Executive Summary: Rocky Mountain Mutual built a new headquarters in a remote suburban area which included elegant offices and a Fitness Center. The management touted the Fitness Center as drawing factor for young employees into the company. Employees who used Fitness Center are found to be more productive and less absentees at work. Joseph Mirola, the Claims Manager for the company, is a fitness lover. He believes Fitness Center will benefit the firm. Zachary Evans, Vice President of Operations, is thinking to shutdown Fitness Center to reduce costs. Joseph Mirola has to send a memo to Zach pursuing him to change his mind about Fitness Center.
Situational Analysis: 1) As the new headquarters of the Rocky Mountain Mutual was built in a remote suburban area, Fitness Center would be a major attraction for the people joining the organization. 2) The Fitness Center was aimed at luring young into the organization and closing it down may rise dissatisfaction among young employees. 3) Growing Corporate Information Systems Department needs space to accommodate it and this cannot be ignored.
Problem Statement: 1) The core problem in front of us is saving Fitness center from closing down without increasing cost to the company (if possible reduce the costs) and at the same time providing space to accommodate growing Corporate Information Systems Department.
Options:
1) Closing Fitness Center 2) Dividing the present Fitness Center such that the space accommodates both Fitness Center and Corporate Information Systems 3) Cutting down staff of Fitness Center 4) Wellness program in all the departments and considering other options for the growing Corporate Information Systems Department
Criteria:

1) Saving the Fitness Center from closing down 2) Don’t increase cost to company 3) Need space for the growing department, Corporate Information Systems
Evaluation of options: 1) Considering the fact that our headquarters complex is located in a fairly remote are where there are no facilities like our fitness center, our employees and Organization takes pride in owning such an elegant Fitness Center. Closing it down harms this pride of employees as well as organization. And considering the primary reason behind opening the Fitness Center, attracting youth in to the company, closing of fitness center would be blow on company’s morale. Also this will create a bad impression among 35% employees who are already using the Fitness Center. 2) After starting of wellness program in my department (Claims Department) there is good increase in number of people using the Fitness Center. And this number will keep increasing in future owing to facts that we are expanding and hiring young employees. Also the Fitness Center is already rushed with employees during certain points of time, decreasing the space becomes a problem in the future when more and more employees start using the Fitness Center. 3) A healthy employee can be more productive. The new headquarters is located at a remote suburban area in Utah where people are less aware of how to use the Fitness Center to maximize their health and productivity. And as the number of people using the Fitness Center is gradually increasing the staff would be very useful in guiding the employees. But cutting down the staff can also be considered as there are so many regular users of the Fitness Center who can guide the other employees. This will also improves the bonding among the employees and helps them working in teams more happily. 4) One of the Zach’s concern is that only 35% among 250 are using the Fitness Center. The wellness program which was conducted only in my department was successful in making most my team members to use the Fitness Center and their productivity increased 18% (Exhibit 1) and absenteeism decreased by 5% (Exhibit 1). If the wellness program is implemented in the other departments of the company employees will be benefited by the Fitness Center to the maximum extent. Considering the facts about professionally landscaped grounds, elegant offices we have in our headquarters other options to accommodate growing Corporate Information Systems should be considered.
Recommendation:
I would recommend the fourth option believing that the Fitness Center is not just for fun of few employees and it actually saves a lot of money to the company (Exhibit 1). And the instituting wellness program will not cost any extra amount to the company as it’ll be done by our existing employees themselves and I can lead the program if company orders me to do so. I believe the growing Corporate Information Systems can be easily accommodated in one our elegant offices and with no extra cost to the company.
I would like keep option three as a contingency plan as it will cut down the costs to the company. It can also become great medium for our employees to develop amicable relations and cooperation among themselves.
Action Plan:
A team of 10 members, who are regular users of the Fitness Center, should be formed. Owing to the advantages (Exhibit 2) of using the Fitness Center the Wellness Program should be designed in such a way that our employees gets motivated to use the Fitness Center. The team will conduct a session with each of the departments and demonstrates the uses of exercising regularly. In each of the departments an employee acts as a coordinator and motivator asking the other employees in his/her team to exercise regularly.
Another professional team should be appointed to examine our elegant offices to consider a place to accommodate the growing Corporate Information Systems. The team will submit their report in 2 weeks considering various options they have and the effects that will happen by implementing the options.
Exhibits:
Exhibit 1Average Medical Expenses of an employee per year | Percentage of employees | No. of days using Fitness Center | Medical Costs | Total Medical Costs | 25 | 1-2 | $300 | $18,600 | 10 | 3 | $100 | $2500 | 65 | 0 | $500 | $81,500 |

Exhibit 2Advantages of Exercising | Increases Energy | A regular exercise improves your energy and you’ll be able to think clearer | Sharpens Focus | The more you are focused on your work the higher you’ll perform | Enhances Mood | Exercising releases mood elevators and alleviates depression | Helps Impulse Control | This will block distractions and improves prioritizing functions of brain | Improves Memory | The more your body is active the more you remember | Increases Productivity | More the productivity the more is the success of the company |