Sponsorship Management: A Status Report

ABSTRACT

Based on the experiences and knowledge of a sport marketing university professor and the CEO of a sport marketing firm, this paper provides a hands-on status report on sponsorship management. It provides a contemporary view of sponsorship theory and practice in an effort to provide readers with a view on sponsorship as it functions both in terms of its use by practitioners and its significance in management theory.

Introduction to Sponsorship

Sponsorship, a relatively recent promotional tactic is where a “corporation [or other investor] creates a link with an outside issue or event, hoping to influence the audience by the connection” (Rifon, Choi, Trimble & Li, 2004). This ‘link’ or ‘association’ with a specific property (known as the ‘sponsee’) is the key in differentiating sponsorship from other promotional strategies, as it enables the investor (known as the ‘sponsor’) to not only receive the related promotional benefits (TV/print exposure, branding opportunity, etc.) but to be associated, in the minds of consumers, with the sponsee. For example, Lachowetz & Irwin (2003), in their survey of 500 spectators at the 2000 FedEx St. Jude Classic golf tournament, found evidence suggesting that spectator response to the sponsor (FedEx) is influenced by their affinity for the cause which the tournament benefits (St. Jude’s Children’s Research Hospital).

In terms of industry size, global investment in sponsorship has progressed from approximately US$500 million in 1982 (Kuzma & Shanklin, 1994) to US$24.4 billion in 2002 (Kolah, 2003) to an estimated US$28 billion in 2004 (IEG, 2004). This torrid and recent growth is forecasted to continue into the future (Kolah, 2003). In terms of its contribution to promotional spending, sponsorship has increased in importance from 2.5% in 1987 to an estimated 5.8% in 2001 (IEG, 2000) suggesting that sponsorship has become an integral part of the promotional mix. A number of academic studies (i.e. Cunningham and Taylor, 1995; Meenaghan, 1991) support this

In a similar fashion to the American Marketing Association’s recent update of its widely-accepted definition of marketing to focus on relationships, sponsorship is viewed in current management thinking as a relationship. Akin to other promotional strategies, sponsorship also enables a sponsor to efficiently reach its target market (e.g. Rodgers, 2003), making sponsorship important to sponsors, sponsees and affiliated entities such as a benefiting charity, a sponsorship sales agent, an event manager or a facility provider. Its importance stems from a few major factors. First, a major challenge in developing advertising strategies involves navigating the increasingly cluttered advertising space that exists today (Arthur, 1998). Faced with the challenge of this clutter, it is no longer enough for many organizations to promote themselves through advertising alone and sponsorship may provide an efficient way by which to differentiate a sponsor from its competitors (Fahy et al., 2004; Amis, Slack & Berrett, 1999). Second, evidence of the attractiveness of sponsorship relative to other promotional tools is demonstrated by sponsors who have supported their initial sponsorship investment with additional funds to leverage that investment. Leveraging, used in this context, refers to strategies that the sponsor funds and implements to increase the effectiveness of the sponsorship. These techniques are varied and include such things as the title sponsor of a televised event developing commercials and paying for their diffusion leading up to, during, and following the event. Reebok, for example, recently increased its annual budget to leverage its sponsorship investments to US$12.6 million (Kolah, 2003), which means that the organization spends over $12 million annually to leverage its sponsorship investments.

Mandate

The objective of this paper is to position and support sponsorship as a promotional activity from the planning stages through to its activation. It will be shown to be distinct from other promotional strategies (e.g. advertising, public relations, and sales promotions) and to be distinct from philanthropy including capital campaigns (major gifts). Philanthropy refers here to any fund-raising effort that seeks donations (i.e. a gift of a contribution where the donor requires nothing in return). Further, the need for both sponsors and sponsees to incorporate sponsorship-specific initiatives and resources into their promotional budgets will be demonstrated. In order to accomplish this mandate, the authors will draw on their own experiences, knowledge and research.

It is the authors’ hope that this paper will demonstrate to the decision-makers in organizations (both sponsors and sponsees) that sponsorship is not a form of corporate donation but a two-way marketing relationship where cash or in-kind resources are exchanged for promotional value. For the sponsorship relationship to be successful, the sponsorship must be properly leveraged by the sponsor and serviced by the sponsee, with an accompanying leveraging program. By means of contrast, major gifts are not recognized as providing promotional value as evidenced in the reasons in the elements of attraction of gift giving (Martinis, 2005), inferring that they are not sponsorship.

The white paper is organized in four sub-sections. First, a brief description of sponsorship and its nuances is described, with particular emphasis on current sponsorship practice. Second, a brief review of current management theory will be presented to support sponsorship’s position in management practice. Included in this section will be a short review of the sponsorship industry. Third, supporting evidence from the authors’ professional experiences will be provided. Finally, a summary paragraph will present the authors’ concluding policy statement.

Sponsorship Practice

In contemporary business practice, corporations invest in sponsorship; they no longer have the excess marketing funds or open leeway to simply undertake goodwill gestures. This evolution and maturation of sponsorship into a key strategic element of the marketing mix has led to a high level of practitioner need for cost-effective, accurate and reliable sponsorship evaluation methodologies as the greatest challenge facing practitioners is clearly the demonstration of sponsorship effectiveness. In response to this need, researchers are working to fill that gap.

As corporations (sponsors) and their agencies spend more time analyzing and assessing the business performance of their sponsorship investments and related leveraging activities, the properties (sponsees) they work with must be prepared to respond by effectively servicing the sponsorship. This response is being demanded in terms of increased media value, stronger integration of the sponsor’s brands with the property, and via more highly leveraged activation programs. It has become clear that, in order to insure the long-term success of the overall sponsorship, the sponsee must properly service the current needs of the sponsor by ensuring that its internal sponsorship management resources are appropriately structured. Such structure needs to include units within the organization that specialize in sponsorship sales, sponsorship activation and sponsor servicing. If the sponsee is to continue to generate the resources (cash and/or in-kind products/services) and brand association that comes with successful long-term sponsorship relationships, all three of these units must be in place.

The demands placed on a property’s sponsorship sales department are driving them to become even more integrated with the other functions in the organization. This has become even more pronounced as sponsors move from simply buying an affiliation or media spots through a property and are now interested in creating brand activations. The concept of brand activation is defined as consumer connectivity, and therefore the sponsorship program needs to be integrated with the departments that most touch the consumer.

Global Sponsorship Values (Source: IEG, 2003)

Territory Predictions for sponsorship in 2003 (US$ billions) Percentage growth (over 2002)
North America $10.5 9.1%
Central and South America $2.2 4.8%
Europe $7.4 4.2%
Pacific Rim $4.7 9.3%
Other $1.4 7.6%

Of specific note within these stats is sponsorship’s contribution to global promotional spending, which has increased in importance from 2.5% in 1987 to an estimated 5.8% in 2001 (IEG, 2000). This suggests that sponsorship has become an integral part of the promotional mix and is supported by a number of studies (e.g. Meenaghan, 1991). In practice, sponsorship has clearly become an important revenue source for sponsees and a valuable promotional strategy to sponsors in many industries. The literature now positions sponsorship to be completely different that other promotional strategies given three main points of difference: (i) that sponsors are believed by consumers to be ‘part of the program’ [due to the association effect], (ii) that sponsorship and advertising function differently [i.e. the process by which the promotion is communicated], and (iii) that sponsorship is believed by consumers to benefit a broader audience.

Examples from Practice

The authors deal on a professional basis across Canada with a wide range of properties (sponsees) in terms of program type, scale, and mandate. These properties include:

  • National Capital Commission (NCC) – The NCC is a crown corporation of the Government of Canada founded to act as the steward of various lands and buildings owned by the Government of Canada in the National Capital Region (Ottawa, Ontario). A variety of sporting events are held on NCC property.
  • Toronto Parks & Recreation (TPR) – TPR is the branch of the City of Toronto responsible for all the parks and recreation activities in Canada’s largest city. A variety of sporting events and activities take place on TPR property.
  • Tennis Canada (Montreal & Toronto) – Tennis Canada is the National Sport Organization responsible for the sport of tennis in Canada.
  • Halifax Dartmouth Canada Day Committee – This Committee is responsible for all Canada Day celebrations and activities, including several sporting events, that take place on Canada Day (July 1 st) in the Nova Scotia’s largest city.
  • Canadian Football League (CFL) – The CFL is Canada’s NFL. It is a professional football league with 9 teams who play a full season each fall leading to the awarding of the Grey Cup.
  • Telus Ski & Snowboard Festival (Whistler) – This Festival is an annual event that draws skiers and snowboarders to Whistler, BC for a variety of related events and activities.

Each of these properties work with many of the largest and most powerful sponsoring corporations in the country and all are seeing substantial growth in their sponsorship portfolios. At the same time, these properties are coming under increased pressure to provide ROI for their sponsors. This strongly supports the mandate of this article.

