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This report will critically analyse the power, politics and conflict within Australian grand prix Corporation along with in depth analysis of organizational culture and decision making. The impact of power, politics and conflict within an organization is high in both positive and negative sense so the report will discuss the different factors influencing the power with the organization. The analysis of the organizational culture and decision making will provide knowledge about the leadership capabilities of the organization.
As stated by Bolman and Deal, (2017), power can be defined as the possession of skills, authority and influence within an organization. Power can be utilized in both ways in an organization and the effective way of using power is a way of gaining competitive advantage in the market. There are generally five sources of power within an organization and they are legitimate power, expert power, referent power, and coercive power and reward power. The sources of power within the Australian grand prix corporation are John Harnden (AM) – Chairman, Gillian Franklin – Deputy Chairman, Laura Anderson, FCIT, Michael (Mick) Doohan (AM), Mark Green (Deputy CEO of MinterEllison), Alan Oxley (strategic advisers), The Hon Kate Lundy (Director of Australian Cyber Security Research Institute) and Trent Smyth (Honorary Consul and head of Mission). The above mentioned people are the members of the AGPC board which regulates the AGPC and AGPC is responsible to them. The key sources of power in AGPC are Chief Executive Officer – Andrew Westacott, Deputy Chief Executive Officer and General Manager, Operations – Ashley Davies, General Manager, Motorsport, Entertainment & Industry – Craig Fletcher, General Manager, Sales, Commercial & Marketing – Corina Black, General Counsel, Strategy and Contracts – James Rosengarten and others (Grandprix.com.au. 2017). These members are assigned with special functions and they have legitimate power based on their skill levels.
The Australian Grand Prix Corporation have always been directed by the sports authorities and sport’s governing body which will be essential for making the changes within the organization. The organization consist of a hierarchical structure where they follow the instructions provided by the ministry of sports (Uhlin, 2017). Therefore, governing bodies play a vital role in legitimizing and delegitimizing the policies and processes of the organization. Therefore, the ministry and the regulatory board are responsible for making the changes to the organization. The organizational policies and processes are legitimized and delegitimized only by the government.
The consultant hold an important role in influencing power and politics within an organization. The consultant has the ability to guide the client in using power and politics in an effective way within the organization. Power and politics have both negative and positive aspect to it and the consult can choose to provide the organization with guidance that is required (Serazio, 2014). Positional power and rhetorical power are the most important factor in dealing with different projects. The action of the consult and the sponsor authority are interdependent on each other and in order to execute the projects effectively the organizations require consults. The client are dependent on the consultant due to their knowledge and they are influential in providing power to the consumers.
The political environment of Australia is highly stable and consists of various sports committees to monitor the sports activities. The Australian Grand Prix Corporation are answerable to the Minister for Tourism and Major Events and the AGPC board. AGPC reports directly to AGPC board that in turn reports to the Minister for Tourism and Major Events. The ministry is very strict regarding the environmental laws and the social impact of the events on the corresponding society (Jones, Newsome & Macbeth, 2016). The ministry favours growth of different sports and they have made suggestions to AGPC to incorporate strategies to promote racing events in Australia consisting of both motorcycle and formula 1. Therefore, the political landscape has been favourable for the corporation and they can promote growth in these events by complying with the instructions given by the regulatory bodies.
AGPC has been instrumental in leveraging their political network for hosting brilliant events for the past decade. AGPC is directly answerable to the Minister for Tourism and Major Events and in order to increase the popularity of motor sports in Australia they have seek permission from the board and ministry. AGPC has developed ideas and strategies that are very effective in making the changes to the organization (Munyon et al., 2015). They have developed new ideas and have leveraged their connections to the ministry to launch new and different events for increasing the popularity of the industry.
Conflict is one of the most common factor affecting the operation of the organization. Organization is common due to the diversity in the nature of the modern organization. Conflict between individuals and teams are essential fort the growth of the organization and at the same time has some negative effects attached to it (Macbeth, Jones & Newsome, 2014). Therefore, conflict management within an organization is essential for improving the quality of the projects and events organized by them.
The biggest area of conflict for the organization is the development of the Albert Park in Melbourne so that a circuit could be developed. There were among the board in choosing the spot as a location for hosting an event of such grandeur. The park consisted of fauna, flora and special environments which could be in danger while developing a new circuit. On the contrary, this provides the visitors with the opportunity of learning about the environment in these regions. Similarly, the park had been known for its tranquillity and the motor events will disrupt the peace (Macbeth, Jones & Newsome, 2014). The magnitude of the event will determine the amount of impact it has on the corresponding environment and the higher the magnitude more severe will be the impact. Therefore, the conflict arose between the AGPC committee regarding the use of this spot for formula one and other sports event.
The major sources of conflicts were the activists and few members of the board along with the ministry. The development a new circuit in these area means that there are chances of creating a conflict among the board, the regulatory body and the AGPC committee as even though the location is apt of holding such an event, there are environmental impact attached to it (Macbeth, Jones & Newsome, 2014).
