# Rocky Mountain Mutual Case

Among the 35% who use the fitness centre, 10% of employees use the facility extensively since these people login to the fitness centre on an average of more then three times a week. 25% of employees use the facility occasionally and frequent the fitness centre once or twice a week. The vast majority of employees, 65% of them do not use the facility. So we can classify all the Rocky Mountain Mutual employees into three categories based on the extent to which they use the fitness centre.

• Regular Users
• Infrequent Users
• Non Users

Correlation between medical reimbursement cost and the extent of usage of Fitness Centre: It is common knowledge that exercise helps in maintaining body fitness and also reduces risk of injuries and ailments. I have done some statistical analysis to determine if the use of Fitness Centre has in anyway affected the company’s medical reimbursement cost. The total medical reimbursement cost for the past year amounted to \$102,600.

I have Rocky Mountain Mutual Case 3 calculated medical reimbursement cost pertaining to each category of employees (based on the extent to which they use the Fitness Centre). The following are the results. It is apparent that regular users of the Fitness centre are responsible for lowest medical cost averaging to an amount of \$100 dollars per person. Infrequent users of the Fitness Centre raise an average of \$300 per person. Those who do not use the facility at all incur an exorbitant amount of \$500 per person. 10% of the employees who regularly use the Fitness Centre contribute to only 2% of total medical reimbursement expenditure.

25% of infrequent users contribute 18% to the total Rocky Mountain Mutual Case 4 medical reimbursement cost. Whereas 65% of non users are responsible for 80% of total medical reimbursement cost. The Fitness Centre is an excellent tool that can be utilized strategically to lower the company’s medical reimbursement cost. If a company wide programme is conducted to encourage employees to utilize the Fitness Centre Facility we may be able to lower the medical cost.

Fitness Centre helps to lower absenteeism and boosts employee morale: My statistical analysis has also shown that people who use the fitness centre take half as many leaves as compared to their non user colleague. Folks who do not use the Fitness Centre take on an average 12 leaves a year. However those people who use the facility take an average of only 6 leaves a year. For the last eight months I have been conducting a wellness programme within my department to encourage more people to make use of the Fitness Centre.

The response was unnoticeable in the beginning but gradually more employees of my department started frequenting the Fitness Centre. Folks in my department now appreciate the idea of indulging in a refreshing workout at the Fitness Centre before the start of a work day. Due to the success of the wellness programme absenteeism in my department has gone down by 5% and productivity has increased. Morale among employees is at an all time high.. Consequences of closing the Fitness Centre: 35% of Rocky Mountain Employees presently use the fitness centre facility.

If the centre is closed we will experience a deterioration in employees health and fitness levels due to which Rocky Mountain Mutual Case 5 medical cost and absenteeism will increase. At present non users incur an expenditure of an average \$500 per person, at this rate our total medical cost will gradually escalate to \$125,000. A company wide wellness programme will surely motivate more employees to use the fitness centre. The wellness programme which I conducted within my department was hugely successfull.

With such a programme in place we can expect 80% of our total employee strength to begin frequenting the Fitness Centre. Of the 80% at least 20% may be expected to become regulars at the centre. In such a situation our medical cost would work to \$72000. As we recruit more employees the Fitness Centre will be a vital tool in minimizing medical cost. Gradually our employees will increase there fitness levels and this shall be reflected in further lowering of medical costs.

For those who are accustomed to using the Fitness Centre (nearly 35%), the lack of facility will take a physical as well as mental toll. I personally cannot be 100% productive if I miss my daily dose of exercise. There will be a decrease in morale and productivity among 35% of the Fitness Centre users. As we aim to increase our employee strength we will see that the cost of maintaining the Rocky Mountain Mutual Case 6 Fitness Centre will be paid our by the savings we make in medical cost and increased productivity which will result from reduced absenteeism.

I am sure you will consider the long term advantages that continued existence of the Fitness Centre will undoubtedly offer. Building the Fitness Centre cost the company a million dollars and we with strategic motivation programmes we will soon be reaping the rewards of this investment. Rocky Mountain Mutual Case 7 Description of the concepts used in composing this memo: The Rocky Mountain Case describes a necessity to write a highly persuasive memo. It is a typical example of communication which takes place between middle management and top management.

I have used a very conventional memo writhing style which begins with a ‘To’ field to denote the person it is intended for, it also contains a ‘From ’field, date and a subject line. I have deliberately made the subject line a bit long to reveal some of the benefits that the reader may avail by thorough examination of the memo. The memo has a well defined structure which explains the matter in a systematic manner. I have used charts generously since the aim of the memo is to provide incentive against a certain decision. The charts help to convey the incentives in an effective manner.

The memo contains some estimated values which denote the level of rewards which the reader can expect by going against a certain decision. The estimates are fairly reasonable and are free from exaggeration. Memo writing guidelines by Syverson and Littlefield have been very useful in preparing this memo. This source provided all the source needed for drafting a good official memo. Since this memo has to be persuasive it was essential to structure and format it in a manner that is most appealing and captures a persons imagination. Tips for making the memo persuasive were obtained from Writing Persuasive Messages.

## References

1. Syverson, Littlefield http://writing.umn.edu/tww/WID/business/resources/BA3033memo.htm Writing Persuasive Messages http://homepages.wmich.edu/~bowman/c4eframe.html

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