Chapter 13

Managing Change and Future Challenges in Sport

Organizations

Learning objectives

• Explain factors driving change in sport organisations

• Describe the HR implications of change in the workplace

• Understand how to strategically manage change with respect to HR

• Outline challenges to sport organisations in the future and understand the implications for SHRM

Change in sport organizations

(1) change is inevitable for survival;

(2) change is paradoxical in that it is necessary and inevitable, yet stability and predictability are inherently preferred states for organizations and individuals;

(3) successful management of change is essential for organizational effectiveness (Slack & Parent, 2006)

Types of change

• may be in the form of products or services that the sport organization offers, production technology, organizational structure and systems

• internal pressure for change may come from financial challenges or opportunities, operational inefficiencies, or disgruntled employees

• external pressure to keep up with competitors, to better meet the needs of current and prospective customers, maintaining accountability to funding bodies, changes in government policy and sport legislative bodies all drive change

Stages of action (and factors influencing that action) in the organizational change process (Greiner, 1967)

Stage 2Refocus on internal conditions (needs, problems)

(may require external intervention)

Stage 1Stimulus to take action

(internal, external pressure on top management)

Stage 3Identification of specific needs, problems

(diagnosis of problem areas by organization staff and units)

Stage 4Commitment to specific change(s)

(identification and selection of potential courses of action)

Stage 5Evaluation of impact of exploratory steps

(incremental/exploratory changes)

Stage 6Expansion and acceptance of new conditions

(positive reinforcement)

Resistance to change

4 major sources of resistance to change: 1. Self-interest: People are focused on their own self-

interests in the organization 2. Lack of trust: The uncertainty associated with change

may breed mistrust between management and staff, or between staff who do and do not support the change.

3. Differing perceptions of outcomes: Individuals may not value or give much weight to the purported need for change and the anticipated benefits, or they may not feel that the anticipated benefits will be realized at all

4. Cost of change: Change may be resisted because of the anticipated costs, in terms of time, money, and effort, to implement the change, particularly if it is felt that the costs outweigh the benefits

Cycle of coping with change

• In the first instance, individuals may experience denial that any change is necessary

• subsequently, they may experience defence as preliminary discussions take place about the nature and form of the change

• eventually, discarding old attitudes and ways of doing things as individuals realize that the planned change is necessary and inevitable

• next, is adaptation ie coming to terms with the new way(s) of doing things

• the final stage in the coping cycle is internalization, where the change is well-understood and accepted

Strategies to cope with change

• Communication and education

• Participation

• Change teams

• Idea champions

• Facilitation and support

• Negotiation

Challenges for HRM

• Globalisation and change

• Increasing diversity in the workplace

• Information requirements and different ways of delivering the sport product

• Work life issues and ways of organizing work

• Customer service orientation

• Volunteer and paid staff relationships

SHRM & the future

• HRM will undoubtedly assume a more strategic role in sport organisations

• for effective SHRM collaboration between line managers, employees, volunteers, customers, strategic partners and members of the community is critical

• as sport organizations grapple with new technologies, structures, processes, cultures; SHRM will accordingly facilitate organisational change and ensure flexibility and adaptability

Summary

• Organizational change is inevitable and a key issue for SHRM

• Sport organizations face internal (e.g., financial challenges, inefficiencies) and external forces (e.g., government policy, consumers, competitors, sport governing bodies) that pressure them to make changes for growth and survival

• To overcome resistance and help people cope with change in the organization, strategies are directed towards educating staff and volunteers about change, involving them in the change process, and providing additional support through change teams, idea champions, and various organizational measures such as counseling, therapy, and retraining