KRLS 105 Intro to Management, Sport, and Recreation (PDF)

KRLS 105 INTRO MGMNT SPORT/PHYSACT/REC ___ Notes KRLS 105 LEC 1 Assignment Options 1. Edmonton Oil Kings Practicum ○ Sell tickets for an Edmonton Oil Kings game of choice. ○ Goal: Sell 75 tickets. ○ Past Project Idea Starters: Brainstorm project ide...

KRLS 105 INTRO MGMNT SPORT/PHYSACT/REC ___ Notes KRLS 105 LEC 1 Assignment Options 1. Edmonton Oil Kings Practicum ○ Sell tickets for an Edmonton Oil Kings game of choice. ○ Goal: Sell 75 tickets. ○ Past Project Idea Starters: Brainstorm project ideas to enhance ticket sales. 2. CRR (Monday @10am) with Marty ○ Contact: Marty Nedjelski ([email protected]). ○ Discuss specific tasks or expectations for the practicum. 3. Term Paper (Last Option If Not Accepted) ○ If the practicum options are unavailable, the final choice is a term paper. ○ Topic: Defining Sport and Leisure Management. ○ Industry Value: The sport industry is estimated at $620 billion worldwide. What Are You Buying or Selling? 1. Personal Training: ○ You are buying social interactions, knowledge, and experience. 2. Edmonton Oil Kings: ○ Consumers are buying entertainment and a family connection/experience. 3. Core Experience: ○ The main product is a spectator or participant experience with an uncertain outcome. Nature and Scope of the Sport Industry 1. Types of Sports: ○ There are diverse sporting opportunities available to consumers. ○ Understanding both traditional and new sports is crucial for industry success. 2. Settings for Sporting Activities: ○ Single, multi, and college sports. ○ Media, sports sponsors, professional services. ○ Facilities, manufacturers, retailers. ○ Events, meetings, and trade shows. 3. Sport Industry Segments: ○ Public: Federal, provincial, regional, and local nonprofit organizations (NSOs, PSOs, school and university sports). ○ Commercial: Professional sports, commercial sports, sporting goods, media, and corporations. Unique Aspects of Sport Management 1. Sport Marketing: Understanding the nuances of marketing within the sports context. 2. Sport Enterprise Financial Structures: How financial systems within sports organizations operate. 3. Sport Industry Career Paths: Different career trajectories within sport management. 4. Sport as a Social Institution: The significant role sports play in shaping social and cultural norms. Sport Management Task Clusters Refer to Slide 12 for a detailed explanation of task clusters in sport management. Sport Management Competencies: Critical Thinking Skills 1. Issues Sport Management Needs to Address:  ○ Becoming a critical thinker is essential for success in sport management. 2. Critical Thinking Defined: ○ It is not just thinking, negative thinking, or creative thinking but involves asking relevant, critical questions. Critical Thinking Skills Awareness of Critical Questions: Develop an understanding of interrelated critical questions. Ability to Ask and Answer: Be able to use critical questions to guide behavior. Critical Thinking Questions 1. What Are the Issues and the Conclusion? ○ Identify the main problems and conclusions in any situation. 2. What Are the Reasons? ○ Understand the reasoning behind decisions or events. 3. What Words or Phrases Are Ambiguous? ○ Identify terms like performance, code, injury that could be unclear. 4. What Are the Value Conflicts and Assumptions? ○ Uncover the underlying conflicts and assumptions influencing decisions. 5. What Are the Descriptive Assumptions? ○ Consider assumptions about what might happen, such as the NHL slowly phasing out fighting. 6. Does the Reasoning Contain Fallacies? ○ Look for flawed reasoning in arguments or decisions. 7. How Good Is the Evidence? ○ Evaluate the quality of the supporting evidence. 8. What Significant Information Is Omitted? ○ Identify any missing information that could affect the outcome. Future Challenges and Opportunities 1. COVID-19: Impact on sports events and management. 2. Technology: The increasing role of technology in making sports more accessible.  3. Ethics and Social Responsibility: Ensuring organizations uphold ethical standards. Types of Sport Organizations 1. Public Organizations: ○ Government-based entities focusing on public service. 2. Nonprofit Organizations: ○ These organizations are not government-controlled and aim to achieve objectives without profit. 3. Commercial Organizations: ○ Examples include TSN and Sport Chek which operate for profit. Organizational Environment 1. General Environment: ○ Factors like interest rates, the price of oil, the economy, and technology that affect sports organizations. 2. Specific Environment: ○ Stakeholders internal and external to organizations, including consumers, suppliers, and competition. Evaluating Organizational Effectiveness 1. Effectiveness: How well an organization achieves its goals (focus on results). 2. Efficiency: How efficiently resources are used to achieve goals (focus on activities). Organizational Strategy and Culture 1. Developing Strategy: ○ Steps include identifying goals, determining objectives (SWOT analysis), and creating a timeline for implementation. 2. Organizational Culture: ○ A combination of stories, myths, symbols, language, and rituals that shape how employees interact. Mintzberg’s Organizational Design Top Management: Decision-makers. Middle Management: Liaison between top management and the technical core. Technical Core: People responsible for the product creation. Organizational Change Organizational Life Cycle: The stages of growth an organization goes through, from entrepreneurial to formalization. Leadership and Management in Sport Organizations 1. Leadership Approaches: ○ Scientific Management: Focus on maximizing output through efficiency. ○ Human Relations Management: Emphasis on employee satisfaction. 