In our dealings with these organizations we are seeing three notable shifts in their approach to sponsorship management, where organizations involved in sponsorship are expressing the following.

  • They are emphasizing the selling of sponsorship inventory on a more consultative packaging approach. A consultative packaging approach here refers to the fact that the sponsorship exchange is becoming more sophisticated and both sponsors and sponsees are providing and demanding more than just cash/product or promotional value in the relationship. They are interested in brand, associations and long-term effects.
  • They are exhibiting significant advancements in their in-house sponsorship expertise and the professionalism and specific-skill-sets of the personnel in their sponsorship departments.
  • They are providing more opportunities to both their agents and their sponsees to integrate the sponsor’s activation with event programming and marketing (i.e. additional leveraging activities).

SUMMERY

Both management theory and the authors’ professional experiences point to the need for sponsee’s to be properly structured in order to deal with corporate sponsors who view their investment as a marketing relationship not a donation. Being structured as such, will allow the sponsee to fulfil the needs of their sponsor and work towards developing successful long-term relationships with sponsors that will provide the resources they need, as well as improve their brand via the association.

REFERENCES

  1. Amis, J., Slack, T. and Berrett, T. (1999). “Sport sponsorship as a distinctive competence”, European Journal of Marketing, 33(3/4), 250-272.
  2. Arthur, D., Scott, D., Woods, T., and Booker, R. (1998). “Sport Sponsorship Should… A Process Model for the Effective Implementation and Management of Sport Sponsorship Programs”, Sport Marketing Quarterly, 7(4), 49-60.
  3. Cunningham, W.H. and Taylor, S.F. (1995). “Event Marketing: State of the industry and research agenda”, Festival Management & Event Tourism, 2, 123-137.
  4. Fahy, J., Farrelly, F. and Quester, P. (2004). “Competitive advantage through sponsorship: A conceptual model and research propositions”, European Journal of Marketing, 38 (8), 1013-1030.
  5. Kolah, A. (2003). Maximizing the Value of Sponsorship. Sport Business Group Limited Publication.
  6. Kuzma, J. R. & Shanklin, W. L. (1994). Corporate sponsorship: An application for analysis. In Graham, P. J. (Ed.), Sport business, operational and theoretical aspects. Madison, Wisconsin: Brown and Benchmark.
  7. Lachowetz, Tony and Richard Irwin (2002), “FedEx and the St. Jude Classic: An Application of a Cause-Related Marketing Program (CRMP)”, Sport Marketing Quarterly, 11(2), 114-118.
  8. Martinis, Robert. “How Do I Pinpoint the Major Gift Key Element of Attraction?”, www.nonprofit.org; downloaded February 2005
  9. Meenaghan, T. (1991). “Sponsorship – Legitimising the medium”, European journal of marketing, 25(11), 5 – 10.
  10. Rifon, N.J., Choi, S.M., Trimble, C.S., and Li, H. (2004). “Congruence Effects in Sponsorship”, Journal of Advertising, 33(1), 29-42.
  11. Rodgers, Shelly (2003), “The Effects of Sponsor Relevance on Consumer Reactions to Internet Sponsorships,” Journal of Advertising, 32 (4), 66-76.
  12. 6 The American Marketing Association’s new definition is “marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” (AMA, 2004).
  13. Only a sample of the authors’ knowledge base is presented. For further supporting case studies and empirical research, email mark.harrison@trojanone.com or noreilly@ryerson.ca.

2015-03-24T10:51:16-05:00September 7th, 2005|Contemporary Sports Issues, Sports Facilities, Sports Management|Comments Off on Sponsorship Management: A Status Report

Price and Non-price Promotions in Minor League Baseball and the Watering Down Effect

Abstract

Game promotions are believed necessary to help increase attendance in minor league baseball. As such, many game promotions are presented. In major league baseball as well as for many other products, a watering down effect exists when sales promotions are offered too frequently. As minor league baseball offers more promotions than major league baseball, it is reasonable to expect to find a similar condition. Attendance and promotion data were collected from 31 randomly selected minor league teams over the course of an entire season. Regression analysis showed that a watering down effect was present only for price game promotions. For non-price game promotions and for game promotions overall, there was no watering down effect.

Price and Non-price Promotions in Minor League Baseball and the Watering Down Effect

Game promotions in minor league baseball are held mainly to increase attendance to games. Indeed, pundits believe fans of minor league baseball have come to expect the added value of a special event or giveaway when attending a minor league game. Minor league ball clubs are cognizant of this expectation. Most of them on a regular basis provide fans with more than just a baseball game. They offer them entertainment activities, free souvenirs, or ticket and concession discounts.

Can there be too much of a good thing? Have minor league baseball fans become less appreciative and perhaps less motivated to attend games because what was once an added bonus to their price of admission has now become an expected part of the minor league game experience? Is there a “watering down” effect on attendance to games with a promotion? Specifically, do minor league ball clubs with an increased number of promotions see a reduced return on their promotional investment in the form of a smaller increase in attendance for games with promotions?

In major league baseball, there is a slight “watering down” effect for ball clubs with an increased number of promotions (McDonald & Rascher, 2000). In the minor leagues, where almost all ball clubs have a greater number of promotions than major league ball teams, it can be assumed that this same effect would occur, perhaps to an even greater extent.

A major objective in marketing professional sports is to increase attendance to games and matches. In minor league baseball, this objective is particularly important (McDonald & Rascher, 2000). Both price and non-price sales promotions have long been used to increase attendance and market product in the minor leagues. Attendance to minor league baseball is currently just below 40 million (in 2004) after being approximately 39 million for each of the three previous seasons (Minor League Baseball, 2005).

A long held belief by pundits in professional team sports is that a winning team is essential to increase attendance. Research has found, however, that a winning team has little to no effect on attendance in minor league baseball (Branvold, Pan, & Gabert, 1997). Other methods must be used, minor league baseball executives have learned, to draw spectators to the ballpark.Promotions, whether through special events or in-game, are believed necessary to provide spectators with the added entertainment value needed to help attract them to the games.Like many other entities in the leisure services industry, minor league baseball provides it customers with both price and non-price promotions (Wakefield & Bush, 1998).

In this study, we are concerned with “game promotions,” those promotions that are the main promotion or special event for each game a ball club has with such a promotional activity. Game promotions are often coupled, so that more than one is offered on a single date. Often, more than one price or one non-price promotion is offered together and sometimes a combination of price and non-price promotions is provided.

Literature Review

Baseball Promotions and Attendance

Little scholarly activity has been generated on promotions in minor league baseball. Minor league baseball executives believe, however, that games promotions are a powerful incentive to attract spectators and fans to games (Baade & Tiehen, 1990). As such¸ games promotions are often heavily advertised and promoted (Bernthal & Graham, 2003). In major league baseball promotions increase attendance by 14% (McDonald & Rascher, 2000). We can assume the effect is greater in minor league baseball.

Major league baseball attendance has been explained by a model using attendance data from two baseball seasons and accounted for .69 of the variance of attendance (Noll, 1974). The model was later altered to include 18 seasons and accounted for .84 of the variance (Baade & Tiehen, 1990). However, the researchers suggested that promotional activity might explain the attendance unaccounted for in their model (1990).

Overall, game promotions may not be a strong enough motivator to increase attendance than most minor league executives believe (Bernthal & Graham, 2003). These promotions might merely shift the attending from one game to another for some spectators (McDonald & Rascher, 2000; Baade & Tiehen, 1990). If so, there would no effect on increasing the season attendance level. However, the more fans at a game, the more excitement that is generated and the more likely these fans will attend other games and create buzz about the experience (1990).

Professional sports teams are finding it necessary to promote with greater intensity and frequency due to increasing competition from other sports and from the entertainment industry (McDonald & Rascher, 2000). It may be this frequency of promotion has led to the watering down effect on attendance to major league games (2000). Again, this same effect seems probable in minor league baseball as most ball clubs have many more game promotions than teams in the major leagues.

Sales promotions in marketing

Several studies have investigated the impact of promotional frequency and promotional discount levels (Blattberg, Briesch and Fox, 1995). Brands that are heavily promoted have reduced levels of brand equity with a resulting reduction in the consumer reference price (1995). Raju noted an over saturation effect in promotional discounts and posited that higher sales increases are more likely to occur when deep discounts are offered less frequently (1992). These price promotions have been found to be more effective for utilitarian products than hedonic products (Chandon, Wansink & Laurent, 2000). In minor league baseball, those attracted to price promotions are spectators who are price conscious and who attend infrequently (Wakefield & Bush, 1998). Over-promotion of a product can occur causing consumers to buy less of a product at its regular price (Blattberg, et al, 1995).

