Part 2: Brief Case. Avoid the use of bullets or outline format. Attempt all the
ID: 345701 • Letter: P
Question
Part 2: Brief Case. Avoid the use of bullets or outline format. Attempt all the questions below. (16 marks) Case Hospital Merger Health sector reforms have a major impact on health organizations and the employees of organizations. General health reform on national level pushes health organizations towards change, for example with regard to increased attention for cost-effectiveness, service quality, safety, flexibility and innovation. Organizational change is most likely to affect employee outcomes with regard to employee commitmen Low employee employee t, satisfaction, motivation, job stress, trust, absence due to illness and turnover. morale, general employee dissatisfaction, lack of trust in management, high turnover levels and job stress can be the direct result of organizational change when the (inevitable) change itself is not managed properly.Explanation / Answer
1) Answer
Advantages of Merging of Top care & Saint John’s Hospital:
Saint John’s hospital is considered to be big in size when compared to Top care. As a result of which top care has the benefit of gaining good name & fame when merging with a big unit. Secondly saint john’s hospital employs 3000 people as a result of which all the employees of top care hospital are assured of their job safety and also many people can get employment opportunities.
As mentioned in the case, the hospital has a strong cultural heritage which many people would consider as a main thing.
Since the partnering company has a good presence in the market, Top care has the advantage of growing to greater heights.
Disadvantages of Merging of Top care & Saint John’s Hospital:
Though top care hospital is considered to be small when compared to Saint john’s, it is more innovative. As a result of which it can have even more good ideas in terms of management, new equipment for treatments. So there might be chances of these things coming down when a small organization gets merged with a big one
Saint john’s hospital has a strong catholic heritage. So this may be a new thing for top care. The top care organization & its employees must recognize the similarities and adjust with the differences for a successful merger.
Advantages of merging Top Care & Vitae Loenga:
Vitae Loenga is a complete health care organizationwhich provides home services for elder people. This seems to be a little different for top care hospital. So it has the chance of expanding its service to a new scenario.
Both the organizations operate in the same environment. So they seem to have a similar culture whci would be an added advantage for both the employees.
Vitae Loenga also has a good corporate culture because of many mergers and acquisitions and now top care has the opportunity to be included in the list.
Disadvantages of merging Top Care & Vitae Loenga:
Vitae Loenga looks like a small organization in size when compared to top care. They employ only 700 people. This will be a major drawback for top care employees job safety as they can accommodate 1000 employees.
Vitae Loenga focus majorly on elder care but top care is a complete hospital.so the line of service is different. They can be called as an old age home and not as hospital. As it is two different line of business there can’t be assurance for success of the merger.
Conclusion:
Top Care & Saint John’s hospital merger can have a competitive advantage compared to the other merger.
2) Answer
Potential impact of merger on employees:
change would be often difficult for the employees. There can be chances of more stress in the job.
Another impact would be fear of job loss (especially in the second option in the above case).
And when two organizations of different culture merge, there can be clashes among the employees. So it is the responsibility of the top management to take care of the interests of the employees
Competition is good in any organization. But if it is a negative competition, again it can lead to conflicts.
Strategic HRM practices:
Developing polices that are acceptable to employees of both the organizations.
Retaining key employees
Selecting capable, talented employees and downsizing.
Introducing attractive compensation strategies.
Creating employee benefits program.
The most important thing is to communicate each and every step I merger to the employees