Chapter 2 Management Principles Applied to Sport Management In 2009, there were eight billionaire owners of baseball franchises; when ticket sales plunged down 7%, six owners saw their team values increase.

Definition and History Goal of sport managers To get workers to do what the manager wants in an efficient and cost-effective manner Management theory evolved through two phases Scientific management Human relations movement Today: Use of organizational behavior Study and application of the human side of management and organizations

Definition and History: Scientific Management Taylorism Workers should not be doing the same job different ways, but instead in the “one best way” (most efficient way) Manager can get workers to perform job the “best way” by enticing them with economic rewards © Kiam Soon, ShutterStock, Inc.

Definition and History: Human Relations Hawthorne studies: Social factors in the workplace were important, and job satisfaction and output depended more on cooperation and a feeling of worth. Mary Parker Follett: Effective, motivational management existed in partnership and cooperation.

Functional Areas Sport managers must perform in a number of functional areas and execute various activities in fulfilling the demands of their jobs. Areas include planning, organizing, leading, and evaluating. This list is not comprehensive because organizations are constantly evolving.

Functional Areas: Planning Defining organizational goals and determining the appropriate means by which to achieve these desired goals Setting course of action for the sport organization Organizational plans should change and evolve Should not be viewed as set in stone Managers must participate in both short-term and long-term planning

Functional Areas: Organizing Putting plans into action Manager determines what types of jobs need to be performed and who will be responsible for doing these jobs Develop an organizational chart Develop position descriptions Develop position qualifications Staffing Orientation, training, and development of staff members

Functional Areas: Leading “Action” part of the management process Delegation: Involves assigning responsibility and accountability for results to employees Managers must manage any differences or changes that may take place in organization Managers handle conflicts, work problems, or communication difficulties; stimulate creativity; and motivate employees

Functional Areas: Evaluating Measuring and ensuring progress toward organizational objectives Progress is accomplished by the employees effectively carrying out their duties Establish reporting systems, develop performance standards, compare employee performance to set standards, and design reward systems

Key Skills: People Skills Sport management industry is a “people-intensive” industry Interaction with unique clientele Must be able to treat all people fairly, ethically, and with respect © Photos.com

Key Skills: Communication Knowing how to say something to another person is equally as important as knowing what to say to another person. Answering each question professionally and courteously wins a lifelong fan. Sport managers must be able to treat all people fairly, ethically, and with respect. Sport managers are often asked to give speeches. Sport managers must be able to write in many different styles.

Key Skills: Managing Diversity Differences between individuals, including age, race, gender, sexual orientation, disability, education, and social background Women and minorities still underrepresented in managerial positions in the sport industry More women, people of color, and people with disabilities are needed at managerial level in the sport industry Employment process: Recruitment, screening, selection, retention, promotion, and ending employment

Key Skills: Managing Technology Usage of technology in the sport industry For example: customer data collection and advanced ticket systems Usage of technology in the workplace For example: videoconferencing and multimedia presentations Computerized ticketing systems such as M-ticketing, PACIOLAN, and PROLOGUE Online surveys used for data collection MLB Media Tracker and Fan Tracker Paciolan – Use Ottawa Senator’s pdf file for reference. Kiosk Applications Customer Reward/Points Information Ticket/Cash Redemption Event/Betting Ticket Purchase Promotional Offers/Giveaways Check-In & Way-Finding Benefits Reduced Labor/Overhead Costs Increased Convenience & Decreased Wait Times Increased Customer Satisfaction/Loyalty Accurate Monitoring & Reduced Reporting Errors Ability to Gather Targeted Patron Information

Key Skills: Decision Making Need to have a comprehensive understanding of the opportunity or problem, and engage in a decision-making process that will lead to an effective decision Participative decision making Employees or members of the organization participate in the actual decision-making process Group decision making should be used when: more ideas need to be generated, there is a great deal of information to share, alternative perspectives are needed, and the fairness of the decision is highly valued Leadership Styles In 1939, a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. While further research has identified more specific types of leadership, this early study was very influential and established three major leadership styles. In the study, groups of schoolchildren were assigned to one of three groups with an authoritarian, democratic or laissez-fair leader. The children were then led in an arts and crafts project. Researchers then observed the behavior of children in response to the different styles of leadership. Authoritarian Leadership (Autocratic) Authoritarian leaders, also known as autocratic leaders, provide clear expectations for what needs to be done, when it should be done, and how it should be done. There is also a clear division between the leader and the followers. Authoritarian leaders make decisions independently with little or no input from the rest of the group. Researchers found that decision-making was less creative under authoritarian leadership. Lewin also found that it is more difficult to move from an authoritarian style to a democratic style than vice versa. Abuse of this style is usually viewed as controlling, bossy, and dictatorial. Authoritarian leadership is best applied to situations where there is little time for group decision-making or where the leader is the most knowledgeable member of the group. Participative Leadership (Democratic) Lewin’s study found that participative leadership, also known as democratic leadership, is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members. In Lewin’s study, children in this group were less productive than the members of the authoritarian group, but their contributions were of a much higher quality. Participative leaders encourage group members to participate, but retain the final say over the decision-making process. Group members feel engaged in the process and are more motivated and creative. Delegative (Laissez-Faire) Leadership Researchers found that children under delegative leadership, also known as laissez-fair leadership, were the least productive of all three groups. The children in this group also made more demands on the leader, showed little cooperation and were unable to work independently. Delegative leaders offer little or no guidance to group members and leave decision-making up to group members. While this style can be effective in situations where group members are highly qualified in an area of expertise, it often leads to poorly defined roles and a lack of motivation.

Key Skills: Organizational Politics Use of power or some other resource outside of the formal definition of a person’s job to get a preferred outcome Four types of political tactics used Coalitions Outside experts Links/networks Controlling information

Key Skills: Organizational Politics (cont.) Sport organizations have formal (e.g., athletic director) and informal (e.g., coach) leaders. Learning who the informal leaders are in an organization can help new sport managers understand politics of a sport organization.

Key Skills: Managing Change Managers should appreciate employees’ resistance to change. Plan for resistance, involve employees, and provide additional training and communications Managers should select priorities for change. Managers should deliver early tangible results. Managers should publicize successes to build momentum and support. Managers must make sure top management sponsors are fully committed to implementation.

Key Skills: Motivation Critical for everyone to be on same page when it comes to working to accomplish organizational goals and objectives Many theories: Maslow’s hierarchy of needs, Herzberg’s two factor ideas, Vroom’s expectancy theory, and Adam’s equity theory Katzell and Thompson: Appropriate motives and values; attractive and consistent jobs; defined work goals; appropriate resources and supportive environments; performance reinforced; harmony

Key Skills: Taking Initiative Initiative enables you to learn about a different aspect of sport organization you are working with Allows you to meet and interact with people outside of office you work in, thus increasing your network Shows your employer your commitment to working in sport industry

Current Issues Diversity Perform self-study to evaluate effectiveness of recruitment and employment of diverse individuals Managing technology Understand how expanding technology will improve customer relations and service International sport management Be aware that domestic models of sport governance cannot be unilaterally imposed on other cultures New management theories Empowerment and emotional intelligence