Club Management chapter 1 & 2 Questions and Answers

Club Management chapter 1 & 2 Questions and Answers What are the different types of private clubs? Country Clubs, City Clubs, Military Clubs, Athletic Clubs, Tennis Clubs, Yacht Clubs, University Clubs, Corporate Clubs, Developer-Owned Clubs What is a private club? A place where people with a common bond of some type—similar interests, experiences, backgrounds, professions, and so on—can congregate for social and recreational purposes. By definition, a private club is a place that is not open to the public; an individual must be accepted by the rest of the membership before he or she may join. Once someone is accepted, he or she usually must pay an initiation fee and monthly membership dues. Some clubs also have minimum spending requirements for members Country Clubs Most common type of private club. Offers clubhouse, golf course, and sports facilities to its members. Approximately 6,000-7,000 in U.S with an average of 847 members, $33,757 initiation fee, and $430 monthly dues. What are the different levels/ categories of club membership? Regular, Social, Nonresident, Junior, Senior, Founder, Absentee, Surviving Spouse, Honorary, Clergy What are equity clubs? clubs owned by their members and governed by a board of direc- tors elected by the members. In eect, the members are not just "customers," but also shareholders (they own equity in the club). What are non-equity clubs? Represent another form of ownership; the assets of the club are owned by an individual or a corporation, not the club's members, and the mem- bers' control over the club is much more limited. What happens if a member does not abide by the clubs bylaws? A club has the right to suspend or expel any member who violates the club's bylaws or other club rules or whose conduct is otherwise improper and not in the best interests of the club. A club may also suspend a member's privilege to use a certain club facility. Regular Membership Full use of club facilities, voting rights, and right to hold office Social Membership Use of clubhouse and its facilities except golf course, tennis court, etc. Nonresident Membership Members who live a certain distance from the club as stated in bylaws Junior Membership Children of regular members Senior Membership Those who have been with the club for a specified number of years and have reached a certain age. Founder Membership Members who provided funds to initially build or purchase the club Absentee Membership Suspended dues for those who will be out the state/ country for more than a year. Surviving Spouse Membership Allows spouse to become a member in the same category that the deceased member was in Honorary Membership Politicians and other community leaders Clergy Membership Members of the clergy in their local communities What is reciprocity? Agreements clubs make with each other so that their members who are traveling can visit other private clubs and enjoy their facili- ties and services while the members are away from their home clubs. What is the organizational structure in an equity club? Board of directors, executive committee, other club committees, general manager, club professionals, department managers, employees Summarize the duties of a clubs board of directors Make club policies and governs the club. Typical responsibilities include establishing general operating policies; overseeing the financial stability of the club (which includes reviewing the club's financial statements, approving its operating budget, taking action if the budget is not being followed, and so on); voting on new member candidates; and handling member discipline problems, including voting on whether to suspend or expel members. Another very important responsibility of the board is to hire the club's general manager. The board should also evaluate the general manager at least once a year. Define & summarize the duties of a clubs executive committee Usually composed of the club's officers (president, vice president, secretary, and treasurer). Essentially a mini board that acts in lieuthe club's full board between board meetings, whenever an emergency comes up, or when something minor must be handled quickly that doesn't necessitate calling the whole board together. Define & summarize other club committees Standing committees are permanent committees that help the club conduct ongoing activities. Ad hoc committees are formed for a special purpose, such as assisting with a bigger-than-usual golf tournament, researching the club's history and making preparations for a club's centennial celebration, or helping plan a club renovation. Define & summarize the duties of a clubs general manager A club's general manager is the chief operating officer of the club. It is the general manager's duty to carry out the policies set by the board. The general manager attends board meetings to report on club operations and answer questions, but does not vote on board matters. Provides the quality facilities and services that members demand, while at the same time generating sufficient cash reserves to ensure that the club can maintain its physical plant and even expand that plant when and if the members so desire. The general manager also prepares the annual budget. Define & summarize the duties of club professionals Professionals commonly found at country or city clubs are golf professionals and tennis professionals. Define the typical department managers. The department managers found at most country or city clubs: clubhouse manager, controller, executive chef, and banquet manager. Define & summarize the duties of a clubhouse manager The clubhouse manager is usually the general manager's second in command. He or she is in charge of managing the clubhouse and its personnel and enforcing clubhouse policies and operating procedures. Define & summarize the duties of a clubs controller A club's controller develops and oversees policies to control and coordinate accounting, auditing, budgeting, and related duties; prepares or oversees the preparation of the club's financial statements; and forecasts and analyzes financial information for the club's managers, board of directors, and committees. Define & summarize the duties of a clubs executive chef The executive chef is responsible for all food production in a club's food and beverage outlets. Executive chefs develop menus, food purchase specifications, and recipes; supervise food-production sta members; and develop and monitor food and labor budgets for the club's food and beverage department. Define & summarize the duties of a clubs banquet manager A club's banquet manager promotes the club's dining facilities for private banquets, business and social meetings, and other activities. He or she oversees all administrative and operational aspects of preparing and serving food at banquets, and works with the executive chef to put together banquet menus. Describe the organizational structure of non-equity clubs. There is no board of directors made up of club members; the club is directed by the club's general manager, who follows the owner's policies, not policies established by the club's members. Although there is no board of directors with policy making authority, there might be an advisory board (sometimes called a board of governors) and other member committees for the more important club areas (such as the clubhouse, golf course, and tennis facilities). However, these bodies usually have no power or authority; they are strictly advisory, making their recommendations to the club's general manager. Describe a typical board of directors structure Usually between 9-12 in size, including president, vp, secretary, treasurer, and representatives. They are selected by other members and serve an average of a 1 year term. What are the three primary legal duties that all board members must assume? Duty of care, duty of loyalty, and duty of obedience Duty of care Board members must take the same precautions in governing the club that an "ordinarily prudent" person would take. Duty of loyalty (or good faith) Board members must put the interests of the club ahead of their own personal interests. Duty of obedience Board members must remain faithful to the mission of the club. List the types of written records that a private club board generates and maintains. Articles of incorporation, Bylaws, Rules, Financial records, Meeting minutes, Agendas Articles of Incorporation Articles of incorporation establish the club's legal existence. (In some clubs, this document is referred to as the club's constitution.) The articles of incorporation establish that the organization is a club and state the name, location, and purpose of the club Bylaws A club's bylaws govern its board and set the foundation for club rules. Bylaws are the backbone of a club. The following topics are typically covered in a club's bylaws: Membership requirements Membership classes (regular, social, junior, and so on) Admission policies and procedures Member assessments and minimum charges Policies for reprimands, suspensions, and expulsions of members Guidelines for the board of directors and its ocers, the general manager, and club commiees Election procedures Membership meeting guidelines Use of the club by members, spouses, other family members, and guests of members Bylaw amendment procedures