Reyes Fitness Company (RFC) is a growing mid-size company in the United States found in the south east of the fitness club industry. Currently, the company is in the move of looking for ways that the value of Human Resource can be of help to the company in meeting its laid strategic goals and competitive advantage in operating in a market where social activities and fitness can be enjoyed by the whole family (Sherlock, n.d.). RFC is in need of a method that they can use to in addressing the social skill and poor rate of retention of its employees by getting to know the methods that in which the future fate of department of HR can link with the strategic goals of the Organisation. In solving this issue, an initiative is made in implementing scorecard that is expected in presenting new goals of HR and giving into to details how measurement of these goals into achieving goals of the Organisation. Eventually this analysis is done into applying and observing the HR scorecard process and the value of these goals of HR in achieving goals for the future success of the business (Schuster, 2013)
Currently, RFC is having the highest gross revenue. As a growing company, this shows a good trend as its only in big companies that are having highest gross revenue due to expansions and acquisitions that are involved in big companies than in small companies. RFC has been in a position of building its centers all the way from 1999-2007.
This was done by coming up with ideas of opening quite a number of clubs every year accompanied with promotions with an intention of attracting members. It experienced continuous growth in revenue of more than 20 percent yearly though 2004. However there is a problem of several centers of RFC not attaining its goals. The realization was that the problem of getting profit was due to the problem of customer retention. Similarly, the other problem was the member feedback that members of RFC are not giving the best qualities that are related to good customer services (Schuster, 2013)
Summery and recap
Currently, RFC is facing challenges that are significant in some areas. The RFC employees are required to work on the best required skills and this will help in attracting customers that are interested in renewing the contract. This is also another issues that will ensure retention of customers (Schuster, 2013). On the side of the gym, its not reaching the gals of profit which seemingly can be translated to the fact that employees are not understanding the positions that they should take as far as the gym is concerned. In that they are feeling not connected and lost and this leads to growth of behavior problems (Smallwood et al .., 2004)
Competencies of employees is also another challenge that RFC is facing. In case the senior team and Lori came together and worked on making a pleasant training program and incentive/ compensation training program, they would maintain customers and employees. Some of the current capabilities of the company are improvements of importance in skills and all-round the staff members of the company coming up with laws across the lines of department, improving with lots of updates the performance of the company. It will make RFC to take the responsibility of training management employees putting a lot of effort and emphasis on matters to do with skills with incorporation of first line supervisors. The company will also need to come up with establishment have to establish a well-developed plan that will make sure there is success in planning (Prosci, 2015). Addition on ensuring productivity of employees, it will force RFC to determine what skills, knowledge or abilities that are f importance in maintaining success of the company and give these employees the required competencies. Ensuring productivity of employees and ensuring that there is smooth flow of communication between employees at the lower and the upper level will be of importance for the business into meeting is strategies for business. Additionally, identification of returns on investment for all the programs of the company and management of expenses for training are part and parcel of current labilities of RFC.
Recommended action plan
With the efforts that are laid down in addressing the current situation and quite some concerns that are found within the company, RFC will have to come up with an action plan that will be based on the below-mentioned recommendations. The recommendations mentioned will have an effect of adding value to the company. The HR department which is well established will give the employees an opportunity of appreciating a face to face type of communication. This will provide them with a chance of increasing their morals in expressing their concerns to management on matters that they are not pleased with. This will also affect increasing trust between lower and upper levels of management (Allen, 2013). Goals of the company will give room for the assessment of the work of the employees as well as indicate which employees are in need of additional training in their fields. Employees will remain consistent and follow the policies that are there in the company. Management will also get the opportunity of following up the products of employees. This, in essence, will affect building trust amongst employees, managers and the department of HR which will ensure that RFC becomes a stronger organization. Additionally, that will provide that RFC comes up with new policies and new plans for training for all the organizational employees (Allen, 2013).