The Formula 1 committee and Ministry were quick to make changes to the plans of the layout so that it does not have minimal impact on the surrounding fauna and flora. This will consist of developing the circuit in accordance to the environmental protection laws where the ministry clearly monitor whether the policies are followed are not (Folger, Poole & Stutman, (2017 ).
Decision making is a process where person holding a particular authority will make choices based on information gathered, decision and alternative resolutions (Rothman, 2017). There are different steps associated with the decision making process which is essential for taking effective decisions.
The decision making process is based on three condition sand they are risk, uncertainty and certainty. The more unstructured and complex problems and decision are taken based on the risk and uncertainty. However, manager make most of the decision based on the certain situations. The managers prefer to make decisions when they have perfect knowledge and information about the situations. There are standard protocols which will have to be followed while facing issues that are complex (Rothman, 2017). The risk and uncertainty areas are as such where there is lack of information so managers use customized solution to the problems. The uncertainty problems are those where there is no information at all and the managers are unable to set any probabilities to the projects.
The rational model and administrative model are based on different principles of decision making. The rational model will make choices based on the optimal nature of the situation which will increase value for the organization. On the other hand, administrative model will result in the making decision based on choices with acceptable value (McCabe, (2016). While choosing Albert Park for the Grand Prix circuit the organization made use of the rational model for making the optimal condition and using administrative model will led to violation of various environmental policies.
The set of values, beliefs, norms and code of conduct represents the psychological and social environment of the organization is known as organizational culture.
The organizational culture of Australian Grand Prix corporation is a mixture if hierarchical and flat structure. The organization focuses on the health and safety of the employees along with the preservation of the corresponding environment. The organization also focuses on equal opportunity and diversity management which shows that the democratic nature of the organization (Alvesson & Sveningsson, 2015). There is two way communication within the organization where the employees are aware of the objective of the company and the upper level of management are aware of the suggestions made by the employees. The organization policies to promote motor sports and take measures to prevent the endangered fauna and flora in the surrounding environment is necessary for the organization.
There is no doubt about the fact that organization culture is responsible for successful implementation of a strategy. The strategy will never be successful if the workforce implementing it are not passionate about the strategy. Therefore, there is complete agreement with the fact that without effective organizational strategy cannot be implemented and the opinion of the employees are more important in context to the strategy (Whitzman, 2016). Therefore, organizations will have to develop strategies that are suitable to organizational culture and reflects the organizational values and beliefs.
The organizational culture of any organization can be managed by defining the norms and beliefs. This will consist of developing an appropriate culture and aligning the workforce and the strategies according to these organizational culture (Whitzman, 2016).
The culture of Australian Grand Prix Corporation is appropriate and effective which is the very reason that they have been quite successful in hosting such as event. There is no need for making any changes to the current organizational culture.
The most effective behavioural approach to strategy is contingency theory which states that there is no correct approaches to leadership and leadership qualities should change based on the situation (Williams, 2017). This is a factor that is highly important for the organization and senior level of management in the organization will have to take decisions based on this theory. There are many risks and uncertainty associated with hosting of events and the contingency theory will facilitate in making effective decisions.
The organizational culture and situation analysis of the organization shows that there are few areas which can still be improved within the organization. The recommendations for improving the organizational culture are as follows:
The level of transparency is essential within the organization to engage the workforce so that they can perform in a better way. The open leadership style is quite effective in the modern business situation as it facilitates in developing a culture consisting of authenticity, collaboration and connectedness. Moreover, the level of organizational hierarchy can be demolished and bureaucracy can be eliminated. The elimination of hierarchy within the organization will result in the effective collaboration between the employees and management of the organization. Therefore, the organization will be able to directly suggest to the employees about the different strategies that can be implemented to improve the quality of events. In respect to the objectives of the organization it can be seen that increase in the level of transparency within the organization will help in realising some of the goals of the organization (Sarooghi, Libaers & Burkemper, 2015). The organization is fully focused on organization an event each year and in order to achieve success in completing the project, open leadership will increase the collaboration.. Therefore, the chances of mishaps within the organization will be less and there will improvement in the operational efficiency within the organization. In order to develop a better circuit each year, the organization have to make changes according to the requirements of the formula 1 (Truong et al., 2017). Every year in the Australian Grand Prix there are changes to the different turns as it a single lane circuit and many racers have proposed to make a double lane circuit. These projects have time constraints so increasing the level of team bonding is essential for successful implementation of the project. Team bonding is a crucial factor for improving the quality of operations and reduces the chances of scope creep.
Performance management and rewarding the employees with both monetary and non-monetary benefits will motivate the employees to perform in a better way. The employee performance can be improved by providing them with recognition. Moreover, the employees in the modern organization look for opportunity to grow. Therefore providing them with challenging activities and training them to improve the quality of their skill level is key to managing the culture of the organization (Mone & London, 2018). Performance management will consist of continuous monitoring of the employee performance along with the different factors that are responsible for improving the skill level of the employees. The managers will have to take care of the employees individually based on the individual performance criteria. Therefore, the organization will be able to deal with the shortcomings of each of the employees and they can grow effectively. Performance management will also include the issues that will have to deal with while performing the job which will increase the employee retention ability and reduce the operational cost.