The long-term effect of promotions on a brand is debatable, however, with some studies finding a negative effect (Dodson, Tybout & Sternthal, 1978; Shoemaker & Shoaf, 1977), and some finding no negative effect (Neslin & Shoemaker, 1989; Totten & Block, 1987). A more recent study found both negative and positive results for the long-term impact of promotions (Boulding, Lee & Staelin, 1994). Still, a generalization that is most akin to the watering down effect is “The greater the frequency of deals, the lower the height of the deal spike.” This generalization results most probably from consumers coming to expect frequent promotions and from an alteration of the consumer’s reference price (Blattberg, et al, 1995).

The most effective sales promotions are those that provide benefits that are similar or complement the benefit inherent in the product. Non-price promotions complement the benefit and are more effective when matched with hedonic products (such as minor league baseball) while price promotions are more effective for utilitarian products (Chandon, Wansink & Laurent, 2000). Not surprisingly, in an entertainment setting, such as minor league baseball, non-price promotions add entertainment value rather than reducing the price (Wakefield & Bush, 1998).

Research Question and Hypotheses

As a watering down effect on promotions exists for major league baseball, and with many more games in minor league baseball than in the majors having a game promotion, it could be assumed that watering down effect occurs in minor league baseball. However, because such an emphasis is placed on promotions as a method of attracting spectators to minor league baseball games, team executives must believe there is no watering down effect. Therefore, the research question guiding this study is: Does a watering down effect exist with promotions in minor league baseball?

We will assume that team executives know their product well and that is the reason for them having as many games with game promotions as they do. We also note that leisure services promotions in an entertainment setting are geared toward adding entertainment value. Therefore, we hypothesize that:

H1: As the number of games with game promotions is increased, attendance
will not decrease. (No watering down effect).

Likewise, we can assume that because spectators attend a minor league baseball game to be entertained, they will welcome the opportunity to be entertained beyond the benefit of watching the ballgame by a non-price promotion, many of which provide added entertainment. Therefore we hypothesize that:

H2: As the number of games with non-price game promotions is increased, attendance will not decrease. (No watering down effect).

Price promotions are more beneficial to marketers when a utilitarian product is sold than when a hedonic product like minor league baseball is sold. Coupled with the finding that those attracted to price promotions are spectators who are price conscious and who are most likely to attend infrequently (Wakefield & Bush, 1998), we hypothesize that there will be a watering down effect with price promotions:

H3: As the number of games with price game promotions is increased, attendance will decrease.

Finally, because consumers evaluate promotions based on the dominant benefit the promotion provides (Chandon, Wansink & Laurent, 2000), and because minor league baseball is a hedonic product, spectators will put more emphasis on the non-price promotion than on the price promotion when these types of promotions are coupled for one game. Therefore, we hypothesize that a watering down effect will not be present in the combination of non-price and price promotions:

H4: As the number of games with a combination of price and non-price game promotions is increased, attendance will not decrease.

Method

Attendance data coupled with the game promotions were gathered from 31 randomly selected minor league baseball teams over the course of the 2002 season. These ball clubs included teams from each level of minor league baseball: AAA, AA, Advanced A, A, Short-season A, and Rookie. Attendance data for each game were collected from on-line box scores or through E-mail from the teams.

Game promotion data, the date and type, were found on ball clubs’ websites and pocket schedules. Game promotions were coded as consisting of price, non-price, or a combination of price and non-price promotions. Price promotions are those that provide a price discount, usually on tickets or concessions. Non-price promotions are those that contain comedy or musical acts, celebrity appearances, giveaways, sweepstakes, contests, audience participation, tributes, community events and the ever-popular fireworks presentation. Attendance was then matched to the game promotion. Like McDonald and Rascher’s study of major league baseball attendance (2000), a regression analysis was completed with attendance as the dependent variable.

Results

Over the course of the season, the 31 ball clubs generated 1231 observations of attendance and game promotions. This large number of observations should negate the effects of other variables that might have an effect on attendance.

The number of home openings (n=1905) for each ball club ranged from 32 to 72 with a mean of 68. The percentage of openings with at least one game promotion for each ball club ranged from 23% to 94% with a mean of 65%. The attendance for the openings with game promotions ranged from 128 to 15,983 with a mean of 4,157. The impact of these game promotions on attendance for each team (the difference between the promotion attendance mean and the mean of attendance for games with no game promotion) ranged from –421 to 5087 (Table 1).

For an overall view of the effects of game promotions on attendance comparisons of means were used. First, the mean promotion attendance (4,157) was compared to the mean attendance of all openings (3,824). This comparison provided an increase of attendance at games with promotions of 333 and was significant at the .001 level. This figure represents an increase of only about 9% in attendance and does not provide a true picture of the impact of game promotions. For many minor league ball clubs, there are few games that do not include a game promotion. In this sample 65% of home openings included a game promotion. Therefore, the differences are less than one might expect and other comparisons need to be made for a more complete statistical picture.

A comparison of the mean (4,157) of promotion attendance (n =1,231) to the mean (2,969) of no promotion attendance (n = 674) shows a difference of +1,177 representing a significant (t = 14.23, p < .001) increase of 40% in attendance.

As some teams have more game promotions than other teams, several questions of interest are raised. Is there a watering down effect on teams that have a greater number of promotions? Does a greater number of promotions result in less of an impact on attendance? To answer these questions regression was used to analyze the impact of the number of promotions on attendance. Analysis was completed for the effect on all game promotions and the effect on price, non-price, and a combination of price and non-price promotions. If a decrease in attendance was found from increasing the number of promotions, the regression coefficient (Beta) would be negative. Overall, for all teams the regression model showed a positive effect (F (1, 1903) = 218.98, R 2 = .10, β = .321, p < .001). Only three of the thirty-one teams had a negative coefficient (Table 2). As the majority of teams and the overall effect show an increase in attendance when the number of promotions is increased, Hypothesis one is supported. There is no watering down effect overall.

When only non-price game promotions are included in the regression model, a significant positive effect between attendance and the promotion is found (F (1, 1529) = 193.45, R 2 = .11, β = .335, p < .001). Individually, about two out of every three teams (21) had a significant positive effect (Table 3). Comparing the mean attendance of non-price promotion games (4,792) with the mean attendance of no promotion games(2,969) for all teams produces a significant (t =17.96, p < .001) increase in attendance of 61%. Hypothesis two is supported. Attendance does not decrease when the number of non-price promotions is increased. There is no watering down effect.

When only price game promotions are included in the regression model, a significant negative but weak effect between attendance and the promotion is found (F(1, 926) = 31.87, R 2 = .03, β = -.182, p < .001). Individually, 10 teams had a significant negative effect. Ten other teams, perhaps knowledgeable of this effect offered zero or only one price promotion (Table 4). Comparing the mean attendance of price promotions (2,157) with the mean attendance of no promotion (2,969) for all teams reveals a significant (t = -6.76, p < .001) decrease in attendance of 20%. Hypothesis three is supported; there is a watering down effect on price game promotions.

When a combination of non-price and price game promotions are included, a significant positive but weak effect is found (F(1, 793) = 14.32, R 2 = .02, β = .133, p < .001). For the individual teams, 11 of them had a significant positive effect. Twelve teams had zero or only one game with this combination of promotions (Table 5). Comparing the mean attendance of these combination of promotions games (3,556) with the mean attendance of no promotion (2,969) for all teams produces a significant (t = 2.54, p < .024) increase in attendance of 20%. Generally, Attendance does not decrease when the number of games with a combination of price and non-price promotions is increased. Hypothesis four is supported. There is no watering down effect.

Discussion and Implications

For the most part, game promotions do increase attendance to games. Unlike in major league baseball where a watering down effect has been found (McDonald & Rascher, 2000), in minor league baseball the more games with game promotions that are held, the more attendance will be generated for each game. However, there is a difference in attendance impact generated by different types of promotions.

There is no watering down effect for non-price promotions. When the number of games with non-price promotions is increased, there is an increase in attendance for almost all teams. Teams that do not see a significant increase should examine their operation to understand why they do not attract more spectators for non-price promotion games. Perhaps it is due to not advertising those games enough or it could be due to some other situation. For example, one ball club that did not see a significant increase is the Hudson Valley Renegades. Upon examination of their attendance figures it is learned that they always operate near capacity of their 4,494 seat ball park, whether they have a promotion or not. Therefore, the size of their ballpark appears to be the problem.

With game promotions that are price promotions, there is a watering down effect. Increasing the number of games with price promotions does not significantly increase attendance for almost all teams. In fact, for many teams there is a significant decrease in attendance when having a higher number of price game promotions. This suggests that spectators do not place much importance on, or see little value in, lower prices for the baseball product. These findings are consistent with the findings (see Wakefield & Bush, 1998) that leisure services customers find more value in promotions that have hedonic benefits such as increased entertainment.

When combining price and non-price game promotions for a single game, there is not a watering down effect for most teams. However, the effect on an increase in attendance is weak. The non-price game promotion dominates the price promotion but is seriously weakened by the effect of the price promotion, and therefore, does not produce a strong impact on attendance.

