Don Mariano Marcos Memorial State

University
South La Union Campus
COLLEGE OF GRADUATE STUDIES
Agoo, La Union

Theories and Principles of Organization

and Management
 Management Concepts and Practice in Sports
Organizations
A. Definition and Types of Sport Organizations
● Organization
► By working in a collective, organizations can achieve this:
─ Economies of scale (improved efficiencies)
An economy of scale is the cost advantage a company has with the increased
output of a good or service. There is a negative relationship between the volume of
production of goods and services and the fixed costs per unit for a company.

─ Economies of scope (the number and variety of products &

services a company offers)
The theory of an economy of scope states the average total cost of a
company's production decreases when there is an increasing variety of goods
produced.
 Economy of scope and
HOW DO economy of scale are two
ECONOMIES different concepts used to
help cut a company's costs.
OF SCOPE AND Economies of scope focuses
on the average total cost of
ECONOMIES production of a variety of
OF SCALE goods, whereas economies of
scale focuses on the cost
DIFFER? advantage that arises when
there is a higher level of
production of one good.
► Process by which sport organizations achieve goals:

inputs → transformation → outputs

financial resources, technology, end results

raw materials skills of employees

● Types of Sport Organization

─ Public organizations
- Government agencies/departments
- responsible for delivery of recreation and sport programs
and maintenance of sport fields, arenas, swimming pools,
and parks.
─ Non profit organizations
-Volunteer
-Volunteer executives are responsible for the operation
and management of the organizations (tax exempt)
-Athlete Charities, US Olympic Committee

─ Commercial organizations
-Profit organizations
-Main goal = make a profit
-Professional sports teams, sport equipment manufacturers
 B. Organizational Environment and Effectiveness
● Organizational Environment
► Sport organizations must deal with their environments;
involves organizations devising strategies, using technology,
exerting power.
► Role of people in addressing an organization’s environment.
► Two organizational environment categories:
general and specific (or task)

1. General Environment Elements

- the economy (known brand vs generic)
- technology (ex. software)
- politics (ex. NAFTA)
- social and cultural forces (Level of education, standard of living)
- demography (age structure)
2. Elements of the Specific Environment
● Includes stakeholders external to the organizations
Who are the
consumers and
what are their
preferences?

Questions to ask
Questions
about to ask about
elements of
Who are the elements of the specific Who is the
suppliers? the specific
environment competition?
environment

What role does

the government
play in the
environment?
● Organizational Effectiveness

Effectiveness: the extent to which it achieves it goals

Efficiency: The achievement of goals using minimum

resources

Evaluating organizational effectiveness: Traditional and

Contemporary approaches

Effectiveness in sport organizations

(intercollegiate athletics = won-loss, grad rates, finances)
C. Organizational Strategy and Culture

● Plans to cope with environment

● Organizational processes involved in developing a
strategy to gain competitive advantage
● Strategy and the development of partnerships and
alliances
● Motives for the creation of organizational partnership
● Several studies have examined strategies, and in
particular alliances, in sport organizations
Organizational Culture

● Manifestations and culture

- Stories, myths, symbols, language,
ceremonies, rites, physical setting, artifacts

● Numerous studies have investigated culture

(ex. subcultures, values) in sport
organizations
References:
https://slideplayer.com/amp/8380186/

https://www.investopedia.com/ask/answers/042215/what-differe
nce-between-economies-scope-and-economies-scale.asp

https://www.firstmidwest.com/we-have-ideas/how-do-economies
-of-scope-and-economies-of-scale-differ/

https://quizlet.com/182456153/sports-management-chapter-4-
flash-cards/
Thank
you!