Organizational Theory and Design Sports Industry

Question: Discuss about theOrganizational Theory and Design for Sports Industry. Answer: Introduction The main of the study is to shed light on the importance of the leadership and the strategies of a company. For this particular assignment, the Sports industry of Australia have been considered. Further to carry out a detailed study, the Pacific Sports Management company has been chosen. The study includes the structure of the business that the company follows. The leadership style of the company is further discussed that helps to understand the performance level of the company since effective leadership is one of the keys to ensure efficiency in the organisation. Being one of the renowned brands in the market of Australia, the company has been following certain strategies that help the company to perform its business in the home market as well as in the overseas market. Pacific Sports Management (PSM) is one of the leading sports company in Australia. The company is known to provide personalised and exclusive management to the clients both in Australia and in the international market. The objective of the company is maintaining the level of hard work and loyalty. The company offers elite corporate network exposure to its clients and customers, which supports the career and their post career. Structure of the Company The Pacific Sports Management Company follows a line and staff organisational structure within the organisation. The company has a direct and a vertical relationship with the various levels in the organisation. The organization has both line and staff departments where the staff department allows the line people with advice and assistance in areas that are specialise such as quality control advising production department. The company replaced the staff authority of functional authority organisational structure with the staff responsibility (Eden and Ackermann 2013). This helps the company not to violate the principle of unity of command. Pacific sports management has three types of specialized staffs such as the advising, service and the control. The staffs of the company perform either any one or two of the above-mentioned function or all the functions together. The line personnel use the expertise of staff specialist to make the organisational structure of the company effective. Th e capability and the span of the control of the line managers of PSM can be enhanced, as they are relieved of a number of the functions (Hitt, Ireland and Hoskisson 2012). The staff people perform these functions in order to assist the line. Figure 1: The organisational structure of Pacific Sports Management (Source: Hendriks and Karsten 2014) Pacific Sports Management uses the line and staff organisational structure for its company as the managers receive many benefits from this organisational structure. The structure offers a direct vertical relationship between the different levels of the organisation that allows higher flexibility and specialization. The higher authority of the company easily identifies the knowledge and the expertise of the specialist. As the organisational structure has three types of specialised staff, the work is divided effectively that improves the organisational performance (Rothaermel 2015). The advisory loos after the management information system of the company, operation research and quantitative techniques, industrial engineering and planning. The service staffs carries out the activities of maintenance, purchase, stores, financing and marketing (Kane and Patapan 2014). On the other hand, the staffs of the control department ensure quality control, cost control, auditing etcetera. However, as argued by Shafritz, Ott and Jang (2015), this organisational structure might create confects in between the line and the staffs. There are chances for the staff officer to resent their lack of authority that creates low efficiency of the company. Nevertheless, the line and staff organisational structure is further advantageous as the Company is able to increase the span of control, relieves the line authority from the task of specialized decision and routine. There is no need for all round executives that supports the business of Pacific Sports Management. Leadership Style of the Company The PSM team is a dedicated team of professionals that have individuals with diverse skills. The team aims to provide service to the unique clients from the sports and entertainment contract, film and television production, sponsorship, publishing etcetera. The company follows a democratic leadership style in which the members or the staffs of the team are allowed to actively participate in the decision-making process. The employees are allowed to participate and freely exchange their views and ideas. This helps to increase the motivation level within the employees of PSM. The managing director and the owner of PSM, Chris Orr had an experience of fifteen years in the sports marketing and management industry before he established his own company. As per his perception on order to increase the efficiency of the company, it is necessary for the company to increase the productivity of the staffs working for the company. The employee productivity can be increased by increasing their motivation level and job satisfaction (Mellahi and Frynas 2015). Therefore, Chris Orr intends to follow the democratic leadership style that allows the employees to participate in the organisational activities. Thus, the director of PSM acts as a democratic leader in achieving the organisational goals. The director of sport of the company, Gavin Orr plays the role of identifying the athletes company into the organization. The director of sports represents the day to day welfare issues of the athlete. The greatest athletes in the rugby game are recruited by the company to assist the clients of the company. In the democratic leadership the workers or the subordinates are able to participate in the decision making process that helps them to feel satisfied with the job. The workers in PSM are aware of the activities happening in the organization, which accelerates the employee production. The subordinates have full opportunity to utilise their individual capabilities (Daft 2015). However, the decision-making is delayed, as a number of individuals are included in the process. The decentralization of the authority restricts the use of less competent executive. Strategies of the Company within Australian Market The Pacific Sports Management company uses different strategies within the Australian market that helps the company to