2. Operations Management
3. delmarva nursing home dnh is faced with a pressing absenteeism...

# Question: delmarva nursing home dnh is faced with a pressing absenteeism...

###### Question details

Delmarva Nursing Home (DNH) is faced with a pressing absenteeism problem among its predominantly African American CNAs. On weekends and the days before and after holidays, about one-third (33%) of the Certified Nursing Assistants (CNAs) call out sick. You are the Nursing Home Administrator (NHA) and you have estimated the cost of absenteeism is over $6,000 per month. In addition, those employees working the now nearly empty shifts are becoming increasingly dissatisfied and looking for work elsewhere. Losing CNAs is expensive too, as replacing the lost staff will cost even more money than the absenteeism. The Administrator in Training (AIT) is taking a course on organizational behavior and discussed the problem with her professor. The instructor suggested that she look at the literature on employee bonuses for attendance. After reading a few articles, the AIT suggested a new program. Give the employees who show up to work scheduled bonuses. To be fair to all, she recommended that a lottery should be held each week. The names of all the CNAs who had worked every scheduled shift that week would be given numbers, then a random number generator (RNG) would pick the number of the winning CNA for a prize of$500. At the end of the month, all CNAs who had come to work every day, as scheduled, would have their numbers run through the same RNG for double the money. At the end of six months, the prize would be for quadruple the cash. One year of perfect attendance and employees would be eligible for cash, large household appliances, or a paid vacation.

The AIT’s plan has now been in effect for three months and absenteeism at DNH has dropped from 33% to 6%. This lower absenteeism rate has brought a new problem with it: presenteeism. Regardless of how ill they are, CNAs are arriving at work and demanding their name be put down for the lottery. What should you do?

• What is going on in this case as it relates to the identified major problem?