Category: Business Essay

This report comprises results and recommendations of an assessment carried out in several randomly chosen Better Health Enterprises facilities including all its three chains. It mainly covers the issues of new fee structures proposed by the organizations top management and new methods of employee working and payment. The report is a result of the analysis of the opinions of the companys employees that arose from the managements change proposition. It will try to compare those view to the merits and demerits of the proposed changes. The report utilizes the pros and cons approach of comparison of the two options of fee payment under discussion that is: the current service fee payment and the newly proposed per use charge fee that is accompanied with a new remuneration system for the workers, mainly instructors.

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Data collected from the assessment is represented in the report as comparisons and factual statements that give a deeper understanding of the gyms financial situation and how the proposed change will affect the workers. Analysis of this information with consideration of the needs of all individuals in different facilities enables one to come up with a couple of recommendations. These recommendations will be important in making the decision of whether the proposed changes should be applied with explanation and justification for each. They are also meant to give deeper understanding of the problems facing the gym workers and how they can be effectively dealt with.

Recommendation Report


The assessment carried out in facilities of the different chains is meant to collect information from the employees that will be analyzed and used to come up with recommendations on what payment system would be more beneficial to the organization. It will also give deeper knowledge of how the company functions with better understanding of the different functions of the workers and challenges they face.

During the assessment process, it is assumed that the views of the random workers chosen for the exercise represent the ideas of all the employees from all the facilities. It is assumed that the proposed recommendations will be the main content considered when making the final decision about implementing the change.

The methods applied for the collection of information for the assessment analysis mostly involved interviews with the workers who gave their opinions concerning the proposal for change in fee and remuneration systems. This was supplemented with an e-mail questioning of 136 gym managers of the organization.

The assessment process was, however, not an easy one considering the lack of cooperation among some workers who were enraged by the proposed changes. There were also some employees who did not want to participate in the assessment citing lack of interest; this dont care attitude had a negative impact on the activity and was mostly observed in 25 Hour Fitness gyms.

To come up with the proposed recommendations, all the statistics collected from the assessment combined with the workers opinions were compared. All these data were analyzed so as to get a clear idea of what the best route for the organization to follow would be, as recommended in the report.

Background Information

A healthy people is a healthy nation; that is why it has become important in this century of sedentary lifestyle that more people engage in fitness exercising. Training sessions have been made professional and are available in fitness gyms such as Better Health Enterprises where participants are guided through the experience of becoming a healthier human being. There are various professionally trained individuals tasked with the responsibility of making sure that people attending such fitness sessions acquire high-quality workout. This is done with consideration of safety during the whole experience.

Better Health Enterprises has three national chains of fitness gyms with multiple facilities in several cities nationwide. It has a workforce comprising of gym managers, instructors and non-instructors.

The companys CEO proposed changes to the member payment fees and remuneration system, which was received with mixed feelings from the gym employees. There are two opposing parties to be affected by the proposed changes:

1. The gym instructors most of whom are against the idea of the CEO to eliminate service fees. They do not favor per-use fee for fitness classes and time with personal trainers,

2. The non-instructors most of whom support the proposed change. Managers also agree with the idea.

Currently, the collection of service fee method is used with employment of part-time and full-time workers in all the facilities of the different chains under Better Health Enterprises. The mentioned positions are in the management, membership, fitness instruction (including class instructors, personal trainers, and gym attendants), customer service and information technology.

According to the data collected, there are more instructors under the age of 25 years in the facilities under the Platinum Fitness chain while the Lifeline Fitness chain comprises mostly instructors over 25 years of age. 25 Hour Fitness also has younger instructors mostly from college and university towns.

If the change is implemented, full-time instructors who are currently paid a weekly salary will receive reduced hourly wage and will get paid extra for classes and personal training. Instructors, however, said that fee elimination will negatively affect the frequent gym class attending members since they will have to pay extra for the services. They also argued that their expertise had helped increase sales in the gym pro shop and snack bar which, as 67% of them said, should be rewarded. 45% of instructors also stated that if the service fee was replaced they will probably have to find other jobs to support themselves. This concern is further discussed in the report with justification for why it might be true.

Some 17% of instructors, however, thought that if the change was to be implemented, managers should not be responsible for assigning the class schedule according to the potential income of an individual, since that might lead to favoritism rather than the quality of work determining the number of classes or training assignments they get.

Managers supported the change with a combined 64% of them agreeing that the service fee should be eliminated and replaced with the previously mentioned method where users will be charged according to how frequently they get fitness classes and how much time they spend with trainers. The responses acquired from most managers generally stated that the new mode of fee payment will save a lot of money in the long run, since instructors will be paid according to the number of classes they have instead of a general hourly wage. They also hinted that the best instructors will benefit most, as they will be the top choice thus in more demand.

The analysis of the data collected from the assessment also indicated a low morale level in 25 Hour chain personnel, which mostly comprise of college and university students. This was indicated by their low response rate to the survey.

All the data collected from the assessment establish a dilemma of whether the organization should implement the proposed changes or stick to the initial method of 10% additional service payment. It prompted the need to compare the merits and demerits of both choices so as to weigh out which option will be more beneficial to the company. Both alternatives proved to be viable solutions, but only one of them was required. The comparison followed the pros and cons approach, where both options were gauged and analyzed to come up with the final decision of which choice is to be recommended as the best for the organization. Managers, instructors and non-instructors opinions were also considered during the assessment and data analysis processes. The effect of the change on the gym members was also taken into account when assessing and analyzing the collected data.

Available Options

Service Fee Elimination

Merits. According to managers responses, eliminating the service fee will save a lot of money in the long run, since instructors will be paid based on the number of classes they teach instead of a weekly wage. This is true since it is possible that some instructors might be lazy and not work at the same rate as their colleagues but still get paid the same amount as them. Apart from killing the hard-working individuals morale, the use of service fee method will make it possible for lazy employees to get money they do not deserve. Work output should match the wages paid.

According to Eisenberg (2011), it is also beneficial for the organization to have a pool of part-time instructors who can be acquired when needed rather than have full-timers who must also be provided with benefits. This will ensure that wages paid to instructors are optimized in the companys favor, since only services needed will be paid for instead of paying workers even when there is not much to do. A proper system of time scheduling is required to balance the need for full-time and part-time instructors based on the requirements of different facilities of different chains of the organization.

Implementing the change will force lazy workers to do better since the best instructors will be more demanded, and thus will get more classes which translate to more wages. This method will make sure that only those who work hard are rewarded more compared to the service fee method where the best and most hard-working individuals were neither fully recognized nor well-compensated for their work.

Demerits. The change will make it necessary to schedule classes based on demand. This could take more managerial time, especially at first, since there is still shuffling of duties and responsibilities from individual to individual. Managers will be faced with the task of tracking the best instructors based on th