Sport Organization Theory and Behavior

Running head: SPORT ORGANIZATION THEORY AND BEHAVIOR
Sport Organization Theory and Behavior
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Chosen Organization – The Australian Grand Prix Association
Part 1 – Organizational Theory and Research
1. Understanding how the Australian Grand Prix Corporation is a Sporting
Organization
The Australian Grand Prix Corporation is most definitely a sporting organization as it
is responsible for hosting the formula 1 series in Australia, with formula 1 grand prix being
regarded as one of the most popular sports across the globe. The annual formula grand prix in
Australia is staged by the Australian Grand Prix Corporation usually once in the month of
March and once in the month of October. Currently the Australian Grand Prix Corporation is
under contract to host annual grand prix events in Australia until the year of 2023. The
corporation was earlier based in Adelaide and now runs its operations from Melbourne. All
matters pertaining to Formula 1 racing Australia, right from determining the venue where this
is going to take place, to the Formula 1 stars who are going to be participating in it, and the
number of tickets that are going to be sold and the price at which these are going to be sold
are all determined by the Australian Grand Prix Corporation. The Australian Grand Prix
Corporation by virtue of all its activities therefore fit the definition of a sporting organization
very well. A sporting organization is a body that has sanctioning or regulatory function and is
seen to be manifest in many different forms. Sporting organizations are usually national in
character and may or may not be affiliated to international organizations or bodies. The
Australian Grand Prix Corporation is essentially domestic in the sense that it runs its
operations from Australia and conducts grand prix events in Australia twice a year. Yet the
event, that is, Formula 1 racing is international in character and involves participation by
formula 1 race car drivers from all over the world. The organization enters into collaboration
with multiple sponsors and donors to ensure that the Formula 1 racing event takes off

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successfully in Australia twice a year. The involvement and elimination of players from the
events and the supervision of rules and standards pertaining to Formula 1 racing are carried
out in detail by specific people appointed by the Australian Grand Prix Corporation for this
purpose.
2. Understanding what is Unique about the Sporting Industry and How this Affects
the Australian Grand Prix Corporation
As argued by Stewart and Smith (2010), one of the most important features of a sporting
industry or sport in general is the ability that such an activity has to involve fans. The
passionate loyalty and attachment that fans shows towards all of their favorite teams in sport
is something that is unique to this industry with loyalty often being the foundational emotion,
providing a sense of identification as well as vicarious emotions. Stewart and Smith (2010),
further argue that as and when fans develop this passionate sense of loyalty or fidelity to their
favorite sport stars, what developed in the process is a low cross elasticity of demand. Such a
low cross elasticity of demand is something that refers to products usually but in the domain
of sports, it implies that one game cannot be replaced too easily by an alternative option. In
this sense a sporting event is quite unique from all other commercial products that are
accessible in the market to which there is a price tag attached. Another one of the unique
features of the sporting industry as pointed out by Stewart and Smith (2010), is the fact that it
cannot be concluded that sporting teams are profit maximisers as such, with a high win-loss
ratio being what is regarded as the most accurate measure of a superior performance in sports.
When it comes to a sporting organization like the Australian Grand Prix Corporation much of
what is unique about sporting organizations in general is seen to be true. The Australian
Grand Prix events are seen to get fans involved to absolutely crazy and insane levels. People
come from all over the world to witness the Australian Grand Prix Events taking place and
there is an absolute furor among fans, both Australian as well as international, regarding the

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various racing events, and the formula 1 racers taking part in them. The Australian Grand
Prix Corporation enables passionate fans to come watch their favorite Formula 1 stars race
against one another, by offering great rebates, deals and discounts on ticket prices while
making it possible for them to witness Formula 1 scores in real time.
3. Understanding the Difference between Organizational Theory and
Organizational Behavior with respect to the Australian Grand Prix Association
Organizational theory states essentially that organizations are units of people who
have been brought together to achieve a common aim or set of collective goals and
aspirations. Organizational behavior on the other hand refers specifically to the study of
human beings in an organization. Organizational behavior alludes to how the behavior and
traits of human beings shapes the work that is done in an organizational set up. The
difference between organizational theory and organizational behavior is something that can
be witnessed with ease when one looks at the case of the Australian Grand Prix Corporation.
The Australian Grand Prix Corporation was established with the purpose of hosting the grand
prix in Australia, annually, or twice in a year, an event which involves participation by
Formula 1 racers from different parts of the globe and not just Australia. However, the
corporation is actually able to achieve all its goals and objectives in this respect because of
the hard work and the dedication that is shown by people who are working for the
corporation. Right from event management to ticket selling, to signing up Formula 1 drivers
for taking part in the different racing events, the Australian Grand Prix Corporation is able to
get its goals achieved as an organization, because of the collective efforts that are made by its
team. If the workers of the Australian Grand Prix Corporation were not enthused by the work
that is being done by the corporation and were not committed to their job roles, then it
wouldn’t be possible for the Australian Grand Prix Corporation to host the event in Australia
and keep hosting it as it is supposed to until the year of 2023. The corporation is serviced by a