This study is limited in that it did not examine the attitudes of spectators towards the types of game promotions. It did, however, use attendance as somewhat of a proxy for favorable and unfavorable attitudes towards the game promotions. This study also is limited by the fact that it did not consider the advertising weight or effort that was made toward making spectators aware of an upcoming promotion. Obviously, this effort should have an effect on the impact on attendance from each game promotion.

Future studies into baseball and sports promotions should examine the overall season effect of promotions on attendance. Do spectators “cherry pick” games with specific promotions to attend? That is, do fans merely shift attending one game to attending another game because the later game has a promotion? If so, seasonal attendance impact would vary little with or without promotions. Because of the wide variance of impact on attendance from team-to-team in this study, research may be pertinent on the amount of advertising that is done to promote the game promotions. How many fans are aware of the promotion before coming to the ballpark? Does increased communication about game promotions affect the impact on attendance of those promotions? Is one form of advertising game promotions more effective than other forms? Furthermore, examining the promotion-proneness of spectators may provide insights into which game promotions are most salient for those who are most promotion-prone.

As minor league baseball executives search for new and different promotions to bring spectators to their ballparks, they would not be amiss to concentrate on non-price promotions for an increased impact on attendance. They should limit the number of price game promotions to only a very few per season, and they should evaluate the potential return on investment when they couple non-price and price promotions.

References

  1. Baade, R. & Tiehen, L. (1990). An analysis of major league baseball attendance, 1969-1987. Journal of Sport and Social Issues, 14(1), 14-32.
  2. Bernthal, M. & Graham, P. (2003). The effect of sport setting on fan attendance motivation: The case of minor league vs. collegiate baseball. Journal of Sport Behavior, 26(3), 223-240.
  3. Blattberg, R.C., Briesch, R. & Fox, E.J. (1995). How promotions work. Marketing Science, 14(3), G122-G132.
  4. Boulding, W., Lee, E. & Staelin, R. (1994). Mastering the Mix: Do advertising, promotion and sales force activities lead to differentiation? Journal of Marketing Research, 31(May 1994). 159-172.
  5. Branvold, S.E., Pan, D.W., & Gabert, T.E. (1997). Effects of winning percentage and market size on attendance in minor league baseball. Sport Marketing Quarterly, 6(3), 35-42.
  6. Chandon, P., Wansink, B. & Laurent, G. (2000). A benefit congruency framework of sales promotion. Journal of Marketing, 64(4). 65-81.
  7. Dodson, J.A., Tybout, A.M. & Sternthal, B. (1978). Impact of deals and deal retraction on brand switching. Journal of Marketing Research, 15, (February 1978). 72-81.
  8. McDonald, M. & Rascher, D. (2000). Does bat day make cents? The effect of promotions on the demand for major league baseball. Journal of Sport Management, 14, 8-17.
  9. Minor League Baseball. (2005). History. Retrieved June 23, 2005 from http://www.minorleaguebaseball.com/app/milb/history/
  10. Neslin, S.A. & Shoemaker, R.W. (1989). An alternative explanation for lower repeat rates after promotion purchases. Journal of Marketing Research, 26(2). 205-213.
  11. Noll, R. (1974). Attendance and price setting. In R. Noll (Ed.) Government and the Sports Business (115-157). Washington: Brookings Institute.
  12. Raju, J.S. (1992). The effect of price promotions on variability in product category sales. Marketing Science, 11(3). 207-220.
  13. Shoemaker, R.W. & Shoaf, F.R. (1977). Repeat rates of deal purchases. Journal of Advertising Research, 17(2). 47-53.
  14. Totten, J. & Block, M. (1987). Analyzing Sales Promotion: Test and Cases. Chicago: Commerce Communications.
  15. Wakefield, K.L. & Bush, V.D. (1998). Promoting leisure services: Economic and emotional aspects of consumer response. The Journal of Services Marketing, 12(3), 209-222.

Table One

Table Two

Table 3

Table Four

Table Five

 

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Organizational Structures in Sport Clubs – Exploring the Relationship between Individual Perceptions and Organizational Position

Abstract

This paper reports on an analysis of individual perceptions of organizational structures in Swedish elite ice hockey with the purpose of studying the relationship with organizational position. Findings are based on structured interviews with 8 individuals who work or are volunteers in 4 different organizational positions in 2 elite ice hockey clubs. Organizational position is defined by hierarchical level, line or staff position, and by paid or volunteer position. Perceptions are studied in relation to the structural dimensions specialization, standardization, and centralization. Results show that perceptions are related to the organizational position occupied and that the various perceptions result in tensions between the different organizational positions. The results are discussed in relation to findings concerning organizational commitment and job satisfaction.

Increasing difficulties in attracting and retaining coaches, administrators and volunteers within Swedish sport (Peterson, 2002) has generated a growing interest in the management and design of sport organizations. Increasing demands for effectiveness have increased the need for more sophisticated organizational structures which in turn have resulted in new, changed, and unknown circumstances for the people involved in sport organizations (Amis, Slack & Berrett, 1995). During these circumstances individual perceptions of organizational structures becomes important to explore.

In the study of organizations, the concept of organizational structure and the structural dimensions specialization, standardization and centralization has long been utilized to describe organizational features and configurations (Hage & Aiken, 1967; Lawrence & Lorch, 1967, Pugh et al., 1968; and Thompson, 1967). The concept of organizational structure has also been studied in relationship to individual variables such as organizational commitment, job satisfaction, job performance, employee turnover etc (see Porter & Lawler; 1964 and Cumming & Berger, 1976 for early reviews).

This text takes its departure in Fahlén (n.d.) where perceptions of organizational structure in two structurally different ice hockey clubs were compared. That study showed, amongst other things, that high levels of the three structural dimensions -specialization, standardization and centralization- were perceived more positively than low levels. The study did however not distinguish between different positions in each organization and as e.g. Payne and Mansfield (1973) point out, representing organizational climate in terms of mean values can be misleading. Payne and Mansfield (1973) showed that people in different positions in an organization have different views about the organizational climate. Rice and Mitchell (1973) have also shown that an individual’s perceptions are related to his or her position within an organization. Thus, studying individual perceptions related to organizational position becomes interesting.

Studying individual perceptions of organizational structure will not only help us to understand some of the mechanisms behind attracting and retaining individuals in a voluntary sport organization but will also contribute to the broader literature on both organizational structure and organizational commitment, organizational climate, job satisfaction, job performance, employee turnover etc.. Since organizations are much too complex for any given variable to have a consistent unidirectional effect across a wide variety of types of conditions (Porter & Lawler, 1965) extending the analysis to the study of variation in perceptions between different positions within an organization will help us broaden our understanding of how organizational structure affects individuals. If voluntary sport organizations are to succeed in delivering programs and events, the reasons behind individual perceptions and behaviors need to be explored. Organizations which fail to attract and retain a voluntary or paid workforce are more likely to spend more time and effort recruiting and training new personnel than furthering the goals of the organization (Cuskelly, 1995).

The purpose of this paper is to examine the relationship between the positions of individuals in an organization and their perceptions of organizational structures. The aim is not to seek incontrovertible proof of cause and effect relationships between organizational structure and individual perceptions but to, in an explorative manor, throw light upon some mechanisms behind mentioned perceptions. The analysis is based on interview data from two elite ice hockey clubs in Sweden.

Theoretical background

In the literature pertaining to the study of organizations it has long been emphasized that research needs to bridge the traditional gap between macro and micro, between the total organization, the group, and the individual (Brass, 1981). While considerable effort has been devoted to both the structures of organizations and to individual attitudes to work less attention has been given the relationship between the two. The relationship has indeed been investigated but, with a few exceptions (e.g. Oldham & Hackman, 1981; Pheysey, Payne & Pugh, 1971), exactly how it functions remains unexplored. What we do know about attitudes towards and perceptions of structural features is based mainly on results taken from industrial and government enterprises and we do not yet know whether that knowledge would hold in a sport organization context (Chang & Chelladurai, 2003).

Research roughly speaking has studied either individual or organizational factors as possible sources of individual perceptions such as e.g. job satisfaction or organizational commitment. Both perspectives have produced results to support their case even if some comparative studies have found perceptions, attitudes and behaviors to be related more to the structural context within which the job occurs than to individual characteristics (e.g. Glisson & Durick, 1988; Oldham & Hackman, 1981).

The basic assumption in this paper is drawn from the Job-Modification Framework where an understanding of the relationship between organizational structure and individuals’ perceptions is sought by looking at structural context and more precisely the characteristics of the job. Organizational structure is seen to affect job characteristics which in turn affect individual perceptions of the work and the organization. The Job-Modification Framework is based on findings concerning the relationship between organizational structure and job characteristics (e.g. Pheysey, Payne & Pugh, 1971) and on the relationship between job characteristics and individual perceptions (e.g. Pierce & Dunham, 1978). Theoretical and empirical work using the Job-Modification Framework offer some understanding of how organizational structure is perceived by individuals in an organization (e.g. Rousseau, 1977; and Oldham & Hackman, 1981).

