Rocky Mountain Mutual

:
Promoting Fun or
Fitness?

Submitted To: Submitted By :
Prof. Manaswini Acharya Roll no :
15PGDM108
Sec-B,
PGDM 2015-
17

From : Joseph Mirola

To : Mr. Zachary Evans

Subject: Fitness Centre should keep running

the newly appointed VP of operations wants to close down the centre to improve profits and reduce costs.This report includes a detailed analysis of the situation at hand and the different options available. Executive Summary Rocky Mountain Mutual is an insurance company. Now Zachary Evans . The major criterions used for evaluation are employee satisfaction and profit making. Three years ago they built a new headquarters in a fairly remote suburban area in Utah including a Fitness Centre whose cost alone was close to a million dollars and was touted to be the major draw for young employees.the Claims Manager of the company uses the centre regularly and is very enthusiastic about its impact on the health of the employees. How should Joseph persuade Zach to keep the Fitness centre running ? . After much analysis my recommendation would be to part some space in the Fitness centre for other office purposes . Joseph Mirola .

Contents Page No.Table of Contents Serial No. 1 Situation Analysis 1 2 Problem Statement 2 3 Options 2 4 Criteria 2 5 Evaluations of options 3 6 Recommendations 4 7 Action Plan 4 .

Joseph Mirola who has been a regular user of the Centre for the past years and is enthusiastic about its positive impacts on the organization and its employees. Joseph to promote more use of the Fitness centre eight months back.now opposing this suggestion is the Claims Manager .Mr Joseph is a firm believer of the benefits that can be reaped by the Fitness Centre.Zachary Evans was promoted to Vice President of Operations. 1 . smart and has been successful in increasing profits with the company for over 25 years. No expense was spared for the complex and it was built elegantly with a Fitness Centre featuring an indoor walking track . Currently he is preparing a report for the President. This program has been institutional to rise in productivity and decrease in sick days for the Claims department. Also the medical review seem to confirm the users of the Centre to have lower medical costs and lower absenteeism rates. Recently .000 a year. But . Just three years ago they built a new headquarters complex in a fairly remote area in Utah only.CEo.swimming pool and an exercise room. Morale has also been on a high. the cost of the Centre alone was close to a million dollars and a small staff was hired to supervise the activities. Zach is likeable. With company's growth plans the Fitness centre was promoted to be a major draw for young employees .Mr.and the Board of directors about his ideas on how to improve profits and reduce costs. A wellness Program was also started by Mr. one of his ideas is to close the Fitness Centre as the maintenance and the other expenses related to it comprise to be almost $100. Situational Analysis Rocky Mountain Mutual is an insurance company based in Utah.

4) Convince/motivate other employees to use the Fitness Centre. Zach has come to this idea of removing the Fitness Centre altogether as he thinks that the cost of maintenance the facility is too much for only 35 percent of the employees. Problem Statement To convince Zach to keep the Fitness Centre open. Criteria The two basic criterions used to analyze the options are  Employee satisfaction  Profit making of the company Evaluation of options 1. Options 1) Reduce the space allotted to the Fitness Centre. Zach has made himself open to views and approved Joseph to try and persuade him on paper. 3) Outsource the Fitness Centre facilities . To this Joseph has argued that it's for the better health of the employees and is a great recruiting device. But Zach is still not convinced about it being a great attraction to new employees and is skeptical about its yearly running costs. 2) Incentivise the employees currently using the Centre facilities. The option to reduce the centre area and assign 2 .According to the log which says only 35 percent of the employees use the facility. Zachary Evans on the other side believes that this Centre is for the fun of a few.

2. 3. This will increase the percentage of employees joining the facility thus getting one step ahead in convincing Zach that the Fitness Centre is not just for" few". This will not hamper the schedule of the employees using the facility while profit of the company will increase with the increase in office space. By motivating or convincing the employees to use the facility the user base can be increased . Recommendation Rocky Mountain mutual Management team should allocate a part of the Fitness Centre to create a new section of the office in this facility .the cost involved in outsourcing to another facility will be much less than the current costs involved.As only 35 percent of the employees are interested in this facility . the next option is to incentivise the current users so that they should continue using the facility while catering to the other employees as they will also want to join the Centre for the bonus and incentives. Outsourcing the Fitness centre facilities can help reduce the expenditure on the fitness centre .This will help the management reduce costs and make profits from this Fitness centre .health and fitness related programs could be organised to showcase its importance. Goodies or vouchers can be given as incentives to the employees. a part of it to other office purposes can be a viable option. The main issue is that very less number of employees use the facility. Action Plan Rocky Mountain should undertake the following steps: 3 . 4.

new employees etc. 3) the management while doing away with some staff of the facility should take care of them in some financial way . 4 . The area could be used for meetings. 4) the company should convince other employees to use the Fitness facility as it would lead to a healthy lifestyle for the employees thus in turn which will be positive for the company.the focus should be on what other office purposes should the management use the area. informal group projects. 2) when the issue of area is settled .1) The management should start with devising a plan about how much of the area should be allotted to other uses .