Sport Management Management Principles

Sport Industry is Growing Fast! Average value of professional teams, including the NFL, NBA, MLB and NHL: Most are worth hundreds of millions of dollars! Some are valued over $1 Billion! (i.e. Dallas Cowboys)  Licensed product sales are huge!  Broadcasting contracts worth billions! What does this all mean?

What Does the Growth Mean? There is a lot of money to be made in the sport industry. Management must focus on a more profit-oriented approach to doing business. The key to making profits is the effective utilization of people (the most important asset in an organization)

Definition of Management Management is all about finding the best way to work with people to get the job done in an efficient and cost-effective manner, ultimately maximizing profits.

Sport Managers – Who Are They? Athletic Director General Manager Director of Sales Coach Health Club Manager Ski Resort Operator The idea of finding the best way to work with people to get the job done applies to all segments of the sport industry, so it applies to all these different types of sport managers and more!

Three Management Theories The following are the three main theories of how managers might most effectively work with employees: 1. Scientific Management 2. Human Relations Movement 3. Organizational Behavior

Scientific Management (1890 – 1940) The specific motions of a job are scientifically studied to create a more efficient method of performing that job. There is “one best way” to perform a job. Workers enticed with money to produce higher output. Criticisms: Humans should not be treated like machines Jobs became very specialized, dull and boring Workers are not satisfied by money alone

Human Relations Movement (1930 – today) Studies found that output depended more on employee satisfaction with working conditions, rather than the steps in performing a task. More attention given to individuals, their needs, and the unique capabilities each brings to an organization. Belief – The organization would prosper if the workers prospered. Human Resource departments emerged

Organizational Behavior (today) Today it is common to view the best way to work with employees as a combination of the scientific management approach and the human relations approach OB recognizes the essence of a business is profitability so managers must be concerned about getting the job done efficiently. Yet, OB also stresses the human side of management.

Four Functions of Management The four main areas used to describe what managers do: 1. Planning 2. Organizing 3. Implementing 4. Controlling

Planning Defining goals Short-Term Planning – goals to be accomplished within one year. Reebok wants its sales representatives to be able to stock vendors with enough Iverson sneakers to meet consumer demands for the upcoming year – Reebok will be sure to order enough inventory to meet this goal. Long-Term Planning – goals to be accomplished over a longer period of time (5 to 10 years) Reebok wants to be the number one sporting goods/apparel company in the nation within five years. Planning will include long-term things the company needs to do to try to reach this goal.

Organizing Organizing and Preparing Staff and Resources (so you can reach the company’s goals) 1. Organizational Chart – shows the various positions within an organization and the reporting structure of the positions. 2. Position Descriptions – Defines the responsibilities of each position, and the qualifications of the person filling the position.

Organizing (cont.) 3. Staffing – the recruitment and selection of people to fill positions, and the orientation, training and development of employees after they are hired.  Recruitment and Selection – advertise the position, review applications, choose people to interview, check references, select “best fit”  Orientation – Introduce employees to the organization, its goals and policies, and fellow employees  Training – Focus on how to do the actual job  Development – commitment to improving employees by allowing them the opportunity to grow

Implementing Directing the activities of employees while attempting to accomplish the organization’s goals 1. Delegation – delegate/assigning responsibility and accountability for results, and authority to get the job done.  Difficult for new managers to release this control; but the “do it all myself” mentality is not realistic.  Important for the development of employees.

Implementing (cont.) 2. Motivate Employees 3. Stimulate Creativity 4. Handle Conflict 5. Ease Communication Difficulties In the implementation function managers do it all!

Controlling Measuring to ensure progress toward goals Performance Standards – compare employee performance to set standards, and react accordingly. Successful work - Utilize a reward system to acknowledge and encourage it. Unsuccessful work – Evaluate why; adjust accordingly.

Key Skills of Managers 1. People Skills Sport managers deal with a wide variety of people; from athletes making millions to the maintenance crew making minimum wage. Management must be able to respond appropriately to each – fairly, ethically and with respect.

Key Skills of Managers 2. Communication Skills Know how to say something to another is as important as knowing what to say. Both oral and written communication are important. Answering questions courteously and professionally wins a lifelong fan. Being rude ensures an empty seat in your venue. People talk – don’t lose existing or future fans! Must communicate facts in an organized, readable fashion. Must be able to write in many different styles. (examples: Sports Information Director; Coach)

Key Skills of Managers 3. Managing Technology Being familiar with technology and using it to one’s advantage. Examples: PROLOGUE and PACIOLAN computerized ticketing systems Online surveys for data collection of fan demographics, purchasing decisions, brand identity With expanding multimedia interactive technologies like the Internet, managers must examine how new developments affect the sport industry and react appropriately.

Key Skills of Managers 4. Motivation The ability to motivate employees to achieve organizational goals as well as their own personal goals is an art – and not easy! 5. Taking Initiative Good managers are always willing to step up and ask, “What else needs to be done?” By taking on additional tasks you’ll learn different aspects of the organization, and increase your network by meeting new people. Hard work and initiative is recognized and rewarded!

Key Skills of Managers 6. Managing Change Organizations always change. Managing change is all about helping people adapt to those changes. Employees resist change for many reasons (emotional, economic, social, status, security, skill and competence, path of least resistance) How can managers help people adapt? Be aware of what employees are feeling…provide additional training…implement change gradually…publicize success to build momentum and support…involve employees in designing and implementing change

Key Skills of Managers 7. Managing Diversity Any difference between individuals including age, race, gender, sexual orientation, disability, education and social background. Differences affect how people interact with each other. Management must foster a positive work environment for all people. It is important to include diverse cultures into management positions  new and diverse ideas and viewpoints Racial and Gender Report Card tells us…

Key Skills of Managers 8. Decision Making Four Step Decision Making Model 1. Create a problem statement/frame the problem 2. Generate Alternatives 3. Evaluate Alternatives 4. Select the Best Alternative Participative Decision Making – involving employees in the decision making process.

Key Skills of Managers 8. Decision Making (cont.) Empowerment – encouraging employees to make decisions within their area of operations. Decision makers still use the four step model, but not all decisions are made by top level management Encourages innovation and accountability Motivates employees