One significant characteristic of a job is its position within an organization (Rice & Mitchell, 1973). Both hierarchical position and line or staff position have been explored in the literature. In the study of sport organizations the distinction between paid staff and volunteer personnel has also been analyzed. Research into organizational position with regard to the distinction hierarchical level and line or staff function has, broadly speaking, shown that people at higher levels and in line positions are to a greater extent associated with more positive attitudes, such as job satisfaction and organizational commitment, and with more positive behaviors such as high performance and low absenteeism (Cummings & Berger, 1976; and Porter & Lawler, 1964). No uniform findings regarding the differences between people in paid and volunteer positions are available but some related research shows that the two groups have different perceptions of e.g. organizational commitment and influence in decision making (Cuskelly, Boag & McIntyre, 1999; Auld & Godbey, 1998; and Cuskelly, McIntyre & Boag, 1998).

Using the framework proposed above and supporting empirical findings on the job characteristics mentioned will allow an exploration of and explanations for possible differences in individual perceptions of organizational structure in this study. No causal interpretations of possible relationships will be made since neither sample nor method is appropriate for testing. Nevertheless the findings may be useful in pointing out where further research on sport organizations is needed, how knowledge of these issues can be achieved, and why this knowledge is important for the management of sport organizations in Sweden and elsewhere.

Methods

Sample

Data were collected in two Swedish elite ice hockey clubs, clubs organized along lines similar to those in many industrialized countries today. The sporting individual is a member of a sport club, which in turn is affiliated to a regional sport federation, which in turn is affiliated to a national sport federation under the Swedish sports confederation (RF). The Swedish elite ice hockey league is the highest division in a system comprising a maximum of seven divisions. The system is hierarchical based on sports merits and the teams are run by membership-based non-profit clubs.

One way of moving away from calculated means and closer to actual perceptions is to analyze interview data from individuals in a variety of positions within an organization. The definition of organizational position, inspired by the Aston Paradigm, comprises the distinction between hierarchical levels (Pugh et al., 1968), the distinction between line and staff personnel as proposed by Porter and Lawler (1965), and the distinction between paid staff and volunteer personnel. No distinction is made between the two clubs.

The lowest hierarchical level (0) according to Pugh, et al. (1968) is the operating level, the direct worker, in this case assumed to be the ice hockey player or the Youth volunteer. Line personnel are the people involved in the organization’s primary output (playing ice hockey) while staff personnel are involved in the coordination, control, and support of those in line positions. Paid staff derive their main income from the organization. Volunteer personnel, while not excluded if paid smaller amounts, are not salaried in the sense that they make their living from their involvement.

Respondents were picked based on organizational position. My aim was to reach individuals on all levels, in both line and staff positions, and both paid staff and volunteer personnel. For those positions where there was more than one individual to choose from interviewees were selected in consultation with the general manager based on accessibility. The selection resulted in 4 interviewees from each club as shown in Table 1: member of the board, coach of the first team, sales manager, and volunteer in the youth program.

Table 1

Organizational Position

 Rank Above Lowest Level Staff Positions Line Positions
Voluntary Position Paid Position Paid Position Voluntary Position
 3 Board Member
 2 Sales Manager
 1 Coach First Team
 0 Youth Volunteer

Measures

Inspired by the constructs created by Kikulis, Slack, Hinings and Zimmerman (1989) and Slack and Hinings (1987) a list of interview questions was created that were considered to reflect the three structural dimensions of organizational structure. With a minor modification to the Interview Questions, Organization Design Index (Slack, n.d.) it was possible to adjust the constructs and the questions to fit this particular study.

The concept of specialization was operationalized using questions regarding the extent of the administrative and operative roles together with the division between these. The operationalization of specialization involved questions regarding the number of paid staff versus volunteers and the division of tasks between the two groups (Slack & Hinings, 1992).

The operationalization of standardization involved questions about efforts made to reduce variations in procedures and to promote coordination. These questions were intended to examine how and to what extent activities are governed and regulated by rules, policies and other formal procedures (Slack & Hinings, 1992).

The centralization concept was operationalized through questions regarding where decisions are made and how the decision making is distributed. Centralization was examined in three ways; at which hierarchical level the decisions were made, the extent of participation in decision making on other hierarchical levels, and the involvement of volunteers in the decision-making process (Slack & Hinings, 1992).

No measure of organizational structure other than each interviewee’s perception was used. Contrary to e.g. Oldman and Hackman (1981) where the president or someone similar provided data on organizational structures for the employees to relate to, the present study assumes organizational structure to be partly a function of the perceptions of the organizational members in question. Inherent in the notion of organizational position, as presented earlier, is an assumption that perceptions of organizational structure are affected by an individual’s place in the organizational hierarchy, distance from the core activities, and function as either paid staff or volunteer personnel. It follows with this line of argument that organizational structure is not seen as a constant variable for the interviewees to relate to but as a perceptual concept constructed by each interviewee.

Perceptions of organizational structure were not measured in the way commonly used in the literature on job satisfaction and organizational climate such as job challenge (Payne & Mansfield, 1973), autonomy (Hackman & Oldham, 1975), feedback (Brass, 1981) and similar. Instead, interviewees were asked to speak freely about organizational structures.

Procedure

The interview questions were designed to study (a) the picture each interviewee had of the respective club’s structural arrangements, (b) each interviewee’s opinion about those same structural arrangements, and (c) how each interviewee were affected by those arrangements. This procedure made it possible to explore both links in the Job-Modification Framework, (1) the relationship between organizational structure and job characteristics and (2) the relationship between job characteristics and individual perceptions. It also allowed for organizational structures to having a direct effect on individual perceptions regardless of any relationships they might have with job characteristics (cf. Brass, 1981).

The structured interviews, lasting approximately one hour, were conducted face to face in each interviewee’s workplace, in private. The interviews were recorded, transcribed in full and then coded for anonymity. Interview data were analyzed using the techniques outlined by Stake (1995).

Results

The results are presented according to organizational position with regard to hierarchical position, the distinction of line or staff, paid or volunteer, as shown in Table 1. The quotations should be read as examples and illustrations of the opinions found in the data rather than complete reflections of all opinions. Quotations are taken from both respondents in each position without any given order.

The Board Member Position on Specialization

I have worked to move the daily operations down to the office. The club has gotten to large to for [us] voluntary forces to run the daily and operative business. I want the financial committee to function more as a sounding board for XX and YY [two individuals working in paid staff positions] who need to take the day-to-day responsibility.

The Board Member Position on Standardization

First of all, you need to have your heart in the club and be interested in ice hockey..In my position I think it is good to have [a degree in business administration]. Issues like balancing the books or discussing things with accountants would be difficult otherwise ..The general level of expertise needs to be raised.

Documented routines are important..I do not see them as paper tigers, I see them as documents that are observed..Who should authorize payments, orders, investments..We try to do things in a corporate way even if we are a club.

The Board Member Position on Centralization

There is always some friction between the employees and the board, everywhere and in all kinds of issues..If this were a company it would be easy, but now it is kind of both you could say..Volunteers against professional staff.of course there is friction in between.

The sport committee is the centre of gravity in the club.handles sports-related issues.[which are] the most important issues.decides on new recruitments [players] and lay-offs.

The Sales Manager Position on Specialization

There should be more people [working at the office], so that each one could focus on his task so to say..You might want a board that works closer to the actual operations..They have more of a supervisory role [now]..We need more people working [administrative] with our youth operations..They have grown too big for one person to handle.

Everything has to go through us [the office].the youth teams can not go around selling advertisements on their own.

The Sales Manager Position on Standardization

There are always courses and classes for all kinds of things but here we try to learn from each other instead..Education and those things are important but I would go according to background and personality more than education..You cannot just go for a theorist with so and so many [academic] credits..It is more to do with relations.

The club has produced a handbook for the operations.fairly detailed as to what we can do and can not do.which issues go up to the board and such..All the way from the youngest youth team.not only on the ice but also journeys, cups and such. It is a must in such a large club as this..In that way we can avoid all questions and rumors in the corridors.just look it up in the book.

The Sales Manager Position on Centralization

You might want some more steering and concrete ideas [from the board]..One shortcoming, in my opinion, is that the board is quicker to question our work than to give us directions..It is very seldom we get concrete assignments. Instead it is us generating proposals and ideas. It ought to be the other way around more often.

More things need to go through us.we cannot leave the decisions to the dads and mums.there are a lot of capable people but you feel that you cannot let things go..Same goes for transports as for away games and team uniforms..More control is needed.

The Coach of the First Team Position on Specialization

My opinion is that the sport manager should have both the competence and power to direct the sport issues..Not as it is now with ideas coming from down here and up..It is problematic to have us [head coach and assistant coach] doing everything..We should be let to focus on our jobs.

