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Case 15-1: Private Fitness Llc*

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It is not easy to become a corporate company. When entrepreneurs like Rosemary enters the market with limited sources, the very important thing is to create a team. The team members should be professional of their business in accordance with the jobs that they are doing.
Rosemary is an instructor and she also hired 5 instructors to run the classes and training sessions. It is very suitable to hire instructors for training. And training is also a field that Rosemary has experience. Apart from them, she hired Kate Hoffman who also has an instructor experience and a close friend of her. Rosemary has given the marketing, facility up keep, scheduling and record keeping responsibilities to her. Although Kate has no experience on those specialized fields, Rosemary also has a limited knowledge about those tasks. It is very dangerous for a manager to give disproportionate responsibilities to the employees. If as a manager or company owner, you are not an expert on the marketing, accounting, human resources and other department’s functions, it is a good idea to hire professionals or receive consultancy.
To run a company, it is not only enough to know the technical functionalities. The company should at least have a trustable accountant and cash handler in order to control the money flow. Since Rosemary is not an accountant it is very easy for her to lose the control about the company records. It is very clear that Kate is telling lie to Rosemary and unfortunately she has no records to proof Kate that she is telling lie.
It seems that Kate and other instructor are taking care of cashier when they have time. It is also very dangerous in terms of cash security. Only 1 person should be responsible as a cash handler and all of the money flow should be cashier’s own responsibility.
Rosemary should definitely fire Kate. Although they have a friendship, Rosemary has lots of

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