Organizational Structure and PureGym

This assignment examines PureGym's organizational structure, specifically highlighting its flat organizational model suitable for budget gyms. It delves into the company's strategic management objectives, emphasizing core strengths and their utilization. The analysis also explores the benefits of a contingency approach to manage external threats like increased competition, staff turnover, unmotivated instructors, and funding issues. The SWOT analysis is discussed as a tool for reinforcing strategic objectives.

Running head: MANAGEMENT AND ORGANIZATIONS
Management and Organizations
Name of Student
Name of the University
Author Note

1
MANAGEMENT AND ORGANIZATIONS
Table of Contents
Introduction......................................................................................................................................2
Task 1- Introduction of PureGym....................................................................................................2
Task 2- Organizational Structure.....................................................................................................2
Task 3- Modern Management Approach.........................................................................................4
Task 4- Innovative strategic management objectives......................................................................5
Conclusion.......................................................................................................................................8

2
MANAGEMENT AND ORGANIZATIONS
Introduction
The management of the business is important in present economic situation, where the
managers operate in a highly turbulent environment (Gollenia 2016). However, the organizations
would be able to manage the challenges of the external environment if it employs appropriate
training and development activities. This report would discuss the management pattern of
PureGym based in United Kingdom. The organizational structure of the company would be
provided and the modern management approaches that can be used by the company would be
discussed. The strategic management framework models should be used to explain the two
strategic management objectives of the selected company.
Task 1- Introduction of PureGym
PureGym is one of the most popular health fitness clubs based in Leeds, United Kingdom
(Gym 2017). This gym chain was founded in the year 2009 and it is considered as the largest
gym in Britain as per as the membership is concerned. This is a budget gym, which also plans to
open around 300 gyms by the year 2020 (Gym 2017). The company belongs to the health clubs
industry. In the year 2015, this company acquired all the gyms of the rival fitness chain named
LA Fitness and expanded its business operations (Gym 2017). The gym offers various fixed/free
weights, cardio equipments and exercise classes for the members. The ownership of the gym is
privately owned by CCMP Capital as well as other investors. The Gym is considered as budget
gyms since it provides quality services at an economical rate.

3
MANAGEMENT AND ORGANIZATIONS
Task 2- Organizational Structure
The organization structure of PureGym is a characterized by a flat hierarchical structure
(Gollenia 2016). This kind of organizational structure is characterized by the automation of all
the processes. It is important for the budget gyms to control the cost factor and the flat
organizational structure does act as a good method to curb the cost factor of the organization
(Yinan, Tang and Zhang 2014). The organizational structure of the Gym is illustrated below-

4
MANAGEMENT AND ORGANIZATIONS
Fig: Organizational Structure of PureGym
Source: Created by author
In the organizational structure of PureGym, the members can join online and hence there
is no requirement of the operational staffs. The automated processes also ensure that the
marketing staffs do not need to spend time on store marketing or physical marketing (Wilensky
2015). PureGym has no swimming pool facilities and it also doesn’t have any Jacuzzi, which

5
MANAGEMENT AND ORGANIZATIONS
implies there is no need to recruit lifeguards. The Gym also doesn’t have reception staff as there
are automatic fingerprints installed at the entrance. The organization has wide span of control
and also it has relatively short chain of command so that there is a quick transmission of
information across the organization (Johnson et al. 2014). This implies that all the organizational
entities would be getting exposed to the information in the correct time.
The flat organizational structure is characterized by few levels of organizational
hierarchy, which implies there is fast communication across all levels of organizational hierarchy
(Morden 2017). This kind of organizational structure is considered as a low cost model in which
there is less cost incurred and hence the organization is a more effective one.
Task 3- Modern Management Approach
The modern management approaches should be implemented in the organization
PureGym, which would help in the accomplishment of the organizational objectives. The
contingency approach of management can be used for implementation in this kind of
organizations (Roza et al. 2014). This idea of management is suitable for PureGym since the
health club industry is an ever-changing one in which it is important for the managers to
implement strategies based on the current circumstances (Drafke and Murtaugh 2009). The
contingency style of management believes in the fact that there is no single to manage a
particular organization and the managers should be able to manage a particular situation based on
the different existing factors (Alonso-Almeida et al. 2016). The effective organizations should be
able to plan, organize and lead particular circumstances when they occur (Roza et al. 2014). This
approach to management assumes the fact that there is no universal solution for the
organizational issues.

