Explaining Management Decisions

Explaining Management Decisions

Why the Vice President Will Benefit from Having an Outsider Restructure His Department

According to Barnhill et al. (2021), the sports operating environment has significantly changed over the past decade, resulting in a major change in the structure and roles of sports organizations. There has also been a significant increase in formalization, complexity, and centralization, forcing sports organizations to design various approaches to maintain sustainability. For instance, sports organizations are focusing on reducing staff due to uncertainty in the future of sports organizations in terms of performance and relationships with stakeholders. The organizations are also restructuring to reassign roles and responsibilities based on employee expertise.

Reid (2021) defines restructuring as an organizational action that includes making significant modifications to operations and structure to improve performance and reduce or prevent financial harm. Therefore, most sports organizations outsource experienced staff to improve operations and make informed decisions about required organizational adaptations without room for bias, which could hinder organizational growth and performance. Sports organizations are also restructuring to adapt to changes in the organization environment. According to Barnhill et al. (2021), the prevalence of restructuring in sports organizations is also attributed to mergers and acquisitions aimed at increasing the organizations’ customer base and profit margin, particularly for organizations expanding globally. One of the most effective restructuring approaches is outsourcing someone to restructure departments within sports organizations.

In the current scenario, the vice president will benefit from having an outsider restructure his department by effectively restructuring and assigning tasks and responsibilities because the outsider is in a better position to see the department from outside the vice president’s frame due to a lack of a conflict of interest. For instance, the outsider may identify vulnerabilities that the vice president may not have seen, thus enhancing the success of the restructuring process. The outsider can also get honest information from employees to guide them on restructuring because employees will be willing to speak to the outsider more than they would be willing to speak to their superiors. The vice president will also benefit by understanding the capabilities and gaps in employees’ existing skills and capabilities in their department. An outsider provides an unbiased evaluation because they do not know about an employee’s current skills and qualifications, thus enabling them to identify any additional skills and capabilities required to improve the department’s performance.

Furthermore, hiring an outsider to restructure a department makes it easier to distinguish between important and unimportant things to consider. An outsider is more objective, thus making them consider all information provided for restructuring with a clear perspective. Considering all information plays a vital role in determining the adjustments that need to be made to achieve the desired outcome in the organization (Moreira & Silva, 2019). For instance, an outsider may not be afraid of breaking personal ties within the department, hence reassigning roles and responsibilities based on skills and capabilities rather than favouritism. Accordingly, this will help the vice president have a team of employees well-suited for their work in the department, thus improving the department’s performance. The vice president may also learn more about the department’s capacity based on strengths that can be leveraged to improve its performance and weaknesses limiting it. The vice president will also benefit from continuity in his operations without disruptions because the restructuring process is demanding and could force the vice president to put some of the things they need to do on hold until the restructuring process is complete.

References

Barnhill, C. R., Smith, N. L., & Oja, B. D. (2021). Organizational behavior in sport management: An applied approach to understanding people and groups. Palgrave Macmillan.

Moreira, A., & Silva, P. (2019). Handbook of research on corporate restructuring and globalization. IGI Global.

Reid, G. (2021). Restructuring an organization: When restructuring an organization, change can be a good thing. Reid’s Learning Institute and Business Consultancy.

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Imagine that you are a peer to the vice president of Karsten Manufacturing Corporation, the maker of Ping golf products. He comes to you angry because of a decision made by the president of the organization. The president of Karsten has decided to contract with someone outside of the company to restructure the division that the vice president oversees. The vice president does not understand why he hasn’t been asked to restructure his own department. He has no management training or education, but he has been with Karsten for 20 years. Considering the sports and recreation industry, his lack of training, and the implications of his 20-year tenure with the company, help him by illustrating why contracting with someone outside of the organization will benefit him and the division that he manages:

Explaining Management Decisions

Explain why the vice president will benefit from having an outsider restructure his department by combining information that you have learned and relating it to the scenario. Integrate concepts from your research with what you have learned in this course, SRM 320, as well as in other courses.
Provide research on both the company and the sports and recreation industry that demonstrates management concepts and industry trends as they apply to the scenario. Draw from the course text as well as other scholarly sources, such as other course texts and articles from academic journals.
Use practical examples to illustrate the management concepts in the sports and recreation industry as they are relevant to the scenario. Use critical thinking in choosing and applying the examples.

REF: Masteralexis, L., Barr, C., & Hums, M. (2020). Principles and practice of sport management (6th ed.).

Weerakoon, R.M. (2016). Human resource management in sports: A critical review of its importance and pertaining issues