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Application Cases in MIS 70 CASE 7: BINARY SYSTEMS GROUP The Binary Systems Group is a medium sized software development company located in the Silicon Valley area of northen California. Tunover is a serious problem for all computer technology firms in this area and for Binary in particular. The projects that Binary undertakes require coordinated efforts of project development teams that work together for as long as three years on a large scale project. Work is seriously disrupted when employee turnover occurs. New employees not only must be brought up to speed on the technical details of a project, but they must also develop working and social relationships with other team members. Susan Santee, the Personnel Director at Binary, feels that programs encouraging employee interaction outside the work environment can help to address both aspects of this problem. Such programs can help to strengthen social relationships between employees and help to build those relationships more quickly. The increased camaraderie created should also improve overall morale and reduce employee turnover One program that has come to Susan's attention is the offering of free or reduced- rate health club memberships to employees. Such a program would be offered through a health club facility very near the Binary office complex. This would make it easy for Binary employees to use health club facilities before or after work, or even during the lunch hour. By promoting use of health club facilities around the time and place of work, it is felt that employees will schedule activities together or simply run in to each other in the health club facility. Another consideration in Susan's mind is the fact that several competing software development firms have begun offering this "perk" to their employees. Susan feels that is time to investigate the costs of such a program. She begins her investigation by examining the types of health club membership options offered by related firms in the area. She discovers that some larger firms have their own in-plant facilities. Many firms do not offer health club services at all. The remainder offer free or reduced price memberships to a health club with at least one facility within the immediate area of their offices. When memberships are offered, married employees are normally given family memberships. She decides to investigate the costs of fully supporting memberships for all employees, including family memberships, if desired, for married employees. At this point she begins discussions with health clubs. She is able to find three health clubs with nearby facilities that are willing to offer a corporate membership for Binary employees. Spreadsheet Cases 71 1. HealthyBodz operates a single facility that is located two blocks from the Binary offices. It offers a full range of health club services, although the number of racquetball courts appears limited. The owner is willing to guarantee that new courts will be built if Binary signs a contract with his club. HealthyBodz owner quotes you a flat rate of $21 per membership per month. For this fee, single employees could receive a membership and all married employees could receive a family membership. They would charge Binary only for those employees requesting membership cards from the club. 2. The Sweat Shop operates from a single, large-scale facility that is located approximately 4 blocks from the Binary offices. It offers a full range of services and appears to have sufficient facilities to accommodate the needs of all Binary employees without further expansion. The ownership of the Sweat Shop quotes you a price of $12.50 for each single employee and $17.50 for each married employee per month. For this fee, every employee would receive a membership and all married employees would receive a family membership. This rate is offered with the understanding that cards will be issued to all employees. 3. The Health Racket operates five health club facilities in the greater metropolitar area. The nearest facility is approximately one-quarter mile from the Binary offices. This facility currently offers only a limited number of aerobics classes, but all other facilities and services appear to be more than adequate. The ownership of The Health Racket is willing to commit to offering additional aerobics classes as needed if Binary signs a contract with them. The ownership of The Health Racket quotes you a price of $18 per individual membership and $24 per family membership per month. They would charge Binary only for those employees requesting membership cards from the club. In order to compare this alternative to the others, Susan sees that she will need to have a reasonable estimate of the proportion of employees who would plan to attend the club and become members. To assess the third plan, Susan also needs to know how many married employees will sign up for family memberships and how many will sign up for individual memberships. Married employees might opt for individual memberships if they have a family membership in a club near their home, for instance. She has her secretary do a quick phone survey to estimate the interest level. The secretary is to 72 Application Cases in MIS randomly select about 25 employees from each of four demographic categories for the survey. The survey categories and results are shown below. Employees are split into age categories of 35 or under and over 35, because Susan feels that younger employees are more likely to want to join a health club. For married employees, the employee is asked whether they would request a family membership or just an individual membership. TELEPHONE SURVEY RESULTS Number Who Would Request A Family Membership An Individual Membership Number Surveyed Marital Status Age 23 13 35 or 35 35 or 35 35 or 35 35 or 35 35 or