The Coach of the First Team Position on Standardization

We must keep ourselves updated. The problem is lack of time..Coaching at top-level leaves little time for education..Of course competence is important but I think you need to calculate from case to case whether courses, degrees, or experience is to be preferred..But you have to adhere to the standards [set by the Swedish Ice Hockey Association (SIF)].

Not everything is written down, it is more like the players know these things..As long as they take care of things there are no problems..It is tacit and unspoken..It is often solved within the group..Policies and routines are important but most important is having strong individuals supporting [the policies and the routines].

The Coach of the First Team Position on Centralization

When it comes to hockey I have all the authority I want.training, organizing traveling, pre-season, cups etc..Outside hockey, very limited..You can have ideas and, for instance, shopping lists for players but when you don’t know all the financial stuff it is problematic..I would like to know the [players’] salaries so that I could evaluate from that.

The sport committee evaluates [the team] during the season.but they do not have the same basis for making decisions as me and ZZ [the assistant coach] have..If I want to get rid of a player it is often impossible since they are bound by contracts.[then] you just have to put up with it.[but] it is not unusual for us to get the blame for it [a less successful recruitment].

The Volunteer in the Youth Program Position on Specialization

I think all sport clubs with a first team in the premier division would benefit from separating the youth and the elite operations..Run the elite operations on business lines.and let the youth operations lead their own life..It is all business [otherwise]..Making ends meet in the youth operations is no problem.

The Volunteer in the Youth Program Position on Standardization

We generally start with the parents.with some kind of interest and/or know-how. After one year we send them to Step 1 [Basic Youth Leader Course at SIF].which is a requirement [if they want to continue].next year Step 2 and so on..It is important for us to educate both kids and parents..How [else] are we supposed to foster our own elite coaches?

I personally think that it is good that the club has policies.so that everybody pulls together..Do the right thing at different ages, when to send in the best players etc..I think it is really important for the club’s survival..We have rules for how to practice and play.but more importantly we have policies for behavior and what it means to play ice hockey.do you best.

The Volunteer in the Youth Program Position on Centralization

We [the youth operations] apply for money each season [from the board]..They set the budget.and we manage ourselves..The board is 98 percent concerned with issues related to the first team and the juniors [Team 18 and Team 20].they trust us to do the best we can.
This club is based on mutual trust…when it comes to money, education, tasks.I need to trust that he or she is doing their best.I have enough to do doing my own job.

Discussion

This study has examined the relationship between the positions of individuals in an organization and their perceptions of organizational structures. Organizational position was defined by hierarchical level, line or staff position, and by paid or volunteer position. This discussion will show how an individual’s organizational position relates to their perceptions of the structural dimensions specialization, standardization and centralization. On a few occasions, quotations in the Results above overlap into two or more of the analytical paragraphs below.

High vs. low hierarchical positions

Specialization

People in all positions express a feeling of working to capacity and would rather see someone else doing more. The statements from the interviewees indicate that people in high positions transfer responsibility and tasks downwards and people in low positions refer responsibility and tasks upwards in the organization.

Explaining these findings by means of hierarchical position seems to be difficult but a few pointers can be found in Cumming and Berger (1976) where Meta study results show that people in higher positions derive satisfaction, among other things, from smoothness of workflow while people in lower positions derive satisfaction, among other things, from the amount of work they do. It seems that directing tasks elsewhere might help both groups achieve satisfaction, for people in lower positions as it reduces their workload and for people in higher positions as it makes the workflow smoother.

People in higher positions are argued to be more satisfied with their job than people in lower positions are (Herrera & Lim, 2003). The results in present study however provide no indications to support that view.

Standardization

Formal education and formal competence is more important at the top and at the bottom of the organization, and is seen in both places as a requirement for the work. At middle levels background, personality and experience are seen as more valuable than formal qualifications.

Standardization, formal structuring, routines, procedures and management practices are often said to be associated with job satisfaction (e.g. Stevens, Philipsen, & Diederiks, 1992). Educational level is also found to be related to job satisfaction, with high educational levels related to high satisfaction levels (Herrera & Lim, 2003). None of these findings however shed any light on the differing perceptions in this study.

Centralization

People in higher positions express a need to control the activities of people in positions further down in the organization, while the people in lower positions refer to the need for mutual trust. It seems, however, as if the trust mostly works one way – upwards.

The need for control as expressed by people in higher positions can be understood with reference to the findings in Rice and Mitchell (1973) where people in higher positions are found to attach greater importance to external results (turnover, profit, on-ice success and such) than people in lower positions. The reason for this could be found in Inglis (1994) where higher visibility is given as a reason for differences between professionals and volunteers. Likewise, visibility could offer one possible explanation of why people in higher positions are concerned with controlling the activities of people in lower positions. The higher visibility means that the people in higher positions are more strongly associated with the success or failure of the organization, making the need for control understandable.

Another possible explanation could be sought in organizational commitment where Jackson and Williams (1981) have found that higher positions are more positively related to organizational commitment than lower levels are. This commitment in the present study could be illustrated by the greater need for control.

Line vs. staff positions

Specialization

Differences in opinions regarding specialization between line and staff personnel are not easily separated from differences related to the distinctions paid or volunteer positions and high or low positions. There are nevertheless some expressions which indicate that both groups would like to focus on their “own” tasks, even if some people in staff positions would also like to have some supervision over some of the tasks performed by people in line positions.

It is argued that people in staff positions derive less satisfaction from their jobs than people in line positions (Porter & Lawler, 1965). The results in this study, however, provide no support for more or less satisfaction in either group.

Standardization

The main difference in perceptions concerning standardization between the people in line and the people in staff positions is how the two groups see the time dimension in formal education and training. The interviewees in line positions talk in terms of continuous training and education during their current appointment while the interviewees in staff positions refer to the level of competence demanded for their respective appointments. In simple terms, line personnel expect training and education on the job while staff personnel expect to have achieved the level of competence required before they take up an appointment.

One possible understanding of this difference is pointed out in Fahlén (n.d.) where historical and cultural reasons are given as explanations of differences in attitudes towards formal education. Sport in Sweden has traditionally, until very recently, been managed solely by volunteers and training and education, where it existed, was delivered by each respective national sport federation with a strict focus on practical coaching (Blom & Lindroth, 1995; Fahlström, 2001). This could have resulted in certain expectations among individuals involved in practical coaching and other expectations with individuals involved in supporting positions.

Centralization

Comparing the opinions on the locus of control between the board member position and the coach position gives us some insight into the power struggle between line and staff personnel. The sport committee, consisting mainly of board members, is seen by the board members as the main decision maker when it comes to the recruitment and laying off of players. The coach position, on the other hand, hints that the true decision lies with him and his assistant coach but admits that decisions in the sport committee which is beyond his influence throw spanners in the works. It is obvious where the coach position thinks the power should be.

One possible explanation for these differing perceptions could be a conflict between two functions stemming from the clash between two different sources of power. People in staff positions might derive their power primarily from the fact that they perceive themselves as being in charge of acquisition and the control of resources and thus important for the success of the organization and thereby powerful. Similarly people in line positions might perceive themselves as being very central to the organization in terms of being the people who know the game and who should therefore be in charge (cf. Slack, Berrett & Mistry, 1994).

Paid vs. volunteer positions

Specialization

Both paid and volunteer personnel are fairly unanimous that the other group should do more. The division of tasks, however, between the two does not seem to be all that simple. The paid personnel, perhaps empowered by their salary and their longer hours, seem to think that keeping and/or moving tasks to the office implies a guarantee of quality. Both groups however agree on the need for more paid staff in order to cope with the heavy workload.

Cuskelly, McIntyre and Boag (1998) found similar results where volunteers feel marginalized by the paid staff and paid staff feel frustrated with the volunteers not meeting their deadlines and not doing their jobs. The two groups seem irreconcilable but Farrell, Johnston and Twynam (1998) argue that it is the responsibility of the management to manage facilities and operations in a way that satisfies volunteers in order to make them stay. However that may be it seems that communication and task definition need to be addressed. The easy way would, of course, be to engage more people for both functions, a solution which, needless to say, is easier said than achieved.

It should however be noted that earlier findings have shown that commitment to an organization decreases inversely with level of remuneration and also inversely with number of working hours (Chang & Chelladurai, 2003).

Standardization

Differences in opinions on standardization between paid and volunteer personnel are not so easy to discern. All positions apart from the coach of the first team position express the importance of routines, guidelines, rules, handbooks etc. The coach position on the other hand refers to traditions, tacit and unspoken knowledge, and group norms. It would take further investigation to reach an understanding of why perceptions within the paid positions differ.

Centralization

Not only is the division of tasks a source of conflict between paid and volunteer personnel but perhaps even more evident is the division in opinions about where decisions should be made. The volunteers in the youth operations want to mind on their own business whereas the people in the office cannot accept decision making being in the hands of parents.

