The Human Cost of a Management Failure: Organizational Downsizing at General Hospital

By Seth Allcorn; Howell S.Baum et al. | Go to book overview
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Part II

The Downsizing

The General Hospital contracted with a consulting company to reduce the number of its employees to respond to what was thought to be a permanent 10 to 15 percent drop in hospital occupancy. Phase 1 of the consultation process (downsizing) was reasonably participative and took five months (May through September 1993). The reductions occurred October 1, 1993. The date of each interview is noted in the case. A hiring freeze during this period led to attrition. During this same period, the longstanding President of the University retired, and the Provost of the medical center began to hire a new layer of senior level executives (assistant provosts) to operate the medical center. Most of the interviews were conducted prior to the date that employees were terminated.

The reader is again reminded that the first six interviews (which are out of date order) have been selected as representative of the case in the event there is insufficient time to read all of the interviews. It is also again noted that all names and titles have been changed and that responses to questions were edited into a narrative.

-19-

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