Essays on Downsizing at St Bedes Hospital Case Study

Download full paperFile format: .doc, available for editing

The paper “ Downsizing at St Bede’ s Hospital” is an engrossing example of the case study on human resources.   The aim of this report is to establish ways of saving money and taking due consideration to employee capabilities and welfare. The management of St. Bede’ s hospital has a daunting task of balancing organizational objectives to market dynamics which have forced major unfavorable changes to be considered and implemented. The hospital management will have to contend with the new bargaining arrangement that came into force on 1st July 2010, with a strong emphasis on enterprise-based bargaining.

According to the Fair Work Act (2009), this supersedes the previous individual arrangements dominant when the hospital was under the coalition Work Choices legislation which was removed. Doing layoffs or downsizing by St. Bede’ s hospital is a toxic solution. Though the hospital can get along with it in the short run as an organizational lifesaver, repeated use of these layoffs without a thoughtful strategy destroys the organization's effectiveness. Sister Mary Josephine knows that treating her employers well really matters especially to those who leave and who remain. One downsizing outcome should be the preservation of the Hospitals intellectual capital.

According to a study by Cameron et al  (1991),   downsizing should consider the organization's goals, beliefs, philosophy, and culture. He concluded that downsizing was an affirmative and necessary approach to become more competitive, and appropriate response to disproportionate growth in the workforce. All the hospital departments are six; Nursing, Allied Health, Central Admin, Dietetics/Nutrition, Housekeeping/Maintenance, and Medical staff. The hospital will have to lay 10% of all the departmental staff. The current payroll is $30million so reducing the number of employees by 10% will have saved the hospital more than 3million in salaries.

This will mean reducing the size of each department by 1.8%. Hospital management should establish other options such as reducing benefits or cutting wages before downsizing employees. This is because it affects the Hospitals ability to handle increases in service demand. Receiving a surge in customer treatment and consultations is part of recovering from slow economic times.



Armstrong-Stassen, M 1993, Survivors’ reactions to a workforce reduction: A comparison of blue-collar workers and their supervisors, Canadian Journal of Administrative Sciences 10 (4), pp. 334-343.

Cameron, K S, Freeman, S J, & Mishra, A K 1991, Best practices in white-collar downsizing: Managing contradictions, Academy of Management Executive 5(3), pp. 57-72.

Colling R & Dickens A B 2009, Fair Work and the Re-regulation of Collective Bargaining, Australian Journal of Labour Law, 22 (3), pp. 284–305.

Cooper, R 2009, The 'New' Industrial Relations and International Economic Crisis: Australia in 2009. Journal of Industrial Relations. Vol. 52, No. 3. pp. 261–74.

Downs, A 1998, The Seven Miracles of Management, Prentice Hall

Greengard, S 1993, Don’t rush downsizing: Plan, plan, plan, Personnel Journal 72(11), 64-76.

Hamel, G & Prahalad, C K 1994, Competing for the future, Harvard Business Review, pp. 122-128.

Mohrman, S A & Mohrman, A M 1983, Employee involvement in declining organizations, Human Resources Management Journal, 22(4), pp. 445-465.

Petruno, T (December 19 1996), Has ‘greed’ supplanted ‘shareholder value’? Los Angeles Times.

Rousseau, D 1995, Psychological contracts in organizations: Understanding written and unwritten agreements, Thousand Oaks, CA: Sage.

Schein, E 1992, Organizational culture and leadership. San Francisco: Jossey-Bass.

Sheldon, P 2008, What collective bargaining future for Australia? Lessons from international experience. In J. Riley and P. Sheldon (eds), Remaking Australian Industrial Relations (pp. 235–48).

Sutton, R I & D’Aunno, T 1989, Decreasing organizational size: Untangling the effects of money and people, Academy of Management Review 14(2), pp. 194-212.

Tomasko, R M 1990, Downsizing: Reshaping the corporation for the future. New York: AMACOM.

Waterman, R , Waterman, J & Collard, B 1994, Toward a more career-resilient workforce, Harvard Business Review, pp. 87-95.

Download full paperFile format: .doc, available for editing
Contact Us