achieve higher revenue and profits. The company implements branding strategy that increases the brand image. The company uses the attitude branding and iconic banding strategies. The company intends to represent larger feelings that is not only connected with the product and consumption of the products (Hill, Jones and Schilling 2014). The iconic branding of PSM represents having aspects that helps to contribute to the self-expression and personal identity of the customers. Moreover, the company uses pricing strategies that helps to reduce the price of the products by reducing the cost of the products. The low price of the products and the services offered by the company supports the company to attract more customers (Goethals et al. 2014). Thus, a higher demand increases the revenue and the profit earned by PSM. Pacific Sports Management sets up comprehensive plan that guides the athletic department to grow and develop in the future. The company uses the PESTLE analysis to carry out a market research of the present markets in Australia. The strategic management helps the managers to understand how the key analytical factors affect the business (Shapiro 2014). The company is further able to formulate missions and goals that help to increase the efficiency of the company. Moreover, the stakeholder valises, powers, interest and the expectation of the company can be increased with the help of the strategies. The company implements strategies that increase the satisfaction level of the employees and the customers (Marion and Gonzales 2013). In addition to these strategies, the PSM uses the resource-based strategies that help the company to use the resources effectively. The strategies used by PSM in the home market that is in Australia, helps the mangers to manage the changing issues in the sports and event industry. The risk faced by the company can be easily accessed by the various strategies used by the company (Slack 2015). The strategy further allows the managers to understand the benefits and the risk related to the leadership styles used by the organisation. Strategies of the Company with Overseas Market The Pacific Sports management considers international marketing strategies as the company deals with the overseas clients. The company not only operates in the market of Australia but also serves the customers in Asia, UK, USA and UAE. The company therefore needs to carry out proper market research of the international market so as to understand the rules and regulation of the market in which it operates (Van de Ven, Ganco, and Hinings 2013). The ethical issues of the economy have to be maintained by the company that supports smooth business of the PSM. In order to run business in the international market of India (Asia), the managers of PSM uses the cost effective strategies that helps the company to reduce the input cost and the manufacturing cost of the company. When the company is able to produce the products and services at a comparatively lower cost, the company achieves a competitive advantage. This allows exporting the products in the international market as the company has a comparative advantage in producing goods (Cummings and Worley 2014). Further, the company uses the advertising strategy that helps the company to attract more clients in the market of USA. The company further uses the merger and acquisition strategies in the UAE and UK market to increase the revenue and the profit. The company achieves significant financial benefits and in case of losses, the companies are able to share the loss. The cost of research and development can be decreased with the help of merger and acquisition. The finds and the valuable assets for new development can be accessed with the help of the merger and acquisition strategy (Lizardo and Pirkey 2014). The market share of the company can be increased as PSM receives wider customer base. Moreover, through marketing budgets, the purchasing power of the company increases while the overhead cost is reduced. When PSM buys up intellectual property, the products and services becomes cheaper. Thus, the company applies these above strategies in the international market that increase the effectiveness and the productivity of the company. Conclusion and Recommendation From the detailed analysis about the Pacific Sports Management it can be mentioned that the company has an effective organisational structure that allows the company to care out all the organisational activities in a systematic manner. The company considers the line and staff organisational structure within the organisation. The company uses the democratic leadership style that allows the company to increase the efficiency of the employees that in turn increases the productivity of the company. The company implements strategies in the market of Australia and in the international market that helps to increase the market share in both local and international market. The company mainly implements the pricing strategies and the branding strategies in the market of Australia. The cost effective strategy, the merger and acquisition strategy is used in the international market to achieve higher market share. However, the managers of Pacific Sports Management of the sports industry needs to uses tools such as PESTLE and SWOT analysis to understand the internal as well the external environment of the company. The proper knowledge about the market helps to establish marketing strategies that can effectively be used to achieve the organisational goals. On the other hand, it is necessary for the company to use the leadership style effectively such that the risk of the style can be easily minimised. The company is able to increase the productivity of the workers when the leaders are able to lead the team effectively. Therefore, Pacific Sports Management Company not only needs to effectively implement the leadership style but also maintain it. As the democratic leadership is time consuming it should be ensured that the managers are able to design a proper activity plan and abide by the plan. The leader of the company that is the owner, director and other higher authority has to guide the employ ee in such a manner that a proper effective teamwork is created. The teamwork establishment is necessary that increases the productivity, revenue, profit and the market position of the company in the market of Australia and in the overseas market. References Cummings, T.G. and Worley, C.G., 2014.Organization development and change. Cengage learning. Daft, R.L., 2015.Organization theory and design. Cengage Learning. 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