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Management in Organizations

Management in Organizations

In April 1994, Jean Kelly, manager of the South-Western Ontario region of Medictest Laboratories, faced
a tough situation in Sarnia, Ontario. The Ontario government had imposed funding cutbacks to the
Ontario Health Insurance Plan (OHIP) for all testing centres in the province, creating a severe need for
cost cutting. Over the past two years, Medictest Laboratories had reduced costs by improving work-flow
efficiency. However, further cost reduction was necessary and required a review of the supervisory
structure. Jean had designed a new organizational structure that streamlined management and furthered
the company�s objectives for augmenting employee decision-making power, but this structure would
require the dismissal of five long-term supervisors. Jean wondered how to implement these changes

without a negative impact on morale, productivity, and motivation.



Management in Organizations

It is common for managers to face tough decisions as they exercise their roles. It is a good
characteristic of managers to be able to make the most appropriate decisions from such situation.
Implementation of changes could lead to adversities in business organizations and the process
should be carried out carefully. In the case of Medictest Laboratories, Jean is forced by shortage
of funds to cut off some of the staff. Among them are five supervisors, all noted to have helped
the company prosper in their respective departments. Definitely, the situation is not favorable for
the supervisors. Jean has to implement changes in such a way that the company retains a good
reputation of being considerate on the matters relating to its employees. In addition, it is hard to
ensure that the changes would not be accompanied with decline in Mediclabs’ economic
achievements. The supervisors had been competent in their work and their departure is likely to
severely affect productivity.
Being at the top management position, Jean has the responsibility to chair a meeting where the
communication would be made to all members of the staff. As Lipman wrote, a good manager
should communicate to the juniors confidently (2014, Pg. 2). In the communication, Jean should
first seek the understanding of all the members and therefore requires usingconvictive language.
It is likely that after all members have understood the situation, Jean would not hurt their dignity
in the implementation of the changes. Again, jean should recognize the great contributions made
by the entire staff and purposely emphasize on those of the leaving supervisors. The retained
staff should be encouraged to continue delivering and be advised to get prepared to take extra


responsibilities. By making an intelligent communication, Jean would enabled Medictest retain
its high-earned reputation of being people friendly and concerned with its employee’s welfare.
The manager should however, avoid any implication that the six selected supervisors were the
best as it would receive a bad response especially from the leaving group. Managers are required
to be intelligent when making critical communications.




LIPMAN, V. (2014).6 Fundamentals that can make you a Better Manager.

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