1. Identify the major problem or problems and the causes.
2. What are some alternatives for dealing with these problems? For example, is it possible to avoid layoffs through the use of attrition?
3. Develop a plan for implementing employee layoffs over the next year which will generate $3 million in savings. Give specific details concerning department affected, the use of seniority vs. merit, the amount of notice, and outplacement activities. What additional information (if any) would you need? Provide a rationale for each recommendation together with reasons other alternatives were not chosen.
4. What might be the effects of a layoff plan on “survivors” in terms of morale, job security organizational commitment, productivity, and career planning?  How could you avoid or minimize any potential problems in these areas?

5. What long-term solutions do you see for the hospital once it gets its cash flow problems under control and eliminates its deficit? What can it do to increase revenue so that future layoffs will not be necessary?

6. What difficulties exist in using "performance" as a criterion for layoffs? How could such difficulties be overcome?