Rocky Mountain Mutual: Promoting Fun or Fitness?

Report: Rocky Mountain Mutual: Promoting Fun or Fitness?

Written analysis and communication

Group 5

Subhojit Bagchi (F002)

Debroop Banerjee (F003)

Kriti Chanduka (F012)

Bharat Ram G.R (F017)

Shobhit Pandey (F045)

Bhavesh Sanghvi (F052)

School of Business Management, NMIMS

Mumbai

To:                 Zachary Evans, Vp, Operations

From:                Joseph Mirola, Claims Manager

Date:                1 April, 1998

Subject:        Benefits of Fitness Centre

Considering that you wish to close the Fitness Centre, I have listed out a few reasons which support my position of keeping the fitness centre open. I understand your concerns about cost and utilisation and have based my recommendations taking them into account. I recommend that we keep the fitness centre open for use, specifying time slots and days for employees to use it. The company can also use the centre for alternate purposes during the idle hours. It may also choose to rent out the space to external agencies.

I believe that the fitness centre should be kept running as I feel there has been an increase in the energy and productivity of those in my department who regularly use it. The wellness program that I have started in my department to promote the usage of the centre also engages them in team building activities which has improved the productivity by 18 per cent and the level of absenteeism has reduced. There has also been significant reduction of medical costs of the regular users of the fitness centre. The concern about the centre is that it is too expensive to operate as the salaries of fitness centre staff and the maintenance of machines expenses is around $1,00,000 a year and the number of users of the centre do not justify the expenses. The records show that 35 per cent use the facility out of which only 10 per cent are frequent users. We have an option to chare gym fees, allocate time slots and day-wise restrictions for employees. Additionally, the company can use the facility for alternative purposes. These options would be evaluated on cost and utilisation (time and space). I recommend that the company use time-slots and utilise the centre for alternate purposes in the idle hours.