2. Management Functions: ○ Planning, staffing, organizing, directing, controlling, and evaluating organizational processes. Leadership Styles and Theories 1. Transactional Leadership: Focus on rewards and corrections based on employee behavior. 2. Transformational Leadership: Inspires and motivates employees, encouraging innovation and personal growth. Decision Making, Authority, and Power 1. Steps in Decision Making: ○ Define the problem, identify criteria, evaluate alternatives, and implement the decision. 2. Sources of Power:  ○ Positional Power: Comes from an individual’s role within the organization. ○ Individual Power: Includes referent, expert, and informational power. Organizational Diversity 1. Supporting Practices: ○ Education, top management support, and systematic integration of diversity policies are essential for improving organizational diversity. 2. Strategies: ○ Governance, strategic planning, communication, and membership involvement help foster diversity. Community and Youth Sport 1. Origins of Community Sport: ○ Emerged in North America with influences from Indigenous sport, early settler contests, and voluntary sport clubs in the 1800s. 2. Governance of Youth Sports: ○ Organizations like YMCA, YWCA, and Little League played crucial roles in providing safe spaces for youth participation. 3. Ethical Issues: ○ Questions around access, governance, and focus on either education or elite sport development remain important in youth sport management. ○ Types of Cultures 1. Thick Cultures: ○ Strong cultures associated with high performance: In organizations with thick cultures, there is consensus among members on the core values. ○ Shared values guide recruitment: Organizations with a thick culture tend to seek out employees who align with their values. ○ Stability: Thick cultures are generally stable and resistant to change. 2. Thin Cultures:  ○ Constant turnover: Thin cultures tend to be found in environments with high employee turnover, leading to a lack of strong shared values. One or Multiple Cultures in an Organization Dominant Culture: Most organizations have a dominant culture that is widely accepted by the majority of employees. Subcultures: While there may be a dominant culture, subcultures often develop along societal lines or within departments. It’s important to recognize these differences when managing an organization. Organizational Culture and Effectiveness Fit between culture and strategy: There is no one “best” culture for every organization. Success depends on the alignment of culture with the organization’s strategy, environment, and technology. Thick cultures in stable environments: Thick cultures work well in stable environments but are difficult to change when the environment shifts. Creating Culture Founder’s influence: The founder of an organization has a lasting impact on its culture by establishing core values and a vision for the future. Peters & Waterman (1982): Founders must generate enthusiasm for their values and instill these values in employees by paying close attention to details. Managing Culture Focus on key elements: Management should emphasize aspects that are critical to maintaining the organizational culture. Crisis management: How an organization reacts to crises can reveal and reinforce cultural values.  Teaching and role modeling: Leaders in the organization need to deliberately teach and model the expected behaviors. Reward allocation: The criteria for distributing rewards, selecting, promoting, and even excommunicating employees all influence the organizational culture. Changing Culture Difficult but possible: Cultural change is challenging and can be either incremental or sudden. Three tests for cultural change: 1. Intrinsic motivation: Evidence that employees are motivated by the new culture rather than external pressures. 2. Behavior alignment: Whether employees naturally act according to the new culture or require direction. 3. Breaking old norms: Are employees acting against the old norms to support the new cultural values? Learning Objectives 1. Nature and Emergence of Professional Sport: Understand the key characteristics of professional sport and its development. 2. Unique Aspects of Professional Sport: Explore the distinctive features of the professional sport industry. 3. Interdependence of Leagues and Clubs: Learn how professional sports teams rely on each other for competition and success. 4. Governance of Professional Sport: Examine how professional sports leagues are structured and governed. 5. Labor-Management Relations: Understand the dynamics between labor and management in professional sports. 6. Role of Media: Discuss how the media influences professional sport operations. 7. Revenue Sources and Future Challenges: Identify how professional sports generate income and the challenges they face moving forward. Nature of Professional Sport Powerful Role in Society: Professional sports have a significant influence on social, cultural, and economic aspects of society. Three Key Principles of the Industry: ○ Labor: The athletes who provide the talent. ○ Management: Team owners, executives, and managers who run the organizations. ○ Governance: The bodies that regulate and control the operations of professional sports. History of Major Professional Sports Historical Developments: ○ Early professional sports were marked by boosters (the action/people of promoting) and ringers (they have a lot of expertise and they are really good at a sport) who sought to improve team performance by any means necessary. ○ The concept of shamateurs refers to athletes who were paid while maintaining the appearance of being amateurs. ○ Ringers would be pulled in by the boosters (Broken time payments compensation for missing a day of work while playing for a team) ○ Reserve clause (Option clause) - Players that didn’t have the ability to play for other teams because you have the right to keep them on your team. Inclusion and Exclusion: The history of professional sports is also defined by periods of inclusion and exclusion based on race, gender, and other factors. Factors Affecting Growth: The rise of professional sports is influenced by various social, economic, and cultural factors. Unique Aspects of Professional Sport 1. Interdependence: Teams must compete on the field while cooperating off it for the success of the league. ( how the businesses relate to each other ) 2. Structure and Governance: Professional sports have unique organizational structures, with commissioners, team owners, and committees. 