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Internal and external constraints - Hamptons

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Hamptons is currently experiencing high staff turnover. High staff turnover means that staff at Hamptons are regularly being employed and leaving the company. This is bad for the company, because it would mean that the relationships between the staff and the business are regularly being broken. In order to solve the problem of high staff turnover at Hamptons, careful management would need to be carried out. There are various constraints that would affect Hamptons in reducing its staff turnover. These could either prevent or reinforce Hamptons' efforts of reducing staff turnover. There are two types of constraints: internal and external. Internal constraints are factors within the business that may assist or prevent the fulfilment of a task. External constraints are factors outside the business that may open or close the possibilities in a business achieving its targets. To identify the internal and external constraints on Hamptons, a useful way of analysing this would be implementing a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis identifies the ways in which a business can be assisted in achieving an objective, or the ways in which it is prevented. Strengths and weaknesses are both internal constraints, and opportunities and threats are both external constraints. Below is a SWOT analysis of the internal and external constraints that intervene with Hamptons bid to reduce staff turnover. Effects of constraints The strengths of Hamptons reducing its staff turnover means that the factors of strength associated to them would reinforce its bid to stop staff turnover. ...read more.


* Shift work may be involved. Shift work is when workers work are arranged to work in a rotation, so that each of them work a specified number of hours, and there is always a worker available to provide services in the leisure centre. This could be good or bad, depending upon the amount of time that staff are required to work for, and the number of rotations that are necessary. Shift work would mean that the business would have to allocate the time for each worker effectively, so that all of the opening hours are covered throughout the day. This could lead to staff having more breaks. Weaknesses * Some members of staff, especially the gym instructors, may have to follow a repetitive routine in their daily work. This could be boring to them and they may lose interest. Hamptons could overcome this problem by carrying out job enrichment, job enlargement and job rotation strategies (Applying business theory). * Few job opportunities. Workers may lose motivation and interest in Hamptons if there are no job opportunities such as promotion. Because Hamptons has a flat structure, there are not many senior places that would be free for lower hierarchy staff to accommodate. Hamptons could provide more job opportunities by expanding, which is what they are considering, but the chance of promotion by replacing a worker could lead to conflict between the two individuals, so this should be taken into consideration. ...read more.


These benefits are usually intended for higher hierarchy employees. By providing more fringe benefits for lower hierarchy staff, there could be an increase in the level of motivation; staff would feel that they are being rewarded. On the other hand, this could prove to be an expensive scheme for the company, and they may desire the next aspect of benefit to stay motivated. Opportunities * Hamptons could expand. This strengthens its image, and could attract more people to apply to the leisure centre. This would require some costs, but in the long term, it could lead to the business making a higher level of profit. * Increase in market share if expansion occurs. By achieving an increase in market share, Hamptons could become better known, and its image and reputation could be strengthened. This is unlikely, as Hamptons is a local business that would not be in competition with other businesses. * Development of facilities could motivate staff more, and realise that Hamptons could have potential. This would require Hamptons investing in more equipment, and the deficits would have to come from somewhere (i.e. employees' wages). Threats * Rival companies could attract Hamptons' employees by offering better wages and facilities. Hamptons should carry out some research on this concept, and provide the necessary needs for its staff, as long as it can be afforded. * Taxes, interest rates, capital, etc. could lead to Hamptons making a loss. If staff found out that Hamptons was unsuccessful, they may decide to leave. ...read more.

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