1. Team 5E Division 1
Regional Case Study
Problem Statement(s)
The increasing size of Frostburg Fit’s staff from five part time employees to twenty-eight full
time employees, forty-three part time employees, and lack of established HR department to
accommodate the facility’s growth, have created fundamental management problems. Gail’s
hands off and non-confrontational style of management has affected the company’s culture
during its growth by focusing on the physical expansion and equipment available, rather than the
environmental and managerial transition. Individual employee files have not been established to
document disciplinary actions, employee hiring paperwork, or performance appraisals. Over time
the culture of Frostburg Fit has declined to create an unhealthy environment. To cover the bases
of the company’s daily activities, employees are acting outside of their job descriptions.
Established policies have not been enforced, sloppy hiring practices are leading to nepotism, and
employee problems such as substance abuse and insubordination are not being effectively
handled. These problems culminate in member dissatisfaction, low employee morale, and high
turnover rates of part time employees.
Alternatives
 The entire supervisory staff, including Gail who has no background in management, could
participate in management training seminars.
 A Human Resources Department could be created to manage proper hiring and employee
files.
 Gail could be moved to a ceremonial position, possibly president, instead of managing the
daily activities of the facility. Someone new could be hired to fill the Executive Director
position and lead a culture change.
 The entire staff could go through training seminars to improve customer service and
interpersonal skills.
 The company could introduce an employee assistance program to help struggling employees.
 The company could hold a conference day where all employees and managers meet with the
new Executive Director and participate in developing a new mission statement.
 Frostburg Fit could create anonymous surveys through Google Forms and Survey Monkey to
gauge member and employee satisfaction rates during and after the transition.
Suggested Answers for Discussion Questions for Scenario B
1. We would have created an employee file and documented the conflict between Richards and
Parker soon after the conflict occurred. It would also be important to keep a record of Richards’
previous infractions, even if it’s only an unofficial one. We would have talked with both
employees separately, and met with Parker first to gain a better understanding of his outlook on
the situation. We would have suspended Richards without pay and required him to write Parker a
letter of apology. Richards’ continued employment would be dependent on his writing the letter,
and whether or not Parker felt safe returning to work with him. If Richards returned to work, we
would make it clear to him that any further infractions would result in his immediate termination.
2. We would recognize her positive impact on the community and her clear leadership qualities.
We would gently outline the existing culture of conflict adverse management and the lack of
policy adherence, without assigning blame. We would advise her to think about what her goals

2. within this company are and whether or not she can accomplish these goals in her current
position. We would advise her to reevaluate what position in the company would be the best fit
for her, and to consider moving to a more ceremonial position that would remove the
responsibility of managing the daily activities of the facility.
3. Given what we know from this case, we would recommend that all employees in a
supervisory position undergo training in the following areas: hiring practices, sexual and non-
sexual harassment, personal safety, workplace violence, conflict resolution, leading effective
meetings, employee relations, employee assistance programs, effective communication,
performance management, and reviewing existing policies.
Conclusion
Frostburg Fit needs to undergo a culture change. In order to do so, four hurdles must be
overcome: cognitive, limited resources, motivation, and institutional politics. In addition to
overcoming these hurdles, Frostburg Fit needs a leader within the company who embodies the
necessary cultural changes. By participating in the creation of a new mission statement,
employees are made aware of the cultural changes that need to happen and are shown that their
input is valued, thus creating intrinsic motivation. By creating an HR Department and refocusing
employees on their job descriptions, we can reallocate resources. When the new Executive
Director is brought in, company politics will need to be addressed. An HR Department will help
enforce the policies that are currently in place but are not being put into action. Running without
an HR department, leaves Frostburg Fit open to internal conflict, dispute and a negative standing
with employees, members, and the community.
Implementation
 Frostburg Fit should move Gail to a ceremonial position where she can remain a part of the
company and a public figure. They should hire a new Executive Director from outside the
company to take her place and lead the company in a culture shift.
 The new Executive Director should give speeches, generate excitement and give public
statements to lead the culture shift. They could also use a slogan or symbol.
 Frostburg Fit should create a human resources department to manage proper hiring,
employee files, and enforce existing policies.
 Tiffany Schuster should change positions so she is no longer supervised by her husband, or
be let go.
 Managers and supervisors should be held accountable for following the changes, and if they
fail to do so, should be reprimanded according to the existing disciplinary policy.
 The company should hold a conference day where all employees and managers meet with the
new Executive Director and participate in developing a new mission statement. This will
show employees that their input is valued. If the employees believe they are valued, they are
more likely to care about and uphold the new culture.
 The company should also implement an employee assistance program to help employees
struggling with substance abuse and emotional issues.
 Employees in supervisory positions should participate in training seminars to increase their
efficacy as managers. These seminars would include topics such as workplace violence,
conflict resolution, employee relations, performance management, and reviewing established
policies.
 Frostburg Fit should create anonymous surveys to gauge member and employee satisfaction
rates during and after the transition.