Workout World Case Analysis – Individual Briefing Report

Workout World

Case Analysis - Individual Briefing Report

Executive Summary

A year after starting up , excellent and complete facilities drove sustained new-member gains at Workout World (WW . However , the organization had effectively become decentralized with four independently-run service groups seemingly inclined to operate as they . Worse , service gaps had opened in point of adherence to operating hours while maintenance and cleaning were given short shift The four service groups openly competed with one another in service offerings , pricing and membership marketing

Confronting the prospect of patron dissatisfaction , General Manager

Peter Watson worried that he had lost control of service operators protected by ten-year contracts

On analyzing the situation and applying tenets of Organizational Behaviour , Ann needed to make Peter Watson realize that he had a five-point program to implement

Accommodate some inter-group rivalry and conflict as a healthy sign of success-driven employees

Intervene with more assertive leadership to turn the situation around immediately . As it turns out , employee-oriented , transformational and charismatic leadership such as he is known for may be exactly what will be effective in this situation

Motivate cooperation with a clarion call to service excellence , managing change as a process of continual improvement , and offering appropriate incentives

Formally recognise the stake the local government has in WW and reorganise the Board as well as the Table of Organisation

Implement Facts of the Case

The international-class Workout World near Brisbane has comprehensive facilities , enabling management to market WW successfully to both locals and national teams abroad seeking suitable off-season training facilities

General Manager Peter Watson has a track record of successfully managing and growing at least two other leisure operations before taking the helm at WW

By virtue of donating part of the land , the local government has a stake in WW . In fact , outsourcing contractors for child care , maintenance and cleaning report to it

On commencing operations , WW decided to tender out the four stand-alone ' operating units : the accommodation and food-service outlets , the swim centre , sports science and physiotherapy , and health spa , gym and sports centre . These tenders are covered by ten-year contracts with over eight years to run . Management retained responsibility for overall operations , sales and marketing

Management has taken notice , however , of increasing disarray in the operation of the four units . Beyond apathy about the weekly department meetings , the more worrying signs include a relaxed attitude about operating hours , competing head to head , and launching independent advertising and promotional programs

Analysis

Analysis will rely on understanding the nature of the conflict at WW the attendant risks , appropriate modes of action and the question of leadership style

The Nature of Conflict in WW

Clearly , there is conflict and it is dysfunctional . The General Manager rightly views inter-group relations as dysfunctional because animosity is present to the extent of invading each other 's turf , offering competing products and services to the detriment of the common goal

Besides the misgivings of Peter Watson , the existence of conflict is demonstrated by the three dimensions Barki and Hartwick (2001 identified : interdependence...