Flexibility in the work schedule is essential for companies where diversity management has a priority. This will enable the employees to perform at their fullest potential so that they can maximize the organizational profit. The flexibility in the structure of the organization will enable the workforce to improve their team bonding and increase the efficiency of the work. Moreover, the organization has to follow a steady time schedule while preparing for different events so flexibility in work schedule keeps the timeline of the work as per the proposed plan. This reduces the stress level among the employees and create a work life balance which is essential for long term sustainability (Chen, 2017). These also motivates the employees as they feel that employer is considerate about the workforce and are willing to help them in every possible way to meet their target. Moreover, the satisfaction level of the employees are increased and they will work more happily.
The communication within an organization has to be two way so managers are able to learn about the needs, wants and ideas of the employees regarding a particular project. Similar, the employees will also become aware of the goals of the organization and they will be able to align their personal goals in accordance to the goals of the company. The communication level increases transparency within the organization and motivates the workforce to perform in a better way. Therefore, these develops an innovative organization culture where the employees will contribute to the organization even more by developing new ideas and making suggestions that are essential for developing the workforce (Quirke, 2017). This will provide the employees with a value and a sense of belonging. Therefore, this will improve the democratic environment within the organization and reduce the level of bureaucracy. Every year in the Australian Grand Prix there are changes to the different turns as it a single lane circuit and many racers have proposed to make a double lane circuit. These projects have time constraints so increasing the level of team bonding is essential for successful implementation of the project. Team bonding is a crucial factor for improving the quality of operations and reduces the chances of scope creep.
There are heavy implications of these factors in the organizational context. Australian Grand Prix Corporation can improve their operations and reduce the risk they face by developing a strong organizational culture. The structure of a sports organization is complex and in this scenario the structure of the organization is a matrix structure which is hybrid of functional and divisional structure. It is essential to reduce the level of complexity within the organization structure in order to facilitate the effectiveness and efficiency of the organization. Organizational culture defines the workforce, and the work they do and change in the organizational culture will result in an open organizational culture. This is highly effective for organizations which organize events where the level of uncertainty and risks are higher than in normal organizations of these types. These will also facilities in collaborating with other sports organizations such as YMCA Australia and Australian Sports Commission. The organization is still trying to increase the popularity of motor sports in Australia and thus change in strategy is imperative. The organization has lost money in the previous grand prix so they will have to improve their organizational culture and structure to reduce the cost of operation and implement strategies to improve the customers. This is the reason that change in organizational culture and structure is imperative. Moreover, the collaboration with the other sports organization will result in introducing more non motor sports events which will help to cover up the losses incurred in the previous event. This will enable them to include multiple projects at the same time so that they can increase their revenue margin in the upcoming events. In this case performance management is essential in providing the employees with training so that they can adequately handle the complex organizational roles. Therefore, above mentioned strategies needs to be implemented on an urgent basis to ensure long term sustainability and recover the losses.
Conclusion
The report has critically analysed power, politics and organizational culture to provide suitable recommendations. Conflict management is another important component of the organization that has been discussed. The report has described the problems faced by Australian Grand Prix Corporation and has provided suitable recommendations, rationale and implications which should be followed to gain back the incurred loss in the previous event.
References
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Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
Chen, B. T. (2017). Service Innovation Performance in the Hospitality Industry: The Role of Organizational Training, Personal-Job Fit and Work Schedule Flexibility. Journal of Hospitality Marketing & Management, 26(5), 474-488.
Fogarty, M. (2016). Melbourne Grand Prix bosses unveil ‘save and spend’ strategy. Retrieved from https://www.smh.com.au/sport/motorsport/melbourne-grand-prix-bosses-unveil-save-and-spend-strategy-20160209-gmpt6q.html
Folger, J., Poole, M. S., & Stutman, R. K. (2017). Working through conflict: Strategies for relationships, groups, and organizations. Routledge.
Grandprix.com.au. (2017). Retrieved from https://www.grandprix.com.au/sites/default/files/pdf/AGP17282_2017_AGPC_Annual_Report_ALL-5-FA-LR.pdf
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Macbeth, J., Jones, C., & Newsome, D. (2014). Does the Australian Grand Prix belong in a public park?. Retrieved from https://theconversation.com/does-the-australian-grand-prix-belong-in-a-public-park-23594
McCabe, D. (2016). ‘Curiouser and curiouser!’: Organizations as Wonderland–a metaphorical alternative to the rational model. human relations, 69(4), 945-973.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance management: A practical guide for managers. Routledge.
Munyon, T. P., Summers, J. K., Thompson, K. M., & Ferris, G. R. (2015). Political skill and work outcomes: A theoretical extension, meta?analytic investigation, and agenda for the future. Personnel Psychology, 68(1), 143-184.
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Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of business venturing, 30(5), 714-731.
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