Factors Contributing To Bankruptcy In Sports Associations: An Analysis Of Organizational Behavior, Motivation, And Teamwork

Discussion

Analyzes their participation as a member of their project team in Skeel.

Skeel (2013) defines that Bankruptcy is a state, where an organization is unable to repay some or all of their debts under the federal bankruptcy court. Australian Financial Security Authority (AFSA) is an association that deals with these bankruptcy incidences and resolves the case for the Australian organization (Fedcourt.gov.au, 2016). The organization that is considered in this assessment is the sports association and the major concern is to identify the prime reason behind this bankruptcy. This business report highlights the lack of factors like motivation of employees, teamwork, organizational behavior followed by the managers and the employee along with the areas of future development. The assignment wraps up with an overall conclusion of the entire discussion.

There are mainly three components of motivation, which is important for accomplishing the organizational objective- direction, persistence and intensity (Ya-jun et al., 2013). Weiss et al. (2012) further mentions that if an organization does not have a clear expectation and goals to achieve and do not research about the market condition, there is a high possibility that the organization would go bankrupt. Taken for instance, in a sports association, if there are more competition in the field, it is evident that people desire to enroll themselves in a reputed organization rather than a new one where same opportunities are provided. Manzoor (2012) also defines that offering job roles to an efficient employee will not only motivate the person but it also ensure that they are fulfilling their responsibility with proper attention. In this circumstance, if an employee who is not aware of the financial representation and is asked to prepare a balance sheet, the person will overlook all the essential data like tax payments and other legal obligation.

Teamwork and the consideration where an individual thinks that achieving organizational goals is their sole work in the workplace is crucial for the success of the company. Bumann and  Younkin (2012) defines an effective team knows each other’s strength and weakness and they always emphasizes on enhancing the strengths and resolves the weakness for the advancement of both the organization as well and to the individual. Taken for instance if in a sports association, employees do not engage with the organization, there may be a chance that the person shares the internal managerial decision with the other competitors for their benefits. As a result, bankruptcy can occur within the sports association, as they will never bring something new to the market to satisfy their needs (Weiss, 2012).

Organizational Behavior and Motivation

In sports association, there are internal and external stakeholders. The sportsperson, coach, association’s chairperson and the equipment suppliers are known as the stakeholders. Dawsey et al. (2013) defines that if the chairperson provides more reputation to some sportsman, who does not deserve to play at the national level, the conflicts between these people may arise to a great level and there may be a lack of associatively in them. Moreover, Platt and Platt (2012) defines that there will be a change in their attitude and they intentionally show poor performance in the final tournaments. Thus, in the circumstance, the team got lost and as a result, they will not win prize money that may be used to pay some debts taken from the financial institute or pay tax to the government. The final consequence is that the sports association got bankrupt due to the stakeholder conflicts.

The organizational behavior is a study that highlights the culture followed in a workplace. Wagner and Hollenbeck (2014) stated that effective organizational behavior is crucial for the betterment of the organization as it involves the management of the recruitment, providing them training and then analyzing the market demand. The managing authorities should be aware of the evolving technology and the rapidity of the change and if they are not changing the organizational behavior according to that, it is not possible for the organization to set a competitive advantage in the market and they will go bankrupt. Brigham and Ehrhardt (2013) depicts that in terms of a sports association, if the business is not growing then significant profitability cannot be obtained and the managers have to take money from a financial institute or taken the way not to pay the taxes. Thus, Weiss et al. (2012) depicts that improper implementation of new technology and no provision of employee training results in poor customer satisfaction and as a result, these association can be bankrupted.

The organizational culture of the sports authority comprises of the emotions, attitudes and the perceptions of the members (Alvesson & Sveningsson, 2015). The management of the Sports Authority lacked professional outlook in managing the day to day matters. The employees of the organization were not interactive and hence there was not sufficient communication in the organization. The employees were not receptive to new ideas and they lacked flexibility in their organizational functioning. They were not willing to experiment with new ideas. Their compensation structure was not competitive and this caused low motivation level of the employees. The low motivation level of the employees causes lack of productivity of the employees which caused the organization to formulate improper financial policies.

