RFC Summary and Action Plan

HRMN 495

August 27, 20117

RFC SUMMARY AND ACTION PLAN

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Reyes Fitness Company, Inc. (RFC) is a health facility that was founded by John Reyes

in 1999. RFC offers its customers a wide range of services that include: access to an assortment

of workout apparatuses, exercise sessions, personal trainers, swimming pools, on-site daycare

facility, TV relaxing zones and a snack station. RFC started its business in 1999 and has grown

to include 28 fitness facilities grossing $51 million in revenues and $1 million in net income by

2007. (Sherlock, 2008) Since the expansion, John has hired Mike Lowe as CEO. John has now

shifted his position within RFC from CEO to chairman. (Sherlock, 2008) Since Lowe has been a

part of the RFC team, he has identified areas for improvement and a much-needed shift in

strategy.

The purpose of this summary and action plan is to outline a strategic plan that can

improve facility processes and policies in order to ensure the success of RFC. This summary and

action plan will aim at highlighting the current challenges that RFC is facing. In addition,

information will be provided to uncover why challenges such as poor customer service and

decreased membership continue to be a problem for RFC. This report will showcase the required

adjustments that should be made and an effective action plan for RFC going forward.

Summary of Previous Presentations

The SWOT analysis that was conducted for RFC uncovered very important information.

The SWOT analysis is crucial to understanding an organizations future success or failure within

its industry (Tenney & Marquis, 2017). The many strengths that RFC displayed included the

following:

• Risk management, safety and security- RFC ensures buildings are clean, safe and

workout equipment is safe for use. (Sherlock, 2008)

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• Employee and Labor Relations- HR policies are carried out in an unbiased manner.

(Sherlock, 2008)

• Strategic Leader- Strategic leaders are willing and ready to improve the organization.

(Sherlock, 2008)

• Credible Activists- The HR department is fully devoted to meeting the strategic goals

of the organization. (Sherlock, 2008)

• Business Expert- RFC is confirming that experts are contributing innovative ideas

and interesting knowledge to improve processes. (Sherlock, 2008)

• HR innovators and Integrators- The HR manager is highly educated in the field of

Human Resources. (Sherlock, 2008)

RFC had one notable weakness, which was that they do not have a dedicated change

champion. (Sherlock, 2008) When reviewing the opportunities that RFC had, it was discovered

that HR can uncover groundbreaking ways of aligning overall growth with organizational goals,

in addition to increasing overall organizational diversity. Another opportunity that is available to

RFC is the invention of a new employee incentive program that will boost membership and

employee productivity. Unfortunately, RFC’s one huge threat is the front-line employees that

they are acquiring to represent their business. (Sherlock, 2008)

With the completion of the SWOT analysis, RFC can now reflect on the required

competencies for its employees and organizational capabilities. Requisite employee

competencies can be described as the skills, knowledge, abilities, and attitudes necessary to

accomplish anticipated performance in appointed tasks. (Module 3, n.d.) RFC’s proposed

required competencies for its employees should include (Berry, 2017):

• Employees are encouraged deliver excellent customer service.

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• Employees are encouraged to have increased understanding on how their role affects

the overall organizational goal of RFC.

• Employees are to have knowledge and understanding of the business and the crucial

organizational goals.

• Employees must have the aptitude to perform their allocated tasks according to

RFC’s policy.

• Employees must have the skills to perform their tasks correctly and efficiently in

order to meet RFC’s goals.

• Employees must have a encouraging and accommodating attitude while working in

RFC facilities.

RFC’s organizational capabilities can be described as the aptitude to administer resources

effectively to acquire a competitive advantage (Kelchner, n.d). RFC’s organizational capabilities

are as follows:

’ RFC promotes itself as a facility for the entire family. (Sherlock, 2008)

’ RFC makes a methodical effort not to accommodate to bodybuilders or 24-hour access

members. (Sherlock, 2008)

’ RFC offers a vast variety of exercise machines, classes, and programs that are eye-

catching to the family sector. (Sherlock, 2008)

’ RFC offers nourishing snacks and smoothies. (Sherlock, 2008)

’ RFC offers basketball areas and TV zones that can attract the teen crowd. (Sherlock,

2008)

’ RFC offers on-site childcare services. (Sherlock, 2008)

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The utilization of the organizational capabilities and required employee competencies are

crucial in developing a strategic plan that will aim to decrease threats and weaknesses and

build on strengths and opportunities. This information also assists in creating an effective

and strong So That Statement for the organization. An effective So That Statement for RFC

is “We are innovative champions of change and developmental leaders who offer tools for

knowledge expansion, organizational success, and increased productivity to increase the

overall quality of the employees, increase customer satisfaction, and increase profitability for

RFC.” (Berry, A., 2017)

Summary of Recommended Action Plan

To increase the success of RFC, three crucial recommendations have been made. The

recommendations have been derived from an analysis of the SWOT, organizational capabilities,

and employee competencies. The first recommendation is the creation of individual employee

development plans (IDP). Many IDP’s focus on personal goals, organizational goals, objectives,

and KSA’s that is crucial for success. Research has proven that in order to have an effective

reform within an organization, high- quality development plans are needed. Employees that have

an IDP usually have amplified job satisfaction, increased productivity, and increased efficiency.