This finding conflicts with some findings in Auld and Godbey (1998) where both professionals and volunteers agree that professionals have more influence over decision-making. Both groups also agree that the relationship should be more balanced, the professionals even more than the volunteers. The commitment to voluntary governance is stronger among professional staff than volunteers. The professionals want the involvement of experienced volunteers with more insight and knowledge about the particular sport. As a comment on these disparities Cuskelly, Boag and McIntyre (1999) argue that it seems that the opinions and behavior of volunteers do not integrate into the explanatory system of organizational behavior as easily as those of employees do.

One possible explanation for the differing perceptions can however be found in the findings of Amis, Slack and Berrett (1995) where the professionals’ need for control is explained by financial dependence. Since professionals are dependent on the success of the organization for their own financial wellbeing their need for control is assumed to be greater.

Conclusion

The present analysis can offer a few pointers on how organizational structure is perceived by individuals in a sport organization and how their organizational position is related to these perceptions. In these conclusions I will also try to elaborate on the implications these perceptions may have for the development of these organizations..

Regarding the structural dimension specialization most people would like somebody else to do more, making their own focus narrower. The indications are the same, whether you compare high and low, line and staff, or paid and volunteer positions. The exception is the people in paid staff positions at the upper middle level who would like to keep more tasks in the office, as they put it. It would seem that the organization is perhaps too thin around the middle, needing more people on the upper middle level to carry out managerial and administrative duties.

Perceptions of standardization show that formal education is seen as being more important at the top and at the bottom of the organization and that people in staff positions see formal education as a prerequisite while people in line positions see training and education as a part of their job. It would seem that prospective educational measures should be directed towards the upper middle hierarchical level, or simply that formal education is not needed to the same extent at that level. Another possible implication is that there should be an attempt to raise the requirement for formal education among people in line positions and to extend on-the-job training and education among people in staff positions. Why routines, guidelines, rules, handbooks etc. are considered less important by people in paid line positions at the lower middle level than by the rest of the interviewees remains to be explored. It might be implied, however, that the operations around the first team are dependent on the specific person in the position at the time rather than on the performance of the organization.

Centralization of control and decision making is where the differences in perceptions are most obvious. All groups want to have control over decisions concerning their own tasks but people in high, staff, and paid positions would also like to have control over people in low, line, and volunteer positions. The implications of this seem to be that decision making, control, and power are moving from volunteer board members to paid administrators, away from the actual line operations to the staff positions, and from both high and low levels to the upper middle level of an organization. Auld and Godbey (1998) have however shown that balance, between paid staff and volunteers, regarding control, power, and decision making is not necessarily needed in order for an organization to be successful.

The extension of these findings and their contribution to our knowledge on the interplay between organizations and individuals in general and sport organizations more specifically is primarily that organizational structure affects individuals within an organization and that organizational position is related to the perceptions these individuals express.

Secondly, this study has shown how the distinctions high and low, line and staff, and paid and volunteer can be used to define organizational position and how the concept of organizational position could be used in illustrating how different positions in an organization relate to each other and to internal and external influences, pressures and phenomena.

Finally, these results can be used to gain an understanding of some of the reasons behind personnel (primarily volunteers) turnover in sport organizations and what the organization in question could do about this. While it is already recognized that volunteers are indispensable to both Swedish and international sport not much effort has so far been spent on finding out how they can be attracted and retained.

Even if organizational factors have been found to be more important than individual ones in other studies (Cuskelly, 1995), generalizations from this study should be made with care. Since such a small and specific sample as the one used in this study is sensitive to such variables as age, gender and income and not just to hierarchical position, line or staff function, or paid or volunteer position (cf. Ebeling, King & Rogers, 1979). The linear relationships assumed on a few occasions in this text should also be read critically. Even if earlier findings have shown results at one end of the scale it is not always correct to assume the opposite results at the other end of the scale (cf. Porter & Lawler, 1965). Similarly it is hard to tell separate and combined effects apart. While some perceptions can be the result of one organizational distinction others can certainly be result of two or three.

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2015-03-24T10:15:13-05:00June 10th, 2005|Contemporary Sports Issues, Sports Facilities, Sports Management, Sports Studies and Sports Psychology|Comments Off on Organizational Structures in Sport Clubs – Exploring the Relationship between Individual Perceptions and Organizational Position

Can Academic Progress Help Collegiate Football Teams Win?

INTRODUCTION

Recently, the National Collegiate Athletic Association (NCAA) released its first Academic Progress Rate (APR) scores for its football and basketball programs. The APR measures how well athletic programs educate student athletes and will be used to sanction programs that do not perform well academically. With these new academic reforms, the NCAA has taken the groundbreaking step of linking athletic success to academic success.

Proposed NCAA sanctions for collegiate athletic programs that fail to adequately educate student-athletes highlight the prevailing view that athletic success comes at the expense of academic progress. Some research, including research sponsored by the NCAA, has found that high-visibility athletic programs do not help to financially support the academic missions of universities (Litan, Orszag and Orszag 2003, Shulman and Bowen 2001). Research also has found no link between money spent on athletic programs and academic quality (Litan, Orszag and Orszag 2003). Yet, some clear links have been identified between athletic and academic success. Athletic success increases student applications to universities (Murphy and Trandel 1994, Zimbalist 1999). Theoretically at least, increased applications lead to more selective admissions and thus better students. Moreover, research by Lovaglia and Lucas (2005) suggested that high-visibility athletic programs increase the prestige of a public university’s academic degrees. The APR may be useful in promoting a positive association between academics and athletics in another way: Might providing better education for collegiate athletes now help athletic programs win?

The purpose of the proposed NCAA sanctions for programs with low APR scores is to motivate collegiate athletic programs to do a better job educating student athletes. In addition, the APR has the potential to motivate coaches in more powerful ways. First, it allows a direct test of the hypothesis that the athletic success of collegiate sports programs is negatively correlated with the academic success of their student athletes. If it can be demonstrated that no strong negative correlation exists between athletic and academic success, then coaches might be less ambivalent about insisting that athletes progress academically. Second, and most importantly, athletic recruits can use the APR to decide among competing athletic programs. While young athletes recruited to high profile athletic programs may be most concerned with pursuing a successful athletic career, they (and their parents) nonetheless realize the value of a college education. When deciding between two equally successful athletic programs, it would be in a student’s interest to pick the one with a higher APR. If student athletes begin to favor programs with higher APR scores, then the best athletes will go to schools that promote the academic progress of their athletes. Coaches would then have a powerful reason to promote the academic progress of their athletes. It would help them recruit better athletes and win. The perceived relationship between athletic and academic success would shift from negative to positive.

Comparing the academic and athletic success of collegiate programs, however, is not a simple calculation. If an accessible indicator existed that gave equal weight to academic and athletic success, then the best student athletes might well gravitate toward those programs that offered not only the best chance of athletic stardom but also the best opportunity for a solid education.

We develop a combined measure of athletic and academic success, the Student-Athlete Performance Rate (SAPR). The SAPR assigns programs a score based equally on athletic and academic success. To demonstrate its use, we compute SAPR scores for football programs in major conferences (ACC, Big East, Big 10, Big 12, PAC-10, and SEC plus Notre Dame).

THE APR

On January 10th, 2005, the NCAA Division I Board of Directors approved measures to link athletic scholarships to academic success. In the words of Robert Hemenway, the Chair of the Board of Directors, “This action today is a critical step in our journey to establishing much stronger and significant academic standards for NCAA student-athletes. The ultimate goal is for our student-athletes to stay on track academically and graduate” (NCAA, 1/10/05).

Seven weeks later, on February 28th, the NCAA released its first APR numbers. The APR is based on the eligibility and retention of student-athletes (Brown 2005). Rates of eligibility and retention are exactly the indicators that recruits to a collegiate program would find important in deciding which program to join. Recruits would want to know whether a program is likely to keep them academically eligible to compete and retain them through to graduation.

Each Division I sports program received an APR score on a 1000 point scale. The NCAA set a score of 925, roughly equivalent to an expected 50% graduation rate, as a minimum acceptable standard. About 21% of all athletic teams have APR’s below the 925 cutoff. Perhaps by 2006, programs with subpar APR’s face losing up to 10% of their athletic scholarship allotments.

The number of high-visibility athletic programs that face potential sanctions is substantial. Although 21% of all athletic teams have APR’s below the 925 standard, the percentage is much higher for football and men’s basketball programs. For example, among the 63 football programs in the power conferences representing the Bowl Championship Series, 30 have APR’s below 925 (NCAA, 2/28/05).

THE APR AND ATHLETIC RECRUITS

Aside from its use as a punitive tool, the APR can provide student-athletes recruited to universities a tool to use when deciding among various programs. Talented young athletes recruited by major collegiate sports programs must weigh a dizzying array of information before deciding on a school. Sometimes that information can be contradictory. To make an informed decision, a recruit should be able to answer at least two questions. First, which program will provide the best athletic experience, including the most visibility and the best opportunity for a professional career? Second, which program will provide the best education and opportunities if a pro career doesn’t materialize?