An expansion of the customer base and gradually coming with ideas of building the business has the capability of increasing the profit as well as providing revenues for an equal compensation and programs of benefit. This will have the impacts of increasing value to the community as their needs will be listened to making them generate additional revenue for the company. Additionally, this will ensure that employees grow in areas that they lack some specs of required qualities helping the company to progress in its practices (Bosscher, 2013). There is a need for RFC to come up with a more developed plan that incorporates utilization of all the employees in the organization. In RFC there must be professional in the documentation of job performance as this will ensure that the missing activities in the company are well attended to. Additionally, there is a need for a specific structure in the organization in providing that employees are informed that there is no any bias in attending and treating employees and that every compensation to employees is based on the effort that is made by every employee. This has the effect of boosting the morale of employees and ensuring that there is hard work into meeting the organizational goals.
Evaluation and transformational results.
For RFC to be in a position of transforming the company most successfully, the company will ensure that it aligns the focus of its HR with that of the business. This insinuates that RFC will have to come up with strategize and determine what the objectives of the company are, what can be done in increasing competitive advantage and excel to ensure that there is success in the whole organization and the critical capabilities that should be used into achieving the organized goals (BlessingWhite, 2012)The strategy of HR department.
The department of RFC before has gone through lots of struggles without understanding the place it had and not being capable of uniting the management together. With the shift in leadership and incorporation of a new director, the department of HR is eyeing at using scorecard into seeing how HR is working for RFC (Bosscher, 2013). They are aware that they are not in good understanding of knowledge management and strategic approach to HR. Although this is an issue that may affect the whole organization; it all starts from the department of HR where there is lack of proper undertaking of a strategic plan or identified order task there is need to be practiced. But with the intention of fixing this issue in the whole organization, the department of HR will have to start with problems that are related to division and communication issues within the unit before an extension is done to other agencies that are found within the company( Bal, Bozkurt & Ertemsir, 2012). The achievement can be done by going through the issues that are related to strategic management. Strategic HRM will give guidance to the department on the right procedure that should be inculcated in creating an organizational structure that will favor the corporate success and design by coming up with an appropriate communication type that will endorse the company to the newly implemented changes.
For the company to remain competent and achieve its main objectives, the human resource department and RFCs team should make sure that the employees are conversant with the important aspects required to make the company achieve its goals.
Human capital is very important in meeting companys strategic goals. The HR department should invest more in human capital. Achieving competitive advantage may look a simple task to the RFCs management but it has great challenges. This arises due to the past and recent problems which have resulted to the loss of their clients.
To provide solution to this problem, the RFC can help regain the status by making their products or services unique from their competitors. They can also come up with new products and services that will help them get new customers. The HR departments can also higher new and more skilled employees who will bring new ideas and a new working culture to the company. The highly skilled employees will also offer more advanced products which will increase profits by charging premiums.
The HR department should invest more in recruiting and training new employees. The process might be expensive but the value added to the company at the long run will bore fruits. The old employee should also get refresher trainings to see if they can match the companys new goals. Moreover, the highly skilled employees will come up with ways of cost cutting internal expenses by expanding operating margins. This will motivate the employees and increase product and at the long run increase the profits (Martin, 2014).
Another big challenge that requires the RFC and its HR department to solve is the capability of workforce considering the recent loss of customers, poor relationship between management and staffs and poor method of communication in the company. For the RFC management to solve this big issue, a unique infrastructure should be created that can improve and strengthen leadership roles and bond the business strategy and the infrastructure created. The HR should also set a strategic environment where the employees should have specialized skills so that they can bring the changes the company requires (Smallwood &Ulrich, 2004)
The above suggestions to bring change and standards for evaluation provide a variety of very important analysis in critical fields of planning. It also enables RFC to compete and be ahead of other long established computer hardware manufacturing companies. If a company fails to implement these critical changes, it will reduce its chances of accessing opportunities and will eventually make the company stagnant both in its internal and external growth. There will be a reduction in number of customers as well as work force. More employees will quit and look for new opportunities and the company will lose the resources used to train the employees. There will be reduction of revenue and minimum productivity due to sharp decline in the morale of employees. The RFC will remain behind in terms new technology and the company will not be able to change their business functions (Martin, 2014).
The administrative roles...
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