Rocky Mountain Mutual

...

7. Action Plan 7

8. Contingency Plan 7

Situation Analysis

Rocky Mountain Mutual is a growing insurance company which has built a new headquarter just three years ago in a fairly remote suburban area in Utah, given its remote location Rocky Mountain Mutual opened a fitness center alongside as the management considers exercise to be important for employee benefit and also assuming that it would serve as an attraction while hiring new employees. Company records show that the Fitness Center has helped company in reaping benefits in terms of lesser absenteeism and higher productivity amongst employees When it comes to absenteeism, employees of Rocky Mountain Mutual who use the center miss almost half as many days of work as those who don’t. They missed an average of six days of work per year as compared to those who do not use it with a staggering twelve days of work per year. The statistics show that the Fitness Center is a major contributing factor of the health of employees. Recently promoted Vice President Zachary Evans is greatly concerned with reducing costs and increasing profits for the company. The Fitness center alone costs company a lot in terms of maintenance also separate staff is needed for supervising the activities. So the future of Fitness Center hangs by a thread.

Problem Statement

Nitish feels that he is an outgoing and friendly person and could not see any reason of

Company is facing a dilemma whether to continue with fitness center or get it over with and shut it down.

Options for Solution

Possible options for solution of the problem are as follows:

1. Shut Down unnecessary parts of fitness center and utilize the space.

2. Keep the Fitness Center Open and encourage employees to volunteer for supervising the center.

3. Keep the Fitness Center Open and levy a charge on employees to use the Center.

Criteria for Evaluation

Identified options have been evaluated on the basis of following criteria:

1. Cost to the company: The cost of Fitness center should not be more than the benefits company is getting out of it.

2. Employee benefits: Employee benefits should not be decreased.

Evaluation of the Options

All the above options have been evaluated as follows: