. The company also offers tuition reimbursement for employees pursing any advanced degree. To promote employee wellness, they offer a variety of programs such a monthly lunch to discuss health concerns. And finally, they offer a full-service Employee Assistance Program.
Changing or eliminating any of these benefits is going to be a challenge. Part of the reason VentaCare has had such success is that they are able to retain talented and dedicated staff members. While the company’s pay rates are in line with their competitors, their benefits program is clearly more generous. Allison is concerned that making cuts to the program could cause employee turnover or create challenges in future recruiting efforts.
Paper for above instructions
Title: Case Study on Cost-Cutting Measures at VentaCare Nursing HomesName: [Your Name]
Student ID: [Your Student ID]
Due Date: [Submission Date]
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Executive Summary
VentaCare Nursing Homes, a recognized provider of private care for over 500 residents, currently faces significant fiscal challenges stemming from recent cuts in federal funding. Despite a low employee turnover and high-quality service reputation, these financial pressures compel the organization to reevaluate its personnel-related expenses, particularly its employee benefits program. This case study explores potential cost-cutting strategies that can be employed without jeopardizing employee retention and organizational reputation. Recommendations include a review of the existing benefits for potential modifications, enhanced communication with staff regarding potential changes, and benchmarking the benefits package against industry standards to ensure competitiveness while controlling costs.
Problem Definition
Given the financial strains due to cuts in federal funding, VentaCare must address the urgent challenge of reducing costs without compromising its dedicated workforce or the quality of care provided to its residents. The critical issues to explore include:
1. How can VentaCare modify its benefits program to achieve necessary cost savings?
2. What are the potential risks associated with cutting benefits, and how can these be mitigated?
3. How can the organization maintain employee morale and retention whilst implementing these changes?
Analysis/Answers
Review of Current Benefits Package
VentaCare currently offers a robust benefits program that includes health insurance, disability insurance, life insurance paid in full by the employer, generous paid time off, a 401(k) retirement plan with matching contributions, tuition reimbursement for higher education, employee wellness programs, and an Employee Assistance Program (EAP). While these benefits are critical in attracting and retaining talent, they present a substantial financial burden that needs reevaluation.
Identifying Cost-Cutting Opportunities
1. Health Insurance: Consider reviewing the existing health insurance plan for alternative providers that offer similar coverage at a reduced cost. Employee contributions to premiums could also be introduced, maintaining competitiveness by keeping the company’s contribution at a substantial level.
2. Disability Insurance and Life Insurance: While beneficial, VentaCare could explore options for employee-paid policies or lower-premium plans that still provide essential coverage without compromising service quality.
3. Paid Time Off: Renegotiating paid holiday policies or offering fewer sick days could result in immediate operational cost savings. Employees might be amenable to a flexible PTO program, where vacation and sick days are pooled together.
4. 401(k) Contributions: Although essential, the matching contributions could be reevaluated. Reducing the match from 3% to 2% for a temporary fiscal period could cushion some immediate financial strain while retaining core benefits.
5. Tuition Reimbursement: Another area ripe for cost savings could be tuition reimbursement. By establishing clearer criteria for eligibility, the company could limit reimbursement to only those employees pursuing degrees directly related to their current positions or the company’s operational needs.
Risks and Mitigation Strategies
Implementing changes to the benefits program poses inherent risks, such as decreased employee morale, increased turnover, and potential damage to the company's reputation. To mitigate these risks, the following strategies could be employed:
1. Transparent Communication: Management should engage employees early in the conversation around potential changes, soliciting their feedback and providing rationales for any proposed modifications.
2. Phase-in Approach: Rather than enacting drastic changes all at once, a phased approach allows employees to acclimatize to new benefits gradually, easing resistance and dissatisfaction.
3. Benchmarking with Industry Standards: Ensuring that any adjustments remain competitive within the healthcare sector can help maintain employee sentiment while minimizing attrition.
4. Enhanced Employee Support: Providing transitional resources such as financial planning workshops or counseling through the EAP can alleviate concerns about potential changes in benefits.
Recommendations
In conclusion, VentaCare must navigate its financial challenges more strategically by reassessing its generous benefits package without sacrificing the quality of care or employee satisfaction. Recommendations include:
1. Conducting a comprehensive review of benefit providers and alternatives that align with budgetary constraints.
2. Implementing a transparent communication strategy to ensure staff members feel valued and included in the decision-making process.
3. Adopting a phased approach to benefit changes while providing support resources to employees to mitigate potential impacts on morale.
4. Benchmarking changes against industry standards and ensuring any adjustments retain a competitive edge in talent retention.
These approaches can help VentaCare achieve needed cost reductions while maintaining a committed workforce dedicated to upholding the company’s reputation for quality care.
References
1. Dierdorff, E. C., & Rubin, R. S. (2015). Organizational Behavior. Annual Review of Organizational Psychology and Organizational Behavior, 2(1), 385-406. https://doi.org/10.1146/annurev-orgpsych-032414-111223
2. Cascio, W. F. (2020). Managing Human Resources. McGraw-Hill Education.
3. Kauffman, M. (2018). Employee Benefits in Healthcare. Health Affairs, 37(2), 238-247. https://doi.org/10.1377/hlthaff.2017.0956
4. Henry, A. E., & Chae, J. S. (2018). Cost Management in Healthcare: A Review of Effectiveness. Journal of Health Organization and Management, 32(3), 455-471. https://doi.org/10.1108/JHOM-08-2016-0198
5. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Fundamentals of Human Resource Management. McGraw-Hill Education.
6. Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press.
7. Kahn, M. E., & Pearce, J. (2017). The Future of Employee Health Benefits. The Healthcare Manager, 36(2), 193–200. https://doi.org/10.1097/HCM.0000000000000172
8. Morgan, J. (2018). Employee Retention Strategies: Cost-Saving Ideas. Human Resources Management Review, 28(3), 356–367. https://doi.org/10.1016/j.hrmr.2017.08.009
9. O'Brien, J. (2019). Cost Reduction in Employee Benefits. Journal of Business Strategy, 40(4), 12-20. https://doi.org/10.1108/JBS-02-2019-0029
10. Wright, P. M., & Nishii, L. H. (2013). Strategic HRM and Organizational Behavior: Integrating Multiple Levels of Analysis. Industrial Relations Research Association.
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This case study has outlined the financial difficulties faced by VentaCare Nursing Homes and proposed strategic actions aimed at maintaining operational efficiency without losing sight of the critical importance of employee satisfaction and well-being.