The Human Capital Factor: Strategies for Dealing with Performance Challenges in Business and Sport Management

By Tesone, Dana V.; Platt, Alan et al. | Journal of Applied Management and Entrepreneurship, July 2004 | Go to article overview

The Human Capital Factor: Strategies for Dealing with Performance Challenges in Business and Sport Management


Tesone, Dana V., Platt, Alan, Alexakis, George, Journal of Applied Management and Entrepreneurship


Executive Summary

Why do some sport management organizations follow the standard rules of business and fail to succeed, while others break the rules and emerge successful? The answer may lie in the acquisition, retention, and development of human capital as a strategy to overcome other commonly noted organizational deficiencies. When faced with explaining declining performance relative to competitive strength in sport organizations, prevailing excuses to the shareholders and other stakeholders seem to include items such as lack of resource acquisitions, inadequate economies of scale or scope, incompetent managers, incompliant performers, or imprudent political agendas (a last ditch effort to divert responsibility on the part of a high-level executive). However, the commonly published management explanations seem to seldom include admissions of poor human capital practices on the part of the organization. The acknowledgment would be a foolish disclosure, since such behavior is an expected component of appointed executive leadership. At the same time, the savvy shareholder knows that these other excuses could at least be mitigated by and sometimes the reason for the lack of human talent within these organizations.

Introduction

An organization is as strong as the knowledge, skills and abilities that people contribute to it (Darby, 2003). When shareholders hold executive managers responsible for declining competitive positioning of sport enterprises, the excuses supplied usually involve various explanations that appear to overlook the lack of human capital. For instance, executives may blame deficiencies in material resource allocation or capital investments intended to yield economies of scale as reasons for lowered competitive strength. Alternatively, the causes given for declining performance may be assigned to incompetent management, lack of worker compliance, or the admittedly misguided political agendas on the part of key managers. Absent from the list of excuses by management would be the declaration that a lack of adequate human capital is the cause of poor performance. After all, it is the job of managers to acquire, maintain, and develop a pool of talented performers. Hence, the typical stakeholder would not deem this an acceptable excuse for organizational deficiencies. In reality, the truly knowledgeable shareholder would see through all the justifications, knowing that each is a scenario that may be overcome with, and some may be deterrents to, the development of human capital.

Both the academic management literature and the anecdotal examples derived from sport management demonstrate the capacity to address issues related to poor performance in sport organizations. The authors of the article present five commonly held management excuses for the loss of competitive positioning and demonstrate how the academic literature may be applied to substantiate, as well as refute these misguided practices in the professional arena. Additionally, anecdotal examples are presented to reinforce management realities that human capital investment is a vital overriding component of other organizational shortcomings in professional sports organizations. The article is not intended to indicate that human capital issues are mutually exclusive of other organizational factors. Rather, 'human capital versus X' refers to the power of talented human capital to overcome unfavorable scenarios relative to issues such as material resource acquisition, economies of scale and scope, leadership, political environments and compliance issues. The authors posit that practitioners may consider a holistic approach inclusive of the literature, as well as personal observations, to determine the validity of commonly held management precepts.

Human Capital versus Material Resource Acquisitions

Corporate executives may find it necessary to encourage shareholder groups to finance capital investments in material resources to include information technology systems citing competitive advantage as a primary justification. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Human Capital Factor: Strategies for Dealing with Performance Challenges in Business and Sport Management
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.