The case study is about M8D1: Rumors and Performance explaining a decision to sell the organization to a competitor

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M8D1: Rumors and Performance


To: Employees of Best Healthcare

From: Albert Johnson (Director, Best Healthcare)

Subject: Regarding Selling of the company to the Competitor

Date: 05 December, 2018

Dear All,

With a deep grief, I would like to inform that our company Best Healthcare will now be a part of the Royal Hospitals, one of our leading competitors in the market. It is a painful decision taken by the board but considering the benefits that will be provided to rest of the stakeholders, this decision is taken for the betterment of the entire stakeholders' community. This memo will thereby provide you all with a brief report on the purpose of selling the organization to our competitor.

Also, kindly note that the decisions are taken considering the future benefits of employees, patients, and even the shareholders of our organization. With rising costs of healthcare and considering the recent advancement in the field of technologies, it is noticed that there is a need to provide better quality healthcare services to the people. Since, the organization lacked in the desired resources and technologies, the top-level management of the company has decided to take this decision so that the employees can benefit in terms of compensation as well as better technologies and work approaches in a given environment.


Since last 2-3 years, it was observed that the company’s bottom-lines were declining. In addition, the issues of the patients were increasing. Despite a range of efforts and solutions implemented by the Human Resources (HR) and the Operations team, the organization was not able to recover from the given situation. Instead, the company started making losses and thereby also failed to upgrade on the medical technologies and work approaches of the nursing and support staff in the organization.

The total number of complaints had increased and hence from the ethical perspective, it was important for all of us to consider the needs of the patients and employees first in a given operational environment. Second, it was also necessary to motivate the employees from the motivational perspective such as - provide them rise in their salaries, provide them with medical leaves, provide benefits to the family members, and other such factors that would increase the motivation factors of the organization (Park & Kim, 2013). However, due to lack of funds and also due to other strategic issues, the company was not in a position to look after these factors and thereby mange the employee retention ratio in the organization.

Purpose and Solution:

The purpose of selling the organization to a competitor was taken with an objective to first upgrade the medical technologies, systems, and work processes in a given environment. Today, with increased awareness levels among the patients, it is found that they are demanding better quality healthcare services from the organization. Hence, it is our moral responsibility to provide them with desired services and other support to exceed their expectations.

Also, it will assist in improving the satisfaction levels among the patients in a given environment. Second, there was also a need of motivating the staff to improve the employee retention ratio in the organization. However, due to lack of funds and other financial support, the company was not in a position to address these issues.

Hence, this decision was taken considering the benefits and other needs of the patients and employees in a given environment. I can understand that it will be difficult for the employees in the initial stages but the management team of Royal Hospitals has rest assured that they will be taking better care of the employees. They have agreed to provide all the desired benefits to the employees as per our instructions and guidelines and thus it will also help all the employees to improve their motivation levels in a given working environment.

Further, I along with the HR team have also found that the employees will need additional motivation to work for the organization. Hence, I would like inform that all the employees need to always focus on delivering the best services to the patients. They need to work in their normal routines and ensure that they deliver their tasks with the given deadlines.

It is important for them to deploy change management to adapt to the new culture, learn the new technological modules, and thereby deliver the required healthcare services in a given working environment. Further, our company has also decided to provide an additional payment of two months salaries for all the employees so that they can also decide whether they want to continue working in the new organization or want to leave the organization.

It will thereby provide them with an opportunity to leave and look out for another suitable job opportunity in other companies. However, they will be secured from the financial and medical perspectives under the two-month support program. The employees thereby will get motivated and will take the best decision considering their needs in a given environment.

Also, it will be ensured that all the employees will be trained on the new modules, work approaches, conflict management, change management, and leadership so that they can perform as per the needs of the organization in a given working environment (Rhoades et al., 2013). There will be supervisor assigned to them who will measure their performance and will accordingly suggest the recommendations in a given environment.

It will thereby make sure of overcoming the gaps in the current work processes and subsequently improve the working efficiency in a given environment. Also, the top-level management of the Royal Hospitals will be taking utmost care and will be reviewing the different strategies and will suggest necessary recommendations to improve the future outcomes. I would also like to invite you all for the meeting to discuss and solve all of your queries so as to sure smooth transition in the new organization in a given time.

Yours’ truly,

Albert Johnson

(Director, Best Healthcare)

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