HR Power Point Presentation? Wendy Lewis?

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Reyes fitness centers: role of hr in the business function (A CASE STUDY)

INTRODUCTION

Reyes Fitness Centers Inc.(RFC) is a growing mid-sized company, based in the U.S whose activities major in the fitness club industry (Sherlock, 2008).

This presentation gives an overview of the company’s Human Resource (HR) function and how it is related to business side of the company.

Specifically looks at how its Human Resource Department is tied with the strategic goals of the company:

It looks at its:

Organizational capabilities

Requisite RFC employee competencies

Organizational challenges

Assesses its SWOT.

Founded in 1999 by John Reyes, the company has grown to over 28 centers in various parts of the U.S as of 2007 (Sherlock, 2008). It has experienced the exponential growth that the entire fitness center industry experienced in the 1990s up to the point where main markets have now become saturated, slowing down the expansion of most fitness centers. Its Human Resource department is tasked with coming up with strategies that will help improve the business’ bottom line and ultimately be consistent with the long-term strategic goals of the company.

RFC’s capabilities and employees’ competencies:

The Capabilities:

Ideal fitness centers for families and couples. Unlike its competitors that focus more on body-building services, the company has customized its centers to make them suitable for families as a whole to use their facilities (Centers have customized lounges with TVs and even a restaurant) (Sherlock, 2008)

Its membership costs are affordable to its upper-middle class target market, giving it a competitive advantage. Most of its members have given feedback that they have no issues with the membership costs. This encourages membership renewal and retention.

Adequate number of professional and support staff in various departments.

Business focuses on revenue growth rather than expansion

The overall business strategy is that the company is focusing more on growing its revenues. This is different from most of its competitors who are acquiring smaller fitness centers and opening up new centers. Focusing on growing revenues has more direct impact and potential on growing profits and its bottom line as well.

RFC’s capabilities and employees’ competencies:……………………(CONTD.)

Employees Competencies

Good teamwork practices: All the employees from the senior management to the junior-level staff work together in synchrony on particular objectives. There exists clear command structures with good employee relations nonetheless within the company (Sherlock, 2008).

Adequate customer-serving skills. Its employees’ especially those who deal with clients directly, for example the personal trainers, are qualified and demonstrate competent customer-serving skills.

Its staff are certified, knowledgeable trained and qualified for the positions they hold. Most of its employees such as its Human Resource director (Lori) are well-trained with some possessing strong strategic and analytical skills in addition to good academic credentials.

KEY CHALLENGES:

Unmet profit goals. The company under the management of its CEO, has not been able to meet its profit goals by registering lower-than-anticipated turnovers. Even though growth in profit levels are partly hampered by market saturation, this problem is seen to be caused by other underlying problems identified below (Sherlock, 2008):

Inadequate member retention. With only 62% member retention, the company is recording up to 20% lower than the entire industry’s average. This is because some of its existing members simply opt not to renew their membership and inept customer-service as identified below;

Below-standard customer service. This has caused some members to refrain from going back to the RFC centers or opt to altogether relocate their membership to competitors. This is a key challenge as the members contribute directly to the business revenues.

SWOT ASSESSMENT (hr)

The company’s HR demonstrates crucial strengths in such areas as employee and labor relations. There exists good working relations and teamwork.

Other strengths include strategic leaders such as its Human Resource Director (Lori) and ability to foresee future risk of decline in business profits through market saturation.

Its HR however lack credible activists to for example ensure that every employee in the company is adequately aware of the strategic objectives of the company and the role they will contribute towards it.

It also falls short as proponents in HR and organizational technology. There is no outstanding innovation in the HR process that sets its HR apart as a proponent in HR technology.

However, a great opportunity exists for it with the possibility of an expanding market with the growing need and concern among many U.S citizens to lead healthy lifestyles.

CONCLUSION

RFC has poised itself as the ideal fitness center for families with a growing focus on this niche market.

With challenges of member retention and leap customer service as identified, the HR has a huge role to play to ensure that the company’s staff are all engaged in the member-retention process. This is by first ensuring that all employees are aware of the company’s strategic objective of growing revenues by increasing membership and membership retention (Sherlock, 2008).

It is the HR mandate to make sure that all employees to have good customer-serving skills and contribute towards this objective.

REFERENCES

Sherlock, J. (2008). Reyes Fitness Centers, Inc. : The Strategic HR Opportunity. Society for Human Resource Management (SHRM). SHRM Academic Initiatives.

SWOT ASSESSMENT

HR Domains and Roles	Strength, Weakness, Opportunity or Threat?	Comments/Description on Your Finding of the Strength, Weakness, Opportunity or Threat
Human resource development and succession planning	Opportunity	There is room for the HR to develop further and offer innovative HR solutions in the business function
Risk management, safety and security	Strength	With expected market saturation, the company is considering placing itself in position for acquisition by a major company. There are regular senior management visits to ensure each center is safe and secure.
Talent acquisition	Strength	Most of its staff are certified, trained with strong academic credentials to support.
Total rewards	Opportunity	A growing health and fitness concern in the U.S is a growing market for the company. This is beneficial to the company’s bottom line and ultimately to the employees.
Employee and labor relations	Strength	Employee and senior management display good working rapports.
Strategic leaders	Strength	The CEO heads a strategic team of leaders including HR director (Lori).
Credible activists	Weakness	No significant activists within the company to champion the company’s objectives. Many employees are even unclear on key strategic objectives of the company and their roles in it.
Business expert	Strength	The CEO heads a team of business experts.
Culture and change champion	Opportunity	The company is in a position to cut its niche in the market as ideal for families and couples rather than focus on body-building like its competitors.
HR innovators and integrators	Weakness	No significant creative innovations and solutions.
Proponents in HR and organizational technology	Weakness	Its HR department uses already established Human Resource Theoretical and conceptual frameworks.