CH. 8: SPORT ORGANIZATIONS AND THEIR ENVIRONMENT
High environmental diversity promotes more...
...boundary spanning and roles/units a sport organization will have
Boundary spanners link...
...sport organization and its environment
Signs of Environmental Stability
1. If the organization is relatively consistent and dependable 2. Demands constantly come from very similar clients
Lawerence & Lorsch Research
1. The more complex and uncertain an organization's task environment is, the more differentiated the organization needs to be 2. The difference in thinking between managers
What are mergers and acquisitions as an externally direction action?
1. Type of growth strategy 2. Purchase a controlling interest or acquire ownership
What are joint ventures as an externally directed actions?
2+ companies forming a separate corporate entity
What is changing domains as an externally directed action?
Aquire new business, adding nre products or services
Task Environnment
Aspects of environment that can influence the organization's ability to achieve its goals
Argument of Stakeholder Theory (POST, PRESTON, & SACHS)
Both managers and scholars recognize the interdependencies between a firm and its sions of stakeholders
Environmental Complexity (DUNCAN)
Characterized by a large number of diverse elements interaction with or influencing the sport organization
What is environmental uncertainty? (DUNCAN)
DUNCAN saw that the uncertainty of an organizations environment is influenced by extent to which the environment is simple-complex and stable-dynamic
Complexity
Determined by the number of external elements influencing the organizations environment
Stakeholder Theory
Easy way to classify stakeholders: those who must be truly satisfied, those who should be satisfied, and those who don't need to be satisfied
What sectors affect the general environment?
Economic, political, sociocultural, legal, demographic, ecological, technological
What are the interlocking directorates as an externally directed action?
Individual from one company sitting on the board of directors of another
General Environment
Influences the industry in a general ways that ultimately impacts the organization
Burns & Stalker's Research
Identified these organizational structures: 1. Organic structures work best in rapidly changing environments 2. Mechanistic structures work best in stable environments
Perceived Environment
Managers select the aspects of their environment to which they will respond
What is a corporation as an externally directed action?
Occurs when a sport organization recruits influential people from important parts of its environment to be involved in the organization
What are contractual agreements as an external directed action?
One organization contracting to sell its products to another organization
Rationing as an internally directed action
Practice of allocating resources on the basis of some pre-established criteria
Domain
Territory that a sport organization stakes out for itself, in regard to the services/products it delivers and the market in which it operates
Smoothing
Reduces fluctuations in the demand for a product or service
Simple Environment
Small number of elements, mostly homogenous, influencing the organization
Argument of Stakeholder Theory (HARRISON AND ST. JOHN)
Stakeholder management is necessary to increase the ability to predict and control the external environment
When internally directed, buffering protects what?
The technical core from fluctuations in an environment
Why does a sport organization take internally directed actions?
To control environmental uncertainty by making changes to the structure and processes or the organization
Basis of planning and forecasting
Trends historically and indicators
Institutional Theory
Understandings and expectations of appropriate organization form and behavior that are shared by members in society