Teamwork and Its Importance

The national organizational culture of the sports industry in Australia is culturally rich. The sports industry has transformed the national identity of Australia. The national culture has a strong influence on the sports authority (Jarvie, 2013). However, the sports authority is unable to integrate the sports culture with the organizational culture. The national culture must share unconditional relationship with the local sports authority in order to maximize the operational efficiency. The sports authority is unable to adhere to the requirements of the national organizational culture, which has caused the organization to run in losses.

The individual differences between the employees of the organization have great impact on the overall functioning of the organization. The employees have different perception, behavior, interactions and attitudes that affect the regular activities of the organization (Korschun, Bhattacharya & Swain, 2014). The employees react differently to specific situations and this impacts the organizational activities. The organizational change is also perceived differently by each employee. The sports authority is a diverse entity that makes it difficult to achieve the effectiveness of the job tasks. The individual differences make it difficult for the organization to achieve optimum results. There is lack of coordination among the employees which makes it difficult to solve the organizational issues. This is one of the primary reasons for the bankruptcy of the sports authority.  

The organization must try to focus on developing the organizational behavior in order to achieve the maximum financial efficiency. The sports authority should give appropriate job roles to the employees, which is based on their skills as well as competencies. The managers should demonstrate an excellent performance by efficient administration of the team members. The planning, allocating, controlling and the evaluating job tasks should be performed well by the managers so that the team members are able to perform the financial functions in a better way. The organization must focus on fostering team work among the employees so that the organizational goals can be attained. The sports authority must strive in enhancing the work culture of the organization which would improve the performance of the employees. The managers must address the individual differences of the workforce and improve the cooperation level of the employees. The overall improvement of the organizational performance would lead to efficient management of the financial functions.

Conclusion

The sports authority has several issues with the organizational behavior due to which it faced bankruptcy. This paper analyzed some of the important parameters such as motivation level of the employees, individual differences, organizational culture, perception of the employees, team work and others that have a major impact on the organizational performance. This paper would broaden the understanding of the issues behind their financial crisis. 

References

Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change work in progress. Routledge.

Bankruptcy guide: introduction. (2016). Fedcourt.gov.au. Retrieved 22 September 2016, from https://www.fedcourt.gov.au/law-and-practice/areas-of-law/bankruptcy

Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage Learning.

Bumann, M., & Younkin, S. (2012). Applying self efficacy theory to increase interpersonal effectiveness in teamwork. Journal of Invitational Theory and Practice, 18, 11.

Dawsey, A. E., Hynes, R. M., & Ausubel, L. M. (2013). Non-judicial debt collection and the consumer’s choice among repayment, bankruptcy and informal bankruptcy. Am. Bankr. LJ, 87, 1.

Jarvie, G. (2013). Sport, culture and society: an introduction. Routledge.

Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social responsibility, customer orientation, and the job performance of frontline employees. Journal of Marketing, 78(3), 20-37.

Manzoor, Q. A. (2012). Impact of employees motivation on organizational effectiveness. Business management and strategy, 3(1), 1.

Platt, H., & Platt, M. (2012). Corporate board attributes and bankruptcy.Journal of Business Research, 65(8), 1139-1143.

Skeel, D. A. (2013). Is Bankruptcy the Answer for Troubled Cities and States?. Houston Law Review, 13-9.

Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing competitive advantage. Routledge.

Weiss, M. R., Amorose, A. J., & Kipp, L. E. (2012). Youth motivation and participation in sport and physical activity.

Ya-jun, W. A. N. G., & Long, W. E. I. (2013). Multi-angle of View Analysis on the Motivation of Evolution of Industrial Organization [J]. Journal of Wuhan University of Technology (Social Sciences Edition), 1, 005.