Issues in Multifit gym plc and how Endris could overcome them to do
organisational restructuring.
Issues
One of the issues that I have identified in MF Gym plc is that there were missed
profit targets and no one was ever made responsible for that. This is due to the fact
that the employees were too comfortable with the working environment and
managers were not focusing on workforce performance. To some extent it is
beneficial for employees to be working flexibly without any stress, but when
employees are relaxed and performing unproductively could lead to increased
complaints and the chances of customers going towards competitors which always
results in decreased revenue and which is the reason why MF Gym plc had
problems of missing profit targets. Another reason for missed profit targets could be
that there was no planning, setting goals and objectives to achieve in MF Gym plc.
Another issue that I have identified in MF Gym plc is that employees are not using
training and development opportunities which often led to low customer satisfaction
rates and lack of available skilled staff to run popular clases. One of the reasons for
this issue is that employees are not motivated to work more efficiently and effectively
with their passion due to lack of motivation for employees to encourage them
working at MF Gym plc by gaining all the opportunities to boost their skills and run
popular classes. Another reason for this issue is that the manager gave authority to
employees to do whatever they want which impacted negatively on employees'
engagement in MF Gym plc. If employees are not engaging and encouraged to
work, then there is more likelihood of having low customer satisfaction because they
are not being instructed well by the instructors which could result in potential injuries,
pain and soreness. To run popular classes in MF Gym plc such as pilates, yoga and
strength training which requires skills and knowledge and without these customers
can not make improvements which could lead to customers leaving the gym. This is
another implication for MF Gym plc’s employees of not obtaining the skills and
development training opportunities.
Moreover, MF Gym plc did not conduct their staff appraisal which was another issue
for the company. Appraisal improves organisational efficiency by making sure that
the employees perform best to their ability, develop their potential, skills and earn
appropriate awards. Due to the lack of appraisal in the business, MF Gym plc
manager didn’t set the targets at the start of the year which could have helped him to
review each employee's progress and check which employee needs training to
improve their skills and productivity. Having no staff appraisal was another reason for
lack of employees gaining training opportunities as employees were getting paid and
were satisfied with the working environment due to the fact that they did not need to
put any effort to do reskilling. This could reflect bad impressions on customers, and
customers are the key for business success as they are one of the sources for
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