Managing Organizational Growth During a Time of Downsizing

The current situation is that the organization has lost its funding and is forced to downsize its operations and employees. In order for the hospital to remain competitive, it needs to implement strategies that would reduce its current expenditures and increase revenues. There have been recommendations made by consultants hired by the President. The recommendations made are reducing staff, no annual increases, closing of one emergency room, stopping new hiring's, and closing the hospital's public programs. The hospital CEO has requested that all department heads need to implement cost cutting measures within their department and they have to increase their patient base by 20% in the next six months while reducing their annual budget by 10%. Sullivan, the President, and CEO of the hospital, has requested all department heads to develop a strategic plan in the next one month detailing how they will implement the proposed changes. According to the CEO, there is a need for the hospital staff to start doing more with less. This would allow the hospital to address their current financial situation.

The issues at stake currently have to do with the Department of Psychiatry. It looks like the department is the hardest hit with the loss of funding from the state. The department has undergone numerous changes over the years all that had to do with the downsizing of its services and employees. The changes requested currently are not putting into focus the changes the department has undergone... Already there is a high turnover of employees, and there has been a loss of morale amongst the employees. The department head feels that the requested changes will have a negative impact on the department and he is not mistaken. The case does highlight how different employees are feeling in regards to the new changes. The employees within the department are stressed, and they are angry. They have not been working together as a team, and most of them are seeing each other as rivals. Department employees are working against each other, and some of them have even gone as far reporting each other to the HR. The department needs to establish teamwork amongst the employees within the department. Since there is no possibility of hiring additional employees and the department has to increase the number of patients' teamwork will be the only way the department can manage to achieve this strategy. There is need to build trust amongst the team members, which is currently lacking. With trust, long lasting relationships can be developed, and this would result in greater commitment towards the hospital in the long-term.
Leon should communicate the strategy to employees by using different methods of communication. He should not solely rely on written communication, but rather a mix of written and verbal communication. He should also avoid sending out a long email because there are employees who do not read long emails. Different employees have different learning techniques. Therefore, a mix of video, audio, visual, and written communication should be…