3. Labor-Management Relations: The relationship between players and management is distinctive, especially with issues like free agency and collective bargaining.  4. Role of Media: The increasing role of television, social media, and emerging digital platforms plays a vital role in shaping professional sports. Interdependence in Professional Sports League Product: The success of professional sports depends on the quality of competition, which is a shared product of the league. ( Create a product that gives the perception of win and loss competition that gets the viewers Cooperation and Competition: Teams need to cooperate to make the league profitable while still competing fiercely on the field. "League Think": A mindset that promotes league-wide success rather than focusing solely on individual teams. Revenue Sharing: Teams share certain revenue streams, like TV deals, to maintain financial balance. Competitive Balance: Efforts are made to ensure that no team dominates too heavily, keeping the league competitive. Structure and Governance of Professional Sports League Commissioner: Responsible for overseeing league operations and enforcing rules. (The employee) Board of Governors: A committee composed of team owners that helps guide league decisions. Central Administrative Unit: Coordinates the league's business and operational aspects. Responsible for Revenue sharing, scheduling, they grant territorial rights to/for the team. ) Territorial Rights: Teams have exclusive control over specific geographic areas to reduce intra-league competition. Idematiom fee - violates Reduce intra -league competition: Labor-Management Relations Antitrust and Labor Exemptions: Professional sports are governed by unique legal frameworks that impact competition and labor. Antitrust: they try to stop/prevent cartels or monopolies corporations that control everything such as the price of oil due to its massive  amount of production and they attempt to increase the prices. Labour: to increase their own personal wages allowing unions Collective Bargaining: Negotiations between players and management to determine working conditions, salaries, and other aspects of employment. ( Being a negotiation against antitrust ) (the players come together in front of their owners for their rights.) Competitive Labor Market: Players seek more freedom in choosing teams, which leads to: ○ Free Agency: Players can negotiate with any team once their contract ends. (rights are held by a team by after a certain amount of years you are able to go where you please) ○ Player Draft: Teams select new players from a pool of eligible athletes. (The worst teams get the best picks, to create those teams to become more competitive Restrictions on Management: To ensure competitive balance, leagues impose: ○ Salary Cap: Limits on how much teams can spend on player salaries. ○ Luxury Tax: Teams that exceed the salary cap pay additional penalties. If you pay more than the salary cap but they charge you and they use that fee to give to the weaker teams to help them become more competitive in their bad fields. Role of Electronic and New Media Importance of Television: TV is crucial for professional sports, increasing visibility and providing significant revenue. ( The owner wanted to delay the broadcast of the game for the viewers to purchase the tickets to be able to watch the game. ) Sport/Media Complex: The relationship between sports and media is symbiotic, with each benefiting from the other. ( Emerging Media: Digital platforms and social media are becoming new sources for sports coverage, expanding the reach of professional sports. ( tracking technology, chips that they wear to identify players attributes that help the team display or collect data on the player for the betterment of the team and their development. ) Revenue Sources for Professional Sports Teams 1. Media Contracts: Deals with TV networks and digital platforms provide a substantial portion of team income. ( 2. Gate Receipts: Revenue from ticket sales at games. ( All the money you get from attending the games, The revenue gained from the products given while the game is being played )  3. Licensing and Merchandising: Profits from the sale of team-branded merchandise and licensing deals. 4. Sponsorship: Companies pay for partnerships, brand visibility, and endorsements. ( Naming rights agreements, 5. Public Subsidies for Facilities: Governments often contribute to the construction or renovation of sports stadiums and arenas. ( Example: the oilers control all the revenues in rogers place) Future Challenges and Opportunities in Professional Sports Maintaining Labor-Management Harmony: Ensuring peaceful and productive relations between players and management is crucial. ( Developing New Revenue Streams: Teams must innovate to generate income beyond traditional sources. ( Max out the gate revenue, Stadium series, Logos on jerseys) Meeting Technology Challenges: The rise of new technologies, such as streaming, presents both opportunities and challenges for professional sports. ( Managing Globalization: As professional sports become more global, teams and leagues must adapt to international markets and fans. ( athletes coming globally, import rules the number of players allowed to import into the country foreign players)