PUJA SUBEDI

Human resources' overall purpose is to ensure that the organization is able to achieve success through
people. HR professionals manage the human capital of an organization and focus on implementing
policies and processes. They can specialize in recruiting, training, employee-relations or benefits,
recruiting specialists, find, and hire top talent. Training and development professionals ensure that
employees are trained and have continuous development. This is done through training programs,
performance evaluations and reward programs. Employee relations deals with concerns of employees
when policies are broken, such as in cases involving harassment or discrimination. Someone in benefits
develops compensation structures, family-leave programs, discounts and other benefits that employees
can get. On the other side of the field are human resources generalists or business partners. These
human-resources professionals could work in all areas or be labor-relations representatives working
with unionized employees.

The SUSWASTHYA Hospital has declined its occupancy rate to 57 % as a result of changing reimbursement
policies, emphasis on outpatient services, increasing competition and financial meltdown. The hospital was
also engaged in poaching doctors from abroad resulting huge amount of expenses but however lack proper
marketing plans. The declining occupancy rate has affected the hospital’s revenue to such extent that it ran
deficit. The Board’s recommendation, based on the immediate crisis and the need to generate short term
savings, was to lay off employees. And as per the situation the BOD have decided to lay off 10 nurses as
they thought it would be sufficient to save from immediate crisis . And it would not create additional
problem to them. However, the hospital had no previous experience with employee layoffs.

But the nurses however came to know about the information that they are being laid off and are very
aggressive to the administration. The administration fear it would bring negative impact to the hospital as
well as would be risky if proper criteria is not implemented.

The Top management has delegated the task to HR manager. The HR manager is now responsible to
make tough decision regarding the situation and implementing immediate strategy on the process of
employee layoff.