Assignment 1
Assignment 1
=91.25%
ANS:
Employees outsourced tho still work on the hospital premises have a more sense of belonging towards the
organization, employees feel more valued in that sense although not really hired by the hospital. Additionally, having
all employees in the same place allows rules and regulations of management to be better monitored and controlled,
increasing overall operations efficiency in that case.
Along with that example of Al-Salama hospital, some organizations prefer the outsourced employees to be off-site for
multiple reasons, such as cost cutting of expenses the employees wouldn’t be performing needed tasks inside the
hospital premises which would save on operations cost. Moreover, going back to the point of managerial control focus
of management would be on the main operating departments of the core business while the outsourced company
could manage the supporting employee functions which is the food service in this case.
2. In the housekeeping situation, why not just forget about outsourcing, especially because the hospital ended up
rehiring its employees anyway?
ANS:
Outsourcing employees hammers on the idea of specialization, the outsourced company would be able to better hire
housekeeping individuals that are competent for the job requirements because this is the outsourced company’s core
of business, rather than the hospital doing the hiring process. Also, it was mentioned in the case that the hospital is
facing financial constraints and hence that being said as mentioned in question 1 it is more cost efficient to outsource
employees. The issue with the housekeepers is the fact that they don’t feel a sense of belongness towards the
organization because of the loneliness in the workplace it’s not an outsource issue. To conclude, this is a cost/benefit
analysis, in Al-Salama Hospital case it’s better to push on outsourcing employees for both financial benefit and
specialization (Expertise)of job benefits too.
3. For laundry service, what might have been the rationale for asking another hospital to join it?
Along with outsourcing the risk of knowledge sharing is possible, so the idea of having another rival joining in the same
management way/ operations execution process makes it better to improve overall quality of operations. Furthermore,
having more than one hospital dealing with the outsourced company could increase the bargaining ability in business
deals which serves Al-Salama hospital’s financial needs.