You are the CEO for a radiology imagining center that has seen a 10 percent drop
ID: 3304479 • Letter: Y
Question
You are the CEO for a radiology imagining center that has seen a 10 percent drop in utilization over the past year. Utilization is expected to drop another 10 percent for each of the next two years, but in the third year your forecasted demand will increase 5 percent per year indefinitely. Your current staffing level will result in a $20,000 loss next year and a $40,000 loss the following year. What are your options? You are the CEO for a radiology imagining center that has seen a 10 percent drop in utilization over the past year. Utilization is expected to drop another 10 percent for each of the next two years, but in the third year your forecasted demand will increase 5 percent per year indefinitely. Your current staffing level will result in a $20,000 loss next year and a $40,000 loss the following year. What are your options?Explanation / Answer
The company should initially go ahead with downsizing the workforce to a level that only minimal costs are incurred for them. It should also take up further measures to reduce the overall costs of the organisations by aligning the salaries of the existing staff members.
The practise of variable performance related pay should be introduced so that as per the work done the payment is done to the staff members. The portion of fixed component should be reduced to a comfortable level for the organisation. This would help the company save large amount of costs yearly.
The sales team should be done through an agency and not by the sales department. only service department to be kept so that they can serve the sales done by the external agencies. This will reduce the cost in a way that whenever the sales happen the commission will be paid otherwise the fixed componenet will not be there.
Once the company gets proper growth then only relevant staff to be inducted.
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