Problem Decision

Situationa Proposed Action Additional

Statemen Evaluatio
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FATIMA MEMORIAL HOSPITAL
• Limited sources of funds due to ‘not-for-profit’ status ; increasing expenses
• Searching for ways to mobilize funds -> To fulfil its mission
• With a huge population to cater, outsourcing janitor services -> a step to control costs and focus more on core
activities
• Cleanliness – not just a CSF but a necessary factor to sustain its operations, in terms of:
 Control the spread of infections
 Attracting private ward patients
OUTSOURCED JANITOR SERVICES INDUSTRY
• Highly competitive with low barriers to entry and low profit margins
• Tendency for contractors to cut corners by paying low wages, not providing training and proper equipment
CONTRACT WORKERS – JANITOR SERVICES
• Low wages + lack of benefits-> low motivation -> frequently switch jobs and prefer being regularised

CRITICAL Cost
SUCCESS Quality Responsiveness
FACTORS
Efficiency
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• No competitive bidding process

• Outsourcing based on recommendations
Contract
outsourced • Limited experience in Hospital services-previous background in other areas irrelevant
• De-motivated staff of the contractor
• Mixing of Existing staff on Contractor’s payroll

• No SOP/ SLAs identified to monitor the routine janitorial work

Monitoring • Standards of Janitorial services compromised –affecting the image of the
Issue hospital
• Lack of feedback system
• Hospital interfering in man-power planning
Admin Issues • HR influencing admin issues with respect to quality control
• Lack of adherence to contract clauses concerning payment
 Problem Decision
Situationa Proposed Action Additional
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Plan Issues

Parameters In House Employees Retaining existing contractor New Contractor with better
defined SLA’s and fair bidding
Quality of Janitorial services

Responsiveness
----

Absenteeism

Cost Reduction

Customer Satisfaction

Behavior of Janitorial Staff

 Problem Decision
Situationa Proposed Action Additional
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Plan Issues

Why start outsourcing with Janitorial services – Directly linked to CSF’s

Regarding
Janitorial • Starting with simpler functions such as laundry
Staff Why were the existing workers not communicated before outsourcing?
• Better communication about Hospital’s condition could have prevented
resistance

Why was the ACEC undecided?

Regarding
General Why was the HR head adamant on not having contract laborer?-> HR
department not supported the organization strategy
Process
 Why was the contractor influenced to recruit old staff who did not
perform well?