Frostburg Fit, a recreational facility, has experienced rapid growth from 5 part-time employees to 28 full-time and 43 part-time employees, but lacks proper management structures. There is no HR department, poor hiring practices have led to nepotism, and the hands-off leadership style of Gail has resulted in an unhealthy culture with low morale and high turnover. Several alternatives are proposed to address these issues, including management training, creating an HR department, hiring a new executive director, and holding a conference to develop a new mission statement.

1. Frostburg Fit:
The Importance of a Healthy Organizational
Culture
Team 5E- Division 1
Stephania Bernard, Amanda Campion, Heather Helveson, Katherine Taylor

2. Major Problems at Frostburg Fit
• Growth from 5 part time employees, to 28 full time and 43 part time
employees
• No HR Department
• Employees act outside of their job descriptions
• No employee files
• Gail is a good leader, less so an effective manager
• Gail’s hands off and non-confrontational management style lead to
unhealthy company culture
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3. Facility Expansion and Performance
Metrics
• In 1997 there were 250 children attending the recreational facility,
and 5 part time employees
• In 2015 there are 796 adult members, and 28 full time employees and 43 part
time employees
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4. Minor Problems at Frostburg Fit
• Poor customer service leading to member dissatisfaction
• Sloppy hiring practices leading to nepotism
• Low employee morale and unsatisfactory performance
• High turnover rate for part time employees
• Increasing number of employee substance abuse and insubordination
issues
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5. Poor Hiring Practices
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6. Alternative Solutions
• Supervisory staff, including Gail, could receive management training
• An HR Department could be created
• Gail could move to a ceremonial position
• Hire a new Executive Director
• The entire staff could go through training to improve customer service and
interpersonal skills
• Frostburg Fit could introduce an EAP
• Frostburg Fit could hold a conference day to develop a new mission statement
• Create anonymous surveys to gauge satisfaction during transition
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7. Discussion Question 1
If you were the supervisor, how would you have handled the verbal threat
made by the employee?
•Create employee file
•Document current and previous conflicts
•Speak to both employees separately
•Suspension without pay
•Require letter of apology
•Further infractions will result in immediate termination
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8. Discussion Question 2
If you were Michelle, how would you address your concerns to Gail?
What advice would you give to her?
•Recognize positive impact on community
•Outline existing unhealthy culture
•Advise her to think about her goals within the company
•Can she accomplish them from her current position?
•Advise her to reevaluate her position within the company
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9. Discussion Question 3
Assume Gail identifies the need to offer training to her supervisors and hires an
outside consultant to facilitate the session. Develop a comprehensive list of topics
that should be addressed in the training session given what you know from this
case.
•Hiring Practices
•Sexual and Non Sexual Harassment
•Personal Safety
•Workplace Violence
•Conflict Resolution
•Leading Effective Meetings
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• Employee Relations
• Employee Assistance Programs
• Effective Communication
• Performance Management
• Reviewing Existing Policies

10. Conclusion
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.
Running without an HR department, leaves Frostburg Fit open to internal conflict,
dispute and a negative standing with employees, members, and the community.
Frostburg Fit needs to undergo a culture change.
But how do we change a company’s existing culture?
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11. Changing and Managing Culture
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Company culture can be broken down into five artifacts and three levels.
“To successfully change or merge cultures,
a strong symbolic leader is needed.”
(Lussier, 2012)

12. Changing and Managing Culture
Four Hurdles to Changing Culture
•Cognitive
•Limited Resources
•Motivation
•Institutional Politics
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13. Implementation Strategies
• Move Gail to a ceremonial position
• Hire new Executive Director who will lead culture change and act as a
symbolic leader
• Create Human Resources Department
• Tiffany Schuster should change positions or be let go.
• Managers and supervisors should be held accountable to disciplinary policies
• Conference Day
• Implement EAP
• Supervisors participate in training seminars
• Create anonymous surveys
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