Sport Organization Theory - PDF

Sport organization
theory
BY (NAME OF THE STUDENT
NAME OF THE UNIVERSITY)

Introduction
 This report will critically analyze a sports organization named the
Australian Grand prix Corporation.
 The report will conduct a situational analysis of the Australian Grand
prix Corporation to identify the organizational theories, structures,
goals and effectiveness.

Sports organization or not
 The Australian Grand prix Corporation is a sports organization as it
responsible for conducting different Grand prix in Australia

Uniqueness about sport and its
effect on Australian Grand Prix
Corporation
 The sport industry is unique in nature and as stated by Smith and
Stewart, (2010) there are ten unique features of sports which is the
reason that management of sports activities will require specific
management tools.
 The most unique feature is the development of irrational passion
among the viewers regarding their respective teams, sports and
respective athletes.
 The significance of sports is greater when taking activities such as
outcomes, success and celebrating achievements is considered. A sport
is an experience which drives other activities that develop from this
basic feeling.

Distinction between
organizational theory and
organizational behaviour
 As stated by Doherty, (2013), organizational theory includes the
organizational structure and designs which is used for increasing the
productivity and efficiency of the organizational processes in order to
achieve the goals and objectives of the stakeholders.
 On the other hand, Slack, (1993) states, organizational behaviour deals
with human interaction networks, where there is interaction among
people within a group that is analyzed to identify its cause and effect.

Critical thinking and
Interdisciplinary approaches
 The ability to think clearly and rationally to develop judgements about
beliefs and actions is known as critical thinking.
 Interdisciplinary approach is integration and use of analytical methods
from multiple academic areas for examining an issue, question, topic or
theme.

Goals of Australian Grand Prix
Corporation and its importance
 To provide Melbourne and Victoria with motor sport events of highest quality and international
level
 To negotiate and enter into different agreements so that Australian Grand prix Corporation can
conduct Formula One events by abiding with the rules and regulations
 To facilitate in improving the popularity of motorcycle and Formula One events by undertaking
actions in the field of management and promotion
 To develop a motor racing circuit in the Albert park which will support the activities of the
Formula One events
 To take necessary actions for different aspects of management such as financial, commercial and
conduct aspects for all the Formula One events hosted by the Australian Grand prix Corporation
 Take consent from the minister for hosting and entering into events of different motor sports in
order to promote motor sports into the society
 Complying to all the rules and regulations under the AGP Act

Resolving competing goals
 The competing goals defines the conflicting goals
within the organization where the goals set by one of
the team is countered the goals set by another team.

Difference in effectiveness and
efficiency
 Australian Grand prix Corporation has been effective
in hosting motor sports events for a long time and the
effectiveness of the activities of the organization had
enabled them to host these events for 83 times
starting from the year of 1928 (Grandprix.com.au.,
2017).

Data collection, analysis and
checking the quality
 The project phase will determine the data collection method where the
conceptual phase, production phase, design phase and maintenance
phase will have different methods of collecting data.
 The data would consist of the human error and equipment failures,
data will be collected from similar phases for the conceptual phase,
design phase will collect test data for the particular product, the
production phase will collect data that is historical in nature which is
often collected from the design phase

Analysis of the level of
complexity in organizational
structure
 The organizational structure of the sports organization is more complex
than the normal corporate organization due to the involvement of
volunteers and other groups actively working along with the sport
organization.
 In order to manage the level of complexity within the organization, the
managers will use ambidextrous capabilities where they look for
expansion opportunity along with the smooth running of the daily
organizational activities

Strategy used by Australian
Grand prix Corporation
 Australian Grand prix Corporation has been cutting their expenditure on
their additional costs to generate more revenue.
 The construction of the temporary track on the lakeside in Albert park
have been stopped.
 This also consist of renegotiations with the suppliers and giving
contracts to new suppliers that are offering cheaper prices for their
services.

