Apa Case Study Private Fitness

Six months ago, Rosemary Worth established Private Fitness, Inc in Rancho Palos Verdes, California. Her experience as an aerobics instructor and notoriety as a US Fitness model were the perfect tools for building a business. The facilities were paid for through personal savings and a bank loan. Rosemary used $150,000 of the funds to renovate the facilities and purchase equipment. Five rooms were created; two locker rooms, an office, a weight room containing free weights and machines, and an aerobics room with treadmills, stair climbers, and other similar pieces of machinery. As a way to set the business apart, Rosemary found five instructors with specialized skills to meet the wide variety of classes available to the members. These instructors
To implement these MCSs, managers/owners need to know exactly what results are desired, how to monitor these results, any weaknesses that may be addressed, and the rewards that should be given for reaching the desired results (2012). Rosemary attempted to implement this control when she offered a commission based on the direct impact an instructor had in bringing in a new client. She left the control incomplete when she failed to properly segregate duties between the manager and instructors. Kate had a conflict of interest since she was paid salary, regardless if she enacting as a manager or instructor, and could gain more by working as an instructor. Without any additional costs, Rosemary would be better suited to hire a manager specifically trained in marketing and back office work, rather than an instructor. By continuing to pay the manager a set salary, he or she will not be tempted to steal clients. As a reward for growing the business, the manager can be directly rewarded for reaching certain revenue thresholds. The instructors should be rewarded for bringing in a certain amount of new clientele. If an instructor brings in five additional clients, they see a $100 bonus in their pay. Only the manager can approve new clientele and Rosemary must sign off on any paycheck that includes this bonus as
Private Fitness, Inc. is still very new and has not established a set culture. Rosemary needs to create a code of conduct for employees to live by and reinforce the importance of acting with integrity. Additionally, key employees should be in positions to influence others and push this culture. Disciplinary actions need to be enforced for all breaches in misconduct. These actions can range from written warnings, penalties in pay, or even