Managerial Communication

Report Writing
Group 8

Name Roll Number

Parth Purandare B046
Shalini Lodha B037
Arpit Shukla B055
Executive Summary
 
The purpose of this document is to explore the feasibility and utility of opening an indoor
gym at Alpha Pvt Ltd open for its employees. This report establishes the relation between
exercise and work performance and also seeks to highlight the positive outcomes of setting
up the indoor gym facility.
The feasibility of running the indoor gym will be judged based on the benefits it is giving to
the employees and the cost incurred by Alpha Pvt Ltd in setting up and maintaining it.
 
Context/background

Alpha Pvt Ltd is a credit rating firm majorly catering to big corporate clients. It started its
operations in 2002 with a team of 30 members. Today, it has about 500+ employees on its
payroll and is headquartered in Mumbai. The CEO of Alpha Pvt Ltd - Ms. Shalini Lodha is
one of the founding members and is hugely motivated to improve employees' physical
wellbeing. 
The Indoor gym will serve to provide a state-of-the-art facility for the employees to engage in
physical activities without having to go through the stress and hassle of finding a centre away
from the office. The cost of setting up the gym would be approximately $1 million and will
require a small staff for maintenance and daily upkeep.
 
Problem Statement

Management is seeking to increase profits by reducing costs for the firm, and keeping this
objective in sight the cost incurred in setting up and maintaining the indoor gym might
adversely affect the main motive of the firm. Mapping the potential benefits against the cost
incurred by the firm in setting up the indoor gym facility could also be a challenge.
 
Criteria

The key criteria for evaluating the problem include:

1. Potential health and mental wellness benefits to the employees
2. The presence of a stress-free zone for employees to unwind and recharge
3. Operational costs the indoor gym incurs annually
4. The value proposition of the indoor gym as an attraction for new/younger hires of the
firm
 
Assessment of options against criteria

In a survey conducted within the premises of Alpha Pvt Ltd, 35% of the employees on
campus will make use of the facility at least once a week, with 10% of all employees ready to
use the gym at least thrice a week. On performing secondary research, it was noted that
employees using gyms showed the following results-
1) Lower medical costs: employees who use the gym at least 3 times a week reported
medical costs of $100 per year and those who used the gym at least once a week
reported costs of $300 per year. In comparison, the employees who did not engage in
physical activity at the Centre reported costs of $500 per year. There is a cost-benefit
to the company by having its employees engage in physical activity regularly.
2) Increase in general productivity as well as a decrease in the number of sick days
availed. The effect of the gym on the employee psyche is considerable, and it helps
 employees to maintain a positive mindset throughout the day. [1] As per the survey
conducted within the campus, employees who went to the gyms missed an average of
6 days of office in the whole year while those who didn’t go to the gyms missed 12
days of office in a year. [2]
3) The indoor gym also serves as a source of attraction for new hires to the firm, due to
the lack of similar services around the office complex.
4) The Indoor gym also provides a zone for employees to get away from work and
alleviate their stress. Research reports suggest 45% of stress in adults originates from
office work and working out is the best possible way to relax the mind and body. That
being said indoor gyms become a necessity in the office campus.
5) While the cost is incurred to run the Fitness Centre is high, it is nullified by the cost-
benefit of healthy and stress-free employees.
 
Recommendations

It must be stressed that the Indoor gyms should be set up, and more employees should be
encouraged to take part in fitness activities. Fitness activities should be conducted throughout
the year in the indoor gym which would increase employee productivity. This, in turn, will
increase operational efficiency and profits for the company and also reduce medical costs
borne by the employees. Every Wednesday and Friday the firm can chalk out one hour for
mandatory meditation and light yoga to get employees recharged and show them the positive
change brought about by engaging in wellness activities in the indoor gym.
Referencing
[1] Exercising at work and self‐reported work performance
https://www.emerald.com/insight/content/doi/10.1108/17538350810926534/full/html
[2] 3 ways staying physically fit can boost your work performance
https://www.businessinsider.com/how-physical-fitness-boosts-your-work-performance-
2016-7?IR=T