Contd..
 The organization has focused on improving the quality of service and
experience to the consumers by improving the corporate
entertainments suites with better food and lavish fittings.
 This shows that the organization wants to achieve economies of scale
in their processes by enhancing the level of experience of the
customers.

Blue ocean strategic approach
and competitive advantage
 Australian Grand prix Corporation will have to make use of the blue
ocean strategy to create their own innovative product and market so
that they do not have compete with other sports organizations (Kim &
Mauborgne, 2005).

Potential strategic allies,
considerations and rationale for
choice
 The potential strategic allies of the
organization are the Australian Olympic
Committee; the Australian Sports Commission
and YMCA Australia.

Considerations
 The consideration the organization would have to
make before entering into an agreement with another
organization are as follows:
 A partnership agreement
 Check online presence
 Communicate Expectations

Contd..
 Organizational Values
 The business partner should have the similar values that of the other partner
otherwise reaching synergy in goals and organizational processes will be impossible which
will result in development of competing goals due to the increased complexity.
 Critical investigation
 The organization should critically evaluate the business partner from all possible
angles to identify the pros and cons of this merger. This will be good for the future
development of the relationship.
 Background Check
 It is crucial to do a background check of the company to identify any unusual
behaviours and dark areas of the partner which will affect the profitability of the
organization. This will enable the organization to identify factors that are possible threats
for organizations profits.

Change and isomorphism using
DiMaggio and Powell’s (1983)
coercive, normative and mimetic
processes
 Change is essential for survival in this modern business world and
globalization had made the behaviours of the c0nsumers more
unpredictable.
 Therefore, flexibility with the organization is required to improve the
quality of the products they are selling.
 Isomorphism is the level of similarity between organizations regarding
their organizational processes or structure or it can be considered as
the adaptability of one organization to current change in environment
in order to increase their chances of sustainability and profitability
(Dimaggio & Powell, 1983).

Relationship between change
and strategy
 Global organizations are imperative to change due to changing needs
of the consumers in the market.
 Strategy is essential to increasing the consumer base for an
organization and maximize their profit (Kikulis, Slack & Hinings, 1992).
 Change management and strategy are closely related where
organizations develop strategies to implement change management.

Influence of organization change
on structure
 Globalization has changed the modern business environment and
Australian Grand prix Corporation have significantly made changes to
their organization structure in the past decade according to the needs
of the organization.
 The organizational structure of the sports organization is more complex
than the normal corporate organization due to the involvement of
volunteers and other groups actively working along with the sport
organization

Influence on pace, linearity and
sequence
 Pace, linearity and sequence has a crucial part in change management
as change follows a specific time, pace, linearity and sequence.
However, various change management theories have been unable to
incorporate these factors and are often over looked..

Response to institutional
pressure
 The organization has responded to institutional pressure by
incorporating economies of scale by reducing the cost of their operation
and including other sports events that will grab the attention of the
non-motor sport enthusiasts.

Critical Analysis of sources of
individual power
 As stated by Bolman and Deal, (2017), power can be defined as the
possession of skills, authority and influence within an organization.
 Power can be utilized in both ways in an organization and the effective
way of using power is a way of gaining competitive advantage in the
market.

Legitimation or Delegitimation
of power
 The Australian Grand Prix Corporation have always been directed by
the sports authorities and sport’s governing body which will be
essential for making the changes within the organization.
 The organization consist of a hierarchical structure where they follow
the instructions provided by the ministry of sports (Uhlin, 2017).

Role of consultant in influencing
power and politics
 The consultant hold an important role in influencing power and
politics within an organization.
 The consultant has the ability to guide the client in using power and
politics in an effective way within the organization.
 Power and politics have both negative and positive aspect to it and the
consult can choose to provide the organization with guidance that is
required (Serazio, 2014).

Political landscape of Australian
Grand prix Corporation
 The political environment of Australia is highly stable and consists of
various sports committees to monitor the sports activities.
 The Australian Grand Prix Corporation are answerable to the Minister
for Tourism and Major Events and the AGPC board.
 AGPC reports directly to AGPC board that in turn reports to the Minister
for Tourism and Major Events.

