Question

In: Operations Management

q1 : what is you opinion ? The chief executive officer (CEO) of a midsize urban...


q1 : what is you opinion ?


The chief executive officer (CEO) of a midsize urban hospital was late one Friday evening, so he took a shortcut that caused him to walk by the employee lounge. He walked inside and shook his head. With all the problems of budget cuts and trying to make ends meet, he realized that little money had been available for upkeep of nonpatient areas such as the employee lounge. The carpet was dirty and worn, the coffee mugs were chipped, the wallpaper was torn, and the refrigerator groaned as it cycled on and off. The CEO decided enough was enough. The employees had worked hard and should, at minimum, have an inviting and pleasant employee lounge.

He marched back to his office and called the chief operating officer (COO) to instruct her to create a weekend miracle by calling in the work crews to update and refurbish the employee lounge. He ordered new carpets, new wallpaper, and new appliances, and he wanted it all done by Monday. The CEO told the COO, “I keep telling the employees how much I appreciate their help, especially in these financially tight times, but now I am going to show them. And be sure to replace those old, chipped coffee mugs.” Early on Monday morning, the CEO walked by the employee lounge. It looked terrific, and someone had already made coffee. He made a note to himself to tell the COO what a great job she had done.

When he got to his office, he found the union steward sitting on the couch. “I need to have a word with you,” the union steward said. He had several words, as it turned out: He said that the CEO had violated the collective bargaining contract and that refurbishing the employee lounge should have been, at minimum, discussed with the union. The union steward spent 20 minutes complaining about violations and procedures.

After the union steward left, the CEO called the COO and told her to put the lounge back the way it was, including the chipped coffee mugs. Then the CEO muttered to himself, “That is the last time I try to do anything nice for anyone around here. I have learned my lesson.”

Solutions

Expert Solution

Making changes to the employee lounge was a good idea to motivate and keep the employees happy. The CEO took the right step and that could have done wonders for the hospital because the success of any organization depends on how happy the employees are working for that organization. The CEO instead of asking the COO to put back all the old stuff in the employee lounge, he should have explained why he decided to do that to the person from the union. The employees were cooperative even during the tough time and they kept working hard without demanding anything from the organization. It was the responsibility of the company to do something nice for the employees when they were least expecting it. This would have increased their morale and encouraged them to work even harder. The employees would have felt loved and they would have worked like a family. Even the union should think about the ways to keep the employees happy. So it was mistake form the union and also the CEO to go back to the old stuff in the employee lounge after the renovation was done. The actual lesson for the CEO and the union is first keeping the employees happy and they will take care of the business.


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