(THE INDIVIDUAL DEVELOPMENT PLAN GUIDE, 2010) Managers will create their IDP

with their respective VP’s. Lower level employees will create their IDP’s with their direct

manager or supervisor. The IDPs will have a 2-week time limit to be completed starting on

January 2, of every year. Managers and employees must also recognize that the IDP is an on-

going development that will continue to progress to stay on track with employee development

and KSA’s. (Loew, 2015) IDP’s will be reviewed on a bi-yearly basis to conclude if

modifications need to be initiated and to track employee performance.

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The second recommendation is the creation of a new total rewards program that will

incorporate incentive prospects for all RFC employees. Incorporating incentive opportunities to

the total reward program has the potential to increase employee drive to recruit new customers to

RFC. The result will be a potentially increased workflow for the organization and can this can

also lead to improved profitability that will contribute to long term organizational goals.

(Montalbano & Kleiner, 2015) The VP of finance and the VP of marketing will head the creation

of the incentive program on January 2, 2018. The creation of the program and policies will take

no longer than one month to create. It will be up to each facility manager to ensure that the

program is being enforced equally and fairly among employees. Incentive programs will only be

successful when they are managed properly and fairly. (Thibault Landry, Gagné, Forest,

Guerrero, Séguin, & Papachristopoulos, 2017) RFC VP’s must create an organized incentive

chart that is connected to the set organizational goals for the program to be successful. (Cheng,

2017)

The third recommendation is the creation of a new on-boarding training program. This

has the potential to increase employee success by giving them the education and tools that are

necessary for success at RFC. (Jacob, 2017) This will cut back in misconceptions of daily duties

because they will be fully aware of RFC policies and procedures. Effective on-boarding is a

strategic element in organizational growth and success. (Krasman, 2015) The VP of operations

and the director of HR will create the new on-boarding program. The program will be created

and implemented in no more than one month. New employees should be made aware of RFC

schedules, dress requirements, name of training facilitator, paycheck dates, vacation and sick

policy, and have new hire documents fully finalized prior to their first day on the job. New

employees should have a committed training facilitator for their first week, and a part time

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training facilitator for their second week. It will be up to the facility manager to ensure that on-

boarding programs are being followed for each employee. Feedback will be requested from new

employees and the training facilitators no longer than 1 week after training is complete, so RFC

can determine the success of the on-boarding program. (Lustman, 2017)

Metrics Used for Evaluation

It is crucial for RFC to measure employee development after implementation of the

IDP’s. The IDP’s will be measured on January 2 and July 2 of every year. The measurements

will include a full review of each employee’s IDP. Employees will be reviewed on what action

items in their IDP that were completed, and how long each item took to complete. In addition to

the IDP reviews, employees and supervisors will be asked to complete surveys that will uncover

challenges that might have been encountered, or outstanding performance. This metric will

assist in determining if the IDP’s are an effective tool in promoting employee engagement and

success within RFC. (Bush, 2013)

The updated total rewards program that will include incentives should be measured to

determine its effectiveness in employee motivation, production of increased customers, and

profitability. This measurement can be performed by having a computerized new customer log

that will be linked to each employee number. This type of tracking system will uncover which

employees are pulling in an increased number of customers, and which employees that need a

little work on their marketing skills. Additionally, the tracking system will allow upper

management to calculate the revenue per customer vs. revenue per employee incentive to

determine if the program is appropriate for RFC financial goals. This tracking system will also

highlight how employee incentives can drive motivation and overall profitability for the

organization.

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RFC will need to measure the success of the new on-boarding process as well. This

measurement will consist of new hires taking a survey upon completion of the on-boarding

training. This will give more insight to whether the training is sufficient and effective.

Additionally, the on-boarding trainers will fill out a survey upon completion of the training

program. This will uncover if there are suggestions of better teaching techniques, or new

information that should be incorporated into the process. (Greenhouse Blog, 2016) The new

employees will be visually evaluated on their daily tasks to ensure that the initial on boarding

training was explained well enough in order for them to succeed in their position.

Risk of Not Implementing Changes

If RFC does not implement the suggested changes, it will continue to face many obstacles

in the future. If RFC does not implement IDP’s, the employees will lack motivation,

engagement, and have no clear path to success. If RFC chooses not to implement incentive pay

for employees that bring in new members, they run the risk of continuing to have a low customer

base and unmotivated employees. If RFC does not implement the new on-boarding process, they

will continue to have sub-par employees that are not clear on their duties or their required

commitment to RFC.

Strategic and Administrative Role of HR

Human resources have rapidly evolved over the years and there has been a shift from

administrative tasks into more strategic responsibilities. For a human resource department to be

fully effective there must be elements of administrative tasks and strategic tasks. Recruitment

and selection is an example of an HR task that is both strategic and administrative. This task is

administrative in the pre-screening of new hires, setting up interviews, and so forth. The

strategic element of this task involves creating new recruitment techniques to attract quality

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talent or restricting job descriptions to better fir an organizations goals. (Banach, n.d.)

Administrative tasks also take place in employee compensation. This can be seen with data entry

of payroll or salary changes. The strategic side of compensation can be seen in the reviewing of

market pay rates to make an effective and attractive compensation model. (Banach, n.d.) Human

resources are involved in development, execution, and ongoing support for organizations,

strategically and administratively. Strategic human resources aim at creating a link between

human resource functions and organizational goals. (Bal, Bozkurt & Ertemsir, 2014)

Resources Needed for The Transformation

The resources that will be needed to initiate IDP’s for employees of RFC will include

time, and current employees. Sufficient time to create, review and maintain employee IDP’s is

crucial. Additionally, the IDP program will need to involve employees, supervisors, and

managers. This cost involved in this program will include the time that the employees take out

of their schedule to work on the IDP’s.

The resources that will be needed to initiate the addition of incentives into the total

rewards program will include time, current employees, money, and support from leaders. The

HR department in conjunction with the upper management will need time to come up with a fair

incentive compensation table and electronic tracking system. Funds will need to be allotted to

pay employees who qualify for incentive pay and support is needed from upper management to

motivate employees to participate in the program.

The resources that will be needed for the new on-boarding process will include time,

current employees, and support from upper management. Time will be needed for new

employees to gain the required knowledge to perform their allotted tasks, and time will be

needed for the on-boarding trainers to train the new employees. Support will be needed from

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upper management to ensure that the on-boarding process is being followed and implemented at

every RFC location.

Summary and Conclusions

In conclusion, RFC is fully capable of making these changes that will have a huge impact

on business. Motivating employees to succeed by utilizing IDP’s will increase productivity and

profitability. Employee motivation can also be seen in the introduction of the incentive program

for employees that sign up new members. This will drive employees to learn more about RFC to

market it to their potential customers. New hires that join the RFC team will be delighted to see

that RFC takes its employees seriously and is willing to give them all knowledge and tools that

are needed to become a successful team member. The front-line employees of RFC are what

ultimately drives the business. Therefore, RFC should enrich and support these individuals to

increase organizational profitability.

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References

Bal, Y., Bozkurt, S., & Ertemsir, E. (2014). A STUDY ON DETERMINING THE RELATIONSHIP BETWEEN STRATEGIC HRM PRACTICES AND CREATING INNOVATION IN ORGANIZATIONS. Contemporary Management Quarterly / Wspólczesne Zarzadzanie, 13(2), 23-36.

Banach, A. (n.d.). What Are Typically Strategic HR Duties & What Are Typical HR Task &

Administrative Duties? Retrieved October 04, 2017, from http://yourbusiness.azcentral.com/typically-strategic-hr-duties-typical-hr-task- administrative-duties-16784.html

Berry, A. (2017) RFC Assessment [Power Point Slides]. Retrieved October 3, 2017 from:

Berry_Andrea_HRMN495_AssignmentOne-MSPowerPointPresentation Berry, A. (2017) RFC HR Domain Changes [Power Point Slides]. Retrieved October 3, 2017

from: Berry_A_HRMN495_Assignment2_MS_PP Bush, M. (2013, October 29). Making Your IDP Work for You. Retrieved October 04, 2017,

from https://www.td.org/Publications/Blogs/Career-Development-Blog/2013/10/Making- Your-IDP-Work-for-You

Cheng, D. (2017, March 31). 5 Tips to Make Incentives Meaningful and Retain Employees.

Retrieved October 3, 2017, from https://gusto.com/framework/culture/5-tips-to- make-incentives-meaningful-and-retain-employees/

Greenhouse Blog. (2016, August 22). Retrieved October 04, 2017,

from http://www.greenhouse.io/blog/4-ways-to-measure-the-success-of-your- onboarding-process

Jacob, S. (2017, May 08). Top 7 Benefits of Good Employee Onboarding Program. Retrieved

October 3, 2017, from https://www.zenefits.com/blog/top-7-benefits-onboarding- program/

Karnes, F. A., & Shaunessy, E. (2004). The Application of an Individual Professional

DevelopmentPlan to Gifted Education. Gifted Child Today, 27(3), 60-63. Kelchner, L. (n.d.). The Importance of Organizational Capability. Retrieved October 03, 2017,

from http://smallbusiness.chron.com/importance-organizational-capability-13295.html Krasman, M. (2015). Three Must-Have Onboarding Elements for New and Relocated

Employees. Employment Relations Today (Wiley), 42(2), 9-14. doi:10.1002/ert.21493 Loew, L. (2015, February). Performance Management 2015: Coaching for Development

Needed. Retrieved October 3, 2017, from

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http://www.ddiworld.com/DDI/media/white-papers/performance-management- 2015_ar_brandon-hall.pdf

Lustman, L. (2017, June 26). 10 Best Practices to Improve Onboarding. Retrieved October 3,

2017, from http://www.humanresourcestoday.com/2017/onboarding/?open- article-id=6774856&article-title=10-best-practices-to-improve-onboarding&blog- domain=hireright.com&blog-title=hireright

Module 3: Strategic HRM Competencies, Roles, and Responsibilities. (n.d.) Retrieved October

3, 2017 from:https://learn.umuc.edu/d2l/le/content/251177/viewContent/10515707/View Montalbano, R., & Kleiner, B. (2015). Excellence in Incentive Programs. Journal of International

Diversity, 2015(4), 11-23. Sherlock, J. (2008). Reyes Fitness Centers Inc: The Strategic HR Opportunity. Retrieved October

3, 2017 from: https://learn.umuc.edu/d2l/le/content/251177/viewContent/10515494/View Tenney, D., & Marquis, J. (2017). SWOT as a Constructive Predictor for Business Success of

SMEs: A Case Study. Proceedings for The Northeast Region Decision Sciences Institute (NEDSI), 1014-1023.

THE INDIVIDUAL DEVELOPMENT PLAN GUIDE. (2010, April). Retrieved October 3,

2017, from https://www.fireleadership.gov/toolbox/self_development/Individual_Development_Plan. pdf

Thibault Landry, A., Gagné, M., Forest, J., Guerrero, S., Séguin, M., & Papachristopoulos, K.

(2017). The relation between financial incentives, motivation, and performance: An integrative SDT-based investigation. Journal of Personnel Psychology, 16(2), 61-76. doi:10.1027/1866-5888/a000182

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Appendix I

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Appendix II

Revised Organizational Chart

John Reyes, Chairman

Pamela Johnson, VP of Finance

Johnathan Henley, VP of Fitness Center Ops Alex Garcia, VP of Sales and Marketing

Lori Patrick, VP of HR

Senior Trainers

Susan Long, Recruiting Coodinator

Eric Robert, Mgr. of Compensation and Benefits

Annettee Smith, Mgr. of Training and Development

Mike Lowe, CEO

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Appendix III

Revised SWOT Assessment Chart

HR Domains and Roles

Strength, Opportunity, Weakness or Threat?

Comments/Description on your finding of the Strength, Opportunity, Weakness, or Threat

Human Resource development and succession planning

Strength Human resources has implemented new and innovative ways to align development with organizational goals.

Risk management, safety and security

Strength Henley spends a lot of time at the various RFC facilities to make sure that they are clean, safe and equipment is in working order for the customers. Also working with managers to maintain the expectations of RFC (Sherlock, 2008).

Talent acquisition Strength HR has created an IDP plan that motivates employees to reach their goals, along with an effective on-boarding process.

Total rewards Strength The incentive program for employees is a motivating factor for productivity and increased income opportunities..

Employee and Labor Relations

Strength HR policies are administered in a fair manner (Sherlock, 2008).

Strategic Leader Strength Strategic leaders aim to improve the company overall.

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Credible Activists Strength HR is committed to meeting the strategic goals of RFC.

Business Expert Strength RFC is utilizing many of its experts that are available.

Culture and Change Champion

Strength RFC has initiated changes to total rewards, training, and employee development.

HR innovators and Integrators

Strength Lori is well educated in the area of Human Resources (Sherlock, 2008).

Proponents in HR and Organizational Technology

Opportunity Offers an opportunity to create increased diversity.