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Unit 6 Exam Question of Multifit Gym plc with answer BTEC BUSINESS
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Unit 6 Exam Question of Multifit Gym plc with answer BTEC BUSINESS
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● Show an understanding of workforce planning and its importance to Local Gym Plc.● Make recommendations about the key issues to be considered by Local Gym plc to
improve the management change and ensure the achievement of its objectives.
1.0 Introduction
1.1 In this report I will be examining and showing my understanding of workforce planning
importance in Local Gym plc after the merger. In addition, I will also make recommendations
about the key issues to be addressed by Endris to improve, make management changes
and ensure the achievement of its objectives.
1.2 This report will contain justifications of my given recommendations, the importance of
having those recommendations, and how these recommendations will impact negatively on
the Local Gym plc business after merging with Multifit Gym plc.
1.3 Workforce planning is essential and important for Local gym plc as this will assist Endris
to achieve the objectives and change management in Local Gym plc. I will be demonstrating
the importance of workforce planning and achievement of objectives through managing
change.
2.0 Business Overview
2.1 Multifit Gym plc was a successful fitness brand with 20 branches of gyms which was set
up in the late 1990s. Over the past five years it had developed a reputation for outstanding
customer service and innovative online classes which suggests that Multifit gym plc had the
opportunity to run online classes due to the impact of Covid which helped MF Gym plc to
make their brand image. In addition, MF Gym Plc had 300 employees within its branches.
All the employees liked laissez faire leadership style as “ employees liked laid back
management style”. The manager in MF Gym plc had democratic leadership style as “he
allowed some of the personal trainers to carry out some of their duties from home and they
could make their own schedules and deliver online classes”.
2.1 At the end of 2020, employees found out through rumours that MF Gym Plc is going to
be taken over by the UK’s leading gym brand ( Local Gym Plc) which had over 130 gyms.
The management said the takeover would not happen but employees were worried about
Local gym plc’s employment being significantly different from MF Gym plc as the manager of
Local Gym plc was an autocratic leader “ expects staff to follow instructions without
questions” who is self driven and has 20 years of experience of working for Local Gym plc
starting as a fitness instructor.
2.3 The gyms officially merged on January 1, 2022, Endris (managing director) of Local Gym
plc became CEO of the enlarged business and the senior managers of MF Gym plc had the
choice of either to leave or were made redundant. 20% of employees of MF Gym plc would
lose their jobs and 80% of employees would be peripheral workers either on zero-hour
contract or self-employed.
, 3.0 Endris set objectives to achieve
● Increase net profit by 10% by the end of 2026 (long term goal)
● Increase market share by 5% by offering wide range of fitness classes.( short term
goal)
● Increase customer satisfaction by the end of 2026( long term goal)
● To become one of the most efficient gym operators in the country. ( short or long term
goal)
4.0 There were issues in Multifit Gym plc that Endris needed to overcome in order to do
workforce planning and manage change to achieve Ender's aims and objectives.
5.0 Issues 1 ( Little monitoring )
5.1 One of the issues that I have found in Multifit Gym plc is that there was little monitoring of
employees because “managers trusted their employees and thought they didn't need a lot of
monitoring." This was a downside effect for Multifit Gym that needed to be changed in order
to make MF Gym’s employees work effectively for Local Gym plc. Workforce planning is
needed to overcome this issue, which would help Endris examine which employees are
productive, which are inefficient, and which employees need to be made redundant for the
benefit of Local Gym plc.
6.0 Alternative management approach for issue 1
I would recommend Endris to use a reskilling approach for employees because the local
gym plc’s employees work in the tall organisational structure that is completely different from
MF Gym plc. Using a reskilling method for employees will provide new skills for employees
which will assist them in taking on new roles within Local Gym plc, especially when their
current roles are not suitable for the new ones. This is an alternative method of not making
employees redundant and hiring new employees with new skills. However, the reskilling
approach for employees might not be suitable as employees might take more time to learn
new skills and lack of resources might slow down the rekilling process, in addition
employees might feel frustrated and feel less valuable than other employees, which could
result in staff leaving the company.
Issues 2 (missed profits )
Another issue that I have identified in MF Gym plc was there was missed profits in MF Gym
plc and no one was ever made responsible for that due to the trust issues of management
and employees were too comfortable working in democratic and laissez faire management
style. This would have a negative impact on Local Gym plc as employees will be working
without productively and less efficiently and they would not take any issue into their
consideration to take responsibility and make assumptions in Local Gym plc. For this issue,
workforce planning needs to be implemented by Endris, which would help Endris make them
responsible for their tasks. If this issue would resolve then this would help Endris to achieve
an increased net profit target.
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