The APR gives student-athletes a way to measure the academic success of athletic programs. From the standpoint of recruits, however, the APR neglects the athletic half of the equation to focus exclusively on the academic side. The most successful sports programs in athletics may not be the ones that do a good job of educating their student athletes. Similarly, the programs that provide the best educational opportunities for student athletes may not provide the best athletic opportunities. There is no clear way to judge how well a program both educates its players and gives them a chance for success in athletics.

We propose an indicator that combines academic and athletic success. The Student-Athlete Performance Rate (SAPR) described below gives equal weight to the athletic and academic success of sports programs.

COMPUTING THE SAPR

We constructed a method for computing SAPR scores and applied it to Division I-A football programs. The SAPR is calculated on a 2000 point scale, half reflecting athletic success and half academic success. 1000 possible points of each program’s SAPR score is its Academic Progress Rate (APR). The other 1000 points of the SAPR is determined by a program’s Athletic Success Rate (ASR). Table 1 displays the factors used to calculate the ASR and their weightings.


Table 1: Factors in ASR (and weightings)

All-time winning % (.10)

Conference championships in last 5 years (.10)

Attendance average (2003) (.15)

Bowl games in last 5 years (.15)

National rankings in last 5 years (.15)

Players in the National Football League (.15)

Wins in the last 5 years (.20)


A number of factors reflect the current status of a football program, including conference championships in the last 5 years, bowl games in the last 5 years, national rankings in the last 5 years, and wins in the last 5 years. All-time winning percentage is included to reflect the tradition of a program. Attendance and professional players from a program are included because we believe they are factors that reflect the potential visibility and chance for professional success of athletes associated with a collegiate program. Similarly, the weightings reflect the factors that we believe recruits would consider most seriously. For example, an important athletic factor for new recruits would be how much a program wins.

For each of the seven factors in the ASR, we gave each program a score reflecting its percentage of the highest possible value for that factor. For example, the University of Michigan had the highest attendance average at about 111,000 fans per game and received a 1.0 for the attendance factor. A program with an average attendance of 55,500 fans per game would receive a score of .5 for the attendance factor. In the same way, a program that has participated in 3 bowl games in the past 5 years receives a score of .6 for the bowl game factor.

We multiplied each school’s score for each factor by its weighting. We then added the weighted factor scores. The factor weightings add to 1.0 and thus adding each school’s weighted scores for each factor produced a total score with a maximum possible value of 1.0. We then multiplied these values by 1000 to put ASR scores on the same scale as the APR.

Our initial ASR calculations produced a range of scores among football programs in power conferences between 148 and 856. We then standardized the scores to produce a range comparable to that of the APR. We then added ASR and APR scores to produce for each program an SAPR score with a maximum possible value of 2000. Table 2 displays SAPR scores for football programs in conferences represented in the Bowl Championship Series.


Table 2: SAPR scores for football programs in conferences represented in the Bowl Championship Series-ACC, Big East, Big 10, Big 12, PAC-10, and SEC (as well as Notre Dame)

School SAPR School SAPR
1) Michigan 1920 33) Iowa State 1822
2) Miami 1917 t34) Ohio State 1820
3) Florida State 1911 t34) Rutgers 1820
4) Auburn 1903 t34) Washington St. 1820
5) Oklahoma 1897 t37) Arkansas 1818
6) Georgia 1894 t37) Illinois 1818
7) Florida 1891 t39) South Carolina 1817
8) Boston College 1890 t39) Wake Forest 1817
9) Texas 1882 t41) Duke 1816
10) LSU 1880 t41) Northwestern 1816
11) Virginia Tech 1879 t41) Texas Tech 1816
12) Iowa 1876 44) Minnesota 1812
13) Virginia 1870 45) Cal 1808
14) Mississippi 1867 46) Purdue 1806
15) Stanford 1865 t47) Oregon State 1800
16) Maryland 1864 t47) Washington 1800
17) Nebraska 1863 49) Baylor 1798
18) USC 1860 50) Vanderbilt 1792
19) Notre Dame 1854 t51) Kentucky 1790
20) Tennessee 1853 t51) Michigan St. 1790
21) Clemson 1848 53) Oklahoma St. 1789
22) Georgia Tech 1847 54) Indiana 1788
23) North Carolina 1846 t55) Oregon 1787
24) West Virginia 1845 t55) Texas A&M 1787
25) Pittsburgh 1845 57) Alabama 1785
26) Colorado 1841 58) Arizona St. 1784
27) Kansas State 1838 59) Mississippi St. 1768
28) Syracuse 1833 60) Missouri 1767
29) N. Carolina St. 1828 61) UCLA 1765
t30) Penn State 1826 62) Kansas 1749
t30) Wisconsin 1826 63) Arizona 1722
32) Connecticut 1824 64) Temple 1697

ANALYSIS

Comparing the APR and ASR components of the SAPR allow a test of the hypothesis that athletic success is negatively correlated with academic success of major collegiate football programs. If athletic success is antithetical to academic success, then we would expect a strong negative correlation between scores on our ASR scale and on the APR scale. Instead, we found only a slight (Pearson’s r = -..122, two-tailed p = .335) and non-significant negative correlation between the ASR and the APR. Statistically, major collegiate football programs whose athletes make good academic progress are just as successful as those programs whose athletes make little progress.

DISCUSSION

The SAPR has a number of potential uses. One is to give student-athlete recruits a measure of combined athletic and academic success to consider when choosing among various collegiate programs. Some football programs that have been very successful on the football field-Michigan, Miami, and Florida State, for example-also have very high SAPR scores. Others fare less well. Recruits considering alternative programs can use the SAPR as a tool when making their decisions. If use of the SAPR for this purpose becomes widespread, then we can expect the correlation between the athletic and academic success of collegiate programs to shift from neutral to positive. If coaches are able to use high SAPR scores to recruit better athletes, then their success in promoting the academic progress of their student athletes will lead to greater athletic success as well.

Another potential use of the SAPR is to determine the likelihood of programs changing coaches. 10 of the schools with the lowest 15 rankings in our SAPR scores for football programs from major conferences have changed coaches since the end of the 2002 football season. Only 3 of the top 15 programs did so. Some of the changes at both ends of the spectrum reflected coaches being fired, and some reflected coaches moving on to new positions. In a logistic regression analysis with any coaching change as the dependent variable, the coefficient for SAPR approaches significance (B = -.012, SE = .006, two-tailed p = .056) in the direction of schools higher in SAPR scores being less likely to change coaches. More research and a larger sample are necessary to determine the relationship between SAPR scores and coaching changes.

A question for future research is whether the coach or the institutional climate is the primary determining factor in a program’s SAPR score. We can gather more data to test this prediction. We will compute SAPR scores for men’s and women’s basketball programs (which will entail using some different factors in the ASR formula) in power conferences. We will then compare SAPR scores for football and basketball programs at the same institution. If scores for football and basketball are highly positively correlated, then the institution is likely the more important factor. If the correlation is weak or negative, then the coach is probably the driving force.

REFERENCES

  1. Brown, G. T. (2005). “APR 101.” NCAA News Online, February 14.
  2. Litan, R. E., J. M. Orszag and P. R. Orszag (2003). The Empirical effects of collegiate athletics: An interim report. National Collegiate Athletic Association.
  3. Lovaglia, M. J. and J. W. Lucas (2005). “High visibility athletic programs and the prestige of public universities.” The Sport Journal 8(2):1-5.
  4. Murphy, R. G. and G. T. Trandel (1994). “The relation between a university’s football record and the size of its applicant pool.” Economics of Education Review, 13, 383-387.
  5. NCAA. 1/10/2005. “NCAA Division I Board of Directors sets cutlines for academic reform standards.” NCAA Press release.
  6. NCAA. 2/28/05. “Academic Progress Rate data for NCAA schools.” http://www2.ncaa.org/academics_and_athletes/education_and_research/academic_reform/school_apr_data.html
  7. Shulman, J. L. and W. G. Bowen (2001). The Game of Life: College Sports and Educational Values. Princeton, NJ: Princeton University Press.
  8. Zimbalist, A. (1999). Unpaid Professionals: Commercialism and Conflict in Big-Time College Sports. Princeton, NJ: Princeton University Press.
2015-03-24T09:48:32-05:00June 3rd, 2005|Contemporary Sports Issues, Sports Coaching, Sports Facilities, Sports Management, Sports Studies and Sports Psychology|Comments Off on Can Academic Progress Help Collegiate Football Teams Win?

Necessary Education for the Success of Athletics Directors: NCAA Presidents’ Perceptions

2015-03-20T11:16:24-05:00January 8th, 2005|Contemporary Sports Issues, Sports Facilities, Sports Management, Sports Studies and Sports Psychology|Comments Off on Necessary Education for the Success of Athletics Directors: NCAA Presidents’ Perceptions
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