Leveraging political networks for
organizational outcomes
 AGPC has been instrumental in leveraging their
political network for hosting brilliant events for the
past decade.
 AGPC is directly answerable to the Minister for
Tourism and Major Events and in order to increase the
popularity of motor sports in Australia they have seek
permission from the board and ministry.

Case of conflict within
organization
 Conflict is one of the most common factor affecting the operation of the
organization. Organization is common due to the diversity in the nature
of the modern organization.
 Conflict between individuals and teams are essential fort the growth of
the organization and at the same time has some negative effects
attached to it (Macbeth, Jones & Newsome, 2014).

One incident and process of
conflict manifestation
 The biggest area of conflict for the organization is the development of
the Albert Park in Melbourne so that a circuit could be developed.
 There were among the board in choosing the spot as a location for
hosting an event of such grandeur.
 The park consisted of fauna, flora and special environments which
could be in danger while developing a new circuit.
 On the contrary, this provides the visitors with the opportunity of
learning about the environment in these regions.

Sources of conflict
 The major sources of conflicts were the
activists and few members of the board
along with the ministry.

Strategies used to manage
conflict
 The Formula 1 committee and Ministry were
quick to make changes to the plans of the
layout so that it does not have minimal
impact on the surrounding fauna and flora.

Decision making and condition
for decision making
 Decision making is a process where person holding a particular
authority will make choices based on information gathered, decision
and alternative resolutions (Rothman, 2017).
 There are different steps associated with the decision making process
which is essential for taking effective decisions.
 The decision making process is based on three condition sand they are
risk, uncertainty and certainty.

Organizational culture
 The set of values, beliefs, norms and code of conduct represents the
psychological and social environment of the organization is known as
organizational culture.
 The organizational culture of Australian Grand Prix corporation is a
mixture if hierarchical and flat structure.
 The organization focuses on the health and safety of the employees
along with the preservation of the corresponding environment

‘Culture eats strategy for
breakfast’
 There is no doubt about the fact that organization culture is responsible
for successful implementation of a strategy.
 The strategy will never be successful if the workforce implementing it
are not passionate about the strategy.
 Therefore, there is complete agreement with the fact that without
effective organizational strategy cannot be implemented and the
opinion of the employees are more important in context to the strategy
(Whitzman, 2016).

Management of organizational
culture and change
 The organizational culture of any organization can be managed by
defining the norms and beliefs. This will consist of developing an
appropriate culture and aligning the workforce and the strategies
according to these organizational culture (Whitzman, 2016).
 The culture of Australian Grand Prix Corporation is appropriate
and effective which is the very reason that they have been quite
successful in hosting such as event. There is no need for making any
changes to the current organizational culture.

Behavioural approach to
leadership
 The most effective behavioural approach to strategy is contingency
theory which states that there is no correct approaches to leadership
and leadership qualities should change based on the situation
(Williams, 2017).

Recommendation, rationale and
implications
 The organizational culture and situation analysis of the organization shows that
there are few areas which can still be improved within the organization. The
recommendations for improving the organizational culture are as follows:
 Improving the level of transparency within the organization
 Performance management and rewarding the employees for their performance
 Increasing the flexibility within the organization
 Developing better communication with the organization
 Introducing non motor sports events and implement economies of scale to
reduce the operation cost
 Collaborating with other sports organizations

Conclusion
 Thus, it can be concluded from the study, that
management of sports organizations are highly
challenging and it is different form business
organizations due to their nature of complexity.
 The products offered by the sport organizations is
nothing but memorable experience which is totally
dependent on the quality of the service and the type
of event the organization has been able arrange.

Contd..
 The report has critically analysed power,
politics and organizational culture to provide
suitable recommendations.
 Conflict management is another important
component of the organization that has been
discussed.

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