6
MANAGEMENT AND ORGANIZATIONS
The managers at PureGym should implement the contingency style of management by
considering the present management structure of the firm. It is important to note how the
organization adapts to the external operational challenges (Mullins 2016). The organizational
structure at the selected organization is stable, which indicates that there is more level of
formalization, centralization, specialization and standardization in the process. The certainty as
well as predictability affects the use of rules and procedures in the organization, which should be
well utilized by the organization (Drafke and Murtaugh 2009). The unstable work environments
often indicate the fact that there is need for greater decentralization (Roza et al. 2014). This
would allow the gym to introduce flexibility as well as adaptability in the organization. It is also
important to focus on the organizational units that are operating in the various kinds of operating
environments so that there is greater coordination among the key entities (Vandeveer and
Menefee 2010).
Task 4- Innovative strategic management objectives
The formulation of strategic management objectives of the firm is important for the
overall accomplishment of the organizational objectives (Robbins and Judge 2014). The
managers would not be able to channelize the work if they are not aware of the strengths and
weakness of the organization (Drafke and Murtaugh 2009). For this purpose, a SWOT analysis
would be performed, which would help in the understanding of the strategic management
objectives of the firm.
The strategic management objectives of the firm include the following two objectives-

7
MANAGEMENT AND ORGANIZATIONS
 No contract- The gym authorities do not tend to bind the team members and hence they
have not created any contract (Vandeveer and Menefee 2010). This ensures the fact that
the members can join as well as leave the gym anytime.
 Online registration- The gym aims to make the admission process online so that they can
join as well as book their classes online (Gym 2017). This would not require them to
travel to the gym every time they require any assistance.
The SWOT analysis for the firm can be used to understand the above objectives of the
firm. It is discussed below-
Strengths
There are several strengths of the gym, which makes it one of the most popular gyms
across the country (Gym 2017). The following are the strengths of the company-
 Over 50 free classes every week
 Good ratings by Google
 Online services to the members
 Clean, safe and comfortable gym environment (Gym 2017)
 No contract and one can leave anytime (Gym 2017)
 It is open 24 hours and the members can work out any time in the day
 Offers free initial induction of the exercise
 Large number of changing rooms with showers and gyms
Weakness
There are also several loopholes of the gym which is defined as below-

8
MANAGEMENT AND ORGANIZATIONS
 Lack of parking space and parking availability (Gym 2017)
 Lack of latest gym equipments
 At peak times, all the changing rooms are full
 Lack of space in certain places of gym
Opportunities
The company has the following opportunities, which should be utilized well-
 Increasing health consciousness of the people and an increased number of population are
adopting fit lifestyle (Gym 2017)
 Gym is based in all the high footfall area districts, which means an increased number of
footfalls (Gym 2017)
 Increased demand for budget gyms
Threats
PureGym should also consider the following threats which are present in the external
environment of the firm-
 Increasing number of competition in the market
 High staff turnover, which often leads to financial losses (Gym 2017)
 The unmotivated instructors led to a decrease in the customer satisfaction
 Funding issues, this may lead to deterioration of the service quality of the gym.
The SWOT analysis was helpful in reinforcing the strategic objectives of the firm to a greater
extent. The strategic management objectives of the firms emphasize on strengthening of the core
advantages of the firm and utilizing them to the fullest.

9
MANAGEMENT AND ORGANIZATIONS
Conclusion
The management of an organization in a constantly volatile environment is a challenging
affair. The organizations should be active in reinforcing the channels of communication so that
there is an increased operational efficiency of the firm. The report discussed some of the major
organizational structures and also linked them with the selected organization. PureGym has flat
organizational structure, which is helpful the functioning of the budget gyms. The contingency
management approach would be more suitable in this kind of organization as it would help the
managers to deal with the external emergencies in a better way.

10
MANAGEMENT AND ORGANIZATIONS
References
Alonso-Almeida, M.D.M., Celemín-Pedroche, M.D.L.S., Rubio-Andrada, L. and Rodríguez-
Antón, J.M., 2016. Human and other critical factors in organizational learning in the hotel
industry: A contingency approach. Tourism & Management Studies, 12(1).
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Drafke., M., and Murtaugh.,J. (2009) The Human Side of Organizations 10th ed., FT Prentice
Hall
Gollenia, L.A., 2016. Business transformation management methodology. Routledge.
Gym, P. (2017). Low-Cost 24 Hour Gym Memberships | No Contract. [online] PureGym.
Available at: http://www.puregym.com [Accessed 27 Oct. 2017].
Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnér, P. (2014). Exploring Strategy:
Text And Cases. 10th ednHarlow : Pearson
Morden, T., 2017. Principles of management. Routledge.
Mullins L. J..(2016) Management and Organisational Behaviour 11edn., Harlow: Pearson
Robbins., S., P. and Judge., T., A. (2014) Essentials of Organizational Behaviour 12th edn. FT
Prentice Hall
Roza, L., Van Baren, E.A., Shachar, I., Meijs, L.C. and Hustinx, L., 2014. A contingency
approach to effective management of employee vol
Vandeveer, R. and Menefee, M. (2010), Human Behavior in Organizations 4th edn., FT
Prentice Hall